Milpitas City Council
May 7, 2024

R
I
D
E
CO

SUBSCRIPTION AND
S
E
R
V
I
C
E
S

AGR
EE
M
E
NT

Page
18 of
23 S
C
HE
DU
L
E

“
C
”

P
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DA
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P
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OTE
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N

UND
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A
K
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“
Personal Data
” means data, whether true or not, about an individual who can be identified: (a) from that data; or (b) from that data

and other information to which the organization has or is likely to have access;

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145
Item # C7.

DocuSignEnvelopeID:A30AA215-3F98-40A3-AC4A-2D2FA385168A

R
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SUBSCRIPTION AND
S
E
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AGR
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Page
19 of
23 S
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"
D
"

SOFTWARE

FUNCTIONAL REQUIREMENTS

Passenger
Application Requirements

Rider Account

·

Trip history menu to see trip details

o

Start & end time

o

Starting & ending address

o

Trip cost (if applicable
)

o

Help menu to provide feedback, or report other issue

·

Reserved trip details

·

Recent destinations are automatically saved to rider account

Ride
Booking and Tracking:

·

Ability to enter an address or select current or specific location on the map

·

Reserve multiple seats or
seat types (e.g. accessible)

·

Reserve tri
ps up to 5 business days in advance

·

Reserve multiple trips at once (same trip for multiple days in one week)

·

Retain recently queried
locations

so they are easy to pull up even if rider does not designate them as a “favorite”

·

Ability to restrict virtual vs. doorstep drop
-
off and pick
-
up points

·

Vehicle location, v
ehicle ID and
d
river
information are
displayed while waiting
for pickup

·

Ability to call

and/or leave a note for

driver

Payment

·

Ability to
hold credit card information.

·

Place to enter promotional codes

Rating System

·

Ride rating (e.g., 1 to 5 stars)

Customer
Support

·

Legal/terms and conditions

·

A place for Frequently Asked Questions (FAQs)

·

In app
requests for support

·

Customer service system

that creates trackable tickets for follow up and resolution

·

Ability to mask phone number when contacting driver

Driver Application Requirements

·

Automatic trip dispatching

·

Dynamic routing capabilities to adjust
vehicle

allocation
efficiently
.

·

Make phone

calls to a rider via anonymized phone number

·

Ability to launch turn
-
by
-
turn driving directions

Operations Dashboard Requirements

·

Dashboards accessible to
operations coordinators

and authorized individuals by the City

·

Dashboard displays real
-
time data on

riders, vehicles, drivers and service performance/Key
Performance Indicators (KPIs). Data available includes:

o

Ridership

o

Travel times

146
Item # C7.

DocuSignEnvelopeID:A30AA215-3F98-40A3-AC4A-2D2FA385168A

R
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CO

SUBSCRIPTION AND
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AGR
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Page
20 of
23 o

Trip denial rate

o

Booking abandonment rates

o

On
-
time performance

o

Trip and driver reviews

o

Trip and driver comments

·

Ab
ility to assign different user
-
level permissions and rights based on operator, seniority, or role.

·

The data gathered will be shared with / available to the operator or agency in multiple formats:

o

Dashboards
to visualize rider, driver, and performance data, aggregated across a period or at an individual trip/driver level

o

Weekly and monthly performance reports
provided in Excel, in a performance format
to be mutually agreed upon

o

Exports of the raw data
(rides
, vehicles, times, locations etc.) in CSV format that can be further analyzed by the operator or agency staff if they desire

Software Security, Reliability & Privacy Requirements

·

The passenger and driver apps are ‘stateless’ and
do not store any confiden
tial passenger data on
the local device
.

·

All data is stored securely in the cloud (Amazon Web Services –

‘AWS’).

·

The passenger and driver
apps communicate securely with the cloud
-
based platform using
RESTful APIs.

·

RideCo’s
P
latform

Software

has a

99.9%+

historical
uptime performance record
.

·

Data is encrypted in transit
using standard HTTPS, using an SSL wildcard certificate.

·

All public facing webservers have been hardened using industry standard

practices.

·

Internal networks are shielded by AWS security groups which define allowable ports and IP addresses for internal services.

·

APIs are all secured using
token authentication using
an

identity management system
. Tokens are
only valid for one user and can only

be acquired by successfully authenticating against our
authentication API. APIs used by internal components are never exposed publicly. For certain API calls, throttling exists to prevent against DOS type attacks.

·

Daily backups of production databases fo
r disaster recovery.

·

Software
does not store any payment card or billing information on RideCo’s

servers
.

·

The mobile applications and operations dashboards include their own terms of service to end users that include provisions relating to data privacy, co
nfidentiality, and intellectual property rights.

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INSURANCE REQUIREMENTS

Contractor or Consultant shall procure and maintain for the duration of th is

Agreement insurance against
claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder and the results of that work by the Contractor or Consultant, its agents, representatives, e
mployees or subcontractors.

More specifically:

Contractor or Consultant shall provide its insurance broker(s)/agent(s) with a copy of these requirements and request that they provide Certificates of Insurance complete with copies of all required endorseme nts.

Contractor or Consultant shall furnish City with copies of original endorsements affecting coverage required by this “Schedule E”. The endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. All
endorsements and certificates are to be received and approved by City before work commences. City has the right to require Contractor’s or Consultant’s insurer to provide complete, certified copies of all required insurance policies, including endorsements

affecting the coverage
re
quired by these specifications.

In the event of the breach of any provision of this
“Schedule E
,
”

or in the event any notice is received
which indicates any required insurance coverage will be diminished or canceled, City
, at its
option, may,
notwithstandi
ng any other provision of this A
greement to the contrary, immediately dec
lare a material
breach of this A
greement and suspend all further work

pursuant to this Agreement.

Commercial General Liability (CGL):

Coverage at least as br
oad as Insurance Services Office (“ISO”)
Form CG 00 01 covering CGL on an “occurrence” basis, including products and completed operations, property damage, bodily injury and personal and advertising injury with limits no less than $2,000,000.00 per occurre
nce. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit.

Automobile Liability:

Coverage at least as broad as

ISO Form Number CA 0001 covering, Code 1 (any
auto), with limit no less than $
1 ,000,000.00 combined single limit for bodily injury and property damage.

Professional Liability (Errors and Omissions):

Insurance appropriate to the Contractor or Consultant’s profession, with limit no less than $1,000,000.00 per occurrence or claim, $2,000,000.00 aggregate.

Workers’ Compensation Insurance:

Contractor or Consultant

shall purchase and maintain statutory
workers
’

compensation coverage

for their employees if applicable.

Employers’ liability limits shall not be
less than $1,000,000 each accident, $1,000,000 by disease -
policy limit, $1,000
,000 by disease
-
each
employee.

The policy shall contain a Waiver of Our Rights to Recover from Others

endorsement naming
the City and its officers, officials, employees, and agents in the endorsement schedule.

Other Insurance Provisions:

The insurance policies are to contain, or be endorsed to contain the following provisions:

Additional Insured Status
and Primary/Non
-
Contributory Language
:

Contractor’s general liability
and automobile liability policies shall
be primary and shall not seek contribution from the City’s coverage and be endorsed to add the City and
VTA and their respective

officers, officials, employees, and agents as
additional insureds under such policies using Insurance Services Office form CG 20 10 (or equivalent) on the general liability policy. For construction projects, an endorsement providing completed operations c
overage for the additional insured on the general liability policy, ISO form CG 20 37 (or equivalent), is 148
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The limits of insurance required in this Agreement may be satisfied by a combination of primary and umbrella or excess insurance. Any u
mbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and non -
contributory basis for the benefit of
City
and VTA
(if agreed to in a written contract or agreement) before the City’s

or VTA’s

own insurance
or self
-
insurance shall be called upon to protect it as a named insured.

Notice of Cancellation, Suspension or Otherwise Voiding Policies :

Each insurance policy required
above shall contain or be endorsed to contain that coverage sha ll not be suspended, voided, canceled or
reduced in coverage or in limits except with thirty (30) days’ prior written notice by certified mail, return receipt requested to the City.

Waiver of Subrogation
:

Contractor or Consultant hereby grants to City
and
VTA
a waiver of any right
to subrogation which any insurer of said Contractor or Consultant may acquire against the City or VTA
by virtue of the payment of any loss under such insurance. Contractor or Consultant shall

obtain any
endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the City
or VTA have

received a waiver of subrogation endorsement from the
insurer. The Workers’ Compensation Policy

shall be endorsed with a waiver of subrogation in favor of the City
and VTA
for all work performed by Contractor or Consultant, its employees, agents and subcontractors.

THE FOLLOWING PROVISIONS APPLY TO ALL AGREEMENTS

Deductibles and Self
-
Insured Retent
ions (“SIR”)
:

Any deductibles or self
-
insured retentions must be
declared to and approved by City. The City may require the Contractor or Consultant to purchase coverage with a lower deductible or retention or provide proof of ability to pay losses and rel ated investigations,
claim administration, and defense expenses within the retention. At the option of the City, either (1) the insurer shall reduce or eliminate such deductibles or self -
insured retentions as respects the City, its elected
and appointed of
ficials, officers, attorneys, agents, and employees; or (2) the Contractor or Consultant shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses.

All SIRs must be disclosed to Risk Managemen
t for approval and shall not reduce
the limits of liability.

Policies containing any SIR provision shall provide or be endorsed to provide that the SIR may be satisfied by either the named insured or the City.

City reserves the right to obtain a
full
-
certified copy of any insurance policy and endorsements. Failure to exercise this right shall not constitute a waiver of right to exercise later.

Acceptability of Insurers
:

Insurance is to be placed with insurers with a current A.M. Best’s rating of no
less than A
-
:VII, unless otherwise acceptable to City.

Claims Made Policies
:

(note
-

should be applicable only to professional liability, see below)

1. The Retroactive Date must be shown and must be before the date of the contract or the beginning of cont
ract work.

2. Insurance must be maintained, and evidence of insurance must be provided for at least

five (5) years after completion of contract of work.

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If coverage is canceled or non
-
renewed, and not replaced with another claims
-
made policy
form with a Retro
active Date prior to the contract effective date, the Contractor or Consultant must purchase “extended reporting” coverage for a minimum of five (5) years after completion of work.

4. A copy of the claims reporting requirements must be submitted to the City for review.

5. If the services involve lead
-
based paint or asbestos identification/remediation, the Contractor’s Pollution Liability Policy shall not contain lead -
based paint or asbestos
exclusions. If the services involve mold identification/remediation, the

Contractors
Pollution Liability Policy shall not contain a mold exclusion, and the definition of Pollution shall include microbial matter, including mold.

Subcontractors
:

Contractor or Consultant shall require and verify that all subcontractors maintain i
nsurance meeting all the requirements stated herein,
except subcontractors shall maintain
workers
compensation coverage for subcontractors personnel and
automobile liability c
overage at least as broad as
ISO Form Number CA 0001 covering, Code 1 (any auto),

with limit no less than $
5 ,000,000.00 combined
single limit for bodily injury and property damage
,
and Contractor shall ensure that City is an additional
insured on insurance required from subcontractors.

Subcontractor agrees to be bound to Contractor and

City in the same manner and to the same extent as
Contractor is bound to City under this Agreement and any other contract documents. Subcontractor further agrees to include the same requirements and provisions of this Agreement, including the indemnity an d
insurance requirements, with any sub
-
subcontractor to the extent they apply to the scope of the sub -
subcontractor’s work. A copy of th
is

Agreement, including all

indemnity and insurance provisions
,

will
be furnished to the subcontractor.

Verification of
Coverage
:

Contractor or Consultant shall furnish the City with original certificates and amendatory endorsements or copies of the applicable policy language effecting coverage required by this clause. All certificates and endorsements are to be received and approved by the City before work
commences. However, failure to obtain the required documents prior to the work beginning shall not waive the Contractor or Consultant’s obligation to provide them. The City reserves the right to require complete, certif
ied copies of all required insurance policies, including endorsements required by these specifications, at any time.

Special Risks or Circumstances
:

City reserves the right to modify these requirements, including limits, based on the nature of the risk, pr
ior experience, insurer, coverage or other special circumstances.

Failure to Comply
:

Each insurance policy required above shall contain or be endorsed to contain that any failure to comply with reporting provisions of the policies shall not affect coverag e provided to the City,
its elected and appointed officials, officers, attorneys, agents, and employees.

Applicability of Coverage
:

Each insurance policy required above shall contain or be endorsed to contain that the Contractor’s or Consultant’s insurance

shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability.

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CITY OF MILPITAS

AGENDA REPORT
(AR)
Item Title: Adopt Resolutions Approving the Annual Engineer’s Report and Declaring Intention to Levy and Collect Assessments, and Provide Notice of Public Hearing for Landscaping and Lighting Maintenance Assessment District No. 95-1 - McCarthy Ranch (Staff Contact: Michael Silveira, City Engineer, 408-586- 3303; and Roberto Alonzo, Public Works Division Manager - Engineering, 408- 586-3316)
Category: Consent Calendar-Community Development
Meeting Date: 5/7/2024
Recommendation: Adopt a resolution approving the Annual Engineer’s Report, adopt a resolution declaring its intention to levy and collect assessments, and provide notice of public hearing to be held on June 4, 2024, for Landscaping and Lighting Maintenance Assessment District No. 95-1 - McCarthy Ranch.

BACKGROUND:

Landscaping and Lighting Maintenance Assessment No. 95-1 - McCarthy Ranch (LLMD 95-1 McCarthy Ranch) provides for the maintenance and improvement of public landscaping, irrigation systems, pedestrian lighting, gateway columns and entry signs along portions of North McCarthy Boulevard and the Ranch Drive gateway between State Route 237 and Dixon Landing Road in the areas as shown on the attached location map (Attachment D).

ANALYSIS:

Before the City Council can levy the annual assessments for LLMD 95-1 McCarthy Ranch, the Landscaping and Lighting Act of 1972 requires the City Council to adopt a resolution approving the annual Engineer’s Report (Report) (Attachment A) evaluating the landscape and lighting maintenance district’s maintenance and improvement costs for Fiscal Year (FY) 2024-25. On March 5, 2024, the City Council directed the City Engineer to prepare the Report (Attachment C), which is included in the City Council packet. The proposed total assessment for FY 2024-25 is $0.0381 per lot square foot with an assessment rate not exceeding the maximum assessment rate of $0.0550. The FY 2024-25 rate is approximately 4.38% higher than the previous year FY 2023-24 rate of $0.0365.

Staff recommends that the City Council adopt Resolutions to:
•Approve the Report, and
•Declare its intention to levy and collect an assessment and direct publishing of notice of a public hearing to be held on June 4, 2024 (Attachment B).

POLICY ALTERNATIVE(S):

Alternative 1: Not adopt the Resolutions for LLMD 95-1 McCarthy Ranch.

Pros: None.

Cons: If the City Council does not adopt the Resolutions according to Landscaping and Lighting Act of 1972, the City’s will be unable to collect to assessments for LLMD 95-1 McCarthy Ranch.

Reason is Not Recommended: Staff recommends approving the Resolutions into order to levy and collect assessments for fiscal year 2024-25 to allow for the continued maintenance and service of LLMD 95-1 McCarthy Ranch.

FISCAL IMPACT:

The levy and collection of assessments provides the City with the needed resources for the maintenance and the servicing of the improvements. The Fiscal Year 2024/2025 maintenance budget for LLMD 95-1 is estimated to be $462,838.00. The City also maintains an operating reserve, not to exceed the estimated maintenance costs.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):

The action is a fiscal activity of the City government or an action to create a City government funding mechanism that does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment and is not a project pursuant to Cal. Code of Regs., tit. 14, § 15378.

RECOMMENDATION:

Adopt a resolution approving the Annual Engineer’s Report, adopt a resolution declaring its intention to levy and collect assessments, and provide notice of public hearing to be held on June 4, 2024, for Landscaping and Lighting Maintenance Assessment District No. 95-1 - McCarthy Ranch.

ATTACHMENT(S):
(a) Resolution Approving Annual Engineer’s Report
(b) Resolution Declaring Intention to Levy and Collect Assessments (c) Engineer’s Report for LLMD 95-1 McCarthy Ranch
(d) Location Map

RESOLUTION NO. _____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MILPITAS,

APPROVING THE ANNUAL REPORT FOR
THE LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT NO. 95-1 FOR FISCAL YEAR 2024/25
The City Council of the City of Milpitas (hereafter referred to as the “City Council”) does resolve as follows:

WHEREAS, the City Council previously completed its proceedings in accordance with and pursuant to the Landscaping and Lighting Act of 1972, Part 2, Division 15 of the California Streets and Highways Code (commencing with Section 22500) (the “Act”) to establish the Landscaping and Lighting Maintenance Assessment District 95-1 (the “Assessment District”); and WHEREAS, the City Council has retained NBS for the purpose of assisting with the annual levy of the Assessment District, and the preparation and filing of and the report required pursuant to Section 22622 of the Act (the “Annual Report”); and
WHEREAS, the City Council has, by previous resolution, ordered NBS to prepare and file such Annual Report; and
WHEREAS, NBS has prepared and filed such Annual Report with the City Clerk.

NOW, THEREFORE, the City Council of the City of Milpitas hereby finds, determines and resolves as follows:

1. Approval of Report: The City Council hereby approves the Annual Report for the Assessment District concerning the levy of assessments as submitted by NBS for the fiscal year commencing July 1, 2024 and ending June 30, 2025.

2.The Assessment District exterior boundaries are as shown by a map filed in the office of the City Clerk, which map is made a part hereof by this reference.

PASSED AND ADOPTED this day of , 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

ATTEST: APPROVED:
_____________________________ _____________________________ Suzanne Guzzetta, City Clerk Carmen Montano, Mayor
APPROVED AS TO FORM:
_____________________________
Michael Mutalipassi, City Attorney

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MILPITAS,

DECLARING ITS INTENTION TO LEVY AND COLLECT ASSESSMENTS FOR THE LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT NO. 95-1 FOR FISCAL YEAR 2024/25
The City Council of the City of Milpitas (hereafter referred to as the “City Council”) does resolve as follows:

WHEREAS, the City Council previously completed its proceedings in accordance with and pursuant to the Landscaping and Lighting Act of 1972, Part 2, Division 15 of the California Streets and Highways Code (commencing with Section 22500) (the “Act”) to establish the Landscaping and Lighting Maintenance Assessment District No. 95-1 (the “Assessment District”); and WHEREAS, the City Council has retained NBS for the purpose of assisting with the annual levy of the Assessment District, and the preparation and filing of the report required pursuant to Section 22622 of the Act (the “Annual Report”); and
WHEREAS, the City Council adopted a Resolution approving the Annual Report for the Assessment District for Fiscal Year 2024/25.

NOW, THEREFORE BE IT RESOLVED, DETERMINED, AND ORDERED BY THE CITY COUNCIL, AS FOLLOWS:

1. Intention: The City Council hereby declares its intention to levy and collect assessments within the Assessment District to pay the costs of the Improvements for the fiscal year commencing July 1, 2024 and ending June 30, 2025. The City Council finds that the public’s best interest requires such action.

Improvements: The improvements within the Assessment District include, but are not limited to:
operating, maintaining and servicing of all public landscaping improvements, consisting of landscaping and grass. Operating, maintaining and servicing costs include, but are not limited to:
personnel, materials, electrical energy and water. Services provided include all necessary service, operations, administration, and maintenance required to keep the improvements in a healthy, vigorous, and satisfactory condition. A project renovating the landscape and irrigation improvements in the Assessment District was completed in Fiscal Year 2023/24. Also, the City will improve to the gateway entry sign, planting, towers, and pedestrian pathway lighting through FY2025/26.

2. Assessment District Boundaries: The boundaries of the Assessment District are as shown by the assessment diagram filed in the offices of the City Clerk, which map is made a part hereof by reference.

3. Annual Report: Reference is made to the Annual Report prepared by NBS, on file with the City Clerk, for a full and detailed description of the improvements, the boundaries of the Assessment District and the zones therein, and the proposed assessments upon assessable lots and parcels of land within the Assessment District.

4. Notice of Public Hearing: The City Council hereby declares its intention to conduct a public hearing concerning the levy of assessments in accordance with Section 22629 of the Act. All objections to the assessment, if any, will be considered by the City Council. The public hearing will be held on Tuesday, June 4, 2024 at 7:00 pm or as soon thereafter as is feasible in the meeting place of the City Council located at 455 E. Calaveras Boulevard, Milpitas, CA 95035.

The City Council further orders the City Clerk to publish notice of this resolution in accordance with Section 22626(a) of the Act.

5. Increase of Assessment: The maximum assessment is not proposed to increase from the previous year above that was previously approved by the property owners (as “increased assessment” is defined in Section 54954.6 of the Government Code).

PASSED AND ADOPTED this day of , 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

ATTEST: APPROVED:
_____________________________ _____________________________ Suzanne Guzzetta, City Clerk Carmen Montano, Mayor
APPROVED AS TO FORM:
_____________________________
Michael Mutalipassi, City Attorney

nbsgov.com
Prepared by:

Corporate Headquarters
32605 Temecula Parkway, Suite 100
Temecula, CA 92592
Toll free: 800.676.7516

Fiscal Year 2024/25 Annual Report For:

Landscaping and Lighting Maintenance
Assessment District No. 95-1
April 2024

CITY OF MILPITAS
LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT NO. 95-1 455 East Calaveras Boulevard
Milpitas, California 95035
Phone (408) 586-3000

CITY COUNCIL
Carmen Montano, Mayor
Evelyn Chua, Vice Mayor
Anthony Phan, Council Member
Hon Lien, Council Member
Garry Barbadillo, Council Member

CITY STAFF
Michael Silveira, PE, City Engineer
Luz Cofresi-Howe, Finance Director/Risk Manager
Christian Di Renzo, Public Works Director

NBS
Tim Seufert, Client Services Director
Amanda Welker, Project Manager
Tom Zetz, Administrator

TABLE OF CONTENTS

1. Engineer’s Letter ............................................................................................................. 1

2. Plans and Specifications .................................................................................................. 3

2.1 Location of Improvements ........................................................................................ 3

2.2 Landscaping Improvements ...................................................................................... 3

2.3 Capital Improvements ............................................................................................... 4

2.4 Overhead ................................................................................................................... 4

3. Estimate of Costs ............................................................................................................ 5

3.1 District Budget ........................................................................................................... 5

4. Special and General Benefit ............................................................................................ 7

4.1 Identification of Benefit ............................................................................................ 7

4.2 Special Benefits Identified ......................................................................................... 7

4.3 General Benefits Identified ....................................................................................... 8

4.4 Quantification of Benefit ........................................................................................... 8

4.5 Special Benefit Trips ................................................................................................ 12

5. Method of Assessment ................................................................................................. 14

5.1 Introduction ............................................................................................................. 14

5.2 Method of Assessment Spread ............................................................................... 14

5.3 Maximum Assessment Rates .................................................................................. 15

5.4 Appeals .................................................................................................................... 15

6. Assessment Diagram ..................................................................................................... 16

7. Assessment Roll ............................................................................................................ 17

City of Milpitas
Fiscal Year 2024/25 – LLMAD No. 95-1 Annual Report 1

1. ENGINEER’S LETTER
WHEREAS, in 1995, the City Council of the City of Milpitas (the “City”), State of California, under the Landscaping and Lighting Act of 1972 (the “Act”), created the City of Milpitas Landscaping and Lighting Maintenance Assessment District No. 95-1 (the “District”) in order to provide for the continued maintenance, operation, and administration of various improvements within the boundaries of the District; and
WHEREAS, the City Council has directed NBS to prepare and file a report for Fiscal Year 2024/25 in accordance with Chapter 1, Article 4 of the Act presenting plans and specifications describing the general nature, location, and extent of the improvements to be maintained; an estimate of the costs to maintain, operate, and service the improvements for the District for the referenced fiscal year; a diagram for the District showing the area and properties to be assessed; and an assessment of the estimated costs to maintain and service the improvements, stating the net amount to be assessed upon all assessable lots or parcels within the District in proportion to the special benefit received.

NOW THEREFORE, the following assessments have been calculated in accordance with the assessment methodology adopted and approved by the City Council at the time of District formation, and are made to cover the portion of the estimated costs of maintenance, operation, and servicing of the improvements, to be paid by the assessable real property within the District in proportion to the special benefit received:

District Parcels
2024/25
Maximum Assessment
Rate per Lot Sq. Ft.(1)
2024/25
Actual Assessment
Rate per Lot Sq. Ft.
2024/25
Net Amount to be
Assessed(2)(3)
LLMAD 95-1 45 $0.0550 $0.0381 $448,957
(1) The April 1, 2024 Consumer Price Index (CPI) provided by the U.S. Bureau of Labor Statistics was not available at the time of writing of this report. The Fiscal Year 2024/25 CPI increase was estimated using the February 1, 2024 CPI. (2) Amounts placed on the tax roll include the 1% Santa Clara County Collection Fee. (3) This amount is only an estimate and does not reflect the final billed amount with rounding adjustments. Refer to Section 7 for the rounded figure.

I identified all parcels which will have a special benefit conferred upon them from the improvements described in District’s Plans and Specifications section of this Engineer’s Report (the “Benefited Parcels”) have been identified. For particulars as to the identification of said parcels, reference is made to the Assessment Diagram, a copy of which is on file in the office of the City Clerk.

I have assessed the costs and expenses of the improvements upon the Benefited Parcels. In making such assessment:
a. The proportionate special benefit derived by each Benefited Parcel from the improvements was determined in relationship to the entirety of the maintenance costs of the improvements; b. No assessment has been imposed on any Benefited Parcel which exceeds the reasonable cost of the proportional special benefit conferred on such parcel from the improvements; and c. Any general benefits from the improvements have been separated from the special benefits and only special benefits have been assessed.

City of Milpitas
Fiscal Year 2024/25 – LLMAD No. 95-1 Annual Report 2
I, the undersigned, respectfully submit the enclosed Engineer’s Report and, to the best of my knowledge, information and belief, the Engineer’s Report, Assessments, and the Assessment Diagrams herein have been prepared and computed in accordance with the order of the City Council of the City of Milpitas, the Act, and Article XIIID.

Michael Silveira, City Engineer

City of Milpitas
Fiscal Year 2024/25 – LLMAD No. 95-1 Annual Report 3

2. PLANS AND SPECIFICATIONS
The District provides for the continued administration, maintenance, operation, and servicing of various improvements located within the public right-of-way and dedicated easements within the boundaries of the District.

2.1 Location of Improvements
The District is located on the west side of the City of Milpitas, bounded on the east by State Route 880, on the west by Coyote Creek, on the south by State Route 237, and on the north by Dixon Landing Road. The improvements maintained include public landscaping and irrigation improvements, including jogging paths, pedestrian lighting, gateway improvements, and entry signage, which are primarily situated within the public right-of-way and dedicated public easements within the District.

2.2 Landscaping Improvements
Landscaping, pedestrian lighting, gateway, and signage improvements were installed along the roadways and sidewalks within the District to enhance the overall visual appearance for adjacent parcels.

The improvements within the District consist of the maintenance and installation of any or all public landscaping and irrigation improvements adjacent to curbs of the following described streets, including jogging paths, planter walls, grass berms, pedestrian lighting and appurtenant irrigation systems, ornamental planting including lawns, shrubs, and trees; installation and maintenance of gateway columns and entry signs. Such maintenance includes all necessary repairs, replacements, water, electric current, spraying, care, supervision, debris removal and all other items of work necessary and incidental for property maintenance and operation thereof. The landscaping, irrigation, pedestrian lighting, gateway, and signage improvements are collectively referred to as “landscaping improvements.” All such work will be performed in the following areas:

2.2.1 N. MCCARTHY BOULEVARD

1. A strip of land including an earth berm approximately 50 feet in width from face of each curb line, from the southerly connection with Ranch Drive northerly 2,400 feet, more or less, to the northerly connection with Ranch Drive. A strip of land including a grass berm approximately 35 feet in width, west of the face of westerly curb, along the West Side of N. McCarthy Boulevard, from the southerly connection with Ranch Drive, northerly 2,400 feet, more or less. The initial phase includes a strip of land 6 feet wide on the west side of McCarthy Boulevard.

2. Commencing at a location approximately 2,400 feet north of State Route 237 thence proceeding north to the northern boundary of Lands of N. McCarthy, 7,800 feet more or less, a strip of land approximately 27 to 34 feet in width on each side along the east and west sides of McCarthy Boulevard between the northerly connection with Ranch Drive and Dixon Landing Road.

3. A median island from the southerly intersection with Ranch Drive northerly to the intersection with Dixon Landing Road.

City of Milpitas
Fiscal Year 2024/25 – LLMAD No. 95-1 Annual Report 4

4. Gateway Improvements, at the southerly intersection of N. McCarthy Boulevard and Ranch Drive and southerly of Bridge No. 1 along N. McCarthy Boulevard, including curved stone planter walls, gateway columns with entry sign appurtenant mounding ornamental plantings including flat work, trees and ground cover, irrigation systems; all as shown on landscape plans.

5. Lighting costs in the District are limited to the supplemental pedestrian lights installed on the east side of McCarthy Boulevard between the two intersections at Ranch Drive and McCarthy Boulevard. The conventional lighting along McCarthy Boulevard is not included. There also exists decorative up-lighting for the Gateway Towers in other areas near the southern Ranch Drive intersection of McCarthy.

2.2.2 MILPITAS ENTRY SIGN

1. City of Milpitas Entry Identification Sign along N. McCarthy Blvd., including walls, columns, lighting, and other appurtenances.

2.2.3 RANCH DRIVE

1. Commencing at a Northerly location where the right-of-way of Ranch Drive is contiguous with the right-of-way of Interstate 880, thence southerly, a strip of land approximately 10 feet in width measured from the east face of curb of Ranch Drive, from the northerly connection with Interstate 880 and Ranch Drive, southerly 630 feet, more or less, thence 405 feet south to the southerly end of Gateway location, varying in width from 10 feet to 132 feet, more or less.

2. Gateway Improvements, at the southerly connection of Ranch Drive and Interstate 880, including curved stone planter walls, gateway columns with entry sign appurtenant mounding ornamental plantings including flat work, trees and ground cover, irrigation systems; all as shown on landscape plans (Part A), except the Shopping Center’s Monument Sign. As mentioned above, there also exists decorative up-lighting for the Gateway Towers in other areas near the southern Ranch Drive intersection of McCarthy.

2.3 Capital Improvements
In Fiscal Year 2021/22, the City initiated the design and construction of landscape and irrigation renovation on N. McCarthy Blvd. between State Route 237 and Dixon Landing Road and a portion of Ranch Drive. The landscape and irrigation renovation design has been completed and the project is currently in the construction stage.

2.4 Overhead
In addition to the costs of maintaining the improvements mentioned above, the City will incur costs for staff time and expenses related to the management and maintenance of the improvements within the District. Staff time includes oversight and coordination of both City and contractor provided services, annual tax roll preparation, and addressing property owner questions and concerns. These activities are directly related to the maintenance of the improvements, and without them the improvements could not be efficiently completed or properly maintained on an ongoing basis.

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Fiscal Year 2024/25 – LLMAD No. 95-1 Annual Report 5

3. ESTIMATE OF COSTS
The estimated costs of maintenance and servicing of the improvements as described in the Plans and Specifications are summarized below.

3.1 District Budget
The Fiscal Year 2024/25 estimated cost budget for the maintenance and servicing of the improvements is as follows:

Description Fiscal Year 2024/25 Budget
Maintenance Staff and Contract Services(1) $280,485
Capital Equipment 0
Supplies 38,053
Utilities (Water, Electricity) 69,300
Reserve Fund 0
Capital Improvement Program 75,000
Maintenance Costs $462,838

NBS $5,000
City Staff District Administration 400
County Auditor-Controller Fee(2) 4,046
District Specific Costs $9,446

Total District Costs $472,284
General Benefit Contribution(3) (23,327)
Operating Reserve Contribution 0
Net Amount to be Assessed $448,957

Total District Square Footage(4) 11,794,540
Rate per Square Foot(5)(6) $0.0381
Maximum Rate Per Square Foot – 2024/25(7) $0.0550
(1) Fiscal Year 2024/25 Landscape Maintenance Contract Services includes Terracare and Irvine Company. (2) County Auditor-Controller Fee is currently 1% of the total levy submittal amount. (3) General Benefit Contribution is not applied to District Specific Costs, as these are special benefits to the District. (4) Total District Square Footage includes a 50% reduction for Parcel 5-7 (Sewer Main Pump Station) and Parcel 5-3C (Storm Pump Station).
(5) The Rate per Square Foot equals the Net Amount to be Assessed / Total District Square Footage. (6) The assessed rate cannot exceed the maximum rate.
(7) The April 1, 2024 CPI was not available at the time of writing of this report. The Fiscal Year 2024/25 CPI increase was estimated by using the February 1, 2024 CPI.

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Fiscal Year 2024/25 – LLMAD No. 95-1 Annual Report 6

3.1.1 OPERATING RESERVE
It is the intent of the City to maintain an operating reserve which shall not exceed the estimated costs of maintenance and servicing of the improvements prior to December 10 of the fiscal year, or when the City expects to receive its apportionment of special assessments from the County, whichever is later. The operating reserve balance information for the District is as follows:

Estimated Fiscal Year Ending 6/30/2024 Operating Reserve Cash Balance $260,586 Operating Reserve Collection for Fiscal Year 2024/25 0
Estimated Fiscal Year Ending 6/30/2025 Operating Reserve Cash Balance $260,586

3.1.2 CAPITAL IMPROVEMENT BUDGET
The City completed the replacement of the irrigation controllers and repairs of the irrigation system on N.

McCarthy Blvd. (between State Route 237 and Dixon Landing Road) and a portion of Ranch Drive. The City also installed planting in the median on Ranch Drive at the intersection of N. McCarthy Blvd. In 2024, The City is planning to make improvements to the gateway entry sign, tower, and pedestrian pathway lighting.

Planting renovations will continue in 2025/2026. As of March 31, 2024, the balance available for the Capital Improvement Project is $433,000. The City will utilize these funds, along with an annual collection of $75,000 via the District from Fiscal Year 2024/25 to Fiscal Year 2028/29, to finance the work.

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4. SPECIAL AND GENERAL BENEFIT
The improvements defined in Section 2 are expected to confer certain special benefits to parcels within the District. The special benefits are described in this section. Figures in this section are derived from a Special v. General Benefit Analysis performed in Fiscal Year 2020/21.

4.1 Identification of Benefit
Section 4 of Article XIIID of the California Constitution provides that once a local agency which proposes to impose assessments on property has identified those parcels that will have special benefits conferred upon them and upon which an assessment will be imposed, the local agency must next “separate the general benefits from the special benefits conferred,” and only the special benefits can be included in the amount of the assessments imposed.

4.2 Special Benefits Identified
The improvements described in Section 2 are expected to confer certain special benefits to parcels within the District. The special benefits conferred to property within the District can be grouped into three primary benefit categories: aesthetic benefit, safety benefit, and economic benefit. The three District benefit categories are further expanded upon below.
• Improved Aesthetics: The aesthetic benefit relates to the increase in the overall aesthetics as a result of the ongoing maintenance, servicing, and operation of the improvements within the District. The landscaping improvements enhance the overall image and desirability of the properties within the District. Street landscaping improvements improve the livability, commercial activity, appearance, and desirability for properties within the District. Regular maintenance ensures that the improvements do not reach a state of deterioration or disrepair, so as to be materially detrimental to properties adjacent to or in close proximity to the improvements. The overall appeal of the District is enhanced when improvements are in place and kept in a healthy and satisfactory condition. Conversely, appeal decreases when improvements are not well- maintained, unsafe, or destroyed by the elements or vandalism. Streetscapes have a significant effect on how people view and interact with their community.1 With streetscapes that are safe and inviting, people are more likely to walk, which can help reduce automobile traffic, improve public health, stimulate local economic activity, and attract residents and visitors to the community.2 • Increased Safety: Well-maintained areas mitigate crime, especially vandalism, and enhance pedestrian safety. A recent study found that after landscape improvements were installed, there was a 46% decrease in crash rates across urban arterial and highway sites and a second study reviewed found a 5% to 20% reduction in mid-block crashes after trees and planters in urban arterial roads were put in place. In addition, there is less graffiti, vandalism, and littering in outdoor spaces with natural landscapes than in comparable plant-less spaces. 3 The Victoria Transport

1 Victoria Transport Policy Institute. (2011). Community Livability. Helping to Create Attractive, Safe, Cohesive Communities.

Retrieved from http://www.vtpi.org/tdm/tdm97.htm.
2 Ibid.
3 Wolf, Kathleen L. (2010). Safe Streets – A Literature Review. In: Green Cities: Good Health (www.greenhealth.washington.edu).

College of the Environment, University of Washington.

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Fiscal Year 2024/25 – LLMAD No. 95-1 Annual Report 8
Policy Institute has found that streetscapes reduce traffic speeds and when combined with improved pedestrian crossing conditions can significantly reduce collisions. 4 • Economic Activity: Well-maintained street landscape improvements not only make adjacent properties appear more stable and prosperous but can spur investment in the property. The National Complete Streets Coalition notes that street design that is inclusive of all modes of transportation, where appropriate, not only improves conditions for existing businesses, but also is a proven method for revitalizing an area and attracting new development. 5 Landscaped sidewalks create an inviting place for customers to shop and do business. 6 Well-maintained and safe District areas will encourage an increase in the overall pedestrian activity. The area will become more pedestrian friendly, thus improving the retail environment by encouraging individuals to shop, dine, and stay within the District boundaries. The District will provide a cleaner more inviting environment to businesses and consumers which will attract, retain and expand the retail and business climate throughout. The effort will reduce vacancy rates and increase lease rates and utilization of property within the District.

4.3 General Benefits Identified
Section 4 of Article XIIID of the California Constitution provides that once a local agency which proposes to impose assessments on property has identified those parcels that will have special benefits conferred upon them and upon which an assessment will be imposed, the local agency must next “separate the general benefits from the special benefits conferred,” and only the special benefits can be included in the amount of the assessments imposed.

General benefit is an overall and similar benefit to the public at large resulting from the maintenance of the District’s improvements provided by the assessments levied. The improvements to be maintained by the District are located within the District boundaries only. There will be no District maintenance activities provided for improvements located outside of the District boundaries.

The ongoing maintenance of the District improvements will provide aesthetic, safety and economic activity benefits to the property within the District. However, it is recognized that the ongoing maintenance activities will also provide a level of benefit to some property within proximity to the District, as well as individuals passing through. Therefore, the general benefit created as a result of the District maintenance activities has been considered.

4.4 Quantification of Benefit
As a result of the maintenance and operation of the improvements, there will be a level of general benefit to people that do not work or intend to conduct business within the District. In order for property within the District to be assessed only for that portion of special benefits received from the District’s maintenance

4 Victoria Transport Policy Institute. (2011). Community Livability. Helping to Create Attractive, Safe, Cohesive Communities.

Retrieved from http://www.vtpi.org/tdm/tdm97.htm.
5 Pugliese, Philip. (2008). Complete Streets provide all the elements of multi-modal transportation. Retrieved from http://www.americantrails.org/resources/trans/completestreets08.html 6 U.S Department of Transportation. Federal Highway Administration. (2001). Designing Sidewalks and Trails for Access, Part II of II: Best Practices Design Guide. Retrieved from http://www.fhwa. dot. gov/ environment/bicycle_pedestrian/publications/sidewalk2/

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activities, general benefits provided by the ongoing maintenance of the improvements need to be quantified. The amount of general benefit that is provided from the District’s maintenance activities cannot be funded via property owners’ assessments.

Based upon the City’s General Plan, the streets within the City are classified into one of the following categories: freeway, expressway, arterial, collector or local streets. The landscaping improvements are primarily located along N McCarthy Boulevard and Ranch Drive and situated within the public rights-of- way. The portion of the maintained landscaping that is located along N McCarthy Boulevard (classified as an arterial street) provides some general benefit to pass-through traffic.

Arterial streets are intended to provide a higher degree of mobility and generally serve longer vehicle trips.

The landscape improvements within the District boundaries not only serve the parcels in the immediate vicinity, but persons who live outside of the District and are passing by. The City’s most recent traffic study7 completed in 2016 does not identify the percentage of traffic, which is pass-through traffic, but it does provide an estimated number of daily trips for N McCarthy Boulevard at the entrance of the District.

However, the daily trip count estimate is lower than the trip count utilized in the 2015 findings report. This would not be expected with the increase in development to this area. Therefore, In the absence of a more recent reading of traffic along N. McCarthy Boulevard, the 2015 average number of daily trips of 35,050 per the General Plan has been utilized for the base trip count.

In order to account for the estimated increase in daily average trips as a result of the increased development, the City commissioned a traffic study for each new development. Per the traffic studies, it is estimated there will be an increase of 9,156 average daily trips. Adding this increase to the 35,050 previously identified above, the estimated number of average vehicles per day is 44,206 as shown below.

Street Name
Average Number of
Vehicles per Day
N McCarthy Boulevard – between SR 237 and Ranch Drive 44,206

Before the determination and allocation of the percentage of special and general benefit for the District can be made, the estimated pass-through traffic must be computed. The pass-through trips are vehicles driving along the maintained streets for a portion of their trips, but not working, shopping or conducting business in the District or benefiting from the landscaping improvements in place.

Research consistently shows that developments with multiple land uses that make walking safe and convenient and are near other development, allow residents and workers to drive significantly less if they choose. While this District is not a mixed-use development, there are multiple land uses adjacent to one another. Therefore, treating this development area as though the uses were separated and accessible only by car would result in inflated trip counts in comparison to conventional, single-use developments.

In lieu of having a comprehensive traffic study that identifies the pass-through traffic, the estimated number of special benefit trips for each parcel has been determined using the average daily trips according

7 City of Milpitas. (2016 Traffic Study). Retrieved from City’s Assistant Traffic Engineer

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Fiscal Year 2024/25 – LLMAD No. 95-1 Annual Report 10
to the ITE Trip Generation Report, 9th Edition8 and the 2010 NCHRP Report 684 Enhancing Trip Capture Estimation for Mixed-use Developments9.

Utilizing the ITE Trip Generation Report, each parcel within the District was assigned an average daily number of special benefit trips using the parcel’s land use, building size or number of units. Further, to ensure the number of trips generated by the parcels has not been overstated, the percentage of total trips that are made internally within the development has been considered. Using the 2010 NCHRP Report 684 Enhancing Trip Capture Estimation for Mixed-Use Developments, the total special benefit trips have been reduced by approximately 31% (19,258 trips) to account for internal trips between the various businesses within the District. The total number of special benefit trips is therefore 42,864 as shown below.

Property Type Combined Trip Generations
Retail (ITE Land Uses 815, 820, 869) 24,978.76
Office (ITE Land Uses 710, 714, 750) 15,832.41
Industrial/Warehousing (ITE Land Uses
140, 150, 151) 8,660.43
Fast-Food Restaurant w/ drive thru (ITE
Land Use 934) 3,925.30
Gas Station (ITE Land Use 945) 3,758.16
Restaurant (ITE Land Uses 931, 932) 3,710.03
Hotel (ITE Land Use 310) 1,256.82
Total Trips 62,121.92
Internal Trip Reduction1 (19,257.79)
Total Adjusted Special Benefit Trips 42,864.12
(1) The internal trip rate percentage was calculated by using the NCHRP 684 Internal Rate Capture Estimation Tool.10

The total of all special benefit trips was removed from the average number of vehicles per day traveling within the District to estimate the number of pass-through trips daily.

Street Name
Average Number
of Vehicles
per Day
Less:

Estimated Special
Benefit Trips
Estimated Number
of Pass
Through Trips
Estimated %
General
Benefit
McCarthy Blvd. 44,206 42,864 1,342 3.04%

Based on the above calculations, the general benefit portion of the improved aesthetics, increased safety, and economic activity benefits resulting from the landscaping improvements is estimated to be 3.04%.

Pass-thru Vehicle General Benefit 3.04%

8 Trip Generation, 9th Edition: An Informational Report of the Institute of Transportation Engineers. (2012) Washington, DC: Institute of Transportation Engineers.
9 Bochner, Brian S., Hooper, Kevin, Sperry, Benjamin and Dunphy, Robert. National Cooperative Highway Research Program, Transportation Research Board of National Academies (2011). NCHRP Report 684 Enhancing Trip Capture Estimation for Mixed - Use Developments. Retrieved from onlinepubs.trb.org/onlinepubs/nchrp/nchrp_rpt_684.pdf 10 Ibid.

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The commonly accepted distance people will walk for public transportation, goods and services is one- quarter mile.11 However, based on the location of the District, and given that it is bounded by State Route 880 and 237, and Coyote Creek, there is not an efficient or practical means of walking into the District.

Although unlikely, a person may decide to use the paths within the District, and as such the general benefit portion of the improved aesthetics, increased safety, and economic activity benefits resulting from the landscaping improvements is estimated to be 1.00%.

Pass-thru Walking General Benefit 1.00%

An estimated 1% of all US trips are made by bicycle12. Although the District is bounded by State Route 880 and 237, and Coyote Creek, there is a bike lane on N McCarthy Boulevard and a bike path along Coyote Creek13. According to the National Household Travel Surveys, 49% of bike trips are for recreation, exercise, and sports14. As result of the District maintenance activities, there will be a level of general benefit to bicycle traffic that is not associated with property in the District. As such the general benefit portion of the improved aesthetics, increased safety, and economic activity benefits resulting from the landscaping improvements is estimated to be .50%, rounded up to 1.00%.

Pass-thru Biking General Benefit 1.00%

Collective District-Wide General Benefit
Since the District is comprised of improved aesthetics, safety, and economic activity benefits resulting from the collective landscaping improvements, the activity of both pedestrians and vehicles must be addressed in a collective form rather than independently. The sum of the calculated general benefits is the total general benefit related to vehicle, walking, and biking pass-thru traffic. This general benefit result is provided in the table below:

Pass-thru Vehicle General Benefit 3.04%
Pass-thru Walking General Benefit 1.00%
Pass-thru Biking General Benefit 1.00%
Total General Benefit 5.04%

The general benefit, which is the percentage of the total budget that must be funded through sources other than assessments, is 5.04%. The special benefit then, which is the percentage of the budget that may be funded by assessments, is 95.00%. This general benefit percentage is in line with the level of general benefit determined by the assessment engineer at formation of the District (less than 10%).

11 Walkscore. (2014). Walk Score Methodology. Retrieved from http://www.walkscore.com/methodology.shtml 12 U.S Department of Transportation. Federal Highway Administration. (2011). Summary of Travel Trends: 2009 National Household Travel Survey. (Report No. FHWA-PL-11-022). Retrieved from http://nhts.ornl.gov 13 City of Milpitas. (2002). General Plan. Retrieved from http://www.ci.milpitas.ca.gov 14 Pucher, J., Buehler R., Meron, F., and Bauman, A. American Journals of Public Health, Supplement 1, Vol 101, No S1 (2011).

Walking and Cycling in the United States, 2001-2009: Evidence from the National Household Travel Surveys. Retrieved from http://www.ncbi.nlm.nih.gov/pubmed/21551387

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Fiscal Year 2024/25 – LLMAD No. 95-1 Annual Report 12

4.5 Special Benefit Trips
The detailed breakdown of the estimated special benefit trips for each parcel in the District is shown in the following table.

Assmt ID
Assessor’s
Parcel
Number Land Use Description Acreage
Gross
Leasable
Area
Average
Trip Rate1
Estimated # of
Daily Special
Benefit Trips2
1-1A-1 022-54-016 710 - General office 1.05 8,500 11.03 93.76 1-1A-2 022-54-017(3) 310 – Hotel 3.29 83,310 8.17 680.64 1-1A-3 022-54-018(3) 310 – Hotel 2.31 70,524 8.17 576.18 1-1A-4 022-54-019 934 - Fast Food 0.19 0.00 496.12 0.00 1-1B 022-54-008 934 - Fast Food 0.78 2,912 496.12 1,444.70 1-2 022-54-002 820 - Shopping Center 0.58 5,600 42.70 239.12 1-3 022-54-003 932 - High Vol. Restaurant 1.02 5,465 127.15 694.87 1-4A 022-54-009 869 - Home Superstore 8.47 86,250 20.00 1,725.00 1-4B 022-54-012 820 - Shopping Center 3.02 15,000 42.70 640.50 1-4C 022-54-013 820 - Shopping Center 0.23 10,000 42.70 427.00 1-4D 022-54-015 931 - Quality Restaurant 1.78 8,285 89.95 745.24 1-4E 022-54-014 932 - High Vol. Restaurant 0.64 3,710 127.15 471.73 1-4F 022-54-011 820 - Shopping Center 1.31 9,100 42.70 388.57 1-4G 022-54-010 931 - Quality Restaurant 1.03 7,476 89.95 672.47 2-1 022-53-001 931 - Quality Restaurant 0.75 6,500 89.95 584.68 2-2 022-53-002 820 - Shopping Center 1.23 15,020 42.70 641.35 2-3 022-53-003 820 - Shopping Center 0.76 12,000 42.70 512.40 2-4 022-53-004 934 - Fast Food 0.6 2,000 496.12 992.24 2-5 022-53-005 934 - Fast Food 0.74 3,000 496.12 1,488.36 2-6 022-53-006 820 – Shopping Center 1.19 51,250 45.04 2,308.30 2-7 022-53-007 820 - Shopping Center 21.92 187,134 42.70 7,990.62 3 022-29-016 815 - Discount Superstore 14.56 125,000 50.75 6,343.75 4-1A-1 022-56-005 714 - Corp Headquarters 2.04 115,753 7.98 923.71 4-1A-2 022-56-006 714 - Corp Headquarters 2.06 174,483 7.98 1,392.37 4-1A-3 022-56-007 714 - Corp Headquarters 2.07 174,483 7.98 1,392.37 4-1A-4 022-56-008 Undeveloped 34.52 - - -
4-1A-5 022-56-009 Parking Lot 24.32 - - -
4-1B 022-29-037 Undeveloped 6 - - -
5-1A-1 022-29-034 750 - Office Park 36.49 572,660 11.42 6,539.78 5-2A-1 022-29-035 750 - Office Park 31.31 480,772 11.42 5,490.42 5-3A-1 022-29-040 150 – Warehousing/710
General Office

15.55 313,978 8.87 2,784.67
5-3A-2 022-29-041 931 – Quality Restaurant 0.14 6,015 89.95 541.05 5-3A-3 022-29-042 150 – Warehousing/710
General Office 6.94 136,632 8.87 1,211.79
5-3A-4 022-29-043 150 – Warehousing/710
General Office 7.36 122,208 8.87 1,083.86
5-3A-5 022-29-044 140 - Manufacturing and 710
General Office 7.73 131,331 8.87 1,164.77
5-3B-1A 022-30-054 140 - Manufacturing and 710
General Office 5.63 99,576 8.87 883.14
5-3B-2 022-30-038 Undeveloped 10 - - -
5-3B-3 022-30-039 Undeveloped 5 - - -
5-3C 022-30-0354 Pump Station 0.19 - - 1.00

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Fiscal Year 2024/25 – LLMAD No. 95-1 Annual Report 13
Assmt ID
Assessor’s
Parcel
Number Land Use Description Acreage
Gross
Leasable
Area
Average
Trip Rate1
Estimated # of
Daily Special
Benefit Trips2
5-5A-1 022-30-055 815 - Discount Superstore 5.6 74,131 50.75 3,762.15 5-5A-2 022-30-056 915 – Gasoline/Service Station 0.59 3,182 1,181.07 3,758.16 5-5A-3 022-30-057 151 – Mini-Warehouse 3.15 114,707 13.34 1,530.19 5-6 022-30-041 Open Space 0 - - -
5-7 022-30-0494 Sewer Pump Station 9.12 8,500 11.03 1.00 Total Estimated Daily Special Benefit Trips 62,121.92
Internal Trip Reduction5 (19,257.79)
Total Special Benefit Trips 42,864.12
(1) Average Trip Rate per Day is from the Institute of Traffic Engineer’s, Trip Generation Report. 15 (2) Average Number of Special Benefit Trips per Day is the Average Trip Rate times each 1,000 square feet of gross leasable area. (3) Average Number of Special Benefit Trips per Day is the Average Trip Rate times number of hotel rooms for this parcel. (4) Pump Station trips are an estimate.
(5) The internal trip rate percentage was calculated by using the NCHRP 684 Internal Rate Capture Estimation Tool. 16

15 Trip Generation, 9th Edition: An Informational Report of the Institute of Transportation Engineers. (2012) Washington, DC: Institute of Transportation Engineers.
16 Bochner, Brian S., Hooper, Kevin, Sperry, Benjamin and Dunphy, Robert. National Cooperative Highway Research Program, Transportation Research Board of National Academies (2011). NCHRP Report 684 Enhancing Trip Capture Estimation for Mixed - Use Developments. Retrieved from onlinepubs.trb.org/onlinepubs/nchrp/nchrp_rpt_684.pdf

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5. METHOD OF ASSESSMENT

5.1 Introduction
The special benefits that accrue to the properties in the District are limited to those properties that abut an improved public street or which have been obligated by issuance of bonds for necessary public improvements (the “Benefited Parcels”). Other properties in the District receive only a general benefit from the work of the improvements, and there is also some general benefit that accrues to the community as a whole. As outlined in Section 4, the total amount of general benefit from the improvements is determined to be 5.04%.

The Benefited Parcels receive a special benefit proportionate to their net acreage and thus they are assessed on the basis of total net acreage for all costs associated with the maintenance and installation of the District’s improvements, with the following exceptions:
• Of the 9.12 acres of parcel 022-30-049 (sewer pump station), 5.51 acres is the pump station and is not assessable. The remaining 3.61 acres does not benefit from landscaping as much as other Benefited Parcels because it is dedicated to municipal sanitary sewer and storm facilities use and will not otherwise be developed. Therefore, it is assigned a special benefit equal to 50% of other Benefited Parcels.
• Parcel 022-30-035 (storm pump station) does not benefit from landscaping as much as other Benefited Parcels because it is dedicated to municipal sanitary sewer and storm facilities use and will not otherwise be developed. Therefore, it is assigned a special benefit equal to 50% of other Benefited Parcels.
• Parcel 022-29-037 and parcel 022-30-041 are dedicated to open space and therefore do not receive special benefit from the maintenance and improvements.

5.2 Method of Assessment Spread
The amount of assessment levied on each Benefited Parcel in the District, for Fiscal Year 2024/25, is $0.0381 per square foot. The assessment rate was determined by taking the Fiscal Year 2024/25 Net Amount to be assessed ($448,957) divided by the total net square footage of the District (11,794,540 sq. ft.).

The maximum assessment rate for Fiscal Year 2024/25 is approximately $0.0550, which is a preliminary number. Each year the maximum assessment rate per square foot is increased by the percentage change from April 1st of the prior year to April 1st of the current year in the U.S. Department of Labor, Bureau of Labor Statistics, Consumer Price Indexes, Pacific Cities and U.S. City Average, San Francisco-Oakland- Hayward. The April 1, 2024 CPI was not available at the time of writing of this report. For purposes of this report, the CPI increase was estimated by using the February 1, 2024 CPI.

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Fiscal Year 2024/25 – LLMAD No. 95-1 Annual Report 15

5.3 Maximum Assessment Rates
The following table provides the historical maximum assessment rate for Fiscal Year 2001/02 through the current fiscal year:

Fiscal Year CPI Percentage Increase(1) Assessment Rate Range(2) 2001/02 189.1 N/A $0.0120 $0.0300
2002/03 193.0 2.06% 0.0122 0.0306
2003/04 197.3 2.23% 0.0125 0.0313
2004/05 198.3 0.51% 0.0126 0.0315
2005/06 202.5 2.12% 0.0129 0.0321
2006/07 208.9 3.16% 0.0133 0.0331
2007/08 215.842 3.32% 0.0137 0.0342
2008/09 222.074 2.89% 0.0141 0.0352
2009/10 223.854 0.80% 0.0142 0.0355
2010/11 227.697 1.72% 0.0144 0.0361
2011/12 234.121 2.82% 0.0149 0.0371
2012/13 238.985 2.08% 0.0152 0.0379
2013/14 244.675 2.38% 0.0155 0.0388
2014/15 251.495 2.79% 0.0160 0.0399
2015/16 257.622 2.44% 0.0163 0.0409
2016/17 264.565 2.70% 0.0168 0.0420
2017/18 274.589 3.79% 0.0174 0.0436
2018/19 283.422 3.22% 0.0180 0.0450
2019/20 294.801 4.01% 0.0187 0.0468
2020/21 298.074 1.11% 0.0189 0.0473
2021/22 309.419 3.81% 0.0196 0.0491
2022/23 324.878 5.00% 0.0206 0.0515
2023/24 338.496 4.19% 0.0215 0.0537
2024/25 345.151 2.37% (3) 0.0220 0.0550
(1) Percentage increase from April 1 of the prior year to April 1 of the current year in the US Department of Labor, Bureau of Labor Statistics, Consumer Price Indexes, Pacific Cities and US City Average, San Francisco-Oakland-Hayward. (2) The left and right column indicate the minimum and maximum assessment rate, respectively. (3) The April 1, 2024 CPI was not available at the time of writing of this report. The Fiscal Year 2024/25 CPI increase was estimated using the February 1, 2024 CPI.

5.4 Appeals
Any property owner who feels that the amount of their assessment is in error as a result of incorrect information being used to apply the foregoing method of spread may file an appeal with the Finance Director of the City. Any such appeal is limited to the correction of an assessment during the current or, if before July 1, the upcoming fiscal year. Upon the filing of any such appeal, the Finance Director shall promptly review the information provided by the property owner and if he/she finds that the assessment should be modified, he/she shall have the authority to make the appropriate changes in the assessment roll. If any such changes are provided after the assessment roll has been filed with the County for collection, the Finance Director is authorized to refund to the property owner the amount of any approved reduction.

City of Milpitas
Fiscal Year 2024/25 – LLMAD No. 95-1 Annual Report 16

6. ASSESSMENT DIAGRAM

The following page provides a copy of the assessment diagram of the District.

City of Milpitas
Fiscal Year 2024/25 – LLMAD No. 95-1 Annual Report 17

7. ASSESSMENT ROLL
Assessor’s parcel identification, for each lot or parcel within the District, shall be based on the Santa Clara County Assessor’s secured roll data for the applicable year in which this report is prepared and is incorporated herein by reference.

A listing of assessor’s parcels assessed within the District for Fiscal Year 2024/25, along with the assessment amounts, is on file in the office of the City Clerk and incorporated herein by reference. Based on County Assessor’s secured roll data, current assessor’s parcels, including corrected and/or new assessor’s parcels, will be submitted and/or resubmitted to the Santa Clara County Auditor/Controller. The annual assessment amount to be levied and collected for the resubmitted parcel(s) shall be determined in accordance with the method of apportionment and assessment rate approved in this report. Therefore, if a single assessor’s parcel has a status change in development, other land use change, or subdivides into multiple assessor’s parcels, the assessment amounts applied to each of the new assessor’s parcels shall be recalculated and applied according to the approved method of apportionment and assessment rate rather than a proportionate share of the original assessment amount.

City of Milpitas
LLMAD No. 95-1
Final Billing Detail Report for Fiscal Year 2024/25
APN Situs Address Net Square Foot Fiscal Year 2024/25 Levy 022-29-016 301 RANCH DR 634,234 $24,141.98
022-29-034 430 N MCCARTHY BLVD 1,589,504 60,504.18
022-29-035 820 N MCCARTHY BLVD 1,363,864 51,915.20
022-29-037 565 N MCCARTHY BLVD 0 0.00
022-29-040 407N N N MCCARTHY BLVD 677,532 25,790.12
022-29-041 507N N N MCCARTHY BLVD 43,691 1,663.06
022-29-042 607N N N MCCARTHY BLVD 302,350 11,508.88
022-29-043 707 N MCCARTHY BLVD 320,732 12,208.60
022-29-044 807 N MCCARTHY BLVD 336,545 12,810.50
022-30-035 4,138 157.50
022-30-038 435,600 16,581.02
022-30-039 1207 N MC CARTHY BLVD 217,800 8,290.50
022-30-049 78,626 2,992.86
022-30-054 907 N MCCARTHY BLVD 245,330 9,338.42
022-30-055 1645 N MCCARTHY BLVD 243,936 9,285.36
022-30-056 1605 N MCCARTHY BLVD 25,875 984.90
022-30-057 1585 N MCCARTHY BLVD 137,040 5,216.38
022-30-058 0 0.00
022-30-059 0 0.00
022-53-001 275 RANCH DR 32,670 1,243.56
022-53-002 179 RANCH DR 53,579 2,039.46
022-53-003 125 RANCH DR 33,106 1,260.14
022-53-004 81 RANCH DR 26,136 994.86
022-53-005 41 RANCH DR 32,234 1,226.98
022-53-006 63 RANCH DR 51,836 1,973.14
022-53-007 11 RANCH DR 954,835 36,345.62
022-54-002 74 RANCH DR 25,265 961.68
022-54-003 84 RANCH AVE 44,431 1,691.26
022-54-008 50 RANCH DR 33,977 1,293.32
022-54-009 120 RANCH DR 368,953 14,044.12
022-54-010 110 RANCH DR 44,867 1,707.84
022-54-011 170 RANCH DR 57,064 2,172.10
022-54-012 200 RANCH DR 131,551 5,007.46
022-54-013 212 RANCH DR 10,019 381.36
022-54-014 190 RANCH DR 27,878 1,061.18
022-54-015 260 RANCH DR 77,537 2,951.42
022-54-016 12 RANCH DR 46,174 1,757.58
022-54-017 30 RANCH RD 143,312 5,455.16
022-54-018 40 RANCH DR 100,624 3,830.20
022-54-019 8,276 315.02
022-56-005 115 N MCCARTHY BLVD 88,427 3,365.94
022-56-006 135 N MCCARTHY BLVD 89,734 3,415.68
Slight variances may occur due to rounding
Copyright © 2013 by NBS Page 1 of 2 04/04/2024 11:45:38AM

City of Milpitas
LLMAD No. 95-1
Final Billing Detail Report for Fiscal Year 2024/25
APN Situs Address Net Square Foot Fiscal Year 2024/25 Levy 022-56-007 155 N MCCARTHY BLVD 90,169 3,432.26
022-56-010 205 N MCCARTHY BLVD 1,489,899 56,712.72
022-56-011 1,075,192 40,926.98
11,794,540 $448,956.5045 Accounts
Slight variances may occur due to rounding
Copyright © 2013 by NBS Page 2 of 2 04/04/2024 11:45:38AM

CITY OF MILPITAS
LANDSCAPING MAINTENANCE DISTRICT (LMD) 95-1
(N.T.S.)
2024-2025 FISCAL YEAR LANDSCAPE AREA FUNDED FOR MAINTENANCE

CITY OF MILPITAS

AGENDA REPORT
(AR)
Item Title: Adopt Resolutions Approving the Annual Engineer’s Report and Declaring Intention to Levy and Collect Assessments, and Provide Notice of Public Hearing for Landscaping and Lighting Maintenance Assessment District No. 98-1 - Sinclair Horizon (Staff Contact: Michael Silveira, City Engineer, 408-586- 3303; and Roberto Alonzo, Public Works – Engineering Division Manager, 408- 586-3316)
Category: Consent Calendar-Community Development
Meeting Date: 5/7/2024
Recommendation: Adopt a resolution approving the Annual Engineer’s Report, adopt a resolution declaring its intention to levy and collect assessments, and provide notice of public hearing to be held on June 4, 2024, for Landscaping and Lighting Maintenance Assessment District No. 98-1 - Sinclair Horizon.

BACKGROUND:

Landscaping and Lighting Maintenance Assessment No. 98-1 - Sinclair Horizon (LLMD 98-1 Sinclair Horizon) provides the maintenance and improvement of public landscaping, irrigation systems, and pedestrian walking path adjacent to Sinclair Frontage Road and Los Coches Creek abutting the Sinclair Horizon residential subdivision in the areas as shown on the attached location map (Attachment D). .

ANALYSIS:

Before the City Council may levy the annual assessments for LLMD 98-1 Sinclair Horizon, the Landscaping and Lighting Act of 1972 requires the Council to adopt a resolution approving the annual Engineer’s Report (Report) (Attachment A) evaluating the landscape and lighting maintenance district’s maintenance and improvement costs for Fiscal Year (FY) 2024-25. On March 5, 2024, the City Council directed the City Engineer to prepare the Report (Attachment C), which is included in the City Council packet. The proposed total assessment for FY 2024-25 is $538.42 per lot, with an assessment rate not exceeding the maximum assessment rate of $567.75. The FY 2024-25 rate is approximately 4.26% higher than the previous year FY 2023-24 rate of $516.44.

Staff recommends that the City Council adopt Resolutions to:
•Approve the Report, and
•Declare its intention to levy and collect an assessment and direct publishing of notice of a public hearing to be held on June 4, 2024 (Attachment B).

POLICY ALTERNATIVE(S):

Alternative 1: Not adopting the Resolutions for LLMD 98-1 Sinclair Horizon.

Pros: None.

Cons: If the City Council does not adopt the Resolutions according to the Landscaping and Lighting Act of 1972, the City will be unable to collect assessments for LLMD 98-1 Sinclair Horizon.

Reason Not Recommended: Staff recommends approving the Resolutions in order to levy and collect assessments for fiscal year 2024-25 to allow for the continuous maintenance and service of LLMD 98-1 Sinclair Horizon.

FISCAL IMPACT:

The levy and collection of assessments provides the City with the needed resources for the maintenance and the servicing of the improvements. The Fiscal Year 2024/2025 maintenance budget for LLMD 98-1 is estimated to be $70,183.00. The City also maintains an operating reserve, not to exceed the estimated maintenance costs.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):

The action is a fiscal activity of the City government or an action to create a City government funding mechanism that does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment and is not a project pursuant to Cal. Code of Regs., tit. 14, § 15378.

RECOMMENDATION:

Adopt a resolution approving the Annual Engineer’s Report, adopt a resolution declaring its intention to levy and collect assessments, and provide notice of the Public Hearing to be held on June 4, 2024, for Landscaping and Lighting Maintenance Assessment District No. 98-1 - Sinclair Horizon.

ATTACHMENT(S):
(a) Resolution Approving Annual Engineer’s Report
(b) Resolution Declaring Intention to Levy and Collect Assessments (c) Engineer’s Report for LLMD No. 98-1 Sinclair Horizon (d) Location Map

RESOLUTION NO. ______

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MILPITAS, APPROVING THE

ANNUAL REPORT FOR THE LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT NO. 98-1 FOR FISCAL YEAR 2024/25
The City Council of the City of Milpitas (hereafter referred to as the “City Council”) does resolve as follows:

WHEREAS, the City Council previously completed its proceedings in accordance with and pursuant to the Landscaping and Lighting Act of 1972, Part 2, Division 15 of the California Streets and Highways Code (commencing with Section 22500) (the “Act”) to establish the Landscaping and Lighting Maintenance Assessment District 98-1 (the “Assessment District”); and WHEREAS, the City Council has retained NBS for the purpose of assisting with the annual levy of the Assessment District, and the preparation and filing of the report required pursuant to Section 22622 of the Act (the “Annual Report”); and
WHEREAS, the City Council has, by previous resolution, ordered NBS to prepare and file such Annual Report; and
WHEREAS, NBS has prepared and filed such Annual Report with the City Clerk.

NOW, THEREFORE, the City Council of the City of Milpitas hereby finds, determines, and resolves as follows:

1. Approval of Report: The City Council hereby approves the Annual Report for the Assessment District concerning the levy of assessments as submitted by NBS for the fiscal year commencing July 1, 2024 and ending June 30, 2025.

2.The Assessment District exterior boundaries are as shown by a map filed in the office of the City Clerk, which map is made a part hereof by this reference.

PASSED AND ADOPTED this _______ day of ____________, 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

ATTEST: APPROVED:
_____________________________ _____________________________ Suzanne Guzzetta, City Clerk Carmen Montano, Mayor
APPROVED AS TO FORM:
_____________________________
Michael Mutalipassi, City Attorney

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MILPITAS,

DECLARING ITS INTENTION TO LEVY AND COLLECT ASSESSMENTS FOR THE LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT NO. 98-1 FOR FISCAL YEAR 2024/25
WHEREAS, the City Council previously completed its proceedings in accordance with and pursuant to the Landscaping and Lighting Act of 1972, Part 2, Division 15 of the California Streets and Highways Code (commencing with Section 22500) (the “Act”) to establish the Landscaping and Lighting Maintenance Assessment District No. 98-1 (the “Assessment District”); and WHEREAS, the City Council has retained NBS for the purpose of assisting with the annual levy of the Assessment District, and the preparation and filing of the report required pursuant to Section 22622 of the Act (the “Annual Report”); and
WHEREAS, the City Council adopted a Resolution approving the Annual Report for the Assessment District for Fiscal Year 2024/25.

NOW, THEREFORE, the City Council of the City of Milpitas hereby finds, determines, and resolves as follows:

1.Intention: The City Council hereby declares its intention to levy and collect assessments within the Assessment District to pay the costs of the improvements for the fiscal year commencing July 1, 2024 and ending June 30, 2025. The City Council finds that the public’s best interest requires such action.

2.Improvements: The improvements within the Assessment District include, but are not limited to: operating, maintaining and servicing of all public landscaping improvements, consisting of landscaping and grass. Operating, maintaining and servicing costs include, but are not limited to: personnel, materials, electrical energy and water. Services provided include all necessary service, operations, administration, and maintenance required to keep the improvements in a healthy, vigorous, and satisfactory condition. A project renovating the landscape and irrigation improvements in the Assessment District was completed in Fiscal Year 2023/24 and will continue to planting renovation through Fiscal Year 2025/26.

3.Assessment District Boundaries: The boundaries of the Assessment District are as shown by the assessment diagram filed in the offices of the City Clerk, which map is made a part hereof by reference.

4.Annual Report: Reference is made to the Annual Report prepared by NBS, on file with the City Clerk, for a full and detailed description of the improvements, the boundaries of the Assessment District and the zones therein, and the proposed assessments upon assessable lots and parcels of land within the Assessment District.

5.Notice of Public Hearing: The City Council hereby declares its intention to conduct a public hearing concerning the levy of assessments in accordance with Section 22629 of the Act. All objections to the assessment, if any, will be considered by the City Council. The public hearing will be held on Tuesday, June 4, 2024 at 7:00 pm or as soon thereafter as is feasible in the meeting place of the City Council located at 455 E. Calaveras Boulevard,

2 Resolution No. ___
Milpitas, CA 95035. The City Council further orders the City Clerk to publish notice of this resolution in accordance with Section 22626(a) of the Act.

6.Increase of Assessment: The maximum assessment is not proposed to increase from the previous year above that was previously approved by the property owners (as “increased assessment” is defined in Section 54954.6 of the Government Code).

PASSED AND ADOPTED this _____ day of ___________, 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

ATTEST: APPROVED:
_____________________________ _____________________________ Suzanne Guzzetta, City Clerk Carmen Montano, Mayor
APPROVED AS TO FORM:
_____________________________
Michael Mutalipassi, City Attorney

nbsgov.com
Prepared by:

Corporate Headquarters
32605 Temecula Parkway, Suite 100
Temecula, CA 92592
Toll free: 800.676.7516

Fiscal Year 2024/25 Annual Report For:

Landscaping and Lighting Maintenance
Assessment District No. 98-1
April 2024

CITY OF MILPITAS
LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT NO. 98-1 455 East Calaveras Boulevard
Milpitas, California 95035
(408) 586-3000

CITY COUNCIL
Carmen Montano, Mayor
Evelyn Chua, Vice Mayor
Anthony Phan, Council Member
Hon Lien, Council Member
Garry Barbadillo, Council Member

CITY STAFF
Michael Silveira, PE, City Engineer
Luz Cofresi-Howe, Finance Director/Risk Manager
Christian Di Renzo, Public Works Director

NBS
Tim Seufert, Client Services Director
Amanda Welker, Project Manager
Tom Zetz, Administrator

TABLE OF CONTENTS

1. Engineer’s Letter ............................................................................................................. 1

2. Plans and Specifications .................................................................................................. 3

2.1 Location of Improvements ........................................................................................ 3

2.2 Landscaping Improvements ...................................................................................... 3

2.3 Capital Improvements ............................................................................................... 4

2.4 Overhead ................................................................................................................... 4

3. Estimate of Costs ............................................................................................................ 5

3.1 District Budget ........................................................................................................... 5

4. Special and General Benefit ............................................................................................ 7

4.1 Introduction ............................................................................................................... 7

4.2 Special Benefits Identified ......................................................................................... 7

4.3 General Benefits Identified ....................................................................................... 8

4.4 Quantification of Benefit ........................................................................................... 8

5. Method of Assessment ................................................................................................. 13

5.1 Method of Assessment Spread ............................................................................... 13

5.2 Maximum Assessment Rates .................................................................................. 14

5.3 Appeals .................................................................................................................... 14

6. Assessment Diagram ..................................................................................................... 15

7. Assessment Roll ............................................................................................................ 16

City of Milpitas
Fiscal Year 2024/25 – LLMAD No. 98-1 Annual Report 1

1. ENGINEER’S LETTER
WHEREAS, in 1998, the City Council of the City of Milpitas (the “City”), State of California, under the Landscaping and Lighting Act of 1972 (the “Act”), created the City of Milpitas Landscaping and Lighting Maintenance Assessment District No. 98-1 (the “District”) to provide for the continued maintenance, operation, and administration of various improvements within the boundaries of the District; and WHEREAS, the City Council has directed NBS to prepare and file a report for Fiscal Year 2024/25 in accordance with Chapter 1, Article 4 of the Act presenting plans and specifications describing the general nature, location, and extent of the improvements to be maintained; an estimate of the costs to maintain, operate, and service the improvements for the District for the referenced fiscal year; a diagram for the District showing the area and properties to be assessed; and an assessment of the estimated costs to maintain and service the improvements, stating the net amount to be assessed upon all assessable lots or parcels within the District in proportion to the special benefit received.

NOW THEREFORE, the following assessments have been calculated in accordance with the assessment methodology adopted and approved by the City Council at the time of District formation, and are made to cover the portion of the estimated costs of maintenance, operation, and servicing of the improvements, to be paid by the assessable real property within the District in proportion to the special benefit received:

District Parcels
2024/25
Maximum Assessment
Rate per Lot(1)
2024/25
Actual Assessment
Rate per Lot
2024/25
Net Amount to be
Assessed(2)(3)
LLMAD 98-1 98 $567.75 $538.42 $52,763.20
(1) The April 1, 2024 Consumer Price Index (CPI) provided by the U.S. Bureau of Labor Statistics was not available at the time of writing of this report. The Fiscal Year 2024/25 CPI increase was estimated using the February 1, 2024 CPI. (2) Amounts placed on the tax roll include the 1% Santa Clara County Collection Fee. (3) This amount is only an estimate and does not reflect the final billed amount with rounding adjustments. Refer to Section 7 for the rounded figure.

I identified all parcels which will have a special benefit conferred upon them from the improvements described in District’s Plans and Specifications section of this Engineer’s Report (the “Benefited Parcels”).

For particulars as to the identification of said parcels, reference is made to the Assessment Diagram, a copy is on file in the office of the City Clerk.

I have assessed the costs and expenses of the improvements upon the Benefited Parcels. In making such assessment:
a. The proportionate special benefit derived by each Benefited Parcel from the improvements was determined in relationship to the entirety of the maintenance costs of the improvements; b. No assessment has been imposed on any Benefited Parcel which exceeds the reasonable cost of the proportional special benefit conferred on such parcel from the improvements; and c. Any general benefits from the improvements have been separated from the special benefits and only special benefits have been assessed.

City of Milpitas
Fiscal Year 2024/25 – LLMAD No. 98-1 Annual Report 2
I, the undersigned, respectfully submit the enclosed Engineer’s Report and, to the best of my knowledge, information and belief, the Engineer’s Report, Assessments, and the Assessment Diagrams herein have been prepared and computed in accordance with the order of the City Council of the City of Milpitas, the Act, and Article XIIID.

Michael Silveira, City Engineer

City of Milpitas
Fiscal Year 2024/25 – LLMAD No. 98-1 Annual Report 3

2. PLANS AND SPECIFICATIONS
The District provides for the continued administration, maintenance, operation, and servicing of various improvements located within the public right-of-way and dedicated easements within the boundaries of the District.

2.1 Location of Improvements
The District is located in the City of Milpitas, bounded on the east by Sinclair Frontage Road, on the west by Berryessa Creek, and on the north by Los Coches Street. The improvements maintained include public landscaping and irrigation improvements, including jogging paths, planter walls, grass berms, and ornamental planting, which are primarily situated within the public rights-of-way and dedicated public by easements within the District.

2.2 Landscaping Improvements
The landscaping and irrigation improvements were installed within the District in order to enhance the overall visual appearance for adjacent parcels. The improvements consist of the maintenance and operation of any or all public landscaping and irrigation improvements adjacent to curbs, including asphalt concrete jogging paths, planter walls, grass berms, and appurtenant irrigation systems; ornamental planting including lawns, shrubs, and trees, including necessary repairs, replacements, water, electric current, spraying, care, supervision, debris removal and all other items of work necessary and incidental for proper maintenance and operation thereof. The landscaping and irrigation improvements are collectively referred to as “landscaping improvements.” All such work will be performed in the following areas:

2.2.1 BERRYESSA CREEK
Due to the widening of the creek, improvements in Berryessa Creek were removed. Any improvements maintained in this reach (asphalt concrete jogging path, exercise equipment, planting, and irrigation) will no longer be maintained or improved.

2.2.2 LOS COCHES CREEK

1. A strip of land 812 feet long, 14 feet in width along the south bank of Los Coches Creek adjacent to Tract 9018. The improvements include an asphalt concrete jogging path, exercise equipment, planting, and irrigation.

2. A strip of land 5.5 feet wide within the Los Coches Street right-of-way between the back of sidewalk and the right-of-way along the south side of Los Coches Street between Berryessa Creek and Sinclair Frontage Road. The improvements include planting and irrigation.

City of Milpitas
Fiscal Year 2024/25 – LLMAD No. 98-1 Annual Report 4

2.3 Capital Improvements
In 2023, the City completed the replacement of the irrigation controller and repairs of the irrigation system along portions of Los Coches Street and Sinclair Frontage Road. The City is planning to continue planting renovations in 2025/2026..

2.4 Overhead
In addition to the hard costs of maintaining the improvements mentioned above, the City will incur costs for staff time and expenses related to the management and maintenance of the improvements within the District. Staff time includes oversight and coordination of both City and contractor provided services, annual tax roll preparation, and addressing property owner questions and concerns. These activities are directly related to the maintenance of the improvements, and without them the improvements could not be efficiently completed or properly maintained on an ongoing basis.

City of Milpitas
Fiscal Year 2024/25 – LLMAD No. 98-1 Annual Report 5

3. ESTIMATE OF COSTS
The estimated costs of maintenance and servicing of the improvements as described in the Plans and Specifications are summarized below.

3.1 District Budget
The Fiscal Year 2024/25 estimated cost budget for the maintenance and servicing of the improvements is as follows:

Description Fiscal Year 2024/25 Budget
Maintenance Staff(1) $32,085
Capital Equipment 0
Supplies 2,898
Utilities (Water, Electricity) 11,800
Reserve Fund 0
Capital Improvement Program 23,400
Maintenance Costs 70,183

NBS $4,000
City Staff District Administration 400
County Auditor-Controller Fee(2) 500
District Specific Costs $4,900

Total District Costs $75,083
General Benefit Contribution(3) (22,318)
Operating Reserve Contribution 0
Capital Improvement Fund Contribution 0
Net Amount to be Assessed $52,765

Total District Lots 98
Rate per Lot(4) $538.42
Maximum Rate Per Lot – 2024/25(5) $567.75
(1) The City’s Department of Public Works is the provider of Maintenance Services. (2) County Auditor-Controller Fee is currently 1% of the total levy submittal. (3) General Benefit Contribution is not applied to District Specific Costs, as these are special benefits to the District. (4) The Rate per Lot equals the Net Amount to be Assessed / Total District Lots. The Rate per Lot cannot exceed the maximum rate.
(5) The April 1, 20 24 CPI was not available at the time of writing of this report. The Fiscal Year 20 24/25 CPI increase was estimated by using the February 1, 2024 CPI.

City of Milpitas
Fiscal Year 2024/25 – LLMAD No. 98-1 Annual Report 6

3.1.1 OPERATING RESERVE
It is the intent of the City to maintain an operating reserve which shall not exceed the estimated costs of maintenance and servicing of the improvements prior to December 10 of the fiscal year, or when the City expects to receive its apportionment of special assessments from the County, whichever is later. The operating reserve balance information for the District is as follows:

Estimated Fiscal Year Ending 6/30/2024 Operating Reserve Cash Balance $109,925 Operating Reserve Collection for Fiscal Year 2024/25 0
Estimated Fiscal Year Ending 6/30/2025 Operating Reserve Cash Balance $109,925

3.1.2 CAPITAL IMPROVEMENT BUDGET
The City completed the replacement of the irrigation controller and repairs of the irrigation system along portions of Los Coches Street and Sinclair Frontage Road in 2023. The City is planning to continue planting renovations in 2025/2026. As of March 31, 2024, the balance available for the Capital Improvement Project was $98,000. The City will utilize these funds, along with an annual collection of $23,4000 via the District from Fiscal Year 2024/25 to Fiscal Year 2028/29, to finance the project.

City of Milpitas
Fiscal Year 2024/25 – LLMAD No. 98-1 Annual Report 7

4. SPECIAL AND GENERAL BENEFIT
The improvements defined in Section 2 are expected to confer certain special benefits to parcels within the District. The special benefits are described in this section. Figures in this section are derived from a Special v. General Benefit Analysis performed in Fiscal Year 2014/15.

4.1 Introduction
Pursuant to Article XIIID, all parcels that receive a special benefit conferred upon them as a result of the installation, implementation and maintenance of the improvements, services and activities shall be identified, and the proportionate special benefit derived by each identified parcel shall be determined in relationship to the entire costs of the installation, implementation and maintenance of the improvements, services and activities.

Article XIIID, Section 4(a) of the California Constitution limits the amount of any assessment to the proportional special benefit conferred on the property. Proposition 218 requires that the City separate the general benefit from special benefit, so that only special benefit may be assessed to properties within the District. Furthermore, Article XIIID also provides that publicly owned properties must be assessed unless there is clear and convincing evidence that those properties receive no special benefit from the assessment.

4.2 Special Benefits Identified
The improvements described in Section 2 are expected to confer certain special benefits to parcels within the District. The special benefits conferred to property within the District can be grouped into two primary benefit categories: aesthetic benefit and safety benefit. The two district benefit categories are further expanded upon below.
• Improved Aesthetics: The aesthetic benefit relates to the increase in the overall aesthetics as a result of the ongoing maintenance, servicing and operation of the improvements within the District. Street landscaping improvements improve the livability, commercial activity, appearance and desirability for properties within the District. Regular maintenance ensures that the improvements do not reach a state of deterioration or disrepair so as to be materially detrimental to properties adjacent to or in close proximity to the improvements. The overall appeal of the District is enhanced when improvements are in place and kept in a healthy and satisfactory condition. Conversely, appeal decreases when improvements are not well-maintained, unsafe, or destroyed by the elements or vandalism. Streetscapes have a significant effect on how people view and interact with their community1. With streetscapes that are safe and inviting, people are more likely to walk, which can help reduce automobile traffic, improve public health, stimulate local economic activity and attract residents and visitors to the community2. • Increased Safety: Well maintained areas mitigate crime, especially vandalism, and enhance pedestrian safety. A recent study found that after landscape improvements were installed, there

1 Victoria Transport Policy Institute. (2011). Community Livability. Helping to Create Attractive, Safe, Cohesive Communities. Retrieved from http://www.vtpi.org/tdm/tdm97.htm.
2 Ibid.

City of Milpitas
Fiscal Year 2024/25 – LLMAD No. 98-1 Annual Report 8
was a 46% decrease in crash rates across urban arterial and highway sites and a second study reviewed found a 5% to 20% reduction in mid-block crashes after trees and planters in urban arterial roads were put in place. In addition, there is less graffiti, vandalism, and littering in outdoor spaces with natural landscapes than in comparable plant-less spaces3. The Victoria Transport Policy Institute has found that streetscapes reduce traffic speeds and when combined with improved pedestrian crossing conditions can significantly reduce collisions4.

4.3 General Benefits Identified
Section 4 of Article XIIID of the California Constitution provides that once a local agency which proposes to impose assessments on property has identified those parcels that will have special benefits conferred upon them and upon which an assessment will be imposed, the local agency must next “separate the general benefits from the special benefits conferred,” and only the special benefits can be included in the amount of the assessments imposed.

General benefit is an overall and similar benefit to the public at large resulting from the maintenance of the District’s improvements provided by the assessments levied. The improvements to be maintained by the District are located within the District boundaries only. There will be no District maintenance activities provided for improvements located outside of the District boundaries.

The ongoing maintenance of the District improvements will provide aesthetic and safety benefits to the property within the District. However, it is recognized that the ongoing District maintenance activities will also provide a level of benefit to some property within proximity to the District, as well as individuals passing through. Therefore, the general benefit created as a result of the District maintenance activities has been considered.

4.4 Quantification of Benefit
As a result of the maintenance and operation of the improvements, there will be a level of general benefit to people that do not live in or intend to conduct business within the District. In order for property within the District to be assessed only for that portion of special benefits received from the district’s maintenance activities, general benefits provided by the ongoing maintenance of the improvements needs to be quantified. The amount of general benefit that is provided from the District’s maintenance activities cannot be funded via property owners’ assessments.

The landscaping improvements are primarily located along Los Coches Street and Sinclair Frontage Road and within the subdivision along Los Coches Creek and Berryessa Creek. A portion of the maintained landscaping provides some general benefit to pass-thru traffic. Per the City, there is 52,912 square feet of landscaping being maintained.

Los Coches Creek and Berryessa Creek
As result of the District maintenance activities, there will be a level of general benefit to pedestrians and vehicular traffic that are not associated with property in the District. As expressed by the Court in Beutz v.

3 Wolf, Kathleen L. (2010). Safe Streets – A Literature Review. In: Green Cities: Good Health (www.greenhealth.washington.edu). College of the Environment, University of Washington.
4 Victoria Transport Policy Institute. (2011). Community Livability. Helping to Create Attractive, Safe, Cohesive Communities. Retrieved from http://www.vtpi.org/tdm/tdm97.htm.

City of Milpitas
Fiscal Year 2024/25 – LLMAD No. 98-1 Annual Report 9
County of Riverside (2010), “... courts of this state have long recognized that virtually all public improvement projects provide general benefits." A route beginning or ending with a parcel within the District does not include the “general public” for purposes of determining general benefit. The landscaping improvements along the south side of Los Coches Creek and Berryessa Creek are local in nature, however even though they are intended primarily for localized access, there is some portion of pedestrian traffic that may not be accessing the adjacent properties. The landscaping improvements are located adjacent to the backyard of homes, and access is only available by walking or bicycling. There is no vehicular access to these improvements.

The Summary of Travel Trends, 2009 National Household Travel Survey (NHTS) prepared by the U.S.

Department of Transportation Federal Highway Administration analyzed the number of person trips by various modes of transportations such as private vehicle, transit, walking or some other means of transportation. According to the Pacific Division data extracted from the 2009 NHTS database, of the annual 181,703 (in millions) total person trips, 21,252 (in millions) or 11.70% of those person trips were made by using walking as their mode of transportation, and 2,066 (in millions) or 1.14% of those person trips were made by bicycling5.

According to the U.S. Census Bureau (2010), the average household size in the City is 3.34 persons6. Based on this average household size, and considering there are 98 residential units within the District, there are approximately 327 people residing within the District boundaries. There are an estimated 163 residential units in close proximity, but outside of the District boundaries. Based on the City’s average household size, there are approximately 544 persons residing outside of the District boundaries, but have access to the landscaping improvements.

Community
Estimated Number
of Residential Units
Estimated
Number of Persons(1)
District 98 327
Sundrop Subdivision 83 277
Sinclair Renaissance Subdivision 80 267
Total Residential Population 261 871
(1) U.S. Census Bureau (2010) average household size in the City is 3.34 persons.7

In order to determine the estimated total number of persons who are within close proximity to the landscaping improvements, and would utilize walking or bicycling as their mode of transportation, we applied the 12.84% (11.70% walking, 1.14% bicycling) of person trips reported from the NHTS Pacific Division study, to the total nearby residential population (871). There are approximately 112 people within close proximity of the District that utilize walking or bicycling as their mode of transportation.

In order to determine the portion of the 112 persons that reside within the District, we applied the 2009 NHTS walking trip percentage (12.84%) to the District population (327). Approximately 42 people within the

5 U.S Department of Transportation. Federal Highway Administration. (2011). Summary of Travel Trends: 2009 National Household Travel Survey. (Report No. FHWA-PL-11-022). Retrieved from http://nhts.ornl.gov 6 U.S. Census Bureau. (2010). Profile of General Population and Housing Characteristics: 2010, 2010 Demographic Profile Data. Milpitas, C.A. Retrieved March 23, 2015, http://quickf acts.census.gov/qf d/states/06/0647766.html 7 Ibid.

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Fiscal Year 2024/25 – LLMAD No. 98-1 Annual Report 10
District boundaries use walking or bicycling as their primary mode of transportation. Therefore, the total surrounding neighborhood area population, located outside of the District boundaries, but in close proximity the landscaping improvements, that uses walking or bicycling as their primary mode of transportation is estimated to be 70 people.

Community
Estimated Number of
Persons
District 42
Sundrop Subdivision 36
Sinclair Renaissance Subdivision 34
Walking or Bicycling Population 112

In order to obtain a better picture of the overall level of general benefit provided by the landscaping improvements, the pedestrian traffic that utilizes walking or bicycling as the mode of transportation that will seek out and use the District improvements, but live outside of the District, must be considered. The 2009 NHTS further details the purposes of the reported walking (21,252 in millions) and bicycling (2,066 in millions) trips; based on the property types people entering the District would most likely do so for social or recreational activities.

The following details the number of walking and bicycling trips, based on the 2009 NHTS study, for each of the activities that are the most likely reasons people outside of the District would use the landscaping improvements:

Trip Purpose
Number of Walking or
Bicycling Trips (in millions)
Social/Recreational 6,442
Total 6,442
Of the total number of walking and bicycling trips reported, 6,442 (in millions) or 27.63% are for purposes that persons outside of the District may use the landscaping improvements. Applying this percentage (27.63%) to the number of people walking or bicycling as their mode of transportation and that reside outside of the District (70), there are approximately 19 people (general benefit) that may use the landscaping improvements, but do not reside within the District. Taking the 19 people that may walk or bicycle, but reside outside of the District, divided by total residential population with access to the landscaping improvements (871), the estimated percentage of persons, engaging in what is considered general benefit because they do not reside within the District, represents 2.21%.

Los Coches Street and Sinclair Frontage Road
The City does not have a study showing traffic volume along Los Coches Street and Sinclair Frontage Road along the District boundaries. The portion of the maintained landscaping that is located along Los Coches Street and Sinclair Frontage Road provides some general benefit to pass-through traffic. Before the determination and allocation of the percentage of special and general benefit for the District can be made, the estimated pass-through traffic must be computed. The pass-through trips are vehicles driving along the

City of Milpitas
Fiscal Year 2024/25 – LLMAD No. 98-1 Annual Report 11
maintained streets within the District for a portion of their trips, but not living or conducting business in the District and benefiting from the landscaping improvements in place.

The Sundrop and Sinclair Renaissance residential communities are located directly across the street and next to the District, and vehicles entering and/or exiting these communities in all likelihood are passing by a portion of the landscaping improvements for a portion of their trip. In lieu of having a study that identifies the pass-through traffic, the estimated number of trips generated for each community has been calculated based on the number of units and average number of trips per dwelling unit.

Community
Number of
Residential Units(1)
Estimated Number of
Daily Vehicle Trips(2)
% of Total Daily
Vehicle Trips(3)
District 98 933.0 44.34%
Sundrop Subdivision 83 790.2 37.56%
Sinclair Renaissance Subdivision 80 380.8 18.10%
Total 261 2,104.0 100.00%
(1) Number of Residential Units is from the City’s Approved Projects map.8 (2) Per the ITE Trip Generation Report a single family residence generates an average of 9.52 trips per dwelling unit.9 (3) Number of daily trips has been reduced by 50% to account for vehicles entering and exiting the community from the opposite direction on Sinclair Frontage Road, and not driving along the portion of Los Coches Street and Sinclair Frontage Road with landscaping improvements maintained by the District.

As detailed above, based on the average number of daily vehicle trips generated for the communities in close proximity to the District, 1,171 (55.66%) are generated by residential units located outside of the District (general benefit).

All Locations and Landscaping Improvements – Residential Pass-thru Benefit The general benefit percentages determined in the previous sections for Los Coches Creek and Berryessa Creek (2.21%) and Los Coches Street and Sinclair Frontage Road (55.66%) were then applied to each corresponding location with landscaping improvements. The landscaping square footage being maintained by the District was provided by the City’s Public Works Department. The general benefit percentage for each street type was multiplied by the total square footage being maintained for such street. The general benefit square footage was summed for all street segments and divided into the total square footage of all landscaping maintenance. The result is the combined general benefit percentage. The following table details this calculation.

Street Name
Total Square
Footage
General Benefit
Percentage
General Benefit Square
Footage
Los Coches Creek 4,572 2.21% 101
Berryessa Creek 21,025 2.21% 465
Los Coches Street 24,747 55.66% 13,773
Sinclair Frontage 2,568 55.66% 1,429
Totals: 52,912 15,768
Landscaping General Benefit 29.80%

8 City of Milpitas. (2013). Approved Development Projects. Retrieved from http://www.ci.milpitas.ca.gov/government/planning/proj_approved.asp 9 Trip Generation, 9th Edition: An Informational Report of the Institute of Transportation Engineers. (2012). Washington, DC: Institute of Transportation Engineers.

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Fiscal Year 2024/25 – LLMAD No. 98-1 Annual Report 12
Based on the above calculations, the general benefit portion of the improved aesthetics and increased safety resulting from the landscaping improvements is estimated to be 29.80%.

Public at Large General Benefit
Given the location and nature of the improvements, it is very unlikely the public at large would seek out or use the landscaping improvements within the District. In addition, there are more direct routes to access the industrial complexes/businesses located to the south of the District than the 2 lane Los Coches Street and Sinclair Frontage Road. Nevertheless, it is perceivable that members of the public at large may pass- thru a portion of the landscaping improvements, even if it’s lost or leisure traffic. As such, general benefit of 2.00% has been assigned for the landscaping improvements to the public at large

4.4.1 COLLECTIVE DISTRICT-WIDE GENERAL BENEFIT
Since the District is comprised of improved aesthetics and increased safety benefits resulting from the collective landscaping improvements, the activity of both pedestrians and vehicles, and the public at large must be addressed in a collective form rather than independently. The sum of the calculated general benefits is the total general benefit related to all pass-thru traffic. This general benefit result is provided in the table below:

Residential Pass-thru General Benefit 29.80%
Public at Large General Benefit 2.00%
Total General Benefit 31.80%
The general benefit, which is the percentage of the total budget that must be funded through sources other than assessments, is 31.80%. The special benefit then, which is the percentage of the budget that may be funded by assessments, is 68.20%.

City of Milpitas
Fiscal Year 2024/25 – LLMAD No. 98-1 Annual Report 13

5. METHOD OF ASSESSMENT

5.1 Method of Assessment Spread
All parcels in the District on which residential dwellings will be constructed specially benefit from the improvements to an equivalent extent. These parcels are therefore assessed on a per lot basis for the maintenance and operation of the District, including incidentals and appurtenances, and will include all the costs of maintenance and/or operating the improvements. As outlined in Section 4, the total amount of general benefit from the improvements is determined to be 31.80%.

The preliminary maximum assessment rate for Fiscal Year 2024/25 is $567.75. The actual assessment rate levied on each taxable parcel for Fiscal Year 2024/25 is $538.42.

Each year the maximum assessment rate shall be increased by the percentage change from April 1st of the prior year to April 1st of the current year by the U.S. Department of Labor, Bureau of Labor Statistics, Consumer Price Indexes, Pacific Cities and U.S. City Average, San Francisco-Oakland-Hayward. The April 1, 2024 CPI was not available at the time of writing of this report. For purposes of this report, the CPI increase was estimated by using the February 1, 2024 CPI.

City of Milpitas
Fiscal Year 2024/25 – LLMAD No. 98-1 Annual Report 14

5.2 Maximum Assessment Rates
The following table provides the historical maximum assessment rates for Fiscal Year 2000/01 through the current fiscal year:

Fiscal Year CPI Percentage Increase(1) Maximum Rate
2000/01 178.7 N/A $292.803
2001/02 189.1 5.82% 309.844
2002/03 193.0 2.06% 316.234
2003/04 197.3 2.23% 323.280
2004/05 198.3 0.51% 324.918
2005/06 202.5 2.12% 331.800
2006/07 208.9 3.16% 342.286
2007/08 215.842 3.32% 353.661
2008/09 222.074 2.89% 363.872
2009/10 223.854 0.80% 366.789
2010/11 227.697 1.72% 373.086
2011/12 234.121 2.82% 383.611
2012/13 238.985 2.08% 391.581
2013/14 244.675 2.38% 400.904
2014/15 251.495 2.79% 412.079
2015/16 257.622 2.44% 422.118
2016/17 264.565 2.70% 433.494
2017/18 274.589 3.79% 449.919
2018/19 283.422 3.22% 464.392
2019/20 294.801 4.01% 483.037
2020/21 298.074 1.11% 488.400
2021/22 309.419 3.81% 506.988
2022/23 324.878 5.00% 532.318
2023/24 338.496 4.19% 554.632
2024/25 345.151 2.37%(2) 567.755
(1) Percentage increase from April 1 of the prior year to April 1 of the current year in the US Department of Labor, Bureau of Labor Statistics, Consumer Price Index, Pacific Cities and US City Average, San Francisco-Oakland-Hayward. (2) The April 1, 2024 CPI was not available at the time of writing of this report. The Fiscal Year 2024/25 CPI increase was estimated using the February 1, 2024 CPI.

5.3 Appeals
Any property owner who feels that the amount of their assessment is in error as a result of incorrect information being used to apply the foregoing method of spread, may file an appeal with the Finance Director of the City. Any such appeal is limited to correction of an assessment during the current or, if before July 1, the upcoming fiscal year. Upon the filing of any such appeal, the Finance Director shall promptly review the information provided by the property owner and if he/she finds that the assessment should be modified, he/she shall have the authority to make the appropriate changes in the assessment roll. If any such changes are provided after the assessment roll has been filed with the County for collection, the Finance Director is authorized to refund to the property owner the amount of any approved reduction.

City of Milpitas
Fiscal Year 2024/25 – LLMAD No. 98-1 Annual Report 15

6. ASSESSMENT DIAGRAM

The following page provides a copy of the assessment diagram of the District.

City of Milpitas
Fiscal Year 2024/25 – LLMAD No. 98-1 Annual Report 16

7. ASSESSMENT ROLL
Assessor’s parcel identification, for each lot or parcel within the District, shall be based on the Santa Clara County Assessor’s secured roll data for the applicable year in which this report is prepared and is incorporated herein by reference.

A listing of assessor’s parcels assessed within the District for Fiscal Year 2024/25, along with the assessment amounts, is on file in the office of the City Clerk and incorporated herein by reference. Based on County Assessor’s secured roll data, current assessor’s parcels, including corrected and/or new assessor’s parcels, will be submitted and/or resubmitted to the Santa Clara County Auditor/Controller. The annual assessment amount to be levied and collected for the resubmitted parcel(s) shall be determined in accordance with the method of apportionment and assessment rate approved in this report. Therefore, if a single assessor’s parcel has a status change in development, other land use change, or subdivides into multiple assessor’s parcels, the assessment amounts applied to each of the new assessor’s parcels shall be recalculated and applied according to the approved method of apportionment and assessment rate rather than a proportionate share of the original assessment amount.

City of Milpitas
LLMAD No. 98-1
Final Billing Detail Report for Fiscal Year 2024/25
APN Assessment ID Situs Address Fiscal Year 2024/25 Levy 086-48-001 1 872 CAMERON CIR $538.40
086-48-002 2 868 CAMERON CIR 538.40
086-48-003 3 864 CAMERON CIR 538.40
086-48-004 4 860 CAMERON CIR 538.40
086-48-005 5 856 CAMERON CIR 538.40
086-48-006 6 852 CAMERON CIR 538.40
086-48-007 7 848 CAMERON CIR 538.40
086-48-008 8 844 CAMERON CIR 538.40
086-48-009 9 840 CAMERON CIR 538.40
086-48-010 10 836 CAMERON CIR 538.40
086-48-011 11 832 CAMERON CIR 538.40
086-48-012 12 828 CAMERON CIR 538.40
086-48-013 13 824 CAMERON CIR 538.40
086-48-014 14 820 CAMERON CIR 538.40
086-48-015 15 816 CAMERON CIR 538.40
086-48-016 16 812 CAMERON CIR 538.40
086-48-017 17 808 CAMERON CIR 538.40
086-48-018 18 804 CAMERON CIR 538.40
086-48-019 19 800 CAMERON CIR 538.40
086-48-020 20 1004 CAMERON PL 538.40
086-48-021 21 1000 CAMERON PL 538.40
086-48-022 22 996 CAMERON PL 538.40
086-48-023 23 992 CAMERON CIR 538.40
086-48-024 24 988 CAMERON CIR 538.40
086-48-025 25 984 CAMERON CIR 538.40
086-48-026 26 980 CAMERON CIR 538.40
086-48-027 27 976 CAMERON CIR 538.40
086-48-028 28 972 CAMERON CIR 538.40
086-48-029 29 968 CAMERON CIR 538.40
086-48-030 30 964 CAMERON CIR 538.40
086-48-031 31 960 CAMERON CIR 538.40
086-48-032 32 956 CAMERON CIR 538.40
086-48-033 33 952 CAMERON CIR 538.40
086-48-034 34 948 CAMERON CIR 538.40
086-48-035 35 944 CAMERON CIR 538.40
086-48-036 36 940 CAMERON CIR 538.40
086-48-037 37 936 CAMERON CIR 538.40
086-48-038 38 932 CAMERON CIR 538.40
086-48-039 39 928 CAMERON CIR 538.40
086-48-040 40 924 CAMERON CIR 538.40
086-48-041 41 920 CAMERON CIR 538.40
086-48-042 42 916 CAMERON CIR 538.40
Slight variances may occur due to rounding
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City of Milpitas
LLMAD No. 98-1
Final Billing Detail Report for Fiscal Year 2024/25
APN Assessment ID Situs Address Fiscal Year 2024/25 Levy 086-48-043 43 912 CAMERON CIR 538.40
086-48-044 44 908 CAMERON CIR 538.40
086-48-045 45 904 CAMERON CIR 538.40
086-48-046 46 900 CAMERON CIR 538.40
086-48-047 47 896 CAMERON CIR 538.40
086-48-048 48 892 CAMERON CIR 538.40
086-48-049 49 888 CAMERON CIR 538.40
086-48-050 50 884 CAMERON CIR 538.40
086-48-051 51 880 CAMERON CIR 538.40
086-48-052 52 876 CAMERON CIR 538.40
086-48-053 53 899 CAMERON CIR 538.40
086-48-054 54 903 CAMERON CIR 538.40
086-48-055 55 907 CAMERON CIR 538.40
086-48-056 56 911 CAMERON CIR 538.40
086-48-057 57 915 CAMERON CIR 538.40
086-48-058 58 211 CAMERON CT 538.40
086-48-059 59 203 CAMERON CT 538.40
086-48-060 60 195 CAMERON CT 538.40
086-48-061 61 200 CAMERON CT 538.40
086-48-062 62 208 CAMERON CT 538.40
086-48-063 63 216 CAMERON CT 538.40
086-48-064 64 207 WHITE CT 538.40
086-48-065 65 199 WHITE CT 538.40
086-48-066 66 191 WHITE CT 538.40
086-48-067 67 183 ALLEN CT 538.40
086-48-068 68 175 ALLEN CT 538.40
086-48-069 69 180 ALLEN CT 538.40
086-48-070 70 188 ALLEN CT 538.40
086-48-071 71 196 WHITE CT 538.40
086-48-072 72 204 WHITE CT 538.40
086-48-073 73 212 WHITE CT 538.40
086-48-074 74 203 KING CT 538.40
086-48-075 75 195 KING CT 538.40
086-48-076 76 187 KING CT 538.40
086-48-077 77 179 BRANDT CT 538.40
086-48-078 78 171 BRANDT CT 538.40
086-48-079 79 176 BRANDT CT 538.40
086-48-080 80 184 BRANDT CT 538.40
086-48-081 81 192 KING CT 538.40
086-48-082 82 200 KING CT 538.40
086-48-083 83 208 KING CT 538.40
086-48-084 84 199 DOUGLAS CT 538.40
Slight variances may occur due to rounding
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City of Milpitas
LLMAD No. 98-1
Final Billing Detail Report for Fiscal Year 2024/25
APN Assessment ID Situs Address Fiscal Year 2024/25 Levy 086-48-085 85 191 DOUGLAS CT 538.40
086-48-086 86 183 DOUGLAS CT 538.40
086-48-087 87 175 HOBBS CT 538.40
086-48-088 88 167 HOBBS CT 538.40
086-48-089 89 174 HOBBS CT 538.40
086-48-090 90 182 HOBBS CT 538.40
086-48-091 91 190 DOUGLAS CT 538.40
086-48-092 92 198 DOUGLAS CT 538.40
086-48-093 93 206 DOUGLAS CT 538.40
086-48-094 94 991 CAMERON CIR 538.40
086-48-095 95 995 CAMERON CIR 538.40
086-48-096 96 811 CAMERON CIR 538.40
086-48-097 97 815 CAMERON CIR 538.40
086-48-098 98 831 CAMERON CIR 538.40
$52,763.2098 Accounts
Slight variances may occur due to rounding
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CITY OF MILPITAS
LANDSCAPING MAINTENANCE DISTRICT (LMD) 98-1
(N.T.S.)
2024-2025 FISCAL YEAR LANDSCAPE AREA FUNDED FOR MAINTENANCE S T

CITY OF MILPITAS

AGENDA REPORT
(AR)
Item Title: Adopt a Resolution Designating Street Resurfacing 2024-2025, Project No. 4300 to be Funded by California Senate Bill 1 - The Road Repair and Accountability Act of 2017 (Staff Contact: Michael Silveira, City Engineer, 408-586-3303; and Roberto Alonzo, Public Works Division Manager – Engineering, 408-586-3316) Category: Consent Calendar-Community Services and Sustainable Infrastructure Meeting Date: 5/7/2024
Recommendation: Adopt a resolution designating Street Resurfacing 2024-2025, Project No. 4300 to be funded by California Senate Bill 1 - The Road Repair and Accountability Act of 2017.

BACKGROUND:

California Senate Bill 1 - The Road Repair and Accountability Act of 2017 (SB1-RMRA), Chapter 5, Statute of 2017, was signed into law by the Governor in April of 2017 to address significant statewide transportation funding shortfalls. The distribution of SB1-RMRA funding to local jurisdictions for road maintenance is based on a population formula. The City of Milpitas is estimated to receive $2,098,932.00 in funding for fiscal year 2024-2025.

ANALYSIS:

Street Resurfacing 2024-2025, Project No. 4300 (“Project”), is in the adopted 2025-2029 Capital Improvement Program and provides for the repair, rehabilitation, and/or reconstruction of the street pavement network. The streets are selected based on recommendations in the Pavement Management Program report prepared by Metropolitan Transportation Commission to maintain the City’s overall pavement condition index (PCI) rating goal of good or better. Currently, the citywide street pavement network PCI rating is 71 which is considered to be in a “Good Condition”.

The following streets selected for the Project (Attachment 1) are estimated at $5.0 million and are anticipated to start construction in the summer of 2025:
•Great Mall Parkway from McCandless Drive to Montague Expressway •Tasman Drive from Interstate 880 to Alder Drive
•Alder Drive from Tasman Drive to Barber Lane
As part of the SB1-RMRA program, California Transportation Commission (CTC) requires the City to submit an adopted Resolution specifying the projects that are designated to received SB1-RMRA funding no later than July 1, 2024. Staff recommends the City Council adopt a Resolution (Attachment 2) designating Project No. 4300 Street Resurfacing 2024-2025 to be partially funded by SB1-RMRA funds in the amount of $2,098,932.00 in fiscal year 2024-2025.

POLICY ALTERNATIVE(S):

Alternative 1: Do not adopt a Resolution stating Street Resurfacing 2024-2025, Project No. 4300, is to be funded by SB1-RMRA as required by CTC.

Pros: None.

Cons: Delaying the adoption of the Resolution will put the City at risk of losing the State allocation of the SB1- RMRA funding to maintain the current PCI rating goal of 70 or better.

Reason not Recommended: SB1-RMRA funding is needed to help offset the cost of the annual street resurfacing program to maintain and improve the condition of the City’s pavement infrastructure.

FISCAL IMPACT:

The receipt of annual SB1-RMRA funding for the use in the City’s pavement maintenance program is needed to help offset the City costs and will reduce the need for funding from other funding sources such as the General Fund. It is anticipated the City will receive $2,098,932.00 in funding to be used for Street Resurfacing 2024-2025, Project No. 4300. This amount has been appropriated to CP4300 in FY25-29 adopted Capital Improvement Program budget.

California Environmental Quality Act (CEQA):

The project is categorically exempt under Section 15301 of the California Environmental Quality Act guidelines for maintenance of existing facilities. Alternatively and independently, the action is a fiscal activity of the City government or an action to create a City government funding mechanism that does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment and is not a project pursuant to Cal. Code of Regs., tit. 14, § 15378.

RECOMMENDATION:

Adopt a Resolution Designating Street Resurfacing 2024-2025, Project No. 4300 to be Funded by California Senate Bill 1 - The Road Repair and Accountability Act of 2017 Attachment(s):
(a) Project Locations Map
(b) Resolution

Project Locations Map
Project No. 4300 Street Resurfacing Project 2024-25 (New Project) •Great Mall Parkway from McCandless Dr to Montague Expressway •Tasman Dr from Highway 880 to Alder Dr
•Alder Dr from Tasman Dr to Barber Ln
(Streets highlighted in Orange)

RESOLUTION NO._______
RESOLUTION ADOPTING A LIST OF PROJECTS FOR FISCAL YEAR 2024-2025 FUNDED BY SENATE BILL 1 - THE ROAD REPAIR AND ACCOUNTABILITY ACT OF 2017 WHEREAS, Senate Bill 1 - the Road Repair and Accountability Act of 2017 (SB1-RMRA), Chapter 5, Statutes of 2017, was passed by the Legislature and Signed into law by the Governor in April 2017 to address the significant multi-modal transportation funding shortfalls statewide; and WHEREAS, SB1 -RMRA includes accountability and transparency provisions that will ensure the residents of our City of Milpitas are aware of the projects proposed for funding in our community and which projects have been completed each fiscal year; and
WHEREAS, the City of Milpitas must adopt by resolution a list of projects proposed to receive fiscal year funding from the SB1- RMRA which must include a description and the location of each proposed project, a proposed schedule for the project’s completion, and the estimated useful life of the improvement; and WHEREAS, the City of Milpitas, will receive an estimated $2,098,932.00 in SB1 - RMRA funding in Fiscal Year 2024-25; and
WHEREAS, this is the eighth year in which the City of Milpitas is receiving SB1-RMRA funding and will enable the City of Milpitas to continue essential road maintenance and rehabilitation projects, safety improvements, repairing and replacing aging bridges, and increasing access and mobility options for the traveling public that would not have otherwise been possible without SB1-RMRA; and
WHEREAS, the City of Milpitas has undergone a robust public process to ensure public input into our community’s transportation priorities/the project list; and WHEREAS, the City of Milpitas used a Pavement Management System to develop the SB1-RMRA project list to ensure revenues are being used on the most high-priority and cost-effective projects that also meet the community’s priorities for transportation investment; and
WHEREAS, the funding from SB1-RMRA will help the City of Milpitas maintain and improve 129 center lane miles of streets throughout the City of Milpitas this year and similar projects into the future; and WHEREAS, the 2021 California Statewide Local Streets and Roads Needs Assessment found that the City of Milpitas streets and roads are in a “good” condition and this revenue will help the City maintain and improve the overall quality of the road system for the next decade to a better condition; and

WHEREAS, the SB1-RMRA project list and overall investment in our local streets and roads infrastructure with a focus on basic maintenance and safety, investing in complete streets infrastructure, and using cutting-edge technology, materials and practices, will have significant positive co-benefits statewide.

NOW, THEREFORE the City Council of the City of Milpitas, State of California, as follows:

1. The City Council has considered the full record before it, which may include but is not limited to such things as the staff report, testimony by staff and the public, and other materials and evidence submitted or provided to it.

Furthermore, the recitals set forth above are found to be true and correct and are incorporated herein by reference.

2. The project is categorically exempt from CEQA under Section 15301 of the California Environmental Quality Act guidelines for maintenance of existing facilities. Alternatively and independently, the action is a fiscal activity of the City government or an action to create a City government funding mechanism that does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment and is not a project pursuant to Cal. Code of Regs., tit. 14, § 15378.

3. The following list of newly proposed projects will be funded in-part or solely with Fiscal Year 2024-25 Road Maintenance and Rehabilitation Account revenues:

Project Title:Street Resurfacing 2024-2025, Project No. 4300 Project Description:The project will include the repairs of asphalt pavement section, replacement of curb and gutters, driveways, and sidewalks; installation of asphalt and ADA curb ramps; and installation of Class II bike lanes and Class III bike route facilities as described in the 2022 Trail, Pedestrian and Bicycle Master Plan.

Project Location: Great Mall Parkway from McCandless Drive to Montague Expressway, Tasman Drive from Interstate 880 to Alder Drive, and Alder Drive from Tasman Drive to Barber Lane Estimated Project Schedule: Commence by July 2024 and complete by December 2026 based on the component being funded with SB1-RMRA funds.

Estimated Project Useful Life:7-10 years
PASSED AND ADOPTED by the City Council of the City of Milpitas, State of California this _______ day of _______, 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

ATTEST: APPROVED:

Suzanne Guzzetta, City Clerk Carmen Montano, Mayor
APPROVED AS TO FORM:

Michael Mutalipassi, City Attorney

CITY OF MILPITAS

AGENDA REPORT
(AR)
Item Title: Authorize the City Manager to Accept the CalRecycle Grant and Approve Related Budget Amendment (Staff Contact: Christian Di Renzo, Public Works Director, 408-586-2603; and Elaine Marshall, Deputy Public Works Director, 408- 586-2603)
Category: Consent Calendar-Community Services and Sustainable Infrastructure Meeting Date: 5/7/2024
Recommendation: Authorize the City Manager to accept grant funding from CalRecycle’s Senate Bill 1383 Local Assistance Grant and approve related budget amendment for revenues in the amount of $217,999 for the Solid Waste Fund (Fund 280) for FY 2024-25.

BACKGROUND:

In 2022, the Department of Resources Recycling and Recovery (CalRecycle) released grant funding to assist local jurisdictions with Senate Bill 1383 (SB 1383) implementation. The grant funding is allocated to jurisdictions based on population. The City of Milpitas was awarded $107,661 from this grant in 2022, which was used to fund SB 1383 compliance and recordkeeping software and a portion of the City’s solid waste staffing costs.

In September 2023, CalRecycle released an additional SB 1383 Local Assistance Grant, providing for $90 million in grant funding statewide. The grant is to assist local jurisdictions with SB 1383 implementation and can be used for specific activities such as capacity planning, collection, edible food recovery, education and outreach, enforcement and inspection, program evaluation/gap analysis, procurement, and record keeping.

ANALYSIS:

Staff applied for the 2023 SB 1383 Local Assistance Grant in November 2023, as authorized by Council Resolution No. 9119 (Attachment 1). In March 2024, CalRecycle notified staff that the City of Milpitas was awarded $217,999 in grant funds. The funding will be used to continue use of the compliance and record keeping software (Recyclist), maintain the City’s participation in the Santa Clara County Food Recovery Program, and towards the purchase of SB 1383 compliant recycled organic products such as compost, mulch, electricity, and/or renewable gas, in order to meet the City’s SB 1383 procurement target.

POLICY ALTERNATIVE(S):

Alternative 1: Do not accept the grant funds.

Pros: None.

Cons: The City will fund the costs of implementing SB 1383 through the City’s Solid Waste Fund or General Fund and not leverage funding from CalRecycle’s SB 1383 Local Assistance Grant.

Reason for Not Recommending: It is in the City’s interest to leverage external funding to offset City costs when feasible.

FISCAL IMPACT:

Public Works Operating Budget expenditures totaling $217,999 from the Solid Waste Fund (Fund 280) related to implementation of Senate Bill 1383 (such as Recyclist software program costs, participation in the countywide edible food recovery program, and compliant product procurement) will be offset with the CalRecycle grant. To recognize the grant funding, staff recommends increasing the revenues for the Solid Waste Fund (Fund 280) in the amount of $217,999 for FY2024-25.

California Environmental Quality Act (CEQA):

The action is a fiscal activity of the City government or an action to create a City government funding mechanism that does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment and is not a project pursuant to Cal. Code of Regs., tit. 14, § 15378.

RECOMMENDATION:

Accept grant funding from CalRecycle’s Senate Bill 1383 Local Assistance Grant and approve budget amendment for revenues in the amount of $217,999 in the Solid Waste Fund (Fund 280) for FY 2024-25.

Attachment(s):
(a) Resolution No. 9119 Authorizing Submittal of Application(s) for all CalRecycle Grants (c) Budget Change Form

City of Milpitas, California

BUDGET CHANGE FORM
From (Credit) To (Debit)
Type of Change
Account Amount Account Amount
Check one:
Budget
Appropriation
Budget Transfer
280-3564 $217,999 280-4304237 $217,999
Recommendation: Authorize the City Manager to accept grant funding from CalRecycle’s Senate Bill 1383 Local Assistance Grant and approve related budget amendment for revenues in the amount of $217,999 for the Solid Waste Fund (Fund 280) for FY 2024-25.

BACKGROUND:

In 2022, the Department of Resources Recycling and Recovery (CalRecycle) released grant funding to assist local jurisdictions with Senate Bill 1383 (SB 1383) implementation. The grant funding is allocated to jurisdictions based on population. The City of Milpitas was awarded $107,661 from this grant in 2022, which was used to fund SB 1383 compliance and recordkeeping software and a portion of the City’s solid waste staffing costs.

In September 2023, CalRecycle released an additional SB 1383 Local Assistance Grant, providing for $90 million in grant funding statewide. The grant is to assist local jurisdictions with SB 1383 implementation and can be used for specific activities such as capacity planning, collection, edible food recovery, education and outreach, enforcement and inspection, program evaluation/gap analysis, procurement, and record keeping.

ANALYSIS:

Staff applied for the 2023 SB 1383 Local Assistance Grant in November 2023, as authorized by Council Resolution No. 9119 (Attachment 1). In March 2024, CalRecycle notified staff that the City of Milpitas was awarded $217,999 in grant funds. The funding will be used to continue use of the compliance and record keeping software (Recyclist), maintain the City’s participation in the Santa Clara County Food Recovery Program, and towards the purchase of SB 1383 compliant recycled organic products such as compost, mulch, electricity, and/or renewable gas, in order to meet the City’s SB 1383 procurement target.

POLICY ALTERNATIVE(S):

Alternative 1: Do not accept the grant funds.

Pros: None.

Cons: The City will fund the costs of implementing SB 1383 through the City’s Solid Waste Fund or General Fund and not leverage funding from CalRecycle’s SB 1383 Local Assistance Grant.

Reason for Not Recommending: It is in the City’s interest to leverage external funding to offset City costs when feasible.

FISCAL IMPACT:

Public Works Operating Budget expenditures totaling $217,999 from the Solid Waste Fund (Fund 280) related to implementation of Senate Bill 1383 (such as Recyclist software program costs, participation in the countywide edible food recovery program, and compliant product procurement) will be offset with the CalRecycle grant. To recognize the grant funding, staff recommends increasing the revenues for the Solid Waste Fund (Fund 280) in the amount of $217,999 for FY2024-25.

California Environmental Quality Act (CEQA):

The action is a fiscal activity of the City government or an action to create a City government funding mechanism that does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment and is not a project pursuant to Cal. Code of Regs., tit. 14, § 15378.

RECOMMENDATION:

Accept grant funding from CalRecycle’s Senate Bill 1383 Local Assistance Grant and approve budget amendment for revenues in the amount of $217,999 in the Solid Waste Fund (Fund 280) for FY 2024-25.

Attachment(s):
(a) Resolution No. 9119
(c) Budget Change Form
Check if City Council Approval required. Meeting: May 7, 2024 Requested by: Department Head: Christian Di Renzo Date: May 7, 2024 Reviewed by: Interim Finance Director: Gabrielle Tsang Date: May 7, 2024 Approved by: City Manager: Ned Thomas Date: May 7, 2024 Date approved by City Council, if required: Confirmed by:

FI/24786/V Form 30-222 (Rev. 1/92)

CITY OF MILPITAS

AGENDA REPORT
(AR)
Item Title: Receive an Update on Storm Drain System Emergency Repairs and Improvements at Evans Road and Piedmont Creek and Determine that the Condition Continues to Constitute an Emergency (Staff Contact: Christian Di Renzo, Public Works Director, 408-586-2602)
Category: Consent Calendar-Leadership and Support Services Meeting Date: 5/7/2024
Recommendation: (1) Receive an update on the storm drain system emergency repairs and improvements at Evans Road and Piedmont Creek; and (2) Determine by a four-fifths vote that the condition continues to constitute an emergency.

Background:

Pursuant to Public Contract Code section 22050 and the attached Council Resolution No. 9134, the Director of Public Works, in the case of emergency, may authorize a repair of a public facility and procure the work without giving notice for bids. An emergency is defined as “a sudden, unexpected occurrence that poses a clear and imminent danger, requiring immediate action to prevent or mitigate the loss or impairment of life, health, property, or essential public services.” Additionally, State law requires the Public Works Director, as the City official with delegated authority to take emergency action, to report any emergency authorization and the reason(s) for the authorization to the City Council not later than seven days after the action, or at its next regularly scheduled meeting if that meeting will occur not later than 14 days after the action. Further, the Public Works Director is required to report why the emergency would not permit a delay resulting from a competitive solicitation for bids and the City Council is required to review the emergency action at every regularly scheduled meeting thereafter until the emergency repair is completed. The City Council shall continue to review the emergency action at every regularly scheduled meeting thereafter until the action is terminated. At each review, the City Council shall determine, by a four-fifths vote, whether there is a need to continue the action.

Consistent with applicable State law and Council Resolution, on November 21, 2023, the Public Works Director declared an emergency and authorized the City to contract with local contractor, Able Construction Inc., for the storm drain system emergency repairs and improvements at Evans Road and Piedmont Creek. Further, within the required timeframe the Public Works Director informed the City Council via the attached Information Memorandum on November 21, 2023 regarding the emergency authorization, the reasons for the authorization, and the cost for repair in the amount of $137,519.

Project Update(s):

Below is a current update on the status of the storm drain emergency repairs and improvements at Evans Road and Piedmont Creek.

The City entered into two agreements with Able Construction Group, Inc. (Contractor) on December 14 th, 2023 and December 18 th, 2023 for storm drain repairs and improvements at Evans Road and Piedmont Creek, respectively. Subsequently, the City issued a Notice to Proceed to the Contractor to commence work beginning December 18th, 2023.

The contractor substantially completed improvements at Piedmont Creek, per project plans and specifications, the week of February 20 th. The first progress payment for improvements at Piedmont Creek was submitted the week of March 4 th. Work on storm drain improvements at Evans Road commenced the week of February 20th and was substantially completed the week of March 18 th. A change order was issued for fabrication and installation of the metal grate cover for the concrete storm drain inlet. The metal grate was completed and installed the week of April 22nd.

The City performed a site walkthrough on April 23 rd to ensure the improvements at both project locations were completed per project plans and specifications and the project site(s) are satisfactorily restored to pre-project conditions. A punch-list was issued for any outstanding items prior to deeming the project complete. The project will be deemed complete in May after receiving the final certified payroll for work associated with installation of the metal grate and releasing retention of the remaining contract price.

Fiscal Impact:

Funding for these repairs is available in the City’s Capital Improvement Program (CIP) budget. CIP Project 3715 - Storm Drain System Rehabilitation Project will fund $137,519 for the storm drain system emergency repairs and improvements at Evans Road and Piedmont Creek. Funding source comes from the Storm Drain General Fund and Storm Drain Fund. As of April 26, 2024, the balance in CIP 3715 is $1,400,749.

California Environmental Quality Act:

The emergency repair work is exempt from CEQA, per CEQA Guidelines Section 15301, Existing Facilities and 15302, Replacement or Reconstruction.

Recommendations:
(1) Receive an update on the storm drain system emergency repairs and improvements at Evans Road and Piedmont Creek.
(2) Determine by a four-fifths vote that the condition continues to constitute an emergency.

Attachment:

None

CITY OF MILPITAS

AGENDA REPORT
(AR)
Item Title: Approve Design for Dixon Landing Public Art Project (Staff Contact: Renee Lorentzen, Recreation and Community Services Director, 408-586-3409; and Tegan McLane, Assistant Recreation and Community Services Director, 408- 586-3212)
Category: Consent Calendar-Community Services and Sustainable Infrastructure Meeting Date: 5/7/2024
Recommendation: Approve artist Lacey Bryant’s design for Dixon Landing Park public art mural.

BACKGROUND:

The Arts Commission has a public art project for Dixon Landing Park on its City Council approved 2023-24 work plan. A sculpture artist that previously was contracted for a Dixon Landing Park art project withdrew from the project early in the pandemic, due to project delays and engineering complications. On March 28, 2022, the Arts Commission re-examined Dixon Landing Park and identified possible artwork locations: the original corner location for a sculpture; a grassy location near the large baseball diamond with a view of the hills for a bench; the pillars of the entryway and snack shack for a mural; or the entryway overhead for a mobile.

On August 29, 2022, the Arts Commission received a staff report on Dixon Landing Park public art project locations and potential themes. They voted unanimously to focus on the pillars and requested staff seek public input on the proposed artwork themes: wildflowers, wetland birds, teamwork, good sportsmanship, and Dixon Landing history. The Commission directed Staff to launch the public input portion of the project in Spring 2023 when the park is most busy with youth Sports. Signs were posted on the pillars in the entry structure and surrounding the snack stand during the busy spring sports season inviting park users to use a QR code to take the survey. The survey was also promoted on social media and through other City channels.

On May 22, 2023, the Arts Commission heard feedback from the public survey regarding themes. A total of 181 people responded, more than 90 of which were Milpitas residents. The public overwhelming preferred the wildflower theme with 60 percent selecting that choice. The Arts Commission voted, per feedback from residents, to have the Call for Artists specify a theme of wildflowers.

A Call for Artists was widely distributed within the public art community, including to artists who had previously expressed interest in working with Milpitas and artists whose portfolios indicated an expertise in floral designs.

On January 22, 2024, the Dixon Landing Public Art Selection Committee met and reviewed the portfolios of 12 artists whose applications met the criteria outlined in the Call for Artists. The group selected four finalists to be invited to submit full design proposals, including detailed renderings, budgets and a narrative explaining their concept, method, anticipated lifespan and maintenance, and any public engagement they proposed as part of the project. The four were:
•Lacey Bryant
•Lila Gemellos
•Nicole Ponsler
•Timothy Smith
On March 11, 2024, Selection Committee members reconvened to review the design proposals and rank their choices, with Lacey Bryant’s proposal as the top vote.

On March 25, 2024, the Arts Commission reviewed and unanimously voted to recommend the Selection Committee’s choice.

ANALYSIS:

San Jose-based Artist Lacey Bryant grew up in Milpitas and works as scenic artist, muralist, sculptor, and studio oil painter. She has completed six commissioned murals in San Jose and Redwood City. In addition, her scenic painter credits include projects for Dreamworks, Disney Pixar, SF Chinatown Lunar New Year, Great America and theme parks in Ohio, Virginia, and Missouri, and theater productions throughout Bay Area.

Longtime Milpitas residents may remember her involvement with the City’s Recreation and Community Services’ Rainbow Theatre productions.

Ms. Bryant will work with two assistants, Juan Carlos Araujo of San Jose, and another to be named. Mr. Araujo is the co-founder of SJ Walls (formerly Pow! Wow! Mural Festival) and owner/curator of Empire Several Studios Gallery. He has extensive public art experience having managed 50 public art projects and created 10 commissioned murals himself.

Ms. Bryant hopes to use this artwork to demonstrate to the public that wildflowers are the pillars of the ecosystem, sustaining insects and other fauna. A few of the wildflowers are plants that many people see as weeds, and a few of the creatures are insects people see as pests. However, she proposed to include a QR code on each column so viewers can scan it to visit a webpage to learn more about the featured flower and its resident creature and discover their important roles in the local ecosystem. She will work with Staff to create these educational webpages that will provide a unique and ongoing form of public engagement.

Ms. Bryant and her team will paint onsite for three weeks, interacting informally with the public throughout the process. There will also be a “Community Help Weekend” where Milpitas volunteers can help prep the pillars by painting background colors. She will use Sherwin Williams latex exterior paint, Nova Color high pigment mural paint and an anti-graffiti coat and projects the murals will last 20+ years when properly cared for.

The Selection Committee liked Ms. Bryant’s proposed design, as well as the high level of community engagement, use of assistant artists, and the fact that she grew up here.

The Arts Commission also liked this design best, and unanimously voted to recommend the Selection Committee’s choice. They did request Ms. Bryant’s proposed addition of both common and scientific names of the flowers to enhance the educational value of the murals. While they liked the convenience of a QR code link to the companion webpages, they expressed some concern about the security of QR codes on public signs and requested staff and the artist take special care to minimize the risk of bad actors placing fake QR codes over the ones on the artwork. For example, consider placing large QR codes high on the artwork, where they can easily be scanned by a phone camera, but are safe from tampering.

Other proposals considered include the Selection Committee’s second choice by Timothy Smith, who proposed a “worm’s eye view” of wildflowers with blue sky seen at the tops of the poles. Mr. Smith who is based in Claremont, in Southern California, would also work about three weeks onsite painting, though solo.

He proposed to interact with the public while painting and to document the process through social media and time lapse photography.

San Jose artist Lila Gemellos offered four distinct floral treatments, some with as many as four background options. The large number of options left the Selection Committee with concerns that the artist’s concept was too undecided. Also, while the group was intrigued by her proposal to engage the public with a nature hike at Ed Levin Park to gather wildflowers or wildflower images for inspiration, they were concerned that some production elements of the proposal did not seem realistic.

Mendocino area artist Nicole Ponsler proposed columns be split diagonally to suggest movement and offered a unified look for all entryway columns and a separate look for the snack shack columns. An earlier concept indicated glow-in-dark paint. The final proposal did not reference glow-in-the-dark but indicated outdoor lighting that the artist would install. Based on the budget, the group had some concerns about the durability of the

lighting and potential future maintenance issues. Most significantly, Ms. Ponsler proposed to paint offsite in her studio on Polytab, a material that is adhered to surfaces like wallpaper. While this is an increasingly popular technique for murals, the Selection Committee felt strongly that the neighbors would prefer to see the mural painted live and be able to watch its progress and interact with the artist over the painting period of several weeks.

POLICY ALTERNATIVE(S):

Alternative 1: Do not approve Lacey Bryant’s proposed design for the Dixon Landing Park public art mural.

Pros: None.

Cons: Not approving the proposed design would further delay public art for this park and would be inconsistent with the City’s established procedure surrounding public art selection.

Reason for Not Recommending: The Dixon Landing Park public art mural is an item on the arts commission’s work plan, and the recommended design was selected by a committee of residents according to the Mural Program Policy procedures and approved by the Arts Commission.

FISCAL IMPACT:

There is no impact to the general fund. The commission for this public art project, $30,000, has already been approved by the City Council and transferred into Public Art CIP 3489. As of May 1, 2024, the balance in CIP 3489 is $528,088.46.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):

The project entails the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use and is exempt from CEQA pursuant to Cal. Code Regs., tit. 14, § 15301.

RECOMMENDATION:

Approve artist Lacey Bryant’s design for Dixon Landing Park public art mural.

ATTACHMENT(S):
(a) Artist Lacey Bryant’s proposal for Dixon Landing Park public art mural (b) Artist Lacey Bryant’s resume
(c) Artist Lacey Bryant’s portfolio samples

• Artist’s Statement
These 18 columns are a celebration of the many varied and beautiful native wild/f_lowers of the bay area and the tapestry of life that they support. Each pillar represents a different native wild/f_lower and also depicts a creature that visits it and often that depends upon it for survival. I tried to choose /f_lora and fauna from a variety of families representing species very familiar to those of us who grew up here in Milpitas as well as a few that will hopefully open the door to new surprises. I chose a few that you may think of as weeds, which I hope you will reconsider when you learn of their many uses and great value to creatures large and small. Some of the insects pictured are ones I remember playing with in my backyard here when I was young so I hope they will be familiar to kids today and fun to look for hiding amidst the /f_lowers and foliage. There are some species that you may think of as pests, which I also hope you will change your mind about once you learn how important they are to their ecosystems. There are a couple of species which picture both the male and female variations, which can sometimes be so different that they are often mistaken for a different species! The /f_lowers on these pillars are shown larger than life so that you can see the details and learn to identify them. We are so fortunate to be surrounded by such beauty but many of these /f_lowers are small and easy to miss if you don‘t pay attention and lean in close. Some are threatened by loss of habitat and are often replaced with ornamental plants which don’t have the same bene/f_its to native species as native plants do. We can do a lot by learning about native wild/f_lowers and helping them to thrive in our own backyards!

• Proposed dimensions 18 columns 10’ highx40” around, designed as a continuous wrap around. I would also like to propose adding the band above each column to be painted in a contrasting color to compliment the design. • Proposed materials high quality exterior primer undercoat and sealer, latex coatings and TSW anti Graffiti coating.

Brands would include Shermin Williams or similar quality High grade exterior latex and Nova Color high pigment artist grade mural color.
• Proposed muralists Lacey Bryant will be the lead artist. She will be assisted by Juan Carlos Araujo of Empire Seven Studios and one additional skilled assistant, Stephen Longoria or another artist of equal skill if he is unavailable at the time the contract is offered. (The additional assistant will be con/f_irmed at time of contracting.) • Recommended installation procedure, including any special equipment required: After the city performs power washing of the surface, our installation would begin with a primer coating, then base color would be applied to each column. Next, the design outlines will be transfered to the columns. At this point, if desired, Milpitas volunteers may spend a weekend with us helping to /f_ill in the base colors of the designs. After this, we will /f_inish the detail on the mural and apply the anti-graffiti coating. No special equipment is required, we will supply ladders to complete work. • Expected lifespan of the artwork may be 20-30 years if well maintained. • Recommended annual and sporadic maintenance necessary to achieve expected lifespan should include twice annual inspection post winter and summer to check for weather damage or dirt build up.

Graffiti should be promptly cleaned carefully with gentle water pressure and if residual marks are left, colors may be touched up (a touch up kit and colors to reorder will be provided). Anti-Graffiti coat may need reapplication after multiple heavy cleanings.

• How/if the public is encouraged to interact with the artwork: The public may be involved in a volunteer /f_ill in colors weekend to help paint the mural. Additionally a small QR code may be incorperated into each column to lead viewers to a city maintained website or to wikipedia’s page for each /f_lower shown if this is desired. I can write descriptions of the /f_lowers and creatures for your website if desired. Text names of /f_lowers may also be added to the columns if desired.

• How/if the public is prohibited from interacting with the artwork, including safety measures. The artwork will add no safety risks to the area.

Lacey Bryant with Empire Seven Studios
Design Proposal Narrative

Entry Columns Mock Up

Snack Shack front Mock up

Snack Shack Rear Mock up

Selected Murals, Public Art & Community Contributions
2022 Public Art “When the Mountain Fell in Love with the Sea” , Empire 7 Studios, Ryland Mews 427 N. 2nd St, San Jose, CA
2019 Public Art “Believe” , Empire 7 Studios, 850 N 2nd St, San Jose, CA Public Art, “Hamster Wheels” , Redwood City Improvement Association, Redwood City, CA 2018 Public Art “Chase” , Exhibition District, 55 W Santa Clara St, San Jose, CA Public Art “Cheering the Chinook” , Exhibition District, Guadalupe River Park, San Jose, CA 2017 Public Art (collaboration with Benjamin Henderson) “Choose Your Own Adventure” , Pow! Wow! San Jose Mural Festival, 1066 The Alameda
2015 Public Art “Poppy Crossing” , Downtown San Jose Art Crosswalks, San Pedro St & Santa Clara St, San Pedro St & St. John St, San Jose, CA 2012 Public Art “Bee Free” , Art Box SJ Project, Dana Ave & Naglee, San Jose, CA Professional Service
2015-17 Founding board member, Exhibition District (now Local Color), San Jose, CA Selected Professional Experience and Scenic Artistry
2022-23 Scenic Artist for World’s of Fun park wide refurbish, Kansas City, MO 2021 Murals for Castaway Bay Waterpark & Resort, Sandusky, OH 2021 Scenic Artist for Kings Dominion Jungle X, Doswell, VA 2021-2023 Scenic art and mural for Carowinds Park, Charlotte, NC 2016-present Sculptor, The Parade Guys, San Francisco, CA (Lunar New Year Parade and Public Art Displays), San Francisco Chinatown, CA) 2016-18 Scenic Artist, The New Ballet School, San Jose, CA 2006-present Scenic Artist, California's Great America, Santa Clara, CA (South Bay Shores, Ice, Show Sets, Stage Sets, Halloween Haunt, sign painting, etc.) 2009-2013 Gallery Manager, KALEID Gallery, San Jose, CA 2007-2015 Scenic and Graphic Artist, Method 42 Productions, Santa Clara, CA (projects for Dreamworks, Disney Pixar, etc.)
2007-2008 Scenic Artist, Saratoga Drama Group, Saratoga, CA 2005 Scenic Artist, San Jose Stage Co., San Jose, CA
2004 Scenic Artist, California Shakespeare Theatre
2000-2009 Graphic Artist, Sunshine Graphics, San Jose, CA Lacey Bryant (b. 1982 KY)
www.laceybryant.com
Bio
Lacey Bryant was raised in Milpitas and remains based in the Bay Area. She works both as a scenic artist, muralist, and sculptor as well as a studio artist in oils. Her work is known for it’s fantastical elements and dreamlike quality. Drawing on a range of subject matter such as landscape, portraiture, /f_igures, and still life often combined into a single collaged image her aim is to capture the shared joys and pains of the human experience.

Selected Group Exhibitions
2022 Danse Macabe, Modern Eden Gallery, San Francisco, CA Loteria! VIII Cactus Gallery, Los Angeles, CA
Skate, Mirus Gallery, San Francisco, CA
2021 Friendship, Cactus Gallery, Los Angeles, CA
The Art of Art, Modern Eden Gallery, San Francisco, CA
2020 New Growth, Modern Eden Gallery, San Francisco, CA Pro/f_ile, Modern Eden Gallery, San Francisco, CA
2019 She, M2 Gallery, Little Rock, AR
Self-ish, Modern Eden, San Francisco, CA
Beyond Wonderland, Wonderland, San Francisco, CA
Loteria! V, Cactus Gallery at The Last Bookstore, Los Angeles, CA 2018 Baby Mama, Modern Eden, San Francisco, CA
Night Garden, Modern Eden, San Francisco, CA
Tiny, Studio Gallery, San Francisco, CA
2017 Loteria III, Cactus Gallery, Los Angeles, CA
Lover’s Eye, Modern Eden, San Francisco, CA
Flower Child, Modern Eden, San Francisco, CA
2016 Dollmakers, Cactus Gallery, Los Angeles, CA
Familiar Deconstructed, Smash Gallery, San Francisco, CA Symphony of Wings, Cactus Gallery, Los Angeles, CA
Show of Littles, Smash Gallery, San Francisco, CA
Selected Solo Exhibitions
2022 Wall/f_lowers, Empire Seven Studios, San Jose, CA
2021 We Shall All Be Kings, Modern Eden, San Francisco, CA 2019 The Slow Tarot, Modern Eden, San Francisco, CA
November Nocturnes, Cactus Gallery, Los Angeles, CA
2018 Patterns, Cactus Gallery, Los Angeles, CA
2016 Homeward, Empire Seven Studios, San Jose, CA
Escape, Modern Eden, San Francisco, CA
2015 Liminal Space, Cactus Gallery, Los Angeles, CA
2014 Lacuna, Modern Eden, San Francisco, CA
2012 Tenuous Threads, Anno Domini, San Jose, CA
Soliloquies from the Silent Country, Modern Eden, San Francisco, CA Gallery Affiliations
Modern Eden, San Francisco, CA
Cactus Gallery, Los Angeles, CA
Empire Seven Studios, San Jose, CA
Awards and Grants
2022 Residency, The Verdancy Project, Troutdale, OR (May 15-21, 2022) 2017 Residency, Chalk Hill Artist Residency, Healdsburg, CA (Jan 21-Feb 9, 2017) 2016 Residency, Chalk Hill Artist Residency, Healdsberg, CA (April 1-24, 2016) 2011 Individual Grant, Belle Foundation for Cultural Development Selected Bibliography
2019 “The Slow Tarot By Lacey Bryant” , San Francisco, CA: Modern Eden Gallery, 1st printing May 2019, 2nd printing Oct 2019, 3rd printing Jan 2021, 4th printing Dec 2023 2014 Monique Delaunay. “Lacey Bryant, “Lacuna” at Modern Eden Gallery. ” SFartenthusiust.com July 30, 2014 2012 Ken Harman. “The Art of Lacey Bryant. ” HiFructose.com January 5 ArtPusher. “Lacey Bryant’s Silent Country. ” Eclectixart.blogspot.com January 23 Thena Cartwright. “Lacey Bryant. ” Catapult Art Magazine 0212.v6 pages 66-69 Daniel Garcia. “Lacey Bryant, Portrait. ” Content Magazine. Issue 3.1 pages 12-17 2015 Bestowed Upon Us, Alexi Era Gallery, Mascoutah, IL Return to the Wild, Auguste Clown Gallery, Melbourne, AUS Golden, Modern Eden, San Francisco, CA
Cinder, Glass & Thorns III, Inner State, Detroit, MI
2014 Broad Spectrum, Empire Seven, San Jose, CA
Halloween, Auguste Clown Gallery, Melbourne, AUS
Le Chat Noir, Modern Eden, San Francisco, CA
Summer Flies, Flower Pepper Gallery, Pasadena, CA
As the Crow Flies, Corvidae Collective, Nashville, TN
2013 Urban Jungle, Wonderland SF, San Francisco, CA
Life is a Cabaret, Tasty Gallery, Seattle, WA
The Language of Flowers, Modern Eden, San Francisco, CA 2012 Myth, Modern Eden, San Francisco, CA
Sanctuary, Cactus Gallery, Los Angeles, CA
Creatures Featured, Tasty Gallery, Seattle, WA
Cinder, Glass & Thorns, 323 East Gallery, Detroit, MI
2011 Muerto en Vida, Cactus Gallery, Los Angeles, CA
Memento Mori, Modern Eden, San Francisco, CA
For The Birds, Tasty Gallery, Seattle, WA
2010 Fresh Produce, Anno Domini, San Jose, CA
The Plague Show, Congregation Gallery, Hollywood, CA
Mischief, Studio Gallery, San Francisco, CA
La Gran Pachanga, 111 Minna Gallery, San Francisco, CA
2009 Superheros, Look At This Gallery, Chaing Mai, Thailand

CITY OF MILPITAS

AGENDA REPORT
(AR)
Item Title: Hold a Public Hearing on an Appeal of the Planning Commission’s Decision to Deny Conditional Use Permit No. UP23-0013 to Allow for the Retail Sales of Tobacco Products at 1225 Jacklin Road (Staff Contact: Jay Lee, Planning Director, 408-586-3077)
Category: Public Hearings-Community Development
Meeting Date: 5/7/2024
Recommendation: (1) Conduct a public hearing and move to close the hearing following comments; (2) Consider the project to be categorically exempt from environmental review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Sections 15301 (Existing Facilities) and as a separate and independent basis, CEQA Guidelines Section 15183 (Projects Consistent with a Community Plan, General Plan, or Zoning); and (3) Adopt a Resolution upholding or overturning the appeal and overturning the Planning Commission’s decision to deny Conditional Use Permit No.

UP23-0013 to allow for the retail sales of tobacco products within an existing 870- square-foot tenant space of a 9,960-square-foot multi-tenant commercial building located on a 0.9-acre site located at 1225 Jacklin Road within the C1 Neighborhood Commercial Zoning District.

BACKGROUND:

On August 9th, 2023, the Building Safety & Housing Department conducted an inspection of 1225 Jacklin Road, the subject property, in response to a notice of violation of the Milpitas Municipal Code (MMC). That inspection found that the property was in violation of MMC Sec. XI-10-5.02(A)(1) for operating a Head/Smoke/Tobacco shop without the benefit of an approved Conditional Use Permit. On September 5th, 2023, the Building Safety & Housing Department conducted another inspection of the subject property and found the property to be in violation of conducting an interior remodel of tenant space without the benefit of a Building permit.

On November 7, 2023, Kareem Al Salahi, the applicant and business owner, submitted a Conditional Use Permit application (Permit No. UP23-0013) to allow for the retail sale of tobacco products within the subject tenant space. The business will be known as Puff City Smoke Shop, which plans to operate daily from 10am to 12am (midnight). Conditional Use Permit No. UP23-0013 seeks to address these violations and bring the property into compliance.

On March 13, 2024, the Planning Commission held a public hearing to consider the Conditional Use Permit application for the proposed head/smoke/tobacco retail use. After receiving a presentation from staff, hearing from the applicant and the public, the Planning Commission closed the public hearing and vote 5-0, with one Commissioner absent and one abstaining vote, to deny the project. The Planning Commission raised concerns regarding safety and the welfare of students, as well as the proximity of the project to nearby schools and the Golfland amusement center. The Planning Commission also raised concerns regarding smoking at the project site and overall health concerns about the dangers of tobacco and other drug use.

On March 22, 2024, the applicant filed an appeal of the Planning Commission’s March 13 decision pursuant to MMC Section XI-10-64.02. The applicant provided a letter stating six reasons why they believe they should be granted an appeal. The letter has been included as Attachment C and is summarized below.

1. No explanation, findings, evidence, or analysis: The applicant argues that there was no clear reason for their decision to deny the project.

2. Concerns regarding underage access: The applicant clarifies that no children would be allowed in their retail store and that they will have a number of security measures to ensure that underage persons would not be able to enter or purchase goods.

3. Concerns about signage: The applicant clarifies that all unpermitted signage has been taken down and that they are willing to compromise on any future signage proposals and will apply for any applicable permits.

4. Hours of operation: The applicant understands that the community may have concerns regarding the hours of operation and has proposed a new closing time of 10 p.m. daily, which is an hour before the nearby convenience store closes.

5. Name of business: The applicant is willing to compromise on a new business name to appease any community concerns.

ANALYSIS:

Planning staff recommends that the City Council uphold the appeal and review and approve a resolution to allow for the retail sale of tobacco and tobacco-related products for off-site consumption or use only. A list of items for sale include cigars, tobacco pipes, tobacco containers, tobacco grinders, tobacco wraps, hemp wraps, rolling papers, rolling machines, rolling tips, butane, lighters, backpacks, clothing, hemp products and CBD. The Project site is located within a single-story multi-tenant commercial building at the northwest corner of North Park Victoria Drive and Jacklin Road, just east of the I-680 Interstate Freeway. The site is surrounded by a mixture of commercial and residential uses. No site improvements or exterior modifications are proposed at this time. The applicant will be required to apply for and obtain a building permit for any applicable interior improvements.

During the March 22nd, 2024, the Planning Commission expressed concerns regarding customers smoking on- site. Staff has included the following condition of approval to address this concern, as there is currently no general prohibition for smoking on-site.

Smoking and On-site Use of Products Generally Prohibited. The Permittee shall comply with and ensure compliance with all state, local, federal, and other laws and regulations prohibiting or regulating smoking on the premises, including California Labor Code section 6404.5, California Health and Safety Code sections 104495 and 114371, California Government Code sections 7596-7598, and Title V, Chapter 215 of the Milpitas Municipal Code. In addition, the Permittee shall not cause, permit, aid, abet, suffer, conceal, or allow the consumption, smoking, or use of any goods or other products, including samples, obtained from the business on the premises or anywhere in the surrounding shopping plaza, including the parking lot, walkways, and common areas. Nor shall the Permittee cause, permit, aid, abet, suffer, conceal, or allow customers to consume, smoke, or use any tobacco or tobacco products on the premises or anywhere in the surrounding shopping plaza, including the parking lot, walkways, and common areas. Any violation of this condition shall be an independent and sufficient basis for revocation, suspension, or modification of this Permit.

Therefore, the project with the above conditional of approval will allow the property owner and applicant to prohibit smoking on the subject site. Additionally, per MMC Section XI-10-63.06 and Condition of Approval No. 13, the City Council may initiate review of the permit or receive a recommendation from the Planning Commission to take such action. Following a public hearing, the City may suspend, revoke, or modify the Conditional Use Permit if the applicant does not adhere to the conditions of approval or if the business operates in a manner that constitutes a public nuisance or negatively impacts the public health, safety, and welfare.

During the March 22nd, 2024 public hearing, the Planning Commission and members of the public also expressed concerns regarding the proposed hours of operation of 10 A.M. to 12 A.M. (midnight) daily.

Through collaboration with City staff, the Applicant has agreed to reduce their hours of operation. Staff has drafted Condition of Approval No. 20 to limit the business hours to 10 A.M. to 10 P.M. daily.

Furthermore, the Milpitas Police Department reviewed the Project and prescribed measures to ensure the safety and security of the overall site and its occupants, including video surveillance and filing emergency contact information with the Police Department. The Police Department also reviewed the applicant’s proposal for the sale of kratom, which is a substance derived from a tropical tree native to southeast Asia. Although kratom is not classified under the Controlled Substances Act, the Police Department has sufficient concerns to recommend the prohibition of kratom. All these measures have been included as conditions of approval for the Project. Examples include:

1. Line of sight obstructions, including business signs, advertisements, or other markings, should be avoided on the exterior windows to maximize natural surveillance during the business’s closed hours.

2. Video/security cameras shall be required for the site, with coverage at all access points into the business. The interior video/security cameras shall record in high definition and cover any cash register, safe, or other device that stores currency, entrances/exits, and hallways or paths leading to a restroom. The video/security system shall have the capability to be downloaded. A copy of video/security footage shall be made available to law enforcement upon request for investigative purposes. It is recommended the employees of the business be appropriately trained on how to use the security surveillance camera system so that footage can be reviewed and collected in a timely fashion by the Police Department if needed.

3. Despite not being classified under the Controlled Substance Act, the use of kratom raises concerns regarding its impact on public safety and community well-being. Therefore, the Applicant is prohibited to sell kratom.

In accordance with MMC Section XI-10-57.04(F)(1), the Project was also found to be consistent with the Milpitas General Plan and the Milpitas Zoning Ordinance. In addition, the proposed Project was not deemed to be detrimental or injurious to property or improvements in the vicinity nor to the public health, safety, and general welfare. The proposed retail business selling tobacco and tobacco related products provides retail options for patrons. The proposal increases economic opportunity, and as conditioned, will not be detrimental to property or improvements in the vicinity nor to the public health, safety, and general welfare because the building is existing, and the retail sales will be conducted wholly within the building. No consumption of the products will be allowed on the premises.

The Project is consistent with the Milpitas General Plan, which encourages activity within existing commercial centers. The proposed head/smoke/tobacco retailer will serve surrounding neighborhoods by providing goods not typically found nearby, which will help minimize vehicle miles traveled. In addition, the proposed retail sales will encourage economic pursuits by allowing the operation of a retail business in an existing unoccupied commercial tenant space with a Conditional Use Permit approval. The Project will provide economic opportunities to Milpitas residents and around the region by providing different retail options.

The proposed head/smoke/tobacco retailer use is a conditionally permitted use in the Neighborhood Commercial (C1) Zoning District and complies with the applicable development standards. Additional information regarding the project and staff’s analysis of how it meets the Conditional Use Permit findings can be found within the Planning Commission staff report (Attachment D).

POLICY ALTERNATIVE(S):

Alternative: Direct staff to draft a resolution to deny the appeal.

Pros: A different project with other uses could be proposed at this site in accordance with the General Plan land use designation of Neighborhood Commercial and the corresponding C1 Neighborhood Commercial Zoning District.

Cons: The existing tenant space will remain vacant until a new tenant is proposed, and the Applicant will need to relocate his business.

Reason for Not Recommending: The proposed project meets the required findings for approval and is consistent with the City’s General Plan land use goals of encouraging a diverse mix of commercial uses and of promoting reinvestment in strip commercial and shopping centers.

FISCAL IMPACT:

If the proposed Project is approved, the applicant will apply for a business license and pay associated fees.

The new business is expected to generate additional revenue to the City through sales taxes.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):

The Project is exempt from further environmental review under CEQA pursuant to CEQA Guidelines Section 15301 for Existing Facilities and as a separate and independent basis, CEQA Guidelines Section 15183 (Projects Consistent with a Community Plan, General Plan, or Zoning). As proposed, the Project includes a conditionally permitted use within an existing commercial center in an urbanized area. The Project is also consistent with the Milpitas General Plan and Zoning Ordinance, and there are no circumstances present that would require a subsequent Environmental Impact Report (EIR) or Negative Declaration.

RECOMMENDATION:
(1) Conduct a public hearing and move to close the hearing following comments; (2) Consider the project to be categorically exempt from environmental review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Sections 15301 (Existing Facilities) and as a separate and independent basis, CEQA Guidelines Section 15183 (Projects Consistent with a Community Plan, General Plan, or Zoning); and
(3) Adopt a Resolution upholding or overturning the appeal and overturning the Planning Commission’s decision to deny Conditional Use Permit No. UP23-0013 to allow for the retail sales of tobacco products within an existing 870-square-foot tenant space of a 9,960-square-foot multi-tenant commercial building located on a 0.9-acre site located at 1225 Jacklin Road within the C1 Neighborhood Commercial Zoning District.

ATTACHMENT(S):
(a) City Council Resolution
(b) Appeal Form
(c) Appeal Letter from Applicant
(d) Planning Commission Staff Report
(e) Planning Commission Resolution No. 24-013

RESOLUTION NO. ____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MILPITAS UPHOLDING THE APPEAL BY APPROVING CONDITIONAL USE PERMIT NO. UP23-0013 TO ALLOW THE RETAIL SALES OF TOBACCO PRODUCTS WITHIN AN EXISTING 870 SQUARE-FOOT TENANT SPACE OF A 9,960 SQUARE- FOOT MULTI-TENANT COMMERCIAL BUILDING LOCATED ON A 0.9-ACRE SITE AT 1225 JACKLIN ROAD (APN 029-09-057).

WHEREAS,on November 13, 2023, Kareem Al Salahi, the Applicant and business owner, submitted a Conditional Use Permit application (Permit No. UP23-0013) to allow a Head/ Smoke/ Tobacco shop (Puff City) to allow for the retail sales of tobacco products; and
WHEREAS, the property is located within the Neighborhood Commercial (C1) Zoning District and has a General Plan land use designation of Neighborhood Commercial (NC); and WHEREAS, the Planning Department completed an environmental assessment for the project in accordance with the California Environmental Quality Act (CEQA), and recommends that the Planning Commission determine this project is categorically exempt from environmental review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15301 (Existing Facilities) and as a separate and independent basis, Section 15183 (Projects Consistent with a Community Plan, General Plan, or Zoning); and WHEREAS, on March 13, 2024, the Planning Commission held a duly noticed public hearing on the subject application, and considered the evidence presented by City staff, the applicant, and other interested parties; and WHEREAS, the Planning Commission considered all of the written and oral testimony presented at the public hearing in making its decision; and
WHEREAS, the Planning Commission denied the issuance of Conditional Use Permit No. UP23-0013; and WHEREAS, on March 22, 2024, within the time allowed by the Milpitas Municipal Code, Kareem Al Salahi (“Appellant” and “Applicant”) appealed the Planning Commission’s denial of issuance of Conditional Use Permit No.

UP23-0013; and
WHEREAS, on May 7, 2024, the City Council held a duly-noticed public hearing on the appeal, at which time all those in attendance were given the opportunity to speak on the Project; and WHEREAS, the City Council considered all of the written and oral testimony presented at the public hearing on the appeal, including evidence presented by City staff, the Appellant, and the public in making its decision.

NOW THEREFORE, the City Council of the City of Milpitas hereby finds, determines and resolves as follows:

SECTION 1. Recitals
The City Council has considered the full record before it, which may include, but is not limited to such things as the staff report, testimony by staff and the public, and other materials and evidence submitted or provided to it. Furthermore, the recitals set forth above are found to be true and correct and incorporated herein by reference.

SECTION 2. California Environmental Quality Act
This project is categorically exempt from environmental review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15301 (Existing Facilities) and; as a separate and independent basis, Section 15183 (Projects Consistent with a Community Plan, General Plan, or Zoning). As proposed, the Conditional Use Permit will allow for the retail sales of tobacco products within an existing commercial shopping center in an urbanized area and will not have a negative impact on the surrounding area. The project is also consistent with the Milpitas General Plan, Zoning Ordinance, and there are no circumstances present that would require a subsequent Environmental Impact Report (EIR) or Negative Declaration.

2 Resolution No. ___
SECTION 3. Conditional Use Permit (Section XI-10-57.04(F)(1)) The City Council makes the following findings based on the evidence in the public record in support of Conditional Use Permit No. UP23-0013:

A.The proposed use, at the proposed location will not be detrimental or injurious to property or improvements in the vicinity nor to the public health, safety, and general welfare.

The proposed head/smoke/tobacco use is consistent with this finding because the Project is within an existing commercial building and is permitted under the Zoning Ordinance with a Conditional Use Permit. The Project will be selling tobacco and tobacco related products, which provides additional retail options for the patrons. The proposal increases economic opportunity, and as conditioned, will not be detrimental to property or improvements in the vicinity nor to the public health, safety, and general welfare, because the retail tobacco sales will be conducted within an existing building. No consumption of the products will be allowed on the premises. As discussed above, the site meets all development standards and off-street parking requirements.

B. The proposed use is consistent with the Milpitas General Plan.

As described in Table 1, the Project is consistent with the Milpitas General Plan, which encourages activity within existing commercial centers. The proposed head/smoke/tobacco retailer will serve surrounding neighborhoods by providing goods not typically found nearby, which will help minimize vehicle miles traveled. In addition, the proposed retail sales will encourage economic pursuits by operating a retail business in an existing unoccupied commercial tenant space with Conditional Use Permit approval. The Project will provide economic opportunities to the Milpitas residents and around the region by providing different retail options.

Table 1:

General Plan Consistency
General Plan Policy Consistency Finding
LU 6-4: Maintain viable neighborhood-serving commercial uses throughout the City in order to serve surrounding
neighborhoods and minimize vehicle miles traveled.

Encourage a diverse mix of commercial uses including
retail, service, office, entertainment, and assembly uses.

Consistent. The proposed smoke shop will
serve surrounding neighborhoods by
providing goods not typically found nearby,
which will help minimize vehicle miles
traveled. The proposed smoke shop will be
located in an existing shopping center that
includes a diverse mix of uses including
retail and restaurants.

LU 6-5: Promote reinvestment in strip commercial and
shopping centers and maintain, revitalize, and redevelop aging and underperforming centers.

Consistent. The proposed smoke shop will
reinvest in an existing shopping center by
occupying a previously vacant tenant space.

C. The proposed use is consistent with the Milpitas Zoning Ordinance.

The proposed head/smoke/tobacco use is a conditionally permitted use in the Neighborhood Commercial (C1) Zoning District and complies with the applicable development standards. As demonstrated in Table 2, the Project conforms to the development standards as set forth in Milpitas Municipal Code Sections XI-10-5.02 and XI-10-

5.03. Table 3 demonstrates the Project's compliance with the Zoning Ordinance parking standard per Section XI- 10-53 Off-Street Parking Regulations.

3 Resolution No. ___
Table 2: Zoning Conformance
C1 Standard Existing Complies?
Front (South) 20’ ~110' Yes, no change
Side Yard
(East/West)
0'
15' when abutting
Residential
2' (west)
33’ (east) Yes, no change
Rear (North)
0'
15' when abutting
Residential
2' Yes, no change
Floor Area Ratio
(Max) 0.35 ~0.25 Yes, no change
Building Height
(Max) 35’ or 3 stories ~15'
1 story Yes, no change
Landscaping None ~25 Yes, no change
Table 3: Parking Summary
Uses Area
(sq. ft.) Parking Standard Total Parking Required
Smoke shop
Market
Gift shop
(Retail)
4,108 1 space per 200 sq.
ft.
4,180 sq. ft. /200 sq. ft. = ~21
spaces
Massage 619 2 spaces per
treatment room
1 treatment room
= 2 spaces
Dry Cleaners 1,320 1 space per 200 sq.
ft.
1,320 sq. ft. / 200 sq. ft. = 6.6
Total for office = ~7 spaces
Restaurants
2,726
(gross) 1 per 39 sq. ft. of
dining area
425 sq. ft./ 39 sq. ft. = ~11
spaces
Salon
(personal
services)
964 1 per 200 sq. ft. 964/200 = ~5 spaces
Total Parking Spaces required per Section XI-10-53 45
Existing parking spaces for the shopping center 45

4 Resolution No. ___
SECTION 4: City Council Decision and Approval.

The City Council of the City of Milpitas hereby upholds the appeal by approving Conditional Use Permit No. 23- 0013 based on the above findings and subject to the Conditions of Approval attached hereto as Exhibit “1” and incorporated herein.

PASSED AND ADOPTED this ____________ day of _____________, 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

ATTEST:

Suzanne Guzzetta, City Clerk
APPROVED:

Carmen Montano, Mayor
APPROVED AS TO FORM:

Michael Mutalipassi, City Attorney

5 Resolution No. ___
EXHIBIT 1
CONDITIONAL USE PERMIT NO. UP23-0013
1225 JACKLIN ROAD (APN 029-09-057)
The City of Milpitas approves Conditional Use Permit No. UP23-0013 in accordance with Section XI-10-57.04 of the Milpitas Municipal Code, subject to and conditioned upon all applicable State and local laws and regulations and the Conditions of Approval outlined below. This permit is to allow the conditional use of a new off-sale only head/smoke/tobacco shop within 870 square feet tenant space of an existing 9,960 square-foot, one-story, multi-tenant commercial building located on a 0.9-acre site within the Neighborhood Commercial (C1) Zoning District at 1225 Jacklin Road (APN 029-09-057), subject to all other necessary reviews, approvals, permits, licenses, studies, and inspections necessary for such use. This permit does not permit the operation or use of these premises for a smokers’ lounge or other on-site commercial tobacco or smoking use. This approval is subject to all applicable State and local regulations and the conditions of approval outlined below.

APPROVED SUBJECT TO THE FOLLOWING CONDITIONS OF APPROVAL:

GENERAL CONDITIONS

1. General Compliance. The applicant, including all successors in interest (collectively “Permittee”) shall comply with each and every condition set forth in this Permit. Conditional Use Permit Amendment No. UP23-0013 (“Permit”) shall have no force or effect and no building permit shall be issued unless and until all things required by the below- enumerated precedent conditions have been performed or caused to be performed and this Resolution has been recorded by the Permittee with the Santa Clara County’s Recorder Office and a copy shall be provided to the Planning Department. (P)

2. The Permittee shall develop the approved project in conformance with the approved plans approved by the City Council on May 7, 2024, in accordance with these Conditions of Approval. (P)

3. Modifications to Project. Any deviation from the approved site plan, floor plans, or other approved submittal shall require that, prior to the issuance of building permits, the Permittee submit modified plans and any other applicable materials as required by the City for review and obtain the approval of the Planning Director or Designee. If the Planning Director or designee determines that the deviation is significant, the Permittee shall be required to apply for review and obtain approval of the Planning Commission, in accordance with the Zoning Ordinance. (P)

4. Effective Date. Unless there is a timely appeal filed in accordance with the Milpitas Zoning Ordinance, the date of approval of this Permit is the date on which the decision-making body approved this Permit.

5. Conditions of Approval. As part of the issuance of building permits, the Permittee shall include within the first four pages of the working drawings for a plan check, a list of all conditions of approval imposed by the final approval of the project. (P)

6. Written Response to Conditions. The Permittee shall provide a written response to the Conditions of Approval indicating how each condition has been addressed with the building permit application submittal. (ALL)

7. Permit Expiration. Pursuant to Section XI-10-64.06 of the Milpitas Municipal Code, this Permit shall become null and void if the activity permitted by this Permit is not commenced within two (2) years from the date of approval, or for a project submitted with a tentative map, within the time limits of the approved tentative map. Pursuant to Section XI- 10-64.06(B) of the Milpitas Municipal Code, an activity permitted by this Permit shall be deemed to have commenced when the project:
a. Completes a foundation associated with the project; or b. Dedicates any land or easement as required from the zoning action; or

6 Resolution No. ___
c. Complies with all legal requirements necessary to commence the use, or obtains an occupancy permit, whichever is sooner.

8. Time Extension. Pursuant to Section XI-10-64.07 of the Milpitas Municipal Code, unless otherwise provided by State law, Permittee shall have the right to request a one-time extension of the Permit if the request is made in writing to the Planning Department prior to the expiration date of the approval. (P)

9. Project Job Account. If at the time of application for building permit there is a project job account balance due to the City for recovery of review fees, the review of permits will not be initiated until the balance is paid in full. (E)

10. Compliance with Laws. The construction, use, and all related activity authorized under this Permit shall comply with all applicable local, state, and federal laws, rules, regulations, guidelines, requirements, and policies. (CA/P)

11. Acceptance of Permit. Should Permittee fail to file a timely appeal within twelve (12) calendar days of the date of approval of this Permit, inaction by Permittee shall be deemed to constitute each of the following:
a. Acceptance of this Permit by Permittee; and
b. Agreement by the Permittee to be bound by, comply with, and to do all things required of or by Permittee pursuant to all of the terms, obligations, and conditions of this Permit.

12. Indemnification. To the fullest extent permitted by law, Permittee shall indemnify, defend with counsel of the City’s choosing, and hold harmless City, its City Council, its boards and commissions, officials, officers, employees, and agents from and against any and all claims, demands, obligations, damages, actions, causes of action, suits, losses, judgments, fines, penalties, liabilities, costs and expenses (including without limitation, attorney's fees, disbursements and court costs) of every kind and nature whatsoever which may arise from or in any manner relate (directly or indirectly) to (i) City's approval of the project, including but not limited to, the approval of the discretionary permits, maps under the Subdivision Map Act, and/or the City's related determinations or actions under the California Environmental Quality Act, and (ii) Permittee’s construction, operation, use, or related activity under this Permit. This indemnification shall include, but not be limited to, damages awarded against the City, if any, costs of suit, attorneys' fees, and other expenses incurred in connection with such claim, action, causes of action, suit or proceeding whether incurred by applicant, City, and/or the parties initiating or bringing such proceeding. Permittee shall indemnify the City for all of City's costs, attorneys' fees, and damages which City incurs in enforcing the indemnification provisions set forth in this condition. Permittee shall pay to the City upon demand or, as applicable, to counsel of City’s choosing, any amount owed pursuant to the indemnification requirements prescribed in this condition. Permittee shall enter into an indemnification agreement with the City that incorporates the provisions of this condition prior to commencing the use authorized in this Permit. (CA)

13. Revocation, Suspension, Modification. This Permit may be suspended, revoked, or modified in accordance with Section XI-10-63.06 of the Milpitas Municipal Code.

14. Severability. If any term, provision, or condition of this Permit is held to be illegal or unenforceable by the Court, such term, provision, or condition shall be severed and shall be inoperative, and the remainder of this Permit shall remain operative, binding, and fully enforceable.

15. Previous Approvals. Permittee shall abide by and continue to comply with all previous City approvals, permits, or requirements relating to the subject property, unless explicitly superseded or revised by this Permit.

16. Fire Department. The project/development shall comply with the requirements of the Fire Department and the California Fire Code, as demonstrated in the Fire Department's Memorandum, dated November 27, 2023, as may be amended by the City of Milpitas. Changes to the site plan and/or internal circulation shall be reviewed and approved by the Fire Department. (F)

17. Building Department. The project/development shall comply with the requirements of the Building Department and the Building Code, as demonstrated in the Building Department's Memorandum, dated November 14, 2023, as may be amended by the City of Milpitas. (B)

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18. Smoking and On-site Use of Products Generally Prohibited. The Permittee shall comply with and ensure compliance with all state, local, federal, and other laws and regulations prohibiting or regulating smoking on the premises, including California Labor Code section 6404.5, California Health and Safety Code sections 104495 and 114371, California Government Code sections 7596-7598, and Title V, Chapter 215 of the Milpitas Municipal Code. In addition, the Permitee shall not cause, permit, aid, abet, suffer, conceal, or allow the consumption, smoking, or use of any goods or other products, including samples, obtained from the business on the premises or anywhere in the surrounding shopping plaza, including the parking lot, walkways, and common areas. Nor shall the Permittee cause, permit, aid, abet, suffer, conceal, or allow customers to consume, smoke, or use any tobacco or tobacco products on the premises or anywhere in the surrounding shopping plaza, including the parking lot, walkways, and common areas.

Any violation of this condition shall be an independent and sufficient basis for revocation, suspension, or modification of this Permit.

19. Laws and Licenses for Tobacco Retail. Obey all laws and regulations, including the Cigarette and Tobacco Products Licensing Act, and obtain all necessary permits, licenses, certifications, and approvals necessary for retail sale of tobacco and tobacco products, including maintaining in good standing a Cigarette and Tobacco Products Retailer’s License with the California Department of Tax and Fee Administration. Any violation of this condition shall be an independent and sufficient basis for revocation, suspension, or modification of this Permit.

20. Hours of Operation. Permittee shall have limited business operating hours of 10 A.M. to 10 P.M. daily. Any deviation from these hours of operation shall require that the Permittee submit a written request as required by the City for review and obtain the approval of the Planning Director or Designee. If the Planning Director or designee determines that the deviation is significant, the Permittee shall be required to apply for review and obtain approval of the Planning Commission, in accordance with the Zoning Ordinance.

POLICE DEPARTMENT CONDITIONS

21. Parking. Parking is not affected by the proposed permit, and the current parking lot is of sufficient capacity to accommodate additionally parked vehicles. No changes are recommended for the parking lot. (PD)

22. The parking lot should continue allowing accessible circulation for police patrols (vehicles, foot, and bicycles) to prevent and reduce the likelihood of criminal activity occurring in the area. (PD)

23. Visibility. Lighting shall be of sufficient wattage to adequately illuminate and make visible the presence of any person in or about the outside premises during hours of darkness. (PD)

24. Line of sight obstructions, including business signs, advertisements, or other markings, should be avoided on the exterior windows to maximize natural surveillance during the business’s closed hours. (PD)

25. Security. Video/security cameras shall be required for the site, with coverage at all access points into the business. The interior video/security cameras shall record in high definition and cover any cash register, safe, or other device that stores currency, entrances/exits, and hallways or paths leading to a restroom. The video/security system shall have the capability to be downloaded. A copy of video/security footage shall be made available to law enforcement upon request for investigative purposes. It is recommended the employees of the business be appropriately trained on how to use the security surveillance camera system so that footage can be reviewed and collected in a timely fashion by the Police department if needed. (PD)

26. The cashier area, safe, or other devices that stores currency should be away from the front doors, windows of the business, and not in plain view to help prevent burglaries when the company is closed. If these areas cannot be moved, window treatments such as shades or blinds preventing the site from being visible from the outside should be considered. (PD)

27. Accessibility. An up-to-date map of the interior of the building should be provided to the Police Department. The map should minimally identify the locations of each entry/exit point, storage area, maintenance area, etc.

8 Resolution No. ___

28. Kratom. Despite not being classified under the Controlled Substance Act, the use of kratom raises concerns regarding its impact on public safety and community well-being. Therefore, the sale of kratom is prohibited at the site. (PD)

29. Miscellaneous. Applicant shall file an emergency notification form with the Police Department so law enforcement can contact the applicant in case of any significant accident, emergency, or unforeseen circumstance. (PD)

BUILDING SAFETY AND HOUSING DEPARTMENT CONDITIONS

30. The Project shall comply with the requirements of the Building Safety and Housing Department and the California Code of Regulations Title 24 and the Milpitas Municipal Code as adopted by the City. Building permits shall be submitted to and approved by the Building Safety and Housing Department prior to start of construction. All California Code of Regulations Title 24 and Milpitas Municipal Code requirements applicable at the time of building permit application must be met in advance of any building permit approvals or related construction. Changes to the site plan and/or building plan require review and approval by the Building Safety and Housing Department.

FIRE DEPARTMENT CONDITIONS

31. Please do not consider this an approval from Fire Department. Additional requirements may be made during the construction permit process. These notes are a general list of the applicable code requirements, and it is provided to assist with the construction permit process.

32. No changes shall be made in the use or occupancy of any structure that would place the structure in a different division of the same group or occupancy or in a different group of occupancies, unless such structure is made to comply with the requirements of the current code(s). California Fire Code (CFC) Section 102.3

33. New and existing buildings shall have approved address numbers, building numbers or approved building identification placed in a position that is plainly legible and visible from the street or road fronting the property. These numbers shall contract with their background. Address numbers shall be Arabic numerals or alphabet letters and shall be consistent with Milpitas standardized addressing guidelines. CFC Section 505.1

34. Assembly Use. This facility/business/site is not approved for assembly use as defined by the CA Building Code (50 or more occupants).

35. Maximum Occupancy. The maximum number of occupants within this business/facility shall be limited to the permitted number by the Planning Department, but not to exceed the permitted occupancy load under the CA Building and Fire Codes.

36. Portable fire extinguishers for general area shall be installed in occupancies and locations as set forth in the CFC Section 906 and as required by the Fire Code Official.

37. Egress based on occupant load and common path of egress travel distance. Two exits or exit access doorways from any space shall be provided where the design occupant load or the common path of egress exceeds the values listed in 2022 California Fire Code Table 1006.2.1. The cumulative occupant load from adjacent rooms, areas or spaces shall be determined in accordance with section 1004.2.

38. Exit doors shall swing in the direction of exit travel when serving an occupant load of 50 or more. CFC Section 1010.1.2.1

39. Egress doors shall be readily openable from the egress side without the use of a key or special knowledge or effort.

CFC Section 1010.1.9

9 Resolution No. ___

40. Manually operated flush bolts or surface bolts are not permitted. CFC Section 1010.1.9.5

41. Exits and exit access doors shall be marked by an approved exit sign readily visible from any direction of egress travel.

Exit sign placement shall be such that no point in a corridor is more than 100 feet or the listed viewing distance for the sign, whichever is less, from the nearest visible sign. Additional signs may be required if clear path of exit access is not readily defined. CFC Section 1013.1

42. Complete plans and specifications for all aspects of fire-protection systems shall be submitted to the Fire Department for review and approval prior to system installation or alteration. CFC Section 105.4

43. Means of egress shall be provided in conformance with the CA Building Code Chapter 10.

44. The Milpitas Fire Department shall approve new installation and/or modifications to existing fire protection, alarm or monitoring system(s). A separate submitted is required to the Milpitas Fire Department, for review and approval, prior to the commencement of any work. CFC Section 901.2
LEGEND
(P) = Planning
(B) = Building
(E) = Engineering
(F) = Fire Prevention
(PD) = Police Department
(CA) = City Attorney

NOTICE OF RIGHT TO PROTEST
The Conditions of Project Approval set forth herein include certain fees, dedication requirements, reservation requirements, and other exactions. Pursuant to Government Code Section 66020(d)(1), these Conditions constitute written notice of a statement of the amount of such fees, and a description of the dedications, reservations, and other exactions. You are hereby further notified that the 90-day approval period in which you may protest these fees, dedications, reservations, and other exactions, pursuant to Government Code Section 66020(a), began on date of adoption of this resolution. If you fail to file a protest within this 90-day period complying with all of the requirements of Section 66020, you will be legally barred from later challenging such exactions.

AGREEMENT
Permittee/Property Owner
The undersigned agrees to each and every condition of approval and acknowledges the NOTICE OF RIGHT TO PROTEST and hereby agrees to use the project property on the terms and conditions set forth in this resolution.

Dated: _________________ ______________________________________ Signature of Permittee

City of Milpitas
455 E. Calaveras Blvd.

Milpitas, CA 95035

File with: Milpitas City Clerk
Milpitas City Hall, 3rd floor
455 E. Calaveras Blvd.

Milpitas, CA 95035

If questions, call:

PLANNING: 408-586-3279
CITY CLERK: 408-586-3001

APPEAL FORM

1. APPELLANT(S):

Name: ____________________________________________________ Company: ____________________________________________________ Address: ____________________________________________________ City/State/Zip: ____________________________________________________

2. DECISION BEING APPEALED:

I (we), the undersigned, do hereby appeal a decision of the Planning Commission’s (or other body’s) approval of:

PROJECT:

LOCATION:

DATE OF DECISION BEING APPEALED:

3. STATE THE SPECIFIC RELIEF WHICH THE APPELLANT SEEKS:

Kareem Al Salahi
Puff City Smoke Shop
Milpitas, CA
March 13, 2024
Planning Commission's denial of Conditional Use Permit No. UP23-0013 Reverse the decision subject to new conditions set by City Council Tobacco Shop under MMC XI-10-5.02(A)(1)
1225 Jacklin Road, Milpitas
1225 Jacklin Road

4. SUMMARY OF REASONS WHY THE APPELLANT CLAIMS ENTITLEMENT TO THE RELIEF SOUGHT:

Attach additional pages, if more space is needed.

I, the undersigned, acknowledge the procedures for filing an appeal, including the responsibilities of public notices in accordance with the Milpitas Municipal Code s Title XI 10-64.04, as prescribed for zoning related hearings, and Title I 20-2.02 for Notices provided by mail.

DATE: SIGNATURE
PRINT NAME:

PAID Filing Fee $2017.00 ADDRESS
___ Cash CITY/ST/ZIP

___ Check No.

PHONE #s:
_____________________________________________

E-MAIL ADDRESS:

FORM & FEE RECEIVE
D BY:
(City staff name)

DATE R ECEIVED:

Please see attached letter.

Kareem Al Salahi
917-530-5297
[email protected]
Milpitas, CA 95035
1225 Jacklin Road

City of Milpitas
455 E. Calaveras Blvd.

Milpitas, CA 95035

PROCEDURE

PROCEDURE Any person aggrieved by any decision of any officer, board, commission or department of the City of Milpitas, may appeal the decision to the City Council by filing a written notice of appeal with the City Clerk within twelve (12) calendar days of the date of the decision. The time limit shall be enforced.

Per Milpitas Municipal Code I 20-5.02.

FEE FOR FILING The appellant shall pay to the City at the time of filing the notice of appeal the sum of $2,017.00. Fee established in the Master Fee Schedule adopted by City Council Resolution No. 9142 on April 19, 2022.

CONTENTS OF N otice of appeal shall state:

NOTICE
(1) The name, address and e-mail of the appellant(s).

(2) The decision appealed from, the date of the decision and the name of the officer, board, commission or department rendering the decision.

(3) The specific relief which the appellant seeks.

(4) A summary of the reasons why the appellant claims he/she is entitled to the relief sought.

The Notice of appeal shall be signed by the appellant or appellants.

SETTING OF If the decision appealed from was one rendered upon public hearing before a HEARING DATE City officer, Board, Commission or Department, the City Clerk shall cause a hearing to be set before the Council within sixty (60) days of the filing of the notice of appeal (per Milpitas Municipal Code I-20-5.06). Notice of hearing shall be given in the same manner as was required to be given upon the original hearing before the Commission (in accord with Milpitas Municipal Code XI 10-64.04).

NOTICE Notice shall be given to the appellant or appellants by mail in accordance with Section I-20-2.02 of the Milpitas Municipal Code. For appeals related to Zoning applications, notices shall also be in accordance with Title XI, 10-

64.04 of the Milpitas Municipal Code.

HEARING APPEAL The City Council shall hold a hearing upon the appeal in accordance with the provisions of Section I-20-3.02 of the Milpitas Municipal Code. The Council may hear and consider evidence presented at the hearing and may also hear and consider new evidence. The Council may also consider the decision of the officer, board, commission or department and the reasons assigned, if any.

DECISION OF The Council shall render its decision by majority vote within sixty (60) days of THE COUNCIL the close of the hearing on appeal, per Milpitas Municipal Code I-20-3.17.

The decision of the City Council shall be final.

When an appeal from any decision of any City officer, board, commission or department to the Council is authorized by ordinance of the City or by the Milpitas Municipal Code, the Council shall be empowered to hear new evidence upon the appeal and to:

(i) sustain the decision, or

(ii) reverse and remand the decision for further consideration, or

(iii) reverse the decision (without remand) and reach an opposite decision, or

(iv) modify the decision, or

(v) sustain, reverse or modify the decision, subject to such new or additional conditions as are imposed by the Council

provided, however, that the City Council shall not modify a decision or sustain, reverse or modify the decision subject to new or additional conditions without first giving the same notice and opportunity for hearing that was required by law for the original decision of the officer, board, commission or department appealed from.

A notice of appeal shall not be effective unless the notice shall be filed and the required filing fee paid within the time frame, as required by Milpitas Municipal Code.

March 21, 2025
Mayor Montano and Members of Milpitas City Council
Milpitas Civic Center
Milpitas, CA 95035
Subject: Appeal of Planning Commission’s March 13, 2024 Denial for a Conditional Use Permit (UP23-0013) to allow a new Head/Smoke/Tobacco shop at 1225 Jacklin Road Dear Mayor Montano and Members of Milpitas City Council, With this Appeal, I respectfully request that the Milpitas City Council grant my Appeal and my Application for a Conditional Use Permit UP23-0013 (“CUP”) for a tobacco shop. I am a small minority owned business that is eager to invest in the vibrant community of the City of Milpitas. My tobacco shop is consistent with the General Plan Land Use Policies to maintain viable commercial uses throughout the City and promote reinvestment and revitalization of shopping centers. It is also consistent with the Neighborhood Commercial C1 zoning standards.

BACKGROUND:

I am a small minority owned business already operating one tobacco shop in a nearby city that is in good standing. Customers view my store as a unique business with high quality products and knowledgeable staff, and I take pride in running my business in full compliance with all laws.

Because demand at my current location is high, I began to explore a second location in Milpitas. I was drawn to the vacant unit at 1225 Jacklin Road because I was seeking a small place to begin with, to serve local residents and commuters. I took a chance and entered a lease in June of 2023 for my new business. At that time, I was unaware that I needed a Conditional Use Permit.

I applied for a Conditional Use Permit on November 7, 2023. The Planning Department recommended approval of the CUP to the Planning Commission on March 13, 2024. In their report to the Planning Commission, the Planning Department wrote that my shop is not injurious to the property or the public, is consistent with the zoning ordinance, and is consistent with the General Plan. (Planning Committee Report p.8)

At the hearing, I was also allowed to speak. My testimony was commended by Commissioner Mercedes Albana, the Chair of the Planning Commission. (See Hour 2, Minute 13, second 14 of the City’s recording
https://www.youtube.com/watch?v=eds9P7BLRTg, “As a matter of fact, he did very good in explaining himself.”) Nevertheless, without making any findings or stating a reason, the Planning Commission denied the CUP in a 1-5 decision with Commissioner Gupta abstaining. Commissioner Gupta did not state any reason for why he chose to abstain.

ABOUT MY BUSINESS:

A head/smoke/tobacco shop sells tobacco and tobacco-related products. I do not and have never sold marijuana. The products I sell are high quality items intended for tobacco use and CBD products, along with some clothing and other natural hemp products.

No sampling or tobacco consumption occurs on-site. There are a number of safeguards I put in place to ensure that my store only serves customers who are 21 and over. Just some of the safeguards include a highly trained staff, Age of Sale Warning Signs issued by the California Department of Health, and an electronic ID check at the entrance.

With this new location in Milpitas, my plan is to only sell products in alignment with the Milpitas Zoning Code, which defines a head/smoke/tobacco shop as:

A “retail establishment primarily engaged in the selling of smoking and tobacco products and accessories, and other products, devices and components reasonably assumed to be used for smoking and/or the inhalation or ingestion of any substances. Tobacco products may include but are not limited to cigarettes, cigars, loose leaf tobacco, tobacco pipes, Electronic Smoking Devices and accessories, vaporizers and accessories and any other product, device or component used in the inhalation of tobacco, nicotine or other substance. For the purposes of this definition only, "primarily engaged" means when thirty percent (30%) or more of products sold at the retail establishment are smoking and tobacco products and accessories, and other products, devices and components reasonably assumed to be used for smoking and/or the inhalation or ingestion of any substance.” (Milpitas Municipal Code XI-10-2.03)
WHAT HAPPENED AT THE PLANNING COMMISSION MEETING?
During the hearing, the Planning Commission accepted the written and verbal Staff Report, viewed a presentation from Planner Randy Baez and heard public comments. Staff had also received five written comments which they passed along to the Commissioners. I have not been able to access those comments, and do not know what they say. I did attend and testify at the hearing, which remained respectful and calm throughout. However, there were some misunderstandings that I hope to clear up with this Appeal.

I think some of the confusion began when the issue on the City’s tobacco license came up. The Planning Commissioners were asking questions about why Milpitas does not have a tobacco license. The Planning Director Jay Lee explained that Milpitas does not have a tobacco license because of staff limitations on enforcement. I had also experienced

some confusion on my part related to Milpitas licensing because based on my conversations with the City staff prior to opening my business, I also was under the impression that I didn’t need a tobacco license to open my doors to the public.

It wasn’t until early August of 2023 that I learned from a City Inspector who came to my store that while I didn’t need a tobacco license, I did need a Conditional Use Permit.

When I was cited by the City on August 9, 2023 for not having a Conditional Use Permit, I did not know that I needed a Conditional Use Permit. Once I learned that I needed one, I shut my doors immediately, but did not want to lose hope that I could never open my business again. And so, I continued to honor my lease in hopes of obtaining a Conditional Use Permit through the application process.

Since August, the store was closed and has remained closed. The Planning Department Memo mentions that I was cited for conducting an interior remodel in September. To be clear, I was not remodeling my store at that time, so I have no idea what this violation is about. I also did not receive any communication verbally or in writing about being in any violation of a remodeling ordinance. I still have not received a copy of this violation, and the first time I heard about it was at the Planning Commission meeting.

I do want to say that I was contacted by email on October 25, 2023 by Michelle Fossati, a Senior Planner at City of Milpitas, letting me know I should take down a flag. I did so immediately.

I want to use this opportunity to apologize in writing for not knowing more about the Milpitas regulations at the time that I opened my store and put out a flag. What I failed to understand but what I now know, of course, is that I need a Conditional Use Permit to operate a tobacco shop and a sign permit for any signage. I can imagine that having two citations (one of which I never received) would give the Planning Commission and City Council the wrong impression that I was not interested in complying with the law. At the Hearing, the Planning Commission reminded me that I should have known about the Conditional Use Permit prior to opening my business. I thought that operating a small business in another city had given me enough experience, but I was wrong to think that I could open a store without more help. As a result, I inadvertently violated Milpitas regulations.

Now I know that I need to do better when it comes to operating a business in Milpitas. I am eager to demonstrate that I am a reliable business owner who can contribute positively to the community. This is especially important to me because seven members of the public raised concerns that children would be able to see and access my business, the hours of operation were too long, the potential noise and traffic would bother residents, and that the signage was too large. It also has come to my attention that the owner of Bonfare Fine Foods next door, who also sells cigarettes, is in opposition to my store. My intention is to not compete with his ability to earn a living in Milpitas; I believe that Milpitas has enough opportunities for many types of businesses and that operating next to one another can benefit the both of us.

MY REQUEST FOR APPEAL:

Appeal point 1: No Explanation, Findings, Evidence, or Analysis in writing or stated out loud. I believe that the Planning Commission did not follow their own rules.

Their by-law 6.12 says, “Public decisions must be accompanied with coherent reasons.” But I left the hearing not understanding the standards that the Planning Commission applied when they decided that a tobacco store at this location was a problem. I listened to the youtube recording at home, and heard, “Ok. I, um, well before I make a motion, I think um so many concerns about the audience also where the location, the operating hours. I’ve heard about smoking in the parking lot. It’s going to be a case I think so I like to make a motion to deny, um, this, um, this project.“
Based on what I experienced, this seems like an unfair and arbitrary decision. The Planning Commission testified at the Hearing that my store complies with the General Plan and Zoning. Given that the store is in alignment with Milpitas law, what makes this location a problem? A Police Officer also testified at the Hearing that my store has not been the source of any complaints, incidents, or trouble. While there was testimony about people’s concerns about what could happen in the future, the Planning Commission voted to deny the CUP without findings, analysis, explanation or evidence.

A big reason why I need to understand why the Planning Commission made their decision is so that I can decide whether I should file this Appeal, which costs over $2,000. In an email, Planner Randy Baez wrote to me that the Planning Commission may adopt Minutes in their next meeting, but I don’t have access to those Minutes now, before my right to Appeal expires. So, I don’t know what those Minutes will say. This seems really unfair and puts me in a bind because it keeps me from making an informed choice about whether I should appeal.

Another reason why this troubles me is that I do not know how to best argue this Appeal, because I have no explanation why the Planning Commission denied the CUP. I can’t understand their analysis because they never gave me one. What if their denial is due to some of those comment letters I have never been able to access? What if the denial is due to the remodeling violation that I still don’t understand? I don’t know what to do about this.

Appeal point 2. The vote. One reason that the vote doesn’t follow the Planning Commission’s own rules is that they didn’t clarify whether they were denying my CUP with or without prejudice based on Bylaw 5.05. This just makes me all the more confused because as of today, there is nothing in writing that allows me to understand the terms of the Planning Commission’s decision or tells me whether I should appeal to City Council or re-apply to the Planning Commission.

Appeal point 3: Concerns regarding underage access. No children would ever be allowed in my store. I have an Age of Sale Warning Sign issued by the California Department of Health outside the store. I also have a We Check ID Window Cling issued by the California Department of Health to remind customers that the age of sale for tobacco and e-cigarettes is 21 inside of my store that makes it clear that my store is 21 and over. My staff and I take this law seriously and use an electronic ID machine at the entrance to ensure that no children gain access to the store.

Appeal point 4: Concerns about signage. At the hearing, people spoke against a sign I put up temporarily because I heard they think it is too big. I have taken down my temporary signage until I hear the terms of the permit. If the community or City Council thinks parameters about my signs should be in place, I am ready to apply for a sign permit based on the criteria specified by City Council stated by the CUP.

Appeal point 5. Hours of business. While I do hope that my business generates customers, I respect that neighbors want quiet evenings and that the late-night hours I proposed on the application are not acceptable to the community. Accordingly, I am eager to obtain guidance from City Council about appropriate hours of operation. As a point of information, the business hours of the Bonfare Market end at 10 p.m. Tuesday. Bonfare closes at 11 p.m. on Wednesday, Sunday, and Monday. They close at 12 a.m. on Friday and Saturday.

Appeal point 6. Name of business. Some testimony suggested that the name of my business should be more narrowly tailored to appeal to upscale adult tobacco clientele.

Alternative names could be Tobacco Shop or Smoke Shop. I am willing to receive guidance on this topic.

THANK YOU
I appreciate the time you are taking to consider my CUP application and Appeal. I believe the Planning Commission didn’t follow the rules when they voted with no explanation. With this CUP, I am seeking to get direction from you so that I can move forward to build a successful minority owned business in Milpitas. I am ready to pay all permit fees for a new, smaller sign, and change the name of my business and be zealous in ensuring that I serve customers who are only 21 and older.

Sincerely,
Kareem Al Salahi
Small Business Owner

AGENDA ITEM: IX-1

MILPITAS PLANNING COMMISSION

STAFF REPORT

March 13, 2024

APPLICATION: NEW HEAD/SMOKE/TOBACCO SHOP (RETAIL USE) – Conditional Use Permit No. UP23-0013 - A Conditional Use Permit to allow for the retail sales of tobacco products within an existing 870-square foot tenant space of a 9,960 -square foot multi- tenant commercial building, located at 1225 Jacklin Road on a 0.9- acre lot within the C1 Neighborhood Commercial zoning district.

RECOMMENDATION: Staff recommends that the Planning Commission consider the exemption in accordance with CEQA and adopt Resolution No. 24-013, approving Conditional Use Permit No. UP23-0013, subject to the findings and attached Conditions of Approval.

LOCATION:

Address/APN: 1225 Jacklin Rd. (APN: 029-09-057)
Area of City: Northwest corner of Jacklin Road. and North Park Victoria Drive

PEOPLE:

Project Applicant: Kareem Al Salahi (Representative and Business Owner)

Property/Business Owner: Hartman Property Management Inc.

Project Planner: Randy Baez, Associate Planner

LAND USE:

General Plan Designation: Neighborhood Commercial (NC)
Zoning District: Neighborhood Commercial (C1)

ENVIRONMENTAL: This Project is categorically exempt from environmental review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15301 (Existing Facilities) and; as a separate and independent basis, CEQA Guidelines Section 15183 (Projects Consisten t with a Community Plan, General Plan, or Zoning).

EXECUTIVE SUMMARY
Puff City Smoke Shop is requesting a Conditional Use Permit (CUP) to allow for the retail sales of tobacco products for off-site use only within an existing commercial tenant space. The Project tenant space space is 870 square feet in size and located within a multi-tenant commercial building totaling 9,960 square feet. No consumption or sampling of the products will be allowed on -site.

The proposed business hours are Monday through Sunday, 10am to 12am.

Agenda Item IX-1: New Smoke Shop – March 13, 2024 Page 2 of 9 Map 1:

Project Location

Map 2
Project Zoning Map

Site
Site

Agenda Item IX-1: New Smoke Shop – March 13, 2024 Page 3 of 9

BACKGROUND
History
The subject site has an existing one-story, 9,960-square foot multi-tenant commercial building first approved by the Planning Commission in 1983 . The existing building consists of eight tenant spaces occupied by various uses ranging from restaurants to personal services. Puff City Smoke Shop (Applicant) proposes to occupy an 870 -square foot tenant space addressed a s 1225 Jacklin Road. The tenant space was formerly occupied by an insurance office for approximately 30 years.

Background
On August 9th, 2023, the Building Safety & Housing Department conducted an inspection of the property in response to a notice of violation of the Milpitas Municipal Co de (MMC). That inspection found that the property was in violation of MMC Sec. XI -10-5.02(A)(1) for operating a Head/Smoke/Tobacco shop without the benefit of an approved Conditional Use Permit. On September 5th, 2023, the Building Safety & Housing Department conducted another inspection of the property and found the property to be in violation of conducting an interior remodel of tenant space without the benefit of a permit. This Project (UP23-0013) seeks to address these violations and bring the property into compliance.

Application
On November 7, 202 3, Kareem Al Salahi, the applicant and business owner , submitted a Conditional Use Permit application (Permit No. UP23-0013) to allow for the retail sale of tobacco products within the subject tenant space. The business will be known as Puff City Smoke Shop, which plans to operate daily from 10am to 12am (midnight). Pursuant to Milpitas Municipal Code (MMC) Table XI-10-5.02-1 and Ordinance No. 227.6, the proposed head/smoke/tobacco shop use requires a Conditional Use Permit to be approved by the Planning Commission.

PROJECT DISCRIPTION
Overview
The applicant (Puff City) is requesting a Conditional Use Permit (CUP) to allow for the retail sale of tobacco and tobacco-related products for off-site consumption or use only . A list of items for sale include cigars, tobacco pipes, tobacco containers, tobacco grinders, tobacco wraps, hemp wraps, rolling papers, rolling machines, rolling tips, butane, lighters, backpacks, clothing, kratom, hemp products and CBD . The subject tenant space is 870 square feet, which includes the main retail area as well as ancillary storage, an office and a bathroom at the rear of the suite. Only cosmetic improvements such as display areas are proposed.

Location and Context
The Project site is located within a single-story multi-tenant commercial building at the northwest corner of North Park Victoria Drive and Jacklin Road, just east of the I -680 Interstate Freeway.

The 0.9-acre site includes one multi-tenant commercial building with eight tenant spaces ranging from 674 square feet to 2,052 square feet in size. North Park Victoria Drive bounds the site to the east, and Jacklin R oad to the south . Table 1 belo w summarizes the Project site 's land use designation and surrounding uses.

Agenda Item IX-1: New Smoke Shop – March 13, 2024 Page 4 of 9 Table 1:

Surrounding Zoning and Land Uses

General Plan Zoning Existing Uses
Subject Site Neighborhood
Commercial (NC)
Neighborhood
Commercial (C1) Multi-Tenant Commercial
North Medium Residential
(MDR)
Single-Family
Residential (R1-4) Single-family homes
South Medium Residential
(MDR)
Single-Family
Residential (R1-4) Multi-Family homes
East Neighborhood
Commercial (NC)
Neighborhood
Commercial (C1) Multi-Tenant Commercial
West Neighborhood
Commercial (NC)
Highway Services
(HS) Entertainment (GolfLand)

Site Improvements
Puff City is not proposing any site improvements at this time.

No exterior building wall signage is proposed at this time . Still, there is a condition of approval requiring approval of a sign permit under a separate application for any future sign.

Safety and Security
The Milpitas Police Department reviewed the Project and prescribed measures to ensure the safety and security of the overall site and its occupants, including video surveillance and filing emergency contact information with the Police Department. These measures have been included as conditions of approval (20 through 27) within the attached Resolution. Examples include:

1. Line of sight obstructions, including business signs, advertisements, or other markings, should be avoided on the exterior windows to maximize natural surveillance during the business’s closed hours.

2. Video/security cameras shall be required for the site, with coverage at all access points into the business. The interior video/security cameras shall record in high definition and cover any cash register, safe, or other device that stores currency, entrances/exits, and hallways or paths leading to a restroom . The video/security system shall hav e the capability to be downloaded. A copy of video/security footage shall be made available to law enforcement upon request for investigative purposes. It is recommended the employees of the business be appropriately trained on how to use the security su rveillance camera system so that footage can be reviewed and collected in a timely fashion by the Police department if needed.

Floor Plan and Operations
The applicant is not proposing any modifications to the existing floor plan at this time other than cosmetic changes to include display cases and a cash register (Figure 1). The tenant space was most recently occupied by an insurance office that had been in operation for approximately 30 years. No structural modifications are proposed as part of this project and no modifications are proposed to the building's exterior. Any new exterior modifications including signage would

Agenda Item IX-1: New Smoke Shop – March 13, 2024 Page 5 of 9 require additional Planning permits. Interior modifications may also trigger a requirement for a Building permit. No products will be consumed on-site. Consistent with Milpitas Municipal Code section V -215-1.20, the Applicant will not allow smoking within the enclosed building and a reasonable distance from all entrances, exits, and windows, but also throughout the site for products purchased from this business.

Figure 1:

Floor Plan

PROJECT ANALYSIS
General Plan, Midtown Specific Plan & Zoning Conformance General Plan
The General Plan land use designation for the subject property is Neighborhood Commercial (NC).

The subject property is currently zoned Neighborhood Commercial (C1).

The General Plan includes goals, objectives, and policies for commercial uses such as the proposed smoke shop business . Table 2 outlines the project's consistency with applicable General Plan Guiding Principles and Implementing Policies:

Table 2:

General Plan Consistency
General Plan Policy Consistency Finding
LU 6-4: Maintain viable neighborhood-serving
commercial uses throughout the City in order to
serve surrounding neighborhoods and minimize
vehicle miles traveled. Encourage a diverse mix
Consistent. The proposed smoke shop
will serve surrounding neighborhoods by
providing goods not typically found
nearby, which will help minimize vehicle
miles traveled. The proposed smoke shop

Agenda Item IX-1: New Smoke Shop – March 13, 2024 Page 6 of 9 General Plan Policy Consistency Finding
of commercial uses including retail, service,
office, entertainment, and assembly uses.
will be located in an existing shopping
center that includes a diverse mix of uses
including retail and restaurants.

LU 6-5: Promote reinvestment in strip
commercial and shopping centers and maintain,
revitalize, and redevelop aging and
underperforming centers.

Consistent. The proposed smoke shop
will reinvest in an existing shopping
center by occupying a previously vacant
tenant space.

Zoning Ordinance
The proposed use will occupy an existing tenant space within an existing multi-tenant commercial building. No changes to the exterior of the bui lding are proposed and therefore maintains compliance with the Neighborhood Commercial development standards for setbacks, height, floor area ratio, and parking . Table 3 demonstrates project consistency with the Neighborhood Commercial (C1) development standards:

Table 3:

Zoning Conformance
C1 Standard Existing Complies?
Front (South) 20’ ~110' Yes, no change
Side Yard
(East/West)
0'
15' when abutting
Residential
2' (west)
33’ (east) Yes, no change
Rear (North)
0'
15' when abutting
Residential
2' Yes, no change
Floor Area Ratio
(Max) 0.35 ~0.25 Yes, no change
Bldg Height (Max) 35’ or 3 stories ~15'
1 story Yes, no change
Landscaping None ~25 Yes, no change

Traffic, Parking, Access, and Circulation

Traffic
A traffic operations analysis report was not conducted for the Project because there are no anticipated significant increases in trip generation or parking demand. The proposed Project is

Agenda Item IX-1: New Smoke Shop – March 13, 2024 Page 7 of 9 consistent with the land uses permitted per the City of Milpitas General Plan. The number of daily trips (including a.m. and p.m. peak hour trips) is not expected to significantly impact the level of service (LOS) in the immediate vicinity.

Parking
A total of 45 parking spaces are available for all uses within the eight-tenant site. Five parking spaces are allocated to the proposed smoke shop . Table 4 shows the proposed smoke shop and adjacent uses within the existing shopping center and demonstrates the Project's compliance with the Zoning Ordinance parking standard per Section XI-10-53 Off-Street Parking Regulations.

Table 4:

Parking Summary
Uses Area
(sq. ft.) Parking Standard Total Parking Required
Smoke shop
Market
Gift shop
(Retail)
4,108 1 space per 200 sq.
ft.
4,180 sq. ft. /200 sq. ft. = ~21
spaces
Massage 619 2 spaces per
treatment room
1 treatment room
= 2 spaces
Dry Cleaners 1,320 1 space per 200 sq.
ft.
1,320 sq. ft. / 200 sq. ft. = 6.6
Total for office = ~7 spaces
Restaurants
2,726
(gross)

1 per 39 sq. ft. of
dining area
425 sq. ft./ 39 sq. ft. = ~11
spaces
Salon
(personal
services)
964 1 per 200 sq. ft. 964/200 = ~5 spaces
Total Parking Spaces required per Section XI-10-53 45
Existing parking spaces for the shopping center 45

Access and Circulation
The project site is at the corner of North Park Victoria Drive and Jacklin Road, near Interstate 680.

The Project utilizes two existing two-way driveways: one on North Park Victoria Drive and one on Jacklin R oad. A public sidewalk along both streets provide pedestrian access to the site.

Regular VTA bus service runs along Jacklin Rd. with two transit stops at the nearby Golfland, approximately 400 feet away.

Agenda Item IX-1: New Smoke Shop – March 13, 2024 Page 8 of 9

FINDINGS
A finding is a statement of fact relating to the information the Planning Commission has considered in making a decision . Findings shall identify the rationale behind the decision to take a certain action.

Conditional Use Permit (Section XI-10-57.04(F)(1))

1. The proposed use, at the proposed location will not be detrimental or injurious to property or improvements in the vicinity nor to the public health, safety, and general welfare.

The proposed head/smoke/tobacco use is consistent with this finding because the Project is in the existing commercial building and is permitted under the Z oning Ordinance with a Conditional Use Permit. The proposed retail business selling tobacco and tobacco related products provides retail options for the patrons. The proposal increases economic opportunity, and as conditioned, will not be detrimental to property or improvements in the vicinity nor to the public health, safety, and general welfare because the building exists and the retail sales will be conducted within the building. No consumption of the products will be made in the premises. As discussed above, the site meets all development standards and off-street parking requirements.

2. The proposed use is consistent with the Milpitas General Plan.

As described in Table 2, the Project is consistent with the Milpitas General Plan, which encourages activity within existing commercial centers. The proposed head/smoke/tobacco retailer will serve surrounding neighborhoods by providing goods not typically found nearby, which will help minimize vehicle miles traveled. In addition, the propose d retail sales will encourage economic pursuits by operating a retail business in an existing unoccupied commercial tenant space with Conditional Use Permit approval. The proposal will provide economic opportunities to the Milpitas residents and around the region by providing different retail options.

3. The proposed use is consistent with the Milpitas Zoning Ordinance.

The proposed head/smoke/tobacco use are a conditionally permitted use in the Neighborhood Commercial (C1) Zoning District and complies with the applicable development standards. As demonstrated in Table 3, the Project conforms to the development standards as set forth in Milpitas Municipal Code Sections XI -10-5.02 and XI-10-5.03. Table 4 demonstrates the Project's compliance with the Zoning Ordinance parking standard per Section XI -10-53 Off- Street Parking Regulations.

ENVIRONMENTAL REVIEW
This Project is categorically exempt from further environmental review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15301 (Existing Facilities) and; as a separate and independent basis, CEQA Guidelines Section 15183 (Projects Consistent with a Community Plan, General Plan, or Zoning). As proposed, the Project includes

Agenda Item IX-1: New Smoke Shop – March 13, 2024 Page 9 of 9 a conditionally permitted use within an existing commerical center in an urbanized area . The Project is also consistent with the Milpitas General Plan and Zoning Ordinance, and there are no circumstances present that would require a subsequent Environmental Impact Report (EIR) or Negative Declaration.

RECOMMENDATION
STAFF RECOMMENDS THAT the Planning Commission:

1. Open and close the public hearing;

2. Consider the exemptions in accordance with CEQA; and

3. Adopt Resolution No. 24-013 approving Conditional Use Permit No. UP23-0013 subject to the findings and attached Conditions of Approval.

ATTACHMENTS
A: Resolution No. 24-013
B: Project Plans

RESOLUTION NO. 24-013

A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF MILPITAS APPROVING CONDITIONAL USE PERMIT NO. UP23-0013 TO OPERATE A HEAD/ SMOKE/ TOBACCO SHOP, WITHIN 870 SQUARE FEET OF AN EXISTING 9,960

SQUARE-FOOT, ONE-STORY, MULTI-TENANT COMMERCIAL BUILDING LOCATED ON AN 0.9-ACRE SITE WITHIN THE NEIGHBORHOOD COMMERCIAL (C1) ZONING DISTRICT AT 1225 JACKLIN ROAD (APN 029-09-057) AND MAKING FINDINGS OF CEQA EXEMPTION.

WHEREAS, on November 13, 2023 , Kareem Al Salahi , the Applicant and business owner, submitted a Conditional Use Permit application (Permit No. UP23-0013) to allow a Head/ Smoke/ Tobacco shop (Puff City) to allow for the retail sales of tobacco products; and WHEREAS, the Planning D epartment completed an environmental assessment for the project in accordance with the California Environmental Quality Act (CEQA), and recommends that the Planning Commission determine this project is categorically exempt from environmental review under the Califo rnia Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15301 (Existing Facilities) and as a separate and independent basis, Section 15183 (Projects Consistent with a Community Plan, General Plan, or Zoning); and

WHEREAS, on March 13, 2 024, the Planning Commission held a duly noticed public hearing on the subject application, and considered the evidence presented by City staff, the applicant, and other interested parties.

NOW THEREFORE , the Planning Commission of the City of Milpitas he reby finds, determines and resolves as follows:

SECTION 1: Recitals

The Planning Commission has considered the full record before it, which may include but is not limited to such things as the staff report, testimony by staff and the public, and other materials and evidence submitted or provided to it. Furthermore, the recitals set forth above are found to be true and correct and are incorporated herein by reference.

SECTION 2: California Environmental Quality Act
This project is categorically exempt from environmental review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15301 (Existing Facilities) and; as a separate and independent basis, Section 15183 (Projects Consisten t with a Community Plan, General Plan, or Zoning). As proposed, the Conditional Use Permit will allow for the retail sales of tobacco products within an existing commercial shopping center in an urbanized area and will not have a negative impact on the sur rounding area. The project is also consistent with the Milpitas General Plan, Zoning Ordinance, and there are no circumstances present that would require a subsequent Environmental Impact Report (EIR) or Negative Declaration.

Resolution No. 24-013 Page 2
SECTION 3: Conditional Use Permit (Section XI-10-57.04(F)(1)) The Planning Commission makes the following findings based on the evidence in the public record in support of Conditional Use Permit No. UP22-0007:
a. The proposed use, at the proposed location will not be detrimental or injurious to property or improvements in the vicinity nor to the public health, safety, and general welfare.

The proposed head/smoke/tobacco use is consistent with this finding because the Project is in the existing commercial building and is permitted under the Zoning Ordinance with a Conditional Use Permit. The proposed retail business selling tobacco and tobacco related products provides retail options for the patrons. The proposal increases economic opportunity, and as conditioned, will not be detrimental to property or improvements in the vicinity nor to the public health, safety, and general welfare because the building exists and the retail sales will be conducted within the building. No consumption of the products will be made in the premises. As discussed above, the site meets all development standards and off-street parking requirements.
b. The proposed use is consistent with the Milpitas General Plan.

As described in Table 1, the Project is consistent with the Milpitas General Plan, which encourages activity within existing commercial centers. The proposed head/smoke/tobacco retailer will serve surrounding neighborhoods by providing goods not typically found nearby, which will help minimize vehicle miles traveled. In addition, the p roposed retail sales will encourage economic pursuits by operating a retail business in an existing unoccupied commercial tenant space with Conditional Use Permit approval. The proposal will provide economic opportunities to the Milpitas residents and around the region by providing different retail options.

Table 1: General Plan Consistency
General Plan Policy Consistency Finding
LU 6-4: Maintain viable neighborhood-serving
commercial uses throughout the City in order to serve
surrounding neighborhoods and minimize vehicle
miles traveled. Encourage a diverse mix of
commercial uses including retail, service, office,
entertainment, and assembly uses.

Consistent. The proposed smoke shop
will serve surrounding neighborhoods by
providing goods not typically found
nearby, which will help minimize
vehicle miles traveled. The proposed
smoke shop will be located in an existing
shopping center that includes a diverse
mix of uses including retail and
restaurants.

LU 6-5: Promote reinvestment in strip commercial
and shopping centers and maintain, revitalize, and
redevelop aging and underperforming centers.

Consistent. The proposed smoke shop
will reinvest in an existing shopping
center by occupying a previously vacant
tenant space.

Resolution No. 24-013 Page 3
c. The proposed use is consistent with the Milpitas Zoning Ordinance.

The proposed head/smoke/tobacco use are a conditionally permitted use in the Neighborhood Commercial (C1) Zoning District and complies with the applicable development standards. As demonstrated in Table 2, the Project conforms to the development standards as set forth in Milpitas Municipal Code Sections XI -10-5.02 and XI-10-5.03. Table 3 demonstrates the Project's compliance with the Zoning Ordinance parking standard per Section XI -10-53 Off- Street Parking Regulations.

Table 2: Zoning Conformance

C1 Standard Existing Complies?
Front (South) 20’ ~110' Yes, no change
Side Yard
(East/West)
0'
15' when abutting
Residential
2' (west)
33’ (east) Yes, no change
Rear (North)
0'
15' when abutting
Residential
2' Yes, no change
Floor Area Ratio
(Max) 0.35 ~0.25 Yes, no change
Bldg Height (Max) 35’ or 3 stories ~15'
1 story Yes, no change
Landscaping None ~25 Yes, no change

Table 3: Parking Summary
Uses Area
(sq. ft.) Parking Standard Total Parking Required
Smoke shop
Market
Gift shop
(Retail)
4,108 1 space per 200 sq.
ft.
4,180 sq. ft. /200 sq. ft. = ~21
spaces
Massage 619 2 spaces per
treatment room
1 treatment room
= ~2 spaces
Dry Cleaners 1,320 1 space per 200 sq.
ft.
1,320 sq. ft. / 200 sq. ft. = 6.6
Total for office = ~7 spaces

Resolution No. 24-013 Page 4
Restaurants
2,726
(gross)

1 per 39 sq. ft. of
dining area
425 sq. ft./ 39 sq. ft. = ~11
spaces
Salon
(personal
services)
964 1 per 200 sq. ft. 964/200 = ~5 spaces
Total Parking Spaces required per Section XI-10-53 45
Existing parking spaces for the shopping center 45

SECTION 5: The Planning Commission of the City of Milpitas hereby adopts Resolution No. 24-013 approving Conditional Use Permit Amendment No. UP23-0013 based on the above Findings and subject to the Conditions of Approval attached hereto as Exhibit 1, incorporated herein.

PASSED AND ADOPTED at a regular meeting of the Planning Commission of the City of Milpitas on March 13, 2024

_____________________________________
Chair

TO WIT:

I HEREBY CERTIFY that the following resolution was duly adopted at a regular meeting of the Planning Commission of the City of Milpitas on March 13, 2024, and carried by the following roll call vote:

COMMISSIONER AYES NOES ABSENT ABSTAIN
Mercedes Albana
Dipak Awasthi
Michael Caulkins
Chia Ling Kong
Alexander Galang
Sonia Medina-Ashby
Parveen Gupta

Resolution No. 24-013 Page 5
EXHIBIT 1

CONDITIONAL USE PERMIT NO. UP23-0013
1225 JACKLIN ROAD (APN 029-09-057)

The City of Milpitas Planning Commission approves this Conditional Use Permit No. UP23- 0013 in accordance with Section XI-10-57.04 of the Milpitas Municipal Code, subject to and conditioned upon all applicable State and local laws and regulations and the Conditions of Approval outlined below. This permit is to allow the conditional use of a new off-sale only head/smoke/tobacco shop within 870 square feet of an existing 9,960 square-foot, one-story, multi-tenant commercial building located on a 0.9-acre site within the Neighborhood Commercial (C1) Zoning District at 1225 Jacklin Road (APN 029-09-057), subject to all other necessary reviews, approvals, permits, licenses, studies, and inspections necessary for such use.

This permit does not permit the operation or use of these premises for a smokers’ lounge or other on-site commercial tobacco or smoking use.

APPROVED SUBJECT TO THE FOLLOWING CONDITIONS OF APPROVAL:

General Conditions

1. General Com pliance. The applicant, including all successors in interest (collectively “Permittee”) shall comply with each and every condition set forth in this Permit. Conditional Use Permit Amendment No. UP23-0013 (“Permit”) shall have no force or effect and no building permit shall be issued unless and until all things required by the below -enumerated precedent conditions have been performed or caused to be performed and this Resolution has been recorded by the Permittee with the Santa Clara County’s Recorder Office and a copy shall be provided to the Planning Department. (P)

2. The Permittee shall develop the approved project in conformance with the approved plans approved by the Planning Commission on March 13, 2024, in accordance with these Conditions of Approval. (P)

3. Modifications to Project. Any deviation from the approved site plan, floor plans, or other approved submittal shall require that, prior to the issuance of building permits, the Permittee submit modified plans and any other applicable materials as required by the City for review and obtain the approval of the Planning Director or Designee. If the Planning Director or designee determines that the deviation is significant, the Permittee shall be required to apply for review and obtain approval of the Planning Commission, in accordan ce with the Zoning Ordinance. (P)

4. Effective Date. Unless there is a timely appeal filed in accordance with the Milpitas Zoning Ordinance, the date of approval of this Permit is the date on which the decision -making body approved this Permit.

Resolution No. 24-013 Page 6

5. Conditions of Approval. As part of the issuance of building permits, the Permittee shall include within the first four pages of the working drawings for a plan check, a list of all conditions of approval imposed by the final approval of the project. (P)

6. Written Response to Conditions . The Permittee shall provide a written response to the Conditions of Approval indicating how each condition has been addressed with the building permit application submittal. (ALL)

7. Permit Expiration . Pursuant to Section XI -10-64.06 of the Milpitas Municipal Code, this Permit shall become null and void if the activity permitted by this Permit is not commenced within two (2) years from the date of approval, or for a project submitted with a tentative map, within the time limits of the approved tentative map. Pursuant to Section XI -10-64.06(B) of the Milpitas Municipal Code, an activity permitted by this Permit shall be deemed to have commenced when the project:
a. Completes a foundation associated with the project; or b. Dedicates any land or easement as required from the zoning action; or c. Complies with all legal requirements necessary to commence the use, or obtains an occupancy permit, whichever is sooner.

8. Time Extension. Pursuant to Section XI-10-64.07 of the Milpitas Municipal Code, unless otherwise provided by State law, Permittee shall have the right to request a one-time extension of the Permit if the request is made in writing to the Planning Department prior to the expiration date of the approval. (P)

9. Project Job Account . If at the time of application for building permit there is a project job account balance due to the City for recovery of review fees, the review of permits will not be initiated until the balance is paid in full. (E)

10. Compliance with Laws. The constru ction, use, and all related activity authorized under this Permit shall comply with all applicable local, state, and federal laws, rules, regulations, guidelines, requirements, and policies. (CA/P)

11. Acceptance of Permit. Should Permittee fail to file a timely appeal within twelve (12) calendar days of the date of approval of this Permit, inaction by Permittee shall be deemed to constitute each of the following:
a. Acceptance of this Permit by Permittee; and
b. Agreement by the Permittee to be bound by, comply with, and to do all things required of or by Permittee pursuant to all of the terms, obligations, and conditions of this Permit.

12. Indemnification. To the fullest extent permitted by law, Permittee shall indemnify, defend with counsel of the City’s choosing, and hold harmless City, its City Council, its boards and commissions, officials, officers, employees, and agents from and against any and all claims, demands, obligations, damages, actions, causes of action, suits, losses, judgments, fines, penalties, liabilities, costs and expenses (including without limitation, attorney's fees, disbursements and court costs) of every kind and nature whatso ever which may arise from or in any manner relate (directly or indirectly) to (i) City's approval of the project, including but not limited to, the approval

Resolution No. 24-013 Page 7
of the discretionary permits, maps under the Subdivision Map Act, and/or the City's related determinations or actions under the California Environmental Quality Act, and (ii) Permittee’s construction, operation, use, or related activity under this Permit. This indemnification shall include, but not be limited to, damages awarded against the City, if an y, costs of suit, attorneys' fees, and other expenses incurred in connection with such claim, action, causes of action, suit or proceeding whether incurred by applicant, City, and/or the parties initiating or bringing such proceeding. Permittee shall indemnify the City for all of City's costs, attorneys' fees, and damages which City incurs in enforcing the indemnification provisions set forth in this condition. Permittee shall pay to the City upon demand or, as applicable, to counsel of City’s choosing, a ny amount owed pursuant to the indemnification requirements prescribed in this condition. Permittee shall enter into an indemnification agreement with the City that incorporates the provisions of this condition prior to commencing the use authorized in this Permit. (CA)

13. Revocation, Suspension, Modification. This Permit may be suspended, revoked, or modified in accordance with Section XI-10-63.06 of the Milpitas Municipal Code.

14. Severability. If any term, provision, or condition of this Permit is held to be illegal or unenforceable by the Court, such term, provision, or condition shall be severed and shall be inoperative, and the remainder of this Permit shall remain operative, binding, and fully enforceable.

15. Previous Approvals. Permittee shall abide by and continue to comply with all previous City approvals, permits, or requirements relating to the subject property, unless explicitly superseded or revised by this Permit.

16. Fire Department. The project/development shall comply with the requirements of the Fire Department and the California Fire Code, as demonstrated in the Fire Department's Memorandum, dated November 27, 2023, as may be amended by the City of Milpitas.

Changes to the site plan and/or internal circulation shall be reviewed and approved by the Fire Department. (F)

17. Building Department. The project/development shall comply with the requirements of the Building Department and the Building Code, as demonstrated in the Building Department's Memorandum, dated November 14, 2023, as may be amended by the City of Milpitas. (B)

18. Smoking and On-site Use of Products Generally Prohibited. The Permittee shall comply with and ensure compliance with all state, local, federal, and other laws and regulations prohibiting or regulating smoking on the premises, including California Labor Code section 6404.5, California Health and Safety Code sections 104495 and 114371, California Government Code sections 7596-7598, and Title V, Chapter 215 of the Milpitas Municipal Code. In addition, the Permitee shall not cause, permit, aid, abet, suffer, conceal, or allow the consumption, smoking, or use of any goods or other products, including samples, obtained from the business on the premises or anywhere in the surrounding shopping plaza, including the parking lot, walkways, and common areas. Nor shall the Permittee cause, permit, aid, abet, suffer, conceal, or allow customers to consume, smoke, or use any tobacco or tobacco products on the premises or anywhere in the surrounding shopping plaza, including the

Resolution No. 24-013 Page 8
parking lot, walkways, and common areas. Any violation of this condition shall be an independent and sufficient basis for revocation, suspension, or modification of this Permit.

19. Laws and Licenses for Tobacco Retail. Obey all laws and regulations, including the Cigarette and Tobacco Products Licensing Act, and obtain all necessary permits, licenses, certifications, and approvals necessary for retail sale of tobacco and tobacco products, including maintaining in good standing a Cigarette and Tobacco Products Retailer’s License with the California Department of Tax and Fee Administration. Any violation of this condition shall be an independent and sufficient basis for revocation, suspension, or modification of this Permit.

Police Department Conditions

20. Parking. Parking is not affected by the proposed permit , and the current parking lot is of sufficient capacity to accommodate additionally parked vehicles. No changes are recommended for the parking lot. (PD)

21. The parking lot should continue allowing accessible circulation for police patrols (vehicles, foot, and bicycles) to prevent and reduce the likelihood of criminal activity occurring in the area. (PD)

22. Visibility. Lighting shall be of sufficient wattage to adequately illuminate and make visible the presence of any person in or about the outside premises during hours of darkness. (PD)

23. Line of sight obstructions, including business signs, advertisements, or other markings, should be avoided on the exterior windows to maximize natural surveillance during the business’s closed hours. (PD)

24. Security. Video/security cameras shall be required for the site , with coverage at all access points into the business. The interior video/security cameras shall record in high definition and cover any cash register, safe, or other device that stores currency, entrances/exits, and hallways or paths leading to a restro om. The video/security system shall have the capability to be downloaded. A copy of video/security footage shall be made available to law enforcement upon request for investigative purposes. It is recommended the employees of the business be appropriately trained on how to use the security surveillance camera system so that footage can be reviewed and collected in a timely fashion by the Police department if needed. (PD)

25. The cashier area, safe, or other devices that stores currency should be away from t he front doors, windows of the business, and not in plain view to help prevent burglaries when the company is closed. If these areas cannot be moved, window treatments such as shades or blinds preventing the site from being visible from the outside should be considered. (PD)

26. Accessibility. An up-to-date map of the interior of the building should be provided to the Police Department. The map should minimally identify the locations of each entry/exit point, storage area, maintenance area, etc.

Resolution No. 24-013 Page 9

27. Miscellaneous. Applicant shall file an emergency notification form with the Police Department so law enforcement can contact the applicant in case of any significant accident, emergency, or unforeseen circumstance. (PD)

Building Department Conditions

28. The Project shall comply with the requirements of the Building Safety and Housing Department and the California Code of Regulations Title 24 and the Milpitas Municipal Code as adopted by the City. Building permits shall be submitted to and approved by the Building Safety and Housing Department prior to start of construction. All California Code of Regulations Title 24 and Milpitas Municipal Code requirements applicable at the time of building permit application must be met in advance of any building permit approvals or related construction. Changes to the site plan and/or building plan require review and approval by the Building Safety and Housing Department.

Fire Department Conditions

29. Please do not consider this an approval from Fire Department. Additional requirements may be made during the construction permit process. These notes are a general list of the applicable code requirements, and it is provided to assist with the construction permit process.

30. No changes shall be made in th e use or occupancy of any structure that would place the structure in a different division of the same group or occupancy or in a different group of occupancies, unless such structure is made to comply with the requirements of the current code(s). California Fire Code (CFC) Section 102.3

31. New and existing buildings shall have approved address numbers, building numbers or approved building identification placed in a position that is plainly legible and visible from the street or road fronting the property. These numbers shall contract with their background.

Address numbers shall be Arabic numerals or alphabet letters and shall be consistent with Milpitas standardized addressing guidelines. CFC Section 505.1

32. Assembly Use. This facility/business/site is not approved for assembly use as defined by the CA Building Code (50 or more occupants).

33. Maximum Occupancy. The maximum number of occupants within this business/facility shall be limited to the permitted number by the Planning Department, but not to exceed the permitted occupancy load under the CA Building and Fire Codes.

34. Portable fire extinguishers for general area shall be installed in occupancies and locations as set forth in the CFC Section 906 and as required by the Fire Code Official.

35. Egress based on occupant load and common path of egress travel distance. Two exits or exit access doorways from any space shall be provided where the design occupant load or the common path of egress exceeds the values listed in 2022 California Fire Code Table 1006.2.1.

The cumulative occupant load from adjacent rooms, areas or spaces shall be determined in accordance with section 1004.2.

Resolution No. 24-013 Page 10

36. Exit doors shall swing in the direction of exit travel when serving an occupant load of 50 or more. CFC Section 1010.1.2.1

37. Egress doors shall be readily openable from the egress side without the use of a key or special knowledge or effort. CFC Section 1010.1.9

38. Manually operated flush bolts or surface bolts are not permitted. CFC Section 1010.1.9.5

39. Exits and exit access doors shall be marked by an approved exit sign readily visible from any direction of egress travel. Exit sign placement shall be such that no point in a corridor is more than 100 feet or the listed viewing distance for the sign, whichever is less, from the neare st visible sign. Additional signs may be required if clear path of exit access is not readily defined.

CFC Section 1013.1

40. Complete plans and specifications for all aspects of fire-protection systems shall be submitted to the Fire Department for review and approval prior to system installation or alteration. CFC Section 105.4

41. Means of egress shall be provided in conformance with the CA Building Code Chapter 10.

42. The Milpitas Fire Department shall approve new installation and/or modifications to existing fire protection, alarm or monitoring system(s). A separate submitted is required to the Milpitas Fire Department, for review and approval, prior to the commencement of any work. CFC Section 901.2

(P) = Planning (PD) = Police Department (B) = Building (E) = Engineering (F) = Fire Prevention (CA) = City Attorney