June 18, 2024 Milpitas City Council Agenda Page 1
REGULAR MEETING OF THE MILPITAS
CITY COUNCIL AND HOUSING AUTHORITY
AGENDA
TUESDAY, JUNE 18, 2024
CITY COUNCIL CHAMBER, 455 E. CALAVERAS BLVD, MILPITAS, CA 5:30 PM (CLOSED SESSION)
7:00 PM (PUBLIC BUSINESS)
For assistance in the following languages, you may call:
Đối với Việt Nam, gọi 408-586-2400
Para sa Tagalog, tumawag sa 408-586-3051
Para español, llame 408-586-3072
* To access written translation during the meeting, scan the QR Code.
The City Council meeting is held in the City Council Chamber at City Hall, 455 E. Calaveras Blvd., Milpitas and via teleconference/Zoom webinar.
You may watch the Council meeting without providing public comment by accessing it via links here.
Meeting shall be livestreamed - Go to:
Facebook: https://www.facebook.com/CityofMilpitas/
YouTube: https://www.milpitas.gov/youtube
Web Streaming: https://www.milpitas.gov/webstreaming
PUBLIC COMMENT INSTRUCTIONS
Oral public comments may only be provided live during the City Council meeting in person, unless the City Council approves remote public comment. All comments provided shall be limited to three minutes or less as determined by the Mayor. All members of the public will be limited to one comment per agenda item, and one comment for non-agenda items. Members of the public may submit written comments by email to [email protected] The meeting will be streamed via Zoom for viewing purposes only unless the City Council approves remote public comment. To watch via Zoom, please register at:
https://ci-milpitas-ca-gov.zoom.us/webinar/register/WN_OnIA8_x-QSKWq6Blpkxk_Q NOTE: If a member of the public wishes to share any presentation materials for Council consideration, they must be submitted to the Clerk’s Office by email to [email protected] by 12:00 p.m. on the day of the meeting. No presentations will be accepted in person in the Council Chambers.
MILPITAS CITY COUNCIL CODE OF CONDUCT
• Be respectful and courteous (words, tone, and body language). • Model civility.
• Avoid surprises.
• Praise publicly and criticize privately.
• Focus on the issue, not the person.
• Refrain from using electronic devices while on the Council dais. • Disclose conflicts of interest and affiliations related to agenda items. • Separate governing from campaigning.
• The Council speaks with one voice after making policy on issues. • Respect the line between policy and administration.
• Council will hold one another accountable to comply with this Code of Conduct.
June 18, 2024 Milpitas City Council Agenda Page 2
CALL MEETING TO ORDER by Mayor and ROLL CALL by City Clerk (7:00 PM)
ADJOURN TO CLOSED SESSION
(a) CONFERENCE WITH LABOR NEGOTIATORS
Pursuant to Government Code Section 54957.6
Agency designated representative: Rick Bolanos, LCW
Bargaining unit: LIUNA, UPEC (Pro-Tech, MEA, MidCon), IAFF, MPOA (b) PUBLIC EMPLOYEE PERFORMANCE EVALUATION
Pursuant to California Government Code Section 54957
Position: City Attorney
CLOSED SESSION ANNOUNCEMENT:
Report on action taken in Closed Session, if required per Government Code Section 54957.1, including the vote or abstention of each member present.
PLEDGE OF ALLEGIANCE
INVOCATION (Councilmember Lien)
PRESENTATIONS (7:05 PM)
● Parks and Recreation Month (Proclamation)
PUBLIC FORUM (7:10 PM)
Members of the public are invited to speak on any item that does not appear on today’s agenda. Comments will be limited to three minutes or less at the Mayor’s discretion. When called to speak, you are encouraged to state your name for the record.
As an item not listed on the agenda, no action can be taken, however the City Council may instruct the City Manager to place the item on a future meeting agenda.
ANNOUNCEMENT OF CONFLICT OF INTEREST AND CAMPAIGN CONTRIBUTIONS
READING OF THE CITY COUNCIL CODE OF CONDUCT
APPROVAL OF AGENDA
CONSENT CALENDAR (7:15 PM)
Consent calendar items are considered to be routine and will be considered for adoption by one motion. There will be no separate discussion of these items unless a City Councilmember, member of the audience or staff requests the Council to remove an item from (or be added to) the consent calendar. Any person desiring to speak on any item on the consent calendar should ask to have that item removed from the consent calendar.
C1. Receive City Council Calendar of Meetings for June, July and August 2024 (Staff Contact:
Suzanne Guzzetta, City Clerk, 408-586-3001)
Recommendation: Receive City Council Calendar of Meetings for June, July, and August 2024.
C2. Approve City Council City Council Meeting Minutes of May 21, June 4, and June 11, 2024 (Staff Contact: Suzanne Guzzetta, City Clerk, 408-586-3001)
Recommendation: Approve City Council Meeting minutes of May 21, June 4, and June 11, 2024.
June 18, 2024 Milpitas City Council Agenda Page 3
C3. Receive the Preview List of Anticipated Items for the Next Regular City Council Meeting (Staff Contact: Suzanne Guzzetta, City Clerk, 408-586-3001)
Recommendation: Receive the list of anticipated agenda items for the next regular City Council meeting.
C4. Receive and Review the List of Agenda Items Requested by City Councilmembers (Staff Contact: Suzanne Guzzetta, City Clerk, 408-586-3001)
Recommendation: Review the list of items that have been requested by City Councilmembers and provide direction to staff as necessary. No substantive discussion about any specific item shall occur and the City Council shall hold all debate about the item until it is scheduled as a full agenda item.
C5. Consider the Recommendation from Mayor Montano for Appointments to City Commissions (Contact: Mayor Montano, 408-586-3024)
Recommendation: Receive the recommendation from Mayor Montano and approve appointments to City Commissions.
C6. Adopt a Resolution Delegating Authority to the City Manager or Designee to Approve and Execute Project-Related Documents and Urgent Administrative Items During the City Council Summer Recess (Staff Contact: Matt Cano, Assistant City Manager, 408-586-3012) Recommendation: Adopt a resolution delegating authority to the City Manager, or their designee, to approve and execute project-related documents, including contract documents, and urgent administrative items during the City Council and City of Milpitas Housing Authority summer recess from the last City Council meeting held in June through August 13, 2024.
C7. Approve a Community Investment Fund Grant for Milpitas Unified School District Adult Education for Workforce Development and Educational Services (Staff Contact: Alex Andrade, Director of Economic Development, 408-586-3046; Margaret Tamisiea, Senior Special Projects Associate, 408-586-3047)
Recommendation: Approve a Community Investment Fund grant that provides workforce development and educational services in the amount of $29,000 for Milpitas Unified School District Adult Education to support the early childhood education paraprofessional training program.
C8. Approve an Amendment to the Agreement with Housekeys to Execute a One-Year Extension for Administration of the Below Market Rate Homeownership Program (Staff Contact: Alex Andrade, Economic Development Director, 408-586-3046; and Robert Musallam, Housing and Neighborhood Services Administrator, 408-586- 3275)
Recommendation: Accept and approve a budget appropriation of $150,000 from the Housing Authority Fund and authorize the City Manager or designee to execute an amendment to the agreement with Housekeys exercising a one-year contract option for administration of the Below Market Rate Homeownership Program.
C9. Approve an Agreement with WeHOPE for Homeless Outreach, Assessment, and Case Management Services (Staff Contact: Alex Andrade, Economic Development Director 408-586- 3046; and Robert Musallam, Housing Division Manager 408-586-3275) Recommendation: 1) Approve a one-year professional services agreement with WeHOPE in the amount of $199,933 for Homeless Outreach, Assessment, and Case Management Services; (2) authorize the appropriation of $6,597.74 from the Housing Authority Fund; and (3) authorize the City Manager, and/or designee, to execute the contract with WeHOPE.
June 18, 2024 Milpitas City Council Agenda Page 4
C10. Approve an Amendment to the Professional Services Agreement with Ascent Environmental for Consultant Services Related to Preparation of the Gateway-Main St. Specific Plan (Staff Contact:
Jay Lee, Planning Director, 408-586-3077)
Recommendation: (1) Approve an amendment to the Professional Services Agreement with Ascent Environmental for consultant services related to preparation of the Gateway-Main St. Specific Plan, extending the contract timeline for professional services without incurring any additional costs; and (2) Authorize the City Manager to execute the amended agreement.
C11. Waive the Second Reading and Adopt Ordinance No. 38.855 Amending the Zoning Ordinance (Title XI, Chapter 10 of the Milpitas Municipal Code) and the Zoning Map to create the new Business Park Research and Development Zone and Metro Area Zones (Staff Contact: Jay Lee, Planning Director, 408-586-3077)
Recommendation: (1) Determine that the EIR Addendum adequately analyzes the potential environmental impacts associated with the proposed Zoning Amendments and is in compliance pursuant to CEQA Guidelines §15162 and §15164; and (2) Move to waive the second reading and adopt Ordinance No. 38.855 approving Zoning Text and Zoning Map Amendment No. ZA24-0002 to create the new Business Park Research and Development Zone and Metro Area Zones.
C12. Approve an Agreement with Rexel for Variable Frequency Drive Preventative Maintenance Services (Statt Contact: Christian Di Renzo, Public Works Director, 408-586-2602) Recommendation: Approve and authorize the City Manager to execute a Maintenance Services Agreement with Rexel for variable frequency drive preventative maintenance services in the amount of $252,263.59 for a five-year period, subject to the annual appropriation of funds.
C13. Approve the Santa Clara Countywide Food Recovery Program Memorandum of Understanding (Staff Contact: Christian Di Renzo, Public Works Director, 408-586-2602; and Elaine Marshall, Deputy Public Works Director, 408-586-2603)
Recommendation: Authorize the City Manager to sign a Memorandum of Understanding between the Santa Clara County Recycling and Waste Reduction Technical Advisory Committee member jurisdictions establishing ongoing management and operation of the edible food recovery program to comply with the requirements of Senate Bill 1383 (California’s Short-Lived Climate Pollutant Reduction Strategy).
C14. Approve and Authorize the City Manager to Execute an Amended Stormwater Management Facilities Operation and Maintenance Agreement for Toll West Coast, LLC for the Parkside Project at 1980 and 1992 Tarob Court and 551 Lundy Place (Staff Contact: Christian Di Renzo, Public Works Director, 408-586-2602; and Michael Silveira, City Engineer, 408-586-3303) Recommendation: Approve and authorize the City Manager to execute an amendment to the Stormwater Management Facilities Operation and Maintenance Agreement for Toll West Coast, LLC for the Parkside Project at 1980 and 1992 Tarob Court and 551 Lundy Place.
C15. Adopt a Resolution to Approve Project Conceptual Design and Authorize a Cooperative Purchase Agreement with Williams Scotsman, Inc., through a Cooperative Procurement Contract Solicited by Region 4 Educational Service Center, for Fire Station No.1 Modular Building, Project No. 3465 (Staff Contact: Christian Di Renzo, Public Works Director, 408-586- 2602; and Michael Silveira, City Engineer, 408-586-3303) Recommendation: Adopt a resolution to (1) approve project conceptual design; (2) authorize the City Manager to execute a cooperative purchase agreement with Williams Scotsman, Inc., through a
June 18, 2024 Milpitas City Council Agenda Page 5
cooperative procurement contract solicited by Region 4 Educational Service Center, in an amount not- to-exceed $818,894; and (3) authorize the Public Works Director to negotiate and execute contract change order(s) in an aggregate amount not to exceed $100,000 for Fire Station No.1 Modular Building, Project No. 3465.
C16. Approve the Final Map, Tract No. 10622, and Approve a Subdivision Improvement Agreement between the City of Milpitas and Pulte Home Company, LLC for a Residential Project at 1355 California Circle (Staff Contact: Christian Di Renzo, Public Works Director, 408-586-2602; and Michael Silveira, City Engineer, 408-586-3303)
Recommendation: (1) Approve the Final Map, Tract No. 10622, including all offers of dedications as stated and depicted on the final map upon completion and acceptance of improvements; and (2) Approve and authorize the City Manager to execute the Subdivision Improvement Agreement between the City of Milpitas and Pulte Home Company, LLC, for a Residential Project at 1355 California Circle.
C17. Consider Fee Waiver Requests from Show Up and Love and SHEKonnect (Staff Contact: Renee Lorentzen, Recreation and Community Services Director, 408-586-3409) Recommendation: (1) Approve a fee waiver of $945 for the Show Up and Love 2nd Annual BBQ Cookoff for Love on July 14, 2024; and (2) Approve a fee waiver of $282 for the SHEKonnect Teen Girls Living Skills Workshop.
C18. Adopt Resolutions of the Milpitas Housing Authority and City Council of the City of Milpitas Authorizing a Subordination Agreement for the 355 Sango Court Permanent Loan Conversion (Staff Contact: Robert Musallam, Housing and Neighborhood Services Administrator, 408-586- 3275)
Recommendation: (1) Adopt a resolution of the Milpitas Housing Authority authorizing a Subordination Agreement for the 355 Sango Court Permanent Loan Conversion; and (2) Adopt a resolution of the City Council of the City of Milpitas authorizing a Subordination Agreement for the 355 Sango Court Permanent Loan Conversion.
PUBLIC HEARINGS (7:30 PM)
Members of the public may be allotted up to three (3) minutes or less at the Mayor’s discretion, to comment on any public hearing item. Applicants/Appellants and their representatives may be allotted up to a total of ten (10) minutes for opening statements and up to a total of five (5) minutes maximum for closing statements. Items requested/recommended for continuance are subject to Council’s consent at the meeting.
19. Conduct a Public Hearing and Adopt a Resolution on the 2024 Weed Abatement Assessments (Staff Contact: Arthur Belton, Deputy Fire Chief / Fire Marshal, 408-586-3384) Recommendation: Conduct a public hearing and adopt a resolution confirming the 2024 Weed Abatement Assessment Report and the Assessment List to be entered into the tax assessment rolls.
20. Conduct a Public Hearing to Approve the Allocations for the FY2024-25 Community Development Block Grant, and the Corresponding Annual Action Plan (Staff Contact: Alex Andrade, Economic Development Director, 408-586-3046; and Robert Musallam, Housing Division Manager, 408-586-3275)
Recommendation: (1) Conduct a public hearing; (2) Adopt the FY2024-25 Annual Action Plan with recommended allocation amounts; (3) Authorize the City Manager, or designee, to make any necessary changes to the approved FY2024-25 Annual Action Plan as needed to comply with CDBG submission guidelines; and (4) Authorize the City Manager, or designee, to execute CDBG agreements with the approved subrecipients, and amend the CDBG agreements as needed to comply with CDBG guidelines.
June 18, 2024 Milpitas City Council Agenda Page 6
21. Adopt a Resolution Approving the Fiscal Year 2024-25 User and Regulatory Fee Schedule (Staff Contact: Luz Cofresí-Howe, Finance Director, 408-586-3111) Recommendation: Conduct a public hearing and adopt a resolution approving the Fiscal Year 2024-25 User and Regulatory Fee Schedule.
ANNOUNCEMENTS AND FUTURE AGENDA ITEMS (9:30 PM)
Members of the City Council or City Manager may make brief announcements at this time. Members of the City Council may also suggest future agenda items. For future agenda items, the City Council shall not debate the topic or engage in discussion but shall simply state a “yes” or “no” as whether to move the item forward. If a majority of the City Council agrees to move the item forward, the City Manager shall place the item on a future agenda.
ADJOURNMENT (9:35 PM)
KNOW YOUR RIGHTS UNDER THE OPEN GOVERNMENT ORDINANCE
Government’s duty is to serve the public, reaching its decisions in full view of the public. Commissions and other City agencies exist to conduct the people’s business. This ordinance assures that deliberations are conducted before the people and City operations are open to the people’s review. For more information on your rights under the Open Government Ordinance or to report a violation, contact the City Attorney’s office at Milpitas City Hall, 455 E. Calaveras Blvd., Milpitas, CA 95035 e-mail:[email protected] / Phone: 408-586-3040 The Open Government Ordinance is codified in the Milpitas Municipal Code as Title I Chapter 310 and is available online at the City’s website www.milpitas.gov by selecting the Milpitas Municipal Code link.
Materials related to an item on this agenda submitted to the City Council after initial distribution of the agenda packet are available for public inspection at the City Clerk’s office at Milpitas City Hall, 3rd floor 455 E. Calaveras Blvd., Milpitas and on City website. City Council agendas and related materials can be viewed online: www.milpitas.gov/government/council/agenda_minutes.asp (select meeting date)
APPLY TO SERVE ON A CITY COMMISSION
Commission application forms are available online at www.milpitas.gov or at Milpitas City Hall.
Contact the City Clerk’s Office at 408-586-3001 for more information.
If you need assistance, per the Americans with Disabilities Act, for any City of Milpitas public meeting, please call the City Clerk at 408-586-3001 or send an e-mail to [email protected] prior to the meeting. You may request a larger font agenda.
Milpitas City Council Calendar
June 2024
Sunday Monday Tuesday Wednesday Thursday Friday Saturday 1 2 3
7:00 PM-Parks, Recreation & Cultural
Resources Commission (HL)
7:00 PM-Special Arts Commission
(EC) [Senior Center, Room 140/141]
4 6:00 PM-Closed Session
7:00 PM-City Council
5 1:00 PM-Santa Clara VTA Monthly
Briefing - Northeast Group (CM)
5:30 PM-Veterans Commission (CM)
7:00 PM-Community Advisory
Commission (EC)
6 12:00 PM-SCC Library JPA Board of
Directors (CM)
5:30 PM-Milpitas Chamber of
Commerce Board (GB)
5:30 PM-Santa Clara VTA Board of
Directors (CM)
7 5:00 PM-Milpitas Pride Flag-Raising
Ceremony (Cesar Chavez Plaza
8 9 10
4:30 PM-Economic Development and
Trade Commission (CM)
11 5:30 PM-Special City Council
Meeting- Community Heroes
Recognition
12 4:00 PM-Transportation
Subcommittee (CM/EC)
7:00 PM-Silicon Valley Clean Energy
Board of Directors (EC) (Cupertino)
13 4:00 PM-Treatment Plant Advisory
Committee (CM) (San Jose)
5:30 PM-CASCC Legislative Action
Committee (CM)
6:00 PM-Youth Advisory Commission
(HL)
6:30 PM-CASCC June Membership
Event (CM/HL)
14 15
11:00 AM-
Philippine
Independenc
e Day Flag
Raising –
Cesar Chavez
Plaza
16 17 18
5:30 PM-Closed Session
7:00 PM-City Council
19 6:00 PM-Energy and Environmental
Sustainability Commission (EC)
20 3:00 PM-CASCC Appt: Recycling and
Waste Reduction Commission (CM)
(Cupertino)
5:30 PM-Measure F Oversight
Committee
21 22
23 24 25
1:30 PM-Senior Advisory Commission
(CM)
26 11:30 AM- Employee Service Awards
7:00 PM-Planning Commission
27 5:30 PM- State of the City
28 9:00 AM-VTA Board Workshop
Meeting (CM)
29 30
May 2024
S M T W T F S
1 2 3 4
5 6 7 8 9 10 11
12 13 14 15 16 17 18
19 20 21 22 23 24 25
26 27 28 29 30 31
July 2024
S M T W T F S
1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30 31
AAPI LEAD Summit, Las Vegas, NV – Councilmember Anthony Phan
Milpitas City Council Calendar
July 2024
Sunday Monday Tuesday Wednesday Thursday Friday Saturday 1 2 3 4
INDEPENDENCE DAY
City Hall Closed
5 6
7 8 9 10
7:00 PM-Silicon Valley Clean Energy
Board of Directors (EC) (Cupertino)
11 4:00 PM-Santa Clara VTA Policy
Advisory Committee (EC)
4:00 PM-Treatment Plant Advisory
Committee (CM) (San Jose)
4:00 PM- SVRIA Board of Directors
Meeting (GB)
7:00 PM-Cities Assoc of SCC (CM)
12 13
APTA
SEMINAR,
San Jose, CA
– Mayor
Carmen
Montano
14 15 16 17 18
3:00 PM- CASCC Appt: Recycling and
Waste Reduction Commission (CM)
6:30 PM-Bay Area Water Supply
Conserv Agency (CM) (Oak Room -
San Mateo Main Library)
19 20
21 22 23 24 25 26 27
28 29 30 31
June 2024
S M T W T F S
1 2 3 4 5 6 7 8
9 10 11 12 13 14 15
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30 August 2024
S M T W T F S
1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31
APTA SEMINAR, San Jose, CA – Mayor Carmen Montano
Milpitas City Council Calendar
August 2024
Sunday Monday Tuesday Wednesday Thursday Friday Saturday 1 5:30 PM-Milpitas Chamber of
Commerce Board (GB)
5:30 PM-Santa Clara VTA Board of
Directors (CM)
2 3
4 5
5:30 PM- Special Council Meeting
7:00 PM-Parks, Recreation & Cultural
Resources Commission (HL)
6 National Night Out – Citywide
Neighborhood Events
7 5:30 PM-Veterans Commission (CM)
7:00 PM-Community Advisory
Commission (EC)
8 4:00 PM-Treatment Plant Advisory
Committee (CM) (San Jose)
4:00 PM-Santa Clara VTA Policy
Advisory Committee (EC)
5:30 PM-CASCC Legislative Action
Committee (CM)
6:00 PM-Youth Advisory Commission
(HL)
7:00 PM-Cities Assoc of SCC (CM)
9 10
11 12
4:30 PM-Economic Development and
Trade Commission (CM)
13 5:30 PM-Special Council Meeting
14 4:00 PM-Transportation
Subcommittee Meeting (CM/EC)
7:00 PM-Silicon Valley Clean Energy
Board of Directors (EC) (Cupertino)
7:00 PM-Planning Commission
15 3:00 PM-CASCC Appt: Recycling and
Waste Reduction Commission (CM)
16 17
18 19
7:00 PM-Science, Technology, and
Innovation Commission (GB)
20 5:00 PM-Closed Session
7:00 PM-City Council
21 6:00 PM-Energy and Environmental
Sustainability Commission (EC)
22 23 24
25 26 27
1:30 PM-Senior Advisory Commission
(CM)
28 7:00 PM-Planning Commission
29 30 31
July 2024
S M T W T F S
1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30 31
September 2024
S M T W T F S
1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30
May 21, 2024 Milpitas City Council Minutes Page 1
REGULAR MEETING OF THE MILPITAS
CITY COUNCIL
MINUTES
TUESDAY, MAY 21, 2024
CITY COUNCIL CHAMBER, 455 E. CALAVERAS BLVD, MILPITAS, CA The City Council of the City of Milpitas convened on the City Council meeting day in a Regular Meeting of the Milpitas City Council on May 21, 2024, in the City Council Chamber, 455 E. Calaveras Blvd, Milpitas, CA, and via teleconference/Zoom webinar.
CALL MEETING TO ORDER by Mayor and ROLL CALL by City Clerk Mayor Montano called the Regular City Council meeting to order at 6:04 PM. Roll Call was taken by City Clerk Guzzetta.
PRESENT: Mayor Montano, Vice Mayor Chua, Councilmember Barbadillo, Councilmember Lien, Councilmember Phan
ABSENT: None.
ADJOURN TO CLOSED SESSION
City Attorney Mutalipassi introduced the item to be discussed.
There were no public comments.
The City Council adjourned to Closed Session at 6:06 pm. (a) PUBLIC EMPLOYEE PERFORMANCE EVALUATION
Pursuant to California Government Code Section 54957
Position: City Manager
The City Council reconvened at 7:00 PM.
CLOSED SESSION ANNOUNCEMENT:
City Attorney Mutalipassi noted there was nothing to report.
PLEDGE OF ALLEGIANCE
Mayor Montano led the pledge of allegiance
INVOCATION
Vice Mayor Chua invited Pastor Rey Lingad to present the invocation.
PRESENTATIONS
Mayor Montano, joined by the City Council, presented proclamations and certificates in recognition of Asian American, Native Hawaiian, and Pacific Islander Heritage Month and Public Works Week. A video highlighting the diversity of employees and projects in the Public Works Department was shown in recognition of Public Works Week.
May 21, 2024 Milpitas City Council Minutes Page 2
PUBLIC FORUM
There were the following public speakers:
1. Voltaire Montemayor
ANNOUNCEMENT OF CONFLICT OF INTEREST AND CAMPAIGN CONTRIBUTIONS City Attorney Mutalipassi asked the Mayor and City Councilmembers if they had any personal conflicts of interest. By roll call, there were no conflicts of interest. City Attorney Mutalipassi asked the Mayor and City Councilmembers if they had any reportable campaign contributions. By roll call, there were no reportable campaign contributions.
READING OF THE CITY COUNCIL CODE OF CONDUCT
Vice Mayor Chua read the Code of Conduct.
APPROVAL OF AGENDA
After discussion, motion: to approve the agenda.
Motion/Second: Vice Mayor Chua/Councilmember Lien
Motion carried by the following:
AYES: Mayor Montano, Vice Mayor Chua, Councilmember Barbadillo, Councilmember Lien, Councilmember Phan
NOES: None
ABSENT:
CONSENT CALENDAR
Councilmember Phan asked to pull Item C5.
There were no public speakers.
After discussion, motion: to approve the Consent Calendar, pulling Item C5.
Motion/Second: Vice Mayor Chua/Councilmember Lien
Motion carried by the following:
AYES: Mayor Montano, Vice Mayor Chua, Councilmember Barbadillo, Councilmember Lien, Councilmember Phan
NOES: None
1. Receive City Council Calendar of Meetings for May and June 2024 (Staff Contact: Suzanne Guzzetta, City Clerk, 408-586-3001)
Received City Council Calendar of Meetings for May and June 2024.
2. Approve City Council City Council Meeting Minutes of May 7, 2024 (Staff Contact: Suzanne Guzzetta, City Clerk, 408-586-3001)
Approved City Council Meeting minutes of May 7, 2024.
3. Receive the Preview List of Anticipated Items for the Next Regular City Council Meeting (Staff Contact: Suzanne Guzzetta, City Clerk, 408-586-3001)
May 21, 2024 Milpitas City Council Minutes Page 3
Received the list of anticipated agenda items for the next regular City Council meeting.
4. Receive and Review the List of Agenda Items Requested by City Councilmembers (Staff Contact: Suzanne Guzzetta, City Clerk, 408-586-3001)
Reviewed the list of items that have been requested by City Councilmembers and provided direction to staff as necessary.
6. Confirm Chamber of Commerce Appointment to the Economic Development and Trade Commission (Staff Contact: Suzanne Guzzetta, City Clerk, 408-586-3004) Received the Chamber of Commerce recommendation for the appointment of Larry Ciardella to the Economic Development and Trade Commission and confirmed the appointment.
7. Receive Summary of 2024 Earmark Requests (Staff Contact: Matt Cano, Assistant City Manager, 408-586-3012)
Accepted the report outlining the City of Milpitas’ 2024 State and Federal Earmark Requests.
8. Adopt a Resolution Accepting Public Improvements and Approve a Reduction of Faithful Performance Bond for Public Improvements for the RCD Housing Project Located at 355 Sango Court (Staff Contact: Christian Di Renzo, Public Works Director, 408-586-2602; Michael Silveira, City Engineer, 408-586-3303; and Roberto Alonzo, Public Works Division Manager – Engineering, 408-586-3316)
Adopted Resolution No. 9326 granting acceptance of the completed public improvements for the RCD Housing Project as shown on Public Improvement Plans No. 2-1386; and approved a reduction in the faithful performance bond to $396,275.75, which is 25% of the security’s original value for the public improvements construction cost and shall be in effect for the duration of the warranty period; and granted authorization to the City Engineer to release the remaining portion of the performance bond after the one-year warranty period without further City Council action provided all required warranty work is completed to the satisfaction of the City Engineer.
9. Receive and Approve the Calendar Year 2023 Controlled Equipment Annual Report (Staff Contact: Jared Hernandez, Chief of Police, 408-586-2406) Received and approved the Calendar Year 2023 Controlled Equipment Annual Report.
10. Adopt a Resolution Accepting ARPA Park Rehabilitation Phase 1, Project No. 3500, Authorizing the Public Works Director to File a Notice of Completion, and Authorize the City to issue a Notice of Final Acceptance after the One-Year Warranty (Staff Contact: Christian Di Renzo, Public Works Director, 408-586-2602)
Adopted Resolution No. 9327 granting acceptance of ARPA Park Rehabilitation Phase 1, Project No. 3500, authorizing the Public Works Director to file a Notice of Completion, and authorizing the Public Works Director to issue a Notice of Final Acceptance after the one-year warranty.
11. Receive Final Update on Storm Drain System Emergency Repairs and Improvements at Evans Road and Piedmont Creek, Terminate the Emergency Declaration, and Adopt a Resolution Granting Acceptance of the Emergency Declaration - Storm Drain System Repairs and Improvements (Staff Contact: Christian Di Renzo, Public Works Director, 408-586-2602) (1) Received an update on the emergency repairs and improvements at Evans Road and Piedmont Creek; (2) Approved the termination of the emergency declaration; and (3) Adopted Resolution No. 9328 granting acceptance of Storm Drain System Repairs and Improvements at Evans Road and
May 21, 2024 Milpitas City Council Minutes Page 4
Piedmont Creek, Project No. 24-044 and 24-045, and authorizing the Public Works Director to file a Notice of Completion and issue a Notice of Final Acceptance after the one-year warranty.
12. Approve Agreements and Related Amendments with the County of Santa Clara for the Collection of AB939 Implementation Fees and Administration of the Countywide Household Hazardous Waste (HHW) Collection Program (Staff Contact: Christian Di Renzo, Public Works Director, 408- 586-2602; and Elaine Marshall, Deputy Public Works Director, 408-586-2603) Approved and authorized the City Manager to execute two agreements and related amendments with the County of Santa Clara for (1) Collection of AB939 Implementation Fees and (2) Administration of the Countywide Household Hazardous Waste (HHW) Collection Program for the term July 1, 2024 – June 30, 2027.
13. Approve a Professional Service Agreement with Backflow Prevention Specialists, Inc. for the Backflow Hazard Assessment Survey (Staff Contact: Christian Di Renzo, Public Works Director, 408-586-2602; and Michael Silveira, City Engineer, 408-586-3303) Approved and authorized the City Manager to execute a Professional Service Agreement with Backflow Prevention Specialists, Inc. in the amount of $121,394.00 for the Backflow Hazard Assessment Survey.
14. Consider Fee Waiver Requests from the Samuel Ayer High School Alumni Association, Rotary Club of Milpitas, and LEAD Filipino, and a Donation to the Sunnyhills Neighborhood Association (Staff Contact: Renee Lorentzen, Recreation and Community Services Director, 408-586-3409) (1) Approved a fee waiver of $1,500.00 for the Samuel Ayer High School 24th Annual Reunion at Murphy Park on September 21, 2024; (2) Approved a fee waiver of $522.50 for the Rotary Club of Milpitas Fundraiser “A Rose for You” on May 19, 2024; (3) Approved a fee waiver of $93.00 for the LEAD Filipino Yoga event at Delano Manongs Park Filed on June 9, 2024; and (4) Approved a donation of $500.00 for the Sunnyhills Neighborhood Association Milpitas Juneteenth 2024 event at Sunnyhills Albert Augustine, Jr. Memorial Park on June 15, 2024.
15. Approve the Community Heroes Program City Council Policy (Staff Contact: Renee Lorentzen, Recreation and Community Services Director, 408-586-3409) Approved the Community Heroes City Council Policy.
ITEMS PULLED FROM CONSENT CALENDAR
5. Authorize the Reallocation of Money Appropriated in the FY23/24 Budget from the Legacy Special Council Provider to the Current Special Council Provider and Approve and Authorize the City Attorney and City Manager to Execute an Amendment to the Contract with Meyers Nave for Contracted Outside Counsel (Staff Contact: Michael Mutalipassi, City Attorney, 408-586-3040) Councilmember Phan asked for additional information on the request. City Attorney Mutalipassi noted that this item recommends reallocating funds from one legal firm to another for special projects within the city's budget. The funds in question were initially designated for legal services provided by a legacy firm, BBK. However, all projects with BBK have been completed, prompting the need to transfer the remaining budgeted funds to another legal firm, Meyers-Nave, which has been providing legal services to the city on an as-needed basis.
Councilmember Phan asked for clarification on the services provided by the law firm. City Attorney Mutalipassi explained that the special projects covered by this budget allocation include various legal matters such as HR-related issues, Public Records Act projects, matters with the Public Employee Relations Board (PERB), and arbitrations involving disputes with unions. He emphasized that the funds
May 21, 2024 Milpitas City Council Minutes Page 5
being reallocated are already part of the city attorney's budget, not new appropriations, and that the reallocation and amendment to the contract are necessary to cover ongoing legal work.
Councilmember Phan asked about the scope of the contract and the duration of the relationship with the special counsel. City Attorney Mutalipassi responded that the contract covers various HR and Public Records Act projects and that the city has worked with this firm, Meyers Nave, intermittently for about 30 years. The Councilmember inquired about the total amount allocated towards this firm since the last fiscal year. The City Attorney stated that approximately $150,000 was allocated for special projects last year, and an additional $90,000 is proposed, with around $20,000 allocated to other firms.
Councilmember Phan suggested the request should go through the budget process and stated he could not support the item. The City Attorney explained that the funds were already included in the current budget and the reallocation involved moving funds from the legacy firm (BBK) to the new firm (Meyers Nave) due to the completion of previous projects.
Vice Mayor Chua clarified that the funds are not proposed but from an existing budget.
Councilmember Barbadillo asked for clarification on the budgeting process for special counsel services, highlighting confusion about funds allocated in previous fiscal years. City Attorney Mutalipassi noted that the budget for the new special counsel was already accounted for in the city attorney's budget. The Councilmember questioned the need for the reallocation if funds were already budgeted, prompting clarification that the amendment is to switch contracts, not allocate new funds. Further discussion ensued regarding the necessity of the reallocation and its impact on the budget. City Attorney Mutalipassi emphasized that without approval, the special counsel work cannot proceed, indicating the urgency of the decision.
There were the following public speakers:
1. Voltaire Montemayor
After discussion, motion: to (1) Authorize the reallocation of money appropriated in the FY-23/24 budget from the legacy special council provider to the current special council provider and approve; (2) Approve an amendment to the contract with Meyers Nave for contracted outside counsel in the amount of $90,000; and (3) Authorize the City Attorney and City Manager to execute the amended agreement..
Motion/Second: Vice Mayor Chua/Mayor Montano
Failed by the following:
AYES: Mayor Montano, Vice Mayor Chua
NOES: Councilmember Barbadillo, Councilmember Lien, Councilmember Phan
The motion failed.
PUBLIC HEARINGS
16. Approve the Conceptual Designs for South Milpitas Boulevard Road Extension, Project No. 2016, and Montague Pedestrian Overcrossing at Penitencia Creek, Project No. 2018; and Adopt a Resolution Adopting the Initial Study Mitigated Negative Declaration for South Milpitas Boulevard Road Extension, Project No. 2016 (Staff Contact: Christian Di Renzo, Public Works Director, 408-586-2602; and Michael Silveira, City Engineer, 408-586-3303) City Manager Thomas introduced the item. Acting Public Works Division Manager - Engineering Eam presented the report.
Mayor Montano opened the public hearing.
May 21, 2024 Milpitas City Council Minutes Page 6
There were the following speakers:
1. Voltaire Montemayor
Mayor Montano closed the public hearing.
Councilmember Barbadillo asked questions about the project funding and the consequences if the anticipated grant isn't received. Acting Public Works Division Manager - Engineering Eam, City Engineer Silveira, Assistant City Manager Cano and City Manager Thomas responded to his questions.
The Councilmember agreed with the project, emphasizing its importance to the regional plan and the need to pursue federal infrastructure grants to reduce local costs.
Mayor Montano commented on the time required to complete similar projects.
After discussion, motion: to approve the conceptual designs for the South Milpitas Boulevard Road Extension, Project No. 2016, and the Montague Pedestrian Overcrossing at Penitencia Creek, Project No. 2018; adopt Resolution No. 9329 to adopt the Initial Study/Mitigated Negative Declaration for the South Milpitas Boulevard Road Extension, Project No. 2016; authorize the Public Works Director to file a Notice of Determination for South Milpitas Boulevard Road Extension, Project No. 2016, in accordance with CEQA Guidelines Section 15075; find that the Montague Pedestrian Overcrossing at Penitencia Project meets all the requirements for a Statutory Exemption under Public Resources Code section 21080.25 and is therefore, is statutorily exempt from environmental review under CEQA; and authorize the Public Works Director to file a Notice of Exemption for Montague Pedestrian Overcrossing, Project No. 2018 in accordance with CEQA guidelines section 15062..
Motion/Second: Councilmember Lien/Councilmember Barbadillo Motion carried by the following:
AYES: Mayor Montano, Vice Mayor Chua, Councilmember Barbadillo, Councilmember Lien, Councilmember Phan
NOES: None
17. Adopt a Resolution Approving the Fiscal Year 2024-25 User and Regulatory Fee Schedule (Staff Contact: Luz Cofresí-Howe, Finance Director, 408-586-3111) City Manager Thomas introduced the item. Assistant Finance Director Tsang offered introductory remarks, and ClearSource Consultant Terry Madsen presented the report.
Mayor Montano opened the public hearing.
There were the following public speakers:
1. Voltaire Montemayor
Mayor Montano closed the public hearing.
Vice Mayor Chua questioned the percentage increase for fees and asked how the City compares to other cities in terms of fees. Assistant Finance Director Tsang noted that the City anticipates approximately $700,000.00 per year in new revenue from the fee increases. ClearSource Consultant Terry Madsen noted that when the city completed a cost of service study, it was confirmed that the City fees were in alignment with the region. He noted that this update is an interim year update and only an inflationary adjustment.
Councilmember Barbadillo raised concerns about the fiscal impact of adjusting service fees, particularly
May 21, 2024 Milpitas City Council Minutes Page 7
how it affects different departments and the community. He questioned if these adjustments, which include minor increases for building permits, recreation, police, and fire services, would impact residents unduly, particularly with recent budget discussions. He followed up, questioning the timing of this information, suggesting it should have been part of the budget discussion, especially when addressing employee compensation. Assistant City Manager Matt Cano, joined by Recreation and Community Services Director Lorentzen, explained that cost recovery models are standard to ensure public funds aren't subsidizing private benefits, and the city aims to minimize public impact through scholarships and other programs. Any fee increases are necessary to avoid cutting other city services.
Vice Mayor Chua questioned why increases are being proposed to the fee schedule. ClearSource Consultant Terry Madsen clarified that most fees remain unchanged and that new categories are being added to capture non-resident fees. He noted that the majority of the fees proposed for increase are development related.
Councilmember Lien made a motion: to adopt a resolution approving the Fiscal Year 2024-25 User and Regulatory Fee Schedule. Vice Mayor Chua seconded the motion. Vice Mayor Chua asked Councilmember Barbadillo if there were specific concerns he wanted addressed.
Councilmember Barbadillo suggested the item needed more discussion before the City Council could take action.
ClearSource Consultant Terry Madsen proposed adjusting the fees by 3.6% to bring them in line with the local CPI.
Councilmember Barbadillo questioned the impact if the User and Regulatory Fee Schedule wasn't approved at this meeting. Assistant Finance Director Tsang noted that some fees require an extended period before they can be enacted so they couldn’t be captured at the start of the new budget period.
Vice Mayor Chua asked when the item could next be heard. City Clerk Guzzetta clarified the noticing period. It was concluded the next possible meeting would be the regular City Council meeting of June 18, 2024.
Upon a call for the question, the motion failed.
Motion/Second: Councilmember Lien/Vice Mayor Chua
Failed by the following:
AYES: Councilmember Lien
NOES: Mayor Montano, Vice Mayor Chua, Councilmember Barbadillo, Councilmember Phan
The City Council directed staff to return with this item on June 18, 2024.
COMMUNITY SERVICES AND SUSTAINABLE INFRASTRUCTURE
18. Presentation from Bay Area Air Quality Management District Staff on the Results of the South Bay Odor Attribution Study (Staff Contact: Christian Di Renzo, 408-586-2602, Public Works Director; and Elaine Marshall, Deputy Public Works Director, 408-586-2603) Deputy Public Works Director Marshall introduced the item. Bay Area Air Quality Management District Deputy Executive Officer of Public Affairs Viet Tran and California Air Resources Board Air Resources Engineer Joe Zhou presented the report. Newby Landfill General Manager Enrique Perez responded to questions.
May 21, 2024 Milpitas City Council Minutes Page 8
There were the following public speakers:
1. Raymond Wong
2. Keng Ng
3. Chia Ling Kong
4. Vikram Sulakhe
5. Member of the Public
6. Voltaire Montemayor
Council discussion ensued.
Councilmember Phan left the meeting at 10:00 PM.
ANNOUNCEMENTS AND FUTURE AGENDA ITEMS
Vice Mayor Chua made the following announcements and requests:
1. She spoke about recent news regarding Chaparral Ranch, which provides horseback riding for the City of Milpitas, and requested to send a letter signed by the Mayor and City Council to the County Administrator and Supervisor Lee, asking the county to investigate the treatment of horses by Chaparral Corporation at Ed Levine Park and the adjacent Chaparral Ranch. Mayor Montano noted that a letter was currently in the works from the City Manager and City Attorney to the County. There was consensus to add the item to the prioritization list (Absent: Phan)
2. Add an item for staff to bring back an amendment to the municipal code regarding the boarding and treatment of horses within the city's jurisdiction. There was consensus to add the item to the prioritization list (Absent: Phan)
3. Vice Mayor Chua Invited the community to the Technology for Seniors Program.
Mayor Montano spoke on flags displayed on private property.
City Manager Thomas announced a Community Open House at the Barbara Lee Senior Center to discuss a zoning change on Thursday, May 30, 2024.
Councilmember Lien thanked staff and the community for their support of the Milpitas Rotary Club fundraiser for scholarships for students in the community and Vietnam.
ADJOURNMENT
Mayor Montano adjourned the meeting at 10:19 PM.
Draft meeting minutes submitted by City Clerk, Suzanne Guzzetta
June 4, 2024 Milpitas City Council Minutes Page 1
JOINT MEETING OF THE MILPITAS
CITY COUNCIL AND HOUSING AUTHORITY
MINUTES
TUESDAY, JUNE 4, 2024
The City Council of the City of Milpitas convened on the regular City Council meeting day in a Joint Meeting of the Milpitas City Council and Housing Authority on June 4, 2024, in the City Council Chamber, 455 E.
Calaveras Blvd, Milpitas, CA, and via teleconference/Zoom webinar.
CALL MEETING TO ORDER by Mayor and ROLL CALL by City Clerk Mayor Montano called the Regular City Council meeting to order at 6:01 PM. Roll Call was taken by City Clerk Guzzetta.
PRESENT: Mayor Montano, Vice Mayor Chua, Councilmember Barbadillo, Councilmember Lien, Councilmember Phan
ABSENT:
City Attorney Mutalipassi provided information on the Closed Session Agenda.
The City Council recessed to Closed Session at 6:03 PM.
ADJOURN TO CLOSED SESSION
(a) PUBLIC EMPLOYEE PERFORMANCE EVALUATION
Pursuant to California Government Code Section 54957
Position: City Manager
The City Council reconvened at 7:20 PM.
CLOSED SESSION ANNOUNCEMENT:
City Attorney Mutalipassi noted there was nothing to report out.
PLEDGE OF ALLEGIANCE
Mayor Montano led the pledge of allegiance.
INVOCATION
Councilmember Barbadillo led the invocation.
PRESENTATIONS
There were no presentations.
PUBLIC FORUM
There were the following public speakers:
1. Voltaire Montemayor
ANNOUNCEMENT OF CONFLICT OF INTEREST AND CAMPAIGN CONTRIBUTIONS
June 4, 2024 Milpitas City Council Minutes Page 2
City Attorney Mutalipassi asked the Mayor and City Councilmembers if they had any personal conflicts of interest. By roll call, there were no conflicts of interest. City Attorney Mutalipassi asked the Mayor and City Councilmembers if they had any reportable campaign contributions. By roll call, there were no reportable campaign contributions.
READING OF THE CITY COUNCIL CODE OF CONDUCT
Mayor Montano read the City Council Code of Conduct.
APPROVAL OF AGENDA
Councilmember Phan asked to move Item 17 before Item 13.
After discussion, motion: to approve the agenda, moving Item 17 before Item 13.
Motion/Second: Councilmember Phan / Vice Mayor Chua
Motion carried by the following:
AYES: Mayor Montano, Vice Mayor Chua, Councilmember Barbadillo, Councilmember Lien, Councilmember Phan
NOES: None
CONSENT CALENDAR
Councilmember Phan requested to pull Item C2.
There were the following public speakers:
1. Voltaire Montemayor
After discussion, motion: to approve the Consent Calendar, pulling Item C2 for discussion.
Motion/Second: Vice Mayor Chua / Councilmember Lien
Motion carried by the following:
AYES: Mayor Montano, Vice Mayor Chua, Councilmember Barbadillo, Councilmember Lien, Councilmember Phan
NOES: None
1. Receive City Council Calendar of Meetings for June 2024 (Staff Contact: Suzanne Guzzetta, City Clerk, 408-586-3001)
Received City Council Calendar of Meetings for June 2024.
3. Receive the Preview List of Anticipated Items for the Next Regular City Council Meeting (Staff Contact: Suzanne Guzzetta, City Clerk, 408-586-3001)
Received the list of anticipated agenda items for the next regular City Council meeting.
4. Receive and Review the List of Agenda Items Requested by City Councilmembers (Staff Contact: Suzanne Guzzetta, City Clerk, 408-586-3001)
Reviewed the list of items that have been requested by City Councilmembers and provided direction to staff as necessary.
5. Adopt a Resolution Calling for the General Municipal Election on November 5, 2024 (Staff Contact: Suzanne Guzzetta, City Clerk, 408-586-3001)
June 4, 2024 Milpitas City Council Minutes Page 3
Adopted Resolution No. 9330 calling a General Municipal Election for the City of Milpitas on Tuesday, November 5, 2024, requesting consolidation of the election in accordance with California Elections Code Section 10418, and requesting services from the Santa Clara County Registrar of Voters.
6. Authorize and Approve the Out-Of-State Travel to Las Vegas, NV, for Councilmember Anthony Phan, from June 19 – 21, 2024 and Authorize and Approve Travel to San Francisco, CA, for City Manager Ned Thomas, from June 6 – 7, 2024 (Staff Contact: Matt Cano, Assistant City Manager, 408-586-3012)
(1) Authorized and approved the out-of-state travel to Las Vegas, NV for Councilmember Anthony Phan to attend the APALF’s Inaugural AAPI LEAD Summit, from June 19 – 21, 2024, for a not-to-exceed amount of $1,400.00; and (2) Authorized and approved travel to San Francisco, CA for City Manager Ned Thomas to attend the CLEI’s California Land Use Law Conference, from June 6 – 7, 2024, for a not-to-exceed amount of $1,300.00.
7. FY 2023-24 Financial Status Report for the Quarter Ended March 31, 2024 (Staff Contact: Luz Cofresí-Howe, Finance Director, 408-586-3111)
Reviewed the FY 2023-24 Quarterly Financial Status Report for the quarter ended March 31, 2024.
8. Approve an Agreement with Xerox Corporation for Full-Service Lease of Copier/Multifunction Digital Devices (Staff Contact: Luz Cofresí-Howe, Finance Director, 408-586-3111) Authorized the City Manager to execute a cooperative agreement with Xerox Corporation for a full- service lease of copier/multifunction digital devices through a cooperative procurement contract by Region 4 Educational Services Center for not-to-exceed $368,000 for 60 months [five (5) years] with change order authority up to 10%, subject to the annual appropriation of funds.
9. Approve the Purchase of a Police Vehicle, Find the Procurement to be in the Best Interest of the City, and Authorize the City Manager to Execute Any Documents Necessary to Effectuate the Purchase at the Negotiated Amount (Staff Contact: Jared Hernandez, Chief of Police, 408-586- 2406)
Approved the purchase of a police vehicle, found the procurement to be in the best interest of the City consistent with Milpitas Municipal Code 1-2-3.03, and authorized the City Manager to execute any documents necessary to effectuate the purchase at the negotiated amount.
10. Award IFB 24-091 and Authorize the City Manager to Execute the Purchase Order with Core and Main, LP for Valve Parts in the Amount of $129,320.60 for Sunnyhills Turnout Rehabilitation Project, Project No. 7149 (Staff: Christian Di Renzo, Public Works Director, 408-586-2602; and Michael Silveira, City Engineer, 408-586-3303)
Awarded IFB 24-091 and authorized the City Manager to execute the purchase order with Core and Main, LP for the purchase of valve parts in the amount of $129,320.60 for Sunnyhills Turnout Rehabilitation Project, Project No. 7149.
11. Adopt a Resolution to Approve Project Plans & Specifications, Award the Construction Contract to Preston Pipelines Infrastructure, LLC, Authorize Design Services Agreement Amendment No. 1 with MNS Engineers, Inc. for Fire Station 1 Pressure Reducing Stations Relocation, Project No. 7133 (Staff: Christian Di Renzo, Public Works Director, 408-586-2602; and Michael Silveira, City Engineer, 408-586-3303)
Adopted Resolution No. 9331 to approve project plans & specifications; awarded the construction contract to the lowest responsive, responsible bidder, Preston Pipelines Infrastructure, LLC, in a total amount of $999,240; authorized the City Manager to execute the construction contract with Preston
June 4, 2024 Milpitas City Council Minutes Page 4
Pipelines Infrastructure, LLC.; authorized the Public Works Director to negotiate and execute contract change order(s) in an aggregate amount not to exceed $150,000; and approved and authorized the City Manager to execute Amendment No. 1 to the Design Services Agreement with MNS Engineers in the amount of $156,524 for Fire Station 1 Pressure Reducing Station Reconstruction, Project No. 7133.
12. Approve and Authorize the City Manager to Execute the Improvement Agreement between the City and Chevron U.S.A. Inc., for the completion of the Offsite Public Improvements located at 1490 South Park Victoria Drive (Staff Contact: Christian Di Renzo, Public Works Director, 408- 586-2602; and Michael Silveira, City Engineer, 408-586-3303) Approved and authorized the City Manager to execute the Improvement Agreement between the City and Chevron U.S.A. Inc., for the completion of the Offsite Public Improvements located at 1490 South Park Victoria Drive.
Motion/Second: Vice Mayor Chua / Councilmember Lien
Vote: 5-0
PUBLIC HEARINGS
17. Conduct a Public Hearing and Adopt a Resolution Approving General Plan Amendment GP24- 0002 and an Ordinance Approving Zoning Text and Zoning Map Amendment ZA24-0002 to Create the New Business Park Research and Development Zone and Metro Area Zones (Staff Contact: Jay Lee, Planning Director, 408-586-3077; and Holly Pearson, Senior Special Projects Associate, 408-609-0072)
Special Projects Associate Pearson introduced the item. Consultant Jennifer Murillo presented the report.
Mayor Montano opened the public hearing.
There were the following public speakers:
1. Nick Lamson
2. Voltaire Montemayor
Mayor Montano closed the public hearing.
City Attorney Mutalipassi read aloud the title of Ordinance No. 38.855.
Councilmember Barbadillo questioned why there was a need to amend the General Plan as part of this update, and staff explained that a few minor adjustments were needed to align the General Plan with the new zoning ordinance. He also inquired after the warehouse square footage threshold.
Vice Mayor Chua and Councilmember Phan expressed concerns that the initially proposed 150,000 sq ft warehouse threshold was too restrictive and could deter investment. They both advocated for a higher 200,000 sq ft threshold. Staff explained that the 150,000 sq ft number was based on research into how other similar employment-focused zones in the region regulate warehousing, as well as feedback from stakeholders, but acknowledged there was no formula to determine the square footage. Vice Mayor Chua disclosed that she met with Cisco and other stakeholders and learned that several business interests opted to go elsewhere due to the uncertainty of the matter. She suggested reevaluating in a year or two to see the square footage of applications.
Councilmember Barbadillo opposed raising the CUP threshold to 200,000 square feet, relying on the staff recommendation of 150,000 square feet. He argued that the proposed change seemed arbitrary
June 4, 2024 Milpitas City Council Minutes Page 5
and stressed the importance of adhering to the staff's analysis, which aimed to balance space use and employment goals. He suggested starting with the 150,000 threshold and revisiting it later if needed, rather than making an immediate increase. Vice Mayor Chua reiterated her support for raising the threshold for warehouse square footage to 200,000, adding that she planned to include direction to return in a year to review the statistics.
Councilmember Barbadillo asked for the Economic Development Director's input on the matter.
Economic Development Director Alex Andrade emphasized the importance of flexibility in responding to market conditions, noting that the current real estate market favors industrial uses over office space. He supported a higher threshold to attract and retain businesses, citing the need to compete with other jurisdictions and adapt to changing market dynamics.
Vice Mayor Chua made a motion: to determine that the EIR Addendum adequately analyzes the potential environmental impacts associated with the proposed General Plan and Zoning Amendments and is in compliance pursuant to CEQA Guidelines §15162 and §15164; adopt Resolution No. 9332 approving General Plan Amendment No. GP24-0002; and waive reading beyond the title and introduce Ordinance No. 38.855 approving Zoning Text and Zoning Map Amendment No. ZA24-0002 to create the new Business Park Research and Development Zone and Metro Area Zones with the square footage raised to 200,000.
Motion/Second: Vice Mayor Chua / Mayor Montano
Motion carried by the following:
AYES: Mayor Montano, Vice Mayor Chua, Councilmember Lien, Councilmember Phan NOES: Councilmember Barbadillo
13. Conduct a Public Hearing and Adopt Resolutions to Approve the Fiscal Year 2024-25 Proposed Operating Budget for the City of Milpitas and the Milpitas Housing Authority, Approve the Fiscal Year 2024-25 Gann Appropriations Limit, Authorize Various Financial Actions, Fiscal Policies and Budget Guidelines, and Amend the Classification Plan for Alignment with the FY 2024-25 Proposed Operating Budget, the Minimum Wage Increase, and Salary Schedules Consistent with Previous Council Action (Staff Contact: Luz Cofresí-Howe, Finance Director, 408-586-3111) City Manager Thomas introduced the item. Finance Director Cofresi-Howe presented the report.
Mayor Montano opened the public hearing.
There were the following public speakers:
1. Voltaire Montemayor
Mayor Montano closed the public hearing.
Councilmember Lien sought clarification on the $631,000 allocated for City Council expenses.
Vice Mayor Chua inquired about the total payroll and the percentage of the general fund, and the projected deficit in FY 2027-28. She emphasized the importance of the financial stress test and asked after what could be done now to mitigate the future deficit. The Vice Mayor asked for a detailed report addressing these financial concerns.
Councilmember Phan raised concerns about a $175,000 allocation for legal services with Myers-Nave, noting a significant increase from previous allocations. City Manager Thomas clarified that the request was for new funds for the upcoming budget year and separate from previous reallocations and Assistant City Manager Cano added that the request was the original figure submitted weeks ago, not
June 4, 2024 Milpitas City Council Minutes Page 6
an increase based on the amount declined by the City Council previously. Councilmember Phan voiced his discomfort with the request, citing concerns that this request raises the amount too greatly. He asked to strike the Myers-Nave contract from the attachment.
Vice Mayor Chua made a motion: to adopt the following resolutions: (a) Joint Resolution No. 9333 / HA 33 of the City Council and Milpitas Housing Authority to approve the Fiscal Year 2024-25 Proposed Operating Budget for the City of Milpitas and the Milpitas Housing Authority, approve the Fiscal Year 2024-25 Gann Appropriations Limit, Fiscal Policies and Budget Guidelines and authorizing various financial actions by the City Manager, including Approving and Authorizing the Execution of Various Contracts and Payments over $100,000, and striking out the Myers-Nave agreement from the attachment for Contracts and Payments over $100,000; (b) Resolution No. 9334 Amending Resolution No. 1626, the Classification Plan, to authorize additional positions and amend budgeted allocated positions; (c) Resolution No. 9335 Amending Resolution No. 1626, the Classification Plan, to adjust the hourly rate ranges for classifications due to a minimum wage increase pursuant to Ordinance No. 292; (d) Resolution No. 9336 Amending Resolution No. 1626, the Classification Plan of Unrepresented Management Employees and Authorizing Fringe Benefits; (e) Resolution No. 9337 Amending Resolution No. 1626, the Classification Plan, to adjust the Salary Schedules for various classifications to align with the current memorandums of understandings (MOUs).
Councilmember Phan seconded the motion.
Councilmember Barbadillo sought clarification on the budget approval process and stressed the importance of discussing the general budget before specific items. He expressed frustration over the lack of community oversight for the $253 million budget, questioned the prudence of using reserves to balance it, and raised concerns about the sustainability of using one-time revenue sources and emphasized the need for stable recurring revenues. City Manager Thomas reassured that the budget is balanced for the next fiscal year and that ongoing evaluations will be conducted to address future financial challenges. Councilmember Barbadillo requested regular reports to monitor income generation and the status of revenue sources to ensure long-term budget sustainability, emphasizing the need for proactive planning to avoid future financial shortfalls.
Vice Mayor Chua supported Councilmember Barbadillo's request for clearer, more understandable quarterly financial reports, suggesting a format similar to the current snapshot. City Manager Ned Thomas proposed including the 10-year forecast in the year-end report, which typically includes final numbers and financial outcomes.
Upon a call for the question, the motion passed.
Motion / Second: Vice Mayor Chua/Councilmember Phan
Motion carried by the following:
AYES: Mayor Montano, Vice Mayor Chua, Councilmember Lien, Councilmember Phan NOES: Councilmember Barbadillo
14. Adopt a Resolution Certifying Election Results and Adding the Properties Located at 675 Trade Zone Blvd and 1951 Tarob Court into Community Facilities District No. 2008-1 (Annexation No. 26) (Staff Contact: Christian Di Renzo, Public Works Director, 408-586-2602; and Michael Silveira, City Engineer, 408-586-3355)
Senior Engineer Valderrama presented the report.
Mayor Montano opened the public hearing
June 4, 2024 Milpitas City Council Minutes Page 7
There were the following public speakers:
1. Voltaire Montemayor
Mayor Montano closed the public hearing.
City Clerk Guzzetta canvassed the results, reporting that the proposition passed with one vote in favor.
After discussion, motion: to adopt Resolution No. 9338 certifying election results and adding 675 Trade Zone Boulevard and 1951 Tarob Court to Community Facilities District No. 2008-1 (Annexation No. 26).
Motion/Second: Councilmember Lien / Vice Mayor Chua
Motion carried by the following:
AYES: Mayor Montano, Vice Mayor Chua, Councilmember Barbadillo, Councilmember Lien, Councilmember Phan
NOES: None
15. Conduct a Public Hearing and Adopt a Resolution Confirming the Assessment and Ordering the Levy for the Landscaping and Lighting Maintenance Assessment District No. 95-1 - McCarthy Ranch for Fiscal Year 2024-25 (Staff Contact: Christian Di Renzo, Public Works Director, 408- 586-2602; Michael Silveira, City Engineer, 408-586-3303) Public Works Division Manager - Engineering Alonzo presented the report.
Mayor Montano opened the public hearing.
There were the following public speakers:
1. Voltaire Montemayor
Mayor Montano closed the public hearing.
After discussion, motion: to adopt Resolution No. 9339 confirming the assessment and ordering the levy for Landscaping and Lighting Maintenance Assessment District No. 95-1 - McCarthy Ranch for Fiscal Year 2024-25.
Motion/Second: Councilmember Barbadillo / Mayor Montano Motion carried by the following:
AYES: Mayor Montano, Vice Mayor Chua, Councilmember Barbadillo, Councilmember Lien, Councilmember Phan
NOES: None
16. Conduct a Public Hearing and Adopt a Resolution Confirming the Assessment and Ordering the Levy for the Landscaping and Lighting Maintenance Assessment District No. 98 -1 - Sinclair Horizon for Fiscal Year 2024-25 (Staff Contact: Christian Di Renzo, Public Works Director, 408- 586-2602; Michael Silveira, City Engineer, 408-586-3303) Public Works Division Manager - Engineering Alonzo presented the report.
Mayor Montano opened the public hearing.
There were the following public speakers:
1. Voltaire Montemayor
June 4, 2024 Milpitas City Council Minutes Page 8
Mayor Montano closed the public hearing.
After discussion, motion: to adopt Resolution No. 9340 confirming the assessment and ordering the levy for Landscaping and Lighting Maintenance Assessment District No. 98 -1 - Sinclair Horizon for Fiscal Year 2024-25.
Motion/Second: Councilmember Lien / Councilmember Barbadillo Motion carried by the following:
AYES: Mayor Montano, Vice Mayor Chua, Councilmember Barbadillo, Councilmember Lien, Councilmember Phan
NOES: None
ITEMS PULLED FROM CONSENT CALENDAR
2. Approve City Council Meeting Minutes of May 14 and 21, 2024 (Staff Contact: Suzanne Guzzetta, City Clerk, 408-586-3001)
Councilmember Phan requested changes to the May 21, 2024, minutes to include details regarding the Myers-Nave reallocation item including the original contract amount, the contract extension, and the length of the City's relationship with the firm.
City Manager Thomas agreed to review the meeting recording to update the minutes and bring the May 21st minutes back separately.
After discussion, motion: to approve City Council Meeting minutes of May 14, 2024.
Motion/Second: Councilmember Phan / Councilmember Lien
by the following:
AYES: Mayor Montano, Vice Mayor Chua, Councilmember Barbadillo, Councilmember Lien, Councilmember Phan
NOES: None
ANNOUNCEMENTS AND FUTURE AGENDA ITEMS
City Manager Thomas announced the June 11, 2024, City Council Special Meeting at 5:30 PM in the Milpitas City Hall Council Chambers.
ADJOURNMENT
Mayor Montano adjourned the meeting at 10:00 PM.
Draft meeting minutes submitted by City Clerk, Suzanne Guzzetta
June 11, 2024 Milpitas City Council Minutes Page 1
SPECIAL MEETING OF THE MILPITAS
CITY COUNCIL AND HOUSING AUTHORITY
MINUTES
TUESDAY, JUNE 11, 2024
The City Council of the City of Milpitas convened on the Special City Council meeting day in a Joint Meeting of the Milpitas City Council and Housing Authority on June 11, 2024, in the City Council Chamber, 455 E.
Calaveras Blvd, Milpitas, CA, and via teleconference/Zoom webinar.
CALL MEETING TO ORDER by Mayor and ROLL CALL by City Clerk Mayor Montano called the Special City Council meeting to order at 5:33 PM. Roll Call was taken by City Clerk Guzzetta.
PRESENT: Mayor Montano, Vice Mayor Chua, Councilmember Barbadillo, Councilmember Lien, Councilmember Phan
ABSENT: None.
PLEDGE OF ALLEGIANCE
Vice Mayor Chua led the pledge of allegiance.
PRESENTATIONS
Mayor Montano and the City Council presented certificates in recognition of Community Heroes.
The City Council recessed to a Community Heroes recognition reception at 5:56 PM The City Council reconvened at 6:31 PM
PUBLIC FORUM
There were the following public speakers:
1. Voltaire Montemayor
ANNOUNCEMENT OF CONFLICT OF INTEREST AND CAMPAIGN CONTRIBUTIONS City Attorney Mutalipassi asked the Mayor and City Councilmembers if they had any personal conflicts of interest. By roll call, there were no conflicts of interest. City Attorney Mutalipassi asked the Mayor and City Councilmembers if they had any reportable campaign contributions. By roll call, there were no reportable campaign contributions.
READING OF THE CITY COUNCIL CODE OF CONDUCT
Vice Mayor Chua read the City Council Code of Conduct.
APPROVAL OF AGENDA
After discussion, motion: to approve the agenda.
Motion/Second: Vice Mayor Chua / Councilmember Lien
Motion carried by the following:
June 11, 2024 Milpitas City Council Minutes Page 2
AYES: Mayor Montano, Vice Mayor Chua, Councilmember Barbadillo, Councilmember Lien, Councilmember Phan
NOES: None
CONSENT CALENDAR
There were no public speakers.
After discussion, motion: to approve the Consent Calendar.
Motion/Second: Councilmember Lien / Councilmember Barbadillo Motion carried by the following:
AYES: Mayor Montano, Vice Mayor Chua, Councilmember Barbadillo, Councilmember Lien, Councilmember Phan
NOES: None
1. Approve Accounts Receivable Write-offs for the Fiscal Year Ending June 30, 2024 (Staff Contact:
Luz Cofresí-Howe, Finance Director, 408-586-3111)
Approved the Accounts Receivable write-offs for the Fiscal Year ending June 30, 2024.
2. Approve a Milpitas Housing Authority Agreement with Bay Area Builders, Inc. dba BAB Commercial for Property Management Services (Staff Contact: Alex Andrade, Economic Development Director, 408-586-3046)
Approved a Milpitas Housing Authority Agreement with Bay Area Builders, Inc. DBA BAB Commercial for property management services in an amount not to exceed $50,000 and authorize the City Manager to act as Executive Director in the execution of the agreement.
AGENDA ITEMS
3. Review the List of Agenda Item Requests From Individual Councilmembers and Provide Direction to Staff Through the Council-Approved Prioritization Process (Staff Contact: Matt Cano, Assistant City Manager, 408-586-3012)
(1) Reviewed the list of agenda item requests from individual Councilmembers and provide direction to staff, through the prioritization process, on which Group 1 items should be advanced; and (2) Provided additional input to staff, if any, on Group 1 items that received Council direction to advance and all Group 2 items.
The following prioritization items were selected to move forward:
CC 7 Community Advisory Commission: Change focus to housing CC 8 Explore increasing stipend for planning commission CC 10 Escuela Parkway Traffic Safety Review
City Manager Thomas introduced the item. Assistant City Manager Cano presented the report.
There were the following public speakers:
1. Voltaire Montemayor
Vice Mayor Chua withdrew three items from consideration (CC03 - Tobacco Ordinance Review, CC11 - Ordinance on Catalytic Converters, and CC12 - ADU Sales Law). She also added clarification that CC05 for the Arts Month should also include employees, and that if CC07 is selected for prioritization,
June 11, 2024 Milpitas City Council Minutes Page 3
the name of the commission be the Community Advisory and Housing Commission.
The City Council reviewed the list of agenda item requests from individual Councilmembers, and individually voted electronically for two items in group one to advance as a priority.
City Clerk Guzzetta read the results of the vote with the following items receiving a majority of votes and moving forward:
CC 7 Community Advisory Commission: Change focus to housing CC 10 Escuela Parkway Traffic Safety Review
Vice Mayor Chua expressed concern about having to wait 3-4 months for another round of prioritization to consider the other items that received some votes, but didn't reach the 3-vote threshold.
The council and staff discussed options, with Assistant City Manager Cano suggesting that for the next round, they could just vote on the remaining items that received at least 1 or 2 votes, rather than the full list of 10 Group 1 items. After discussion, it was decided to have a second round of voting, but only on the remaining items that had received at least 1 or 2 votes in the first round.
The City Council individually voted electronically for one additional item from those items in group one that received at least 1 or 2 votes to advance as a priority.
City Clerk Guzzetta read the results of the vote with the following item receiving a majority of votes and moving forward:
CC 8 Explore increasing stipend for planning commission
PUBLIC HEARINGS
4. Adopt a Resolution Approving a Site Development Permit, Conditional Use Permit, Vesting Tentative Map, Density Bonus Permit, Tree Removal Permit, and Environmental Assessment to Allow the Development of 43 Townhome Condominiums with 13 Accessory Dwelling Units and Associated Site Improvements at 1905 Tarob Court (Staff Contact: Jay Lee, Planning Director, 408-586-3077)
City Manager Thomas introduced the item. Principal Planner Van Hua presented the report, joined by Planning Director Lee and representatives from Toll Brothers.
Mayor Montano opened the public hearing.
There were the following public speakers:
1. Voltaire Montemayor
2. Loreto Quevedo Dimaandal
Mayor Montano closed the public hearing.
Toll Brothers representative Nick Kosla spoke about the history of Toll Brothers with the City and the project being considered.
After discussion, motion: to adopt Resolution No. 9341 to approve Site Development Permit No. SD23- 0011, Conditional Use Permit No. UP23-0007, Vesting Tentative Map No. MT23-0001, Density Bonus Permit No. DB23-0002, Tree Removal Permit No. TR23-0015, and Environmental Assessment No.
June 11, 2024 Milpitas City Council Minutes Page 4
EA23-0002 to allow the development of 43 townhome condominiums with 13 accessory dwelling units and associated site improvements at 1905 Tarob Court subject to the Conditions of Approval. .
Motion/Second: Councilmember Phan / Councilmember Lien
Motion carried by the following:
AYES: Mayor Montano, Vice Mayor Chua, Councilmember Barbadillo, Councilmember Lien, Councilmember Phan
NOES: None
ANNOUNCEMENTS AND FUTURE AGENDA ITEMS
Vice Mayor Chua suggested the creation of a "Housing Corner" on the City's website providing links to housing-related resources and suggested the matter be referred to the Community Advisory and Housing Commission.
Mayor Montano emphasized the importance of prioritizing the development of housing for very low-income individuals.
ADJOURNMENT
Mayor Montano adjourned the meeting at 8:09 PM.
Draft meeting minutes submitted by City Clerk, Suzanne Guzzetta
TENTATIVE CITY COUNCIL AGENDA ITEM LIST
as of 6/14/2024
August 13, 2024 – Special Meeting
CLOSED SESSION
INVOCATION (Councilmember Barbadillo)
PRESENTATION
•National Night Out Commendations for Police Chief and Fire Chief
CONSENT CALENDAR
1. Receive City Council calendar for August 2024 (City Clerk)
2. Approve City Council meeting minutes of June 18, 2024 (City Clerk)
3. Preview list of items for August 20, 2024 (City Clerk)
4. Councilmember Request List (City Clerk)
5. Commission Appointments (City Clerk)
6. Report of Emergency Actions during the Summer Recess (City Manager)
7. 475 Sycamore Drive Improvement Agreement (Public Works)
MILPITAS CITY COUNCIL
AGENDA ITEM REQUESTS
OPEN ITEMS
Request
No. Topic Submitted by:
Date
Requested
STATUS and/or DATE scheduled on City
Council meeting agenda:
1 Send a letter signed by the Mayor and City Council
to the County Administrator and Supervisor Lee,
asking the county to investigate the treatment of
horses by Chaparral Corporation at Ed Levine Park
and the adjacent Chaparral Ranch Chua 5/21/2024
This letter was sent to the County on June 7,
2024.
ACTIVE ITEMS
Request
No. Topic Submitted by:
Date
Requested
STATUS and/or DATE scheduled on City
Council meeting agenda:
2 Conduct a traffic study on Escuela Parkway to
address circulation concerns Montano 5/7/2024
Approved for prioritization at 6/11/24
meeting
3 Explore the possibility of augmenting the Planning
Commission stipend Barbadillo 4/16/2024
Approved for prioritization at 6/11/24
meeting
4 Explore changing or enhancing the focus of the
community advisory commission to add housing Chua 4/2/2024 Approved for prioritization at 6/11/24
meeting
5 Request that the Arts Commission explore
alternatives for future of statue in front of City Hall Phan 1/30/2024 An update was included in the 6/11/24
prioritization report.
6 Update the Commissioner Handbook to include an
option for outgoing commissioners to make
presentations to other commissions Chua 1/23/2024
An update was included in the 6/11/24
prioritization report.
7 Workshop for retailers focusing on best practices
and safety with plans for quarterly sessions Chua 1/23/2024 An update was included in the 6/11/24
prioritization report.
8 Explore possibility of naming the County library on
Main Street Phan 1/23/2024
An update was included in the 6/11/24
prioritization report.
9 Consideration of the 20% Low Income Below
Market Rate Housing Montano 12/5/2023
An update was included in the 6/11/24
prioritization report.
10 Bring back Bingo and the Tour at the Senior
Center Chua 11/7/2023
An update was included in the 6/11/24
prioritization report.
11 Referral for utility infrastructure cost on Main Street from Carlo to Corning Streets Montano 10/17/2023
An update was included in the 6/11/24
prioritization report.
12 Consider a possible ordinance or policy regarding
solicitations at home Barbadillo 10/3/2023
An update was included in the 6/11/24
prioritization report.
13 Main Street International Festival Lien 10/3/2023
An update was included in the 6/11/24
prioritization report.
14 Have the Police Chief direct staff to complete an
analysis in partnership with the County to
determine if it would be beneficial to have a
location where residents can pickup Narcan Chua 9/5/2023 An update was included in the 6/11/24
prioritization report.
15 Explore taking steps towards becoming a Charter
City Phan 9/5/2023
An update was included in the 6/11/24
prioritization report.
16 Human Resources Director to conduct a job fair
specific to the job openings at City Hall Chua 5/2/2023 An update was included in the 6/11/24
prioritization report.
17 Pickleball Pilot Project Chua 2/28/2023
An update was included in the 6/11/24
prioritization report.
18 Main Street Infrastructure Projects Montano 2/28/2023 An update was included in the 6/11/24
prioritization report.
19 Main Street Flooding at Library Chua 2/28/2023
An update was included in the 6/11/24
prioritization report.
20 Satellite Consulate Office Montano 2/28/2023
An update was included in the 6/11/24
prioritization report.
21 Have the City look into the possibility of a Citywide Senior Discount Barbadillo 2/7/2023
An update was included in the 6/11/24
prioritization report.
NOTE: Deferred and Completed Items are not listed
MILPITAS CITY COUNCIL
AGENDA ITEM REQUESTS
22 City Manager to look into defining either a
standalone teen center or updating information to
indicate the Senior Center also functions as a Teen
Center Chua 9/20/2022
An update was included in the 6/11/24
prioritization report.
23 Discuss converting vacant lot that was a basketball
court into a community garden at Vasona and
Adobe Montano 8/16/2022
An update was included in the 6/11/24
prioritization report.
24 City Manager look into implementing a workshop
for small businesses on the bidding process for
projects in the city Chua 8/9/2022
An update was included in the 6/11/24
prioritization report.
25 Quarterly or Monthly crime statistics on Homekey
Project Chua 6/7/2022
An update was included in the 6/11/24
prioritization report.
26 Memorial Plaque in honor of youth skateboarder
that passed away Montano 6/7/2022
An update was included in the 6/11/24
prioritization report.
27 Evaluate reopening the childcare center with a non-
profit organization running the center Montano 2/1/2022 An update was included in the 6/11/24
prioritization report.
28 Staff to look into mural Art on Great Mall Parkway
on the VTA owned Light rail pillars Montano 11/16/2021
An update was included in the 6/11/24
prioritization report.
29 Have a picture of Albert Vogel Sr. put up in the
Senior Center Montano 10/19/2021
An update was included in the 6/11/24
prioritization report.
30 Include a bust of Maria Lemire on the Mural in front of the Senior Center Montano 8/17/2021
An update was included in the 6/11/24
prioritization report.
31 Consider Community Museum and Park on Main
St. Phan 8/20/2019
Discussions with the property owner of this
site are ongoing.
ACTIVE ITEMS
Request
No. Topic Submitted by:
Date
Requested
STATUS and/or DATE scheduled on City
Council meeting agenda:
NOTE: Deferred and Completed Items are not listed
CITY OF MILPITAS
AGENDA REPORT
(AR)
Item Title: Consider the Recommendation from Mayor Montano for Appointments to City Commissions (Contact: Mayor Montano, 408-586-3024)
Category: Consent Calendar-Leadership and Support Services Meeting Date: 6/18/2024
Recommendation: Receive the recommendation from Mayor Montano and approve appointments to City Commissions
Background:
The City of Milpitas has 13 Commissions (including the Measure F Oversight Committee), with members appointed by the Mayor and confirmed by the City Council. The Commissions advise the Milpitas elected officials on a variety of community interest and policy areas.
Any resident interested in serving on a City Commission must complete a Commission Application and submit the form to the City Clerk. Copies of the applications are provided to the Mayor for her consideration. Per Government Code 40605, in a general law city where the office of Mayor is an elective office, the Mayor, with the approval of the City Council, shall make all appointments to boards, commissions, and committees unless otherwise specifically provided by statute.
Current Commissioners may seek to be reappointed upon the expiration of their current term, but reappointment to a new term is not automatic. Those Commissioners seeking reappointment must contact the City Clerk and the Mayor to convey their request. Re-appointment must be recommended by the Mayor and confirmed by the City Council.
Analysis:
Mayor Montano is making the following recommendations for appointment:
Economic Development and Trade Commission:
1. Appoint Jacob Sanchez to the Real Estate representative position with a term ending April 30, 2027.
Additional commission appointment recommendations from Mayor Montano may be transmitted separately as an additional attachment to the agenda.
All recommended Commissioner appointments have been reviewed and confirmed by the City Clerk’s office.
Fiscal Impact:
There is no fiscal impact associated with this item.
CEQA:
The action is continuing administrative or maintenance activity and is not a project pursuant to Cal. Code Regs., tit. 14, § 15378.
Recommendation:
Receive the recommendation from Mayor Montano and approve appointments to City Commissions.
Attachments:
Commissioner Applications
From: [email protected]
To: City Clerk
Subject: Online Form Submittal: Commission Applications Date: Tuesday, May 14, 2024 10:36:43 AM
CAUTION: EXTERNAL SENDER
This email originated from outside the organization. Do NOT click links or open attachments unless you recognize the sender and know the content is safe. Report suspicious messages to the IT Helpdesk.
Commission Applications
Commission /
Committee Applying
for:
Economic Development and Trade Commission
First Name Jacob
Last Name Sanchez
Address Type Business
Address
City San Jose
State Ca
Zip Code 95136
Phone Number
Email Address
Present Employer
BCCRE
Other Phone Field not completed.
Business Address
(Optional)
City San Jose
State Ca
Zip Code 95128
Occupation Commercial Real Estate Broker
Education: If Youth Field not completed.
Advisory Commission
applicant, indicate your
grade / school:
College, Professional,
Vocational, or other
schools attended
San Jose State University.
Major Subject Chemistry
Degree B.S. Chemistry
List community organizations to which you belong or have belonged (additional information may be attached).
Name of Organization IFMA
Member Field not completed.
Name of Organization Field not completed.
Member Field not completed.
Name of Organization Field not completed.
Member Field not completed.
If application is for Veterans Commission, indicate branch and service in any U.S. military organization (retired or active duty).
Branch of Military Field not completed.
Officer Field not completed.
Briefly describe the
personal qualifications
you possess which you
believe would be an
asset (additional
information may be
attached):
Throughout my career, I've been deeply committed to advocating for small businesses and community development. My focus is on promoting initiatives that not only foster the city's growth but also ensure its sustainability.
Having worked closely with businesses in Milpitas, such as the Rahima Foundation, USI Networks, Peak Precision, Sival Tech, and Lumatas BioSystems, I've gained invaluable insights into business dynamics. This experience allows me to tailor economic development strategies that attract and retain companies, ultimately driving job creation and revenue growth.
As a skilled dealmaker, I understand the importance of creative solutions, especially in challenging economic climates.
Leveraging my extensive network of developers, commercial lenders, investors, and business owners, I strive to craft mutually beneficial deals that fuel economic expansion.
Moreover, my listings in San Jose, Santa Clara, Newark, and Fremont provide me with a comprehensive understanding of regional trends. This broader perspective enables me to gauge the pace of development across the area and adapt strategies accordingly.
Upload a File Field not completed.
Date 5/14/2024
By submitting this form, I confirm I have sufficient time to devote to this responsibility and will attend the required meetings if I am appointed to fill a future vacancy. I hereby certify that all statements contained in this application are true.
Name Jacob Ramon Sanchez
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CITY OF MILPITAS
AGENDA REPORT
(AR)
Item Title: Adopt a Resolution Delegating Authority to the City Manager or Designee to Approve and Execute Project-Related Documents and Urgent Administrative Items During the City Council Summer Recess (Staff Contact: Matt Cano, Assistant City Manager, 408-586-3012)
Category: Consent Calendar-Leadership and Support Services Meeting Date: 6/18/2024
Recommendation: Adopt a resolution delegating authority to the City Manager, or their designee, to approve and execute project-related documents, including contract documents and urgent administrative items during the City Council and City of Milpitas Housing Authority summer recess from the last City Council meeting held in June through August 13, 2024.
Background
The City Council and City of Milpitas Housing Authority have a scheduled recess between the last City Council meeting in June and August 13, 2024, during which no regular City Council meetings will take place, although a special meeting on August 5, 2024, is being considered for the sole purpose of reviewing potential November 2024 ballot measures To ensure that critical services and projects continue and are completed on time, it may be necessary to take action during Council recess. Therefore, it is requested that the City Council and City of Milpitas Housing Authority authorize the City Manager, or their designee, to take appropriate action during the recess.
Analysis
Authorizing the City Manager, or their designee, to take appropriate actions, including signing contracts within City Council financial authority under the Municipal Code, will ensure projects stay on schedule and that the City continues to provide vital services to the community. Deferring these actions until after the Council recess could lead to additional costs or delays to projects or services. A report summarizing any actions taken during the recess by the City Manager or their designee under this delegated authority will be presented to the City Council on August 13, 2024.
Policy Alternative
Alternative: Do not approve the requested delegation of authority Pros: Retains Council approval authority
Cons: Will not enable timely action on urgent project and administrative needs to ensure continued provision of vital services to the community.
Reason for not Recommending: Will not allow timely action to ensure the continued delivery of services to the community and time sensitive actions on projects during the Council recess.
Fiscal Impact
Approval of any potential agreements or contracts are anticipated to be within the Council approved budget therefore, there is no fiscal impact.
CEQA
The City Council delegation of authority is exempt from CEQA pursuant to CEQA Guideline 15061(b)(3) as it can be seen with certainty that the delegation does not have the potential to cause a significant effect on the environment as it does not involve the approval of any particular project. Further, this action is exempt pursuant to CEQA Guideline 15378(b)(4) as a governmental fiscal activity which does involve any commitment
to any specific project. Although the delegation may involve various projects, those projects received sufficient and appropriate CEQA review at the time of approval.
Recommendation
Approve the delegation of authority to the City Manager, or their designee, to approve and execute project- related documents, including contract documents, and urgent administrative items during the City Council and City of Milpitas Housing Authority summer recess from the last City Council meeting held in June through August 13, 2024.
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MILPITAS AND
THE HOUSING AUTHORITY TEMPORARILY DELEGATING AUTHORITY
TO THE CITY MANAGER OR DESIGNEE TO APPROVE AND EXECUTE
PROJECT-RELATED DOCUMENTS AND URGENT ADMINISTRATIVE ITEMS
DURING THE CITY COUNCIL SUMMER RECESS
WHEREAS, the City Council and the Housing Authority have a scheduled recess between the last City Council meeting in June and August 13, 2024, during which no regular City Council meetings will take place; and
WHEREAS, it is necessary to ensure that critical services and projects continue and are completed on time during the Council recess; and
WHEREAS, authorizing the City Manager, or their designee, to take appropriate actions, including signing contracts within the City Council’s financial authority under the Municipal Code, will ensure projects stay on schedule and that the City continues to provide vital services to the community; and
WHEREAS, deferring these actions until after the Council recess could lead to additional costs or delays to projects or services; and
WHEREAS, a report summarizing any actions taken by the City Manager or their designee during the recess under this delegated authority will be presented to the City Council on August 13, 2024; and NOW, THEREFORE, the City Council of the City of Milpitas and the Housing Authority hereby finds, determines, and resolves as follows:
1. The City Manager, or their designee, is authorized to take appropriate actions, including the approval and execution of project-related documents and urgent administrative items exceeding $100,000, during the City Council and Housing Authority summer recess from the last City Council meeting held in June through August 13, 2024.
2. A report summarizing any actions taken by the City Manager or their designee during the recess under this delegated authority will be presented to the City Council on August 13, 2024.
PASSED AND ADOPTED this 18th day of June 2024, by the following vote:
AYES: (0)
NOES: (0)
ABSENT: (0)
ABSTAIN: (0)
ATTEST: APPROVED:
2 Resolution No. XXXX
_____________________________ ____________________________ Suzanne Guzzetta, City Clerk Carmen Montano, Mayor
APPROVED AS TO FORM:
_____________________________
Michael Mutalipassi, City Attorney
CITY OF MILPITAS
AGENDA REPORT
(AR)
Item Title: Approve a Community Investment Fund Grant for Milpitas Unified School District Adult Education for Workforce Development and Educational Services (Staff Contact: Alex Andrade, Director of Economic Development, 408-586-3046; Margaret Tamisiea, Senior Special Projects Associate, 408-586-3047) Category: Consent Calendar-Community Development
Meeting Date: 6/18/2024
Recommendation: Approve a Community Investment Fund grant that provides workforce development and educational services in the amount of $29,000 for Milpitas Unified School District Adult Education to support the early childhood education paraprofessional training program.
BACKGROUND:
Due to the wide-ranging economic, social and health challenges caused by the unprecedented COVID-19 pandemic, the City Council expressed a desire to assist the Milpitas community with a workforce development initiative, with the goals of helping to rebuild the local economy while assisting residents to return to the workforce and/or improve skillsets to move into career ladder employment opportunities. In addition, the City Council agreed to explore funding to support career pathways. On December 14, 2021, the City Council approved the Workforce Development Program of $300,000, formerly funded with American Rescue Plan Act (ARPA) monies1, for beneficiaries that have been adversely affected and/or expended resources in responding to the COVID-19 public health emergency.
Community-based organizations that have received Workforce Development Program funding include the following, totaling approximately $245,000:
•Milpitas Youth Force (MYF) FY 2022 and 2023
•First 5 Santa Clara County
•Rising Sun Center for Opportunity
•Build It Green
•Milpitas Unified School District (MUSD) Adult School Career Training Center •SEMI Foundation
ANALYSIS:
According to data from the California Department of Education (CDE), there is a shortage of teaching staff throughout the state. Santa Clara County and local agencies are in dire need of Early Childhood Education (ECE) site directors, teachers, and paraprofessionals for preschool and after-school programs. The City of Milpitas has partnered with Milpitas Adult Education – MUSD (Milpitas Adult Education) providing financial support for workforce programs and career pathways such as résumé writing and job search skills to assist Milpitas residents negatively impacted by COVID-19 and the consequent changing economic conditions.
Based on direction from the City Council and discussions at the City School Collaborative on October 31, 2023, staff has identified an early childhood education paraprofessional training program at the Milpitas Innovation Campus Career Center for potential funding through the City Workforce Development Program. 1 City Council April 16, 2024, Item #7 Reallocation of American Rescue Plan Act Funds recommended reallocation of program appropriations in the ARPA Fund to the General Fund to meet the federal grant requirement to obligate all ARPA funds by December 31, 2024 and expend all ARPA funds by December 31, 2026. https://milpitasca.portal.civicclerk.com/event/1706/files/report/310
Milpitas Adult Education
Milpitas Adult Education has been serving the community since 1954 as a public school for adultsThe school’s curriculum is aligned to state-mandated standards for adult schools.
The Milpitas Innovation Campus Career Center offers a paraprofessional training program (Program) with 20 hours of instruction. Paraprofessionals provide direct assistance to teachers and students within a classroom.
The Program includes self-directed study in the form of readings and assignments, and covers the skills needed to successfully work in an Early Childhood Education classroom setting.
The Program will serve a total of 40 students. The first cohort of 20 students will start the Program in October and the second cohort of 20 students will start the Program in March. Major topics of study in this Program include English Language Arts, Mathematics, and Soft Skills needed to work in a classroom setting.
The Instructional Core Competencies of the Program include:
•Understanding the value of providing instructional and other direct services to all students, specifically in ECE classrooms.
•Understanding the roles and responsibilities of certificated/licensed staff and paraprofessionals in ECE classrooms.
•Ability to practice ethical and professional standards of conduct, including the requirements of confidentiality.
•Ability to communicate with colleagues, follow instructions, and use problem-solving and other skills that will enable the paraeducator to work as an effective member of the instructional team. •Ability to provide positive behavioral support and management. •Awareness of diversity among the children, youth, families, and colleagues with whom they work. •Knowledge and application of the elements of effective instruction to assist teaching and learning as developed by the certificated/licensed staff in a variety of settings including ECE classrooms and programs in Milpitas.
•Knowledge of and ability to follow health, safety, and emergency procedures of the employing agency. •Awareness of personal care and/or health-related support.
Upon successful completion of the course, the student may take the Educational Testing Services (ETS) ParaPro standardized exam. Passing the exam gives the students an industry-recognized certificate that satisfies industry requirement for employment as a paraprofessional in an Early Childhood Education.
The measurable outcome of the Program include:
1. 40 students will complete the Program.
2. Students will pass the ParaPro test at a recommended score.
3. The 10 individuals who achieve the highest scores on the ParaPro test will be placed into on-the- job training (OJT) positions.
4. Employment in the ECE field – applicants will be asked to complete a Letter of Interest agreement to work in an ECE program in the City of Milpitas following completion of the Program.
The MUSD Innovation Campus Career Center will provide job placement assistance for all students who pass the ParaPro test. In addition, ten students will be placed in on-the-job training positions. These paid paraprofessional positions will be at MUSD Child Development Centers (Rose and Sunnyhills).
This workforce development program complements the Office of Economic Development’s Workforce Development and Education Strategy under the May 5, 2020, adopted Economic Development Strategy, which outlines broader trends, opportunities, and concerns around the future of the local workforce, with an emphasis on building skills and opportunities for Milpitas residents.
FISCAL IMPACT:
The Workforce Development programs are fully funded under the City Council’s Community Investment Fund.
The City Council approved a total of $300,000 for workforce development programs on December 14, 2021.
The staff recommendation for this Agenda Report is to grant a total of $29,000 for MUSD Adult Education early childhood education paraprofessional training program.
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:
Approve the Workforce Development grant from the Community Investment Fund for workforce development and education services in the amount of $29,000. The grant will support Milpitas Unified School District Adult Education early childhood education paraprofessional training program.
Attachment(s):
A. MUSD Proposal and Budget
1 MILPITAS UNIFIED SCHOOL DISTRICT
I Introduction
Milpitas Adult Education has been serving the community since it was established in 1954 as a public school for adults. Currently, Milpitas Adult Education is the only adult school serving the city of Milpitas as part of the city’s unified school district. As such, our curriculum is aligned to state-mandated standards for adult schools.
We are also proud to be a Western Association of Schools and Colleges (WASC) accredited school.
According to data from the California Department of Education (CDE), there is a shortage of education staff throughout the state. County and local agencies are in dire need of Early Childhood Education (ECE) site directors, teachers, paraeducators for preschool and before and after school programs.
The vision of Milpitas Unified School District (MUSD) is to expand the ECE pathway for our community members. MUSD’s collaboration with the City of Milpitas is strong and innovative. In the next few years, upon completion of the MUSD Innovation Campus, MUSD will have an ECE Research Center, which will provide teen through adult learners with opportunities for apprenticeships and internships leading to certification in the ECE career pathways.
Additionally, building paraeducators capacity to work in an inclusive ECE classroom, which MUSD currently provides at its Rose and Sunnyhills Child Development Centers, is critical to supporting the primary roles of a paraprofessional. Paraprofessionals provide direct assistance to teachers and students within a classroom.
Paraprofessionals in an ECE class create a positive and inclusive learning environment that include both individual and small groups and are an imperative part of ECE education.
The City of Milpitas Community Investment funds directed to authorize five Investment Areas including diverse programs to directly help the residents and businesses. The Office of Economic Development and Workforce Development is focused on various programming categories that include at-risk youth, youth and adult, green/sustainable jobs, childcare workforce and to partner with the unhoused population on community beautification.
MUSD Milpitas Adult Education
Early Childhood Education- Milpitas USD-Community Investment Proposal 2 II The proposal
Foundational course Early Childhood Education (ECE) Paraprofessional Pathway at the Milpitas Innovation Campus Career Training Center. Our current Para course is 20 hours of instruction plus self- directed study in the form of readings and assignments and covers the skills needed to successfully work in the support of teachers and students in an Early Childhood Education classroom setting.
Major topics of study in this course include English Language Arts, Mathematics, and Soft Skills needed to work in a classroom setting. Upon successful completion of Foundational courses the applicant can then take the ETS ParaPro standardized exam and/or local school district exam. Successful completion of the ETS ParaPro exam gives the participant an industry-recognized certificate from the Educational Testing Services (ETS) and/or adult school Certificate of Achievement that can be used to satisfy industry requirement for employment as a paraprofessional in an Early Childhood Education, Elementary, Middle, High, and/or post- secondary classroom setting.
The Instructional Core Competencies include
●Understanding the value of providing instructional and other direct services to all students, specifically in the Early Childhood Education (ECE) classrooms.
●Understanding the roles and responsibilities of certificated/licensed staff and paraeducators in Early Childhood Education (ECE) classrooms.
●Ability to practice ethical and professional standards of conduct, including the requirements of confidentiality
●Ability to communicate with colleagues, follow instructions, and use problem-solving and other skills that will enable the paraeducator to work as an effective member of the instructional team ●Ability to provide positive behavioral support and management ●Awareness of diversity among the children, youth, families, and colleagues with whom they work ●Knowledge and application of the elements of effective instruction to assist teaching and learning as developed by the certificated/licensed staff in a variety of settings including Early Childhood Education (ECE) classrooms and programs in the city of Milpitas.
●Knowledge of and ability to follow health, safety, and emergency procedures of the employing agency ●Awareness of personal care and/or health-related support.
Assuming full capacity, the total approximate number of people receiving services: 2 cohorts of 20 participants each.
Connect students and Milpitas community members with resource access to receive on the job training through potential apprenticeships and internships, along with job placement assistance and job development workshops at the Milpitas Innovation Campus Career Center.
Placement services ensure that the City of Milpitas Community Investment funding resources enable students
MUSD Milpitas Adult Education
Early Childhood Education- Milpitas USD-Community Investment Proposal 3 to reach their individual potential and employment goals in ECE. Potential job placements included Milpitas Unified school district programs and Milpitas community programs including preschool, TK, and In-Home Milpitas based day care services.
Milpitas Adult Education’s proposed Pathways to Education will serve the above stated target population aligning its curriculum with current occupations for:
1. Paraprofessionals/Teaching Assistants in the ECE Classrooms:
Preschool and Transitional Kindergarten (TK), Required Adult to Student Ratio:
1:8 ratio Preschool
1:12 ratio for TK
About the services
The Paraprofessional Pathway (Instructional Component) will be provided at the Milpitas Adult School premises, equipped with state-of-the-art instructional technology.
Eligibility to enter the training program
1. Milpitas residents
2. High school equivalency diploma or equivalency
3. Out of the county participants will take a CASAS reading assessment (Comprehensive Adult Student Assessment Systems) Predetermine CASAS score eligibility Measurable Project Outcomes
The measurable outcomes are:
1. 40 Students will complete the program.
2. Students pass the test at the recommended score.
3. Placement and OJT (on the job training) for 10 individuals who obtain the highest scores in the ParaPro test.
4. Students will secure employment in the early childhood education field**applicants will be asked to complete a Letter of Interest agreement to work in an ECE program in the city of Milpitas following completion of the program.
Budget Proposal for 02 cohorts of 20 individuals each
MUSD Milpitas Adult Education
Early Childhood Education- Milpitas USD-Community Investment Proposal 4 City of Milpitas-Educational Pathways
Budget Proposal for 2 cohorts
Each cohort of 20 Milpitas participants
Resource XXXX- CC XXXXXX
Certificated -1xxx:
Career Center CTE Teacher $5,000.00
Tutor services-remediation $618.22
Sub-Total - 1xxx $5,618.22
Classified-2xxx:
Clerical Support Staff $850.00
Sub-Total -2xxx $850.00
Benefits - 3xxx
CE Benefit/Burdens teacher $1,650.00
CL Benefit/Burdens Innovation Campus site $195.00
Sub-Total -3xxx $1,845.00
Office Supplies 4xxx
Instructional supply $500.00
Services - 5xxx
ParaPro Testing for 40 students @$65.00 $2,600.00
OJT 30 hours of paid internship for 10 students @$25.00 hour $7,500.00 TB and Fingerprinting for 10 students $800.00
Workshop training promotional material for 40 students/includes CPR training and certification $8,000.00
$18,900
Total 1xxx-5xxx $27,713.22
Indirect Cost Rate Applied 4.58% $1,269
BALANCE $28,982.49
MUSD Milpitas Adult Education
Early Childhood Education- Milpitas USD-Community Investment Proposal 5 Milpitas USD in-kind contributions for the proposal
Include:
●Volunteers for pre-assessment and onboarding applicants ●Milpitas Innovation Campus facility use
●Custodial support covered from Adult Ed budget
●One-time $25.00 application program participation (waived) ●CalWORKs funds for eligible students
MUSD Milpitas Adult Education
Early Childhood Education- Milpitas USD-Community Investment Proposal 6
MUSD Milpitas Adult Education
Early Childhood Education- Milpitas USD-Community Investment Proposal 7
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CITY OF MILPITAS
AGENDA REPORT
(AR)
Item Title: Approve an Amendment to the Agreement with Housekeys to Execute a One- Year Extension for Administration of the Below Market Rate Homeownership Program (Staff Contact: Alex Andrade, Economic Development Director, 408- 586-3046 and Robert Musallam, Housing and Neighborhood Services Administrator, 408-586- 3275)
Category: Consent Calendar-Community Development
Meeting Date: 6/18/2024
Recommendation: Accept and approve a budget appropriation of $150,000 from the Housing Authority Fund and authorize the City Manager or designee to execute an amendment to the agreement with Housekeys exercising a one-year contract option for administration of the Below Market Rate Homeownership Program.
BACKGROUND:
The City of Milpitas Below Market Rate Homeownership Program (BMR) is designed to assist low-and moderate-income households become first time homeowners. The BMR portfolio is comprised of 278 homeownership units. These units became a part of the City’s homeownership portfolio via the former Redevelopment Agency that provided financial assistance to developers in creating housing. In exchange for the financial assistance, the development community allocated a percentage of the units as affordable.
Historically, the City has administered the management, purchase, and sale of these units.
On June 19, 2018, the City adopted an Affordable Housing Ordinance which requires residential developments of 10 or more units to make 15% of the total units of the development project affordable. As a result of the Ordinance, the City is expected to add more than 50 homeownership units to its portfolio over the next three years. The amount of time needed to sell and monitor these units required staff to seek external resources to support the City BMR. This report provides information on Housekeys, the City BMR third-party administrator, who specializes in streamlining the administration of Below Market Rate programs and who does so for more than 15 cities across California.
On September 5, 2023, City Council approved a one-year contract for $200,000, with four (4) one-year options estimated at a cost of $200,000 per year, with Housekeys to manage the City’s homeownership units (Attachment 1).
ANALYSIS:
During our initial analysis of service providers providing BMR administrative services, Housekeys was the sole BMR program administration servicer in the Bay Area that had the capacity to take on Milpitas’ homeownership portfolio. Staff researched BMR program administrators and, due to the scope of work, only found two other administrator options, Rise Housing and Alta Housing. Rise Housing was unable to provide a bid for services as they did not have the capacity to take on additional public agency services. Alta Housing services cities in the northern part of Santa Clara County and Milpitas is out of their service area. The City moved forward with staff’s recommendation to contract with Housekeys due to their strong infrastructure and excellent capacity to integrate and handle the City’s BMR needs.
Housekeys currently is working with City staff to create detailed program guidelines and conduct an inventory and assessment of the City’s BMR homeownership portfolio. In the last year, Housekeys created the City BMR homeownership website, a 24/7 portal which allows current and prospective BMR owners to submit documentation and requests at their convenience as well as access their documents more readily.
By exercising the one-year option for FY 2024-25, Housekeys will continue being the transaction coordinator for all real estate transactions, including ensuring affordability deeds are recorded and conducting resale calculations and refinancing requests. Housekeys will continue to assist with the sale and resale of units, the selection process, collection of fees, and any monitoring, compliance, resolution, or loss mitigation needed.
Housekeys also will ensure City units are not subject to fraudulent activity from homeowners who are in violation of their BMR participation agreement.
In the upcoming year, Housekeys will conduct webinar and pre-recorded orientations. Housekeys will also conduct home buyer education and training classes, which are a requirement to apply for the Milpitas BMR.
Quarterly reports will continue to be sent to City staff, and any general inquiry or loan request from the public will receive a response within 72 business hours. Housekeys will also finish completion of certification letters to homeowners to help the owners and the City with data collection compliance.
Staff recommends the authorization of exercising the first of four one-year options with Housekeys (Attachment 2). The BMR administration cost is $200,000 to administer the 278 existing units in our portfolio for FY 24-25.
In FY 2023-24, due to starting services in October 2023, the City paid Housekeys a $50,000 program startup fee and $112,500 in administration fees for FY 2023-24.
Staff will return to City Council annually via the budget process for approval should the remaining options be executed. Each subsequent year will be charged based on the number of units Housekeys has to manage in our portfolio. Staff recommends allocating the Housekeys FY 2024-25 contract amount of $200,000 from the Housing Authority Fund.
POLICY ALTERNATIVE(S):
Alternative 1: Do not execute a one-year option with Housekeys to manage the City’s BMR Homeownership portfolio.
Pros: Funds would not be spent on this priority.
Cons: Staff does not have the resources to administer the City BMR homeownership portfolio. If the first year option is not exercised, the Housing Division current and future housing demands and Council priorities may be negatively impacted.
Reason not recommended: The City’s first residential development to satisfy the Affordable Housing Ordinance added four BMR units to the City’s portfolio. In June 2022, City staff completed the sale of 4 units without third party assistance. These transactions required extraordinary staff resources and time to execute, while operating the overall Housing work program with limited resources. Staff expect an increase in BMR units in the coming years, and outsourcing the BMR Program allows the Housing team to focus on the increasing workload related to unhoused services and other Council-related Housing objectives as needed.
FISCAL IMPACT:
The fiscal impact includes $200,000 being utilized from the Housing Authority Fund. The FY 2024-2025 Adopted Operating Budget appropriated $50,000 for the Housekeys first year option. Staff requests City Council to appropriate an additional $150,000 to fully fund this first year option in FY 2024-25. The Housing Authority Fund currently has approximately $2,478,877 in fund balance available. Future Housekeys contract options, if exercised and appropriated through the annual budget process, would be supported with Housing Authority Fund monies.
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):
The action being considered has no potential for causing a significant effect on the environment and is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3).
RECOMMENDATION:
Accept and approve a budget appropriation of $150,000 from the Housing Authority Fund and authorize the City Manager or designee to execute an amendment to the agreement with Housekeys exercising a one-year contract option for administration of the Below Market Rate Homeownership Program.
ATTACHMENT(S):
Attachment 1: Housekeys General Services Agreement
Attachment 2: One-Year Option Extension
Attachment 3: Budget Change Form
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CITY OF MILPITAS AGREEMENT FOR BELOW MARKET RATE PROGRAM ADMINISTRATION 1. PARTIES AND DATE. This Agreement for Below Market Rate (BMR) Program Administration (Agreement) is made and entered into as of ________________ (Effective Date) by and between the City of Milpitas, a municipal corporation organized under the laws of the State of California with its principal place of business at 455 E. Calaveras Boulevard, Milpitas, California 95035 (City) and Housekeys Inc., a California corporation with its principal place of business at 385 Digital Drive, Morgan Hill, CA 95037 (Contractor). City and Contractor are sometimes individually referred to as Party and collectively as Parties in this Agreement. 2. RECITALS. 2.1 Contractor. Contractor desires to perform and assume responsibility for the provision of certain Below Market Rate Program Administration required by City on the terms and conditions set forth in this Agreement. Contractor represents that it is experienced in providing BMR Program Administration to public clients, is licensed in the State of California, and is familiar with the plans of City. 2.2 Project. City desires to engage Contractor to render such services for the administration of the Citys BMR Home Ownership Portfolio (Project) as set forth in this Agreement. 3. TERMS. 3.1 Scope of Services and Term. 3.1.1 General Scope of Services. Contractor promises and agrees to furnish to City all labor, materials, tools, equipment, services, and incidental and customary work necessary to fully and adequately supply the services and advice on various issues affecting the decisions of City regarding the Project and on other programs and matters affecting City (Services). The Services are more particularly described in Exhibit A attached hereto and incorporated herein by reference. All Services shall be subject to, and performed in accordance with, this Agreement, the exhibits attached hereto and incorporated herein by reference, and all applicable local, state and federal laws, rules and regulations. 3.1.2 Term. The initial term of this Agreement shall be from the Date first written above to June 30, 2024, unless earlier terminated as provided herein. The term shall include four (4) one-year options to extend the contract, subject to yearly City Council budget approval. The City reserves the right to review the Contractors performance at the end of each year and cancel all or part of the Agreement. 3.2 Responsibilities of Contractor.
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2 3.2.1 Control and Payment of Subordinates; Independent Contractor. The Services shall be performed by Contractor or under its supervision. Contractor will determine the means, methods and details of performing the Services subject to the requirements of this Agreement. City retains Contractor on an independent contractor basis and not as an employee of City. Contractor retains the right to perform similar or different services for others during the term of this Agreement. Any additional personnel performing the Services under this Agreement on behalf of Contractor shall also not be employees of City and shall at all times be under Contractor's exclusive direction and control. Contractor shall pay all wages, salaries, and other amounts due such personnel in connection with their performance of Services under this Agreement and as required by law. Contractor shall be responsible for all reports and obligations respecting such additional personnel, including, but not limited to: social security taxes, income tax withholding, unemployment insurance, disability insurance, and workers' compensation insurance. 3.2.2 Schedule of Services. Contractor shall perform the Services expeditiously, within the term of this Agreement, and in accordance with the Schedule of Services set forth in Exhibit B attached hereto and incorporated herein by reference. Contractor represents that it has the skilled personnel required to perform the Services in conformance with such conditions. In order to facilitate Contractor's conformance with the Schedule, City shall respond to Contractor's submittals in a timely manner. Upon request of City, Contractor shall provide a more detailed schedule of anticipated performance to meet the Schedule of Services. 3.2.3 Conformance to Applicable Requirements. All work prepared by Contractor shall be subject to the approval of City. 3.2.4 Substitution of Key Personnel. Contractor has represented to City that certain key personnel will perform and coordinate the Services under this Agreement. Should one or more of such personnel become unavailable, Contractor may substitute other personnel of at least equal competence and experience upon written approval of City. In the event that City and Contractor cannot agree as to the substitution of key personnel, City shall be entitled to terminate this Agreement for cause. As discussed below, any personnel who fail or refuse to perform the Services in a manner acceptable to City, or who are determined by City to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project or a threat to the safety of persons or property, shall be promptly removed from the Project by Contractor at the request of City. The key personnel for performance of this Agreement are as follows: Thomas J. Clark. 3.2.5 City's Representative. City hereby designates Robert Musallam, or his or her designee, to act as its representative for the performance of this Agreement (City's Representative). City's Representative shall have the power to act on behalf of City for all purposes under this Agreement. Contractor shall not accept direction or orders from any person other than City's Representative or his or her designee. 3.2.6 Contractor's Representative. Contractor hereby designates Christopher Jue, or his or her designee, to act as its representative for the performance of this Agreement (Contractor's Representative). Contractor's Representative shall have full authority to represent and act on behalf of Contractor for all purposes under this Agreement. Contractor's Representative shall supervise and direct the Services, using his or her best skill and attention, and shall be responsible for all means, methods, techniques, sequences and procedures and for the satisfactory coordination of all portions of the Services under this Agreement.
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3 3.2.7 Coordination of Services. Contractor agrees to work closely with City staff in the performance of Services and shall be available to City's staff, contractors and other staff at all reasonable times. 3.2.8 Standard of Care; Performance of Employees. Contractor shall perform all Services under this Agreement in a skillful and competent manner, consistent with the standards generally recognized as being employed by contractors in the same discipline in the State of California. Contractor represents and maintains that it is skilled in the calling necessary to perform the Services. Contractor warrants that all employees and subcontractors shall have sufficient skill and experience to perform the Services assigned to them. Finally, Contractor represents that it, its employees and subcontractors have all licenses, permits, qualifications and approvals of whatever nature that are legally required to perform the Services, including any required business license, and that such licenses and approvals shall be maintained throughout the term of this Agreement. As provided for in the indemnification provisions of this Agreement, Contractor shall perform, at its own cost and expense and without reimbursement from City, any services necessary to correct errors or omissions which are caused by Contractor's failure to comply with the standard of care provided for herein, and shall be fully responsible to City for all damages and other liabilities provided for in the indemnification provisions of this Agreement arising from the Contractors errors and omissions.. Any employee of Contractor or its subcontractors who is determined by City to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project, a threat to the safety of persons or property, or any employee who fails or refuses to perform the Services in a manner acceptable to City, shall be promptly removed from the Project by Contractor and shall not be re-employed to perform any of the Services or to work on the Project. 3.2.9 Laws and Regulations. Contractor shall keep itself fully informed of and in compliance with all local, state and federal laws, rules and regulations in any manner affecting the performance of the Project or the Services, including all Cal/OSHA requirements, and shall give all notices required by law. Contractor shall be liable for all violations of such laws and regulations in connection with Services. If Contractor performs any work knowing it to be contrary to such laws, rules and regulations and without giving written notice to City, Contractor shall be solely responsible for all costs arising therefrom. Contractor shall defend, indemnify and hold City, its officials, officers, employees and agents free and harmless, pursuant to the indemnification provisions of this Agreement, from any claim or liability arising out of any failure or alleged failure to comply with such laws, rules or regulations. 3.2.10 Insurance. Contractor shall not commence work for the City until it has provided evidence satisfactory to the City it has secured all insurance required under Exhibit D (Insurance Requirements), attached hereto and incorporated herein by this reference. In addition, Contractor shall not allow any subcontractor to commence work on any subcontract until it has secured all insurance required therein. 3.2.11 Safety. Contractor shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out its Services, Contractor shall at all times be in compliance with all applicable local, state and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the work and the conditions under which the work is to be performed. Safety precautions as applicable shall include, but shall not be limited to: (A) adequate life protection and life saving equipment and procedures; (B) instructions in accident prevention for all employees and subcontractors, such as safe walkways, scaffolds, fall protection ladders, bridges, gang planks, confined space procedures, trenching and shoring, equipment and other safety devices, equipment and wearing apparel as are necessary or lawfully required to prevent accidents or injuries; and (C) adequate facilities for the proper inspection and maintenance of all safety measures.
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4 3.3 Fees and Payments. 3.3.1 Compensation. Contractor shall receive compensation, including authorized reimbursements, for all Services rendered under this Agreement at the rates set forth in Exhibit C attached hereto and incorporated herein by reference. The total compensation shall not exceed Two Hundred Thousand Dollars ($200,000) per year without written approval of Citys City Manager. Extra Work may be authorized, as described below, and if authorized, will be compensated at the rates and manner set forth in this Agreement. 3.3.2 Payment of Compensation. Contractor shall be paid the annual fee outlined in section 3.3.1 by City in monthly installments paid by the first Friday of each month. Contractor will be provide a monthly billing statement to City. The statement shall describe the amount of Services and supplies provided since the initial commencement date, or since the start of the subsequent billing periods, as appropriate, through the date of the statement. City shall, within forty-five (45) days of receiving such statement, review the statement and pay all approved charges thereon. The City shall not be responsible for any payment of any portion of the annual fee incurred after termination of the Agreement. 3.3.3 Reimbursement for Expenses. Contractor shall not be reimbursed for any expenses unless authorized in writing by City. 3.3.4 Extra Work. At any time during the term of this Agreement, City may request that Contractor perform Extra Work. As used herein, Extra Work means any work which is determined by City to be necessary for the proper completion of the Project, but which the parties did not reasonably anticipate would be necessary at the execution of this Agreement. Contractor shall not perform, nor be compensated for, Extra Work without written authorization from City's Representative. 3.3.5 California Labor Code Requirements (a) Contractor is aware of the requirements of California Labor Code Sections 1720 et seq. and 1770 et seq., which require the payment of prevailing wage rates and the performance of other requirements on certain public works and maintenance projects (Prevailing Wage Laws). If the Services are being performed as part of an applicable public works or maintenance project, as defined by the Prevailing Wage Laws, and if the total compensation is $1,000 or more, Contractor agrees to fully comply with such Prevailing Wage Laws. Contractor shall defend, indemnify and hold the City, its officials, officers, employees and agents free and harmless from any claims, liabilities, costs, penalties or interest arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. It shall be mandatory upon the Contractor and all subcontractors to comply with all California Labor Code provisions, which include but are not limited to prevailing wages (Labor Code Sections 1771, 1774 and 1775), employment of apprentices (Labor Code Section 1777.5), certified payroll records (Labor Code Sections 1771.4 and 1776), hours of labor (Labor Code Sections 1813 and 1815) and debarment of contractors and subcontractors (Labor Code Section 1777.1). The requirement to submit certified payroll records directly to the Labor Commissioner under Labor Code section 1771.4 shall not apply to work performed on a public works project that is exempt pursuant to the small project exemption specified in Labor Code Section 1771.4. (b) If the Services are being performed as part of an applicable public works or maintenance project, then pursuant to Labor Code Sections 1725.5 and 1771.1, the Contractor and all subcontractors performing such Services must be registered with the Department of Industrial Relations. Contractor shall maintain registration for the duration of the Project and require the same of any subcontractors, as applicable. Notwithstanding the foregoing, the contractor registration requirements
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5 mandated by Labor Code Sections 1725.5 and 1771.1 shall not apply to work performed on a public works project that is exempt pursuant to the small project exemption specified in Labor Code Sections 1725.5 and 1771.1. (c) This Agreement may also be subject to compliance monitoring and enforcement by the Department of Industrial Relations. It shall be Contractors sole responsibility to comply with all applicable registration and labor compliance requirements. Any stop orders issued by the Department of Industrial Relations against Contractor or any subcontractor that affect Contractors performance of Services, including any delay, shall be Contractors sole responsibility. Any delay arising out of or resulting from such stop orders shall be considered Contractor caused delay and shall not be compensable by the City. Contractor shall defend, indemnify and hold the City, its officials, officers, employees and agents free and harmless from any claim or liability arising out of stop orders issued by the Department of Industrial Relations against Contractor or any subcontractor. 3.4 Accounting Records. 3.4.1 Maintenance and Inspection. Contractor shall maintain complete and accurate records with respect to all costs and expenses incurred and fees charged under this Agreement. All such records shall be clearly identifiable. Contractor shall allow a representative of City during normal business hours to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement. Contractor shall allow inspection of all work, data, documents, proceedings, and activities related to the Agreement for a period of three (3) years from the date of final payment under this Agreement. 3.5 General Provisions. 3.5.1 Termination of Agreement. (a) Grounds for Termination. Notwithstanding any other provisions of this Agreement, City may terminate this Agreement at any time, with or without cause, in its sole discretion, by giving notice in writing to Contractor of such termination. In the even of termination, the Contractor shall have the right and obligation to promptly assemble the work then in progress for the purpose of completing the work and delivering all materials and documents to the City. (b) Termination Without Cause. To ensure a seamless transition and facilitate the recovery of fees earned for services rendered, a minimum notice period of one months shall be observed for any termination without cause. The Contractor shall be entitled to receive compensation for the services rendered and fees earned up until the termination date. (c) Termination With Cause. In the event of termination for cause, the Contractor need be compensated only to the extent required by law. Contractor is only entitled to compensation for work adequately performed prior to termination. (d) Effect of Termination. If this Agreement is terminated as provided herein, City may require Contractor to provide all finished or unfinished Documents and Data, as defined below, and other information of any kind prepared by Contractor in connection with the performance of Services under this Agreement. Contractor shall be required to provide such document and other information within fifteen (15) days of the request.
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6 (e) Additional Services. In the event this Agreement is terminated in whole or in part as provided herein, City may procure, upon such terms and in such manner as it may determine appropriate, services similar to those terminated. 3.5.2 Delivery of Notices. All notices permitted or required under this Agreement shall be given to the respective parties at the following address, or at such other address as the respective parties may provide in writing for this purpose: Contractor: HouseKeys 358 Digital Drive Morgan Hill, CA 95037 Attn: Christopher Jue City: City of Milpitas 455 E. Calaveras Boulevard Milpitas, California 95035 Attn: Acting City Manager Such notice shall be deemed made when personally delivered or when mailed, forty-eight (48) hours after deposit in the U.S. Mail, first class postage prepaid and addressed to the party at its applicable address. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service. 3.5.3 Cooperation; Further Acts. The Parties shall fully cooperate with one another, and shall take any additional acts or sign any additional documents as may be necessary, appropriate or convenient to attain the purposes of this Agreement. 3.5.4 Attorneys Fees. If either party commences an action against the other party, either legal, administrative or otherwise, arising out of or in connection with this Agreement, the prevailing party in such litigation shall be entitled to have and recover from the losing party reasonable attorneys fees and all costs of such action. 3.5.5 Indemnification. With respect to all matters, Contractor agrees to indemnify, defend (with counsel reasonably satisfactory to the City) and hold harmless the City, its officers, officials, directors, agents, representatives, volunteers, and employees to the fullest extent allowed by law from any and all claims, actions, causes of action, losses, damages, liabilities and costs of every nature, including but not limited to all claims, actions, causes of action, losses, damages, liabilities for property damage, bodily injury, or death, and all costs of defending any claim, caused by or arising out of, or alleged to have been caused by or arise out of, in whole or in part, Contractors performance under this Agreement, except for any claims, actions, causes of action, losses, damages, costs or liabilities proximately caused by: (a) The sole negligence or willful misconduct of City. City shall not be liable for acts of Contractor in performing services described herein.
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7 3.5.6 Entire Agreement. This Agreement contains the entire Agreement of the parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings or agreements. This Agreement may only be supplemented, amended or modified by a writing signed by both Parties. 3.5.7 Governing Law. This Agreement shall be governed by the laws of the State of California. Venue shall be in Santa Clara County. 3.5.8 Time of Essence. Time is of the essence for each and every provision of this Agreement. 3.5.9 City's Right to Employ Other Contractors. City reserves the right to employ other Contractors in connection with this Project. 3.5.10 Successors and Assigns. This Agreement shall be binding on the successors and assigns of the parties. 3.5.11 Assignment or Transfer. Contractor shall not assign, hypothecate, or transfer, either directly or by operation of law, this Agreement or any interest herein without the prior written consent of City. Any attempt to do so shall be null and void, and any assignees, hypothecates or transferees shall acquire no right or interest by reason of such attempted assignment, hypothecation or transfer. 3.5.12 Construction; References; Captions. Since the Parties or their agents have participated fully in the preparation of this Agreement, the language of this Agreement shall be construed simply, according to its fair meaning, and not strictly for or against any Party. Any term referencing time, days or period for performance shall be deemed calendar days and not work days. All references to Contractor include all personnel, employees, agents, and subcontractors of Contractor, except as otherwise specified in this Agreement. All references to City include its elected officials, officers, employees, agents, and volunteers except as otherwise specified in this Agreement. The captions of the various articles and paragraphs are for convenience and ease of reference only, and do not define, limit, augment, or describe the scope, content, or intent of this Agreement. 3.5.13 Amendment; Modification. No supplement, modification, or amendment of this Agreement shall be binding unless executed in writing and signed by both Parties. 3.5.14 Waiver. No waiver of any default shall constitute a waiver of any other default or breach, whether of the same or other covenant or condition. No waiver, benefit, privilege, or service voluntarily given or performed by a Party shall give the other Party any contractual rights by custom, estoppel, or otherwise. 3.5.15 No Third Party Beneficiaries. There are no intended third party beneficiaries of any right or obligation assumed by the Parties. 3.5.16 Invalidity; Severability. If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect. 3.5.17 Prohibited Interests. Contractor maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Contractor, to solicit or secure this Agreement. Further, Contractor warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Contractor, any fee,
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8 commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability. For the term of this Agreement, no member, officer or employee of City, during the term of his or her service with City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom. 3.5.18 Equal Opportunity Employment. Contractor represents that it is an equal opportunity employer and it shall not discriminate against any subcontractor, employee or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex or age. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination. Contractor shall also comply with all relevant provisions of any minority business enterprise program, affirmative action plan or other related programs or guidelines currently in effect or hereinafter enacted. 3.5.19 Labor Certification. By its signature hereunder, Contractor certifies that it is aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for Workers Compensation or to undertake self-insurance in accordance with the provisions of that Code, and agrees to comply with such provisions before commencing the performance of the Services. 3.5.20 Authority to Enter Agreement. Contractor has all requisite power and authority to conduct its business and to execute, deliver, and perform the Agreement. Each Party warrants that the individuals who have signed this Agreement have the legal power, right, and authority to make this Agreement and bind each respective Party. 3.5.21 Counterparts. This Agreement may be signed in counterparts, each of which shall constitute an original. 3.5.22 Employment Adverse to City. Contractor shall notify City, and shall obtain Citys written consent, prior to accepting work to assist with or participate in a third-party lawsuit or other legal or administrative proceeding against City during the term of this Agreement. 3.5.23 Conflict of Employment. Employment by Contractor of personnel currently on the payroll of City shall not be permitted in the performance of this Agreement, even though such employment may occur outside of the employees regular working hours or on weekends, holidays or vacation time. Further, the employment by Contractor of personnel who have been on Citys payroll within one year prior to the date of execution of this Agreement, where this employment is caused by and or dependent upon Contractor securing this or related Agreements with City, is prohibited. 3.5.24 Survival. All rights and obligations hereunder that by their nature are to continue after any expiration or termination of this Agreement, including, but not limited to, the indemnification and confidentiality obligations, and the obligations related to receipt of subpoenas or court orders, shall survive any such expiration or termination. 3.5.25 Subcontracting. Contractor shall not subcontract any portion of the work required by this Agreement, except as expressly stated herein, without prior written approval of City. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement. 3.5.26 Wage Theft Prevention
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9 (a) Contractor, and any subcontractor it employs to complete work under this Agreement, shall comply with all applicable federal, state and local wage and hour laws. Applicable laws may include, but are not limited to, the Federal Fair Labor Standards Act, the California Labor Code and the Milpitas Minimum Wage Ordinance. (b) BY SIGNING THIS AGREEMENT, CONTRACTOR AFFIRMS THAT IT HAS DISCLOSED ANY FINAL JUDGMENTS, DECISIONS OR ORDERS FROM A COURT OR INVESTIGATORY GOVERNMENT AGENCY, FINDING IN THE FIVE (5) YEARS PRIOR TO EXECUTING THIS AGREEMENT THAT CONTRACTOR OR ITS SUBCONTRACTORS HAS VIOLATED ANY APPLICABLE WAGE AND HOUR LAWS. CONTRACTOR FURTHER AFFIRMS THAT IT OR ITS SUBCONTRACTOR(S) HAS EITHER FULLY SATISFIED EACH JUDGMENT, DECISION OR ORDER, OR, IF ANY JUDGMENT, DECISION OR ORDER HAS NOT BEEN FULLY SATISFIED, CONTRACTOR AFFIRMS THAT IT OR ITS SUBCONTRACTOR(S) IS CURRENTLY SATISFYING SAID JUDGMENT, DECISION OR ORDER THROUGH A PAYMENT OR ALTERNATIVE PLAN APPROVED BY THE APPLICABLE COURT/GOVERNMENT AGENCY AND THAT CONTRACTOR OR ITS SUBCONTRACTOR(S) ARE IN COMPLIANCE WITH SAID PLAN AS OF THE DATE OF EXECUTING THIS AGREEMENT. (c) If at any time during the term of this Agreement, a court or investigatory government agency issues a final judgment, decision or order finding that Contractor or a subcontractor it employs to perform work under this Agreement has violated any applicable wage and hour law, or Contractor learns of such a judgment, decision, or order that was not previously disclosed in its bid/proposal, Contractor shall inform the City no more than fifteen (15) calendar days after the judgment, decision or order becomes final or from the date of learning of the final judgment, decision or order. Contractor or its subcontractor(s) shall, within thirty (30) calendar days after notifying the City, either (i) fully satisfy any such judgment, decision, or order and provide the City with documentary evidence of satisfying said judgment, decision or order; or (ii) provide the City documentary evidence of a payment or other alternative plan approved by the court/government agency to satisfy the judgment, decision or order. If the Contractor or its subcontractor is subject to a payment or other alternative plan, the Contractor or its subcontractor shall continue to submit documentary evidence every thirty (30) calendar days during the term of the Agreement demonstrating continued compliance with the plan until the judgment, decision or order has been fully satisfied. (d) For purposes of this Section, a "final judgment, decision, or order" refers to one for which all appeals have been exhausted or the time period to appeal has expired. Relevant investigatory government agencies include: the United States Department of Labor, the California Division of Labor Standards Enforcement, the City, or any other governmental entity or division tasked with the investigation and enforcement of wage and hour laws. (e) Failure to comply with any part of this Section constitutes a material breach of this Agreement. Such breach may serve as a basis for immediate termination of this Agreement and/or any other remedies available under this Agreement and/or law. (f) Notice provided to the City shall be addressed to: Attention: Finance Director, 455 E. Calaveras Blvd. Milpitas, CA 95035. The Notice provisions of this Section are separate from any other notice provisions in this Agreement and, accordingly, only notice provided to the above address satisfies the notice requirements in this Section. [Signatures on the following page]
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10 SIGNATURE PAGE FOR AGREEMENT FOR BELOW MARKET RATE PROGRAM ADMINISTRATION BETWEEN THE CITY OF MILPITAS AND HOUSEKEYS IN WITNESS WHEREOF, the Parties have entered into this Agreement as of the date first written above. CITY OF MILPITAS Approved By: Ned Thomas, Acting City Manager Date Approved: Lauren Lai, CPA, MPA Finance Director/Risk Manager Approved As To Form: Michael Mutalipassi, City Attorney HOUSEKEYS Signature Name Title Date Approved As To Content: Alex Andrade, Director of Economic Development
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11 EXHIBIT A SCOPE OF SERVICES Description of the Project: This Scope of Services (Scope) details the roles and responsibilities that HouseKeys serves for its Clients. As a Third-Party Program Administrator (Administrator), HouseKeys is the Agencys interface with industry practitioners and the public. This ecosystem not only includes Applicants (e.g., buyers) and Program Participants (e.g., owners) - it also includes, but is not limited to project owners, mortgage lenders, real estate agents, and escrow/title officers. Service Breakdown 1. Documentation. Administrator will administer the program and assure Affordability Deed Restrictions are recorded and followed by all parties as applicable for each property. 2. Support and Education. Administrator will provide offsite support for service requests. Orientations and workshops will be held for residents of the Agency. Note: In Response to COVID-19 restrictions, content is streamed online via webinars and pre-recorded content available on HouseKeys-hosted program websites. a. Administrator shall conduct introductory Home Buyer Education/Training classes Homebuyer Orientation Classes prior to Program application. A minimum of 6 events will be held each year and at least 30 Weeks of Weekly Frequently Asked Question (FAQ) sessions will be open to all program applicants and participants. 3. Guidelines and Materials. Administrator will regularly update program guidelines and program materials in conjunction with Agency staff to reflect the Administrators administrative process for Program Administration including, but not limited to: applications, program pamphlets, resale calculations, selection processes, sale and resale of units, refinancing requests, collection of Agency fees and other applicable fees, and default monitoring/resolution process. Administrators objective will be to work alongside Agency Staff to incorporate learnings from the teams collective history with Affordability Programs in California. 4. Website Presence. Administrator will maintain an affordability program website presence that will link to the Agencys housing website. 5. Recordkeeping. Administrator shall maintain the Agencys existing records and files through a database-driven information retention and management system for the programs. All electronic records will be considered work products that are property of the Agency and will be available via data export. The Administrator shall update the Agencys records quarterly to ensure a coordinated seamless record keeping process. The database shall include the following at a minimum: a. For each ownership unit (new and existing): i. The address for each ownership unit ii. The level of affordability (e.g., Extremely Low, Very Low, Low, Moderate) iii. The current owner of record
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12 iv. The expiration date of the owner agreement v. The last date of recertification vi. The recertification status (updated annually) vii. The original sales price viii. The current resale restriction price ix. Dates of owner turn-over, as applicable 6. Reporting. Administrator shall provide a quarterly program summary report to the Agency with the following information. An abbreviated monthly report will accommodate each monthly invoice. a. For each owner unit (new and existing): i. The address for each ownership unit ii. The level of affordability (e.g., Very Low, Low, Moderate) iii. The current owner of record iv. The last date of recertification and current recertification status b. Current list of defaults and pending defaults c. Actions taken to date d. Next steps, including dates 7. Services. Administrator will provide the following services: a. Making minor revisions to the Agencys existing program materials and legal documents. b. Overall management and implementation of specific program policies, including required reporting. c. Conducting income qualifications including review of assets, income, Verifications of Employment, and all other necessary approvals to ensure qualification for the Agency Programs (Ownership, Rental, Finance). d. Underwriting program applications in accordance with program requirements. e. Underwriting program compliance in accordance to restrictive covenants and project-specific program agreements f. Underwriting transaction compliance (e.g. refinances, transfers) to ensure they conform with restricted covenants and project-specific program agreements g. Preparing all program documents, overseeing proper execution thereof, and conducting final program approval reviews. h. Ensuring timely delivery of all necessary documents into escrow, and preparing escrow demands and funding requests. i. Preparation of program materials by revising the Agencys current documents. j. Calculating all pay off demands and issuing any disclosures and tax forms as required by State and/or Federal Law. k. Calculating the resale value of all ownership program homes as requested annually by the County. l. Work with Agency Staff to ensure a seamless and coordinated development of documents as it relates to the Affordability Program. Note 1: HouseKeys recommends that the Agency includes affordability requirements, the Administrators roles, and any fees related to affordable unit commitments in the conditions of approval to assure transparency at the earliest possible point in the entitlement process. HouseKeys charges Developers a 3%
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13 Fee up to a set cap (see Fee Schedule). This percentage is calculated using the sales price of the unit and is charged at the close of escrow when HouseKeys has an active contract with the Agency. 8. Transaction Coordination. Administrator shall act as transaction coordinator for all real estate transactions and will provide the Agency with a Fee Schedule. Where there is a conflict between the Administrators Fee Schedule and recorded Agreements (Legacy Agreements), Administrator will adjust fees to compensate for the difference with the understanding that newly drafted agreements will conform to the fee schedule. Note 1: In real estate industry terminology, a transaction side is defined as either working as an agent for the buyer or an agent for the seller; if the agent worked as both buyers agent and sellers agent it would count as two transaction sides. New Construction Sales are considered a single- sided transaction where HouseKeys only represents the buyer pool. The Developers sales team would serve the Seller and use its State-Approved Sales contract to represent the terms and condition of sale. HouseKeys suggests that an applicant pool goal should be to have at least 7 applicants for every 1 unit for sale or rent. Note 2: During the resale of an ownership unit, there are two sides of the transaction 1) the first-time home seller and 2) the eventual buyer who is selected by Lottery or an alternate selection process. This two-sided transaction has a higher cost as reflected on the HouseKeys fee schedule. This accounts not only for the work involved (eligibility, legal timelines, property condition), but also accounts for the legal liability and risk. Note 3: For an Acquisition, and Ownership Resale / Rehab Transaction Fee this is the most complicated transaction. Not only does it involve 2 sides, but it also involves two escrows. There is an initial escrow to complete the initial purchase of the property and a second escrow to complete the sale to the new buyer. During this time, HouseKeys serves as either an Agent to the Local Government Agency or as a Buyer. For HouseKeys to serve as buyer, an Assignment of the Agencys Option document must be signed and recorded. In cases where the Agency is purchasing the Unit, the Administrator will act as the Agency's agent. The Administrator will complete the acquisition transaction and then go on to manage the resale. Note 4: Transaction fees charged to homeowners for refinance transactions are charged for the time taken to ensure that proposed transaction complies with restrictive covenants. This can include a refinance with a mortgage lender or other types of transfers as referenced in the recorded document (E.g., Divorce, Estates, Inheritance, etc.) a. Administrator will coordinate document transmittals between buyers, borrowers, homeowners, developers, and Agency as needed. Administrator will be responsible for ensuring all documents submitted for Agency signatures are complete and accurate. Administrator will be responsible for making any necessary corrections to documents. b. Administrator will coordinate the timelines, meetings, inspections, and document signings that need to take place on the buyer side and seller side of these transactions. While the Asset Management team is focused on the transaction details, the Operations Team is managing the Applicant Pool, Lottery, and Selection Process. Administrator will also work with an escrow officer familiar with selling properties with a recorded deed restriction to ensure proper handling of funds and documentation.
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14 c. For Acquisition-Related transactions, Administrator will manage the holding period and maintain the property through to close of escrow. It is important to note that there may be situations where a legal matter arises related to the acquisition or resale. Administrator has experience working with attorneys to settle matters involving owners that challenge the recorded agreement or who are out of compliance with program requirements. There are also cases involving foreclosure, probate, and bankruptcy where the Administrator has experience managing through the transaction timeline. There may be cases where legal fee reimbursements are involved, or special project fees are charged. These will be presented to the Agency before work begins. d. Administrator coordinates the timelines, meetings, inspections, and document signings that need to take place on the buyer side and seller side of these transactions. While the Asset Management team is focused on the transaction details, the Operations Team is managing the Applicant Pool, Lottery, and Selection Process. 9. Monitoring, Compliance, and Loss Mitigation. Administrator shall work alongside Agency Staff to conduct monitoring to annually evaluate Program Owners (Counterpartys) compliance with the terms and conditions of the recorded deed restrictions and program guidelines including the following: a. Mailing monitoring letters to all the Program units. b. Reviewing in conjunction with Agency Staff, Agency or County Assessor data to assist in the process (e.g., water utility bills, property records). c. Review Agencys preliminary monitoring list to identify follow up actions required. d. Meet with Agency Staff to develop guidelines for acceptable default remedies (e.g., allowing rental of Program Units for hardship cases). e. Administrator shall work alongside Agency Staff to investigate and identify and cure potential program-related defaults including: i. Conduct follow up of those Program Owners (referred to as Counterparties) who do not submit their compliance documentation. ii. Reviewing information on calls from Program Unit neighbors and interested parties. iii. Conduct reasonable follow-up investigation to assess potential defaults including unit site visits. iv. Scheduled appointments with Counterparties to discuss compliance issues. f. For confirmed defaults, provide Counterparties with list of actions needed to remedy the default and conduct follow-up to monitoring compliance. i. Maintaining log of actions taken to remedy the defaults. g. For those defaults in which the Counterparties choose not to remedy the situation within a reasonable amount of time, Administrator will meet with Agency Staff to determine the course of action to pursue. Agency authorization will be sought for any legal action taken. h. Administrator will participate in legal deliberations at all Staff Levels and Council Decisionmakers as needed. i. Agency will provide a list of any current program participant defaults and actions taken to date. 10. Marketing. HouseKeys marketing philosophy is driven by a network effect approach. Each agency that joins the HouseKeys client base adds value to the network. This improves the feedback loop used to improve services, name recognition, program participation, and can lead
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15 to economies of scale. The HouseKeys Team wants to deliver this value in aggregate, but also must target the Agencys local residents and community members. This includes targeting the least likely to apply and working in compliance with federal laws addressing Affirmative Fair Housing Marketing, and will be done through some or all of the following actions a. All Materials will include proper fair housing logo and other federal and state-mandated disclosures b. Initial Campaign to Introduce HouseKeys to key employers, community organizations, religious organizations, trade associations, and small businesses c. Mailers and other collateral that go out within a .25 to .5-mile radius of each Opportunity listing featured in the MyHouseKeys Platform d. Local workshops targeting the groups above e. Participating in local events as public health restrictions (e.g. COVID-19) allow f. Online and Social Media Campaigns to share available opportunities g. Listings on popular websites and real estate aggregators (E.g. Craigslist, etc.) h. When appropriate and when the budget allows, Administrator will advertise in local media (radio, print, etc.) 11. Performance Measures. Administrator and the Agency will agree to mutually acceptable performance measures for program administration. These measures shall be included in the quarterly program summary report. a. General Inquiries: Respond within 72 business hours b. Loan Requests: Respond within 72 business hours, Complete requests within reasonable time, with weekly status updates for outstanding requests c. Program Orientations/Workshops: Minimum 6 per year, with more as needed for new opportunities d. Annual Ownership Monitoring: Send at least 2 rounds of annual certification letters to homeowners for compliance data collection e. Eligibility List: Maintain a minimum buyer-to-property ratio of 5:1 f. Application ID issuance: Available online year-round 24/7 with troubleshooting issues handled within 2 business days. Manual Application ID issuance will also take up to 2 business days. 12. Additional Service Descriptions. Administrator will provide the following additional services. a. Administrator shall build and maintain a group of qualified and eligible Program homebuyers at a minimum Buyer-to-Property ratio of 5:1. For Agencies that maintain an accruing Waitlist based on registration timestamp, HouseKeys will assign Application ID using the Timestamp and assign a Legacy Applicant Preference Assignment. b. Administrator will maintain a list of approved loan officers and lending operations eligible to provide mortgage lending for purchase and refinance transactions c. Administrator will maintain a list of approved real estate agents and brokers eligible to provide listing services to sellers for resale transactions* d. Administrator will maintain a list of appraisers for fair market valuations* e. Administrator will maintain a list of escrow officers who are familiar with program requirements and transaction compliance*
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16 f. Administrator will review individual program restrictions for terms and requirements as needed including shared equity programs, down payment assistance loans and any resale restriction agreements. g. Administrator will assist Agency staff with reports and presentations on the housing programs that HouseKeys administers. h. Administrator will provide training, analysis, and suggested improvements to the Affordability Program. i. Special Projects. There will be cases where Administrator will be asked to complete a Project that is outside of the contract scope. If project scope and terms are defined in writing, Administrator will agree to complete project at a specified billing rate.
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17 EXHIBIT B SCHEDULE OF SERVICES Consultant will invoice City on a monthly cycle. Consultant will include with each invoice a detailed progress report that indicates the amount of budget spent on each task. Consultant will inform City regarding any out-of-scope work being performed by Consultant. PROGRAM SETUP First 90 - 120 Days will involve getting the City of Milpitas Setup with the HouseKeys Templates and Operating System in prep to start fielding applicant inquiries and complete program transactions. In addition to the Program Setup, we will also use this time to confirm policies in the program manual and reporting protocols. $50,000 One-Time Fee to Start Contract Includes setting City up in the MyHouseKeys.Com Program Marketplace Payment, in full, is due upon contract approval and execution (signing by both parties) PROGRAM ADMINISTRATION While HouseKeys will provide the full-service scope of work from the date of start, the expectation will be that the City will budget for a full contract at this proposed annual fee, First installment is due on the 10th of the first full month following the execution of the contract, with subsequent payments due on the 10th of each month, or next business day, if the 10th is on a weekend day or holiday Transaction Fees Each City pays an all-inclusive Base Fee that is meant to create predictable billing cycles for our Agency clients. In addition to the Base Fee, Transaction Fees are charged in accordance with an annual Fee Schedule. Please note that Transaction Fees are charged to third parties at the point-of-service (e.g., New Construction Fees are charged to the Developer for delivering an eligible buyer and as part of their contribution to ongoing compliance costs, Resale Fees are charged to the homeowner or added to the Re-Sale Price of the Home). HouseKeys uses these fees to cover marketing costs and to compensate third parties for services performed, including HUD- Approved Counseling Agencies and outside Real Estate Agents. Onboarding In addition to the base cost and fee schedule, there is an Onboarding Process that can take between 30 days and 6 months. Onboarding costs and timelines depend on Agency-specific Scope of Work, the Agencys current recordkeeping standards, and team capacity. While HouseKeys does its best to accurately price its contracts, experience has shown that it takes 12 to 18 months of working as the Agencys Administrator to truly understand and calculate cost and scope. HouseKeys aims to work with Agencies who value standardization and who are willing to defer to HouseKeys best practices when it comes to program administration workflows, policies, and procedures. Two important check-ins during the first contract year will be the 6- month check-in and the 12-month check-in. During both exercises, the Agency and Administrator will be expected to evaluate costs and challenges to determine if a budget amendment is appropriate. The Agency will be expected to account for a possible increase in costs during the planning phase.
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18 EXHIBIT C COMPENSATION The initial term of this Agreement shall be from July 1, 2023 to June 30, 2024. The term shall include four (4) one-year options that could extend the contract through June 30, 2028. Each years extension is subject to City Council budget approval using the most current Contractor fee schedule. The following is a breakdown of the minimum compensation over the potential five years: FY 23-24 $50,000 start-up fee; $150,000 administration fee FY 24-25 $200,000 administration fee FY 25-26 $200,000 administration fee FY 26-27 $200,000 administration fee FY 27-28 $200,000 administration fee The minimum $200,000 administration fee reflects administration of the Citys 278 BMR homeownership units. For each option year, City and Contractor agree to price any additional units added to the portfolio to the FY23-24 fee schedule, as displayed below. The addition of units will be agreed to by amendment to this agreement. By March 31st of each year, City and Contractor will determine the subsequent years administrative fee based on the number of units in BMR portfolio and the fee schedule below. Number of Units under Management Cost Per Unit 201-300 Units $900 >301 Units $750
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19 EXHIBIT D INSURANCE REQUIREMENTS Please refer to the insurance requirements listed below. Those that have an X indicated in the space before the requirement apply to Contractors or Consultants Agreement. Contractor or Consultant shall procure and maintain for the duration of the 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, employees or subcontractors. 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 endorsements. Contractor or Consultant shall furnish City with copies of original endorsements affecting coverage required by this Exhibit D. 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 Contractors or Consultants insurer to provide complete, certified copies of all required insurance policies, including endorsements affecting the coverage required by these specifications. Commercial General Liability (CGL): ___ Coverage at least as broad 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 occurrence. 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. _X_ Coverage at least as broad as 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 $1,000,000.00 per occurrence. 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. ___ Coverage at least as broad as 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 $5,000,000.00 per occurrence. 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: _X_ Coverage at least as broad as ISO Form Number CA 0001 covering, Code 1 (any auto), of if Contractor or Consultant has no owned autos, Code 8 (hired) and 9 (non-owned), with limits no less than $1,000,000.00 combined single limit for bodily injury and property damage. ___ Coverage at least as broad as ISO Form Number CA 0001 covering, Code 1 (any auto), with limits no less than $5,000,000.00 combined single liit for bodily injury and property damage.
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20 ___ Garage keepers extra liability endorsement to extend coverage to all vehicles in the care, custody and control of the Contractor or Consultant, regardless of where the vehicles are kept or driven. Professional Liability (Errors and Omissions): _X__ Insurance appropriates to the Contractor or Consultants profession, with limit no less than $1,000,000.00 per occurrence or claim, $2,000,000.00 aggregate. ___ (If Design/Build), with limits no less than $1,000,000.00 per occurrence or claim, and $2,000,000.00 policy aggregate. ___ Insurance appropriates to the Contractor or Consultants profession, with limit no less than ______ per occurrence or claim, ______ aggregate Workers Compensation Insurance: _X_ Insurance as required by the State of California, with Statutory Limits, and Employers Liability Insurance with limit of no less than $1,000,000.00 per accident for bodily injury or disease. (Not required if Contractor or Consultant provides written verification it has no employees) The Employers Liability policy shall be endorsed to waive any right of subrogation as respects the City, its elected and appointed officials, officers, attorneys, agents, and employees. Builders Risk (Course of Construction): ___ Insurance utilizing an All Risk (Special Perils) coverage form, with limits equal to the completed value of the project and no coinsurance penalty provisions. If the project does not involve new or major reconstruction, at the option of the City, an Installation Floater may be acceptable. For such projects, a Property Installation Floater shall be obtained that provides for the improvement, remodel, modification, alteration, conversion or adjustment to existing buildings, structures, processes, machinery and equipment. The Property Installation Floater shall provide property damage coverage for any building, structure, machinery or equipment damaged, impaired, broken, or destroyed during the performance of the Work, including during transit, installation, and testing at the Citys site. Contractors or Consultants Pollution Legal Liability: ___ Contractors or Consultants pollution legal liability and/or Asbestos Legal Liability and/or Errors and Omissions (if project involves environmental hazards) with limits no less than $1,000,000.00 per occurrence or claim and $2,000,000.00 policy aggregate. If the Contractor or Consultant maintains higher limits than the minimums shown above, the City requires and shall be entitled to coverage for the higher limits maintained by the Contractor or Consultant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to City. Cyber Liability Insurance ___ Cyber Liability Insurance with limits not less than $1,000,000 per claim.
38077.00180\31932669.6 C2
21 Coverage shall be sufficiently broad to respond to the duties and obligations as is undertaken by Contractor or Consultant in this Agreement and shall include, but not be limited to, claims involving infringement of intellectual property, including but not limited to infringement of copyright, trademark, trade dress, invasion of privacy violations, information theft, damage to or destruction of electronic information, release of private information, alteration of electronic information, extortion, and network security. The policy shall provide coverage for breach response costs as well as regulatory fines and penalties, and credit monitoring expenses with limits sufficient to respond to these obligations. Surety Bonds: Contractor shall provide the following Surety Bonds: 1. ____ Bid Bond 2. ____ Performance Bond 3. ____ Payment Bond The Payment Bond and Performance Bond shall be in a sum equal to the contract price. Bonds shall be duly executed by a responsible corporate surety, authorized to issue such bonds in the State of California and secured through an authorized agent with an office in California. Other Insurance Provisions: The insurance policies are to contain, or be endorsed to contain the following provisions: _X_ Additional Insured Status and Primary/Non-Contributory Language: Contractors general liability and automobile liability policies shall be primary and shall not seek contribution from the Citys coverage and be endorsed to add the City and its elected and appointed officials, officers, attorneys, agents employees and volunteers 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 coverage for the additional insured on the general liability policy, ISO form CG 20 37 (or equivalent), is also required. The limits of insurance required in this Agreement may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella 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 (if agreed to in a written contract or agreement) before the Citys own insurance or self-insurance shall be called upon to protect it as a named insured. ___ Loss Payee Status Builders Risk/Course of Construction Insurance (applicable to Construction Contracts only) Contractor or Consultant may submit evidence of Builders Risk insurance in the form of Course of Construction coverage. Such coverage shall name the City as a loss payee as their interest may appear. ___ Notice of Cancellation, Suspension or Otherwise Voiding Policies:
38077.00180\31932669.6 C2
22 Each insurance policy required above shall contain or be endorsed to contain that coverage shall 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. _X_ Waiver of Subrogation: Contractor or Consultant hereby grants to City a waiver of any right to subrogation which any insurer of said Contractor or Consultant may acquire against the City by virtue of the payment of any loss under such insurance. Contractor or Consultant agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the City has 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 for all work performed by Contractor or Consultant, its employees, agents and subcontractors. ___ Completed Operations For Construction Agreements, Contractor shall maintain insurance as required by this Agreement to the fullest amount allowed by law and shall maintain insurance for a minimum of five (5) years following the completion of this project. In the event Contractor fails to obtain or maintain completed operations coverage as required by this Agreement, the City at its sole discretion may purchase the coverage required and the cost will be paid by Contractor. THE FOLLOWING PROVISIONS APPLY TO ALL AGREEMENTS Deductibles and Self-Insured Retentions (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 related 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 officials, 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 Management 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. Bests 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)
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23 1. The Retroactive Date must be shown and must be before the date of the contract or the beginning of contract 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. 3. If coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a Retroactive 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 Contractors 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 insurance meeting all the requirements stated herein, 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 and insurance requirements, with any sub-subcontractor to the extent they apply to the scope of the sub-subcontractors work. A copy of the City indemnity and insurance provisions will be furnished to the subcontractor upon request. 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 Consultants obligation to provide them. The City reserves the right to require complete, certified 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, prior experience, insurer, coverage or other special circumstances. Failure to Comply:
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24 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 coverage 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 Contractors or Consultants 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.
Amendment No. 1: Housekeys Inc.
1 of 2
AMENDMENT NO . 1
TO THE AGREEMENT
BETWEEN THE CITY OF MILPITAS AND
HOUSEKEYS, INC.
FOR
BMR HOME OWNERSHIP PORTFOLIO
This Amendment No. 1 is entered on ______________ , by and between the City of Milpitas, a municipal corporation (hereafter referred to as “City”), and Housekeys Inc , a California Corporation ( hereafter referred to as " Consultant ").
City and Consultant are sometimes individually referred to as “Party” and collectively as “Parties” in this Amendment No 1.
RECITALS
WHEREAS , on September 21, 2023 , the Parti es entered into a n Agreement for BMR Home Ownership Portfolio (the “Agreement”) with a compensation amount not to exceed two hundred thousand dollars and zero cents ( $200,000.00) , and with a term period September 21, 2023 to June 30, 2024 ; and
WHEREAS , the Parties now desire to amend the Agreement to extend the term period expiration date from June 30, 202 4 to June 30, 202 5, and add additional funds of two hundred thousand dollars and zero cents ($200,000.00).
NOW , THEREFORE , in consideration of the mutual covenants and conditions herein contained, the Parties agree to amend the Agreement as follows:
1. Section 3.1.2 Term is amended to read as follows:
Section 3.1.2 Term
The initial term of this Agreement shall be from the date first written above to June 30, 2025, unless earlier terminated as provided herein. The term shall include four (4) one -year options to extend the contract, subject to yearly City Council budget approva l. The City reserves the right to review the Contractor’s performance at the end of each year and cancel all or part of the Agreement.
2. Section 3. 3.1 Compensation is amended to read as follows:
Contractor shall receive compensation, including authorized reimbursements, for all Services rendered under this Agreement at the rates set forth in Exhibit “C” attached hereto and incorporated herein by reference. The total compensation shall not exceed Four Hundred Dollars and Zero Cents ($400,000.00) per year without written approval of City’s City Manager.
Extra Work may be authorized, as described below, and if authorized, will be compensated at the rates and manner set forth in this Agreement.
3. All other provisions of the Agreement not amended by this Amendment No. 1 shall remain in full force and effect.
Amendment No. 1: Housekeys Inc.
2 of 2
IN WITNESS WHEREOF, the Parties have executed this Amendment No. 1 as of the date first written above.
SIGNATURE PAGE TO AMENDMENT NO. 1
TO AGREEMENT
WITH
HOUSEKEYS INC.
FOR
BMR HOME OWNERSHIP PORTFOLIO
CITY OF MILPITAS
Approved By:
Ned Thomas , City Manager
Date
Approved As To Form:
Michael Mutalipassi , City Attorney
Approved:
Luz Cofresí -Howe ,
Finance Director / Risk Manager
Approved As To Content:
Alex Andrade, Director of Economic
Development
HOUSEKEYS INC .
Signature
Name
Title
Date
City of Milpitas, California
BUDGET CHANGE FORM
From (Credit) To (Debit)
Type of Change
Account Amount Account Amount
Check one:
Budget
Appropriation
Budget Transfer
295-2938 $150,000 295-5364237 $150,000
Recommendation: Accept and approve a budget appropriation of $150,000 from the Housing Authority Fund and authorize the City Manager or designee to execute an amendment to the agreement with Housekeys for a one-year extension for administration of the Below Market Rate Homeownership Program.
BACKGROUND:
The City of Milpitas Below Market Rate (BMR) Program is designed to assist low-and moderate-income households become first time homeowners. The program’s portfolio is comprised of 278 homeownership units. These units became a part of the City’s homeownership portfolio via the former Redevelopment Agency that provided financial assistance to developers in creating housing. As an exchange for the financial assistance, the development community allocated a percentage of the units as affordable. Historically, the City has administered the management, purchase, and sale of these units.
On June 19, 2018, the City adopted an Affordable Housing Ordinance which requires residential developments of 10 or more units to make 15% of the total units of the development project affordable. As a result of the Ordinance, the City is expected to add more than 50 homeownership units to its portfolio over the next three years. The amount of time needed to sell and monitor these units required staff to look at external support. This report provides information on Housekeys, a third-party administrator who specializes in streamlining the administration of Below Market Rate programs and who does so for more than 15 cities across California.
On September 5, 2023 City Council approved a one-year contract for $200,000 with Housekeys to manage the City’s homeownership units with the allowance of four one-year options estimated at a cost of $200,000 per year (Attachment 1).
ANALYSIS:
During our initial analysis of service providers providing BMR administrative services, Housekeys was the sole BMR program administration servicer in the Bay Area that had the capacity to take on Milpitas’ homeownership portfolio. Staff researched BMR program administrators and, due to the high specialization, only found two other administrator options, Rise Housing and Alta Housing. Rise Housing was unable to provide a bid for services as they did not have the capacity to take on additional public agency services. Alta Housing services cities in the northern part of Santa Clara County and Milpitas is out of their service area. City Council moved forward with staff’s recommendation to enter into contract with Housekeys due to their strong infrastructure and excellent capacity to integrate and handle the City’s BMR needs.
Housekeys is currently working with City staff to create detailed program guidelines and conduct an inventory assessment of the City’s BMR homeownership portfolio. In the last year, Housekeys was able to create the City’s BMR homeownership website, a 24/7 portal which allows current and prospective BMR owners to submit documentation and requests at their convenience as well as access their documents more readily.
By exercising the one-year option for Fiscal Year (FY) 24-25, Housekeys will continue being the transaction coordinator for all real estate transactions which include ensuring affordability deeds are recorded and conducting resale calculations and refinancing requests. They will continue to assist with the sale and resale of units, the selection process, collection of Agency fees, and any monitoring, compliance, resolution, or loss mitigation needed. They also
ensure that our units are not subject to fraudulent activity from homeowners who are in violation of their agreement to participate in the BMR program.
In the upcoming year, Housekeys will conduct webinar and pre-recorded orientations. Housekeys will also conduct home buyer education and training classes which is a requirement to apply for the Milpitas BMR Program. Quarterly reports will continue to be sent to City Staff and any general inquiry or loan request from the public will receive a response within 72 business hours. Housekeys will also finish completion of certification letters to homeowners to help the owners and the City with compliance data collection.
Staff recommends the authorization of exercising the first of four one-year options with Housekeys (Attachment 2). The cost for the administration of the program is $200,000 to administer the 278 existing units in our portfolio for FY 24-25.
In FY23-24, due to starting services in October 2023, the City paid Housekeys a $50,000 program startup fee and $112,500 in administration fees for FY23-24.
Staff will return to Council annually via the budget process for approval should the remaining options be executed. Each subsequent year will be charged based on the number of units Housekeys has to manage in our portfolio. Staff recommends allocating the Housekeys FY24-25 contract amount of $200,000 from the Housing Authority Fund.
POLICY ALTERNATIVE(S):
Alternative 1: Do not execute a one-year option with Housekeys to manage the City’s BMR Homeownership portfolio.
Pros: Funds would not be spent on this priority.
Cons: Staff does not have the resources to administer the City’s BMR homeownership portfolio, if the one-year option was not exercised, the Housing Division’s current and future housing demands and Council priorities may be negatively impacted.
Reason not recommended: The City’s first residential development to satisfy the Affordable Housing Ordinance added four BMR units to the City’s portfolio. In June 2022, City staff completed the sale of 4 units without third party assistance.
These transactions required extraordinary staff resources and time to execute, while operating the Housing work program with limited resources. Staff expect an increase in BMR units in the coming years, and outsourcing the BMR Program allows the Housing team to focus on the increasing workload related to unhoused services and other Council- related Housing objectives as needed.
FISCAL IMPACT:
If the City Council approves staff’s recommendation to authorize Housekeys as the City’s Below Market Rate Homeownership Program administrator, the fiscal impact includes $200,000 being utilized from the Housing Authority Fund. In FY2024-2025 adopted budget, $50,000 was budgeted, and additional $150,000 needs to be appropriated to fund this contract. The Housing Authority Fund currently has an approximate balance of $2,478,877. If the City were to approve the remaining three one-year options at an estimated cost of $200,000 per year, that would result in an additional estimated $600,000 deduction from the Housing Authority Fund in the future fiscal years.
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):
The action being considered has no potential for causing a significant effect on the environment and is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3).
RECOMMENDATION:
Accept and Approve a Budget Appropriation of $200,000 from the Housing Authority Fund and Authorize the City Manager or Designee to execute an agreement with Housekeys for Administration of City’s Below Market Rate Homeownership Program.
ATTACHMENT(S):
Attachment 1: Housekeys General Services Agreement
Attachment 2: One-Year Option Extension
Attachment 3: Budget Change Form
Check if City Council Approval required. Meeting: June 18, 2024 Requested by: Department Head: Date: June 18, 2024
Reviewed by: Finance Director: Luz Cofresí-Howe Date: June 18, 2024 Approved by: City Manager: Ned Thomas Date: June 18, 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: Approve an Agreement with WeHOPE for Homeless Outreach, Assessment, and Case Management Services (Staff Contact: Alex Andrade, Economic Development Director 408-586-3046 and Robert Musallam, Housing Division Manager 408-586-3275)
Category: Consent Calendar-Community Development
Meeting Date: 6/18/2024
Recommendation: (1) Approve a one-year professional services agreement with WeHOPE in the amount of $199,933 for Homeless Outreach, Assessment, and Case Management Services; (2) authorize the appropriation of $6,597.74 from the Housing Authority Fund; and (3) authorize the City Manager, and/or designee, to execute the contract with WeHOPE.
BACKGROUND:
In 2017, Governor Brown signed a 15-bill housing package aimed at addressing the state’s housing shortage and high housing costs. This included Senate Bill 2 Building Homes and Jobs Act (SB-2), which created a recording fee on real estate documents to increase the supply of affordable homes in California. SB-2 established that beginning in calendar year 2019, 70% of the revenue collected will go to locally administered affordable housing, otherwise known as Permanent Local Housing Allocation (PLHA).
The California Department of Housing and Community Development (HCD) released the 2022 Notice of Funding Availability (NOFA) on August 17, 2022. The allocation spans five years, 2019-2023. HCD requirements state that applicants must submit a five-year plan for the period of 2019-2023 and cannot apply for more than three years of allocation in one year. On November 1, 2022, City Council adopted a Resolution authorizing the 2019, 2020, and 2021 funding application of $1,017,554 and approving a five-year (2019-2023) plan.
In February 2023, the City received its award letter from HCD. In July 2023, the City received its executed Standard Agreement for PLHA from HCD. The City was approved to designate 5% ($50,877.70 to program administration). The remaining balance will be split with 80% (773,341.04) to fund the City’s Workforce Housing Rental Assistance Program and 20% (193,335.26) to homeless outreach, assessment, and case management services.
ANALYSIS:
On April 11, 2024, the City’s Purchasing Division released Request for Proposal (RFP) No. 24-088, Homeless Outreach Program (Attachment 1). The RFP was publicly noticed in accordance with applicable provisions of the City Municipal Code, advertised on the City’s website, and emailed to companies registered with the City via the City’s online procurement system (Procurement.OpenGov.com). Upon release, the RFP was viewed 680 times, and 25 agencies downloaded the RFP documents. Six agencies submitted applications to the RFP by the published closing date of May 2, 2024.
Staff evaluated and scored the RFP responses in two rounds of evaluation. The first round of evaluation was performed by City of Milpitas Purchasing staff to review the RFP responsiveness and confirm the RFP was submitted timely. Based on the result of the first-round, the City selected all six vendors for further evaluation:
1. Bill Wilson Center
2. Hope for the Unhoused, Inc.
3. LifeMoves
4. Lighthouse of Hope Counseling Center
5. Pathway Humanity Personnel, SPC
6. WeHOPE
The second round of evaluation was performed by the selection committee. The selection committee was comprised of City staff members from the Housing Division and Recreation and Community Services Department. Evaluation scoring was based on the following four criteria: 1) Qualifications of the Firm; 2) Project Management Approach; 3) Detailed Work Plan, and 4) Proposed Compensation. All six proposals were reviewed and scored by the selection committee, and four of the six vendors were invited to participate in a virtual interview process.
Based on the proposal submitted and subsequent scoring, staff recommends awarding the contract to WeHOPE (Attachment 2). WeHOPE is a Bay Area based non-profit organization with over 20 years of experience in helping people become healthy, employed, and housed using innovative solutions. WeHOPE began as an emergency shelter and has provided unhoused outreach, assessment, and case management services for the last 10 years. WeHOPE has extensive expertise in connecting unhoused individuals to housing services, and building trust and rapport with unhoused individuals. Their successful partnerships and programs have allowed WeHOPE to become a trusted partner for many social services organizations and governmental agencies. Additionally, WeHOPE has experience working with the Santa Clara County Homeless Management Information System (HMIS) and Community Queue, which is part of the County’s methods to ensure unhoused individuals are assessed and in line for housing.
In November 2022, City Council approved $193,335.26 in Permanent Local Housing Allocation (PLHA) grant funds for homeless outreach. These monies will fund the majority of the FY 2024-25 homeless outreach, assessment, and case management services contract. The WeHOPE contract total amount is $199,933, leaving a difference of $6,597.74. Staff recommends allocating $6,597.74 from Fund 295 – Housing Authority Fund – to fill the funding gap. Should Council approve the allocation of $6,597.74 from the Housing Authority Fund, the remaining balance of Fund 295 will be $2,472,279.26.
POLICY ALTERNATIVE(S):
Alternative 1: Do not award Homeless Outreach, Assessment, and Case Management contract to WeHOPE.
Pros: Funding allocated for this service can be reallocated to other programs and/or initiatives.
Cons: The City would bring the next qualified service provider from the RFP scoring list to Council for consideration. However, this could delay the provision of services to the City’s unhoused residents.
Reason not recommended: The City cannot properly respond to reports of homeless encampments without having an experienced vendor build rapport with individuals and assist with their most basic needs. WeHOPE satisfies this need and staff recommends awarding this vendor a contract for services.
FISCAL IMPACT:
If this item is approved, the fiscal impact to the City will be $193,335.26 in Permanent Local Housing Allocation (PLHA) grant funds with an additional fiscal impact of $6,597.74 from the Housing Authority Fund (Fund 295).
The projected end balance of the Housing Authority Fund (Fund 295) for FY2024 is $2,478,877.
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):
The recommendations have no potential for causing a significant effect on the environment and are exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3).
RECOMMENDATION:
1. Approve a One-Year Professional Services Agreement with WeHOPE in the amount of $199,933.00 for Homeless Outreach, Assessment, and Case Management Services.
2. Authorize the Appropriation of $6,597.74 from the Housing Authority Fund.
3. Authorize the City Manager, and/or designee to Execute the Contract with WeHOPE.
ATTACHMENT(S):
Attachment 1: 24-088 Bid Tab - Pending
Attachment 2: 4-088 Homeless Outreach Program Professional Services Agreement Attachment 3: Budget Change Form
PURCHASING DIVISION
RFP FOR: Homeless Outreach Program
RFP NO: 24-088
DUE DATE: May 2, 2024
BUYER: R. Yamashita
Bill Wilson Center
1671 The Alameda
San Jose, CA 95126
Hope for the Unhoused
1765 Landess Ave #300
Milpitas, CA 95035
LifeMoves
2550 Great America Way Suite 201
Santa Clara, CA 95054
Lighthouse of Hope Counseling Center
1515 Partridge Ave.
Sunnyvale, CA 94087
Pathway Humanity Personnel, SPC
2043 East Street Unit 341
Concord, CA 94520
WeHope
PO Box 50624 Palo Alto 94303
East Palo Alto, CA 94303
1 2 3 4 5 6
Final Scores 71.5 44.4 62.3 57.1 34.1 82.2
**BID TAB** City Council Date: June 18, 2024
PENDING AWARD TO: WeHope, the proposer offering the most advantageous proposal after consideration of all evaluation criteria.
CODE KEY: INA = Information Not Available NS = Not Stated NB = No Bid DY = Days WK = Weeks HR = Hours
38077.00180\29167975.12 C2
1 CITY OF MILPITAS
PROFESSIONAL SERVICES AGREEMENT
This Agreement is made and entered into as of ________________, (“Effective Date”) by and between the City of Milpitas, a municipal corporation organized and operating under the laws of the State of California with its principal place of business at 455 E. Calaveras Boulevard, Milpitas, California 95035 (“City”), and WeHOPE, a California Nonprofit Corporation with its principal place of business at 1854 Bay Road, East Palo Alto, CA 94303 (hereinafter referred to as “Consultant”). City and Consultant are sometimes individually referred to as “Party” and collectively as “Parties” in this Agreement.
RECITALS
A. City is a public agency of the State of California and is in need of professional services for the following project:
24-088 Homeless Outreach Program
(hereinafter referred to as “the Project”).
B. Consultant is duly licensed and has the necessary qualifications to provide such services.
C. The Parties desire by this Agreement to establish the terms for City to retain Consultant to provide the services described herein.
AGREEMENT
NOW, THEREFORE, IT IS AGREED AS FOLLOWS:
1. Services.
Consultant shall provide the City with the services described in the Scope of Servi ces attached hereto as Exhibit A.
2. Compensation.
a. Subject to paragraph 2(b) below, the City shall pay for such services in accordance with the Schedule of Charges set forth in Exhibit B.
b. In no event shall the total amount paid for services rendered by Consultant under this Agreement exceed the sum of One Hundred Ninety-Nine Thousand Nine Hundred Thirty-Three Dollars and Zero Cents ($199,933.00). This amount is to cover all printing and related costs, and the City will not pay any additional fees for printing expenses. Periodic payments shall be made within thirty (30) days of receipt of an invoice which includes a detailed description of the work performed. Payments to Consultant for work performed will be made on a monthly billing basis.
3. Additional Work.
If changes in the work seem merited by Consultant or the City, and informal consultations with the other party indicate that a change is warranted, it shall be pro cessed in the following manner: a letter outlining the changes shall be forwarded to the City by Consultant with a statement of estimated ch anges in fee or time schedule. An amendment to this Agreement shall be prepared by the City and executed by both Parties before performance of such services, or the City will not be required to pay for the changes in
38077.00180\29167975.12 C2
2 the scope of work. Such amendment shall not render ineffective or invalidate unaffected portions of this Agreement.
4. Maintenance of Records.
Books, documents, papers, accounting records, and other evidence pertaining to costs incurred shall be maintained by Consultant and made available at all reasonable times during the Agreement term and for four (4) years from the date of final payment under the Agreement for inspection by City.
5. Term.
The term of this Agreement shall be from date first written above to June 30, 2025, unless earlier terminated as provided herein. The City reserves the right to review the Consultant’s performance at the end of each year and cancel all or part of the Agreement.
6. Delays in Performance.
a. Neither City nor Consultant shall be considered in default of this Agreement for delays in performance caused by circumstances beyond the reasonable contr ol of the non -performing party. For purposes of this Agreement, such circumstances include but are not limited to, abnormal weather conditions; floods; earthquakes; fire; epidemics; war; riots and other civil disturbances; strikes, lockouts, work slowdowns, and other labor disturbances; sabotage or judicial restraint. b. Should such circumstances occur, the non-performing party shall, within a reasonable time of being prevented from performing, give written notice to the other party describing the circumstances preventing continued performance and the efforts being made to resume performance of this Agreement.
7. Compliance with Law.
a. Consultant shall comply with all applicable laws, ordinances, codes and regulations of the federal, state and local government, including Cal/OSHA requirements. b. If required, Consultant shall assist the City, as requested, in obtaining and maintaining all permits required of Consultant by federal, state and local regulatory agencies. c. If applicable, Consultant is responsible for all costs of clean up and/ or removal of hazardous and toxic substances spilled as a result of his or her services or operations performed under this Agreement.
8. Standard of Care
Consultant’s services will be performed in accordance with generally accepted professional practices and principles and in a manner consistent with the level of care and skill ordinarily exercised by members of the profession currently practicing under similar conditions.
9. Assignment and Subconsultant
Consultant shall not assign, sublet, or transfer this Agreement or any rights under or interest in this Agreement without the written consent of the City, which may be withheld for any reason. Any attempt to so assign or so transfer without such consent shall be void and without legal effect and shall cons titute
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3 grounds for termination. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement. Nothing contained herein shall prevent Consultant from employing independent associates, and subconsultants as Consultant may deem appropriate to assist in the performance of services hereunder.
10. Independent Consultant
Consultant is retained as an independent contractor and is not an employee of City . No employee or agent of Consultant shall become an employee of City. The work to be performed shall be in accordance with the work described in this Agreement, subject to such directions and amendments from City as herein provided.
11. Insurance. Consultant shall not commence work for the City until it has provided evidence satisfactory to the City it has secured all insurance required under Exhibit D (Insurance Requirements), attached hereto and incorporated herein by this reference . In addition, Consultant shall not allow any subcontractor to commence work on any subcontract until it has secured all insurance required therein.
12. Indemnification.
a. To the fullest extent permitted by law, Consultant shall defend (with counsel of City’s choosing), indemnify and hold the City, its officials, officers, employees, volunteers, and agents free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury of any kind, in law or equity, to property or persons, including wrongful death, in any manner arising out of, pertaining to, or incident to any acts, errors or omissions, or willful misconduct of Cons ultant, its officials, officers, employees, subcontractors, consultants or agents in connection with the performance of the Consultant’s services, the Project or this Agreement, including without limitation the payment of all damages, expert witness fees a nd attorney’s fees and oth er related costs and expenses. Consultant's obligation to indemnify shall not be restricted to insurance proceeds, if any, received by Consultant, the City, its officials, officers, employees, agents, or volunteers.
b. If Consultant’s obligation to defend, indemnify, and/or hold harmless arises out of Consultant’s performance of “design professional” services (as that term is defined under Civil Code section 2782.8), then, and only to the extent required by Civil Code section 2782.8, which is fully incorporated herein, Consultant’s indemnification obligation shall be limited to claims that arise out of, pertain to, or relate to the negligence, rec klessness, or willful misconduct of the Consultant, and, upon Consultant obtaining a final adjudication by a court of competent jurisdiction, Consultant’s liability for such claim, including the cost to defend, shall not exceed the Consultant’s proportionate percentage of fault.
13. California Labor Code Requirements.
a. Consultant is aware of the requirements of California Labor Code Sections 1720 et seq. and 1770 et seq., which require the payment of prevailing wage rates and the performance of other requirements on certain “public works” and “maintenance” projects (“Prevailing Wage Laws”). If the services are being performed as part of an applicable “public works” or “maintenance” project, as defined by the Prevailing Wage Laws, and if the total compensation is One Thousand Dollars and Zero Cents ($1,000.00) or more, Consultant agrees to fully comply with such Prevailing Wage Laws. Consultant shall defend, indemnify and hold the City, its officials, officers, employees and agents free and harmless from any claims, liabilities, costs, penalties or interest arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. It shall be mandatory upon the Consultant and all subconsultants to comply with all California Labor Code provisions, which include but are not limited to prevailing wages (Labor Code Sections 1771, 1774 and 1775), employment of apprentices (Labor Code Section 1777.5), certified payroll
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4 records (Labor Code Sections 1771.4 and 1776), hours of labor (Labor Code Sections 1813 and 1815) and debarment of contractors and subcontractors (Labor Code Section 1777.1) . The requirement to submit certified payroll records directly to the Labor Commissioner under Labor Code section 1771.4 shall not apply to work performed on a public works project that is exempt pursuant to the small project exemption specified in Labor Code Section 1771.4.
b. If the services are being performed as part of an applicable “public works” or “maintenance” project, then pursuant to Labor Code Sections 1725.5 and 1771.1, the Consultant and all subconsultants performing such services must be registered with the De partment of Industrial Relations.
Consultant shall maintain registration for the duration of the Project and require the same of any subconsultants, as applicable. Notwithstanding the foregoing, the contractor registration requirements mandated by Labor Code Sections 1725.5 and 1771.1 shall not apply to work performed on a public works project that is exempt pursuant to the small project exemption specified in Labor Code Sections 1725.5 and 1771.1.
c. This Agreement may also be subject to compliance monitoring and enforcement by the Department of Industrial Relations. It shall be Consultant’s sole responsibility to comply with all applicable registration and labor compliance requireme nts. Any stop orders issued by the Department of Industrial Relations against Consultant or any subcontractor that affect Consultant’s performance of services, including any delay, shall be Consultant’s sole responsibility. Any delay arising out of or resulting from such stop orders shall be considered Consultant caused delay and shall not be compensable by the City. Consultant shall defend, indemnify and hold the City, its officials, officers, employees and agents free and harmless from any claim or liability arising out of stop orders issued by the Department of Industrial Relations against Consultant or any subcontractor.
14. Verification of Employment Eligibility.
By executing this Agreement, Consultant verifies that it fully complies with all requirements and restrictions of state and federal law respecting the employment of undocumented aliens, including, but not limited to, the Immigration Reform and Control Act of 1986, as may be amended from time to time, and shall require all subconsultants and sub-subconsultants to comply with the same.
15. City Material Requirements. [Reserved]
16. Laws and Venue.
This Agreement shall be interpreted in accordance with the laws of the State of California. If any action is brought to interpret or enforce any term of this Agreement, the action shall be brought in a state or federal court situated in the County of Santa Clara, State of California. 17 Termination or Abandonment
a. City has the right to terminate or abandon any portion or all of the work under this Agreement by giving thirty (30) calendar days written notice to Consultant. In such event, City shall be immediately given title and possession to all original field notes, drawings and specifications, written reports and other documents produced or developed for that portion of the work completed and/or being abandoned. City shall pay Consultant the reasonable value of services rendered for any portion of the work completed prior to termination. If said termination occurs prior to completion of any task for the Project for which a payment request has not been received, the charge for services performed during such task shall be the reasonable value of such services, based on an amount mutually agr eed to by City and Consultant of the portion of such task completed but not paid prior to said termination. City shall not be liable for any
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5 costs other than the charges or portions thereof which are specified herein. Consultant shall not be entitled to payment for unperformed services, and shall not be entitled to damages or compensation for termination of work.
b. Consultant may terminate its obligation to provide further services under this Agreement upon thirty (30) calendar days’ written notice to City only in the event of substantial failure by City to perform in accordance with the terms of this Agreement through no fault of Consultant. c. The C onsultant understands and accepts that at all times; the Agreement is subject to appropriation of funds by the Milpitas City Council. The Agreement may terminate without penalty, liability or expense of any kind to the City at the end of Agreement term. The City has no obligation to make appropriations for the Agreement in lieu of appropriations for new or other contracts. City budget decisions are subject to the discretion of the Mayor and City Council. Consultant’s assumption of risk of possible non-appropriation is a part of the c onsideration for the Agreement. This section controls against any and all other provisions of the Agreement.
18 Documents. Except as otherwise provided in “Termination or Abandonment,” above, all original field notes, written reports, Drawings and Specifications and other documents, produced or developed for the Project shall, upon payment in full for the services described in this Agreement, be furnished to and become the property of the City.
19. Organization
Consultant shall assign ________________ as Project Manager. The Project Manager shall not be removed from the Project or reassigned without the prior written consent of the City.
20. Limitation of Agreement.
This Agreement is limited to and includes only the work included in the Project described above.
21. Notice
Any notice or instrument required to be given or delivered by this Agreement may be given or delivered by depositing the same in any United States Post Office, certified mail, return receipt requested, postage prepaid, addressed to:
CITY:
City of Milpitas
455 E. Calaveras Boulevard
Milpitas, California 95035
Attn: City Manager
CONSULTANT:
WeHOPE
1854 Bay Road
East Palo Alto, CA 94303
and shall be effective upon receipt thereof.
22. Third Party Rights
Nothing in this Agreement shall be construed to give any rights or benefits to anyone other than the City and the Consultant.
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6 23. Equal Opportunity Employment.
Consultant represents that it is an equal opportunity employer and that it shall not discriminate against any employee or applicant for employment because of race, religion, color, national origin, ancestry, sex, age or other interests protected by the Sta te or Federal Constitutions. Such non -discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination.
24. Entire Agreement
This Agreement, with its exhibits, represents the entire understanding of City and Consultant as to those matters contained herein, and supersedes and cancels any prior or contemporaneous oral or written understanding, promises or representations with respect to th ose matters covered hereunder. Each party acknowledges that no representations, inducements, promises or agreements have been made by any person which are not incorporated herein, and that any other agreements shall be void. This Agreement may not be modified or altered except in writing signed by both Parties hereto. This is an integrated Agreement.
25. Severability
The unenforceability, invalidity or illegality of any provision(s) of this Agreement shall not render the provisions unenforceable, invalid or illegal.
26. Successors and Assigns
This Agreement shall be binding upon and shall inure to the benefit of the successors in interest, executors, administrators and assigns of each party to this Agreement. However, Consultant shall not assign or transfer by operation of law or otherwise any or all of its rights, burdens, duties or obligations without the prior written consent of City. Any attempted assignment without such consent shall be invalid and void.
27. Non-Waiver
None of the provisions of this Agreement shall be considered waived by either party, unless such waiver is specifically specified in writing.
28. Time of Essence
Time is of the essence for each and every provision of this Agreement.
29. City’s Right to Employ Other Consultants
City reserves its right to employ other consultants, including engineers, in connection with this Project or other projects.
30. Prohibited Interests
Consultant maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Consultant, to solicit or secure this Agreement. Further, Consultant warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Consultant, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the awar d or making of this Agreement. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability. For the term of this Agreement, no director, official, officer or employee of City, during the term of his or her service
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7 with City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.
31. Wage Theft Prevention
a. Consultant, and any subconsultant it employs to complete work under this Agreement, shall comply with all applicable federal, state and local wage and hour laws. Applicable laws may include, but are not limited to, the Federal Fair Labor Standards Act, the California Labor Code and the Milpitas Minimum Wage Ordinance.
b. BY SIGNING THIS AGREEMENT, CONSULTANT AFFIRMS THAT IT HAS
DISCLOSED ANY FINAL JUDGMENTS, DECISIONS OR ORDERS FROM A COURT OR INVESTIGATORY GOVERNMENT AGENCY, FINDING IN THE FIVE (5) YEARS PRIOR TO
EXECUTING THIS AGREEMENT THAT CONSULTANT OR ITS SUBCONSU LTANTS HAS VIOLATED ANY APPLICABLE WAGE AND HOUR LAWS. CONSULTANT FURTHER AFFIRMS
THAT IT OR ITS SUBCONSULTANT(S) HAS EITHER FULLY SATISFIED EACH JUDGMENT,
DECISION OR ORDER, OR, IF ANY JUDGMENT, DECISION OR ORDER HAS NOT BEEN FULLY
SATISFIED, CONSULTANT AFFIRMS THAT IT OR ITS SUBCONSULTANT(S) IS CURRENTLY
SATISFYING SAID JUDGMENT, DECISION OR ORDER THROUGH A PAYMENT OR
ALTERNATIVE PLAN APPROVED BY THE APPLICABLE COURT/GOVERNMENT AGENCY
AND THAT CONSULTANT OR ITS SUBCONSULTANT(S) ARE IN COMPLIANCE WITH SAI D PLAN AS OF THE DATE OF EXECUTING THIS AGREEMENT.
c. If at any time during the term of this Agreement, a court or investigatory government agency issues a final judgment, decision or order finding that Consultant or a subconsultant it employs to perform work under this Agreement has violated any applicabl e wage and hour law, or Consultant learns of such a judgment, decision, or order that was not previously disclosed in its bid/proposal, Consultant shall inform the City no more than fifteen (15) calendar days after the judgment, decision or order becomes f inal or from the date of learning of the final judgment, decision or order.
Consultant or its subconsultant(s) shall, within thirty (30) calendar days after notifying the City, either (i) fully satisfy any such judgment, decision, or order and provide the City with documentary evidence of satisfying said judgment, decision or order; or (ii) provide the City documentary evidence of a payment or other alternative plan approved by the court/government agency to satisfy the judgment, decision or order.
If the Consultant or its subconsultant is subject to a payment or other alternative plan, the Consultant or its subconsultant shall continue to submit documentary evidence every thirty (30) calendar days during the term of the Agreement demonstrating continued compliance with the plan until the judgment, decision or order has been fully satisfied.
d. For purposes of this Section, a "final judgment, decision, or order" refers to one for which all appeals have been exhausted or the time period to appeal has expired. Relevant investigatory government agencies include: the United States Department of Labor, the California Division of Labor Standards Enforcement, the City, or any other governmental entity or division tasked with the investigation and enforcement of wage and hour laws.
e. Failure to comply with any part of this Section constitutes a material breach of this Agreement. Such breach may serve as a basis for immediate termination of this Agreement and/or any other remedies available under this Agreement and/or law.
f. Notice provided to the City shall be addressed to: Attention: Finance Director, 455 E. Calaveras Blvd. Milpitas, CA 95035. The Notice provisions of this Section are separate from any other
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8 notice provisions in this Agreement and, accordingly, only notice provided to the above address satisfies the notice requirements in this Section.
[SIGNATURES ON FOLLOWING PAGE]
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9 SIGNATURE PAGE FOR PROFESSIONAL SERVICES AGREEMENT
BETWEEN THE CITY OF MILPITAS
AND WEHOPE
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above.
CITY OF MILPITAS
Approved By:
Ned Thomas, City Manager
Date
Approved As To Form:
Michael Mutalipassi, City Attorney
Approved:
Luz Cofresí-Howe
Finance Director/ Risk Manager
Approved As To Content:
Alex Andrade, Economic Development Director
WEHOPE
Signature
Name
Title
Date
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10 EXHIBIT A
Scope of Services
Program Requirements
A. Goals shall include, but not be limited to:
i. Support the City in responding to referrals of non‐violent mental health crises. ii. Help identify needs of Milpitas’ unhoused residents.
B. Objectives shall be achieved by:
i. Conducting Vulnerability Index‐Service Prioritization and Decision Assistance Tool (VI‐SPDAT) intakes and assessments in accordance with the current Homeless Management Information System (HMIS) standards for the County;
i. Utilizing a multidisciplinary team approach;
ii. Developing a robust knowledge of community resources; iii. Coordinating services with the services that the City provides for their homeless population.
C. Outcomes to be achieved:
i. Engagement and outreach to all individuals referred by the City as well as proactive outreach to individuals on a weekly basis.
i. Number of referrals made;
ii. Follow up as needed on referral sites for mitigation; iii. Number of clients from Milpitas and other locations; iv. Increased self-sufficiency of homeless individuals
v. 75% of individuals contacted who are not already enrolled in the Homeless Management Information System (HMIS) will have the VI-SPDAT administered; vi. Link 75% of individuals with Severe Mental Illness (SMI) to Behavioral health Services Department (BHSD) HEAT clinical team for further engagement; vii. 20% of clients shall be connected to medical services; viii. 20% of clients shall improve housing situation;
ix. 30 clients moving into shelter per year
x. 15 clients moving into transitional or permanent housing per year xi. 80% of referrals will have attempts at initial contact within 24 consecutive hours.
Reporting and Data Collection Requirements
A. Vendor shall serve a minimum number of 50 individuals per calendar year.
B. Vendor to bill City on a monthly basis
C. Vendor may be asked to attend City Council meetings or meetings with City staff throughout the length of the contract
D. Vendor will provide quarterly reports to the City to include all outcomes listed below.
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11 Metrics:
• # of referrals served from the City of Milpitas
• # of referrals served from outreach
• # of referrals assessed with the Vi-SPDAT
• # of referrals housed
• # of referrals linked to Behavioral Health Services Department • # of referrals connected to medical services
• # of clients housed
• # of contact attempts
• Referral status updates in Smartsheet or other tool as determined by the City – City requests that all information in the fields be called out on each Quarterly report.
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12 EXHIBIT B
Schedule of Charges/Payments
Consultant will invoice City on a monthly cycle. Consultant will in clude with each invoice a detail ed progress report that indicates the amount of budget spent on each task. Consultant will inform City regarding any out-of-scope work being performed by Consultant. This is a time-and-materials Agreement.
Line Item Costs for 2 Outreach
Case Managers
Compensation $154,057
Program Supplies $8,900
Operational Expenses $18,800
Indirect Costs (10%) $18,176
Total Expenses $199,933
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13 EXHIBIT C
Activity Schedule
WeHOPE proposes 2 FTE case managers who will support the city by responding to referrals of nonviolent individuals experiencing a mental health crisis. The assigned case managers will work directly with the local EAN’s and the Milpitas community by visiting encampments and other places the homeless congregate between 5 and 6 days a week. The case managers will undergo extensive training prior to contract execution to ensure that they are aware of the nuances of the City as well as the available resources for people experiencing homelessness in Milpitas. WeHOPE case manag ers will undergo training on the County Clarity system and will be well acquainted with homeless service providers. Additionally, case managers will scope out the areas where people experiencing homelessness congregate to ensure that the entire service area is covered weekly.
Case managers will visit encampments and bring food and supplies to begin to cultivate relationships with people experiencing homelessness. Case managers will administer the VISPDAT in accordance with the current HMIS guidelines. Additionally, case manager s will assist clients in getting ‘document ready’, connected to essential services based on the client’s felt need, and partner with other agencies to include Street Medicine and Mental Health. Case managers will visit each encampment up to 3 times a week to continue to offer services including shelter and housing. Case management services will be offered from 8am to 6pm 5 to 6 days per week. Further, case managers will join the local Multi -Disciplinary Team meetings for case conferencing and problem solving to ensure they are utilizing the MDT approach.
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14 EXHIBIT D
INSURANCE REQUIREMENTS
Please refer to the insurance requirements listed below. Those that have an “X” indicated in the space before the requirement apply to Contractor’s or Consultant’s Agreement.
Contractor or Consultant shall procure and maintain for the duration of the 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, employees or subcontractors.
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 endorsements.
Contractor or Consultant shall furnish City with copies of original endorsements affecting coverage required by this Exhibit D. 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 required by these specifications.
Commercial General Liability (CGL):
___ Coverage at least as broad 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 occurrence. 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.
_X_ Coverage at least as broad as 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 $1,000,000.00 per occurrence. 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.
___ Coverage at least as broad as 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 $5,000,000.00 per occurrence. 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:
_X_ Coverage at least as broad as ISO Form Number CA 0001 covering, Code 1 (any auto), of if Contractor or Consultant has no owned autos, Code 8 (hired) and 9 (non -owned), with limits no less than $1,000,000.00 combined single limit for bodily injury and property damage.
___ Coverage at least as broad as ISO Form Number CA 0001 covering, Code 1 (any auto), with limits no less than $5,000,000.00 combined single limit for bodily injury and property damage.
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15 ___ Garage keepers’ extra liability endorsement to extend coverage to all vehicles in the care, custody and control of the Contractor or Consultant, regardless of where the vehicles are kept or driven.
Professional Liability (Errors and Omissions):
_X_ Insurance appropriates 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.
___ (If Design/Build), with limits no less than $1,000,000.00 per occurrence or claim, and $2,000,000.00 policy aggregate.
___ Insurance appropriates to the Contractor or Consultant’s profession, with limit no less than ______ per occurrence or claim, ______ aggregate
Workers’ Compensation Insurance:
___ Insurance as required by the State of California, with Statutory Limits, and Employer’s Liability Insurance with limit of no less than $1,000,000.00 per accident for bodily injury or disease. (Not required if Contractor or Consultant provides written verification it has no employees)
The Employer’s Liability policy shall be endorsed to waive any right of subrogation as respects the City, its elected and appointed officials, officers, attorneys, agents, and employees.
Builder’s Risk (Course of Construction):
___ Insurance utilizing an “All Risk” (Special Perils) coverage form, with limits equal to the completed value of the project and no coinsurance penalty provisions. If the project does not involve new or major reconstruction, at the option of the City, an Installation Floater may be acceptable. For such projects, a Property Installation Floater shall be obtained that provides for the improvement, remodel, modification, alteration, conversion or adjustment to existing buildings, structures, processes, machinery and equipment.
The Property Installation Floater shall provide property damage coverage for any building, structure, machinery or equipment damaged, impaired, broken, or destroyed during the performance of the Work, including during transit, installation, and testing at the City’s site.
Contractor’s or Consultant’s Pollution Legal Liability:
___ Contractor’s or Consultant’s pollution legal liability and/or Asbestos Legal Liability and/or Errors and Omissions (if project involves environmental hazards) with limits no less than $1,000,000.00 per occurrence or claim and $2,000,000.00 policy aggregate.
If the Contractor or Consultant maintains higher limits than the minimums shown above, the City requires and shall be entitled to coverage for the higher limits maintained by the Contractor or Consultant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to City.
Cyber Liability Insurance
___ Cyber Liability Insurance with limits not less than $1,000,000 per claim.
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16 Coverage shall be sufficiently broad to respond to the duties and obligations as is undertaken by Contractor or Consultant in this Agreement and shall include, but not be limited to, claims involving infringement of intellectual property, including but not limited to infringement of copyright, trademark, trade dress, invasion of privacy violations, information theft, damage to or destruction of electronic information, release of private information, alteration of electronic information, extortion, and network security.
The policy shall provide coverage for breach response costs as well as regulatory fines and penalties, and credit monitoring expenses with limits sufficient to respond to these obligations.
Surety Bonds:
Contractor shall provide the following Surety Bonds:
____ Bid Bond
____ Performance Bond
____ Payment Bond
The Payment Bond and Performance Bond shall be in a sum equal to the contract price. Bonds shall be duly executed by a responsible corporate surety, authorized to issue such bonds in the State of California and secured through an authorized agent with an office in California.
Other Insurance Provisions:
The insurance policies are to contain, or be endorsed to contain the following provisions:
_X_ 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 its elected and appointed officials, officers, attorneys, agents employees and volunteers as additional insureds under such policies using Insurance Services Office form CG 20 10 (or equivalent) on the general l iability policy. For construction projects, an endorsement providing completed operations coverage for the additional insured on the general liability policy, ISO form CG 20 37 (or equivalent), is also required.
The limits of insurance required in this Agreement may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella 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 (if agreed to in a written contract or agreement) before the City’s own insurance or self-insurance shall be called upon to protect it as a named insured.
___ Loss Payee Status – Builder’s Risk/Course of Construction Insurance (applicable to Construction Contracts only)
Contractor or Consultant may submit evidence of Builder’s Risk insurance in the form of Course of Construction coverage. Such coverage shall name the City as a loss payee as their interest may appear.
_X_ Notice of Cancellation, Suspension or Otherwise Voiding Policies:
Each insurance policy required above shall contain or be endorsed to contain that coverage shall 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.
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17 _X_ Waiver of Subrogation:
Contractor or Consultant hereby grants to City a waiver of any right to subrogation which any insurer of said Contractor or Consultant may acquire against the City by virtue of the payment of any loss under such insurance. Contractor or Consultant agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the City has 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 for all work performed by Contractor or Consultant, its employees, agents and subcontractors.
___ Completed Operations
For Construction Agreements, Contractor shall maintain insurance as required by this Agreement to the fullest amount allowed by law and shall maintain insurance for a minimum of five (5) years following the completion of this project. In the event Contractor fails to obtain or maintain completed operations coverage as required by this Agreement, the City at its sole discretion may purchase the coverage required and the cost will be paid by Contractor.
THE FOLLOWING PROVISIONS APPLY TO ALL AGREEMENTS
Deductibles and Self-Insured Retentions (“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 related investiga tions, 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 officials, offic ers, 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 Management 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 contract work.
38077.00180\29167975.12 C2
18 2. Insurance must be maintained, and evidence of insurance must be provided for at least five (5) years after completion of contract of work.
3. If coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a Retroactive 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 insurance meeting all the requirements stated herein, 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 provis ions of this Agreement, including the indemnity and insurance requirements, with any sub -subcontractor to the extent they apply to the scope of the sub - subcontractor’s work. A copy of the City indemnity and insurance provisions will be furnished to the subcontractor upon request.
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, certified 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, prior 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 coverage provided to the City, its elected and appointed officials, officers, attorneys, agents, and employees.
Applicability of Coverage:
38077.00180\29167975.12 C2
19 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.
City of Milpitas, California
BUDGET CHANGE FORM
From (Credit) To (Debit)
Type of Change
Account Amount Account Amount
Check one:
Budget
Appropriation
Budget Transfer
295-2938 $6,598 295-5364237 $6,598
Recommendation: (1) Approve a one-year professional services agreement with WeHOPE in the amount of $199,933 for Homeless Outreach, Assessment, and Case Management Services; (2) authorize the allocation of $6,597.74 to the Housing Authority Fund; and (3) authorize the City Manager, and/or designee, to execute the contract with WeHOPE.
BACKGROUND:
In 2017, Governor Brown signed a 15-bill housing package aimed at addressing the state’s housing shortage and high housing costs. This included Senate Bill 2 Building Homes and Jobs Act (SB-2), which created a recording fee on real estate documents to increase the supply of affordable homes in California. SB-2 established that beginning in calendar year 2019, 70% of the revenue collected will go to locally administered affordable housing, otherwise known as Permanent Local Housing Allocation (PLHA).
The California Department of Housing and Community Development (HCD) released the 2022 Notice of Funding Availability (NOFA) on August 17, 2022. The allocation spans five years, 2019-2023. HCD requirements state that applicants must submit a five-year plan for the period of 2019-2023 and cannot apply for more than three years of allocation in one year. On November 1, 2022, City Council adopted a Resolution authorizing the 2019, 2020, and 2021 funding application of $1,017,554 and approving a five-year (2019-2023) plan.
In February 2023, the City received its award letter from HCD. In July 2023, the City received its executed Standard Agreement for PLHA from HCD. The City was approved to designate 5% ($50,877.70 to program administration). The remaining balance will be split with 80% (773,341.04) to fund the City’s Workforce Housing Rental Assistance Program and 20% (193,335.26) to homeless outreach, assessment, and case management services.
ANALYSIS:
On April 11, 2024, the City’s Purchasing Division released Request for Proposal (RFP) No. 24-088, Homeless Outreach Program (Attachment 1). The RFP was publicly noticed in accordance with applicable provisions of the City Municipal Code, advertised on the City’s website, and emailed to companies registered with the City via the City’s online procurement system (Procurement.OpenGov.com). Upon release, the RFP was viewed 680 times, and 25 agencies downloaded the RFP documents. Six agencies submitted applications to the RFP by the published closing date of May 2, 2024.
Staff evaluated and scored the RFP responses in two rounds of evaluation. The first round of evaluation was performed by City of Milpitas Purchasing staff to review the RFP responsiveness and confirm the RFP was submitted timely. Based on the result of the first-round, the City selected all six vendors for further evaluation:
1.Bill Wilson Center
2.Hope for the Unhoused, Inc.
3.LifeMoves
4.Lighthouse of Hope Counseling Center
Commented [LCH1]: Everybody is killing me with the
pennies…. ☹
5.Pathway Humanity Personnel, SPC
6.WeHOPE
The second round of evaluation was performed by the selection committee. The selection committee was comprised of City staff members from the Housing Division and Recreation and Community Services Department. Evaluation scoring was based on the following four criteria: 1) Qualifications of the Firm; 2) Project Management Approach; 3) Detailed Work Plan, and 4) Proposed Compensation. All six proposals were reviewed and scored by the selection committee, and four of the six vendors were invited to participate in a virtual interview process.
Based on the proposal submitted and subsequent scoring, staff recommends awarding the contract to WeHOPE (Attachment 2). WeHOPE is a Bay Area based non-profit organization with over 20 years of experience in helping people become healthy, employed, and housed using innovative solutions. WeHOPE began as an emergency shelter and has provided unhoused outreach, assessment, and case management services for the last 10 years. WeHOPE has extensive expertise in connecting unhoused individuals to housing services, and building trust and rapport with unhoused individuals. Their successful partnerships and programs have allowed WeHOPE to become a trusted partner for many social services organizations and governmental agencies. Additionally, WeHOPE has experience working with the Santa Clara County Homeless Management Information System (HMIS) and Community Queue, which is part of the County’s methods to ensure unhoused individuals are assessed and in line for housing.
In November 2022, City Council approved $193,335.26 in Permanent Local Housing Allocation (PLHA) grant funds for homeless outreach. These monies will fund the majority of the FY 2024-25 homeless outreach, assessment, and case management services contract. The WeHOPE contract total amount is $199,933, leaving a difference of $6,597.74.
Staff recommends allocating $6,597.74 from Fund 295 – Housing Authority Fund – to fill the funding gap. Should Council approve the allocation of $6,597.74 from the Housing Authority Fund, the remaining balance of Fund 295 will be $2,472,279.26.
POLICY ALTERNATIVE(S):
Alternative 1: Do not award Homeless Outreach, Assessment, and Case Management contract to WeHOPE.
Pros: Funding allocated for this service can be reallocated to other programs and/or initiatives.
Cons: The City would bring the next qualified service provider from the RFP scoring list to Council for consideration.
However, this could delay the provision of services to the City’s unhoused residents.
Reason not recommended: The City cannot properly respond to reports of homeless encampments without having an experienced vendor build rapport with individuals and assist with their most basic needs. WeHOPE satisfies this need and staff recommends awarding this vendor a contract for services.
FISCAL IMPACT:
If this item is approved, the fiscal impact to the City will be $193,335.26 in Permanent Local Housing Allocation (PLHA) grant funds with an additional fiscal impact of $6,597.74 from the Housing Authority Fund (Fund 295). The projected end balance of the Housing Authority Fund (Fund 295) for FY2024 is $2,478,877.
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):
The recommendations have no potential for causing a significant effect on the environment and are exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3).
RECOMMENDATION:
1. Approve a One-Year Professional Services Agreement with WeHOPE in the amount of $199,933.00 for Homeless Outreach, Assessment, and Case Management Services.
2. Authorize the Appropriation of $6,597.74 from the Housing Authority Fund.
3. Authorize the City Manager, and/or designee to Execute the Contract with WeHOPE.
ATTACHMENT(S):
Attachment 1: 24-088 Bid Tab - Pending
Attachment 2: 4-088 Homeless Outreach Program Professional Services Agreement Attachment 3: Budget Change Form
Commented [CN2]: Removing this sentence, as there
may be other expenditures that will affect the balance
Check if City Council Approval required. Meeting: June 18, 2024 Requested by:Department Head: Date: June 18, 2024
Reviewed by:Finance Director: Luz Cofresí-Howe Date: June 18, 2024 Approved by:City Manager: Ned Thomas Date: June 18, 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: Approve an Amendment to the Professional Services Agreement with Ascent Environmental for Consultant Services Related to Preparation of the Gateway- Main St. Specific Plan (Staff Contact: Jay Lee, Planning Director, 408-586-3077) Category: Community Development
Meeting Date: 6/18/2024
Recommendation: (1) Approve an amendment to the Professional Services Agreement with Ascent Environmental for consultant services related to preparation of the Gateway-Main St.
Specific Plan, extending the contract timeline for professional services without incurring any additional costs; and (2) Authorize the City Manager to execute the amended agreement.
Background:
The Milpitas Midtown Specific Plan was originally adopted by City Council in 2002 to maximize land use, transportation, and economic opportunities along the City’s historic Main Street and to energize and catalyze mixed-use, transit-oriented development in the Midtown area, also known as the “heart” of Milpitas. Since adoption of the current Midtown Specific Plan, little of the community’s vision for this area has been realized, and many potential development sites remain vacant and underutilized, especially along Main Street. As part of the update process, the Midtown Specific Plan will be renamed the “Milpitas Gateway/Main Street Specific Plan” and will provide a new vision and strategic policy framework to guide redevelopment and reinvestment in three focus areas and transform this important gateway into an attractive and vibrant destination for the City and the region.
On April 6, 2021, the City Council adopted the FY2022-26 Capital Improvement Plan (CIP), which included the Milpitas Gateway/Main Street Plan (Midtown Specific Plan Update) as Project No. 3437 with an initial outlay of up to $960,000 from the Community Planning Fund. On May 26, 2021, the Metropolitan Transportation Commission (MTC) awarded the City of Milpitas an additional $500,000 through its Priority Development Area (PDA) Planning Grant Program to complete the project.
On March 16, 2021, the Purchasing Division released RFP No. 2515 seeking proposals from qualified vendors with demonstrated experience in municipal planning services to assist the City with the Milpitas Gateway/Main Street Specific Plan (Midtown Specific Plan Update). Following a competitive evaluation process in accordance with the City’s Municipal Code, the top firm, Ascent Environmental, was invited to continue in the evaluation process by providing a detailed scope of work with the proposed compensation for all services outlined in the RFP.
On September 21, 2021, City Council authorized the City Manager to execute a master funding agreement with the MTC to receive funding through the Priority Development Area (PDA) Planning Grant Program and a professional services agreement with Ascent Environmental for consultant services to prepare the Gateway/Main Street Specific Plan.
The initial project budget was $930,708. Per Section I-2-3.21 of the Milpitas Municipal Code, the Purchasing Agent is authorized to execute amendments up to 10 percent of a contract (over $100,000) or $20,000, whichever is less, and up to $40,000 in cumulative amendments. As such, the Purchasing Agent twice executed amendments to the Professional Services Agreement with Ascent Environmental to increase the project budget by $19,500 each time, for a total budget increase of $39,000, resulting in a project budget of $969,708. These amendments also extended the termination date from June 30, 2023 to June 30, 2024.
On April 16, 2024, the City Council approved an amendment to the professional services agreement with Ascent Environmental to reallocate budget amounts between tasks and increase the overall project budget by $90,000, resulting in a new contract amount of $1,059,708.
Analysis:
Tasks 1-3, which include existing conditions assessments, extensive community outreach, plan visioning, scenario planning, and preferred plan strategies, have been completed. Task 4 (Specific Plan Drafting) and Task 5 (Environmental Evaluation) are underway, and a Public Draft Plan is expected in June 2024. Following public review of the Public Draft Plan, the project team will continue to refine the plan and environmental analysis and aim for adoption hearings in late 2024.
Therefore, an additional amendment to the professional services agreement with Ascent Environmental is needed to extend the agreement term 12 months, from June 30, 2024 to June 30, 2025, with no change in compensation. Per Milpitas Municipal Code Section I-2-3.21, contract extensions exceeding 12 consecutive months from the last Council-approved expiration date, which is June 30, 2023, require Council approval.
The original scope of work, budget, and timeline were initially prepared in 2021. At that time, there were several unknowns regarding the scope of work:
1. The project area and boundary;
2. Preparation and inclusion of specific zoning regulations and development standards within the Specific Plan; and
3. The existing condition of utilities and infrastructure within the plan area.
Throughout the preparation of the plan, the project area has expanded to annex adjacent neighborhoods which would benefit from inclusion into the plan area. An additional redevelopment focus area was also added to maximize the development potential of new opportunity sites. Additionally, City staff determined that the scope of work should also include preparing zoning regulations and development standards to ensure consistency between the Specific Plan and Milpitas Zoning Ordinance upon plan adoption rather than amending the zoning map and text later. Furthermore, the existing condition of utilities and infrastructure within the plan area requires additional analysis and utility improvements to ensure that future development will be adequately served.
Due to the added complexity to the scope of work, the agreement termination date needs to be extended from June 30, 2024 to June 30, 2025. Although the project team anticipates competing the project in late 2024, City staff is seeking an extension to June 30, 2025 to ensure there is sufficient time to finish the work.
Policy Alternatives:
Alternative 1: Do not approve and authorize the City Manager to execute an amendment to the Professional Services Agreement with Ascent Environmental for consultant services related to the preparation of the Gateway-Main St. Specific Plan.
Pros: None.
Cons: Failure to approve and authorize the City Manager to execute an amendment to the professional services agreement with Ascent Environmental would result in the City being unable to finish updating the Midtown Specific Plan and forgoing $500,000 in approved PDA grant funds, which need to be expended within 36 months of execution of a funding agreement with MTC. Without the Milpitas Gateway/Main Street Specific Plan, the existing Midtown Specific Plan would remain in place. Absent new policies and standards to facilitate catalytic development, the Main Street area and Calaveras Corridor would likely continue to suffer from disinvestment and a lack of identity. The City would potentially miss out on the opportunity to revitalize an important area of the city.
Reason not recommended: Considering the City’s anticipated Regional Housing Needs Allocation (RHNA) from the Association of Bay Area Governments (ABAG), the Milpitas Gateway/Main Street Specific Plan is needed to help Midtown realize its full development potential and support regional and state efforts to address
critical housing needs. If Midtown is unable to accommodate more housing development, it will be more challenging to meet the City’s RHNA obligation. Moreover, the Milpitas Gateway/Main Street Specific Plan is needed to implement the vision of the recently adopted General Plan, which establishes Midtown as a key opportunity area for new economic growth and development in the City.
Fiscal Impact:
None. The proposed amendment is to extend the contract and the project budget will not change.
California Environmental Quality Act:
Not applicable. The selection and contractual arrangement of planning services do not constitute a project, in accordance with Section 15378 of the CEQA Guidelines.
Recommendation:
(1) Approve an amendment to the Professional Services Agreement with Ascent Environmental for consultant services related to preparation of the Gateway-Main St. Specific Plan, extending the contract timeline for professional services without incurring any additional costs; and (2) Authorize the City Manager to execute the amended agreement.
Attachment:
(a) Amendment No. 5 to the Professional Services Agreement with Ascent Environmental
Amendment No. 5 – Ascent Environmental
AMENDMENT NO. 5
TO THE AGREEMENT
BETWEEN THE
CITY OF MILPITAS AND ASCENT ENVIRONMENTAL INC
FOR
MAIN STREET GATEWAY SPECIFIC PLAN UPDATE
This Amendment No. 5 is entered into this day of __________________, by and between the City of Milpitas, a municipal corporation of the State of California (hereafter referred to as "City"), and Ascent Environmental, Inc. , a corporation (hereafter referred to as " Consultant"). City and Consultant are sometimes individually referred to as “Party” and collectively as “Parties” in this Amendment No 4 .
RECITALS
WHEREAS, on September 29, 2021, the Parties entered into an Agreement for Main Street Gateway Specific Plan Update (the “Agreement”) for the term period of September 29, 2021 to June 30, 2023 with a not to exceed sum of $ 930,708.00; and WHEREAS, on July 29, 2022 the parties amended the Agreement to increase the not to exceed amount by $19,500.00 to $950,208.00 and extend the agreement to December 31, 2023.
WHEREAS, on April 20, 2023 the parties amended the Agreement for Internal Shifts in Budget Allocations, and extend the Agreement to June 30, 2024,with no change in compensation.
WHEREAS, on December 4, 2023 the parties amended the Agreement to for Internal Shifts in Budget Allocations, and to add $19,500.00 to the overall contract to $969,708.00.
WHEREAS, on May 15, 2024 the parties amended the Agreement for Internal Shifts in Budget Allocations, and to add $90,000.00 to the overall contract to $1,059,708.00.
WHEREAS, the parties now desire to amend the Agreement to extend the Agreement to June 30, 2025,with no change in compensation.
NOW THEREFORE, in consideration of the mutual covenants and conditions herein contained, the Parties agree to amend the Agreement as follows:
1. 5. Term. is hereby amended to read as follows:
The term of this Agreement shall be from the Date first written above to June 30, 2025, unless earlier terminated as provided herein. The City reserves the right to review the Consultant’s performance at the end of each year and cancel all or part of the Agreement.
2. All other provisions of the Agreement not amended by this Amendment No. 5 shall remain in full force and effect.
Amendment No. 5 – Ascent Environmental
[SIGNATURES ON THE FOLLOWING PAGE]
3 SIGNATURE PAGE OF AMENDMENT
NO. 5 TO THE AGREEMENT FOR
MAIN STREET GATEWAY SPECIFIC PLAN UPDATE BETWEEN
THE CITY OF MILPITAS AND ASCENT ENVIRONMENTAL INC
IN WITNESS WHEREOF, the Parties have executed this Amendment No. 5 as of the date first written above.
CITY OF MILPITAS ASCENT ENVIRONMENTAL INC
Approved By:
Ned Thomas, City Manager Signature
Date Name
Approved As To Form:Title
Date
Michael Mutalipassi, City Attorney
Approved:
Luz Cofresi-Howe, Finance
Director/Risk Manager
Approved As to Content:
Jay Lee, Director of Planning and Neighborhood
Services
CITY OF MILPITAS
AGENDA REPORT
(AR)
Item Title: Waive the Second Reading and Adopt Ordinance No. 38.855 Amending the Zoning Ordinance (Title XI, Chapter 10 of the Milpitas Municipal Code) and the Zoning Map to create the new Business Park Research and Development Zone and Metro Area Zones (Staff Contact: Jay Lee, Planning Director, 408-586-3077) Category: Consent Calendar-Community Development
Meeting Date: 6/18/2024
Recommendation: 1. Determine that the EIR Addendum adequately analyzes the potential environmental impacts associated with the proposed Zoning Amendments and is in compliance pursuant to CEQA Guidelines §15162 and §15164; and
2. Move to waive the second reading and adopt Ordinance No. 38.855 approving Zoning Text and Zoning Map Amendment No. ZA24-0002 to create the new Business Park Research and Development Zone and Metro Area Zones.
BACKGROUND:
This Ordinance was introduced at the City Council meeting held on June 4, 2024 to amend the Zoning Ordinance (Title XI, Chapter 10 of the Milpitas Municipal Code) and the Zoning Map to create the new Business Park Research and Development Zone (“BPRD”) and Metro Area Zones. At the direction of the Council, the Ordinance was modified to increase the by right warehouse size in the BPRD from 150,000 sq. ft. to 200,000 sq. ft. The Ordinance is now ready for its second reading and adoption as amended.
FISCAL IMPACT:
Adoption of the Business Park Research and Development (BPRD) and Metro Area Zones is expected to bring significant economic benefits to Milpitas. Because of the high-density development that is encouraged in the Metro Area as well as the emerging and innovative technology industries that are allowed in the BPRD area, these zoning districts are anticipated to encourage new development and investment in the city, contributing to the growth of the Milpitas economy. Development of new high-density residential and commercial development in the Metro Area will bring significant property tax and sales tax revenue to the City. The BPRD zoning district will incentivize new development of properties designed for high-tech, advanced manufacturing, and R&D uses, which will bring new high-paying employment opportunities and significant tax revenue to the City. This will benefit not only the local economy of Milpitas, but also the City’s long-term fiscal outlook.
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):
An Addendum to the Final Environmental Impact Report (EIR) for the Milpitas 2040 General Plan and Subsequent Final Environmental Impact Report (SFEIR) for the Milpitas Metro Specific Plan was prepared and published on April 26, 2024. The Addendum finds that the impacts of the proposed project remain consistent with the impacts previously analyzed in the certified General Plan FEIR and Metro Specific Plan SFEIR. The Addendum further concludes that proposed General Plan amendment and zoning ordinance and zoning map amendments do not require any substantial revisions to the General Plan FEIR or Metro Specific Plan SFEIR, and that no new significant information or changes in circumstances surrounding the proposed project have occurred since the certification of the General Plan FEIR or Metro Specific Plan SFEIR. The Addendum demonstrates that the previous analysis completed for the General Plan Update FEIR and Metro Specific Plan SFEIR remain adequate under CEQA; therefore, no further environmental review is required.
RECOMMENDATION:
1. Determine that the EIR Addendum adequately analyzes the potential environmental impacts associated with the proposed Zoning Amendments and is in compliance pursuant to CEQA Guidelines §15162 and §15164.
2. Move to waive the second reading and adopt Ordinance No. 38.855 approving Zoning Text and Zoning Map Amendment No. ZA24-0002 to create the new Business Park Research and Development Zone and Metro Area Zones.
ATTACHMENT(S):
1. Ordinance No. 38.855
REGULAR
NUMBER: 38.855
TITLE: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF MILPITAS AMENDING TITLE XI, CHAPTER 10, SECTION 2 (DEFINITIONS), SECTION 3 (ZONING DISTRICTS), SECTION 7 (INDUSTRIAL ZONES AND STANDARDS), SECTION 53 (OFF-STREET PARKING REGULATIONS), AND SECTION 56 (NONCONFORMING BUILDINGS AND USES); AND ADDING SECTION 9 (METRO AREA ZONES AND STANDARDS) AND SUBSECTION 54.18 (2023-2031 HOUSING ELEMENT SITES);
RELATING TO THE CREATION OF NEW ZONING DISTRICTS (BUSINESS PARK RESEARCH AND DEVELOPMENT ZONE, METRO AREA ZONES); AND
AMENDING THE ZONING MAP OF THE CITY OF MILPITAS TO CHANGE THE
ZONING CLASSIFICATIONS OF CERTAIN PARCELS THROUGHOUT THE CITY TO ACHIEVE CONSISTENCY BETWEEN THE MILPITAS 2040 GENERAL PLAN, MILPITAS METRO SPECIFIC PLAN, ZONING ORDINANCE, AND ZONING MAP.
HISTORY:This Ordinance was introduced (first reading) by the City Council at its meeting of ____________________, upon motion by_________________________ and was adopted (second reading) by the City Council at its meeting of _______________, upon motion by ____________________________. The Ordinance was duly passed and ordered published in accordance with law 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
RECITALS AND FINDINGS:
WHEREAS, the City of Milpitas, California (the “City”) is a municipal corporation, duly organized under the constitution and laws of the State of California; and WHEREAS, California Government Code Section 65800 et seq. authorizes the adoption and administration of zoning laws, ordinances, rules, and regulations by cities as a means of implementing the General Plan; and
WHEREAS, Section 3.03 of Chapter 10 Zoning of Title XI of the Milpitas Municipal Code, divides the City into zoning districts; and
WHEREAS, the City Council is the final authority on General Plan, Specific Plan, and Zoning amendments, including amendments to the Zoning Ordinance and Zoning Map; and WHEREAS, on March 9, 2021, the Milpitas City Council adopted the Milpitas 2040 General Plan, updating and revising the land use policies, goals, and objectives contained in the City’s previous General Plan; and
WHEREAS, on February 7, 2023, the Milpitas City Council adopted the Metro Specific Plan to guide future land use, development, and public and private investment in the area surrounding the Milpitas Transit Center, the Milpitas Bay Area Rapid Transit (BART station), and the Great Mall; and WHEREAS, California Government Code Section 65860 requires a city’s zoning ordinance to be consistent with its adopted general plan, including any specific plan that has been adopted to establish planning policies for a defined geographic area of the city; and WHEREAS, the City has prepared a Zoning Text and Zoning Map Amendment (“Amendments”) to implement the land use policies and goals of the Milpitas 2040 General Plan and Metro Specific Plan, including the creation of a new Business Park Research and Development Zone and new Metro Area Zones, and to ensure overall consistency between the City’s General Plan, Metro Specific Plan, Zoning Ordinance, and Zoning Map; and
WHEREAS, pursuant to Milpitas Municipal Code §§ XI-10-57.02(G)(3), the City Council finds the Zoning Amendments set forth herein to be consistent with the General Plan, and specifically with Land Use Element Actions LU-1a (update the City’s Zoning Map as appropriate to ensure consistency with the land use designations shown on Figure LU-1[Land Use Map]) and LU-1b (review the Zoning Ordinance and update as appropriate to reflect Land Use goals, policies, and implementation actions included in this Plan); and WHEREAS, per Milpitas Municipal Code § XI-10-57.02(G)(3), the City Council likewise finds that the Zoning Amendments set forth herein will not adversely affect the public health, safety and welfare, in that the proposed changes serve to implement several of the City’s adopted land use and economic development policies by facilitating new, higher-density and transit-oriented development in appropriate areas and attracting new businesses to Milpitas, thereby advancing numerous goals related to community design, environment, and economic development and supporting overall community health and well-being in Milpitas; and WHEREAS, on March 9, 2021, a Final Environmental Impact Report (FEIR) (SCH # 2020070348) was certified for the Milpitas 2040 General Plan in accordance with the California Environmental Quality Act (CEQA); and
WHEREAS, on February 7, 2023 a Subsequent Final Environmental Impact Report (SFEIR) (SCH # 2006032091) was certified for the Milpitas Metro Specific Plan; and
WHEREAS, an Addendum to the certified Milpitas 2040 General Plan FEIR and Metro Specific Plan SFEIR was published on April 26, 2024, which concluded that the impacts of the proposed Zoning Text and Map Amendments remain consistent with the impacts previously analyzed in the Environmental Impact Reports, and therefore no further environmental analysis pursuant to CEQA is required; and WHEREAS, on May 22, 2024, the Planning Commission held a duly noticed public hearing on the subject application, considered evidence presented by City staff and other interested parties, and adopted Resolution 24-017 recommending, among other things, that the City Council approve and Zoning Amendment ZA24-0002 and adopt the Comprehensive Zoning Ordinance Update Phase I Addendum to the General Plan FEIR (SCH # 2020070348) and Milpitas Metro Specific Plan SFEIR (SCH # 2006032091) related thereto; and WHEREAS, all legal prerequisites to the adoption of this ordinance and the City Council’s review and approval of the General Plan amendments, Zoning amendments, and CEQA review contained herein have been met.
NOW, THEREFORE, the City Council of the City of Milpitas does ordain as follows:
SECTION 1. RECORD AND BASIS FOR ACTION
The City Council has duly considered the full record before it, which may include but is not limited to such things as the City staff report, testimony by staff and the public, and other materials and evidence submitted or provided to the City Council. 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
Based on its review of the entire record, including the staff report, public comments and testimony presented to the Planning Commission and City Council, and the facts outlined below, the City Council hereby finds and determines that the potential environmental effects of the proposed Amendments have been adequately reviewed and analyzed. An Addendum to the Final Environmental Impact Report (FEIR) for the Milpitas 2040 General Plan (State Clearinghouse No: 2020070348) and Subsequent Final Environmental Impact Report (SFEIR) for the Milpitas Metro Specific Plan (State Clearinghouse No: 2006032091) was published on April 26, 2024. The Addendum finds that the impacts of the proposed project remain consistent with the impacts previously analyzed in the certified General Plan FEIR and Metro Specific Plan SFEIR. The Addendum further concludes that proposed project does not require any substantial revisions to the General Plan FEIR or Metro Specific Plan SFEIR, that no new significant information or changes in circumstances surrounding the proposed project have occurred since the certification of the General Plan FEIR or Metro Specific Plan SFEIR, and that the previous analysis completed for the General Plan Update FEIR and Metro Specific Plan SFEIR remains adequate under CEQA. The City Council therefore finds that its actions are consistent with CEQA and State CEQA guidelines and that no additional environmental review is required. The City Council approves and adopts this Addendum as if fully set forth herein.
SECTION 3. ZONING TEXT AND MAP AMENDMENT FINDINGS (XI-10-57.02) The City Council finds based upon the full record before it that all findings and prerequisites required for the Zoning Text and Zoning Map amendments proposed have been met, including those set forth in the Government Code, including Sections 65850 et seq., and the Milpitas Municipal Code, including Section XI-10-57.02.The City Council makes the following further and specific findings based on the evidence in the public record in support of Zoning Amendment No. ZA24-0002:
A. The proposed amendment is consistent with the General Plan.
The fundamental purpose of the proposed Zoning Ordinance and zoning map amendments is to achieve consistency with the General Plan, as required by state law. This detailed set of Zoning Ordinance and zoning map amendments follows the adoption of the comprehensive update to the City’s general plan, titled the Milpitas 2040 General Plan, as well as the adoption of the Metro Specific Plan. The creation of the new Business Park Research and Development Zone and the new Metro Area Zones, along with updates to the zoning classifications of certain parcels throughout the city, accomplish the important objective of bringing the Zoning Ordinance and zoning map into consistency with the General Plan and Metro Specific Plan.
B. The proposed amendment will not adversely affect the public health, safety and welfare.
The proposed zoning changes serve to implement several of the City’s adopted land use and economic development policies that promote the public interest. They would help facilitate new, higher density and transit-oriented development in appropriate areas, which would serve to advance numerous City goals related to community design, environment, and economic development. They would also provide clear and user-friendly regulatory requirements and standards for new development, improving outcomes for property owners and adjacent residents and businesses. In summary, the proposed zoning amendments would support overall community health and well-being in Milpitas.
SECTION 4. AMENDMENT OF MILPITAS MUNICIPAL CODE TITLE XI, CHAPTER 10, SECTION 2
Title XI, Chapter 10, Section 2 ( Definitions), of the Milpitas Municipal Code is hereby amended to read as follows:
Section 2 - Definitions
XI-10-2.01 Purpose and Intent
The purpose of this chapter is to ensure precision in interpretation of this title. This section provides definitions of terms and phrases used in this Zoning Code that are technical or specialized, or that may not reflect common usage. If any of the definitions in this chapter conflict with definitions in other provisions of the Municipal Code, these definitions shall control for the purposes of this Zoning Code. If a word is not defined in this chapter, or other provisions of the Municipal Code, the most common dictionary definition is presumed to be correct.
XI-10-2.02 General Definitions
A. The word "shall" is mandatory and not discretionary. The word "may" is permissive and discretionary.
B. The word "should" indicates a guideline that must be followed in the absence of compelling considerations to the contrary.
C. In the case of any difference of meaning or implication between the text of any provision and any caption or illustration, the text shall control.
D. Unless the context clearly indicates to the contrary, words in the present and the future tense are interchangeable, and words in the singular and plural are interchangeable.
E. Unless the context clearly indicates to the contrary, the following conjunctions shall be interpreted as follows:
1. "And" indicates that all connected items or provisions shall apply;
2. "Or" indicates the connected items or provisions apply singly; and
3. "And/or" indicates the connected items or provisions may apply singly or in any combination; and
4. "Either…or" indicates that the connected items or provisions shall apply singly but not in combination.
F. The word "used" shall include arranged, designed, constructed, altered, converted, rented, leased, occupied, or intended to be utilized.
G. The words "Planning Director" shall mean the Planning Director of the City or designee.
H. The words "Planning Division" shall mean staff representing the City in implementing this chapter, the General Plan, and other regulations affecting land use.
I. The words "City Engineer" shall mean the City Engineer of the City or designee.
J. The words "Building Official" shall mean the Building Official of the City or designee charged with the administration and enforcement of the Building Code of the City of Milpitas.
K. The words "City Manager" shall mean the City Manager of the City or designee.
L. The words "Planning Commission" or "Commission" shall mean the City Planning Commission.
M. The word "Council" shall mean the City Council, the governing body of the City.
N. The word "City" shall mean the City of Milpitas.
O. The word "County" shall mean the County of Santa Clara.
P. The word "State" shall mean the State of California.
Q. The words "Zoning Ordinance" or "this Chapter" or "Zoning Code" shall mean Title XI, Chapter 10 of the Municipal Code of the City.
R. The words "General Plan" shall mean the General Plan of the City.
S. The word "code" shall mean the municipal code of the City.
T. Unless otherwise indicated, reference in this Chapter to whole numbers of sections includes all of the decimal-numbered paragraphs listed under such whole number section; i.e., a reference to Section 1.00 includes Subsections 1.01, 1.01-1 where the same are applicable.
U. The word "lot" includes "plot".
V. The word "building" includes "structure" except as specified.
W. The words "Enforcement Officer" mean that person or persons specifically designated by the City Manager to enforce the provisions of this Chapter.
X. The words "Zoning Administrator" shall mean the City Zoning Administrator.
XI-10-2.03 Definitions
A
"Abate" shall mean to repair, replace, remove, destroy or otherwise remedy the condition in violation of this Chapter.
"Accessory Building or Use" means a subordinate building or use, whose purpose is clearly incidental to that of the main building or the use of the land, and which shall not contain living or sleeping quarters or storage for commercial vehicles in excess of three-quarter (¾) ton size. Accessory dwelling units, as defined in subsection XI-10-13.08 "Accessory Dwelling Units," are exempted from the prohibition against living and sleeping quarters. An accessory building shall be considered attached to the main building if:
1. It shares a common wall with the main building; or
2. It shares an integral roof structure having the same framing system and roof covering as the main building and is separated from the main structure by no more than ten (10) feet at any given point. "Accessory Structure" means a structure subordinate to the principal use of a building on the same lot and serving a purpose customarily incidental to the use of the principal building. An accessory structure is that which an accessory building is not, by definition. Examples include, but are not limited to fences, trellises, covered patios, and porte cocheres.
“Active Use” means a use that attracts walk-in visitors and has a high degree of transparency from the street. Active uses include but are not limited to retail, restaurants, bars, markets, theaters, salons, yoga studios, art studios/galleries, banks, offices, and clinics. Active uses also include ground floor residential shared amenities, such as a lobby, gym, or conference room.
"Adjacent" means having a common border with, or being separated from such a common border by a right-of-way, alley or easement. Properties separated by a street, alley, intersection, or other public right-of-way (other than an elevated interstate freeway), shall be considered abutting when their property lines would touch in any way if drawn to the center line of such street, alleyway, intersection, or other public right-of-way. “Advanced Manufacturing” means the use of innovative technologies to create existing and new products or to improve products and processes. Advanced manufacturing focuses on the rapid transfer of science and technology into production activities and may incorporate high technology elements such as information, automation, computation, software, sensing, and networking. Advanced manufacturing may include storage space for raw materials and/or finished goods that actively supports the primary use. "Airport" means any area of land or water designed, used, or intended to be used or set aside for the landing and taking off of aircraft. The term "Airport" includes all necessary taxi-ways, aircraft storage and tie-down area, hangars and other necessary buildings and open spaces.
"Alley" means any public thoroughfare which affords only a secondary means of access to abutting property.
"Alteration, Structural" means any change which would tend to prolong the life of the supporting members of a building or structure, such as bearing walls, columns, beams or girders. "Amateur Radio Facility" means a wireless communication facility operated by an FCC licensed amateur radio operator within the Amateur Radio Service (USC Title 47, Part 97). "Amateur Radio Operator" means a person holding written authorization to be the control operator of an Amateur Radio facility. This authorization may be in the form of a license or permit issued by the Federal Communications Commission or a foreign national or multi-national license or permit recognized by treaty as valid in the United States.
"Antenna" means any system of towers, poles, panels, rods, wires, drums, reflecting discs or similar devices used for the transmission or reception of electromagnetic waves. See also "Satellite dish or satellite antenna."
Apartment House. See "Dwelling, Multiple-Family."
Apartment, Efficiency. Efficiency apartment means a dwelling unit in a multi-family building consisting of not more than one (1) habitable room, together with kitchen or kitchenette and sanitary facilities. "Assembly" see “Places of Assembly.”
"Assembly from pre-processed materials" means assembling, packaging, or distributing from previously prepared materials, such as cloth, plastic, paper, leather, precious or semi-precious metals or stones, electric or electronic instruments and devices such as television, radios, and pharmaceutical products. Assembly in the