December 3, 2024 Milpitas City Council Agenda Page 1
JOINT MEETING OF THE MILPITAS
CITY COUNCIL AND HOUSING AUTHORITY
AGENDA
TUESDAY, DECEMBER 3, 2024
CITY COUNCIL CHAMBER, 455 E. CALAVERAS BLVD, MILPITAS, CA 6:00 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:
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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_pjMeA0yNR_i6Y9xUt2dIXw 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.
December 3, 2024 Milpitas City Council Agenda Page 2
CALL MEETING TO ORDER by Mayor and ROLL CALL by City Clerk (6:00 PM)
ADJOURN TO CLOSED SESSION
(a) CONFERENCE WITH LEGAL COUNSEL
Existing Litigation Pursuant to Government Code § 54956.9(d)(2):
Brian Bruce v. City of Milpitas, WCAB case number ADJ 13140823.
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)
1. Receive Report on Manufacturing Day 2024 and Issue Commendation Certificates (Staff Contact:
Alex Andrade, Economic Development and Strategic Initiatives Director, 408-586-3046) Recommendation: Receive report on Manufacturing Day 2024 and issue commendation certificates to event collaborators.
PUBLIC FORUM (7:20 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 (7:25 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.
C2. Receive City Council Calendar of Meetings for December 2024 (Staff Contact: Suzanne Guzzetta, City Clerk, 408-586-3001)
Recommendation: Receive City Council Calendar of Meetings for December 2024.
C3. Approve City Council Special and Regular Meeting Minutes of November 19, 2024 (Staff Contact:
Suzanne Guzzetta, City Clerk, 408-586-3001)
Recommendation: Approve City Council Special and Regular Meeting minutes of November 19, 2024.
C4. Receive the Preview List of Anticipated Items for the Next Regular City Council Meeting (Staff Contact: Suzanne Guzzetta, City Clerk, 408-586-3001)
December 3, 2024 Milpitas City Council Agenda Page 3
Recommendation: Receive the list of anticipated agenda items for the next regular City Council meeting.
C5. 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.
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 Winter 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 winter recess from the last City Council meeting held on December 10, 2024 through January 7, 2025.
C7. Adopt a Resolution Updating the Conflict of Interest Code and Amending the List of Designated Positions Requiring Disclosure (Staff Contact: Suzanne Guzzetta, City Clerk, 408-586-3001; and Michael Mutalipassi, City Attorney, 408-586-3041)
Recommendation: Adopt a resolution updating the City of Milpitas Conflict of Interest Code, including the list of designated positions required to annually file the FPPC Form 700 Statement of Economic Interests.
C8. Approve and Authorize the City Manager to Execute Amendment No. 3 to the Professional Services Agreement with Liebert Cassidy Whitmore to Provide Essential Labor Relations and Other Services (Staff Contact: Kelli Parmley, Human Resources Director, 408-586-3086) Recommendation: Approve and authorize the City Manager to execute Amendment No.3 to the Professional Services Agreement with Liebert Cassidy Whitmore (LCW) for an additional agreement amount of $200,000, subject to the annual appropriation of funds.
C9. Adopt a Resolution to Approve a Cost-of-Living Salary Adjustment for the City Manager as Directed by the City Council (Staff Contact: Kelli Parmley, Human Resources Director, 408-586- 3086)
Recommendation: Adopt a resolution to approve a 3% Cost-of-Living (COLA) salary adjustment for the City Manager as directed by the City Council.
C10. Consider Personnel Realignment to Support Department Operations (Staff Contact: Jay Lee, Planning Director, 408-586-3077)
Recommendation: Adopt a resolution to approve the deletion of a vacant Associate Planner position and the addition of a Junior/Assistant Planner position in the Planning Department.
C11. Adopt a Resolution to Accept the Grant Award from and Approve an Agreement with the County of Santa Clara Public Health Department to Implement an Ordinance to Prevent Youth Access to Tobacco Products (Staff Contact: Jay Lee, Planning Director, 408-586-3077) Recommendation: Adopt a resolution to accept a grant award of $22,997 from the County of Santa Clara Public Health Department and authorize the City Manager to execute an Agreement with the Santa Clara County Public Health Department for the Healthy Cities Program in the amount of $22,997.
December 3, 2024 Milpitas City Council Agenda Page 4
C12. Adopt a Resolution Granting Acceptance of the Street Resurfacing Project 2024 and Project Nos. 4283, 4304, and 4305, Authorizing the City Engineer to File a Notice of Completion and Issue a Notice of Final Acceptance After the One-Year Warranty (Staff Contact: Christian Di Renzo, Public Works Director, 408-586-2602; and Michael Silveira, City Engineer, 408-586-3303) Recommendation: (1) Adopt a resolution granting acceptance of the Street Resurfacing Project 2024 and Project Nos. 4283, 4304, and 4305; and (2) Authorize the City Engineer to file a Notice of Completion and issue a Notice of Final Acceptance after the one-year warranty.
C13. Receive an Update on the Security Improvements at the McCarthy Ranch Sewer Lift Station (Main Lift) and Determine that the Condition Continues to Constitute an Emergency (Staff Contact: Christian Di Renzo, Public Works Director, 408-586-2602) Recommendation: (1) Receive an update on the security improvements at the McCarthy Ranch Sewer Lift Station; and (2) Determine by a four-fifths vote that the condition continues to constitute an emergency.
LEADERSHIP AND SUPPORT SERVICES (7:30 PM)
14. Accept the City of Milpitas Annual Comprehensive Financial Report and Other Related Annual Audited Reports for the Fiscal Year Ended June 30, 2024 (Staff Contact: Luz Cofresí-Howe, Finance Director, 408-586-3111)
Recommendation: Accept the City of Milpitas Annual Comprehensive Financial Report and other related annual audited reports for the fiscal year ended June 30, 2024.
ANNOUNCEMENTS AND FUTURE AGENDA ITEMS (8:00 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 (8:05 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.
CITY OF MILPITAS
AGENDA REPORT
(AR)
Item Title: Receive Report on Manufacturing Day 2024 and Issue Commendation Certificates (Staff Contact: Alex Andrade, Economic Development and Strategic Initiatives Director, 408-586-3046)
Category: Presentations
Meeting Date: 12/3/2024
Recommendation: Receive report on Manufacturing Day 2024 and issue commendation certificates to event collaborators.
BACKGROUND:
Manufacturing Day is an initiative of The Manufacturing Institute to inspire and build the future manufacturing workforce and generate awareness about the manufacturing industry among high school students in Milpitas.
This event is celebrated on the first Friday of October, but communities around the country celebrate Manufacturing Day (MFG Day) throughout October via various events including facility tours, town hall events, educational fairs, hiring events, and classroom visits.
The City of Milpitas and Milpitas Unified School District (MUSD) hosted Milpitas’ first Manufacturing Day event in 2017 in partnership with Flex, KLA Corporation and Cordis to convene students, educators, and local manufacturers. This event introduces high school students to career opportunities in the manufacturing industry and exposes employers to members of Milpitas’ future labor force. The City and MUSD have collaborated with local manufacturers and industry partners as outlined below. The 2023 event marked the first in-person event since 2019 due to COVID-19 pandemic restrictions resulting in webinars from 2020 to 2022.
This year’s event was an in-person event occurring at BD Biosciences and Corsair Gaming, which both hosted MFG Day for the first time.
Previous Site Hosts and Collaborators
2017: Cordis, Flex, KLA, and MUSD
2018: Nanosys, View Inc., and MUSD
2019: Flex, Onanon, TDK Headway Technologies, and MUSD
2020: Onanon, Flex, Evergreen Valley College, and MUSD
2021: NOVAworks, TDK Headway Technologies, SEMI Foundation, and MUSD 2022: Flex, NOVAworks, SEMI Foundation, and MUSD
2023: Flex, KLA, and MUSD
The Office of Economic Development has implemented Action 17.1. of the City Council-adopted Economic Development Strategy and Implementation Actions which includes continued support for MFG Day and to introduce youth to potential social and economic mobility opportunities through jobs in manufacturing. This Agenda Report summarizes the planning, preparation, execution, and results of the 2024 event, and recognizes the collaborators for their contributions to this successful event.
ANALYSIS:
On October 4, 2024, the Office of Economic Development in collaboration with MUSD, BD Biosciences and Corsair Gaming hosted 90 people including 55 high school students, City and school district officials, teachers, the Milpitas Chamber of Commerce, and community members during the eighth annual event. Students represented Calaveras Hills High School, MUSD Innovation Campus, Milpitas High School, and Milpitas Middle College along with MUSD Board of Education members Minh Ngo, Kelly Yip-Chuan, Anu Nakka, Chris Norwood, and Robert Jung, as well as Superintendent Cheryl Jordan. City representatives included Mayor
Carmen Montano, Vice Mayor Evelyn Chua, and Council Members Hon Lien and Anthony Phan, as well as Economic Development and Trade Commissioners Chris Norwood and Jacob Sanchez, City Manager Ned Thomas, Assistant City Manager Matt Cano, as well as members of the executive leadership team and economic development staff.
The event engaged students and guests in engineering activities, manufacturing games, facility tours, product and process demonstrations, video game play, and a panel discussion and Q&A session with employees.
Event participants included BD Biosciences Vice President of Global Operations Juan Pablo Solis, Director of Operations Strategy Adam Chiasson and Senior Director Gerald Llorach. Corsair participants included Co- Founder Andy Paul and Senior Managers Bhawna Gauba and Joseph Ocbina. One guest speaker, David Bagaoisan, serves as Corsair Gaming’s vice president of global manufacturing and is a Milpitas High School alumnus. Students participated in a simulated manufacturing efficiency activity and physics activity at BD Biosciences while at Corsair Gaming, students learned how to build a gaming computer, use gaming products, and play video games including a race car simulator.
City staff surveyed students about their MFG Day experience via an online form to which 20 students responded (36% response rate). Response rates between 20% and 25% are considered acceptable for online surveys. Respondents represented students from 9th through 12th grade and three high schools and MUSD Innovation Campus.
Student Event Survey Summary
•95% (19 respondents) stated the event provided insights into each company’s work and the technology and biosciences sectors as a whole, very well, or somewhat well. •85% (17 respondents) stated the event influenced their understanding of career opportunities in technology and advanced manufacturing positively.
•65% (13 respondents) stated that they feel more excited to pursue a career in technology and advanced manufacturing.
•95% (19 respondents) stated that they would encourage a friend to attend next year’s MFG Day event.
These responses indicate that most students’ experiences were educational and enjoyable with suggestions for enhancing the student experience at future MFG Day events. All respondent data (Attachment A) is included in this Agenda Report.
Over a 12-week period, City staff collaborated with MUSD, The Manufacturing Institute, site hosts and local businesses on the following tasks in planning and executing the 2024 event:
•Drafting, issuing, and collecting waiver and release documentation; •Student transportation;
•Event scheduling, logistics, and materials;
•Designing, ordering and distributing event t-shirts and banners; •Coordinating catered lunches;
•Coordinating photography and videography services.
As a gesture of the City’s appreciation, staff recommends the City Council issue Certificates of Commendation to Milpitas Unified School District, BD Biosciences, Corsair Gaming, Simon Properties and City staff for their professional, efficient and collaborative execution in successfully engaging MUSD students in Manufacturing Day 2024.
FISCAL IMPACT:
While there are no costs associated with adopting the recommended action, costs were realized for student t- shirts, event staff lunches, event banners, and videography and photography services. The Office of Economic Development shared costs with event partners for event-branded t-shirts for students ($288) and covered the full cost of videography and photography services ($2,500) provided by the City’s contracted media service provider Polarlight Productions, which included a four-minute video capturing the event. The Office of
Economic Development also covered event banner costs ($150) and lunch costs ($467) for BD Biosciences and Corsair Gaming staff involved with event planning and execution. Event costs covered by the Office of Economic Development totaled $3,405. Simon Properties, owner of the Great Mall of Milpitas, underwrote the entire cost of student and guest lunches ($2,021) provided by Milpitas delicatessen Crust Sourdough. The City appreciates the generous collaboration among this year’s event partners.
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):
This item is not a project under the California Environmental Quality Act (CEQA) Guideline 15378(b).
RECOMMENDATION:
Receive report on Manufacturing Day 2024 and issue certificates of commendation to event collaborators.
ATTACHMENT(S):
(a) Student Survey Responses
(b) 2024 Manufacturing Day Event Photos
Manufacturing Day Student Survey Responses
Response Data
• Survey Distributed to 55 Students
• 20 Respondents
• Response Rate: 36%
• Respondents by Grade Level:
o 9 th Grade: 5 respondents
o 10th Grade: 2 respondents
o 11th Grade: 7 respondents
o 12th Grade: 2 respondents
o Did not provide grade level: 4 respondents
Reponses
1. How well did the event provide insights into each company’s work and the technology and biosciences sectors as a whole?
2. How do you feel the event influenced your understanding of career opportunities in technology and advanced manufacturing?
3. In one or two sentences, what was the most interesting part of the day for you and why?
The video games were fun.
Corsair was interesting and fun
The most interesting part of the day was seeing how all the companies work.
The biotech device explanation
I liked playing video games
The most interesting part was the gaming activity since it inspired me to work hard to be able to afford one like that.
The most interesting part of the day was during lunch, when I was able to sit down with Robert Jung and talk about the future of AI and the engineering field.
The Corsair gaming experience
It was really engaging and wholesome to see people talk about their journey and ways to pursue their career pathways. Seeing the game room was awesome, the bright colors, every room of the building is organized and clean. Overall, everything was interesting, and I am grateful for the opportunity to engage and enjoy this experience.
Seeing the parts of the computer at Corsair and their functions.
Gaming room because it's fun.
The most interesting part was when we played “Fall Guys” in Corsair’s video game room. The second most interesting thing is when we dissected the computers at Corsair.
The most important part of the day was when BD Biosciences led us into their testing facility. I found it fascinating how their production and testing process worked even though the product itself didn’t particularly interest me.
Learning Computer parts and playing PC games.
The most interesting part was playing “Fall Guys” and playing with catapults.
BD’s product assembly was very insightful on what medical importance has on procedures.
Learning about the cell laser process at BD.
Corsair explaining the PC compartments was pretty interesting. The PC's were impressive and made it interesting.
The part where we got do hands on things and see some of the products made there. It was also interesting to hear how these products work on the inside.
I enjoyed looking at the parts of the machinery at BD, and then listening to the presenter talk about the different PC parts and their functions.
4. Do you feel more excited to pursue a career in these sectors?
5. Would you encourage a friend to attend next year’s Manufacturing Day?
6. What is one suggestion that you have for improving Manufacturing Day in the future?
Show more of the product creation process.
More time for video games.
Provide more time for us to explore the rooms.
Have the students design the shirts for extra credit.
I would say more hands on activity, however how everything is processed is wonderful still. :) More interactive activities.
Make the explanations simple and less wordy.
Give us more games to play in Corsair
There’s nothing I can think of. It was pretty good.
Make it more interactive with more fun games and things to do instead of a lot of lectures.
No suggestions Event went very well.
More gaming.
Maybe more hands on activities to get students engaged. For example, I like to work on things rather than seeing them on the screen. It would get students more engaged.
Manufacturing Day Event Photos
Images 1, 2 and 3 taken at BD Biosciences and courtesy of Polarlight Productions
Images 4, 5 and 6 taken at Corsair and courtesy of Corsair 1 2
3 4
5 6
Milpitas City Council Calendar
December 2024
Sunday Monday Tuesday Wednesday Thursday Friday Saturday 1 2 3
6:00 PM-Closed Session
7:00 PM-City Council
4 1:00 PM-Santa Clara VTA Monthly
Briefing - Northeast Group (CM)
7:00 PM-Community Housing
Commission (EC)
5 5:30 PM-Santa Clara VTA Board of
Directors (CM)
7:00 PM-City of Milpitas Annual Tree
Lighting Event, Civic Plaza
6 7
8 9
6:00 PM- Housing Opportunity
District Community Meeting
10 5:30 PM- Special Council Meeting
11 7:00 PM-Silicon Valley Clean Energy
Board of Directors (EC) (Cupertino)
12 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)
7:00 PM-Cities Assoc of SCC (CM)
13 14
15 16 17 18
6:00 PM-Energy and Environmental
Sustainability Commission (EC)
19 10:00 AM-VTA CMPP Meeting (CM)
20 21
22 23 24 25 26 27 City Hall and City Facilities Closed (Fire and Police are not affected) 28 29 30 31 City Hall and City Facilities Closed
(Fire and Police are not affected)
November 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
January 2025
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
November 19, 2024 Milpitas City Council Minutes Page 1
SPECIAL MEETING OF THE MILPITAS
CITY COUNCIL
MINUTES
TUESDAY, NOVEMBER 19, 2024
The City Council of the City of Milpitas convened in a Special Meeting of the Milpitas City Council on November 19, 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 5:36 PM. Roll Call was taken by City Clerk Guzzetta.
PRESENT: Mayor Montano, Councilmember Barbadillo, Councilmember Lien, Councilmember Phan ABSENT: Vice Mayor Chua
PLEDGE OF ALLEGIANCE
Councilmember Lien led the Pledge of Allegiance.
PUBLIC FORUM
There were no public speakers.
ANNOUNCEMENT OF CONFLICT OF INTEREST
Assistant City Attorney Creech asked the Mayor and City Councilmembers if they had any personal conflicts of interest. By roll call, there were no conflicts of interest (Absent: Chua).
DAGUPAN DELEGATION RECOGNITION
Mayor Montano and the Milpitas City Council recognized members of the Dagupan Sister City Delegation.
ADJOURNMENT
Mayor Montano adjourned the Special City Council meeting at 6:04 PM.
Draft meeting minutes submitted by City Clerk, Suzanne Guzzetta
November 19, 2024 Milpitas City Council Minutes Page 1
REGULAR MEETING OF THE MILPITAS
CITY COUNCIL
MINUTES
TUESDAY, NOVEMBER 19, 2024
The City Council of the City of Milpitas convened in a Regular Meeting on November 19, 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 7:00 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
Mayor Montano led the pledge of allegiance.
INVOCATION
Vice Mayor Chua provided the invocation.
PRESENTATIONS
Mayor Montano, joined by the City Council, presented proclamations in recognition of Nurse Practitioner Week and Small Business Saturday.
PUBLIC FORUM
There were the following public speakers:
1. Michael Tsai
2. Voltaire Montemayor
ANNOUNCEMENT OF CONFLICT OF INTEREST AND CAMPAIGN CONTRIBUTIONS Assistant City Attorney Creech asked the Mayor and City Councilmembers if they had any personal conflicts of interest. By roll call, there were no conflicts of interest. Assistant City Attorney Creech 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
After discussion, motion: to approve the agenda.
Motion/Second: Vice Mayor Chua/Councilmember Lien
Motion carried by the following:
November 19, 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 the following public speakers:
1. Voltaire Montemayor
2. Michael Tsai
3. Gabe Borland, IAFF President
After discussion, motion: to approve the consent calendar, hearing Item C20 separately but as part of the consent calendar.
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 November and December 2024 (Staff Contact:
Suzanne Guzzetta, City Clerk, 408-586-3001)
Received City Council Calendar of Meetings for November and December 2024.
2. Approve City Council City Council Meeting Minutes of November 5, 2024 (Staff Contact: Suzanne Guzzetta, City Clerk, 408-586-3001)
Approved City Council Meeting minutes of November 5, 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.
5. Consider Recommendations from Mayor Montano for Appointments to City Commissions (Contact: Mayor Carmen Montano, 408-586-3024)
Received recommendations from Mayor Montano and approved recommendations for appointments to City Commissions:
Arts Commission
1. Appoint Ashraya Siruvole as a Non-Voting Student member with a full term ending October 2027.
2. Reappoint Giuliana Brahim to a full term ending October 2027.
3. Reappoint Jamie Hekkelman to a full term ending October 2027.
Energy and Environmental Sustainability Commission
1. Reappoint Jared Acosta as the Schools Representative to an unexpired term ending October 2026.
2. Reappoint Lisa Oliver to a full term ending October 2027.
November 19, 2024 Milpitas City Council Minutes Page 3
3. Reappoint Tara Tony as a Non-Voting Student member with a full term ending October 2027.
4. Appoint Anuradha Sankaran to an unexpired term ending October 2025.
Library and Education Advisory Commission
1. Reappoint Therese Hoang to a full term ending June 2027.
2. Appoint Barbara Martens as Alternate No. 2 with a full term ending June 2027.
Parks, Recreation, and Cultural Resources Commission
1. Appoint Olania Castillo to an unexpired term ending June 2026.
Public Safety and Emergency Preparedness Commission:
1. Appoint Norma Morales to a full term ending June 2027.
Veterans Commission
1. Promote Leo Garcia to Alternate No. 1 with an unexpired term ending February 2028.
Youth Advisory Commission:
1. Appoint Samyuktha Rangarajan to an unexpired term ending September 2025.
6. Approve City Council Meeting Schedule for 2025 (Staff Contact: Suzanne Guzzetta, City Clerk, 408-586-3001)
Approved the 2025 Milpitas City Council meeting schedule.
7. Accept the FY 2023-24 Commissioners Annual Report for Six (6) Commissions and Approve Commission Work Plans for FY 2024-25 (Staff Contact: Suzanne Guzzetta, City Clerk, 408-586- 3001)
(1) Accepted the 2023-24 Commissioners Annual Report; and (2) Approved proposed Fiscal Year 2024- 25 Work Plans for (a) Community Housing Commission, (b) Economic Development and Trade Commission, (c) Energy and Environmental Sustainability Commission, (d) Planning Commission, (e) Public Safety and Emergency Preparedness Commission, and (f) Science, Technology, and Innovation Commission.
8. FY 2024-25 1st Quarter Financial Status Report for the Quarter Ended September 30, 2024 (Staff Contact: Luz Cofresí-Howe, Finance Director, 408-586-3111) Reviewed the FY 2024-25 Quarterly Financial Status Report for the quarter ended September 30, 2024.
9. Authorize the City Manager to Execute an Agreement with ClearSource Financial Consulting for a Comprehensive Fee Study for Implementation in FY 2025-2026 (Staff Contact: Luz Cofresí- Howe, Finance Director, 408-586-3111)
Authorized the City Manager to execute an agreement with ClearSource Financial Consulting for a Comprehensive Fee Study for implementation in FY 2025-2026 for an amount not-to-exceed $77,520 without the need for further competitive procurement.
10. Approve and Authorize the City Manager or Designee to Execute a Two-Year Professional Services Agreement with TDG Engineering, Inc. for a Milpitas Gateway-Main Street Sense of Place Plan (Staff Contact: Luz Cofresí-Howe, Finance Director, 408-586-3111; and Jay Lee, Planning Director, 408-586-3077)
(1) Adopted Resolution No. 9363 to accept a grant award of $600,000 from the Metropolitan Transportation Commission, RFP No. 24-134, (2) Approved and authorized the City Manager or
November 19, 2024 Milpitas City Council Minutes Page 4
designee to negotiate and execute, with the approval of the City Attorney, a two-year Professional Services Agreement with TDG Engineering, Inc. for a Milpitas Gateway-Main Street Sense of Place Plan in an amount not to exceed $420,000; and (3) Delegated authority to the City Manager or designee to extend the term of the Agreement and execute amendments up to 10% as required for work completion.
11. Adopt a Resolution Approving a Memorandum of Understanding Between the City of Milpitas and International Association of Firefighters Local 1699 (IAFF) (Staff Contact: Kelli Parmley, Human Resources Director, 408-586-3086)
Adopted Resolution No. 9364 approving a Memorandum of Understanding between the City of Milpitas and International Association of Firefighters Local 1699 (IAFF) covering the period of July 1, 2024 through June 30, 2027.
12. Adopt a Resolution to Approve Project Plans and Award the Construction Contract to WestRock Engineering for the Water Valves Project for the Dempsey Road Water Line Replacement, Project Nos. 7100 and 7118 (Staff: Christian Di Renzo, Public Works Director, 408-586-2602; and Michael Silveira, City Engineer, 408-586-3303)
(1) Adopted Resolution No. 9365 to approve Water Valves Project plans and specifications; (2) Awarded the construction contract to WestRock Engineering in a total amount of $445,000; (3) Authorized the City Manager to execute a construction contract with WestRock Engineering; and (4) Authorized the Public Works Director to negotiate and execute contract change order(s) in an aggregate amount not to exceed $89,000 for the Water Valves Project for the Dempsey Road Water Line Replacement, Project Nos. 7100 and 7118.
13. Adopt a Resolution to Approve Project Specifications and Award Construction Contract to Sterndahl Enterprises, Inc. for the 2024 Annual Street Pavement Restriping Project, CIP No. 4295 (Staff Contact: Christian Di Renzo, Public Works Director, 408-586-2602) Adopted Resolution No. 9366 to (1) Approve project contract documents and specifications, (2) Award a construction contract to the lowest responsible and responsive bidder, Sterndahl Enterprises, Inc. in an amount not to exceed $862,506 for the 2024 Annual Street Pavement Restriping Project, (3) Authorize the City Manager to execute the construction contract with Sterndahl Enterprises, Inc.; and (4) Authorize the Public Works Director to negotiate and execute contract change order(s) in an aggregate amount not-to-exceed $86,250 and total project cost of $948,756.
14. Authorize the City Manager to Execute an Agreement with MISCOwater for the Purchase and Rebuild of Channel Monster Grinders (Staff Contact: Christian Di Renzo, Public Works Director, 408-586-2602)
(1) Authorized the City Manager to execute an agreement with MISCOwater for the purchase and rebuild of Channel Monster Grinders in the amount of $308,090; and (2) Authorized the City Manager to negotiate and execute contract change order(s) in an aggregate amount not to exceed $30,809, for a total contract amount not to exceed $338,899.
15. Authorize the City Manager to Negotiate and Execute Necessary Documents to Effectuate the Purchase of Fleet Vehicles (Staff Contact: Luz Cofresí-Howe, Finance Director, 408-586-3111; and Christian Di Renzo, Public Works Director, 408-586-2602) (1) Approved a one-time waiver of the City of Milpitas Municipal Code Municode Section I-2-3.01(c) – Selection of Solicitation Method Procurements; and (2) Authorized the City Manager to engage with local dealerships and execute any documents necessary to effectuate the purchase of approved FY24- 25 fleet vehicles in an amount not-to-exceed $822,500.
November 19, 2024 Milpitas City Council Minutes Page 5
16. Receive an Update on the Security Improvements at the McCarthy Ranch Sewer Lift Station (Main Lift) and Determine that the Condition Continues to Constitute an Emergency (Staff Contact: Christian Di Renzo, Public Works Director, 408-586-2602) (1) Received an update on the security improvements at the McCarthy Ranch Sewer Lift Station; and (2) Determined by a four-fifths vote that the condition continues to constitute an emergency.
17. Approve Milpitas Arts and Culture Grant Request for Sunnyhills Neighborhood Association Juneteenth Event (Staff Contact: Renee Lorentzen, Recreation and Community Services Director, 408-586-3409; and Tegan McLane, Assistant Recreation and Community Services Director, 408-586-3212)
Approved a Milpitas Arts and Culture in-kind grant request from Sunnyhills Neighborhood Association for the use of Sunnyhills Albert Augustine Jr. Memorial Park for a Juneteenth Celebration on June 21, 2025.
18. Approve Parks and Recreation and Community Services Programs Donation for a Memorial Bench in Honor of David Volberg (Staff Contact: Renee Lorentzen, Recreation and Community Services Director, 408-586-3409)
Approved the Parks and Recreation donation for a memorial bench for David Volberg at Sunnyhills Albert Augustine Jr. Memorial Park.
19. Approve Parks and Recreation and Community Services Programs Donation for a Memorial Bench in Honor of Paul Michael Schooss (Staff Contact: Renee Lorentzen, Recreation and Community Services Director, 408-586-3409)
Approved the Parks and Recreation donation for a memorial bench for Paul Michael Schooss at Murphy Park.
20. Consider One Donation Request from the Knights of Columbus (Staff Contact: Renee Lorentzen, Recreation and Community Services Director, 408-586-3409) Councilmember Barbadillo disclosed his membership in the Knights of Columbus and recused himself from the discussion and stepped out at 7:41 pm.
After discussion, motion: to approve a donation request of $500 for the Knights of Columbus Annual Thanksgiving Dinner and Food Distribution event on November 28, 2024.
Motion/Second: Vice Mayor Chua / Mayor Montano
Motion carried by the following:
AYES: Mayor Montano, Vice Mayor Chua, Councilmember Lien, Councilmember Phan NOES: None
ABSTAIN: Councilmember Barbadillo
PUBLIC HEARINGS
21. Adopt a Resolution Certifying Election Results and Adding the Properties Located at 470, 480, 490 and 500 Wool Drive into Community Facilities District No. 2005-1 (Annexation No. 24) (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. Principal Civil Engineer Valderrama presented the report.
Mayor Montano opened the public hearing.
November 19, 2024 Milpitas City Council Minutes Page 6
There were the following public speakers:
1. Voltaire Montemayor
Mayor Montano closed the public hearing.
City Clerk Guzzetta canvassed the vote and reported that all votes were in favor of the annexation and all the propositions approved.
After discussion, motion: to receive election results from the City Clerk, adopt Resolution No. 9367 certifying election results and adding the properties located at 470, 480, 490 and 500 Wood Drive into Community Facilities District No. 2005-1 (Annexation No. 24)..
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
COMMUNITY DEVELOPMENT
22. Economic Development Strategy and Economic Indicators Update (Staff Contact: Alex Andrade, Economic Development & Strategic Initiatives Director, 408-586-3046; and Kal Zubair, Economic Development Specialist, 408-586-3008)
City Manager Thomas introduced the item. Economic Development and Strategic Initiatives Director Andrade presented the report.
Vice Mayor Chua asked for clarification on the next steps after the annexation and getting site development/building permits and expressed frustration about lack of clear checklists/timelines for permit processes based on resident feedback. She requested a study/analysis be done on improving and streamlining the permit process
Council Member Lien asked for an explanation of the differences between Class A, B, and C commercial real estate and what the plan is to grow and balance jobs and housing in the city.
Council Member Barbadillo questioned if the 2020 Economic Development Strategy was effectively implemented based on the presented indicators. He asked how the Economic Development office works with Planning to preserve employment lands when rezoning happens and wanted to see comparisons to neighboring cities' financial performance metrics like sales tax. The Councilmember followed up by suggesting the Economic Development office should have more say when Planning makes zoning changes that convert employment lands.
Mayor Montano expressed concern that the city relies too heavily on property tax over sales tax for revenue and requested comparisons to other similarly-sized cities to benchmark revenue sources. She suggested "out of the box" thinking with incentives and marketing to attract more businesses and making Main Street an "entertainment district" as a draw for businesses.
There were the following public speakers:
1. Michael Tsai
2. Voltaire Montemayor
3. Ray Magalang
4. Dexter Lat
November 19, 2024 Milpitas City Council Minutes Page 7
ANNOUNCEMENTS AND FUTURE AGENDA ITEMS
There were the following announcements and requests for future agenda items:
Vice Mayor Chua made the following requests:
1) Bring back a study or analysis of the permit process. There was unanimous consensus to add the item to the prioritization list.
2) Staff organize a job fair for City job openings. There was unanimous consensus to add the item to the prioritization list.
Councilmember Lien thanked residents for their support of Measure J.
Councilmember Barbadillo requested an update on the library renaming process. City Manager Thomas noted that a report would be coming to the City Council in December.
Mayor Montano asked that staff look into potential impact fees for heavy vehicle transportation using city roads. There was consensus to add the item to the prioritization list (4-1. Noes: Phan).
ADJOURNMENT
Mayor Montano adjourned the meeting at 9:26 PM.
Draft meeting minutes submitted by City Clerk, Suzanne Guzzetta
TENTATIVE CITY COUNCIL AGENDA ITEM LIST
as of 11/27/2024
December 10, 2024 – Special Meeting (5:30 PM Start)
CLOSED SESSION
INVOCATION (Councilmember Lien)
PRESENTATION
AGENDA ITEMS
1. Certification of Election Results (City Clerk)
2. Presentation to Outgoing Officials
3. Swear in Newly Elected Officials
Adjourn to Reception
AGENDA ITEMS
4. Elect New Vice Mayor
CONSENT CALENDAR
5. Receive City Council calendar for December 2024 and January 2025 (City Clerk)
6. Approve City Council meeting minutes of December 3, 2024 (City Clerk)
7. Preview list of items for January 7, 2025 (City Clerk)
8. Councilmember Request List (City Clerk)
9. Commission Appointments (City Clerk)
10. FY 2023-24 Development and Storm Impact Fees Annual Report (AB1600) (Finance)
11. Fee Waiver (Recreation)
LEADERSHIP AND SUPPORT SERVICES
12. Municipal Code Changes for the FY 24-25 Department Realignments (City Manager)
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 Look into potential impact fees for heavy vehicle
transportation using city roads Montano 11/19/2024
An update on this item will be inlcuded in the
next quarterly prioritization update.
2 Staff organize a job fair for City job openings Chua 11/19/2024 An update on this item will be inlcuded in the
next quarterly prioritization update.
3 Bring back a study or analysis of the permit
process Chua 11/19/2024
An update on this item will be inlcuded in the
next quarterly prioritization update.
4 Feasibility study for a potential pickleball field at Dixon Landing Park Montano 10/15/2024
An update on this item will be inlcuded in the
next quarterly prioritization update.
5 Review the area near Rose Elementary School at
the intersection of Edsel and Roswell for unsafe
traffic conditions and possible traffic control
measures. Montano 10/1/2024
An update on this item will be inlcuded in the
next quarterly prioritization update.
6 Bring forward the costs regarding the library
renaming project to clarify costs and design by
December of this year Phan 10/1/2024
An update on this item will be inlcuded in the
next quarterly prioritization update.
7 Invite the HR Director to a future meeting to
present on hiring processes and vacancies Lien 10/1/2024 City staff is workng on an update to this item
to be provided to the City Council in the next
few months.
8 Explore updating the city's business tax rate
schedule Chua 10/1/2024
An update on this item will be inlcuded in the
next quarterly prioritization update.
9 Explore funding options for new signage following
the decision to rename the Milpitas Library to the
Milpitas Jose Esteves Library Barbadillo 9/3/2024
An update on this item will be inlcuded in the
next quarterly prioritization update.
10 Send a letter to Supervisory Otto Lee regarding the
weeds on Montague Expressway Montano 8/13/2024
An update on this item will be inlcuded in the
next quarterly prioritization update.
ACTIVE ITEMS
Request
No. Topic Submitted by:
Date
Requested
STATUS and/or DATE scheduled on City
Council meeting agenda:
11 Update the animal control ordinance to include
other animals such as horses and cats Chua 9/3/2024
This item was approved to move forward at
the 9/17/2024 City Council prioritization.
12 Look into a property for sale on Main Street to
investigate the cost and feasibility of creating a
museum for downtown or Old Town Main Street as
part of the revitalization efforts. Montano 8/13/2024
This item was approved to move forward at
the 9/17/2024 City Council prioritization.
13 Look into adopting an ordinance similar to San
Jose allowing ADUs (Accessory Dwelling Units) to
have a separate title and be sold separately. Chua 8/13/2024 This item was approved to move forward at
the 9/17/2024 City Council prioritization.
14 Conduct a traffic study on Escuela Parkway to
address circulation concerns Montano 5/7/2024
An update on this item will be inlcudd in the
next quarterly prioritization update.
15 Explore the possibility of augmenting the Planning
Commission stipend Barbadillo 4/16/2024
An update on this item will be inlcudd in the
next quarterly prioritization update.
16 Consideration of the 20% Low Income Below
Market Rate Housing Montano 12/5/2023
An update on this item will be inlcudd in the
next quarterly prioritization update.
17 Bring back Bingo and the Tour at the Senior
Center Chua 11/7/2023
An update on this item will be inlcudd in the
next quarterly prioritization update.
18 Referral for utility infrastructure cost on Main Street from Carlo to Corning Streets Montano 10/17/2023
An update on this item will be inlcudd in the
next quarterly prioritization update.
19 Main Street International Festival Lien 10/3/2023
An update on this item will be inlcudd in the
next quarterly prioritization update.
20 Explore taking steps towards becoming a Charter
City Phan 9/5/2023
An update on this item will be inlcudd in the
next quarterly prioritization update.
21 Pickleball Pilot Project Chua 2/28/2023
An update on this item will be inlcudd in the
next quarterly prioritization update.
22 Main Street Infrastructure Projects Montano 2/28/2023 An update on this item will be inlcudd in the
next quarterly prioritization update.
NOTE: Deferred and Completed Items are not listed
MILPITAS CITY COUNCIL
AGENDA ITEM REQUESTS
23 Main Street Flooding at Library Chua 2/28/2023
An update on this item will be inlcudd in the
next quarterly prioritization update.
24 Have the City look into the possibility of a Citywide Senior Discount Barbadillo 2/7/2023
An update on this item will be inlcudd in the
next quarterly prioritization update.
25 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 on this item will be inlcudd in the
next quarterly prioritization update.
26 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 on this item will be inlcudd in the
next quarterly prioritization update.
27 Quarterly or Monthly crime statistics on Homekey
Project Chua 6/7/2022
An update on this item will be inlcudd in the
next quarterly prioritization update.
28 Memorial Plaque in honor of youth skateboarder
that passed away Montano 6/7/2022
An update on this item will be inlcudd in the
next quarterly prioritization update.
29 Evaluate reopening the childcare center with a non-
profit organization running the center Montano 2/1/2022 An update on this item will be inlcudd in the
next quarterly prioritization update.
30 Staff to look into mural Art on Great Mall Parkway
on the VTA owned Light rail pillars Montano 11/16/2021
An update on this item will be inlcudd in the
next quarterly prioritization update.
31 Have a picture of Albert Vogel Sr. put up in the
Senior Center Montano 10/19/2021
An update on this item will be inlcudd in the
next quarterly prioritization update.
32 Include a bust of Maria Lemire on the Mural in front of the Senior Center Montano 8/17/2021
An update on this item will be inlcudd in the
next quarterly prioritization update.
33 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: 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 Winter Recess (Staff Contact: Matt Cano, Assistant City Manager, 408-586-3012)
Category: Consent Calendar-Leadership and Support Services Meeting Date: 12/3/2024
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 winter recess from the last City Council meeting held on December 10, 2024 through January 7, 2025.
BACKGROUND:
The City Council and City of Milpitas Housing Authority have a scheduled recess between the last City Council meeting on December 10, 2024 and January 7, 2025, during which no City Council meetings are scheduled to take place. 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 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 January 7, 2025.
POLICY ALTERNATIVE(S):
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.
CALIFORNIA ENVIRONMENTAL QUALITY ACT (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 not 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:
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 winter recess from the last City Council meeting held on December 10, 2024 through January 7, 2025.
ATTACHMENT(S):
(a) Resolution Designating City Manager Authority
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 WINTER RECESS
WHEREAS, the City Council and the Housing Authority have a scheduled recess between the last City Council meeting on December 10, 2024 and January 7, 2025, 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 January 7, 2025; 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 winter recess from the last City Council meeting held in December 2024 through January 7, 2025.
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 January 7, 2025.
PASSED AND ADOPTED this 3rd day of December 2024, by the following vote:
AYES: (0)
NOES: (0)
ABSENT: (0)
ABSTAIN: (0)
ATTEST: APPROVED:
_____________________________ ____________________________ Suzanne Guzzetta, City Clerk Carmen Montano, Mayor
APPROVED AS TO FORM:
_____________________________
Michael Mutalipassi, City Attorney
CITY OF MILPITAS
AGENDA REPORT
(AR)
Item Title: Adopt a Resolution Updating the Conflict of Interest Code and Amending the List of Designated Positions Requiring Disclosure (Staff Contact: Suzanne Guzzetta, City Clerk, 408-586-3001; and Michael Mutalipassi, City Attorney, 408- 586-3041)
Category: Consent Calendar-Leadership and Support Services Meeting Date: 9/20/2022
Recommendation: Adopt a resolution updating the City of Milpitas Conflict of Interest Code, including the list of designated positions required to annually file the FPPC Form 700 Statement of Economic Interests.
BACKGROUND:
The Political Reform Act (Government Code § 81000, et seq.) requires state and local agencies adopt conflict of interest codes identifying all officials and employees within the agency who make governmental decisions based on the positions they hold. Individuals in those designated positions are obligated to disclose their financial interests as specified in the agency’s conflict of interest code.
The City of Milpitas is required to review its Conflict of Interest Code biennially in even years to determine if amendments to the Code are necessary. Amendments include adding newly created qualifying positions, deleting obsolete positions, and revising job titles of existing positions and disclosure categories.
The City Conflict of Interest Code was last amended on September 20, 2022 as memorialized in City Council Resolution No. 9027. Together with Human Resources and the City Attorney, the City Clerk reviewed the existing code and list of designated positions to make applicable amendments to the Code.
Filers with job titles specified as designated positions are required to file the FPPC Form 700, Statement of Economic Interests, with the City Clerk within thirty days of assuming their designated position, annually by April 1, and within thirty days of leaving their designated position. In addition, Government Code §87200 identifies certain City officers such as mayors, city managers, city attorneys, city treasurers, chief administrative officers, members of city councils of cities, and planning commissioners as statutory filers required to file the Form 700.
Since January 2020, all City filers have the option to file their Form 700 through either one of two methods. The first method is to submit an original or “wet signature” hard copy form to the City Clerk’s Office. The second method is to file electronically via Netfile – an online platform approved by the Secretary of State for accepting electronic filings of Statements of Economic Interests. As of January 2025, all Government Code §87200 filers will be required to file their statements electronically directly with the FPPC through their online filing portal pursuant to AB 1170.
ANALYSIS:
The City Attorney and City Clerk have identified the appropriate City of Milpitas employee classifications to be added to the 2024 City of Milpitas Conflict of Interest Code and Appendix and appear in redline form as attached. Newly created qualifying classifications have been added, obsolete positions removed, and titles of several positions amended. The list of designated positions additionally includes Council-appointed volunteer Commissioners and Alternates of six City Commissions.
It is recommended the City Council adopt a resolution approving the updated 2024 City of Milpitas Conflict of Interest Code and Appendix. Upon adoption of the resolution, the City Clerk will file a copy of the updated Code and list of filers with the Fair Political Practices Commission office in Sacramento by the end of the year.
POLICY ALTERNATIVE:
Alternative: Do not adopt a resolution updating the list of designated positions required to file the FPPC Form 700 Statement of Economic Interests
Pros: None
Cons: By not adopting the resolution, the City of Milpitas Conflict of Interest Code would be out of date, resulting in the City being out of compliance with state law.
Reason not recommended: Failure to adopt a resolution to update the City of Milpitas Conflict of Interest Code will result in having an outdated Conflict of Interest Code, and the City will be out of compliance with FPPC Regulations.
FISCAL IMPACT:
None
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):
By the definition provided in the California Environmental Quality Act (CEQA) Guidelines Section 15378, this action does not qualify as a “project” for the purpose of CEQA.
RECOMMENDATION:
Adopt a resolution updating the City of Milpitas Conflict of Interest Code, including the list of designated positions required to annually file the FPPC Form 700 Statement of Economic Interests.
ATTACHMENTS:
(a) Resolution
(b) Exhibit A: 2024 City of Milpitas Conflict of Interest Code with Appendix
RESOLUTION NO. ____
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MILPITAS AMENDING
THE CITY OF MILPITAS CONFLICT OF INTEREST CODE, AS REQUIRED BY THE
POLITICAL REFORM ACT
WHEREAS, the State of California enacted the Political Reform Act of 1974, Government Code Section 81000 et seq. (the “Act”), which contains provisions relating to conflicts of interest which partially affect all officers, employees and consultants of the City and requires all public agencies to adopt and promulgate a Conflict of Interest Code; and
WHEREAS, The Political Reform Act requires every local government agency to review its conflict of interest code biennially; and
WHEREAS, pursuant to Government Code Sections 87300 and 87302, the City Council of the City of Milpitas has adopted and incorporated by reference the terms of the standard model conflict of interest code adopted by the Fair Political Practices Commission by Title 2, Division 6, California Code of Regulations, Section 18730; and
WHEREAS, there have been personnel changes that require revisions to the City of Milpitas Conflict of Interest Code; and
WHEREAS, the City Council of the City of Milpitas has determined the attached Exhibit A accurately sets forth the updated positions that should be designated and the disclosure categories for each listed position.
NOW THEREFORE, the City Council of the City of Milpitas hereby finds, determines, and resolves as follows:
1. The City Council has considered the full record before it, which may include but is not limited to such things as the staff report, testimony by staff and the public, and other materials and evidence submitted or provided to it. Furthermore, the recitals set forth above are found to be true and correct and are incorporated herein by reference.
2. The terms of Section 18730 of the Regulations, and any amendments to Section 18730 or to the Regulations, taken with appendices attached to this Resolution and incorporated by reference constitute the Conflict of Interest Code for all City of Milpitas departments and commissions.
3. The City Council does hereby adopt the proposed amended Conflict of Interest Code, a copy of which is attached hereto as Exhibit A and shall be on file with the City Clerk and available to the public for inspection and copying.
3. The amended Conflict of Interest Code of the City of Milpitas shall supersede the Conflict of Interest Code adopted on September 20, 2022, and shall become effective at the time of its adoption and approval.
PASSED AND ADOPTED this ___ day of ________, 2024, by the following vote:
AYES: ( )
NOES: ( )
ABSENT: ( )
ABSTAIN: ( )
2 Resolution No. xxxxx
ATTEST: APPROVED:
Suzanne Guzzetta, City Clerk Carmen Montano, Mayor
APPROVED AS TO FORM:
Michael Mutalipassi, City Attorney
3 Resolution No. xxxxx
EXHIBIT A
EXHIBIT A to
Resolution No.
CONFLICT OF INTEREST CODE
OF THE
CITY OF MILPITAS
The California Political Reform Act (Government Code section 81000, et seq.) requires state and local government agencies to adopt and promulgate conflict of interest codes. The Fair Political Practices Commission has adopted a regulation that contains the terms of a standard conflict of interest code which can be incorporated by reference in an agency’s code.
After public notice and hearing, Section 18730 may be amended by the Fair Political Practices Commission to conform to amendments in the Political Reform Act. Therefore, the terms of 2 California Code of Regulations Section 18730 and any amendments to it duly adopted by the Fair Political Practices Commission are hereby incorporated by reference. This regulation and the attached Appendix [or Appendices], designating positions and establishing disclosure categories, shall constitute the conflict of interest code of the City of Milpitas (City).
All officials and designated positions are required to submit a statement of economic interests and shall file their statements with the City Clerk as the City Filing Officer. The City Clerk shall make and retain a copy of all original statements filed by the Mayor, City Councilmembers and Planning Commissioners, the City Manager, City Attorney and City Treasurer, and shall forward the originals of paper-filed original statements to the Fair Political Practices Commission, as required by Government Code section 87200. The City Clerk shall retain the original statements filed by all other officials and designated positions, and will make all retained statements available for public inspection and reproduction during regular business hours per Government Code section 81008. Beginning in the filing year 2020, the City Clerk is authorized to permit electronic filing of Statements of Economic Interest, using an electronic filing system authorized by the Fair Political Practices Commission.
Adopted by Milpitas City Council on December xx, 2024
City of Milpitas Conflict of Interest Code Adopted December xx, 2024
APPENDIX
CONFLICT OF INTEREST CODE
OF THE CITY OF MILPITAS
Adopted December xx, 2024
PART A
The phrase “Section 87200 Filer” means each person holding one of the positions defined by California Government Code Section 87200, including each of the following positions:
a. Mayor
b. City Councilmember
c. Planning Commissioner
d. City Manager
e. City Attorney
f. City Treasurer (Director of Finance)
g. Any City official who manages public investments
Those holding one of the positions above may contact the Fair Political Practices Commission for assistance or written advice regarding their filing obligation if they believe their position has been categorized incorrectly. The Fair Political Practices Commission makes the final determination as to whether a position is a required filer consistent with Section 87200.
Effective January 1, 2025, all 87200 filers must submit their filings electronically via the FPPC electronic filing portal, in accordance with AB 1170.
City of Milpitas Conflict of Interest Code Adopted December xx, 2024
DESIGNATED POSITIONS GOVERNED BY THE CONFLICT OF
INTEREST CODE
The term “designated position” means any position with the City that is either: (a) identified in this Exhibit “A”; or (b) involves the making or participation in making of governmental decisions which may foreseeably have a material effect on economic interests.
Each of the following positions shall be deemed a Designated Position:
DESIGNATED POSITIONS DISCLOSURE CATEGORIES
Administrative Analyst II 5
Assistant City Attorney 1, 2
Assistant City Engineer 2, 3, 5
Assistant City Manager 1, 2
Assistant Director of Recreation and Community
Services
1, 2, 7
Assistant Finance Director 1, 2
Assistant Fire Marshal 2, 3
Assistant Chief of Police 5
Associate Civil Engineer 2, 3, 5
Associate Planner 2, 3, 5, 6
Budget Manager 4
Building Inspection Manager 2, 3, 5, 6
Building/Neighborhood Preservation Inspector 2, 3, 5, 6 Building Official 2, 3, 5, 6
Business Systems Analyst/Dev 5
Buyer 4
Capital Improvement Projects Manager 2, 3, 5, 6
City Clerk 5, 6
City Engineer 1, 2
Deputy City Attorney 1, 2
Deputy City Clerk 5, 6
Deputy City Manager 1, 2
Deputy Director of Information Technology 5
Deputy Fire Chief 5
Deputy Public Works Director 1, 2
Economic Development & Strategic Initiatives
Director
1, 2
Finance Manager 1, 2
Financial Analyst II 5
Fire Battalion Chief 5
Fire Chief 5, 6
Fire Captain, Prevention/Hazmat Inspector 3, 6
City of Milpitas Conflict of Interest Code Adopted December xx, 2024 Fire Marshal 2, 3, 5, 6
Housing Official 1, 2, 7
Human Resources Director 5
Human Resources Manager 5
Information Technology Director 5
Information Technology Manager 5
Plan Review Manager 5
Plan Check Engineer 5
Plan Checker 5
Planning Director 1, 2
Planning Manager 2, 3, 5
Police Captain 5
Police Chief 5
Principal Civil Engineer 1, 2
Principal Planner 1, 2
Public Information Officer 5
Public Works Division Manager 1, 2
Public Works Director 1, 2
Public Works Inspector 6
Purchasing Manager 4
Recreation and Community Services Director 5
Recreation Services Supervisor 5
Risk Analyst II 5
Senior Administrative Analyst 5
Senior Accountant 4
Senior Building Inspector 5, 6
Senior Buyer 4
Senior Code Enforcement Officer 6
Senior Human Resources Analyst 5
Senior Plan Check Engineer 5
Senior Planner 1, 2
Senior Public Works Inspector 2, 5, 6
Transportation and Traffic Engineer 2, 3, 5
CITY OF MILPITAS COMMISSIONS
Arts Commission 5, 7
Community Advisory Commission 1, 2
Economic Development & Trade Commission 1, 2
Energy and Environmental Sustainability
Commission
1, 2
Parks, Recreation & Cultural Resources
Commission
1, 2
Science, Technology & Innovation Commission 1, 2
City of Milpitas Conflict of Interest Code Adopted December xx, 2024 CONSULTANTS and NEW POSITIONS
Individuals serving as a consultant as defined in FPPC Regulation 18700.3, or in a new position as defined in Regulation 18734 created since this Code was last approved, who make, or participate in making, decisions must file under the broadest disclosure category set forth in this Code, subject to the following limitation: The City Manager may determine, that due to the range of duties or contractual obligations, it is more appropriate to assign a limited disclosure requirement. A clear explanation of the duties and a statement of the extent of the disclosure requirements must be a written document (Gov. Code § FPPC Regulations 18219 and 18734). The City Manager determination is a public record and shall be retained for public inspection in the same manner and location as this Conflict of Interest Code (Gov. Code §81008).
City of Milpitas Conflict of Interest Code Adopted December xx, 2024
PART B - DISCLOSURE CATEGORIES
Disclosure categories identify the types of economic interests that the designated position must disclose for each disclosure category to which he or she is assigned. “Investment” means financial interest in any business entity (including a consulting business or other independent contracting business) and are reportable if they are either located in, doing business in, planning to do business in, or have done business in during the previous two years in the jurisdiction of the City of Milpitas.
This Conflict of Interest Code does not require the reporting of gifts from outside this City’s jurisdiction if the source does not have some connection with or bearing upon the functions or duties of the position, per FPPC Regulation 18730.1.
Following is the list of seven disclosure categories, defined:
Category 1: all investments and business positions in business entities, and sources of income, including gifts, loans and travel payments, that are located in, doing business in, or that own real property within the City of Milpitas.
Category 2: all interests in real property which is located in whole or in part within, or not more than two miles outside the boundaries of the City of Milpitas, including any leasehold, beneficial or ownership interest or option to acquire property.
Category 3: all investments and business positions in business entities, and sources of income, including gifts, loans and travel payments, that are engaged in land development, construction or the acquisition or sale of real property within the jurisdiction of the City of Milpitas.
Category 4: all investments and business positions in business entities, and sources of income, including gifts, loans and travel payments that provide services, products, materials, machinery, vehicles or equipment of a type purchased or leased by the City of Milpitas.
Category 5: all investments and business positions in business entities, and sources of income, including gifts, loans and travel payments that provide services, products, materials, machinery, vehicles or equipment of a type purchased or leased by the designated positions’ department, unit or division.
Category 6: all investments and business positions in business entities, and sources of income, from, business entities subject to the regulatory, permit, or licensing authority of the designated positions’ department, unit or division.
Category 7: all investments and business positions in business entities, and sources of income, including gifts, loans and travel payments, and income from a nonprofit or other organization, if the source is of the type to receive grants or other monies from or through the City of Milpitas or its subdivisions.
CITY OF MILPITAS
AGENDA REPORT
(AR)
Item Title: Approve and Authorize the City Manager to Execute Amendment No. 3 to the Professional Services Agreement with Liebert Cassidy Whitmore to Provide Essential Labor Relations and Other Services (Staff Contact: Kelli Parmley, Human Resources Director, 408-586-3086)
Category: Consent Calendar-Leadership and Support Services Meeting Date: 12/3/2024
Recommendation: Approve and authorize the City Manager to execute Amendment No. 3 to the Professional Services Agreement with Liebert Cassidy Whitmore (LCW) for an additional agreement amount of $200,000, subject to the annual appropriation of funds.
BACKGROUND:
LCW is a premier labor, education, and employment law firm that specializes in providing services to hundreds of public agencies, educational institutions, and nonprofit organizations across the state of California.
On April 1, 2023, the City entered into a Professional Services Agreement (Agreement) with Liebert Cassidy Whitmore (LCW) to provide essential labor relations and other legal services to the City, including but not limited to negotiations, training, advice, investigations, and representation in the amount of $100,000.
On September 19, 2023, the City Council approved an amendment to the original contract for an additional $200,000 for ongoing legal services and extend the contract through June 30, 2026.
ANALYSIS:
The additional legal services with LCW from July 1 – October 2024 has resulted in essential support for on- demand and specialized employee relations advice and critical support leading to the completion of four negotiated successor agreements for Milpitas Employees Association (MEA), Milpitas Professional And Technical Group (PROTECH), Milpitas Police Officers Association (MPOA), and the International Association of Firefighters Local 1699 (IAFF).
Through June 30, 2025, the City is required to negotiate successor agreements for three units as well as ongoing needs for more complex employee relations and investigations situations. Staff recommends amending the agreement to add an additional $200,000 for ongoing legal services and through June 30, 2026.
POLICY ALTERNATIVE(S):
Alternative 1: Do not approve and authorize the City Manager to execute the amendment with LCW for two years.
Pros: There is no benefit to discontinuing LCW’s services while the City is in active labor negotiations and investigations are still underway.
Cons: The City will not have adequate resources to assist with labor negotiations and investigations.
FISCAL IMPACT:
The contract will be paid from the City Manager’s unanticipated expenditure reserve account. Currently, there is sufficient balance to cover this expenditure from this account.
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):
Approval of the recommendation is not an activity defined as a “project” under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines 15061(b)(3) and 15378(b)(4) either because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment and/or because the action is financial and/or administrative and does not directly impact the environment.
RECOMMENDATION:
Approve and authorize the City Manager to execute Amendment No.3 to the Professional Services Agreement with Liebert Cassidy Whitmore (LCW) for an additional agreement amount of $200,000, subject to the annual appropriation of funds.
ATTACHMENT(S):
(a) Amended LCW Contract
(b) Amendment No. 3 to LCW’s Professional Services Agreement
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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 Liebert Cassidy Whitmore, a corporation with its principal place of business at 135 Main Street, San Francisco, CA 94105 (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 publ ic agency of the State of California and is in need of professional services for the following project:
LABOR CONTRACT NEGOTIATIONS AND OTHER LEGAL SERVICES
(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 Thousand Dollars and Zero Cents ($100,000.00).
This amount is to cover all printing and related costs, and the City will not pay any addition al 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 DocuSign Envelope ID: 7968FF19-7346-47F4-A98C-471D468064D8 Apr-01-2023
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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 record s, 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 April 1, 2023 to June 30, 2024, 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 performa nce 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 remova l 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 Agreemen t or any rights under or interest in this Agreement without the written consent of the City, which m ay be withheld for any reason. Any DocuSign Envelope ID: 7968FF19-7346-47F4-A98C-471D468064D8
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3 attempt to so assign or so transfer without such consent shall be void and without legal effect and shall constitute grounds for termination. Subcontracts, if any, shall contain a provision making them subject to all provision s stipulated in this Agreement. Nothing contained herein shall prevent Consultant from employing independent associates, and subconsultants as Consulta nt 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 insur ance 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 negligent acts, errors or omissions, or willful misconduct of Consultant, 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 and attorney’s fees and oth er related costs and expenses. Consultant's obligation to ind emnify 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 b e limited to claims that arise out of, pertain to, or relate to the negligence, recklessness, 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 DocuSign Envelope ID: 7968FF19-7346-47F4-A98C-471D468064D8
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4 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 payro ll 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 appli cable “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 Depar tment 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 perfor med 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 Cons ultant’s performance of services, including any delay, shall be Con sultant’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 ten (10) calendar days written notice to Consultant. In such event, City shall be immediately given titl e and possession to all original field notes, drawings and specifications, written reports and other documents produced or developed for that portion of the work com pleted and/or being abandoned. City shall pay Consultant the reasonable value of services r endered for any portion of the work completed prior to termination. If said termination occurs prior to completion of any task for the DocuSign Envelope ID: 7968FF19-7346-47F4-A98C-471D468064D8
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5 Project for which a payment request has not been received, the charge for services performed during such task shall be th e reasonable value of such services, based on an amount mutually agreed 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 costs other than the charges or portions there of 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, w ritten 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 Morin Jacob 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: Steven G. McHarris, City Manager
CONSULTANT:
Liebert Cassidy Whitmore
135 Main Street, 7th floor
San Francisco, CA 94105
Attn: Richard Bolanos, Partner
and shall be effective upon receipt thereof.
22. Third Party Rights
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6 Nothing in this Agreement shall be construed to give any rights or benefits to anyone other than the City and the Consultant.
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 State or Feder al 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 Agree ment 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 em ployee working solely for Consultant, to solicit or secure this Agreement.
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7 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 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 Sta ndards 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 F IVE (5) YEARS PRIOR TO
EXECUTING THIS AGREEMENT THAT CONSULTANT OR ITS SUBCONSULTANTS 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, O R, 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 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 Consultant or a subconsultant it employs to perform work under this Agreement has violated any applicable 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 final 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 co ntinue 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 "fina l 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.
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8 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 95 035. 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 FOLLOWING PAGE]
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9 SIGNATURE PAGE FOR PROFESSIONAL SERVICES AGREEMENT
BETWEEN THE CITY OF MILPITAS
AND LIEBERT CASSIDY WHITMORE
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above.
CITY OF MILPITAS
Approved By:
Steven G. McHarris, City Manager
Date
Approved As To Form:
Michael Mutalipassi, City Attorney
Approved:
Lauren Lai, CPA, MPA
Finance Director/Risk Manager
Approved As To Content:
Nick Raisch, Human Resources Director
LIEBERT CASSIDY WHITMORE
Signature
Name
Title
Date
DocuSign Envelope ID: 7968FF19-7346-47F4-A98C-471D468064D8 Mj
Mar-29-2023
Morin Jacob
Apr-01-2023
38077.00180\29167975.12 C2
10 EXHIBIT A
Scope of Services
The Consultant offers the City a broad range of experienced labor relations and legal services including but not limited to negotiations, training, advice, investigations, and representation. The services offered by the Consultant are generally as follows, subject to the preferences of the City, which can and do bring about modifications to the Consultant’s role.
The Consultants services shall include:
1. Meet with City staff and elected officials prior to commencement of negotiations in order to best understand (and perhaps formulate) the goals and objectives of the City in addressing the potential bargaining issues, and to be made aware of the financial/political limitations upon reaching those goals and objectives.
2. Provide leadership in formulati ng the strategies, which will be employed in meeting the goals and objectives at the bargaining table. (This may include asking that various City negotiation team members or resource personnel prepare budget presentations, detailed cost/revenue analyses or other financial data that may be discussed during negotiations).
3. Administer and/or oversee classification and compensation studies to gather the data necessary to formulate and present the agency’s bargaining objectives and proposals.
4. Upon reque st and as needed, oversee administrative investigations, retain the appropriate outside investigators for the City, and advise the City based on the findings of the investigations.
5. Review and analyze all pertinent charter provisions, codes, ordinances, rules and regulations, and existing memoranda of understanding, in order to verify their impact upon the goals and objectives that are being pursued.
6. Act as principal spokesperson and strategist during the bargaining process.
7. Participate in closed sessions to provide guidance to and receive direction from elected officials.
8. Represent the City at impasse proceedings (including preparation and representation through the impasse process, preparation of press releases, supervising media relations, meeting with elected officials, and making those appearances provided for by the City employee relations ordinance, as requested by the City). The Consultant typically attempts to schedule meetings with various units back to back as to reduce travel time. The Consultant will also work carefully with City staff to ensure that negotiations with multiple units are coordinated to be consistent where necessary but different, where diffe ring issues so require.
Labor Relations Consulting
In addition to conducting negotiations for public employers, the Consultant will continually work with the City’s staff to do their own negotiations, if desired, and provide ongoing advice away from the table. This arrangement can involve all aspects of consultation and related services, including:
1. preparation of initial bargaining proposals
2. reviewing counter-proposals
3. providing training and advice concerning negotiating strategies DocuSign Envelope ID: 7968FF19-7346-47F4-A98C-471D468064D8
38077.00180\29167975.12 C2
11 4. representation through impasse procedures
5. and giving general advice when problems arise.
These services include:
a. MOU reviews/audits to identify issues for legal compliance, provide suggestions to increase clarity and reduce ambiguity by improv ing contract language, and offer suggestions/alternatives to be considered in contract negotiations.
b. Training on costing labor contracts, compiling demographic data, preparing for impasse processes, and other training programs to develop skills for internal staff. c. Strategy development and advice on key areas including FLSA items, cost restructuring, pension issues, employee benefits, and discipline/appeal processes. Provide advice and consultation on the scope of meet and confer subjects and alternative approaches to manage meet and confer obligations. d. Drafting contract language compliant with legal parameters and consulting on the preparation and presentation of proposals.
Additional Services
As a best practice, the Consultant recommends completing an MOU audit prior to the start of negotiations if the City has not reviewed/updated the MOU for best practices, legal compliance and to ensure the elimination of ambiguous language since the last round of negotiations. An audit ensures that contra ct language accurately reflects changes in the law since the contract was last negotiated [e.g. new state laws regarding sick leave (AB1522), health insurance (ACA), retirement (PEPRA), unlawful discrimination, leave rights (Labor Code Section 230.4, pregnancy disability leave), arbitration and release time for union representatives.] It also ensures that contract language not only complies with state and federal laws, but that it maximizes the City’s opportunity for cost effectiveness. The audit will revea l all the changes the Consultant suggests for legal compliance, to eliminate ambiguities and ensure best practices. The analysis also includes the identification of MOU language/provisions to target during the upcoming negotiations.
Careful preparation all ows the City to set the bargaining agenda, rather than being reactive as well as avoids the inefficiencies of an ad hoc approach where disputes and mistakes often occur. Audits are billed on an hourly basis and can be scheduled whether or not Consultant conducts the negotiations. Any other legal services provided by Consultant per the rate sheet attached.
DocuSign Envelope ID: 7968FF19-7346-47F4-A98C-471D468064D8
38077.00180\29167975.12 C2
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.
Rate and Service Structure
The Consultant bills in increments of one tenth of an hour. Invoices are payable upon receipt and due within 30 days. Consultant rates reflect the nature of our public sector work and take into consideration the inherent budgetary limitations of our public sector clients.
The Consultant evaluates its rates on an annual basis and occasionally makes modest rate increases. The Consultant understands the need to manage the cost of legal services and frequently work with clients to create budgets and cost strategies that suit them.
The Consultants practice is statewide, and they will share briefs, motions, points and authorities, research memos and opinion letters so that they do not research nuances in the law and issues that other members of the firm have recently worked on.
Pricing offered on a time-and-materials basis would be based on the standard hourly rates listed below:
Staff Rate per Hour
Partner $425.00
Senior Counsel $355.00
Associate $240.00 - 335.00
Labor Relations/Human Resources Consultant $270.00
Paralegals $145.00
E-Discovery Specialists $145.00
Law Clerks $145.00 - $185.00
Expenses
The Consultant utilizes the most up -to-date technology to aid in the delivery of legal services. For example, they utilize Sharefile, a document -sharing portal, for the secure and quick transmission of material. Documents are sent electronically, through Sharefile or email, unless specifically requested otherwise, or when electronic transmission is not an option.
Should the Consultant need to send a fax, these are billed at the rate of $.25 per page for outgoing faxes.
Likewise, if needed copying is cha rged at fifteen cents ($.15) per page. Additional prints, postage and special deliveries (i.e. Fed-Ex, UPS, DHL, messenger service), and other hired deliveries completed at the request of the client or necessary to comply with court or other deadlines will also be billed to the client.
DocuSign Envelope ID: 7968FF19-7346-47F4-A98C-471D468064D8
38077.00180\29167975.12 C2
13 EXHIBIT C
Activity Schedule
[Reserved]
DocuSign Envelope ID: 7968FF19-7346-47F4-A98C-471D468064D8
38077.00180\29167975.12 C2
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 t hat 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 signe d 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 br oad 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 l imit 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 “occurre nce” 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 sha ll apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit.
DocuSign Envelope ID: 7968FF19-7346-47F4-A98C-471D468064D8
38077.00180\29167975.12 C2
15 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.
___ 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:
_X_ 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.
DocuSign Envelope ID: 7968FF19-7346-47F4-A98C-471D468064D8
38077.00180\29167975.12 C2
16 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.
Coverage shall be sufficiently broad to respond to the duties a nd 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 res ponse 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 DocuSign Envelope ID: 7968FF19-7346-47F4-A98C-471D468064D8
38077.00180\29167975.12 C2
17 appointed officials, officers, attorneys, agents employees and vo lunteers 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 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 Cou rse 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 con tain 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 Consultan t 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 endorseme nt 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 wai ver 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
DocuSign Envelope ID: 7968FF19-7346-47F4-A98C-471D468064D8
38077.00180\29167975.12 C2
18 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. 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.
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 id entification/remediation, the Contractor’s Pollution Liability Policy shall not contain lead -based paint or asbestos exclusions. If the services involve mold identification/remediation, the DocuSign Envelope ID: 7968FF19-7346-47F4-A98C-471D468064D8
38077.00180\29167975.12 C2
19 Contractors Pollution Liability Policy shall not contain a mold ex clusion, 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 Contracto r 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 othe r 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 -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 require d 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 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.
DocuSign Envelope ID: 7968FF19-7346-47F4-A98C-471D468064D8
Amendment No. 1 to Professional Services Agreement with Liebert Cassidy Whitmore AMENDMENT NO. 1 TO
PROFESSIONAL SERVICES AGREEMENT
WITH
LIEBERT CASSIDY WHITMORE
FOR
LABOR CONTRACT NEGOTIATIONS AND OTHER LEGAL SERVICES
This Amendment No. 1 is entered into as of _________________, (the “Effective Date”) by and between the City of Milpitas, a municipal corporation of the State of California ( hereinafter referred to as “City”) and Liebert Cassidy Whitmore , a corporation (hereinafter 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 April 1, 2023 , the Parties entered into a Professional Services Agreement (the “Agreement”) for labor contract negotiations and other legal services for the not-to-exceed compensation amount of One Hundred Thousand Dollars and Zero Cents ($1 00,00.00), and with an initial term period from April 1, 2023 to June 30, 2024 (the Agreement); and WHEREAS, the Parties now wish to amend the Agreement to increase the not-to-exceed total by two hundred thousand dollars and zero cents ($200,000.00) for a new not-to-exceed total of three hundred thousand dollars and zero cents ($300,000.00) and extend the term by two (2) years for a new term end date of June 30, 2026.
NOW THEREFORE, in consideration of the mutual covenants and conditions herein contained, the Parties agree to amend the Agreement as follows:
1. Section 2b Compensation . is hereby deleted in its entirety and replaced wi th:
In no event shall the total amount paid for services rendered by Consultant under this Agreement exceed the sum of Three Hundred Thousand Dollars and Zero Cents ($300,000.00). 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 detail ed description of the work performed. Payments to Consultant for work performed will be made on a monthly billing basis.
2. Section 5. Term. is hereby deleted in its entirety and replaced with:
The term of this Agreement shall be from April 1, 2023 through June 30, 2026 , 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.
3. All other provisions of the Agreement not amended by this Amendment No. 1 shall remain in full force and effect.
[SIGNATURES ON FOLLOWING PAGE]
DocuSign Envelope ID: CAC36945-84BB-48F2-A00B-17FD43F66EFA Oct-09-2023
Amendment No. 1 to Professional Services Agreement with Liebert Cassidy Whitmore SIGNATURE PAGE TO AMENDMENT NO. 1
TO THE PROFESSIONAL SERVICES AGREEMENT
WITH LIEBERT CASSIDY WHITMORE
FOR LABOR NEGOTIATIONS AND OTHER LEGAL SERVICES
IN WITNESS WHEREOF, the Parties have executed this Amendment No. 1 as of the date first written above.
CITY OF MILPITAS LIEBERT CASSIDY WHITMORE
Approved By:
______________________________ ______________________________ Ned Thomas, Acting City Manager Signature
______________________________ ______________________________ Date Name
Approved As To Form:
______________________________ ______________________________ Michael Mutalipassi, City Attorney Title
Approved: ______________________________
Date
______________________________
Lauren Lai, CPA, MPA
Finance Director/Risk Manager
Approved As to Content:
______________________________
Nick Raisch, Human Resources Director
DocuSign Envelope ID: CAC36945-84BB-48F2-A00B-17FD43F66EFA Morin Jacob
Mj
Oct-05-2023
Oct-09-2023
Amendment No. 2 to Professional Services Agreement with Liebert Cassidy Whitmore AMENDMENT NO. 2 TO
PROFESSIONAL SERVICES AGREEMENT
WITH
LIEBERT CASSIDY WHITMORE
FOR
LABOR CONTRACT NEGOTIATIONS AND OTHER LEGAL SERVICES
This Amendment No. 2 is entered into as of _________________, (the “Effective Date”) by and between the City of Milpitas, a municipal corporation of the State of California ( hereinafter referred to as “City”) and Liebert Cassidy Whitmore , a corporation (hereinafter referred to as “ Consultant”). City and Consultant are sometimes individually referred to as “Party” and collectively as “Parties” in this Amendment No. 2.
RECITALS:
WHEREAS, on April 1, 2023 , the Parties entered into a Professional Services Agreement (the “Agreement”) for labor contract negotiations and other legal services for the not-to-exceed compensation amount of One Hundred Thousand Dollars and Zero Cents ($1 00,00.00), and with an initial term period from April 1, 2023 to June 30, 2024 (the Agreement); and WHEREAS, on ___________ the Parties entered into Amendment 1 to add additional funds for a new not-to-exceed exceed total of three hundred thousand dollars and zero cents ($300,000.00) and extend the term by two (2) years for a new term end date of June 30, 2026; and WHEREAS, the Parties now wish to amend the Agreement to revise Exhibit B, Schedule of Charges/Payments.
NOW THEREFORE, in consideration of the mutual covenants and conditions herein contained, the Parties agree to amend the Agreement as follows:
1. Exhibit B, Schedule of Charges/Payments is hereby deleted in its entirety and replaced with Exhibit B -1 Schedule of Charges/Payments (October 2023), attached hereto and incorporated herein.
2. All other provisions of the Agreement not amended by this Amendment No. 2 shall remain in full force and effect.
[SIGNATURES ON FOLLOWING PAGE]
DocuSign Envelope ID: AA3A1E3C-2BD6-4CC7-A66B-66079C8F7781 Oct-06-2023
Oct-06-2023
Amendment No. 2 to Professional Services Agreement with Liebert Cassidy Whitmore SIGNATURE PAGE TO AMENDMENT NO. 2
TO THE PROFESSIONAL SERVICES AGREEMENT
WITH LIEBERT CASSIDY WHITMORE
FOR LABOR NEGOTIATIONS AND OTHER LEGAL SERVICES
IN WITNESS WHEREOF, the Parties have executed this Amendment No. 2 as of the date first written above.
CITY OF MILPITAS LIEBERT CASSIDY WHITMORE
Approved By:
______________________________ ______________________________ Ned Thomas, City Manager Signature
______________________________ ______________________________ Date Name
Approved As To Form:
______________________________ ______________________________ Michael Mutalipassi, City Attorney Title
Approved: ______________________________
Date
______________________________
Lauren Lai, CPA, MPA
Finance Director/Risk Manager
Approved As to Content:
______________________________
Nick Raisch, Human Resources Director
DocuSign Envelope ID: AA3A1E3C-2BD6-4CC7-A66B-66079C8F7781 Morin Jacob
Mj
Oct-05-2023
Oct-06-2023
Amendment No. 2 to Professional Services Agreement with Liebert Cassidy Whitmore Exhibit B-1
Schedule of Charges/Payments
(October 2023)
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. This is a time-and-materials Agreement.
Rate and Service Structure
The Consultant bills in increments of one tenth of an hour. Invoices are payable upon receipt and due within 30 days. Consultant rates reflect the nature of our public sector work and take into consideration the inherent budgetary limitations of our public sector clients.
The Consultant evaluates its rates on an annual basis and occasionally makes modest rate increases. The Consultant understands the need to manage the cost of legal services and frequently work with clients to create budgets and cost strategies that suit them.
The Consultants practice is statewide, and they will share briefs, motions, points and authorities, research memos and opinion letters so that they do not research nuances in the law and issues that other members of the firm have recently worked on.
Pricing offered on a time-and-materials basis would be based on the standard hourly rates listed below:
Staff Rate per Hour
Partner $435.00
Senior Counsel $365.00
Associate $260.00 - 345.00
Labor Relations/Human Resources Consultant $280.00
Paralegals $145.00
E-Discovery Specialists $145.00
Law Clerks $145.00 - $185.00
Expenses
The Consultant utilizes the most up-to-date technology to aid in the delivery of legal services. For example, they utilize Sharefile, a document -sharing portal, for the secure and quick transmission of material.
Documents are sent electronically, through Sharefile or email, unless specifically requested otherwise, or when electronic transmission is not an option.
Should the Consultant need to send a fax, these are billed at the rate of $.25 per page for outgoing faxes.
Likewise, if needed copying is cha rged at fifteen cents ($.15) per page. Additional prints, postage and special deliveries (i.e. Fed-Ex, UPS, DHL, messenger service), and other hired deliveries completed at the request of the client or necessary to comply with court or other deadlines will also be billed to the client.
DocuSign Envelope ID: AA3A1E3C-2BD6-4CC7-A66B-66079C8F7781
Amendment No. 321 to Professional Services Agreement with Liebert Cassidy Whitmore AMENDMENT NO. 321 TO
PROFESSIONAL SERVICES AGREEMENT
WITH
LIEBERT CASSIDY WHITMORE
FOR
LABOR CONTRACT NEGOTIATIONS AND OTHER LEGAL SERVICES
This Amendment No. 321 is entered into as of_________________, (the “Effective Date”) by and between the City of Milpitas, a municipal corporation of the State of California (hereinafter referred to as “City”) and Liebert Cassidy Whitmore, a corporation (hereinafter referred to as “Consultant”). City and Consultant are sometimes individually referred to as “Party” and collectively as “Parties” in this Amendment No. 321.
RECITALS:
WHEREAS, on April 1, 2023, the Parties entered into a Professional Services Agreement (the “Agreement”) for labor contract negotiations and other legal services for the not-to-exceed compensation amount of One Hundred Thousand Dollars and Zero Cents ($100,00.00), and with an initial term period from April 1, 2023 to June 30, 2024 (the Agreement); and WHEREAS, on October 6, 2023, the parties entered into Amendment 2 and the Agreement was amended on XXXX to increase the not-to-exceed total by two hundred thousand dollars and zero cents ($200,000.00) for a new not-to-exceed total of three hundred thousand dollars and zero cents ($300,000.00) and extend the term by two (2) years for a new term end date of June 30, 2026; and.
WHEREAS, the Parties now wish to amend the Agreement to increase the not-to-exceed total by two hundred thousand dollars and zero cents ($200,000.00) for a new not-to-exceed total of three hundred thousand dollars and zero cents ($300,000.00) and extend the term by two (2) years for a new term end date of June 30, 2026. on ___________ tThe Parties now wish to amend the Agreement to increase the not-to-exceed total by two hundred thousand dollars and zero cents ($200,000) for a new not-to-exceed total of five hundred thousand dollars and zero cents ($500,000).
NOW THEREFORE, in consideration of the mutual covenants and conditions herein contained, the Parties agree to amend the Agreement as follows:
1. Section 2b Compensation. is hereby deleted in its entirety and replaced with:
In no event shall the total amount paid for services rendered by Consultant under this Agreement exceed the sum of Three HundredFive Hundred Thousand Dollars and Zero Cents ($5300,000.00). 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.
2. Section 5. Term. is hereby deleted in its entirety and replaced with:
The term of this Agreement shall be from April 1, 2023 through June 30, 2026, 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.
3.2. All other provisions of the Agreement not amended by this Amendment No. 321 shall remain in full force and effect.
Amendment No. 321 to Professional Services Agreement with Liebert Cassidy Whitmore [SIGNATURES ON FOLLOWING PAGE]
Amendment No. 321 to Professional Services Agreement with Liebert Cassidy Whitmore SIGNATURE PAGE TO AMENDMENT NO. 21
TO THE PROFESSIONAL SERVICES AGREEMENT
WITH LIEBERT CASSIDY WHITMORE
FOR LABOR NEGOTIATIONS AND OTHER LEGAL SERVICES
IN WITNESS WHEREOF, the Parties have executed this Amendment No. 321 as of the date first written above.
CITY OF MILPITAS LIEBERT CASSIDY WHITMORE
Approved By:
______________________________ ______________________________ Ned Thomas, Acting City Manager Signature
______________________________ ______________________________ Date Name
Approved As To Form:
______________________________ ______________________________ Michael Mutalipassi, City Attorney Title
Approved: ______________________________
Date
______________________________
Lauren Lai, CPA, MPALuz Cofresíi-Howe
Finance Director/Risk Manager
Approved As to Content:
______________________________
Nick RaischKelli Parmley, Human Resources Director
CITY OF MILPITAS
AGENDA REPORT
(AR)
Item Title: Adopt a Resolution to Approve a 3% Cost-of-Living (COLA) Salary Adjustment for the City Manager as Directed by the City Council (Staff Contact: Kelli Parmley, Human Resources Director, 408-586-3086)
Category: Leadership and Support Services
Meeting Date: 12/3/2024
Recommendation: Adopt a resolution to approve a 3% Cost-of-Living (COLA) salary adjustment for the City Manager as directed by the City Council.
BACKGROUND:
The City Manager was hired on October 4, 2023, and the City Manager’s employment agreement (Agreement) states:
“Whenever a cost of living adjustment or other non-merit based salary increase is provided to other miscellaneous unrepresented executive staff, the City Council shall consider whether it is reasonable and appropriate to grant the highest cost of living increase received by any miscellaneous unrepresented employee groups to the Employee’s Base Salary to avoid compaction.”
ANALYSIS:
The Agreement allows at the sole discretion of City Council to provide the City Manager the same level of cost- of-living adjustment (COLA) as provided to unrepresented management employees. At the City Manager’s one-year evaluation on October 18, 2024, the City Council approved a 3% COLA salary adjustment effective in the pay period associated with the October 4, 2024 anniversary date.
FISCAL IMPACT:
After the above City Council authorized actions are applied, the City Managers new annual salary will be $287,370.02. Funds for this action is available within the FY 2024-25 Adopted Operating Budget.
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):
Approval of the recommendation is not an activity defined as a “project” under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines 15061(b)(3) and 15378(b)(4) either because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment and/or because the action is financial and/or administrative and does not directly impact the environment.
RECOMMENDATION:
Adopt a resolution to approve a 3% Cost-of-Living (COLA) salary adjustment for the City Manager as directed by the City Council.
ATTACHMENT(S):
(a) Resolution
RESOLUTION NO. ________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MILPITAS APPROVING
COMPENSATION CHANGES RELATED TO ANNUAL PERFORMANCE
EVALUATION FOR THE CITY MANAGER
WHEREAS, the City and the City Manager have an executed employment agreement which is in place through June 30, 2025; and
WHEREAS, the employment agreement states “Whenever a cost of living adjustment or other non-merit based salary increase is provided to other miscellaneous unrepresented executive staff, the City Council shall consider whether it is reasonable and appropriate to grant the highest cost of living increase received by any miscellaneous unrepresented employee groups to the Employee’s Base Salary to avoid compaction.”; and WHEREAS, on October 18, 2024, the City Council conducted the City Manager’s performance evaluation and approved a 3% cost-of living salary adjustment.
NOW THEREFORE, the City Council of the City of Milpitas hereby finds, determines, and resolves as follows:
1. The City Council has considered the full record before it, which may include but is not limited to such things as the staff report, testimony by staff and the public, and other materials and evidence submitted or provided to it. Furthermore, the recitals set forth above are found to be true and correct and are incorporated herein by reference.
2. The City Council hereby authorizes a 3% cost-of-living adjustment increase effective October 4, 2024.
3. The City Council hereby authorizes the City Manager’s new annual salary to be $287,370.02 after the above increases are applied.
PASSED AND ADOPTED this ______ day of _________, 2024, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST: APPROVED:
__________________________ __________________________
Suzanne Guzzetta, City Clerk Carmen Montano, Mayor
APPROVED AS TO FORM:
_____________________________
Michael Mutalipassi, City Attorney
CITY OF MILPITAS
AGENDA REPORT
(AR)
Item Title: Consider Personnel Realignment to Support Planning Department Operations (Staff Contact: Jay Lee, Planning Director, 408-586-3077) Category: Consent Calendar-Community Development
Meeting Date: 12/3/2024
Recommendation: Adopt a resolution to approve the deletion of a vacant Associate Planner position and the addition of a Junior/Assistant Planner position in the Planning Department.
BACKGROUND:
Neighborhoods and housing, and economic development and job growth are priorities for Council. Considering recent State law aimed at increasing housing production and streamlining permitting processes, maintaining service levels in these key areas poses an increasing challenge for the Planning Department. In 2021, the Planning Department received City Council approval to reclassify 1.0 Assistant Planner to 1.0 Associate Planner in the FY 2021-22 Adopted Budget to meet the needs of the Department at the time. As such, the Planning Department currently has 3.0 Associate Planner positions and no Junior or Assistant Planners. Due to recent staff attrition, one of the Associate Planner positions remains vacant. This presents an opportunity, with budgetary savings and a net-zero full-time equivalent (FTE) impact, to reallocate resources within the Planning Department to better meet service level demands and community needs related to planning counter service and permitting at the One-Stop Permit Center and development review of planning entitlement applications.
ANALYSIS:
The Planning Department develops and implements land use and zoning policies to guide the physical and economic development of the City. One of the Department’s primary functions is to review and process various City license, permit, and planning entitlement applications. The Planning Department also provides and updates planning permit fees, submittal requirements, checklists, and resources to support a streamlined permit application and development review process.
The Planning Department is currently staffed by a team of twelve (12) FTE, consisting of a Planning Director, a Principal Planner, two (2) Senior Planners, three (3) Associate Planners, a Planning Technician, two (2) Senior Code Enforcement Officers, a Code Enforcement Officer, and an Administrative Assistant. This staffing structure is lean but has been efficient and capable of meeting service demands. Given that one (1) Associate Planner position is vacant, the Department sees an opportunity to realign its staffing resources to better support Planning Department functions.
Replacing the vacant Associate Planner position with an entry-level Junior/Assistant Planner position would allow the Department to achieve better operational balance. The Junior/Assistant Planner would work alongside the Planning Technician to provide planning services and improve customer service at the One-Stop Permit Center. While Associate Planners provide support to the One-Stop Permit Center, their primary responsibility is to process complex, significant development applications. The Junior/Assistant Planner would focus on answering zoning inquiries and processing permits for minor projects such as home renovations and new businesses, which would most benefit Milpitas’ residents and small business owners.
This realignment would also provide a clear and feasible career growth path for entry-level positions within the City and improve staff retention within the Department. Currently, without a budgeted Junior/Assistant Planner position, there is a gap in the structural hierarchy of the Department between the Planning Technician, which is an entry-level position, and Associate Planners, which are journey-level positions. Unlike the City of Milpitas,
most other jurisdictions have positions at the Junior or Assistant Planner level to maintain customer service levels at the front counter and process a high volume of minor permits.
Furthermore, this realignment is needed to adapt to the changing nature of planning and development review.
To increase housing production in light of the ongoing housing crisis, recent State law has prioritized streamlining the permitting process for housing developments. As a result, cities are receiving higher volumes of development applications that are reviewed and approved at staff level without public hearings. Therefore, the needs of the Department and development community are expected to shift towards processing administrative applications, which the Junior/Assistant Planner position is intended to support.
POLICY ALTERNATIVE(S):
Alternative 1: Do not approve reallocation of funding for a vacant Associate Planner position to fund a Junior/Assistant Planner position in the Planning Department.
Pros: None.
Cons: If the conversion of the vacant Associate Planner into a Junior/Assistant position is not approved, the Planning Department will see high turnover at the Planning Technician classification as there will be no path for career advancement within the City. The Department may also continue to see high turnover at the Associate Planner position as they will have to provide additional support at the front counter relative to other cities.
Furthermore, the City will miss out on the opportunity to improve customer service for Milpitas’ residents and small business owners.
Reason for Not Recommending: The conversion of the vacant Associate Planner into a Junior/Assistant position will allow the Planning Department to achieve better operational balance, provide opportunities for professional advancement, retain staff, and adapt to the changing nature of development review, and consequently, the evolving needs of the Department.
FISCAL IMPACT:
The estimated fiscal impact from this recommendation is a $49,500 net savings for FY2024-2025. The estimated impacts are as follow:
Delete Add
Position Cost Fully Loaded Cost Position Cost Fully Loaded Cost Associate Planner ($257,583) Junior/Assistant Planner $208,083 Budget Impact (savings) ($257,583) Additional Funds Needed $208,083 CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):
This action is exempt pursuant to CEQA Guideline 15378(b)(4) as a governmental fiscal activity which does not involve any commitment to any specific project.
RECOMMENDATION:
Adopt a resolution to approve the deletion of a vacant Associate Planner position and the addition of a Junior/Assistant Planner position in the Planning Department.
ATTACHMENT(S):
Resolution
RESOLUTION NO. ____
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MILPITAS TO AMEND
BUDGETED ALLOCATED POSITIONS IN THE PLANNING DEPARTMENT WHEREAS, the City Council approved the reclassification of an Assistant Planner position to an Associate Planner position as part of the adopted FY 2021-22 operating budget; and WHEREAS, the adopted Fiscal Year 2024-25 operating budget included funding for three (3) Associate Planner positions, one (1) of which has remained vacant following staff attrition; and WHEREAS, neighborhoods and housing, and economic development and job growth are priorities for City Council.
WHEREAS, recent State law aims to increase housing production and streamline permitting processes, thereby changing the nature of development review and the needs of the Planning Department.
WHEREAS, the Junior/Assistant Planner position would allow the Planning Department to improve customer service at the front counter and process a higher volume of administrative permits.
NOW THEREFORE, the City Council of the City of Milpitas hereby finds, determines, and resolves to amend the budgeted allocated positions in the Planning Department by:
1. Deleting an Associate Planner position; and
2. Reallocating funding from the deleted Associated Planner position to fund a Junior/Assistant Planner position.
PASSED AND ADOPTED this day of , 2024, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST: APPROVED:
_____________________________ _____________________________ Suzanne Guzzetta, City Clerk Carmen Montano, Mayor
APPROVED AS TO FORM:
_____________________________
Michael Mutalipassi, City Attorney
CITY OF MILPITAS
AGENDA REPORT
(AR)
Item Title: Adopt a Resolution to Accept the Grant from and Approve an Agreement with the Santa Clara County Public Health Department to Implement an Ordinance to Prevent Youth Access to Tobacco Products (Staff Contact: Jay Lee, Planning Director, 408-586-3077)
Category: Consent Calendar-Community Development
Meeting Date: 12/3/2024
Recommendation: Adopt a resolution to accept a grant award of $22,997 from the Santa Clara County Public Health Department and authorize the City Manager to execute an Agreement with the Santa Clara County Public Health Department for the Healthy Cities Program in the amount of $22,997.
BACKGROUND:
The Santa Clara County Healthy Cities Program seeks to address tobacco-related health concerns by promoting policies and practices to provide tobacco-free and smoke-free communities. The Santa Clara County Public Health Department has provided funding to cities to support tobacco prevention strategies.
Following the City Council request to explore policies to discourage tobacco use and vaping by teens, on July 20, 2020, the City executed a grant agreement in the amount of $37,560 with the Santa Clara County Public Health Department (PHD) to explore tobacco prevention policies shown to reduce youth access and exposure to tobacco products. The City of Milpitas had previously adopted ordinances to prohibit smoking in parks and trails in 2012 and outdoor dining areas in 2017. In June 2021, the City adopted an ordinance to prohibit smoking in multi-unit residences and many outdoor areas to reduce exposure to secondhand smoke.
State and Federal Laws
On August 28, 2020, California passed a law prohibiting the sale of most flavored tobacco products (SB 793).
The state law contains three exemptions:
1. Hookah and shisha products (if sold by an adult-only hookah tobacco retailer);
2. Premium cigars with a wholesale price of no less than $12; and
3. Loose leaf tobacco (other than tobacco for roll-your-own-cigarettes).
On November 8, 2022, California voters upheld SB 793, prohibiting a tobacco retailer, or any of the tobacco retailer’s agents or employees, from selling, offering for sale, or possessing with the intent to sell or offer for sale, most flavored tobacco products including flavored e-cigarettes and menthol cigarettes, as well as tobacco product flavor enhancers in retail locations. On October 7, 2023, Governor Newsom signed into law AB 935, strengthening the enforcement of the flavored tobacco retail law, and broadening the definition of a retail location.
ANALYSIS:
On March 29, 2024, the City was awarded a grant of $22,997 from the Santa Clara County Public Health Department Tobacco-Free Communities Program to reduce the density of tobacco retailers and location of tobacco retailers near sensitive areas within the city.
Specifically, City staff will draft an ordinance aimed at reducing the number of tobacco retailers within the City.
The ordinance will codify buffers to prevent new licenses to retailers within 1,000 feet of sensitive receptors1, and within 500 feet of other tobacco retailers. If the ordinance is adopted by the City Council, staff will 1 Sensitive receptors refer to locations or populations particularly vulnerable or susceptible to negative impacts, such as noise, pollution, or other environmental hazards. Examples of sensitive receptors typically include residential areas, schools, hospitals, daycare centers, and parks.
implement the ordinance through the business license and permitting processes. Staff will also explore other methods of reducing the overall concentration of tobacco retailers.
POLICY ALTERNATIVE(S):
Alternative 1: Do not execute the Agreement with the Santa Clara County Public Health Department.
Pros: None
Cons: The City would not receive funds to reimburse staff time to implement an ordinance to prevent youth access to tobacco products.
Reason for Not Recommending: Policies to regulate tobacco retailers would reduce youth access to tobacco products and demonstrate the City’s commitment to protecting the health of its residents. Without the implementation of the ordinance, the City would not be able to regulate the density of tobacco retailers.
FISCAL IMPACT:
If approved, the City will receive $22,997 from the County to cover the costs of the development and implementation of the proposed tobacco regulations.
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):
Not applicable. The selection and contractual arrangement do not constitute a project in accordance with Section 15378 of the CEQA Guidelines.
RECOMMENDATION:
Adopt a resolution to accept a grant award of $22,997 from the Santa Clara County Public Health Department and authorize the City Manager to execute an Agreement with the Santa Clara County Public Health Department to Implement an Ordinance to Prevent Youth Access to Tobacco Products.
ATTACHMENT(S):
(a) Resolution
(b) Agreement with the Santa Clara County Public Health Department
RESOLUTION NO. _____
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MILPITAS ACCEPTING THE GRANT AWARD OF $22,997 FROM THE COUNTY OF SANTA CLARA PUBLIC HEALTH
DEPARTMENT, AND APPROVING AND AUTHORIZING THE CITY MANAGER OR
DESIGNEE TO EXECUTE AN AGREEMENT WITH THE COUNTY OF SANTA CLARA
PUBLIC HEALTH DEPARTMENT TO IMPLEMENT AN ORDINANCE TO PREVENT YOUTH ACCESS TO TOBACCO PRODUCTS FOR AN AMOUNT NOT TO EXCEED $22,997 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, the County of Santa Clara Public Health Department’s (PHD) mission is to protect and improve the health and well-being of the community; and WHEREAS, PHD’s Healthy Cities Program seeks to address tobacco-related health concerns by promoting policies and practices to provide tobacco-free and smoke-free communities; and WHEREAS, PHD provides funding to cities to support tobacco prevention strategies; and WHEREAS, on March 25, 2024, the City submitted an application to the PHD through the Healthy Cities Program to request funding to implement an ordinance to prevent youth access to tobacco products; and
WHEREAS, on March 29, 2024, PHD awarded a grant of $22,997 to the City to reduce the density of tobacco retailers and location of tobacco retailers near sensitive areas within the city; and WHEREAS, staff recommends the City Council accept the grant award from the PHD and authorize the City Manager to execute an Agreement with PHD to implement an ordinance to prevent youth access to tobacco products; and
NOW, THEREFORE, the City Council of the City of Milpitas hereby finds, determines, and resolves as follows:
SECTION 1. Recitals
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 publish, 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 incorporated herein by reference.
SECTION 2. City Council Approval
The City Council hereby accepts the grant award of $22,997 from the County of Santa Clara Public Health Department and authorize the City Manager to execute an Agreement with the County of Santa Clara Public Health Department, for the Healthy Cities Program, for an amount not to exceed $22,997.
PASSED AND ADOPTED this 3rd day of December 2024, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
___________________________
Suzanne Guzzetta, City Clerk
APPROVED:
Carmen Montano, Mayor
APPROVED AS TO FORM:
Michael Mutalipassi, City Attorney
COUNTY OF SANTA CLARA
SERVICE AGREEMENT
Version 5.28.2024
SECTION I: GENERAL INFORMATION
Contractor Name:
(As Displayed in SAP)
Purchase Order Number:
Agency/Department Name: Department
Number:
Brief Description of Services
Maximum Financial Obligation
The maximum amount payable to this Contractor
under this agreement shall not exceed:
Term of Agreement
Start Date: End Date:
Note: When left blank, start date will be the date executed by Authorized County Representative.
For County Use Only
Account
Assignment
Plant
Number
General
Ledger
(Expense
Code)
Cost
Center
(Dept.
Code)
Amount WBS
(Capital Project Code)
Internal
Order
(“PCA” code
– optional)
Line 1 Select
Line 2 Select
Line 3 Select
Line 4 Select
Line 5 Select
COUNTY OF SANTA CLARA
SERVICE AGREEMENT
Version 5.28.2024
SECTION II: PARTIES TO AGREEMENT
Legal notices and invoices pertaining to this Agreement shall be sent to the appropriate contact person listed below, except as otherwise specifically provided for herein. Notices shall be in writing and served either by personal delivery or sent by certified or registered mail, postage prepaid, addressed as follows.
Notice shall be deemed effective on the date that the notice is personally delivered or, if mailed, three (3) days after deposit in the mail. Either party may designate a different person and/or address for the receipt of notices by sending written notice to the other party, which shall not require an amendment to this Agreement.
CONTRACTOR
Contractor Name:
(As Displayed in SAP)
Contact Person:
Street Address*:
City*: State: Zip:
Telephone Number*:
Email Address*:
SCC Vendor Number:
(As Assigned in SAP)
*To be completed for Independent Contractors Only – DO NOT COMPLETE FOR DEPENDENT CONTRACTORS
COUNTY OF SANTA CLARA
Agency/Department:
Program Manager/Contract
Monitor Name:
Street Address:
City: State: Zip:
Telephone Number:
Fiscal Contact:
(Accounts Payable Contact)
Contract Preparer:
COUNTY OF SANTA CLARA
SERVICE AGREEMENT
Version 5.28.2024
SECTION III: CONTRACT AUTHORIZATION
It is agreed between County and Contractor that Contractor will, for the compensation described in this Agreement, perform the work described in Section V in accordance with all terms and conditions of this Agreement including all exhibits and attachments. In addition, County and Contractor assert that the tax withholding status and benefit documentation (Section IV) accurately reflect the anticipated working relationship between County and Contractor. Further, Independent Contractors shall comply with the County’s insurance and indemnification requirements. Contractor certifies that any applicable insurance waiver information (Section VII, B) is true and correct. This Agreement may be executed in one or more counterparts, each of which will be considered an original, but all of which together will constitute one and the same instrument.
SIGNATURES
Contract is not valid until signed by Contractor, County Counsel and County’s Authorized Representative.
County Agency/Department
Manager: Date:
County Agency/Department
Fiscal Officer: Date:
County Counsel Approval as to
Form and Legality
Date:
(Signature required on all contracts before execution by Contractor and County Authorized Representative)
Contractor: Date:
County Authorized
Representative: Date:
(Procurement Department; President, Board of Supervisors; or Delegated Authority) Office of the County Executive:
Date:
(Signature required when Board approved contract by a delegation of authority) Signed and certified that a copy of this
document has been delivered by
electronic or other means to the
President, Board of Supervisors.
Attest:
Curtis Boone
Acting Clerk of the Board of Supervisors
(Signature required when Board approved contract)
Date:
COUNTY OF SANTA CLARA
SERVICE AGREEMENT
Version 5.28.2024
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SECTION IV: DETERMINATION OF RELATIONSHIP STATUS
Dependent/Independent status is an important relationship distinction. It determines the contractor’s eligibility for Medicare and Social Security, Public Employees’ Retirement System benefits, and other benefits and affects how the contractor files tax returns and the contractor’s responsibility for various federal and state taxes.
Questionnaire to be Completed by Contracting Department to Determine Relationship Status of Contractor Supervision: Will the County have the right to tell the contractor how to do the work, when to arrive or leave work, or when to take breaks? Do you have other employees performing similar work with a similar degree of supervision? If the answer to any of these questions is YES, select YES from the dropdown.
Select...
Training: Will the County instruct the contractor on how to do the job or pay for external training? Select...
Incomplete Work: Will the Contractor be able to resign or terminate the contract without being held either financially or legally liable for unfinished work? Select...
Place of Work/Tools: Will the County provide the Contactor with a place to work at a County location and tools to do the job, i.e. computers, telephones, etc.? Select...
Length of Relationship: When the Contractor is hired to complete ongoing departmental duties or functions— answer YES. When the contractor is hired to complete a specific project that was not the regular tasks performed by County employees before— answer NO.
Select...
Other Customers: Does the County prevent the Contractor from performing similar services for other customers, either due to the amount of work (full‐time), or by contractual provision? Select...
Designation as Business Entity: If the Contractor has a business license or business certificate, or is a corporation, nonprofit organization, or school district, select “No” from the dropdown. (This does not pertain to professional licenses or certificates such as a license for a physician or architect.) Enter below the business license number and the city/entity where issued.
Bus. License #: Issued by:
Payment Schedule: Will payments be made either as an hourly wage or as weekly/monthly salary? If payment is by commission or based on project milestones or deliverables, answer “NO” to this question. Be sure this answer matches the contract payment schedule in Section V.
Select...
Support Services: Will County employees or other independent contractors provide assistance to this Contractor? Assistance is defined as clerical, technical or professional support. Select...
If at least 5 of the above questions were answered “NO”, Contractor is an Independent Contractor.
If 5 or more of the above questions were answered “YES”, Contractor is a Dependent Contractor, where the relationship resembles that of employer/employee. Tax withholding is required, and benefits are provided. Complete and attach the following forms: Employee’s Withholding Allowance Certificate—Federal Form W‐4, State Withholding, Form DE‐4, Determining PERS Eligibility and PERS Member Action Request. Visit www.ceo for more information regarding Dependent Contractors.
County insurance requirements do not apply to Dependent Contractors.
Contractor understands and agrees that the tax withholding and benefit status checked above is correct. Any changes to the contractor’s tax withholding and benefit status require a new contract. Contractor is responsible for any penalties and liabilities assessed by any taxing authority, based on a change of tax withholding and benefit status.
Contractor’s Initials: Dept. Fiscal Officer’s
Signature:
COUNTY OF SANTA CLARA
SERVICE AGREEMENT
Version 5.28.2024
SECTION V: CONTRACT SPECIFICS
A. SERVICE DESCRIPTION AND EXPECTED OUTCOME (SCOPE OF SERVICE) Or See Attachment: incorporated by this reference.
B. DELIVERABLES, MILESTONES & TIMELINE FOR PERFORMANCE
Or See Attac hment: Incorporated by this reference.
COUNTY OF SANTA CLARA
SERVICE AGREEMENT
Version 5.28.2024
C. PERFORMANCE STANDARDS
Or See Attac hment: Incorporated by this reference.
D. PAYMENT SCHEDULE
Note: Dependent contractors are not permitted to work in excess of 40 hours per week
Is contractor a Community Based Organization (CBO)?
Yes
No
Or See Attachment: Incorporated by this reference.
COUNTY OF SANTA CLARA
SERVICE AGREEMENT
Version 5.28.2024
SECTION VI: STANDARD PROVISIONS
Changes to the terms and conditions in this section require approval of County Counsel A. ENTIRE AGREEMENT
This Agreement and its Appendices (if any) constitutes the final, complete and exclusive statement of the terms of the agreement between the parties. It incorporates and supersedes all the agreements, covenants and understandings between the parties concerning the subject matter hereof, and all such agreements, covenants and understandings have been merged into this Agreement. No prior or contemporaneous agreement or understanding, verbal or otherwise, of the parties or their agents shall be valid or enforceable unless embodied in this Agreement.
B. AMENDMENTS
This agreement may only be amended by a written instrument signed by the Parties.
C. CONFLICTS OF INTEREST; POLITICAL REFORM ACT
Contractor shall comply, and require its employees, agents, and subcontractors to comply, with all (1) applicable requirements governing avoidance of impermissible client conflicts; and (2) federal, state and local conflict of interest and disclosure laws and regulations including, without limitation, California Government Code section 1090 et seq., the California Political Reform Act (California Government Code section 87100 et seq.) and the regulations of the Fair Political Practices Commission concerning disclosure and disqualification (2 California Code of Regulations section 18700 et seq.). Failure to do so constitutes a material breach of this Agreement and is grounds for immediate termination of this Agreement by County.
In accepting this Agreement, Contractor covenants that it presently has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of this Agreement. Contractor further covenants that, in the performance of this Agreement, it will not use any contractor or employ any person having such an interest. Contractor, including but not limited to Contractor’s employees, agents, and subcontractors, may be subject to the disclosure and disqualification provisions of the California Political Reform Act of 1974 (the “Act”), that (1) requires such persons to disclose economic interests that may foreseeably be materially affected by the work performed under this Agreement, and (2) prohibits such persons from making or participating in making decisions that will foreseeably financially affect such interests.
If the disclosure provisions of the Act are applicable to any individual providing service under the Agreement, Contractor shall, upon execution of this Agreement, provide County with the names, description of individual duties to be performed, and email addresses of all individuals, including but not limited to Contractor’s employees, agents and subcontractors, that could be substantively involved in “mak[ing] a governmental decision” or “serv[ing] in a staff capacity” and in that capacity participating in making governmental decisions or performing duties that would be performed by an individual in a designated position, (2 CCR 18700.3), as part of Contractor’s service to County under this Agreement. Contractor shall immediately notify County of the names and email addresses of any additional individuals later assigned to provide such service to County under this Agreement in such a capacity. Contractor shall immediately notify County of the names of individuals working in such a capacity who, during the course of the Agreement, end their service to County. Contractor shall ensure that all such individuals identified pursuant to this paragraph understand that they are subject to the Act and shall conform to all requirements of the Act and other applicable conflict of interest and disclosure laws and regulations, and shall file Statements of Economic Interests within 30 days of commencing service pursuant to this Agreement, annually by April 1, and within 30 days of their termination of service pursuant to this Agreement.
D. LEVINE ACT COMPLIANCE
Contractor will comply, and will ensure that its agents (as that term is defined under 2 Cal. Code Regs. § 18438.3(a)) and its subcontractors identified in Contractor’s proposal responding to a County solicitation and/or identified in this Agreement (“Subcontractors”) comply, with California Government Code section 84308 (“Levine Act”) and the applicable regulations of the Fair Political Practices Commission concerning campaign disclosure (2 California Code of Regulations sections 18438.1 – 18438.8), which (1) require a party to a proceeding involving a contract to disclose on the record of the proceeding any contribution, as defined by Government Code section 84308(a)(6), of more than $250 that the party or their agent has made within the prior 12 months, and (2) prohibit a party to a proceeding involving a contract from making a contribution, as defined by Government Code section 84308(a)(6), of more than $250 to any County officer during the proceeding and for 12 months following the final decision in the proceeding.
Contractor agrees to submit any disclosures required to be made under the Levine Act at the Office of the Clerk of the
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Board of Supervisors website at http://www.sccgov.org/levineact, and Contractor shall require Subcontractors to do the same. If this Agreement is to be considered or voted upon by the County’s Board of Supervisors, Contractor shall complete the Levine Act Contractor Form: Identification of Subcontractors and Agents, and if applicable, shall ensure that any Subcontractor completes the Levine Act Subcontractor Form: Identification of Agents, and Contractor must submit all such forms to the County as a prerequisite to execution of the Agreement.
E. GOVERNING LAW, VENUE
This Agreement has been executed and delivered in, and shall be construed and enforced in accordance with, the laws of the State of California. Proper venue for legal action regarding this Agreement shall be in the County of Santa Clara.
F. ASSIGNMENT
No assignment of this Agreement or of the rights and obligations hereunder shall be valid without the prior written consent of the other party.
G. ASSIGNMENT OF CLAYTON ACT, CARTWRIGHT ACT CLAIMS
Contractor assigns to the County all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. Sec. 15) or under the Cartwright Act (Chapter 2 (commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code), arising from purchases of goods, materials, or services by the Contractor for sale to the County pursuant to this Agreement.
H. WAIVER
No delay or failure to require performance of any provision of this Agreement shall constitute a waiver of that provision as to that or any other instance. Any waiver granted by a party shall be in writing and shall apply to the specific instance expressly stated.
I. TERMINATION
Standard Termination Language
The County may, by written notice to Contractor, terminate all or part of this Agreement at any time for the convenience of the County. The notice shall specify the effective date and the scope of the termination. In the event of termination, Contractor shall deliver to County all documents prepared pursuant to the Agreement, whether complete or incomplete.
Contractor may retain a copy for its records. Upon receipt of the documents, Contractor shall be compensated based on the completion of services provided, as solely and reasonably determined by County. ‐OR‐
Alternate Termination Language Attached as Exhibit , incorpor ated by this reference. (Requires County
Counsel Approval)
J. COMPLIANCE WITH ALL LAWS, INCLUDING NONDISCRIMINATION, EQUAL OPPORTUNITY, AND WAGE THEFT
PREVENTION
(1) Compliance with All Laws. Contractor shall comply with all applicable Federal, State, and local laws, regulations, rules, and policies (collectively, “Laws”), including but not limited to the non‐discrimination, equal opportunity, and wage and hour Laws referenced in the paragraphs below. (2) Compliance with Non‐Discrimination and Equal Opportunity Laws : Contractor shall comply with all applicable Laws concerning nondiscrimination and equal opportunity in employment and contracting, including but not limited to the following: Santa Clara County’s policies for contractors on nondiscrimination and equal opportunity; Title VII of the Civil Rights Act of 1964 as amended; Americans with Disabilities Act of 1990; the Age Discrimination in Employment Act of 1967; the Rehabilitation Act of 1973 (Sections 503 and 504); the Equal Pay Act of 1963; California Fair Employment and Housing Act (Gov. Code § 12900 et seq.); California Labor Code sections 1101, 1102, and 1197.5; and t he Genetic Information Nondiscrimination Act of 2008. In addition to the foregoing, Contractor shall not discriminate against any subcontractor, employee, or applicant for employment because of age, race, color, national origin, ancestry, religion, sex, gender identity, gender expression, sexual orientation, mental disability, physical disability, medical condition, political belief, organizational affiliation, or marital status
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in the recruitment, selection for training (including but not limited to apprenticeship), hiring, employment, assignment, promotion, layoff, rates of pay or other forms of compensation. Nor shall Contractor discriminate in the provision of services provided under this contract because of age, race, color, national origin, ancestry, religion, sex, gender identity, gender expression, sexual orientation, mental disability, physical disability, medical condition, political beliefs, organizational affiliations, or marital status. (3) Compliance with Wage and Hour Laws: Contractor shall comply with all applicable wage and hour Laws, which may include but are not limited to, the Federal Fair Labor Standards Act, the California Labor Code, and, if applicable, any local minimum wage, prevailing wage, or living wage Laws. (4) Definitions: For purposes of this Subsection H, the following definitions shall apply. A “Final Judgment” shall mean a judgment, decision, determination, or order (a) which is issued by a court of law, an investigatory government agency authorized by law to enforce an applicable Law, an arbiter, or arbitration panel and (b) for which all appeals have been exhausted or the time period to appeal has expired. For pay equity Laws, relevant investigatory government agencies include the federal Equal Employment Opportunity Commission, the California Division of Labor Standards Enforcement, and the California Department of Fair Employment and Housing. Violation of a pay equity Law shall mean unlawful discrimination in compensation on the basis of an individual’s sex, gender, gender identity, gender expression, sexual orientation, race, color, ethnicity, or national origin under Title VII of the Civil Rights Act of 1964 as amended, the Equal Pay Act of 1963, California Fair Employment and Housing Act, or California Labor Code section 1197.5, as applicable. For wage and hour Laws, relevant investigatory government agencies include the federal Department of Labor, the California Division of Labor Standards Enforcement, and the City of San Jose’s Office of Equality Assurance.
(5) Prior Judgments, Decisions or Orders against Contractor: By signing this Agreement, Contractor affirms that it has disclosed any final judgments that (A) were issued in the five years prior to executing this Agreement by a court, an investigatory government agency, arbiter, or arbitration panel and (B) found that Contractor violated an applicable wage and hour law or pay equity law. Contractor further affirms that it has satisfied and complied with – or has reached Agreement with the County regarding the manner in which it will satisfy – any such final judgments.
(6) Violations of Wage and Hour Laws or Pay Equity Laws During Term of Contract: If at any time during the term of this Agreement, Contractor receives a Final Judgment rendered against it for violation of an applicable wage and hour Law or pay equity Law, then Contractor shall promptly satisfy and comply with any such Final Judgment.
Contractor shall inform the Office of the County Executive‐Office of Countywide Contracting Management (OCCM) of any relevant Final Judgment against it within 30 days of the Final Judgment becoming final or of learning of the Final Judgment, whichever is later. Contractor shall also provide any documentary evidence of compliance with the Final Judgment within 5 days of satisfying the Final Judgment. Any notice required by this paragraph shall be addressed to the Office of the County Executive‐OCCM at 70 W. Hedding Street, East Wing, 11th Floor, San José, CA 95110. Notice provisions in this paragraph are separate from any other notice provisions in this Agreement and, accordingly, only notice provided to the Office of the County Executive‐OCCM satisfies the notice requirements in this paragraph.
(7) Access to Records Concerning Compliance with Pay Equity Laws: In addition to and notwithstanding any other provision of this Agreement concerning access to Contractor’s records, Contractor shall permit the County and/or its authorized representatives to audit and review records related to compliance with applicable pay equity Laws.
Upon the County’s request, Contractor shall provide the County with access to any and all facilities and records, including but not limited to financial and employee records, that are related to the purpose of this Subsection H, except where prohibited by federal or state laws, regulations or rules. County’s access to such records and facilities shall be permitted at any time during Contractor’s normal business hours upon no less than 10 business days’ advance notice.
(8) Pay Equity Notification : Contractor shall (1) at least once in the first year of this Agreement and annually thereafter, provide each of its employees working in California and each person applying to Contractor for a job in California (collectively, “Employees and Job Applicants”) with an electronic or paper copy of all applicable pay equity Laws or (2) throughout the term of this Agreement, continuously post an electronic copy of all applicable pay equity Laws in conspicuous places accessible to all of Contractor’s Employees and Job Applicants. (9) Material Breach : Failure to comply with any part of this Subsection H shall constitute a material breach of this Agreement. In the event of such a breach, the County may, in its discretion, exercise any or all remedies available
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under this Agreement and at law. County may, among other things, take any or all of the following actions:
(i) Suspend or terminate any or all parts of this Agreement. (ii) Withhold payment to Contractor until full satisfaction of a Final Judgment concerning violation of an applicable wage and hour Law or pay equity Law.
(iii) Offer Contractor an opportunity to cure the breach.
Subcontractors: Contractor shall impose all of the requirements set forth in this Subsection H on any subcontractors permitted to perform work under this Agreement. This includes ensuring that any subcontractor receiving a Final Judgment for violation of an applicable Law promptly satisfies and complies with such Final Judgment.
K. BUDGET CONTINGENCY
This Agreement is contingent upon the appropriation of sufficient funding by the County for the services covered by this Agreement. If funding is reduced or deleted by the County for the services covered by this Agreement, the County has the option to either terminate this Agreement with no liability occurring to the County or to offer an amendment to this Agreement indicating the reduced amount.
L. COUNTY NO-SMOKING POLICY
Contractor and its employees, agents and subcontractors, shall comply with the County’s No‐Smoking Policy, as set forth in the Board of Supervisors Policy Manual section 3.47 (as amended from time to time), which prohibits smoking:
(1) at the Santa Clara Valley Medical Center Campus and all County‐owned and operated health facilities,(2) within 30 feet surrounding County‐owned buildings and leased buildings where the County is the sole occupant, and (3) in all County vehicles.
M. FOOD AND BEVERAGES STANDARDS
Except in the event of an emergency or medical necessity, the following nutritional standards shall apply to any foods and/or beverages purchased by Contractor with County funds for County‐sponsored meetings or events.
If food is to be provided, healthier food options shall be offered. “Healthier food options” include (1) fruits, vegetables, whole grains, and low fat and low calorie foods; (2) minimally processed foods without added sugar and with low sodium; (3) foods prepared using healthy cooking techniques; and (4) foods with less than 0.5 grams of trans fat per serving. Whenever possible, Contractor shall (1) offer seasonal and local produce; (2) serve fruit instead of sugary, high calorie desserts; (3) attempt to ac commodate special, dietary and cultural needs; and (4) post nutritional information and/or a list of ingredients for items served. If meals are to be provided, a vegetarian option shall be provided, and the Contractor should consider providing a vegan opti on.
If pre‐packaged snack foods are provided, the items shall contain: (1) no more than 35% of calories from fat, unless the snack food items consist solely of nuts or seeds; (2) no more than 10% of calories from saturated fat; (3) zero trans‐fat; (4) no more than 35% of total weight from sugar and caloric sweeteners, except for fruits and vegetables with no added sweeteners or fats; and (5) no more than 360 mg of sodium per serving.
If beverages are to be provided, beverages that meet the County’s nutritional criteria are (1) water with no caloric sweeteners; (2) unsweetened coffee or tea, provided that sugar and sugar substitutes may be provided as condiments; (3) unsweetened, unflav ored, reduced fat (either nonfat or 1% low fat) dairy milk; (4) plant‐derived milk (e.g., soy milk, rice milk, and almond milk) with no more than 130 calories per 8 ounce serving; (5) 100% fruit or vegetable juice (limited to a maximum of 8 ounces per container); and (6) other low‐calorie beverages (including tea and/or diet soda) that do not exceed 40 calories per 8 ounce serving. Sugar‐sweetened beverages shall not be provided.
N. CONTRACTING PRINCIPLES
All entities that contract with the County to provide services where the contract value is $100,000 or more per budget unit per fiscal year and/or as otherwise directed by the Board, shall be fiscally responsible entities and shall treat their employees fairly. To ensure compliance with these contracting principles, all contractors shall: (1) comply with all applicable federal, state and local rules, regulations and laws; (2) maintain financial records, and make those records available upon request; (3) provide to the County copies of any financial audits that have been completed during the term of the contract; (4) upon the County’s request, provide the County reasonable access, through representatives of the Con tractor, to facilities, financial and employee records that are related to the purpose of the contract, except where prohibited by federal or state laws, regulations or rules.
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O. CALIFORNIA PUBLIC RECORDS ACT
The County is a public agency subject to the disclosure requirements of the California Public Records Act (“CPRA”). If Contractor’s proprietary information is contained in documents or information submitted to County, and Contractor claims that such information falls within one or more CPRA exemptions, Contractor must clearly mark such information “CONFIDENTIAL AND PROPRIETARY,” and identify the specific lines containing the information. In the event of a request for such information, the County will make best efforts to provide notice to Contractor prior to such disclosure. If Contractor contends that any documents are exempt from the CPRA and wishes to prevent disclosure, it is required to obtain a protective order, injunctive relief or other appropriate remedy from a court of law in Santa Clara County
before the County is required to respond to the CPRA request. If Contractor fails to obtain such remedy within the time the County is required to respond to the CPRA request, County may disclose the requested information.
Contractor further agrees that it shall defend, indemnify and hold County harmless against any claim, action or litigation (including but not limited to all judgments, costs, fees, and attorney’s fees) that may result from denial by County of a CPRA request for information arising from any representation, or any action (or inaction), by the Contractor.
P. THIRD PARTY BENEFICIARIES
This agreement does not, and is not intended to, confer any rights or remedies upon any person or entity other than the parties.
Q. INTELLECTUAL PROPERTY RIGHTS
Ownership: County shall own all right, title and interest in and to the Deliverables. For purposes of this Agreement, the term “Deliverables” shall mean any documentation and deliverables created by Contractor during the performance of services that are identified in this Agreement. Contractor hereby assigns to the County all rights, title and interest in and to any and all intellectual property whether or not patentable or registrable under patent, copyright, trademark or similar statutes, made or conceived or reduced to practice or learned by Contractor, either alone or jointly with others, during the period of Contractor’s agreement with the County or result from the use of premises leased, owned or contracted for by the County.
Contractor acknowledges that all original works of authorship which are made by Contractor (either solely or jointly with others) within the scope of this Agreement and which are protectable by copyright are “works made for hire,” as that term is defined in the United States Copyright Act (17 U.S.C. Section 101), and shall belong solely to County.
Contractor agrees that the County will be the copyright owner in all copyrightable works of every kind and description created or delivered by Co ntractor, either solely or jointly with others, in connection with any agreement with the County.
R. INTELLECTUAL PROPERTY INDEMNITY
Contractor represents and warrants for the benefit of the County and its users that, to its knowledge, as of the effective date of this Agreement, Contractor is the exclusive owner of all rights, title and interest in the Deliverables and/or services provided pursuant to this Agreement. Contractor shall defend, indemnify and hold the County harmless against any claim, action or litigation (including but not limited to all judgments, costs, fees, and reasonable attorney’s fees) by a third party alleging the Deliverables and/or services provided pursuant to this Agreement infringe upon any intellectual property rights of third parties. This indemnity and duty to defend is in addition to and does not supersede the requirements stated in VII of this agreement.
S. OWNERSHIP RIGHTS TO MATERIALS/RESTRICTIONS ON USE
All materials obtained, developed or prepared by Contractor in the course of performing services hereunder, including but not limited to videotapes, audio recordings, still photographs, ads or brochures, and the derivative works, patent, copyright, trademark, trade secret or other proprietary rights associated therewith (collectively “Deliverables”), shall be the sole and exclusive property of the County. To the extent Contractor owns or claims ownership rights to said Deliverables, Contractor hereby expressly assigns all said rights, title, and interest in and to the Deliverables to the County pursuant to the terms and conditions of this Agreement and at no additional cost. The County has the exclusive royalty‐free irrevocable right to duplicate, publish or otherwise use for any purpose, all materials prepared under this Agreement. If Contractor wishes to use the materials prepared hereunder for any purpose including but not limited to promotional, educational or commercial purposes, the Contractor shall obtain prior written authorization from the
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County, which consent may be withheld by the County in its sole discretion.
Contractor acknowledges that all original works of authorship which are made by Contractor (solely or jointly with others) within the scope of this Agreement and which are protectable by copyright are “works made for hire,” as that term is defined in the United States Copyright Act (17 U.S.C., Section 101), and shall belong solely to County.
Contractor agrees that the County will be the copyright owner in all copyrightable works of every kind and description created or developed by Contractor, solely or jointly with others, in connection with any agreement with the County.
If requested to, and at no further expense to the County, Contractor will execute in writing any acknowledgments or assignments of copyright ownership of such copyrightable works as may be appropriate for preservation of the worldwide ownership in the County and its nominees of such copyrights. This section shall apply to the extent not otherwise provided under this agreement.
T. COUNTY DATA
(1) Definitions: “County Data” shall mean data and information received by Contractor from County. County Data includes any information or data that is transported across a County network, or that resides in a County‐owned information system, or on a network or system under the control and management of a contractor for use by County. “County Confidential Information” shall include all material, non‐public information (including material, non‐public County Data) appearing in any form (including, without limitation, written, oral or displayed), that is disclosed, directly or indirectly, through any means of communication by County, its agents or employees, to Contractor, its agents or employees, or any of its affiliates or representatives. (2) Contractor shall not acquire any ownership interest in County Data (including County Confidential Information).
As between Contractor and County, all County Confidential Information and/or County Data shall remain the property of the County. Contractor shall not, without County’s written permission, use or disclose County Data (including County Confidential Information) other than in the performance of its obligations under this Agreement. (3) Contractor shall be responsible for establishing and maintaining an information security program that is designed to ensure the security and confidentiality of County Data, protect against any anticipated threats or hazards to the security or integrity of County Data, and protect against unauthorized access to or use of County Data that could result in substantial harm or inconvenience to County or any end users. Upon termination or expiration of this Agreement, Contractor shall seek and follow County’s direction regarding the proper disposition of County Data. (4) Contractor shall take appropriate action to address any incident of unauthorized access to County Data, including addressing and/or remedying the issue that resulted in such unauthorized access, and notifying County by phone or in writing within 24 hours of any incident of unauthorized access to County Data, or any other breach in Contractor’s security that materially affects County or end users. If the initial notification is by phone, Contractor shall provide a written notice within 5 days of the incident. Contractor shall be responsible for ensuring compliance by its officers, employees, agents, and subcontractors with the confidentiality, privacy, and information security requirements of this Agreement. Should County Confidential Information and/or legally protected County Data be divulged to unauthorized third parties, Contractor shall comply with all applicable federal and state laws and regulations, including but not limited to California Civil Code sections 1798.29 and 1798.82 at Contractor’s sole expense. Contractor shall not charge County for any expenses associated with Contractor’s compliance with these obligations. (5) Contractor shall defend, indemnify and hold County harmless against any claim, liability, loss, injury or damage arising out of, or in connection with, the unauthorized use, access, and/or disclosure of information by Contractor and/or its agents, employees or sub‐contractors, excepting only loss, injury or damage caused by the sole negligence or willful misconduct of personnel employed by the County.
U. PAYMENT TERM
[NOT APPLICABLE TO COMMUNITY BASED ORGANIZATIONS – Describe payment terms for CBO’s in Section V. (D) PAYMENT SCHEDULE] The County’s standard payment term shall be Net Thirty (30), unless otherwise agreed to by the parties. Payment shall be due Net Thirty (30) days from the date of receipt and approval of correct and proper invoices. Payment is deemed to have been made on the date the County mails the warrant or initiates the electronic funds transfer.
V. CONTRACT EXECUTION
Unless otherwise prohibited by law or County policy, the parties agree that an electronic copy of a signed contract, or an electronically signed contract, has the same force and legal effect as a contract executed with an original ink signature. The term “electronic copy of a signed contract” refers to a transmission by facsimile, electronic mail, or
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other electronic means of a copy of an original signed contract in a portable document format. The term “electronically signed contract” means a contract that is executed by applying an electronic signature using technology approved by the County.
W. LIVING WAGE (IF APPLICABLE)
Unless otherwise exempted or prohibited by law or County policy, where applicable, Contractors that contract with the County to provide Direct Services developed pursuant to a formal Request for Proposals process, as defined in County of Santa Clara Ordinance Code Division B36 (“Division B36”) and Board Policy section 5.5.5.5 (“Living Wage Policy”), and their subcontractors, where the contract value is $100,000 or more (“Direct Services Contract”), must comply with Division B36 and the Living Wage Policy and compensate their employees in accordance with Division B36 and the Living Wage Policy. Compliance and compensation for purposes of this provision includes, but is not limited to, components relating to fair compensation, earned sick leave, paid jury duty, fair workweek, worker retention, fair chance hiring, targeted hiring, local hiring, protection from retaliation, and labor peace. If Contractor and/or a subcontractor violates this provision, the Board of Supervisors or its designee may, at its sole discretion, take responsive actions including, but not limited to, the following:
(a) Suspend, modify, or terminate the Direct Services Contract. (b) Require the Contractor and/or Subcontractor to comply with an appropriate remediation plan developed by the County.
(c) Waive all or part of Division B36 or the Living Wage Policy.
This provision shall not be construed to limit an employee's rights to bring any legal action for violation of the employee's rights under Division B36 or any other applicable law. Further, this provision does not confer any rights upon any person or entity other than the Board of Supervisors or its designee to bring any action seeking the cancellation or suspension of a County contract. By entering into this contract, Contractor certifies that it is currently complying with Division B36 and the Living Wage Policy with respect to applicable contracts and warrants that it will continue to comply with Division B36 and the Living Wage Policy with respect to applicable contracts.
X. COVID-19 REQUIREMENTS (IF APPLICABLE)
Contracto
r shall comply with all County requirements in effect relating to COVID ‐19 for persons who routinely
perform services for County onsite and share airspace with or proximity to other people at a County facility as part of their services for County as set forth in a County Health Order (or similar directives) a vailable at https://
covid19.sccgov.org/home, and incorporated herein by this reference. Contractor shall comply with all reasonable requests by County for documentation demonstrating Contractor’s compliance with this Section.
Y. SURVIVAL
All representations, warranties, and covenants contained in this Agreement, or in any instrument, certificate, exhibit, or other writing intended by the parties to survive this Agreement, shall survive the termination or expiration of this Agreement, including but not limited to all terms (1) providing for indemnification of County; (2) relating to the California Public Records Act; (3) relating to County Data; and (4) relating to Contractor’s obligations upon termination or expiration of this Agreement.
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SECTION VII: INSURANCE/INDEMNIFICATION
Independent Contractors shall comply with the County’s insurance and indemnification requirements as indicated below. These requirements do not apply to Dependent Contractors.
A. TYPE OF INSURANCE LANGUAGE
The following standard insurance and indemnification language is attached and incorporated into this agreement:
Insurance Exhibit Name:
Modification or Waiver Attached (if appropriate)
B. DETERMINATION OF INSURANCE REQUIREMENTS AND WAIVER DECLARATION Workers Compensation:
Does the contractor have employees?
If “YES”, then, WORKER’S COMPENSATION/EMPLOYER'S LIABILITY INSURANCE IS REQUIRED.
Owned Auto Insurance:
Will the contractor use any owned autos in the provision of direct services, such as transporting clients in autos or operating autos in performance of the work itself? If “YES”, then INSURANCE FOR OWNED AUTOS IS REQUIRED.
Hired Auto Insurance:
Will the contractor use any hired autos in the provision of direct services, such as transporting clients in autos or operating autos in performance of the work itself? If “YES”, then INSURANCE FOR HIRED AUTOS IS REQUIRED.
Non-owned Auto Insurance
Will the contractor be using any non‐owned autos in the provision of direct services, such as transporting clients in non‐owned autos or operating non‐owned autos in performance of the work itself? If “YES” then, INSURANCE FOR NON‐OWNED AUTOS IS REQUIRED.
When “NO” is selected, this declaration will serve as a waiver for the specified type of insurance.
SECTION VIII: FEDERAL/STATE REQUIRED PROVISIONS
(Examples include Drug‐free Workplace Activity, Health Insurance Portability and Accountability Act (HIPAA), Business Associate Language, etc.)
A. Federal Required Language Attached
Only add special language if services included in the contract require language different from or in addition to that in Section VI.
Exhibit Name:
B. State Required Language Attached
Only add special language if services included in the contract require language different from or in addition to that in Section VI.
Exhibit Name:
The Exhibits named above are attached and incorporated by this reference.
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SECTION IX: ADDITIONAL ATTACHED EXHIBIT(S)
Attachments and exhibits that conflict with County standard provisions or require risk assessment must be approved by County Counsel. Examples of attachments that require County Counsel approval are:
1) Contractor’s terms and conditions that are different than, or add to the standard provisions’ language, 2) Any changes to the language in Section VI—Standard Provisions.
Exceptions to County Counsel review include attachments that further explain the Contract Specifics as outlined in Section V, and insurance exhibits.
Exhibit Name (s)
The Exhibits named above are attached and incorporated by this reference.
Agreement between Santa Clara Public Health Department Page 1 of 4 and City of Milpitas for Healthy Cities Program
Exhibit A
Scope of Work and Payment Schedule
City of Milpitas
Healthy Cities Program – Tobacco-Free Communities
A. Introduction
City of Milpitas (“City”) will conduct research, prevention strategies and develop recommendations to prevent youth access to tobacco products by reducing the density of tobacco retailers and location of tobacco retailers near sensitive areas in communities.
B. Reporting Requirements
1. Contractor will prepare a Quarterly Progress Report on their activities/progress and submit it to:
Don Tran, Program Manager
County of Santa Clara Public Health Department
1775 Story Rd. Suite 120
San Jose, CA 95122
Email: [email protected]
DUE: 15 days after the end of the calendar quarter (e.g., January – March report due by April 15)
2. Contractor can submit quarterly progress report with signed quarterly invoice via email. (PREFERRED)
C. Scope of Work - Phases and Task Description
Objective #1
Overall Goal: 1. To prevent youth access to tobacco products by reducing the number of tobacco retailers in communities.
Objective:
By June 30, 2025, implement a city-level strategy to reduce the number of tobacco retailers within the City of Milpitas.
Task #1 Task Description Timeline Responsible Staff Key Deliverables
1.1 City Staff will gather and
research strategies to reduce
the density of tobacco
retailers by codifying buffers
(e.g., no retailers within 1000
feet of sensitive areas or
within 500 feet of other
tobacco retailers) to prevent
new licenses from being
Fall 2024 Principal Planner /
Associate Planner
1.1a Summary of
research findings.
Agreement between Santa Clara Public Health Department Page 2 of 4 and City of Milpitas for Healthy Cities Program
issued to tobacco retailers
within the City of Milpitas.
Extensive research,
comparison and analysis will
be conducted to examine
how the proposed ordinance
should be drafted.
1.2 City Staff will develop
Staff/Council Memo and
Draft Ordinance for
consideration. This may also
include additional strategies
for reducing density and
concentration of tobacco
retailers.
Staff Report will be
presented at an upcoming
City Council and Planning
Commission meeting(s).
Fall-
Winter
2024
Principal Planner /
Associate Planner
1.2a Staff/Council
Memo
1.2b Draft
Ordinance for
reducing density
and
concentration of
tobacco retailers
1.2c Presentation
Materials
1.3 Consistent with City Council
direction, City Staff will
develop an implementation
and stakeholder outreach
plan to notify businesses of
new buffer requirements.
Educational materials may
include items such as: letters
to businesses (i.e. tobacco
retailers), legal notices,
renewal forms, postings, and
other types of collateral
created to share new
requirements.
Spring
2025
Principal Planner /
Associate Planner
1.3a
Implementation
Plan
1.3b Copies of
informational/ed
ucational
materials
1.3c List of
Tobacco Retailers
1.4 City Staff will develop new
mapping layers within City of
Milpitas Geographic
Information System (GIS) to
implement new buffer
strategies and ensure
Spring
2025
Associate Planner 1.4a Screenshots
of Developed GIS
Maps
1.4b List of
Training Dates
Agreement between Santa Clara Public Health Department Page 3 of 4 and City of Milpitas for Healthy Cities Program
D. Position Description Reference
• Principal Planner: The Principal Planner will be responsible for writing the ordinance to codify buffer strategies to decrease access to tobacco products and taking it through the required public hearings (Planning Commission and City Council).
• Associate Planner: The Associate Planner will be responsible for working with the IT Department/GIS Manager to create and update new mapping layers to implement the new buffer strategies and ensure compliance with the new ordinance.
E. Performance Standards
Performance is expected to adhere to the following standards:
1. Quality - Deliverables and final products will be as described in the Scope of Work and will be of high quality.
2. Timeliness - Deliverables and final products will be completed as scheduled.
3. Achievement of Project Goals – Project will achieve its goals as described in the Scope of Work.
compliance with new
ordinance. Planning Staff will
train other staff on new
buffer requirements.
and number of
Staff Trained
F. Invoices
1. Contractor will submit quarterly invoices and progress reports highlighting the status on tasks outlined within the developed scope of work. Invoices shall include Contractor's name and address; invoice number; contract purchase order number; date and description of services; total invoice amount; year-to-date expenditures and remaining contract balance.
2. Please note: Invoices covering services rendered in the final period of the fiscal year must be submitted no later than July 15. Progress Reports will include a narrative on what work was performed during the quarter and include any deliverables, collateral, and materials as appropriate.
3. If the invoice and supporting documents are in proper form, appropriately payable under this Agreement, and have been reviewed and approved by the appropriate Public Health Manager/Contract Monitor, the County shall make payment to Contractor following invoice review and approval.
Payment is contingent upon Contractor providing the agreed-upon services according to the scope of services, contract requirements, deliverables and performance standards detailed herein.
Agreement between Santa Clara Public Health Department Page 4 of 4 and City of Milpitas for Healthy Cities Program
4. If Contractor provides any tasks, deliverables, goods, services, or other work, other than as specified in this Agreement, the same will be deemed to be a gratuitous effort on the part of Contractor, and Contractor will have no claim whatsoever against the County.
G. Payment Schedule
Contractor will be reimbursed for staff time spent and costs incurred in performing the Scope of Work above, up to the amounts indicated below.
CATEGORY
A. SALARIES
Position/Title Hourly Rate
Principal Planner $269.23
Associate Planner $244. 00
Salary Subtotal: Up to $21,767
B. Operating Expenses
Public noticing for two hearings (PC and CC) and postage $ 1,230 Operating Subtotal: $ 1,230
Budget TOTAL (A+B): Up to $ 22,997
EXHIBIT B-2B (revised)
Rev. 9/2023
1 INSURANCE REQUIREMENTS FOR
STANDARD SERVICE CONTRACTS
BETWEEN $10,001 AND $50,000
Indemnity
Notwithstanding any other provision of this Agreement, Contractor shall indemnify, release, hold harmless, and defend, with counsel approved by County of Santa Clara (hereinafter “County”) , County and its officers, agents, and employees from any claim, demand, suit, judgment, liability, loss, injury, damage, or expense of any kind (including attorneys’ fees and costs) arising out of, or in connection with, perf ormance of this Agreement by Contractor and/or its officers, agents, employees, or sub-contractors, excepting only loss, injury, or damage caused by the sole negligence or willful misconduct of personnel employed by County. It is the intent of the parties to this Agreement to provide the broadest possible coverage for County as allowed by law. Contractor shall reimburse County for all costs, attorneys’ fees, expenses, and liabilities incurred with respect to any litigation or process in which Contractor contests its obligation to indemnify, defend, and/or hold harmless County under this Agreement and does not prevail in that contest.
Insurance
Without limiting the Contractor's indemnification of the County, the Contractor shall provide and maintain at its own expense, during the term of this Agreement, or as may be further required herein, the following insurance coverages and provisions:
A. Evidence of Coverage
Prior to commencement of this Agreement, the Contractor shall provide a Certificate of Insurance certifying that coverage as required herein has been obtained. Individual endorsements executed by the insurance carrier shall accompany the certificate. In addition, a certified copy of the policy or policies shall be provided by the Contractor upon request.
This verification of coverage shall be sent to the requesting County department, unless otherwise directed. The Contractor shall not receive a Not ice to Proceed with the work under the Agreement until it has obtained all insurance required and such insurance has been approved by the County. This approval of insurance shall neither relieve nor decrease the liability of the Contractor.
B. Qualifying Insurers
All coverages, except surety, shall be issued by companies which hold a current policy holder's alphabetic and financial size category rating of not less than A- V, according to the current Best's Key Rating Guide or a company of equal financial stability that is approved by the County's Insurance Manager.
EXHIBIT B-2B (revised)
Rev. 9/2023
2 C. Notice of Cancellation
All coverage as required herein shall not be canceled or changed so as to no longer meet the specified County insurance requirements without 30 days' prior written notice of such cancellation or c hange being delivered to the County of Santa Clara or their designated agent.
D. Insurance Required
1. Commercial General Liability Insurance - for bodily injury (including death) and property damage which provides limits as follows:
a. Each occurrence - $500,000
b. General aggregate - $500,000
c. Products/Completed Operations aggregate - $500,000
d. Personal Injury - $500,000
2. General liability coverage shall include:
a. Premises and Operations
b. Products/Completed
c. Personal Injury liability
d. Severability of interest
3. G eneral liability coverage shall include the following endorsement, a copy of which shall be provided to the County:
Additional Insured Endorsement, which shall read:
“County of Santa Clara, and members of the Board of Supervisors of the County of Santa Clara, and the officers, agents, and employees of the County of Santa Clara, individually and collectively, as additional insureds.”
Insurance afforded by the additional insured endorsem ent shall apply as primary insurance, and other insurance maintained by the County of Santa Clara, its officers, agents, and employees shall be excess only and not contributing with insurance provided under this policy. Pu blic Entities may also be added to the
EXHIBIT B-2B (revised)
Rev. 9/2023
3 additional insured endorsement as applicable and the contractor shall be notified by the contracting department of these requirements.
4. Automobile Liability Insurance
For bodily injury (including death) and property damage which provides total limits of not less than one hundred thousand dollars ($100,000) combined single limit per occurrence applicable to all owned, non-owned and hired vehicles.
4a. Aircraft/Watercraft Liability Insurance (Required if Contractor or any of its age nts or subcontractors will operate aircraft or watercraft in the scope of the Agreement)
For bodily injury (including death) and property damage which provides total limits of not less than one hundred thousand dollars ($100,000) combined single limit per occurrence applicable to all owned, non-owned and hired aircraft/watercraft.
5. Workers' Compensation and Employer's Liability Insurance
a. Statutory California Workers' Compensation coverage including broad form all-states coverage.
b. Employer's Liability coverage for not less than one million dollars ($1,000,000) per occurrence.
E. Special Provisions
The following provisions shall apply to this Agreement:
1. The foregoing requirements as to the types and limits of insurance coverage to b e maintained by the Contractor and any approval of said insurance by the County or its insurance consultant(s) are not intended to and shall not in any manner limit or qualify the liabilities and obligations otherwise assumed by the Contractor pursuant to this Agreement, including but not limited to the provisions concerning indemnification.
2. The County acknowledges that some insurance requirements contained in this Agreement may be fulfilled by self -insurance on the pa rt of the Contractor.
However, this shall not in any way limit liabilities assumed by the Contractor under this Agreement. Any self -insurance shall be approved in writing by the County upon satisfactory evidence of financial capacity. Contractors obligation hereunder may be satisfied in whole or in part by adequately funded self-insurance programs or self-insurance retentions.
EXHIBIT B-2B (revised)
Rev. 9/2023
4 3. Should any of the work under this Agreement be sublet, the Contractor shall require each of its subcontractors of any tier t o carry the aforementioned coverages, or Contractor may insure subcontractors under its own policies.
4. The County reserves the right to withhold payments to the Contractor in the event of material noncompliance with the insurance requirements outlined above.
F. Fidelity Bonds (Required only if contractor will be receiving advanced funds or payments)
Before receiving compensation under this Agreement, Contractor will furnish County with evidence that all officials, employees, and agents handling or h aving access to funds received or disbursed under this Agreement, or authorized to sign or countersign checks, are covered by a BLANKET FIDELITY BOND in an amount of AT LEAST fifteen percent (15%) of the maximum financial obligation of the County cited he rein. If such bond is canceled or reduced, Contractor will notify County immediately, and County may withhold further payment to Contractor until proper coverage has been obtained. Failure to give such notice may be cause for termination of this Agreement, at the option of County.
CITY OF MILPITAS
AGENDA REPORT
(AR)
Item Title: Adopt a Resolution Granting Acceptance of the Street Resurfacing Project 2024 and Project Nos. 4283, 4304, and 4305, Authorizing the City Engineer to File a Notice of Completion and Issue a Notice of Final Acceptance After the One-Year Warranty (Staff Contact: Christian Di Renzo, Public Works Director, 408-586- 2602; and Michael Silveira, City Engineer, 408-586-3303) Category: Consent Calendar-Community Services and Sustainable Infrastructure Meeting Date: 12/3/2024
Recommendation: (1) Adopt a resolution granting acceptance of the Street Resurfacing Project 2024 and Project Nos. 4283, 4304, and 4305; and (2) Authorize the City Engineer to file a Notice of Completion and issue a Notice of Final Acceptance after the one-year warranty.
BACKGROUND:
On April 2, 2024, the City Council awarded a construction contract to McKim Corporation for Project No. 4283, 4304, and 4305, Street Resurfacing Project 2024, (Project) in the amount of $3,328,125.94. The Project included construction to repair localized asphalt concrete pavement and concrete pavement such as sidewalks, driveways, or curb and gutters; resurfacing of asphalt concrete pavement; and installation of Americans with Disabilities Act (ADA) compliant curb ramps, Class II bike lanes, and pavement delineation.
The following streets were approved by the City Council for this Project as part of the Adopted 2024-2028 Capital Improvement Program budget:
▪Great Mall Parkway from I880 to McCandless Drive
▪Thompson Street and Thompson Court
ANALYSIS:
The Project has been successfully completed within budget. Staff recommends the City Council adopt a Resolution (Attachment 1) granting acceptance of the Project and authorize the City Engineer to file a Notice of Completion in accordance with the provisions of Section 9204 of the Civil Code. Staff also recommends the City Council authorize the City Engineer to issue a notice of final acceptance after the one-year warranty period without further City Council action, provided that all warranty work is completed to the satisfaction of the City Engineer.
POLICY ALTERNATIVE(S):
Alternative 1: Deny the adoption of the Resolution granting acceptance of the Project and the filling the Notice of Completion to begin the one-year warranty.
Pros: None.
Cons: A denial would result in the City being unable to accept the completed improvements in accordance with the Contract Documents.
Reason not Recommended: The Contractor has completed the Project in accordance with the approved Contract Documents. A denial to accept the Project could be considered as a breach of contract and risk claim by the Contractor.
FISCAL IMPACT:
There is no fiscal impact as the Project has been completed within the approved budget.
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):
The project is exempt under Section 15301 (Existing Facilities) of the CEQA guidelines. A Notice of Exemption (NOE) was filed with the County of Santa Clara on January 9, 2024.
RECOMMENDATION:
(1) Adopt a resolution granting acceptance of the Street Resurfacing Project 2024 and Project Nos. 4283, 4304, and 4305; and
(2) Authorize the City Engineer to file a Notice of Completion and issue a Notice of Final Acceptance after the one-year warranty.
ATTACHMENT(S):
(a) Resolution
(b) Notice of Completion
RESOLUTION NO. ___________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MILPITAS APPROVING ACCEPTANCE OF STREET RESURFACING 2024, PROJECT NO. 4283, 4304, & 4305 WHEREAS, the City of Milpitas has heretofore entered into a contract with McKim Corporation, for Project No. 4283, 4304, & 4305, Street Resurfacing Project 2024 (Project), in the amount of $3,328,125.94, and the City Engineer of the City of Milpitas has recommended acceptance of said improvements as completed in accordance with plans, specifications and approved change orders and correction lists, and in accordance with the final inspection of said City Engineer.
NOW, THEREFORE, the City Council of the City of Milpitas hereby finds, determines, and resolves as follows:
1. The City Council has considered the full record before it, which may include but is not limited to such things as the staff report, testimony by staff and the public, and other materials and evidence submitted or provided to it. Furthermore, the recitals set forth above are found to be true and correct and are incorporated herein by reference.
2. The City of Milpitas does hereby accept the Project as completed on this 3 rd day of December, 2024, and does hereby authorize and direct the City Engineer of the City of Milpitas to file a Notice of Completion in accordance with the provisions of Section 9204 of the Civil Code of the State of California, and does hereby authorize and direct the City Engineer to file a Certificate of Completion in accordance with the provisions of Section 4005 of the Government Code of the State of California, if said work was by day’s labor or force account.
PASSED AND ADOPTED this ___________ day of ___________ 2024, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST: APPROVED:
____________________________ _________________________
Mary Lavelle, City Clerk Suzanne Guzzetta, City Clerk Carmen Montano, Mayor APPROVED AS TO FORM:
____________________________
Michael Mutalipassi, City Attorney
Recording Requested by and
When Recorded Mail to:
City of Milpitas
455 East Calaveras Boulevard
Milpitas, CA 95035
Attention: City Clerk
Record without fee under
Section 6103 - Government Code
State of California
CITY OF MILPITAS
NOTICE OF COMPLETION
(Civil Code Section 9204)
NOTICE IS HEREBY GIVEN:
1.On or about December 3 rd, 2024, the City Council of the City of Milpitas, a municipal corporation of the State of California, whose address is City Hall, 455 East Calaveras Boulevard, Milpitas, California, 95035 (as owner) entered into a contract for work of: Street Resurfacing Project 2024, Project No. 4283, 4304, & 4305.
2. A description of the site of which the City is co-owner for said work of improvement is: Great Mall Parkway from I880 to McCandless Drive; and entire lengths of Thompson Street and Thompson Court.
3. The name and address of the direct contractor is: McKim Corporation, 8505 Church Street, Unit 1, Gilroy, CA, 95020.
4. A general statement of the kind of work done or materials furnished to the City is as follows:
construction to repair of localized asphalt concrete pavement and concrete pavement such as sidewalk, curb and gutter, and driveway; resurface asphalt concrete pavement; and install of Americans with Disabilities Act (ADA) compliant curb ramps, Class II bike lanes, and pavement delineation.
5. Said work of improvement was accepted by the Milpitas City Council as complete on December 3 rd, 2024.
************************************************************************************* I, the undersigned, declare that I am the City Engineer of the City of Milpitas and am authorized to execute the foregoing Notice of Completion and this Verification thereof. I have read the foregoing Notice of Completion. I declare under penalty of perjury that the foregoing Notice of Completion is true and correct. Executed on _____________________, 2024 at Milpitas, California. _______________________________________
Michael Silveira, City Engineer,
City of Milpitas
_____________________________________________________________________________________ NOTE: RECORD WITHIN 15 DAYS OF ACCEPTANCE WITH COUNTY RECORDER OF SANTA CLARA COUNTY
CITY OF MILPITAS
AGENDA REPORT
(AR)
Item Title: Receive an Update on the Security Improvements at the McCarthy Ranch Sewer Lift Station (Main Lift) and Determine that the Condition Continues to Constitute an Emergency (Staff Contact: Christian Di Renzo, Public Works Director, 408-586-2602)
Category: Consent Calendar-Community Services and Sustainable Infrastructure Meeting Date: 12/3/2024
Recommendation: (1) Receive an update on the security improvements at the McCarthy Ranch Sewer Lift Station; and (2) Determine by a four-fifths vote that the condition continues to constitute an emergency.
BACKGROUND:
Pursuant to Public Contract Code section 22050 and the attached Council Resolution No. 9134, the Director of Public Works, in the case of emergency, may authorize a repair of a public facility and procure the work without giving notice for bids. An emergency is defined as “a sudden, unexpected occurrence that poses a clear and imminent danger, requiring immediate action to prevent or mitigate the loss or impairment of life, health, property, or essential public services.” Additionally, State law requires the Public Works Director, as the City official with delegated authority to take emergency action, to report any emergency authorization and the reason(s) for the authorization to the City Council not later than seven days after the action, or at its next regularly scheduled meeting if that meeting will occur not later than 14 days after the action. Further, the Public Works Director is required to report why the emergency would not permit a delay resulting from a competitive solicitation for bids and the City Council is required to review the emergency action at every regularly scheduled meeting thereafter until the emergency repair is completed. The City Council shall continue to review the emergency action at every regularly scheduled meeting thereafter until the action is terminated. At each review, the City Council shall determine, by a four-fifths vote, whether there is a need to continue the action.
Consistent with applicable State law and Council Resolution, on July 30, 2024, the Public Works Director declared an emergency and authorized the City to contract with Trofholz Technologies and Diamond Fencing to implement various security and access control improvements to the McCarthy Ranch Sewer Lift Station (Main Lift). Further, within the required timeframe the Public Works Director informed the City Council via Information Memorandum on July 31, 2024, regarding the emergency authorization, the reasons for the authorization, and the cost for repair in a not to exceed amount of $700,000.
PROJECT/STATUS UPDATE:
The installation of security enhancements by Trofholz Technologies, Inc. has been completed. The materials, hardware, and network connections necessary to operate security cameras, card readers, and motion sensors at the Main Lift facility are now installed and operational as of November 5, 2024. Staff will conduct a final inspection of the security enhancement features and conclude this portion of the security improvements project at Main Lift Station by November 27, 2024.
Diamond Fence Co., Inc. will demolish and properly dispose of the existing fence, and install approximately 1,760 linear feet of new, code-compliant fencing using ClearVU reinforced panels topped with ribbon wire, integrated into the current gate structure. Materials have been ordered and are anticipated for arrival on November 27, 2024. Fence installation is scheduled to begin in mid-December. The estimated project completion date is now anticipated in late January 2025.
FISCAL IMPACT:
Funding for these repairs is available in the City’s Capital Improvement Program (CIP) budget. CIP Project 6124 – Sewer Pump Station Rehabilitation Project will fund the installation of security cameras, card readers, and motion sensors. The funding source of this CIP project is Sewer Infrastructure Fund. The available balance as of 11/22/2024 is $1,588,577. CIP 6130 – Main Lift Odor Emission Control Project will fund the removal and replacement of the perimeter fencing. The funding source of this CIP Project are Sewer Infrastructure Fund, and Sewer Treatment Fund. The available balance as of 11/22/2024 is $24,012.
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):
The emergency repair work is exempt from CEQA, per CEQA Guidelines Section 15301, Existing Facilities and 15302, Replacement or Reconstruction.
RECOMMENDATION:
1. Receive an update on the security improvements at the McCarthy Ranch Sewer Lift Station.
2. Determine by a four-fifths vote that the condition continues to constitute an emergency.
ATTACHMENT(S):
None.
CITY OF MILPITAS
AGENDA REPORT
(AR)
Item Title: Accept the City of Milpitas Annual Comprehensive Financial Report and Other Related Annual Audited Reports for the Fiscal Year Ended June 30, 2024 (Staff Contact: Luz Cofresí-Howe, Finance Director, 408-586-3111) Category: Leadership and Support Services
Meeting Date: 12/3/2024
Recommendation: Accept the City of Milpitas Annual Comprehensive Financial Report and other related annual audited reports for the fiscal year ended June 30, 2024 BACKGROUND:
Annually, Maze and Associates, the City external auditor, audits the City books and staff prepares the Annual Comprehensive Financial Report (ACFR) for the City of Milpitas. In conjunction with the ACFR for the fiscal year ended June 30, 2024, this staff reports presents, Agreed Upon Procedures Report on Compliance with the Appropriations Limit Increment, Required Communications, and the Memorandum on Internal Control (MOIC) to the City Council for review.
ANALYSIS:
The ACFR presents the operations and financial activity of all the City’s various funds, including the General Fund. The ACFR includes an unqualified (“clean”) audit opinion from Maze & Associates meaning the financial statements fairly present the results of City operations for the fiscal year ended June 30, 2024, in conformance with Generally Accepted Accounting Principles (GAAP). The completion of the ACFR has met the debt reporting obligation requirement. The City also achieved the Government Finance Officer Association (GFOA) Certificate of Achievement for Excellence in Financial Reporting Award for its ACFR for the fiscal year ended June 30, 2023. The City has won this GFOA award for 35 years, and already has applied for the award for the fiscal year ended June 30, 2024.
Highlights and items to note from the ACFR for the fiscal year ended June 30, 2024 are detailed below:
•During Fiscal Year 2024, City revenues continued recovering gradually since the onset of the COVID- 19 Pandemic (Pandemic) over four years ago. The unemployment rate in the San José-Sunnyvale- Santa Clara metropolitan area rose to 4.2%, up slightly from 3.7% in Fiscal Year 2023. General Fund revenues increased compared to the previous year, particularly in property tax, sales tax, investment income, and intergovernmental revenues. These gains were largely driven by investment income and property tax related to the Educational Revenue Augmentation Funds (ERAF), which are subject to audit and litigation. Conversely, revenues from licenses, permits, and fines have continued to decline in Fiscal Year 2024 compared to Fiscal Year 2023.
•The rise in property taxes can be attributed to ongoing increases in secured and supplemental property tax, driven by higher property valuations. As travel has resumed following the Pandemic, hotel and motel tax revenues have shown signs of recovery, though they have not yet reached pre- pandemic levels.
•The economic impact of the COVID-19 pandemic remains uncertain and is influenced by factors such as the ongoing war in Ukraine, escalating conflict in the Middle East, a challenging real estate market, political uncertainty after the recent national elections, increasing income inequality, and continued layoffs in the tech sector. The pandemic's lasting effects on society continue to be felt, including reduced in-person commerce, a rise in online shopping, the normalization of remote work, and fewer conferences and leisure services. Although there are encouraging signs in the recovery of sales tax
and transient occupancy (hotel) tax, we contemplate full recovery of these two sources of tax revenue may take several years.
Analysis of financial highlights for City-wide and Fund Level statement City-wide:
•The City total net position was $685.2 million as of June 30, 2024. Of this total, $439 million was Governmental and $246.2 million was business-type, a net increase totaling $21.9 million from the prior year total of $663.3 million primarily due to an increase in cash and investments of $24 million. •City-wide revenues include program revenues of $113 million, general revenues and transfers of $114.8 million, totaling $227.7 million, an increase of $16.6 million from the prior year total of $211.1 million, primarily due to an increase in operating and capital grants, contributions, and general revenues. •Total City-wide expenses were $205.9 million, an increase of $11.3 million from the prior year’s $194.6 million, primarily due to increases in governmental expenditures related to public safety and public works personnel costs and adjustments.
Fund Level:
•Governmental Fund balances were $264.4 million, a net increase of $18.4 million from Fiscal Year 2022- 23, primarily due to revenues exceeding expenditures by $12.2 million in the General Fund and $5 million in the Transit Area Impact Fee fund.
•Governmental Fund revenues were $159 million in FY 2023-24, up $10.4 million from the prior year’s $148.6 million, primarily due to the recognition of American Rescue Plan Act (ARPA) deferred revenue and a positive return in Use of Money and Property.
•Governmental Fund expenditures were $145.7 million compared to $144.3 million in Fiscal Year 2022-23 primarily due to an increase in General Fund expenditures, aligned with budget projections. •General Fund revenues of $134.1 million represented an increase of $7.8 million from Fiscal Year 2022- 23 revenues of $126.3 million caused primarily by recognition of ARPA deferred revenue and positive return in Use of Money and Property.
•Net other financing uses of the General Fund were $(0.4) million in FY 2023-24 while FY 2022-23 had a total of other financing uses of $(2.1) million. The variance was primarily due to use of reserves to fund General Government CIP projects. The General Fund balance of $85.3 million at fiscal year 2024 was $11.8 million more than the fund balance at fiscal year 2023.
Memorandum on Internal Control (MOIC). Under generally accepted auditing standards, the City auditors are encouraged to report certain matters regarding the City’s internal control structure. The City auditors have provided such a report in their Memorandum on Internal Control for the year ended June 30, 2024.
In Fiscal Year ended June 30, 2024, the City auditor did not identify any material weakness and significant deficiency items during the audit. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is reasonable possibility that a material misstatement of the City’s financial statements will not be prevented or detected and correct on a timely basis.
The City auditor disclosed an item under Schedule of Other Matters pertaining to timeliness of journal entries.
Staff will enhance its journal entry tracking system and set up new workflows in Tyler Enterprise Resource Planning (ERP) system in the next fiscal year to prevent this issue from happening in the future.
Required Communications Report. Our auditors are required to communicate information related to the audit and financial statements under generally accepted auditing standards and Government Auditing Standards.
The City auditors have provided such a report in their Required Communications for the year ended June 30, 2024. Please note the following from the Required Communications Report:
1) The City auditors noted no transactions effected by the City during the year for which there was a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period.
2) The City auditors encountered no significant difficulties in dealing with management in performing and completing their audit.
3) The City auditors discovered no material misstatements, either individually or in their aggregate, to each opinion unit’s financial statements taken as a whole.
4) The City auditors encountered no disagreements with management during their audit.
Agreed Upon Procedures Report on Compliance with the Appropriations Limit Increment - This report shows the City auditor applied specific procedures to validate the City Appropriations Limit (Gann Limit) calculations. The appropriations limitation imposed by Propositions 4 (1979) and later amended by Proposition 111 (1990) creates a restriction on the amount of government revenue which may be appropriated in any fiscal year. The Appropriations Limit is based on actual appropriations during the base year (1986-87 or the first full year of operation) and increases each year using specified growth factors. The Appropriations Limit applies only to those revenues defined as “proceeds of taxes.” Certain expenditures of tax proceeds do not count as Appropriations Subject to Limit including those for voter-approved debt, qualified capital outlay, and the costs of complying with court orders and federal mandates. Staff prepares an updated Appropriations Limit in May of each year and presents to Council for review and approval during the budget preparation process.
POLICY ALTERNATIVE(S):
Alternative 1: Do not accept the ACFR report.
Pros: None.
Cons: Not accepting this ACFR report may pose challenges as this report as required per City bond indentures and otherwise in the course of administering City finances.
Reason not recommended: Staff is presenting the Annual Comprehensive Financial Report to promote transparency and accountability in the City financial management practices, ensuring the public and City stakeholders can scrutinize how taxpayer money is used. The Annual Comprehensive Financial Report also helps assess the City’s financial health, supports compliance with regulations and bond indentures, and enhances creditworthiness for potential borrowing.
FISCAL IMPACT:
There is no fiscal impact from this report.
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):
This item is not a Project under CEQA exempt under CEQA Guideline 15378(b)(4) as it is a government fiscal activity that does not involve a commitment to any specific project which may result in a potentially significant physical impact on the environment.
RECOMMENDATION:
Accept the City of Milpitas Annual Comprehensive Financial Report and other related annual audited reports for the fiscal year ended June 30, 2024.
ATTACHMENT(S):
(a) Annual Comprehensive Financial Report for FY 2023-24 (b) Memorandum on Internal Control for FY 2023-24
(c) Required Communications for FY 2023-24
(d)Agreed Upon Procedures Report on Compliance with the Appropriations Limit Increment FY 2023-24
2023-2024
City of Milpitas • California
ANNUAL
COMPREHENSIVE
FINANCIAL
REPORT
FOR FISCAL YEAR
ENDED JUNE 30, 2024
CITY OF MILPITAS, CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2024
Prepared by
THE CITY OF MILPITAS
INTRODUCTORY SECTION
CITY OF MILPITAS
Annual Comprehensive Financial Report
for the Year Ended June 30, 2024
Page
INTRODUCTORY SECTION:
Table of Contents ...................................................................................................................................................... i Letter of Transmittal ................................................................................................................................................. v Directory of City Officials ..................................................................................................................................... xii Map of City’s Location ......................................................................................................................................... xiii Organization Chart ................................................................................................................................................ xiv GFOA Certificate of Achievement ........................................................................................................................ xv FINANCIAL SECTION:
Independent Auditor’s Report ................................................................................................................................. 1 Management’s Discussion and Analysis ................................................................................................................ 5 Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Position ..................................................................................................................... 25 Statement of Activities .......................................................................................................................... 26 Fund Financial Statements:
Governmental Funds:
Balanc e Sheet .................................................................................................................................... 32 Statement of Revenues, Expenditures, and Changes in Fund Balances ........................................... 34 Reconciliation of the Net Change in Fund Balances – Total Governmental Funds with th e Statement of Activities ................................................................................... 36 Statements of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual ( N o n - G A A P L e g a l B a s i s ) :
General Fund ............................................................................................................................. 37 Hous ing Authority ..................................................................................................................... 38 i
CITY OF MILPITAS
Annual Comprehensive Financial Report
for the Year Ended June 30, 2024
Page
FINANCIAL SECTION: (Continued)
Proprietary Funds:
Statement of Net Position ................................................................................................................. 41 Statement of Revenue, Expenses and Changes in Fund Net Position .............................................. 42 Statement of Cash Flows .................................................................................................................. 43 Fiduciary Funds:
Statement of Fiduciary Net Position ................................................................................................. 47 Statement of Changes in Fiduciary Net Position .............................................................................. 48 Notes to Basic Financial Statements ............................................................................................................ 51 Required Supplementary Information:
Retiree Medical Benefits (OPEB) Plan - Schedule of Changes in the Net OPEB Liability and Relate d Ratios ................................................................................................................................. 121 Retiree Medical Benefits (OPEB) Plan - Schedule of Contributions ........................................................ 122 Schedule of Changes in the Total OPEB Liability and Related Ratios – (Dependent Fund) (OPEB) Plan .......................................................................................................... 123 Schedule of Contributions (Dependent Fund) (OPEB) Plan ..................................................................... 124 Schedule of Changes in the Net Pension Liability and Related Ratios (Miscellaneous Plan) .................. 126 Schedule of Contributions (Miscellaneous Plan) ...................................................................................... 128 Schedule of Changes in the Net Pension Liability and Related Ratios (Safety Plan) ............................... 130 Schedule of Contributions (Safety Plan) ................................................................................................... 132 Supplemental Information:
Non-major Governmental Funds:
Combining Ba lance Sheets .................................................................................................................. 138 Combining Statements of Revenues, Expenditures and Changes in Fund Balanc es ........................................................................................................................... 140 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual (Non-GAAP Legal Basis) .................................................... 142 ii
CITY OF MILPITAS
Annual Comprehensive Financial Report
for the Year Ended June 30, 2024
Page
FINANCIAL SECTION: (Continued)
Internal Service Funds:
Combining Statements of Net Position ................................................................................................ 151 Combining Statements of Revenues, Expenditures and Changes
in Fund Net Position ..................................................................................................................... 152 Combining Statemen ts of Cash Flows ................................................................................................. 153 STATISTICAL SECTION:
Net Position – Last Ten Fiscal Years ................................................................................................... 157 Changes in Net Position – Last Ten Fiscal Years ................................................................................ 158 Fund Balances, Governmental Funds – Last Ten Fiscal Years ........................................................... 163 Changes in Fund Balances, Governmental Funds – Last Ten Fiscal Years ........................................ 164 Assessed Value and Actual Value of Taxable Property – Last Ten Fiscal Years ............................... 166 Direct and Overlapping Property Tax Rates – Last Ten Fiscal Years ................................................. 167 Principal Property Taxpayers – Fiscal Years 2023-2024 and 2014-2015 ........................................... 168 Property Tax Levies and Collections – Last Ten Fiscal Years ............................................................ 169 Taxable Sales by Category – Last Ten Calendar Years ....................................................................... 170 Direct and Overlapping Sales Tax Rates – Last Ten Fiscal Years ...................................................... 171 Principal Sales Taxpayers – Fiscal Years 2023-2024 and 2014-2015 ................................................ 172 Ratios of Outstanding Debt by Type – Last Ten Fiscal Years ............................................................ 173 Bonded Debt Pledged Revenue Coverage Redevelopment Agency Tax Allocation Bonds – Last Ten Fiscal Years .............................................................................. 174 Computation of Direct and Overlapping Debt ..................................................................................... 175 Legal Debt Margin Information – Last Ten Fiscal Years .................................................................... 176 Installment Payment Coverage, Sewer Certificates of Participation and Wastewater Revenue Refunding Bonds – Last Ten Fiscal Years .................................................. 177 Installment Payment Coverage,
Water Revenue Funds – Last Ten Fiscal Years .............................................................................. 178 iii
CITY OF MILPITAS
Annual Comprehensive Financial Report
for the Year Ended June 30, 2024
Page
STATISTICAL SECTION: (Continued)
Bimonthly Sewer Rates by Customer Class – Last Ten Fiscal Years ................................................. 179 Bimonthly Water Rates by Customer Class – Last Ten Fiscal Ye ars ................................................. 180 Demographic and Economic Statistics – Last Ten Calendar Years .................................................... 181 Principal Employers – Fiscal Year 2023-2024 and 2014-2015 ........................................................... 182 Authorized Full-Time Equivalent Employees by Function/Program – Last Ten Fiscal Years ..................................................................................................................... 183 Operating Indicators by Function/Program – Last Ten Fiscal Years .................................................. 184 Capital Asset Statistics by Function/Program – Last Ten Fiscal Years .............................................. 186 OTHER AUDIT REPORT:
Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ...................................................... 191 iv
i
November 15, 2024
Honorable Mayor, Members of the City Council, and Residents of the City of Milpitas:
Submit
ted herewith is the Annual Comprehensive Financial Report (ACFR) of the City of Milpitas (City) for the fiscal year ended June 30, 2024, as prepared by the City Finance Department with support from other City departments. This report is consistent with generally accepted accounting principles. Responsibility for both the accuracy of the presented data and the completeness and fairness of the presentation, including all disclosures, rests with the City. The data, as presented, is accurate in all material aspects, and is presented in a manner designed to fairly set forth the financial position and results of operations of the City as measured by the financial activity of its various funds. All disclosures necessary to enable the reader to gain the maximum understanding of the City's financial affairs have been included. The organization of the financial report follows the guidelines set forth by the Government Finance Officers' Association of the United States and Canada.
The Reporting Entity and its Services
This report combines the financial statements of the City, the Milpitas Public Financing Authority (MPFA), Milpitas Housing Authority (Housing Authority), the Milpitas Municipal Financing Authority (MMFA) and the Terrace Gardens Inc. (Terrace Gardens) to constitute a single reporting entity. The MPFA, Housing Authority, MMFA and Terrace Gardens are individual legal entities separate from the City and controlled by the City. The MPFA, Housing Authority, and MMFA have the same governing board as the City, and the City also has control of the Terrace Gardens’ governing board. However, Terrace Gardens issues its own component unit financial statements. The purpose and authority of the MPFA, Housing Authority, the MMFA and Terrace Gardens are described in Note 1 of this ACFR.
Milpitas is a general law city of the State of California. The City was incorporated in 1954 and operates under a Council-Manager form of government. The City's political and legislative body is the City Council and is empowered by the general laws of the State of California to formulate citywide policy, including a fiscal program, City services, and appointment of the City Manager and City Attorney. There are four City Council members who are elected at -large for staggered four-year terms, and the Mayor is selected every two years in a separate citywide election.
The City provides a full range of municipal services to the community through its departments such as Planning, Fire, Police, Public Works, and Recreation and Community Services. These departments are supported by internal service departments which include the City Manager’s Office, City Attorney’s office, Finance, Human Resources, and Information Technology. Additionally, the Offices of the City Clerk, Economic Development and Strategic Initiatives, Building Safety, and Housing all reside within the City Manager’s Office.
Community members desiring to assist the City Council in forming government policy may do so by serving on a City commission or committee (commissions). The commissions act in an advisory capacity to the City Council. These include the Arts Commission; Community Housing Commission; Economic Development and Trade Commission; Energy and Environmental Sustainability Commission; Library and
C I T Y O F M I L P I T A S
455 EAST CALAVERAS BOULEVARD, MILPITAS, CALIFORNIA 95035- 5479 PHONE: 408- 586- 3000, WWW .MILPITAS .GOV
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Education Advisory Commission; Parks, Recreation, and Cultural Resources Commission; Planning Commission; Public Safety and Emergency Preparedness Commission; Science, Technology, and Innovation Commission; Senior Advisory Commission; Veterans Commission; Youth Advisory Commission, and Measure F Oversight Committee.
Economic Condition, Outlook and Activity
Milpitas is situated within the Silicon Valley region, known throughout the world as the home of high technology, innovation, and research. Milpitas is considered the “Crossroads of Silicon Valley,” with most of its 13.6 square miles of land situated between two major freeways, I -680 and I -880. Milpitas has experienced tremendous growth since its incorporation in 1954. Over the past 70 years, population has increased from 26,561 in 1970 to nearly 81,773 ba sed on the latest Department of Finance data in 2024 .
The economy has experienced a slightly higher unemployment rate in August 2024, with State of California unemployment at 5.3% and national unemployment rate at 4.1% compared to 4.6% and 3.8% in the prior fiscal year, respectively. At the City level, the unemployment rate slightly increased by 0.4% compared to prior year’s 4.3% to 4.8% in August. The California Employment Development Department (EDD) reported that between August 2023 and August 2024 for San José-Sunnyvale- Santa Clara metropolitan statistical area, employment rose by 7,300 jobs.
As the City continued to recover from the financial impacts of the worldwide COVID-19 pandemic, we remain optimistic about the future but watchful of near -term economic uncertainty arising from the continued war in Ukraine, ongoing conflict in the Middle East and other arenas, high interest rates, high to moderate inflation, growing income disparity, the high cost of housing, and political uncertainty at the national level. With the national inflation rate steadily declining, reaching 2.4% in September 2024, the Federal Reserve responded with a significant interest rate cut of 50 basis points. Layoffs in the technology sector, particularly in Silicon Valley, are noteworthy as com panies increasingly shift their investments toward artificial intelligence research and development instead of personnel costs. Additionally, the pandemic's lasting effects on society continue to be felt, including reduced in- person commerce, a rise in online shopping, the normalization of remote work, and fewer conferences and leisure services. Although there are encouraging signs in the recovery of sales tax and transient occupancy tax, we acknowledge that fully recovering hotel tax revenue may take several years.
The national GDP (Gross Domestic Product, the value of goods and services less the value of the goods and services used up in production, the most popular indicator of the nation’s overall economic health) increased at an annual rate of 3.0 percent in the second quarter of 2024 from the previous quarter (according to the Bureau of Economic Analysis (BEA) advance estimate. As of September 2024, the Federal Reserve Board projected change in median GDP growth is positive 2.0 percent for 2025 and positive 2.0 percent for 2026.
The CPI (Consumer Price Index) is used by the U.S. Bureau of Labor Statistics to measure inflation. The September 2024 CPI-U (Consumer Price index for all Urban Consumers) increased 2.4 percent over the last 12 months. Core CPI (CPI less food and energy) is 3.3 percent compared to 4.1 percent in September 2023. Core CPI represents a more accurate picture of underlying inflation trends since volatile food and energy products are excluded. When compared to San Francisco area, the August 2024 CPI-U increased
2.7 percent over the last 12 months and the Core CPI increased 2.9 percent. While the global economic activity remains uncertain, the U.S. Bureau of Labor Statistics Employment Projections for 2023-2024 shows a projected growth from 167.6 million to 174.6 million over the 2023-33 decade.
Although median home prices have risen year over year, the slowdown in development activity and the downturn in the commercial real estate market are troubling trends that could soon affect residential valuations negatively. Single family residential construction starts decreased 0.5% year -over-year while multi-family construction (5 units or more) starts decreased 16.8% year -over-year. The median sale price of a single-family residential home in Milpitas was $1.7 million as of August 2024, up approximately 2.7 percent from last year. Year-over-year price increases have ramped up in Santa Clara County. Santa Clara
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Consumer Confidence
120
115
110
105
100
95 90
85 80
County had an 11.2 percent increase in median sale price compared to 8.3 percent increase last year. The section below entitled “Major Development Activities in the City” will discuss some of the development activities occurring in Milpitas.
Consumer Confidence Level
Consumer confidence is an indicator designed to measure the degree of optimism that consumers feel about the overall state of the economy and their personal financial situation. The Conference Board Consumer Confidence Index decreased to 98.7 in September 2024 from 103.3 in August 2024. Since consumer spending accounts for more than two- thirds of the U.S. Gross Domestic Product, this index is a good indicator that when consumers’ confidence is high, consumers would likely make more purchases, thus further boosting the economy. Employment drives consumer spending, which in turn affects the economy.
Nonfarm payroll employment increased by 254,000 in September 2024, and the national unemp loyment rate decreased slightly to 4.1 percent compared to August 2024.
Source: The Conference Board
Index
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Top Eight Sales Tax Generators by Economic Segment
Financial markets continue to remain volatile and inflationary trends in the economy remain high.
According to Urban- Brookings Tax Policy Center, total state tax revenue collections rose 3.0 percent in nominal terms and 0.6 percent in real terms in the first quarter of 2024, compared to the year prior. The chart below provides a snapshot of the City sales tax revenue by major industry groups. Total amount of sales tax revenue for the major industry groups generated about $35.8 million. Total sales tax receipts decreased by 6.9 percent from 2023 due to decreases in business and industry and building and construction sectors. By and large, the sales tax revenue generated from major industry groups such as Fuel and Service Stations, Restaurants and Hotels, General Consumer Goods, Business and Industry, Food and Drugs, and Autos and Transportation did not change significantly compared to the composition over a year ago.
City Sales Tax Revenue ($35.8 Million)
Major Industry Groups
Source: HDL FY2024 Major Business Categories
Major Development Activities in the City
General Plan Update – Considered the blueprint for future development, the City General Plan (Plan) defines a long-term vision for future growth, traffic circulation, economic development, health, housing and resource conservation. The Milpitas 2040 General Plan was unanimously adopted by the City Council on March 9, 2021, and this policy document will guide City decision-making and priorities over the next 20 years. The Plan identifies opportunity sites where changes to land use and development patterns are likely to occur, and prioritizes housing and economic growth in areas served by high-quality transit. The Plan also includes policies aimed at preserving the character of existing neighborhoods and protecting the City’s hillsides and other natural resources. The City continues to implement General Plan policies and actions, which are summarized in annual progress reports to the California Department of Housing and Community
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Development.
Milpitas Metro Specific Plan – The City adopted the Milpitas Metro Specific Plan (and the associated Environmental Impact Report) in February 2023 with updated policies and programs to further enhance existing neighborhoods and provide new opportunities for future housing, retail, office, and hotel uses in the planning area. The new Metro Plan envisions a network of landscaped open space, parks, and trails that connect housing and jobs to high-quality transit and provide opportunities for active and passive recreation as well as social interaction. The new Plan also envisions development of an employment -oriented Innovation District near the Milpitas Transit Center to foster economic development based on the City’s excellent access to regional bus, light rail, and BART connections. The Office of Economic Development is currently partnering with a local public relations firm on the Innovation District Branding Initiative. The City is currently updating the Transit Area Development Impact Fee to fund the new public improvements identified in the new Plan.
Residential Development – The City continues to leverage public and private resources to support planning and development of new affordable housing. The City is recognized for its award-winning online resources and interactive tools that help residents navigate the development review process and find ADU designs that fit their property and needs. The City won an American Planning Association award at the regional and state levels in 2022 for Best Practices. For more information, visit www.milpitas.gov/adu/. The City also continues to host the popular Accessory Dwelling Units (ADU) “ADU Mondays” program, which brings staff from various departments together to provide direct assistance to residents who wish to pursue an ADU on their property. City staff has presented information about these programs in regional and statewide forums.
In FY 2023- 24, the P
lanning Commission approved permits for several new housing development, including a 206-unit multifamily residential project at 1355 California Circle, a 43 -unit (15% affordable) multi-family townhome development with 13 attached ADUs at 1905 Tarob Court, and a 118 below-market rate apartment units at 1300 S. Main Street. The City is continuing to utilize $300,000 in state grant funding to develop a Housing Opportunity Overlay Zone aimed at streamlining the review process for affordable housing and create new by -right housing regulations. In addition, the City received a $500,000 Priority Development Area (PDA) grant from Association of Bay Area Governments (ABAG) to help fund preparation of the Gateway/Main Street Specific Plan. The Cit y also received $142,700 from ABAG’s Regional Early Action Planning (REAP) grant program to help fund the preparation of the 2023- 2031 Housing Element. Most recently, the City received an additional $600,000 in funding through ABAG’s PDA grant program to prepare the Main Street Sense of Place Plan and Innovation District Parks and Trails Master Plan.
Non-residential Development – FY2023- 24 was another busy year for commercial redevelopment and expansion. The Planning Commission approved a 6,245-square foot commercial pad building with a drive- thru at 125 N. Milpitas Blvd. and a time extension to develop a hotel at 1851 McCarthy Blvd. In addition, conditional use permits have been granted for a gas station remodel with alcohol sales at 27 S. Park Victoria Dr., alcohol sales within an existing supermarket at 777 E. Capitol Ave., a claw machines facility and an escape room in the Great Mall, a tobacco shop at 1125 Jacklin Rd., and a contractor’s yard at 897 Ames Ave. Furthermore, the City Zoning Administrator approved several commercial and industrial building remodels and a new massage establishment. Lastly, the Milpitas City Council approved a new private high school with an office building and gym at 1323 Great Mall Dr. The project is providing $1,000,0000 in community benefit funds as part of the approved development agreement.
Accounting System and Budgetary Control
In developing and evaluating the City's accounting system, consideration is given to the adequacy of internal accounting controls. Internal accounting controls are designed to provide reasonable, but not absolute, assurances regarding (1) the safeguarding of assets against loss from unauthorized use or
vi
disposition; and (2) the reliability of financial records for preparing financial statements and maintaining accountability for assets. The concept of reasonable assurance recognizes that (1) the cost of a control should not exceed the benefits likely to b e derived; and (2) the evaluation of costs and benefits requires estimates and judgments by management.
All internal control evaluations occur within the above framework. The Finance Department staff remains committed to improving the City accounting system , to maintain the City internal accounting controls to adequately safeguard assets, and to provide reasonable assurances of proper recording of financial transactions. Budgetary control is directed by the City Council by resolution when the budget is adopted each year. Expenditures may not legally exceed appropriations at the department level by fund. The C ity utilizes the encumbrance system as a management control technique to assist in controlling expenditures.
The City Manager has limited budget appropriation authority to transfer appropriations among departments and projects within any one fund, provided that the amount of the amended appropriation is $100,000 or less. Quarterly reports of revenue and expense are prepared and distributed to the City Council and City departments to monitor spending in relation to the adopted budget. At fiscal year-end, open encumbrances are reported under the “Assigned” fund balance classification. The City accounting records are organized and operated on a "fund" basis, which is the basic fiscal and accounting entity in governmental accounting.
Each fund is classified by category and fund type:
Category and Fund Type
Governmental Funds: General Fund, Special Revenue Funds, Debt Service Funds, and Capital Projects Funds
Proprietary Funds: Enterprise Funds and Internal Service Fund Fiduciary Funds: Private-Purpose Trust Fund and Agency Funds Governmental Funds: The basic financial statements necessary to fairly present the financial position and operating results from major governmental funds are the balance sheet, and the statement of revenues, expenditures and changes in fund balance. These funds are maintained using the modified accrual basis of accounting, which is more thoroughly explained in the Notes to the Financial Statements.
Proprietary Funds: Generally accepted accounting principles applicable to private commercial business are applicable to proprietary funds of a government agency. The basic financial statements required to present the financial position and operating results from major proprietary funds are the statement of net position, statement of revenues, expenses, and changes in fund net position, and the statement of cash flows. The accrual basis of accounting is utilized as explained in the Notes to the Financial Statements.
Fiduciary Funds: Fiduciary funds are used to account for assets held by a government agency acting as a trustee or agent for individuals, assessment districts, organizations, other governmental units or other funds of the same entity. These funds are also identified in this report as a Private- Purpose Trust Fund and Custodial Funds. The full accrual basis of accounting is used as explained in the Notes to the Financial Statements.
Financial Analysis
Generally Accepted Accounting Principles (GAAP) require management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it.
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Long Term Financial Planning
Each year, the City adopts a balanced budget by June 30. The City has fiscal policies that include the use of one-time revenues for one-time expenditures only, including capital outlay and reserves. The City also has adopted reserve policies that requires unassigned fund balance which is made up of the Contingency Reserve to be at least 16.67% of the annual operating expenditures , and the Budget Stabilization Reserve with a reserve target of 16.67% of the annual operating expenditures in the General Fund. Additi onal reserves are included in Note 12.
The City developed a five-year Capital Improvement Plan detailing specific budgeted capital projects. Each of the projects is consistent with the budget priorities of the City. The fiscal year 2023-24 Adopted Capital Improvement Program (CIP) Budget totaled $32.1 million. The CIP included improvements to City infrastructure which includes community improvements, parks, streets, water, sewer and storm drain utilities.
In addition, the City produces an annual ten-year General Fund Forecast. The General Fund Forecast allows the City Council and the community to assess the financial sustainability of City services in the long term.
The projection also identifies the type of commitments and resource demands in the next ten years as known and points out areas of both opportunity and risk as the City navigates through fiscal cycles. This long-term forecast provides an invaluable planning tool and is an indication of sound fiscal planning and strategy.
Independent Audit
Each year the City requires an independent annual audit of the City's financial records, the results of its operations, and cash flows. This report includes the opinion of the City's independent auditors, Maze & Associates, for the basic financial statements of the City. In addition, the report also contains the auditors' report on Internal Control over Financial Reporting and on compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards.
Awards
The Government Finance Officers' Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City for its Annual Comprehensive Financial Report for the fiscal year ended June 30, 2023. The Certificate of Achievement is the highest form of recognition for excellence in state and local government financial reporting. The City has received this award for the last twenty-seven years.
Acknowledgments
We extend our appreciation to the entire staff of the Finance Department and other City departments who assisted in the process of compiling the information for this report. In addition, we extend a special "thank you" to our external auditors who contributed to make this document possible. Their efforts and continued dedication are greatly appreciated. We sincerely thank the Mayor and members of the City Council for their support, interest, and integrity in directing the financial affairs of the City in a responsible and prudent manner.
Respectfully submitted,
Ned Thomas Luz Cofresí-Howe
City Manager Finance Director
DIRECTORY OF OFFICIALS
June 30, 2024
City Council
Mayor Carmen Montano
Vice-Mayor Evelyn Chua
Councilmember Anthony Phan
Councilmember Hon Lien
Councilmember Garry Barbadillo
City Manager
Ned Thomas
Assistant City Manager
Matt Cano
City Attorney
Michael Mutalipassi
City Clerk
Suzanne Guzzetta
Public Information Officer
Charmaine Angelo
Building Official
Bill Tott
Housing Official
Robert Musallam
Finance Director
Luz Cofresí-Howe
Human Resources Director
Kelli Parmley
Economic Development &
Strategic Initiatives Director
Alex Andrade
Recreation & Community
Services Director
Renee Lorentzen
Fire Chief
Jason Schoonover
Police Chief
Jared Hernandez
Public Works Director
Christian Di Renzo
Information Technology Director
Daniel Nam
Planning Director
Jay Lee
xii
The City of Milpitas is located near the southern tip of San Francisco Bay, forty-five miles south of San Francisco. Milpitas is often called the “Crossroads of Silicon Valley” with most of its 13.6 square miles of land situated between two major freeways (I-880 and I-680), State Route 237, and a county expressway. The light rail line opened for service in 2004 and an extension of BART, with a major multi-modal is now fully functional. xiii
Mayor & City Council
City Attorney
Michael Mutalipassi
City Manager
Ned Thomas
Leadership and
Strategic Support
Community
Development*
City Clerk
Suzanne Guzzetta
Milpitas Community
Community Services
and Sustainable
Infrastructure
Public Safety
Assistant City
Manager
Matt Cano
Human Resources
Director
Kelli Parmley
Information
Technology Director
Daniel Nam
Economic
Development Director
Alex Andrade
Planning Director
Jay Lee
Building Official
Bill Tott
Public Works Director
Christian Di Renzo
Recreation &
Community Services
Director
Renee Lorentzen
Fire Chief
Jason Schoonover
Police Chief
Jared Hernandez
●Arts
●Community Advisory
●Economic Development
and Trade
●Public Safety and
Emergency Preparedness
●Library and Education
Advisory
●Parks, Recreation, and
Cultural Resources
●Planning
●Energy and
Environmental
Sustainability
●Senior Advisory
●Science, Technology
and Innovation
●Veterans
●Youth Advisory
●Measure F Oversight
Committee
City Commissions
Assistant City Attorney
Christopher Creech
Public Information
Officer
Charmaine Angel
Senior Executive
Assistant
Rachelle Currie
Legal Assistant
Benjamin Silowitz
*Fire Prevention and Land Development are part of Community Development Finance Director
Luz Cofresi-Howe
xiv
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City
of Milpitas
California
For its Annual
Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2023
Executive Director/CEO
xv
FINANCIAL SECTION
INDEPENDENT AUDITOR’S REPORT
To the Honorable Members of the City Council
City of Milpitas, California
Report on the Audit of the Financial Statements
Opinions
We h
ave audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Milpitas (City), California, as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the Table of Contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City as of June 30, 2024, and the respective changes in financial position and, where applicable, cash flows thereof and the respective budgetary comparisons listed in the Table of Contents as part of the basic financial statements for the year then ended in accordance with accounting principles generally accepted in the United States of America.
We did not audit the financial statements of the discretely presented component unit fina ncial statements of Terrace Gardens, Inc. as of and for the year ended December 31, 2023, which represent 1.00%, 1.47%, and 1.08% of the assets, net position, and revenues, respectively, of the primary government. The financial statements of the Terrace Gardens, Inc. were audited by other auditors whose report has been furnished to us, and our opinion, insofar as it relates to the amounts included for the City, is based solely on the report of the other auditors.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirement relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of the financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is requi red to evaluate whether there are conditions or events, considered in the aggregate, that rais e substantial doubt about th e City’s ability to continue as a going concern for twelve months beyond the financial statement date, in cluding any currently known in formation that may raise substantial doubt shortly thereafter.
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Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions.
Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with ge nerally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered mate rial if there is substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures resp onsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingl y, no such opinion is expressed. • Evaluate the appropriateness of acco unting policies used and the reason ableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • Conclude whether, in our judgment, there are conditions or events, consid ered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis and other required supplementary information as listed in the Table of Contents be presented to supplement the basic financial statements. Such in formation is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic or historical context. We have applie d certain limited procedures to the re quired supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the informat ion and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with su fficient evidence to express an opinion or provide any
assurance.
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