CITY OF MILPITAS
AGENDA REPORT
(AR)
Item Title: Receive Progress Report on the Work Completed and Community Feedback from Ascent Environmental and Staff on the Milpitas Gateway-Main Street Specific Pla n, Provide Direction on Land Use, Mobility, and Public Realm Strategies and Alternatives, and Receive a Presentation on Ongoing Main Street Revitalization Efforts (Staff Contact: Ned Thomas, Planning Director, 408 -586-3273; Alex Andrade, Economic Development Director, 408 -586-3046; and Jay Lee, Principal Planner, 408 - 586-3077)
Category: Community Development
Meeting Date: 4/25/2023
Recommendation:
1. Receive progress report on the work completed and summary of community feedback from Ascent Environmental and staff on the Milpitas Gateway -Main Street Specific Plan and provide direction on land use, mobility, and public realm strategies and alternatives.
2. Receive a presentation on ongoing Main Street revitalization efforts and provide direction on the Storefront Improvement Grant Program, Business Improvement District, and business attraction.
Background:
The Milpitas Midtown Specific Plan was originally adopted by City Council in 2002 to maximize land use, transportation, and economic opportunities along the City’s historic Main Street and to energize and catalyze mixed-use, transit-oriented development in the Midtown area, also known as the “h eart” of Milpitas. As part of the update process, the Midtown Specific Plan will be renamed the “Milpitas Gateway -Main Street Specific Plan” and will provide a new vision and strategic policy framework to guide redevelopment and reinvestment in three focus areas and transform this important gateway into an attractive and vibrant destination for the City and the region.
In preparation for the update process, City staff partnered with local nonprofit Catalyze SV to facilitate a series of three community conversations from June to April 2021 to discuss the revitalization of Main Street with Milpitas’ stakeholders.
On September 21, 2021, City Council authorized the City Manager to execute a master funding agreement with the Metropolitan Transportation Commission to receive $500,000 in grant funding through the P riority Development Area Planning Grant Program and a professional services agreement with Ascent Environmental for consultant services to prepare the Gateway/Main Street Specific Plan.
The work completed thus far is summarized below.
1. Kick-Off Meeting and Site Tour : The project team held a virtual kick -off meeting on October 26, 2021 to initiate the project and discuss the City’s goals and objectives, team roles and responsibilities, project area context and efforts under way, and Plan and focus area boundaries .
2. Material Review and Preliminary Mapping : The consultant reviewed relevant existing and in - progress studies and created a series of maps that depict the local context.
3. Existing Conditions Assessment: The consultant assessed the physical context of the Plan area with a focus on identifying preliminary opportunities and constraints related to land use and development.
Completed deliverables include the Land Use, Zoning and Urban Form Analysis, Market Study, Transportation Analysis, Affordable Housing and Community Benefits Memorandum, and Resilience and Climate Adaptation Assessment .
4. Community Engagement Strategy: The project team prepared a Community Engagement Strategy, which identifies roles and responsibilities, timelines for outreach activities, and a detailed, comprehensive communication strategy for creating awareness and excitement about the project.
5. Pop-Up Event: City staff and the consultant attended the City-sponsored Holiday Magic event on Main Street on December 17 and 18, 2021 . The team spoke with approximately 25 people and received generally positive feedback related to the project. Feedback included excitement about Main Street being a “real downtown”, need for improvements to make Main Street attractive, desire for retail shops and restaurants, and support for housing, especially affordable housing, along Main Street.
6. Council Ad-Hoc Main Street Revitalization Subcommittee: City staff presented the key findings of the Land Use, Zoning and Urban Form Analysis to the Council Ad -Hoc Main Street Revitalization Subcommittee at its meeting on April 12, 2022. Staff received feedback to thoughtfully incorporate new housing along Main Street while maintaining and strengthening the neighborhood commercial character and find solutions to provide better parking opportunities throughout the corridor.
7. Stakeholder Interviews: The project team hosted six stakeholder interviews with local business owners, property owners, and developers to allow participants to discuss issues and opportunities in a smaller context. Key takeaways included support for analyzing the economic feasibility of development in establishing maximum densities and heights, positive feedback regarding City permitting processes, need for outdoor dining and site activation, and flexibility in build ing design, parking, and open space requirements to ensure feasibility.
8. Community Workshops and Surveys: The project team hosted two community workshops on June 29, 2022 and February 13, 2023 and opened an online survey following each event to solicit additional feedback from those who were unable to attend these workshops . The team provided findings from the existing conditions analysis and the preliminary Plan strategies and alternatives . Participants were able to provide feedback through live polls during the presentation and small breakout group discussions.
Feedback included: (1) vision for a walkable and mixed -use development at different scales and with affordable housing; (2) support for outdoor dining and public art; (3) need for pub lic gathering spaces, additional parking opportunities, and streetscape amenities; and (4) desire for dining, recreation, and shopping options. Refer to the community workshop summaries (Attachments 1 and 2) for more information.
9. Technical Advisory Committee (TAC): The project team hosted two meetings with the TAC to introduce the project, hear staff’s initial concerns and needs regarding specific Plan topics , and receive feedback on the Plan strategies and alternatives.
10. Visioning, Scenario Planning, and Plan Strategies and Alternatives: Based on the robust existing conditions analysis and feedback received from the community, Council, and TAC, the project team prepared a vision memo with the Plan strategies and alternatives related to land use, mobility, and open space. The consultant also conducted feasibility analysis for three development scenarios to test different development frameworks to ensure that Plan recommendations will be practical and implementable.
While the Gateway-Main Street Specific Plan will provide the policy framework and long -term strategies to transform the Plan area into a vibrant destination and gateway to the City over time , the City has also initiated the following Main Street revitalization efforts to facilitate important near-term changes to the area.
1. Storefront Improvement Grant Program: The Office of Economic Development (OED) launched the Pilot Storefront Improvement Grant Program in Spring 2020 with $50,000 from the Community Benefit Fund. The purpose of the program is to improve the appearance of commercial storefronts to encourage economic vitality and attract residents, visitors, and new businesses to Main Street. While staff received interest from various business and property owners, the property owner of 167 and 187 South Main Street, where the former Red Chillies and The Best Sandwiches reside, applied in August 2021. The proposal consists of designing and bui lding a shared outdoor dining area between the two restaurants to create a festive and safe destination to dine outdoors. Challenges initially experienced due to parking, accessibility, and bathroom capacity have been addressed and the project is moving forward. Staff and the applicant are currently executing a Professional Services Agreement for $20,000
in grant funding and design services. The American Rescue Plan Act (ARPA) funded Storefront Grant Improvement Program is also moving forward. In late 2022, staff issued a Request for Proposals (RFP) for design services related to the ARPA funded Storefront Improvement Grant Program and selected Aetypic through the public bid process. Applicants who own the following properties have expressed interest in applying for grants: 93 N. Main Street, 66 S. Main Street, 166 S. Main Street, 174 -176 S.
Main Street, 414 S. Main Street, and 418 -454 S. Main Street.
2. Business Improvement District (BID): BIDs are designed to provide services and programs to business and property owners for the purpose of economic development. In early winter 2022, staff issued an RFP for a consultant to conduct a BID feasibility analysis and selected Civitas Advisors through the public bid process. A kickoff meeting with the consultant team is scheduled for early May. The kickoff meeting will include planning for Phase I of the project, which consists of stakeholder outreach, focus groups, study area establishment, and feasibility assessment and report.
3. Business Attraction: OED recently participated in the International Council of Shopping Centers ( ICSC) Monterey Conference as a thought leader and panel organizer with retail and commercial brokers and developers. As it pertains to Main Street, staff is currently discussing retail opportunities with Philz Coffee and Nirvana Soul Coffee.
During this study session with Council, the project team will review the work completed and community feedback received on the Gateway-Main Street Specific Plan , provide the Plan strategies and alternative s, and facilitate discussion for Council direction on land use, transportation, and open space . The input from this study session will allow staff and the consultant to refine the Plan concepts and start drafting the Gateway-Main Street Specific Plan. Staff will provide an update and receive feedback on the ongoing Main Street revitalization efforts in a separate presentation and discussion following this agenda item.
Analysis:
A brief overview of the additional existing conditions analysis completed , and the Plan strategies and alternatives is provided below.
Additional Existing Conditions Analysis
Following completion of the Land Use, Zoning and Urban Form Analysis, Market Study, and Transportation Analysis, the consultant prepared an Affordable Housing and Community Benefits Memorandum and a Resilience and Climate Adaptation Assessment.
Affordable Housing and Community Benefits Memorandum
The Affordable Housing and Community Benefits Memorandum provides a framework for the Plan that can be implemented in conjunction with the City’s 2023-2031 Housing Element Update to facilitate affordable housing development and help the City meet its Regional Housing Needs Allocation (RHNA) obligations. The key findings are below.
1. While the Plan area is considered a “high resource” area, which makes affordable housing projects more competitive for tax credits, the slow rate of household growth over the past decade reflects constraints that need to be proactively addressed to support affordable housing development.
2. Several major constraints to affordable housing development existing in the Plan area , including small parcel sizes and lack of funding for 100 percent affordable housing. Specific programs to address these constraints include a strategic property acquisition program, planning and zoning incentives, Plan- specific, and an enhanced infrastructure financing district (EIFD).
3. A community benefits program to incentivize and support affordable housing should prioritize public improvements including community gathering spaces, pedestrian and bicycle infrastructure, and streetscape improvements.
4. A community benefits program should also prioritize commercial corridor revitalization through district branding, small business assistance grants and loans, and special events.
Resilience and Climate Adaptation Assessment
The Resilience and Climate Adaptation Assessment provides an analysis of climate -change-related vulnerabilities of the Plan area to inform future development. Several climate projection tools were used to analyze the potential impacts of climate change on the Plan area through the end of the century. The Plan area
is not expected to be susceptible to flooding from sea level rise in the foreseeable future. The Plan area is also not directly exposed to wildfire hazards and is generally in the moderate percentiles for pollution burden (i.e., environmental health hazards) on the community.
Plan Vision, Strategies, and Alternatives
Upon completion of the existing conditions analysis and in consideration of the community feedback received, the project team developed the Plan vision and alternatives and strategies , which are organized into the three focus areas: (1) Gateway and Crossroads, (2) Main Street, and (3) Abbott District.
Plan Vision
The Plan area is envisioned as a group of neighborhoods that together create a complete community and center for Milpitas. New infill housing and mixed -use development will be paired with complete streets , new urban open spaces, and placemaking to distinguish the Plan area as a walkable and bike -friendly urban community. The guiding principles are organized around four themes: (1) vision and placemaking, (2) land use and development, (3) transportation and access, and (4) open space and community amenities. Refer to the Vision Memo (Attachment 3) for more information.
Gateway and Crossroads
The Gateway and Crossroads will serve as a regional destination and gateway to Milpitas with higher-intensity mixed use and residential development , a community anchor at Serra Way, and active gathering spaces . Key strategies to implement this vision include:
1. Establishing a higher intensity and scale for the Gateway (e.g., 4-5 stories) and Crossroads (e.g., 5-6 stories) areas;
2. Reimagining Serra Way and S. Abbott Ave. into complete , multimodal streets; and
3. Incorporating gateway signage and branding, streetscape improvements, pedestrian and bicycle improvements, and parking opportunities.
Main Street
Main Street will continue to evolve into a walkable and thriving destination, supported by civic and cultural anchors, infill residential development as a moderate scale, and neighborhood retail nodes with a focus on retail and outdoor dining . Key strategies to implement this vision include:
1. Establishing a moderate intensity and scale along Main St. (4 -5 stories);
2. Reimagining Main St. as a shared street and Abel Street as a complete, multimodal street ; and
3. Incorporating streetscape improvements and urban parks, plazas, and paseos.
Abbott District
The Abbott District will provide a mix of commercial uses including retail, office, and creative industrial development with new connections and open spaces. Key strategies to implement this vision include:
1. Prohibiting residential development and establishing a 50 -foot maximum height throughout the district;
2. Establishing new street connections from Abbott Ave. to Thompson Ct. and Abel St. to Abbott Ave.; and
3. Extending the Hetch Hetchy greenway and establishing campus -style parks and plazas.
Next Steps
Following the Council direction on the Plan strategies and alternatives , the consultant will prepare an internal Administrative Draft Plan for staff review and initiate the environmental review process per the California Environmental Quality Act (CEQA) .
The project team will also continue engaging the public while drafting the Plan to ensure the community vision informs the development of the Plan. Outreach efforts will include the following tasks in the upcoming months.
1. Pop-Up Event: Host another pop-up event within the Plan area to provide the community a convenient opportunity to review and comment on Plan drafts.
2. Community Open House: Host an interactive community open house to share the latest draft of the Plan and gather final input during the public review process. This is anticipated as an open meeting where participants can drop in throughout a designated time to ask questions and share input about difference aspects of the Plan.
3. Public Draft Plan: Based on community input received, the consultant will refine the Administrative Draft Plan and prepare a Public Draft Plan for public review and circulation.
The project team will also host additional study sessions with the Council throughout the Plan drafting process to share Plan drafts and receive direction on various aspects of the Plan.
Finally, based on input received from the public, City staff, and Council, the consultant will prepare the Final Plan and return to Council for adoption of the Plan and associated Environmental Impact Report (EIR).
Policy Alternatives:
This is an informational item for Council feedback and direction and is one of several sessions for providing Council with the progress of the update of the Gateway-Main Street Specific Plan.
Fiscal Impact:
This is an informational item. As such, there is no fiscal impact.
California Environmental Quality Act :
This report represents ongoing work on the Milpitas Gateway -Main Street Specific Plan; it is anticipated that an Environmental Impact Report (EIR) will be prepared for consideration prior to Plan adoption.
Recommendation:
1. Receive progress report on the work completed and summary of community feedback from Ascent Environmental and staff on the Milpitas Gateway -Main Street Specific Plan and provide direction on land use, mobility, and public realm strategies and alternatives.
2. Receive a presentation on ongoing Main Street revitalization efforts and provide direction on the Storefront Improvement Grant Program, Business Improvement District, and business attraction.
Attachment:
1. Community Workshop #1 Summary
2. Community Workshop #2 Summary
3. Vision Memo
MEMORANDUM
Planning Department
DATE: May 17, 2022
TO: Mayor Rich Tran and City Council
THROUGH: Steve McHarris, City Manager
FROM: Jay Lee, Principal Planner
SUBJECT: Milpitas Gateway-Main Street Specific Plan Existing Conditions Report
This informational memorandum highlights the key findings from three reports completed by the consultant team as part of the Existing Conditions Assessment: (1) Land Use, Zoning and Urban Form Analysis, (2) Market Study, and (3) Transportation Analysis.
Land Use, Zoning and Urban Form Analysis
The Specific Plan Update proposes a new Plan boundary to better reflect the current Plan area context and align with the ongoing Milpitas Metro Specific Pla n Update. The area south of Great Mall Parkway, which includes several sites that have recently redeveloped and/or will be included in the Metro Plan area , has been removed from the Plan area to allow for greater focus on redeveloping and planning for the new focus areas along Main Street, Calaveras Boulevard, and Abbott Avenue . Two residential neighborhoods have been included in the Plan boundary to establish a more coherent Plan area and one nonresidential area has been included to maximize opportunities for redevelopment. See Figure 1 for the proposed Plan boundary adjustments.
Land Use and Development Regulations
The key findings related to land use and development regulations are below:
1. Density and Intensity: The currently allowed densities in the Plan area are not always aligned with the densities envisioned in the new General Plan and are obstacles to redevelopment. Opportunities to carefully increase densities while protecting existing neighborhoods should be evaluated to support infill development and corridor activation.
2. Intensity and Height: Three-story height limits are a major development constraint along Main Street. Building height standards should be aligned with allowed densities to allow for redevelopment.
3. Front Setbacks and Street Activation: The existing building setback pattern along Main Street is inconsistent. Setback and design treatment standards should be place -based to create special places throughout the Plan area and activate street frontages along Main Street.
2 Figure 1: Proposed Plan Boundary Adjustments
3 Urban Form Analysis
The key findings related to urban form are below:
1. Existing “On-the-Ground” Land Uses: The Plan area includes an eclectic mix of uses with considerable opportunities for new redevelopment.
2. Block Pattern: Existing blocks along Main Street are long and currently unconducive to walking. North Main Street is the exception with recent improvements that include wide sidewalks, narrower streets, and improved pedestrian crossings.
3. Building Age and Historic Resources : The majority of structures were constructed between 1970 and 2000 . Pre-1941 development, and some concentration of mid - century buildings, are present at the crossroads of Main Street and Serra Way, along Main Street north of Tom Evatt Park, and in shopping centers along Abbott Avenue and Serra Center. Although many historic assets have been lost or changed over time, they may be commemorated with markers as part of the streetscape and signage approach.
4. Social, Cultural, and Community Anchors : The Plan area is home to a mix of religious, cultural, educational, and other public uses that converge within the Main Street corridor.
5. Parks, Open Space and Trails : Public parks, open space , and trails contribute to the public realm character of the community and have opportunities to be improved as new development occurs.
6. Property Ownership: Land ownership in the Plan area is extremely fragmented with numerous landowners owning small, highly constrained parcels. Large land holdings and publicly owned parcels with vacant buildings or land should be leveraged as catalyst sites.
7. Recent and Approved Projects : There are a limited number of projects in the current pipeline, including one mixed -use development project, a new veterinary clinic, and an approved housing development project.
8. Existing and Planned Access : The public street network in the Plan area is limited due to large sites, as well as edges such as I -880 and multiple rail corridors. The existing bicycle network is limited through the Plan area, with extensive improvements identified in the Draft Milpitas Pedestrian/Bicycle and Trails Plan. The Plan area is well -served by VTA local bus service.
Opportunities and Constraints
For the purpose of e stablishing priorities for redevelopment and improvements, t he Plan area has been organized into three areas:
1. Focus Areas, which represent the major opportunity areas to direct new infill and growth;
2. Neighborhoods, which are to be considered preservation areas but can benefit from area improvements and support local shops, businesses, and activities; and
3. Future Study Areas, which are potential future opportunity sites subject to further study if and when these facilities are no longer needed for their current purpose .
Three focus areas are proposed to establish priority areas for redevelopment and provide a more focused strategy given the large Plan area: (1) Main Street, (2) Calaveras Gateway, and (3) I-880/Abbott Avenue.
4 Figure 2: Focus Areas, Neighborhoods and Future Study Areas
5 The Main Street focus area presents opportunities for a retail center on the northern end of the corridor and mixed-use redevelopment on vacant or underutilized sites further south. Main Street is envisioned as a walkable, social, and cultural center for Milpitas.
Figure 3: Main Street Focus Area
The Calaveras Gateway focus area presents a significant redevelopment opportunity at the Serra Center to reimagine an aging shopping center at a highly visible entry location. This focus area is envisioned as a major gateway to Milpitas and destination for both residents and visitors alike.
Figure 4: Calaveras Gateway Focus Area
6 The I-880/Abbott Avenue focus area , which is home to an office/commercial center north of Calaveras Boulevard and a business center south of Calaveras Boulevard, presents an opportunity to establish a more cohesive and attractive employment center with improved connections with the surrounding Plan area.
Figure 5: I-880/Abbott Avenue Focus Area
The key opportunities and constraints in the Plan area are below:
1. Main Street has a long history that should be more publicly displayed through in-ground inlays at historic crossroads and interpretive signage /plaques identifying key resources.
2. A large number of historic, cultural, and educational facilities are located throughout the Plan area, making Main Street an existing destination for the community to gather.
3. There is a need for public gathering spaces to bring the community together for events at Main Street on a more regular basis.
4. Focus areas include opportunity sites with vacant land and underutilized parcels, which can serve as development catalysts for new mixed -use development.
5. Block sizes along Main Street are very long and auto oriented. Cross -block connections are needed to reduce block sizes and facilitate walkability.
6. There is an opportunity for urban parks, plazas, small open spaces, and multi-use trail connections (i.e., Tom Evatt Park and Lower Penitencia Creek Trail) to activate streets.
7. Access and connectivity throughout the Plan Area are challenged by connectivity barriers and curb cuts along main Street.
8. Streetscape improvements are inconsistent along the length of the corridor and lack branding to support a distinguishable identity for the Plan area.
7 Market Study
The Market Study evaluates the market support for new development in the Plan area based on current and future anticipated market conditions, identifies opportunities and constraints to achieving the desired mix of uses , and recommends strategies to leverage these opportunities and address these constraints. The key findings are below.
Location, Urban Form, and Focus Area Opportunities
The irregular and fragmented parcels and ownerships along Main Street present a challenge for aggregating parcels to accommodate large, investment -grade development projects.
Instead, small-scale development should be planned and encouraged.
Demographics and Economy
1. Milpitas has a large base of highly educated and affluent consumers that would be attractive to new retailers in the Plan area.
2. These consumers are a prime target for new forms of specialty and experiential retail (i.e., places that offer a unique “sense of place” and consumers seek out to spend their discretionary time and dollars).
3. Milpitas’ rich racial and ethnic diversity supports specialty food retail, including ethnic markets and eating/drinking establishments.
4. The increase in Class A rental multifamily residential developments suggests additional demand for eating, drinking, and entertainment establishments.
Real Estate Market Trends
Residential
1. Recent construction activity, net absorption, and rent trends demonstrate continued strong demand for rental housing .
2. Smaller parcels along Main Street south of Serra Way and north of Curtis Avenue would be appropriate places for new lower density housing .
3. Recent residential projects in the Plan area have mainly consisted of multifamily apartment projects on large sites with densities ranging from 60 to 120 units per acre.
Maximum building heights need to be 5 to 7 stories to accommodate this density.
Larger parcels (or aggregations of smaller parcels) in the Calaveras Gateway and I- 880/Abbott Avenue focus area s would be the most appropriate locations for new, high - density residential development.
Retail
1. Due to narrow parcels and traffic volumes, n ew retail on Main Street should offer a walkable multi-block retail node instead of a long strip of ground floor retail.
2. The best location for new retail would comprise the eastern portion of the Calaveras Gateway focus area and the northern portion of the Main Street focus area (north of Junipero Drive) with Serra way as the focal point . This area is walkable, contains parcels large enough for medium -to-large scale redevelopment, and easy access to Calaveras Boulevard and Main Street. This area would also be supported by a large residential population that lives nearby.
8 Figure 6: Potential Retail Node
Figure 7: Retail Buildings in Milpitas and the Plan Area
9 Office
1. Much of the Plan area is more than a half -mile from the VTA’s Alder Light Rail Station and Milpitas BART Station, making the Plan area less attractive for new Class A office development.
2. However, portions of the I -880/Abbott Avenue and Calaveras Gateway focus areas with frontage along Calaveras Boulevard and I -880 have high visibility and would make these sites attractive to Class A office development.
3. In other areas, small-scale Class B office in a residential mixed -use project may be feasible by targeting tenants serving the local residents and businesses.
Figure 8: Office Buildings in Milpitas and the Plan Area
10 Transportation Analysis
The Transportation Analysis describes the transportation conditions in the Plan area and identifies potential issues and opportunities that can be addressed in the Plan.
Roadway Network
The roadway system in the Plan area consists of federal highways, state highways, county expressways, arterial roadways, collector roadways, and local roadways. Planned roadway improvements include the Calaveras Boulevard Widening Project (CIP #4258) and Montague Expressway Widening Project (CIP #4179).
Bicycle and Pedestrian Circulation
The City recently published the Draft Milpitas Pedestrian/Bicycle and Trails Plan , which includes a comprehensive evaluation of the City’s existing pedestrian and bicycle infrastructure and proposes improvements based on a needs evaluation, prioritization, and feasibility assessment.
Streets with missing sidewalks or sidewalks on only one side include:
1. Carlo Street (no south side sidewalk),
2. Serra Street (sidewalk gaps on south side), and
3. Calaveras Boulevard (no south side sidewalk between Carlo Street and Milpitas Boulevard).
The Draft Master Plan proposes bicycle improvements along Main Street, Abel Avenue, Calaveras Boulevard, and Great Mall Parkway.
Transit Service
The Plan area is served by several transit services including VTA, AC Transit, ACE, and BART.
Parking and Curbside Uses
In addition to residential neighborhood roadways where on -street parking is generally allowed, roadways in the Plan area that generally provide on -street parking include:
1. South Main Street (alternate sides between Serra Way and Great Mall Parkway and limited north of Serra Way),
2. Weller Lane (south side only) ,
3. Corning Avenue between South Abel Street and South Main Street (both sides) ,
4. Curtis Avenue (except on north side between South Abel Street and South Main Street), and
5. Thompson Street (both sides).
Many sites provide off-street surface parking lots. Structured parking is provided for the Valley Health Center and Milpitas Library on North Main Street north of Serra Way.
Collision History
From 2015 to 2019, there were 241 collisions in the Plan area . 73% of all collisions occurred at an intersection. The intersections with the most collisions were Abbott Avenue at Calaveras Boulevard and Thompson Street at Great Mall parkway. The most common causes for collisions were unsafe speeds and violation of traffic signals and signs. See Figure 9 for the collision data from 2015 to 2019.
11 Figure 9: Collision Data from 2015 to 2019
12 Issues and Opportunities
Key transportation challenges in the Plan area include:
1. Connectivity barriers due to cul -de-sacs, railroads, and grade separations;
2. Long blocks and frequent curb cuts along Main Street Proximity to VTA light -rail and BART just south of the Plan area; and
3. Distribution of parking across multiple small lots along Main Street.
Key transportation characteristics which promote multimodal transportation options include:
1. Bus service through the Plan area;
2. Existing and planned bicycle lanes and multi -use trails on Main Street, Abel Street, Calaveras Boulevard, and Great Mall Parkway; and
3. Pedestrian-scale on Main Street that can serve all modes of travel in a balanced way .
Key transportation opportunities include:
1. Extension/connection of Abbott Avenue to Thompson Court;
2. Additional connections between Main Street and Abel Street;
3. High-quality pedestrian and bicycle connections between Main Street and Calaveras Boulevard;
4. Strategies to implement the Pedestrian/Bicycle and Trails Master Plan; and
5. Wayfinding measures and micro -mobility services.
Milpitas Gateway – Main Street Specific Plan Update
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Vision Memo
Overview
This Visio n Memo summarizes the Emerging Vision and Guiding Principles, as well as Key Strategies, and Concept Alternatives being evaluated in order to arrive at a pr eferred plan. It is the culmination of Task 3.1 Initial Visioning and findings from sub-t asks within Tasks 3.2 Scenario Planning and Task 3.3 Strategies. This memo reflects engagement with the City and team in a Brainstorming Session, collaboration with the City and subconsultant team on preliminary concepts, and input from a series of engagement sessions, including TAC Meeting #1, Community Workshop #1, City Council Study Session #1, Planning Commission Study Session #1 , and Stakeholder Interviews.
1. Emerging Vision and Guiding Principles
The Gateway–Main Street Specific Plan area is envisioned as a group of Midtown neighborhoods that together create a complete community, and a center for Milpitas. Main Street and the Civic Center will continue to evolve into a walkable and thriving destination, supported by civic and cultural anchors , infill residential, and neighborhood retail nodes. The Crossroads will serve as a regional destination, and a Gateway to Milpitas and the Abbott District . New infill housing and mixed- use will be paired with complete streets and trail improvements, new urban open spaces, plazas, and placemaking to distinguish Midtown as a walkable and bike- friendly urban community.
The following Emerging G uiding P rinciples ha ve aris en through the planning pr ocess, wh ich the cit y team supported.
a. Land U
se & Development.
• Bring walkable, pedestrian- friendly retail, grocery stores, restaurants/ outdoor dining, and places “to be”.
• Housing, Housing, Housing. Integrate a mix of housing types, scales, and affordability, including mixed-use, housing for families, smaller units, live-work, senior housing, and affordable housing. • Add housing throughout Midtown, with emphasis along Main Street and at the Crossroads. • Distinguish the entry to Midtown and Milpitas at the Calaveras Gateway, and along Serra Way. b. Transportation and Access.
• Re-design Calaveras, Main Street, and Serra Way, to improve circulation and facilitate walkability and bike access.
• Extend streets to create a grid of smaller, connected blocks and eliminate barriers. • Create a network of bicycle and pedestrian linkages to connect to transit, amenities/open spaces, and greater Milpitas.
• Integrate multi -modal improvements and safety upgrades throughout Midtown, including crosswalks, enhanced sidewalks and streetscape, pedestrian lighting, and other amenities. c. Open Space, Public Realm, and Amenities
• Create smaller, active urban parks, gathering spaces, and special places for people to meet and interact.
• Integrate public art, entertainment, and active “programing” in public spaces that celebrate Milpitas’ diversity.
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• Improve naturalized areas, open spaces and the Creek, with landscape improvements and pedestrian amenities.
d. Vision and Placemaking
• Make Midtown the heart of Milpitas and the center of the community. • Improve the character of Midtown with high quality development, landscaping, and streetscape. • Integrate signage and branding to distinguish Midtown as a special place and downtown for Milpitas.
• Develop and distinguish special places to integrate an element of discovery and create identities for distinct neighborhoods.
• Preserve and commemorate historic places through interpretative signage.
2. Key Strategies
The following strategies were identified for study based on the Brainstorming Session and feedback to date, and are being evaluated in the Framework Concepts, Mobility and Circulation Concepts.
1. Land Use and Development.
• Focus on opportunity sites; incentivize lot assembly; push the envelope on opportunity and rezone sites (including at Serra Center and Sobrato Center).
• Look at larger scale development, including mixed-use and residential at Calaveras, to maximize density at the C rossroads area. This can be 4 -5 stories or more, considering that 5 over 2 development is optimum for many developers.
• Step down to meet adjacent low density residential. Adequate transitions to existing lower density neighborhoods will be important for all focus areas.
• Consider options for up to 5 stories of infill residential along Main Street, as well as opportunities to differentiate Main Street, north of Curtis vs south of Curtis. • Emphasize Main Street and Gateway Focus Areas, but c onsider I-880 Focus Area as more high- level.
Note that Sobrato Organization is interested in participating in redevelopment activities.
2. Transportation and Access. Explore opportunities to extend the street grid throughout the project area, as well as improving key intersections, including the following priorities:
• Placemaking/entrance/gateway into site from Calaveras will be very important to “announce” Milpitas entrance, including intersection improvements, addition of street trees, signage, etc. • Extend network of streets through Serra Center site.
• Improve network in area of Calaveras/Serra Way.
• Improve Abbott Ave & Calaveras Blvd intersection, and I-880 Focus Area network. • Improve Serra Way/Calaveras intersection.
• Improve connection between Serra Way and Main Street. • Improve Abel Street corridor as a multi-modal road, including using the creek as a feature. • Provide landscaping and streetscape along the streets, as well as new signals, and additional pedestrian crossings to make the area more pedestrian-friendly and walkable. • Additionally:
i. Avoid the area bounded by Calaveras, Serra, and Abel from turning into an "island". ii. Abbott Ave could "T" into an intersection with a new road serving Serra Center, as opposed to a curved road.
iii. Is there an opportunity to integrate Carlo St which connects to Calaveras?
3. Open Space, Public Realm, and Amenities.
• Consider placemaking, small parks, and public realm improvements with all development projects. • Consider street improvements, streetscape, and street trees, as well as components such as paseos and crosswalks as part of the part of an integrated public realm.
4. Other topics.
• Consider whether the Sobrato Center should be included in the Specific Plan project area, or removed and rezoned separately as part of the Housing Element Update process. Considering this property
Milpitas Gateway – Main Street Specific Plan Update
Ascent | December 2022 3
owner’s timeline and plans, it may be more appropriate to address redevelopment through a rezone and associated affordable housing bonus incentives.
• Address phasing and the evolution of the Plan area in the Specific Plan as well as engagement activities, and consider easy/simple steps to show how specific elements can be implemented in an incremental fashion.
3. Concepts and Scenario Alternatives
The following concepts and alternatives have been prepared for discussion and TAC feedback, based on study and engagement to-date.
1. Area-wide Framework Concepts
Future Land Use & Development + Neighborhood Identity
• To reinforce the idea of placemaking, districts and neighborhoods are recommended as an organizing element in scenario development, rather than focus areas. This area-wide framework diagram identifies potential neighborhood areas, and associated land use focus, density, and intensity.
Potential Street Network: Extensions + Parks, Plazas, and Paseos • This framework diagram identifies potential options for extending streets to create a cohesive and connected district. This diagram is intended to be used as a starting point for decision making in order to study the mobility network, evaluate future improvements , and create a basis for Specific Plan regulations. Additionally, future planning for areas east of Hammond Way, as well as any potential new at-grade crossings, should be considered at a high- level, as it offers the potential to solve some circulation challenges throughout the area.
• Potential public realm amenities are identified throughout the Plan Area, to ensure that all new development has access to urban open space amenities such as paseos, plazas, and parks. While exact locations for parks and open spaces cannot be required in the Plan Area, the framework can establish a strategy for the approximate location for a park or plaza, as well as the interval of paseo connections, and the associated design of those spaces.
• Existing and future parking structures are identified for consideration.
2. Mobility and Circulation Concepts
• The approach to Main Street, Abel Street, Serra Way, and the Serra Way/Calaveras Boulevard Intersection is central to the evolution of the Plan Area as a connected, walkable, vibrant district. The circulation alternatives study cross -section alternatives to implement a cohesive complete streets approach.
INITIAL VISIONING AND SCENARIO PLANNING
MILPITAS GATEWAYҺMAIN STREET SPECIFIC PLAN // 1
// AREA-WIDE FRAMEWORK CONCEPTS
Future Land Use & Development + Neighborhood Identity
Starlite
Park
O'Toole
Elms Park
Parc Metro
East
Parc Metro
West
"X
"X
Berrye
John
McDermott
Park
SERRA WAY
CURTIS AVE
HAMMOND WAY
S MILPITAS BLVD
BARBER LN
TOPAZ ST
GIBRALTAR DR
RAILROAD AVE
MAIN ST
ABEL ST
THOMPSON ST
CARLO ST
SPENSE AVE
JUNIPERO AVE
CORNING AVE
SYLVIA AVE
MACHADO AVE
E TASMAN DR
GREAT MALL PKWY
CALAVERAS BLVD
0 0.25 0.5
Miles
Æba BART Station
"X Light Rail Stop
Light Rail Line
BART Line
Railway
ooooarc Metr G
Starlite
Park
ALAVERAS BLVDRAS B
D
V BLVDVERAALAV
BLVVER BB
S MILPITAS BLVDSMMILPI
BLVD
PITAS
BARBABARBA
R DRRD R
Parc Neighborhoods
(No Change)
Crossroads
• Mixed-use destination w/
a civic gathering space
• Anchor (at Serra) with
theater or attraction
• Higher-intensity mixed-
use and residential
• Retail and restaurant
• Hotel
• Creative uses/ maker
spaces
• 5 stories (+)
• New street/intersection
improvements and
streetscape
North Gateway
• Mixed-use and commercial in fi ll
• Moderate to high intensity stand-
alone residential
• 4-5 stories
• Urban parks and plazas
• New street/intersection
improvements and streetscape
Junipero
Neighborhoods
(No Change)
Elmwood
(Longer Term) Urban Reserve
Policy Focus if land use needs
should ever change
Creekside
• Future parks and open space
• Creek enhancements
• New ped/bike connections
Library District
• Civic focus
•
New park or amphitheater north of
Library
• New home for Milpitas Historical
Society
ER LNERR LN
SMAN
E TASMAN
North Railyards
Urban Reserve Policy Focus
• Future light industrial,
distribution, and heavy
commercial uses
• Residential not permitted
• Future street extensions
and open space network
enhancements
South Railyards
Urban Reserve Policy Focus
• Future higher-intensity
mixed-use TOD
• Future street extensions
and open space network
enhancements
Abboħ District
(other names: Abboħ
Corridor, Abboħ T ech
District)
• Mixed-commercial,
including commercial,
retail, offi ce
• Creativ
e industrial
• Residential not
permitted
• Up to 50 feet*
• New street connecting
Abbott Avenue and
Thompson Court
• Greenway extension
• Urban campus style
parks and plazas
Main Street
• Mixed-use main street
• Moderate intensity mixed-
use and residential infi ll
and active frontages
• Retail, restaurant, outdoor
dining
• 4-5 stories
• Streetscape enhancements
• Urban parks, plazas, and
paseos
INITIAL VISIONING AND SCENARIO PLANNING
MILPITAS GATEWAYҺMAIN STREET SPECIFIC PLAN // 2
// AREA-WIDE FRAMEWORK CONCEPTS
Potential Street Network + Parks, Plazas, and Paseos
Starlite
Park
O'Toole
Elms Park
Parc Metro
East
Parc Metro
West
Starlite
Park
"X
"X
Berryessa Cree
k
John
McDermott
Park
SERRA WAY
CURTIS AVE
HAMMOND WAY
S MILPITAS BLVD
BARBER LN
TOPAZ ST
GIBRALTAR DR
RAILROAD AVE
MAIN ST
ABEL ST
THOMPSON ST
CARLO ST
SPENSE AVE
JUNIPERO AVE
CORNING AVE
SYLVIA AVE
MACHADO AVE
E TASMAN DR
GREAT MALL PKWY
CALAVERAS BLVD
P
P
P
P
P
P
Æba BART Station
"X
Light Rail Stop
Light Rail Line
BART Line
RailwayExisting Path of Trail
Potential Future Path, Trail or Paseo
Potential Future At-Grade Crossing
Potential Future Park or Plaza
P Potential Future Parking Structure
Existing Street
Potential Future Street
Existing At-Grade Crossing
0 0.25 0.5
Miles
Creekside
• Future parks and open space
• Creek enhancements
• New ped/bike connections
S
BARBER LNBARBEBARBER
R LN
BA
XXXXXXXXXXX""""""""""""""""""""""""
SMANASMAN
ooooooPPPPPPPPPPParc MetroPP
EastEasttttttEaEaststssasassaaEEEastEastttassaEast
GIBRALTAR DRGIBRAL
ALTARALTAR DR
BBBBBBeeeeerrrrrrrrrrryyyyyyyyrrr
eeeyy
ssssssssaa
S MILPITAS BLVDSMMILPI
BLVD
PIT
AS
TOPAZ STTOTOPAZ
AZZ STZS T
TOPA
CALAVERAS BLV
D
RAS B
D
V BLVD
VERACALAV
BLVVERC
BB
Carlo Street
• Develop new open space on City-
owned property
• Tree preservation
• Implement intersection
improvements
• Consider extension of Carlo Street
and at-grade crossing
Calaveras and Serra Way
• Coordinate with Calaveras
Widening plans on off-street
multi-use path at north side of
street
• Provide protected
intersection at Calaveras/
Serra Way, and high visibility
crosswalks at intersections
along Serra Way
• Provide bike lanes or shared
path (south side of street),
and sidewalks, connecting
Calaveras to Main Street
• Extend bike lanes on N.
Abbott, north of Calaveras, to
Spence (school)
• Add plaza at each end of
Serra Way, and streetcape
improvements along Serra
Way
Abboħ District
• Extend Thompson Court to
Abbott Avenue (long term)
• Redesign Abbott Avenue
to include bike lanes and
continuous sidewalks (near to
mid-term)
• Incorporate parks/plazas
within future development
• Extend greenway along Hetch
Hetchy corridor
Serra Center
• Extend new streets through
Serra Center
• Evaluate option(s) for shared
parking structure at Serra
Center
• Incorporate civic space within
future development
South Abel
• Improve/ formalize multi-use
path along Tom Evatt Park
• Add RRFB or full signal at
Machado Avenue and A
bel
• Provide a protected crossing
E T
to connect Tom Evatt Park at
Abel
• Improve connection from S.
Abel to Transit
Railyards
• Consider (long-term) future
connections to provide an alternate/
parallel route to Main Street
and establish future east-west
connections
• Evaluate potential for future at-
grade rail crossings (vehicular or
ped/bike)
• Incorporate parks/plazas within
future development (South
Railyards)
• Extend greenway along Hetch
Hetchy corridor
Main Street
• Reconfi gure curb-to-curb width
with a combination of sidewalk
improvements, and curb extensions,
while retaining some on-street
parking
• Add paseo connections to improve
pedestrian and bike access along the
Main Street corridor
• Provide east-west bike connection
east of Main, by extending Machado
and/ or Serra
• Add high-visibility crosswalks at
intersections along Main Street
• Evaluate option(s) for shared
parking structures, near Serra Way
and Machado
• Incorporate new plaza or open
space between Machado and Curtis,
and new park or amphitheater
north of Library
CITY OF MILPITAS
AGENDA REPORT
(AR)
Item Title: Adopt a Resolution Appointing Natalie Livezey as Part-Time Extra Help Senior Administrative Analyst (Staff Contact: Jason Schoonover, Fire Chief, 408-586- 2811)
Category: Leadership and Support Services
Meeting Date: 1/7/2025
(1) Adopt a resolution appointing Natalie Livezey as part-time extra help Senior Administrative Analyst in accordance with California Government Code Sections 7522.56 and 21224; and (2) Approve and authorize the City Manager to execute an employment agreement with Natalie Livezey.
BACKGROUND:
The California Public Employees Reform Act of 2013 requires a 180-day “wait” period before a retiree can return to work for a public agency, subject to exceptions per Government Code Sections 7522.56 and 21224, which pertains to extra help retired annuitants hired to perform work of limited duration, such as elimination of a backlog, special project work, or to perform work exceeding regular staff work. Additionally, and in accordance with Public Employees’ Retirement Law (PERL), the extra help appointment and waiver of 180-day “wait” period is permissible if it is approved by the governing body of the employer in a public meeting and not on a consent calendar. Staff has worked with the City Attorney to ensure that additional requirements, such as ones that relate to compensation and hours worked, will be met.
ANALYSIS:
Prior to her retirement in October 2024, Natalie Livezey served as the Fire Department (Fire) Senior Administrative Analyst for several years and is uniquely positioned to assist with completing the FD onboarding process for her recently hired replacement. Additionally, Natalie has the historical knowledge to support Fire on many critical special projects not completed prior to her retirement from the City. These special projects include but are not limited to the California Office of Emergency Services (CalOES) wildland mutual-aid reimbursement program, Ambulance Program billing and expansion, contracts management, data analytics, budget knowledge transfer, Public Protection Classification (ISO) assessment, and mid/long range strategic planning. As such, and consistent with the requirements of Government Code Section 21224, staff recommends waiving the 180- day “wait” period to hire Ms. Livezey as a part-time extra help retired annuitant using her unique knowledge and experience to complete the Department’s key special projects and assist with completing the process of onboarding the new Senior Administrative Analyst. Included in the Council agenda packet is the required resolution to appoint a retiree pursuant to Government Code Sections 7522.56 and 21224 and the employment agreement.
POLICY ALTERNATIVE(S):
Alternative 1: Do not adopt the resolution appointing Natalie Livezey as part-time Extra Help Senior Administrative Analyst and do not approve and authorize the City Manager to execute an employment agreement with Ms. Livezey.
Pros: None
Cons: The City and its Fire Department will lose critical historical knowledge and experience required to successfully complete the process of onboarding the new Senior Administrative Analyst, and the probable postponement of key special projects initiated prior to Natalie Livezey’s retirement.
Reason for Not Recommending: As stated above, the City and its Fire Department will lose critical historical knowledge and experience required to successfully complete the process of onboarding the new Senior
Recommendation:
Administrative Analyst, and the further delay of key special projects that were initiated prior to Natalie Livezey’s retirement.
FISCAL IMPACT:
The compensation paid to retirees cannot be less than the minimum nor exceed the maximum hourly rate paid to other employees performing comparable duties and is limited to 960 hours per fiscal year. Accordingly, the hourly rate to be paid is $55.50 or up to $73.05 per fiscal year. Funding is available from the department budget to fund this part-time position.
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:
(1) Adopt a resolution appointing Natalie Livezey as part-time extra help Senior Administrative Analyst in accordance with California Government Code Sections 7522.56 and 21224. (2) Approve and authorize the City Manager to execute an employment agreement with Natalie Livezey.
ATTACHMENT(S):
(a) Resolution
(b) Employment Agreement
RESOLUTION NO. ________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MILPITAS FOR EXCEPTION TO THE 180-DAY WAITING PERIOD IN ACCORDANCE WITH CALIFORNIA GOVERNMENT CODE SECTIONS 7522.56 AND 21224 AND
APPROVING EMPLOYMENT AGREEMENT FOR NATALIE LIVEZEY
WHEREAS, in compliance with Government (Gov.) Code section 7522.56 of the Public Employees’ Retirement Law, the Milpitas City Council must provide CalPERS this certification resolution when hiring a retiree before 180 days has passed since their retirement date; and WHEREAS, Natalie Livezey, CalPERS ID 6375928446, retired from the City of Milpitas in the position of Senior Administrative Analyst, effective 10/1/2024; and WHEREAS, Gov. Code section 7522.56 requires that post-retirement employment commence no earlier than 180 days after the retirement date, which is March 29, 2025, without this certification resolution; and
WHEREAS, Section 7522.56 provides that this exception to the 180-day wait period shall not apply if the retiree accepts any retirement-related incentive; and WHEREAS, the Milpitas City Council, the City of Milpitas, and Natalie Livezey certify that Natalie Livezey has not and will not receive a Golden Handshake or any other retirement-related incentive; and
WHEREAS, the Milpitas City Council hereby appoints Natalie Livezey as a Part Time extra help retired annuitant to perform the duties of the Senior Administrative Analyst for the City of Milpitas under Gov. Code section 21224 effective January 7, 2025; and
WHEREAS, the entire employment agreement, contract or appointment document between Natalie Livezey and the City of Milpitas has been reviewed by this body and is attached herein; and WHEREAS, no matters, issues, terms or conditions related to this employment and appointment have been or will be placed on a consent calendar; and
WHEREAS, the employment shall be limited to 960 hours per fiscal year for all CalPERS employers; and
WHEREAS, the compensation paid to retirees cannot be less than the minimum nor exceed the maximum monthly base salary paid to other employees performing comparable duties, divided by 173.333 to equal the hourly rate; and
WHEREAS, the maximum base salary for this position is $5,844.08 and the hourly equivalent is $73.05, and the minimum base salary for this position is $4,439.60 and the hourly equivalent is $55.50; and
WHEREAS, the hourly rate paid to Natalie Livezey will be $73.05; and WHEREAS, Natalie Livezey has not and will not receive any other benefit, incentive, compensation in lieu of benefit or other form of compensation in addition to this hourly pay rate; and
2 Resolution No. xxxx
NOW, THEREFORE, the City Council of the City of Milpitas hereby finds, determines, and resolves as follows:
1. The City Council hereby certifies the nature of the appointment of Natalie Livezey as described herein and detailed in the attached employment agreement and that this appointment is necessary to fill the critically needed position of, project management duties, and other related duties for the City of Milpitas by January 13, 2025, because the Milpitas City Council has determined the unique and specialized skills possessed by Natalie Livezey are necessary to complete the Fire Department’s key Special projects and assist with completing the process of onboarding the new Senior Administrative Analyst.
2. The City Council herby waives the 180-day waiting period pursuant to Government Code Sections 7522.56 and 21224.
3. The employment agreement with Natalie Livezey, a copy of which is incorporated herein as Exhibit A, is approved by the City Council, effective January 7, 2025.
4. The City Manager is authorized to execute said agreement on behalf of the City, with such technical amendments as may be deemed appropriate by the City Manager and City Attorney.
PASSED AND ADOPTED this ______, day of _______, 2025, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST: APPROVED:
_____________________________ _________________________ Suzanne Guzzetta, City Clerk Carmen Montano, Mayor
APPROVED AS TO FORM:
_____________________________
Michael Mutalipassi, City Attorney
Resolution No. ___1
EMPLOYMENT AGREEMENT FOR
NATALIE LIVEZEY, SENIOR ADMINISTRATIVE ANALYST
This Employment Agreement (“Agreement”) is made by and between the City of Milpitas, a municipal corporation of the State of California (“City”) and Natalie Livezey, an individual (“Retiree”) as of January 13, 2025 (“Effective Date”).
RECITALS
A. Retiree was previously employed by the City for several years, serving most recently as Senior Administrative Analyst until October 1, 2024; and B. Retiree retired from the City effective October 2, 2024 and began collecting a retirement pension from the California Public Employees’ Retirement System (CalPERS); and D. The City has a critical need to complete the Fire Department’s key Special projects and complete the onboarding of the new Senior Administrative Analyst; and E. Retiree has the necessary qualifications, experience, abilities and unique historical knowledge of the Fire Department to assist with project completion and training; and F. Retired Annuitant’s employment is authorized by Government Code section 21224, which permits the City to hire a CalPERS retired annuitant as extra help to perform work of limited duration, such as special project work; and
G. City desires to retain the services of Retiree in accordance with California Government Code Section 21224 and Retiree agrees to provide certain services to City under the strict terms and conditions set out in this Agreement.
In consideration of this matter described above and of the mutual benefits and obligations set forth in this Agreement, the receipt and sufficiency of which consideration is hereby acknowledged, the parties of this Agreement agree as follows:
AGREEMENT
Section 1. Term of Services
The term of this Agreement is from January 13, 2025 through June 30, 2025, unless the City or Retiree elect to terminate this agreement on an earlier date by providing written notice to the other party.
Section 2. Scope of Services
Retiree agrees to perform special project duties including but not limited to Contracts Management, data analytics, budget knowledge transfer, Public Protection Classification (ISO)
Resolution No. ___2
assessment, and mid/long range strategic planning. Retiree will report directly to the Fire Chief.
Retiree shall comply with all City rules, policies, guidelines, regulations, and laws.
Section 3. Compensation; Hours
City agrees to compensate Retiree at $73.05 per hour for all services provided under this Agreement. Payments from City to Retiree shall be made during the normal payroll cycles of other City employees.
City has reviewed and compared the hourly rate set forth in this Section with other employees performing comparable duties and the hourly rate set forth in this Section does not exceed such other employee’s compensation.
Retiree agrees and acknowledges that he shall not perform any services under this Agreement exceeding a total of nine hundred sixty (960) hours during any fiscal year (July 1 to June 30).
Retiree shall record his hours on a pre-approved timesheet that shall be submitted to the City every week.
The position is a temporary, hourly assignment which is generally not expected to exceed 40 hours per week. The City, through the Fire Chief, will assign Retiree hours to work. Due to the nature of the position, it is understood that the work day and work week hours may vary.
There are no other benefits, incentives, compensation in lieu of benefits or other forms of compensation in addition to the hourly pay rate set forth in this Section.
Section 4. Location
The primary location for services will be at the following address:
777 South Main Steet, Milpitas, California 95035
Section 5. Compliance with Laws
This Agreement will be construed in accordance with and governed by the laws in the State of California. In the event that suit shall be brought by any of the parties, the parties agree that venue shall be exclusively vested in the state courts of the County of Santa Clara, or if federal jurisdiction is appropriate, exclusively in the United States District Court, Northern District of California, San Jose, California. Retiree shall comply with all applicable laws, rules, policies, and guidelines.
Retiree agrees and acknowledges that the State of California and the governing body of the California Public Employees’ Retirement System enact strict laws, regulations and guidelines relating to services provided by “retired annuitants” to public agencies contracting with the California Public Employees’ Retirement System. Retiree agrees to comply with all applicable laws, regulations and guidelines relating to the services provided under this Agreement.
Resolution No. ___3
Section 6. Termination
This Agreement may be terminated by either party for convenience by providing written notice to the other party.
Section 7. Miscellaneous
a. Retiree has read each and every part of this Agreement and Retiree freely and voluntarily has entered into this Agreement. This Agreement is a negotiated document and shall not be interpreted for or against any party by reason of the fact that such party may have drafted this Agreement or any of its provisions.
b. If a court of competent jurisdiction finds or rules that any provision of this Agreement is invalid, void, or unenforceable, the provisions of this Agreement not so adjusted shall remain in full force and effect. The invalidity in whole or in part of any provision of this Agreement shall not void or affect the validity of any other provision of this Agreement. c. This Agreement, including the exhibits, represents the entire and integrated agreement between City and Retiree and supersedes all prior negotiations, representations, or agreements, either written or oral.
In witness where of the parties have duty affixed their signatures on this XX day of January, 2023.
CITY: RETIREE:
Ned Thomas, City Manager Natalie Livezey
CITY OF MILPITAS
AGENDA REPORT
(AR)
Item Title: Adopt Ordinance No. 316 Approving Measure J, the City of Milpitas Public Services Reauthorization Measure (Staff Contact: Matt Cano, Assistant City Manager, 408-586-3012)
Category: Leadership and Support Services
Meeting Date: 1/7/2025
Recommendation: (1) Adopt by a 4/5 vote Ordinance No. 316 approving Measure J, the City of Milpitas Public Services Reauthorization Measure, as approved by the voters, amending Chapter 4 of Title IX of the Municipal Code to impose a Transactions and Use Tax to be administered by the California Department of Tax and Fee Administration; (2) Approve resolutions authorizing the City Manager to execute any and all documents, agreements, and instruments necessary to implement and effectuate the provisions of Measure J, including but not limited to those required for the administration and collection of the Transactions and Use Tax as established by Ordinance No. 316, and to take any other actions deemed necessary to ensure the successful implementation of this measure as approved by over 80% of the voters as well as for the review of confidential information.
BACKGROUND:
On August 4, 2020, the City Council adopted a resolution calling for the placement of City of Milpitas Public Services Measure (Measure F) on the ballot for the general election in November 2020. Measure F is a general quarter-cent (¼ ¢) local transactions and use tax that can be used for any lawful purpose, but has generally been used to maintain certain City services, including but not limited to police and fire protection; 911 emergency response and natural disaster preparation; youth, senior, and recreation services; repairing park equipment and maintaining parks and recreation centers; and attracting and retaining local businesses. This General Tax Measure was approved by the voters of the City of Milpitas on November 3, 2020 for an eight- year period, set to expire on March 31, 2029. On August 5, 2024 the Mayor and City Council unanimously adopted a resolution calling for the placement of Measure J on the November 5, 2024 General Municipal Election ballot which would extend Measure F by an additional eight years.
ANALYSIS:
On November 5, 2024 the residents of Milpitas overwhelmingly supported Measure J – the City of Milpitas Public Services Measure – with over 80% of voters in support of the Measure. To implement Measure J, the Mayor and City Council must adopt the final ordinance by a 4/5 vote. The ordinance proposed for adoption is the same ordinance approved by the voters of Milpitas on November 5, 2024 and is included as an attachment to this Agenda Report.
POLICY ALTERNATIVE(S):
Alternative: Do not approve the ordinance.
Pros: None
Cons: The City will potentially forgo an opportunity for the extension of the sales tax measure, which voters have overwhelmingly supported. This funding is critical to maintain the City’s finances and services, including 911 emergency response, police and fire protection; repairing streets/fixing potholes; tracking/investigating
crime; addressing homeless encampments/affordable housing needs; natural disaster/emergency preparation; maintaining neighborhood parks/public infrastructure.
Reason not recommended: As indicated in the City Manager’s Transmittal Letter to the City Council in the FY 2024-25 Adopted Budget, the City is facing significant fiscal challenges over the next decade. By ensuring the City maintains the quarter-cent sales tax, these fiscal challenges can be mitigated. Absent this ongoing funding, the City would likely face a significant structural deficit with service level reductions after the expiration of the funding in April 2029.
FISCAL IMPACT:
This action does not have any additional cost impacts. The City of Milpitas FY 2024-25 Adopted Budget projects sales tax revenues of $29.6 million from the Bradley-Burns uniform local sales and use tax, and $7.3 million from the Measure F local transactions and use tax.
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):
The action is a fiscal activity of the City government or an action to create a City government funding mechanism that does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment and is not a project pursuant to Cal. Code of Regs., tit. 14, § 15378.
RECOMMENDATION:
(1) Adopt by a 4/5 vote Ordinance No. 316 approving Measure J, the City of Milpitas Public Services Reauthorization Measure, as approved by the voters, amending Chapter 4 of Title IX of the Municipal Code to impose a Transactions and Use Tax to be administered by the California Department of Tax and Fee Administration.
(2) Approve resolutions authorizing the City Manager to execute any and all documents, agreements, and instruments necessary to implement and effectuate the provisions of Measure J, including but not limited to those required for the administration and collection of the Transactions and Use Tax as established by Ordinance No. 316, and to take any other actions deemed necessary to ensure the successful implementation of this measure as approved by over 80% of the voters and for the review of confidential information.
ATTACHMENT(S):
(a) Ordinance No. 316
(b) Resolution Appointing City Manager to Execute Agreements (c) Resolution For Examination of Confidential Records
1 ORDINANCE NO. 316
AN ORDINANCE OF THE CITY OF MILPITAS ADDING CHAPTER 5 TO TITLE
IX OF THE MUNICIPAL CODE TO IMPOSE A TRANSACTIONS AND USE TAX
TO BE ADMINISTERED BY THE CALIFORNIA DEPARTMENT OF TAX AND
FEE ADMINISTRATION
THE PEOPLE AND THE CITY COUNCIL OF THE CITY OF MILPITAS DO HEREBY ORDAIN AS FOLLOWS:
SECTION 1: Amendment. Chapter 5 (Reauthorized Transactions and Use Tax) is added to Title IX (Revenue and Taxation) of the Municipal Code to read as follows:
“CHAPTER 5. REAUTHORIZED TRANSACTIONS AND USE TAX
IX-5-1.01 Title
IX-5-1.02 Operative Date
IX-5-1.03 Purpose
IX-5-1.04 Contract with State
IX-5-1.05 Imposition of 0.25% Transactions Tax
IX-5-1.06 Place of Sale
IX-5-1.07 Imposition of 0.25% Use Tax
IX-5-1.08 Adoption of Provisions of State Law
IX-5-1.09 Limitations on Adoption of State Law and Collection of Use Taxes IX-5-1.10 Permit Not Required
IX-5-1.11 Exemptions and Exclusions
IX-5-1.12 Amendments
IX-5-1.13 Enjoining Collection Forbidden
IX-5-1.14 Accountability and Use of Tax Proceeds
IX-5-1.15 Duration of Tax
IX-5-1.01 Title
This chapter shall be known as the City of Milpitas Public Services Transactions and Use Tax Reauthorization Ordinance of 2024. The City of Milpitas hereinafter shall be called "City." This chapter shall be applicable in the incorporated territory of the City.
IX-5-1.02 Operative Date
"Operative Date" means April 1, 2029.
IX-5-1.03 Purpose
This chapter is adopted to achieve the following, among other purposes, and directs that the provisions hereof be interpreted in order to accomplish those purposes:
A. To impose a retail transactions and use tax in accordance with the provisions of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code and Section 7285.9 of
2 Part 1.7 of Division 2 which authorizes the City to adopt this ordinance which shall be operative if a majority of the electors voting on the measure vote to approve the imposition of the tax at an election called for that purpose.
B. To adopt a retail transactions and use tax ordinance that incorporates provisions identical to those of the Sales and Use Tax Law of the State of California insofar as those provisions are not inconsistent with the requirements and limitations contained in Part 1.6 of Division 2 of the Revenue and Taxation Code.
C. To adopt a retail transactions and use tax ordinance that imposes a tax and provides a measure therefore that can be administered and collected by the California Department of Tax and Fee Administration in a manner that adapts itself as fully as practicable to, and requires the least possible deviation from, the existing statutory and administrative procedures followed by the California Department of Tax and Fee Administration in administering and collecting the California State Sales and Use Taxes.
D. To adopt a retail transactions and use tax ordinance that can be administered in a manner that will be, to the greatest degree possible, consistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, minimize the cost of collecting the transactions and use taxes, and at the same time, minimize the burden of record keeping upon persons subject to taxation under the provisions of this ordinance.
IX-5-1.04 Contract with State
Prior to the operative date, the City shall contract with the California Department of Tax and Fee Administration to perform all functions incident to the administration and operation of the transactions and use tax imposed by this chapter; provided, that if the City shall not have contracted with the California Department of Tax and Fee Administration prior to the operative date, it shall nevertheless so contract and in such a case the operative date shall be the first day of the first calendar quarter following the execution of such a contract.
IX-5-1.05 Imposition of 0.25% Transactions Tax
For the privilege of selling tangible personal property at retail, a tax is hereby imposed upon all retailers in the incorporated territory of the City at the rate of 0.25% of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in said territory on and after the operative date of this Chapter.
IX-5-1.06 Place of Sale
For the purposes of this chapter, all retail sales are consummated at the place of business of the retailer unless the tangible personal property sold is delivered by the retailer or his agent to an out-of-state destination or to a common carrier for delivery to an out-of-state destination. The gross receipts from such sales shall include delivery charges, when such charges are subject to the state sales and use tax, regardless of the place to which delivery is made. In the event a retailer has no permanent place of business in the State or has more than one place of business, the place or places at which the retail sales are consummated shall be determined under rules and regulations to be prescribed and adopted by the California Department of Tax and Fee Administration.
3 IX-5-1.07 Imposition of 0.25% Use Tax
An excise tax is hereby imposed on the storage, use or other consumption in the City of tangible personal property purchased from any retailer on and after the operative date of this chapter for storage, use or other consumption in said territory at the rate of 0.25% of the sales price of the property. The sales price shall include delivery charges when such charges are subject to state sales or use tax regardless of the place to which delivery is made.
IX-5-1.08 Adoption of Provisions of State Law
Except as otherwise provided in this chapter and except insofar as they are inconsistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, all of the provisions of Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code are hereby adopted and made a part of this chapter as though fully set forth herein.
IX-5-1.09 Limitations on Adoption of State Law and Collection of Use Taxes In adopting the provisions of Part 1 of Division 2 of the Revenue and Taxation Code:
A. Wherever the State of California is named or referred to as the taxing agency, the name of this City shall be substituted therefor. However, the substitution shall not be made when:
1. The word "State" is used as a part of the title of the State Controller, State Treasurer, State Treasury, or the Constitution of the State of California.
2. The result of that substitution would require action to be taken by or against this City or any agency, officer, or employee thereof rather than by or against the California Department of Tax and Fee Administration, in performing the functions incident to the administration or operation of this Chapter.
3. In those sections, including, but not necessarily limited to sections referring to the exterior boundaries of the State of California, where the result of the substitution would be to:
a. Provide an exemption from this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not otherwise be exempt from this tax while such sales, storage, use or other consumption remain subject to tax by the State under the provisions of Part 1 of Division 2 of the Revenue and Taxation Code, or; b. Impose this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not be subject to tax by the state under the said provision of that code.
4. In Sections 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 or 6828 of the Revenue and Taxation Code.
B. The word "City" shall be substituted for the word "State" in the phrase "retailer engaged in business in this State" in Section 6203 and in the definition of that phrase in Section 6203.
4 1. “A retailer engaged in business in the District” shall also include any retailer that, in the preceding calendar year or the current calendar year, has total combined sales of tangible personal property in this state or for delivery in the State by the retailer and all persons related to the retailer that exceeds five hundred thousand dollars ($500,000). For purposes of this section, a person is related to another person if both persons are related to each other pursuant to Section 267(b) of Title 26 of the United States Code and the regulations thereunder
IX-5-1.10 Permit Not Required
If a seller's permit has been issued to a retailer under Section 6067 of the Revenue and Taxation Code, an additional transactor's permit shall not be required by this chapter.
IX-5-1.11 Exemptions and Exclusions
A. There shall be excluded from the measure of the transactions tax and the use tax the amount of any sales tax or use tax imposed by the State of California or by any city, city and county, or county pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law or the amount of any state- administered transactions or use tax.
B. There are exempted from the computation of the amount of transactions tax the gross receipts from:
1. Sales of tangible personal property, other than fuel or petroleum products, to operators of aircraft to be used or consumed principally outside the county in which the sale is made and directly and exclusively in the use of such aircraft as common carriers of persons or property under the authority of the laws of this State, the United States, or any foreign government.
2. Sales of property to be used outside the City which is shipped to a point outside the City, pursuant to the contract of sale, by delivery to such point by the retailer or his agent, or by delivery by the retailer to a carrier for shipment to a consignee at such point. For the purposes of this paragraph, delivery to a point outside the City shall be satisfied:
a.With respect to vehicles (other than commercial vehicles) subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, and undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code by registration to an out-of-City address and by a declaration under penalty of perjury, signed by the buyer, stating that such address is, in fact, his or her principal place of residence; and
b. With respect to commercial vehicles, by registration to a place of business out- of-City and declaration under penalty of perjury, signed by the buyer, that the vehicle will be operated from that address.
3. The sale of tangible personal property if the seller is obligated to furnish the property for a fixed price pursuant to a contract entered into prior to the operative date of this chapter.
4. A lease of tangible personal property which is a continuing sale of such property, for any period of time for which the lessor is obligated to lease the property for an amount fixed by the lease prior to the operative date of this chapter.
5 5. For the purposes of subparagraphs (3) and (4) of this section, the sale or lease of tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised.
C. There are exempted from the use tax imposed by this chapter, the storage, use or other consumption in this City of tangible personal property:
1. The gross receipts from the sale of which have been subject to a transactions tax under any state-administered transactions and use tax ordinance.
2. Other than fuel or petroleum products purchased by operators of aircraft and used or consumed by such operators directly and exclusively in the use of such aircraft as common carriers of persons or property for hire or compensation under a certificate of public convenience and necessity issued pursuant to the laws of this State, the United States, or any foreign government. This exemption is in addition to the exemptions provided in Sections 6366 and 6366.1 of the Revenue and Taxation Code of the State of California.
3. If the purchaser is obligated to purchase the property for a fixed price pursuant to a contract entered into prior to the operative date of this chapter.
4. If the possession of, or the exercise of any right or power over, the tangible personal property arises under a lease which is a continuing purchase of such property for any period of time for which the lessee is obligated to lease the property for an amount fixed by a lease prior to the operative date of this chapter.
5. For the purposes of subparagraphs (3) and (4) of this section, storage, use, or other consumption, or possession of, or exercise of any right or power over, tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised.
6. Except as provided in subparagraph (7), a retailer engaged in business in the City shall not be required to collect use tax from the purchaser of tangible personal property, unless the retailer ships or delivers the property into the City or participates within the City in making the sale of the property, including, but not limited to, soliciting or receiving the order, either directly or indirectly, at a place of business of the retailer in the City or through any representative, agent, canvasser, solicitor, subsidiary, or person in the City under the authority of the retailer.
7. "A retailer engaged in business in the City" shall also include any retailer of any of the following: vehicles subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, or undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code. That retailer shall be required to collect use tax from any purchaser who registers or licenses the vehicle, vessel, or aircraft at an address in the City.
D. Any person subject to use tax under this chapter may credit against that tax any transactions tax or reimbursement for transactions tax paid to a district imposing, or retailer liable for a
6 transactions tax pursuant to Part 1.6 of Division 2 of the Revenue and Taxation Code with respect to the sale to the person of the property the storage, use or other consumption of which is subject to the use tax.
IX-5-1.12 Amendments
All amendments subsequent to the effective date of this chapter to Part 1 of Division 2 of the Revenue and Taxation Code relating to sales and use taxes and which are not inconsistent with Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, and all amendments to Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, shall automatically become a part of this chapter, provided however, that no such amendment shall operate so as to affect the rate of tax imposed by this chapter.
IX-5-1.13 Enjoining Collection Forbidden
No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action or proceeding in any court against the State or the City, or against any officer of the State or the City, to prevent or enjoin the collection under this chapter, or Part 1.6 of Division 2 of the Revenue and Taxation Code, of any tax or any amount of tax required to be collected.
IX-5-1.14 Accountability and Use of Tax Proceeds
Proceeds of the tax imposed by this chapter shall be deposited in the general fund of the City and shall be available for any lawful purpose. Once deposited, such proceeds shall be audited as part of City’s annual independent audit of the general fund and shall be accounted for in the City’s Consolidated Annual Financial Report.
IX-5-1.15 Duration of Tax
The tax imposed by this Chapter shall continue for a period of eight (8) years following the Operative Date and shall thereafter be of no further force and effect, unless said tax is extended or renewed by Milpitas voters at a future general or special municipal election lawfully called for that purpose.” SECTION 2: Relation to Existing Tax. Chapter 4 of Title IX of the Municipal Code currently imposes a 0.25% transactions and use tax that terminates on March 31, 2029. The intent of this Ordinance is to reauthorize the transactions and use tax for an additional eight years, until March 31, 2037.
SECTION 3: Severability. If any provision of this Ordinance or the application thereof to any person or circumstance is held invalid, the remainder of the Ordinance and the application of such provision to other persons or circumstances shall not be affected thereby.
SECTION 4: Election Required. This Ordinance shall not become operative unless and until it is approved both (i) by the voters by the City Council by a vote of two thirds of all of its members and (ii) by a majority vote at the November 5, 2024 General Municipal Election. Nothing in this Ordinance shall be interpreted to repeal the existing Chapter 4 of Title IX of the Municipal Code.
SECTION 5: Amendment. This Ordinance may be amended by the City Council. However, no such amendment can increase the rate of the tax imposed by this Ordinance or make a change that is inconsistent with the laws of the State that govern transactions and use taxes.
7 SECTION 6: Effective Date. This Ordinance relates to the levying and collecting of a transactions and use tax and shall take effect immediately. However the operative date for the tax imposed by this Ordinance tax shall be governed by the terms set forth elsewhere in this Ordinance.
RESOLUTION NO. ________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MILPITAS
AUTHORIZING THE CITY MANAGER TO EXECUTE AGREEMENTS WITH THE
CALIFORNIA DEPARTMENT OF TAX AND FEE ADMINISTRATION FOR IMPLEMENTATION OF A LOCAL TRANSACTIONS AND USE TAX.
WHEREAS, on January 7, 2025, the City Council will consider Ordinance No. 316 amending the City Municipal Code and providing for a local transactions and use tax; and WHEREAS, the California Department of Tax and Fee Administration (Department) administers and collects the transactions and use taxes for all applicable jurisdictions within the state; and WHEREAS, the Department will be responsible to administer and collect the transactions and use tax for the City; and
WHEREAS, the Department requires that the City enter into a “Preparatory Agreement” and an “Administration Agreement” prior to implementation of said taxes, and WHEREAS, the Department requires that the City Council authorize the agreements; 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 of the City of Milpitas that the “Preparatory Agreement” attached as Exhibit A and the “Administrative Agreement” attached as Exhibit B are hereby approved and the City Manager is hereby authorized to execute each agreement.
PASSED AND ADOPTED this ______ day of _________, 2025, 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
2 Resolution No. xxxx
EXHIBIT A
AGREEMENT FOR PREPARATION TO ADMINISTER AND OPERATE
CITY'S TRANSACTIONS AND USE TAX ORDINANCE
In order to prepare to administer a transactions and use tax ordinance adopted in accordance with the provision of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code, the City of Milpitas, hereinafter called City, and the CALIFORNIA DEPARTMENT OF TAX AND FEE ADMINISTRATION, hereinafter called Department, do agree as follows:
1. The Department agrees to enter into work to prepare to administer and operate a transactions and use tax in conformity with Part 1.6 of Division 2 of the Revenue and Taxation Code which has been approved by a majority of the electors of the City and whose ordinance has been adopted by the City.
2. City agrees to pay to the Department at the times and in the amounts hereinafter specified all of the Department's costs for preparatory work necessary to administer the City's transactions and use tax ordinance. The Department's costs for preparatory work include costs of developing procedures, programming for data processing, developing and adopting appropriate regulations, designing and printing forms, developing instructions for the Department's staff and for taxpayers, and other appropriate and necessary preparatory costs to administer a transactions and use tax ordinance. These costs shall include both direct and indirect costs as specified in Section 11256 of the Government Code.
3. Preparatory costs may be accounted for in a manner which conforms to the internal accounting and personnel records currently maintained by the Department. The billings for costs may be presented in summary form. Detailed records of preparatory costs will be retained for audit and verification by the City.
4. Any dispute as to the amount of preparatory costs incurred by the Department shall be referred to the State Director of Finance for resolution, and the Director's decision shall be final.
5. Preparatory costs incurred by the Department shall be billed by the Department periodically, with the final billing within a reasonable time after the operative date of the ordinance. City shall pay to the Department the amount of such costs on or before the last day of the next succeeding month following the month when the billing is received.
6. The amount to be paid by City for the Department's preparatory costs shall not exceed one hundred seventy-five thousand dollars ($175,000) (Revenue and Taxation Code Section 7272.)
3 Resolution No. xxxx
7. Communications and notices may be sent by first class United States mail or through email at [email protected]. If and when communications and notices may include confidential information, communications and notices must be sent through encrypted email at [email protected] or by mail.
Communications and notices to be sent to the Department shall be addressed to:
California Department of Tax and Fee Administration
P.O. Box 942879 MIC: 27
Sacramento, California 94279-0027
Attention: Administrator
Local Revenue Branch
Communications and notices to be sent to City shall be addressed to:
City of Milpitas
455 E. Calaveras Blvd
Milpitas, CA 95035
Attn: Finance Director
8. The date of this agreement is the date on which it is approved by the Department of General Services. This agreement shall continue in effect until the preparatory work necessary to administer City's transactions and use tax ordinance has been completed and the Department has received all payments due from City under the terms of this agreement.
CITY OF MILPITAS
CALIFORNIA DEPARTMENT OF
TAX AND FEE ADMINISTRATION
By: By:
(Signature) Administrator
Local Revenue Branch
Ned Thomas
(Typed Name) Date:
City Manager
(Title)
Date:
4 Resolution No. xxxx
EXHIBIT B
AGREEMENT FOR STATE ADMINISTRATION
OF CITY TRANSACTIONS AND USE TAXES
The City Council of the City of Milpitas has adopted, and the voters of the City of Milpitas (hereafter called “City” or “District”) have approved by the required majority vote, the City of Milpitas Transactions and Use Tax Ordinance (hereafter called “Ordinance”), a copy of which is attached hereto.
To carry out the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code and the Ordinance, the California State Department of Tax and Fee Administration, (hereinafter called the “Department”) and the City do agree as follows:
ARTICLE I
DEFINITIONS
Unless the context requires otherwise, wherever the following terms appear in the Agreement, they shall be interpreted to mean the following:
1. "District taxes" shall mean the transactions and use taxes, penalties, and interest imposed under an ordinance specifically authorized by Revenue and Taxation code Section 7285.9 of Part 1.7 of Division 2, and in compliance with Part 1.6, Division 2 of the Revenue and Taxation Code.
2. "City Ordinance" shall mean the City's Transactions and Use Tax Ordinance referred to above and attached hereto, Ordinance No. 316, as amended from time to time, or as deemed to be amended from time to time pursuant to Revenue and Taxation Code Section 7262.2.
ARTICLE II
ADMINISTRATION AND COLLECTION
OF CITY TAXES
A.Administration. The Department and City agree that the Department shall perform exclusively all functions incident to the administration and operation of the City Ordinance.
5 Resolution No. xxxx
B. Other Applicable Laws. City agrees that all provisions of law applicable to the administration and operation of the Department Sales and Use Tax Law which are not inconsistent with Part 1.6 of Division 2 of the Revenue and Taxation Code shall be applicable to the administration and operation of the City Ordinance. City agrees that money collected pursuant to the City Ordinance may be deposited into the State Treasury to the credit of the Retail Sales Tax Fund and may be drawn from that Fund for any authorized purpose, including making refunds, compensating and reimbursing the Department pursuant to Article IV of this Agreement, and transmitting to City the amount to which City is entitled.
C.Transmittal of money.
1. For the period during which the tax is in effect, and except as otherwise provided herein, all district taxes collected under the provisions of the City Ordinance shall be transmitted to City periodically as promptly as feasible, but not less often than twice in each calendar quarter.
2. For periods subsequent to the expiration date of the tax whether by City’s self-imposed limits or by final judgment of any court of the State of California holding that City’s ordinance is invalid or void, all district taxes collected under the provisions of the City Ordinance shall be transmitted to City not less than once in each calendar quarter.
3. Transmittals may be made by mail or electronic funds transfer to an account of the City designated and authorized by the City. A statement shall be furnished at least quarterly indicating the amounts withheld pursuant to Article IV of this Agreement.
D.Rules. The Department shall prescribe and adopt such rules and regulations as in its judgment are necessary or desirable for the administration and operation of the City Ordinance and the distribution of the district taxes collected thereunder.
E. Preference. Unless the payor instructs otherwise, and except as otherwise provided in this Agreement, the Department shall give no preference in applying money received for state sales and use taxes, state-administered local sales and use taxes, and district transactions and use taxes owed by a taxpayer, but shall apply moneys collected to the satisfaction of the claims of the State, cities, counties, cities and counties, redevelopment agencies, other districts, and City as their interests appear.
F. Security. The Department agrees that any security which it hereafter requires to be furnished by taxpayers under the State Sales and Use Tax Law will be upon such terms that it also will be available
6 Resolution No. xxxx
for the payment of the claims of City for district taxes owing to it as its interest appears. The Department shall not be required to change the terms of any security now held by it, and City shall not participate in any security now held by the Department.
G. Records of the Department.
When requested by resolution of the legislative body of the City under section 7056 of the Revenue and Taxation Code, the Department agrees to permit authorized personnel of the City to examine the records of the Department, including the name, address, and account number of each seller holding a seller’s permit with a registered business location in the City, pertaining to the ascertainment of transactions and use taxes collected for the City. Information obtained by the City from examination of the Department's records shall be used by the City only for purposes related to the collection of transactions and use taxes by the Department pursuant to this Agreement.
H. Annexation. City agrees that the Department shall not be required to give effect to an annexation, for the purpose of collecting, allocating, and distributing District transactions and use taxes, earlier than the first day of the calendar quarter which commences not less than two months after notice to the Department. The notice shall include the name of the county or counties annexed to the extended City boundary. In the event the City shall annex an area, the boundaries of which are not coterminous with a county or counties, the notice shall include a description of the area annexed and two maps of the City showing the area annexed and the location address of the property nearest to the extended City boundary on each side of every street or road crossing the boundary.
ARTICLE III
ALLOCATION OF TAX
A. Allocation. In the administration of the Department's contracts with all districts that impose transactions and use taxes imposed under ordinances, which comply with Part 1.6 of Division 2 of the Revenue and Taxation Code:
1. Any payment not identified as being in payment of liability owing to a designated district or districts may be apportioned among the districts as their interest appear, or, in the discretion of the Department, to all districts with which the Department has contracted using ratios reflected by the distribution of district taxes collected from all taxpayers.
7 Resolution No. xxxx
2. All district taxes collected as a result of determinations or billings made by the Department, and all amounts refunded or credited may be distributed or charged to the respective districts in the same ratio as the taxpayer's self-declared district taxes for the period for which the determination, billing, refund or credit applies.
B. Vehicles, Vessels, and Aircraft. For the purpose of allocating use tax with respect to vehicles, vessels, or aircraft, the address of the registered owner appearing on the application for registration or on the certificate of ownership may be used by the Department in determining the place of use.
ARTICLE IV
COMPENSATION
The City agrees to pay to the Department as the State's cost of administering the City Ordinance such amount as is provided for by law. Such amounts shall be deducted from the taxes collected by the Department for the City.
ARTICLE V
MISCELLANEOUS PROVISIONS
A. Communications. Communications and notices may be sent by first class United States mail to the addresses listed below, or to such other addresses as the parties may from time to time designate or through email at [email protected]. If and when communications and notices may include confidential information, communications and notices must be sent through encrypted email at [email protected] or by mail.
Communications and notices to be sent to the Department shall be addressed to:
California State Department of Tax and Fee Administration P.O. Box 942879
Sacramento, California 94279-0027
Attention: Administrator
Local Revenue Branch
8 Resolution No. xxxx
Communications and notices to be sent to the City shall be addressed to:
City of Milpitas
455 E. Calaveras Blvd
Milpitas, CA 95035
Attn: Finance Director
Unless otherwise directed, transmittals of payment of District transactions and use taxes will be sent to the address above.
B. Term. The date of this Agreement is the date on which it is approved by the Department of General Services. The Agreement shall take effect on ______________. This Agreement shall continue until December 31 next following the expiration date of the City Ordinance, and shall thereafter be renewed automatically from year to year until the Department completes all work necessary to the administration of the City Ordinance and has received and disbursed all payments due under that Ordinance.
C. Notice of Repeal of Ordinance. City shall give the Department written notice of the repeal of the City Ordinance not less than 110 days prior to the operative date of the repeal.
ARTICLE VI
ADMINISTRATION OF TAXES IF THE
ORDINANCE IS CHALLENGED AS BEING INVALID
A. Impoundment of funds.
1. When a legal action is begun challenging the validity of the imposition of the tax, the City shall deposit in an interest-bearing escrow account, any proceeds transmitted to it under Article II. C., until a court of competent jurisdiction renders a final and non-appealable judgment that the tax is valid.
2. If the tax is determined to be unconstitutional or otherwise invalid, the City shall transmit to the Department the moneys retained in escrow, including any accumulated interest, within ten days of the judgment of the trial court in the litigation awarding costs and fees becoming final and non-appealable.
9 Resolution No. xxxx
B. Costs of administration. Should a final judgment be entered in any court of the State of California, holding that City's Ordinance is invalid or void, and requiring a rebate or refund to taxpayers of any taxes collected under the terms of this Agreement, the parties mutually agree that:
1. Department may retain all payments made by City to Department to prepare to administer the City Ordinance.
2. City will pay to Department and allow Department to retain Department's cost of administering the City Ordinance in the amounts set forth in Article IV of this Agreement.
3. City will pay to Department or to the State of California the amount of any taxes plus interest and penalties, if any, that Department or the State of California may be required to rebate or refund to taxpayers.
4. City will pay to Department its costs for rebating or refunding such taxes, interest, or penalties.
Department's costs shall include its additional cost for developing procedures for processing the rebates or refunds, its costs of actually making these refunds, designing and printing forms, and developing instructions for Department's staff for use in making these rebates or refunds and any other costs incurred by Department which are reasonably appropriate or necessary to make those rebates or refunds. These costs shall include Department's direct and indirect costs as specified by Section 11256 of the Government Code.
5. Costs may be accounted for in a manner, which conforms to the internal accounting, and personnel records currently maintained by the Department. The billings for such costs may be presented in summary form. Detailed records will be retained for audit and verification by City.
6. Any dispute as to the amount of costs incurred by Department in refunding taxes shall be referred to the State Director of Finance for resolution and the Director's decision shall be final.
7. Costs incurred by Department in connection with such refunds shall be billed by Department on or before the 25th day of the second month following the month in which the judgment of a court of the State of California holding City's Ordinance invalid or void becomes final. Thereafter Department shall bill City on or before the 25th of each month for all costs incurred by Department for the preceding
10 Resolution No. xxxx
calendar month. City shall pay to Department the amount of such costs on or before the last day of the succeeding month and shall pay to Department the total amount of taxes, interest, and penalties refunded or paid to taxpayers, together with Department costs incurred in making those refunds.
CITY OF MILPITAS
CALIFORNIA DEPARTMENT OF
TAX AND FEE ADMINISTRATION
By: By:
(Signature) Administrator
Local Revenue Branch
Ned Thomas
(Typed Name) Date:
City Manager
(Title)
Date:
RESOLUTION NO. XXXX
A RESOLUTION OF THE CITY OF MILPITAS AUTHORIZING EXAMINATION OF
SALES OR TRANSACTIONS AND USE TAXES RECORDS
WHEREAS, pursuant to Ordinance Number 316 of the City of Milpitas (hereinafter referred to as “City”), and Revenue and Taxation Code section 7270, the City entered into a contract with the California Department of Tax and Fee Administration (Department) to perform all functions incident to the administration and collection of transactions and use taxes; and
WHEREAS, the City Council of the City deems it desirable and necessary for authorized officers, employees and representatives of the City to examine confidential sales or transactions and use tax records of the Department pertaining to transactions and use taxes collected by the Department for the City pursuant to that contract; and
WHEREAS, Section 7056 of the California Revenue and Taxation Code sets forth certain requirements and conditions for the disclosure of Department records, and Section 7056.5 of the California Revenue and Taxation Code establishes criminal penalties for the unlawful disclosure of information contained in, or derived from, the sales or transactions and use tax records of the Department;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF THE CITY OF MILPITAS HEREBY RESOLVES AS FOLLOWS:
Section 1. That the Finance Director or other officer or employee of the City designated in writing by the Finance Director to the California Department of Tax and Fee Administration is hereby appointed to represent the City with authority to examine sales or transactions and use tax records of the Department pertaining to transactions and use taxes collected for the City by the Department pursuant to the contract between the City and the Department.
Section 2.
The information obtained by examination of Department records shall be used only for purposes related to the collection of City transactions and use taxes by the Department pursuant to that contract, and for purposes related to the following governmental functions of the City:
a) functions related to sales, transactions, and/or use tax collection or administration; and b) functions related to budgeting and forecasting of revenue; c) functions related to economic development and City strategic initiatives; and d) functions related to the detection of misallocations and deficiencies.
The information obtained by examination of Department records shall be used only for those governmental functions of the City listed above.
Section 3. That HdL Companies (aka Hinderliter de Llamas and Associates) is hereby designated to examine the sales or transactions and use tax records of the Department pertaining to transactions and use taxes collected for the City by the Department. The person or entity designated by this section meets all of the following conditions, which are also included in the contract between the City and HDL Companies:
a) has an existing contract with the City to examine those sales or transactions and use tax records; b) is required by that contract to disclose information contained in, or derived from, those sales or transactions and use tax records only to the officer or employee authorized under Section 1 of this resolution to examine the information.
2 Resolution No. xxxx
c) is prohibited by that contract from performing consulting services for a retailer during the term of that contract;
d) is prohibited by that contract from retaining the information contained in or derived from those sales or transactions and use tax records, after that contract has expired.
Section 4.
That this resolution supersedes all prior resolutions of the City Council of the City adopted pursuant to subdivision (b) of Revenue and Taxation Code section 7056.
BE IT FURTHER RESOLVED that the information obtained by examination of Department records shall be used only for purposes related to the collection of City transactions and use taxes by the Department pursuant to the contract between the City and the Department and for those purposes relating to the governmental functions of the City listed in Section 2 of this resolution; 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 foregoing resolution was duly introduced, approved, and adopted by the City Council of the City, at a regular meeting of said City Council held on the 7th day of January, 2025, by the following roll-call vote:
PASSED AND ADOPTED this ______ day of _________, 2025, 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