Milpitas City Council
March 4, 2025

March 4, 2025 Milpitas City Council Agenda Page 1

REGULAR MEETING OF THE MILPITAS

CITY COUNCIL
AGENDA
TUESDAY, MARCH 4, 2025
CITY COUNCIL CHAMBER, 455 E. CALAVERAS BLVD, MILPITAS, CA 6:00 PM (CLOSED SESSION)
7:00 PM (PUBLIC BUSINESS)
For assistance in the following languages, you may call:

Đối với Việt Nam, gọi 408-586-2400
Para sa Tagalog, tumawag sa 408-586-3051
Para español, llame 408-586-3072
* To access written translation during the meeting, scan the QR Code.

The City Council meeting is held in the City Council Chamber at City Hall, 455 E. Calaveras Blvd., Milpitas and via teleconference/Zoom webinar.

You may watch the Council meeting without providing public comment by accessing it via links here.

Meeting shall be livestreamed - Go to:

Facebook: https://www.facebook.com/CityofMilpitas/
YouTube: https://www.milpitas.gov/youtube
Web Streaming: https://www.milpitas.gov/webstreaming

PUBLIC COMMENT INSTRUCTIONS
Oral public comments may only be provided live during the City Council meeting in person, unless the City Council approves remote public comment. All comments provided shall be limited to three minutes or less as determined by the Mayor. All members of the public will be limited to one comment per agenda item, and one comment for non-agenda items. Members of the public may submit written comments by email to [email protected]
The meeting will be streamed via Zoom for viewing purposes only unless the City Council approves remote public comment. To watch via Zoom, please register at:
https://ci-milpitas-ca-gov.zoom.us/webinar/register/WN_D431XVcxQa-k89BliEtU5g NOTE: If a member of the public wishes to share any presentation materials for Council consideration, they must be submitted to the Clerk’s Office by email to [email protected] by 12:00 p.m. on the day of the meeting. No presentations will be accepted in person in the Council Chambers.

MILPITAS CITY COUNCIL CODE OF CONDUCT
•Be respectful and courteous (words, tone, and body language). •Model civility.
•Avoid surprises.
•Praise publicly and criticize privately.
•Focus on the issue, not the person.
•Refrain from using electronic devices while on the Council dais. •Disclose conflicts of interest and affiliations related to agenda items. •Separate governing from campaigning.
•The Council speaks with one voice after making policy on issues. •Respect the line between policy and administration.
•Council will hold one another accountable to comply with this Code of Conduct.

March 4, 2025 Milpitas City Council Agenda Page 2
CALL MEETING TO ORDER by Mayor and ROLL CALL by City Clerk (6:00 PM)

ADJOURN TO CLOSED SESSION
(a) PUBLIC EMPLOYEE APPOINTMENT AND HIRING
Pursuant to Government Code Section 54957(b)(1):

Employee Position: Interim City Manager.

CLOSED SESSION ANNOUNCEMENT:

Report on action taken in Closed Session, if required per Government Code Section 54957.1, including the vote or abstention of each member present.

PLEDGE OF ALLEGIANCE
INVOCATION (Mayor Montano)
PRESENTATIONS (7:05 PM)
● Bill Hare (Certificate)
● National Women's History Month (Proclamation)
● Youth Art Month (Proclamation)
PUBLIC FORUM (7:15 PM)
Members of the public are invited to speak on any item that does not appear on today’s agenda. Comments will be limited to three minutes or less at the Mayor’s discretion. When called to speak, you are encouraged to state your name for the record.

As an item not listed on the agenda, no action can be taken, however the City Council may instruct the City Manager to place the item on a future meeting agenda.

ANNOUNCEMENT OF CONFLICT OF INTEREST AND CAMPAIGN CONTRIBUTIONS

READING OF THE CITY COUNCIL CODE OF CONDUCT

APPROVAL OF AGENDA
CONSENT CALENDAR (7:20 PM)
Consent calendar items are considered to be routine and will be considered for adoption by one motion. There will be no separate discussion of these items unless a City Councilmember, member of the audience or staff requests the Council to remove an item from (or be added to) the consent calendar. Any person desiring to speak on any item on the consent calendar should ask to have that item removed from the consent calendar.

C1. Receive City Council Calendar of Meetings for March 2025 (Staff Contact: Suzanne Guzzetta, City Clerk, 408-586-3001)
Recommendation: Receive City Council Calendar of Meetings for March 2025.

C2. Approve City Council Meeting Minutes of February 11 and 18, 2025 (Staff Contact: Suzanne Guzzetta, City Clerk, 408-586-3001)
Recommendation: Approve City Council Special Meeting minutes of February 11 and 18, 2025 and Regular Meeting minutes of February 18, 2025.

C3. Receive the Preview List of Anticipated Items for the Next Regular City Council Meeting (Staff Contact: Suzanne Guzzetta, City Clerk, 408-586-3001)

March 4, 2025 Milpitas City Council Agenda Page 3
Recommendation: Receive the list of anticipated agenda items for the next regular City Council meeting.

C4. Receive and Review the List of Agenda Items Requested by City Councilmembers (Staff Contact: Suzanne Guzzetta, City Clerk, 408-586-3001)
Recommendation: Receive the list of items that have been requested by City Councilmembers and received consensus in previous meetings to date.

C5. Authorize and Approve Travel Requests to Sacramento, California, by Mayor Montano, Councilmember Chua, Councilmember Lien, and Councilmember Lam to Attend the League of California Cities 2025 City Leaders Summit from April 23 to 25, 2025 (Staff Contact: Matt Cano, Assistant City Manager, 408-586-3012)
Recommendation: Authorize and approve travel to Sacramento, California, by Mayor Carmen Montano, Councilmember Evelyn Chua, Councilmember Hon Lien, and Councilmember William Lam to attend the League of California Cities 2025 City Leaders Summit from April 23 to 25, 2025, for a total estimated amount of $6,621, budgeted under the Individual Elected Official Allocation for Conferences/Meetings/Trainings.

C6. Adopt a Resolution Expressing Support for the City of Milpitas to Fully Fund Metro Tango Subdistrict Park from TASP Impact Fees per the Outdoor Recreation Legacy Partnership Grant Application Requirement (Staff Contact: Christian Di Renzo, Public Works Director, 408-586- 2602; and Michael Silveira, City Engineer, 408-586-3303) Recommendation: Adopt a resolution expressing support by the City of Milpitas to fully fund Metro Tango Subdistrict Park, Project No. 2023, in the amount of $10 million from TASP Impact Fees per the Outdoor Recreation Legacy Partnership Grant Application requirement.

C7. Adopt a Resolution Initiating Proceedings for the Annual Levy and Collection of Assessments and Ordering the Preparation of the Annual Engineer’s Report for Landscaping and Lighting Maintenance Assessment District No. 95-1, McCarthy Ranch, for Fiscal Year 2025-26 (Staff Contact: Christian Di Renzo, Public Works Director, 408-586-2602; and Michael Silveira, City Engineer, 408-586-3303)
Recommendation: Adopt a resolution initiating proceedings for the annual levy and collection of assessments and ordering the preparation of the Annual Engineer’s Report for Landscaping and Lighting Maintenance Assessment District No. 95-1, McCarthy Ranch, for Fiscal Year 2025-26.

C8. Adopt a Resolution Initiating Proceedings for the Annual Levy and Collection of Assessments and Ordering the Preparation of the Annual Engineer’s Report for Landscaping and Lighting Maintenance Assessment District No. 98-1, Sinclair Horizon, for Fiscal Year 2025-26 (Staff Contact: Christian Di Renzo, Public Works Director, 408-586-2602; and Michael Silveira, City Engineer, 408-586-3303)
Recommendation: Adopt a resolution initiating proceedings for the annual levy and collection of assessments and ordering the preparation of the Annual Engineer’s Report for Landscaping and Lighting Maintenance Assessment District No. 98-1, Sinclair Horizon, for Fiscal Year 2025-26.

C9. Receive an Update on the Security Improvements at the McCarthy Ranch Sewer Lift Station (Main Lift) and Determine that the Condition Continues to Constitute an Emergency (Staff Contact: Christian Di Renzo, Public Works Director, 408-586-2602)

March 4, 2025 Milpitas City Council Agenda Page 4
Recommendation: (1) Receive an update on the security improvements at the McCarthy Ranch Sewer Lift Station; and (2) Determine by a four-fifths vote that the condition continues to constitute an emergency.

PUBLIC HEARINGS (7:30 PM)
Members of the public may be allotted up to three (3) minutes or less at the Mayor’s discretion, to comment on any public hearing item. Applicants/Appellants and their representatives may be allotted up to a total of ten (10) minutes for opening statements and up to a total of five (5) minutes maximum for closing statements. Items requested/recommended for continuance are subject to Council’s consent at the meeting.

10. Adopt a Resolution Approving an Economic Development Incentive Agreement with Rivian, LLC for the Operation of an Industrial Facility Located at 755 Yosemite Drive (Staff Contact:

Alex Andrade, Economic Development & Strategic Initiatives Director, 408-586-3046; and Luz Cofresí-Howe, Finance Director, 408-585-3111)
Recommendation: (1) Conduct a public hearing as required by Government Code Section 53083 for the proposed Economic Development Subsidy Report; and (2) Adopt a resolution approving an Economic Development Incentive Agreement by and between the City of Milpitas and Rivian, LLC for the operation of an industrial facility located at 755 Yosemite Drive and authorize the City Manager to execute the agreement.

11. 2025 Weed Abatement Public Hearing and Resolution Adoption to Abate the Weeds (Staff Contact: Arthur Belton, Deputy Fire Chief/Fire Marshal, 408-586-3384) Recommendation: (1) Conduct a public hearing; and (2) Adopt a resolution directing the County of Santa Clara Consumer and Environmental Protection Agency Weed Abatement Program to abate the nuisance, keep an account of the cost, and embody such account in a report and assessment list to the City Council in accordance with the Milpitas Municipal Code.

COMMUNITY DEVELOPMENT (8:30 PM)

12. Receive an Overview of the Public Review Draft of the Full Updated Zoning Ordinance (Phase 2 of the Comprehensive Zoning Ordinance Update) and Provide Comments to Staff (Staff Contact: Jay Lee, Planning Director, 408-586-3077; and Holly Pearson, Senior Special Projects Associate, 408-609-0072)
Recommendation: Receive an overview of the Public Review Draft of the full updated Zoning Ordinance (Phase 2 of the Comprehensive Zoning Ordinance Update) and provide comments.

LEADERSHIP AND SUPPORT SERVICES (9:30 PM)

13. FY 2024-25 2nd Quarter Financial Status Report for the Quarter Ended December 31, 2024 (Staff Contact: Luz Cofresí-Howe, Finance Director, 408-586-3111) Recommendation: Review the FY 2024-25 Quarterly Financial Status Report for the quarter ended December 31, 2024.

14. Review Fiscal Year 2024-25 Mid-Year Report, Adopt a Resolution Approving FY2024-25 Mid- Year Budget Amendments, and Adopt a Resolution Amending Resolution No. 1626, the Classification Plan, to Approve and Adopt the Pay Schedule titled “New Job Classifications/Salary Table” (Staff Contact: Luz Cofresí-Howe, Finance Director, 408-586-3111) Recommendation: (1) Review Fiscal Year 2024-25 Mid-Year Report; (2) Adopt a resolution approving FY2024-25 Mid-Year Budget Amendments; and (3) Adopt a resolution amending Resolution

March 4, 2025 Milpitas City Council Agenda Page 5
No. 1626, the Classification Plan to approve and adopt the pay schedule titled “New Job Classifications/Salary Table,” and amend budgeted allocated positions.

ANNOUNCEMENTS AND FUTURE AGENDA ITEMS (10:30 PM)
Members of the City Council or City Manager may make brief announcements at this time. Members of the City Council may also suggest future agenda items. For future agenda items, the City Council shall not debate the topic or engage in discussion but shall simply state a “yes” or “no” as whether to move the item forward. If a majority of the City Council agrees to move the item forward, the City Manager shall place the item on a future agenda.

ADJOURNMENT (10:35 PM)

KNOW YOUR RIGHTS UNDER THE OPEN GOVERNMENT ORDINANCE
Government’s duty is to serve the public, reaching its decisions in full view of the public. Commissions and other City agencies exist to conduct the people’s business. This ordinance assures that deliberations are conducted before the people and City operations are open to the people’s review. For more information on your rights under the Open Government Ordinance or to report a violation, contact the City Attorney’s office at Milpitas City Hall, 455 E. Calaveras Blvd., Milpitas, CA 95035 e-mail:[email protected] / Phone: 408-586-3040 The Open Government Ordinance is codified in the Milpitas Municipal Code as Title I Chapter 310 and is available online at the City’s website www.milpitas.gov by selecting the Milpitas Municipal Code link.

Materials related to an item on this agenda submitted to the City Council after initial distribution of the agenda packet are available for public inspection at the City Clerk’s office at Milpitas City Hall, 3rd floor 455 E. Calaveras Blvd., Milpitas and on City website. City Council agendas and related materials can be viewed online: www.milpitas.gov/government/council/agenda_minutes.asp (select meeting date)

APPLY TO SERVE ON A CITY COMMISSION
Commission application forms are available online at www.milpitas.gov or at Milpitas City Hall.

Contact the City Clerk’s Office at 408-586-3001 for more information.

If you need assistance, per the Americans with Disabilities Act, for any City of Milpitas public meeting, please call the City Clerk at 408-586-3001 or send an e-mail to [email protected] prior to the meeting. You may request a larger font agenda.

Milpitas City Council Calendar
March 2025
Sunday Monday Tuesday Wednesday Thursday Friday Saturday 1 2 3
7:00 PM-Parks, Recreation & Cultural
Resources Commission (EC)
4 6:00 PM-Closed Session
7:00 PM-City Council
5 12:00 PM-Santa Clara Valley Water
District - Water Commission (CM)
1:00 PM-Santa Clara VTA Monthly
Briefing - Northeast Group (CM)
(Santa Clara)
6 5:30 PM-Santa Clara VTA Board of
Directors (CM)
5:30 PM-Milpitas Chamber of
Commerce Board (GB)
7 8
9 10
4:30 PM-Economic Development and
Trade Commission (WL)
11 4:00 PM-Milpitas HOPE
12 4:30 PM-City Council Finance
Subcommittee (CM/EC)
7:00 PM-Silicon Valley Clean Energy
Board of Directors (GB) (Cupertino)
13 4:00 PM-Santa Clara VTA Policy
Advisory Committee (EC)
4:00 PM-Treatment Plant Advisory
Committee (CM) (San Jose)
6:00 PM-Youth Advisory Commission
(HL)
7:00 PM-Cities Assoc of SCC (CM)
14 15
16 17
7:00 PM-Science, Technology, and
Innovation Commission (WL)
7:00 PM-Library and Education
Commission (HL) (Milpitas Public
Library)
18 5:00 PM-Closed Session
7:00 PM-City Council
19 6:00 PM-Energy and Environmental
Sustainability Commission (EC)
20 6:30 PM-Bay Area Water Supply
Conserv Agency (CM) (Oak Room -
San Mateo Main Library)
7:00 PM-Public Safety and
Emergency Preparedness Commission
(WL)
21 22
23 24
7:00 PM-Arts Commission (CM)
25 26
7:00 PM-Planning Commission
27 4:00 PM-Silicon Valley Regional
Interoperability Authority (SVRIA)
(GB)
28 29
30 31
Cesar Chavez Day
City Hall Closed
February 2025

S M T W T F S
1 2 3 4 5 6 7 8
9 10 11 12 13 14 15
16 17 18 19 20 21 22
23 24 25 26 27 28
April 2025

S M T W T F S
1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30

February 11, 2025 Milpitas City Council Minutes Page 1

SPECIAL MEETING OF THE MILPITAS

CITY COUNCIL

MINUTES
TUESDAY, FEBRUARY 11, 2025
The City Council of the City of Milpitas convened in a Special Meeting on February 11, 2025, in the Barbara Lee Senior Center, 40 N Milpitas Blvd, Room 140/141, Milpitas, CA and via teleconference/Zoom webinar.

CALL MEETING TO ORDER by Mayor and ROLL CALL by City Clerk Mayor Montano called the Special City Council meeting to order at 5 PM. Roll Call was taken by City Clerk Guzzetta.

PRESENT: Mayor Montano, Vice Mayor Barbadillo (5:12 PM), Councilmember Chua, Councilmember Lam, Councilmember Lien
ABSENT:

The City Council adjourned to Closed Session at 5:02 PM.

ADJOURN TO CLOSED SESSION
(a) PUBLIC EMPLOYEE RESIGNATION AND HIRING
Pursuant to Government Code Section 54957(b)(1):

Employee Position: City Manager.

CLOSED SESSION ANNOUNCEMENT:

The City Council reconvened at 5:54 PM
Acting City Attorney Creech reported that the City Council unanimously voted to accept the letter of resignation from City Manager Ned Thomas and convened a subcommittee to support a search for the next City Manager and identify an Interim City Manager.

PLEDGE OF ALLEGIANCE
Councilmember Chua led the pledge of allegiance.

PUBLIC FORUM
There were the following public speakers:

1. Sujee Maniyam

2. David Hohl

3. Prashanth Kumar

4. Van Leong

5. Stephen Balsbaugh

ANNOUNCEMENT OF CONFLICT OF INTEREST AND CAMPAIGN CONTRIBUTIONS Acting City Attorney Creech asked the Mayor and City Councilmembers if they had any personal conflicts of interest. By roll call, there were no conflicts of interest. Acting City Attorney Creech asked the Mayor and City

February 11, 2025 Milpitas City Council Minutes Page 2
Councilmembers if they had any reportable campaign contributions. By roll call, there were no reportable campaign contributions.

READING OF THE CITY COUNCIL CODE OF CONDUCT
Vice Mayor Barbadillo read the City Council Code of Conduct.

APPROVAL OF AGENDA
After discussion, motion: to approve the agenda.

Motion/Second: Councilmember Chua / Vice Mayor Barbadillo Motion carried by the following:

AYES: Mayor Montano, Vice Mayor Barbadillo, Councilmember Chua, Councilmember Lam, Councilmember Lien
NOES: None

AGENDA ITEMS

1. Receive Presentation on Proposed Five-Year 2026-2030 Capital Improvement Program and Provide Feedback to Staff (Staff Contact: Christian Di Renzo, Public Works Director, 408-586- 2602; and Michael Silveira, City Engineer, 408-586-3303) City Manager Thomas and Public Works Director Di Renzo introduced the Capital Improvement Program (CIP) study session, after which CIP Manager Eam and City Engineer Silveira presented the five-year CIP plan for FY 2026-2030. The presentation outlined major projects, funding sources, and anticipated challenges.

Regarding library signage, Assistant City Manager Cano noted that unless the Council provided feedback regarding Option 2, the City could proceed with Option 1 under the City Manager’s authority.

Option 1 consisting of a monument sign on Main Street and two bronze plaques at the library entrance for $17,000, rather than the more expensive Option 2, which would replace three existing signs and cost $268,000. No objections were raised, allowing the City to proceed with Option 1.

Mayor Montano questioned why developers were not covering the costs for undergrounding utilities.

Acting City Attorney Creech responded that he could brief the City Council separately on this issue.

Councilmember Chua asked about the feasibility of solar-powered outdoor lighting, to which City Engineer Silveira responded that a pilot project was in progress. She requested that staff report back within 3-6 months on the results of the project.

Councilmember Chua then asked about pickleball facility improvements and expansion, referencing her previous request for a study and asking for a pilot project to evaluate potential locations. She also noted community requests for benches, bag hooks, and sturdier nets at Hall Park. Mayor Montano supported the proposal, suggesting the City identify a site for dedicated pickleball courts. Vice Mayor Barbadillo added that the City should consider partnerships with private entities to help fund the facilities.

Next, Councilmember Lam raised concerns about street lighting inconsistencies, noting that some streets remain too dim while others are overly bright. Public Works Director Di Renzo explained that all streetlights were converted to LED two years ago, but vandalism, such as wires being pulled from poles, had led to outages. Councilmember Lam noted that he had observed lighting inconsistencies firsthand. Assistant City Manager Cano requested that Councilmember Lam provide specific streets

February 11, 2025 Milpitas City Council Minutes Page 3
with dim lighting, if possible, as examples for staff follow up. Councilmember Chua proposed a pilot project for solar-powered streetlights, pointing out that Fremont had already implemented them successfully and requested a follow-up report in the coming months.

Councilmember Chua inquired about the Urban Search and Rescue Vehicle, asking Fire Chief Schoonover how it would be used and whether additional staff would be required to operate it. Chief Schoonover explained that the vehicle would enhance the department’s response capabilities and confirmed that no additional staffing was necessary.

The conversation then moved to funding gaps and prioritization of new projects. Councilmember Chua asked whether the cost-benefit of new projects had been evaluated. Councilmember Lien sought clarification on whether the funding gap included the nine new projects proposed in the CIP. City Engineer Silveira confirmed that there was a $57 million funding gap and outlined key unfunded projects, including the pedestrian overcrossing project, community center roof replacement, and Sandoval Park renovations. Councilmember Barbadillo suggested looking into private partnerships to help offset costs.

Mayor Montano then addressed flooding on Main Street near the library, asking about potential solutions. City Engineer Silveira explained that creek maintenance, storm drain expansion, and upstream water storage improvements could help mitigate flooding. Councilmember Chua asked when cost estimates for potential solutions would be available, and staff responded that a clearer assessment would be provided within 3-6 months.

Councilmember Chua then requested a detailed list of all consultants working with the City in 2024, asking for project descriptions, budgets, and actual expenditures. She also requested statistics on the MyMilpitas App, specifically how many service requests were received and how many were resolved.

Mayor Montano followed up by asking whether ADA improvements were funded by state or federal sources, to which City Engineer Silveira confirmed that ADA projects were primarily funded through gas tax revenue. Montano suggested hiring a full-time grant writer, but ACM Cano clarified that the City currently relies on a consultant for grant writing.

Mayor Montano raised concerns that the City lacked sufficient funds to cover all projects and suggested seeking VTA grants for public art projects and emphasized the importance of the Main Street Lighting Project and urging staff to explore whether PG&E could contribute financially.

Councilmember Chua reiterated her requests for a solar streetlight pilot project, a formal study on pickleball facility expansion, and a cost-benefit analysis for new CIP projects.

Councilmember Lam requested a review of streetlight replacements and an update on pothole repairs.

Councilmember Barbadillo reiterated the importance of securing additional funding sources for key projects, particularly those facing budget shortfalls and emphasized the need to explore private partnerships as a potential solution for funding pickleball facilities and other infrastructure improvements. Additionally, he weighed in on the Main Street lighting and undergrounding projects, urging the City to ensure that these improvements were implemented efficiently.

In conclusion, City Engineer Silveira provided an overview of the CIP timeline, explaining that he would solicit feedback from the Planning and Parks Commissions, followed by a final public hearing on April 15 for CIP adoption. Mayor Montano concluded the discussion by reiterating that not all projects could be funded and encouraged staff to pursue additional grant opportunities.

ANNOUNCEMENTS

February 11, 2025 Milpitas City Council Minutes Page 4
Councilmember Lien asked for a minute of silence in memory of Mike Mendizabal for his contribution to the community.

ADJOURNMENT
Mayor Montano adjourned the meeting at 8:36 PM.

Draft meeting minutes submitted by City Clerk, Suzanne Guzzetta

February 18, 2025 Milpitas City Council Minutes Page 1

SPECIAL MEETING OF THE MILPITAS

CITY COUNCIL

MINUTES
TUESDAY, FEBRUARY 18, 2025
The City Council of the City of Milpitas convened in a Special Meeting on February 18, 2025, in the Barbara Lee Senior Center, 40 N. Milpitas Blvd, Room 140/141, Milpitas, CA, and via teleconference/Zoom webinar.

CALL MEETING TO ORDER by Mayor and ROLL CALL by City Clerk Mayor Montano called the Special City Council meeting to order at 4:02 PM. Roll Call was taken by City Clerk Guzzetta.

PRESENT: Mayor Montano, Vice Mayor Barbadillo, Councilmember Chua, Councilmember Lam, Councilmember Lien
ABSENT: None

PLEDGE OF ALLEGIANCE
Councilmember Lien led the Pledge of Allegiance.

PUBLIC FORUM
There were no public speakers.

ANNOUNCEMENT OF CONFLICT OF INTEREST AND CAMPAIGN CONTRIBUTIONS Acting City Attorney Creech asked the Mayor and City Councilmembers if they had any personal conflicts of interest. By roll call, there were no conflicts of interest. Acting City Attorney Creech asked the Mayor and City Councilmembers if they had any reportable campaign contributions. By roll call, there were no reportable campaign contributions.

READING OF THE CITY COUNCIL CODE OF CONDUCT
Councilmember Chua read the City Council Code of Conduct.

APPROVAL OF AGENDA
After discussion, motion: to approve the agenda.

Motion/Second: Councilmember Chua / Vice Mayor Barbadillo Motion carried by the following:

AYES: Mayor Montano, Vice Mayor Barbadillo, Councilmember Chua, Councilmember Lam, Councilmember Lien
NOES: None

AGENDA ITEMS

1. Receive a Staff Presentation on the Preliminary FY 2026-35 Ten-Year General Fund Financial Forecast and Provide Feedback on Desired Service Levels to Inform the FY 2025-26 Budget Development (Staff Contact: Luz Cofresí-Howe, Finance Director, 408-586-3111)

February 18, 2025 Milpitas City Council Minutes Page 2
City Manager Thomas introduced the item. Finance Director Cofresí-Howe, joined by Budget Manager Alice Vurich, presented the report.

Councilmember Chua inquired about the ERP Sytem timeline for implementation. Finance Director Cofresí-Howe noted that full implementation would take two years. Clarification was sought on whether there would be ongoing technical support, to which the Finance Director confirmed that technical assistance is part of the agreement. Staff was directed to provide updates on the implementation and to ensure technical assistance is available.

Vice Mayor Barbadillo questioned if the findings from the recent community service survey had been incorporated into the ten-year budget projections and asked whether the budget had been adjusted to reflect what residents prioritized in the survey. Finance Director Cofresí-Howe responded that the survey data had not yet been directly incorporated into budget allocations, but that it would serve as a starting point for further discussions. Councilmember Chua asked staff to provide a breakdown of how current spending aligns with the community survey priorities using available financial data to compare actual expenditures with resident preferences and ensuring future budget presentations clearly reflect whether financial decisions address those priorities.

Vice Mayor Barbadillo expressed concern that earlier projections had underestimated the severity of the deficit and that financial projections had worsened in just three months. He pushed for more immediate budget adjustments rather than waiting a year and a half for a full analysis. He also indicated he may be open to a more tempered approach over a longer time period if he could receive assurances that the schedule would be adhered to and commitments met on deliverables.

Councilmember Chua and Mayor Montano echoed the Vice Mayor's concerns and agreed on a need to cut expenditures.

Staff detailed measures underway to increase revenues, including a potential ballot measure for modernizing the business tax, promoting City resources, and economic development initiatives.

Assistant City Manager Cano confirmed that discussions on business tax modernization would take place this year, with a proposal targeting the ballot in 2026. Additionally, staff outlined efforts to enhance revenue generation through strategic promotion of City assets, tourism, and business attraction programs. Vice Mayor Barbadillo and Councilmember Chua urged for a stronger marketing approach to position Milpitas as a destination for businesses and visitors.

Councilmember Chua requested an additional study session before the final adoption of the FY 2026- 2030 Capital Improvement Program (CIP) Budget to allow more time for input and review of CIP Projects. Vice Mayor Barbadillo agreed, emphasizing that council members needed to evaluate which projects could be postponed or reconsidered.

Assistant City Manager Cano reported there was $508,000 in flexible funds remaining available in the Community Investment Fund and noted that a final allocation proposal would be included in the budget adoption process.

ADJOURNMENT
Mayor Montano adjourned the meeting at 6:01 PM.

Draft meeting minutes submitted by City Clerk, Suzanne Guzzetta

February 18, 2025 Milpitas City Council Minutes Page 1

REGULAR MEETING OF THE MILPITAS

CITY COUNCIL

MINUTES
TUESDAY, FEBRUARY 18, 2025
The City Council of the City of Milpitas convened in a Regular Meeting on February 18, 2025, in the City Council Chamber, 455 E. Calaveras Blvd, Milpitas, CA, and via teleconference/Zoom webinar.

CALL MEETING TO ORDER by Mayor and ROLL CALL by City Clerk Mayor Montano called the Regular City Council meeting to order at 7:00 PM. Roll Call was taken by City Clerk Guzzetta.

PRESENT: Mayor Montano, Vice Mayor Barbadillo, Councilmember Chua, Councilmember Lam, Councilmember Lien
ABSENT: None.

PLEDGE OF ALLEGIANCE
Councilmember Lam led the pledge of allegiance.

INVOCATION
Mayor Montano provided the invocation.

PRESENTATIONS
Mayor Montano, joined by the City Council, presented a proclamation in recognition of Rare Disease Day.

PUBLIC FORUM
There were no public speakers.

ANNOUNCEMENT OF CONFLICT OF INTEREST AND CAMPAIGN CONTRIBUTIONS Acting City Attorney Creech asked the Mayor and City Councilmembers if they had any personal conflicts of interest. By roll call, there were no conflicts of interest. Acting City Attorney Creech asked the Mayor and City Councilmembers if they had any reportable campaign contributions. By roll call, there were no reportable campaign contributions.

READING OF THE CITY COUNCIL CODE OF CONDUCT
Vice Mayor Barbadillo read the City Council Code of Conduct.

APPROVAL OF AGENDA
After discussion, motion: to approve the agenda.

Motion/Second: Councilmember Lien / Councilmember Chua
Motion carried by the following:

AYES: Mayor Montano, Vice Mayor Barbadillo, Councilmember Chua, Councilmember Lam, Councilmember Lien
NOES: None

February 18, 2025 Milpitas City Council Minutes Page 2

CONSENT CALENDAR
Councilmember Lam asked to pull Items C5 and C6.

After discussion, motion: to pull Items C5 and C6 and approve the Consent Calendar.

Motion/Second: Councilmember Chua / Vice Mayor Barbadillo Motion carried by the following:

AYES: Mayor Montano, Vice Mayor Barbadillo, Councilmember Chua, Councilmember Lam, Councilmember Lien
NOES: None

1. Receive City Council Calendar of Meetings for February and March 2025 (Staff Contact:

Suzanne Guzzetta, City Clerk, 408-586-3001)
Received City Council Calendar of Meetings for February and March 2025.

2. Approve City Council City Council Meeting Minutes of February 4, 2025 (Staff Contact: Suzanne Guzzetta, City Clerk, 408-586-3001)
Approved City Council Meeting minutes of February 4, 2025.

3. Receive the Preview List of Anticipated Items for the Next Regular City Council Meeting (Staff Contact: Suzanne Guzzetta, City Clerk, 408-586-3001)
Received the list of anticipated agenda items for the next regular City Council meeting.

4. Receive and Review the List of Agenda Items Requested by City Councilmembers (Staff Contact: Suzanne Guzzetta, City Clerk, 408-586-3001)
Received the list of items that have been requested by City Councilmembers and received consensus in previous meetings to date.

5. FY 2024-25 2nd Quarter Financial Status Report for the Quarter Ended December 31, 2024 (Staff Contact: Luz Cofresí-Howe, Finance Director, 408-586-3111) Item pulled from Consent Calendar.

6. Review Fiscal Year 2024-25 Mid-Year Report, Adopt a Resolution Approving FY2024-25 Mid-year Budget Amendments, and Adopt a Resolution Amending Resolution No. 1626, the Classification Plan to Approve and Adopt the Pay Schedule titled “New Job Classifications/Salary Table” (Staff Contact: Luz Cofresí-Howe, Finance Director, 408-586-3111) Item pulled from Consent Calendar.

7. Adopt a Resolution Relating to the Milpitas Tow Service Agreement (Staff Contact: Jared Hernandez, Chief of Police, 408-586-2402)
Adopted Resolution No. 9387 relating to the Milpitas Tow Service Agreement to repeal and replace Resolution No. 7747.

8. Accept the FY 2025 Citizens’ Option for Public Safety (COPS) Grant, Accept the Additional FY 2024 COPS Grant to be Spent in Alignment with the City Council Approved FY 2024 Spending Plan, and Approve the Appropriation of Funds to the Police Department’s FY 2024-25 Operating Budget for Front-Line Law Enforcement Services (Staff Contact: Jared Hernandez, Chief of

February 18, 2025 Milpitas City Council Minutes Page 3
Police, 408-586-2406)
(1) Accepted the FY 2025 Citizens’ Option for Public Safety (COPS) Grant in the amount of $126,280.00, (2) Accepted the additional FY 2024 COPS Grant in the amount of $119,318 to be spent in alignment with the City Council approved FY 2024 spending plan; and (3) Approved the appropriation of funds in the total amount of $245,598 to the Police Department’s FY 2024-25 operating budget for front-line law enforcement services.

9. Approve and Authorize the City Manager to Execute a Stormwater Management Facilities Operation and Maintenance Agreement between the City of Milpitas and Milpitas Pacific Associates, L.P., for the Affordable Housing Project at 308 Sango Court (Staff Contact:

Christian Di Renzo, Public Works Director, 408-586-2602; and Michael Silveira, City Engineer, 408-586-3303)
Approved and authorized the City Manager to execute a Stormwater Management Facilities Operation and Maintenance Agreement between the City of Milpitas and Milpitas Pacific Associates, L.P., for the Affordable Housing Project at 308 Sango Court.

10. Receive an Update on the Security Improvements at the McCarthy Ranch Sewer Lift Station (Main Lift) and Determine that the Condition Continues to Constitute an Emergency (Staff Contact: Christian Di Renzo, Public Works Director, 408-586-2602) (1) Received an update on the security improvements at the McCarthy Ranch Sewer Lift Station; and (2) Determined by a four-fifths vote that the condition continues to constitute an emergency.

11. Consider a Fee Waiver Request from the Christian Worship Center Bay Area (Staff Contact:

Renee Lorentzen, Recreation and Community Services Director, 408-586-3409) Approved a fee waiver of $1,500 for the Christian Worship Center Bay Area’s Annual Easter Egg Hunt at Starlite Park on April 19, 2025.

PUBLIC HEARINGS

12. Recruiting, Hiring, and Vacancy Update for July 1 – December 31, 2024 (Staff Contact: Kelli Parmley, Human Resources Director, 408-586-3086)
City Manager Thomas introduced the item. Human Resources Director Parmley presented the report.

Councilmember Lien asked about the 11 vacant positions out of the 43 total vacancies that were being held strategically. Human Resources Director Parmley explained that about seven of those were in Public Works, where the department director was carefully assessing staffing needs.

Councilmember Lam raised concerns about the city's four-and-a-half-day workweek and how it affected public service. Human Resources Director Parmley clarified that employees were still working full-time, with some remote work on Fridays. City Manager Thomas added that starting March 1, City Hall would be fully open on Fridays to better serve the public.

Mayor Montano inquired about the status of part-time employees. The mayor also questioned whether part-time employees were given preference in full-time hiring. Human Resources Director Parmley explained that government hiring regulations do not allow automatic preference, though part-time employees are encouraged to apply. The mayor also raised concerns about hiring transparency, stating that some applicants had reported not receiving responses after applying. Human Resources Director Parmley reassured the council that the HR team was improving communication plans to ensure all applicants received timely updates.

February 18, 2025 Milpitas City Council Minutes Page 4
Councilmember Chua asked if there was a policy on the number of days a week city employees can work remotely. City Manager Thomas provided clarification on the city's approach to telework and offered to look into developing a policy. Human Resources Director Parmley added the importance of telework in recruitment.

Councilmember Lam asked if the city had a structured approach to prepare for retirements. Human Resources Director Parmley acknowledged that while there is no formal succession policy, discussions were underway among department heads. She cited the Police Department as a strong example of succession planning, with Chief of Police already tracking upcoming retirements and planning accordingly.

Vice Mayor Barbadillo suggested the development of a policy to standardize remote work and succession planning. Human Resources Director Parmley agreed and noted that HR was engaging with department directors to develop a citywide leadership training and professional development program.

Councilmember Lam asked about the average retirement age and whether vacancies were being proactively filled. Human Resources Director Parmley noted that retirement timelines vary and that the city is working on improving succession planning while ensuring equity in internal promotions.

The presentation concluded with Human Resources Director Parmley emphasizing that sustaining a single-digit vacancy rate is a joint effort between HR and department heads. She also stressed the importance of engaging and retaining employees to ensure the long-term success of the city's workforce.

Mayor Montano opened the public hearing.

There were the following public speakers:

1. Voltaire Montemayor
Mayor Montano closed the public hearing.

ITEMS PULLED FROM CONSENT CALENDAR

5. FY 2024-25 2nd Quarter Financial Status Report for the Quarter Ended December 31, 2024 (Staff Contact: Luz Cofresí-Howe, Finance Director, 408-586-3111) Councilmember Lam asked to defer the item so that a presentation to Council could be included.

There were the following public speakers:

1. Voltaire Montemayor
After discussion, motion: to defer the item to a future agenda.

Motion/Second: Councilmember Lam / Councilmember Chua
Motion carried by the following:

AYES: Mayor Montano, Vice Mayor Barbadillo, Councilmember Chua, Councilmember Lam, Councilmember Lien
NOES: None

February 18, 2025 Milpitas City Council Minutes Page 5

6. Review Fiscal Year 2024-25 Mid-Year Report, Adopt a Resolution Approving FY2024-25 Mid-year Budget Amendments, and Adopt a Resolution Amending Resolution No. 1626, the Classification Plan to Approve and Adopt the Pay Schedule titled “New Job Classifications/Salary Table” (Staff Contact: Luz Cofresí-Howe, Finance Director, 408-586-3111) Councilmember Lam asked to defer the item.

There were no public speakers.

After discussion, motion: to defer the item to a future agenda.

Motion/Second: Councilmember Lam / Councilmember Chua
Motion carried by the following:

AYES: Mayor Montano, Vice Mayor Barbadillo, Councilmember Chua, Councilmember Lam, Councilmember Lien
NOES: None

ANNOUNCEMENTS AND FUTURE AGENDA ITEMS
Councilmember Chua asked for the City Attorney to look into a policy to require a Super Majority vote by Council for any deductions to budget reserves. There was consensus in support of the request.

Vice Mayor Barbadillo asked to bring back a discussion regarding fentanyl-related issues. There was a consensus to add this item to the prioritization list.

Mayor Montano asked for feasibility study regarding a Police satellite office. There was a consensus to add this item to the prioritization list.

ADJOURNMENT
Mayor Montano adjourned the meeting at 8:36 PM.

Draft meeting minutes submitted by City Clerk, Suzanne Guzzetta

TENTATIVE CITY COUNCIL AGENDA ITEM LIST
as of 2/27/2025
March 18, 2025 – Regular Meeting (7:00 PM)
INVOCATION (Mayor Montano)

PRESENTATION
- Neighborhood Beautification Awards (Certificate)

CONSENT CALENDAR

1. Receive City Council calendar for March and April 2025 (City Clerk)

2. Approve City Council meeting minutes of March 4, 2025 (City Clerk)

3. Preview list of items for April 1, 2025 (City Clerk)

4. Councilmember Request List (City Clerk)

5. 2024 Housing Element Annual Progress Report (Housing)

6. 2024 General Plan Annual Progress Report (Planning)

7. DOE Grant – SVCE Subrecipient Agreement (Public Works)

8. Emergency Declaration Update - Main Sewer Lift Station Security Measures (Public Works)

9. Add / Delete Staffing Changes for Principal Engineer and Senior Public Works Lead (Public Works)

10. Dempsey Road Water Main Replacement Award (Public Works)

COMMUNITY DEVELOPMENT

11. Innovation District Branding Initiative – Logo Design Development (City Manager / Economic Development)

MILPITAS CITY COUNCIL

AGENDA ITEM REQUESTS

OPEN ITEMS
Request
No. Topic Submitted by:

Date
Requested
STATUS and/or DATE scheduled on City
Council meeting agenda:
1 Look into a policy to require a Super Majority vote
by Council for any deductions to budget reserves. Chua 2/18/2025 An update on this item is included in the
quarterly prioritization update.
2 Bring back a discussion regarding fentanyl-related
issues Barbadillo 2/18/2025
An update on this item is included in the
quarterly prioritization update.
3 Feasibility study regarding a police satellite office. Montano 2/18/2025 An update on this item is included in the
quarterly prioritization update.

ACTIVE ITEMS
Request
No. Topic Submitted by:

Date
Requested
STATUS and/or DATE scheduled on City
Council meeting agenda:
4 Staff organize a job fair for City job openings Chua 11/19/2024 An update on this item is included in the
quarterly prioritization update.
5 Bring back a study or analysis of the permit
process Chua 11/19/2024
An update on this item is included in the
quarterly prioritization update.
6 Invite the HR Director to a future meeting to
present on hiring processes and vacancies Lien 10/1/2024 An update on this item is included in the
quarterly prioritization update.
7 Explore updating the city's business tax rate
schedule Chua 10/1/2024
An update on this item is included in the
quarterly prioritization update.
8 Explore funding options for new signage following
the decision to rename the Milpitas Library to the
Milpitas Jose Esteves Library Barbadillo 9/3/2024
An update on this item is included in the
quarterly prioritization update.
9 Send a letter to Supervisory Otto Lee regarding the
weeds on Montague Expressway Montano 8/13/2024
An update on this item is included in the
quarterly prioritization update.
10 Update the animal control ordinance to include
other animals such as horses and cats Chua 9/3/2024
An update on this item is included in the
quarterly prioritization update.
11 Look into a property for sale on Main Street to
investigate the cost and feasibility of creating a
museum for downtown or Old Town Main Street as
part of the revitalization efforts. Montano 8/13/2024
An update on this item is included in the
quarterly prioritization update.
12 Look into adopting an ordinance similar to San
Jose allowing ADUs (Accessory Dwelling Units) to
have a separate title and be sold separately.

Chua 8/13/2024
An update on this item is included in the
quarterly prioritization update.
13 Conduct a traffic study on Escuela Parkway to
address circulation concerns Montano 5/7/2024
An update on this item is included in the
quarterly prioritization update.
14 Explore the possibility of augmenting the Planning
Commission stipend Barbadillo 4/16/2024
An update on this item is included in the
quarterly prioritization update.
15 Consideration of the 20% Low Income Below
Market Rate Housing Montano 12/5/2023
An update on this item is included in the
quarterly prioritization update.
16 Bring back Bingo and the Tour at the Senior
Center Chua 11/7/2023
An update on this item is included in the
quarterly prioritization update.
17 Referral for utility infrastructure cost on Main Street from Carlo to Corning Streets Montano 10/17/2023
An update on this item is included in the
quarterly prioritization update.
18 Main Street International Festival Lien 10/3/2023
An update on this item is included in the
quarterly prioritization update.
19 Pickleball Pilot Project Chua 2/28/2023
An update on this item is included in the
quarterly prioritization update.
20 Main Street Infrastructure Projects Montano 2/28/2023 An update on this item is included in the
quarterly prioritization update.
21 Main Street Flooding at Library Chua 2/28/2023
An update on this item is included in the
quarterly prioritization update.
22 Have the City look into the possibility of a Citywide Senior Discount Barbadillo 2/7/2023
An update on this item is included in the
quarterly prioritization update.
23 City Manager to look into defining either a
standalone teen center or updating information to
indicate the Senior Center also functions as a Teen
Center Chua 9/20/2022
An update on this item is included in the
quarterly prioritization update.

NOTE: Deferred and Completed Items are not listed

MILPITAS CITY COUNCIL

AGENDA ITEM REQUESTS
24 City Manager look into implementing a workshop
for small businesses on the bidding process for
projects in the city Chua 8/9/2022
An update on this item is included in the
quarterly prioritization update.
25 Quarterly or Monthly crime statistics on Homekey
Project Chua 6/7/2022
An update on this item is included in the
quarterly prioritization update.
26 Memorial Plaque in honor of youth skateboarder
that passed away Montano 6/7/2022
An update on this item is included in the
quarterly prioritization update.
27 Evaluate reopening the childcare center with a non-
profit organization running the center Montano 2/1/2022 An update on this item is included in the
quarterly prioritization update.
28 Staff to look into mural Art on Great Mall Parkway
on the VTA owned Light rail pillars Montano 11/16/2021
An update on this item is included in the
quarterly prioritization update.
29 Have a picture of Albert Vogel Sr. put up in the
Senior Center Montano 10/19/2021
An update on this item is included in the
quarterly prioritization update.
30 Include a bust of Maria Lemire on the Mural in front of the Senior Center Montano 8/17/2021
An update on this item is included in the
quarterly prioritization update.
31 Consider Community Museum and Park on Main
St. Phan 8/20/2019
Discussions with the property owner of this
site are ongoing.

ACTIVE ITEMS
Request
No. Topic Submitted by:

Date
Requested
STATUS and/or DATE scheduled on City
Council meeting agenda:

NOTE: Deferred and Completed Items are not listed

CITY OF MILPITAS

AGENDA REPORT
(AR)
Item Title: Authorize and Approve Travel Requests to Sacramento, California, by Mayor Montano, Councilmember Chua, Councilmember Lien, and Councilmember Lam to Attend the League of California Cities 2025 City Leaders Summit from April 23 to 25, 2025 (Staff Contact: Matt Cano, Assistant City Manager, 408-586- 3012)
Category: Consent Calendar-Leadership and Support Services Meeting Date: 3/4/2025
Recommendation: Authorize and approve travel to Sacramento, California, by Mayor Carmen Montano, Councilmember Evelyn Chua, Councilmember Hon Lien, and Councilmember William Lam to attend the League of California Cities 2025 City Leaders Summit from April 23 to 25, 2025, for a total estimated amount of $6,621, budgeted under the Individual Elected Official Allocation for Conferences/Meetings/Trainings.

BACKGROUND:

The League of California Cities (Cal Cities) is holding its annual City Leaders Summit in Sacramento April 23- 25, 2025. The City Leaders Summit offers opportunities for city leaders from across the state to influence policy decisions in the Capitol and gain top-notch leadership skills. City officials can walk the halls of the Capitol and advocate for Cal Cities’ top priorities, in-between peer-to-peer discussions and in-depth educational sessions. Additionally, Mayor Montano, Councilmember Chua, Councilmember Lien, and Councilmember Lam’s attendance at this Summit will foster relationships with their peers and allow for opportunities to advocate for City of Milpitas funding and priorities. Included in this agenda packet is the preliminary agenda for this Summit as Attachment 1.

ANALYSIS:

The City of Milpitas Travel and Expense Policy requires the City Council to approve all travel for the elected officials and City Manager. City Council approval of the Sacramento travel request will allow Mayor Carmen Montano, Councilmember Evelyn Chua, Councilmember Hon Lien, and Councilmember William Lam to gain knowledge from other California policymakers and bring it back to share with their colleagues, as well as to advocate with our State representatives for City of Milpitas priorities Continued conference participation and attendance also ensure the Milpitas community is fully represented at the regional, state, and national levels.

POLICY ALTERNATIVE(S):

Not Applicable
FISCAL IMPACT:

The estimated individual expenses for the Sacramento, CA League of CA Cities City Leaders Summit, including the registration fee, lodging, meals, mileage, and incidental reimbursements, are $1,665 for each elected official.

Attachment 2 details the remaining travel budget allocations for each councilmember for the current fiscal year.

Mayor Carmen Montano has exhausted her travel funds for this fiscal year. However, there is sufficient funding remaining in the overall City Council travel account to accommodate this shortfall. As such, should this agenda item be approved, staff will allocate the necessary funds from the overall council travel allocation, thus granting a one-time exception to the Mayor’s annual travel budget limit. Councilmembers Chua, Lam and Lien have sufficient funding in their accounts remaining for this travel, as shown on Attachment 2.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):

The action is an organizational or administrative activity of the City government that will not result in direct or indirect physical changes in the environment and is not a project pursuant to Cal. Code of Regs., tit. 14, § 15378.

RECOMMENDATION:

Authorize and approve travel to Sacramento, California, by Mayor Carmen Montano, Councilmember Evelyn Chua, Councilmember Hon Lien, and Councilmember William Lam to attend the League of California Cities 2025 City Leaders Summit from April 23 to 25, 2025, for a total estimated amount of $6,621, budgeted under the Individual Elected Official Allocation for Conferences/Meetings/Trainings.

ATTACHMENT(S):
(a) 2025 City Leaders Summit Draft Agenda
(b) Council Conferences Budget Tracking

Schedule subject to change.

Speaker names will be added as they are confirmed.

Wednesday, April 23

9:00 a.m.-5:30 p.m.

Registration Open

10:00 a.m.-11:15 a.m.

Opening General Session
Day one of the conference focuses on legislative advocacy. Join Cal Cities leadership and lobbyists for an update on high priority legislation that you will want to advocate on when you meet with legislative officers later in the day.

11:30 a.m-12:15 p.m.

Press Conference

12:15-5:00 p.m.

Lunch on Your Own/Lobbying at the Capitol

2:00-5:00 p.m.

Educational Sessions
More information to be announced at a later date.

5:00-7:00 p.m.

Reception

Thursday, April 24

7:30 a.m.-4:00 p.m.

Registration Open

7:30-8:30 a.m.

Networking Breakfast

8:30-9:45 a.m.

Concurrent Sessions

Aligning Goal Setting and the Performance Evaluation Process: Best Practices to Retain Top Executive Talent
This session will dive into innovative, practical strategies for setting clear goals and conducting effective performance evaluations for appointed officials like city managers, city attorneys, and city clerks. Elected city leaders will discover streamlined techniques for facilitating alignment between council priorities and managerial execution, leading to a more cohesive leadership team and improved retention. Learn best practices to simplify and enhance the performance review process including the contract negotiation component, resulting in a supportive environment where roles are clear, goals are aligned, and every appointed executive in your organization is positioned for success.

Moderator: Jacob Green, President & CEO, Jacob Green & Associates

Bridging Prosperity: Leveraging the Synergy Between Housing, Commerce, and Public Spaces to Create Thriving Communities
By strategically investing in affordable housing and integrating it with other essential community elements, jurisdictions can spark significant economic and community reinvestment, leading to sustainable and inclusive growth for all residents. Using an integrated development approach, explore the nexus of affordable housing, economic development, equity and community revitalization through strategic investments to drive economic growth and community betterment.

Moderator: Tara Matthews, Vice President / Principal, RSG, Inc.

Speakers: Dena Fuentes, Director, RSG
Rebecca Louie, President/CEO, Wakeland Housing and Development Corporation
Rochelle Mills, President and CEO, Innovative Housing Opportunities

10:00-11:15 a.m.

Concurrent Sessions

Partners in Local Governance: Strength, Continuity, Leadership in Modern Local Government
Successful local governance relies on a strong partnership between elected officials and professional staff. This session brings together seasoned leaders from both sides of the dais to share their experiences, challenges, and lessons learned in fostering effective collaboration. Through real-world stories and candid discussions, this session will explore the dynamics of governance, communication, and decision-making, offering strategies to strengthen relationships, build effective council-city manager partnerships and improve outcomes for communities.

Moderator: The Honorable Joe Simitian
Speakers: Mary Bier, Council Member, City of Pacifica

Kevin Woodhouse, City Manager, Pacifica

Speed Sessions

When Public Comment Crosses the Line (10:00-10:20 a.m.) Cities of all sizes have recently experienced a surge in public comment that is excessively vulgar and fiery, and at times even beyond what may be protected by the Brown Act and First Amendment. Elected officials surely anticipate criticism and sharp commentary, but what about when the remarks serve to make meeting attendees and those on the dais fear for their personal safety? Cities often find their hands tied when mitigating public comment that would be prohibited in most other public forums, such as state and federal legislatures and courts. Generally, applicable rules of decorum are often not enough to regulate or discourage the conduct in more extreme instances. When public comment moves from critical to frightening, what can cities do? This panel presentation will discuss the possibility of a workplace violence restraining order against meeting attendees whose conduct injects fear into public meetings.

Speaker: John Funk, City Attorney, Downey

Unofficial Guide to Surviving and Thriving in Elected Office (10:25-10:45 a.m.)
Discover the tips, tricks, and truths no one tells you before you’re sworn in.

This session will share hard-earned wisdom, from building coalitions to managing crises, to growing thick layers of skin in order to do the right thing. Learn to lead effectively while keeping your ego in check, your sanity intact, and your relationships intentional.

Speaker: Scott Alvord, CEO, Advanced Development Concepts, LLC

Today's Roadmap to Economic Development: Climate Action, Zoning, and Housing (10:50-11:10 a.m.)
Economic development has transitioned from redevelopment to sustainability; from retail to residential; from shopping trips to retail apps, all with a focus on green infrastructure, resiliency, and density. In a post- COVID digital world consumers want a 15-minute community with restaurants, jobs, and great schools. The private sector is investing in green energy projects, with federal and state funding available to support these efforts. Meanwhile, the state is encouraging cities to increase density, as housing represents the highest land value. This session will show city leaders how to implement effective economic development by taking advantage of zoning and financing tools to attract and induce private investment the community wants.

Speaker: Larry Kosmont, Chair & CEO, Kosmont Companies

11:15 a.m-12:15 p.m.

Networking Lunch

12:15-1:45 p.m.

General Session: Building Communities of Trust: How Cities Can Bridge the Trust Divide
Nothing is more essential to human happiness—or the success of our societies— than trust in one another. Yet, trust has been eroding. Too many people feel disconnected from their neighbors, suspicious of strangers, and excluded from the social fabric of their communities. The good news? Our cities have the power to help bridge the trust divide. In this visual journey, the speaker shares fascinating and often funny social experiments to demonstrate that we can redesign our communities to draw people together in ways that nurture the bonds that keep us all healthy, happy, and strong. By understanding the effect that design has on our emotions and decisions, we can all help shape this empowering new vision of city life.

2:00-3:15 p.m.

Concurrent Sessions

What Happens When Reporters Leave Your Town - And What to Do About It California has lost one-third of its newspapers since 2005, turning many cities into news “mirages.” This panel will explore the impact of the shifting media environment on public safety and city governments, including the decline in reliable media coverage and reduced reporting on city council meetings.

Drawing from the experience of city officials and reporters, along with the support of the California Association of Public Information Officers and an in- depth feature article in Western City magazine, this panel will explore how some cities are finding new ways to communicate essential information to residents and other efforts to build more local reporting capacity.

Moderator: Brian Hendershot, Managing Editor, Western City Magazine, Cal Cities
Speakers: Soheila Bana, Council Member, City of Richmond Patricia Lock Dawson, Mayor, City of Riverside
Christa Scharfenberg, Project Director, UC Berkeley Journalism - CA Local News Fellowship
Amy Williams, Assistant to the City Manager/Chief of Staff, Sacramento

Addressing Climate and Environmental Inequities in Black Communities Black communities face disproportionate climate risks, from health disparities like asthma to economic instability due to environmental hazards. Despite state mandates such as SB 272 requiring climate adaptation planning, funding gaps and equity considerations remain unaddressed, leaving these neighborhoods vulnerable. This panel will explore how local governments can drive meaningful change by prioritizing climate resilience funding, green job creation, housing equity, and community-led solutions. Join us for a critical discussion on

advancing environmental justice and ensuring Black communities have a voice in climate policy and adaptation efforts.

Moderator: Princess Washington, Council Member, City of Suisun City Speakers: Troy Finley, President, National Action Network Bay Area Zoe Siegel, Senior Director of Climate Resilience, Greenbelt Alliance

3:15-3:45 p.m.

Break

3:45-5:00 p.m.

Concurrent Sessions

Gangs Out of Downey: A Crime Prevention Model
This session will highlight the impactful gang prevention efforts led by Gangs Out of Downey (GOOD), in collaboration with community partners, including the City of Downey. It will showcase how these partnerships create efficient, community- driven strategies to support the safety and well-being of Downey’s youth and their families. GOOD and its partners leverage their expertise and resources to provide intervention, prevention, and diversion services, aligning with National Gang Center best practices that emphasize engaging community groups, after- school activities, and family support programs. Key initiatives like Kids & Cops Day and the School Resource Officer (SRO) program will be explored, demonstrating how these programs foster trust and positive relationships between youth and law enforcement. The City of Downey’s financial support, including Community Development Block Grant funds and contributions to GOOD’s programs and events, highlights a shared commitment to providing pathways for opportunity and well-being for young residents. Through these collaborative efforts, GOOD has been instrumental in maintaining Downey as a gang-free city, raising awareness about gang-related dangers, and empowering local youth to pursue positive futures.

Moderator: Roger Bradley, City Manager, Downey
Speakers: Darrell Jackson, Founder, 10-20 Club Inc.

Scott Loughner, Chief of Police, Downey Police Department Hector Sosa, Mayor, City of Downey

California's Economic Outlook: Navigating the Future with Data-Driven Insights Join UCLA Anderson Forecast and Avenu Insights & Analytics for an in-depth analysis of California's economic landscape and emerging trends that impact cities and their leaders. For over six decades, UCLA Anderson Forecast has delivered highly respected economic forecasts, while Avenu has guided California’s local governments with insights on regional and local trends for over 40 years. This session provides a comprehensive view of both the state and local economic forecasts, equipping leaders with actionable insights to support resilient, prosperous communities
Moderator: Reva Feldman, Retired City Manager, Malibu

Speakers: Thomas Adams, Director of Sales and Use Tax Audit, Avenu Insights & Analytics
Jerry Nickelsburg, Professor, UCLA

Friday, April 25

8:00-11:00 a.m.

Registration Open

8:00-9:00 a.m.

Networking Breakfast

8:45-10:00 a.m.

Concurrent Sessions

Navigating PFAS Litigation: Securing Municipal Remediation Funds This session will provide an in-depth look at the legal strategies and current overview of PFAS litigation, focusing on how municipal lawyers can protect clients and secure funds for PFAS remediation. As environmental concerns and regulations intensify, city leaders must understand statute of limitations issues, emerging regulations, and the current status of nationwide PFAS litigation, including the importance of timely action. Discover critical insights into the current settlements, future settlements, multi-district litigation (MDL) status, significant deadlines, and the role of municipal attorneys in protecting public health by securing financial resources for their communities.

Speaker: Michael Stag, Managing Partner, Stag Liuzza

Earning Public Trust: Practical Strategies for Transparent and Effective Leadership Trust is the cornerstone of good governance and effective collaboration with our communities, and elected leaders play a pivotal role in fostering trust with our cities. Clear, transparent messaging, publicly addressing resident concerns and openly acknowledging mistakes are keen aspects of trust building exercises. In this session, the panel will explore proven strategies for building trust with residents. From transparency in decision-making to council processes and decorum standards, attendees will learn practical approaches that forge collaboration and not division in the city-resident relationship. This session will highlight experiences of elected leaders and public servants who have successfully navigated challenges that either threatened or rebuilt trust in their cities.

Moderator: Ryder Smith, President, Tripepi Smith
Speakers: Dante Hall, City Manager, Hercules
Brenda Olmos, Council Member, City of Paramount

10:30 a.m.-12:00 p.m.

Closing General Session: What Makes Each Generation Want to Vote Age matters . . . but maybe not in the way you are thinking. What motivates Gen-X to go to the ballot box or keeps them on the sidelines is different than what moves Gen-Z one way or the other. This session will look at what makes each generation unique, what motivates them to vote, and how to create personalized messages to better connect with each age group. In addition to exploring the differences between Boomers and Millennials or Generation-X and Generation-Z, we'll look at some of the things all age groups have in common.

This high-energy, interactive, and inspiring session will make you think, laugh, and learn.

Speaker: Lee Silber, Lead Trainer, Creative-Lee Speaking

Total Remaining Balance
$ 11,659.59 -$ 1,659.59
1 Long Beach Annual Conference and Expo: Oct 16 - 18, 2024 $ 2,685.65 2 Cities Association of SCC Annual Holiday Dinner: Dec 8, 2024 $ 50.00 3 League of Cal Cities 2025 New Mayors and Council Members Academy: Jan 21-23$ 1408.19 4 USCM 93rd Winter Meeting: Jan 16 - 20, 2025 $ 5,723.55 5 2025 Peninsula Legislators Meeting Attendance Fee  $ 126.80 estimates only 6 Cal Cities City Leaders Summit April 23-35 $1,665.40 estimates only Total Remaining Balance
$ 75.00 $ 9,925.00
1 Cities Association of SCC Annual Holiday Dinner: Dec 8, 2024 $ 75.00 Total Remaining Balance
$ 7468.95 $ 2,531.05
1 Long Beach Annual Conference and Expo: Oct 16 - 18, 2024 Cancelation fee only $ 75.00
2 USCM 93rd Winter Meeting: Jan 16 - 20, 2025- $ 5,653.55 3 LoCC 2025 New Mayors and Council Members Academy-cancellation fee only $ 75.00 4 Cal Cities City Leaders Summit April 23-35 $1,665.40 estimates only Total Remaining Balance
$ 3,957.47 $ 6,042.53
1 Long Beach Annual Conference and Expo: Oct 16 - 18, 2024 Cancelation fee only $ 75.00
2 2025 NorCal Mayors and Council Members Academy Reg $ 1408.19 3 USCM 93rd Winter Meeting: Jan 16 - 20, 2025-Flight cancellation fee $ 758.88 4 Cities Association of SCC Annual Holiday Dinner: Dec 8, 2024 $ 50.00 5 Cal Cities City Leaders Summit April 23-35, 2025 $1,665.40 estimates only Total Remaining Balance
$ 3504.05 $ 6,495.95
1 Cities Association of SCC Annual Holiday Dinner: Dec 8, 2024 $ 50.00 2 2025 NorCal Mayors and Council Members Academy Reg $ 1498.20 3 Sterling Hotel $ 290.45
4 Cal Cities City Leaders Summit April 23-35 $1,665.40 estimates only Councilmember Lam
Training/Travel Event FY24-25 Amount
Expended/Estimates
Councilmember Lien
Training/Travel Event FY24-25 Amount
Expended/Estimates
Councilmember Chua
Training/Travel Event FY24-25 Amount
Expended/Estimates
Vice Mayor Barbadillo
Training/Travel Event FY24-25 Amount
Expended/Estimates
ATTACHMENT 2
Council Conferences/Trainings FY 24-25 Budget Tracking Sheet Mayor Montano
Training/Travel Event FY24-25 Amount
Expended/Estimates

CITY OF MILPITAS

AGENDA REPORT
(AR)
Item Title: Adopt a Resolution Expressing Support by the City of Milpitas to Fully Fund Metro Tango Subdistrict Park from TASP Impact Fees per the Outdoor Recreation Legacy Partnership Grant Application Requirement (Staff Contact:

Christian Di Renzo, Public Works Director, 408-586-2602; and Michael Silveira, City Engineer, 408-586-3303)
Category: Consent Calendar-Community Development
Meeting Date: 3/4/2025
Recommendation: Adopt a resolution expressing support by the City of Milpitas to fully fund Metro Tango Subdistrict Park, Project No. 2023, in the amount of $10 million from TASP Impact Fees per the Outdoor Recreation Legacy Partnership Grant Application requirement.

BACKGROUND:

The Metro Tango Subdistrict Park, Project No. 2023 (Project) is in the adopted 2025-2029 Capital Improvement Program. The Project provides for the design and construction of a new 4-acre park on two city- owned parcels at 1831 Tarob Court and 1700 Sango Court within the Tango Subdistrict of the Milpitas Metro Specific Plan.

On March 19, 2024, the City Council approved a design service agreement with Callander Associates Landscape Architecture, Inc. (CALA) in the amount of $420,237 for planning, community outreach, and design services. The Project is currently in the community outreach phase.

Blais and Associates (B&A), a firm retained by the City for both grant identification and writing services, identified the Outdoor Recreation Legacy Partnership (ORLP) Grants Program as a potential funding opportunity for the Project. The ORLP provides matching grants up to 50% of the total project costs to support park projects in underserved communities that lack access to parks and outdoor recreation. It is managed by the U.S. Department of the Interior – National Parks Service and funded through the Land and Water Conservation Fund. After a comprehensive evaluation of the grant requirements, staff determined the Project would qualify for this funding opportunity.

ANALYSIS:

The ORLP grant application process is conducted in two steps where the California Department of Parks and Recreation's Office of Grants and Local Services reviews applications at the state level and then selects applications to move forward to the National Park Service to compete in the nationwide competition. The deadline for the first-round application is March 11, 2025.

The Project meets all eligibility criteria except for the committed funding requirement whereby the applicant must commit 100% of the funding at the time of first round application submission. The ORLP operates as a reimbursement-based program where the applicant must be prepared to finance the project’s cost, with the understanding that the project would be reimbursed up to 50% upon completion.

Based on feedback from two rounds of community engagement, CALA has developed a comprehensive conceptual design that reflects community priorities and aims to create a multi-use space for all residents. The park is anticipated to feature tennis court with lighting, bankshot basketball, community garden, dog play area, walking pathways, restroom, fitness stations, tot and youth play areas, landscaping, seating areas, shaded group picnic areas, safety lighting, and on-street parking. The preliminary Project cost is $10 million. Staff anticipates presenting the final refined conceptual plan to the Parks, Recreation & Cultural Resources

Commission in May and City Council for approval in June 2025. The Project design is expected to be completed by the end of 2026 to start the construction in 2027, pending construction of the street network.

The Project, identified as number DB #28, is listed in the Basic Infrastructure Program of the Transit Area Specific Plan (TASP) and earmarked to be funded by the TASP Impact Fee. Staff recommends the City Council approve a budget appropriation of $10 million to the Project to meet the funding commitment requirement of ORLP to proceed with the application submission.

POLICY ALTERNATIVE(S):

Alternative 1: Do not support to fully fund the Project in the amount of $10 million from the TASP Impact Fee to apply for the Outdoor Recreation Legacy Partnership Grant Application.

Pros: The City will not allocate resources to prepare the grant application.

Cons: The City will forgo an opportunity to supplement, up to $5 million, the Project budget of $10 million. If the Project is selected, the designated funding from the TASP Impact Fee can be reallocated to other park projects listed in the Basic Infrastructure Program of the Transit Area Specific Plan in the category of Park and Community Facilities (DB#21-36).

Reasons not recommended: The City will forgo an opportunity to supplement up to $5 million of the park’s estimated construction cost. If the Project is selected, the earmarked funding from the TASP Impact Fee can help support the financing of other park projects listed in the Basic Infrastructure Program of the Transit Area Specific Plan in the category of Park and Community Facilities (DB#21-36).

FISCAL IMPACT:

There is approximate of $49.6m in the TASP Impact Fee fund balance where $19.6m is designated for the category of Park and Community Facilities (DB#21-36). There is sufficient funding in TASP to meet the funding requirement per the ORLP grant criteria.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):

The proposed activity of applying for a grant is not a project pursuant to the California Environmental Quality Act (CEQA) Guidelines Section 15378(b). The fiscal management of budgeting is an ongoing administrative fiscal activity and is not subject to CEQA pursuant to CEQA Guidelines Section 15060(c)(3). The programmatic impacts of having a park in this location were previously analyzed and addressed in the Environmental Impact Report for the Milpitas Metro Specific Plan (SCH#: 2006032091), and no further environmental review is required pursuant to CEQA Guidelines Section 15162 as the present action presents no substantial changes to that prior project or the circumstances under which it would be undertaken and no new information of substantial importance has arisen. To the extent any further environmental review is required, it will be completed prior to the commitment to any specific project action beyond the scope of the prior environmental review.

RECOMMENDATION:

Adopt a resolution expressing support by the City of Milpitas to fully fund Metro Tango Subdistrict Park, Project No. 2023, in the amount of $10 million from TASP Impact Fee per the Outdoor Recreation Legacy Partnership Grant Application requirement.

ATTACHMENT(S):
a) Resolution

RESOLUTION NO. _______

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MILPITAS

EXPRESSING SUPPORT TO FULLY FUND METRO TANGO SUBDISTRICT PARK, PROJECT NO. 2023 IN THE AMOUNT OF $10 MILLION FROM TASP

IMPACT FEE PER THE OUTDOOR RECREATION LEGACY PARTNERSHIP

GRANT APPLICATION REQUIREMENT
WHEREAS, the City of Milpitas, California (the “City”) is a municipal corporation, duly organized under the constitution and laws of the State of California; and WHEREAS, Metro Tango Subdistrict Park, Project No. 2023 (“Project”) is in the adopted 2025- 2029 Capital Improvement Program; and
WHEREAS, The Project, identified as number DB #28, is listed in the Basic Infrastructure Program of Transit Area Specific Plan (TASP) and is designated to be funded by the TASP Impact Fee.

WHEREAS, On March 19, 2024, City Council approved a design services agreement with Callandar Associates Landscape Architecture, Inc. in the amount of $420,237 for the planning, community outreach, and design services for the park; and WHEREAS, The preliminary Project cost is $10 million; and WHEREAS, The Outdoor Recreation Legacy Partnership Grants Program provides matching grants of up to 50% of total project costs to cities for park projects in underserved communities lack access to parks and outdoor recreation; and
WHEREAS, The ORLP operates as a reimbursement-based program where the applicant must be prepared to fully fund the project cost, with the understanding the project would be reimbursed up to 50% upon completion. The program mandates that applicants fully commit 100% of the project funding at the time of application.

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

SECTION 1. Recitals
The City Council has duly considered the full record before it, which may include but is not limited to such things as the City staff report, testimony by staff and the public, and other materials and evidence submitted or provided to City Council. Furthermore, the recitals set forth above are found to be true and correct and are incorporated herein by reference; and
SECTION 2. City Council Approval
The City Council of the City of Milpitas hereby adopts Resolution XXXX expressing support by the City of Milpitas to fully fund Metro Tango Subdistrict Park, Project No. 2023, in the amount of $10 million from TASP Impact Fee per the Outdoor Recreation Legacy Partnership Grant Application Requirement.

2 Resolution No. xxxx
PASSED AND ADOPTED this day of , 2025, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

ATTEST: APPROVED:
_____________________________ _______________________
Mary Lavelle, City Clerk Suzanne Guzzetta, City Clerk Carmen Montano, Mayor APPROVED AS TO FORM:

Christopher Creech, Acting City Attorney

CITY OF MILPITAS

AGENDA REPORT
(AR)
Item Title: Adopt a Resolution Initiating Proceedings for the Annual Levy and Collection of Assessments and Ordering the Preparation of the Annual Engineer’s Report for Landscaping and Lighting Maintenance Assessment District No. 95-1, McCarthy Ranch, for Fiscal Year 2025-26 (Staff Contact: Christian Di Renzo, Public Works Director, 408-586-2602; and Michael Silveira, City Engineer, 408-586-3303) Category: Consent Calendar-Community Development
Meeting Date: 3/4/2025
Recommendation: Adopt a resolution initiating proceedings for the annual levy and collection of assessments, and ordering the preparation of the Annual Engineer’s Report for Landscaping and Lighting Maintenance Assessment District No. 95-1, McCarthy Ranch, for Fiscal Year 2025-26.

BACKGROUND:

On May 2, 1995, the City Council completed its proceedings in accordance with and pursuant to the Landscaping and Lighting Act of 1972, establishing the Landscaping and Lighting Maintenance Assessment District No. 95-1 - McCarthy Ranch (LLMD 95-1) for the improvement and maintenance of public landscaping, irrigation, pedestrian lighting, gateway columns and entry signs along Ranch Drive and North McCarthy Boulevard between State Route 237 and Dixon Landing Road as shown on the attached location map (Attachment 1).

ANALYSIS:

The Landscaping and Lighting Act of 1972 requires the adoption of a resolution (Attachment 2) directing preparation of the annual engineer’s report evaluating LLMD 95-1 maintenance and improvement costs and generally describing any proposed new improvements or any substantial changes in existing improvements. At subsequent meetings, the City Council will be asked to approve the completed engineer’s report and schedule a public hearing for the proposed assessment this coming May and June. Upon City Council approval, the assessment for the maintenance and improvement work will be added to the 2025-26 property tax bills of property owners within the boundaries of LLMD 95-1.

POLICY ALTERNATIVE(S):

Alternative 1:

Not adopt a resolution initiating proceeding for the annual levy and collection of assessments and ordering the preparation of the annual engineer’s report for LLMD 95-1.

Pros: None
Cons: If the City Council does not adopt the Resolution according to the Landscaping and Lighting Act of 1972, the City will be unable to collect assessments for LLMD 95-1.

Reason not recommended: Staff recommends approving the Resolution confirming the assessment and ordering the levy for FY 2025-26 to allow for the continued maintenance and service of LLMD 95-1.

FISCAL IMPACT:

The levy and collection of assessments provides a dedicated revenue source for the City to improve and maintain public landscaping, irrigation, pedestrian lighting, gateway columns and entry signs along Ranch Drive and North McCarthy Boulevard between State Route 237 and Dixon Landing Road within LLMD 95-1.

The completion of the engineer’s report will determine the FY 2025-26 maintenance budget for LLMD 95-1.

Otherwise, this action item has no fiscal impact.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):

Levy and collection of assessment is not considered a project under CEQA as there will be no direct or reasonably foreseeable indirect physical change in the environment.

RECOMMENDATION:

Adopt a resolution initiating proceedings for the annual levy and collection of assessments and ordering the preparation of the Annual Engineer’s Report for Landscaping and Lighting Maintenance Assessment District No. 95-1, McCarthy Ranch, for Fiscal Year 2025-26.

ATTACHMENT(S):
a) Location Map
b) Resolution

CITY OF MILPITAS
LANDSCAPING MAINTENANCE DISTRICT (LMD) 95-1
(N.T.S.)
2025-2026 FISCAL YEAR LANDSCAPE AREA FUNDED FOR MAINTENANCE

RESOLUTION NO. ___

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

PROCEEDINGS FOR THE LEVY AND COLLECTION OF ASSESSMENTS FOR THE LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT NO. 95-1 - MCCARTHY RANCH FOR FISCAL YEAR 2025-26, ORDERING THE PREPARATION OF THE ANNUAL ENGINEER’S REPORT, AND MAKING CERTAIN FINDINGS

RELATED THERETO
WHEREAS, on May 2, 1995, the City Council (the “City Council”) of the City of Milpitas (the “City”) completed its proceedings in accordance with and pursuant to the Landscaping and Lighting Act of 1972, Part 2, Division 15 of the California Streets and Highways Code (commencing with Section 22500) (the “Act”) to establish Landscaping and Lighting Maintenance Assessment District No. 95-1 - McCarthy Ranch (the “Maintenance District”), for the purpose of paying for the installation, construction, maintenance and/or servicing of certain improvements authorized under the Act, and incidental expenses in connection therewith (collectively, the “Improvements”); and WHEREAS, Section 22620, et seq. of the Act provides for the levy of annual assessments after formation of the Maintenance District; and
WHEREAS, the City has retained NBS Government Finance Group as assessment engineer for the purpose of assisting with the annual levy of the Maintenance District, and the preparation and filing of a report in accordance with Section 22565, et seq., of the Act (the “Engineer’s Report”); and WHEREAS, pursuant to Section 22622 of the Act, the City Council wishes to initiate proceedings to provide for the levy of assessments for Fiscal Year 2025-26 in order to provide funding for the necessary costs and expenses pertaining to the maintenance of the Improvements within the Maintenance District.

NOW, THEREFORE, the City Council 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. Engineer’s Report: The City Council hereby orders NBS Government Finance Group to prepare and file with the City Clerk the Engineer’s Report concerning the levy and collection of assessments within the Maintenance District for the fiscal year commencing July 1, 2025, and ending June 30, 2026, in accordance with Section 22565, et seq., of the Act.

3. New Improvements or Changes to Existing Improvements: There are no changes to existing Improvements nor are there any items being added to the list of Improvements previously approved at the formation of the Maintenance District.

PASSED AND ADOPTED this _____ day of _________, 2025 by the following vote:

AYES:

NOES:

2 Resolution No. ___
ABSENT:

ABSTAIN:

ATTEST: APPROVED:
_____________________________ _____________________________ Suzanne Guzzetta, City Clerk Carmen Montano, Mayor
APPROVED AS TO FORM:
_____________________________
Christopher Creech, Assistant City Attorney

CITY OF MILPITAS

AGENDA REPORT
(AR)
Item Title: Adopt a Resolution Initiating Proceedings for the Annual Levy and Collection of Assessments and Ordering the Preparation of the Annual Engineer’s Report for Landscaping and Lighting Maintenance Assessment District No. 98-1, Sinclair Horizon, for Fiscal Year 2025-26 (Staff Contact: Christian Di Renzo, Public Works Director, 408-586-2602; and Michael Silveira, City Engineer, 408-586-3303) Category: Consent Calendar-Community Development
Meeting Date: 3/4/2025
Recommendation: Adopt a resolution initiating proceedings for the annual levy and collection of assessments and ordering the preparation of the annual engineer’s rfor Landscaping and Lighting Maintenance Assessment District No. 98-1, Sinclair Horizon, for Fiscal Year 2025-26.

BACKGROUND:

On June 16, 1998, the City Council completed its proceedings in accordance with and pursuant to the Landscaping and Lighting Act of 1972, establishing the Landscaping and Lighting Maintenance Assessment District No. 98-1 - Sinclair Horizon (LLMD 98-1) for the improvement and maintenance of public landscaping, irrigation, and pedestrian walking path adjacent to Sinclair Frontage Road and Los Coches Creek abutting the Sinclair Horizon residential subdivision as shown in the attached location map (Attachment 1).

ANALYSIS:

The Landscaping and Lighting Act of 1972 requires adoption (Attachment 2) of a resolution directing preparation of the annual engineer’s report evaluating LLMD 98-1 maintenance and improvement costs and generally describing any proposed new improvements or any substantial changes in existing improvements. At subsequent meetings, the City Council will be asked to approve the completed engineer’s report and to schedule a public hearing for the proposed assessment this coming May and June. Upon City Council approval, the assessment for the maintenance and improvement work will be added to the 2025-26 property tax bills of property owners within the boundaries of LLMD 98-1.

POLICY ALTERNATIVE(S):

Alternative 1:

Not adopt a resolution initiating proceeding for the annual levy and collection of assessments and ordering the preparation of the annual engineer’s report for LLMD 98-1.

Pros: None
Cons: If the City Council does not adopt the Resolution according to the Landscaping and Lighting Act of 1972, the City will be unable to collect assessments for LLMD 98-1.

Reason not recommended: Staff recommends approving the Resolution confirming the assessment and ordering the levy for FY 2025-26 to allow for the continued maintenance and service of LLMD 98-1.

FISCAL IMPACT:

The levy and collection of assessments provides a dedicated funding resource for the City to improve and maintain public landscaping, irrigation, and pedestrian walking path adjacent to Sinclair Frontage Road and Los Coches Creek abutting the Sinclair Horizon residential subdivision within LLMD 98-1. The completion of the engineer’s report will determine the FY 2025-26 maintenance budget for the LLMD 98-1. Otherwise, this action item has no fiscal impact.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):

Levy and collection of assessment is not considered a project under CEQA as there will be no direct or reasonably foreseeable indirect physical change in the environment.

RECOMMENDATION:

Adopt a resolution initiating proceedings for the annual levy and collection of assessments and ordering the preparation of the Annual Engineer’s Report for Landscaping and Lighting Maintenance Assessment District No. 98-1, Sinclair Horizon, for Fiscal Year 2025-26.

ATTACHMENT(S):
a) Location Map
b) Resolution

CITY OF MILPITAS
LANDSCAPING MAINTENANCE DISTRICT (LMD) 98-1
(N.T.S.)

2025-2026 FISCAL YEAR LANDSCAPE AREA FUNDED FOR MAINTENANCE S T

RESOLUTION NO. ___

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

PROCEEDINGS FOR THE LEVY AND COLLECTION OF ASSESSMENTS FOR THE LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT NO. 98-1 SINCLAIR HORIZON FOR FISCAL YEAR 2025-26, ORDERING THE PREPARATION OF THE ANNUAL ENGINEER’S REPORT, AND MAKING CERTAIN FINDINGS

RELATED THERETO
WHEREAS, on June 16, 1998, the City Council (the “City Council”) of the City of Milpitas (the “City”) completed its proceedings in accordance with and pursuant to the Landscaping and Lighting Act of 1972, Part 2, Division 15 of the California Streets and Highways Code (commencing with Section 22500) (the “Act”) to establish Landscaping and Lighting Maintenance Assessment District No. 98-1 - Sinclair Horizon (the “Maintenance District”), for the purpose of paying for the installation, construction, maintenance and/or servicing of certain improvements authorized under the Act, and incidental expenses in connection therewith (collectively, the “Improvements”); and WHEREAS, Section 22620, et seq. of the Act provides for the levy of annual assessments after formation of the Maintenance District; and
WHEREAS, the City has retained NBS Government Finance Group as assessment engineer for the purpose of assisting with the annual levy of the Maintenance District, and the preparation and filing of a report in accordance with Section 22565, et seq., of the Act (the “Engineer’s Report”); and WHEREAS, pursuant to Section 22622 of the Act, the City Council wishes to initiate proceedings to provide for the levy of assessments for Fiscal Year 2025-26 in order to provide funding for the necessary costs and expenses pertaining to the maintenance of the Improvements within the Maintenance District.

NOW, THEREFORE, the City Council 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. Engineer’s Report: The City Council hereby orders NBS Government Finance Group to prepare and file with the City Clerk the Engineer’s Report concerning the levy and collection of assessments within the Maintenance District for the fiscal year commencing July 1, 2025, and ending June 30, 2026, in accordance with Section 22565, et seq., of the Act.

3. New Improvements or Changes to Existing Improvements: There are no changes to existing Improvements nor are there any items being added to the list of Improvements previously approved at the formation of the Maintenance District.

PASSED AND ADOPTED this ______ day of __________, 2025 by the following vote:

AYES:

NOES:

2 Resolution No. ____
ABSENT:

ABSTAIN:

ATTEST: APPROVED:
_____________________________ _____________________________ Suzanne Guzzetta, City Clerk Carmen Montano, Mayor
APPROVED AS TO FORM:
_____________________________
Christopher Creech, Assistant City Attorney

CITY OF MILPITAS

AGENDA REPORT
(AR)
Item Title: Receive an Update on the Security Improvements at the McCarthy Ranch Sewer Lift Station (Main Lift) and Determine that the Condition Continues to Constitute an Emergency (Staff Contact: Christian Di Renzo, Public Works Director, 408-586-2602)
Category: Consent Calendar-Community Services and Sustainable Infrastructure Meeting Date: 3/4/2025
Recommendation: (1) Receive an update on the security improvements at the McCarthy Ranch Sewer Lift Station; and (2) Determine by a four-fifths vote that the condition continues to constitute an emergency.

BACKGROUND:

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

Consistent with applicable State law and Council Resolution, on July 30, 2024, the Public Works Director declared an emergency and authorized the City to contract with Trofholz Technologies and Diamond Fencing to implement various security and access control improvements to the McCarthy Ranch Sewer Lift Station (Main Lift). Further, within the required timeframe the Public Works Director informed the City Council via Information Memorandum on July 31, 2024, regarding the emergency authorization, the reasons for the authorization, and the cost for repair in a not to exceed amount of $700,000.

PROJECT/STATUS UPDATE:

On January 25, 2025, the Main Lift station experienced another burglary resulting in additional property damage and theft of City vehicles. Three Ford-F250 heavy-duty pickup trucks were stolen and at least one of them was used to forcibly drive through the wrought-iron gate. The vehicles have since been recovered, although staff is assessing the full extent of the damage. Property damage to Main Lift was limited to the two wrought-iron gates. The affected gates are located at the main entry gate into the Main Lift station, and between the Main Lift station and Corporation Yard. The newly installed fence was not affected by his incident.

The main entrance has been outfitted with 8-foot temporary fencing reinforced security screens. Replacement gates are currently being fabricated and anticipated to be on-site the week of March 24, 2025. Target installation date and full operation is tentatively scheduled for the first week of April.

The budgeted project contingency should be sufficient to cover the replacement of the recently damaged gates.

The installation of security enhancements by Trofholz Technologies, Inc. were also not compromised.

Information Technology staff is working on establishing the network connectivity to operate the security cameras, card readers, and motion sensors at the Main Lift facility. Cameras on the electrical building are operational and provide coverage/recording of the main gate as well as the sewer pump station buildings.

Milpitas Police Department have also provided mobile security camera tower for monitoring the property.

Access control readers and motions sensors have been installed and are active. Remaining cameras throughout the property are currently undergoing testing and verification in coordination with the Information Technology and Police departments.

FISCAL IMPACT:

Funding for these repairs is available in the City’s Capital Improvement Program (CIP) budget. CIP Project 6124 – Sewer Pump Station Rehabilitation Project will fund the installation of security cameras, card readers, and motion sensors. The funding source of this CIP project is the Sewer Infrastructure Fund. The available balance as of 02/25/2025 is $1,263,580.

CIP 6130 – Main Lift Odor Emission Control Project will fund the removal and replacement of the perimeter fencing. The funding source of this CIP Project are Sewer Infrastructure Fund, and Sewer Treatment Fund.

The available balance as of 2/25/2025 is $5,365.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):

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

RECOMMENDATION:
1) Receive an update on the security improvements at the McCarthy Ranch Sewer Lift Station. 2) Determine by a four-fifths vote that the condition continues to constitute an emergency.

ATTACHMENT(S):

None.

CITY OF MILPITAS

AGENDA REPORT
(AR)
Item Title: Adopt a Resolution approving an Economic Development Incentive Agreement with Rivian, LLC, for the Operation of an Industrial Facility Located at 755 Yosemite Drive (Staff Contact: Alex Andrade, Economic Development & Strategic Initiatives Director, 408-586-3046; and Luz Cofresí-Howe, Finance Director, 408- 585-3111)
Category: Public Hearings-Community Development
Meeting Date: 3/4/2025
Recommendation: (1) Conduct a public hearing as required by Government Code Section 53083 for the proposed Economic Development Subsidy Report; and
(2) Adopt a resolution approving an Economic Development Incentive Agreement by and between the City of Milpitas and Rivian, LLC for the operation of an industrial facility located at 755 Yosemite Drive and authorize the City Manager to execute the agreement.

BACKGROUND:

The City Council has identified Economic Development and Job Growth as priorities, with a focus on strengthening the economic foundations that support the community’s prosperity and opportunity while ensuring a sustainable and livable city. In support of this City Council priority, the Office of Economic Development (OED) focuses on attracting, retaining, and expanding business and employment opportunities to stimulate the local economy and diversify City revenue sources to enhance Milpitas’ economic vitality.

City staff has been working on a significant business attraction effort with Rivian, LLC (Rivian) for several months. Rivian is an American electric vehicle (EV) company established in 2009. Rivian designs and manufactures all-electric vehicles, with its flagship models R1T (pickup truck) and R1S (sports utility vehicle), and commercial vans, aimed at reducing greenhouse gas emissions. In March 2024, Rivian introduced three midsize models, the R2, R3, and R3X to deliver performance and utility at an affordable price. Rivian employs 4,000 people in California and has a total workforce of 16,000 in the United States. Rivian has attracted significant investment from major partners, including Amazon. Amazon has committed to purchasing 100,000 custom electric delivery vans, with more than 20,000 already in use worldwide, including approximately 110 operating in Milpitas. In addition, German automaker Volkswagen has announced plans to invest $5.8 billion in Rivian by 2027 through a joint venture and, on November 26, 2024, the United States Department of Energy announced a conditional commitment to Rivian for up to $6.57 billion direct loan to finance the development and construction of Project Horizon, an EV manufacturing facility located in Georgia.

Motivated by consumer demand and investment opportunities, Rivian is in expansion mode and interested in occupying 755 Yosemite Drive in Milpitas (Attachment A: Site Plan) to function as a Last Mile Hub (LMH). The 755 Yosemite Drive LMH is the location for inspections/service, sales/leases, and importantly, where customers pick up their vehicles. Rivian believes the business activities at the Milpitas LMH will result in substantial public benefits to the City in sales tax revenues, as these business activities are recorded at the point of delivery.

Consequently, Rivian submitted a letter of intent to the City of Milpitas, proposing a tax revenue-sharing arrangement.

This Agenda Report describes the good-faith negotiation completed with Rivian resulting in net new revenues for the City and high-quality jobs for area residents. The Agenda Report presents the proposed Economic Development Subsidy Report (Report) as stipulated by State of California Government Code §53083 and requires a public hearing, and City Council-adopted resolution, and the Economic Development Incentive Agreement (Agreement) with Rivian.

ANALYSIS:

Business attraction efforts are critical to drive City economic growth by increasing tax revenues, creating job opportunities, fostering innovation, and enhancing the City’s business-friendly reputation. If the proposed Agreement with Rivian is approved by the City Council as recommended by staff, the action will meet several City goals of the Economic Development Strategy, General Plan 2040’s Economic Development Element, and the Climate Action Plan.
•Economic Development Strategy Goals: Create a resilient and sustainable local economy, capture emerging innovation and technologies, and identify forward-looking investment and growth opportunities. •General Plan 2040 Economic Development Element Actions:
oED 1-2 Promote and support innovative and emerging technologies for 21 st-century business and community needs;
oED 2-4 Facilitate development projects that provide sales tax revenues; and oED 4-1 Leverage public investments to enhance the City’s economic vitality and ensure Milpitas is a prosperous, healthy, and safe community that is attractive to business. •Climate Action Plan Circular and Green Economy:
oGE-1 Foster green and sustainable economic development opportunities and support circular economy policies;
oGE-1.1: Support and attract clean technology businesses and green jobs in Milpitas; and oGE-1.2: Incentivize and promote green business practices.

The City of Milpitas and its former Redevelopment Agency have executed economic development subsidies historically through sharing of property and sales tax revenue, financial assistance, property purchase, and grants. Agreements executed by the City of Milpitas and its former Redevelopment Agency include various business, developer, and Santa Clara County partnerships such as Silicon Graphics International, Clear Channel/Milpitas Sign Company, KLA-Tencor, South Main Street Senior Lifestyles, American Rescue Plan Act (Economic Vitality Investment Funds) grants to local businesses and hotels, and Santa Clara County on the Elmwood Properties.

Economic development subsidies are direct or indirect payments to individuals or businesses to assist the local economy. Direct subsidies are cash payments from the government or a targeted tax cut, whereas indirect subsidies take the form of discounts or forgiven charges. Subsidies may offset market failures and externalities to achieve greater economic efficiency. Governmental organizations have utilized subsidies to encourage firms to invest in research and development, job creation, and revenue generation.

The information below summarizes Rivian’s letter of intent, key business terms and conditions outlined in the proposed Agreement, and details of the Economic Development Subsidy Report required by California Government Code §53083, which was posted on the City’s website on February 21, 2025.

Rivian’s Letter of Intent (LOI)
In August 2024, Rivian submitted an LOI to the City, proposing a tax revenue-sharing arrangement. •Rivian would establish a LMH at 755 Yosemite Drive in Milpitas, which would offer sales and leasing, vehicle delivery and inspections, and servicing of all-electric, zero-emission vehicles manufactured off-site to customers;
•Rivian would maintain at least 25 high-quality jobs at the 755 Yosemite Drive LMH; and •Rivian proposed to receive 65% of local sales tax revenue generated at the 755 Yosemite Drive LMH while the City would receive the remaining 35%.

Staff from the City Manager’s Office, City Attorney’s Office, Finance Department, and OED met to review Rivian’s proposed LOI and develop a formal response. In November 2024, the Directors of the OED and Finance presented a counter-proposal to Rivian representatives, and, in February 2025, Rivian representatives agreed to the City counter-proposal on a tax-sharing agreement.

Economic Development Incentive Agreement
An Economic Development Incentive Agreement is a legal contract by and between the City of Milpitas and Rivian, LLC whereby a financial incentive is provided for benefits including sales tax revenues, job creation, and community benefits aimed at stimulating economic growth in Milpitas (Attachment B). Below are key business terms and conditions to which City staff and Rivian representatives have agreed to in concept through initial good-faith negotiations.

Key Business Terms and Conditions
Proposal: The City of Milpitas proposes an economic development incentive to Rivian, LLC. Rivian will remodel and operate an approximately 97,000 square-foot industrial facility located at 755 Yosemite Drive, Milpitas, CA 95053 in the Heavy Industrial (M2) zone to accommodate its LMH for inspections/service, sales/leases, and vehicle pick up. Rivian will receive payments made by the City from local sales taxes attributable to the 755 Yosemite Drive LMH business activities and received by the City from the State. Local sales taxes are defined as the portion of sales tax received by the City from the sales and use tax attributable to the sales, leasing, and servicing of vehicles delivered from the site, and any other business activities transacted at the site. The partnership with Rivian is expected to result in substantial sales tax revenues and new high-quality job opportunities. While Rivian is interested in operating in Milpitas, representatives have actively explored two other locations in the Bay Area.

Agreement Start Date: As of the writing of this Agenda Report, early 2026 is the targeted time frame. Rivian must meet all City permitting and State sales tax collection criteria.

Agreement End Date: The Economic Development Incentive Agreement will conclude 96 months (8 years) after the start date. If Rivian exercises its five (5) year lease extension, City staff and Rivian will renegotiate the Agreement and sales and use tax revenue sharing.
755 Yosemite Drive Lease Term: Rivian proposes to lease the 755 Yosemite Drive site for an initial eight (8) year term, with an option to extend the lease term for an additional five (5) years. The City is not a party to the 755 Yosemite Drive lease between Rivian and the landowner.

Point of Sale Designation: Rivian's 755 Yosemite Drive LMH shall consummate all taxable sales transactions resulting from Rivian's business activities at the site and identify the City as such in all reports to the California Department of Tax and Fees Administration (CDTFA), in accordance and conformity with the Bradley-Burns Uniform Local Sales and Use Tax Law (Revenue and Taxation Code 7200, et. seq.). Rivian shall designate the City as its “point of sale” for those Rivian products serviced, sold, and/or leased and other business activities that are attributable to the 755 Yosemite Drive LMH. Rivian shall maintain the appropriate master sales permits applicable to and required for the operation of the 755 Yosemite Drive LMH.

Tax Sharing Agreement:
•The City will not make economic incentive payments until Rivian pays local sales taxes to the CDTFA and the City has received its allocation of the respective sales taxes from the State. •The City estimates the annual Agreement Payments to Rivian as follows:

Agreement Computation Percentages
Years 1 to 3: 35% to Rivian, 65% to City
Years 4 to 8: 50% to Rivian, 50% to City
•Year 1: Agreement Payments to Rivian are estimated to total $1,037,190 with $1,926,210 to the City; •Year 2: Agreement Payments to Rivian are estimated to total $1,037,190 with $1,926,210 to the City; •Year 3: Agreement Payments to Rivian are estimated to total $1,728,650 with $3,210,350 to the City; •Years 4-8 combined: Agreement Payments to Rivian and City are estimated to total $12,347,500 each.

The estimated revenue gain for the City, over the 8-year term of the agreement is $19,410,270. The City estimates the total amount of the expenditure of public funds, or of revenue loss, because of the economic development subsidy will be up to $16,150,530 over the 8-year term of the agreement.

Economic Development Subsidy Report: As of January 1, 2014, Government Code §53083 requires the City of Milpitas to post the proposed Economic Development Subsidy Report (Attachment C) on the City website for the entire subsidy term; the initial posting took place on February 21, 2025. An economic development subsidy is triggered if the expenditure of any public funds or loss of revenue to a local agency in the amount of $100,000 or more, to stimulate economic development within a local jurisdiction occurs. A resolution is required under Government Code §53083 for the City Council consideration and adoption (Attachment D).

Land Use Entitlements: The project site is located at 755 Yosemite Drive in Milpitas. The building size equals 96,250 square feet of industrial space and the parcel measures 7.18 acres. The site is located within the Heavy Industrial (M2) Zoning District and falls under the Manufacturing land use designation in the General Plan. Rivian must secure all required City permits and pay all applicable fees. The proposed primary use of auto storage and repair is permitted by right in the M2 Zoning District. The described scope of work includes mostly interior tenant improvements and minor exterior building changes, including exterior signage. The minor exterior building changes will likely require a Minor Site Development Permit, which can be approved by staff or the Zoning Administrator. In addition, permits will be required for building, mechanical, electrical, and plumbing aspects, along with fire permits for fire alarms, sprinklers, and HazMat where applicable. Other permits may be needed for exterior site work and signage. Once the City receives the full package submittal with the scope of work, fees will be computed and finalized.

Defaults and Termination: Rivian does not have an obligation to continue operations at the site under the proposed Agreement. Rivian may discontinue business activities at any time, and the City remedy is to cease the sales tax sharing agreement. The City and Rivian will make a legitimate and good faith effort to meet and confer to reach a mutually satisfactory resolution to any disputes and alleged failures to meet its full obligations of the Agreement before sending a notice of default. If Rivian intends to terminate this Agreement resulting from an uncured City default, Rivian shall provide the City six (6) months' written notice.

Additional Public Benefits: The Agreement, if approved by the City Council, will cultivate a strong, stable, and diverse local economy. Partnering with Rivian will allow for supporting a growing business sector that is environmentally conscious and creates green jobs. Other public benefits and positive externalities are summarized here:
•Facility Construction: Tenant improvements are estimated at $3 to $3.5 million. Approximately 23,000 to 28,000 person-hours of temporary construction jobs will be created to complete the planned leasehold improvements.
•Facility Operation:
oMinimum of 25 full- and part-time professional and technical jobs. oHourly wages from $28 to $39 per hour.
oQualified Rivian staff will have employee benefits, including health insurance, bonuses, and 401(k) matching plan per rivianbenefits.com/us.
oRivian will use commercially reasonable efforts to recruit and hire City residents for any full- and part-time employment opportunities as determined by Rivian in its sole discretion. The City shall be authorized to post and advertise job recruitment information on the City’s website and other job recruitment sites within the region.
•Increased secured and unsecured property tax revenues resulting from tenant improvements enhancing the value of the leased property.
•Permit Fees: Development review and permit fees will be estimated upon formal application submittal. •Meets City Council Priority of Economic Development and Job Growth via the following documents:
oEconomic Development Strategy.
oGeneral Plan 2040 – Economic Development Element.
oClimate Action Plan.
•As additional consideration for the benefits conferred under this Agreement, Rivian further agrees to participate in supporting community benefit events and activities consistent with Rivian's practices and policies.
•Rivian’s business attraction effort allows Economic Development staff to utilize the EV leader’s prestige in the Innovation District’s plan to attract businesses within the automotive technology and artificial intelligence sectors.
•The 755 Yosemite Drive site includes an approximately 97,000 square foot industrial building with a parcel that measures over 7 acres, which makes it an efficient highest and best use and a lucrative one.

Conclusion
In summary, City executives from the City Manager’s Office, City Attorney’s Office, Finance Department, Planning Department, and the Office of Economic Development have conducted proper due diligence to ensure the economic analysis underscores sound community benefits to the Milpitas community and the City of Milpitas.

Staff asserts Rivian business activities will result in substantial public benefits via sales tax revenues due to the point of sale taking place at the point of delivery, 755 Yosemite Drive in Milpitas. Moreover, the goals of cultivating a strong, stable, and diverse local economy, as well as achieving fiscal sustainability and maintaining adequate revenues to provide quality and essential public services, will be met if the City Council approves the proposed Agreement with Rivian.

OED aims to encourage new development in key opportunity areas that provide high-quality work environments and competitive business locations. While Rivian is interested in operating in Milpitas, representatives explored sites in two other Bay Area locations. A successful business attraction effort with Rivian affirms Milpitas as a vital, vibrant location for innovative businesses seeking a welcoming business environment and talented and creative workforce.

On November 5, 2024, 80% of Milpitas voters voted for Measure J, the Public Services Reauthorization Measure, which continues the existing voter-approved 1/4-cent sales for 8 additional years to maintain Milpitas’ local services and quality of life. While Measure J will support many essential public services in the future, the City of Milpitas seeks a dynamic business landscape as it navigates through forthcoming fiscal sustainability uncertainties. Staff recommends the City Council approve the proposed Economic Development Incentive Agreement with Rivian as it will diversify the local economy and create a positive multiplier effect in attracting new investment to Milpitas.

POLICY ALTERNATIVES:

Alternative 1: Do not approve the Economic Development Incentive Agreement with Rivian at this time and return at a future date for consideration.

Pros: Staff would receive City Council comments and direction and return to City Council at a later date for approval of the Economic Development Incentive Agreement.

Cons: Depending on City Council direction, not approving the Economic Development Incentive Agreement may result in Rivian locating in another Bay Area jurisdiction, and the loss of high-quality jobs and significant tax sales revenues, which the City of Milpitas needs for long-term fiscal sustainability due to increasing costs in resources to ensure the community continues to receive essential public services.

Reason not recommended: The City Council’s continued commitment to ensuring Milpitas remains competitive in the ever-evolving economic landscape of Silicon Valley is vital. Approving the proposed Economic Development Incentive Agreement with Rivian ensures community members benefit from the partnership and Milpitas maintains its competitiveness in (1) attracting emerging technologies and innovation, (2) preparing the local workforce for future jobs, (3) identifying forward-looking investment and growth opportunities, (4) encouraging development activity, and (5) sustaining the City’s long-term fiscal health. For these reasons, Alternative 1 is not recommended.

FISCAL IMPACT:

The City of Milpitas will not make any direct upfront investment of City funds to the Rivian project. The City is obligated to make quarterly Agreement payments to Rivian only to the extent the City receives sales tax from the 755 Yosemite Drive LMH operation based on business activities that include inspections/service, sales/leases, and pick up of vehicles. Although not certain, the City and Rivian anticipate the initial allocation of sales tax revenues to be made within the first quarter of calendar year 2026. The sales tax payments are not guaranteed but are subject to the continuing presence in good standing and performance of the 755 Yosemite Drive LMH.

California Government Code §53083 requires the City of Milpitas to post the proposed Economic Development Subsidy Report, which includes an estimate of the economic performance of Rivian’s LMH and the revenues potentially available to the City as a community benefit, on the City’s website. Rivian contemplates the total

projected sales tax revenue over the 8-year life of the agreement as approximately $35,560,800, with $16,150,530 for Rivian and $19,410,270 for the City (or $2.42 million average per year). Additionally, an increase in point-of-sale revenues may also cause an increase in the County and State pool of revenue allocations.

It is important to note these sales tax revenue numbers are estimates only and cannot be used for financial forecasting and budgeting purposes. Actual sales numbers may vary significantly from these estimates based on currently known and unknown factors. As economic conditions and sales tax revenue are both highly volatile, revenue projections used for budget forecasting purposes must be based on actual revenues collected and established trends.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):

The proposed 755 Yosemite Drive LMH would occupy an existing building, and this associated action has no potential for resulting in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment and is not a project pursuant to Pub. Resources Code, § 21065 and Cal.

Code Regs., tit. 14, § 15378. Moreover, the present action does not approve that redevelopment and is at most a continuing administrative, fiscal, or maintenance activity that does not commit the City to any project that has the potential to result in either direct or indirect physical change in the environment and is not a project pursuant to Cal. Code Regs., tit. 14, § 15378.

RECOMMENDATION:
(1) Conduct a public hearing as required by Government Code Section 53083 for the proposed Economic Development Subsidy Report; and
(2) Adopt a resolution approving an Economic Development Incentive Agreement by and between the City of Milpitas and Rivian, LLC for the operation of an industrial facility located at 755 Yosemite Drive and authorize the City Manager to execute the agreement.

ATTACHMENTS:
(a) Site Map
(b) Economic Development Incentive Agreement
(c) Economic Development Subsidy Report
(d) Resolution

Attachment A – Site Map
755 Yosemite Drive, Zoning District M2, General Plan MFG Building Size: 96,250 SF of Industrial Space, Lot Size: 7.18 Acres

ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT

BETWEEN

THE CITY OF MILPITAS

A CALIFORNIA MUNICIPAL CORPORATION
AND

RIVIAN, LLC, A DELAWARE LIMITED LIABILITY COMPANY

CITY OF MILPITAS AND RIVIAN, LLC.

ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT P AGE 2 | 23

This ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT (“Agreement”) is entered this [____] day of [___], 2025 between the CITY OF MILPITAS (“City”), a public agency with its principal place of business at 455 East Calaveras Boulevard, Milpitas, California 95035, and RIVIAN, LLC, a Delaware limited liability company (“Rivian”) with its principal place of business at 13250 N.

Haggerty Road, Plymouth, MI 48170. City and Rivian are sometimes individually referred to herein as "Party" and collectively as "Parties".

RECITALS
WHEREAS, Rivian is considering leasing, remodeling, and operating an existing, approximately 97,000 square-foot industrial property located at 755 Yosemite Drive in Milpitas, California (“Property”), for the sales and leasing, vehicle delivery and inspections, and servicing of all-electric, zero-emission vehicles manufactured off-site and delivered by Rivian to customers from the Property (the “755 Yosemite Drive Last Mile Hub”); and WHEREAS, Rivian’s directed customer sales model allows customers to custom build their vehicles and choose their preferred delivery option, either at a Rivian location or through home delivery where available; and
WHEREAS, Rivian wishes to locate the 755 Yose mite Drive Last Mile Hub in the City because of the operational advantages including, but not limited to, the strategic location of the City which supports alternative transportation routes and methods, as well as access to and for customers in Northern California, and a qualiܪed workforce; and WHEREAS, the City has determined the establishment by Rivian of the 755 Yosemite Drive Last Mile Hub, which would participate in the sales process within the City, will generate substantial revenue for the City, create approximately twenty-ܪve (25) permanent, full-time highly-skilled jobs that meet City Council priorities of Economic Development and Job Growth, fulܪlling Economic Development Strategy implementation actions as well as supporting the Milpitas 2040 General Plan’s Economic Development Element Goals, to attract businesses focusing on emerging technologies including artiܪcial intelligence and automotive technology, facilitate the development of projects that provides sales and/or use tax receipts among other revenues, and leverage public investments to enhance the City’s economic vitality; and WHEREAS, the City has determined the ongoing operation of the 755 Yosemite Drive Last Mile Hub will yield substantial advantages for both the City and its community, including, but not limited to, new employment opportunities, property tax revenues, sales tax revenues, and other related beneܪts; and
WHEREAS, California Government Code §53083 mandates that local agencies shall provide public notice and a hearing concerning any economic development subsidy within their jurisdiction prior to obtaining approval from their governing body; and WHEAREAS California Government Code §53083 reporting requirements regarding an Economic Development Subsidy aimed at stimulating economic development within the local

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ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT P AGE 3 | 23

jurisdiction is considered to be triggered when the expenditure of public funds or a loss of revenue to a local agency amounts to $100,000 or more, as further detailed in Section 1.3.9; and WHEREAS, Compliance with California Government Code §53083 requires the City of Milpitas to post the information regarding the proposed economic development subsidy on the City website throughout the entire duration of the subsidy; and WHEREAS, Rivian wishes to apply for and obtain a Direct Pay Permit to self-assess and pay sales and/or use taxes directly to the California Department of Tax and Fee Administration (“CDTFA”) instead of to the lessor from whom the Property is leased; and WHEREAS, Rivian intends to designate the City as a point of sale for Rivian's products sold and/or leased, as further detailed in Section 2.2 below; and WHEREAS, the economic incentives provided in this Economic Development Incentive Agreement (“Agreement”) are intended to encourage Rivian to lease, remodel and operate the 755 Yosemite Drive Last Mile Hub within the City of Milpitas (“City”), serve as a community partner, and remain in the City at least eight (8) years; and WHEREAS, this Agreement is not, and shall not be construed to be, an approval or an agreement to issue permits or a granting of any right or entitlement by the City concerning the 755 Yosemite Drive Last Mile Hub, Rivian’s Business Activities or any other project, development, or construction by Rivian in the City; and
WHEREAS, accordingly, the City has concluded that entering into this Agreement and Rivian's performance of the Covenants serves a signiܪcant public purpose and further fosters a healthy local economy in the City.

1. T
ERMS.

1.1. Effective Date of this Agreement. The Agreement is dated [______ __, 2025] for reference purposes only. This Agreement will not become effective until the date on which all the following are true (“Effective Date”):

1.1.1. This Agreement has been approved and executed by an authorized signatory of Rivian and delivered to the City; and

1.1.2. Following all legally required notices and hearings, this Agreement has been approved by the City Council; and

1.1.3. This Agreement has been executed by the appropriate authorities of the City and delivered to Rivian; and

1.1.4. Rivian has entered into an agreement to lease the 755 Yosemite Drive Last Mile Hub within the City; and

1.1.5. The 755 Yosemite Drive Last Mile Hub is generating sales and/or use tax revenues for City.

If all the foregoing conditions precedent have not been satisܪed within ܪve (5) years of the Effective Date, this Agreement shall not thereafter become

CITY OF MILPITAS AND RIVIAN, LLC.

ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT P AGE 4 | 23

effective, and any prior signatures and approvals of the Parties will be deemed void and of no force or effect. The City Manager shall be able to administratively extend this Section 1.1.5 beyond that initial ܪve (5) year term, annually. Rivian will provide quarterly updates on the status of the Property selection to the City until that time the site selection for the 755 Yosemite Drive Last Mile Hub has been completed.

1.2. Parties to the Agreement

1.2.1. The City. The address of the City for the purposes of this Agreement is:

City of Milpitas
455 East Calaveras Boulevard
Milpitas, CA 95035
(408) 586-3000
Attn: City Manager
With Copies to the City Attorney and the City Finance Director The City represents and warrants to Rivian that, to the best of the City’s actual current knowledge:

1.2.1.1. The City is a public body, corporate and politic, exercising governmental functions and powers and organized and existing under the laws of the State of California;

1.2.1.2. The City has taken all actions required by law to approve the execution of this Agreement;

1.2.1.3. The City's entry into this Agreement and/or the performance of the City's obligations under this Agreement does not violate any contract, agreement, or other legal obligation of the City;

1.2.1.4. The City's entry into this Agreement and/or the performance of the City's obligations under this Agreement does not constitute a violation of any state or federal statute or judicial decision to which the City is subject;

1.2.1.5. There are no pending lawsuits or other actions or proceedings which would prevent or impair the timely performance of the City's obligations under this Agreement;

1.2.1.6. The City has the legal right, power, and authority to enter into this Agreement and to consummate the transactions contemplated hereby, and the execution, delivery and performance of this Agreement has been duly authorized and no other action by the City is requisite to the valid and binding execution, delivery, and performance of this Agreement, except as otherwise expressly set forth herein; and

CITY OF MILPITAS AND RIVIAN, LLC.

ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT P AGE 5 | 23

1.2.1.7. The individual executing this Agreement is authorized to execute this Agreement on behalf of the City.

The representations and warranties set forth above are material considerations to Rivian and the City acknowledges Rivian is relying upon the representations set forth above in undertaking Rivian's obligations set forth in this Agreement.

As used in this Agreement, the term "City's actual current knowledge" shall mean, and shall be limited to, the actual current knowledge of the City Manager as of the Effective Date, without having undertaken any independent inquiry or investigation for the purpose of making such representation or warranty and without any duty of inquiry or investigation.

All the terms, covenants and conditions of this Agreement shall be binding on and shall inure to the beneܪt of the City and its executors, administrators, successors, and assigns.

1.2.2. Rivian. The address of Rivian for purposes of this Agreement is Rivian, LLC.
13250 N. Haggerty Road
Plymouth, MI 48170
Attn: Indirect Tax
With Copies to:
[email protected]
[email protected]
Rivian represents and warrants to the City that, to the best of its actual current knowledge:

1.2.2.1. Rivian is a duly formed Delaware limited liability company, qualiܪed and in good standing to do business under the laws of the State of California;

1.2.2.2. The individual(s) executing this Agreement is/are authorized to execute this Agreement on behalf of Rivian;

1.2.2.3. Rivian has taken all actions required by law to approve the execution of this Agreement;

1.2.2.4. Rivian's entry into this Agreement and/or the performance of its obligations under this Agreement does not violate any contract, agreement, or other legal obligation of Rivian;

1.2.2.5. Rivian's entry into this Agreement and/or the performance of its obligations under this Agreement does not constitute a violation of any state or federal statute or judicial decision to which Rivian is subject;

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ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT P AGE 6 | 23

1.2.2.6. There are no pending lawsuits or other actions or proceedings which would prevent or impair the timely performance of Rivian’s obligations under this Agreement; and

1.2.2.7. Rivian has the legal right, power, and authority to enter into this Agreement and to consummate the transactions contemplated hereby, and the execution, delivery, and performance of this Agreement have been duly authorized and no other action by Rivian is requisite to the valid and binding execution, delivery, and performance of this Agreement, except as otherwise expressly set forth herein;

1.2.2.8. Rivian's managerial personnel located, or to be located, at the 755 Yosemite Drive Last Mile Hub possess, or will possess, suܬcient experience and qualiܪcations necessary, as determined by Rivian in its sole discretion, to conduct Rivian's Business Activities (hereinafter deܪned in Section 1.3.17) as required by this Agreement; and
Rivian covenants that nothing in this Agreement or the implementation thereof shall violate the provisions or intent of Government Code Section 53083 et seq.

The representations and warranties set forth herein are material considerations to the City, and Rivian acknowledges the City is relying upon the representations set forth above in undertaking the City's obligations.

As used in this Agreement, the term "actual current knowledge of Rivian" shall mean, and shall be limited to, the actual current knowledge of the individual(s) executing this Agreement on behalf of Rivian as of the Effective Date, without having undertaken any independent inquiry or investigation for the purpose of making such representation or warranty and without any duty of inquiry or investigation.

All the terms, covenants and conditions of this Agreement shall be binding on and shall inure to the beneܪt of Rivian and its permitted executors, administrators, successors, and assigns. Wherever the term "Rivian" is used herein, such term shall include any permitted executors, administrators, assignee, or successor of Rivian.

The qualiܪcations and identity of Rivian are of particular concern to the City, and it is because of such qualiܪcations and identity that the City has entered into this Agreement with Rivian. No voluntary or involuntary successor-in- interest of Rivian shall acquire any rights or powers under this Agreement except as expressly set forth herein in Section 7.15.

1.3. Deܪnitions.

CITY OF MILPITAS AND RIVIAN, LLC.

ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT P AGE 7 | 23

1.3.1. "Agreement Payment(s)" means those contingent payments to be made by the City to Rivian pursuant to Section 3 of this Agreement in consideration of the Covenants and Rivian’s timely and faithful performance thereunder.

1.3.2. “Additional Oܬces” means locations other than the 755 Yosemite Drive Last Mile Hub used for the promotion, sale, leasing, and/or servicing of Rivian Materials.

1.3.3. "CDTFA" means the California Department of Tax and Fee Administration.

1.3.4. "City" means the City of Milpitas, a California municipal corporation, and any executor, administrator, assignee of, or successor to, its rights, powers, and responsibilities.

1.3.5. "Computation Quarter" means each calendar quarter beginning on January 1, April 1, July 1, or October 1, as applicable, and ending on the succeeding March 31, June 30, September 30, or December 31, as applicable. The ܪrst Computation Quarter within the Eligibility Period is referred to herein as "Computation Quarter 1," with each succeeding Computation Quarter within the Eligibility Period being consecutively numbered, concluding with Computation Quarter 32 unless the Parties agree to extend this Agreement past the Covenant Term pursuant to Section 1.3.6. The ܪrst Computation Quarter within the Eligibility Period shall commence at the time that all the conditions are met under Section 1.1 above, including that the 755 Yosemite Drive Last Mile Hub is generating Sales Tax Revenue for the City.

1.3.6. "Covenant Term" means, a period of eight (8) years following the Effective Date (unless terminated sooner pursuant to speciܪc provisions of this Agreement). Twelve months prior to the end of the Covenant Term of this Agreement, Rivian and the City agree to engage in good faith discussions to negotiate a potential extension of this Agreement for an additional ܪve (5) years, in alignment with the underlying lease of the Property, including with commercially reasonable, mutually agreeable modiܪcations that address any issues raised during the Covenant Term of this Agreement. Any such mutually agreeable extension shall be set forth in a written amendment to this Agreement properly executed by both parties.

1.3.7. "Covenants" means those covenants described in Section 2 below.

1.3.8. "Direct Pay Permit" means a permit issued by the CDTFA allowing Rivian to self-assess and pay sales and/or use taxes directly to CDTFA instead of to the lessor from whom the Property is leased.

1.3.9. “Economic development subsidy” means any expenditure of public funds or loss of revenue to a local agency in the amount of one hundred thousand dollars ($100,000) or more, for the purpose of stimulating economic development within the jurisdiction of a local agency, including, but not limited to, bonds, grants, loans, loan guarantees, fee waivers, land price

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subsidies, matching funds, tax abatements, tax exemptions, and tax credits. “Economic development subsidy” shall not include expenditures of public funds by, or loss of revenue to, the local agency for the purpose of providing housing affordable to persons and families of low or moderate income, as deܪned in Section 50093 of the California Health and Safety Code.

1.3.10. "Eligibility Period" means the period commencing as of the ܪrst (1st) day of Computation Quarter 1 and ending the last day of the ܪnal Computation Quarter contemplated by the lease of the 755 Yosemite Drive Last Mile Hub, but not less than Computation Quarter 32.

1.3.11. "Fiscal Year" means Rivian's ܪscal year for ܪnancial accounting purposes beginning on the Monday following the Sunday nearest January 1 of each year and ending on the Sunday nearest December 31 of the following year.

1.3.12. “755 Yosemite Drive Last Mile Hub" means an existing, approximately 97,000 square-foot industrial property located at 755 Yosemite Drive in Milpitas, California that Rivian will lease for the sales and leasing, vehicle delivery and inspections, and servicing of electric vehicles manufactured off-site and delivered by Rivian to customers from the Property.

1.3.13. “Last Mile Hub” means a regional or territorial delivery or distribution center for Materials delivered or transported to a place of receipt for customers in that area.

1.3.14. “Local agency” means a city, including a charter city, county, or city and county.

1.3.15. "Material" or “Materials” means all tangible personal property offered for sale or lease to Rivian’s customers/clients which is subject to the Sales Tax Law. Materials excludes parts, accessories, or other tangible personal property sold or leased in connection with repair, maintenance, or other non- sales or non-leasing operations conducted at Additional Oܬces or through mobile repair services.

1.3.16. "Rivian" means and refers to Rivian, LLC, a Delaware limited liability company, and its successors and assigns, cumulatively.

1.3.17. "Rivian's Business Activities" means all sales or leases of Material conducted through the 755 Yosemite Drive Last Mile Hub, including sales or leases conducted electronically on the internet or through phone sales, provided that the sale is consummated at the 755 Yosemite Drive Last Mile Hub or delivered or distributed through the 755 Yosemite Drive Last Mile Hub.

1.3.18. "Penalty Assessments" means and refers to penalties, assessments, collection costs and other costs, fees or charges resulting from late or

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underpaid payments of Sales Tax, and which are levied, assessed, or otherwise collected from Rivian.

1.3.19. "Property" means that real property at 755 Yosemite Drive within the City of Milpitas on which the 755 Yosemite Drive Last Mile Hub is located.

1.3.20. "Sales Tax" means and refers to all sales and use taxes levied under the authority of the Sales Tax Law attributable to the 755 Yosemite Drive Last Mile Hub in City and Rivian's Business Activities, excluding that which is to be refunded to Rivian because of an overpayment of such tax.

1.3.21. "Sales Tax Law" means and refers to (a) California Revenue and Taxation Code Section 7200 et seq., and any successor law thereto; (b) any legislation allowing City or other public agency with jurisdiction in the City to levy any form of local Sales Tax on the operations of Rivian; and (c) regulations of CDTFA and other binding rulings and interpretations relating to (a) and (b) of this Section 1.3.21 by relevant California State authorities.

1.3.22. "Sales Tax Revenues" means the net Sales Tax received by the City from the CDTFA pursuant to the application of the Sales Tax Law (as such statutes may hereafter be amended, substituted, replaced, re-numbered, moved or modiܪed by any successor law) attributable to the 755 Yosemite Drive Last Mile Hub in the City in a particular Computation Quarter. Sales Tax Revenues shall not include (i) Penalty Assessments; (ii) any Sales Tax levied by, collected for or allocated to the State of California, the County of Santa Clara, or a district or any entity (including an allocation to a statewide or countywide pool); (iii) any administrative fee charged by the CDTFA; (iv) any Sales Tax subject to any sharing, rebate, offset or other charge imposed pursuant to any applicable provision of federal, state or local (except City) law, rule or regulation; (v) any Sales Tax attributable to any transaction not consummated within the Eligibility Period; or (vi) any Sales Tax (or other funds measured by Sales Tax) required by the State of California to be paid over to another public entity (including the State) or set aside and/or pledged to a speciܪc use other than for deposit into or payment from the City's general fund.

2. C

OVENANTS

2.1. Operating and Use Covenant. Rivian covenants and agrees that for the Covenant Term Rivian shall take all actions and to do all things necessary, proper, or advisable to operate, or cause to be operated upon the Property, the 755 Yosemite Drive Last Mile Hub in the City, consistent with all applicable provisions of federal, state, and local laws and regulations. Rivian will operate its business at the 755 Yosemite Drive Last Mile Hub in a commercially reasonable manner. Rivian's obligations pursuant to the immediately preceding sentence include, without limitation, the obligation to obtain all federal, state, and local licenses and permits required for the operation of the

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business at the 755 Yosemite Drive Last Mile Hub. For the term of this Agreement, Rivian may use the Property for the purposes of the operation of the 755 Yosemite Drive Last Mile Hub or comparable functio n, with the intent, but subject to Rivian's exercise of its business judgment to modify operations from time to time, of generating the greatest feasible amount of Sales Tax Revenues over the Covenant Term, and otherwise conducting Rivian's Business Activities in accordance with this Agreement.

2.2. Covenant to Designate City as Point of Sale. Rivian covenants and agrees that, for the term of the Operating and Use Covenant as described in Section 2.1, Rivian shall maintain such licenses and permits as may be required by any governmental agency to conduct Rivian's Business Activities related to the 755 Yosemite Drive Last Mile Hub, ensuring the point of sale for all such Business Activities consummated at or occurring through the 755 Yosemite Drive Last Mile Hub is identiܪed as the City in all reports to the CDTFA in accordance with the Bradley-Burns Uniform Local Sales and Use Tax Law (Revenue and Taxation Code 7200, et seq.), as it may be amended or substituted. Rivian shall use its best commercially reasonable efforts to conduct its business such that the 755 Yosemite Drive Last Mile Hub is the place of delivery, the place of use, and the place of sale for purposes of imposing Sales Tax, to ensure that all sales and leases of Rivian’s Materials consummated at the 755 Yosemite Drive Last Mile Hub during the Covenant Term will be allocated to the City pursuant to the Sales Tax Law and the current standards of the CDTFA. Rivian shall maintain the appropriate master sales permits applicable to and required for the operation of the 755 Yosemite Drive Last Mile Hub. Rivian shall consummate all taxable sales transactions for Rivian's Business Activities at the 755 Yosemite Drive Last Mile Hub, consistent with all applicable statutory and CDTFA regulatory requirements applicable to Rivian's Business Activities and the designation of the City as the "point of sale" for all Rivian's taxable sales occurring because of Rivian's Business Activities.

2.3. Economic Subsidy Reporting Obligations. Rivian covenants and agrees that for the term of the Agreement, Rivian shall assist City by providing the requisite information relevant to Rivian's operation of the 755 Yosemite Drive Last Mile Hub, required by California Government Code §53083 and California Revenue and Taxation Code 7213, as well as other reporting obligations imposed upon the City through legislation at the state or federal level subsequent to the execution of this Agreement, upon written request of the City, and in advance of the requisite reporting obligations described therein.

2.4. Covenant Against Solicitation and Acceptance of Economic Incentives During the Term of the Agreement. Rivian covenants and agrees that, during the Covenant Term, Rivian will not directly or indirectly solicit or accept any "Financial Assistance" from any other public or private person or entity if such Financial Assistance is given for the purpose of causing or would result in a Rivian Default (as deܪned herein). For purposes of this Section 2.4, the term "Financial Assistance" means any direct or

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indirect payment, subsidy, rebate, or other similar or dissimilar monetary or non- monetary beneܪt, including, without implied limitation, payment of land subsidies, relocation expenses, public ܪnancings, property, sales and/or use tax relief, rebates, exemptions or credits, relief from public improvement obligations, and payment for public improvements to or for the beneܪt of Rivian.

2.5. Covenant With Respect to Other Rivian Agreements. The City understands, acknowledges, and agrees that Rivian has established and may establish Additional Oܬces outside the City consistent with this Agreement and Cal. Govt. Code Sections 53083 et seq.. Subject to Sections 2.2, 2.4, and this Section 2.5, nothing in this Agreement limits Rivian's right to conduct sales and other business and operations at or from the Additional Oܬces, but the City makes no representations or warranties with respect to Rivian's operations with respect to Additional Oܬces. Rivian covenants and agrees that under no circumstances will Rivian's agreements with respect to Additional Oܬces affect Rivian's obligations under Section 2.2 with respect to City's designation as point of sale for Rivian's Business Activities consummated at or through the 755 Yosemite Drive Last Mile Hub, and, subject to this Section 2.5, any other representations, warranties and covenants of Rivian contained in this Agreement. In consideration of the mutual promises, conditions and Covenants of this Agreement, the City hereby waives and releases any objections, claims or demands of any kind with respect to the existence of or course of performance by Rivian under agreements that comply with all applicable laws, including without limitation Cal.

Govt. Code Sections 53083 and 53084.5, and are similar in concept to this Agreement entered into by Rivian with any of the cities in which such Additional Oܬces are located, provided such agreements are consistent with this Agreement, including Section 2.4. City likewise covenants not to sue, and not to commence arbitration proceedings under this Agreement or to commence administrative proceedings of any nature before the CDFTA or otherwise, or to challenge such allocations or activities in any way to the extent of objections, claims or demands of any kind which are waived or released by this Section 2.5. No failure or delay by any party in the exercise of any right hereunder shall constitute a waiver thereof, nor shall any single or partial exercise of any such right preclude other or further exercise thereof, or any other right.

3. AGREEMENT PAYMENTS.

3.1. Statement of Intent. The consideration to be paid to Rivian in exchange for the Covenants and Rivian's performance of its obligations as set forth in this Agreement, and subject to satisfaction of all conditions precedent thereto, shall consist of the sum of the City payment(s) to Rivian for each Computation Quarter during the Eligibility Period that the City receives Sales Tax Revenue, an amount equal to the annual percentages of the Sales Tax Revenues as shown in Table 1: Agreement Computation Percentages below, based on the City's current sales tax rate at the time

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of execution of this Agreement, attributable to annual taxable sales at the 755 Yosemite Drive Last Mile Hub received by the City ("Agreement Payment").

Table 1. Agreement Computation Percentages and Estimated Amounts Period Computation Percentages Estimated Amounts to Rivian Years 1 to 3 : 35% to Rivian, 65% to City $ 3,803,030 Years 4 to 8 : 50% to Rivian, 50% to City $ 12,347,500 Total Estimated Amount to Rivian $ 16,150,330

City obligations under this Section 3 are contingent on a Computation Quarter-to- Quarter basis and, for each Computation Quarter, the City obligations to make any payments hereunder are expressly contingent upon Rivian having, for the entirety of such Computation Quarter, completely fulܪlled its material obligations under this Agreement, including, without limitation, the Covenants. Should such condition precedent not be satisܪed for each Computation Quarter, then the City shall have no obligation under this Section 3.1 to make any Agreement Payments to Rivian in such Computation Quarter.

3.2. Computation Quarter Agreement Payments. Within thirty (30) days following the end of each Computation Quarter, Rivian shall submit to the City copies of its quarterly reports to the CDTFA for the applicable Computation Quarter arising from Rivian's Business Activities conducted at the 755 Yosemite Drive Last Mile Hub. Within one hundred twenty (120) days following the end of each Computation Quarter, the City shall pay to Rivian any Computation Quarter Agreement Payment due for such Computation Quarter. The City's ܪrst payment to Rivian shall be made following the ܪrst Computational Quarter in which Rivian has performed its obligations under this Agreement and the 755 Yosemite Drive Last Mile Hub generates sales or use tax revenue.

3.3. No Carry Forward or Back. The determination of the Agreement Payment(s) shall be determined and calculated on a Computation Quarter to Computation Quarter basis.

Except as provided in Section 3.4, no Sales Tax Revenue which is generated in a Computation Quarter other than the Computation Quarter for which the Agreement Payment is being determined shall be used or considered in the calculation of any Agreement Payment which may be due for that Computation Quarter.

3.4. CDTFA Determination of Improperly Allocated Local Sales Tax Revenues. If, at any time during or after the Eligibility Period of this Agreement, the CDTFA or a court of competent jurisdiction determines that all or any portion of the Sales Tax Revenues received by the City were improperly allocated and/or paid to the City, and if the CDTFA or a court of competent jurisdiction requires repayment of, offsets against future sales tax payments, or otherwise recaptures from the City those improperly allocated and/or paid Sales Tax Revenues, then Rivian shall, within thirty (30) calendar days

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after written demand from the City, repay all Agreement Payments (or applicable portions thereof) theretofore paid to Rivian which are attributable to such repaid, offset or recaptured Sales Tax Revenues. If Rivian fails to make such repayment within thirty (30) calendar days after the City's written demand, then Rivian shall be in breach of this Agreement and such obligation shall accrue interest from the date of the City's original written demand at the then-maximum legal rate imposed by the California Code of Civil Procedure on prejudgment monetary obligations, compounded monthly, until paid. Additionally, the City may deduct any amount required to be repaid by Rivian under this Section 3.4 from any future Agreement Payments otherwise payable to Rivian under this Agreement. Nothing in this Section 3.4 will require repayment by Rivian of any City Payments made or received with respect to Sales Tax Revenues for any periods other than those periods for which the CDTFA or a court of competent jurisdiction has required redistribution, repayment, offset, or recapture by or against City. The City will promptly contact Rivian regarding any communication from the CDTFA pertaining to Sales Tax allocations associated with the 755 Yosemite Drive Last Mile Hub.

3.4.1. Not a Pledge of Sales Tax. Rivian acknowledges the City is not making a pledge of Sales Tax Revenues, the City General Fund or any other source of funds. The deܪnition of Sales Tax Revenues, as used herein, is used merely as a measure of the amount of the payment due hereunder and as a means of computing the City payment in consideration for the Covenants. It is acknowledged by Rivian that, as to each Computation Quarter, the City obligation to make payments is speciܪcally contingent upon receipt by the City of, and limited to, the Sales Tax Revenues derived from the operation of the 755 Yosemite Drive Last Mile Hub for such Computation Quarter. It is further acknowledged by Rivian that this Agreement only applies to Sales Tax Revenues generated by Rivian for the respective Computation Quarter.

4. D
EFAULT.

4.1. Rivian Default. City shall provide Rivian with written notice of Rivian's failure to comply with any material provision of this Agreement ("Rivian Default"), including, without limitation, the Covenants. Rivian shall have thirty (30) days from the date of such notice to either cure such Rivian Default or, if such Rivian Default cannot be reasonably cured during such thirty (30) day period, to commence to cure within said thirty (30) day period and diligently prosecute such cure to completion thereafter.

4.2. City Default. Rivian shall provide City with written notice of the City's failure ("City Default") to strictly abide by any material provision of this Agreement. City shall have thirty (30) days from the date of such notice to either cure such City Default or, if such City Default cannot be reasonably cured during such thirty (30) day period, to commence to cure within said thirty (30) day period and diligently prosecute such cure

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to completion thereafter. If Rivian intends to terminate this Agreement resulting from an uncured City Default, Rivian shall provide the City six (6) months' written notice.

4.3. Meet and Confer. The City and Rivian will make a legitimate and good faith effort to meet and confer to reach a mutually satisfactory resolution to any disputes and alleged failures to meet its full obligations of this Agreement before sending a notice of default under this Section 4.

4.4. Mediation
In the event of any dispute, claim, or controversy arising out of or relating to this Agreement, or the breach, termination, or validity thereof (collectively referred to as "Dispute"), and the respective Party or Parties are unable to cure said Dispute within the time period stated in §§4.1 and 4.2, the Parties agree that they will ܪrst attempt to resolve the Dispute through informal discussions. If the Dispute is not resolved within thirty (30) days of the initial informal discussion, the Parties agree to participate in mediation, which shall be conducted in accordance with the following provisions:

4.4.1. Mediation Procedure

4.4.1.1. Selection of Mediator. The Parties shall select a neutral mediator by mutual agreement. If the Parties cannot agree on a mediator within ܪfteen (15) days after the end of the informal discussion period, either Party may request the American Arbitration Association ("AAA") or any other mutually agreed-upon mediation service to provide a list of qualiܪed mediators from whom the Parties shall select.

4.4.1.2. Location. Mediation shall take place in Milpitas, California, unless the Parties mutually agree to another location.

4.4.1.3. Conduct of Mediation. The mediation shall be conducted in accordance with the rules of the chosen mediation service, or if there are none, in a manner mutually agreed to by the Parties and the mediator.

4.4.1.4. Conܪdentiality. All discussions, statements, and documents exchanged during the mediation process shall be conܪdential and shall not be admissible in any subsequent legal proceedings, unless both Parties agree otherwise in writing.

4.4.1.5. Costs. The costs of mediation, including the mediator's fees, shall be shared equally by the Parties unless otherwise agreed.

4.4.2. Litigation. If the Dispute is not resolved through mediation within sixty (60) days of the mediation session, then either Party may pursue any rights or remedies available under law or equity, including but not limited to litigation, as further deܪned in Section 5.

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5. GENERAL REMEDIES FOR DEFAULT.

5.1. Remedies under this Agreement are limited to an order for speciܪc performance from a Court of competent jurisdiction. No other remedy shall be available to any party.

5.2. City Rights to Terminate its Obligations under Section 3. The City's obligations under Section 3 shall automatically terminate without cost, expense, or liability to Rivian, upon the occurrence of any one or more of the following: (i) Rivian Default, as to which any applicable notice and cure period provided for herein has expired; (ii) the end of the Eligibility Period; or (iii) upon the ܪnal determination by a court of competent jurisdiction that any one or more of the Covenants are void, voidable, invalid, or even unenforceable for any reason whatsoever, including, without limitation, legal inܪrmity.

Termination of City obligations under Section 3 in accordance with this Section 5.2 shall not operate to forgive, modify, discharge or excuse Rivian's obligations arising under this Agreement.

6. R
IVIAN TERMINATION. Notwithstanding any other provisions of this Agreement, Rivian may, at its option, upon written notice to City, terminate this Agreement and/or relocate the 755 Yosemite Drive Last Mile Hub to any other city or county in California or elsewhere and reallocate Rivian’s business activities accordingly and in conformance with applicable sales tax law. Rivian shall provide at least six (6) months of written notice to the City prior to termination. The relocation of the 755 Yosemite Drive Last Mile Hub shall be subject to Government Code section 53084.

7. G
ENERAL TERMS.

7.1. Tax Consequences. Rivian acknowledges that it may experience tax consequences because of its receipt of the payments provided for in this Agreement and agrees that it shall bear all responsibility, liability, costs, and expenses connected in any way therewith.

7.2. Rights Not Granted Under Agreement. This Agreement is not, and shall not be construed to be, a Development Agreement under Government Code Section 65864 et seq., or a disposition and development agreement under Health and Safety Code Section 33000 et seq. This Agreement is not, and shall not be construed to be, an approval or an agreement to issue permits or a granting of any right or entitlement by the City concerning the 755 Yosemite Drive Last Mile Hub, Rivian’s Business Activities or any other project, development, or construction by Rivian in the City. This Agreement does not, and shall not be construed to, exempt Rivian from the application and/or exercise of the City's or City's power of eminent domain or its police power, including, but not limited to, the regulation of land uses and the taking of any actions necessary to protect the health, safety, and welfare of its community.

7.3. Consent. Whenever consent or approval of any Party is required under this Agreement, that Party shall not unreasonably withhold, delay, or condition such consent or approval unless otherwise allowed by a speciܪc provision of this Agreement.

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7.4. Notices and Demands. All notices or other communications required or permitted between the City and Rivian under this Agreement shall be in writing, and may be (i) personally delivered, (ii) sent by United States registered or certiܪed mail, postage prepaid, return receipt requested, or ( iii) sent by nationally recognized overnight courier service (e.g., Federal Express), addressed to the Parties at the addresses provided in Section 1.2, subject to the right of either Party to designate a different address for itself by notice similarly given. Any notice so given by registered or certiܪed United States mail shall be deemed to have been given on the ܪfth business day after the same is deposited in the United States mail. Any notice not so given by registered or certiܪed mail, such as notices delivered by courier service (e.g., Federal Express), shall be deemed given upon receipt of the same by the Party to whom the notice is given.

7.5. Nonliability of the City or City Oܬcials and Employees. No board member, oܬcial, contractor, consultant, attorney or employee of the City or City shall be personally liable to Rivian, any voluntary or involuntary successors or assignees, or any lender or other party holding an interest in the Property, in the event of any default or breach by the City, or for any amount which may become due to Rivian or to its successors or assignees, or on any obligations arising under this Agreement.

7.6. Conܫict of Interests. No board member, oܬcial, contractor, consultant, attorney or employee of the City or City shall have any personal interest, direct or indirect, in this Agreement nor shall any such board member, oܬcial or employee participate in any decision relating to this Agreement which affects their personal interests or the interests of any corporation, partnership or association in which they are directly or indirectly interested.

7.7. Pledge or Hypothecation of Agreement Payments. Rivian may assign any Agreement Payment(s) due in accordance with the terms of this Agreement (but not any other right or obligation of this Agreement) upon thirty (30) days' prior written notice to City as collateral for any loan or ܪnancing obtained by Rivian in connection with the 755 Yosemite Drive Last Mile Hub; provided that nothing in this Section 7.7 shall be deemed to limit the operation of Section 7.14. Without limiting the general applicability of the foregoing, Rivian acknowledges that Rivian's lender and any transferee of Rivian's lender shall be subject to the transfer restrictions of Section 7.14.

7.8. Entire Agreement; Disclosure. This Agreement contains all the terms and conditions agreed upon by the Parties and supersedes any previous agreements between the Parties concerning the subject matter of this Agreement. No other understanding, oral or otherwise, regarding the subject matter of this Agreement shall be deemed to exist or to bind any of the parties hereto. All prior written or oral offers, counteroffers, memoranda of understanding, proposals and the like are superseded by this Agreement. The terms and existence of this Agreement will not be publicized or made public beyond what is required by applicable Federal and State law, including but not

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limited to City approval of this Agreement and the California Public Records Act (Government Code Section 6250, et seq.).

The Parties acknowledge this Agreement is the product of mutual arms-length negotiations and that each Party has been, or has had the opportunity to have been, represented by legal counsel in the negotiation and drafting of this Agreement.

Accordingly, the rule of judicial construction which provides that ambiguities in a document are to be construed against the drafter of that document shall have no application to the interpretation or enforcement of this Agreement. In any action or proceeding to interpret and/or enforce this Agreement, the trier of fact may refer to extrinsic evidence not in conܫict with any speciܪc provision of this Agreement to ascertain and give effect to the intent of the Parties hereto.

7.9. Time Deadlines Critical; Extensions and Delays; No Excuse Due to Economic Changes. Time is of the essence in the performance of the City and Rivian obligations under this Agreement. In addition to speciܪc provisions of this Agreement providing for extensions of time, times for performance hereunder shall be extended where delays or defaults are due to war; insurrection; any form of labor dispute; lockouts; riots; ܫoods; earthquakes; ܪres; acts of God or of third parties; third party litigation; acts of a public enemy; initiative or referenda; acts of governmental authorities (except that the failure of the City to act as required hereunder shall not excuse its performance); moratoria; epidemics; quarantine restrictions; and freight embargoes (collectively, "Enforced Delays") provided, however, that the Party claiming the extension notify the other Party of the nature of the matter causing the default; and, provided further, that the extension of time shall be only for the period of the Enforced Delays. However, deadlines for performance may not be extended as provided above due to any inability of Rivian to obtain or maintain acceptable ܪnancing for the operation of the 755 Yosemite Drive Last Mile Hub.

ANYTHING IN THIS COVENANT AGREEMENT TO THE CONTRARY

NOTWITHSTANDING, RIVIAN ASSUMES THE RISK OF UNFORESEEABLE CHANGES IN

ECONOMIC CIRCUMSTANCES AND/OR MARKET DEMAND/CONDITIONS AND

WAIVES, TO THE GREATEST LEGAL EXTENT, ANY DEFENSE, CLAIM, OR CAUSE OF

ACTION BASED IN WHOLE OR IN PART ON ECONOMIC NECESSITY,

IMPRACTICABILITY, FRUSTRATION OF PURPOSE, CHANGED ECONOMIC CIRCUMSTANCES OR SIMILAR THEORIES.

RIVIAN EXPRESSL Y AGREES THAT ADVERSE CHANGES IN ECONOMIC CONDITIONS,

EITHER OF RIVIAN SPECIFICALLY OR THE ECONOMY GENERALL Y, OR CHANGES IN

THE MARKET CONDITIONS OR DEMANDS, SHALL NOT OPERATE TO EXCUSE OR

DELAY THE STRICT OBSERVANCE OF EACH AND EVERY OF THE OBLIGATIONS, COVENANTS, CONDITIONS AND REQUIREMENTS OF THIS AGREEMENT. RIVIAN

EXPRESSL Y ASSUMES THE RISK OF SUCH ADVERSE ECONOMIC OR MARKET Rivian Initials
Rivian Initials

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CHANGES, WHETHER OR NOT FORESEEABLE AS OF RIVIAN'S EXECUTION OF THIS AGREEMENT.

7.10. Amendments to This Agreement. Any amendments to this Agreement must be in writing and signed by the appropriate authorities of both the City and Rivian. The City Manager is authorized on behalf of the City to approve and execute minor amendments to this Agreement, including, but not limited to, the granting of extensions of time to Rivian, not to exceed ninety (90) days in the aggregate.

7.11. Jurisdiction and Venue. Any legal action or proceeding concerning this Agreement shall be ܪled and prosecuted in the appropriate California state court in the County of Santa Clara, California. Both Parties hereto irrevocably consents to the personal jurisdiction of that court. The City and Rivian each hereby expressly waive the beneܪt of any provision of federal or state law or judicial decision providing for the ܪling, removal, or change of venue to any other court or jurisdiction, including, without implied limitation, federal district court, due to any diversity of citizenship between the City and Rivian, due to the fact that the City is a party to such action or proceeding or due to the fact that a federal question or federal right is involved or alleged to be involved. Without limiting the generality of the foregoing, the City and Rivian speciܪcally waive any rights provided to it pursuant to California Code of Civil Procedure Section 394. Rivian acknowledges that the provisions of this Section 7.11 are material consideration to the City for its entry into this Agreement, in that the City will avoid the potential cost, expense and inconvenience of litigating in a distant forum.

7.12. Interpretation. The City and Rivian acknowledge that this Agreement is the product of mutual arms-length negotiation and drafting and that both Parties have been represented by legal counsel in the negotiation and drafting of this Agreement.

Accordingly, the rule of construction which provides that ambiguities in a document shall be construed against the drafter of that document shall have no application to the interpretation and enforcement of this Agreement. In any action or proceeding to interpret or enforce this Agreement, the ܪnder of fact may refer to any extrinsic evidence not in direct conܫict with any speciܪc provision of this Agreement to determine and give effect to the intention of the Parties.

7.13. Counterpart Originals; Integration. This Agreement may be executed in duplicate originals, each of which is deemed to be an original, but when taken together shall constitute but one and the same instrument. This Agreement and any exhibits represent the entire understanding of the Parties and supersedes all negotiations, letters of intent, memoranda of understanding or previous agreements between the parties with respect to all or any part of the subject matter hereof.

7.14. No Waiver. Failure to insist on any one occasion upon strict compliance with any of the terms, covenants or conditions hereof shall not be deemed a waiver of such term, covenant, or condition, nor shall any waiver or relinquishment of any rights or powers

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hereunder at any one time or more times be deemed a waiver or relinquishment of such other right or power at any other time or times.

7.15. Successors and Assigns. The terms, covenants and conditions of this Agreement shall be binding upon and inure to the beneܪt of the Parties hereto and their successors and assigns. Rivian may not assign, transfer, encumber or hypothecate its rights or obligations under this Agreement to any person or entity, without the written consent of the City, which may not be unreasonably withheld, conditioned, or delayed.

Notwithstanding the foregoing, Rivian shall have the right to assign this Agreement or any right or obligation hereunder to its immediate or ultimate parent, or to an aܬliate, by providing advance written notice to City. An "aܬliate" shall mean any legal entity that, at the applicable time, directly or indirectly controls, is controlled with or by, or is under common control with, Rivian. Upon the permitted sale, transfer or conveyance by Rivian of its interest therein, Rivian shall thereupon be relieved of its obligations under this Agreement from and after the date of sale, transfer or conveyance except with respect to any defaults in the performance of its obligations hereunder or thereunder which occurred prior to such sale, transfer or conveyance, and the transferee shall thereafter be solely responsible for the performance of all of the duties and obligations of Rivian under this Agreement.

7.16. No Third Party Beneܪciaries. The performance of the respective obligations of the City and Rivian under this Agreement are not intended to beneܪt any party other than the City or Rivian, except as expressly provided otherwise herein. No person or entity not a signatory to this Agreement shall have any rights or causes of action against any party to this Agreement because of that party's performance or non-performance under this Agreement, except as expressly provided otherwise herein.

7.17. No Effect on Eminent Domain Authority. Nothing in this Agreement shall be deemed to limit, modify, or abridge or affect in any manner whatsoever the City's or City's eminent domain powers with respect to the 755 Yosemite Drive Last Mile Hub, or any other property owned by the 755 Yosemite Drive Last Mile Hub.

7.18. Warranty Against Payment of Consideration for Agreement. Rivian warrants that it has not paid or given, and will not pay or give, any third party any money or other consideration for obtaining this Agreement. Third parties, for the purposes of this Section 7.18, shall not include persons to whom fees are paid for professional services if rendered by attorneys, ܪnancial consultants, accountants, engineers, architects, and the like when such fees are considered necessary by Rivian.

7.19. Severability. The City and Rivian declare that the provisions of this Agreement are severable. If it is determined by a court of competent jurisdiction that any term, condition or provision hereof is void, voidable, or unenforceable for any reason whatsoever, then such term, condition or provision shall be severed from this Agreement and the remainder of the Agreement enforced in accordance with its terms.

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7.20. Further Acts and Releases. The City and Rivian each agree to take such additional acts and execute such other documents as may be reasonable and necessary in the performance of their obligations hereunder.

7.21. Estoppels; At the request of Rivian or any holder of a mortgage or deed of trust secured by all or any portion of the Property, the City shall promptly execute and deliver to Rivian or such holder a written statement of the City as to any of the following matters as to which Rivian or such holder may inquire: (i) that no default or breach exists, or would exist with the passage of time, or giving of notice, or both, by Rivian pursuant to this Agreement, if such be the case; (ii) the total amount of Agreement Payments made by the City to Rivian pursuant to this Agreement prior to the date of such written statement; (iii) the amount of any Agreement Payments earned by or due and owing to Rivian pursuant to this Agreement as of the date of such written statement; (iv) the Agreement Payments for a particular Computation Quarter; (v) if the City has determined that Rivian is in default or breach hereunder, the nature of such default and the action or actions required to be taken by Rivian to cure such default or breach; and (vi) any other matter affecting the rights or obligations of Rivian hereunder as to which Rivian or such holder may reasonably inquire. The form of any estoppel letter shall be prepared by Rivian or such holder at its sole cost and expense and shall be reasonably acceptable in form and content to the City and Rivian.

The City may make any of the representations described above based on the actual current knowledge of the then-current City Manager.

7.22. Indemnity. Rivian shall defend (using counsel of City's choosing), indemnify and hold harmless the City, its elected oܬcials, oܬcers, employees and agents from and against any and all third party claims, losses, proceedings, damages, causes of action, liability, cost and expense (including attorney's fees) arising from, in connection with or related to this Agreement or the functions or operations of the 755 Yosemite Drive Last Mile Hub. The City shall fully cooperate in the defense of any such actions and upon written request of Rivian shall provide to Rivian such documents and records in possession of the City that are relevant to such actions and not otherwise protected by law. Notwithstanding the foregoing, should any third party bring any such action or proceeding, Rivian shall have the right to terminate this Agreement, and as of such date of termination, all unaccrued liabilities of the parties under this Agreement shall cease except for Rivian's obligation of indemnity owned to the City as provided in this Section 7.22.

7.23. Public Beneܪts.

7.23.1. Community Participation. As additional consideration for the beneܪts conferred under this Agreement, Rivian further agrees to participate in supporting community beneܪt events and activities consistent with Rivian's practices and policies.

CITY OF MILPITAS AND RIVIAN, LLC.

ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT P AGE 21 | 23

7.23.2. Employment Outreach for Local Residents. A goal of the City in entering into this Agreement is to foster employment opportunities for City residents. To that end, Rivian will use commercially reasonable efforts to recruit and hire City residents for any full- and part-time employment opportunities as determined by Rivian in its sole discretion. The City shall be authorized to post and advertise any job recruitment information provided to the City on the City website and other jobs available and job recruitment sites within the region. Any offers of employment will be at Rivian's sole discretion. Nothing in this paragraph will require Rivian to offer employment to individuals who are not otherwise qualiܪed for such employment. Without limiting the generality of the foregoing, the provisions of this Section 7.23.2 are not intended, and will not be construed, to beneܪt or be enforceable by any person whatsoever other than the City.

7.24. State of California Legislation Impact on Covenant Payment. Rivian acknowledges that the California Legislature has in the past adopted certain legislation which diverted to the State of California a portion of the Sales Tax Revenues which were otherwise payable to the City. Rivian acknowledges that it is possible that the California legislature may enact similar legislation in the future which would cause a corresponding reduction of and/or delay in the payment of the Sales Tax Revenues, and that such reduction will cause Rivian a corresponding reduction and/or delay in the payment of the Agreement Payments due to Rivian during such time as such legislation is in effect. Furthermore, Rivian acknowledges that it is possible that the legislation described above, or some variant thereof, may be enacted and effective during one or more subsequent times during the Eligibility Period and may materially and negatively impact the amount of Sales Tax Revenues and, accordingly, Agreement Payments. The City does not make any representation, warranty or commitment concerning the future actions of the California legislature with respect to the allocation of Sales Tax Revenues to the City. Rivian agrees that it is undertaking its obligations under this Agreement after having considered, and is expressly assuming the risk of, the possibility of the enactment of such legislation.

7.25. Direct Pay Permit Obligations. Rivian shall apply for a Direct Pay Permit from CDTFA, and shall be solely responsible for self-assessing state, local, and any other sales and/or use taxes quarterly to CDTFA associated with the interior build-out of the 755 Yosemite Drive Last Mile Hub. Rivian will take all necessary steps to establish and implement the necessary controls and processes to track purchases eligible for direct allocation. Rivian shall further certify to the CDTFA that it has purchased or leased the real property for the 755 Yosemite Drive Last Mile Hub pursuant to any state requirements.

CITY OF MILPITAS AND RIVIAN, LLC.

ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT P AGE 22 | 23

[SIGNATURES ON FOLLOWING PAGE(S)]

CITY OF MILPITAS AND RIVIAN, LLC.

ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT P AGE 23 | 23

SIGNATURE PAGE FOR ECONOMIC INCENTIVE AGREEMENT BETWEEN

THE CITY OF MILPITAS
AND

RIVIAN,L L C
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date ܪrst written above.

CITY OF MILPITAS R IVIAN,L L C
Approved By:

Ned Thomas
City Manager
Name

Approved as to Form:

Christopher Creech
Acting City Attorney
Title

Approved: Date
Luz Cofresí-Howe
Finance Director

Approved:

Alex Andrade
Economic Development & Strategic Initiatives Director

Attachment C: Economic Development Subsidy Report

ECONOMIC DEVELOPMENT SUBSIDY REPORT
PURSUANT TO GOVERNMENT CODE SECTION 53083

FOR AN ECONOMIC INCENTIVE AGREEMENT BY AND BETWEEN

THE CITY OF MILPITAS
AND

RIVIAN, LLC

CITY OF MILPITAS AND RIVIAN LLC
ECONOMIC DEVELOPMENT SUBSIDY REPORT PAGE 1 | 6
Pursuant to Government Code Section 53083, the City Council of the City of Milpitas must hold a noticed public hearing and, prior to the public hearing, provide all of the following information in written form and available to the public and through the City Internet website, regarding a proposed economic development subsidy to be provided by the City pursuant to an Economic Development Incentive Agreement (“Agreement”) by and between the City of Milpitas (“City”) and Rivian, LLC (“Rivian”). The Agreement provides an economic development subsidy from the City to Rivian to incentivize the leasing of an existing, approximately 97,000 square-foot industrial property located at 755 Yosemite Drive in Milpitas, California (“Property”), for the sales and leasing, vehicle delivery and inspections, and servicing of all-electric, zero-emission vehicles manufactured off-site and delivered by Rivian to customers from the Property (“Last Mile Hub”).

Notice was published on the City Internet website on February 21, 2025, for a public hearing to be held on March 4, 2025.

The purpose of this Economic Development Subsidy Report (“Report”) is to provide the information required pursuant to Government Code Section 53083 regarding the Agreement. This Report shall remain available to the public and posted on the City Internet website until the end date of the economic development subsidy, as further described in Item 2 below.

1. The name and address of all corporations or any other business entities, except for sole proprietorships, that are the beneficiary of the economic development subsidy, if applicable.

The Agreement is with Rivian, LLC, a Delaware corporation (“Rivian”). Rivian is the sole beneficiary of the economic development subsidy.

Rivian, LLC
13250 N. Haggerty Road
Plymouth, MI 48170
[email protected]
[email protected]

2. The start and end dates and schedule, if applicable, for the economic development subsidy.

The Agreement, and the obligations of the parties therein, will not become effective

Attachment C: Economic Development Subsidy Report

ECONOMIC DEVELOPMENT SUBSIDY REPORT
PURSUANT TO GOVERNMENT CODE SECTION 53083

FOR AN ECONOMIC INCENTIVE AGREEMENT BY AND BETWEEN

THE CITY OF MILPITAS
AND

RIVIAN, LLC

CITY OF MILPITAS AND RIVIAN LLC
ECONOMIC DEVELOPMENT SUBSIDY REPORT PAGE 2 | 6
until the date on which all the following are true (“Effective Date”):
a) The Agreement has been approved and executed by an authorized signatory of Rivian and delivered to the City;
b) Following all legally required notices and hearings, the Agreement has been approved by the City Council;
c) The Agreement has been executed by the appropriate authorities of the City and delivered to Rivian;
d) Rivian has entered into an agreement to lease a Last Mile Hub within the City; and e) The Last Mile Hub is generating sales and/or use tax revenues for the City.

The term will begin on the Effective Date of the Agreement and continue for eight (8) years. The first Agreement Payment will be paid following the first Computation Quarter (as defined in Section 7 herein) in which Rivian has performed its covenants and other obligations pursuant to the Agreement, including that the Last Mile Hub has begun generating sales and/or use tax revenues for the City.

3. A description of the economic development subsidy, including the estimated total amount of the expenditure of public funds by, or of revenue lost to, the local agency as a result of the economic development subsidy.

The economic development subsidy shall be the sum of an amount equal to the annual percentages of the Sales Tax Revenues, as shown in Table 1. Agreement Computation Percentages, attributable to annual taxable sales and leases at the Last Mile Hub quarterly received by the City following the Effective Date.

Table 1. Agreement Computation Percentages
Years 1 to 3: 35% to Rivian, 65% to City
Years 4 to 8: 50% to Rivian, 50% to City
The City estimates the annual Agreement Payments to Rivian as follows:
•in Year 1, the Agreement Payments to Rivian are estimated to total $1,037,190 with $1,926,210 to the City;
•in Year 2, the Agreement Payments to Rivian are estimated to total $1,037,190 with $1,926,210 to the City;
•in Year 3, the Agreement Payments to Rivian are estimated to total $1,728,650 with

Attachment C: Economic Development Subsidy Report

ECONOMIC DEVELOPMENT SUBSIDY REPORT
PURSUANT TO GOVERNMENT CODE SECTION 53083

FOR AN ECONOMIC INCENTIVE AGREEMENT BY AND BETWEEN

THE CITY OF MILPITAS
AND

RIVIAN, LLC

CITY OF MILPITAS AND RIVIAN LLC
ECONOMIC DEVELOPMENT SUBSIDY REPORT PAGE 3 | 6
$3,210,350 to the City;
•in Years 4 to 8 combined, the Agreement Payments to Rivian are estimated to total $12,347,500 with $12,347,500 to the City;
The City estimates the total amount of revenue gain for the City, over the 8-year term of the agreement to be $19,410,270.

The City estimates the total amount of the expenditure of public funds, or of revenue loss, because of the economic development subsidy will be up to $16,150,530 over the 8-year term of the agreement.

4. A statement of the public purposes for the economic development subsidy.

The economic development subsidy in this Agreement is intended to incentivize the leasing of an existing, approximately 97,000 square-foot industrial property located at 755 Yosemite Drive in Milpitas, California for the sales and leasing, vehicle delivery and inspections, and servicing of all-electric, zero-emission vehicles manufactured off-site and delivered by Rivian to customers from the Property (“Last Mile Hub”), and support the Rivian Last Mile Hub remaining in Milpitas for no less than eight (8) years.

Founded in 2009 and headquartered in Irvine, California, Rivian is an American manufacturer specializing in all-electric, zero-emission vehicles. Rivian employs 4,000 people in California and has a total workforce of over 16,000 across the U.S. and is known for its designs and production of vehicles such as the R1T pickup, R1S SUV, and commercial delivery vans, all aimed at reducing pollution from traditional vehicles.

The Property is located in the Heavy Industrial Zone (M2). The Property currently is vacant and typically would be occupied by light industrial and warehouse uses which provide few jobs and limited revenues to the City. Through the Agreement, Rivian will lease the Property to be occupied as a Last Mile Hub within the City subject to the Economic Development Incentive Agreement. Once operational, this Last Mile Hub will generate new Local Sales Taxes for the City, which will support community-wide public services. The Last Mile Hub will also generate secured and unsecured property taxes from the improvements constructed to support the operations, and establish a business that –for public, transportation, and environmental benefit – strategically utilizes the railway proximity, whereas that proximity may otherwise be contrary to attracting the highest, best use for this property.

Attachment C: Economic Development Subsidy Report

ECONOMIC DEVELOPMENT SUBSIDY REPORT
PURSUANT TO GOVERNMENT CODE SECTION 53083

FOR AN ECONOMIC INCENTIVE AGREEMENT BY AND BETWEEN

THE CITY OF MILPITAS
AND

RIVIAN, LLC

CITY OF MILPITAS AND RIVIAN LLC
ECONOMIC DEVELOPMENT SUBSIDY REPORT PAGE 4 | 6
The City has determined that the establishment by Rivian of a Last Mile Hub as described that participates in sales tax generating business activities within the City will generate substantial new revenue for the City, create approximately twenty-five (25) permanent, high-skilled jobs that meet the City Council priorities of Economic Development and Job Growth and fulfill Economic Development Strategy implementation actions. Additionally, the establishment of the Last Mile Hub supports the Milpitas 2040 General Plan’s Economic Development Element Goals to attract businesses focusing on emerging technologies including artificial intelligence and automotive technology, facilitates the development of projects that provide sales and/or use tax receipts among other revenues, and leverages public investments to enhance the City’s economic vitality. This Agreement supports the City commitment to fostering a business-friendly environment, stimulating economic growth, and generating new job opportunities and revenue sources that will enhance services for residents and the community. Further, Rivian’s commitment to zero emissions vehicles is consistent with and tends to forward the City’s Climate Action Plan.

5. Projected tax revenue to the local agency as a result of the economic development subsidy.

Rivian Covenants to the City will cause Rivian Sales Taxes to be paid to the City, which is estimated to total $35,560,800 over the eight (8) year term of the Agreement. The projected net tax revenue accruing to the City as a result of the economic development subsidy proffered in the Agreement is estimated to total $19,410,270 ($2.43 million average per year).

Rivian’s planned tenant improvements of $3-$3.5 million are contemplated to enhance the base valuation of the Property upon reassessment, with a potential increase of real property taxes of $4,878 to $8,130 per annum which will compound over time.

In addition, the City will receive permitting fees in Year 1 of the Agreement, and ongoing annual business license fees from Rivian for the Last Mile Hub.

6. Estimated number of jobs created by the economic development subsidy, broken down by full-time, part-time, and temporary positions.

The Rivian Last Mile Hub within the City is anticipated to result in the creation of approximately twenty-five (25) permanent, full-time, highly skilled and benefitted jobs.

While Rivian does not contemplate part-time jobs to be available at the Last Mile Hub

Attachment C: Economic Development Subsidy Report

ECONOMIC DEVELOPMENT SUBSIDY REPORT
PURSUANT TO GOVERNMENT CODE SECTION 53083

FOR AN ECONOMIC INCENTIVE AGREEMENT BY AND BETWEEN

THE CITY OF MILPITAS
AND

RIVIAN, LLC

CITY OF MILPITAS AND RIVIAN LLC
ECONOMIC DEVELOPMENT SUBSIDY REPORT PAGE 5 | 6
at this time, approximately 23,000 to 28,000 person hours of temporary construction jobs will be created to complete the planned leasehold improvements.

As expressed in the Agreement, Rivian acknowledges that a goal of the City in entering into this Agreement is to foster employment opportunities for City residents. To that end, Rivian will use commercially reasonable efforts to recruit and hire City residents for any employment opportunities as determined by Rivian in its sole discretion. The City shall be authorized to post and advertise any job recruitment information provided to the City on the City website and other jobs available and job recruitment sites within the region. Any offers of employment will be at Rivian's sole discretion. Nothing in the Agreement will require Rivian to offer employment to individuals who are not otherwise qualified for such employment.
(a) A description and total value of any state or federal subsidies in the process of being applied for, or received by, the Last Mile Hub.

None.
(b) A description of any accountability measures, including, but not limited to, claw backs of subsidies, provided in the Agreement if the Last Mile Hub does not meet the goals outlined in the Agreement for an economic development incentive subsidy.

If Rivian does not meet any of the Covenants required by the Agreement, the City may terminate its obligations with respect to Agreement Payments without cost, expense or liability, after providing Rivian an opportunity to cure. Rivian’s contractual covenants include an operating and use covenant for the new Last Mile Hub, a required designation of City as point of sale for the Last Mile Hub, economic subsidy reporting obligations, and obligations against solicitation or acceptance of financial assistance, as defined. Rivian also covenants the Last Mile Hub shall not be used for any purpose outside of that set forth in the Agreement as the Last Mile Hub.

7. Terms Used in This Notice.

As used in this notice, the following terms have the following meanings:
(a) "Agreement Payment" means the consideration to be paid to Rivian in exchange for the Covenants and Rivian's performance of its obligations as set forth in the Agreement, and subject to satisfaction of all conditions precedent thereto.

Attachment C: Economic Development Subsidy Report

ECONOMIC DEVELOPMENT SUBSIDY REPORT
PURSUANT TO GOVERNMENT CODE SECTION 53083

FOR AN ECONOMIC INCENTIVE AGREEMENT BY AND BETWEEN

THE CITY OF MILPITAS
AND

RIVIAN, LLC

CITY OF MILPITAS AND RIVIAN LLC
ECONOMIC DEVELOPMENT SUBSIDY REPORT PAGE 6 | 6
(b) "Computation Quarter" means each three-month period within the Agreement Term beginning on the first day of each Fiscal Quarter and ending on the last day of such Fiscal Quarter.
(c) "Covenants" means those covenants described in the Agreement. (d) "Economic development subsidy” means any expenditure of public funds or loss of revenue to a local agency in the amount of one hundred thousand dollars ($100,000) or more, for the purpose of stimulating economic development within the jurisdiction of a local agency, including, but not limited to, bonds, grants, loans, loan guarantees, enterprise zone or empowerment zone incentives, fee waivers, land price subsidies, matching funds, tax abatements, tax exemptions, and tax credits. “Economic development subsidy” shall not include expenditures of public funds by, or loss of revenue to, the local agency for the purpose of providing housing affordable to persons and families of low or moderate income, as defined in Section 50093 of the Health and Safety Code.
(e) Eligibility Period" means the period commencing as of the first (1st) day of Computation Quarter 1 and ending the last day of the final Computation Quarter contemplated by the lease of the Last Mile Hub, but not less than Computation Quarter 32.
(f) "Fiscal Quarter" means one three-month period, or portion thereof, within the Agreement Term and commencing on January 1, April 1, July 1, or August 1, and ending on, as applicable, the immediately following March 31, June 30, September 30, or December 31.
(g) “Local agency” means a city, including a charter city, county, or city and county.

Attachment D - RESOLUTION NO. ____

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

CALIFORNIA, APPROVING THE ECONOMIC DEVELOPMENT INCENTIVE

AGREEMENT AND ECONOMIC DEVELOPMENT SUBSIDY REPORT BY AND BETWEEN THE CITY OF MILPITAS AND RIVIAN, LLC.

WHEREAS, the Milpitas City Council has prioritized Economic Development and Job Growth whereby business attraction efforts are critical to driving economic growth by increasing tax revenues, creating job opportunities, fostering innovation, and enhancing the City’s business-friendly reputation; and WHEREAS, the Economic Development Incentive Agreement meets several City goals through the Economic Development Strategy, General Plan 2040’s Economic Development Element, and the Climate Action Plan. It includes Economic Development Strategy goals of creating a resilient and sustainable local economy, capturing emerging innovation and technologies, General Plan 2040 Economic Development Element Actions ED 1-2 Promote and support innovative and emerging technologies for 21st-century business and community needs, ED 2-4 Facilitate development projects that provide sales tax revenues, and Climate Action Plan Circular and Green Economy GE-1 Foster green and sustainable economic development opportunities and support circular economy policies, and GE-1.1: Support and attract clean technology businesses and green jobs in Milpitas.

WHEREAS, Rivian, LLC is an American electric vehicle (EV) company established in 2009. Rivian designs and manufactures all-electric vehicles, with its flagship models R1T (pickup truck) and R1S (SUV), and commercial vans, aimed at reducing greenhouse gas emissions. In March 2024, Rivian introduced three midsize models, the R2, R3, and R3X to deliver performance and utility at an affordable price. Rivian employs 4,000 people in California and has a total workforce of 16,000 in the United States.

WHEREAS, Rivian is considering leasing, remodeling, and operating an existing, approximately 97,000 square-foot industrial property located at 755 Yosemite Drive in Milpitas, California, for the sales and leasing, vehicle delivery and inspections, and servicing of all-electric, zero-emission vehicles manufactured off-site and delivered by Rivian to customers from the property known as a Last Mile Hub; and WHEREAS, Rivian wishes to locate a Last Mile Hub in Milpitas because of the operational advantages including, but not limited to, the strategic location of the city which supports alternative transportation routes and methods, as well as access to and for customers in Northern California, and a qualified workforce; and WHEREAS, the City has determined the establishment by Rivian of a Last Mile Hub that participates in the sales/lease process in Milpitas will generate substantial revenue through the Economic Development Incentive Agreement for the City, and create approximately twenty-five (25) permanent, full-time highly skilled jobs; and WHEREAS, the City has determined the ongoing operation of the Last Mile Hub will yield substantial advantages for both the City and its community, including, but not limited to, new employment opportunities, property tax revenues, sales tax revenues, and other related benefits; and WHEREAS, California Government Code §53083 mandates that local agencies shall provide public notice and a hearing concerning any economic development subsidy within their jurisdiction prior to obtaining approval from their governing body; and
WHEAREAS, California Government Code §53083 reporting requirements regarding an Economic Development Subsidy aimed at stimulating economic development within the local jurisdiction is triggered when the expenditure of public funds or a loss of revenue to a local agency amounts to $100,000 or more; and WHEREAS, Compliance with California Government Code §53083 requires the City of Milpitas to post the information regarding the proposed economic development subsidy on the City website throughout the entire duration of the subsidy, which took place beginning on February 21, 2025; and

2 Resolution No. _____
WHEREAS, Rivian wishes to apply for and obtain a Direct Pay Permit to self-assess and pay sales and/or use taxes directly to the California Department of Tax and Fee Administration (“CDTFA”) instead of to the lessor from whom the property is leased; and
WHEREAS, Rivian intends to designate the City as a point of sale for Rivian's products sold and/or leased at the Last Mile Hub in Milpitas; and
WHEREAS, the economic incentives provided in the Economic Development Incentive Agreement are intended to encourage Rivian to lease, remodel, and operate a Last Mile Hub within Milpitas, serve as a community partner, and remain in Milpitas for up to eight (8) years; and WHEREAS, this Resolution is not, and shall not be construed to be, an approval or an agreement to issue permits or a granting of any right or entitlement by the City concerning the Last Mile Hub, Rivian’s business activities or any other project, development, or construction by Rivian in Milpitas; and WHEREAS, accordingly, the City has concluded that entering into an Economic Development Incentive Agreement and Rivian's performance of those covenants serves a significant public purpose and further fosters a healthy local economy in Milpitas as forth by a City Council Resolution.

THEREFORE BE IT RESOLVED, 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 approves the Economic Development Incentive Agreement and Economic Development Subsidy Report by and between the City of Milpitas and Rivian, LLC. The City Manager or his designee is authorized to execute the Economic Development Incentive Agreement on behalf of the City of Milpitas.

Passed and adopted this 4th day of March 2025 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

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

3 Resolution No. _____
Michael MutalipassiChristopher Creech, Acting City Attorney

CITY OF MILPITAS

AGENDA REPORT
(AR)
Item Title: 2025 Weed Abatement Public Hearing and Resolution Adoption to Abate the Weeds (Staff Contact: Arthur Belton, Deputy Fire Chief/Fire Marshal, 408-586- 3384)
Category: Public Hearings-Public Safety
Meeting Date: 3/4/2025
Recommendation: (1) Conduct a public hearing; and (2) Adopt a resolution directing the County of Santa Clara Consumer and Environmental Protection Agency Weed Abatement Program to abate the nuisance, keep an account of the cost, and embody such account in a report and assessment list to the City Council in accordance with the Milpitas Municipal Code.

BACKGROUND:

Fire risk in California with regard to climate has been steadily increasing each wildfire season. Much of the loss to property and life is attributed to areas known as Wildland Urban Interface (WUI) where housing development has been integrated into traditionally open land space. However, some notable fire storms have not been limited to WUI, resulting in rapid fire spread within fully developed city landscapes. Three factors that contribute to wildfire behavior and spread are weather, topography and fuel load. Of these factors, fuel load is the one that can be engaged proactively to reduce the risk of fire initiation and spread. As a result, community fire prevention efforts focus on factors such as fuel reduction and defensible space. Weeds are significant contributors to initial and escalating fire growth. Categorized as light, flashy fuels, they are an easily ignitable fuel source that burns rapidly, increasing fire risk both in frequency and size. For many years Milpitas has been successful in reducing the fire risk of these light, flashy fuels through a weed abatement program.

On February 2, 1976, an Agreement was established and approved to abate weeds by the County of Santa Clara for the City of Milpitas. On June 21, 2022, City Council approved an amended and restated agreement, authorizing the City Manager to execute and sign the updated agreement. The Agreement promotes the efficiency and economy of operations in the abatement of weeds by the City and the County. The major procedural functions to be performed by the County and / or City shall include but not limited to:

1. The County shall prepare the list of parcels requiring abatement of weeds in the City and transmit the said list to the City for review and approval for processing.

2. The County shall prepare the notice of weed abatement and cause such notice to be mailed to the owners of the parcels requiring weed abatement.

3. The City Council shall conduct public hearings on the proposed removal of weeds pursuant to the provisions of the City Ordinance when the City Fire Marshal presents such appropriate resolutions for adoption. The City Council may by resolution declare the weeds on the respective parcels of the land as nuisance and make the determination to proceed with the abatement of weeds and authorize the performance of the service to remove the weeds in accordance with the aforementioned Agreement.

4. Upon proper authorization by the City, the County shall remove the weeds on the designated properties.

5. The County shall render to the City an itemized assessment report for the cost of the weed abatement services performed on the respective parcels.

6. The City Council, after a public hearing, shall require the County Assessor’s Office to include the costs of the weed abatement services performed for the City for the current year as a special assessment on

bills for taxes levied against the affected parcels. Such special assessments shall be liens on the respective properties.

7. Pursuant to California Health and Safety Code 14915, a copy of the report, as confirmed, shall be turned over to the auditor of the County, on or before the tenth day of August following such confirmation, and the auditor shall enter the amounts of the assessments against the respective parcels of land as they appear on the current assessment roll, (Amended by Stats. 1939, Ch. 354).

ANALYSIS:

On February 4, 2025, the City Council adopted Resolution No. 9384 declaring weeds on certain described properties to be a public nuisance, and to set a public hearing for March 4, 2025. A copy of the resolution was forwarded to the County of Santa Clara Consumer and Environmental Protection Agency- Weed Abatement Program (County). A notice for the public hearing was sent by the City Clerk’s Office to the local newspaper for publication. Additionally, the notice was mailed to owners of the properties proposed for abatement by the City of Milpitas and the County. The purpose of the public hearing is for the parcel owners who object to the removal of the weeds to state their objections before the weeds are removed and the costs made as a lien upon the property. A list of properties to be abated is included in the City Council’s agenda packet along with a resolution directing the County to abate the weeds.

POLICY ALTERNATIVE(S):

Alternative 1: Not pass a resolution
Pros: None
Cons: This would reverse a long-standing agreement with Santa Clara County to provide weed abatement service within the City of Milpitas
Reason for Not Recommending: Without a resolution, property owners will not be notified and weed abatement will not be conducted. Weeds covered under this program, classified as “light flashy fuels” are prone to easy ignition and contribute significantly to rapid fire growth. Left unmitigated, these weeds pose a significant public safety issue in terms of fire potential.

FISCAL IMPACT:

At a City Council meeting prior to August 10th of each year during a public hearing, the City’s municipal code provides the City Council hear the assessment report for the list of weeds abated within the City, together with any objections of the property owners liable to be assessed, and to make such modifications on the proposed assessment as it deems necessary. Following adoption by the City Council, the resolution will be recorded and charges thereon become a lien on the land involved to be collected in the same manner as property taxes.

There are no City-owned parcels listed (Attachment 1) for weed abatement services. If the money collected from property owners in Santa Clara County for weed abatement services does not cover the County's fixed costs, the County can request the City to pay its fair share of the deficit by September 1. The City’s deficit share is determined by the percentage of parcels in the City that received weed abatement services compared to the total number of parcels serviced by the County. The County payment request would include details about the total shortfall, any available program revenues to offset it, and the City's calculated share of the shortfall.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):

The action being considered has no potential for causing a significant effect on the environment and is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3).

RECOMMENDATION:
1) Conduct a public hearing.
2) Adopt a resolution directing the County of Santa Clara Consumer and Environmental Protection Agency Weed Abatement Program to abate the nuisance, keep an account of the cost, and embody such account in a report and assessment list to the City Council in accordance with the Milpitas Municipal Code.

ATTACHMENT(S):
a) 2025 Milpitas Commencement Report (Exhibit A)
b) Resolution

APN
634 N ABEL ST 022-06-010
7280 MARYLINN DR 022-07-007
99 S MAIN ST 022-24-017
111 S. Main ST 022-24-040
VALLEY WY 022-28-026
1735 CALIFORNIA CR 022-37-002
1301 CALIFORNIA CIR 022-38-002
81 DIXON RD 026-05-021
DIXON RD 026-05-023
1878 N MILPITAS BLVD 026-05-024
51 DIXON RD 026-05-053
DIXON RD 026-06-012
1720 ARIZONA AVE 026-07-016
1840 ARIZONA AVE 026-07-051
1640 ARIZONA AVE 026-11-067
BOTHELO LN 028-23-017
RAILROAD AVE 028-24-006
1390 EL CAMINO HIGURA 029-02-007
1327 CALLE ORIENTE 029-05-010
880 EVANS RD 029-06-003
666 EVANS RD 029-06-008
826 CALAVERAS RIDGE DR 029-06-031
322 N PARK VICTORIA DR 029-16-006
1220 COUNTRY CLUB DR 029-52-014
1039 CAMARILLO CT 029-52-015
673 QUINCE LN 029-59-014
517 VISTA RIDGE DR 042-30-009
519 VISTA RIDGE DR 042-30-010
529 VISTA RIDGE DR 042-30-015
410 VISTA RIDGE DR 042-30-024
350 VISTA RIDGE DR 042-30-025
531 VISTA RIDGE DR 042-30-029
SERRA WY 083-06-006
MAIN ST 083-06-008
S MAIN ST 083-07-015
540 S ABEL ST 083-13-013
91 MONTAGUE EXPY 083-42-002
HAMMOND WAY 086-25-018
S MAIN ST 086-25-028
2025 WEED ABATEMENT PROGRAM

COMMENCEMENT REPORT

CITY OF MILPITAS

EXHIBIT A
Situs

HAMMOND WAY 086-25-030
HAMMOND WY 086-25-032
BOTHELO AVE 086-26-039
HAMMOND WY 086-26-040
HAMMOND WY 086-26-042
MILPITAS BLVD 086-28-006
VISTA WAY 086-29-005
WRIGLEY WAY 086-29-036
YOSEMITE DR 086-29-047
876 YOSEMITE DR 086-30-047
YOSEMITE DR 086-30-048
AMES AVE 086-30-060
SINCLAIR FRONTAGE RD 086-31-003
MILPITAS BLVD 086-32-084
1646 CENTRE POINT DR 086-33-110
COSTA ST 086-41-014
1001 S MILPITAS BLVD 086-42-033
GARDEN ST 086-94-014
375 DEMPSEY RD 088-01-002
S PARK VICTORIA DR 088-04-062
DEMPSEY RD 088-04-076
534 S PARK VICTORIA DR 088-06-039
1459 CANTON DR 088-09-039
1496 JUPITER CT 088-09-089
2013 YOSEMITE DR 088-20-023
575 CARLSBAD ST 088-20-102
632 CARLSBAD ST 088-20-125
1791 ROCKY MOUNTAIN AV 088-23-075
1966 YOSEMITE DR 088-26-149
OLD PIEDMONT RD 092-34-008
1250 PIEDMONT RD 092-34-014
2235 URIDIAS RANCH RD 092-37-050

RESOLUTION NO. ___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MILPITAS AUTHORIZING THE CITY

MANAGER TO CONTRACT WITH THE OFFICE OF SANTA CLARA COUNTY CONSUMER AND ENVIRONMENTAL PROTECTION AGENCY – WEED ABATEMENT PROGRAM TO ABATE WEEDS

AND/OR CAUSE THE REMOVAL OF RUBBISH, REFUSE OR DIRT DECLARED TO BE A PUBLIC

NUISANCE, TO KEEP AN ACCOUNT OF THE COSTS OF ABATING SUCH NUISANCE, AND TO FILE

SUCH ACCOUNT IN A REPORT AND ASSESSMENT LIST WITH THE CITY COUNCIL WHEREAS, the City Council of the City of Milpitas adopted Resolution No. 9384 on February 4, 2025, declaring weeds and/or the accumulation of rubbish, refuse or dirt on the properties listed on the annual list attached hereto as Exhibit A to be a public nuisance and setting a public hearing in accordance with Title V, Chapter 202 of the Milpitas Municipal Code; and
WHEREAS, a public hearing was duly noticed as required by law and such hearing was held on March 4, 2025, to hear public comments and consider any objections to the proposed removal of the weeds, rubbish, refuse and/or dirt; and WHEREAS, the City Council duly considered and overruled any objections to the proposed nuisance abatement by the Office of Santa Clara County Consumer and Environmental Protection Agency – Weed Abatement Program.

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 Manager is hereby ordered and authorized to contract with the Office of Santa Clara County Consumer and Environmental Protection Agency – Weed Abatement Program to abate such public nuisances existing on those properties included on the attached Exhibit A. The City Council finds and determines that these properties and/or the adjacent sidewalks and streets on this list contain unlawful weeds, rubbish, refuse, or dirt in violation of Section V-202-2.00 of the Milpitas Municipal Code, that such conditions and properties constitute a nuisance in violation of Section V-202-3.00 of the Milpitas Municipal Code, and that such conditions and properties are ordered to be abated pursuant to Section V-202-7.00 of the Milpitas Municipal Code. All objections not expressly allowed by a majority vote of the City Council at the hearing on March 4, 2025 are overruled. The Office of Santa Clara County Consumer and Environmental Protection Agency – Weed Abatement Program shall keep an account of the cost of abatement on each listed parcel and submit to the City Clerk, for confirmation by the City Council, an itemized written report showing such costs to be assessed on the listed properties as provided for in the Milpitas Municipal Code, Sections V-202-7.00 through V-202-10.00.

PASSED AND ADOPTED this 4th day of March, 2025, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

ATTEST: APPROVED:
_________________________________ ______________________________ Suzanne Guzzetta, City Clerk Carmen Montano, Mayor

APPROVED AS TO FORM:
_________________________________
Christopher Creech, Acting City Attorney

1 CITY OF MILPITAS

AGENDA REPORT
(AR)
Item Title: Receive an Overview of the Public Review Draft of the Full Updated Zoning Ordinance (Phase 2 of the Comprehensive Zoning Ordinance Update) and Provide Comments to Staff (Staff Contact: Jay Lee, Planning Director, 408-586- 3077; and Holly Pearson, Senior Special Projects Associate, 408-609-0072) Category: Community Development
Meeting Date: 3/4/2025
Recommendation: Receive an overview of the Public Review Draft of the full updated Zoning Ordinance (Phase 2 of the Comprehensive Zoning Ordinance Update) and provide comments.

BACKGROUND:

In early 2023, the City of Milpitas (City) launched a comprehensive update of the City Zoning Ordinance, which is the primary implementation tool for the City General Plan with regard to land use and urban development.

The Zoning Ordinance (also called the zoning code) is the set of local laws and regulations that determine the form and appearance of new development and expansions or other modifications to existing buildings, as well as what types of land uses (retail, offices, residential units, industry, etc.) may be located where. Lisa Wise Consulting, Inc., a California-based firm with extensive experience in zoning code updates for local jurisdictions across the state, was retained to work with the Planning Department on the project.

The first phase of the Comprehensive Zoning Ordinance Update work, which focused on consistency with the updated general plan (Milpitas 2040 General Plan) and the recently adopted Milpitas Metro Specific Plan, resulted in the creation of the new Business Park Research and Development (BPRD) Zone and Metro Area Zones, along with related updates to the City’s zoning map. These ordinance and map changes were adopted by City Council on June 18, 2024, and became effective 30 days after that date.

The second phase of the Zoning Update Project consists of detailed update work on the entire code.

Objectives of this phase of work include reorganizing the code and making it more user friendly; modernizing the zoning regulations in keeping with changes in state and federal law and current best practices in land use planning; incorporating changes that will implement various City policy documents, such as the Climate Action Plan and the Housing Element; and promoting more compact, mixed-use and transit-oriented development in appropriate areas of Milpitas.

On December 18, 2024, the City released the public review draft of the updated full Zoning Ordinance. The new draft Zoning Ordinance represents a thorough reorganization and modernization of the existing zoning code (currently Title XI, Chapter 10 of the Milpitas Municipal Code). In addition, a new draft of the Citywide zoning map is available for public review. This proposed version of the zoning map includes only minor changes to overlay zones related to the Phase 2 zoning code updates. No changes have been made to the base zoning for any properties in Milpitas, with the exception of the conversion of the existing Mobile Home Park overlay to a new Mobile Home Park base zone – see “Summary of Phase 2 Draft Updates to Citywide Zoning Map” section on pages 7-8 for further information.

The public comment period for the draft updated Zoning Ordinance and zoning map is open through March 7, 2025. Planning Department staff is requesting comments on these drafts from City Council and members of the community at this special study session. The draft Zoning Ordinance and map will be revised as needed based on comments received, then brought to the Planning Commission and City Council for consideration for adoption this summer.

2 ANALYSIS:

Work on Phase 2 of the Comprehensive Zoning Update began in late 2023. Initial efforts focused on the preliminary identification of topics for further study and public input, followed by analysis of how to best reorganize and revise the existing Zoning Ordinance. In general, changes to the updated Zoning Ordinance focus primarily on improving the clarity, structure, and organization, and “user friendliness” of the code. This report provides a summary of the draft updated Zoning Ordinance, included in its entirety as Attachment A, noting highlights of the changes that are proposed as compared to the existing code.

The draft updated code features an entirely new structure and numbering convention; however, many sections of the existing code have been carried over to the new Zoning Ordinance structure without substantial changes. Other existing code sections have been completely rewritten, and several new sections have been added to the draft updated code, addressing topics that are not currently part of the City’s Zoning Ordinance.

An acronym sheet (Attachment B) has also been prepared that defines the various acronyms used within the draft Zoning Ordinance.

The land use regulations and development standards for most of the zoning districts in the City will remain largely the same as they are in the existing Zoning Ordinance; that is, there are few changes to standards such as maximum building heights, minimum building setbacks, allowable density, and allowable uses. The minor changes in allowable height, density, setbacks, and other development standards that are proposed are necessary for the Zoning Ordinance to implement and be consistent with the City General Plan, including the 2023-2031 Housing Element, as required by state law. No changes are proposed to the existing, voter- approved hillside development regulations in the “H” Hillside Combining District.

The draft updated Zoning Ordinance does not include any changes or additions related to the City’s proposed Housing Opportunity Districts (HODs), which are being considered and discussed under a separate effort. The existing Town Center (TC) Zone, which would be amended in conjunction with the HOD project (if approved), has been carried forward in the draft updated Zoning Ordinance with essentially no changes. If the HOD project is approved, zoning changes related to the Town Center Zone and proposed new Neighborhood Commercial Mixed Use (NCMU) Zone would be incorporated into the Zoning Ordinance at that time.

Overview of Public Review Draft Zoning Ordinance
New Structure and Numbering System
The Zoning Ordinance is currently a chapter within Title XI–Zoning, Planning, and Annexation of the Milpitas Municipal Code (MMC). For the comprehensive update, it is proposed to be moved to its own new title of the MMC (Title XIII–Zoning). This allows the Zoning Ordinance to have a new numbering system that allows for better organization and ease of navigation, as well as for new chapters or sections to be easily added and integrated into the numbering sequence in the future, between existing chapters or sections.

The proposed new Title XIII–Zoning is organized into five parts, with corresponding letter headings:

Part A: General
The introductory part of the updated code addresses the purpose and authority of the Zoning Ordinance, rules of interpretation (of language, numbers), and rules of measurement (lot width, depth, and slope; building height and setbacks; floor area ratio).

Part B: Zone Regulations
This part of the updated code includes all base and overlay zones and corresponding regulations. As in the existing code, base zones are grouped into Residential, Commercial, Mixed Use, Industrial, Metro Specific Plan, and Other. Also included are the existing Milpitas Commercial Specific Plan Area and relevant zoning standards, and those overlay and combining zones that have been retained (Freeway Corridor, Site and Architectural, and “H” Hillside Combining zones) – see the section Summary of Phase 2

3 Draft Updates to Citywide Zoning Map on pages 7-8 for information about existing overlay zones that are proposed to be eliminated).

Part C: Citywide Standards
This part of the code contains general development standards that are applicable in all or several zones throughout the city, related to topics such as accessory structures, fences and walls, lighting, performance standards, exceptions to maximum building height, and allowed encroachments into required setbacks. It includes the chapters on landscaping standards, parking and loading requirements, signs, density bonus for affordable housing, condominium conversions, and nonconforming buildings and uses. It also includes a chapter titled “Specific to Uses,” which contains special regulations for specific land uses such as accessory dwelling units (ADUs), alcoholic beverage sales, cannabis uses, emergency shelters, home occupations, mobile food vending, short-term rentals, temporary uses and structures, wireless telecommunication facilities, and many others.

Part D: Procedures and Administration
Part D is the part of the Zoning Ordinance dedicated to procedures and administration that sets forth the various permit types (Site Development Permits, Use Permits, Variances, Home Occupation Permits, Special Event Permits, and others) and the procedure for review and approval for each type. It establishes the applicable review authority for each permit type (Planning, Director, Zoning Administrator, Planning Commission, or City Council). It also establishes City procedures for preparation and adoption of Zoning Ordinance and zoning map amendments, General Plan amendments, specific plans, planned unit developments (PUDs), and development agreements. Finally, this part contains the code enforcement procedures and penalties for violations of the provisions of the Zoning Ordinance.

Part E: Definitions
The Definitions part of the code is divided into three chapters: Definitions of Terms (general terms used in the Zoning Ordinance) Definitions of Uses (the land uses that may be permitted or conditionally permitted within the various zones), and Definitions of Sign Terms (specific terms used in the Signs chapter in Part C).

Overall Approach and Revisions
Throughout the draft updated code, existing text has been reorganized and regrouped to fit into a more logical sequence, and to make it easier and quicker for users to find and reference the information they need. For instance, definitions have been collected into a single place instead of being spread throughout the code.

Similar chapters (such as those related to Residential, Commercial, and Industrial Zone standards) have been organized similarly so a reader can locate information more quickly when moving between chapters. In addition, archaic or confusing language has been replaced with new language that is more clear and stylistically consistent.

In several sections of the draft Zoning Ordinance, new tables, diagrams, illustrations, and other graphics have been incorporated that help to explain and demonstrate definitions, procedures, and standards in the code. In addition, many existing procedures and zoning standards have been clarified and simplified. For example, in the existing Zoning Ordinance, the sections for each category of zones (i.e., Residential Zones, Commercial Zones, Industrial Zones) include subsections with special standards and procedures, which are proposed to be consolidated and moved to Part C: Citywide Standards in the updated code. This reduces unnecessary repetition and offers a more efficient way of presenting information that applies to multiple zoning districts.

Finally, legal requirements derived from state law, federal law, and court rulings that have come into effect since the last updates to the Zoning Ordinance have been reflected in the code in the form of new regulations, standards, and procedures. One example is the proposed changes to Zoning Ordinance provisions for emergency shelters, low barrier navigation centers, supportive housing, and other housing types addressed in the City’s adopted 2023-2031 Housing Element that reflect recent changes in state law. Another noteworthy example is the substantial proposed changes to how the City classifies and regulates signs, which are necessitated by the 2015 Reed v. Town of Gilbert U.S. Supreme Court ruling that generally precludes

4 municipalities from imposing content-based restrictions on signage (in other words, sign regulations may not pertain to the content or the message of a sign, but only to aspects such as the sign’s type, size, and manner and duration of display).

New and Substantially Modified Content - Highlights
Definitions and Land Use Classifications [See Chapters E.2 and E.4]. Among the most important and beneficial changes made in the draft Zoning Ordinance are revisions to the existing definitions section, which currently contains both definitions of words/terms used in the code and definitions of land uses that appear in the zone regulations. In the updated code, general definitions and land use definitions have been separated into two distinct chapters. Words and terms that are technical in nature and/or have a specific meaning, context, or usage in the Zoning Ordinance are defined, but not commonly used and well understood English words that appear in the code.

Furthermore, the land use definitions have been extensively revised, simplified, and recategorized. In the existing code, in many cases, very specific business types are listed within the use tables – in the Commercial Zone Uses table (Table XI-10-5.02.1), “Contractor’s yards,” “Landscape contractor,” and “Lumberyards,” are listed separately. By contrast, in the draft updated code, a new and consolidated land use classification for “Construction Yard and Equipment Rental” is included and defined. Having broader, well-defined classes of land uses is much more efficient than listing specific business or use types separately – not only because it is more concise, but also because it allows staff to interpret proposed uses or business types that may not be individually listed in the code, but that would clearly fit within a defined and well-described grouping or category of uses.

Permit Types and Review Authorities [See Section D.2.030]. The roster of Planning permit types and the applicable review authority for each has been revised for clarification, and to provide for an appropriate level of review/discretion and public notification for development projects of various sizes and scales. See Table D.2.030-A: Review Authorities (Attachment 1, page XIII-D.2.) for the proposed review authorities for each permit type, and see Subsections D.4.020 through D.4.120 (Attachment 1, pages XIII-D.16 through XIII-D.42) for details about which permit type(s) is/are required based on the type and size of project.

These revisions also fully implement a previous objective of the City Council to transition reviews from the Planning Commission Subcommittee to the Zoning Administrator so as to streamline the development review process.

Many types of projects are now subject to a “lower” level of review. For example, in the existing code, a Site Development Permit (SDP) (Zoning Administrator review) is required for construction of a new single- family dwelling or a new commercial building under 10,000 square feet (per MMC XI-10-57.03(C)(1)(a)). In the draft updated code, both of these project types would be subject to a Minor Site Development Permit (Zoning Administrator) (per Table D.4.020-B). Although the review authority remains the same for these project types, under the updated code both would require a Minor SDP instead of a SDP, resulting in lower permit fees. Staff anticipates the Planning Permit Fee Schedule will be updated and adjusted concurrently with adoption of the updated Zoning Ordinance to reflect new project types and associated staff review time.

In the current code, a 10,000 square foot addition to an existing commercial building requires a Site Development Permit (Zoning Administrator review) (per MMC XI-10-57.03(C)(1)(e)(i); in the updated code, it would be subject to a Minor Site Development Permit (Planning Director review) per Table D.4.020-B).

In the existing code, any new fence requires a Minor Site Development Permit (Planning Director review) (per Table XI-10-57.03-1), and in the updated code a new fence that complies with the height, design, and materials standards in Subsection C.2.040 – Fences, Walls and Hedges would be exempt from Site Development Permit review (per D.4.040.B.3.f).

Minor Deviations from Zoning Standards [See Section D.4.050]. In the existing Zoning Ordinance, deviations from many zoning standards and requirements may be allowed with a Conditional Use Permit (see Table XI-10-57.04-1). Although this allows a great deal of flexibility for applicants, the CUP process is

5 costly and time-consuming. Moreover, the code currently provides little to no guidance as to whether and under what circumstances such CUP requests should be granted, which results in uncertainty for both Planning staff and applicants. Under general best practices in land use planning, CUPs should be employed for the review and approval of land uses that are specified as conditionally permitted in given zones; they are not intended to be used to grant exceptions to or relaxation of zoning standards.

In the draft updated code, this open-ended provision allowing for deviations from zoning standards with a CUP is proposed to be replaced with a new Minor Deviations provision. A Minor Deviation request would be a new permit type, and the draft code sets forth specific types of deviations from zoning standards that may be approved subject to this permit. Moreover, the code specifies the maximum amount of deviation that may be allowed and specific findings that must be met for approval to be granted. This procedure would provide for more consistency, predictability, and transparency, as compared to the existing CUP process, while retaining appropriate flexibility for applicants in unique situations.

Parking [See Sections C.6.040 through C.6.070]. The standards in the existing Zoning Ordinance for the number of off-street parking spaces required by land use are outdated and not consistent with current best planning practices (regional, state, and national). In the case of most land uses, the City’s existing parking requirements are too high, contributing to an undesirable cycle of too much urban land being dedicated to the parking of cars, low-density development patterns, and a lack of viable, alternative transportation options such as walking, bicycling, and using public transit.

To correct this problem, modest reductions are proposed to the minimum parking requirements for most land uses. The draft updated parking standards are comparable to those adopted by other mid-sized, suburban jurisdictions in the San Francisco Bay Area, and are intended to more realistically reflect the amount of parking demand generated by specific land uses, such as retail, multifamily residential, and offices. Examples of proposed changes to parking requirements include:

Land Use Existing Parking
requirement
Proposed Parking
Requirement
Single Family Residence:
•2-bedroom
•3-bedroom
2 spaces per unit
2 spaces per unit
1 space per unit
2 spaces per unit (no
change)
Multi-Family Residence:
•1-bedroom
•2-bedroom

1.5 spaces per unit
2 spaces per unit
1 space per unit

1.5 spaces per unit
Full-Service Restaurant: 1 space per 39 square feet
of floor area
1 space per 200 square feet
of floor area
General Retail Stores: 1 space per 200 square feet
of floor area
1 space per 400 square feet
of floor area
In addition, to further support alternative and more sustainable transportation modes, the draft updated code allows for additional reductions to the total amount of required parking on a site through the implementation of alternative parking strategies and transportation demand management (TDM) measures that would contribute to reductions in the actual parking demand generated by a property.

Alternative parking strategies would be voluntary and could be incorporated according to the applicant’s choice. Possible alternative parking strategies include shared parking where two or more different land uses share parking spaces based on different peak demand times for parking usage, provision of spaces for car share vehicles, and provision of electric vehicle (EV) charging spaces, and additional bicycle parking spaces. TDM measures would be mandatory for larger new development projects based on project type (e.g., multifamily residential projects with 20 or more units, office projects with 10,000 or more square feet of floor area, hotels with 40 or more rooms). Examples of TDM measures that may be

6 incorporated into a TDM plan include carpooling/vanpooling provisions, free or subsidized transit passes for residents, on-site car sharing, and construction of bicycle/pedestrian infrastructure improvements near a project site.

Signs [See Chapter C.8]. The Signs chapter of the draft Zoning Ordinance has been completely rewritten. The most significant change is that sign requirements and standards have been revised to focus on content neutrality, as noted above – that is, to address the time, place, and manner of a sign’s display as well as the physical appearance (size, proportions, colors, font styles) rather than the content or the message conveyed by the sign. Zoning standards for signs have been reorganized into a table format for easier reference, and new illustrations have been included to demonstrate sign types and applicable standards for size and placement. In addition, color graphics and photos have been added to illustrate the sign design standards.

Single-Family Residential Design Standards [See Section C.10.210]. The Zoning Ordinance does not currently include design standards for single-family residences. As part of the proposed code update, a new section on design standards for single-family dwellings has been added in order to improve and enhance the appearance and aesthetic quality of residential neighborhoods in Milpitas. These standards would be applicable only to new single-family homes; they would not apply to modifications to existing homes.

The proposed new design standards for single-family homes are simple and address aspects such as orientation of primary entrances toward the street, privacy requirements for second-story windows near property lines, limits on blank walls, and requirements for durable and high-quality exterior building materials.

Landscaping Standards [See Chapter C.4]. The existing Zoning Ordinance does not broadly address site landscaping for new construction projects or expansions/improvements to existing facilities. In the draft update, a new chapter dedicated to landscaping requirements has been added to the Citywide Standards portion of the code. The proposed new landscaping standards would apply to most types and scales of projects (exceptions for small projects and certain property types are noted), and a conceptual landscape plan would be required to be submitted with the development application package. The draft standards address topics such as the areas of a site to be landscaped, requirements for drought-tolerant species, standards for size and spacing of plants and trees, and requirements for the installation and maintenance of plantings.

Special Use Standards [See Chapter C.10]. While the existing Zoning Ordinance contains many development and/or operational standards that apply to specific land uses, these are currently scattered throughout the code. In many cases, this makes it difficult to identify and understand the full range of regulations and standards that would apply to a specific proposal. In the draft updated ordinance, all standards that are specific to certain land uses have been consolidated into a single chapter, C.10— Specific to Uses, in the Citywide Standards portion of the code. This chapter includes sections dedicated to specific land uses, including adult-oriented businesses, eating and drinking establishments, massage establishments, and many others.

Although most of the use-specific standards in this chapter have been carried over without substantial changes from the existing code, some sections have been added, updated, or modified in the draft Zoning Ordinance. For example, new proposed standards have been added for Animal Husbandry (addressing the raising of domestic animals other than pets), drive-through facilities (such as for fast food restaurants and pharmacies), service stations, and car washes.

Special use standards that have been expanded and improved include:
•Home Occupations: Number of clients allowed at a time at a home-based business proposed to be increased from one to two; draft new standards for the storage of vehicles used for home- based businesses added; cottage food operations as allowed by state law proposed to be allowed as home occupations.

7 •Temporary uses: New Temporary Use Permit type and procedure created; greater detail and clarity added as to the types of temporary uses that do and do not require Planning review and approval.

New Zoning Incentives [See Section C.2.060]. The draft updated Zoning Ordinance includes proposed new incentives to encourage certain desirable elements to be incorporated into development project proposals. These include larger affordable rental units (3+ bedroom) to help meet the need for affordable family housing in Milpitas; the consolidation of multiple smaller lots into larger lots that can support higher- density, multifamily housing; and building energy efficiency that exceeds the minimum requirements of state and local building codes. The types of incentives provided for the above project components range from reduced requirements for building setbacks, common open space, and guest parking to streamlined/expedited development review.

How the Zoning Update will Benefit Milpitas Residents, Businesses, and Builders The proposed, new and improved code offers many benefits to the different groups of users that reference, apply, and interpret the City’s Zoning Ordinance. Some examples include:
•For homeowners and other property owners who wish to make improvements to their existing lots and buildings or to construct new structures, simpler and less expensive permit requirements would apply for many project types, reducing the time and cost involved in obtaining needed approvals. •For architects and designers who design new buildings or additions/modifications to existing buildings, the updated structure and organization of the draft code – including improved development standards tables with better cross-references to other applicable code sections, and a new, clearly organized Citywide Standards section – makes it easier to find and compile information on all zoning regulations and standards that would apply to specific projects and in specific situations. •For Milpitas residents in general, new landscaping requirements, new single-family dwelling design standards, and improved design standards for signs would maintain and enhance the quality and appearance of residential, commercial, and mixed-use areas of Milpitas, resulting in more attractive and appealing neighborhoods.
•For small business owners seeking approvals to open new businesses or make changes to existing businesses, modernized and improved definitions and categories for land uses, and inclusion of those land uses in use tables by zone, would make it easier to understand where specific business types are permitted or not permitted in the city and what permits (if any) are required. •For real estate developers who wish to apply for entitlements for large-scale development projects in Milpitas, lower parking requirements would allow for more efficient use of sites (more floor area could be dedicated to the primary use of a site instead of to parking that may exceed actual demand) and would help make projects more financially feasible (since the cost of providing parking spaces is typically high).
•For Planning and Code Enforcement staff, the improved overall structure and organization of the code make it easier and quicker to find the information she/he/they are looking for. More thorough and consistent cross-references to other related code sections – in the use tables, development standards tables, and throughout the text of the Zoning Ordinance – make it easier to identify and understand the additional standards and requirements that apply to a given proposal or situation. These changes will also support City staff in explaining zoning regulations to property owners, builders, and other interested parties.

Summary of Phase 2 Draft Updates to Citywide Zoning Map As noted above, the proposed updates to the City’s zoning map that will be considered concurrently with the draft Zoning Ordinance are limited to minor changes that are mostly related to existing “overlay zones”.

Overlay zones are supplemental or secondary zoning districts placed over existing base zones, adding extra regulations or standards that apply to specific areas. Outdated or obsolete overlay zones are proposed to be

8 eliminated from the Zoning Ordinance, including the Gateway Office (OO), High Rise (HR), Recreation and Entertainment (RE), and Transit-Oriented Development (TOD) overlays.

The reason for removal of these overlays is usually because either the purpose they were created to serve no longer exists, or because new base zones have been (or will be) adopted, such that the applicable development standards and requirements in the base zone now fulfill the purpose that was previously intended by the overlay. The best example is the elimination of the TOD overlay, which previously applied to areas around the BART station, Milpitas Transit Center, and Great Mall VTA Light Rail station. The TOD overlay applied standards related to density and pedestrian-oriented uses and design, but the areas where the TOD overlay currently applies are now within the new Metro Specific Plan Zones or are part of the Gateway-Main Street Specific Plan, and will soon be rezoned to new transit-oriented base zones as part of the specific plan work.

The draft updated zoning map also includes the application of the existing Freeway Corridor (FC) Overlay to all non-residentially zoned parcels within 300 feet of Interstate 680, Interstate 880, and State Highway 237. The applicability for the FC Overlay is currently included in the Zoning Ordinance text, but the overlay is not officially mapped.

Finally, the existing Mobile Home Park (MHP) overlay is proposed to be replaced with a new Mobile Home Park base zone, since this type of unique residential area is better addressed through base zone standards rather than an overlay applied to the existing single-family residential zone (R1). The allowed uses and development standards from the existing MHP overlay have been carried over to the new draft Mobile Home Park base zone.

Public Outreach
Since the December 18 release of the public review draft, the Planning Department has conducted various outreach efforts for the updated Zoning Ordinance. Staff is offering weekly “virtual office hours” for the zoning update project between January 6 and March 7, 2025, during which interested parties may sign up for one-on- one online appointments with Planning staff to ask questions and/or provide feedback about the draft updated Zoning Ordinance.

A community workshop was held on January 9, 2025, at the Milpitas Community Center. The workshop was simultaneously broadcast online via Zoom, and community members had the choice of attending virtually or in person. Despite widespread announcements and outreach about this workshop, only five members of the community attended in person, and none attended online. Comments from attendees were documented and will be considered when the draft updated Zoning Ordinance is revised in preparation for adoption hearings.

Please refer to the attached community workshop summary (Attachment D) for more detail regarding comments received.

The Zoning Advisory Group (ZAG), comprised of members of several City boards and commissions, held its fifth and final meeting on January 16, 2025. An overview of the draft Zoning Ordinance was provided, along with a detailed summary of how comments from ZAG members throughout the zoning update project have been incorporated into the draft ordinance. Attachment E, the ZAG meeting summary, includes further information about discussion items during the meeting.

A study session with the Planning Commission was held on February 12, 2025. Comments from the Commissioners included support for reducing permit levels for many project types; a request for clarification about whether required parking spaces must be covered (i.e., in a garage), especially for single-family dwellings; questions about how Transportation Demand Management plans will be reviewed and evaluated, and whether objective criteria will be used to measure their effectiveness; and a comment that the proposed requirement for a projection/recess of at least 40 square feet at the primary entrance to a single-family dwelling may not be feasible for smaller single-family lots.

9 The public review period for the draft updated Zoning Ordinance continues through March 7, 2025. Staff is seeking comments from the public, the Planning Commission, and the City Council at the study sessions as well as through the other means provided, including website comment form, email, and virtual office hours.

POLICY ALTERNATIVE(S):

This is an informational item for Council feedback and is one of several sessions for providing Council with the progress of the Comprehensive Zoning Ordinance Update project.

FISCAL IMPACT:

This is an informational item. As such, there is no fiscal impact.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):

This study session does not constitute a “project” within the meaning of Public Resources Code Section 21065 and/or the California Environmental Quality Act (CEQA) Guidelines Section 15060(c)(2), 15262, and/or 15378.

No environmental analysis pursuant to CEQA is required at this time. Appropriate CEQA analysis will occur prior to the formal adoption of proposed Zoning Ordinance amendments.

RECOMMENDATION:

Receive an overview of the Public Review Draft of the full updated Zoning Ordinance (Phase 2 of the Comprehensive Zoning Ordinance Update) and provide comments.

ATTACHMENT(S):
a) Public Review Draft Zoning Ordinance
b) Acronym Sheet for Draft Zoning Ordinance
c) Public Review Draft Zoning Map
d) Community Workshop Summary
e) Zoning Advisory Group Meeting Summary

City of Milpitas

PUBLIC REVIEW DRAFT
December 2024
Prepared by:

Lisa Wise Consulting, Inc.
870 Market Street, Suite 977
San Francisco, CA 94102
Prepared for:

City of Milpitas
455 E. Calaveras Blvd.

Milpitas, CA 95035
Comprehensive
Zoning Ordinance

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Table of Contents
Public Review Draft | Milpitas Comprehensive Zoning Ordinance Update | Page XIII-i Table of Contents
PART A: GENERAL
Chapter A.2 Title and Purpose ............................................................................................... XIII-A.1 A.2.010 Title ........................................................................................................................... XIII-A.1 A.2.020 Authority ................................................................................................................... XIII-A.1 A.2.030 Purpose ..................................................................................................................... XIII-A.1 A.2.040 Applicability ............................................................................................................... XIII-A.2 A.2.050 Relationship to the General Plan............................................................................... XIII-A.3 A.2.060 Zoning Map ............................................................................................................... XIII-A.3 A.2.070 Severability ................................................................................................................ XIII-A.4 Chapter A.4 Rules of Interpretation ....................................................................................... XIII-A.5 A.4.010 Purpose ..................................................................................................................... XIII-A.5 A.4.020 General Interpretation .............................................................................................. XIII-A.5 A.4.030 Interpreting Language and Numbers ........................................................................ XIII-A.7 Chapter A.6 Rules of Measurement ....................................................................................... XIII-A.9 A.6.010 Purpose ..................................................................................................................... XIII-A.9 A.6.020 General Provisions .................................................................................................... XIII-A.9 A.6.030 Measuring Lot Width and Depth ............................................................................... XIII-A.9 A.6.040 Measuring Average Slope and Natural Land Slope ................................................. XIII-A.10 A.6.050 Measuring Distances ............................................................................................... XIII-A.10 A.6.060 Measuring Setbacks ................................................................................................ XIII-A.11 A.6.070 Measuring Floor Area ............................................................................................. XIII-A.11 A.6.080 Determining Floor Area Ratio ................................................................................. XIII-A.12 A.6.090 Measuring Height and Number of Stories .............................................................. XIII-A.12 A.6.100 Measuring Signs ...................................................................................................... XIII-A.14 PART B: ZONE REGULATIONS
Chapter B.2 Zones ................................................................................................................. XIII-B.1 B.2.010 Purpose ..................................................................................................................... XIII-B.1 B.2.020 Zones Established ...................................................................................................... XIII-B.1 B.2.030 Category
Includes All Aspects of the Zone ................................................................ XIII-B.2 B.2.040 Zoning of Annexed Areas .......................................................................................... XIII-B.2

Table of Contents
Page XIII-ii | Milpitas Comprehensive Zoning Ordinance Update | Public Review Draft Chapter B.4 Residential Zones and Standards ........................................................................ XIII-B.4 B.4.010 Purpose ..................................................................................................................... XIII-B.4 B.4.020 Residential Zones Use Regulations ............................................................................ XIII-B.4 B.4.030 Residential Zones Development Standards ............................................................... XIII-B.8 B.4.040 Residential Zones Supplemental Standards ............................................................ XIII-B.11 Chapter B.6 Commercial Zones and Standards ..................................................................... XIII-B.17 B.6.010 Purpose ................................................................................................................... XIII-B.17 B.6.020 Commercial Zones Use Regulations ........................................................................ XIII-B.17 B.6.030 Commercial Zones Development Standards ........................................................... XIII-B.22 B.6.040 Commercial Zones Supplemental Standards ........................................................... XIII-B.23 Chapter B.8 Mixed Use Zones and Standards ....................................................................... XIII-B.24 B.8.010 Purpose ................................................................................................................... XIII-B.24 B.8.020 Mixed Use Zones Use Regulations........................................................................... XIII-B.24 B.8.030 Mixed Use Zones Development Standards .............................................................. XIII-B.29 B.8.040 Mixed Use Zones Supplemental Standards ............................................................. XIII-B.30 Chapter B.10 Industrial Zones and Standards ......................................................................... XIII-B.32 B.10.010 Purpose ................................................................................................................... XIII-B.32 B.10.020 Industrial Zones Use Regulations ............................................................................ XIII-B.32 B.10.030 Industrial Zones Development Standards ............................................................... XIII-B.37 B.10.040 Industrial Zones Supplemental Standards ............................................................... XIII-B.38 Chapter B.12 Metro Specific Plan Zones and Standards .......................................................... XIII-B.44 B.12.010 Purpose ................................................................................................................... XIII-B.44 B.12.020 Metro Specific Plan Zones Use Regulations ............................................................ XIII-B.45 B.12.030 Metro Specific Plan Zones Development Standards ................................................ XIII-B.50 B.12.040 Metro Specific Plan Zones Supplemental Standards ............................................... XIII-B.52 Chapter B.14 Reserved .......................................................................................................... XIII-B.59 Chapter B.16 Milpitas Commercial Specific Plan Area ............................................................ XIII-B.60 B.16.010 In
troduction............................................................................................................. XIII-B.60 B.16.020 Existing Setting ........................................................................................................ XIII-B.64 B.16.030 Land Use Plan .......................................................................................................... XIII-B.71 B.16.040 Infrastructure, Grading and Construction ............................................................... XIII-B.87 B.16.050 Administration ........................................................................................................ XIII-B.91

Table of Contents
Public Review Draft | Milpitas Comprehensive Zoning Ordinance Update | Page XIII-iii Chapter B.18 Other Zones and Standards ............................................................................ XIII-B.106 B.18.010 Purpose ................................................................................................................. XIII-B.106 B.18.020 Other Zones Use Regulations ................................................................................ XIII-B.106 B.18.030 Other Zones Development Standards ................................................................... XIII-B.110 B.18.040 Other Zones Supplemental Standards ................................................................... XIII-B.110 Chapter B.20 Overlay Zones and Standards .......................................................................... XIII-B.111 B.20.010 Purpose ................................................................................................................. XIII-B.111 B.20.020 Freeway Corridor (FC) Overlay Zone ..................................................................... XIII-B.111 B.20.030 Site and Architectural (S) Overlay Zone ................................................................ XIII-B.112 Chapter B.22 “H” Hillside Combining District ....................................................................... XIII-B.113 B.22.010 Findings, Purpose and Intent ................................................................................ XIII-B.113 B.22.020 Establishment and Designation ............................................................................ XIII-B.114 B.22.030 Maximum Allowable Densities and Minimum Lot Sizes ....................................... XIII-B.114 B.22.040 Height Regulations ................................................................................................ XIII-B.115 B.22.050 Yard Requirements ................................................................................................ XIII-B.117 B.22.060 Crestline Zone of Protection .................................................................................. XIII-B.117 B.22.070 Special Provisions for PUD’s in Hillside .................................................................. XIII-B.118 B.22.080 Open Space Easements ......................................................................................... XIII-B.118 B.22.090 Site and Architectural Approval ............................................................................ XIII-B.118 B.22.100 Slope Planting ....................................................................................................... XIII-B.120 B.22.110 Residential Driveways and Parking ....................................................................... XIII-B.120 B.22.120 Non-Residential Off-Street Parking ....................................................................... XIII-B.121 B.22.130 Fencing .................................................................................................................. XIII-B.121 B.22.140 Recreation Courts .................................................................................................. XIII-B.121 B.22.150 Outdoor Lighting ................................................................................................... XIII-B.122 B.22.160 Underfloor Clearance ............................................................................................ XIII-B.122 B.22.170 Maxi
mum Size of Residence, Accessory Structures, and Impervious Surface Coverage ............................................................................................................... XIII-B.122 B.22.180 Grading Requirements .......................................................................................... XIII-B.123

PART C: CITYWIDE STANDARDS
General Development Standards ........................................................................ XIII -C.1 C.2.010 Purpose ...................................................................................................................... XIII -C.1

Table of Contents
Page XIII-iv | Milpitas Comprehensive Zoning Ordinance Update | Public Review Draft C.2.020 Accessory Buildings and Structures ............................................................................ XIII-C.1 C.2.030 Affordable Housing .................................................................................................... XIII-C.3 C.2.040 Fences, Walls, and Hedges ......................................................................................... XIII-C.3 C.2.050 Height Exceptions ....................................................................................................... XIII-C.6 C.2.060 Incentives ................................................................................................................... XIII-C.7 C.2.070 Lighting and Illumination ........................................................................................... XIII-C.9 C.2.080 Objective Design Standards ..................................................................................... XIII-C.12 C.2.090 Open Space .............................................................................................................. XIII-C.12 C.2.100 Outdoor Display and Sales ....................................................................................... XIII-C.12 C.2.110 Performance Standards ............................................................................................ XIII-C.13 C.2.120 Refuse and Recycling Areas ...................................................................................... XIII-C.15 C.2.130 Setbacks and Encroachment into Required Setbacks ............................................... XIII-C.16 C.2.140 Screening Standards................................................................................................. XIII-C.19 C.2.150 Underground Utilities ............................................................................................... XIII-C.21 Landscaping Standards ..................................................................................... XIII-C.22 C.4.010 Purpose .................................................................................................................... XIII -C.22
C.4.020 Applicability .............................................................................................................. XIII-C.22 C.4.
030 Landscape Plan ........................................................................................................ XIII-C.23 C.4.040 Areas to be Landscaped ........................................................................................... XIII-C.24 C.4.050 General Landscaping Standards .............................................................................. XIII-C.26 C.4.060 Tree Preservation and Maintenance ........................................................................ XIII-C.30 Parking and Loading ......................................................................................... XIII-C.32 C.6.010 Purpos
e .................................................................................................................... XIII-C.32 C.6.020 Applicability ..............................................................................................................

XIII-C.32
C.6.030 General Requirements.............................................................................................. XIII-C.33 C.6.040 Types of Vehicle Parking Allowed ............................................................................. XIII-C.33 C.6.050 Number of Parking Spaces Required ........................................................................ XIII-C.34 C.6.060 Parking Reductions ................................................................................................... XIII-C.40 C.6.070 Transportation Demand Management .................................................................... XIII-C.42 C.6.080 Parking Area Development and Design Standards .................................................. XIII-C.46 C.6.090 Electric Vehicle Charging Spaces .............................................................................. XIII-C.49 C.6.100 Bicycle Parking ......................................................................................................... XIII-C.50 C.6.110 Off-Street Loading Requirements ............................................................................. XIII-C.53

Table of Contents
Public Review Draft | Milpitas Comprehensive Zoning Ordinance Update | Page XIII-v Signs ................................................................................................................. XIII-C.56 C.8.010 Purpose .................................................................................................................... XIII-C.56 C.8.020 Applicability .............................................................................................................. XIII-C.57 C.8.
030 Permits and
Administration ..................................................................................... XIII-C.59 C.8.040 General Standards for All Signs ................................................................................ XIII-C.59 C.8.050 Standards for Permanent Signs ................................................................................ XIII-C.71 C.8.060 Sign Design Standards .............................................................................................. XIII-C.85 C.8.070 Standards for Portable Signs and Temporary Signs ................................................. XIII-C.88 C.8.080 Nonconforming Signs ............................................................................................... XIII-C.99 C.8.090 Sign Enforcement ..................................................................................................... XIII-C.99 C.8.100 Severability ............................................................................................................. XIII-C.100 Specific to Uses .............................................................................................. XIII-C.101 C.10.010 Purpose .................................................................................................................. XIII-C.101 C.10.020 Applic
ability............................................................................................................ XIII-C.102 C.10.030 Acce
ssory Dwelling Units and Junior Accessory Dwelling Units ............................. XIII-C.102 C.10.040 Adult-Oriented Businesses ..................................................................................... XIII-C.107 C.10.050 Alcoholic Beverage Sales ........................................................................................ XIII-C.108 C.10.060 Animal Husbandry .................................................................................................. XIII-C.109 C.10.070 Auto Broker ............................................................................................................ XIII-C.109 C.10.080 Cannabis Uses ........................................................................................................ XIII-C.109 C.10.090 Drive-Through Facilities ......................................................................................... XIII-C.115 C.10.100 Eating and Drinking Establishments ...................................................................... XIII-C.116 C.10.110 Emergency Shelters ................................................................................................ XIII-C.120 C.10.120 Farmers’ Markets ................................................................................................... XIII-C.121 C.10.130 Home Occupations ................................................................................................. XIII-C.122 C.10.140 Large Family Child Care and Child Care Centers .................................................... XIII-C.123 C.10.150 Live-Work Units ...................................................................................................... XIII-C.124 C.10.160 Massage Establishments ........................................................................................ XIII-C.126 C.10.170 Mobile Food Vending ............................................................................................. XIII-C.129 C.10.180 Mobile Home Parks ................................................................................................ XIII-C.134 C.10.190 Service Stations and Car Washes ........................................................................... XIII-C.135 C.10.200 Short-Term Rentals ................................................................................................. XIII-C.136 C.10.210 Single-Family Dwelling ........................................................................................... XIII-C.140

Table of Contents
Page XIII-vi | Milpitas Comprehensive Zoning Ordinance Update | Public Review Draft C.10.220 Single Room Occupancy Residences ....................................................................... XIII-C.141 C.10.230 Temporary Uses and Structures ............................................................................. XIII-C.142 C.10.240 Wireless Telecommunication Facilities ................................................................... XIII-C.146 Density Bonus for Affordable Housing Developments ..................................... XIII-C.157 C.12.010 Purpose .................................................................................................................. XIII-C.157 C.12.020 Definitio
ns .............................................................................................................. XIII-C.157 C.12.030 Impleme
ntation ...................................................................................................... XIII-C.157 C.12.040 Types of Incentives Allowed ................................................................................... XIII-C.157 C.12.050 Requirements for Density Bonus Projects .............................................................. XIII-C.158 C.12.060 Development Standards ......................................................................................... XIII-C.159 C.12.070 Processing of Density Bonus Requests ................................................................... XIII-C.159 C.12.080 Density Bonus Agreement ...................................................................................... XIII-C.160 C.12.090 Changes in State Density Bonus Laws .................................................................... XIII-C.161 Reserved ........................................................................................................ XIII-C.162 Condominium Conversions ............................................................................. XIII-C.163 C.16.010 Purpose .................................................................................................................. XIII -C.163
C.16.020 Determining
Allowance of Converting Apartment Units ....................................... XIII-C.163 C.16.030 Development Standards ......................................................................................... XIII-C.164 C.16.040 Equal Housing Opportunities ................................................................................. XIII-C.164 C.16.050 Review Requirements ............................................................................................. XIII-C.164 Nonconforming Buildings, Structures, Uses, and Parcels ................................. XIII-C.166 C.18.010 Pur
pose .................................................................................................................. XIII-C.166 C.18.020 Con
tinuance and Maintenance .............................................................................. XIII-C.166 C.18.030 Nonconforming Uses .............................................................................................. XIII-C.166 C.18.040 Nonconforming Parcels .......................................................................................... XIII-C.168 C.18.050 Nonconforming Buildings and Structures .............................................................. XIII-C.168 C.18.060 Nonconformity with Other Development Standards.............................................. XIII-C.170

PART D: PROCEDURES AND ADMINISTRATION
Chapter D.2 Procedures ......................................................................................................... XIII-D.1 D.2.010 Purpose ..................................................................................................................... XIII-D.1 D.2.020 Authorities and Administration ................................................................................. XIII-D.1 D.2.030 Summary of Review Authorities for Decisions and Appeals ...................................... XIII-D.2

Table of Contents
Public Review Draft | Milpitas Comprehensive Zoning Ordinance Update | Page XIII-vii D.2.040 Common Procedures ................................................................................................. XIII-D.4 Chapter D.4 Permits and Approvals ...................................................................................... XIII-D.16 D.4.010 Purpose ................................................................................................................... XIII-D.16 D.4.020 Site Development Permits ....................................................................................... XIII-D.16 D.4.030 Use Permits ............................................................................................................. XIII-D.23 D.4.040 Temporary Use Permits ........................................................................................... XIII-D.25 D.4.050 Minor Deviations ..................................................................................................... XIII-D.26 D.4.060 Variances ................................................................................................................. XIII-D.27 D.4.070 Sign Permits ............................................................................................................ XIII-D.29 D.4.080 Sign Programs ......................................................................................................... XIII-D.30 D.4.090 Temporary Sign Permits .......................................................................................... XIII-D.32 D.4.100 Home Occupation Permits ...................................................................................... XIII-D.33 D.4.110 Reasonable Accommodation .................................................................................. XIII-D.34 D.4.120 Special Event Permit ................................................................................................ XIII-D.35 D.4.130 Short-Term Rental Permit ........................................................................................ XIII-D.42 Chapter D.6 Zoning Ordinance and Zoning Map Amendments ............................................. XIII-D.43 D.6.010 Purpose ................................................................................................................... XIII-D.43 D.6.020 Applicability ............................................................................................................. XIII-D.43 D.6.030 Application Requirements ....................................................................................... XIII-D.43 D.6.040 Procedures .............................................................................................................. XIII-D.44 D.6.050 Findings ................................................................................................................... XIII-D.44 D.6.060 Expiration of Application and Time Extension ........................................................ XIII-D.45 D.6.070 Effective Date .......................................................................................................... XIII-D.45 Chapter D.8 General Plan Amendments ............................................................................... XIII-D.46 D.8.010 Purpose ................................................................................................................... XIII-D.46 D.8.020 Applicability ............................................................................................................. XIII-D.46 D.8.030 Application Requireme
nts ....................................................................................... XIII-D.46 D.8.040 Procedures .............................................................................................................. XIII-D.46 D.8.050 Findings ................................................................................................................... XIII-D.47 D.8.060 Adoption of General Plan Amendment ................................................................... XIII-D.47 Chapter D.10 Specific Plans .................................................................................................... XIII-D.49 D.10.010 Purpose ................................................................................................................... XIII-D.49 D.10.020 Applicability ............................................................................................................. XIII-D.49

Table of Contents
Page XIII-viii | Milpitas Comprehensive Zoning Ordinance Update | Public Review Draft D.10.030 Application Requirements ....................................................................................... XIII-D.49 D.10.040 Procedures .............................................................................................................. XIII-D.50 D.10.050 Findings ................................................................................................................... XIII-D.50 D.10.060 Adoption of Specific Plan ........................................................................................ XIII-D.51 D.10.070 Implementation and Amendments ......................................................................... XIII-D.51 Chapter D.12 Planned Unit Development............................................................................... XIII-D.52 D.12.010 Purpose ................................................................................................................... XIII-D.52 D.12.020 Applicability ............................................................................................................. XIII-D.52 D.12.030 Application Requirements ....................................................................................... XIII-D.53 D.12.040 Procedures .............................................................................................................. XIII-D.53 D.12.050 Findings ................................................................................................................... XIII-D.53 D.12.060 Planned Unit Development Implementation ........................................................... XIII-D.54 Chapter D.14 Development Agreements ................................................................................ XIII-D.55 D.14.010 Purpose ................................................................................................................... XIII-D.55 D.14.020 Applicability ............................................................................................................. XIII-D.55 D.14.030 Application Requirements ....................................................................................... XIII-D.55 D.14.040 Procedures .............................................................................................................. XIII-D.56 D.14.050 Findings ................................................................................................................... XIII-D.56 D.14.060 Execution and Recordation ..................................................................................... XIII-D.57 D.14.070 Annual Review ......................................................................................................... XIII-D.57 D.14.080 Amendment, Modification, or Termination of an Approved Development Agreement .............................................................................................................. XIII-D.58 D.14.090 Effect of Development Agreement .......................................................................... XIII-D.58 Chapter D.16 Reserved .......................................................................................................... XIII-D.59 Chapter D.18 Enforcement and Penalty ................................................................................. XIII-D.60 D.18.010 Purpose ................................................................................................................... XIII-D.60 D.18.020 Enforcement ............................................................................................................ XIII-D.60 D.18.030 Determination of Violation .....................................................................................

XIII-D.60
D.18.040 Penalty .................................................................................................................... XIII-D.61 D.18.050 Declaration of Public Nuisance ............................................................................... XIII-D.61 D.18.060 Order to Stop Work ................................................................................................. XIII-D.61 D.18.070 Modification, Revocation, and Suspension ............................................................. XIII-D.62 D.18.080 Abatement Procedure ............................................................................................. XIII-D.63

Table of Contents
Public Review Draft | Milpitas Comprehensive Zoning Ordinance Update | Page XIII-ix D.18.090 Cost Recovery .......................................................................................................... XIII-D.65 D.18.100 Lien Procedure......................................................................................................... XIII-D.66 D.18.110 Interest on Liens ...................................................................................................... XIII-D.68 D.18.120 Miscellaneous ......................................................................................................... XIII-D.68 D.18.130 Remedies Cumulative .............................................................................................. XIII-D.68

Part E: Definitions
Chapter E.2 Definitions of Terms .................................................................................................. XIII-E.1 Chapter E.4 Definitions of Uses .................................................................................................. XIII-E.19 Chapter E.6 Definitions of Sign Terms ........................................................................................ XIII-E.36

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City of Milpitas
PART A: GENERAL
Public Review Draft

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Part A: General

Public Review Draft | Milpitas Comprehensive Zoning Ordinance Update | Page XIII-A.i

Part A - Table of Contents
Chapter A.2 Title and Purpose ........................................................................................................... 1 A.2.010 Title ......................................................................................................................................... 1 A.2.020 Authority ................................................................................................................................ 1 A.2.030 Purpose ................................................................................................................................... 1 A.2.040 Applicability ............................................................................................................................ 2 A.2.050 Relationship to the General Plan ............................................................................................ 3 A.2.060 Zoning Map ............................................................................................................................ 3 A.2.070 Severability ............................................................................................................................. 4 Chapter A.4 Rules of Interpretation ................................................................................................... 5 A.4.010 Purpose ................................................................................................................................... 5 A.4.020 General Interpretation ........................................................................................................... 5 A.4.030 Interpreting Language and Numbers ..................................................................................... 7 Chapter A.6 Rules of Measurement ................................................................................................... 9 A.6.010 Purpose ................................................................................................................................... 9 A.6.020 General Provisions .................................................................................................................. 9 A.6.030 Measuring Lot Width and Depth ............................................................................................ 9 A.6.040 Measuring Average Slope and Natural Land Slope .............................................................. 10 A.6.050 Measuring Distances ............................................................................................................ 10 A.6.060 Measuring Setbacks ............................................................................................................. 11 A.6.070 Measuring Floor Area ........................................................................................................... 11 A.6.080 Determining Floor Area Ratio .............................................................................................. 12 A.6.090 Measuring Height and Number of Stories ............................................................................ 12 A.6.100 Measuring Signs ................................................................................................................... 14