June 3, 2025 Milpitas City Council Agenda Page 1
JOINT MEETING OF THE MILPITAS
CITY COUNCIL AND HOUSING AUTHORITY
AGENDA
TUESDAY, JUNE 3, 2025
CITY COUNCIL CHAMBER, 455 E. CALAVERAS BLVD, MILPITAS, CA 7:00 PM (PUBLIC BUSINESS)
For assistance in the following languages, you may call:
Đối với Việt Nam, gọi 408-586-2400
Para sa Tagalog, tumawag sa 408-586-3051
Para español, llame 408-586-3072
* To access written translation during the meeting, scan the QR Code.
The City Council meeting is held in the City Council Chamber at City Hall, 455 E. Calaveras Blvd., Milpitas and via teleconference/Zoom webinar.
You may watch the Council meeting without providing public comment by accessing it via links here.
Meeting shall be livestreamed - Go to:
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YouTube: https://www.milpitas.gov/youtube
Web Streaming: https://www.milpitas.gov/webstreaming
PUBLIC COMMENT INSTRUCTIONS
Oral public comments may only be provided live during the City Council meeting in person, unless the City Council approves remote public comment. All comments provided shall be limited to three minutes or less as determined by the Mayor. All members of the public will be limited to one comment per agenda item, and one comment for non-agenda items. Members of the public may submit written comments by email to [email protected]
The meeting will be streamed via Zoom for viewing purposes only unless the City Council approves remote public comment. To watch via Zoom, please register at:
https://ci-milpitas-ca-gov.zoom.us/webinar/register/WN_gxt24k0tQuW2562osIuiIw NOTE: If a member of the public wishes to share any presentation materials for Council consideration, they must be submitted to the Clerk’s Office by email to [email protected] by 12:00 p.m. on the day of the meeting. No presentations will be accepted in person in the Council Chambers.
MILPITAS CITY COUNCIL CODE OF CONDUCT
•Be respectful and courteous (words, tone, and body language). •Model civility.
•Avoid surprises.
•Praise publicly and criticize privately.
•Focus on the issue, not the person.
•Refrain from using electronic devices while on the Council dais. •Disclose conflicts of interest and affiliations related to agenda items. •Separate governing from campaigning.
•The Council speaks with one voice after making policy on issues. •Respect the line between policy and administration.
•Council will hold one another accountable to comply with this Code of Conduct.
June 3, 2025 Milpitas City Council Agenda Page 2
CALL MEETING TO ORDER by Mayor and ROLL CALL by City Clerk (7:00 PM) AB 2449
1. Consider Councilmember Evelyn Chua’s Request to Appear Remotely Pursuant to AB 2449 and Authorize the Council to Accept Public Comments Remotely at the June 3, 2025, Meeting of the Milpitas City Council (Staff Contact: Christopher Creech, Acting City Attorney, 408-586-3040; and Suzanne Guzzetta, City Clerk, 408-586-3001)
Recommendation: Receive disclosure from Councilmember Chua regarding the nature of the emergency or just cause circumstances. Vote on a motion as to whether to allow Councilmember Chua to appear remotely pursuant to AB2449 and to allow remote public comment at the June 3, 2025 meeting of the Milpitas City Council.
PLEDGE OF ALLEGIANCE
INVOCATION (Mayor Montano)
PUBLIC FORUM (7:05 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 (7:10 PM)
Consent calendar items are considered to be routine and will be considered for adoption by one motion. There will be no separate discussion of these items unless a City Councilmember, member of the audience or staff requests the Council to remove an item from (or be added to) the consent calendar. Any person desiring to speak on any item on the consent calendar should ask to have that item removed from the consent calendar.
C2. Receive City Council Calendar of Meetings (Staff Contact: Suzanne Guzzetta, City Clerk, 408- 586-3001)
Recommendation: Receive City Council Calendar of Meetings for June 2025.
C3. Approve City Council Meeting Minutes (Staff Contact: Suzanne Guzzetta, City Clerk, 408-586- 3001)
Recommendation: Approve City Council Meeting minutes of May 20, 2025.
C4. Receive the Preview List of Anticipated Items for the Next Regular City Council Meeting (Staff Contact: Suzanne Guzzetta, City Clerk, 408-586-3001)
Recommendation: Receive the list of anticipated agenda items for the next regular City Council meeting.
C5. Receive and Review the List of Agenda Items Requested by City Councilmembers (Staff Contact: Suzanne Guzzetta, City Clerk, 408-586-3001)
June 3, 2025 Milpitas City Council Agenda Page 3
Recommendation: Receive the list of items that have been requested by City Councilmembers and received consensus in previous meetings to date.
C6. Approve Accounts Receivable Write-Offs for the Fiscal Year Ending June 30, 2025 (Staff Contact: Luz Cofresí-Howe, Finance Director, 408-586-3111) Recommendation: Approve accounts receivable write-offs for the fiscal year ending June 30, 2025.
C7. Adopt a Resolution Expressing the City Commitment to Achieving Compliance with the Metropolitan Transportation Commission (MTC) Transit-Oriented Communities (TOC) Policy and Accept $400,000 in MTC Grant Funding (Staff Contact: Jay Lee, Planning Director, 408-586- 3077)
Recommendation: Adopt a resolution expressing the City commitment to achieving compliance with the Metropolitan Transportation Commission (MTC) Transit-Oriented Communities (TOC) Policy as a condition for MTC to allocate regional discretionary funds to support increased allowable floor area ratio for the implementation of a parking and transportation demand management policy for TOC areas.
C8. Adopt a Resolution to Accept the Water Valves Project as Part of the Dempsey Road Water Line Replacement, Project Nos. 7110 and 7118, and Authorize the City Engineer to File a Notice of Completion and Issue a Notice of Final Acceptance After the One-Year Warranty (Staff:
Christian Di Renzo, Public Works Director, 408-586-2602; and Michael Silveira, City Engineer, 408-586-3303)
Recommendation: (1) Adopt a resolution to accept the Water Valves Project as part of the Dempsey Road Water Line Replacement, Project Nos. 7110 and 7118; and (2) Authorize the City Engineer to file a Notice of Completion and issue a Notice of Final Acceptance after the one-year warranty.
C9. Adopt a Resolution to Accept the 2024 Annual Street Pavement Restriping Project, CIP No. 4295 and Authorize the City Engineer to File a Notice of Completion and Issue a Notice of Final Acceptance after the One-Year Warranty (Staff Contact: Christian Di Renzo, Public Works Director, 408-586-2602; and Michael Silveira, City Engineer, 408-586-3303).
Recommendation: Adopt a resolution to grant acceptance of 2024 Annual Street Pavement Restriping Project, CIP No. 4295, and authorize the City Engineer to file a Notice of Completion and issue a Notice of Final Acceptance after the one-year warranty.
C10. Authorize the City Manager to Amend Agreements with BrightView Landscape Services, Inc. for Park and Facilities Landscaping Services (Staff Contact: Luz Cofresí-Howe, Finance Director, 408-586-3111; and Christian Di Renzo, Public Works Director, 408-586-2602) Recommendation: Authorize the City Manager, or designee, to amend the Agreements with Brightview Landscape Services, Inc. for Park and Facilities Landscaping Services to (1) extend the terms of the Agreements through September 30, 2026, (2) increase vendor compensation by 2.5%, and (3) add $80,000 to the Facilities Landscaping Agreement for a revised maximum compensation of $661,300 to cover the price increase, extended term, and as-required repairs, subject to the appropriation of funds.
C11. Receive an Update on the Water Main Repairs on Curtis Avenue and Yosemite Drive and Determine that the Condition Constitutes an Emergency (Staff Contact: Christian Di Renzo, Public Works Director, 408-586-2602)
Recommendation: (1) Receive an update on the Water Main Repairs on Curtis Avenue and Yosemite Drive; and (2) Determine by a four-fifths vote that the condition constitutes an emergency.
June 3, 2025 Milpitas City Council Agenda Page 4
PUBLIC HEARINGS (7:15 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.
12. Conduct a Public Hearing and Adopt a Resolution Confirming the Assessment and Ordering the Levy for the Landscaping and Lighting Maintenance Assessment District No. 95-1 - McCarthy Ranch in Fiscal Year 2025-26 (Staff Contact: Christian Di Renzo, Public Works Director, 408-586- 2602; and Michael Silveira, City Engineer, 408-586-3303) Recommendation: (1) Conduct a public hearing; and (2) Adopt a resolution confirming the assessment and ordering the levy for Landscaping and Lighting Maintenance Assessment District No. 95-1 McCarthy Ranch in Fiscal Year 2025-26.
13. Conduct a Public Hearing and Adopt a Resolution Confirming the Assessment and Ordering the Levy for the Landscaping and Lighting Maintenance Assessment District No. 98-1, Sinclair Horizon in Fiscal Year 2025-26 (Staff Contact: Christian Di Renzo, Public Works Director, 408- 586-2602; and Michael Silveira, City Engineer, 408-586-3303) Recommendation: (1) Conduct a public hearing; and (2) Adopt a resolution confirming the assessment and ordering the levy for Landscaping and Lighting Maintenance Assessment District No. 98-1, Sinclair Horizon in Fiscal Year 2025-26.
14. Conduct a Public Hearing and Adopt Resolutions to Approve the Fiscal Year 2025-26 Proposed Operating Budget for the City of Milpitas and the Milpitas Housing Authority, Approve the Fiscal Year 2025-26 Gann Appropriations Limit, Authorize Various Financial Actions, Fiscal Policies and Budget Guidelines, and Amend the Classification Plan for Alignment with the FY 2025-26 Proposed Operating Budget, the Minimum Wage Increase, and Salary Schedules Consistent with Previous Council Action (Staff Contact: Luz Cofresí-Howe, Finance Director, 408-586-3111) Recommendation: (1) Conduct a public hearing; and (2) Adopt the following Resolutions: (a) Joint Resolution of the City Council and Milpitas Housing Authority to approve the Fiscal Year 2025-26 Proposed Operating Budget for the City of Milpitas and the Milpitas Housing Authority, approve the Fiscal Year 2025-26 Gann Appropriations Limit, Fiscal Policies and Budget Guidelines and authorizing various financial actions by the City Manager, including Approving and Authorizing the Execution of Various Contracts and Payments over $100,000; (b) Amending Resolution No. 1626, the Classification Plan, to authorize additional positions and amend budgeted allocated positions; (c) Amending Resolution No. 1626, the Classification Plan, to adjust the hourly rate ranges for classifications due to a minimum wage increase pursuant to Ordinance No. 292; (d) Amending Resolution No. 1626, the Classification Plan of Unrepresented Management Employees and Authorizing Fringe Benefits; (e) Amending Resolution No. 1626, the Classification Plan, to adjust the Salary Schedules for various classifications to align with the current memorandums of understandings (MOUs).
15. Conduct a Public Hearing and Adopt a Resolution Approving the Proposed 2026-2030 Capital Improvement Program (Staff Contact: Christian Di Renzo, Public Works Director, 408-586-2602; and Michael Silveira, City Engineer, 408-586-3303)
Recommendation: (1) Conduct a public hearing and adopt a resolution approving the 2026-2030 Capital Improvement Program; and (2) Approve a budget appropriation of $50,000 from the Midtown Park Fund to fund Amendment No. 1 to the Professional Service Agreement with Padres Associates, Inc. for Phase 2 Environmental Site Assessment at 230 N. Main Street.
June 3, 2025 Milpitas City Council Agenda Page 5
16. Conduct a Public Hearing to Adopt the 2025-2030 Consolidated Plan, Adopt the 2025-2026 Annual Action Plan, and Approve the Community Development Block Grant Allocations for 2025-2026 (Staff Contact: Sarah Balcha, Acting Housing Official, 408-586-3222) Recommendation: (1) Conduct the public hearing; (2) Adopt the 2025-2030 Consolidated Plan; (3) Adopt the 2025-2026 Annual Action Plan with recommended allocation amounts; (4) Authorize the City Manager, or designee, to make any necessary changes to the 2025-2030 Consolidated Plan and 2025- 2026 Annual Action Plan as needed to comply with CDBG submission guidelines and execute necessary forms and certifications for submission; and (5) Authorize the City Manager, or designee, to execute CDBG agreements with the approved subrecipients, and amend the CDBG agreements as needed to comply with CDBG guidelines.
ANNOUNCEMENTS AND FUTURE AGENDA ITEMS (9:30 PM)
Members of the City Council or City Manager may make brief announcements at this time. Members of the City Council may also suggest future agenda items. For future agenda items, the City Council shall not debate the topic or engage in discussion but shall simply state a “yes” or “no” as whether to move the item forward. If a majority of the City Council agrees to move the item forward, the City Manager shall place the item on a future agenda.
ADJOURNMENT (9:35 PM)
KNOW YOUR RIGHTS UNDER THE OPEN GOVERNMENT ORDINANCE
Government’s duty is to serve the public, reaching its decisions in full view of the public. Commissions and other City agencies exist to conduct the people’s business. This ordinance assures that deliberations are conducted before the people and City operations are open to the people’s review. For more information on your rights under the Open Government Ordinance or to report a violation, contact the City Attorney’s office at Milpitas City Hall, 455 E. Calaveras Blvd., Milpitas, CA 95035 e-mail: [email protected] / Phone: 408-586-3040
The Open Government Ordinance is codified in the Milpitas Municipal Code as Title I Chapter 310 and is available online at the City’s website www.milpitas.gov by selecting the Milpitas Municipal Code link.
Materials related to an item on this agenda submitted to the City Council after initial distribution of the agenda packet are available for public inspection at the City Clerk’s office at Milpitas City Hall, 3rd floor 455 E. Calaveras Blvd., Milpitas and on City website. City Council agendas and related materials can be viewed online: www.milpitas.gov/government/council/agenda_minutes.asp (select meeting date)
APPLY TO SERVE ON A CITY COMMISSION
Commission application forms are available online at www.milpitas.gov or at Milpitas City Hall.
Contact the City Clerk’s Office at 408-586-3001 for more information.
If you need assistance, per the Americans with Disabilities Act, for any City of Milpitas public meeting, please call the City Clerk at 408-586-3001 or send an e-mail to [email protected] prior to the meeting. You may request a larger font agenda.
Milpitas City Council Calendar
June 2025
Sunday Monday Tuesday Wednesday Thursday Friday Saturday 1 2
7:00 PM-Parks, Recreation & Cultural
Resources Commission (EC)
3 6:00 PM-Closed Session
7:00 PM-City Council
4 2:00 PM-Santa Clara VTA Monthly
Briefing - Northeast Group (CM)
(Santa Clara)
5:30 PM-Veterans Commission (GB)
7:00 PM-Community Housing
Commission (EC)
5 9:00 AM- Main St. Sense of Place
Plan Stakeholder Workshop (MCC)
12:00 PM-Santa Clara County Library
JPA Board Meeting (CM) (Campbell,
CA)
5:30 PM-Milpitas Chamber of
Commerce Board (GB)
5:30 PM-Santa Clara VTA Board of
Directors (CM)
6 7
8 9
4:30 PM-Economic Development and
Trade Commission (WL)
10 11
4:30 PM-City Council Finance
Subcommittee (CM/EC)
7:00 PM-Silicon Valley Clean Energy
Board of Directors (GB) (Cupertino)
7:00 PM-Planning Commission
12 4:00 PM-Treatment Plant Advisory
Committee (CM) (San Jose)
4:00 PM-Santa Clara VTA Policy
Advisory Committee (EC)
6:00 PM-Youth Advisory Commission
(HL)
7:00 PM-Cities Assoc of SCC (CM)
13 14
15 16
7:00 PM-Science, Technology, and
Innovation Commission (WL)
17 5:00 PM-Closed Session
7:00 PM-City Council
18 6:00 PM-Energy and Environmental
Sustainability Commission (EC)
19 20
10:00 AM-ABAG General Assembly &
Conference (HL) (Bay Area Metro
Center (375 Beale St, San Francisco,
CA 94105, United States))
21 22 23 24
1:30 PM-Senior Advisory Commission
(HL)
25 5:30 PM-Cities Assoc. of SCC -
Recycling and Waste Reduction
Commission (CM)
7:00 PM-Planning Commission
26 5:30 PM-State of the City
27 28
29 30
May 2025
S M T W T F S
1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31
July 2025
S M T W T F S
1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30 31
May 20, 2025 Milpitas City Council Minutes Page 1
REGULAR MEETING OF THE MILPITAS
CITY COUNCIL
MINUTES
TUESDAY, MAY 20, 2025
The City Council of the City of Milpitas convened in a Regular Meeting of the Milpitas City Council on May 20, 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 Vice Mayor Barbadillo called the Regular City Council meeting to order at 7:06 PM. Roll Call was taken by City Clerk Guzzetta.
PRESENT: Vice Mayor Barbadillo, Councilmember Chua, Councilmember Lam, Councilmember Lien ABSENT: Mayor Montano
PLEDGE OF ALLEGIANCE
The City Council led the pledge of allegiance.
INVOCATION
Councilmember Lien provided the invocation
PRESENTATIONS
Vice Mayor Barbadillo, joined by the City Council, presented proclamations in recognition of Asian American, Native Hawaiian, and Pacific Islander Heritage Month, Public Works Week, and National Police Week. The City Council also recognized city employees for 5, 10, 15, 20, and 25 years of service.
PUBLIC FORUM
There were the following public speakers:
1. Voltaire Montemayor
2. Henry Soo
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 (Absent: Montano). 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 (Absent: Montano).
READING OF THE CITY COUNCIL CODE OF CONDUCT
Councilmember Lam read the City Council Code of Conduct.
APPROVAL OF AGENDA
After discussion, motion: to approve the agenda.
May 20, 2025 Milpitas City Council Minutes Page 2
Motion/Second: Councilmember Chua / Councilmember Lien
Motion carried by the following:
AYES: Vice Mayor Barbadillo, Councilmember Chua, Councilmember Lam, Councilmember Lien NOES: None
ABSENT: Mayor Montano
CONSENT CALENDAR
There were no public speakers.
After discussion, motion: to approve the Consent Calendar.
Motion/Second: Councilmember Chua / Councilmember Lien
Motion carried by the following:
AYES: Vice Mayor Barbadillo, Councilmember Chua, Councilmember Lam, Councilmember Lien NOES: None
ABSENT: Mayor Montano
1. Receive City Council Calendar of Meetings (Staff Contact: Suzanne Guzzetta, City Clerk, 408- 586-3001)
Received City Council Calendar of Meetings for May and June 2025.
2. Approve City Council Meeting Minutes (Staff Contact: Suzanne Guzzetta, City Clerk, 408-586- 3001)
Approved City Council Meeting minutes of May 6 and 13, 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. Confirm Milpitas Unified School District Appointment to the Economic Development and Trade Commission (Staff Contact: Suzanne Guzzetta, City Clerk, 408-586-3001) Received and confirmed the Milpitas Unified School District appointment of Chris Norwood to the Economic Development and Trade Commission.
5. Veterans Commission Term Realignment (Contact: Suzanne Guzzetta, City Clerk, 408-586-3001) Approved an update to the bylaws addendum to (1) Approve a staggered term end date structure for the Veterans Commission to promote continuity of service and leadership; and (2) Adjusted the Veterans Commission’s term expiration dates from February to March, aligning with a proposed quarterly commission recruitment cycle.
6. Approve an Amendment to the Professional Services Agreement with TDG Engineering, Inc., for the Milpitas Gateway-Main Street Sense of Place Plan (Staff Contact: Luz Cofresí-Howe, Finance Director, 408-586-3111; and Jay Lee, Planning Director, 408-586-3077) Approved and authorized the City Manager, or designee, to execute an amendment to the Professional Services Agreement with TDG Engineering, Inc., in the amount of $71,138 with additional authority to approve changes of up to 10% as required to complete the work, for a total not-to-exceed amount of $78,250.
May 20, 2025 Milpitas City Council Minutes Page 3
7. Authorize the City Manager, or Designee, to Execute a Five-Year Agreement with PSI Water Technologies, Inc. for Maintenance and Related Services of the City Microclor On-Site Hypochlorite Generation Systems (Staff Contact: Luz Cofresí-Howe, Finance Director, 408-586- 3111; and Christian Di Renzo, Public Works Director, 408-586-2602) Authorized the City Manager, or designee, to execute a five-year agreement with PSI Water Technologies, Inc. for maintenance and related services of the City Microclor On-Site Hypochlorite Generation Systems in an amount not-to-exceed $200,000, subject to the annual appropriation of funds.
8. Waive the Second Reading and Adopt Ordinance No. 317 to Adopt by Reference the Mapping of Fire Hazard Severity Zones as Issued by the California Department of Forestry and Fire Protection (Staff Contact: Jason Schoonover, Fire Chief, 408-586-2811; and Arthur Belton, Deputy Fire Chief/Fire Marshal, 408-586-3384)
(1) Waived the second reading; and (2) Adopted Ordinance No. 317 to adopt by reference the mapping of fire hazard severity zones, as issued by the California Department of Forestry and Fire Protection.
9. Adopt a Resolution Authorizing an Application to the Home Investment Partnerships Program (HOME) (Staff Contact: Sarah Balcha, Acting Housing Official, 408-586-3268) (1) Adopted Resolution No. 9417 authorizing an application to the HOME Program; and (2) Authorized the City Manager, or designee, to execute a standard agreement, any amendments thereto, and any related documents necessary to participate in the HOME Program.
10. Adopt a Resolution to Accept the Completed Public Improvements for the Chick-fil-A Calaveras & Hillview #04483 Project, Approve a Reduction of the Faithful Performance Bond for the Project, and Authorize the City Engineer to Release the Remaining Portion of the Bond after the One-Year Warranty Period (Staff Contact: Christian Di Renzo, Public Works Director, 408-586- 2602; and Michael Silveira, City Engineer, 408-586-3303) (1) Adopted Resolution No. 9418 to accept the completed public improvements for the Chick-fil-A Calaveras and Hillview #04483 Project, (2) Approved a reduction of $47,500 in the faithful performance bond; and (3) Authorized the City Engineer to release the remaining portion of the bond after the one- year warranty period without further City Council action, provided all required warranty work has been completed to the satisfaction of the City Engineer.
11. Receive an Update on the Completed Security Improvements at the McCarthy Ranch Sewer Lift Station (Main Lift) and Determine that the Condition No Longer Constitutes an Emergency (Staff Contact: Christian Di Renzo, Public Works Director, 408-586-2602) (1) Received an update on the completed security improvements at the McCarthy Ranch Sewer Lift Station; and (2) Determined by a four-fifths vote that the condition no longer constitutes an emergency and terminated the emergency action.
12. Receive an Update on the Water Main Repairs on Curtis Avenue and Yosemite Drive and Determine that the Condition Constitutes an Emergency (Staff Contact: Christian Di Renzo, Public Works Director, 408-586-2602)
(1) Received an update on the Water Main Repairs on Curtis Avenue and Yosemite Drive; and (2) Determined by a four-fifths vote that the condition constitutes an emergency.
May 20, 2025 Milpitas City Council Minutes Page 4
PUBLIC HEARINGS
13. Adopt a Resolution to Deny a Minor Site Development Permit and Zoning Variance for a Covered Deck in the Side Yard Setback at 860 Evans Road (Staff Contact: Jay Lee, Planning Director, 408-586-3077)
Interim City Manager Santana introduced the item. Associate Planner Baez presented the report.
The applicants presented their case, stating that the property had been subdivided before current zoning rules were in place. They argued that the proposed deck would not obstruct views or negatively impact neighbors. The applicants expressed that other suggested alternatives would not meet their needs for daily use and enjoyment of their property.
Vice Mayor Barbadillo opened the public hearing.
There were the following public speakers:
1. Voltaire Montemayor
Vice Mayor Barbadillo closed the public hearing.
Council members discussed the application, asking questions about setback requirements, alternatives, and potential impacts. There was debate about balancing property owners' desires with zoning regulations and hillside preservation goals.
The applicant provided remarks in response to council discussion.
After discussion, motion: to Consider the project to be categorically exempt from environmental review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Sections 15303(a) (New Construction or Conversion of Small Structures) and Section 15305 (Minor Alterations in Land Use Limitations); and Adopt Resolution No. 9419 denying the recommendation of the Planning Commission to approve Minor Site Development Permit No. MS24-0257 and Zoning Variance No. VA25-0001 for the property located at 860 Evans Road.
Motion/Second: Councilmember Chua / Councilmember Lam
Motion carried by the following:
AYES: Vice Mayor Barbadillo, Councilmember Chua, Councilmember Lam NOES: Councilmember Lien
ABSENT: Mayor Montano
COMMUNITY SERVICES AND SUSTAINABLE INFRASTRUCTURE
14. Consider Approval of Hall Park Court Priority Use and Program Plan (Staff Contact: Renée Lorentzen, Director of Recreation and Community Services, 408-586-3409) Interim City Manager Santana introduced the item and Recreation and Community Services Director Lorentzen presented the report.
There were the following public speakers:
1. Van Leong
2. Prashanth Kumar
3. Sujee Manayan
4. Melissa Perreira
May 20, 2025 Milpitas City Council Minutes Page 5
5. Malia Toy
6. K.S.
7. Joon Viswanathan
8. Ben Zang
9. Vikas S
10. Henry Soo
11. Stephen Balsbaugh
12. Voltaire Montemayor
13. Gino Ralapagos
14. Kimberly
Councilmembers engaged in a detailed discussion regarding the proposal to convert tennis courts to pickleball courts at Hall Park. Several concerns were raised, including noise mitigation, parking limitations, and the potential for finding alternative locations for pickleball courts.
Councilmember Lien emphasized the importance of mutual respect between pickleball players and neighbors, urging players to adhere to court hours and parking guidelines. She reminded players to maintain neighborly conduct by respecting the peace and quiet of the nearby residents.
Councilmember Lam expressed the necessity of finding a balance between accommodating the popular sport of pickleball and addressing the issues of noise and increased traffic faced by residents living close to the park. He suggested exploring the possibility of establishing indoor pickleball courts as a solution.
Councilmember Chua raised the idea of conducting a study on Dixon Landing Park to assess its potential as a permanent venue for pickleball, thereby offering the sport a more suitable and dedicated home.
Additionally, the council discussed the need for improved signage and parking solutions, such as tandem parking and emergency vehicle access, to alleviate some of the traffic-related concerns.
Councilmember Lam made a motion: to approve all staff recommendations related to the Hall Park pickleball item—such as additional sound damping panels, parking improvements, court queuing systems, and safety fence adjustments—but specifically to not make the six pickleball courts permanent. He expressed a preference to continue with the current portable net setup to maintain flexibility while implementing mitigation efforts and monitoring conditions further.
Assistant City Manager Cano sought clarification and confirmed that the intent was to stripe half of the court areas for pickleball courts striped and to use portable nets (i.e., no permanent net installation) while proceeding with the proposed mitigation measures.
City Attorney Christopher Creech restated the motion to approve staff to move forward with the mitigation measures specified in the staff report (including noise reduction and parking improvements), with the addition of signage improvements; Direct staff to bring forward in the Capital Improvement Program budget both the $100,000 originally proposed for the Hall Park improvements and additional funding for further study of the longer-term options, including possibly permanent pickleball courts and alternative locations such as indoor and outdoor sites.
Councilmember Chua seconded the motion, including the amendments related to signage and further study.
After discussion, motion: to approve staff to move forward with the mitigation measures specified in the
May 20, 2025 Milpitas City Council Minutes Page 6
staff report (including noise reduction and parking improvements), with the addition of signage improvements; Direct staff to bring forward in the Capital Improvement Program budget both the $100,000 originally proposed for the Hall Park improvements and additional funding for further study of the longer-term options
Motion/Second: Councilmember Lam / Councilmember Chua
Motion carried by the following:
AYES: Vice Mayor Barbadillo, Councilmember Chua, Councilmember Lam, Councilmember Lien NOES: None
ABSENT: Mayor Montano
LEADERSHIP AND SUPPORT SERVICES
15. Review the List of New Workplan Item Requests from Individual Councilmembers and Provide Direction to Staff Through the Council-Approved Prioritization Process (Staff Contact: Matt Cano, Assistant City Manager, 408-586-3012)
Interim City Manager Santana introduced the item and Assistant City Manager Cano presented the report. Two new items were up for prioritization:
CC01 - Review of the bingo ordinance. Upon a call for consensus to move the item forward, it failed to pass (Vote: 1-3-1. Noes: Chua, Lam, Lien; Absent: Montano).
CC02 - Consider support for a policy or program regarding fentanyl. Upon a call for consensus to move the item forward, there was unanimous support (Vote: 4-0-1. Absent: Montano).
There were the following public speakers.
1. Voltaire Montemayor
ANNOUNCEMENTS AND FUTURE AGENDA ITEMS
There were no announcements.
ADJOURNMENT
Vice Mayor Barbadillo adjourned the meeting at 10:29 PM.
Draft meeting minutes submitted by City Clerk, Suzanne Guzzetta
TENTATIVE CITY COUNCIL AGENDA ITEM LIST
as of 5/28/2025
June 17, 2025 – Regular Meeting (7:00 PM); Closed Session (4:30 PM)
CLOSED SESSION
INVOCATION (Mayor Montano)
PRESENTATION
- Parks and Recreation Month (proclamation)
CONSENT CALENDAR
1. Receive City Council calendar for June, July and August 2025 (City Clerk)
2. Approve City Council meeting minutes of June 3, 2025 (City Clerk)
3. Preview list of items for August 12, 2025 (City Clerk)
4. Councilmember Request List (City Clerk)
5. Commission Appointments (City Clerk)
6. Summer Recess CMO Authority (City Manager)
7. City Attorney Salary (City Manager)
8. Commercial Lease (Economic Development)
9. 3FQ25 Financial Position (Finance)
10. Housekeys Amendment (Housing)
11. Report on Bids for Land Management System (Information Technology)
12. Amendment to Ascent Contract for Gateway Plan (Planning)
13. Stratford School – Improvement Agreement (Public Works / Engineering)
14. ARPA Park Rehabilitation Construction Final Acceptance (Public Works / Engineering)
15. Acceptance of SVCE EV Grants (Public Works)
16. Enterprise Lease Agreement (Public Works)
17. Water Supply Amendment with BAWSCA (Public Works)
18. Emergency Water Main Repairs Update (Public Works)
PUBLIC HEARINGS
19. Citywide Fees (Finance)
20. Weed Abatement (Fire)
21. Sewer System Management Plan Update (Public Works)
COMMUNITY DEVELOPMENT
22. Milpitas SMART Update (Planning)
COMMUNITY SERVICES
23. Tango Park Conceptual Presentation
LEADERSHIP AND SUPPORT SERVICES
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:
ACTIVE ITEMS
Request
No. Topic Submitted by:
Date
Requested
STATUS and/or DATE scheduled on City
Council meeting agenda:
1 Reinstate the posting of the colors by Boy Scouts
at City Council Meetings Chua 4/15/2025
An update on this item will be included in the
next quarterly prioritization update.
2 Revise City Council Code of Conduct language
regarding the use of electronic devices. Lam 4/1/2025
An update on this item will be included in the
next quarterly prioritization update.
3 Develop a project management informational
memo. Barbadillo 4/1/2025
An update on this item will be included in the
next quarterly prioritization update.
4 Create a Milpitas Community Concert Choir with
city support for marketing and rehearsal space. Chua 4/1/2025 An update on this item will be included in the
next quarterly prioritization update.
5 Look into adding an entertainment zone to Main
Street. Montano 3/4/2025
An update on this item will be included in the
next quarterly prioritization update.
6 Staff provide a detailed analysis of overtime
expenditures by department. Barbadillo 3/4/2025
An update on this item will be included in the
next quarterly prioritization update.
7 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 will be included in the
next quarterly prioritization update.
8 Bring back a discussion regarding fentanyl-related
issues Barbadillo 2/18/2025
An update on this item will be included in the
next quarterly prioritization update.
9 Feasibility study regarding a police satellite office. Montano 2/18/2025 An update on this item will be included in the
next quarterly prioritization update.
10 Staff organize a job fair for City job openings Chua 11/19/2024 An update on this item will be included in the
next quarterly prioritization update.
11 Bring back a study or analysis of the permit
process Chua 11/19/2024
An update on this item will be included in the
next quarterly prioritization update.
12 Explore updating the city's business tax rate
schedule Chua 10/1/2024
An update on this item will be included in the
next quarterly prioritization update.
13 Explore funding options for new signage following
the decision to rename the Milpitas Library to the
Milpitas Jose Esteves Library Barbadillo 9/3/2024
An update on this item will be included in the
next quarterly prioritization update.
14 Update the animal control ordinance to include
other animals such as horses and cats Chua 9/3/2024
An update on this item will be included in the
next quarterly prioritization update.
15 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 will be included in the
next quarterly prioritization update.
16 Conduct a traffic study on Escuela Parkway to
address circulation concerns Montano 5/7/2024
An update on this item will be included in the
next quarterly prioritization update.
17 Explore the possibility of augmenting the Planning
Commission stipend Barbadillo 4/16/2024
An update on this item will be included in the
next quarterly prioritization update.
18 Consideration of the 20% Low Income Below
Market Rate Housing Montano 12/5/2023
An update on this item will be included in the
next quarterly prioritization update.
19 Referral for utility infrastructure cost on Main Street from Carlo to Corning Streets Montano 10/17/2023
An update on this item will be included in the
next quarterly prioritization update.
20 Main Street International Festival Lien 10/3/2023
An update on this item will be included in the
next quarterly prioritization update.
21 Pickleball Pilot Project Chua 2/28/2023
An update on this item will be included in the
next quarterly prioritization update.
22 Main Street Infrastructure Projects Montano 2/28/2023 An update on this item will be included in the
next quarterly prioritization update.
23 Main Street Flooding at Library Chua 2/28/2023
An update on this item will be included in the
next quarterly prioritization update.
24 Have the City look into the possibility of a Citywide Senior Discount Barbadillo 2/7/2023
An update on this item will be included in the
next quarterly prioritization update.
NOTE: Deferred and Completed Items are not listed
MILPITAS CITY COUNCIL
AGENDA ITEM REQUESTS
25 City Manager look into implementing a workshop
for small businesses on the bidding process for
projects in the city Chua 8/9/2022
An update on this item will be included in the
next quarterly prioritization update.
26 Quarterly or Monthly crime statistics on Homekey
Project Chua 6/7/2022
An update on this item will be included in the
next 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 will be included in the
next 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 will be included in the
next quarterly prioritization update.
29 Consider Community Museum and Park on Main
St. Phan 8/20/2019
Discussions with the property owner of this
site are ongoing and staff is tracking
returning to council by June 2025 with an
update.
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: Approve Accounts Receivable Write-offs for the Fiscal Year Ending June 30, 2025 (Staff Contact: Luz Cofresí-Howe, Finance Director, 408-586-3111) Category: Consent Calendar-Leadership and Support Services Meeting Date: 6/3/2025
Recommendation: Approve the accounts receivable write-offs for the fiscal year ending June 30, 2025.
BACKGROUND:
As part of the Finance Department routine analysis of outstanding accounts receivable and the annual publication of the City’s audited financial statements, staff reviews the City accounts receivable to identify payments that are outstanding for more than one (1) year. These outstanding payments are considered for write-off if collection efforts have been unsuccessful. City due diligence activities include internal billing mailings, past due notices, phone calls, and referring outstanding balance(s) to an external collection agency, Collection Bureau of America (CBA).
City of Milpitas Municipal Code I-5-3.00 Write-off of Uncollectible Accounts authorizes the City Manager and the Director of Finance, jointly,
“… to write off as uncollectible up to $50,000.00 in total annually (and up to $10,000.00 for any single account or claim) on all accounts or claims which the City may have against all persons when the City Manager and Director of Finance determine that the claim is:
a. Uncollectible;
b. Possibly collectible but collection would not be reasonably cost-effective taking into consideration the probable necessary cost to the City in pursuing collection and the likelihood of collection; or
c. Not a valid, enforceable claim of the City.”
As the annual write-off amount is more than $50,000, staff seeks Council approval.
ANALYSIS:
Staff recommends the attached listings of accounts receivable for write-off approval. This report covers the period through June 30, 2024. Attached are two accounts receivable lists: one for utility accounts (water and sewer) and the other for non-utility accounts unpaid for more than 12 months. The table below identifies accounts receivable categories, total amounts invoiced as of June 30, 2024, proposed write-off amounts, and proposed write-off amount represented as a percentage of total amounts invoiced. It should be noted that during this period, the City achieved an overall collection rate of 99.87%. The proposed write-off of $87,686 is approximately 0.13% of all the amounts invoiced during the same period.
Invoiced
Amount
Proposed Write-
Off Amounts
% of Invoiced
Amount
Utility Accounts 61,425,879 51,023 0.08% Fire Annual Permit 949,319 13,529 1.43% Fire False Alarm 20,100 3,000 14.93% Police False Alarm 51,561 16,210 31.44% Shopping Cart Retrieval 4,396 595 13.54% Building Permits 5,357,719 3,329 0.06% TOTAL $ 67,808,974 $ 87,686 0.13%
Finance staff invoices and collects payments for all utility accounts as well as miscellaneous accounts receivable (private development jobs, fire permits, business licenses, retiree medical, police false alarms, police subpoena, fire false alarms). For utility accounts, in accordance with Senate Bill 998 Discontinuance of Residential Water Service, a bill is due for payment in 21 days from the bill date. Finance staff then send a reminder notice 23 days from the bill date and final notice 65 days from the bill date. A telephone call follows 73 days from the bill date. The utility account will be tagged for shut-off 80 days from the bill date. If not paid, a utility account will be shut off 85 days from the bill date and sent to CBA. If shut off and sent to collections, a utility customer will not be able to start new utility service until their outstanding balance is paid in full, even if that balance has been written off.
For miscellaneous accounts receivable, an invoice issued is due for payment in 28 days from the issuance date of the invoice. If not paid on the due date, a reminder notice will be issued by Finance staff on the 28th day and due for payment 14 days from issuance date of the reminder notice. If not paid on the due date, Final Notice will be issued on the 42nd day and due for payment 7 days from issuance date of Final Notice. If not paid on the due date, the account will be sent to the City collection agency.
Pursuant to Section I-5-3.03 of the Milpitas Municipal Code, these write-offs are solely to facilitate the keeping of the books of account of the City, and under no circumstances shall any such write-off be deemed to constitute a relinquishment or abandonment by the City of any such account or claim. Such write-offs do not prevent the City from collecting or enforcing payment of any such account or claim at any time.
POLICY ALTERNATIVE(S):
Alternative 1: Do not write off proposed recommendation to write off accounts receivable.
Pros: None
Cons: Will not follow Generally Accepted Accounting Principles, thus overstating City financials.
Reason for Not Recommending: The City must follow business practices consistent with Generally Accepted Accounting Principles (GAAP). Following GAAP is a precursor for an unqualified or “clean” financial audit.
FISCAL IMPACT:
Write offs of $87,686 from the outstanding accounts receivable will reduce the full accrual fund balances of the General Fund by $36,663 and the Utility Funds by $51,023.
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):
This item is not a Project under CEQA exempt under CEQA Guideline 15378(b)(4) as it is a government fiscal activity that does not involve a commitment to any specific project which may result in a potentially significant physical impact on the environment.
ATTACHMENT(S):
(a) Utility Bills Write-Off
(b)Miscellaneous Accounts Receivable Write-Off
ACCOUNT # CUSTOMER NAME
FINAL BILL
DATE AMOUNT REASON
2000355 LEO MIZE 09/04/23 584 CLOSED ACCOUNT 2000708 KANG LEE 02/26/24 142 CLOSED ACCOUNT 2006209 NAVID VAHIDI 10/09/23 28 CLOSED ACCOUNT 2009143 ROMUALDO GERONIMO 03/25/24 280 CLOSED ACCOUNT 2014160 DEAN BARRINGTON 10/09/23 427 CLOSED ACCOUNT 2014863 PAULINE KOUVALES-PREW 03/11/24 519 CLOSED ACCOUNT 2015548 KARIM WALJI 09/25/23 352 CLOSED ACCOUNT 2015696 JOHN AMBROSE 10/09/23 10 CLOSED ACCOUNT 2017683 GIDEON FROST 08/28/23 138 CLOSED ACCOUNT 2018767 JAMES TIRONE 10/30/23 107 CLOSED ACCOUNT 2019062 URAH THOMPSON JR 07/24/23 777 CLOSED ACCOUNT 2019807 MELVIN RABARA 04/15/24 380 CLOSED ACCOUNT 2020967 ALBERT TRINH 11/27/23 781 CLOSED ACCOUNT 2021261 DOROTHY SALOPEK 08/07/23 661 CLOSED ACCOUNT 2021760 GERALD COOPER 10/09/23 566 CLOSED ACCOUNT 2022778 CHANDRA JAISWAL 02/12/24 336 CLOSED ACCOUNT 2024482 LU CHANG 07/24/23 605 CLOSED ACCOUNT 2025168 GEORGE LUND 12/25/23 676 CLOSED ACCOUNT 2025476 ANDY LEDANG 07/24/23 2,950 CLOSED ACCOUNT 2030363 ROBERTO PEREZ 07/31/23 352 CLOSED ACCOUNT 2031223 KIMBERLY IDDEEN 01/15/24 402 CLOSED ACCOUNT 2032147 JAMES LO 03/11/24 275 CLOSED ACCOUNT 2033039 FITNESS 19 CA123 LLC 10/16/23 2,280 BUSINESS CLOSED 2034308 GREAT INDIA ENTERTAINMENT GROUP 10/23/23 379 BUSINESS CLOSED 2036006 BANG PHAN 11/13/23 696 CLOSED ACCOUNT 2036410 JESUS CHAVEZ 10/09/23 500 BUSINESS CLOSED 2041409 NIRAJ TRIVEDI 06/17/24 76 CLOSED ACCOUNT 2041600 A TO B REALTY 04/22/24 336 BUSINESS CLOSED 2042180 MOHAMED SAAD 07/10/23 395 CLOSED ACCOUNT 2043122 DANIEL DIAZ 10/30/23 1,282 CLOSED ACCOUNT 2044699 SANCHA BAR 05/27/24 1,696 CLOSED ACCOUNT 2045845 JOSEPH LAMELAS 06/17/24 96 CLOSED ACCOUNT 2046173 RUI LI 05/13/24 355 CLOSED ACCOUNT 2046879 JOBAN BROWN 12/04/23 674 CLOSED ACCOUNT 2046989 AIDA DOMINGO 07/24/23 189 CLOSED ACCOUNT 2047062 JASON TANAGON 02/19/24 593 CLOSED ACCOUNT 2047407 ERNESTO METRO 10/09/23 815 CLOSED ACCOUNT 2047530 JORGE BENJAMIN MUNOZ 10/02/23 169 CLOSED ACCOUNT 2047707 MARTA GONZALEZ-RODRIGUEZ 10/09/23 411 CLOSED ACCOUNT 2047774 JOHN SUNZERI 06/24/24 296 CLOSED ACCOUNT 2048204 JEREMIAH MERRILL 07/10/23 555 CLOSED ACCOUNT 2048542 GRACELIA TRINAMEZ 10/09/23 772 CLOSED ACCOUNT 2049248 AMARDEEP SINGH 09/25/23 350 CLOSED ACCOUNT 2049288 MIRNA YANEZ 03/04/24 748 CLOSED ACCOUNT 2049464 INEZ RIVAS 02/05/24 2,527 CLOSED ACCOUNT 2049502 ROXANA RUIZ 05/20/24 498 CLOSED ACCOUNT 2049814 PAULIEANNE SASAMOTO 07/10/23 341 CLOSED ACCOUNT 2049952 CHRISTINA ALAOEN 10/09/23 1,337 CLOSED ACCOUNT 2050186 CARLINE CAZILUS 07/24/23 264 CLOSED ACCOUNT 2050207 ADAN CHAVEZ 07/10/23 398 CLOSED ACCOUNT 2050679 ROSEMARIE GARZA 05/06/24 393 CLOSED ACCOUNT 2051037 ESTEBAN ESCOBAR 07/10/23 71 CLOSED ACCOUNT 2051041 TINY HERNANDEZ 02/26/24 319 CLOSED ACCOUNT 2051066 PHUC HA 09/25/23 500 CLOSED ACCOUNT FY 2024-2025 WRITE OFF
Utility Accounts Receivable
as of June 30, 2024
ACCOUNT # CUSTOMER NAME
FINAL BILL
DATE AMOUNT REASON
FY 2024-2025 WRITE OFF
Utility Accounts Receivable
as of June 30, 2024
2051150 JAMES GLOVER 12/25/23 307 CLOSED ACCOUNT 2051159 MARIA LUZ CRUZ 05/06/24 360 CLOSED ACCOUNT 2051212 MOHAMMAD ZARGHAMI 06/24/24 147 CLOSED ACCOUNT 2051365 GANEAYA ROGERS 05/13/24 1,499 CLOSED ACCOUNT 2051446 DAVID SANCHEZ 04/08/24 554 CLOSED ACCOUNT 2051471 MARYBETH SORCIER 08/28/23 481 CLOSED ACCOUNT 2051475 ALAN OVERTON 02/05/24 896 CLOSED ACCOUNT 2051628 ALEXIS HERNANDEZ-CRUZ 08/28/23 173 CLOSED ACCOUNT 2051690 HOME PROPERTY SOLUTIONS 09/04/23 129 BUSINESS CLOSED 2051739 EDGAR CISNEROS 03/11/24 296 CLOSED ACCOUNT 2051742 THINH PHAM 02/19/24 283 CLOSED ACCOUNT 2051792 SREE VARABHARAJAN 02/05/24 63 CLOSED ACCOUNT 2051994 ALEX ESCOBAR 09/18/23 943 CLOSED ACCOUNT 2052027 SANDRA HEREVIA 10/23/23 465 CLOSED ACCOUNT 2052050 PALMIDA CORDOVA 11/06/23 53 CLOSED ACCOUNT 2052077 PHUC NGUYEN 07/24/23 477 CLOSED ACCOUNT 2052143 TUAN NGUYEN 09/04/23 137 CLOSED ACCOUNT 2052320 GOLD'S GYM CALIFORNIA LLC 10/16/23 1,757 BUSINESS CLOSED 2052325 MRIDU SINHA 06/17/24 21 CLOSED ACCOUNT 2052361 BOB CARDOZA 11/20/23 536 CLOSED ACCOUNT 2052403 DANIELA GARCIA 05/20/24 1,249 CLOSED ACCOUNT 2052634 CANDALARIA SOLIS 06/17/24 832 CLOSED ACCOUNT 2052752 MICHAEL TAYLOR 03/18/24 1,752 CLOSED ACCOUNT 2052753 ART DAVE 01/29/24 2,647 CLOSED ACCOUNT 2052840 PREMKUMAR SIKILAMBATLA 06/03/24 2,871 CLOSED ACCOUNT 2053132 DAVID SANCHEZ 06/03/24 437 CLOSED ACCOUNT TOTAL AMOUNT 51,023$
INVOICE # DATE CUSTOMER NAME
CUSTOMER ID
NUMBER AMOUNT DESCRIPTION
I000055514 12/15/23 CTC PROPERTY, LLC F15-0351 1,664 Fire Annual Permit I000055535 12/15/23 AMAZON F23-0432 992 Fire Annual Permit I000055513 12/15/23 CTC PROPERTY, LLC F15-0327 672 Fire Annual Permit I000055530 12/15/23 MAIN STREET MONTESSORI SCHOOL F20-0252 322 Fire Annual Permit I000056065 04/12/24 ASTEELFLASH USA CORPORATION F24-0012 992 Fire Annual Permit I000056069 04/12/24 STARBUCKS F24-0035 992 Fire Annual Permit I000056076 04/12/24 GAO'S KABOB AND CRAB F24-0052 992 Fire Annual Permit I000056073 04/12/24 GENGIS KHAN BBQ F24-0048 322 Fire Annual Permit I000056206 05/31/24 SMTC CORP F24-0059 2,304 Fire Annual Permit I000056213 05/31/24 OX POT F24-0096 992 Fire Annual Permit I000056214 05/31/24 ASIANA PHO KIM F24-0097 992 Fire Annual Permit I000056217 05/31/24 PODS F23-0086 45 Fire Annual Permit I000055478 12/15/23 CONDOMINIUM COMPLEX F94-0741 1,281 Fire Annual Permit I000055486 12/15/23 APT. COMPLEX (WILLIAM TRAN) F19-0387 322 Fire Annual Permit I000055489 12/15/23 APT. COMPLEX (RAGALA PROPERTI) F20-0318 322 Fire Annual Permit I000055492 12/15/23 APARTMENNT COMPLEX F23-0217 322 Fire Annual Permit Fire Annual Permit 13,529$
I000054846 08/04/23 GREAT MALL OF THE BAY AREA 00010116 600 Fire False Alarm I000055253 10/27/23 SCVTA-BART 00001500 600 Fire False Alarm I000055254 10/27/23 PARK TOWN PLAZA 00014190 300 Fire False Alarm I000055759 01/19/24 H&M 00013222 600 Fire False Alarm I000056186 05/17/24 DAVE & BUSTERS 00010092 900 Fire False Alarm Fire False Alarm 3,000$
I000054552 06/16/23 ILARA APARTMENTS 00012648 104 PD False Alarm I000054556 06/16/23 AYLA NETWORKS 00013043 52 PD False Alarm I000054542 06/16/23 MCDONALDS LANDESS #7534 00010344 26 PD False Alarm I000054583 06/16/23 MARRY ROMERO 00013965 26 PD False Alarm I000054674 06/30/23 CAPITOL 650 APARTMENTS 00013252 572 PD False Alarm I000054897 06/30/23 HAUTE ROCK CREATIVE MERCH REVO 00013999 546 PD False Alarm I000054900 06/30/23 VENTURE ENTERPRISE INNOVATION 00014034 442 PD False Alarm I000054898 06/30/23 SERVICE KING PAINT & BODY LLC 00014020 286 PD False Alarm I000054657 06/30/23 CVS PHARMACY 00010612 156 PD False Alarm I000054877 06/30/23 CAJUN CRACKIN 00013485 130 PD False Alarm I000054893 06/30/23 TOLL WEST COAST LLC 00013947 104 PD False Alarm I000054896 06/30/23 CALIFORNIA REHABILITATION AND 00013989 78 PD False Alarm I000054666 06/30/23 MAGARRAY 00012978 26 PD False Alarm I000054875 06/30/23 ANTON ASPIRE APARTMENTS 00013455 26 PD False Alarm I000054879 06/30/23 ENTERPRISE RENT-A-CAR 00013537 26 PD False Alarm I000054887 06/30/23 THE SANDWICH SPOT 00013781 26 PD False Alarm I000054894 06/30/23 GOODWILL INDUST OF SC COUNTY 00013960 26 PD False Alarm I000054707 06/30/23 EVELYN CASTILLO 00014071 26 PD False Alarm I000054913 06/30/23 LONG HUYNH 00014108 26 PD False Alarm I000054915 06/30/23 NUNEZ PRECISION WELDING INC 00014110 26 PD False Alarm I000054920 06/30/23 STARBUCKS COFFEE #6578 00014115 26 PD False Alarm I000054923 06/30/23 THE COLLECTORS CLUB 00014118 26 PD False Alarm I000054929 06/30/23 XUEJUAN LIANG 00014124 26 PD False Alarm I000055037 09/15/23 HAUTE ROCK CREATIVE MERCH REVO 00013999 598 PD False Alarm I000055002 09/15/23 AESTHETIC DENTAL 00012296 299 PD False Alarm I000054992 09/15/23 BURLINGTON COAT FACTORY 00000047 27 PD False Alarm I000054997 09/15/23 CALAVERAS FAMILY DENTISTRY 00010754 27 PD False Alarm I000055000 09/15/23 UNION BANK OF CALIFORNIA 00011165 27 PD False Alarm I000055032 09/15/23 IMRAN AKTHER 00013841 27 PD False Alarm I000055050 09/15/23 ATLAS EXPRESS PADALA INC 00014131 27 PD False Alarm I000055051 09/15/23 CHRISTINE LEE 00014132 27 PD False Alarm I000055059 09/15/23 JP MORGAN CHASE BANK N.A. 00014140 27 PD False Alarm I000055064 09/15/23 O'REILLY AUTO PARTS #3199 00014145 27 PD False Alarm I000055153 10/13/23 AT & T MOBILITY 00012720 109 PD False Alarm I000055165 10/13/23 THE RICE HOUSE LLC 00013780 54 PD False Alarm FY 2024-2025 WRITE OFF
Miscellaneous Accounts Receivable
as of June 30, 2024
INVOICE # DATE CUSTOMER NAME
CUSTOMER ID
NUMBER AMOUNT DESCRIPTION
FY 2024-2025 WRITE OFF
Miscellaneous Accounts Receivable
as of June 30, 2024
I000055132 10/13/23 KENTUCKY FRIED CHICKEN 00000475 27 PD False Alarm I000055135 10/13/23 TOGOS (RANCH) 00000894 27 PD False Alarm I000055150 10/13/23 SEVENTH DAY ADVENTIST CHURCH 00012599 27 PD False Alarm I000055160 10/13/23 CURRENCY EXCHANGE INTERNATIONA 00013360 27 PD False Alarm I000055166 10/13/23 PRAGNESH MEHTA 00013937 27 PD False Alarm I000055176 10/13/23 CHEF P'S 00014165 27 PD False Alarm I000055197 10/13/23 TP CONSTRUCTION 00014186 27 PD False Alarm I000055395 11/24/23 KENTUCKY FRIED CHICKEN 00000475 272 PD False Alarm I000055436 11/24/23 MARRY ROMERO 00013965 109 PD False Alarm I000055438 11/24/23 LENNOX INDUSTRIES INC 00014004 109 PD False Alarm I000055414 11/24/23 CURRY PIZZA HOUSE 00013250 82 PD False Alarm I000055397 11/24/23 KAISER PERMANENTE 00010094 27 PD False Alarm I000055400 11/24/23 ROUND TABLE PIZZA #2 00011015 27 PD False Alarm I000055404 11/24/23 SEVENTH DAY ADVENTIST CHURCH 00012599 27 PD False Alarm I000055423 11/24/23 KELLY MOORE PAINT CO INC 00013615 27 PD False Alarm I000055440 11/24/23 KING EGGROLL EXPRESS 00014141 27 PD False Alarm I000055454 11/24/23 PANDA EXPRESS 00014208 27 PD False Alarm I000055458 11/24/23 SUN MED SPA 00014212 27 PD False Alarm I000055548 12/15/23 WELLS FARGO BANK 2 00000099 299 PD False Alarm I000055585 12/15/23 AIR 1 MOVING AND STORAGE 00013985 299 PD False Alarm I000055580 12/15/23 THE RICE HOUSE LLC 00013780 109 PD False Alarm I000055557 12/15/23 TEQUILA SHOTS BAR AND GRILL 00012541 54 PD False Alarm I000055586 12/15/23 MILPITAS CHARITY BINGO INC 00014007 54 PD False Alarm I000055594 12/15/23 BBQ CHICKEN MILPITAS 00014225 54 PD False Alarm I000055558 12/15/23 PEETS COFFEE AND TEA 00012693 27 PD False Alarm I000055561 12/15/23 LENTHOR ENGINEERING INC 00012849 27 PD False Alarm I000055569 12/15/23 PARIS BAGUETTE 00013132 27 PD False Alarm I000055578 12/15/23 HH THE AGAKHAN SHIA IMAMIISMAI 00013565 27 PD False Alarm I000055581 12/15/23 TUYEN NGUYEN 00013795 27 PD False Alarm I000055582 12/15/23 SUBWAY SANDWICHES #32944 00013858 27 PD False Alarm I000055604 12/15/23 KARTHIKEYAN RAMAMOORTHY 00014235 27 PD False Alarm I000055608 12/15/23 MILPITAS DISCOVERYLAND 00014239 27 PD False Alarm I000055611 12/15/23 SAMEER LAIWALA 00014242 27 PD False Alarm I000055696 01/12/24 AT & T MOBILITY 00012720 462 PD False Alarm I000055686 01/12/24 KENTUCKY FRIED CHICKEN 00000475 299 PD False Alarm I000055702 01/12/24 SUTTER HEALTH WALK IN CARE 00013135 299 PD False Alarm I000055711 01/12/24 ENTERPRISE RENT-A-CAR 00013537 299 PD False Alarm I000055695 01/12/24 ILARA APARTMENTS 00012648 163 PD False Alarm I000055723 01/12/24 LENNOX INDUSTRIES INC 00014004 163 PD False Alarm I000055704 01/12/24 CURRY PIZZA HOUSE 00013250 136 PD False Alarm I000055710 01/12/24 DE LOS ALTOS GRILL 00013519 109 PD False Alarm I000055733 01/12/24 BIG LOTS 00014257 82 PD False Alarm I000055732 01/12/24 ANGELINA BACLIG 00014256 27 PD False Alarm I000055743 01/12/24 MB AUTOWORKS LLC 00014267 27 PD False Alarm I000055856 02/16/24 AT & T MOBILITY 00012720 1,196 PD False Alarm I000055854 02/16/24 ILARA APARTMENTS 00012648 598 PD False Alarm I000055852 02/16/24 BEVERAGES AND MORE 00011077 544 PD False Alarm I000055877 02/16/24 LENNOX INDUSTRIES INC 00014004 299 PD False Alarm I000055857 02/16/24 CALIBER BODYWORKS LLC 00012859 272 PD False Alarm I000055872 02/16/24 THE RICE HOUSE LLC 00013780 163 PD False Alarm I000055864 02/16/24 SIERRA GATE LLC 00013150 109 PD False Alarm I000055850 02/16/24 OUTBACK STEAKHOUSE 00010628 27 PD False Alarm I000055855 02/16/24 BLACK BEAR DINER 00012683 27 PD False Alarm I000055865 02/16/24 CONCENTRA 00013253 27 PD False Alarm I000055867 02/16/24 GLOBAL VILLAGE MONTESSORI SCHO 00013392 27 PD False Alarm I000055869 02/16/24 HH THE AGAKHAN SHIA IMAMIISMAI 00013565 27 PD False Alarm I000055873 02/16/24 MELANIE DE GUZMAN 00013883 27 PD False Alarm I000055879 02/16/24 MADHURI RUPAAKULA 00014081 27 PD False Alarm I000055883 02/16/24 BLUE PRINT CONTROLS INC 00014278 27 PD False Alarm I000055896 02/16/24 SOBRATO FOUNDATION 00014291 27 PD False Alarm
INVOICE # DATE CUSTOMER NAME
CUSTOMER ID
NUMBER AMOUNT DESCRIPTION
FY 2024-2025 WRITE OFF
Miscellaneous Accounts Receivable
as of June 30, 2024
I000055899 02/16/24 US CRICKET STORE 00014294 27 PD False Alarm I000056140 05/10/24 CALIFORNIA PURE WATER 00014305 54 PD False Alarm I000056132 05/10/24 MCDONALDS # 7533 00000515 27 PD False Alarm I000056135 05/10/24 MERRYHILL SCHOOL 00011751 27 PD False Alarm I000056274 06/28/24 ANTON ASPIRE APARTMENTS 00013455 762 PD False Alarm I000056270 06/28/24 ADP INC 00012781 27 PD False Alarm I000056272 06/28/24 SATELLITE HEALTHCARE MILPITAS 00013266 27 PD False Alarm I000056278 06/28/24 76 GAS STATION ABBOTT 00014312 27 PD False Alarm I000056406 06/30/24 ANTON ASPIRE APARTMENTS 00013455 1,360 PD False Alarm I000056430 06/30/24 ANTON ASPIRE APARTMENTS 00013455 816 PD False Alarm I000056433 06/30/24 THE RICE HOUSE LLC 00013780 326 PD False Alarm I000056443 06/30/24 DUNKIN DONUTS 00014348 326 PD False Alarm I000056404 06/30/24 SUTTER HEALTH WALK IN CARE 00013135 136 PD False Alarm I000056438 06/30/24 CALIFORNIA PURE WATER 00014305 109 PD False Alarm I000056398 06/30/24 BURGER KING #5270 00010837 82 PD False Alarm I000056395 06/30/24 BURLINGTON COAT FACTORY 00000047 54 PD False Alarm I000056397 06/30/24 ROMANOS MACARONI GRILL 00010221 27 PD False Alarm I000056423 06/30/24 ADP INC 00012781 27 PD False Alarm I000056400 06/30/24 TELEDYNE LECORY INC 00012906 27 PD False Alarm I000056428 06/30/24 GLOBAL VILLAGE MONTESSORI SCHO 00013392 27 PD False Alarm I000056434 06/30/24 TIEN LY 00013787 27 PD False Alarm I000056435 06/30/24 MILPITAS CHARITY BINGO INC 00014007 27 PD False Alarm I000056414 06/30/24 VEDA 00014246 27 PD False Alarm I000056417 06/30/24 STRESS FREE AUTO CARE 00014322 27 PD False Alarm I000056445 06/30/24 MARILYN HAMBY 00014350 27 PD False Alarm I000056446 06/30/24 PONNADA SOUJANYA 00014351 27 PD False Alarm I000056448 06/30/24 RENATO ONEAL 00014353 27 PD False Alarm I000052076 01/06/23 IST TRANSPORTATION 00013345 90 PD False Alarm PD False Alarm 16,210$
I000055469 12/01/23 HOME DEPOT #1041 00010714 44 Shopping Cart Retrieval I000055468 12/01/23 WAL-MART-MILPITAS 00010495 16 Shopping Cart Retrieval I000056050 04/05/24 WAL-MART-MILPITAS 00010495 44 Shopping Cart Retrieval I000056053 04/05/24 WALGREENS-DIXON/MILPITAS BLVD 00011125 11 Shopping Cart Retrieval I000056125 04/26/24 WAL-MART-MILPITAS 00010495 36 Shopping Cart Retrieval I000056202 05/31/24 WAL-MART-MILPITAS 00010495 156 Shopping Cart Retrieval I000056286 06/28/24 WAL-MART-MILPITAS 00010495 168 Shopping Cart Retrieval I000056288 06/28/24 WALGREENS-DIXON/MILPITAS BLVD 00011125 12 Shopping Cart Retrieval I000056361 06/30/24 WAL-MART-MILPITAS 00010495 84 Shopping Cart Retrieval I000056363 06/30/24 WALGREENS-DIXON/MILPITAS BLVD 00011125 24 Shopping Cart Retrieval Shopping Cart Retrieval 595$
I000051545 09/02/22 IBM CORPORATION 00013314 68 Building Permits I000052077 01/06/23 K POP BEAUTY INC 00013346 1,218 Building Permits I000053731 04/14/23 N POWER ELECTRIC INC 00013982 1,186 Building Permits I000055912 02/16/24 RELIABLE ROOFING 00014298 857 Building Permits Building Permits 3,329$
OVERALL TOTAL 36,663$
CITY OF MILPITAS
AGENDA REPORT
(AR)
Item Title: Adopt a Resolution Expressing the City Commitment to Achieving Compliance with the Metropolitan Transportation Commission (MTC) Transit-Oriented Communities (TOC) Policy and Accept $400,000 in MTC Grant Funding (Staff Contact: Jay Lee, Planning Director, 408-586-3077)
Category: Consent Calendar-Community Development
Meeting Date: 6/3/2025
Recommendation: Adopt a resolution expressing the City commitment to achieving compliance with the Metropolitan Transportation Commission (MTC) Transit-Oriented Communities (TOC) Policy as a condition for MTC to allocate regional discretionary funds to support increased allowable floor area ratio for the implementation of a parking and transportation demand management policy for TOC areas.
BACKGROUND:
The Metropolitan Transportation Commission (MTC) Transit-Oriented Communities (TOC) Policy aims to promote higher-density, mixed-use development near major transit stations to support regional goals for housing, equity, and sustainability. The policy encourages jurisdictions to increase housing production, particularly affordable housing, enhance access to jobs and transit, reduce reliance on cars through improved walking, biking, and transit connections, and adopt policies that protect vulnerable communities from displacement. Compliance with the TOC Policy is tied to eligibility for MTC transportation funding programs, such as the One Bay Area Grant (OBAG), making it a key framework for aligning land use planning with regional transportation investments.
The TOC Policy applies to locations within a half-mile of existing and planned stops and stations serviced by one of the following:
- BART, Caltrain, SMART, Capitol Corridor and ACE Stations - Muni and VTA light-rail stations
- Muni and AC Transit bus rapid transit stops
- Ferry terminals
Geographic areas subject to the TOC Policy are also categorized by tier according to the level of transit service at the fixed-guideway station within a half-mile.
- Tier 1: Rail stations serving regional centers
- Tier 2: Stop/station served by two or more BART lines or BART and Caltrain - Tier 3: Stop/station served by one BART line, Caltrain, light rail transit, or bus rapid transit - Tier 4: Commuter rail (SMART, ACE, Capitol Corridor, Valley Link) stations, Caltrain stations south of Tamien, or ferry terminals
The City has three TOC station areas: Milpitas BART station (Tier 2), Great Mall Light Rail Station (Tier 3), and Alder Light Rail Station (Tier 3).
On September 30, 2024, MTC invited Bay Area public agencies to submit projects for local planning and policy development to advance MTC’S TOC Policy. In November 2024, City staff submitted three applications for grant funding for three projects: 1) prepare a TOC-Overlay to increase allowable floor area ratio (FAR), 2) housing policy amendments, and 3) a parking and transportation demand management policy for the City’s TOC areas. On February 14, 2025, the MTC Planning Committee awarded the City two TOC Planning grants totaling $400,000 to 1) prepare a TOC-Overlay to increase allowable FAR and 2) a parking and transportation
demand management policy for the City’s TOC areas. MTC requires a resolution of local support from jurisdictions to accept the funds.
On February 14, 2025, the Metropolitan Transportation Commission (MTC) awarded the City of Milpitas two planning grants totaling $400,000. In order to accept this funding, the city must adopt a resolution in support of the accepting the grants. The commitments made in the resolution are focused solely on the work associated with increased commercial/office floor area ratio in the BART Station and parking and transportation policies and strategies in three areas discussed in this memorandum. Adopting this City Council resolution does not incorporate, nor commit the City, to the entire TOC policy ANALYSIS:
Following a robust, multi-year planning process, the City of Milpitas adopted the Milpitas Metro Specific Plan (Metro Plan) on February 7, 2023. The Metro Plan is an update to the Transit Area Specific Plan (TASP), adopted in 2008, and builds upon the original vision and strategy for transforming older industrial areas around the new Milpitas Transit Center into new high-density, mixed-use neighborhoods with direct access to transit.
One of the key strategies is to establish an employment-focused Innovation District to accommodate and facilitate approximately 3 million square feet of new office, research and development, and advanced manufacturing development.
Staff analyzed the City’s existing density (residential and office) standards, affordable housing policies, parking management policies, and transportation access policies in conformance with MTC TOC Policy. Since the Metro Plan was recently updated, the BART station area was partially in compliance with MTC TOC Policy for residential and office densities. Staff recommends amending the Metro Plan to implement a TOC overlay to allow for more commercial/office uses in conformance with MTC TOC Policy and submitted an application to MTC to request $100,000 for this work. The scope of work does not propose changes to the allowed land uses or increases in the residential density in the Milpitas BART Station TOC area. The currently allowed residential density near the BART Station through the Metro Specific Plan already complies with the TOC policy.
Furthermore, the scope of work does not propose to implement a TOC overlay for the areas around the Great Mall Light Rail Station and Alder Light Rail Station. In other words, this project would only increase the allowed density (i.e., floor area ratio) for commercial/office uses around the BART Station. Having this overlay in place will improve the feasibility of and potentially facilitate commercial redevelopment, bring more jobs to Milpitas, and have a positive fiscal impact on the City.
Staff also applied for the $300,000 technical assistance grant to review the City’s existing parking policies and conditions to determine an approach for achieving parking maximums within its three TOC areas. The purpose of MTC’s TOC Policy Parking Management requirements is to reduce automobile trips and prioritize the limited land area near transit for other shared transportation modes and active transportation. The proposed work will overlap with the City’s current comprehensive zoning update (CZO), which has an anticipated adoption date of fall 2025, as well as the Gateway-Main Street Specific Plan update that is slated for adoption in fall of 2025.
While both long-range efforts will include parking reductions, they do not wholly comply with the TOC policy.
This project will review and potentially adopt TOC-area-specific parking standards. In lieu of reducing parking requirements, the City can implement transportation demand management (TDM) strategies to reduce parking demand and impacts from future developments within the three TOC station areas.
POLICY ALTERNATIVE(S):
Alternative 1: Do not express support for the City’s commitment to taking steps towards compliance with MTC’s TOC Policy.
Pros: None.
Cons: Failure to adopt a resolution expressing support for the City’s commitment to taking steps towards compliance with MTC’s TOC Policy could result in the City not receiving funding from MTC to pursue TOC Policy projects.
Reason for Not Recommending: Without documentation of local support for the City commitment to the MTC TOC Policy, the City would potentially miss out on the opportunity to receive $400,000 in grant funding from
MTC. If the City does not take any steps towards compliance with MTC TOC Policy, the City would be less competitive for future grant opportunities, specifically MTC’s One Bay Area Grant (OBAG) program. OBAG supports many of the City’s transportation projects.
FISCAL IMPACT:
If the City is awarded funding from MTC through the TOC Policy Grant Program, the cost to prepare the TOC- overlay and parking and transportation demand management policy would be covered entirely by grant funding in the amounts of $100,000 and $300,000 respectively, for a total of $400,000. If the City does not receive funding from MTC, the City would not pursue these projects until funding is available.
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):
Neither the submission of a grant application nor receiving a grant award constitutes a project, in accordance with Section 15378 of the CEQA Guidelines, as such actions are a fiscal activity of the City government that does not involve any commitment to a specific project that may result in a potentially significant physical impact on the environment.
RECOMMENDATION:
Adopt a resolution expressing the City’s commitment to achieving compliance with the Metropolitan Transportation Commission (MTC) Transit-Oriented Communities (TOC) Policy as a condition for MTC to allocate regional discretionary funds to support increased allowable FAR and the implementation of a parking and transportation demand management policy for TOC areas.
ATTACHMENT(S):
(a) Resolution
RESOLUTION NO. _____
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MILPITAS
COMMITTING TO TAKE STEPS TOWARD ACHIEVING COMPLIANCE WITH THE METROPOLITAN TRANSPORTATION COMMISSION’S (MTC’S)
TRANSIT-ORIENTED COMMUNITIES (TOC) POLICY AS A CONDITION FOR
MTC TO ALLOCATE REGIONAL DISCRETIONARY FUNDING TO PREPARE
A TOC-OVERLAY TI INCREASE ALLOWABLE FAR ANDA PARKING AND TRANSPORTATION DEMAND MANAGEMENT POLICY FOR THE CITY’S
TOC AREAS
WHEREAS, the City of Milpitas, California (the “City”) is a municipal corporation, duly organized under the constitution and laws of the State of California; and WHEREAS, the Metropolitan Transportation Commission (MTC) is the designated recipient for state and federal funding assigned to the Regional Transportation Planning Agency / Metropolitan Planning Organization of the nine-county San Francisco Bay Area region for the programming of projects; and
WHEREAS, the MTC adopted Resolution 4530, the TOC Policy; and WHEREAS, the TOC Policy incentivizes local jurisdictions to plan and zone for higher residential and commercial densities in areas within one half-mile of existing and planned fixed-guideway transit stops and stations to support the region’s transit investments and implement key GHG reduction strategies from Plan Bay Area 2050; and
WHEREAS, incentivizing local jurisdictions to also adopt policies focused on increasing housing production of all types, particularly affordable housing production, preservation and protection, commercial anti-displacement and stabilization, parking management, and transit station access and circulation further supports regional transit investments and Plan Bay Area 2050 implementation; and WHEREAS, in 2023 MTC identified the Milpitas Bart Station as Tier 2 TOC, Great Mall Light Rail Station and Alder Light Rail Station as Tier 3 TOC in the City of Milpitas; and WHEREAS, MTC conditions the allocation of regional discretionary funding for fixed- guideway transit extension projects on compliance with the TOC Policy; and WHEREAS, MTC anticipates that future regional funding, such as the One Bay Area Grant (OBAG) program, will consider compliance with the TOC Policy as part of the prioritization and project selection process starting with OBAG 4, expected in 2026; and WHEREAS, the TOC Policy establishes different compliance expectations for existing and planned station areas based on the level of transit service; and WHEREAS, the TOC Policy identifies four TOC Policy areas (density, housing affordability, parking, and access/circulation); and
WHEREAS, on September 30, 2024 the MTC announced a Call for Projects for Transit Oriented Communities (TOC) Planning and Implementation Grants, and informed local jurisdictions of a
2 Resolution No. ____
November 22, 2024 deadline for submittals of Applications, as well as grant application guidance and requirements including compliance with the Transit Oriented Communities Policy; and WHEREAS, the City of Milpitas submitted grant applications to MTC for $100,000 to prepare a TOC-Overlay in the BART Station area; and $300,000 for parking and transportation demand management policy development in the BART Station area, Great Mall Light Rail Station area, and Alder Light Rail Station area; in response to the MTC’s Call for TOC Planning and Implementation Projects; and
WHEREAS, the City of Milpitas accepted a grant award from MTC for $100,000 to prepare a TOC-Overlay in the BART Station area; and $300,000 for parking and transportation demand management policy development in the BART Station area, Great Mall Light Rail Station area, and Alder Light Rail Station area; in response to the MTC’s Call for TOC Planning and Implementation Projects; and
WHEREAS, the City of Milpitas commits to completing the work to develop the associated TOC- Overlay in the BART Station area and parking and transportation demand management policy development in the BART Station area, Great Mall Light Rail Station area, and Alder Light Rail Station area work scopes following MTC’s grant awards by applying for these funds; and WHEREAS, the City of Milpitas intends to bring forward for the City Council’s consideration for adoption the relevant plans, policies or zoning updates emerging from the work completed through the TOC-Overlay in the BART Station Area grant to comply with the TOC Policy’s density requirements; and
WHEREAS, the City of Milpitas intends to bring forward for the City Council’s consideration for adoption the relevant plans, policies or zoning updates emerging from the work completed through the parking and transportation demand management policy development grant to comply with the TOC Policy’s parking requirements; and
NOW, THEREFORE, the City Council of the City of Milpitas hereby finds, determines, and resolves as follows:
SECTION 1. RECITALS
The City Council has duly considered the full record before it, which may include but is not limited to such things as the City staff report, testimony by staff and the public, and other materials and evidence submitted or provided to the City Council. Furthermore, the recitals set forth above are found to be true and correct and are incorporated herein by reference.
SECTION 2. CITY COUNCIL APPROVAL
The City Council hereby expresses its support for the City’s commitment to taking steps toward achieving compliance with the Metropolitan Transportation Commission’s (MTC’s) Transit-Oriented Communities (TOC) Policy as a condition for MTC to allocate regional discretionary funding to prepre a TOC-Overlay to increase allowable FAR and a parking and transportation demand management policy for the City’s TOC areas.
3 Resolution No. ____
PASSED AND ADOPTED this ___________ day of _____________, 2025, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST: APPROVED:
Suzanne Guzzetta, City Clerk Carmen Montano, Mayor
APPROVED AS TO FORM:
Christopher Creech, Acting City Attorney
CITY OF MILPITAS
AGENDA REPORT
(AR)
Item Title: Adopt a Resolution to Accept the Water Valves Project as Part of the Dempsey Road Water Line Replacement, Project Nos. 7110 and 7118, and Authorize the City Engineer to File a Notice of Completion and Issue a Notice of Final Acceptance After the One-Year Warranty (Staff: Christian Di Renzo, Public Works Director, 408-586-2602; and Michael Silveira, City Engineer, 408-586-3303) Category: Consent Calendar-Community Services and Sustainable Infrastructure Meeting Date: 6/3/2025
Recommendation: (1) Adopt a resolution to accept the Water Valves Project as part of the Dempsey Road Water Line Replacement, Project Nos. 7110 and 7118; and (2) Authorize the City Engineer to file a Notice of Completion and issue a Notice of Final Acceptance after the one-year warranty.
BACKGROUND:
On November 19, 2024, the City Council awarded a construction contract to WestRock Engineering Inc. (Contractor) for the Water Valves Project as part of the Dempsey Road Water Line Replacement, Project Nos. 7110 and 7118 (Project) in the amount of $445,000.00. The Project is included in the FY 2025-2029 Adopted Capital Improvement Program and provides for the replacement of water valves on E. Calaveras Boulevard and Yosemite Drive in support of the water main replacement along Dempsey Road and Yosemite Drive. The work included installing a fire hydrant and approximately 160 feet of water main, installing two new valves and replacing five non-operational valves.
ANALYSIS:
The Project was successfully completed on time and within budget. The new valves are fully functional and ready to be used in support of the water main replacement project along Dempsey Road and Yosemite Drive.
Staff recommends the City Council adopt a Resolution (Attachment 1) granting acceptance of the Project and authorize the City Engineer to file a Notice of Completion in accordance with the provisions of Section 9204 of the Municipal Code. Staff also recommends the City Council authorize the City Engineer to issue a Notice of Final Acceptance after the one-year warranty period without further City Council action, provided that all warranty work is completed to the satisfaction of the City Engineer.
POLICY ALTERNATIVE(S):
Alternative: Deny the adoption of the Resolution granting acceptance of the Project and filing the Notice of Completion.
Pros: None.
Cons: A denial would result in the City being unable to accept the completed improvements and commence the one-year warranty in accordance with the contract documents.
Reason not Recommended: The Contractor has completed the Project in accordance with the approved contract documents. A denial to accept the Project could be considered as a breach of contract and risk a possible claim by the Contractor.
FISCAL IMPACT:
There is no fiscal impact as the Project has been completed within the approved budget. The Public Works Department will be responsible for maintenance and operations of the improvements. Any required additional
funding for ongoing maintenance will be requested through future budget appropriations as the City Council considers and adopts the annual operating budget.
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):
The project entails replacement or reconstruction of existing structures and facilities where the new structure will be located on the same site as the structure replaced and will have substantially the same purpose and capacity as the structure replaced and is exempt from CEQA pursuant to Cal. Code Regs., tit. 14, § 15302.
ATTACHMENT(S):
(a) Resolution and Notice of Completion
RESOLUTION NO. ______
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MILPITAS
GRANTING ACCEPTANCE OF THE WATER VALVES PROJECT AS PART OF THE DEMPSEY ROAD WATER LINE REPLACEMENT, PROJECT NOS. 7110 AND 7118
WHEREAS, the City of Milpitas has heretofore entered into a contract with WestRock Engineering, Inc., for the Water Valves Project as part of the Dempsey Road Water Line Replacement, Project Nos. 7110 and 7118 (“Project”), in the amount of $445,000; and WHEREAS, the City Engineer of the City of Milpitas has recommended acceptance of said improvements as completed in accordance with plans, specifications and approved change orders and correction lists, and in accordance with the final inspection of said City Engineer.
NOW, THEREFORE, the City Council of the City of Milpitas hereby finds, determines, and resolves as follows:
1. The City Council has considered the full record before it, which may include but is not limited to such things as the staff report, testimony by staff and the public, and other materials and evidence submitted or provided to it. Furthermore, the recitals set forth above are found to be true and correct and are incorporated herein by reference.
2. The City of Milpitas does hereby accept said improvement as completed on this 3 rd day of June, 2025, and does hereby authorize and direct the City Engineer of the City of Milpitas to file a Notice of Completion in accordance with the provisions of Section 9204 of the Civil Code of the State of California, and does hereby authorize and direct the City Engineer to file a Certificate of Completion in accordance with the provisions of Section 4005 of the Government Code of the State of California, if said work was by day’s labor or force account.
3. The City Council authorizes the City Engineer to issue the Notice of Final Acceptance after the one-year warranty period without further City Council action, provided all required warranty repairs are completed to the satisfaction of the City Engineer; and nothing herein contained shall in any way be deemed to be a waiver, release or relinquishment by City of any obligations imposed upon the contractor or its surety, or sureties, by law or by the above-referenced improvement contract, save and except those obligations specifically mentioned herein.
PASSED AND ADOPTED this _________ day of ________, 2025 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
2 Resolution No. ____
ATTEST: APPROVED:
Suzanne Guzzetta, City Clerk Carmen Montano, Mayor
APPROVED AS TO FORM:
Christopher Creech, Acting City Attorney
3 Resolution No. ____
Recording Requested by and
When Recorded Mail to:
City of Milpitas
455 East Calaveras Boulevard
Milpitas, CA 95035
Attention: City Clerk
Record without fee under
Section 6103 - Government Code
State of California
CITY OF MILPITAS
NOTICE OF COMPLETION
(Civil Code Section 9204)
NOTICE IS HEREBY GIVEN:
1. On or about November 19, 2024, the City Council of the City of Milpitas, a municipal corporation of the State of California, whose address is City Hall, 455 East Calaveras Boulevard, Milpitas, California, 95035 (as owner) entered into a contract for work of: Water Valves Project as part of the Dempsey Road Water Line Replacement, Project Nos. 7110 and 7118.
2. A description of the site of which the City is owner for said work of improvement is: along East Calaveras Boulevard and Yosemite Drive in the City of Milpitas, Santa Clara County, California, more particularly described on the plans.
3. The name and address of the direct contractor is: WestRock Engineering, Inc., 2055 Lombard St, PO box 471043, San Francisco, CA 94147.
4. A general statement of the kind of work done or materials furnished to the City is as follows: The Project provides replacement of existing water valves at various locations along East Calaveras Boulevard and Yosemite Drive.
5. Said work of improvement was accepted by the Milpitas City Council as complete on June 3 rd, 2025. ************************************************************************************* I, the undersigned, declare that I am the City Engineer of the City of Milpitas and am authorized to execute the foregoing Notice of Completion and this Verification thereof. I have read the foregoing Notice of Completion.
I declare under penalty of perjury that the foregoing Notice of Completion is true and correct. Executed on ________, 2025 at Milpitas, California.
__________________________________
Michael Silveira, P.E., City Engineer
City of Milpitas
_____________________________________________________________________________________ NOTE: RECORD WITHIN 15 DAYS OF ACCEPTANCE WITH COUNTY RECORDER OF SANTA
CLARA COUNTY
CITY OF MILPITAS
AGENDA REPORT
(AR)
Item Title: Adopt a Resolution to Accept the 2024 Annual Street Pavement Restriping Project, CIP No. 4295 and Authorize the City Engineer to File a Notice of Completion and Issue a Notice of Final Acceptance after the One-Year Warranty (Staff Contact: Christian Di Renzo, Public Works Director, 408-586-2602; and Michael Silveira, City Engineer, 408-586-3303)
Category: Community Services and Sustainable Infrastructure Meeting Date: 6/3/2025
Recommendation: Adopt a resolution to accept the 2024 Annual Street Pavement Restriping Project, CIP No. 4295 and authorize the City Engineer to file a Notice of Completion and issue a Notice of Final Acceptance after the one-year warranty.
BACKGROUND:
On November 19, 2024, the City Council awarded the 2024 Annual Street Pavement Restriping Project, CIP No. 4295 (Project) construction contract to Sterndahl Enterprises, Inc. (Contractor), in the amount of $862,505.10 with a 10% contingency. The Project was included in the adopted 2025-2029 Capital Improvement Program (CIP) and provides for the improvement, thermoplastic restriping, and replacement of pavement markings on City's paved roadways. The completed work increases vehicular, bicycle and pedestrian safety for travel on City streets. The Project’s base bid included improvements at the following locations:
•North and South Milpitas Boulevard - Fremont city limit south to Garden Street •Dixon Landing Road - California Circle to N Milpitas Boulevard •Dixon Road - N Milpitas Boulevard east to the end
•Evans Road - Jacklin Road to Calaveras Road
•Piedmont Road - Calaveras Road to Yosemite Drive
A total of three (3) change orders were initiated to update quantities, extend contract time due to inclement weather, and add additional locations to enhance safety on Marilynn Drive from Abel Street to Weller Lane, S.
Park Victoria Drive from Calaveras Boulevard to Landess Avenue, and McCarthy Boulevard from Dixon Landing Drive to N. Ranch Drive. These additions resulted in a total project cost of $948,755.01.
ANALYSIS:
The Project was successfully completed on time and within budget. Staff recommends the City Council adopt a Resolution (Attachment A) granting acceptance of the Project and authorize the City Engineer to file a Notice of Completion in accordance with the provisions of Section 9204 of the Civil Code. Staff also recommends the City Council authorize the City Engineer to issue a Notice of Final Acceptance after the one-year warranty period without further City Council action, provided that all warranty work is completed to the satisfaction of the City Engineer.
POLICY ALTERNATIVE(S):
Alternative: Deny the adoption of the Resolution granting acceptance of the Project and filing the Notice of Completion.
Pros: None.
Cons: A denial would result in the City not accepting the completed improvements and commencing the one- year warranty in accordance with the contract documents.
Reason for Not Recommending: The Contractor has completed the Project in accordance with the approved contract documents. A denial to accept the Project could be considered as a breach of contract and risk a possible claim by the Contractor.
FISCAL IMPACT:
The total project cost was $948,755.01. This amount was within the approved budget. The Public Works Department will be responsible for maintenance and operations of the improvements.
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):
The Project entails replacement or reconstruction of existing structures and facilities, where the new structure will be located on the same site as the structure replaced, and will have substantially the same purpose and capacity as the structure replaced and is exempt from CEQA pursuant to Cal. Code Regs., tit. 14, § 15302.
ATTACHMENT(S):
(a) Resolution
(b)Notice of Completion
RESOLUTION NO. ______
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MILPITAS GRANTING ACCEPTANCE OF 2024 ANNUAL STREET PAVEMENT RESTRIPING PROJECT CIP NO. 4295 WHEREAS, the City of Milpitas has heretofore entered into a contract with Sterndahl Enterprises, Inc., for the 2024 Annual Street Pavement Restriping Project CIP No. 4295 (“Project”), in the amount of $948,755.01; and
WHEREAS, the City Engineer of the City of Milpitas has recommended acceptance of said improvements as completed in accordance with plans, specifications and approved change orders and correction lists, in accordance with the final inspection of said City Engineer.
NOW, THEREFORE, the City Council of the City of Milpitas hereby finds, determines, and resolves as follows:
1. The City Council has considered the full record before it, which may include but is not limited to such things as the staff report, testimony by staff and the public, and other materials and evidence submitted or provided to it. Furthermore, the recitals set forth above are found to be true and correct and are incorporated herein by reference.
2. The City of Milpitas does hereby accept said improvement as completed on this 3 rd day of June, 2025, and does hereby authorize and direct the City Engineer of the City of Milpitas to file a Notice of Completion in accordance with the provisions of Section 9204 of the Civil Code of the State of California, and does hereby authorize and direct the City Engineer to file a Certificate of Completion in accordance with the provisions of Section 4005 of the Government Code of the State of California, if said work was by day’s labor or force account.
3. The City Council authorizes the City Engineer to issue the Notice of Final Acceptance after the one-year warranty period without further City Council action, provided all required warranty repairs are completed to the satisfaction of the City Engineer; and nothing herein contained shall in any way be deemed to be a waiver, release or relinquishment by City of any obligations imposed upon the contractor or its surety, or sureties, by law or by the above-referenced improvement contract, save and except those obligations specifically mentioned herein.
PASSED AND ADOPTED this _________ day of ________, 2025 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
2 Resolution No. ____
ATTEST: APPROVED:
Suzanne Guzzetta, City Clerk Carmen Montano, Mayor
APPROVED AS TO FORM:
Christopher Creech, Acting City Attorney
Recording Requested by and
When Recorded Mail to:
City of Milpitas
455 East Calaveras Boulevard
Milpitas, CA 95035
Attention: City Clerk
Record without fee under
Section 6103 - Government Code
State of California
CITY OF MILPITAS
NOTICE OF COMPLETION
(Civil Code Section 9204)
NOTICE IS HEREBY GIVEN:
1. On or about November 19, 2024, the City Council of the City of Milpitas, a municipal corporation of the State of California, whose address is City Hall, 455 East Calaveras Boulevard, Milpitas, California, 95035 (as owner) entered into a contract for work of: 2024 Annual Street Pavement Restriping Project CIP No. 4295.
2. A description of the site of which the City is owner for said work of improvement in the City of Milpitas, Santa Clara County, California, more particularly described on the plans.
3. The name and address of the direct contractor is: Sterndahl Enterprises, Inc., 11861 Branford St, Sun Valley, CA 91352.
4. A general statement of the kind of work done or materials furnished to the City is as follows: The Project provides removal and replacement of pavement striping, markings, messages and raised pavement markers.
5. Said work of improvement was accepted by the Milpitas City Council as complete on June 3, 2025. ************************************************************************************* I, the undersigned, declare that I am the City Engineer of the City of Milpitas and am authorized to execute the foregoing Notice of Completion and this Verification thereof. I have read the foregoing Notice of Completion. I declare under penalty of perjury that the foregoing Notice of Completion is true and correct. Executed on ________, 2025 at Milpitas, California. __________________________________
Michael Silveira, P.E., City Engineer
City of Milpitas
_____________________________________________________________________________________ NOTE: RECORD WITHIN 15 DAYS OF ACCEPTANCE WITH COUNTY RECORDER OF
SANTA CLARA COUNTY
CITY OF MILPITAS
AGENDA REPORT
(AR)
Item Title: Authorize the City Manager, or Designee, to Amend Agreements with BrightView Landscape Services, Inc. for Park and Facilities Landscaping Services (Staff Contact: Luz Cofresí-Howe, Finance Director, 408-586-3111; and Christian Di Renzo, Public Works Director, 408-586-2602)
Category: Consent Calendar-Community Services and Sustainable Infrastructure Meeting Date: 6/3/2025
Recommendation: Authorize the City Manager, or designee, to amend the Agreements with Brightview Landscape Services, Inc. for Park and Facilities Landscaping Services to (1) extend the terms of the Agreements through September 30, 2026, (2) increase vendor compensation by 2.5%, and (3) add $80,000 to the Facilities Landscaping Agreement for a revised maximum compensation of $661,300 to cover the price increase, extended term, and as-required repairs, subject to the appropriation of funds.
BACKGROUND:
The Public Works Department oversees landscaping services at all City parks, facilities, medians, and open spaces within the City. Due to the demands of maintaining these areas, the City utilizes contracted services to augment and assist City staff.
On March 3, 2020, the City Council authorized staff to enter into an Agreement with BrightView Landscape Services, Inc. (BrightView) for weekly landscaping services at 26 City parks based on the results of a competitive Request for Proposal (RFP 2402). The initial Agreement was for a term of March 30, 2020, through March 29, 2025, with a maximum compensation of $8,419,056. On December 13, 2021, staff executed the first amendment to the Agreement to amend the scope and compensation exhibits with no change in maximum compensation. On December 16, 2024, staff executed the second amendment to the Agreement to extend the term of the Agreement through June 30, 2025, with no change in maximum compensation.
On August 17, 2021, City Council authorized staff to enter into an Agreement with BrightView for landscaping services at various City facilities based on the results of a competitive Request for Proposal (RFP 2522). The Agreement began September 20, 2021, and will end September 19, 2026, for a maximum compensation of $581,300.
ANALYSIS:
Staff is currently working on a new competitive Request for Proposals (RFP) for landscaping services to include both parks and facilities. However, the RFP will not be complete with a new contract in place before the current Agreements expire. To allow staff sufficient time to complete the RFP process, including Council approval and agreement negotiation and execution, staff is requesting the current Agreements be extended through September 30, 2026. In the event the new Agreement is executed prior to the end of the current Agreements, the City has the option to terminate the current Agreements with seven days’ notice to the vendor per the provisions of the current Agreements. In the event of termination, the City will only be responsible for compensating the vendor for services provided through the date of termination.
As part of the extension, BrightView requested a rate increase of 2.5%. This is the allowable annual increase currently specified in the Agreements. There are sufficient funds available in the Parks Landscaping Agreement to cover the extension, vendor price increase, and as-required repairs. The Parks Agreement currently has about $1,600,000 left of the contracted $8,419,056. Staff anticipates this remaining balance will
be sufficient to cover the estimated $1,400,000 in regular maintenance services, as well as leave approximately $200,000 for as-required repairs for the extended term.
For the Facilities Landscaping Agreement, staff requests an increase of $80,000 for a revised maximum compensation of $661,300. This will provide sufficient funds to cover the vendor price increase and leave approximately $50,000 for as-required repairs for the extended term.
Consistent with Section I-2-3.21 of the Milpitas Municipal Code, amendments to contracts previously approved by the City Council are brought forward for Council consideration when the requested amendment extends the duration of the contract more than twelve months past the last Council-approved expiration date or increases the compensation of the contract by more than $40,000 or 15% of the original award, whichever is less. If a single amendment would increase compensation by more than $20,000 or 10% of the original award, whichever is less, that amendment is also brought forward to the Council for consideration.
POLICY ALTERNATIVE(S):
Alternative 1: Do not authorize the City Manager, or designee, to amend the Agreements with BrightView for Parks and Facilities Landscaping Maintenance and As-Required Repairs.
Pros: Increased work responsibilities for City Public Works staff.
Cons: The City does not currently have sufficient resources to provide these services while also overseeing ongoing operations and maintenance of the City’s infrastructure.
Reason not recommended: The City does not currently have sufficient resources to perform the landscaping services at the City’s parks and facilities. The City would need to purchase equipment and hire staff to absorb this additional work which would delay maintenance and repair activities.
FISCAL IMPACT:
Sufficient funds for these Agreements are requested in the Public Works Parks and Facilities Maintenance operating budget for Fiscal Year 2025-2026 for ongoing maintenance services, which is subject to City Council review and approval in June 2025. There is sufficient funding in CIP 3462 – On-Call Facilities Maintenance & Repair Services and CIP 3463 – On-Call Parks and Landscaping Services for as-required parks and facilities landscape repairs. Ongoing costs will be subject to the annual appropriation of funds.
CALIFORNIA ENVIRONMENTAL QUALITY ACT:
The 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. Even if a project, the action is exempt from further CEQA review pursuant to Cal. Code Regs., tit. 14, § 15061(b)(3) as it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. The action entails the operation, repair, maintenance, or minor alteration of existing landscape, involving negligible or no expansion of existing or former use, and therefore is exempt from CEQA pursuant to Cal. Code Regs., tit. 14, § 15301.
ATTACHMENT(S):
N/A
CITY OF MILPITAS
AGENDA REPORT
(AR)
Item Title: Receive an Update on Emergency Water Main Repairs at Curtis Avenue and Yosemite Avenue 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: 6/3/2025
Recommendation: (1) Receive an update on the emergency water main repairs at 330 Curtis Avenue (Recycled Water Main) and 878 Yosemite Avenue (Potable Water Main); 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 City 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. The City Council received this report at its regularly scheduled meeting on May 20, 2025 and by a four-fifths vote determined there was a need to continue emergency work without giving notice for bids.
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.
Pursuant to Public Contract Code Section 22050 and Resolution No. 9134, the Director of Public Works has determined that Water Main Repairs on Curtis Avenue and Yosemite Drive constitute emergencies. Both incidents meet the legal definition of an emergency 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.” Delaying these repairs to complete a formal bidding process would significantly increase the risk of further infrastructure failure, extended service disruptions, environmental impacts, and property damage.
PROJECT/STATUS UPDATE:
Project #1: 18-inch ductile iron recycled water main located at 330 Curtis Avenue Per the agreement entered on October 8, 1997 with the City of San José, the City of Milpitas is responsible for the operation and maintenance of the recycled water distribution system and all associated facilities located within Milpitas city limits. The portion of the recycled water distribution system within Milpitas includes approximately 24 miles of pipeline and related appurtenances. In addition to routine operations and maintenance, the City is also responsible for providing emergency services on an as-needed basis.
On April 11, 2025, City staff were notified of a significant recycled water spill into the storm drain system due to a main break in the recycled water system. Crews promptly began potholing to locate the source of the leak.
The affected water main was isolated to prevent further discharge into the local drainage system, resulting in service interruptions for eight recycled water customers, including landscaping services for the Great Mall.
Repairs, originally scheduled to begin on May 16, 2025, were deferred until May 19 due to a delay in the delivery of necessary parts. Excavation efforts were significantly hampered by large volumes of surrounding concrete and hard base materials, as well as the proximity of fiber optic conduits and other critical utilities.
These conditions required careful, methodical excavation and increased both the complexity and duration of the repair process.
The initial excavation did not reveal the source of the leak, requiring crews to extend their efforts eastward and deeper along the alignment. The leak appears to be located inside the casing where the pipeline runs beneath the railroad tracks. This location presents additional technical challenges and will require further work to fully expose and repair the damaged pipe segment. To mitigate impacts in the interim, a new isolation valve was installed on May 28, and service was successfully restored to all affected customers on May 29.
Due to these unforeseen site conditions including the depth of the break, obstructions from surrounding infrastructure, and the extended effort needed to trace the leak, the total cost of the emergency repair has increased to approximately $138,000. The City will continue to coordinate with South Bay Water Recycling (SBWR) to determine their preferred approach for completing the full repair of the line within the casing under the railway.
Project #2: 16-inch spiral welded steel water main located at 878 Yosemite Avenue On April 16, 2025, City staff responded to a major water leak at the intersection of Yosemite Avenue and Hillview Drive. Crews promptly isolated the potable water main to prevent further property damage and initiated an investigation. The cause of the leak was identified as a large hole on the bottom of a 16-inch wrapped steel main at a transition fitting. Due to the pipe type, repairs require specialized materials and a certified welder.
During the isolation process, staff also discovered one of the valves was broken in the closed position and needs to be replaced. Staff contacted Preston Pipeline once again to assist with the repairs and provide a cost proposal.
The total cost for the repair at Yosemite Avenue and Hillview Drive, including labor and materials, is not to exceed $214,000. Work is tentatively scheduled to begin the week of June 2 and is anticipated to take up to five days.
FISCAL IMPACT:
Funding for these repairs is available in the City’s Capital Improvement Program (CIP) budget. CIP Project 7118 – Dempsey Road Water Line Replacement will fund the repairs. The available balance as of May 14, 2025 is $5,172,576.79. SBWR will subsequently be invoiced for the expenses incurred to repair and improve the recycled water line at 330 Curtis Avenue.
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):
The Projects entail replacement or reconstruction of existing structures and facilities where the new structure will be located on the same site as the structure replaced, and will have substantially the same purpose and capacity as the structure replaced and is exempt from CEQA pursuant to Cal. Code Regs., tit. 14, § 15302.
ATTACHMENT(S):
None.
CITY OF MILPITAS
AGENDA REPORT
(AR)
Item Title: Conduct a Public Hearing and Adopt a Resolution Confirming the Assessment and Ordering the Levy for the Landscaping and Lighting Maintenance Assessment District No. 95-1 - McCarthy Ranch in Fiscal Year 2025-26 (Staff Contact: Christian Di Renzo, Public Works Director, 408-586-2602; and Michael Silveira, City Engineer, 408-586-3303)
Category: Public Hearings-Community Development
Meeting Date: 6/3/2025
Recommendation: (1) Conduct a public hearing; and (2) Adopt a resolution confirming the assessment and ordering the levy for Landscaping and Lighting Maintenance Assessment District No. 95-1 McCarthy Ranch in Fiscal Year 2025-26.
BACKGROUND:
On May 2, 1995, City Council 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) (Act) to establish the Landscaping and Lighting Maintenance Assessment District 95-1 (LLMD 95-1 McCarthy Ranch). It provides for the maintenance and improvement of public landscaping, irrigation systems, pedestrian lighting, gateway columns and entry signs along North McCarthy Boulevard between State Route 237 and Dixon Landing Road and Ranch Drive in the areas as shown on the attached location map (Attachment A).
On March 4, 2025, the City Council adopted a Resolution initiating proceedings for the annual levy and collection of assessments and ordering the preparation of the Annual Engineer’s Report. Staff retained the consulting firm NBS for the purpose of assisting with the annual levy assessment, and the preparation and filing of the report required pursuant to Section 22622 of the Act. On May 6, 2025, the City Council adopted Resolution No. 9410 approving the Annual Engineer’s Report and adopted Resolution No. 9411 declaring its intention to levy and collect assessment and provide notice of a public hearing to be held on June 3, 2025, for LLMD 95-1 McCarthy Ranch in Fiscal Year (FY) 2025-26.
ANALYSIS:
A public hearing is required by the Act to adopt a resolution confirming the assessment and ordering the levy for the LLMD 95-1 McCarthy Ranch in FY2025-26 (Attachment B). According to the FY2025-26 Annual Engineer’s Report (Attachment C), the total assessment in FY2025-26 is $0.0381 per lot square foot which is under the maximum assessment rate of $0.0572 per lot square foot. Even though the US Department of Labor’s Consumer Price Index for San Francisco-Oakland-Hayward area indicates there was a CPI rate increase of 2.69% between February 2024 to February 2025, staff recommends the rate for FY 2025-26 to remain the same as FY2024-25 as there are sufficient funds in the operating reserves of the current budget.
Staff recommend City Council open the public hearing, receive any comments or written protests, and move to close the hearing following any testimony and adopt a resolution confirming the assessment and ordering the levy for the LLMD 95-1 McCarthy Ranch in FY2025-26.
POLICY ALTERNATIVE(S):
Alternative 1: Do not adopt a resolution confirming the assessment and ordering the levy for LLMD 95-1 McCarthy Ranch in FY2025-26.
Pros: None.
Cons: If the City Council does not adopt the Resolution according to the Act, the City will be unable to collect assessments for LLMD 95-1 McCarthy Ranch.
Reason not recommended: Staff recommends approving the Resolution confirming the assessment and ordering the levy for FY2025-26 to allow for the continued maintenance and service of LLMD 95-1 McCarthy Ranch.
FISCAL IMPACT:
The levy and collection of assessments provides the City with the needed resources for the maintenance and improvements of LLMD 95-1 McCarthy Ranch. The FY2025-26 maintenance budget is estimated to be $460,148.00. The City maintains an operating reserve, not to exceed the estimated maintenance costs, prior to December 10th of the fiscal year or when it expects to receive its apportionments of special assessments from the County of Santa Clara, whichever comes first.
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):
A levy and collection of assessments 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. The action is a fiscal activity of the City government or an action to create a City government funding mechanism that does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment and is not a project pursuant to Cal. Code of Regs., tit. 14, § 15378. To the extent the funds generated by this levy and collection would be used to fund any currently contemplated projects, such projects entail the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use and is exempt from CEQA pursuant to Cal. Code Regs., tit. 14, § 15301.
ATTACHMENT(S):
(a) Location Map
(b) Resolution Confirming the Assessment and Ordering the Levy (c) FY2025-26 Annual Engineer’s Report for LLMD 95-1 McCarthy Ranch
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 CONFIRMING THE
ASSESSMENT AND ORDERING THE LEVY FOR THE LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT NO. 95-1 FOR FISCAL YEAR 2025-26
WHEREAS, the City Council previously completed its proceedings in accordance with and pursuant to the Landscaping and Lighting Act of 1972, Part 2, Division 15 of the California Streets and Highways Code (commencing with Section 22500) (the “Act”) to establish the Landscaping and Lighting Maintenance Assessment District (the “Assessment District”); and
WHEREAS, the City Council has retained NBS for the purpose of assisting with the annual levy of the Assessment District, and the preparation and filing of an Annual Report; and WHEREAS, the City Council has, by previous resolution, declared its intention to hold a Public Hearing concerning the levy and collection of assessments within the Assessment District; and WHEREAS, a Public Hearing has been held and concluded and notice thereof was duly given in accordance with Section 22626 of the Act; and
WHEREAS, at the time and place specified in the Resolution of Intention the City Council conducted such hearing and considered all objections to the assessment.
NOW, THEREFORE, the City Council of the City of Milpitas hereby finds, determines, and resolves as follows:
1. Confirmation of Assessment and Diagram: The City Council hereby confirms the assessment and the diagram as is described in full detail in the Annual Report on file with the City Clerk. All protests not sustained by majority vote of the City Council at the hearing are overruled.
2. Levy of Assessment: Pursuant to Section 22631 of the Act, the adoption of this Resolution shall constitute the levy of an assessment for the fiscal year commencing July 1, 2025 and ending June 30, 2026.
3. Ordering of the Levy: The City Council hereby orders NBS to prepare and submit the levy of assessments to Santa Clara County for placement on the Fiscal Year 2025-26 secured property tax roll.
PASSED AND ADOPTED this _____ day of ____________, 2025, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST: APPROVED:
_____________________________ _____________________________ Suzanne Guzzetta, City Clerk Carmon Montano, Mayor
APPROVED AS TO FORM:
_____________________________
Christopher Creech, Acting City Attorney
nbsgov.com
Prepared by:
Corporate Headquarters
32605 Temecula Parkway, Suite 100
Temecula, CA 92592
Toll free: 800.676.7516
Fiscal Year 2025/26 Engineer’s Report For:
Landscaping and Lighting Maintenance
Assessment District No. 95-1
May 2025
CITY OF MILPITAS
LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT NO. 95-1 455 East Calaveras Boulevard
Milpitas, California 95035
Phone (408) 586-3000
CITY COUNCIL
Carmen Montano, Mayor
Gary Barbadillo, Vice Mayor
Evelyn Chua, Council Member
Hon Lien, Council Member
William Lam, Council Member
CITY STAFF
Michael Silveira, PE, City Engineer
Luz Cofresi-Howe, Finance Director/Risk Manager
Christian Di Renzo, Public Works Director
NBS
Tim Seufert, Client Services Director
Amanda Welker, Project Manager
Tom Zetz, Administrator
TABLE OF CONTENTS
1. Engineer’s Letter ............................................................................................................. 1
2. Plans and Specifications .................................................................................................. 3
2.1 Location of Improvements ........................................................................................ 3
2.2 Landscaping Improvements ...................................................................................... 3
2.3 Capital Improvements ............................................................................................... 4
2.4 Overhead ................................................................................................................... 4
3. Estimate of Costs ............................................................................................................ 5
3.1 District Budget ........................................................................................................... 5
4. Special and General Benefit ............................................................................................ 7
4.1 Identification of Benefit ............................................................................................ 7
4.2 Special Benefits Identified ......................................................................................... 7
4.3 General Benefits Identified ....................................................................................... 8
4.4 Quantification of Benefit ........................................................................................... 8
4.5 Special Benefit Trips ................................................................................................ 12
5. Method of Assessment ................................................................................................. 14
5.1 Introduction ............................................................................................................. 14
5.2 Method of Assessment Spread ............................................................................... 14
5.3 Maximum Assessment Rates .................................................................................. 15
5.4 Appeals .................................................................................................................... 15
6. Assessment Diagram ..................................................................................................... 16
7. Assessment Roll ............................................................................................................ 17
City of Milpitas
Fiscal Year 2025/26 – LLMAD No. 95-1 Engineer’s Report 1
1. ENGINEER’S LETTER
WHEREAS, in 1995, the City Council of the City of Milpitas (the “City”), State of California, under the Landscaping and Lighting Act of 1972 (the “Act”), created the City of Milpitas Landscaping and Lighting Maintenance Assessment District No. 95-1 (the “District”) in order to provide for the continued maintenance, operation, and administration of various improvements within the boundaries of the District; and
WHEREAS, the City Council has directed NBS to prepare and file a report for Fiscal Year 2025/26 in accordance with Chapter 1, Article 4 of the Act presenting plans and specifications describing the general nature, location, and extent of the improvements to be maintained; an estimate of the costs to maintain, operate, and service the improvements for the District for the referenced fiscal year; a diagram for the District showing the area and properties to be assessed; and an assessment of the estimated costs to maintain and service the improvements, stating the net amount to be assessed upon all assessable lots or parcels within the District in proportion to the special benefit received.
NOW THEREFORE, the following assessments have been calculated in accordance with the assessment methodology adopted and approved by the City Council at the time of District formation, and are made to cover the portion of the estimated costs of maintenance, operation, and servicing of the improvements, to be paid by the assessable real property within the District in proportion to the special benefit received:
District Parcels
2025/26
Maximum Assessment
Rate per Lot Sq. Ft.(1)
2025/26
Actual Assessment
Rate per Lot Sq. Ft.
2025/26
Net Amount to be
Assessed(2)(3)
LLMAD 95-1 45 $0.0572 $0.0381 $448,957
(1) The April 1, 2025 Consumer Price Index (CPI) provided by the U.S. Bureau of Labor Statistics was not available at the time of writing of this report. The Fiscal Year 2025/26 CPI increase was estimated using the February 1, 2025 CPI. (2) Amounts placed on the tax roll include the 1% Santa Clara County Collection Fee. (3) This amount is only an estimate and does not reflect the final billed amount with rounding adjustments. Refer to Section 7 for the rounded figure.
I identified all parcels which will have a special benefit conferred upon them from the improvements described in District’s Plans and Specifications section of this Engineer’s Report (the “Benefited Parcels”) have been identified. For particulars as to the identification of said parcels, reference is made to the Assessment Diagram, a copy of which is on file in the office of the City Clerk.
I have assessed the costs and expenses of the improvements upon the Benefited Parcels. In making such assessment:
a. The proportionate special benefit derived by each Benefited Parcel from the improvements was determined in relationship to the entirety of the maintenance costs of the improvements; b. No assessment has been imposed on any Benefited Parcel which exceeds the reasonable cost of the proportional special benefit conferred on such parcel from the improvements; and c. Any general benefits from the improvements have been separated from the special benefits and only special benefits have been assessed.
City of Milpitas
Fiscal Year 2025/26 – LLMAD No. 95-1 Engineer’s Report 3
2. PLANS AND SPECIFICATIONS
The District provides for the continued administration, maintenance, operation, and servicing of various improvements located within the public right-of-way and dedicated easements within the boundaries of the District.
2.1 Location of Improvements
The District is located on the west side of the City of Milpitas, bounded on the east by State Route 880, on the west by Coyote Creek, on the south by State Route 237, and on the north by Dixon Landing Road. The improvements maintained include public landscaping and irrigation improvements, including jogging paths, pedestrian lighting, gateway improvements, and entry signage, which are primarily situated within the public right-of-way and dedicated public easements within the District.
2.2 Landscaping Improvements
Landscaping, pedestrian lighting, gateway, and signage improvements were installed along the roadways and sidewalks within the District to enhance the overall visual appearance for adjacent parcels.
The improvements within the District consist of the maintenance and installation of any or all public landscaping and irrigation improvements adjacent to curbs of the following described streets, including jogging paths, planter walls, grass berms, pedestrian lighting and appurtenant irrigation systems, ornamental planting including lawns, shrubs, and trees; installation and maintenance of gateway columns and entry signs. Such maintenance includes all necessary repairs, replacements, water, electric current, spraying, care, supervision, debris removal and all other items of work necessary and incidental for property maintenance and operation thereof. The landscaping, irrigation, pedestrian lighting, gateway, and signage improvements are collectively referred to as “landscaping improvements.” All such work will be performed in the following areas:
2.2.1 N. MCCARTHY BOULEVARD
1. A strip of land including an earth berm approximately 50 feet in width from face of each curb line, from the southerly connection with Ranch Drive northerly 2,400 feet, more or less, to the northerly connection with Ranch Drive. A strip of land including a grass berm approximately 35 feet in width, west of the face of westerly curb, along the West Side of N. McCarthy Boulevard, from the southerly connection with Ranch Drive, northerly 2,400 feet, more or less. The initial phase includes a strip of land 6 feet wide on the west side of McCarthy Boulevard.
2. Commencing at a location approximately 2,400 feet north of State Route 237 thence proceeding north to the northern boundary of Lands of N. McCarthy, 7,800 feet more or less, a strip of land approximately 27 to 34 feet in width on each side along the east and west sides of McCarthy Boulevard between the northerly connection with Ranch Drive and Dixon Landing Road.
3. A median island from the southerly intersection with Ranch Drive northerly to the intersection with Dixon Landing Road.
City of Milpitas
Fiscal Year 2025/26 – LLMAD No. 95-1 Engineer’s Report 4
4. Gateway Improvements, at the southerly intersection of N. McCarthy Boulevard and Ranch Drive and southerly of Bridge No. 1 along N. McCarthy Boulevard, including curved stone planter walls, gateway columns with entry sign appurtenant mounding ornamental plantings including flat work, trees and ground cover, irrigation systems; all as shown on landscape plans.
5. Lighting costs in the District are limited to the supplemental pedestrian lights installed on the east side of McCarthy Boulevard between the two intersections at Ranch Drive and McCarthy Boulevard. The conventional lighting along McCarthy Boulevard is not included. There also exists decorative up-lighting for the Gateway Towers in other areas near the southern Ranch Drive intersection of McCarthy.
2.2.2 MILPITAS ENTRY SIGN
1. City of Milpitas Entry Identification Sign along N. McCarthy Blvd., including walls, columns, lighting, and other appurtenances.
2.2.3 RANCH DRIVE
1. Commencing at a Northerly location where the right-of-way of Ranch Drive is contiguous with the right-of-way of Interstate 880, thence southerly, a strip of land approximately 10 feet in width measured from the east face of curb of Ranch Drive, from the northerly connection with Interstate 880 and Ranch Drive, southerly 630 feet, more or less, thence 405 feet south to the southerly end of Gateway location, varying in width from 10 feet to 132 feet, more or less.
2. Gateway Improvements, at the southerly connection of Ranch Drive and Interstate 880, including curved stone planter walls, gateway columns with entry sign appurtenant mounding ornamental plantings including flat work, trees and ground cover, irrigation systems; all as shown on landscape plans (Part A), except the Shopping Center’s Monument Sign. As mentioned above, there also exists decorative up-lighting for the Gateway Towers in other areas near the southern Ranch Drive intersection of McCarthy.
2.3 Capital Improvements
In Fiscal Year 2021/22, the City initiated the design and construction of landscape and irrigation renovation on N. McCarthy Blvd. between State Route 237 and Dixon Landing Road and a portion of Ranch Drive. The landscape and irrigation renovation design has been completed and planting renovations will continue in 2025/26.
2.4 Overhead
In addition to the costs of maintaining the improvements mentioned above, the City will incur costs for staff time and expenses related to the management and maintenance of the improvements within the District. Staff time includes oversight and coordination of both City and contractor provided services, annual tax roll preparation, and addressing property owner questions and concerns. These activities are directly related to the maintenance of the improvements, and without them the improvements could not be efficiently completed or properly maintained on an ongoing basis.
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Fiscal Year 2025/26 – LLMAD No. 95-1 Engineer’s Report 5
3. ESTIMATE OF COSTS
The estimated costs of maintenance and servicing of the improvements as described in the Plans and Specifications are summarized below.
3.1 District Budget
The Fiscal Year 2025/26 estimated cost budget for the maintenance and servicing of the improvements is as follows:
Description Fiscal Year 2025/26 Budget
Maintenance Staff and Contract Services(1) $290,000
Capital Equipment 0
Supplies 15,000
Utilities (Water, Electricity) 71,648
Reserve Fund 0
Capital Improvement Program 83,500
Maintenance Costs $460,148
NBS $5,200
City Staff District Administration 2,700
County Auditor-Controller Fee(2) 4,100
District Specific Costs $12,000
Total District Costs $472,148
General Benefit Contribution(3) (23,191)
Operating Reserve Contribution 0
Net Amount to be Assessed $448,957
Total District Square Footage(4) 11,794,540
Rate per Square Foot(5)(6) $0.0381
Maximum Rate Per Square Foot – 2025/26(7) $0.0572
(1) Fiscal Year 2025/26 Landscape Maintenance Contract Services includes Terracare and Irvine Company. (2) County Auditor-Controller Fee is currently 1% of the total levy submittal amount. (3) General Benefit Contribution is not applied to District Specific Costs, as these are special benefits to the District. (4) Total District Square Footage includes a 50% reduction for Parcel 5-7 (Sewer Main Pump Station) and Parcel 5-3C (Storm Pump Station).
(5) The Rate per Square Foot equals the Net Amount to be Assessed / Total District Square Footage. (6) The assessed rate cannot exceed the maximum rate.
(7) The April 1, 2025 CPI was not available at the time of writing of this report. The Fiscal Year 2025/26 CPI increase was estimated by using the February 1, 2025 CPI.
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Fiscal Year 2025/26 – LLMAD No. 95-1 Engineer’s Report 6
3.1.1 OPERATING RESERVE
It is the intent of the City to maintain an operating reserve which shall not exceed the estimated costs of maintenance and servicing of the improvements prior to December 10 of the fiscal year, or when the City expects to receive its apportionment of special assessments from the County, whichever is later. The operating reserve balance information for the District is as follows:
Estimated Fiscal Year Ending 6/30/2025 Operating Reserve Cash Balance $300,824 Operating Reserve Collection for Fiscal Year 2025/26 0
Estimated Fiscal Year Ending 6/30/2026 Operating Reserve Cash Balance $300,824
3.1.2 CAPITAL IMPROVEMENT BUDGET
The City completed the replacement of the irrigation controllers and repairs of the irrigation system on N.
McCarthy Blvd. (between State Route 237 and Dixon Landing Road) and a portion of Ranch Drive. The City also installed planting in the median on Ranch Drive at the intersection of N. McCarthy Blvd. Planting renovations will continue in 2025/2026. As of March 31, 2025, the balance available for the Capital Improvement Project is $390,841.30. The City will utilize these funds, along with an annual collection of $75,000 via the District from Fiscal Year 2024/25 to Fiscal Year 2028/29, to finance the work.
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Fiscal Year 2025/26 – LLMAD No. 95-1 Engineer’s Report 7
4. SPECIAL AND GENERAL BENEFIT
The improvements defined in Section 2 are expected to confer certain special benefits to parcels within the District. The special benefits are described in this section. Figures in this section are derived from a Special v. General Benefit Analysis performed in Fiscal Year 2020/21.
4.1 Identification of Benefit
Section 4 of Article XIIID of the California Constitution provides that once a local agency which proposes to impose assessments on property has identified those parcels that will have special benefits conferred upon them and upon which an assessment will be imposed, the local agency must next “separate the general benefits from the special benefits conferred,” and only the special benefits can be included in the amount of the assessments imposed.
4.2 Special Benefits Identified
The improvements described in Section 2 are expected to confer certain special benefits to parcels within the District. The special benefits conferred to property within the District can be grouped into three primary benefit categories: aesthetic benefit, safety benefit, and economic benefit. The three District benefit categories are further expanded upon below.
• Improved Aesthetics: The aesthetic benefit relates to the increase in the overall aesthetics as a result of the ongoing maintenance, servicing, and operation of the improvements within the District. The landscaping improvements enhance the overall image and desirability of the properties within the District. Street landscaping improvements improve the livability, commercial activity, appearance, and desirability for properties within the District. Regular maintenance ensures that the improvements do not reach a state of deterioration or disrepair, so as to be materially detrimental to properties adjacent to or in close proximity to the improvements. The overall appeal of the District is enhanced when improvements are in place and kept in a healthy and satisfactory condition. Conversely, appeal decreases when improvements are not well- maintained, unsafe, or destroyed by the elements or vandalism. Streetscapes have a significant effect on how people view and interact with their community.1 With streetscapes that are safe and inviting, people are more likely to walk, which can help reduce automobile traffic, improve public health, stimulate local economic activity, and attract residents and visitors to the community.2 • Increased Safety: Well-maintained areas mitigate crime, especially vandalism, and enhance pedestrian safety. A recent study found that after landscape improvements were installed, there was a 46% decrease in crash rates across urban arterial and highway sites and a second study reviewed found a 5% to 20% reduction in mid-block crashes after trees and planters in urban arterial roads were put in place. In addition, there is less graffiti, vandalism, and littering in outdoor spaces with natural landscapes than in comparable plant-less spaces. 3 The Victoria Transport
1 Victoria Transport Policy Institute. (2011). Community Livability. Helping to Create Attractive, Safe, Cohesive Communities.
Retrieved from http://www.vtpi.org/tdm/tdm97.htm.
2 Ibid.
3 Wolf, Kathleen L. (2010). Safe Streets – A Literature Review. In: Green Cities: Good Health (www.greenhealth.washington.edu).
College of the Environment, University of Washington.
City of Milpitas
Fiscal Year 2025/26 – LLMAD No. 95-1 Engineer’s Report 8 Policy Institute has found that streetscapes reduce traffic speeds and when combined with improved pedestrian crossing conditions can significantly reduce collisions. 4 • Economic Activity: Well-maintained street landscape improvements not only make adjacent properties appear more stable and prosperous but can spur investment in the property. The National Complete Streets Coalition notes that street design that is inclusive of all modes of transportation, where appropriate, not only improves conditions for existing businesses, but also is a proven method for revitalizing an area and attracting new development. 5 Landscaped sidewalks create an inviting place for customers to shop and do business. 6 Well-maintained and safe District areas will encourage an increase in the overall pedestrian activity. The area will become more pedestrian friendly, thus improving the retail environment by encouraging individuals to shop, dine, and stay within the District boundaries. The District will provide a cleaner more inviting environment to businesses and consumers which will attract, retain and expand the retail and business climate throughout. The effort will reduce vacancy rates and increase lease rates and utilization of property within the District.
4.3 General Benefits Identified
Section 4 of Article XIIID of the California Constitution provides that once a local agency which proposes to impose assessments on property has identified those parcels that will have special benefits conferred upon them and upon which an assessment will be imposed, the local agency must next “separate the general benefits from the special benefits conferred,” and only the special benefits can be included in the amount of the assessments imposed.
General benefit is an overall and similar benefit to the public at large resulting from the maintenance of the District’s improvements provided by the assessments levied. The improvements to be maintained by the District are located within the District boundaries only. There will be no District maintenance activities provided for improvements located outside of the District boundaries.
The ongoing maintenance of the District improvements will provide aesthetic, safety and economic activity benefits to the property within the District. However, it is recognized that the ongoing maintenance activities will also provide a level of benefit to some property within proximity to the District, as well as individuals passing through. Therefore, the general benefit created as a result of the District maintenance activities has been considered.
4.4 Quantification of Benefit
As a result of the maintenance and operation of the improvements, there will be a level of general benefit to people that do not work or intend to conduct business within the District. In order for property within the District to be assessed only for that portion of special benefits received from the District’s maintenance
4 Victoria Transport Policy Institute. (2011). Community Livability. Helping to Create Attractive, Safe, Cohesive Communities.
Retrieved from http://www.vtpi.org/tdm/tdm97.htm.
5 Pugliese, Philip. (2008). Complete Streets provide all the elements of multi-modal transportation. Retrieved from http://www.americantrails.org/resources/trans/completestreets08.html 6 U.S Department of Transportation. Federal Highway Administration. (2001). Designing Sidewalks and Trails for Access, Part II of II: Best Practices Design Guide. Retrieved from http://www.fhwa. dot. gov/ environment/bicycle_pedestrian/publications/sidewalk2/
City of Milpitas
Fiscal Year 2025/26 – LLMAD No. 95-1 Engineer’s Report 9 activities, general benefits provided by the ongoing maintenance of the improvements need to be quantified. The amount of general benefit that is provided from the District’s maintenance activities cannot be funded via property owners’ assessments.
Based upon the City’s General Plan, the streets within the City are classified into one of the following categories: freeway, expressway, arterial, collector or local streets. The landscaping improvements are primarily located along N McCarthy Boulevard and Ranch Drive and situated within the public rights-of- way. The portion of the maintained landscaping that is located along N McCarthy Boulevard (classified as an arterial street) provides some general benefit to pass-through traffic.
Arterial streets are intended to provide a higher degree of mobility and generally serve longer vehicle trips.
The landscape improvements within the District boundaries not only serve the parcels in the immediate vicinity, but persons who live outside of the District and are passing by. The City’s most recent traffic study7 completed in 2016 does not identify the percentage of traffic, which is pass-through traffic, but it does provide an estimated number of daily trips for N McCarthy Boulevard at the entrance of the District.
However, the daily trip count estimate is lower than the trip count utilized in the 2015 findings report. This would not be expected with the increase in development to this area. Therefore, In the absence of a more recent reading of traffic along N. McCarthy Boulevard, the 2015 average number of daily trips of 35,050 per the General Plan has been utilized for the base trip count.
In order to account for the estimated increase in daily average trips as a result of the increased development, the City commissioned a traffic study for each new development. Per the traffic studies, it is estimated there will be an increase of 9,156 average daily trips. Adding this increase to the 35,050 previously identified above, the estimated number of average vehicles per day is 44,206 as shown below.
Street Name
Average Number of
Vehicles per Day
N McCarthy Boulevard – between SR 237 and Ranch Drive 44,206
Before the determination and allocation of the percentage of special and general benefit for the District can be made, the estimated pass-through traffic must be computed. The pass-through trips are vehicles driving along the maintained streets for a portion of their trips, but not working, shopping or conducting business in the District or benefiting from the landscaping improvements in place.
Research consistently shows that developments with multiple land uses that make walking safe and convenient and are near other development, allow residents and workers to drive significantly less if they choose. While this District is not a mixed-use development, there are multiple land uses adjacent to one another. Therefore, treating this development area as though the uses were separated and accessible only by car would result in inflated trip counts in comparison to conventional, single-use developments.
In lieu of having a comprehensive traffic study that identifies the pass-through traffic, the estimated number of special benefit trips for each parcel has been determined using the average daily trips according
7 City of Milpitas. (2016 Traffic Study). Retrieved from City’s Assistant Traffic Engineer
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Fiscal Year 2025/26 – LLMAD No. 95-1 Engineer’s Report 10 to the ITE Trip Generation Report, 9th Edition8 and the 2010 NCHRP Report 684 Enhancing Trip Capture Estimation for Mixed-use Developments9.
Utilizing the ITE Trip Generation Report, each parcel within the District was assigned an average daily number of special benefit trips using the parcel’s land use, building size or number of units. Further, to ensure the number of trips generated by the parcels has not been overstated, the percentage of total trips that are made internally within the development has been considered. Using the 2010 NCHRP Report 684 Enhancing Trip Capture Estimation for Mixed-Use Developments, the total special benefit trips have been reduced by approximately 31% (19,258 trips) to account for internal trips between the various businesses within the District. The total number of special benefit trips is therefore 42,864 as shown below.
Property Type Combined Trip Generations
Retail (ITE Land Uses 815, 820, 869) 24,978.76
Office (ITE Land Uses 710, 714, 750) 15,832.41
Industrial/Warehousing (ITE Land Uses
140, 150, 151) 8,660.43
Fast-Food Restaurant w/ drive thru (ITE
Land Use 934) 3,925.30
Gas Station (ITE Land Use 945) 3,758.16
Restaurant (ITE Land Uses 931, 932) 3,710.03
Hotel (ITE Land Use 310) 1,256.82
Total Trips 62,121.92
Internal Trip Reduction1 (19,257.79)
Total Adjusted Special Benefit Trips 42,864.12
(1) The internal trip rate percentage was calculated by using the NCHRP 684 Internal Rate Capture Estimation Tool.10
The total of all special benefit trips was removed from the average number of vehicles per day traveling within the District to estimate the number of pass-through trips daily.
Street Name
Average Number
of Vehicles
per Day
Less:
Estimated Special
Benefit Trips
Estimated Number
of Pass
Through Trips
Estimated %
General
Benefit
McCarthy Blvd. 44,206 42,864 1,342 3.04%
Based on the above calculations, the general benefit portion of the improved aesthetics, increased safety, and economic activity benefits resulting from the landscaping improvements is estimated to be 3.04%.
Pass-thru Vehicle General Benefit 3.04%
8 Trip Generation, 9th Edition: An Informational Report of the Institute of Transportation Engineers. (2012) Washington, DC: Institute of Transportation Engineers.
9 Bochner, Brian S., Hooper, Kevin, Sperry, Benjamin and Dunphy, Robert. National Cooperative Highway Research Program, Transportation Research Board of National Academies (2011). NCHRP Report 684 Enhancing Trip Capture Estimation for Mixed - Use Developments. Retrieved from onlinepubs.trb.org/onlinepubs/nchrp/nchrp_rpt_684.pdf 10 Ibid.
City of Milpitas
Fiscal Year 2025/26 – LLMAD No. 95-1 Engineer’s Report 11 The commonly accepted distance people will walk for public transportation, goods and services is one- quarter mile.11 However, based on the location of the District, and given that it is bounded by State Route 880 and 237, and Coyote Creek, there is not an efficient or practical means of walking into the District.
Although unlikely, a person may decide to use the paths within the District, and as such the general benefit portion of the improved aesthetics, increased safety, and economic activity benefits resulting from the landscaping improvements is estimated to be 1.00%.
Pass-thru Walking General Benefit 1.00%
An estimated 1% of all US trips are made by bicycle12. Although the District is bounded by State Route 880 and 237, and Coyote Creek, there is a bike lane on N McCarthy Boulevard and a bike path along Coyote Creek13. According to the National Household Travel Surveys, 49% of bike trips are for recreation, exercise, and sports14. As result of the District maintenance activities, there will be a level of general benefit to bicycle traffic that is not associated with property in the District. As such the general benefit portion of the improved aesthetics, increased safety, and economic activity benefits resulting from the landscaping improvements is estimated to be .50%, rounded up to 1.00%.
Pass-thru Biking General Benefit 1.00%
Collective District-Wide General Benefit
Since the District is comprised of improved aesthetics, safety, and economic activity benefits resulting from the collective landscaping improvements, the activity of both pedestrians and vehicles must be addressed in a collective form rather than independently. The sum of the calculated general benefits is the total general benefit related to vehicle, walking, and biking pass-thru traffic. This general benefit result is provided in the table below:
Pass-thru Vehicle General Benefit 3.04%
Pass-thru Walking General Benefit 1.00%
Pass-thru Biking General Benefit 1.00%
Total General Benefit 5.04%
The general benefit, which is the percentage of the total budget that must be funded through sources other than assessments, is 5.04%. The special benefit then, which is the percentage of the budget that may be funded by assessments, is 95.00%. This general benefit percentage is in line with the level of general benefit determined by the assessment engineer at formation of the District (less than 10%).
11 Walkscore. (2014). Walk Score Methodology. Retrieved from http://www.walkscore.com/methodology.shtml 12 U.S Department of Transportation. Federal Highway Administration. (2011). Summary of Travel Trends: 2009 National Household Travel Survey. (Report No. FHWA-PL-11-022). Retrieved from http://nhts.ornl.gov 13 City of Milpitas. (2002). General Plan. Retrieved from http://www.ci.milpitas.ca.gov 14 Pucher, J., Buehler R., Meron, F., and Bauman, A. American Journals of Public Health, Supplement 1, Vol 101, No S1 (2011).
Walking and Cycling in the United States, 2001-2009: Evidence from the National Household Travel Surveys. Retrieved from http://www.ncbi.nlm.nih.gov/pubmed/21551387
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Fiscal Year 2025/26 – LLMAD No. 95-1 Engineer’s Report 12
4.5 Special Benefit Trips
The detailed breakdown of the estimated special benefit trips for each parcel in the District is shown in the following table.
Assmt ID
Assessor’s
Parcel
Number Land Use Description Acreage
Gross
Leasable
Area
Average
Trip Rate1
Estimated # of
Daily Special
Benefit Trips2
1-1A-1 022-54-016 710 - General office 1.05 8,500 11.03 93.76 1-1A-2 022-54-017(3) 310 – Hotel 3.29 83,310 8.17 680.64 1-1A-3 022-54-018(3) 310 – Hotel 2.31 70,524 8.17 576.18 1-1A-4 022-54-019 934 - Fast Food 0.19 0.00 496.12 0.00 1-1B 022-54-008 934 - Fast Food 0.78 2,912 496.12 1,444.70 1-2 022-54-002 820 - Shopping Center 0.58 5,600 42.70 239.12 1-3 022-54-003 932 - High Vol. Restaurant 1.02 5,465 127.15 694.87 1-4A 022-54-009 869 - Home Superstore 8.47 86,250 20.00 1,725.00 1-4B 022-54-012 820 - Shopping Center 3.02 15,000 42.70 640.50 1-4C 022-54-013 820 - Shopping Center 0.23 10,000 42.70 427.00 1-4D 022-54-015 931 - Quality Restaurant 1.78 8,285 89.95 745.24 1-4E 022-54-014 932 - High Vol. Restaurant 0.64 3,710 127.15 471.73 1-4F 022-54-011 820 - Shopping Center 1.31 9,100 42.70 388.57 1-4G 022-54-010 931 - Quality Restaurant 1.03 7,476 89.95 672.47 2-1 022-53-001 931 - Quality Restaurant 0.75 6,500 89.95 584.68 2-2 022-53-002 820 - Shopping Center 1.23 15,020 42.70 641.35 2-3 022-53-003 820 - Shopping Center 0.76 12,000 42.70 512.40 2-4 022-53-004 934 - Fast Food 0.6 2,000 496.12 992.24 2-5 022-53-005 934 - Fast Food 0.74 3,000 496.12 1,488.36 2-6 022-53-006 820 – Shopping Center 1.19 51,250 45.04 2,308.30 2-7 022-53-007 820 - Shopping Center 21.92 187,134 42.70 7,990.62 3 022-29-016 815 - Discount Superstore 14.56 125,000 50.75 6,343.75 4-1A-1 022-56-005 714 - Corp Headquarters 2.04 115,753 7.98 923.71 4-1A-2 022-56-006 714 - Corp Headquarters 2.06 174,483 7.98 1,392.37 4-1A-3 022-56-007 714 - Corp Headquarters 2.07 174,483 7.98 1,392.37 4-1A-4 022-56-008 Undeveloped 34.52 - - -
4-1A-5 022-56-009 Parking Lot 24.32 - - -
4-1B 022-29-037 Undeveloped 6 - - -
5-1A-1 022-29-034 750 - Office Park 36.49 572,660 11.42 6,539.78 5-2A-1 022-29-035 750 - Office Park 31.31 480,772 11.42 5,490.42 5-3A-1 022-29-040 150 – Warehousing/710
General Office
15.55 313,978 8.87 2,784.67
5-3A-2 022-29-041 931 – Quality Restaurant 0.14 6,015 89.95 541.05 5-3A-3 022-29-042 150 – Warehousing/710
General Office 6.94 136,632 8.87 1,211.79
5-3A-4 022-29-043 150 – Warehousing/710
General Office 7.36 122,208 8.87 1,083.86
5-3A-5 022-29-044 140 - Manufacturing and 710
General Office 7.73 131,331 8.87 1,164.77
5-3B-1A 022-30-054 140 - Manufacturing and 710
General Office 5.63 99,576 8.87 883.14
5-3B-2 022-30-038 Undeveloped 10 - - -
5-3B-3 022-30-039 Undeveloped 5 - - -
5-3C 022-30-0354 Pump Station 0.19 - - 1.00
City of Milpitas
Fiscal Year 2025/26 – LLMAD No. 95-1 Engineer’s Report 13 Assmt ID
Assessor’s
Parcel
Number Land Use Description Acreage
Gross
Leasable
Area
Average
Trip Rate1
Estimated # of
Daily Special
Benefit Trips2
5-5A-1 022-30-055 815 - Discount Superstore 5.6 74,131 50.75 3,762.15 5-5A-2 022-30-056 915 – Gasoline/Service Station 0.59 3,182 1,181.07 3,758.16 5-5A-3 022-30-057 151 – Mini-Warehouse 3.15 114,707 13.34 1,530.19 5-6 022-30-041 Open Space 0 - - -
5-7 022-30-0494 Sewer Pump Station 9.12 8,500 11.03 1.00 Total Estimated Daily Special Benefit Trips 62,121.92
Internal Trip Reduction5 (19,257.79)
Total Special Benefit Trips 42,864.12
(1) Average Trip Rate per Day is from the Institute of Traffic Engineer’s, Trip Generation Report. 15 (2) Average Number of Special Benefit Trips per Day is the Average Trip Rate times each 1,000 square feet of gross leasable area. (3) Average Number of Special Benefit Trips per Day is the Average Trip Rate times number of hotel rooms for this parcel. (4) Pump Station trips are an estimate.
(5) The internal trip rate percentage was calculated by using the NCHRP 684 Internal Rate Capture Estimation Tool. 16
15 Trip Generation, 9th Edition: An Informational Report of the Institute of Transportation Engineers. (2012) Washington, DC: Institute of Transportation Engineers.
16 Bochner, Brian S., Hooper, Kevin, Sperry, Benjamin and Dunphy, Robert. National Cooperative Highway Research Program, Transportation Research Board of National Academies (2011). NCHRP Report 684 Enhancing Trip Capture Estimation for Mixed - Use Developments. Retrieved from onlinepubs.trb.org/onlinepubs/nchrp/nchrp_rpt_684.pdf
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Fiscal Year 2025/26 – LLMAD No. 95-1 Engineer’s Report 14
5. METHOD OF ASSESSMENT
5.1 Introduction
The special benefits that accrue to the properties in the District are limited to those properties that abut an improved public street or which have been obligated by issuance of bonds for necessary public improvements (the “Benefited Parcels”). Other properties in the District receive only a general benefit from the work of the improvements, and there is also some general benefit that accrues to the community as a whole. As outlined in Section 4, the total amount of general benefit from the improvements is determined to be 5.04%.
The Benefited Parcels receive a special benefit proportionate to their net acreage and thus they are assessed on the basis of total net acreage for all costs associated with the maintenance and installation of the District’s improvements, with the following exceptions:
• Of the 9.12 acres of parcel 022-30-049 (sewer pump station), 5.51 acres is the pump station and is not assessable. The remaining 3.61 acres does not benefit from landscaping as much as other Benefited Parcels because it is dedicated to municipal sanitary sewer and storm facilities use and will not otherwise be developed. Therefore, it is assigned a special benefit equal to 50% of other Benefited Parcels.
• Parcel 022-30-035 (storm pump station) does not benefit from landscaping as much as other Benefited Parcels because it is dedicated to municipal sanitary sewer and storm facilities use and will not otherwise be developed. Therefore, it is assigned a special benefit equal to 50% of other Benefited Parcels.
• Parcel 022-29-037 and parcel 022-30-041 are dedicated to open space and therefore do not receive special benefit from the maintenance and improvements.
5.2 Method of Assessment Spread
The amount of assessment levied on each Benefited Parcel in the District, for Fiscal Year 2025/26, is $0.0381 per square foot. The assessment rate was determined by taking the Fiscal Year 2025/26 Net Amount to be assessed ($448,957) divided by the total net square footage of the District (11,794,540 sq. ft.).
The maximum assessment rate for Fiscal Year 2025/26 is approximately $0.0572, which is a preliminary number. Each year the maximum assessment rate per square foot is increased by the percentage change from April 1st of the prior year to April 1st of the current year in the U.S. Department of Labor, Bureau of Labor Statistics, Consumer Price Indexes, Pacific Cities and U.S. City Average, San Francisco-Oakland- Hayward. The April 1, 2025 CPI was not available at the time of writing of this report. For purposes of this report, the CPI increase was estimated by using the February 1, 2025 CPI.
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Fiscal Year 2025/26 – LLMAD No. 95-1 Engineer’s Report 15
5.3 Maximum Assessment Rates
The following table provides the historical maximum assessment rate for Fiscal Year 2001/02 through the current fiscal year:
Fiscal Year CPI Percentage Increase(1) Assessment Rate Range(2) 2001/02 189.1 N/A $0.0120 $0.0300
2002/03 193.0 2.06% 0.0122 0.0306
2003/04 197.3 2.23% 0.0125 0.0313
2004/05 198.3 0.51% 0.0126 0.0315
2005/06 202.5 2.12% 0.0129 0.0321
2006/07 208.9 3.16% 0.0133 0.0331
2007/08 215.842 3.32% 0.0137 0.0342
2008/09 222.074 2.89% 0.0141 0.0352
2009/10 223.854 0.80% 0.0142 0.0355
2010/11 227.697 1.72% 0.0144 0.0361
2011/12 234.121 2.82% 0.0149 0.0371
2012/13 238.985 2.08% 0.0152 0.0379
2013/14 244.675 2.38% 0.0155 0.0388
2014/15 251.495 2.79% 0.0160 0.0399
2015/16 257.622 2.44% 0.0163 0.0409
2016/17 264.565 2.70% 0.0168 0.0420
2017/18 274.589 3.79% 0.0174 0.0436
2018/19 283.422 3.22% 0.0180 0.0450
2019/20 294.801 4.01% 0.0187 0.0468
2020/21 298.074 1.11% 0.0189 0.0473
2021/22 309.419 3.81% 0.0196 0.0491
2022/23 324.878 5.00% 0.0206 0.0515
2023/24 338.496 4.19% 0.0215 0.0537
2024/25 351.247 3.77% 0.0223 0.0557
2025/26 354.432 2.69% (3) 0.0229 0.0572
(1) Percentage increase from April 1 of the prior year to April 1 of the current year in the US Department of Labor, Bureau of Labor Statistics, Consumer Price Indexes, Pacific Cities and US City Average, San Francisco-Oakland-Hayward. (2) The left and right column indicate the minimum and maximum assessment rate, respectively. (3) The April 1, 2025 CPI was not available at the time of writing of this report. The Fiscal Year 2025/26 CPI increase was estimated using the February 1, 2025 CPI.
5.4 Appeals
Any property owner who feels that the amount of their assessment is in error as a result of incorrect information being used to apply the foregoing method of spread may file an appeal with the Finance Director of the City. Any such appeal is limited to the correction of an assessment during the current or, if before July 1, the upcoming fiscal year. Upon the filing of any such appeal, the Finance Director shall promptly review the information provided by the property owner and if he/she finds that the assessment should be modified, he/she shall have the authority to make the appropriate changes in the assessment roll. If any such changes are provided after the assessment roll has been filed with the County for collection, the Finance Director is authorized to refund to the property owner the amount of any approved reduction.
City of Milpitas
Fiscal Year 2025/26 – LLMAD No. 95-1 Engineer’s Report 16
6. ASSESSMENT DIAGRAM
The following page provides a copy of the assessment diagram of the District.
City of Milpitas
Fiscal Year 2025/26 – LLMAD No. 95-1 Engineer’s Report 17
7. ASSESSMENT ROLL
Assessor’s parcel identification, for each lot or parcel within the District, shall be based on the Santa Clara County Assessor’s secured roll data for the applicable year in which this report is prepared and is incorporated herein by reference.
A listing of assessor’s parcels assessed within the District for Fiscal Year 2025/26, along with the assessment amounts, is on file in the office of the City Clerk and incorporated herein by reference. Based on County Assessor’s secured roll data, current assessor’s parcels, including corrected and/or new assessor’s parcels, will be submitted and/or resubmitted to the Santa Clara County Auditor/Controller. The annual assessment amount to be levied and collected for the resubmitted parcel(s) shall be determined in accordance with the method of apportionment and assessment rate approved in this report. Therefore, if a single assessor’s parcel has a status change in development, other land use change, or subdivides into multiple assessor’s parcels, the assessment amounts applied to each of the new assessor’s parcels shall be recalculated and applied according to the approved method of apportionment and assessment rate rather than a proportionate share of the original assessment amount.
City of Milpitas
LLMAD No. 95-1
Final Billing Detail Report for Fiscal Year 2025/26
APN Situs Address Net Square Foot Fiscal Year 2025/26 Levy 022-29-016 301 RANCH DR 634,234 $24,141.98
022-29-034 430 N MCCARTHY BLVD 1,589,504 60,504.18
022-29-035 820 N MCCARTHY BLVD 1,363,864 51,915.20
022-29-037 565 N MCCARTHY BLVD 0 0.00
022-29-040 407N N N MCCARTHY BLVD 677,532 25,790.12
022-29-041 507N N N MCCARTHY BLVD 43,691 1,663.06
022-29-042 607N N N MCCARTHY BLVD 302,350 11,508.88
022-29-043 707 N MCCARTHY BLVD 320,732 12,208.60
022-29-044 807 N MCCARTHY BLVD 336,545 12,810.50
022-30-035 4,138 157.50
022-30-038 435,600 16,581.02
022-30-039 1207 N MCCARTHY BLVD 217,800 8,290.50
022-30-049 78,626 2,992.86
022-30-054 907 N MCCARTHY BLVD 245,330 9,338.42
022-30-055 1645 N MCCARTHY BLVD 243,936 9,285.36
022-30-056 1605 N MCCARTHY BLVD 25,875 984.90
022-30-057 1585 N MCCARTHY BLVD 137,040 5,216.38
022-30-058 0 0.00
022-30-059 0 0.00
022-53-001 275 RANCH DR 32,670 1,243.56
022-53-002 179 RANCH DR 53,579 2,039.46
022-53-003 125 RANCH DR 33,106 1,260.14
022-53-004 81 RANCH DR 26,136 994.86
022-53-005 41 RANCH DR 32,234 1,226.98
022-53-006 63 RANCH DR 51,836 1,973.14
022-53-007 11 RANCH DR 954,835 36,345.62
022-54-002 74 RANCH DR 25,265 961.68
022-54-003 84 RANCH AVE 44,431 1,691.26
022-54-008 50 RANCH DR 33,977 1,293.32
022-54-009 120 RANCH DR 368,953 14,044.12
022-54-010 110 RANCH DR 44,867 1,707.84
022-54-011 170 RANCH DR 57,064 2,172.10
022-54-012 200 RANCH DR 131,551 5,007.46
022-54-013 212 RANCH DR 10,019 381.36
022-54-014 190 RANCH DR 27,878 1,061.18
022-54-015 260 RANCH DR 77,537 2,951.42
022-54-016 12 RANCH DR 46,174 1,757.58
022-54-017 30 RANCH RD 143,312 5,455.16
022-54-018 40 RANCH DR 100,624 3,830.20
022-54-019 8,276 315.02
022-56-005 115 N MCCARTHY BLVD 88,427 3,365.94
022-56-006 135 N MCCARTHY BLVD 89,734 3,415.68
Slight variances may occur due to rounding
Copyright © 2013 by NBS Page 1 of 2 04/07/2025 11:36:24AM
City of Milpitas
LLMAD No. 95-1
Final Billing Detail Report for Fiscal Year 2025/26
APN Situs Address Net Square Foot Fiscal Year 2025/26 Levy 022-56-007 155 N MCCARTHY BLVD 90,169 3,432.26
022-56-010 205 N MCCARTHY BLVD 1,489,899 56,712.72
022-56-011 1,075,192 40,926.98
11,794,540 $448,956.5045 Accounts
Slight variances may occur due to rounding
Copyright © 2013 by NBS Page 2 of 2 04/07/2025 11:36:24AM
CITY OF MILPITAS
AGENDA REPORT
(AR)
Item Title: Conduct a Public Hearing and Adopt a Resolution Confirming the Assessment and Ordering the Levy for the Landscaping and Lighting Maintenance Assessment District No. 98-1, Sinclair Horizon in Fiscal Year 2025-26 (Staff Contact: Christian Di Renzo, Public Works Director, 408-586-2602; and Michael Silveira, City Engineer, 408-586-3303)
Category: Public Hearings-Community Development
Meeting Date: 6/3/2025
Recommendation: (1) Conduct a public hearing; and (2) adopt a resolution confirming the assessment and ordering the levy for Landscaping and Lighting Maintenance Assessment District No. 98-1, Sinclair Horizon in Fiscal Year 2025-26.
BACKGROUND:
In 1998, the City Council 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) (Act) to establish the Landscaping and Lighting Maintenance Assessment District 98-1 (LLMD 98-1 Sinclair Horizon). It provides for the maintenance and improvement of public landscaping, irrigation systems, and pedestrian walking path adjacent to Sinclair Frontage Road and Los Coches Creek abutting the Sinclair Horizon residential subdivision areas as shown on the attached location map (Attachment A).
On March 4, 2025, the City Council adopted a resolution initiating proceedings for the annual levy and collection of assessments and ordering the preparation of the Annual Engineer’s Report. Staff retained the consulting firm NBS for the purpose of assisting with the annual levy assessment, and the preparation and filing of the report required pursuant to Section 22622 of the Act. On May 6, 2025, the City Council adopted Resolution No. 9412 approving the Annual Engineer’s Report and Resolution No. 9413 declaring its intention to levy and collect the assessment and provide notice of a public hearing to be held on June 3, 2025, for LLMD 98-1 Sinclair Horizon in Fiscal Year (FY) 2025-26.
ANALYSIS:
An annual public hearing is required by the Act to adopt a resolution confirming the assessment and ordering the levy for the LLMD 98-1 Sinclair Horizon in FY2025-26 (Attachment B). According to the FY2025-26 Annual Engineer’s Report (Attachment C), the total assessment in FY2025-26 is $538.41 per lot which is under the maximum assessment rate of $591.00 per lot. Even though the US Department of Labor’s Consumer Price Index for San Francisco-Oakland-Hayward area indicates there was a CPI increase of 2.69% between February 2024 to February 2025, staff recommended the assessment rate for FY 2025-26 to remain the same as FY2024-25 as there are sufficient funds in the operating reserves of the current budget.
Staff recommend City Council to open the public hearing, receive any comments or written protests, and move to close the hearing following any testimony and adopt a resolution confirming the assessment and ordering the levy for the LLMD 98-1 Sinclair Horizon in FY2025-26.
POLICY ALTERNATIVE(S):
Alternative 1: Do not adopt a resolution confirming the assessment and ordering the levy for LLMD 98-1 Sinclair Horizon in FY 2025-26.
Pros: None.
Cons: If the City Council does not adopt the Resolution according to the Act, the City will be unable to collect assessments for LLMD 98-1 Sinclair Horizon.
Reason not recommended: Staff recommends approving the Resolution confirming the assessment and ordering the levy for FY2025-26 to allow for the continued maintenance and service of FISCAL IMPACT:
The levy and collection of assessments provides the City with the needed resources for the maintenance and improvements of the LLMD 98-1 Sinclair Horizon. The FY2025-2026 maintenance budget is estimated to be $66,738.00. The City maintains an operating reserve, not to exceed the estimated maintenance costs, prior to December 10th of the fiscal year or when it expects to receive its apportionments of special assessments from the County, whichever comes first.
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):
A levy and collection of assessments 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. The action is a fiscal activity of the City government or an action to create a City government funding mechanism that does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment and is not a project pursuant to Cal. Code of Regs., tit. 14, § 15378. To the extent the funds generated by this levy and collection would be used to fund any currently contemplated projects, such projects entail the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use and is exempt from CEQA pursuant to Cal. Code Regs., tit. 14, § 15301.
ATTACHMENT(S):
(a) Location Map
(b) Resolution Confirming the Assessment and Ordering the Levy (c) FY2025-26 Annual Engineer’s Report for LLMD No. 98-1 Sinclair Horizon
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, CONFIRMING THE
ASSESSMENT AND ORDERING THE LEVY FOR THE LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT NO. 98-1 FOR FISCAL YEAR 2025-26
WHEREAS, the City Council previously completed its proceedings in accordance with and pursuant to the Landscaping and Lighting Act of 1972, Part 2, Division 15 of the California Streets and Highways Code (commencing with Section 22500) (the “Act”) to establish the Landscaping and Lighting Maintenance Assessment District (the “Assessment District”); and
WHEREAS, the City Council has retained NBS for the purpose of assisting with the annual levy of the Assessment District, and the preparation and filing of an Annual Report; and WHEREAS, the City Council has, by previous resolution, declared its intention to hold a Public Hearing concerning the levy and collection of assessments within the Assessment District; and WHEREAS, a Public Hearing has been held and concluded and notice thereof was duly given in accordance with Section 22626 of the Act; and
WHEREAS, at the time and place specified in the Resolution of Intention the City Council conducted such hearing and considered all objections to the assessment.
NOW, THEREFORE, the City Council of the City of Milpitas hereby finds, determines, and resolves as follows:
1. Confirmation of Assessment and Diagram: The City Council hereby confirms the assessment and the diagram as is described in full detail in the Annual Report on file with the City Clerk. All protests not sustained by majority vote of the City Council at the hearing are overruled.
2. Levy of Assessment: Pursuant to Section 22631 of the Act, the adoption of this resolution shall constitute the levy of an assessment for the fiscal year commencing July 1, 2025, and ending June 30, 2026.
3. Ordering of the Levy: The City Council hereby orders NBS to prepare and submit the levy of assessments to Santa Clara County for placement on the Fiscal Year 2025-26 secured property tax roll.
PASSED AND ADOPTED this _____ day of ___________, 2025, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST: APPROVED:
_____________________________ _____________________________ Suzanne Guzzetta, City Clerk Carmon Montano, Mayor
APPROVED AS TO FORM:
_____________________________
Christopher Creech, Acting City Attorney
nbsgov.com
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Fiscal Year 2025/26 Engineer’s Report For:
Landscaping and Lighting Maintenance
Assessment District No. 98-1
May 2025
CITY OF MILPITAS
LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT NO. 98-1 455 East Calaveras Boulevard
Milpitas, California 95035
(408) 586-3000
CITY COUNCIL
Carmen Montano, Mayor
Gary Barbadillo, Vice Mayor
Evelyn Chua, Council Member
Hon Lien, Council Member
William Lam, Council Member
CITY STAFF
Michael Silveira, PE, City Engineer
Luz Cofresi-Howe, Finance Director/Risk Manager
Christian Di Renzo, Public Works Director
NBS
Tim Seufert, Client Services Director
Amanda Welker, Project Manager
Tom Zetz, Administrator
TABLE OF CONTENTS
1. Engineer’s Letter ............................................................................................................. 1
2. Plans and Specifications .................................................................................................. 3
2.1 Location of Improvements ........................................................................................ 3
2.2 Landscaping Improvements ...................................................................................... 3
2.3 Capital Improvements ............................................................................................... 4
2.4 Overhead ................................................................................................................... 4
3. Estimate of Costs ............................................................................................................ 5
3.1 District Budget ........................................................................................................... 5
4. Special and General Benefit ............................................................................................ 7
4.1 Introduction ............................................................................................................... 7
4.2 Special Benefits Identified ......................................................................................... 7
4.3 General Benefits Identified ....................................................................................... 8
4.4 Quantification of Benefit ........................................................................................... 8
5. Method of Assessment ................................................................................................. 13
5.1 Method of Assessment Spread ............................................................................... 13
5.2 Maximum Assessment Rates .................................................................................. 14
5.3 Appeals .................................................................................................................... 14
6. Assessment Diagram ..................................................................................................... 15
7. Assessment Roll ............................................................................................................ 16
City of Milpitas
Fiscal Year 2025/26 – LLMAD No. 98-1 Engineer’s Report 1
1. ENGINEER’S LETTER
WHEREAS, in 1998, the City Council of the City of Milpitas (the “City”), State of California, under the Landscaping and Lighting Act of 1972 (the “Act”), created the City of Milpitas Landscaping and Lighting Maintenance Assessment District No. 98-1 (the “District”) to provide for the continued maintenance, operation, and administration of various improvements within the boundaries of the District; and WHEREAS, the City Council has directed NBS to prepare and file a report for Fiscal Year 2025/26 in accordance with Chapter 1, Article 4 of the Act presenting plans and specifications describing the general nature, location, and extent of the improvements to be maintained; an estimate of the costs to maintain, operate, and service the improvements for the District for the referenced fiscal year; a diagram for the District showing the area and properties to be assessed; and an assessment of the estimated costs to maintain and service the improvements, stating the net amount to be assessed upon all assessable lots or parcels within the District in proportion to the special benefit received.
NOW THEREFORE, the following assessments have been calculated in accordance with the assessment methodology adopted and approved by the City Council at the time of District formation, and are made to cover the portion of the estimated costs of maintenance, operation, and servicing of the improvements, to be paid by the assessable real property within the District in proportion to the special benefit received:
District Parcels
2025/26
Maximum Assessment
Rate per Lot(1)
2025/26
Actual Assessment
Rate per Lot
2025/26
Net Amount to be
Assessed(2)(3)
LLMAD 98-1 98 $591.00 $538.41 $52,763.20
(1) The April 1, 2025 Consumer Price Index (CPI) provided by the U.S. Bureau of Labor Statistics was not available at the time of writing of this report. The Fiscal Year 2025/26 CPI increase was estimated using the February 1, 2025 CPI. (2) Amounts placed on the tax roll include the 1% Santa Clara County Collection Fee. (3) This amount is only an estimate and does not reflect the final billed amount with rounding adjustments. Refer to Section 7 for the rounded figure.
I identified all parcels which will have a special benefit conferred upon them from the improvements described in District’s Plans and Specifications section of this Engineer’s Report (the “Benefited Parcels”).
For particulars as to the identification of said parcels, reference is made to the Assessment Diagram, a copy is on file in the office of the City Clerk.
I have assessed the costs and expenses of the improvements upon the Benefited Parcels. In making such assessment:
a. The proportionate special benefit derived by each Benefited Parcel from the improvements was determined in relationship to the entirety of the maintenance costs of the improvements; b. No assessment has been imposed on any Benefited Parcel which exceeds the reasonable cost of the proportional special benefit conferred on such parcel from the improvements; and c. Any general benefits from the improvements have been separated from the special benefits and only special benefits have been assessed.
City of Milpitas
Fiscal Year 2025/26 – LLMAD No. 98-1 Engineer’s Report 3
2. PLANS AND SPECIFICATIONS
The District provides for the continued administration, maintenance, operation, and servicing of various improvements located within the public right-of-way and dedicated easements within the boundaries of the District.
2.1 Location of Improvements
The District is located in the City of Milpitas, bounded on the east by Sinclair Frontage Road, on the west by Berryessa Creek, and on the north by Los Coches Street. The improvements maintained include public landscaping and irrigation improvements, including jogging paths, planter walls, grass berms, and ornamental planting, which are primarily situated within the public rights-of-way and dedicated public easements within the District.
2.2 Landscaping Improvements
The landscaping and irrigation improvements were installed within the District in order to enhance the overall visual appearance for adjacent parcels. The improvements consist of the maintenance and operation of any or all public landscaping and irrigation improvements adjacent to curbs, including asphalt concrete jogging paths, planter walls, grass berms, and appurtenant irrigation systems; ornamental planting including lawns, shrubs, and trees, including necessary repairs, replacements, water, electric current, spraying, care, supervision, debris removal and all other items of work necessary and incidental for proper maintenance and operation thereof. The landscaping and irrigation improvements are collectively referred to as “landscaping improvements.” All such work will be performed in the following areas:
2.2.1 BERRYESSA CREEK
Due to the widening of the creek, improvements in Berryessa Creek were removed. Any improvements maintained in this reach (asphalt concrete jogging path, exercise equipment, planting, and irrigation) will no longer be maintained or improved.
2.2.2 LOS COCHES CREEK
1. A strip of land 812 feet long, 14 feet in width along the south bank of Los Coches Creek adjacent to Tract 9018. The improvements include an asphalt concrete jogging path, exercise equipment, planting, and irrigation.
2. A strip of land 5.5 feet wide within the Los Coches Street right-of-way between the back of sidewalk and the right-of-way along the south side of Los Coches Street between Berryessa Creek and Sinclair Frontage Road. The improvements include planting and irrigation.
City of Milpitas
Fiscal Year 2025/26 – LLMAD No. 98-1 Engineer’s Report 4
2.3 Capital Improvements
In 2023, the City completed the replacement of the irrigation controller and repairs of the irrigation system along portions of Los Coches Street and Sinclair Frontage Road. The City is planning to continue planting renovations in 2025/2026.
2.4 Overhead
In addition to the hard costs of maintaining the improvements mentioned above, the City will incur costs for staff time and expenses related to the management and maintenance of the improvements within the District. Staff time includes oversight and coordination of both City and contractor provided services, annual tax roll preparation, and addressing property owner questions and concerns. These activities are directly related to the maintenance of the improvements, and without them the improvements could not be efficiently completed or properly maintained on an ongoing basis.
City of Milpitas
Fiscal Year 2025/26 – LLMAD No. 98-1 Engineer’s Report 5
3. ESTIMATE OF COSTS
The estimated costs of maintenance and servicing of the improvements as described in the Plans and Specifications are summarized below.
3.1 District Budget
The Fiscal Year 2025/26 estimated cost budget for the maintenance and servicing of the improvements is as follows:
Description Fiscal Year 2025/26 Budget
Maintenance Staff(1) $32,085
Capital Equipment 0
Supplies 2,853
Utilities (Water, Electricity) 11,800
Reserve Fund 0
Capital Improvement Program 20,000
Maintenance Costs 66,738
NBS $4,200
City Staff District Administration 2,500
County Auditor-Controller Fee(2) 550
District Specific Costs $7,250
Total District Costs $73,988
General Benefit Contribution(3) (21,223)
Operating Reserve Contribution 0
Capital Improvement Fund Contribution 0
Net Amount to be Assessed $52,765
Total District Lots 98
Rate per Lot(4) $538.41
Maximum Rate Per Lot – 2025/26(5) $591.00
(1) The City’s Department of Public Works is the provider of Maintenance Services. (2) County Auditor-Controller Fee is currently 1% of the total levy submittal. (3) General Benefit Contribution is not applied to District Specific Costs, as these are special benefits to the District. (4) The Rate per Lot equals the Net Amount to be Assessed / Total District Lots. The Rate per Lot cannot exceed the maximum rate.
(5) The April 1, 20 25 CPI was not available at the time of writing of this report. The Fiscal Year 20 25/26 CPI increase was estimated by using the February 1, 2025 CPI.
City of Milpitas
Fiscal Year 2025/26 – LLMAD No. 98-1 Engineer’s Report 6
3.1.1 OPERATING RESERVE
It is the intent of the City to maintain an operating reserve which shall not exceed the estimated costs of maintenance and servicing of the improvements prior to December 10 of the fiscal year, or when the City expects to receive its apportionment of special assessments from the County, whichever is later. The operating reserve balance information for the District is as follows:
Estimated Fiscal Year Ending 6/30/2025 Operating Reserve Cash Balance $110,308 Operating Reserve Collection for Fiscal Year 2025/26 0
Estimated Fiscal Year Ending 6/30/2026 Operating Reserve Cash Balance $110,308
3.1.2 CAPITAL IMPROVEMENT BUDGET
The City completed the replacement of the irrigation controller and repairs of the irrigation system along portions of Los Coches Street and Sinclair Frontage Road in 2023. The City is planning to continue planting renovations in 2025/2026. As of March 31, 2025, the balance available for the Capital Improvement Project was $122,391.35. The City will utilize these funds, along with an annual collection of $20,000 via the District from Fiscal Year 2025/26 to Fiscal Year 2028/29, to finance the project.
City of Milpitas
Fiscal Year 2025/26 – LLMAD No. 98-1 Engineer’s Report 7
4. SPECIAL AND GENERAL BENEFIT
The improvements defined in Section 2 are expected to confer certain special benefits to parcels within the District. The special benefits are described in this section. Figures in this section are derived from a Special v. General Benefit Analysis performed in Fiscal Year 2014/15.
4.1 Introduction
Pursuant to Article XIIID, all parcels that receive a special benefit conferred upon them as a result of the installation, implementation and maintenance of the improvements, services and activities shall be identified, and the proportionate special benefit derived by each identified parcel shall be determined in relationship to the entire costs of the installation, implementation and maintenance of the improvements, services and activities.
Article XIIID, Section 4(a) of the California Constitution limits the amount of any assessment to the proportional special benefit conferred on the property. Proposition 218 requires that the City separate the general benefit from special benefit, so that only special benefit may be assessed to properties within the District. Furthermore, Article XIIID also provides that publicly owned properties must be assessed unless there is clear and convincing evidence that those properties receive no special benefit from the assessment.
4.2 Special Benefits Identified
The improvements described in Section 2 are expected to confer certain special benefits to parcels within the District. The special benefits conferred to property within the District can be grouped into two primary benefit categories: aesthetic benefit and safety benefit. The two district benefit categories are further expanded upon below.
• Improved Aesthetics: The aesthetic benefit relates to the increase in the overall aesthetics as a result of the ongoing maintenance, servicing and operation of the improvements within the District. Street landscaping improvements improve the livability, commercial activity, appearance and desirability for properties within the District. Regular maintenance ensures that the improvements do not reach a state of deterioration or disrepair so as to be materially detrimental to properties adjacent to or in close proximity to the improvements. The overall appeal of the District is enhanced when improvements are in place and kept in a healthy and satisfactory condition. Conversely, appeal decreases when improvements are not well-maintained, unsafe, or destroyed by the elements or vandalism. Streetscapes have a significant effect on how people view and interact with their community1. With streetscapes that are safe and inviting, people are more likely to walk, which can help reduce automobile traffic, improve public health, stimulate local economic activity and attract residents and visitors to the community2. • Increased Safety: Well maintained areas mitigate crime, especially vandalism, and enhance pedestrian safety. A recent study found that after landscape improvements were installed, there
1 Victoria Transport Policy Institute. (2011). Community Livability. Helping to Create Attractive, Safe, Cohesive Communities. Retrieved from http://www.vtpi.org/tdm/tdm97.htm.
2 Ibid.
City of Milpitas
Fiscal Year 2025/26 – LLMAD No. 98-1 Engineer’s Report 8 was a 46% decrease in crash rates across urban arterial and highway sites and a second study reviewed found a 5% to 20% reduction in mid-block crashes after trees and planters in urban arterial roads were put in place. In addition, there is less graffiti, vandalism, and littering in outdoor spaces with natural landscapes than in comparable plant-less spaces3. The Victoria Transport Policy Institute has found that streetscapes reduce traffic speeds and when combined with improved pedestrian crossing conditions can significantly reduce collisions4.
4.3 General Benefits Identified
Section 4 of Article XIIID of the California Constitution provides that once a local agency which proposes to impose assessments on property has identified those parcels that will have special benefits conferred upon them and upon which an assessment will be imposed, the local agency must next “separate the general benefits from the special benefits conferred,” and only the special benefits can be included in the amount of the assessments imposed.
General benefit is an overall and similar benefit to the public at large resulting from the maintenance of the District’s improvements provided by the assessments levied. The improvements to be maintained by the District are located within the District boundaries only. There will be no District maintenance activities provided for improvements located outside of the District boundaries.
The ongoing maintenance of the District improvements will provide aesthetic and safety benefits to the property within the District. However, it is recognized that the ongoing District maintenance activities will also provide a level of benefit to some property within proximity to the District, as well as individuals passing through. Therefore, the general benefit created as a result of the District maintenance activities has been considered.
4.4 Quantification of Benefit
As a result of the maintenance and operation of the improvements, there will be a level of general benefit to people that do not live in or intend to conduct business within the District. In order for property within the District to be assessed only for that portion of special benefits received from the district’s maintenance activities, general benefits provided by the ongoing maintenance of the improvements needs to be quantified. The amount of general benefit that is provided from the District’s maintenance activities cannot be funded via property owners’ assessments.
The landscaping improvements are primarily located along Los Coches Street and Sinclair Frontage Road and within the subdivision along Los Coches Creek and Berryessa Creek. A portion of the maintained landscaping provides some general benefit to pass-thru traffic. Per the City, there is 52,912 square feet of landscaping being maintained.
Los Coches Creek and Berryessa Creek
As result of the District maintenance activities, there will be a level of general benefit to pedestrians and vehicular traffic that are not associated with property in the District. As expressed by the Court in Beutz v.
3 Wolf, Kathleen L. (2010). Safe Streets – A Literature Review. In: Green Cities: Good Health (www.greenhealth.washington.edu). College of the Environment, University of Washington.
4 Victoria Transport Policy Institute. (2011). Community Livability. Helping to Create Attractive, Safe, Cohesive Communities. Retrieved from http://www.vtpi.org/tdm/tdm97.htm.
City of Milpitas
Fiscal Year 2025/26 – LLMAD No. 98-1 Engineer’s Report 9 County of Riverside (2010), “... courts of this state have long recognized that virtually all public improvement projects provide general benefits." A route beginning or ending with a parcel within the District does not include the “general public” for purposes of determining general benefit. The landscaping improvements along the south side of Los Coches Creek and Berryessa Creek are local in nature, however even though they are intended primarily for localized access, there is some portion of pedestrian traffic that may not be accessing the adjacent properties. The landscaping improvements are located adjacent to the backyard of homes, and access is only available by walking or bicycling. There is no vehicular access to these improvements.
The Summary of Travel Trends, 2009 National Household Travel Survey (NHTS) prepared by the U.S.
Department of Transportation Federal Highway Administration analyzed the number of person trips by various modes of transportations such as private vehicle, transit, walking or some other means of transportation. According to the Pacific Division data extracted from the 2009 NHTS database, of the annual 181,703 (in millions) total person trips, 21,252 (in millions) or 11.70% of those person trips were made by using walking as their mode of transportation, and 2,066 (in millions) or 1.14% of those person trips were made by bicycling5.
According to the U.S. Census Bureau (2010), the average household size in the City is 3.34 persons6. Based on this average household size, and considering there are 98 residential units within the District, there are approximately 327 people residing within the District boundaries. There are an estimated 163 residential units in close proximity, but outside of the District boundaries. Based on the City’s average household size, there are approximately 544 persons residing outside of the District boundaries, but have access to the landscaping improvements.
Community
Estimated Number
of Residential Units
Estimated
Number of Persons(1)
District 98 327
Sundrop Subdivision 83 277
Sinclair Renaissance Subdivision 80 267
Total Residential Population 261 871
(1) U.S. Census Bureau (2010) average household size in the City is 3.34 persons.7
In order to determine the estimated total number of persons who are within close proximity to the landscaping improvements, and would utilize walking or bicycling as their mode of transportation, we applied the 12.84% (11.70% walking, 1.14% bicycling) of person trips reported from the NHTS Pacific Division study, to the total nearby residential population (871). There are approximately 112 people within close proximity of the District that utilize walking or bicycling as their mode of transportation.
In order to determine the portion of the 112 persons that reside within the District, we applied the 2009 NHTS walking trip percentage (12.84%) to the District population (327). Approximately 42 people within the
5 U.S Department of Transportation. Federal Highway Administration. (2011). Summary of Travel Trends: 2009 National Household Travel Survey. (Report No. FHWA-PL-11-022). Retrieved from http://nhts.ornl.gov 6 U.S. Census Bureau. (2010). Profile of General Population and Housing Characteristics: 2010, 2010 Demographic Profile Data. Milpitas, C.A. Retrieved March 23, 2015, http://quickf acts.census.gov/qf d/states/06/0647766.html 7 Ibid.
City of Milpitas
Fiscal Year 2025/26 – LLMAD No. 98-1 Engineer’s Report 10 District boundaries use walking or bicycling as their primary mode of transportation. Therefore, the total surrounding neighborhood area population, located outside of the District boundaries, but in close proximity the landscaping improvements, that uses walking or bicycling as their primary mode of transportation is estimated to be 70 people.
Community
Estimated Number of
Persons
District 42
Sundrop Subdivision 36
Sinclair Renaissance Subdivision 34
Walking or Bicycling Population 112
In order to obtain a better picture of the overall level of general benefit provided by the landscaping improvements, the pedestrian traffic that utilizes walking or bicycling as the mode of transportation that will seek out and use the District improvements, but live outside of the District, must be considered. The 2009 NHTS further details the purposes of the reported walking (21,252 in millions) and bicycling (2,066 in millions) trips; based on the property types people entering the District would most likely do so for social or recreational activities.
The following details the number of walking and bicycling trips, based on the 2009 NHTS study, for each of the activities that are the most likely reasons people outside of the District would use the landscaping improvements:
Trip Purpose
Number of Walking or
Bicycling Trips (in millions)
Social/Recreational 6,442
Total 6,442
Of the total number of walking and bicycling trips reported, 6,442 (in millions) or 27.63% are for purposes that persons outside of the District may use the landscaping improvements. Applying this percentage (27.63%) to the number of people walking or bicycling as their mode of transportation and that reside outside of the District (70), there are approximately 19 people (general benefit) that may use the landscaping improvements, but do not reside within the District. Taking the 19 people that may walk or bicycle, but reside outside of the District, divided by total residential population with access to the landscaping improvements (871), the estimated percentage of persons, engaging in what is considered general benefit because they do not reside within the District, represents 2.21%.
Los Coches Street and Sinclair Frontage Road
The City does not have a study showing traffic volume along Los Coches Street and Sinclair Frontage Road along the District boundaries. The portion of the maintained landscaping that is located along Los Coches Street and Sinclair Frontage Road provides some general benefit to pass-through traffic. Before the determination and allocation of the percentage of special and general benefit for the District can be made, the estimated pass-through traffic must be computed. The pass-through trips are vehicles driving along the
City of Milpitas
Fiscal Year 2025/26 – LLMAD No. 98-1 Engineer’s Report 11 maintained streets within the District for a portion of their trips, but not living or conducting business in the District and benefiting from the landscaping improvements in place.
The Sundrop and Sinclair Renaissance residential communities are located directly across the street and next to the District, and vehicles entering and/or exiting these communities in all likelihood are passing by a portion of the landscaping improvements for a portion of their trip. In lieu of having a study that identifies the pass-through traffic, the estimated number of trips generated for each community has been calculated based on the number of units and average number of trips per dwelling unit.
Community
Number of
Residential Units(1)
Estimated Number of
Daily Vehicle Trips(2)
% of Total Daily
Vehicle Trips(3)
District 98 933.0 44.34%
Sundrop Subdivision 83 790.2 37.56%
Sinclair Renaissance Subdivision 80 380.8 18.10%
Total 261 2,104.0 100.00%
(1) Number of Residential Units is from the City’s Approved Projects map.8 (2) Per the ITE Trip Generation Report a single family residence generates an average of 9.52 trips per dwelling unit.9 (3) Number of daily trips has been reduced by 50% to account for vehicles entering and exiting the community from the opposite direction on Sinclair Frontage Road, and not driving along the portion of Los Coches Street and Sinclair Frontage Road with landscaping improvements maintained by the District.
As detailed above, based on the average number of daily vehicle trips generated for the communities in close proximity to the District, 1,171 (55.66%) are generated by residential units located outside of the District (general benefit).
All Locations and Landscaping Improvements – Residential Pass-thru Benefit The general benefit percentages determined in the previous sections for Los Coches Creek and Berryessa Creek (2.21%) and Los Coches Street and Sinclair Frontage Road (55.66%) were then applied to each corresponding location with landscaping improvements. The landscaping square footage being maintained by the District was provided by the City’s Public Works Department. The general benefit percentage for each street type was multiplied by the total square footage being maintained for such street. The general benefit square footage was summed for all street segments and divided into the total square footage of all landscaping maintenance. The result is the combined general benefit percentage. The following table details this calculation.
Street Name
Total Square
Footage
General Benefit
Percentage
General Benefit Square
Footage
Los Coches Creek 4,572 2.21% 101
Berryessa Creek 21,025 2.21% 465
Los Coches Street 24,747 55.66% 13,773
Sinclair Frontage 2,568 55.66% 1,429
Totals: 52,912 15,768
Landscaping General Benefit 29.80%
8 City of Milpitas. (2013). Approved Development Projects. Retrieved from http://www.ci.milpitas.ca.gov/government/planning/proj_approved.asp 9 Trip Generation, 9th Edition: An Informational Report of the Institute of Transportation Engineers. (2012). Washington, DC: Institute of Transportation Engineers.
City of Milpitas
Fiscal Year 2025/26 – LLMAD No. 98-1 Engineer’s Report 12 Based on the above calculations, the general benefit portion of the improved aesthetics and increased safety resulting from the landscaping improvements is estimated to be 29.80%.
Public at Large General Benefit
Given the location and nature of the improvements, it is very unlikely the public at large would seek out or use the landscaping improvements within the District. In addition, there are more direct routes to access the industrial complexes/businesses located to the south of the District than the 2 lane Los Coches Street and Sinclair Frontage Road. Nevertheless, it is perceivable that members of the public at large may pass- thru a portion of the landscaping improvements, even if it’s lost or leisure traffic. As such, general benefit of 2.00% has been assigned for the landscaping improvements to the public at large.
4.4.1 COLLECTIVE DISTRICT-WIDE GENERAL BENEFIT
Since the District is comprised of improved aesthetics and increased safety benefits resulting from the collective landscaping improvements, the activity of both pedestrians and vehicles, and the public at large must be addressed in a collective form rather than independently. The sum of the calculated general benefits is the total general benefit related to all pass-thru traffic. This general benefit result is provided in the table below:
Residential Pass-thru General Benefit 29.80%
Public at Large General Benefit 2.00%
Total General Benefit 31.80%
The general benefit, which is the percentage of the total budget that must be funded through sources other than assessments, is 31.80%. The special benefit then, which is the percentage of the budget that may be funded by assessments, is 68.20%.
City of Milpitas
Fiscal Year 2025/26 – LLMAD No. 98-1 Engineer’s Report 13
5. METHOD OF ASSESSMENT
5.1 Method of Assessment Spread
All parcels in the District on which residential dwellings will be constructed specially benefit from the improvements to an equivalent extent. These parcels are therefore assessed on a per lot basis for the maintenance and operation of the District, including incidentals and appurtenances, and will include all the costs of maintenance and/or operating the improvements. As outlined in Section 4, the total amount of general benefit from the improvements is determined to be 31.80%.
The preliminary maximum assessment rate for Fiscal Year 2025/26 is $591.00. The actual assessment rate levied on each taxable parcel for Fiscal Year 2025/26 is $538.41.
Each year the maximum assessment rate shall be increased by the percentage change from April 1st of the prior year to April 1st of the current year by the U.S. Department of Labor, Bureau of Labor Statistics, Consumer Price Indexes, Pacific Cities and U.S. City Average, San Francisco-Oakland-Hayward. The April 1, 2025 CPI was not available at the time of writing of this report. For purposes of this report, the CPI increase was estimated by using the February 1, 2025 CPI.
City of Milpitas
Fiscal Year 2025/26 – LLMAD No. 98-1 Engineer’s Report 14
5.2 Maximum Assessment Rates
The following table provides the historical maximum assessment rates for Fiscal Year 2000/01 through the current fiscal year:
Fiscal Year CPI Percentage Increase(1) Maximum Rate
2000/01 178.7 N/A $292.803
2001/02 189.1 5.82% 309.844
2002/03 193.0 2.06% 316.234
2003/04 197.3 2.23% 323.280
2004/05 198.3 0.51% 324.918
2005/06 202.5 2.12% 331.800
2006/07 208.9 3.16% 342.286
2007/08 215.842 3.32% 353.661
2008/09 222.074 2.89% 363.872
2009/10 223.854 0.80% 366.789
2010/11 227.697 1.72% 373.086
2011/12 234.121 2.82% 383.611
2012/13 238.985 2.08% 391.581
2013/14 244.675 2.38% 400.904
2014/15 251.495 2.79% 412.079
2015/16 257.622 2.44% 422.118
2016/17 264.565 2.70% 433.494
2017/18 274.589 3.79% 449.919
2018/19 283.422 3.22% 464.392
2019/20 294.801 4.01% 483.037
2020/21 298.074 1.11% 488.400
2021/22 309.419 3.81% 506.988
2022/23 324.878 5.00% 532.318
2023/24 338.496 4.19% 554.632
2024/25 351.247 3.77% 575.524
2025/26 354.432 2.69%(2) 591.000
(1) Percentage increase from April 1 of the prior year to April 1 of the current year in the US Department of Labor, Bureau of Labor Statistics, Consumer Price Index, Pacific Cities and US City Average, San Francisco-Oakland-Hayward. (2) The April 1, 2025 CPI was not available at the time of writing of this report. The Fiscal Year 2025/26 CPI increase was estimated using the February 1, 2025 CPI.
5.3 Appeals
Any property owner who feels that the amount of their assessment is in error as a result of incorrect information being used to apply the foregoing method of spread, may file an appeal with the Finance Director of the City. Any such appeal is limited to correction of an assessment during the current or, if before July 1, the upcoming fiscal year. Upon the filing of any such appeal, the Finance Director shall promptly review the information provided by the property owner and if he/she finds that the assessment should be modified, he/she shall have the authority to make the appropriate changes in the assessment roll. If any such changes are provided after the assessment roll has been filed with the County for collection, the Finance Director is authorized to refund to the property owner the amount of any approved reduction.
City of Milpitas
Fiscal Year 2025/26 – LLMAD No. 98-1 Engineer’s Report 15
6. ASSESSMENT DIAGRAM
The following page provides a copy of the assessment diagram of the District.
City of Milpitas
Fiscal Year 2025/26 – LLMAD No. 98-1 Engineer’s Report 16
7. ASSESSMENT ROLL
Assessor’s parcel identification, for each lot or parcel within the District, shall be based on the Santa Clara County Assessor’s secured roll data for the applicable year in which this report is prepared and is incorporated herein by reference.
A listing of assessor’s parcels assessed within the District for Fiscal Year 2025/26, along with the assessment amounts, is on file in the office of the City Clerk and incorporated herein by reference. Based on County Assessor’s secured roll data, current assessor’s parcels, including corrected and/or new assessor’s parcels, will be submitted and/or resubmitted to the Santa Clara County Auditor/Controller. The annual assessment amount to be levied and collected for the resubmitted parcel(s) shall be determined in accordance with the method of apportionment and assessment rate approved in this report. Therefore, if a single assessor’s parcel has a status change in development, other land use change, or subdivides into multiple assessor’s parcels, the assessment amounts applied to each of the new assessor’s parcels shall be recalculated and applied according to the approved method of apportionment and assessment rate rather than a proportionate share of the original assessment amount.
City of Milpitas
LLMAD No. 98-1
Final Billing Detail Report for Fiscal Year 2025/26
APN Assessment ID Situs Address Fiscal Year 2025/26 Levy 086-48-001 1 872 CAMERON CIR $538.40
086-48-002 2 868 CAMERON CIR 538.40
086-48-003 3 864 CAMERON CIR 538.40
086-48-004 4 860 CAMERON CIR 538.40
086-48-005 5 856 CAMERON CIR 538.40
086-48-006 6 852 CAMERON CIR 538.40
086-48-007 7 848 CAMERON CIR 538.40
086-48-008 8 844 CAMERON CIR 538.40
086-48-009 9 840 CAMERON CIR 538.40
086-48-010 10 836 CAMERON CIR 538.40
086-48-011 11 832 CAMERON CIR 538.40
086-48-012 12 828 CAMERON CIR 538.40
086-48-013 13 824 CAMERON CIR 538.40
086-48-014 14 820 CAMERON CIR 538.40
086-48-015 15 816 CAMERON CIR 538.40
086-48-016 16 812 CAMERON CIR 538.40
086-48-017 17 808 CAMERON CIR 538.40
086-48-018 18 804 CAMERON CIR 538.40
086-48-019 19 800 CAMERON CIR 538.40
086-48-020 20 1004 CAMERON PL 538.40
086-48-021 21 1000 CAMERON PL 538.40
086-48-022 22 996 CAMERON PL 538.40
086-48-023 23 992 CAMERON CIR 538.40
086-48-024 24 988 CAMERON CIR 538.40
086-48-025 25 984 CAMERON CIR 538.40
086-48-026 26 980 CAMERON CIR 538.40
086-48-027 27 976 CAMERON CIR 538.40
086-48-028 28 972 CAMERON CIR 538.40
086-48-029 29 968 CAMERON CIR 538.40
086-48-030 30 964 CAMERON CIR 538.40
086-48-031 31 960 CAMERON CIR 538.40
086-48-032 32 956 CAMERON CIR 538.40
086-48-033 33 952 CAMERON CIR 538.40
086-48-034 34 948 CAMERON CIR 538.40
086-48-035 35 944 CAMERON CIR 538.40
086-48-036 36 940 CAMERON CIR 538.40
086-48-037 37 936 CAMERON CIR 538.40
086-48-038 38 932 CAMERON CIR 538.40
086-48-039 39 928 CAMERON CIR 538.40
086-48-040 40 924 CAMERON CIR 538.40
086-48-041 41 920 CAMERON CIR 538.40
086-48-042 42 916 CAMERON CIR 538.40
Slight variances may occur due to rounding
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City of Milpitas
LLMAD No. 98-1
Final Billing Detail Report for Fiscal Year 2025/26
APN Assessment ID Situs Address Fiscal Year 2025/26 Levy 086-48-043 43 912 CAMERON CIR 538.40
086-48-044 44 908 CAMERON CIR 538.40
086-48-045 45 904 CAMERON CIR 538.40
086-48-046 46 900 CAMERON CIR 538.40
086-48-047 47 896 CAMERON CIR 538.40
086-48-048 48 892 CAMERON CIR 538.40
086-48-049 49 888 CAMERON CIR 538.40
086-48-050 50 884 CAMERON CIR 538.40
086-48-051 51 880 CAMERON CIR 538.40
086-48-052 52 876 CAMERON CIR 538.40
086-48-053 53 899 CAMERON CIR 538.40
086-48-054 54 903 CAMERON CIR 538.40
086-48-055 55 907 CAMERON CIR 538.40
086-48-056 56 911 CAMERON CIR 538.40
086-48-057 57 915 CAMERON CIR 538.40
086-48-058 58 211 CAMERON CT 538.40
086-48-059 59 203 CAMERON CT 538.40
086-48-060 60 195 CAMERON CT 538.40
086-48-061 61 200 CAMERON CT 538.40
086-48-062 62 208 CAMERON CT 538.40
086-48-063 63 216 CAMERON CT 538.40
086-48-064 64 207 WHITE CT 538.40
086-48-065 65 199 WHITE CT 538.40
086-48-066 66 191 WHITE CT 538.40
086-48-067 67 183 ALLEN CT 538.40
086-48-068 68 175 ALLEN CT 538.40
086-48-069 69 180 ALLEN CT 538.40
086-48-070 70 188 ALLEN CT 538.40
086-48-071 71 196 WHITE CT 538.40
086-48-072 72 204 WHITE CT 538.40
086-48-073 73 212 WHITE CT 538.40
086-48-074 74 203 KING CT 538.40
086-48-075 75 195 KING CT 538.40
086-48-076 76 187 KING CT 538.40
086-48-077 77 179 BRANDT CT 538.40
086-48-078 78 171 BRANDT CT 538.40
086-48-079 79 176 BRANDT CT 538.40
086-48-080 80 184 BRANDT CT 538.40
086-48-081 81 192 KING CT 538.40
086-48-082 82 200 KING CT 538.40
086-48-083 83 208 KING CT 538.40
086-48-084 84 199 DOUGLAS CT 538.40
Slight variances may occur due to rounding
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City of Milpitas
LLMAD No. 98-1
Final Billing Detail Report for Fiscal Year 2025/26
APN Assessment ID Situs Address Fiscal Year 2025/26 Levy 086-48-085 85 191 DOUGLAS CT 538.40
086-48-086 86 183 DOUGLAS CT 538.40
086-48-087 87 175 HOBBS CT 538.40
086-48-088 88 167 HOBBS CT 538.40
086-48-089 89 174 HOBBS CT 538.40
086-48-090 90 182 HOBBS CT 538.40
086-48-091 91 190 DOUGLAS CT 538.40
086-48-092 92 198 DOUGLAS CT 538.40
086-48-093 93 206 DOUGLAS CT 538.40
086-48-094 94 991 CAMERON CIR 538.40
086-48-095 95 995 CAMERON CIR 538.40
086-48-096 96 811 CAMERON CIR 538.40
086-48-097 97 815 CAMERON CIR 538.40
086-48-098 98 831 CAMERON CIR 538.40
$52,763.2098 Accounts
Slight variances may occur due to rounding
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CITY OF MILPITAS
AGENDA REPORT
(AR)
Item Title: Conduct a Public Hearing and Adopt Resolutions to Approve the Fiscal Year 2025-26 Proposed Operating Budget for the City of Milpitas and the Milpitas Housing Authority, Approve the Fiscal Year 2025-26 Gann Appropriations Limit, Authorize Various Financial Actions, Fiscal Policies and Budget Guidelines, and Amend the Classification Plan for Alignment with the FY 2025-26 Proposed Operating Budget, the Minimum Wage Increase, and Salary Schedules Consistent with Previous Council Action (Staff Contact: Luz Cofresí-Howe, Finance Director, 408-586-3111)
Category: Public Hearings-Leadership and Support Services Meeting Date: 6/3/2025
Recommendation: (1) Conduct a public hearing; and
(2) Adopt the following Resolutions:
(a) Joint Resolution of the City Council and Milpitas Housing Authority to approve the Fiscal Year 2025-26 Proposed Operating Budget for the City of Milpitas and the Milpitas Housing Authority, approve the Fiscal Year 2025-26 Gann Appropriations Limit, Fiscal Policies and Budget Guidelines and authorizing various financial actions by the City Manager, including Approving and Authorizing the Execution of Various Contracts and Payments over $100,000; (b) Approve amendments to the Fiscal Year 2025-26 Proposed Operating Budget; (c) Amending Resolution No. 1626, the Classification Plan, to authorize additional positions and amend budgeted allocated positions;
(d) Amending Resolution No. 1626, the Classification Plan, to adjust the hourly rate ranges for classifications due to a minimum wage increase pursuant to Ordinance No. 292; and
(e) Amending Resolution No. 1626, the Classification Plan, to adjust the Salary Schedules for various classifications to align with current memorandums of understandings (MOUs).
BACKGROUND:
The FY 2025-26 Proposed Operating Budget (Proposed Budget) is the product of months of collaboration, discussion and deliberation, resulting in a Proposed Budget developed with the leadership and engagement of the City of Milpitas Council (City Council), City management, staff and the Milpitas community at large. During the FY 2025-26 Preliminary Budget Study Session held on February 18, 2025, staff projected a structural deficit of $28.5 million over five years with a deficit of $3.1 million in FY 2025-26. During that Study Session, City Council directed staff to balance the FY 2025-26 budget without reducing services to the community and without the additional use of reserves. Since that time, additional Budget Study Sessions were held (April 2, 2025 and May 13, 2025) to bring forward options for City Council consideration, feedback, direction and prioritization; resulting in the FY 2025-26 Proposed Operating Budget.
On May 13, 2025, the City Council held a Special Meeting (Study Session) where the Proposed Operating Budget proposals, including the General Fund 5-Year Forecast reflecting a 42.9% reduction in the 5-year structural deficit from $28.5 million to $16.3 million, was formally presented to City Council and the public, and subsequently reviewed and discussed. The requisite public hearing notices related to the adoption of the Proposed Budget as well as the FY 2025-26 Gann Appropriations Limit were published timely.
ANALYSIS:
As noted above, staff formally presented the $268.4 million FY 2025-26 Proposed Operating Budget, including a proposed decrease of full-time equivalent (FTE) employees to 452.0, a reduction of 3.0 FTE from 455.0 FTE in FY 2024-25, to the City Council for review and discussion. This Agenda Report transmits the Proposed Budget, documenting changes to the Proposed Budget as reviewed and discussed at the May 13, 2025 Study Session. The Agenda Report also includes the various resolutions required for the adoption of the Proposed Budget.
The Proposed Budget as released does not include certain other proposals recommended by City Council at the May 13, 2025 Study Session. However, these other proposals are set forth in a separate resolution, increasing the $268.4 million Proposed Budget to $268.5 million, and are detailed as follows:
1) Milpitas Youth Force Program Expansion ($69,152).............................................................One-Time This proposal recommends the one-time expansion of the Milpitas Youth Force Program for the Summer 2026 program. The Milpitas Youth Force is an 8-week summer program for Milpitas high school-age students (ages 15½ to 18) that aims to provide high school students with valuable work experience, career development opportunities, mentorship and potential connections in their chosen field of interest.
Businesses/organizations are matched with participants to help them gain practical skills and knowledge.
Participants work 15–20 hours per week at minimum wage, funded by the City of Milpitas.
Staff received 81 applications for the Summer 2025 program, far exceeding the budgeted 20 student program space. Between the participating businesses and City departments, there is capacity to accept up to 45 students in the program. One-time costs associated with this proposal include the hourly rate of the MYF students, wrap-around services such as SMART rides to and from work, professional clothing, skill- building presentations, and end of program ceremony for an additional 25 students. 2) Milpitas Summer College Intern Program ($60,000) .............................................................One-Time This proposal advocates for the allocation of a one-time funding amount of $60,000 to launch the Milpitas Summer College Intern Program, which will support five (5) college interns. The City of Milpitas currently offers a diverse range of internship opportunities across various departments, allowing interns to gain practical experience while exploring potential career paths in government and public service. At present, the City hosts between 8 to 12 interns, primarily engaged within the City Council, Finance, Information Technology, and Public Works departments. However, there is no structured program specifically designed to provide a cohesive experience for college interns. By establishing a summer component, the City can enhance its existing “talent pipeline” initiatives and bring clarity and organization to the current internship offerings, ultimately creating a more enriching and structured experience for the college interns. 3) Milpitas Community Concert Choir ($10,000)..........................................................................Ongoing This proposal advocates for a continuing allocation of $10,000 to support the Milpitas Community Concert Choir, a new initiative within the City arts and culture services. The recurring expenses for this program encompass the hiring of a choir director and a piano accompanist, procurement of choral and sheet music portfolios, and the acquisition of pre-recorded music for rehearsals and performances. Additionally, funds will be designated for marketing materials to enhance participant recruitment and promote concerts. It is contemplated choir practices will take place weekly, culminating in three concerts annually. Rehearsal and performance sessions will be hosted in City Recreation facilities, and potential choir members can conveniently register online or in person at any public counter located in City Recreation sites. 4) Black April ($5,000)..................................................................................................................Ongoing This proposal recommends ongoing funding of $5,000 to continue hosting a Black April Ceremony each year. The City’s has held a Black April Ceremony for two years, commemorating the anniversary of the fall of Saigon. This ceremony is significant for the Vietnamese community and Vietnam War veterans and their loved ones. The proposal to add the ceremony to the annual event calendar includes re-occurring event costs such as contracting cultural performers and speaker(s), décor, and refreshments for the public.
Funding for the additional one-time proposals of $129,152 is recommended from the Community Investment Program Fund unallocated balance of $445,469. The additional ongoing proposals for $15,000 are recommended to be funded for one year from the Contingency Reserve, leaving a balance of $20,552,647; these two proposals will be funded in future years from ongoing General Fund dollars.
Also included in the amendment to Resolution No. 1626, the Classification Plan, is the creation of a new position, Senior City Manager Analyst, providing senior-level analytical, policy and confidential support to the Office of the City Manager. This professional staff position will support the City Manager by independently assembling, analyzing, and interpreting complex data to recommend solutions on sensitive issues while maintaining confidentiality. The incumbent will perform management reviews, analyze policies for efficiency, conduct statistical analyses, and collaborate with various departments to benchmark practices. Responsibilities will include writing comprehensive reports, presenting findings, addressing public or employee concerns, ensuring compliance with departmental policies, and coordinating training and external relations.
FY 2025-26 Citywide Budget Summary (All Funds)
Incorporating the above change, the Proposed Budget across all funds is $268.5 million, with staffing of 452.0 funded permanent FTEs. The variance between the May 13, 2025 presentation and the budget being presented for adoption by the City Council is demonstrated below:
Proposed Budget May 13, 2025
Study Session
June 3, 2025
City Council Meeting Variance +/(-)
(in $millions) General
Fund
Other &
CIP
Funds
Total General
Fund
Other &
CIP
Funds
Total General
Fund
Other &
CIP
Funds
Total
Revenues (including all
Funding Sources) $ 143.9 $ 124.5 $ 268.4 $ 144.0 $ 124.5 $ 268.5 $ 0.1 $ 0.0 $ 0.1 Expenditures (143.9) (124.5) (268.4) (144.0) (124.5) (268.5) (0.1) (0.0) (0.1) Total 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
The Proposed Budget includes a net reduction of 3.0 FTEs, as demonstrated below:
The revised General Fund 5-Year Forecast, which incorporates the changes above, is presented below:
Departments
FY 2024-25
Adopted Budget
Proposed
Changes
FY 2025-26
Proposed Budget
City Council 5.0 5.0
City Attorney 3.0 3.0
City Clerk 3.0 3.0
City Manager 5.0 (0.0) 5.0
Office of Economic Development 4.0 4.0
Office of Housing 3.0 1.0 4.0
Office of Building Safety 22.0 (1.0) 21.0
Finance 30.0 2.0 32.0
Fire 82.0 (1.0) 81.0
Human Resources 8.0 8.0
Information Technology 14.0 14.0
Planning 12.0 12.0
Police 128.0 (2.0) 126.0
Public Works 118.0 (2.0) 116.0
Recreation & Community Services 18.0 18.0
Total 455.0 (3.0) 452.0
City Organizational Charts
Department organizational charts have been updated to reflect the organizational structural changes in the Proposed Budget and are included in the Proposed Budget supporting documents.
Enabling Resolutions
The FY 2025-26 Proposed Operating Budget and related recommendations are approved by various resolutions as discussed below.
Joint Budget Resolution
With the adoption of the attached Joint Budget Resolution of the City Council and Milpitas Housing Authority, the City Council will approve the FY 2025-26 Proposed Operating Budget for the City of Milpitas and the Milpitas Housing Authority as amended in this Agenda Report per previous City Council direction. Further through the joint resolution, the City Council will approve the Gann Appropriations Limit, fiscal policies and authorizes various financial actions, including authorizing the City Manager to execute certain contracts in amounts above $100,000 during FY 2025-26.
An attachment to the Joint Budget Resolution identifies a list of contracts with an estimated not-to-exceed amount above the City Manager’s contract approval authority of $100,000 as well as annual payments over $100,000 in the aggregate for insurance and utilities. Funding for these contracts and payments has been incorporated into the proposed budget and/or the FY 2026-2030 Capital Improvement Program. As part of the adoption of this Proposed, staff is seeking authority to award these contracts and make certain payments. The list includes annual routine contracts (e.g., PLAN JPA insurance premiums), contracts with specific funding items related to this budget (e.g., Valley Water wholesale water purchase), and contracts related to capital improvement projects.
Amendment to the Fiscal Year 2025-26 Proposed Operating Budget Resolution The adoption of this resolution aims to revise the Proposed Operating Budget, authorizing certain financial actions to address certain other one-time and ongoing proposals recommended by City Council at the May 13, 2025 Study Session.
The Gann Appropriations Limit
Article XIIIB of the California State Constitution, more commonly referred to as the Gann Initiative or Gann Appropriations Limit, was approved by California voters in November 1979 and placed limits on the amount of proceeds of taxes that state and local governmental agencies can receive and spend each year. If an agency receives more revenue than the Appropriations Limit, the excess revenue must be returned to the taxpayers through a tax reduction or refund within the next two years. Alternatively, the agency can increase its Appropriations Limit through voters’ approval.
Based on the attached analysis, using the population and per capita personal income change factors provided by the State of California, the City Gann Appropriations Limit for FY 2025-26 has been computed to be $149,704,437. Appropriations subject to the limitation in FY 2025-26 budget total $104,149,141, which is
$45,555,296 less than the computed limit. The City has not exceeded its annual Appropriations Limit in any fiscal year since this requirement was approved by the voters in 1979.
Personnel Related Resolutions
Based on the Proposed Budget as amended in this Agenda Report based on Council direction, staff is bringing forward several personnel-related resolutions to amend the classification plan for all employees as it relates to authorized positions, changes to hourly rate ranges for certain classifications due to an increase in the City’s minimum wage, and salary schedule amendments based on previous Council direction consistent with MOUs for the respective bargaining groups.
Authorized positions – This resolution aligns the number of positions on the Authorized Position List, amends specific budgeted positions consistent with the Proposed Budget, and creates a new classification for a Senior City Manager Analyst.
Minimum Wage Adjustments – This resolution adjusts the hourly rate ranges upwards for various classifications with the bottom of the hourly range set at the new minimum wage and compacted supervisory positions effective July 1, 2025. Consistent with the City Council approved ordinance, the minimum wage is scheduled to increase by $0.50 from $17.70 to $18.20 by July 1, 2025 based on the February 2025 annual Consumer Price Index (CPI) increase for the San Francisco-Oakland-Hayward Metropolitan Statistical Area.
Included in this resolution is the increase for the maximum hourly rate for the Student Intern classification to $30 per hour based on feedback received from the City Council at the May 13, 2025 Study Session.
Salary Schedules for Council Approved Wage Increases – This resolution is required per the California Code of Regulations §570.5. Per State law, the City is required to bring all pay schedules before the governing board for review and approval. The updated salary schedule reflects the respective increases for the International Association of Firefighters Local 1699 (IAFF) and related Unrepresented Fire employees wage increases. The Milpitas Police Officers Association and related Unrepresented Police employees wage increases are not effective until January 1, 2026, and will be brought forward in the 2025-26 Mid-Year Budget Report. The Milpitas Employee Association (MEA), Milpitas Professional and Technical Group (ProTech), Mid- Management Confidential Unit (MidCon), and Unrepresented (miscellaneous) increases will be updated once memorandum of understanding (MOU) negotiations have concluded.
Bargaining Group Wage Percentage Increase Effective Date Unrepresented Fire Employees
(Unrep Fire)*
5.0% Effective the first full pay period in
January 2026
International Association of
Firefighters Local 1699 – Sworn
5.0% Effective the first full pay period in
January 2025
* To address any potential internal salary compaction issues, Unrepresented Fire Employees’ increases align with IAFF per City Council action on March 4, 2025.
FISCAL IMPACT:
Upon adoption, the FY 2025-26 Budget for the City of Milpitas and the Milpitas Housing Authority, for all funds including debt service, will be $268.5 million.
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):
The 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. Even if a project, the action is exempt from further CEQA review pursuant to Cal. Code Regs., tit. 14, § 15061(b)(3) as it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. oThe action is a fiscal activity of the City government or an action to create a City government funding mechanism that does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment and is not a project pursuant to Cal. Code of Regs., tit. 14, § 15378.
ATTACHMENTS:
a) FY 2025-26 Proposed Operating Budget
b) City Organizational Charts
c) Joint Resolution of the City Council and Milpitas Housing Authority to approve the Fiscal Year 2025-26 Proposed Operating Budget the City of Milpitas and the Milpitas Housing Authority, approve the Appropriations Limit, Fiscal Policies and Budget Guidelines and authorizing various financial actions by the City Manager, including Approving and Authorizing the Execution of Various Contracts and Payments over $100,000.
d) Exhibit 1, Joint Resolution, FY 2025-26 Gann Appropriations Limit e) Exhibit 2, Joint Resolution, FY 2025-26 Budgeted Contracts over $100,000 f) Amendments to FY 2025-26 Proposed Budget Resolution
g) Amending Resolution No. 1626, the Classification Plan, to authorize additional positions and amend budgeted allocated positions
h) Amending Resolution No. 1626, the Classification Plan, to adjust the hourly rate ranges for classifications due to a minimum wage increase pursuant to Ordinance No. 292 i) Amending Resolution No. 1626, the Classification Plan, to adjust the Salary Schedules for various classifications to align with the current memorandums of understandings (MOUs) j) Resolution Exhibit A Salary Table for FY 2025-26 Budget k) Resolution Exhibit B Unrepresented Management Benefit Matrix
City of Milpitas • California
PROPOSED
BUDG!T &
FINANCIAL
PLAN
2025-2026
City of Milpitas
Community Vision
Milpitas will preserve its close-knit community
and rich cultural diversity as it moves with
innovation into the future by supporting
sustainable growth and development, ensuring
public safety, enhancing the environment and
natural landscape, and nurturing family and
community connections.
Organizational
Mission
The City of Milpitas is
committed to accomplishing
the community's vision by
providing fiscally sound,
superior services.
Our Values
Superior Customer Service • Open Communication • Integrity and Accountability Trust and Respect • Recognition and Celebration
.
City of Milpitas i
ii City of Milpitas
City Council
City of Milpitas i
Council Priority Areas
Community Wellness and Open Space
Continue to provide parks and amenities for people of all ages and abilities to enjoy higher levels of physical and mental health.
Economic Development and Job Growth
Continue to strengthen our economic foundations that support community prosperity and opportunity while ensuring a sustainable and livable city.
Environment
Promote a sustainable community and protect the natural environment.
Governance and Administration
Continue to streamline processes for enhanced service and remain committed to long- term fiscal discipline and financial stewardship.
Neighborhoods and Housing
Continue to explore innovative approaches to incentivize affordable housing projects, collaborate with key stakeholders to care for our most vulnerable populations, and support and engage neighborhoods through dedicated programs and services.
Public Safety
Continue to invest in police and fire protection, in partnership with our community.
Transportation and Transit
Continue to seek and develop collaborative solutions to meet the transportation challenges facing our community and our region.
City of Milpitas i
Letter of Transmittal
City of Milpitas v
May 30, 2025
Honorable Mayor and Members of the City Council
The City Manager’s Office is pleased to present the Proposed FY 2025-26 Operating Budget in the amount of $268.4 million. As the City continues to recover from the financial impacts of the worldwide COVID-19 pandemic, we remain optimistic about the future but watchful of near-term economic uncertainty arising from the continued war in Ukraine, ongoing conflict in the Middle East and other arenas, high interest rates, the ultimate impact of inconsistent federal tariff policy and its effect on trade flows, high-to-moderate inflation, growing income disparity, and the high cost of housing. Additionally, we are aware that rising labor costs will require us to continue maintaining fiscal discipline while simultaneously identifying ways to increase revenue while controlling expenses.
The Proposed FY 2025-26 Operating Budget (Budget) is aligned with high priority areas for the community and ensuring financial stability for the City of Milpitas. We have identified expenditure efficiencies, capacity constraints, economic alternatives, and allocated costs to appropriate sources or activity across the organization, saving $2.5 million in staffing and services. In addition, we recommend strategic investments of $0.8 million in the FY 2025-26 Proposed Operating Budget, including technology systems, exploring revenue generating options, identifying operational efficiencies, and enhancing quality of life for Milpitas residents. The result is a balanced budget that maintains Council-approved reserves and leverages City funds to support a variety of critical needs among residents and businesses in our community. With City Council direction, we will continue to apply incremental and measured strategies to maximize City resources and optimize programs and services to serve the needs of our community.
The City’s fiscal discipline and decisive actions have helped maintain City service levels in City Council priority areas while maintaining fiscal stability. The General Fund portion of the Proposed FY 2025-26 Operating Budget is balanced at $143.9 million.
Table 1 – Five-Year General Fund Forecast ($ in millions)
FY 24-25 Adopted
Amended Budget
FY 25-26
Proposed
Budget
FY 26-27
Forecast
FY 27-28
Forecast
FY 28-29
Forecast
FY 29-30
Forecast
Revenues $136.5 $138.8 $142.7 $147.1 $151.7 $157.3
Use of One-Time Funds 5.3 5.1 2.7
Expenditures (141.8) (143.9) (146.4) (153.3) (160.9) (166.8) Annual Surplus/(Deficit)1 $0.0 $0.0 ($1.0) ($6.1) ($9.2) ($9.5) Structural Surplus/(Deficit) ($1.0) ($7.1) ($16.3)
1 Numbers may not total due to rounding.
Letter of Transmittal
vi City of Milpitas
The Proposed FY 2025-26 Operating Budget Use of One-Time Line Funds includes:
• $2.8 million from the Public Employees Retirement System (PERS) Rate Stabilization Reserve, approved by the City Council in November 2024.
• $0.9 million from the Future Deficit Reserve, also approved by the City Council in November 2024. • $0.8 million from the Future Deficit Reserve to support one-time projects authorized by the City Council during the May 13, 2025 Study Session.
• $0.1 million from the Community Investment Fund for additional initiatives, including the Milpitas Community Choir, discussed in the May 13, 2025 Study Session.
• As identified and discussed in the May 13, 2025 Study Session, approximately $1.6 million in net excess revenues (from property, sales, transient occupancy tax, and Educational Revenue Augmentation Fund [ERAF] funds) was used to balance FY 2025-26. These funds, earned in FY 2024-25 which are carried over to FY 2025-26 during the fiscal year-end reconciliation and waterfall process, appear as a use of one-time funds in FY 2025-26. However, only $1.2 million vs. $1.6 million net revenues was needed to fully balance the budget.
During the FY 2025-26 Preliminary Budget Study Session held on February 18, 2025, staff projected a structural deficit of $28.5 million over five years with a deficit of $3.1 million in FY 2025-26. During that Study Session, City Council directed staff to balance the FY 2025-26 budget without reducing services to the community and without the additional use of reserves. Since that time, additional Budget Study Sessions were held (April 2 and May 13) to bring forward options for City Council consideration, feedback, direction and prioritization; resulting in the FY 2025- 26 Proposed Operating Budget. The current five-year forecast estimates a nominal deficit of $1.0 million in FY 2026-27 and a structural deficit of $16.3 million by FY 2029-30, a substantial reduction of 42.9% from the $28.5 million structural deficit projected at the February 18, 2025 Study Session.
The ongoing discussions with the City Council were crucial in achieving a balanced FY 2025-26 Proposed Budget that aligns with City Council priorities. However, these discussions resulted in a significantly shortened timeline for producing the Proposed Operating Budget book ahead of the June 3, 2025 City Council meeting where the budget will be presented to City Council for adoption prior to the legal deadline to appropriate the City budget by July 1, 2025. Consequently, certain sections have been omitted from the FY 2025-26 Proposed Operating Budget to facilitate the publication of the Proposed Operating Budget. Specifically, the sections that are not included are the City Profile, historical comparisons with other jurisdictions in the Financial Section, City Council and department- specific areas, Non-Departmental, and the Capital Budget. The final published FY 2025-26 Adopted Operating Budget will incorporate all previously omitted sections, consistent with prior years publications.
As it stands, all necessary financial information, including departmental funding, non-departmental details, and Capital Improvements, can be found in the Financial Information section of the FY 2025-26 Proposed Operating Budget and substantiate sufficient documentation for Council’s consideration of approving this proposed Operating Budget. Additionally, comprehensive descriptions of all recommended proposals are available later in this Letter of Transmittal.
Letter of Transmittal
City of Milpitas vii
Economic Outlook
Several factors are shaping our economic outlook. Key among these is the ongoing war in Ukraine and conflicts in other regions, persistent tensions in the Middle East, elevated interest rates, and fluctuating levels of inflation, which range from high to moderate. Additionally, rising housing costs, increasing income inequality, and uncertainty surrounding federal tariff policies and other governmental initiatives contribute to the unpredictability of our economic landscape. Given Milpitas sits at the crossroads of Silicon Valley, the recent layoffs in the technology sector are concerning and further complicate this economic picture.
Moreover, the recent downgrade of the United States government’s long-term issuer rating from Aaa to Aa1 highlights the troubling trend in the nation’s debt situation. This downgrade, along with similar reductions for several highly rated financial institutions and government-sponsored enterprises, serves as a stark reminder of the economic challenges we face.
The current U.S. inflation rate is 2.3% for the 12-month period ending April 2025, down from 2.4% in March. For the 30-year period from 1989 to 2019, the average annual inflation rate was 2.5%. The Federal Open Market Committee, the arm of the U.S. central bank that makes decisions about managing the nation’s money supply, targets a 2% rate of inflation over time. The Consumer Price Index (CPI), which measures changes in prices increased 0.2% from March per the United States Bureau of Labor and Statistics (BLS). The prices of different goods and services can rise at different rates. For instance, education and health care costs are generally subject to higher inflation rates than the average inflation rate.
Ecommerce consumer purchases as a percentage of total U.S. retail sales have grown every year but one since the Commerce Department began tracking this data in 2000. In 2022, ecommerce penetration was 20.7%, a slight dip compared to 20.8% in 2021. As such, ecommerce penetration reached a record 22.7% in 2024. Ecommerce has accounted for at least a fifth of U.S. retail sales every year since 2020.
Layoffs in the technology sector are especially relevant in Silicon Valley following the hiring scramble from 2020 to 2022 to meet the outsized demand for working from home. The Bay Area added 74,700 tech jobs during this period but shed 80,000 jobs combined in 2023 and 2024. Tech companies are focusing on increasing efficiency and sustained revenues as they further develop artificial intelligence (AI) and automation technology, signaling adjustments to the local economy.
Another critical variable is how societal changes from the pandemic continue to affect the economy, such as cutbacks in in-person commerce or services through online shopping. While employers are requiring more employees to work in office, still significant numbers of Bay Area residents work virtually. Recoveries in sales tax, which is based on consumer confidence and hotel tax (transient occupancy tax), which significantly depends on business travelers are encouraging; however, we are cognizant that full recovery of hotel tax revenue may be challenging and require multiple years. Various economists forecast a sluggish 2024 but not a significant slowdown or a deep, long-term recession. Overall, this level of economic uncertainty can’t be quantified, nor are each included in the forecast: however, the Proposed Budget is conservative, taking this economic outlook into consideration.
The City continues to monitor key metrics such as the unemployment rate in Milpitas, which is 4.1% as of April 2025 and represents a decrease from the overall unemployment rate in Milpitas of 4.7% in 2024. This compares favorably to the State of California unemployment rate of 5.03% issued by the Employment Development Department and is
Letter of Transmittal
viii City of Milpitas
slightly higher than the national rate of 3.9% issued by the U.S. Bureau of Labor Statistics. In Santa Clara County, healthcare and social assistance services and government jobs saw employment gains year-over-year, while cutbacks occurred in the professional, scientific, and technical services sectors. Jobs related to durable goods, which include consumer electronics, appliances, medical equipment and vehicles were the main contributor to manufacturing sector declines between April 2024 and April 2025. However, education, health services and professional development and business services experienced employment increases due to gains in professional, scientific and technical services.
FY 2025-26 Operating Budget Summary
The FY 2025-26 Proposed Budget of $268.4 million has increased $18.6 million, or 7.4%, in comparison to the Fiscal Year 2024-25 Adopted Budget of $249.8 million. This Proposed Budget decreases the position count by 3.0 full-time equivalent (FTE) from 455 to 452 total FTEs, as shown in Table 2 below. Of the 3.0 FTE net decreases, 2.0 FTEs are defunded vacant inspector positions tied to development activity in the City, which has declined over the years significantly decreasing the workload. As development activity increases, the need to fund these positions will be reevaluated and the positions will be reinstated when the workload and revenue can support them. Additionally, a vacant Police Officer position is also defunded as the City recognizes its inability to fully hire for all budgeted positions due to continued vacancies caused by retirements and promotions, and scarcity of candidates. It is anticipated the Police Department will have at least two vacant positions at any one time over the next few years.
Once the Department can fully staff all vacancies, the funding for this position will be reevaluated and the position reinstated as funding permits.
Table 2 – FY 2025-26 Funded Position Summary by City Service Area
City Service Area
FY 2024-25 Adopted
Amended Budget
FY 2025-26
Proposed Budget Changes
FY 2025-26
Proposed Budget
Public Safety 199.0 (2.0) 197.0
Community Development 62.0 (1.0) 61.0
Community Services and
Sustainable Infrastructure 125.0 (2.0) 123.0
Leadership and Strategic Support 69.0 1.0 71.0
Total 455.0 (3.0) 452.0
As shown in Table 3 below, the FY 2025-26 Proposed Budget is balanced with $268.4 million in revenues (including Transfers In) and $268.4 million in expenditures (including Transfers Out). The FY 2025-26 estimated revenues and expenses across all funds of $268.4 million has increased $18.6 million, or 7.5% compared to the FY 2024-25 Adopted Budget estimated revenue of $249.8 million. This is primarily due to an increase in Capital Improvement Program funding for community infrastructure, scheduled salary increases and increases in costs for supplies and services.
Table 3 – FY 2025-26 Citywide Budget Summary (All Funds) Citywide Revenues and other Financing Sources ($ in millions)
FY 2024-25
Adopted Amended
Budget
FY 2025-26
Proposed Budget
% Change from
Prior Year Adopted
General Fund $138.5 $143.9 3.9%
Letter of Transmittal
City of Milpitas ix
FY 2024-25
Adopted Amended
Budget
FY 2025-26
Proposed Budget
% Change from
Prior Year Adopted
Housing Authority 0.3 0.5 66.7%
Other Funds 20.4 23.8 16.7%
Water Fund 43.8 42.5 (3.0)%
Sewer Fund 24.4 23.1 (5.3)%
Net Operating Funds Total $227.4 $233.8 2.8%
Capital Projects Funds 22.4 34.6 54.5%
Total $249.8 $268.4 7.5%
Citywide Expenditures
FY 2024-25 Adopted
Amended Budget
FY 2025-26
Proposed Budget
% Change from Prior
Year Adopted
Personnel Services $121.3 $127.4 5.0%
Supplies & Contractual Services 68.7 70.8 3.0%
Capital Outlay 1.2 0.9 (25.0) %
Operating Transfers Out 20.7 25.8 24.6%
Subtotal 211.9 224.9 6.1%
Capital Improvements 33.2 38.8 16.9%
Debt Service 4.7 4.7 0.0%
Total $249.8 $268.4 7.5%
General Fund
The Fiscal Year 2025-26 Proposed General Fund budget is balanced with $143.9 million in estimated revenues and other sources (Revenues) such as the planned one-time use of the Public Employees Retirement System (PERS) Rate Stabilization Reserve in the amount of $2.8 million and the Future Deficit Reserve of $0.9 million (use of reserves was previously approved by City Council in November 2024). Excluding the use of one-time funds, the FY 2025-26 estimated revenues of $138.8 is an increase of $4.1 million, or 3.0%, in comparison to the FY 2024-2025 revenue estimate of $134.7 million. The increase in revenue is primarily due to property tax ($3.0 million). The City is closely monitoring pending litigation related to the Educational Revenue Augmentation Fund (ERAF), which is a mechanism created by the State Legislature in 1992, to shift local tax revenues from cities, counties, and special districts to a State-controlled fund used to reduce its obligation to the schools. The City will continue to monitor the outcome of current litigation, which may reduce the City’s property tax excess ERAF revenues. The litigation involves the California School Boards Association (CSBA) vs. State Controller litigation over the guidance on charter schools. Per the recommendation of the County of Santa Clara, the City currently sets aside a portion of the excess ERAF funds received into a reserve to mitigate the impact to the City General Fund should an adverse final decision be reached.
Letter of Transmittal
x City of Milpitas
This budget and the accompanying FY 2026-2030 Five-Year General Fund Financial Forecast (Forecast) assume the City revenues will continue to recover from the economic impacts of the COVID-19 pandemic, although we expect a longer recovery for the City transient occupancy tax revenues.
With the passage of Measure F, a sales tax measure with a sunset of eight years (and the subsequent passage of Measure J in November 2024 extending the sales tax measure an additional eight years to 2037), the voters set the foundation for the City to maintain fiscal stability and preserve basic City services over several years. Consistent with the ballot measure, the City Council established the Measure F Oversight Committee (Committee) and charged it with the responsibility to annually review projected revenues and expenditures for the funds generated by Measure F. The Committee exercises this oversight as part of the development of the budget and advises the Council on whether the recommended Measure F funded expenditures are consistent with the ballot measure. The estimated Measure F revenues in the amount of $7.0 million are equivalent to 5.0% of the $138.9 million General Fund revenues (excluding one-time funds) estimated for Fiscal Year 2025-26. With this additional tax revenue, the City can maintain the services as summarized in the table below:
Table 4 - Services Maintained by Measure F Funds ($ in millions) Description of Services Maintained with Measure F Funds FY 2025-26 Budget Cost ($ Million)
Respond to 911 calls within established parameters, resolve crime, dedicate staff to traffic safety and practice community-oriented policing, and maintain necessary fleet & equipment and continue effort for Police succession planning
$2.0
Fire Stations to ensure 24/7 coverage across the City, maintain necessary fleet & equipment and create paramedic services $2.3
Services for aquatic, senior, and youth services including restored defunded positions $0.5
Services for parks, tree and facility maintenance and necessary fleet & equipment, including restored defunded positions and enhanced positions $1.8 Support local businesses in their economic recovery, retain existing business and attract new businesses $0.2
Neighborhood preservation and code enforcement $0.2
Maintain library hours which keep the Library open on weekday evenings and weekends. Library District Board suspended Milpitas contribution for FY2024-25*.
$0.0
Total Services Funding $7.0
*The extended library hours were maintained. However, library district suspended City of Milpitas financial contribution due to adequate reserves in the Library District’s budget. This is a year-by-year determination based on Library District’s budget funding status.
As shown in Table 5 below, Measure F sunsets effective April 1, 2029, however, voters passed Measure J in November 2024 which extends the sales tax measure an additional eight years, sunsetting March 31, 2037.
The FY 2025-26 Proposed General Fund expenditures of $143.9 million are $5.4 million, or 3.9% higher, in comparison to the Fiscal Year 2024-25 Adopted General Fund expenditures of $138.5 million primarily due to increase in salaries and benefits ($6.5 million) and services and supplies ($1.6 million), offset in part by a decrease in operating transfers ($2.5 million) reflecting the one-time use of the Facilities Reserve Fund for facility
Letter of Transmittal
City of Milpitas xi
improvement CIP projects in 2024-2025. The increase in salaries is due to cost of living adjustment (COLA) per labor contracts, increase in unaccrued actuarial liability, and base budget adjustments due to inflation.
Table 5 below shows the FY 2026-30 Five-Year General Fund Financial Forecast. Based on information available in May 2025, staff currently projects a structural deficit of $16.3 million over the five years of the Forecast. The City remains cautious and concerned about the longer-term economic forecast and will continue to work with the City Council on options to maintain a balanced budget in future years.
Table 5 – Five-Year General Fund Financial Forecast ($ in millions)
FY 24-25 Adopted
Amended Budget
FY 25-26
Proposed
Budget
FY 26-27
Forecast
FY 27-28
Forecast
FY 28-29
Forecast
FY 29-30
Forecast
Revenues $136.5 $138.8 $142.7 $147.1 $151.7 $157.3
Use of One-Time Funds 5.3 5.1 2.7
Expenditures (141.8) (143.9) (146.4) (153.3) (160.9) (166.8) Annual Surplus/(Deficit)2 $0.0 $0.0 ($1.0) ($6.1) ($9.2) ($9.5) Structural Surplus/(Deficit) ($1.0) ($7.1) ($16.3)
Utility Funds
The City’s Utility Funds for the Water and Sewer utilities are balanced in FY 2025-26. On April 18, 2023, the City Council adopted Ordinance Nos. 120.50 and 208.55, adjusting water, recycled water, and sewer service charges and fees for Fiscal Years FY 2023-24 through FY 2027-28. In accordance with the rate ordinances, Water and Sewer rates will increase by approximately 6.4 percent and 4.0 percent, respectively. For a typical single-family residential household, the bi-monthly water charge will increase by $9.76 from $152.21 to $161.97; and the bi- monthly sewer charge will increase by $5.14 from $128.44 to $133.58. The combined increased cost for a typical single-family residential household will be $14.90 bi-monthly, or $89.40 annually.
With the increased water rates, the Water Utility is better positioned to respond to water system gaps including infrastructure repair and rehabilitation identified in the Water Master Plan. The increased water rates will also ensure sufficient funds are available to pay for projected wholesale rates from our two providers for future years.
However, staff will continue to monitor wholesale rates which may increase at a higher rate than the budget assumption consequently diminishing water fund resources for infrastructure repair. Similarly, the sewer rate increase will better position the Sewer Utility to cover anticipated funding needs for CIP projects expected to be identified in the Sewer Master Plan, and the many unknowns associated with the modernization of the San Jose/Santa Clara Regional Wastewater Facility (RWF).
Capital Improvement Program
On February 11, 2025, the City Council held a Special Study Session and another subsequent Study Session on April 2, 2025 to consider the draft FY 2026-2030 Capital Improvement Program (CIP). Based on the feedback provided at the Special Study Sessions, the FY 2026-2030 CIP is anticipated to be considered and adopted on June 3, 2025. The funds for the first year of the FY 2025-2029 Proposed CIP are appropriated with the approval of the FY 2025-26 Operating Budget. The FY 2025-2026 Proposed CIP funding in the amount of $38.7 million is $5.5
2 Numbers may not total due to rounding.
Letter of Transmittal
xii City of Milpitas
million more than the FY 2024-2025 Adopted CIP of $33.2 million, which includes projects across six areas:
community improvements, parks, streets, water, sewer, and storm.
Council Priority Areas
During the FY 2024-25 Preliminary Budget Study Session held on January 30, the City Council reviewed and confirmed its seven priority areas to guide the development of the Budget.
Community Wellness and Open Space: Continue to provide parks and amenities for people of all ages and abilities to enjoy higher levels of physical and mental health.
Economic Development and Job Growth: Continue to strengthen our economic foundations that support community prosperity and opportunity while ensuring a sustainable and livable city.
Environment: Promote a sustainable community and protect the natural environment.
Governance and Administration: Continue to streamline processes for enhanced service and remain committed to long-term fiscal discipline and financial stewardship.
Neighborhoods and Housing: Continue to explore innovative approaches to incentivize affordable housing projects, collaborate with key stakeholders to care for our most vulnerable populations, and support and engage neighborhoods through dedicated programs and services.
Public Safety: Continue to invest in police and fire protection, in partnership with our community.
Transportation and Transit: Continue to seek and develop collaborative solutions to meet the transportation challenges facing our community and our region.
Citywide Budget Process, Council Referrals, and Community Engagement The development of the annual budget is a comprehensive fiscal strategic planning process that involves overall guidance from the City Council, input from the community, and close coordination between the executive team and numerous staff budget representatives across all departments. At the February 18, 2025 meeting, the City Council received the preliminary FY 2026-35 ten-year General Fund financial forecast, which was later revised to a five-year General Fund financial forecast with City Council agreement and provided feedback on prioritization of Council referrals to consider in the development of the FY 2025-26 operating budget.
The community outreach program included a statistically valid survey in December 2024, a community townhall meeting (April 16, 2025), and two employee townhalls (March 19 and April 9, 2025). In the December 2024 community engagement survey, 86% of adult voters surveyed are satisfied with the overall quality of life in Milpitas, 71% approve of City government overall, and 78% are satisfied with overall City services. Furthermore, Public Safety continues to rate as residents’ top priority.
Community members were also given a hypothetical $100 budget and asked to allocate dollars based on what they considered the most important of the six Council Priority Areas the City should invest for the upcoming year. The dollars respondents allocated to each Council Priority Area shows how important, in the aggregate, a particular Priority Areas is. Based on the responses, Public Safety was ranked as the most important Council Priority Area
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with $24.06 of the allocations, followed by Neighborhoods and Housing ($18.57), Economic Development ($15.79), Transportation and Transit ($13.95), Community Wellness and Open Space ($13.90), and Environment ($13.73).
Community “Dollars” allocated to Council Priority Areas
$24.06 $18.57 $15.79 $13.90 $13.73 $13.95
Public Safety Neighborhoods
& Housing
Economic
Development
Community
Wellness &
Open Space
Environment Transportation
/ Transit
The community survey research reflected a consensus among community members that things are progressing positively in Milpitas. Most residents continue to like living in Milpitas, feeling it is a safe community and welcoming of varied cultures. In addition, affordable housing, inflation, and cost of living, maintaining 911 emergency response times and public safety services, repairing streets and fixing potholes, and tracking and investigating crime are considered top priorities of community members.
The dollars allocated to each Council Priority Area in the Proposed Operating budget, as shown in the Proposed Operating Budget 'Dollars' allocated to Council Priority Areas graphic below, closely correlate with the priority ranking of the community members responding to the survey. In the FY 2025-26 Proposed Operating Budget, Public Safety is funded as the most important Council Priority Area with $39.58 per $100, followed by Neighborhoods and Housing ($22.69), Community Wellness and Open Space ($18.42), Economic Development & Job Growth ($9.38), Environment ($6.48), and Transportation & Transit ($3.45).
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Proposed Operating Budget 'Dollars' allocated to Council Priority Areas
Proposed Service Level Changes
This Proposed Budget includes modest service level changes that reflect the current management needs of the City; respond to prioritized City Council referrals; strategic investments in technology systems, exploring revenue generating options, identifying operational efficiencies, enhancing quality of life for Milpitas residents, and invests in capital improvements. City Council referrals will be considered on an on-going basis and will be incorporated into the budget as prioritized by the Council and as funding becomes available.
The Proposed Budget includes strategic and conservative proposals across all four City Service Areas (CSAs). The largest investment is in the Community Services and Sustainable Infrastructure CSA in the amount of $0.5 million.
The 2025-26 Proposed Operating Budget reduces overall costs in the remaining CSAs. The largest reduction in cost is in the Public Safety CSA by $0.7 million, the Leadership and Strategic Support CSA by $0.4 million, and the Community Development CSA by $0.2 million. Each proposal is detailed below in the respective CSA.
Community Services and Sustainable Infrastructure: $474,079 (Information Technology, Public Works, Recreation & Community Services) Service Level Changes
1. Day Porter Services (-$99,333) ...................................................................................................... Ongoing This proposal recommends the elimination of the day porter service contract for the City of Milpitas as a cost-saving measure given current budget constraints. Following the City Council's approval of a five-year agreement for janitorial and porter services, ending day porter services, which are scheduled from 6:30 AM
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to 3:00 PM, will result in reduced maintenance during regular building operations. While this decision may lead to a noticeable decrease in cleanliness across City facilities and potentially delayed response times to janitorial requests during those hours, it is necessary to align with the City's financial limitations.
2. Private Swim Lessons (-$6,548) ........................................................................................... Ongoing This proposal recommends the expansion of the City of Milpitas Aquatic Program to include year-round private swim lessons, responding to significant community interest in personalized aquatic instruction. By offering tailored lessons, the City can better meet resident needs, enhance accessibility, and promote inclusivity for individuals of all abilities. Failing to implement this initiative may lead to residents seeking alternative providers, resulting in lost revenue and dissatisfaction. The proposed plan aims to net approximately $6,550 in revenue while utilizing existing staff during non-peak hours and ensuring quality instruction through additional training.
3. Technology Systems ($158,000) .................................................................................................... Ongoing This proposal recommends funding for the ongoing software and maintenance renewal essential for the City’s operational continuity and disaster recovery preparedness. These systems, currently supported through previously approved multi-year agreements, include secure offsite storage solutions, infrastructure enhancements for improved IT management and performance, automated backup solutions to ensure the recoverability of critical information, and web filtering for enhanced online safety. Continued funding for these vital services through the operating budget is crucial for maintaining the City’s strategic objectives in data integrity and service reliability. (ongoing)
4. Storage Tank Condition Assessment ($150,000) ....................................................................... One-Time This proposal recommends allocating $150,000 for one-time inspections of the City of Milpitas’ 27 fuel tanks, essential for maintaining safety, environmental protection, and operational efficiency. The requested funding will support comprehensive condition assessments and integrity inspections of the aging diesel fuel storage tanks, which are critical for backup power at emergency generators across various City facilities.
Most of these tanks are over 15-20 years old and have experienced significant issues, including fuel line leaks and corrosion, posing risks of failures that could lead to environmental contamination and operational disruptions. By investing in these proactive inspections, the City can extend the lifespan of the fuel tanks, minimize long-term repair costs, and ensure uninterrupted fuel operations. Funding for this proposal includes General Fund ($75,000), Sewer Maintenance & Operations Fund ($37,500), and Water Maintenance & Operations Fund ($37,000).
5. Utility Maintenance Repair Supplies ($100,000) .......................................................................... Ongoing This proposal recommends that the City Council approve an allocation of $100,000, with $50,000 designated for the water enterprise and $50,000 for the sewer enterprise, to fund dedicated repair supply line items. This repair supplies are critical for preserving the operational integrity and regulatory compliance of the City’s water and sewer systems. Without these funds, the Division may be unable to procure necessary supplies, leading to delays in essential repairs and potential service disruptions. The approval of this request will ensure that both systems remain efficient, reliable, and compliant with applicable standards.
6. Stump Grinder Purchase ($84,000) ............................................................................................. One-Time This proposal recommends approving one-time funding for the replacement of the current non-operational stump grinder used by the City of Milpitas for tree operations, as it is essential for removing tree stumps and mitigating potential public hazards. Funding is available in the Equipment Replacement Fund and acquiring a new stump grinder will enhance operational efficiency by eliminating the need to rent equipment at a weekly cost of $2,700, which is subject to availability and can delay necessary work. Additionally, securing a permanent grinder will reduce the City’s reliance on contractor support, which incurs costs of $1,749 per stump removal.
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7. Miscellaneous Insurance ($35,000) ............................................................................................... Ongoing This proposal recommends securing funding for essential liability insurance coverage for the City of Milpitas’ Recreation and Community Services Department, which involves numerous staff, contractors, and volunteers working with youth, seniors, and vulnerable adults. Recent guidance indicates that this coverage is necessary to mitigate potential risks associated with the Department’s activities, ensuring the City is financially safeguarded. If the insurance is not obtained, the City risks losing vital service providers who may be unable to afford their own coverage, leading to significant reductions in programs and potential revenue losses exceeding $200,000.
8. Recreation Administrative Assistants ($16,640) .......................................................................... Ongoing This proposal recommends funding for additional part-time administrative assistant hours at the Milpitas Community Center during the evening shift, specifically from 2 p.m. to 6 p.m. on Monday through Thursday.
The increase in customer traffic, particularly after work hours, necessitates additional front desk support to maintain high levels of customer service. Without this staffing enhancement, full-time staff will continue to be diverted from their primary tasks to address front desk demands, resulting in delays and increased comp-time or overtime costs. By adding these hours, the Department can ensure prompt and effective service for customers, allowing full-time staff to focus on their critical responsibilities.
9. Mobile Stage Rental ($15,000) ....................................................................................................... Ongoing This proposal recommends allocating an additional $15,000 to fund renting a mobile stage essential for the City of Milpitas’ special event program. A mobile stage is crucial for hosting a variety of community events, accommodating nearly 19,000 spectators each year and enhancing engagement and inclusivity across neighborhoods. The stage supports various activities, including concerts and cultural celebrations, while generating sponsorship revenue through logo placements on stage banners. Without this funding, the City will be forced to reduce the number of events utilizing a mobile stage and resort to smaller alternatives, which would negatively impact resident experiences, event activities, and potential sponsorship opportunities.
10. Smoke Opacity Testing ($11,000) .................................................................................................. Ongoing This proposal recommends approving funding from the Equipment Replacement Fund to ensure that the City of Milpitas' fleet remains compliant with the California Air Resources Board's mandated smoke opacity testing for heavy-duty trucks with a gross vehicle weight rating of over 14,000 pounds, which applies to 23 diesel-engine vehicles in the City's fleet. Compliance with these regulations is essential to minimize pollutants from diesel exhaust and protect air quality. By securing this funding, the City will uphold its commitment to environmental standards and avoid potential non-compliance consequences.
11. Minnis Circle Storage Lease ($40,320) ......................................................................................... Ongoing This proposal recommends continuing funding the lease of two commercial spaces on Minnis Circle to address the pressing space limitations faced by multiple City departments. The Police Department requires 5,400 to 10,000 square feet of replacement space due to the impending demolition of its current warehouse, which is essential for managing evidence vehicles and equipment. The Recreation and Community Services Department currently stores program materials across various disconnected locations, including a rented storage unit, and consolidating these supplies would enhance access and inventory control. Additionally, Public Works would benefit from a new location to securely store surplus City furniture and high-value maintenance equipment. By securing these leased spaces, the City can improve operational efficiency, ensure the security of assets, and accommodate the needs of its departments more effectively.
Additional funding of $94,000 is provided for this lease in a proposal in the Public Safety CSA for a total ongoing cost for the leases at Minnis Circle of $134,320.
Community Development CSA: (-$153,398)
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(Building Safety, Economic Development & Strategic Initiatives, Housing, Planning) Service Level Changes
1. Building Inspector (VACANT 1.0 FTE) (-$224,909) ...................................................................... Ongoing This proposal recommends the defunding of one vacant full-time equivalent (1.0 FTE) Building Inspector/NP position within the Office of Building Safety's Building Inspection section. This position is responsible for conducting essential building inspections and ensuring code compliance, which supports homeowners, landlords, builders, and developers while safeguarding community health and safety. Analysis of inspection services indicates that existing staff can manage the current volume of inspection activity effectively, as the current level of inspection services have consistently received positive feedback from homeowners.
Consequently, eliminating this position is anticipated to have little to no impact on service delivery, service quality or customer satisfaction, especially given the ongoing decline in inspection activity and the capacity of existing staff to absorb the duties of the defunded position.
2. Storefront Improvement Grant (-$50,000)................................................................................... One-Time This proposal recommends the City Council approve a one-time reduction of $50,000 from the Storefront Improvement Grant Program, which was originally funded at $365,000 through the General Fund Community Investment Fund. This adjustment would reduce staff workload, while still allowing for ongoing support of exterior commercial storefront improvements that enhance downtown economic vitality. By implementing this reduction, the City can effectively allocate resources while continuing to foster revitalization efforts in the downtown area.
3. Economic Development Special Projects (Ltd) (-$45,744) ....................................................... One-Time This proposal recommends a one-time reduction from the remaining funds of the originally $330,000 allocated for a Limited Term Economic Development Specialist position in the Office of Economic Development. This role manages grant programs that support economic vitality and job growth. Allowing this adjustment will enable a reallocation of these funding resources. Existing e staff will integrate the City Council's Main Street Revitalization efforts into their responsibilities, potentially requiring a reprioritization of initiatives such as the Downtown Business Association and Storefront Improvement Grant Program.
4. International Trade & Commerce Program (-$10,000) ................................................................. Ongoing This proposal recommends an ongoing budget reduction in the Office of Economic Development for the International Trade & Commerce Program, which supports local business globalization and Foreign Direct Investment (FDI), by eliminating approximately $6,000 in direct international trade and foreign delegation funding and reducing participation in national conferences from two staff to one, saving roughly $4,000.
Given the current uncertainties at the federal level and their consequent effect on international trade and commerce, an alternative suggests maintaining one staff member's attendance at national events to leverage opportunities if the economic environment changes.
5. Cost Allocation & Expenditure Efficiencies ($274,3720; Net $0 across all City Funds) .......... Ongoing This proposal recommends a cost allocation adjustment $274,372 for the Office of Housing in the City of Milpitas, which involves reallocating the salaries and benefits of 1.0 FTE Administrative Analyst II, ancillary non-personnel expenditures, and a portion of the Housing Official’s compensation. This action will reduce general fund expenditures by 91%, with funding sourced from Fund 250 (CDBG) and Fund 216 (Affordable Housing). Service levels will remain unchanged as the essential functions of administering the City's Affordable Housing Ordinance and Community Development Block Grant programs will continue without interruption and be appropriately funded by Housing funds.
6. Rent Relief Program Management ($177,255) .............................................................................. Ongoing This proposal recommends converting the existing limited-term Analyst II position within the Office of Housing into a permanent, ongoing role to effectively administer the rent and mortgage relief program,
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homeless response services, and other vital initiatives aligned with the City’s priorities. The Office of Housing is currently managing multiple critical functions, including compliance for federal grant programs, analyzing data related to unhoused services, and implementing various housing policies. With existing staff fully committed to these responsibilities, making the Analyst II position permanent is essential for sustaining the City’s commitment to addressing housing challenges and enhancing community support services. This position will be fully supported through the Affordable Housing Unrestricted fund.
Public Safety CSA: (-$651,498)
(Fire and Police)
Service Level Changes
1. Fire Prevention Inspector (VACANT 1.0 FTE) (-$354,992) .......................................................... Ongoing This proposal recommends the defunding of one vacant full-time equivalent (1.0 FTE) Fire Prevention Inspector position within the Fire Department. Similar to the Office of Building Safety building inspector proposed reduction, this position is responsible for conducting essential building inspections and ensuring code compliance as these inspections specifically relate to fire regulations and safety. Also as with the building inspector position, eliminating this position is anticipated to have little to no impact on service delivery, service quality or customer satisfaction, given the ongoing decline in inspection activity and the capacity of existing staff to absorb the duties of the defunded position. As development activity increases, along with the related revenue, this position would be reactivated and funded to manage workload.
2. Police Officer (VACANT 1.0 FTE) (-$343,256) ............................................................................... Ongoing This proposal recommends defunding one vacant full-time equivalent (1.0 FTE) Police Officer position within the Police Department. The Police Department currently anticipates approximately two (2) or more additional sworn vacancies in FY 2025-26 due to impending retirements. While recruiting efforts for sworn positions are ongoing and continuous, with the current vacancies and anticipated upcoming vacancies, it is unlikely the City would be able to fill all vacant Police Officer positions within FY 2025-26. These savings reflect the pace of recruitment and dollars saved during the vacant term for only one position.
3. Miscellaneous Expenses (-$77,000) .............................................................................................. Ongoing This proposal recommends miscellaneous expenses across all Fire Department operations by trimming various budget areas without fully eliminating any. Public safety will remain unaffected. To offset decreased spending on fire supplies, the department will actively seek grant opportunities. Although training cuts may limit future staff development, they will not impact current service levels.
4. Office Assistant (-$15,000) ............................................................................................................. Ongoing This proposal recommends eliminates funding for a part-time Office Assistant position in the Fire Operations division. The role currently supports administrative staff; however, ongoing cross-training efforts have prepared current personnel to absorb these duties. The reduction is expected to have minimal impact on service levels.
5. Minnis Circle Storage Lease ($94,000) ......................................................................................... Ongoing This proposal recommends continuing funding the lease of two commercial spaces on Minnis Circle to address the pressing space limitations faced by multiple City departments. The Police Department requires 5,400 to 10,000 square feet of replacement space due to the impending demolition of its current warehouse, which is essential for managing evidence vehicles and equipment. The Recreation and Community Services Department currently stores program materials across various disconnected locations, including a rented storage unit, and consolidating these supplies would enhance access and inventory control. Additionally, Public Works would benefit from a new location to securely store surplus City furniture and high-value maintenance equipment. By securing these leased spaces, the City can improve operational
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efficiency, ensure the security of assets, and accommodate the needs of its departments more effectively.
Additional funding of $40,320 is provided for this lease in a proposal in the Community Services & Sustainable Infrastructure CSA for a total ongoing cost for the leases at Minnis Circle of $134,320.
6. Incident & Disaster Management Software ($44,750) ................................................................. Ongoing This proposal recommends funding two essential public safety technology platforms to enhance the City of Milpitas' emergency management capabilities. The first platform improves evacuation management by providing residents with real-time, location-specific information, supporting first responders and the Office of Emergency Management in executing effective evacuations. The second platform enhances incident response and management within the Fire Department by improving situational awareness and resource management through integration with the City’s existing dispatch system. Securing funding for these technologies is vital for maintaining effective emergency operations and modernizing response capabilities.
Leadership and Strategic Support CSA (-$435,809)
(City Council, City Manager, City Attorney, City Clerk, Finance, Human Resources,) Service Level Changes
1. Cost Allocation & Expenditure Efficiencies (-$1,047,319) .......................................................... Ongoing This proposal recommends realigning funding according to the City Central Services Cost Allocation Plan (CAP), thereby promoting financial accountability and transparency. This proactive measure facilitates systemic, accurate budgeting and reflects the effective use of administrative resources across departments and initiative, ensuring indirect costs are not solely covered by the City General Fund.
2. Legislative Support (-$100,000) ..................................................................................................... Ongoing This proposal recommends implementing an ongoing budget reduction of $100,000 for the City’s legislative support program. This program currently funds a government relations consultant responsible for monitoring legislation, identifying possible earmark requests, and assisting in interactions with federal and state agencies to secure funding for City initiatives that benefit residents, businesses, and stakeholders. To continue advancing its funding efforts, the City will leverage its existing resources and memberships in organizations such as the League of California Cities, the National League of Cities, and the Government Finance Officers Association to effectively support its objectives in obtaining financial assistance from state and federal agencies. (ongoing)
3. Enhanced Revenue Strategy ($400,000) ..................................................................................... One-Time This proposal recommends the City of Milpitas adopt and fund a comprehensive fiscal strategy framework to effectively address its long-term structural deficit resulting from expenditures outpacing revenues. The proposal advocates for fiscal initiatives designed to enhance revenue including, but not limited to, an already ongoing Citywide fee study and a potential future ballot measure aimed at receiving voter support to reform the City’s business tax system, along with developing a debt and grants revenue toolkit for addressing deferred maintenance and improving infrastructure. An organizational assessment will further optimize service delivery, ensuring the City continues to meet community needs efficiently. Securing funding to engage specialized expertise for the successful implementation of these strategies is essential.
4. Business Tax Reform ($294,000) ................................................................................................. One-Time This proposal recommends the City of Milpitas reform its business license tax structure to increase annual revenue significantly, currently estimated at approximately $330,000, to between $900,000 and $3+ million based on different tax models. By shifting to a gross receipts or square footage tax structure, the City can