Agenda packet — Milpitas City Council, June 17, 2025 (part 3 of 4)

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SECTION 4. WHOLESALE EXCESS USE CHARGES

4.1. Amount of Excess Use Charges. Monthly excess use charges shall be determined by the SFPUC at the time of the declared water shortage consistent with the calendar in Section 6 and in accordance with Section 6.03 of the Agreement. The excess use charges will be in the form of multipliers applied to the rate in effect at the time the excess use occurs. The same excess use charge multipliers shall apply to the Wholesale Customers and all Retail Customers. The excess use charge multipliers apply only to the charges for water delivered at the rate in effect at the time the excess use occurred.

4.2 Monitoring Suburban Water Use. During periods of voluntary rationing, water usage greater than a customer’s allocation (as determined in Section 2) will be indicated on each SFPUC monthly water bill.

During periods of mandatory rationing, monthly and cumulative water usage greater than a Wholesale Customer’s shortage allocation and the associated excess use charges will be indicated on each SFPUC monthly water bill.

4.3. Suburban Excess Use Charge Payments. An annual reconciliation will be made of monthly excess use charges according to the calendar in Section 6. Annual excess use charges will be calculated by comparing total annual purchases for each Wholesale Customer with its annual shortage allocation (as adjusted for transfers of shortage allocations and banked water, if any). Excess use charge payments by those Wholesale Customers with net excess use will be paid according to the calendar in Section 6. The SFPUC may dedicate excess use charges paid by Wholesale Customers toward the purchase of water from the State Drought Water Bank or other willing sellers in order to provide additional water to the Wholesale Customers. Excess use charges paid by the Wholesale Customers constitute Wholesale Customer revenue and shall be included within the SFPUC's annual Wholesale Revenue Requirement calculation.

4.4. Tier 1 Family Plan. During periods of mandatory rationing, the SFPUC will not assess excess use charges on any of the Wholesale Customers if the Wholesale Customers’ collective cumulative purchases over the course of the Supply Year are less than the Wholesale Customers’ Tier 1 allocation, as set forth in Section 2.1. If the Wholesale Customers’ collective cumulative purchases exceed the Wholesale Customers’ Tier 1 allocation, the SFPUC shall assess excess use charges on each individual Wholesale Customer that exceeded its individual Tier 2 allocation (established in accordance with Section 2.2) over the course of the Supply Year in proportion to each individual Wholesale Customer’s share of the collective Wholesale Customers’ purchases that exceeded the Wholesale Customers’ Tier 1 allocation.

SECTION 5. GENERAL PROVISIONS GOVERNING WATER SHORTAGE

ALLOCATION PLAN

5.1. Construction of Terms. This Plan is for the sole benefit of the parties and shall not be construed as granting rights to any person other than the parties or imposing obligations on a party to any person other than another party.

5.2. Governing Law. This Plan is made under and shall be governed by the laws of the State of California.

5.3. Effect on Agreement. This Plan describes the method for allocating water between the SFPUC and the collective Wholesale Customers during system-wide water shortages of 20 percent or less. This Plan also provides for the SFPUC to allocate water among the Wholesale Customers in accordance with directions provided by the Wholesale Customers through BAWSCA under Section 2.2, and to implement a program by which such allocations may be voluntarily transferred among the Wholesale Customers.

The provisions of this Plan are intended to implement Section 3.11(C) of the Agreement and do not affect, change or modify any other section, term or condition of the Agreement.

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5.4. Inapplicability of Plan to Allocation of SFPUC System Water During Non-Shortage Periods.

The SFPUC’s agreement in this Plan to a respective share of SFPUC system water during years of shortage shall not be construed to provide a basis for the allocation of water between the SFPUC and the Wholesale Customers when no water shortage emergency exists.

5.5. Termination. This Plan shall expire at the end of the Term of the Agreement. The SFPUC and the Wholesale Customers can mutually agree to revise or terminate this Plan prior to that date due to changes in the water delivery capability of the SFPUC system, the acquisition of new water supplies, and other factors affecting the availability of water from the SFPUC system during times of shortage.

SECTION 6. ALLOCATION CALENDAR

6.1. Annual Schedule. The annual schedule for the shortage allocation process is shown below. This schedule may be changed by the SFPUC to facilitate implementation.

6.1.1 In All Years Target Dates

1. SFPUC delivers list of annual purchases by each Wholesale Customer during the immediately preceding Supply Year
November 1

2. SFPUC meets with the Wholesale Customers and presents water supply forecast for the following Supply Year
February

3. SFPUC issues initial estimate of available water supply February 1

4. SFPUC announces potential first year of drought (if applicable) February 1

5. SFPUC and Wholesale Customers meet upon request to exchange information concerning water availability and projected system- wide purchases
February 1-May 31

6. SFPUC issues revised estimate of available water supply, and confirms continued potential shortage conditions, if applicable March 1

7. SFPUC issues final estimate of available water supply April 15 th or sooner if adequate
snow course measurement data
is available to form a robust
estimate on available water
supply for the coming year.

8. SFPUC determines amount of water available to Wholesale Customers collectively
April 15
th or sooner if adequate
snow course measurement data
is available to form a robust
estimate on available water
supply for the coming year.

In Drought Years Target Dates

9. SFPUC formally declares the existence of water shortage emergency (or end of water shortage emergency, if applicable) under Water Code Sections 350 et. seq.

April 15-30

10. SFPUC declares the need for a voluntary or mandatory response April 15-30

11. BAWSCA submits calculation to SFPUC of individual Wholesale Customers’ percentage shares of water allocated to Wholesale Customers collectively
April 15- 30

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12. SFPUC determines individual shortage allocations, based on BAWSCA’s submittal of individual agency percentage shares to SFPUC, and monthly water budgets (Default Schedule)
April 25—May 10

13. Wholesale Customers submit alternative monthly water budgets (optional)
May 8-May 24

14. Final drought shortage allocations are issued for the Supply Year beginning July 1 through June 30
June 1

15. Monthly water budgets become effective July 1

16. Excess use charges indicated on monthly Suburban bills August 1 (of the beginning year) through June 30 (of the
succeeding year)

17. Excess use charges paid by Wholesale Customers for prior year August of the succeeding year

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RESOLUTION NO. ________
A RESOLUTION OF THE CITY COUNCIL OF MILPTIAS APPROVING TIER 2

DROUGHT RESPONSE IMPLEMENTATION PLAN PURSUANT TO SECTION

3.11.C OF THE AMENDED AND RESTATED WATER SUPPLY AGREEMENT WHEREAS, the City of Milpitas is one of twenty-six (26) agencies in San Mateo, Santa Clara and Alameda Counties (Wholesale Customers) which purchase water from the City and County of San Francisco (San Francisco) pursuant to a Water Supply Agreement entered into in 2009, and recently amended in 2018, 2021 and 2025 (the Agreement or WSA). Collectively these 26 agencies are referred to in the Agreement as Wholesale Customers; and
WHEREAS, Section 3.11 of the Agreement addresses situations when insufficient water is available in the San Francisco Regional Water System (RWS) to meet the full demands of all users.

Section 3.11.C provides that during periods of water shortage caused by drought, the San Francisco Public Utilities Commission (SFPUC) will allocate available water between its retail customers and the Wholesale Customers collectively, in accordance with a schedule contained in the Water Shortage Allocation Plan set forth in Attachment H to the Agreement (Tier 1 Plan); and WHEREAS, Section 3.11.C authorizes the Wholesale Customers to adopt a Drought Allocation Plan, including a methodology for allocating the available water among the individual Wholesale Customers (Tier 2 Plan). The WSA also commits the SFPUC to honor allocations of water unanimously agreed to by all Wholesale Customers or, if unanimous agreement cannot be achieved, water allocations that have been adopted by the Board of Directors of the Bay Area Water Supply and Conservation Agency (BAWSCA). The Agreement also provides that the SFPUC can allocate water supplies as necessary during a water shortage emergency if no agreed upon plan for water allocation has been adopted by the 26 Wholesale Customers or the BAWSCA Board of Directors; and WHEREAS, Commencing in January 2022, representatives appointed by the managers of each of the Wholesale Customers began meeting monthly to develop a set of principles to serve as guidelines for an equitable allocation methodology, and to develop formulas and procedures, in order to implement those principles. These discussions, and supporting technical analyses, have been conducted with the assistance of BAWSCA; and
WHEREAS, The Tier 2 Plan, attached to this resolution as Exhibit A, has been endorsed by all of the Wholesale Customer representatives who participated in the formulation process and they have each recommended that it be formally adopted by the governing body of their respective agencies; and WHEREAS, The Tier 2 Plan allocates the collective Wholesale Customer share of RWS supply made available by the SFPUC among each of the 26 Wholesale Customers through December 31, 2034 and is coordinated with the term of the Agreement, and extension and renewal terms.

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.

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2 Resolution No. XXXX

2. The Tier 2 Drought Response Implementation Plan, as attached as Exhibit A (Tier 2 Plan), is approved.

3. This approval is conditioned upon all the other twenty-five Wholesale Customers approving the Tier 2 Plan, such approvals being evidenced through adoption of similar resolutions or, in the case of private-sector organizations, by other equivalently binding written commitments signed by an executive officer acting within the scope of delegated authority, and all such approvals occurring on or before December 31, 2025.

4. This approval is conditioned upon SFPUC and all of the other twenty-five Wholesale Customers approving the 2025 Amended and Restated Water Supply Agreement between San Francisco and Wholesale Customers in Alameda County, San Mateo County, and Santa Clara County (2025 WSA), such approvals being evidenced through adoption of similar resolutions or, in the case of private-sector organizations, by other equivalently binding written commitments signed by an executive officer acting within the scope of delegated authority, and all such approvals occurring on or before December 31, 2025.

5. If such resolutions or binding commitments are not adopted by that date, this resolution will automatically expire and be of no further effect after December 31, 2025, unless it has been extended prior thereto by further action of this Council.

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

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Tier 2 Drought
Response
Implementation
Plan

Drought Shortage
Allocation Plan for the
Regional Water System
Wholesale Customers
Exhibit A

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Table of Contents

1. Introduction ........................................................................................................................ 1

2. Relationship to Water Supply Agreement ........................................................................... 1

3. Development Process ........................................................................................................ 1

4. Plan Policy Principles ......................................................................................................... 2

5. Allocation Formula .............................................................................................................. 2 Base Period Calculations................................................................................................ 2 Tier 2 Plan Allocation Formula Inputs ............................................................................. 2 Step 0: Establish SFPUC Minimum and Maximum Cutback ........................................... 3 Step 1: Efficient Residential Allocation............................................................................ 4 Step 2: Non-Residential Base Allocation ........................................................................ 4 Step 3: SFPUC Maximum Cutback Reserve................................................................... 5 Step 4: Seasonal Allocation ............................................................................................ 5 Step 5: SFPUC Purchases and ISG-Based Allocation .................................................... 5

6. Plan Implementation ........................................................................................................... 5

7. Plan Term .......................................................................................................................... 6

Attachments
Attachment A: List of Abbreviations and Definitions ................................................................... 8 Attachment B: Tier 2 Plan Data Sources and Calculations ........................................................10 Attachment C: Example of Tier 2 Plan Excel-Based Model Calculations ...................................15

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1. Introduction
The Tier 2 Drought Response Implementation Plan (the “Plan” or “Tier 2 Plan”) describes the method for allocating the water made available by the San Francisco Regional Water System (“RWS”) among the Wholesale Customers during shortages caused by Drought. This Plan is adopted pursuant to Section 3.11(C) of the Amended and Restated Water Supply Agreement between the City and County of San Francisco and the Wholesale Customers in Alameda, San Mateo, and Santa Clara Counties (the “WSA”).

2. Relationship to Water Supply Agreement
The WSA includes a Water Shortage Allocation Plan which, among other things, (a) provides for the allocation of available water between Retail Customers (e.g., retail water customers within the City and County of San Francisco) and the Wholesale Customers collectively during system- wide water shortages of 20 percent or less, (b) contemplates the adoption by the Wholesale Customers of this Plan for allocation of the Wholesale Customers share of available water, (c) commits the SFPUC to implement this Plan, (d) provides for banking of unused allocation, and (e
) pr
ovides for the transfer of both banked water and shortage allocations between and among the Wholesale Customers and commits the SFPUC to implement such transfers. That plan is referred to as the Tier 1 Plan and is included as Attachment H to the WSA.

The Tier 1 Plan also provides the methodology for determining the Overall Average Wholesale Customer Reduction, expressed as a percentage cutback from prior year’s normal SFPUC purchases, and Overall Wholesale Customer Allocation, in million gallons per day (MGD), both of which are used in determining the final Allocation Factor for each Wholesale Customer. The Overall Average Wholesale Customer Reduction is determined by dividing the volume of water available to the Wholesale Customers (the “Overall Wholesale Customer Allocation” or “Tier 1 Allocation”), shown as a share of available water in Section 2 of the Tier 1 Plan, by the prior year’s normal total Wholesale Customers’ RWS purchases and subtracting that value from one.

3. Development Process
Between January 2022 and June 2024, Bay Area Water Supply and Conservation Agency (BAWSCA), supported by Woodard & Curran technical consultants, facilitated negotiations between the Wholesale Customers through a series of meetings, workshops, and workgroups to develop a formula and implementation plan to allocate RWS supplies in the event of shortage caused by a SFPUC declared Drought, as defined in the WSA. These meetings, workshops, and workgroups provided a forum for in-depth discussion of the objectives, mechanics, and policy aspects of the elements of an updated Plan.

The Wholesale Customers began negotiations by reviewing the prior Plan, then discussed and agreed upon four policy principles to lay the foundation for a revised Plan. BAWSCA, with support from Woodard & Curran as the technical consultant team, introduced potential elements of a formula to align with the agreed upon policy principles. In monthly workshops, the Wholesale Customers discussed these options and provided feedback on which elements should be included in the Plan, along with suggested refinements. These workshops, and the discussions, suggestions, and comments expressed by the Wholesale Customers during this process, were the primary forum through which this Plan was developed.

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4. Plan Policy Principles
The Wholesale Customers collectively developed four policy principles (the “Policy Principles”) to guide the development and performance of the Tier 2 Plan. The Tier 2 Plan and associated Tier 2 Plan Allocation Model were developed in consideration of these policy principles, with the intent to abide by each policy principle while minimizing conflicts between policy principles. The policy principles are summarized below and implemented in Attachment B, Tier 2 Plan Data Sources and Calculations.

1. Policy Principle #1 - Provide sufficient water for the basic health and safety needs of customers.

2. Policy Principle #2 - Minimize economic and other adverse impacts of water shortages on customers and the BAWSCA region.

3. Policy Principle #3 - Provide predictability of drought allocations through consistent and predetermined rules for calculation, while allowing for flexibility to respond to unforeseen circumstances.

4. Policy Principle #4 - Recognize benefits of, and avoid disincentives for, water use efficiency and development of alternative water supply projects.

5. Allocation Formula
Guided by the Policy Principles, the Wholesale Customers developed a specific formula for apportioning the Overall Wholesale Customer Allocation among the individual Wholesale Customers. The Tier 2 Allocation Model requires several inputs to calculate each Wholesale Customer’s allocation. First, Base Period data are collected to be used as inputs in the Tier 2 formula. Next each Wholesale Customer’s allocation is calculated in five steps.

Base Period Calculations
The Base Period in the Tier 2 Plan is defined as the average of each Wholesale Customer’s two years with the highest volumes of SFPUC purchases from the previous three non-Drought years. A non-Drought year is defined as a full fiscal year (July 1 through June 30) in which the SFPUC has not declared a water shortage emergency, as defined in the WSA. BAWSCA’s Annual Survey, which compiles and publishes data self-reported by the Wholesale Customers, is the primary source for model inputs.

Tier 2 Plan Allocation Formula Inputs
• Population: Each Wholesale Customer’s population as reported in the most recently published Annual Survey and is not tied to Drought or non-Drought year status. • Base Period SFPUC Purchases: The average of each Wholesale Customer’s two years with the highest volumes of SFPUC purchases from the previous three non- Drought years.
• Base Period Total Potable Water Production: Total potable production as reported in the Annual Survey.

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• Base Period SFPUC Reliance: Each Wholesale Customer’s Base Period SFPUC Purchases divided by Base Period Total Potable Water Production, expressed as a percentage.
• Base Period Percent Indoor Demand: The single lowest month’s total potable demand (a proxy for indoor use) divided by the average monthly total potable demand, expressed as a percentage. The resulting percentages are averaged for the two selected Base Period years.
• Base Period Percent Non-Residential Demand: Each Wholesale Customer’s potable water consumption from the Base Period from all customer categories except residential, divided by the Wholesale Customer’s Base Period Total Potable Water Production, expressed as a percentage. The resulting percentages are averaged for the two selected Base Period years.
• Individual Supply Guarantee (ISG): Each Wholesale Customer’s share of the Supply Assurance, as shown on Attachment C to the WSA, with proxies for Hayward, San Jose, and Santa Clara in order to provide inputs for the Tier 2 Allocation Formula There are three exceptions to the Base Period Calculations: (1) Coastside County Water District (“Coastside CWD”) Base Period SFPUC Purchases and Base Period SFPUC Reliance, (2) Stanford Base Period Percent Indoor Demand, and (3) Stanford Population Calculation. (1) Coastside CWD Base Period SFPUC Purchases will be calculated as 94% of its Base Period Total Potable Water Production. Base Period SFPUC Reliance will be fixed at 94%. More information is provided in Attachment B.
(2) Stanford’s Base Period Percent Indoor Demand calculation will exclude demand from the month of December and/or January when the campus is closed and demand is abnormally low.
(3) Stanford’s population is calculated as described in Attachment B.

Furthermore, three Wholesale Customers do not have an ISG and a proxy is used in the Tier 2 Plan: (1) Hayward, (2) San Jose, and (3) Santa Clara. Background on ISG and each ISG proxy is described in Attachment B.

Data sources, methodologies, and equations used to calculate each input are described further in Attachment B.

Step 0: Establish SFPUC Minimum and Maximum Cutback
The Minimum and Maximum Cutback establish the upper and lower bounds for each Wholesale Customer’s final allocation.

No water is allocated in this step. Instead, allocations in subsequent steps are limited such that no Wholesale Customer’s final allocation is outside the upper and lower bounds (i.e., above the Minimum Cutback or below the Maximum Cutback) established in this step.

Minimum Cutback: Each Wholesale Customer will contribute to meeting the Overall Average Wholesale Customer Reduction by taking a Minimum Cutback from its Base Period SFPUC

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Purchases (up to its ISG or proxy). This establishes the upper limit of each Wholesale Customer’s potential final allocation. The Minimum Cutback, expressed as a percentage, is equal to 1/3 times the Overall Average Wholesale Customer Reduction, but no less than 5%.

Maximum Cutback: The Maximum Cutback establishes the lower limit of each Wholesale Customer’s potential final allocation. The Maximum Cutback, expressed as a percentage, is equal to 1.5 times the Overall Average Wholesale Customer Reduction. The Maximum Cutback is calculated from each Wholesale Customer’s Base Period SFPUC Purchases (up to its ISG, or proxy).

Step 1 Override Exception: If a Wholesale Customer’s allocation in Step 1 exceeds the upper limit established by the Minimum Cutback at 1/3 times the Overall Average Wholesale Customer Reduction, the Wholesale Customer’s Minimum Cutback will be reduced, but the Minimum Cutback will be no less than 5%.

Calculations and an example of the Step 1 Override Exception are provided in Attachment B.

Step 1: Efficient Residential Allocation
Step 1 allocates water on a residential per capita basis, based on the State Indoor Water Use Efficiency Standard1 and the portion of each Wholesale Customer’s water demand met by the RWS.

The per capita efficient residential volume, in gallons, will align with the State Residential Indoor Water Use Efficiency Standard, established as 47 gallons per capita per day (GPCD) through 2029 and 42 GPCD beginning in 2030. This step multiplies the per-capita volume by each Wholesale Customer’s Population and Base Period SFPUC Reliance to determine the total amount of supply allocated to each Wholesale Customer in this step.

Step 2: Non-Residential Base Allocation
Step 2 allocates water based on each Wholesale Customer’s estimated non-residential indoor/base demand.

To calculate non-residential indoor/base demand, each Wholesale Customer’s Base Period SFPUC Purchases are multiplied by:
• Base Period Percent Indoor Demand
• Base Period Percent Non-Residential Demand
• Non-Residential Base Allocation Factor – this is equal to one minus 50% of the Overall Average Wholesale Customer Reduction.
o For example, in a 20% Overall Average Wholesale Customer Reduction, the Non-Residential Base Allocation Factor will be 90% (1 – (20% ÷ 2)) of each Wholesale Customer’s non-residential indoor/base demand. 1 SB 1157, signed into law in September 2022, established the standard for efficient indoor residential water use be 47 gallons per capita per day (“GPCD”), lowering to 42 GPCD in 2030.

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Step 3: SFPUC Maximum Cutback Reserve
The Maximum Cutback establishes the lower limit for each Wholesale Customer’s final allocation. See Step 0 for more information.

No water is allocated in this step. Instead, this step calculates the gap between each Wholesale Customer’s allocation after Step 2 and the lower limit of its potential final allocation. This step then reserves the sum of the gap for all Wholesale Customers from the Overall Wholesale Customer Allocation for Step 5. This Maximum Cutback Reserve ensures, after other steps are applied, that sufficient water is available in the final step to provide that each Wholesale Customer’s final allocation is equal to, or greater than, the lower limit of its potential allocation established by the Maximum Cutback.

Step 4: Seasonal Allocation
Step 4 allocates water based on estimated seasonal purchases from the RWS.

The inverse of each Wholesale Customer’s Base Period Percent Indoor Demand (1 - % Indoor Demand) is used to estimate percent seasonal demand, which is then multiplied by Base Period SFPUC Purchases to estimate each Wholesale Customers’ SFPUC seasonal purchases. Each Wholesale Customer’s estimated SFPUC seasonal purchases are multiplied by the Seasonal Cutback Factor to establish each Wholesale Customer’s Seasonal Allocation.

The Seasonal Cutback Factor is calculated based upon the Overall Wholesale Customer Allocation remaining to be allocated after Step 2. Of the remaining Overall Wholesale Customer Allocation after Step 2 (less the Maximum Cutback Reserve), 50% is allocated through the Seasonal Minimum Allocation Step. The detailed methodology for calculating the Seasonal Cutback Factor is described in Attachment B.

Step 5: SFPUC Purchases and ISG-Based Allocation
Step 5 allocates the water remaining after Step 4 to get agencies as close to the “Target Allocation” as possible. Each Wholesale Customer’s Target Allocation is based on a weighted share of two-thirds Base Period SFPUC Purchases and one-third ISG (or proxy) while ensuring each agency’s final allocation is between the Minimum and Maximum Cutback limits.

The detailed methodology for calculating the Base Period SFPUC Purchases and ISG weighted allocation is described in Attachment B.

6. Plan Implementation
The Tier 2 Plan applies when, and only when, the SFPUC declares a Drought that has is a system-wide water shortage of 20 percent or less. The Tier 2 Plan applies only to water acquired and distributed by the SFPUC to the Wholesale Customers through the WSA and has no effect on water obtained by a Wholesale Customer from any source other than the SFPUC.

Shortages Greater than 20 Percent
In no way should it be construed that the Wholesale Customers relieve the SFPUC of its obligations established in the Level of Service goals adopted in the Water System Improvement

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Program (“WSIP”), including the level of service goal to “meet dry-year delivery needs while limiting drought rationing to a maximum 20 percent system-wide reduction water service during extended droughts” (2023 Amended and Updated LOS Goals and Objectives, SFPUC Resolution No. 23-0210, adopted November 28, 2023, updating the Resolution No. 08-0200, adopted October 30, 2008). Should conditions occur that result in system-wide shortages greater than 20%, the provisions in WSA Section 3.11(C) apply. The Tier 2 Plan calculations may be used during discussions with the SFPUC on how to implement reductions above 20% with the Wholesale Customers and for planning purposes only to estimate potential Wholesale Customer allocations for system-wide shortages greater than 20% (e.g., to inform efforts such as Urban Water Management Plans).

BAWSCA Role in Plan Implementation
In accordance with the WSA, upon the SFPUC’s declaration or reconfirmation of a water shortage emergency, BAWSCA will calculate and provide the SFPUC with each Wholesale Customer’s individual percentage share of the amount of water allocated to the Wholesale Customers collectively.

In the event that shortage conditions change and the SFPUC takes action to declare an increase or decrease to the system-wide shortage level, BAWSCA will recalculate the Tier 2 Plan and submit new Allocation Factors to the SFPUC. When rerunning the Tier 2 calculations, the Base Period will not change to provide predictability (Policy Principle #3). The only inputs that will change are the Overall Wholesale Customer Allocation and population, if a more recent Annual Survey has been published.

If the appropriate base period data, as specified in this Plan, are not available when BAWSCA initially calculates the Tier 2 Allocation Factors, the Base Period may be updated. However, BAWSCA may only provide the SFPUC with updated Allocation Factors if the Commission takes action to declare or reconfirm a shortage condition.

Each year, BAWSCA will provide the Wholesale Customers with a review of the Tier 2 Plan.

The annual review will include:
• Calculation of each Wholesale Customer’s Allocation Factor for regional shortages of 10% and 20% for the current Base Period, based upon the most recent published BAWSCA Annual Survey;
• Review of Base Period data used to develop the calculations.

7. Plan Term
The term of the Tier 2 Plan will be the same as the WSA term and may be extended by the written agreement of all the Wholesale Customers. The Tier 2 Plan negotiators chose to coordinate the Plan term with WSA term in order to avoid simultaneous renegotiation of these related agreements. Pursuant to WSA Section 2, the WSA expires on June 30, 2034. In December 2031, the SFPUC may provide written notice to the Wholesale Customers that it is willing to extend the WSA for five years, through June 30, 2039. Between January 1, 2032 and June 30, 2032, any Wholesale Customer may accept the SFPUC's offer to extend the Term by providing a written notice of extension to the SFPUC. If the WSA is extended, the Tier 2 Plan

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shall expire on December 31, 2034, unless extended by the written agreement of all Wholesale Customers. The Wholesale Customers will meet to review and potentially negotiate amendments to the Tier 2 Plan between July 2032 and June 2034.

If the SFPUC is not willing to extend the term of the WSA, or the Wholesale Customers decline the offer to extend the term of the WSA, the term of the Tier 2 Plan shall be automatically extended for two additional years through December 31, 2036 to allow for more time for the Wholesale Customers to meet to review and potentially negotiate amendments to the Tier 2 Plan between July 2034 and June 2036.

Sample schedules described above are provided in the table below.

Date
Extension of WSA with Limited
Negotiated Changes
Parties must renegotiate WSA
Terms
Dec 2031 SFPUC indicates willingness to extend
term of WSA for 5 years
SFPUC indicates willingness to extend
term of WSA for 5 years
Jan - Jun
2032
Wholesale Customers accept offer to
extend term of WSA
Wholesale Customers decline offer to
extend term of WSA
Jul 2032 -
Jun 2034
Wholesale Customers meet to review,
extend and potentially negotiate
amendments to the Tier 2 Plan
SFPUC and Wholesale Customers
negotiate amendments to WSA
Jul 2034 –
Jun 2036
W holesale Customers meet to review
and potentially negotiate amendments
to the Tier 2 Plan

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Attachment A: List of Abbreviations and Definitions
Abbreviations
BAWSCA – Bay Area Water Supply and Conservation Agency
GPCD – gallons per capita per day
ISG – Individual Supply Guarantee
MGD – million gallons per day
RWS – San Francisco Regional Water System
SFPUC – San Francisco Public Utilities Commission
WSA – Amended and Restated Water Supply Agreement between the City and County of San Francisco and the Wholesale Customers in Alameda, San Mateo and Santa Clara Counties WSIP – Water System Improvement Program
Definitions
Allocation Factor – Each Wholesale Customer's portion of the Overall Wholesale Customer Allocation, expressed as a percent.

Base Period – The average of each Wholesale Customer’s two years with the highest volumes of SFPUC purchases from the previous three non-Drought years.

BAWSCA Annual Survey – An annual survey of the Wholesale Customers, conducted by BAWSCA, to update key service area information including actual and projections of Wholesale Customer water demand and population.

Drought – “[a] water shortage caused by lack of precipitation, as reflected in resolutions of the Commission calling for voluntary or mandatory water rationing based on evaluation of water stored or otherwise available to the Regional Water System, whether or not the Commission declares a water shortage emergency pursuant to Water Code §§ 350 et seq., as amended from time to time." (WSA, Attachment A)
Individual Supply Guarantee – “[each] Wholesale Customer’s share of the Supply Assurance, as shown in Attachment C [to the WSA]." (WSA, Attachment A) Overall Average Wholesale Customer Reduction – The percent cutback from Base Period SFPUC Purchases, calculated by dividing the Overall Wholesale Customer Allocation by the sum of the Wholesale Customer's Base Period SFPUC Purchases.

Overall Wholesale Customer Allocation or Tier 1 Allocation – The volume of water available to the Wholesale Customers from the RWS.

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Regional Water System – “[the] water storage, transmission and treatment system operated by the SFPUC in Tuolumne, Stanislaus, San Joaquin, Alameda, Santa Clara, San Mateo and San Francisco counties, including projects constructed under the WSIP, but excluding Direct Retail and Direct Wholesale assets." (WSA, Attachment A)
SFPUC Purchases – For the purposes of the Tier 2 Plan, SFPUC Purchases are defined as the volume of water purchased by and delivered to a Wholesale Customer for use within its service area. SFPUC Purchases specifically exclude (1) In-Lieu Water, which is Regional Water System water pursuant to the WSA and the Regional Groundwater Storage and Recovery Project Operating Agreement and (2) Imputed Sales, both defined in the WSA, Attachment A.

Supply Assurance – “[the] 184 MGD maximum annual average metered supply of water dedicated by San Francisco to public use in the Wholesale Service Area (not including San Jose and Santa Clara) in the 1984 Agreement and Section 3.01 of this Agreement." (WSA, Attachment A)
Tier 1 Plan or Tier 1 Shortage Plan – “[the] Water Shortage Allocation Plan (Attachment H) adopted by the SFPUC and the Wholesale Customers in conjunction with this Agreement [the WSA] describing the method for allocating water between the SFPUC and the Wholesale Customers collectively for shortages of up to 20% of deliveries from the Regional Water System, as amended from time-to-time." (WSA, Attachment A) Tier 2 Plan or Tier 2 Drought Response Implementation Plan – The method of apportioning the Tier 1 Allocation among the 26 Wholesale Customers.

Tier 2 Plan Allocation Model – The Excel-based tool used for applying the Tier 2 Plan allocation methodology and determining each Wholesale Customer's Allocation Factor.

Wholesale Customers – “[the] 26 water customers identified in Section 1.02 [of the WSA] that are contracting for purchase of water from San Francisco pursuant to [the WSA].” (WSA, Attachment A)

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Attachment B: Tier 2 Plan Data Sources and Calculations BAWSCA Annual Survey
Each year, BAWSCA conducts an annual survey of its members in order to update key BAWSCA service area information including population, current and projected water use, and climatology. BAWSCA begins collecting data in October of each year. The Wholesale Customers submit data through BAWSCA’s Water Conservation Database. Between approximately January and March, BAWSCA reviews the Wholesale Customers’ submissions for potential errors and works with Wholesale Customers to confirm and finalize the data. The final report is published around March of each year for the fiscal year ending the previous June 30 th.

Base Period inputs will use data published in the Annual Surveys from the previous three non- Drought years. Depending on when the SFPUC declares a shortage emergency, the most recent non-Drought year’s Annual Survey may not be finalized and published. If the most recent non-Drought year’s Annual Survey is not available, the Base Period inputs will use data from the three most recent non-Drought year’s published in Annual Surveys.

Base Period
The Tier 2 Plan uses historical SFPUC purchases, total potable water production, monthly potable production, potable consumption by customer category, and population for Steps 0 through 5. These values are established using a historical base period with established water supply and delivery data.

The Base Period for all inputs except population is defined as the average from the highest two years of SFPUC Purchases over the most recent three non-Drought years. The selection of Base Period is unique to each Wholesale Customer. Two example agencies are provided in the table below, where the data associated with the highest two years are highlighted.

Previous Non-
Drought Year
Agency A Agency B
SFPUC
Purchases
Percent Non-
Residential
SFPUC
Purchases
Percent Non-
Residential
Year 1 2.50 70% 5.90 58%
Year 2 2.75 69% 6.20 56%
Year 3 2.40 67% 6.10 55%
Calculation (2.5 0 + 2. 75)
2 ( 0.7 0 + 0. 69)
2 ( 6.2 0 + 6. 10)
2 ( 0.5 6 + 0. 55)
2 Average of Highest
Two Years 2.63 70% 6.15 55.5%
Coastside CWD Special Provisions for Base Period Calculations Coastside CWD Base Period SFPUC Purchases will be calculated as 94% of its Base Period Total Potable Water Production. Base Period SFPUC Reliance will be fixed at 94%.

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Coastside CWD’s high variability in SFPUC purchases from year to year, the California Coastal Commission limitations on growth in its service area, and geographical and hydrological isolation set it apart from other Wholesale Customers. Uniquely among the Wholesale Customers, Coastside CWD does not have interties with other Wholesale Customers or agencies. Additionally, it has junior rights on local surface water supplies. To ensure resiliency, Coastside CWD must maximize its use of Denniston Creek in normal years to provide evidence to the State in its ongoing case to perfect its water rights. This results in low RWS purchases in non-drought years, which are the source of each Wholesale Customer’s Base Period. The Coastside CWD special provisions for Base Period SFPUC Purchases ensure its dry year reliance on the RWS is reflected in the Tier 2 Plan.

Minimum Cutback Factor
The minimum cutback factor is used to establish the upper limit at or below which each Wholesale Customer’s final allocation will be. The minimum cutback factor is equal to 1/3 times the Overall Average Wholesale Customer Reduction, expressed as a percentage. Base Period SFPUC Purchases (up to ISG or proxy) are multiplied by 1 minus the minimum cutback factor.

An example equation is provided below.

𝑊𝑊ℎ𝑜𝑜
𝑜𝑜𝑜𝑜𝑜𝑜𝑜𝑜𝑜𝑜𝑜𝑜 𝐶𝐶𝐶𝐶𝑜𝑜𝐶𝐶𝑜𝑜𝐶𝐶𝑜𝑜𝐶𝐶 𝑓𝑓
𝑓𝑓𝑓𝑓𝑜𝑜𝑜𝑜 𝑜𝑜𝑜𝑜
𝑜𝑜𝑜𝑜𝑎𝑎𝑜𝑜𝐶𝐶
𝑓𝑓𝑜𝑜𝑓𝑓 𝐶𝐶𝑢𝑢
𝑢𝑢𝑜𝑜
𝐶𝐶 𝑜𝑜
𝑓𝑓𝐶𝐶𝑓𝑓𝐶𝐶 = 𝐵𝐵𝑜𝑜
𝑜𝑜𝑜𝑜 𝑃𝑃𝑜𝑜
𝐶𝐶𝑓𝑓𝑜𝑜𝑃𝑃 𝑆𝑆
𝑆𝑆𝑃𝑃𝑆𝑆
𝐶𝐶 𝑃𝑃𝐶𝐶
𝐶𝐶𝑎𝑎ℎ𝑜𝑜
𝑜𝑜𝑜𝑜𝑜𝑜 × �1 −
(1 3⁄ × 𝑂𝑂
𝑂𝑂𝑜𝑜
𝐶𝐶𝑜𝑜𝑜𝑜𝑜𝑜 𝐴𝐴
𝑂𝑂𝑜𝑜𝐶𝐶𝑜𝑜
𝐴𝐴
𝑜𝑜 𝑊𝑊ℎ𝑜𝑜
𝑜𝑜𝑜𝑜𝑜𝑜𝑜𝑜𝑜𝑜𝑜𝑜 𝐶𝐶𝐶𝐶𝑜𝑜𝐶𝐶𝑜𝑜𝐶𝐶𝑜𝑜𝐶𝐶 𝑅𝑅𝑜𝑜
𝑃𝑃𝐶𝐶𝑎𝑎𝐶𝐶𝑓𝑓𝑜𝑜𝑓𝑓)�
Step 1 Override Exception
If a Wholesale Customer’s allocation in Step 1 (Efficient Residential Allocation) is greater than the upper limit of its potential allocation established by the Minimum Cutback, the Step 1 allocation will override. However, no Wholesale Customer’s final cutback will be less than 5%.

For example, in a 20% Overall Average Wholesale Customer Reduction, the Minimum Cutback will be 6.67% (20% × 1/3). An example Wholesale Customer’s calculation is provided below.

Base Period SFPUC Purchases 5.0 MGD
Minimum Cutback Factor - 6.67%
Upper Limit of Potential Final Allocation 4.67 MGD
Population 101,000
Base Period SFPUC Reliance 100%
Residential Efficient Allocation 47 GPCD
Step 1 Allocation 4.75 MGD
The ex
ample agency’s final cutback will be 5.1% as calculated below:

4.75 𝐶𝐶
𝐴𝐴𝑃𝑃 5
.0 𝐶𝐶
𝐴𝐴𝑃𝑃 − 1 = −5
.1%⁄
Maximum Cutback Factor
The maximum cutback factor is used to establish the lower limit at or above each Wholesale Customer’s final allocation. The maximum cutback factor is equal to 1.5 times the Overall Average Wholesale Customer Reduction, expressed as a percentage. Base Period SFPUC

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21418818.2
Purchases (up to ISG or proxy) are multiplied by 1 minus the minimum cutback factor. An example equation is provided below.

𝑊𝑊ℎ𝑜𝑜𝑜𝑜𝑜𝑜𝑜𝑜𝑜𝑜𝑜𝑜𝑜𝑜 𝐶𝐶𝐶𝐶𝑜𝑜𝐶𝐶𝑜𝑜𝐶𝐶𝑜𝑜𝐶𝐶 𝑓𝑓
𝑓𝑓𝑓𝑓𝑜𝑜𝑜𝑜 𝑜𝑜𝑜𝑜
𝑜𝑜𝑜𝑜𝑎𝑎𝑜𝑜𝐶𝐶
𝑓𝑓𝑜𝑜𝑓𝑓 𝑜𝑜
𝑜𝑜
𝑙𝑙
𝑜𝑜𝐶𝐶 𝑜𝑜
𝑓𝑓𝐶𝐶𝑓𝑓𝐶𝐶
= 𝐵𝐵𝑜𝑜
𝑜𝑜𝑜𝑜 𝑃𝑃𝑜𝑜
𝐶𝐶𝑓𝑓𝑜𝑜
𝑃𝑃 𝑆𝑆𝑆𝑆𝑃𝑃𝑆𝑆
𝐶𝐶 𝑃𝑃𝐶𝐶
𝐶𝐶𝑎𝑎ℎ𝑜𝑜
𝑜𝑜𝑜𝑜𝑜𝑜
× �1 − (1
.5 × 𝑂𝑂𝑂𝑂𝑜𝑜
𝐶𝐶𝑜𝑜𝑜𝑜𝑜𝑜 𝐴𝐴
𝑂𝑂𝑜𝑜𝐶𝐶𝑜𝑜
𝐴𝐴
𝑜𝑜 𝑊𝑊ℎ𝑜𝑜
𝑜𝑜𝑜𝑜𝑜𝑜𝑜𝑜𝑜𝑜𝑜𝑜 𝐶𝐶𝐶𝐶𝑜𝑜𝐶𝐶𝑜𝑜𝐶𝐶𝑜𝑜𝐶𝐶 𝑅𝑅𝑜𝑜
𝑃𝑃𝐶𝐶𝑎𝑎𝐶𝐶𝑓𝑓𝑜𝑜𝑓𝑓)�
Efficient Residential Volume
The Tier 2 Plan uses a per-capita volume, in gallons, to calculate each Wholesale Customer’s Efficient Residential Allocation (Step 1 of the Allocation Model). The per-capita volume is 47 gallons per capita per day through 2029 and 42 GPCD beginning in 2030, consistent with the State of California Indoor Residential Water Use Standard for 2025 established by SB 1157.

SFPUC Reliance
For agencies with multiple potable water sources, the Tier 2 Plan calculates SFPUC Reliance by dividing each agency’s Base Period SFPUC Purchases by Base Period Total Potable Water Production, expressed as a percentage. SFPUC Reliance is used in Step 1 to calculate multi- source agency’s Residential Efficient Allocation met by the RWS.

Population
The Tier 2 Plan uses population reported in the most recently published Annual Survey to calculate each Wholesale Customer’s Efficient Residential Allocation in Step 1.

BAWSCA reviews data submitted for the Annual Survey and works with agencies to ensure the information is correct before making it public. As part of this annual review, BAWSCA will flag any agencies that have reported population increases greater than 5%. BAWSCA will first confirm with the agency that there are no reporting errors. If the reported data are correct, BAWSCA will include a note to all agencies during the annual review of the Tier 2 Plan.

Stanford University Population Calculation
Stanford has historically reported its population in the BAWSCA Annual Survey using data from the Stanford Office of Institutional Research & Decision Support, which annually documents population based on student enrollment and data from human resources. This number captures all students (undergraduate and graduate), post-docs, faculty, and staff that are employed and work on campus. The population report does not directly capture residential population that is not enrolled or employed (significant others or dependents). However, it would include a daytime population component. Stanford reviewed several population sources and calculation methods including census data. Based on review of the available sources for population information, Stanford proposed, and the BAWSCA agencies agreed, to utilize a formula that captures student and faculty/staff residential population. This new approach would eliminate the inclusion of daytime staff and faculty who do not live on campus.

The formula takes the Office of Institutional Research & Decision Support data and uses only the "Total Students" and adds a multiplier of 2.57 people per residence (single and multi-family) for the faculty/staff housing area.

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Stanford Population = (Faculty/Staff Housing Residences x 2.57) + ("Total Students" from Population Report)
Percent Indoor Demand
For each Base Period year, percent indoor demand is calculated by dividing each Wholesale Customer’s lowest month of potable production by the Wholesale Customer’s average monthly potable production. The two resulting percentages are averaged together. An example equation is provided below, where Y
1 and Y2 represent the two Base Period years.
% 𝐼𝐼𝑓𝑓
𝑃𝑃𝑜𝑜𝑜𝑜𝐶𝐶 𝑆𝑆
𝑜𝑜𝑜𝑜 =
𝐿𝐿𝑜𝑜𝑙𝑙𝑜𝑜
𝑜𝑜𝐶𝐶 𝑀𝑀
𝑜𝑜𝑓𝑓𝐶𝐶ℎ 𝑃𝑃𝐶𝐶
𝑜𝑜𝑃𝑃𝐶𝐶
𝑎𝑎𝐶𝐶𝑓𝑓𝑜𝑜𝑓𝑓, 𝑌𝑌1
𝐴𝐴𝑂𝑂𝑜𝑜𝐶𝐶𝑜𝑜𝐴𝐴𝑜𝑜 𝑀𝑀 𝑜𝑜𝑓𝑓𝐶𝐶ℎ𝑜𝑜 𝑙𝑙 𝑃𝑃𝐶𝐶 𝑜𝑜𝑃𝑃𝐶𝐶 𝑎𝑎𝐶𝐶𝑓𝑓𝑜𝑜𝑓𝑓, 𝑌𝑌1 + 𝐿𝐿𝑜𝑜𝑙𝑙𝑜𝑜 𝑜𝑜𝐶𝐶 𝑀𝑀 𝑜𝑜𝑓𝑓𝐶𝐶ℎ 𝑃𝑃𝐶𝐶 𝑜𝑜𝑃𝑃𝐶𝐶 𝑎𝑎𝐶𝐶𝑓𝑓𝑜𝑜𝑓𝑓, 𝑌𝑌2
𝐴𝐴𝑂𝑂𝑜𝑜𝐶𝐶𝑜𝑜𝐴𝐴𝑜𝑜 𝑀𝑀 𝑜𝑜𝑓𝑓𝐶𝐶ℎ𝑜𝑜 𝑙𝑙 𝑃𝑃𝐶𝐶 𝑜𝑜𝑃𝑃𝐶𝐶 𝑎𝑎𝐶𝐶𝑓𝑓𝑜𝑜𝑓𝑓, 𝑌𝑌2 2 Percent Seasonal Demand
Percent seasonal demand is calculated as the inverse of percent indoor demand.

𝑃𝑃𝑜𝑜
𝐶𝐶𝑎𝑎𝑜𝑜𝑓𝑓𝐶𝐶 𝑆𝑆𝑜𝑜
𝑜𝑜𝑜𝑜𝑜𝑜𝑓𝑓𝑜𝑜𝑜𝑜 𝐷𝐷𝑜𝑜
𝐶𝐶𝑜𝑜𝑓𝑓𝑃𝑃 = 1 − % 𝐼𝐼𝑓𝑓
𝑃𝑃𝑜𝑜𝑜𝑜𝐶𝐶 𝐷𝐷𝑜𝑜
𝐶𝐶𝑜𝑜𝑓𝑓𝑃𝑃
Percent Non-Residential Demand
For each Base Period year, percent non-residential demand is calculated by first dividing each Wholesale Customer’s potable water consumption from all residential customer categories by the Wholesale Customer’s total annual potable production. The resulting percentage is subtracted from one to calculate the inverse and thus captures all non-residential demands including non-revenue water and dedicated irrigation meters2. The two resulting percentages from the two Base Period years are averaged together. An example equation is provided below, where Y1 and Y2 represent the two Base Period years.
% 𝑁𝑁
𝑅𝑅 𝑆𝑆
𝑜𝑜𝑜𝑜 =
(1 − 𝑅𝑅𝑜𝑜
𝑜𝑜𝑓𝑓𝑃𝑃𝑜𝑜𝑓𝑓𝐶𝐶𝑓𝑓𝑜𝑜𝑜𝑜 𝑆𝑆
𝑜𝑜𝑜𝑜, 𝑌𝑌1
𝑃𝑃𝑜𝑜 𝐶𝐶𝑜𝑜 𝑃𝑃𝑜𝑜 𝑜𝑜 𝑃𝑃𝐶𝐶 𝑜𝑜 𝑃𝑃𝐶𝐶 𝑎𝑎𝐶𝐶𝑓𝑓𝑜𝑜𝑓𝑓, 𝑌𝑌1
) + (1 − 𝑅𝑅𝑜𝑜 𝑜𝑜𝑓𝑓𝑃𝑃𝑜𝑜𝑓𝑓𝐶𝐶𝑓𝑓𝑜𝑜𝑜𝑜 𝑆𝑆 𝑜𝑜𝑜𝑜, 𝑌𝑌2
𝑃𝑃𝑜𝑜 𝐶𝐶𝑜𝑜 𝑃𝑃𝑜𝑜 𝑜𝑜 𝑃𝑃𝐶𝐶 𝑜𝑜 𝑃𝑃𝐶𝐶 𝑎𝑎𝐶𝐶𝑓𝑓𝑜𝑜𝑓𝑓, 𝑌𝑌2
)
2 Individual Supply Guarantee (ISG)
Use of ISG in the Tier 2 Plan
Each Wholesale Customer’s ISG is used in the Tier 2 Plan calculations with proxies for Hayward, San Jose and Santa Clara, in order to provide inputs for the Tier 2 Allocation Formula.

See WSA, Attachment C for a current list of ISG values.

Hayward’s de facto ISG (22.1 MGD) is used in place of permanent ISG for the purposes of the Tier 2 Plan calculations. This figure is used in WSA, Attachment D, to determine whether Hayward’s increased use requires pro-rata reduction of remaining Wholesale Customers’ ISG. 2 Prior to FY 22-23, all consumption recorded under the dedicated irrigation sector in the Water Conservation Database is assumed to be non-residential. Starting in FY 22-23, Wholesale Customers were given the option to separate out residential vs. non-residential dedicated irrigation consumption.

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San Jose and Santa Clara’s temporary and interruptible contract amounts (4.5 MGD each) are used in place of ISG for the purposes of the Tier 2 Plan calculations.

Background on ISG
San Francisco has a perpetual legal obligation and commitment (Supply Assurance) to deliver 184 MGD to the 24 permanent Wholesale Customers collectively. The Supply Assurance is subsequently allocated among the 24 permanent Wholesale Customers through Individual Supply Guarantees (ISG), which represent each Wholesale Customer’s share of the 184 MGD Supply Assurance. San Jose and Santa Clara are not included in San Francisco’s Supply Assurance obligation; rather each has a temporary and interruptible water supply contract with San Francisco. Through the WSA and its individual contracts with San Jose and Santa Clara, San Francisco has many requirements to plan for water supply development and analyze the sufficiency of water supply to San Jose and Santa Clara. For example, San Francisco must complete a CEQA review and provide at least a 10-year notice of interruption.

Hayward does not have an Individual Supply Guarantee
San Francisco and Hayward entered into a water supply contract on February 9,1962 (the "1962 contract") which provided that San Francisco would supply Hayward with all water supplemental to water controlled by Hayward, in sufficient quantity to supply the total water needs of Hayward’s service area "on a permanent basis." This 1962 contract remains the Individual Water Sales Contract between San Francisco and Hayward. Due to the terms of this ongoing contract, Hayward does not have an ISG. If Hayward’s purchases exceed 22.1 MGD for three consecutive years, the remaining 23 Wholesale Customer's ISG will be reduced on a pro rata (WSA, Attachment D).

Currently, the sum of the 23 Wholesale Customers fixed ISG is 161.9 MGD. 184 MGD Supply Assurance - 161.9 MGD = 22.1 MGD water available for Hayward purchases (i.e., Hayward’s “de facto” ISG)
Hayward’s proxy ISG for the purpose of the Tier 2 Plan is 22.1 MGD.

San Jose and Santa Clara do not have an Individual Supply Guarantee During the term of the 1984 Settlement Agreement, San Francisco provided water to San Jose and Santa Clara on a temporary and interruptible basis, pursuant to SFPUC Resolution No. 85- 0256. The SFPUC has contracted to supply a combined annual average of 9 MGD to San Jose and Santa Clara (4.5 MGD each) through 2028. The 9 MGD allocated to San Jose and Santa Clara is not included in the Supply Assurance. San Francisco will decide whether to make San Jose and Santa Clara permanent customers by December 31, 2028. (WSA, Sec. 4.05) San Jose and Santa Clara’s proxy ISG for the purpose of the Tier 2 Plan is 4.5 MGD each.

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Tier 2 Drought Implementation Plan
July 2024 Model Concept - Efficient Res Allocation + Non-Res Base Allocation + Seasonal Allocation + Base SFPUC Purchases/ISG-Based Allocation - Variable Base Year Model Set-up/Assumptions Base Years
Allocation Year/Projection Year FY24-25 Non-Drought Year 1 FY18-19 Tier 1 Shortage Allocation (mgd) 114.20 Non-Drought Year 2 FY19-20 Base Period SFPUC Purchases (mgd) 134.34 Non-Drought Year 3 FY20-21 Overall Reduction from Base Period
Required -15.0%
SFPUC Maximum Cutback Factor -22.5% Error Message(s) (if applicable) SFPUC Minimum Cutback Factor -5.0%
Non-Residential Base Allocation % 92.5%
Step 5 Reserved % of Remaining Tier
1 Allocation (less Step 3 Reserved)
after Step 2
50%
Unreserved % of Remaining Tier 1
Allocation (less Step 3 Reserved and
Step 5 Reserved) After Step 2
50%
Seasonal Allocation % 7.9%
Step 5 ISG Weighting 33%
Step 5 Base SFPUC Purchases
Weighting 67%
Residential Efficient Allocation (R-
GPCD) 47.0
Adjustment % for SFPUC Minimum
Cutback, if efficient residential
allocation is greater than minimum
cutback
95%
Effective Date for Model Run (update for
testing only) 12/16/2024
Instructions:

1. Adjust aqua cells in OVERVIEW tab to adjust model
parameters. If there are errors in the inputs, an error message will appear in Columns E-F.

2. View allocation calculations and results in "Tier 2
Allocation" and "Agency Charts" tabs.

Calculation Steps for July 2024 Model Concept:

0. SFPUC Minimum Cutback
a. Calculate Minimum Cutback from Lesser of Base Period SFPUC Purchases and ISG (Lesser of Base Period SFPUC Purchases and ISG × [1+SFPUC Minimum Cutback Factor]) b. Calculate Efficient Residential Allocation (population × per capita allocation × % SFPUC reliance)
c. Determine if Minimum Cutback is greater than the Efficient Residential Allocation d. If Efficient Residential Allocation is greater than the Minimum Cutback, an agency's cutback may be no less than 5%

1. Efficient Residential Allocation
a. Calculate Efficient Residential Allocation (population × per capita allocation) b. Account for % SFPUC Reliance
c. Provide Efficient Residential Allocation

2. Non-Residential Base Allocation
a. Incorporate Estimated % Indoor Use (see glossary for definition and calculation of % Indoor Use) b. Incorporate % Non-Residential Use
c. Calculate Non-Residential Base Allocation (% Indoor Use × % Non-Residential Use × Base Period SFPUC Purchases × Non-Residential Indoor Allocation %) d. Add Non-Residential Base Allocation to the Step 1 Allocation

3. Calculate Potential SFPUC Maximum Cutback Need
a. Calculate SFPUC Maximum Cutback (Base Period SFPUC Purchases × [1+ SFPUC Maximum Cutback Factor])
b. Reserve the sum of the potential SFPUC Maximum Cutback need for Step 5 (Maximum Cutback Reserve)

4. Seasonal Allocation
a. Determine % Seasonal Use (1 - % Indoor Use)
b. Calculate seasonal SFPUC Purchases (Base Period SFPUC Purchases × % Seasonal Use) c. Calculate Seasonal Allocation (seasonal SFPUC Purchases × Seasonal Allocation %) d. Add the Seasonal Allocation to the Step 2 Allocation

5. Base Period/ISG-Based Allocation
a. Calculate weighted average of Base Period SFPUC Purchases and ISG, up to Minimum Cutback b. Calculate Weighted Share of total Tier 1 Allocation to Wholesale Customers (agency weighted average Base Period SFPUC Purchases/ISG ÷ total Wholesale Customer weighted average × Tier 1 Allocation)
c. Calculate the gap between Step 4 allocation and the lesser of 1) weighted share, or 2) Minimum Cutback
d. Allocate remaining supplies, except Maximum Cutback Reserve, among agencies with a gap, proportionately to gap, up to the Minimum Cutback
e. Confirm allocation meets Maximum Cutback; allocate water from Maximum Cutback Reserve up to Maximum Cutback
f. Allocate remaining supplies among agencies with a gap, proportionately to gap, up to the Minimum Cutback
Attachment C: Example of Tier 2 Plan Excel-Based Model Calculations

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FY24-25
Tier 2 Allocation Model FY22-23
Relevant Base Period Data 1. E
fficient Residential Allocation
Agency Selected
Base Year 1
Selected
Base Year 2
Base
Period
SFPUC
Purchases
(mgd)
Base Period
Reliance on
SFPUC
ISG
(mgd)
Total
Potable
Production
(mgd)
Lesser of Base
Period SFPUC
Purchases and
ISG (mgd)
SFPUC
Minimum
Cutback
(mgd)
SFPUC
Maximum
Cutback
(mgd)
Is efficient
residential
allocation
greater than
minimum
cutback?
Adjusted SFPUC
Minimum
Cutback, if
efficient
residential
allocation is
greater than

0. Effective
S
FPUC
Minimum
Cutback
(mgd)
Population
% Potable
Demand
Reliance on
SFPUC
Allocation
based on
efficient
residential
indoor use
(mgd)
Efficient
Residential
Allocation

1. Efficient
R
esidential
(
mgd)
Alameda CWD 2021 2020 8.63 22% 13.76 39.32 8.63 8.20 6.69 8.20 344,000 22% 16.17 3.55 3.55 Brisbane 2019 2020 0.65 100% 0.98 0.65 0.65 0.62 0.50 0.62 4,851 100% 0.23 0.23 0.23 Burlingame 2020 2019 3.45 100% 5.23 3.45 3.45 3.28 2.67 3.28 31,080 100% 1.46 1.46 1.46 Coastside 2021 2019 1.69 94% 2.18 1.80 1.69 1.61 1.31 1.61 18,890 94% 0.89 0.83 0.83 CWS - Total 2021 2020 29.23 95% 35.68 30.62 29.23 27.77 22.66 27.77 262,704 95% 12.35 11.78 11.78 Daly City 2020 2019 3.84 64% 4.29 6.00 3.84 3.64 2.97 3.64 107,000 64% 5.03 3.22 3.22 East Palo Alto 2020 2019 1.57 100% 3.46 1.57 1.57 1.49 1.21 1.49 29,519 100% 1.39 1.39 1.39 Estero 2020 2021 4.32 100% 5.90 4.32 4.32 4.10 3.35 4.10 37,443 100% 1.76 1.76 1.76 Hayward 2021 2019 14.26 100% 22.10 14.26 14.26 13.55 11.06 13.55 159,800 100% 7.51 7.51 7.51 Hillsborough 2021 2020 2.66 100% 4.09 2.66 2.66 2.53 2.06 2.53 11,592 100% 0.54 0.54 0.54 Menlo Park 2019 2020 3.09 100% 4.46 3.09 3.09 2.94 2.40 2.94 20,319 100% 0.95 0.95 0.95 Mid-Peninsula 2020 2021 2.63 100% 3.89 2.63 2.63 2.50 2.04 2.50 30,159 100% 1.42 1.42 1.42 Millbrae 2019 2020 1.92 100% 3.15 1.92 1.92 1.83 1.49 1.83 20,666 100% 0.97 0.97 0.97 Milpitas 2020 2021 5.67 67% 9.23 8.49 5.67 5.39 4.40 5.39 81,067 67% 3.81 2.54 2.54 Mountain View 2021 2020 7.78 87% 12.46 8.90 7.78 7.40 6.03 7.40 81,501 87% 3.83 3.35 3.35 North Coast 2021 2020 2.39 100% 3.84 2.39 2.39 2.27 1.85 2.27 37,082 100% 1.74 1.74 1.74 Palo Alto 2021 2020 9.95 100% 16.58 9.95 9.95 9.45 7.71 9.45 68,624 100% 3.23 3.23 3.23 Purissima Hills 2021 2020 1.82 100% 1.62 1.82 1.62 1.54 1.26 1.54 7,350 100% 0.35 0.35 0.35 Redwood City 2020 2021 8.62 100% 10.93 8.62 8.62 8.19 6.68 8.19 90,928 100% 4.27 4.27 4.27 San Bruno 2020 2021 0.93 30% 3.25 3.09 0.93 0.89 0.72 0.89 43,910 30% 2.06 0.62 0.62 San Jose 2019 2020 4.27 99% 4.50 4.29 4.27 4.05 3.31 4.05 43,036 99% 2.02 2.01 2.01 Santa Clara 2020 2021 3.25 20% 4.50 16.27 3.25 3.09 2.52 3.09 132,476 20% 6.23 1.24 1.24 Stanford 2020 2019 1.43 100% 3.03 1.43 1.43 1.36 1.11 1.36 20,000 100% 0.94 0.94 0.94 Sunnyvale 2021 2020 9.47 54% 12.58 17.68 9.47 8.99 7.34 8.99 156,317 54% 7.35 3.93 3.93 Westborough 2020 2019 0.80 100% 1.32 0.80 0.80 0.76 0.62 0.76 13,486 100% 0.63 0.63 0.63 Total 134.34 193.02 196.04 134.14 1,853,800 87.13 60.49 Allocated 60.49
Unallocated 53.71
Reserved 0
Allocation Year/Projection Year

0. E
stablish SFPUC Minimum Cutback
No water is allocatied in this step
Establishes the upper limit of each agency's final allocation Most Recent Annual Survey Data Year

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2. Non-Residential Base Allocation 3 . S FPUC Maximum Cutback "Reserve" 4. S easonal Allocation 5. B ase SFPUC Purchases/ISG-Based Allocation with Minimum Cutback Estimated %
Indoor Use
% Non-
Residential
Use
Non-
Residential
Base
Allocation
(mgd)

2. N
on-
Residential
Base
Allocation
(mgd)
SFPUC Maximum
Cutback (mgd)2
Does Step 2
Allocation Meet
SFPUC Maximum
Cutback?
SFPUC
Maximum
Cutback
Shortfall
(mgd)
% Seasonal
Use
Seasonal
SFPUC
Purchases
(mgd)
Seasonal
Allocation
(mgd)

4. S easonal
Allocation
(mgd)
Weighted
Average of Base
Period SFPUC
Purchases (up to
ISG) and ISG
(mgd)
Weighted Share
of Tier 1
Allocation (mgd)
Lesser of
Weighted Share
and Minimum
Cutback
Allocation
(i.e., Target
Allocation)
Target
Allocation
Based Gap
(mgd)
Target
Based
Allocation 1
(mgd)
69% 41% 2.22 5. 77 6.69 0.92 31% 2.71 0. 22 5.99 10.33 7.68 7.68 1.69 0.31 66% 68% 0.27 0.50 0.50 0.01 34% 0.22 0.02 0.51 0.76 0.56 0.56 0.05 0.01 73% 40% 0.93 2. 39 2.67 0.28 27% 0.93 0. 07 2.46 4.04 3.00 3.00 0.54 0.10 64% 46% 0.47 1. 30 1.31 0.01 36% 0.60 0. 05 1.35 1.85 1.38 1.38 0.03 0.01 61% 30% 5.02 16.80 22.66 5.85 39% 11.26 0.89 17.69 31.36 23.32 23.32 5.62 1.05 88% 23% 0.73 3. 64 2.97 0.00 12% 0.46 0. 04 3.64 3.99 2.96 2.96 0.00 0.00 79% 18% 0.21 1.49 1.21 0.00 21% 0.33 0.03 1.49 2.19 1.63 1.49 0.00 0.00 63% 45% 1.13 2.89 3.35 0.46 37% 1.58 0.13 3.01 4.84 3.60 3.60 0.59 0.11 72% 45% 4.33 11. 85 11.06 0.00 28% 3.95 0. 31 12.16 16.85 12.53 12.53 0.37 0.07 36% 9% 0.08 0.62 2.06 1.44 64% 1.70 0.14 0.76 3.13 2.33 2.33 1.57 0.29 53% 63% 0.94 1. 90 2.40 0.50 47% 1.47 0. 12 2.01 3.54 2.63 2.63 0.62 0.12 68% 27% 0.45 1. 87 2.04 0.18 32% 0.86 0. 07 1.93 3.05 2.27 2.27 0.33 0.06 76% 36% 0.49 1.46 1.49 0.03 24% 0.46 0.04 1.49 2.33 1.73 1.73 0.24 0.04 78% 51% 2.08 4. 62 4.40 0.00 22% 1.23 0. 10 4.72 6.85 5.09 5.09 0.37 0.07 66% 43% 2.04 5. 39 6.03 0.65 34% 2.64 0. 21 5.60 9.33 6.94 6.94 1.34 0.25 80% 24% 0.42 2.16 1.85 0.00 20% 0.48 0.04 2.20 2.87 2.13 2.13 0.00 0.00 61% 38% 2.11 5. 34 7.71 2.37 39% 3.90 0. 31 5.65 12.14 9.03 9.03 3.38 0.63 38% 12% 0.07 0. 42 1.26 0.84 62% 1.13 0. 09 0.51 1.62 1.21 1.21 0.70 0.13 68% 34% 1.81 6.08 6.68 0.60 32% 2.80 0.22 6.31 9.38 6.98 6.98 0.67 0.13 78% 29% 0.20 0. 82 0.72 0.00 22% 0.21 0. 02 0.84 1.70 1.26 0.89 0.05 0.01 69% 62% 1.68 3.69 3.31 0.00 31% 1.33 0.11 3.79 4.34 3.23 3.23 0.00 0.00 73% 50% 1.10 2. 35 2.52 0.17 27% 0.88 0. 07 2.42 3.66 2.72 2.72 0.31 0.06 63% 45% 0.38 1. 32 1.11 0.00 37% 0.53 0. 04 1.36 1.96 1.46 1.36 0.00 0.00 69% 42% 2.54 6.48 7.34 0.86 31% 2.98 0.24 6.71 10.49 7.80 7.80 1.09 0.20 73% 26% 0.14 0. 76 0.62 0.00 27% 0.22 0. 02 0.76 0.97 0.72 0.72 0.00 0.00

31.83 91.90 103.98 15.18 44.87 3.56 95.38 153.57 114.20 113.58 19.56 3.64

91.90 91.90 95.38

22.30 22.30 18.82
0 15.18 15.18
No water is allocatied in this step
Establishes the lower limit of an agency's final
allocation and potential need is reserved for Step 5
Basis for Target Allocation (SFPUC
Purchases / ISG weighting from
OVERVIEW tab)
Target Allocation First Iteration of Base Per
Allocation

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Tier 2 Allocation Model
Agency
Alameda CWD
Brisbane
Burlingame
Coastside
CWS - Total
Daly City
East Palo Alto
Estero
Hayward
Hillsborough
Menlo Park
Mid-Peninsula
Millbrae
Milpitas
Mountain View
North Coast
Palo Alto
Purissima Hills
Redwood City
San Bruno
San Jose
Santa Clara
Stanford
Sunnyvale
Westborough
Total
Allocated
Unallocated
Reserved
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First Iteration
of Target
Based
Allocation
(mgd)
Does Step 5
Initial Allocation
Meet SFPUC
Maximum
Cutback?
Maximum
Cutback
(mgd)
Initial Step 5
Allocation with
Maximum
Cutback (mgd)
Target
Allocation
Based Gap
(mgd)3
Target
Based
Allocation 2
(mgd)
Second
Iteration of
Target Based
Allocation
(mgd)
Equal or Greater
than Weighted
Share/Minimum
Cutback
Target
Allocation
Based Gap 3
(mgd)
Third
Iteration of
Target Based
Allocation
(mgd)

5. Weighted
S
hare/
Maximum
Cutback Based
Allocation
(mgd)
Final Allocation
(mgd)
Cutback
Percentage
Allocation
Factor

6.30 0.39 6.69 0.99 0.88 7.57 0.11 0.00 7.57 7.57 12.3% 6.6%

0.52 0.00 0.52 0.04 0.04 0.56 0.00 0.00 0.56 0.56 13.8% 0.5%

2.56 0.11 2.67 0.33 0.29 2.97 0.04 0.00 2.97 2.97 14.0% 2.6%

1.35 0.00 1.35 0.02 0.02 1.38 0.00 0.00 1.38 1.38 18.8% 1.2%

18.74 3.91 22.66 0.66 0.59 23.24 0.07 0.00 23.24 23.24 20.5% 20.4%

3.64 0.00 3.64 0.00 0.00 3.64 0.00 0.00 3.64 3.64 5.0% 3.2%

1.49 0.00 1.49 0.00 0.00 1.49 0.00 0.00 1.49 1.49 5.0% 1.3%

3.12 0.23 3.35 0.25 0.22 3.57 0.03 0.00 3.57 3.57 17.3% 3.1%

12.23 0.00 12.23 0.30 0.27 12.50 0.03 0.00 12.50 12.50 12.4% 10.9%

1.05 1.01 2.06 0.27 0.24 2.30 0.03 0.00 2.30 2.30 13.6% 2.0%

2.13 0.27 2.40 0.24 0.21 2.61 0.03 0.00 2.61 2.61 15.7% 2.3%

2.00 0.05 2.04 0.23 0.20 2.24 0.03 0.00 2.24 2.24 14.9% 2.0%

1.54 0.00 1.54 0.19 0.17 1.71 0.02 0.00 1.71 1.71 11.1% 1.5%

4.79 0.00 4.79 0.30 0.27 5.06 0.03 0.00 5.06 5.06 10.8% 4.4%

5.85 0.19 6.03 0.90 0.80 6.84 0.10 0.00 6.84 6.84 12.2% 6.0%

2.20 0.00 2.20 0.00 0.00 2.20 0.00 0.00 2.20 2.20 7.7% 1.9%

6.28 1.44 7.71 1.31 1.17 8.88 0.15 0.00 8.88 8.88 10.8% 7.8%

0.64 0.62 1.26 0.00 0.00 1.26 0.00 0.00 1.26 1.26 30.9% 1.1%

6.43 0.25 6.68 0.29 0.26 6.95 0.03 0.00 6.95 6.95 19.5% 6.1%

0.85 0.00 0.85 0.04 0.04 0.88 0.00 0.00 0.88 0.88 5.5% 0.8%

3.79 0.00 3.79 0.00 0.00 3.79 0.00 0.00 3.79 3.79 11.1% 3.3%

2.47 0.05 2.52 0.20 0.18 2.70 0.02 0.00 2.70 2.70 16.9% 2.4%

1.36 0.00 1.36 0.00 0.00 1.36 0.00 0.00 1.36 1.36 5.0% 1.2%

6.92 0.42 7.34 0.47 0.41 7.75 0.05 0.00 7.75 7.75 18.1% 6.8%

0.76 0.00 0.76 0.00 0.00 0.76 0.00 0.00 0.76 0.76 5.0% 0.7%

99.02 8.92 107.95 7.04 6.25 114.20 0.79 0.00 114.20 114.20

99.02 107.95 114.20 114.20

0.00 6.25 0.00 0.00

15.18 0.00 0.00 0.00
Third Iteration of Base Period/ISG-Based Allocation
If all agencies meet their Target Allocation, remaining water is allocated up to Minimum Cutback
iod/ISG-Based Maximum Cutback Second Iteration of Base Period/ISG-Based Allocation

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Agency
Allocatio
n Year
(FY)
Allocatio
n Year
(integer)
Final
Allocation
(mgd)
Cutback
Percentag
e
Allocation
Factor Input Category Value
Allocati
on Year
(FY)
Allocatio
n Year
(integer)
Alameda CWD FY24-25 2025 7.57 12% 7% Allocation Year/Projection Year FY24-25 FY24-25 2025 Brisbane FY24-25 2025 0.56 14% 0% Tier 1 Shortage Allocation (mgd) 114.20 FY24-25 2025 Burlingame FY24-25 2025 2.97 14% 3% Overall Reduction from Base Period Required -15% FY24-25 2025 Coastside FY24-25 2025 1.38 19% 1% SFPUC Maximum Cutback Factor -22% FY24-25 2025 CWS - Total FY24-25 2025 23.24 20% 20% SFPUC Minimum Cutback Factor -5% FY24-25 2025 Daly City FY24-25 2025 3.64 5% 3% Non-Residential Base Allocation % 93% FY24-25 2025 East Palo Alto FY24-25 2025 1.49 5% 1% Step 5 Reserved % of Remaining Tier 1 Allocation (less Step 50% FY24-25 2025 Estero FY24-25 2025 3.57 17% 3% Unreserved % of Remaining Tier 1 Allocation (less Step 3 50% F Y24-25 2025 Hayward FY24-25 2025 12.50 12% 11% Seasonal Allocation % 8% FY24-25 2025 Hillsborough FY24-25 2025 2.30 14% 2% Step 5 ISG Weighting 33% FY24-25 2025 Menlo Park FY24-25 2025 2.61 16% 2% Step 5 Base SFPUC Purchases Weighting 67% FY24-25 2025 Mid-Peninsula FY24-25 2025 2.24 15% 2% Residential Efficient Allocation (R-GPCD) 47.0 FY24-25 2025 Millbrae FY24-25 2025 1.71 11% 1% Adjustment % for SFPUC Minimum Cutback, if efficient 95% FY24-25 2025 Milpitas FY24-25 2025 5.06 11% 4%
Mountain View FY24-25 2025 6.84 12% 6%
North Coast FY24-25 2025 2.20 8% 2%
Palo Alto FY24-25 2025 8.88 11% 8%
Purissima Hills FY24-25 2025 1.26 31% 1%
Redwood City FY24-25 2025 6.95 19% 6%
San Bruno FY24-25 2025 0.88 5% 1%
San Jose FY24-25 2025 3.79 11% 3%
Santa Clara FY24-25 2025 2.70 17% 2%
Stanford FY24-25 2025 1.36 5% 1%
Sunnyvale FY24-25 2025 7.75 18% 7%
Westborough FY24-25 2025 0.76 5% 1%

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CITY OF MILPITAS

AGENDA REPORT
(AR)
Item Title: Adopt a Resolution to Authorize Continued Utilization of Leased Vehicles Under the Master Equity Lease Agreement with Enterprise Fleet Management, Inc. (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: 6/17/2025
Recommendation: Adopt a resolution to (1) Authorize continued utilization of leased vehicles under the Master Equity Lease Agreement with Enterprise Fleet Management, Inc., subject to appropriation of funds; and (2) Authorize the Purchasing Agent, or designee, to sign lease ordering documents and update the applicable Lease Schedule as required.

BACKGROUND:

The City fleet consists of 180 owned vehicles and 27 leased vehicles for a total of 207 and includes vehicles such as fire apparatus and police vehicles, light and heavy-duty trucks, and passenger sedans. All City vehicles, including leased vehicles, are maintained by the City Public Works Department. Leased vehicles are either assigned to specific City Departments to support their operations or are allocated for general motor pool use.

On June 4, 2019, the City Council adopted Resolution No. 8878 approving a Master Equity Lease Agreement (Agreement) with Enterprise Fleet Management, Inc. (Enterprise) leveraging a competitive Request for Proposal conducted by the National Joint Powers Alliance (now Sourcewell) in accordance with the City’s Municipal Code Section I-2-3.05, Public Agency Purchases. On May 4, 2022, Sourcewell awarded a new contract to Enterprise, allowing the City to continue to leveraging Sourcewell’s competitive process in accordance with Municipal Code Section I-2-3.05. Use of the Agreement enabled the City to replace 27 underutilized, aging vehicles in the City fleet.

Consistent with Municipal Code Section I-2-3.05, the Purchasing Agent has reviewed all the documentation from Sourcewell and has determined the underlying agreement or program was made utilizing competitive negotiation or procurement procedures at least as restrictive as the City’s, and the price quoted is the same as offered in the original contract.

While the term of the Agreement is perpetual, i.e., does not expire as long as the City has leased vehicles through the Agreement or the Agreement is not terminated by the parties in accordance with Agreement terms, the City Council approval was for a period of five years with an annual amount not to exceed $168,000 and a five-year maximum compensation of $840,000. The effective start date of Council approval was December 17, 2019, when the City received the first leased vehicle, and ended December 16, 2024 On May 22, 2025, pursuant to the City’s Municipal Code Section I-2-3.21, Authority to Modify Contracts Awarded by City Council, the Purchasing Agent extended the operative term of the Agreement by 12 months through December 16, 2025 and authorized a change order to increase the contract by $20,000 for a revised maximum compensation of $860,000, subject to the appropriation of funds. On June 12, 2025, pursuant to the City’s Municipal Code Section I-2-3.21, Authority to Modify Contracts Awarded by City Council, the Purchasing Agent authorized a second change order to increase the contract by $20,000 for a cumulative change order amount of $40,000 and a revised maximum compensation of $880,000, subject to the appropriation of funds.

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The present action would authorize continued use of the Agreement, subject to appropriation of funds for such leases by the City Council, and authorize the Purchasing Agent to sign lease ordering documents and update the applicable Lease schedules as required, including to effectuate the changes in the City fleet described herein for an estimated annual savings of $43,000.

ANALYSIS:

Replacing aging City-owned vehicles with leased vehicles lowered the City’s vehicle maintenance and fuel costs and reduced greenhouse gas emissions through leasing hybrid, plug-in hybrid, and all-electric vehicles in support of the City’s Climate Action Plan. Given these benefits, the Public Works Department analyzed various vehicle use trends with the intent to negotiate a lease extension for currently leased vehicles through the Agreement.

The current leased vehicle fleet of 27 vehicles consists of the following:
•Ten (10) Nissan Leaf (all electric)
•Six (6) Toyota Prius Prime (plug-in hybrid), and
•Eleven (11) Toyota RAV 4 (hybrid)
To assess the need to decrease or augment the number of leased vehicles, Public Works reviewed departmental vehicle assignments and utilization, motor pool utilization rates, and vehicle equity positions.

Based on this data, Public Works recommends reducing the number of leased vehicles from 27 to 21. This reduction will balance the City vehicle usage and reduce the City’s annual lease costs which are borne by the General Fund.

Based on current utilization rates, Public Works recommends reducing the City Hall motor pool vehicles from eight to five and removing three leased vehicles specifically assigned to the Code Enforcement, Planning, and Recreation departments as staff members in these departments can reserve vehicles from the City Hall motor pool instead. This reduction will save the City over $30,000 annually and support a shift towards increased use of the City motor pool. In the future, Public Works will continue to review utilization rate statistics to better assess the need to add or remove vehicles as it strives to right-size the City’s fleet.

During its analysis, Public Works also considered reconfiguring the makes and models of the leased fleet based on a review of vehicle residual values and related equity positions. If the City continues utilizing the Agreement, with City Council approval, the current leased fleet would be returned, and the residual value of all vehicles would be determined. Residual value is the value of the car at the end of the lease term, and current equity position is the difference between the vehicle’s current market value and the remaining lease balance. If the market value exceeds the remaining lease balance, there is positive equity. This positive equity would be used to reduce the cost of the City’s next lease. Conversely, negative equity means the value of the vehicle at the end of the lease is less than the current market value of the vehicle, and this negative equity would be rolled over into the next lease agreement.

In the City’s current leased fleet inventory, the residual value and equity position of all Nissan Leaf vehicles are currently estimated to be negative; whereas, the Toyota RAV 4 and Toyota Prius Prime vehicles are currently estimated to have positive equity positions. This is a significant factor in the recommendation to remove the 10 Nissan Leaf vehicles. Four of the Nissan Leaf vehicles are identified for removal as part of the downsizing of the City Hall motor pool. Public Works also recommends trading in the other six Nissan Leaf vehicles for two Ford Mavericks, three Toyota Prius Prime vehicles, and one RAV 4. Introducing Ford Mavericks to the City Hall motor pool will benefit City staff by providing a vehicle option to transport larger or heavier items. All currently leased vehicles will be replaced with 2025 models and will be maintained by Public Works fleet staff, as is currently done. Through these replacements, staff estimates an additional annual savings for the City of over $13,000.

Alternatively, the City could elect to eliminate leasing through the Agreement completely and instead purchase the vehicles. Taking into consideration that only 21 of the 27 currently leased vehicles are identified as necessary for future operations, the cost to purchase 21 vehicles would be approximately $750,000.

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Another option would be to only purchase the 12 vehicles assigned to the Building Inspection and Fire Prevention divisions as staff in these divisions rely on these vehicles to perform their daily operations and eliminate the City Hall motor poll altogether. In this scenario, Public Works would purchase Toyota RAV 4 vehicles, which are better suited for these operations, at a current market price of $35,000 each for a total cost of approximately $420,000. Adding these vehicles to the City’s overall owned fleet count will require budgeting annual fleet replacement costs, impacting the General Fund over time. Additionally, eliminating the nine City Hall motor pool vehicles currently used by Information Technology, Recreation, and other City departments to conduct business, could adversely affect operations and cause staff to rely on the use of personal vehicles in accordance with the established City Vehicle Use Policy when traveling on City business.

If continued use of the Agreement is approved, there will be a delay of up to six months before the new leased vehicles are delivered. During this time, City staff will decommission the six vehicles to be eliminated from the leased vehicle fleet and return them to Enterprise, which should take about one month.

The table below summarizes the current leased vehicle fleet and outlines proposed adjustments upon approval by City Council. The not-to-exceed cost is currently estimated to be $115,000 annually which is about $450 per month per vehicle for the replaced leased vehicle fleet. The cost for the six vehicles to be decommissioned will be approximately $3,000 for the month it will take the City to return them, and the estimated six-month cost for the current 21 vehicles to be replaced is $60,000.

Vehicle Assignment
Current
Year
Current
Make
Current
Model
Proposed
Year
Propose
d Make
Proposed
Model
1 Building Inspection 2020 Nissan LEAF 2025 Toyota Prius Prime 2 Building Inspection 2020 Toyota Prius Prime 2025 Toyota Prius Prime 3 Building Inspection 2020 Toyota RAV4 Hybrid 2025 Toyota RAV4 Hybrid 4 Building Inspection 2020 Toyota RAV4 Hybrid 2025 Toyota RAV4 Hybrid 5 Building Inspection 2020 Toyota RAV4 Hybrid 2025 Toyota RAV4 Hybrid 6 Building Inspection 2020 Toyota RAV4 Hybrid 2025 Toyota RAV4 Hybrid 7 Code Enforcement 2020 Toyota Prius Prime Eliminated
8 Planning 2020 Nissan LEAF Eliminated
9 Fire Prevention 2020 Toyota RAV4 Hybrid 2025 Toyota RAV4 Hybrid 10 Fire Prevention 2020 Toyota RAV4 Hybrid 2025 Toyota RAV4 Hybrid 11 Fire Prevention 2020 Toyota RAV4 Hybrid 2025 Toyota RAV4 Hybrid 12 Fire Prevention 2020 Toyota RAV4 Hybrid 2025 Toyota RAV4 Hybrid 13 Fire Prevention 2020 Toyota RAV4 Hybrid 2025 Toyota RAV4 Hybrid 14 Fire Prevention 2020 Toyota RAV4 Hybrid 2025 Toyota RAV4 Hybrid 15 IT Motor Pool 2020 Nissan LEAF 2025 Toyota Prius Prime 16 IT Motor Pool 2020 Nissan LEAF 2025 Toyota RAV4 Hybrid 17 City Hall Motor Pool 2020 Toyota Prius Prime 2025 Toyota RAV4 Hybrid 18 City Hall Motor Pool 2020 Toyota Prius Prime 2025 Toyota RAV4 Hybrid 19 City Hall Motor Pool 2020 Toyota Prius Prime 2025 Toyota RAV4 Hybrid 20 City Hall Motor Pool 2020 Nissan LEAF 2025 Ford Maverick 21 City Hall Motor Pool 2020 Nissan LEAF 2025 Ford Maverick 22 City Hall Motor Pool 2020 Nissan LEAF 2025 Toyota RAV4 Hybrid 23 City Hall Motor Pool 2020 Nissan LEAF Eliminated
24 City Hall Motor Pool 2020 Nissan LEAF Eliminated
25 City Hall Motor Pool 2020 Nissan LEAF Eliminated
26 Recreation Motor Pool 2020 Toyota Prius Prime Eliminated 27 Recreation Motor Pool 2020 Toyota RAV4 Hybrid 2025 Toyota RAV4 Hybrid POLICY ALTERNATIVE(S):

Alternative 1: Do not approve these Recommendations, return current leased fleet in its entirety, and do not replace.

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Pros: This would lower City costs.

Cons: This would significantly impact City operations and departments, such as Fire Prevention and Building Inspection, whose staff rely on City-provided vehicles to perform their job duties.

Alternative 2: Do not approve these Recommendations, return current leased fleet in its entirety, and purchase vehicles directly.

Pros: None.

Cons: Replacing leased vehicles with purchased vehicles will cost the City significantly more in upfront costs and will impact the General Fund over time for vehicle replacement costs. Additionally, purchased vehicles are typically not replaced until they are near or at the end of their useful life which will result in increased maintenance costs for the City due to the increased need for maintenance as vehicles get older.

Reason for Not Recommending: If vehicles are to be purchased instead of leased, the City would have to increase its Vehicle Replacement Fund budget and its budget for ongoing costs such as maintenance.

Additionally, depending on how many vehicles are to be purchased, departments may experience an impact in to operations.

FISCAL IMPACT:

Sufficient funds to support this recommendation were requested in the City’s non-departmental budget for Fiscal Year 2025-2026, which was approved by the City Council on June 3, 2025. These funds will cover the estimated $115,000 annual costs for the new leased vehicle fleet of 21 once they are replaced, following the six-month transitionary period, as well as estimated additional costs of $63,000 for maintaining the existing leased vehicles during the transitionary period. Lease vehicles costs beyond Fiscal Year 2025-2026 will be subject to the appropriation of funds through the City’s annual budgeting process.

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. The action entails the operation, leasing, or minor alteration of existing public equipment, 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) Resolution
(b) Master Equity Lease Agreement

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RESOLUTION NO. ______

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MILPITAS

AUTHORIZING CONTINUANCE OF AN AGREEMENT WITH ENTERPRISE FLEET

MANAGEMENT FOR A VEHICLE LEASING PROGRAM THROUGH A

COOPERATIVE PROCUREMENT CONTRACT
WHEREAS, Milpitas Municipal Code Section I-2-3.08 (“Cooperative Procurement”) authorizes the City Council to award contracts without competition, when the purchase is pursuant to a cooperative agreement by another public agency in California that used competitive negotiation or bidding procedures at least as restrictive as the City’s; and
WHEREAS, Municipal Code Section I-2-3.08 specifically authorizes the Purchasing Agent to make such purchases based on an agreement or cooperative purchasing program entered into by a public agency, as defined by Government Code Section 6500, regardless of whether the City is a named party to the agreement or an actual participant in such a program, provided that the underlying purchase was made using competitive negotiation or bidding procedures at least as restrictive as the City’s, and that the supplies or general services purchased must be the same and be offered at the same price as the supplies and general services subject to the agreement or program; and

WHEREAS, on June 4, 2019 the City Council adopted a Resolution No. 8878 authorizing a Master Equity Lease Agreement with Enterprise Fleet Management through a Cooperative Procurement Contract, facilitating the lease of 27 fuel-efficient vehicles; and
WHEREAS, on May 4, 2022, Sourcewell awarded Contract No. 030122-EFM to Enterprise Fleet Management, current through April 18, 2026, pursuant to RFP No. 030122; and WHEREAS, consistent with Section I-2-3.05 of the Municipal Code, which authorizes the Purchasing Agent to make purchases based upon an agreement or cooperative purchasing program entered into by another public agency, the Purchasing Agent has reviewed all the documentation from Sourcewell and has determined the underlying agreement or program was made utilizing competitive negotiation or procurement procedures at least as restrictive as the City’s, and the price quoted is the same as offered in the original contract; and WHEREAS, a Master Equity Lease agreement has allowed the City to replace aging vehicles at a lower cost, budget for consistent maintenance costs, reduce the City’s fuel costs, and achieve reduced greenhouse gas emissions through the lease of hybrid, plug-in hybrid, and all-electric vehicles.; and WHEREAS, the Public Works Department conducted a review of vehicle utilization metrics and lease costs over the past five years to evaluate continued participation in a Master Equity Lease agreement with Enterprise Fleet Management.

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

2. The City Council authorizes the continued utilization of the Master Equity Lease Agreement with Enterprise Fleet Management, Inc., and the continued lease of vehicles thereunder, subject to the appropriation of funds.

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3. The Purchasing Agent, or designee, is authorized to negotiate and execute such documents as are necessary to lease vehicles under the Master Equity Lease Agreement, including by signing lease ordering documents and updating the applicable lease schedules as required.

PASSED AND ADOPTED this ____ day of June 2025 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

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terp rise

FLEET MANAGEMENT

MASTER EQUITY LEASE AGREEMENT
Thus l aster Equity e ase Agreemen t rs e ered mnto tns l4t h day o' June , 2019 by and be!weer Er ter s e F' Trust a Delaware statutory trust Lessor } and le lessee vhes name and address rs set forth on the s gr ature page below Lessre LEASE OF VEHICLES sor hereb y leases to essee al Lesses tereb lease f on Lessor tho eh cie s d duall y a eh l e a a olle t el the ve es des e d r the schedul es' om time tot me tel veteduy _essor to tessee as se forth bely S hedul (s) )for tne rentals ard onthe terr s set fortn 1r t11s Agreemert an:J 1n the appl cable Schedule References +o this Agreenren shall include this Master Equity Lease Agreement and the various Schedules and addenda to this Master Equity Lease Agreement Lessor will on or about the date of delivery of each Vehicle to Lessee send Lessee a Schedule cover ng the Vehicle v much w l include among other things a descri ption of the Vehicl e the lease term and the monthl y rental and other payments due wth respect to the Veh cle The terms co tame d r eacr such Schedule wll be binamng on Lessee ur less Lessee or ects mn wr tung to such Schedule wthmn ten (10 days after the date of delivery of the Vehicle covered by such Sched1.le Lessor 1s the sole legal owner of each Vehicle Th s Agreement 1s a lease only ara Lessee wrll have no right t tie or rte rest 111 or to the Ver cies except for tte use of the Veh cles as 1.lesv 1bed n this Agreement Thrs Agreerrent shall be treated as a true lease for federal and applicabl e state ncome tax purp oses with lessor havng all oene f ts of own ership of tbe Vehicles It is understood and agre ed that Enterpri se Fleet Management Inc or an affiliate thereof (together with any subserv1cer ageqt successor or assign as servicer on oehalf of Lessor Servicer ) may adm1111ster this Agreement on behalf of Lessor and may perform the service functions herein provided to be performed by Lessor 2 TERM The term of this Agreement ( Term ) for each Vehicle beg ns on the date such Vehicle 1s delivered to Lessee (the Delivery Date ) and unless terminated earlier 1n accordance with the terms of this Agre ement continues for the Lease Term as described in the applicable Schedule 3 RENT AND OTHER CHARGES
(a) Lessee agrees to pay Lessor monthly rental and other payments according to the Schedules and this Agreement The monthly payments w ll be in the amount listed as the Total Monthly Rental Including Add1t1onal Services on the appl cable Schedule (with any portion of such amount 1dent1f1ed as a charge for maintenance services under Section 4 of the applicable Schedule being payable to Lessor as agent for Enterprise Fleet Management Inc) and will be due and payable 1n advance on the first day of each month If a Vehicle 1s delivered to Lessee Oil any day other than the first day of a month monthly rental payments will begin on the first day of the next month In add1t1on to the monthly rental payments Lessee agrees to pay Lessor a pro-rated rental charge for the number of days that the Delivery Date precedes the first monthly rental payment date A portion of each monthly rental payment being the amount designated as Deprec1at1011 Reserve on the app licabl e Schedule will be considered as a reserv e for deprecation and will be credit ed against the Delivered Price of the Vehi cl e for purp oses of computing the Book Value of the Vehicle under Section 3(c) Lessee agrees to pay Lessor the Total Initial Charges set forth mn each Schedule on the due date of the first monthly rental payment under such Schedule Lessee agrees to pay Lessor the Service Charge Due at Lease Term111at1on set forth mn each Schedule at the end of the applicable Term (whether by reason of expi ra tion early term1nat1on or otherwise) (b) In the event the Term for any Vehicle ends prior to the last day of the scheduled Term whether as a result of a default by Lessee a Casualty Occurrence or any other reason the rentals and management fees paid by Lessee will be recalculated 111 accordance with the rule 0f 78s and the adJusted amount will be payable by Lessee to Lessor on the term 1nat1on date
(c) Lessee agrees to pay Lessor w1th1n thirty (30) days after the end of the Term for each Vehicle add1t1onal rent equal to the excess 1f any of the Book Value of such Vehicle over the greater of (1) the wholesale value of such Vehicle as determmed by Lessor mn good faith or (ii) except as provided below twenty percent (20%) of the Delivered Price of such Vehicle as set forth in the applicable Schedule If the Book Value of such Vehicle 1s less than the greater of (1) the wholesale value of such Vehicle as determined by Lessor in good faith or (Ii) except as provided below twenty perc ent (20%) of the Delivered Price of such Vehicle as set forth in the applicable Schedule Lessor agrees to pay such deficiency to Lessee as a terminal rental adJustment w1th1n thirty (30) days after the end of the applit,able Term Notw1thstand1ng the foregoing 1f (1) the Term for a Vehicle 1s greater than forty-eight (48) months (1nclud111g any extension of the Term for such Vehicle) (11) the mileage Oil a Vehicle at the end of the Term 1s greater than 15 000 miles per year on average (prorated on a da ly basis) (1 e 1f the mileage on a Vehicle with a Term of th1rty-s1x (36) months 1s greater than 45 000 miles) or (111) 1n the sole Judgment of Lessor a Vehicle has been subJect to damage or any abnormal or excessive wear and tear the calculations described n the two 1mrned1ately preceding sentences shall be made without g1v111g effect to cause (11) in each such sentence The Book Value of a Vehicle means the sum of () the Delivered Price of the Vehicle as set forth mn the applicable Schedule minu s (nu) the total Depre cation Reserve paid by Lessee to Lessor wrth respect to SL,ch Vehicle plus ( 11) all accrued and unpard rent arid or other amounts owed by Lessee with resoect to suer Vehicle
(d) Any security deposit of Lessee will be returned to Lessee at the end of the applicable Term except that the deposit will first be applied to any losses and/ or damages suffered by Lessor as a result of Lessees breach of or default under this Agreement and/or to any other amounts then owed by Lessee to Lessor (e) Any rental payment or other amount owed by Lessee to Lessor whrch 1s not paid w1th1n twenty (20) days after its due date will accrue interest payable on demand of Lessor from the date due until pad mn full at a rate per annum equal to the lesser of () Eighteen Percent (18%) per annum or (i) the highest rate permitted by applicable law (the Default Rate )
(f) If Lessee fads to pay any amount due under this Agreement or to comply with any of the covenants contained 1n this Agreement Lessor Servicer or any other agent of Lessor may at its option pay such amounts or perform such covenants and all sums paid or 111curred by Lessor mn connection therewith will be repayable by Lessee to Lessor upon demand together with interest thereon at the Default Rate l111t1als EF~ Customer~

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(g) Lessees obl1gat1ons to irake all payments of rent and other amounts under this Agreement are absolute and uncorid1t1onal and such payments shall be made in 1mrned1ately available funds w thout setoff counterclaim or deduction of any kind Lessee acknowledges and agrees that neither any Casualty Occurrence to a Veh cle r or any defect un tness or lack o1 gover 11ren'al appr oval mn of or with respect tu any Vet l e regardl ess of the ca,1se or consequere,e nor any breach by n terprise fleet Manageme nt Ic of any r artn ance agremen t betweer Enterp ni e flee' 1anageme n In and lessee o veri ng any Vemcle regardless of the cause or cons equenc e w I relieve Lessee from the perf ormar e f a y 0f 1ts 0bligat ons under this Agreement 1cludr g wutho ut him tat on the payment of rent and other ar ount urde thus, Agreemer
4 USE AND SURRENDER OF VEHICLES Lessee agrees t allow uny duly auhor z ed Ice se1 and s ure di erst use and operate t e Vehicl es essee age to mpiy tr arc ause ts drue s 'o comp ly with al iavs statutes les regulations and ordnances a d the pro s ons of all nsurance polici es afte tng) ove ng e les yr he s o p 9erat n essee ag e s tokes the emu ls tre fall lar narqes a dan mr a e Lessee acre s that 1n no e,en• w II any en7 cle be JSed or operated fo transporting hazardous substances or persor'S for r·1re for a1 y illegal purpose or t pull trailers t'lat exceec the manufacturers trailer towing recor1mendat1ons Lessee agrees that no Veh cle 1s intended to be or will be utilized as a school bus as defined 111 the Code of Federa l Regulat ons or any applicable state or munrc1pal statute or regulation Lessee agrees not 'o remove any Ver1cle frorr the continental United States without first obta1n1ng Lessors written consent At the exp1ra 1011 or earlier term1nat101 of th,s Agreement w th respect 0 each Wh cle or ~oor de•11and by Lessor made pursuant to Sector 14 Lessee at ts rs, and expense agrees to return such Vehicle to essor at such place and by sud' reasonable means as rnay be desrg ated by Lessor If for any reason Lesser fails to return ay Veh cle to Lessor as and wren requ red in accordance w th tris Sect on Lessee agrees to pay Lessor add1t1onal rent for sJch Vehicle at twce the normal p o-rated daliy rent Acceptar'ce of su r add1 ronal rent by Lessor w1ll 11 no way 11ml' c.essor s remedies w 1h respect to Lessees failure to return any Vehicle as required hereunder 5 COSTS EXPENSES FEES AND CHARGES Lessee agrees to pay all costs expenses fees charges fiu es t1cKets penalties and 'axes (other than federal and state income taxes on tl1e income of Lessor) incurred lfl connection with the tnlrng reg1strat on delivery purchase sale rental use or operation of the Vehicles during the Term If Lessor Servrcer or any other agent of Lessor incurs any such costs or expenses Lessee agrees to promptly reimburse Lessor for the same 6 LICENSE AND CHARGES Each Vehicle will be trtled and licensed 1n the name designated by Lessor at Lessees expense Certa11 other charges relating to the acqU1s1t1on of each Vehicle and paid or satisfied by Lessor have been capitalized 1n determining the monthl y rertal treated as an 1nit1al charge or otherwise charged to Lessee Such charges have been determined without reduction for trade-in exchange allowance or other credit attributable to any Lessor-owned vehicle
7 REGISTRATION PLATES ETC Lessee agrees at its expense to obt amn mn the name designated by Lessor all reg1strat1011 plates and other plates permits rnspect1ons and/or licenses required rn connection with the Vehicles except for the 1r11t1al reg1strat1011 plates which Lessor will obtain at Lessees expense The parties agree to cooperate and to furnrsh any and all rnformat1on or documentation which may be reasonably necessary for compliance with the provrs1ons of this Section or any federal state or local law rule regulation or ordrnance Lessee agrees that 1t will not permit any Vehicle to be located rn a state other than the state mn whicn such Vehicle rs then titl ed for any continuous per od of tmme that would require such Vehi cle to become subj ect to the titling and/or registrati on laws of such other state
8 MAINTENANCE OF AND IMPROVEMENTS TO VEHICLES
(a) Lessee agrees at its expense to (1) ma1r1ta1n the Vehicles in good cond1t1on repair maintenance and running order and mn accord ance with all manufacturers 1nstruct1ons and warranty requirements and all legal requirements and (11) furnish all labor materials parts and other essentials required for the proper operation and maintenance of the Vehicles Any alterations add1t1ons replacement parts or improvements to a Vehicle will become and remain the property of Lessor and will be returned with such Vehicle upon such Vehicles return pursuant to Section 4 Notw1thstand111g the foregoing so long as no Event of Default has occurred and s continuing Lessee shall have the right to remove any addrt1onal equipment installed by Lessee on a Vehicle prior to returning such Vehicle to Lessor under Section 4 The value of such alterations add1t1ons replacement parts and improvements w1ll 1n no instance be regarded as rent Without the prior wr tten consent of Lessor Lessee wrll not make any alter ations additions repl acement parts or rmprovements to any Vehicle which detract from its economic value or functional L,tl11ty Lessor will not be required to make any repairs or replacements of any nature or description with respect to any Vehicle to maintain or repair any Vehicle or to make any expenditure whatsoever in connectron with any Vehicle or thus Agreement (b) Lessor and Lessee acknowledge and agree that 1f Sect on 4 of a Schedule includes a charge for maintenance (1) the Vehrcle(s) covered by such Schedule are subJect to a separate maintenance agreement between Enterprise Fleet Management Inc and Lessee and (11) Lessor shall have no liability or responsrb1l1ty for any failure of Enterpr se Fleet Management Inc to perform any of its oblrgat1ons thereunder or to pay or reimburse Lessee for its payment of any costs and expenses c urred mn connection w th the maintenance or rea r of any such 'Vehicle(s) 9 SELECTION OF VEHICLES AND DISCLAIMER OF WARRANTIES
(a) LESSEE ACCEPTANCE OF DELIVERY AND USE OF EACH VEHICLE WILL CONCLUSIVELY ESTABLISH THAT SUCH VEHICLE IS OF A SIZE DESIGN

CAPACITY TYPE AND MANUFACTURE SELECTED BY LESSEE AND THAT SUCH VEHICLE IS IN GOOD CONDITION AND REPAIR AND IS SATISFACTORY IN ALL

RESPECTS AND IS SUITABLE FOR LESSEES PURPOSE LESSEE ACKNOWLEDGES THAT LESSOR IS NOT A MANUFACTURER OF ANY VEHICLE OR AN AGENT

OF A MANUFACTURER OF ANY VEHICLE
(b) LESSOR MAKES NO REPRESENTATION OR WARRANTY OF ANY KIND EXPRESS OR IMPLIED WITH RESPECT TO ANY VEHICLE INCLUDING WITHOUT

LIMITATION ANY REPRESENTATION OR WARRANTY AS TO CONDITION MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE IT BEING AGREED THAT ALL SUCH RISKS ARE TO BE BORNE BY LESSEE THE VEHICLES ARE LEASED AS IS WITH ALL FAULTS All warranties made by any supplier vendor and/or manufacturer of a Vehicle are hereby assigned by Lessor to Lessee for the applicable Term and Lessees only remedy rf any 1s against the supplier vendor oc m'°"""""' ol) eh,cle
'°""'' EfM €J, Costomo, 6l&::

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(c) None of Lessor Servicer or any other agent of Lessor will be liable to Lessee for any l1ab1l1ty claim loss damage (direct 1nc1dental or consequential) or expense of any kind or nature caused directly or 111d1rectly by any Vehicle or any inadequacy of any Vehicle for any purpose or any defect (latent or patent) In any Vehcle or the use or mainten ance o any Veh l e or any rea r servo ng or adjustment of or to any Vehicle o any delay n providing or failure to prov de ary Vehicle or any 11terr<1ptIon or loss o serv Ce or use of any Veh1 le or ary loss of bus111ess or any damage whatsoevPr and ho'l'.ever causPd In add1t on none of ._Pssor Servicer or any other agent of Lessor 'i.dl !,ave any l1abil1ty to Lessee under this Agreement or under any order author zat on form executed by Lessee f Lessor Is unable to lo ate r , pu' h2se 3 veh rlP 'Jrdered by LPssee c tor ary delay 11' delver; of an; Ver, cle ord ered by Le ee 10 RISK OF LOSS Lessee assume s anJ agrees to bear the ert re sk of loss of theft of damage o or des'ructior of any '/eh1cle f om any cause v/1a soever Casualty Occurrence lr the evert of a Casualt y c urren e to a \emi le Lessee shall gue e sscr prompt notce of the Casualty Occurrence and thereafter wllpla e tne 3pl able e h cle ng odr pa condt n and vo k g tr , ovded hw e er that f:he 3c l 3be vend e s determme db, Lessor to be lost s'olen1 destroyed or danag d beyond repair (a Totaled Vemui e ) lessee agre es to pay Lessor no later tha the date th rty (30) days after the date f the Casualty Occurrence the amounts owed under Sections 3(b) and 3(c) with respect to Such Totaled Vehirle Upon such payment this Agreement will terminate with respect to such Totaled Vehicle
11 INSURANCE
(a) Lessee agrees to purchase ard mart amr mn fore dur ng the "erm Ins urance ol cues m at least the amount s listed below covering eacn Vehi cle to be writter by an insurance company or co•npanIes sat1s1actory to Lessor ,nsur 7ge ssee Lesso and any otte r person or entity designated by e ssor aga nst any damage clam su,t action or l1abll1ty
(1) Commercial Autornob1le uabil1ty Insurance ( ncluding Uninsured Undermsured Motorist Coverage and No-Fault Protection where required by law) for the limits listed below (Note $2 000 000 Combined Single Limit Bodily Inj ury and Proper ty Damage wth No Deductibl e s required for each Vehicl e capabl e of transporting more than 8 passengers)
State of Vehicle Registration
Connecticut Massachusetts Maille New Hampshire "Jew Jersey New York Pennsylvania Rhode Island and Vermont
Flori da
All Other States
Coverage
$1 000 000 Combl!led Single L1m1t o dty Inj ury and Property Damage - No Deductible
$500 000 Combined Single L1rrnt Bodily Injury and Property Damage or $100 000 Bodily Injury Per Person $300 000 Per Occurrence and $50 000 Property Dama ge (100/300/50) - No Deductible
$300 000 Combl!led Single L1m1t Bodily Injury and Property Damage or $100 000 Bodily Injury Per Person $300 000 Per Occurrence and $50 000 Property Damage (100/300/50) -No Deductible
(11) Physical Damage Insurance (Coll1s1on & Comprehensive) Actual cash value of the applicable Vehicle Maximum deductible of $500 per occurrenc e Coll1s1on and $250 per occurrence - Comprehensive)
If the requirements of any governmental or regulatory agency exceed the mInImums stated In th s Agreement Lessee must obtam and mamnt amn the higher msurance requirements Lessee agrees that each required policy of insurance will by appropriate endorsement or otherwise name Lessor and any other person or entity designated by Lessor as additi onal insureds and loss payees as their respective interests may appear Further each such ins urance polc y must provide the foll owing (i) that the same may not be cancelled changed or modified until after the msurer has given to Lessor Servicer and any other person or entity designated by Lessor at least thirty (30) days prior written notice of such proposed cancellation change or mod1ficat1on (11) that no act or default of Lessee or any other person or entity shall affect the right of Lessor Servicer any other agent of Lessor or any of their respective successors or assigns to recover under such policy or policies of msurance ,n the event of any loss of or damage to any Vehicle and (uu) that the coverage Is primary coverage for the protection of Lessee Lessor Servicer any other agent of Lessor and their respective successors and assigns notw1thstand1ng any other coverage carried by Lessee Lessor Servicer any other agent of Lessor or any of their respective successors or assigns protecting against similar risks Original certificates ev1dencmg such coverage and naming Lessor Servicer any other agent of Lessor and any other person or entity designated by Lessor as add1t1onal insureds and loss payees shall be furnished to Lessor prior to the Delivery Date and ann ually 'hereafter and/or as reasonably requested by Lessor from time to time In the event of default Lessee hereby appoints Lessor Servicer and any other agent of Lessor as Lessees attorney-in-fact to rece ve payment of to endorse all checks and other documents and to take any other actions necessary to purs1..e insurance claims a,-d recover payments f Lessee fads to do so Any expense of Lessor Servicer or any other agent of Lessor In adJust,ng or collecting insurance shall be borne by Lessee Lessee its drivers servants and agents agree to cooperate fully with Lessor Servicer any other agent of Lessor and any msurance carriers Ill the 1nvest1gat1on defense and prosecution of all claims or suits arising from the use or operation of any Vehicle If any claim 1s made or action commenced for death personal injury or property damage resulti ng from the ownership maintenance use or operation of any Vehicle Lessee will promptly notify Lessor of such action or claim and forward to Lessor a copy of every demancl notice summons or other process received in connection with such claim or action (b) Notwithstanding the provIsIons of Section 11(a) above (1) 1f Section 4 of a Schedule 111cludes a charge for physical damage waiver Lessor agrees that (A) Lessee will not be require d to obtain or mant amn the mnmmum phy sical damage insurance {collision and comprehensi ve) required under Secti on 11(a) for the Vehicle(s) covere d by such Schedule and (B) Lessor will assume the risk of physical damage (collision and comprehensive) to the Vehcle(s) covere d by such Schedule provided however that such physical damage waiver shall not apply to and Lessee shall be and remain liable and responsible for damage to a covered Veh~ by wear and tear or mechanical breakdown or failure damage to or loss of any parts accessories or components added to a covered «o nu(£C c.. €&

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Vehicle by Lessee without tre prior written consent of Lessor and/or damage to or loss of any property and/or personal effects contained rn a covered Vehicle In the event of a Casualty Occurrence to a covered Vehicle Lessor may at ts option replace rather than repair the damaged 1/eh,cle with an equivalent vehicle which replacement veri cle will then constitute the Vehicle for ourposes of this Agreement and (11) 1f Section 4 of a Schedule includes a charge for commercial a,,tomobrle lrabli ty enrollment Lessor agrees that rt will at rt~ Pxpense oota1n for and on beha f of Lessee by addr g Lessee as an add rt onal rnsured under a commerc al automobile liabrl1ty nsurar~~e polrcy issued by ar, insurance company selected by Lessor commercial autornob le lrabli ty insurance sat1sfy1ng the mrn1mum ornrnerc,al automob le l1aorlrty insurance required Jnder Sect on 11a ) for the Veh1cle(s) covered by such Schedule Lessor may at a1y trrne during the appl cable Term termi nate sad o0hgat o to provide phy sical dama ge ware ar d /or omme 1al automobi le habtltt y enrollmen t and canc el such physical dar age waiver anc, or comme rc al a tornobrle lrab1lrty enrollnwn upo·1 g1v ng essee at least 'en (10 days prior wr tten notice Upon such cancella11011 insurance ~ the minimum amounts as set forth mn 11 a) shall be obtared and maint ained by e ssee at Lessees expens e Ar adjustmnert wi ll be made mn mont hl y rental charg es payable u Lesse t reflect at j sa h ange and Lessee ag e s t f r she so with satusfa tory proof of nsura e r age r ten 10 davsafte ma lr g oft!e o ce In add ton Lessor may rare the rates 1arg ea by lassor uraer hus S t r { b y tor pry s al dam age wa vet and or mme r al auto bl> habl ty enrollment upon gvmng Lessee at least thirty (30) days prior wri tten noti ce 12 INDEMNITY To the exter' permitted by state law Lessee agrees to defend and 1ndernn1fy Lessor Serv cer any other agent of Lessor and their respective suc essors and asstgns from and against any and all losses damages habthttres su ts clamms demands costs and expenses (including without himitati n reasonable attorneys fees and expenses) whrch _essor Serv cer any other agent of Lessor or any of their respective successors or assigns may incur by reason of Lessees breach or volat on of or farlure to observe or perform any •errn provrs1on or covenant of this Agreement or a, a result of any loss darrage theft or destruction of any Vehicle or related to or an1sing out of or n conr ection wit the use ope aton or condition of any Vehi cl e The provisions of ths Sec'ion 12 shall survve any expiration or termina tion of this Agreement Nothi ng herein shall be deemed to affect the right s pri vileges and mmmunities of Lessee and the foregoing Indemnity pro vision ts not intended to be a waiver of any soverei gn immuni t y afforded to Lessee purs uant to the law 13 INSPECTION OF VEHICLES ODOMETER DISCLOSURE, FINANCIAL STATEMENTS Lessee agrees to accomplish at its expense all 1nspect1ons of the Vehicles required by any governmental authority during the Term Lessor Servicer any other agent of Lessor and any of their respective successors or assigns will have the right to nspect any Vehicle at any reasonable t1me(s) during the Term and for this purpose to enter into or upon any building or place where any Vehicle ,s located Lessee agrees to comply with all odometer disclosure laws rules and regulations and to provide such written and signed disclosure 1nformat1on on such forms and mn such manner as directed by Lessor Providing false 1nformat1on or failure to complete the odometer disclosure form as required by law may result 1n lines and/or mprisonm ent Lessee hereby agrees to promptly deliver to Lessor such f111anc1al statements and other financial information regarding Lessee as Lessor may from time to time reasonably request 14 DEFAULT REMEDIES The following shall constitute events of default ( Events of Default ) by Lessee under this Agreement (a) 1f Lessee falls to pay when due any rent or other amount due under this Agreement and any such failure shall remain unremed1ed for ten (10) days (b) 1f Lessee fails to perform keep or observe any term provs1on or covenant cont amned mn Section 11 of this Agreement (c) 1f Lessee falls to perform keep or observe any other term prov1s1on or covenant contained 1n this Agreement and any such failure shall remain unremed1ed for thirty (30) days after written notice thereof 1s given by Lessor Servicer or any other agent of Lessor to Lessee (d) any seizure or confiscation of any Vehicle or any other act (other than a Casualty Occurrence) otherwise rendermg any Vehicle unsuitable for use (as determmed by Lessor) (e) 1f any present or future guarant y in favor of Lessor of all or any portion of the obligations of Lessee under this Agreement shall at any time for any reason cease to be in full force and effect or shall be declared to be null and void by a court of competent JUrisd1ct1on or ,f the valtd1ty or enforceability of any such guaranty shall be contested or derned by any guarantor or 1f any guarantor shall deny that t he or she has any further 1tab1hty or obl1gat1011 under any such guaranty or ,f any guarantor shall fall to comply with or observe any of the terms prov1s1ons or cond1t1ons contained 1n any such guaranty (f) the occurrence of a material adverse chang e mn the financial cond1t1on or busmess of Lessee or any guarantor or (g) 1f Lessee or any guarantor 1s 111 default under or fails to comply with any other present or future agreement with or in favor of Lessor The Crawford Group Inc or any direct or indirect subsidiary of The Crawford Group Inc For purposes of this Section 14 the term guarantor shall mean any present or future guarantor of all or any portion of the obhgat,ons of Lessee under this Agreement
Upon the occurrence of any Event of Default Lessor without notice to Lessee will have the nght to exercise concurrently or separately (and without any election of remedies being deemed made) the following remedies (a) Lessor may demand and receive 1mmed1ate possession of any or all of the Vehicles from Lessee without releasing Lessee from its obligations under this Agreement f Lessee falls to surrender possession of the Vehicles to Lessor on default (or termination or expiration of the Term) Lessor Servicer any other agent of Lessor and any of Lessors independent contractors shall have the right to enter upon any premises where the Vehicles may be located and to remove and repossess the Vehicles (b) Lessor may enforce performance by Lessee of its obltgat1ons under this Agreement (c) Lessor may recover damages and expenses sustained by Lessor Servicer any other agent of Lessor or any of their respective successors or assigns by reason of Lessees default 111clud1ng to the extent permitted by applicable law all costs and expens es ncluding cour t costs and reasonable attorneys fees and expenses incurred by Lessor Servicer any other agent of Lessor or any of their respective successors or assigns ,n attempt11g or effecting enforcement of Lessor s rights under this Agreement (whether or not lit1gat10111s com'llenced) and/or 1r connection with bankruptcy or insolvency proceedings (d) upon wntten notice to Lessee Lessor rnay terrrnnate Lessees rights under tr1s Agreement (e with respect to each / ehwcle Lessor may recover from Lessee all amounts owed by Lessee under Sections 3(b) and 3(c) of this Agreement (and 1f Lessor does not recover possession of a Vehicle (i) the estimated wholesale value of such Vehicle for purposes of Section 3(c) shall be deemed to be $0 00 and (11) the calculations described mn the first two sentences of Section 3(c) shall be made without giving effect to clause (ti) in each such sentence) and /or (f) Lessor may exercise any other nght or remedy which may be available to Lessor under the Uniform Commercial Code any other applicable law or in equity A termination of this Agreement shall occur only upon written notice by Lessor to Lessee Any term1nat1on shall not affect Lessees obltgat1on to pay all amounts due for penods prior to the effective date of such terminal on or Lessees obligation to pay any 1ndemr11t1es under this Agreement All remedies of Lessor under this Agreement or at law or in equity are cumulative 15 ASSIGNMENTS Lessor may from time to time assign pledge or transfer this Agreement and/or any or all of its rights and obl1gat1ons under this Agreement to any person or entity Lessee agrees upon notice of any such assignment pledge or transfer of any amounts due or to become due to Lessor under this Agreement to pay all such amounts to such assignee pledgee or transferee Any such assignee pledgee or transferee of any rights or obltgat1ons of Lessor under this Agreement will have all of the rights and obhgat1ons that have been assigned to 11 Lessee's rights and 111terest 1n and to the Vehicles are and will continue Initials EFM (BJ Customer $:'

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at all 'mmes to be subj ect ard subordi nate in all respects to any ass,gnment pledge or transfer now or hereafter executed by Lessor with or in favor of any such assignee pledgee or transferee provided that Lessee shall have the right of quiet enJoyment of the Vehicles so long as no Event of Default under this Agreement has occurred and s contmuwg Lessee a knowledges and agrees that the rights of any assignee plecgee or transfere e mn and 1c any amourts payabl e by the Lessee under an, prov1s1ons of this Ag eme nt shall be atsolut and uncond1 1onal ard shall not be sub1ect to any aoatement whatsoever or to an; defense setoff countercla m or ecoupment 1.hatsoe ;er whether by reason ot anv dama ge to or loss o destruction of any \/er1cle or by reason of any defect no, fa lure of t 'le o' the Lessor r t err up on from what,oever a uSe n 'ie use operation or possession of ar· 1 •/en le 01· by r0 so 1 of ar-1 1ncJebted ess or liab lit; hJNSOPvrr and whe%ver· ar1s111g of tr1e essor or anv of its affiliates tJ tre LPsseP or to any ether persor or entity or for an; other reason / th yttne n or tten nsento r es may not assg it a se transfer r pledge t s Agr emt ' any o h le or ny nts s t nthu Agreement a i t , l e o cer t ts t ', rd 'hs g r t r3r i l l et hes itye ttoa ,he harg e umbra e Le + t res ntf Agreement is not assig able and a nmo t be assige d or transferred by operat 0 0 f law Lessee will not trans fer or rel inqutsh possess101 of any Vet l e (except for the sole purpose of repair or service of such Vehicle) without the prior written consen' of Lessor 16 MISCELLANEOUS This A.greerr ent contains the entire understandwy of the pat es Th s Agreemer·t may 01 ly be amended or mod1fed by Jn instrurrent 111 writ ng executed by both parties Le'.:,sor shall not by any act delay x r1ss on or otherwse be deemed to have waved any of 1lc rights or remed es under tt· s Agreemen and no waiver whatsoever shall be valid unless 1n writing and signed by Lessor and ther onl y to the extent therein set fort A waiver by Lessor of any right or remedy under this Agreement on any one o ca,,1or1 shall not be -~onstrued as a bar to any rght or remedy which Lessor would otherwise have on any future occasion If any term or provision of this Agreerrent or any apolicat1on of any such term or prov1s1on s wval1d or unenforceable the remainder of this Agreement and any other application of such term or pro v1s1on w II not be affected thereby Giving of all not ces under this Agreement will be sufficient 1f mailed by cert1f1ed mail to a party at its address set forth below or at such other address as such party may provide 1n writ ng from time to time Any such notice mailed to such address will be effective one (1) day after deposit 111 the United States mail duly addressed with certified mail postage prepa d Lessee will promptly notify Lessor of any change 1n Lessees address This Agreement may be executed 1n multiple counterparts (including facsimile and pdf counterpart s) but the counterpart marked ORIGINAL by Lessor will be the orig nal lease for purposes of applicable law All of the representations warranties covenants agreements and obl1gat1ons of each Lessee under this Agreement (1f more than one) are 101nt and several 17 SUCCESSORS AND ASSIGNS GOVERNING LAW Subject to the prov1s1ons of Section 15 this Agreement will be binding upon Lessee and its heirs executors personal representatives successors and assigns and will inure to the benefit of Lessor Servicer any other agent of Lessor and their respective successors and assigns Tns Agreement will be governed by and construed in accordance with the substantive laws of the State of Missouri (determ 1ned without reference to conflict of law principles)
18 NON-PE TITION Each party hereto hereby covenants and agrees that prior to the date which 1s one year and one day after payment 1n full of all indebtedness of Lessor t shall not 1nst1tute against or joI any other person in 1nst1tut1ng against Lessor any bankru ptcy reorganization arrangement insolvency or liquidation proceedings or other s1m1lar proceeding under the laws of the United States or any state of the United States The pro visions of this Section 18 shall survive termination of this Master Equity Lease Agreement 19 NON-APPROPRIATION Lessees funding of this Agreement shall be on a Fiscal Year basis and 1s sub1ect to annual appropriations Lessor acknowledges that Lessee Is a municipal corporation 1s precluded by the County or State Const1tut1on and other laws from entering into obl1gat1ons that financially bind future governing bodies and that therefore nothing in this Agreement shall constitute an obligation of future leg1slat1ve bodies of the County or State to appropriate funds for purposes of this Agreement Accordingly the parties agree that the lease terms within this Agreement or any Schedules relating hereto are contingent upon appropriation of funds The parties further agree that should the County or State fail to appropriate such funds the Lessor shall be paid all rentals due and owing hereunder up until the actual day of term1nat1on In add1t1on Lessor reserves the right to be paid for any reasonable damages These reasonable damages will be limited to the losses incurred by the Lessor for having to sell the vehicles on the open used car market prior to the end of the scheduled term (as determined 111 Section 3 and Section 14 of this Agreement) IN WITNESS WHEREOF Lessor and Lessee have duly executed this Master Equity Lease Agreement as of the day and year first above written LESSEE
Signature
By
Title
Address
±S"%#ca Steven McHarris
Interim City Manager
455 E. Calaveras Blvd.

Milpitas, CA 95035-5411
as s . 8/2/2el9 ln1t1als EFM@ Customer ~
LESSOR
By
Signature
sy ( nh
me Pg 0u) Sae (4n4yr
Address J 7 0 B\A( I \..U~ '2d ·
3'## 7
Date Signed ]"/6 Ir ADDITIONAL SIGNATURES ON BACK

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Enterprise Master Equity lease Agreement
Approved As To Form
.-2e Christopher J. Dia , City Attorney
Approved As To Content
7 / ] -
- _4 , Walter Rossmann,
Director of Financial Services
As To Scope
Works

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n te rprise

FLEET MANAGEMENT

AMENDMENT TO MASTER EQUITY LEASE AGREEMENT
THIS AMENDMENT (Amendment) dated this l4t huay of June 2019 Is attached to and made a part of the MASTER EQUITY LEASE AGREEMENT entered into on thel 4 t h day of June 2019 (Agreement ) by and between Enterprise FM Trust. a Delaware statutory trust ( Lessor ; and City of Milpitas ( Lessee ) This Amendrrent rs made for good and valu abl e consideration the receipt of whucn is hereby acknowledged by the parti es Section 2o the Master Equity Lease Agreement Is amended to include the following paragraph Lessee reserves the right to cancel this Agreement for any reason at all upon thrrty (30) days prior wrrtten notice to Lessor In the event of such tem1Inat1on Lessor shall be paid all rentals due and owrng hereunder up until the actual day of terrrInatIon In accordance wrth Section 3(b) and 3(c) of the Master Equity Lease Agreement Add tonally termination should not affect Lessee s oblig ation to pay any ind emnities under thi s Agre ement Section 3c of the Master Equity Lease Agreement is amen ded to read as follows Lessee agrees to pay Lessor within thirty (30) days after the end of the Term for each Vehicle add1t1onal rent equal to the excess 1f any of the Book Value of such Vehicle over the greater of (1) the wholesale value of such Vehicle as determined by Lessor in good faith based on third party sources such as Black Book or (1u) except as provided below twenty percent (20%) of the Delivered Pnce of such Vehicle as set forth rn the applicable Schedule If the Book Value of such Vehicle 1s less than the greater of (1) the wholesale value of such Vehicle as determined by Lessor in good faith based on third party sources such as Black Book or (1u) except as provided below twenty percent (20%) of the Delivered Pnce of such Vehicle as set forth mn the applicable Schedule Lessor agrees to pay such deficiency to Lessee as a terminal rental adJustment w1th1n thirty (30) days after the end of the applicable Term Notwithstanding the foregoing if (@) the Term for a Vehi cl e is greater than fort y-eig ht (48) month s (including any extension of the Term for such Vehicle) (11) the mileage on a Vehicle at the end of the Term Is greater than 15 000 miles per year on average (prorated on a daily basts) (1 e tf the mileage on a Vehicle with a Term of thIrty-sIx (36) months Is greater than 45 000 miles) or (nut) in the sole Judgment of Lessor a Vehicle has been subject to damage or any abnormal or excessive wear and tear the calculations described In the two 1mmedIately preceding sentences shall be made wthout givi ng effect to clause (11) In each such sentence The Book Value of a Vehicle means the sum of (1) the Delivered Pnce" of the Vehicle as set forth mn the applicable Schedule minus (11) the total Depreciation Reserve paid by Lessee to Lessor with respect to such Vehicle plus (111) all accrued and unpaid rent and/or other amounts owed by Lessee with respect to such Vehicle
Section 3(g) of the Master Equity Lease Agreement Is amended to add the following paragraph In the event Lessee notifies Lessor of any claim or dispute under this Agreement and/or any claim 1nvolv1ng the Vehicle Lessor will In good faith attempt to resolve the Lessees claims In a manner satisfactory to all parties and Lessor will provide commerci ally reasonabl e assistance to Lessee min any communi c ations and/or negotiations wth the Vehicles manufacturer with respect to claims relating to such Vehicle Section 9(a) of the Master Equity Lease Agreement is amended to read as follows

LESSEE ACCEPTANCE OF DELIVERY AND USE OF EACH VEHICLE WILL CONCLUSIVELY ESTABLISH THAT

SUCH VEHICLE IS OF A SIZE DESIGN CAPACITY, TYPE AND MANUFACTURE SELECTED BY LESSEE AND

THAT SUCH VEHICLE IS IN GOOD CONDITION AND REPAIR AND IS SATISFACTORY IN ALL RESPECTS AND IS SUITABLE FOR LESSEES PURPOSE LESSEE HAS TEN (10) BUSINES S DAYS AFTER DELIVERY TO

INSPECT THE VEHICLE AND IF LESSOR IS NOT NOTIFIED OF ANY REJECTION THE DELIVERY IS

CONSIDERED ACCEPTED LESSEE ACKNOWLEDGES THAT LESSOR IS NOT A MANUFACTURER OF ANY

VEHICLE OR AN AGENT OF A MANUFACTURER OF ANY VEHICLE
Section 9(b) of the Master Equity Lease Agre ement ts amended by adding the following paragraph In the event Lessee notifies Lessor of any claim or dispute under thus Agreeme nt and/or any clamm inv olving the Vehicle Lessor will in good faith attempt to resolve the Lessees claims in a manner satisfactory to all parties and Lessor will provide commercially reasonabl e assistance to Lessee in any communic ations and/or negotiations wIth the Vehi cl e s manufacturer with respect to claims relating to such Vehi cl e

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FLEET MANAGEMENT
Section 14 first paragraph of the Master Equity Lease Agreement s amended to read as follows The following shall constitute events of default ( Events of Default ; by Lessee under this Agreement (a) 1f Lessee fails to pay when due any rent or other amount due under this Agreement and any such failure shall remain unremed1ed for ten (10) days (b) if Lessee fails to perform Keep or observe any term prov son or covenant contamned in Sect on 11 of this Agreement (c) if Lessee fall s to perform keep or observ e any other term provision or covenant contained n thus Agreement and any such failure shall remain unreme died for thi rty (30) days after written notice there of s gv en by Lessor Servicer or any othe r agent of Lessor to Lessee (d) any seizure or confiscation of any Vehicle or any other act (other than a Casualty Occurrence) otherwise rendering any Vehicle unsuitable for use (as determined by Lessor) (e) 1f any present or future guarant y in favor of Lessor of all or any portion of the obl igations of Lessee under this Agreement shall at any time for any reason cease to be in full force and effect or shall be declared to be null and void by a court of competent jurisdic tion or rf the validity or enforce abi lity of any such guaranty shall be contested or denied by any guarantor or 1f any guarantor shall deny that it he or she has any further l1ab1l1ty or obl1gat1on under any such guaranty or 1f any guarantor shall fail to comply with or observe any of the terms provisions or conditions cont aine d in any such guaranty (f) the occurren ce of a mater1al advers e chang e In the financial cond1t1on or business of Lessee or any guarantor For purposes of this Section 14 the term guarantor' shall mean any present or future guarantor of all or any portion of the obligations of Lessee under this Agreement
Section 14 second paragraph of the Master Equity Lease Agreement 1s amended to read as follows Upon the occurrence of any Event of Default, Lessor shall provide written notice to of Event of Default to Lessee Lessee shall have ten (10) days (exclusive of Secti on 11 Insuranc e) upon receipt of notice to cure the Event of Default Upon exp1rat1on of the ten (10) days without remedy of the Event of Default by the Lessee Lessor will have the right to exercise concurrently or separately (and without any election of remedies being deemed made) the following remedies (a) Lessor may demand and receive 1mmed1ate possession of any or all of the Vehicles from Lessee without releasing Lessee from its obligations under this Agreement 1f Lessee fails to surrender possession of the Vehicles to Lessor on default (or termination or exp1rat1on of the Term) Lessor Servicer any other agent of Lessor and any of Lessors independent contractors shall have the right to enter upon any premises where the Vehicles may be located and to remove and repossess the Vehicles (b) Lessor may enforce performance by Lessee of its obl1gat1ons under this Agreement (c) Lessor may recover damages and expenses sustained by Lessor Servicer any other agent of Lessor or any of their respective successors or assigns by reason of Lessees default including to the extent permitted by applicable law all costs and expenses 1nclud1ng court costs and reasonable attorneys fees and expenses incurred by Lessor Servicer any other agent of Lessor or any of their respective successors or assigns in attempting or effecting enforcement of Lessors rights under this Agreement (whether or not litigation Is commenc ed) and /or in connection wth bankrupt cy or insolvency proceedings (d) upo n writt en notice to Lessee Lessor may terminate Lessees rights under this Agreement (e) with respect to each Vehicle Lessor may recover from Lessee all amounts owed by Lessee under Sections 3(b) and 3(c) of this Agreement (and 1f Lessor does not recover possession of a Vehicle (1) the estimated wholesale value of such Vehicle for purposes of Section 3(c) shall be deemed to be $0 00 and () the calculations described 1n the first two sentences of Section 3(c) shall be made without g1v1ng effect to clause (1u) In each such sentence) and/or (f) Lessor may exercise any oth er right or remedy which may be available to Lessor under the Uniform Commercial Code any other applicable law or in equity A termination of this Agreement shall occur only upon written notice by Lessor to Lessee Any tenrnnat1on shall not affect Lessee's obligation to pay all amount s due for peri ods prior to the effecti ve date of such termi na tion or Lessee s obl igation to pay any 1ndemnit1es under this Agreement All remedies of Lessor under this Agreement or at law or in equit y are cumulative
Section 15 second paragraph of the Master Equity Lease Agreement 1s amended to read as follows Without the prior written consent of Lessor Lessee may not assign sublease transfer or pledge this Agreement any Vehi cl e or any mnt erest in thus Agreement or in and to any Vehi cle or permit its night s under thu s Agre ement or any Vehicle to be suby ect to any lien charge or encumbrance Lessees interest in this Agreement 1s not assignable and cannot be assigned or transferred by operation of law Lessee will not transfer or relinquish possession of any Vehicle (except for the sole purpose of repair or service of such Vehicle) without the prior written consent of Lessor Lessee shall have the nght without the prior consent of Lessor to assign this Agreement to an affiliate only In the event these affiliate assignments are allowed Lessee remains responsible for all Prov1s1ons of the Master Equity Lease Agreement
Section 17 of the Master Equity Lease Agreement 1s amended to read as follows

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nte rprise

FLEET MANAGEMENT
Subject to the prov1s1ons of Section 15 this Agreement will be binding upon Lessee and rts heirs executors personal representatives successors and assigns and w II nure to the benefit of Lessor Seracer any other agent of Lessor and their respective successors and ass gns This Agreement will be governed by and construed mn accordance with the substantive laws of the State of Cal1forn1a (determ ned wrtr,out reference to co flct of law principles)
A I references 1n the Ag eement and r the vat ous Sch edule s and aadenaa to 'he Agre ement and any other references of similar import shall henceforth mean the Agreement as amended by this Amendment Except to the extent specifically amended by this Amendment all of the terms prov1s1ons cond1t1ons covenants representations and warrannes contained 1n the Agreement shall be and remain ,n full force and effect ard the same are hereby ratified and confirmed
IN WITNESS WHEREOF Lessor and Lessee have executed this Amendment to Master Equity Lease t as of the l+t hd yof June 2019 r
By St eve c Har r i s
Title Int e r i m Ci t v Manager
e, Jp n Se0KS0
c - <gal Saks man4yr
2EE. Walter Rossman-
Director of Financial Services
Approved As To Content

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nte rprise

FLEET MANAGEMENT

I DE M Y AGREE E T
This Agreement 1s entered into as of the l 4-th day of June 2019 by and between Enterprise Fleet Management, Inc, (EFM) a Missouri corporation and City of Milpitas

WITNESSETH
INDEMNITY Enterprise Fleet Management Inc ("EFM') agre es to defend and 1ndemn1fy City of Milpitas from and against any and all losses damages liabil1t1es suits claims demands costs and expenses (including without l1m1tat1on reasonable attorneys fees and expenses) which City of Milpitas may incur by reason of EFM's bre ach or v1olat1on of or failure to observe or perform any of its obl1gat1ons as Servicer (EFM in such capacity 'Servicer ) for Enterprise FM Tru st mn connection with the Master Equity Lease Agreement between City of Milpitas and Enterprise FM Trust dated as of the date hereof or as a result of any loss damage theft or destruction of any Vehicle or related to or arising out of or 1n connection with the use operation or cond1t1on of any Vehicle in each case while the Vehicle was in possession of the Servicer Cap1tal1zed terms used herein and not defined herein shall have the meanings given 1n the Lease IN WITNESS WHEREOF EFM and City of Milpitas have executed this Indemnity Agreement as of the day and year first above written
EFM ENTER PRISE FLEET;i p;,,t~G/ JT INC
~ ~ "- By
Title
Steven McHarr1s
Interim City Manager
Address 455 E. Calaveras Blvd.

Milpitas. CA 95035-5411
By
Title
Adares 10 Burly Pdl.
8l36% a a«co
a ter Rossmanr
D1rector of Fmnanc1al Services

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. nte rp rise

FLEET MANAGEMENT

SELF-INSURANCE ADDENDUM TO MASTER EQUITY LEASE AGREEMENT (Physical Damage Only)
t r +put
Lr, £Mt 1 st ael sva stat t r Jr" t ,::, It s ;;. v•1
; 1 n
Pam s so rtl' Jr re g a rP I e nsl.J
+( \q rr r t
w !
nus Addendum 1s attached 'O and made a part of the Agreement (1nclud1ng each Sered IP to the Agreement All cap1tal1zed terms used and not other111se def1ried rere1n snail ha ·e he espe t1 e rneari nr,s a r bed o them r the Ag err ent fJot v1t~sta'ld1ng the prov1s1on, f Se on 11 of the A.grn,,111ert Lessee srall be per'nttted to assJr'1e a 1d self ns11re tre risKs over~d by the Physical Damage insurance policy set forth 1n Sect10'1 • 1 of 'he Agreemen' and srall not oe required to purchase or ma1nta1n any Ptiys1cal Damage ins urance pol1y of any kin,' w th respect to any Vehicle provided however trat 1f any Federal state local or other law statute rule regulation or ordinanc e requ res t..essee to mamnt ar any amount of Physical Damage insurance with respect to any Vehicle Lessee shall purchase and ma ntamn such amount of Physical Damage insurance 1n the form of a Physical Damage insurance policy which complies in all respects other than the amount of Physical Damage insurance required w1t11 Section 11 of the Agreement Notw1thstand1ng the foregoing 1f (1) Lessor at any time 1n its good faith Judgment snot sat1sf1ed with the cond1t1on prospects or performances fmanc1al or otherwise of Lessee or (2) any default or event of default occurs under the Agreement than Lessor nay at its option revoke this Addendum and terminate Lessees right to self- nsure by prov1d1ng Lessee with at least thrt y (30) days pr or written rot1ce thereof Upon the term1nat1on of Lessees fight to self-insure Lessee shall comply in all respects with Secti on 11 of the Agreement Except as amended hereby all the ter'lls and prov1s1ons of the Agreement shall remain m full force and effect In the event of any conflict between this Addendum and the Agreement or any of the Schedules the terms and prov1s1ons of this Addendum will govern and control LESSEE
By
a.. 'Ek St eve McHar r i s
Title Int er i m Ci t y '1anager
es s + 5/a/2el7
As lo Form
{2
LESSOR
By
Enterprise FM Trust
Enterprise Fleet Managem ~ orney 1n fact
( ----~ / By
Title
Date Signed
ag e I
= { / e= Ndah, ~
Director of Pub 1c Works
Director of Financial Services

Page 296 of 448 ends

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Page 297 of 448 ends

nt e rp rise

FLEET MANAGEMENT

GOVERNMENT CREDIT APPLICATION
Please complete all applicable items
Company Name Ci ty of Mi l pi tas
Street Address 455 E. Cal averas Bl vd.

E-mail tndah@ci. mi l pi tas. ca. gov
2e _
-"-..C>.,: ... :;.,-,.J=, ~.....;:.
w ri
a # E ci ±- '. le es. i s
Cre dit Appl icant Tony Ndah Year Business Started 1954 City Mil pit as State CA z09 5035-5411
Phone 408- 586- 7812 Fax# n a
Government Entity Type D State D County Kl City D Other _ Type of Business _ -=:n:L.--"a=---- - - - - - - - - - - - - - - - Duns Number 038142624 Parent Company or Affil ates(Name & Address) ~n..._,._,,._ _ Dn \I y l c \ 10
Name Tony Ndah E-mail t n da h@c i. mi l pi t as . c a . gov Phone# 408- 586- 7812 FleetManagerAddress Publ i c Wor k s / Cor por at i on Yar d 1265 N. Mi l pi t a s Bl v d . Mi l pi t as , CA 95035- 5411 f'I /' A I ; \ L\TI
Are your books prepared by an outside Accountant? J e» (J o Accountant Name Email Address Phone# _

J I I I/ - I A I I
Three years of F1nanc1al Statements (with footnotes)
Published Annual Reports D Yes D No
Income Tax Returns (3 years) D e s [Jo
Other Items Included - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - [] Auante d [] Op. nones D Internal
Federal ID Number
Fiscal Year End (Month)
'o c, I K
D Purchasing D Leasing D Finance
Company Pl ar. JPA Agent._ ......:cn:.,_;;:a'-- - - - - - - - - Policy# GAL 2019- 20 Expo. Date 6/ 30/ 2020 Street Address 1750 Cr eek si de Oak s Dr . 11200 city Sac r amen t o State CA Zip 95833 Phone 916-244- 1100 Fax# n/ a The Ci t y of Mi l pi t a s i s sel f - i n su r ed .

Page 298 of 448 ends

RESOLVED The unders;gned hereb y cert f es (1) that he/she is the duly appo nted Interim City Manager (TI tie) lo r City of Milpitas (Entty legal name) hereafter known as The Entity (11) that he/she 1s authorized by The Entity to execute and deliver on behalf of The Entity to Enterprise Fleet Management hereafter known as Enterprise ( Lessor ) and the Master Lease Agreement between Enterprise and the Ent ty ) the ( Lessee ) and (nu) that the following 1nd1v1duals are authorized and empowered on behalf of and In the name of The Entity to execute and deliver to Enterprise Schedules to the Lease for mndv dual motor vehicles together with any other necessary docume nts mn connection with those Schedules
RESOLVED FURTHER that
Tony Ndah Director Public Works
Pnnt Name t e
Steve McHarris . Interim City Manager
Print Name Tt e
Print Name Tt e
Print Name Tt e
Print Name Tt e
Pr nt Name
Bond Rating Rating Agency FederallD# 94- 6019192 -------------- RESOLVED FURTHER that EFM 1s authorized to act upon this authorization until written notice of its revocation 1s rece ved by EFM I do herby certify that the 1nformat1on contained 1n this Credit Appl1cat1on 1s accurate 1n all material aspects as required by law Further I do hereby certify Steve McHarris
pr nt Name
Interim City Manager
S gnature
Date
Tt e
City of Milpitas
Company Name
the puto seofse kg tose r e edt or t err se flect Mana geme nt Inc (toge her wth s affi las suc cssor a sgas and Prd par ys cc r o de s EM ) ed pl an' a author zes« { toru ac d cpor nves ga € an::J ve fy the nforrrat on nth s Crt..c /\grecrrcnt and or ob an nan a and/or crcd l nfor,.,.,al or from any person or en ywth ,r. er- Lr d \cpl an has or had nan al dal g s l ud ng barks lcr-c ng rsl tu! ans and radc or crcd t refere e s wht her or not such pe so or ant y s den!if d nthsCrad!p l ca on wh chmnormat on may nl u f nanc al statem r' s .ax returns a d ba kn3records t E Mo on act any CredtA pl can s current or farmr employers or cred tors ,over fy ar-y nformat vn c nta ned herein or rece ved nconne t On tr- th s Cred Appl cation f Cre:J Applicant s a sole p op e!or and ( an1 third !-'art vho may "ave relevant nfoma on to prov des-.. r nformat on to EF\li fb will not1 y EFM f there is any hange n name address or any mater al adverse ''<::nge () nan/ o the f ormat on con and nth s Cr dt Appl!ca on ( r c~ea t ppl ants f nanc al cond ton o ) m Cred t Appl cants ab lty to pe form re r respect ve obl gations o FFM an" (c) represents and ·arran s that ayan al nf mat or p v dedto FFM ry Cred Appl cant s true corm t and r:omplete s of tf'e 1 te rereof T"e la. k of ar-y n I o chan ge r th rep sen atons ndwarr ant es. n luded nth s CredtA pl aaon shall be ans de eda ont no ngs atemet tta the fo ma' n prov e d n hs redt Appl ct nrema rs rue ore tandc mple As perm tted cy laA- EF~" may .jlso release nformator abot EFMs ed t exper en e N tr- Cred t Appl cant Cred t Appl Lant urderstan:i and agrees that all reports ana c ords develope c by E Mor any h rd party agent n cor-nect O" 1nth t!'Je forego ng v s g' ons are the sole propert y f F M and IIro be prov de3to Credtppl can l ess other serequ re by appl cabl e law or agreed b, EFM nwrt ng The Equa Cred Opportun ty Acl proh1b1 s ed !O' S from d SCfl'11 nalmg aga nsl edit apclicants on the bass of race color el g on na\10' Io gin sex mar al status age prov•ded that Cd t App cant has the capa y o enter in o an d ng contrac) because all or part of Cred I Appl cant's mncom d e ves fr ,... any public ass slarce program or because Cred t Aopl1can1 ha n gooo fa h exercised any night urde he Consumer Cred t Protect n Act lf hus cred tappl at n rs den ed Credit App at may have the r gt .o a written statement of the spe cif reason(s) for the den al To request to t an the stateme nt Credi App«cart may contac EFM at 60 Corporate Park I ve ATTN ERV Credit Department S Lours MO 63105 w,th n 60 days fr the dale C•ed1I Appl cant s not ed of the denial fappl cacle v h n 30 2ays 0 E Ms ce pl of th r equest EFW" II se0d Credit Appl, an· a,,ntten sta.e.,.ent spec fy ng th reasor(s for the denial Ire pers sg ngb-low pers nally represent s and wart at st0EHMtha he/'s e s authore d .o ake thi s apl a t or or re ! nbeta edit Appl ar t Please note that 01s C edit Appl1cat1on s an a l cat on and does rot comm tor requ re EFM t o extend ary red 1.'ha soever tJ Credit Appl1car-t 20 8 Enterpnse F!eet Management Inc. H 0479_EFM Govemmer • Cred I Appl a ton

Page 299 of 448 ends

CITY OF MILPITAS

AGENDA REPORT
(AR)
Item Title: Accept Grants from Silicon Valley Clean Energy Member Agency Grant Program and Authorize the Purchase of Ford F-150 Lightning Vehicles (Staff Contact: Christian Di Renzo, Public Works Director, 408-586-2602) Category: Consent Calendar-Community Services and Sustainable Infrastructure Meeting Date: 6/17/2025
Recommendation: (1) Accept grant funding from Silicon Valley Clean Energy Member Agency Grants program in the amount of $372,233 for the non-competitive grant and $502,000 for the competitive grant for a total of $874,233; and
(2) Authorize the City Manager to execute two grant agreements with Silicon Valley Clean Energy; and
(3) Approve the purchase of up to five (5) Ford F-150 Lightning Vehicles, and authorize the City Manager to negotiate and execute any documents necessary to effectuate the purchase.

BACKGROUND:

In late 2024, Silicon Valley Clean Energy (SVCE) announced its new round of member agency grants. SVCE offered both non-competitive and competitive funding to support electrification, energy resilience, or community engagement projects. The purpose of the grants is to support each of the member agency’s clean energy and climate goals.

Non-competitive Member Agency Grants
SVCE’s Non-competitive Member Agency Grants provide $3 Million for SVCE’s thirteen member agencies (including Milpitas). Each member agency is to be awarded funding to invest in a project that supports building or transportation electrification, energy resilience, or community engagement. Projects can be located at public sites or municipal operation facilities. Each member agency will receive a baseline of $100,000 in grant funding, with the remaining grant funding divided based on each agencies’ percentage of SVCE electric load.

Milpitas’ funding allocation for the non-competitive grant is $372,233. To be eligible to receive the non- competitive grant funds, agencies were required to submit a complete Grant Form by December 5, 2024.

Competitive Member Agency Grants
SVCE’s Competitive Member Agency Grants award $3.5 Million to SVCE’s member agencies through a competitive solicitation process. Two tracks are available: 1) the Decarbonization Track and 2) the Engagement Track. The Decarbonization Track provides capital funding for building and transportation electrification and/or energy resilience projects that demonstrate the feasibility of all-electric technology to the community. The Engagement Track provides funding for community engagement projects that educate the community on building and transportation electrification in innovative ways. Competitive funding may be stacked with non-competitive funding, depending on the project. Grant applications for the Decarbonization Track were due on March 28, 2025.

ANALYSIS:

The City Climate Action Plan (CAP) establishes the City’s goal to be carbon neutral by 2045. Over half (59%) of community-wide greenhouse gas (GHG) emissions from 2019 were generated by on-road transportation.

One of the key strategies of the CAP is to decarbonize vehicles through increased adoption and use of electric vehicles (EV) and increasing access to EV charging infrastructure. Under the Milpitas Operations sub- category, the CAP includes an action to convert the City fleet vehicles to all-electric or alternate fuels.

Page 300 of 448 ends

Multiple State agencies are also responsible for driving climate action and greenhouse gas reduction and have promulgated regulations intended to reduce statewide GHG emissions. One example is the California Air Resources Board Advanced Clean Fleet regulations which include requirements for State and local government fleets to purchase zero-emissions vehicles (50% of purchases should be zero-emission vehicles starting in 2024 and 100% beginning in 2027).

In 2021, the City received $700,702 through SVCE’s first round of member agency grants which were focused on community resiliency. Those funds were used to offset a portion of the costs to construct the solar and back-up battery microgrids at the Community Center and Senior Center.

For this newest round of member agency grants, City staff sought to stack both the non-competitive and competitive grants and use the funds to support the City fleet electrification and add electric vehicle charging infrastructure at the Public Works Administration building on 1265 N. Milpitas Boulevard. Proposals were submitted to SVCE for the following:

Non-Competitive Grant $ 372,233 Grant funds will be used to fund electrification for a portion of the City Public Works maintenance fleet replacement over the fiscal year (FY 2025-26) and possibly the year thereafter (FY 2026-27) based on the City’s ability to source and procure the vehicles. The City plans to purchase up to five all-electric Ford F150 Lightning Vehicles, estimated at $80,000 each. The Lightnings will be used by Public Works field operations and utility maintenance divisions. Public Works will work with the City Purchasing Agent and Ford dealers to acquire the electric vehicles.

Competitive Grant –
Decarbonization Track
$ 502,000 Grant funds will be used to fund the installation of two high- capacity DC fast chargers and one dual port level 2 charger at the City Public Works Administration building to be used for public and City fleet charging and to leverage this
infrastructure – along with the City’s electric fleet and other charging stations throughout Milpitas – in a community
education and engagement campaign designed to highlight EVs and EV infrastructure.

The stacking of the two grants enables the City to efficiently and cost-effectively advance our fleet electrification efforts. Considering the challenges with resolving the City structural budget deficit, the grant will fund the full costs of replacing existing work trucks with new, all-electric Ford F-150 Lightning Vehicles, thereby offsetting the $372,233 costs from the Vehicle Replacement Fund. At the same time, the competitive grant funds will fund the installation of new charging infrastructure, most importantly the high cost of a DC fast charger which will be able to quickly charge the Lightnings and other electric fleet vehicles in a time-efficient manner. Absent this opportunity, the vehicles would have needed to be charged through the existing Level 2 chargers (slower charging rate). These projects demonstrate the City leadership in sustainability and a portion of the grant will be used to increase community education about EVs and EV charging infrastructure.

The deadline to spend funds from both grants is December 31, 2028.

POLICY ALTERNATIVE(S):

Alternative 1: Do not accept the grant funds.

Pros: None.

Cons: The City will lose an opportunity to use external funds to support vehicle replacements and improving public charging infrastructure.

Reason for Not Recommending: It is in the City’s interest to leverage external funding to offset City costs, when feasible.

Page 301 of 448 ends

FISCAL IMPACT:

The non-competitive grant funds received from SVCE will offset $372,233 for planned replacements from the Equipment Replacement Fund. The competitive grant funds will be used to fully fund the installation of the three EV charging stations at the Public Works Administration site, which is also shared by the Information Technology Department, and community education efforts around electric vehicles and EV charging infrastructure. There is no local match requirement for either of these grants. These are reimbursement grants with a spend deadline of December 31, 2028.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):

In accordance with the California Environmental Quality Act, the installation of EV chargers at an existing parking lot is categorically exempt pursuant to CEQA Guidelines Section 15301, Class 1 (Existing Facilities) and Section 15303, Class 3 (New Construction or Conversion of Small Structures). The new EV charging stations meet the criteria in each of these sections and is categorically exempt.

The purchase of these vehicles 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.

ATTACHMENT(S):
(a) SVCE Grant Member Agency Grant Agreement for Non-competitive Grant (b) SVCE Member Agency Grant Agreement for Competitive Grant

Page 302 of 448 ends

SILICON VALLEY CLEAN ENERGY MEMBER AGENCY
GRANT

PROGRAM

AGREEMENT

THIS AGREEMENT
is made and effective on the date of last signature below (“Effective

Date”)

and

between

the

Silicon

Valley

Clean

Energy

Authority

(“SVCE”),

an independent
public agency
and
City of Milpitas

(“
Recipient”) In consideration of the covenants, conditions and undertakings set forth herein, the parties agree as follows:”

1. RECITALS.

This

Agreement

made

with

respect

the

following

facts

and

purposes
which each of the parties acknowledge and agree are true and correct:

SVCE’s

Member Agency Competitive
G
rant

P
rogram

(“Program”)

will

provide

$3M

in grants to member jurisdictions to plan and develop decarbonization demonstration, energy
resilience, and engagement projects.

Recipient submitted an application for Program funding, attached hereto and incorporated

herein

Exhibit

for

decarbonization demonstration, energy resilience, and
engagement projects (“Project”).

The scope and estimated budget for the Project are
included in Exhibit A.

SVCE

finds

that

the

use

Grant

Funds

described

herein

furthers

public

purpose
and meets the goals and objectives established for the Program, and desires to

award Recipient
a one
-
time grant
pursuant to the terms of this Agreement.

2. GRANT.

SVCE hereby agrees to provide funding to Recipient in an amount not to exceed
$
372,233

subject to the provisions of this Agreement (“Grant Funds”). Such Grant Funds shall be disbursed to

Recipient on a reimbursement basis.

It is agreed and understood

that

the

Grant

Amount is

ceiling

and

that

SVCE

will

only

reimburse

the

allowable cost of
services actually rendered

as authorized by SVCE at or below the Grant Amount established herein.

3. REIMBURSEMENT

GRANT

FUNDS.

Grant

Funds

shall

reimbursed

pursuant
to the following process:

SVCE

shall

reimburse

Recipient

for

its

actual

and

reasonable

costs

of
constructing the Project up to the agreed upon Grant Funds.

Requests

for

payment

submitted

SVCE

shall

include:

1) a cover letter in the
agency’s letterhead summarizing the project and requested dollar amount for reimbursement 2)

itemized

list

all expenditures; and 3) supporting documentation that clearly identifies the expenditure(s) in relation to the scope of the Project set forth in Exhibit A of this Agreement.

Payment requests should be aggregated and submitted after Project completion.

SVCE

shall

process

requests

for

payment

and

remit

payment

within

30 days.

If, in SVCE’s sole discretion, the request for payment is incomplete, inadequate, or

inaccurate,

SVCE

may

dispute

the

invoice

for

reasonable

cause

and

hold

all

portion

the
payment request until all required information is received or corrected.

Any penalties imposed

Page 303 of 448 ends

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version

the

Recipient

contractor,

other

consequence,

because

delays

payment

other
breach

the

agreement

between

the

Recipient

and

the

contractor

are

the

responsibility

the
Recipient and are not reimbursable under this Agreement.

Unless otherwise authorized by SVCE in writing, Recipient

shall submit all
documentation

Project

completion,

including

final request

for

payment,

within

sixty

(60)
days of Project completion.

Final payment of

remaining

Grant Funds,

including any

amounts

withheld from
previous

payments,

shall

paid

the

total

amount

the

actual

Project

cost,

not

exceed
the Grant Funds

amount set forth in this

Agreement,

upon completion of

the Project, receipt of
the final report and final request for payment from the Recipient in a form and content satisfactory to SVCE.

4. USE OF GRANT FUNDS.

Recipient shall use the Grant Funds to support the Program as

set

forth

Exhibit

Any

use(s)

Grant Funds

not

contemplated

this

Agreement must

be
approved in writing by SVCE.

This Agreement was
awarded to Recipient based on the
application submitted by Recipient with the intention that the awarded funds would be used to implement the Project as described in Exhibit A. Any substantive deviation during Project implementation may require reevaluatio
n or result in loss of funding.

In no event shall

Recipient’s Grant Funds or scope of work be increased.

If Recipient knows or should have known
that substantive changes to the Project will occur or have occurred, Recipient will immediately notify SVCE in writing. SVCE will then determine whether the Project is still consistent with the overall objectives of
the Program and whether the changes would have negatively

affected

the

Project

ranking

during

the

Grant

evaluation

process.

SVCE

reserves

the
right to have Grant Funds
withheld from Recipient, or refunded to SVCE, due to Recipient’s failure to satisfactorily complete the Project or due to substantive changes to the Project.

5. TERM.

This Agreement shall commence on the Effective Date, and shall remain and continue in effect until the final Grant Funds are paid to Recipient, unless sooner terminated pursuant

the

provisions

this

Agreement.

Project completion dates shall not be extended
unless SVCE determines, in its sole discretion, that extenuating circumstances justify an extension.

Projects

must

complete no

later

than

December 31, 2028
.

6. REPORTING

AND

RECORDS.

Recipient

agrees

cooperate

with

SVCE

and

provide
requested information, if any, related to the use of Grant Funds and the Project, including

for the
purposes of SVCE’s evaluation, measurement, and verification activities for the Program.

Recipient will cooperate in good faith with SVCE or its authorized representative in performing evaluation, measurement and verification (EM&V) of the Program.

Information accessed for
EM&V may include, but is not limited to, onsite verification of Project operation, Program compliance, and

Project records, analysis of facility billing metered data, analysis of data collected from facility
-
owned submetering, and collection of supplementary metered data on -

site. All information collected will be held confidentially and will be used by SVCE o r its
authorized representative for Program analysis purposes only.

Recipient is responsible for
ensuring, through a separate agreement between Recipient and property owner, that property owner shall cooperate with SVCE to provide any documentation and ass ist in analysis and
provide access to the Project site at reasonable times, during the construction of the Project and for a period of up to two (2) years from the completion of the Project.

During the course of the

Page 304 of 448 ends

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version

Project

and

for

three

(3)

years

thereafter

from

the

receipt

the

final

Grant

Funds,

the

Recipient
agrees to maintain, intact and readily

accessible, all communications, data, documents, reports, records,
contracts, and supporting materials relating to the Project, as SVCE may require.

The
Recipient agrees to have financial and compliance audits performed as SVCE may require.

7. LEGAL RESPONSIBILITIES.

Recipient shall keep itself informed of all local,
State
and

Federal

ordinances,

laws

and

regulations

which

any

manner

affect

those

employed

or
in any way affect the performance under this Agreement.

Recipient shall at all times

observe
and comply with all such ordinances, laws and regulations.

SVCE, and its officers and
employees, shall not be liable at law or in equity occasioned by failure of Recipient to comply with this Section.

8. PREVAILING WAGES.

accepting the Grant Funds, Recipient as a material term of this Agreement shall be fully responsible for complying with all California public works requirements including but not limited to payment of prevailing wage. Therefore, as a material term of this
Agreement, to the extent required by California law, Recipient shall ensure that prevailing wages are paid, that the project budget for labor reflects these prevailing wage requirements, and that the project complies with all other requirements of prevaili ng wage law,
including

that

Recipient’s

subcontractors

also

comply

with

all

applicable

public

works/prevailing
wage requirements.

9. PROCUREMENT.

At minimum, Recipient shall abide by Recipient’s purchasing regulations

and

policies

and

all

California

laws

and

regulations

procuring

goods

services
where the costs are eligible for reimbursement under this Agreement.

9. CALIFORNIA PUBLIC RECORDS ACT.

Recipient

acknowledges that SVCE is
subject to the California Public Records Act (Gov. Code § 7920.000 et seq
.). SVCE
acknowledges that Recipient may submit information to SVCE that Recipient considers to be confidential,

proprietary,

trade

secret

information.

Only

such

information

clearly

designated

in
writing as “confidential” shall be deemed “Confidential Information.” Upon request or demand of any third person or entity (“Requestor”) for the production, inspection, and/or copying of Confidential Information,
SVCE shall notify Recipient that such request has been made.

Recipient shall be solely responsible for taking whatever legal steps are necessary to protect

Confidential Information and to prevent its release to the Requestor. Without limiting SVCE’s right

disclose

Confidential

Information

may

required

law,

Recipient

takes

such
action after receiving the foregoing notice from SVCE, SVCE shall be permitted to release information it deems subject to disclosure.

10. NOTICES.

Any

notices

provided

under

this

Agreement

must

writing

and

may

be
given either by mail or e
-
mail to the following addresses:

SVCE:

Silicon

Valley

Clean

Energy

Authority 333 W. El Camino Real #330

Sunnyvale,

94087

Attention:

[email protected]

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RECIPIENT:

City of Milpitas

Public Works

1265 N Milpitas Blvd

Milpitas, CA 95035

Attention:

Elaine Marshall

[email protected]

11. INDEPENDENT

CONTRACTOR.

Recipient shall at all times remain as to the SVCE a wholly independent contractor.

The personnel performing the services under this Agreement on behalf of Recipient

shall

all

times

under

Recipient's

exclusive

direction

and

control.

Neither

SVCE
nor any of its officers, employees, agents, or volunteers shall have control over the conduct of Recipient or any of Recipient's officers, employees, or agents except as set forth in this Agreement.

Recipient shall not at any time or in any manner represent that it or any of its officers, employees or agents are in any manner officers, employees or agents of the SVCE.

Recipient shall not incur or have the power to incur any debt, obligation or liability whatever
against SVCE, or bind SVCE in any manner.

employee

benefits

shall

available

Recipient

connection

with

the
performance of

this Agreement.

Except for the fees paid to Recipient

as provided in the
Agreement, SVCE shall not
pay salaries, wages, or other compensation to Recipient for performing

services

hereunder

for

SVCE.

SVCE

shall

not

liable

for

compensation

or
indemnification to Recipient for injury or sickness arising out of performing services hereunder.

12. INDEMNIFICATION; WAIVER.

Recipient shall indemnify, protect, defend and hold
harmless SVCE, its elected officials, officers, employees, volunteers, and representatives from any

and all suits, claims, demands, losses, defense costs or expenses, actions, liability or
damages of whatsoever

kind

and

nature

which

SVCE,

its

officers,

agents

and

employees

may

sustain

incur or which may be imposed upon them for injury to or death of persons, or damage to property arising out of Recipient’s acts or omissions arising out of or in any way related to the performance or non
-
performance of this Agreement. Recipient expressly

waives the provisions
of California Civil Code section 1542, which provides: “A general release does not extend to claims that the creditor or

releasing party does not know or suspect to exist in his or her favor at the time of executing the release and that, if known by him or her, would have materially affected his or her settlement with the debtor or released party.” This Section shall survi ve the
terminate of this Agreement.

13. INSURANCE.

On or before the commencement of the term of this Agreement, Recipient shall furnish

SVCE

with

certificates

showing

the

type,

amount,

class

operations

covered,

effective
dates, and dates of
expiration of insurance coverage in compliance with the requirements in

this

Section. Recipient shall maintain such coverage in full force at all times

for the duration of
this Agreement, at its sole cost and expense. Nothing herein shall be construed as a limitation
on Recipient indemnification obligations under this Agreement.

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Recipient

shall

maintain

the

following

minimum

insurance

coverages:

Workers’ compensation, as required by the State of California;

Commercial general liability coverage with minimum limits of $3,000,000 per
occurrence and $5,000,000 aggregate for bodily injury and property damage.

ISO occurrence Form CG 0001 or equivalent is required;

Comprehensive

automotive

liability

coverage

with

minimum

limits

$1,000,000

per

accident

for

bodily

injury

and

property

damage.

ISO

Form

0001

or equivalent is
required.

Such

coverages

shall

issued

insurer(s)

licensed

conduct

business

in the
State of California, with a minimum A.M. Best’s Insurance Rating of A:VII unless otherwise approved in writing as satisfactory to SVCE. The Recipient may satisfy its obligations under this Section through self
-
insurance.

The

insurance

limits

required

SVCE

are

not

represented

being

sufficient

to
protect Recipient.

Recipient is advised to confer with its insurance broker to determine adequate coverage for Recipient.

14. DEFAULT AND TERMINATION.

Should an Event of Default
occur, SVCE shall
provide a notice of default to Recipient and shall give Recipient at least fifteen (15) calendar days from the date the notice is sent to cure the Event of Default. If Recipient fails to cure the Event of Default within the time prescribe
d, SVCE may, at SVCE’s sole discretion, withhold
Grant

Funds

not

yet

disbursed

hereunder,

require

the

return

repayment

Grant

Funds

already
disbursed, and/or terminate this Agreement by written notice which shall be effective upon receipt by Recipient
. “Event of Default” shall mean the occurrence of any one or more of the following events by Recipient: (a) any false statement, representation, or warranty contained in this Agreement, the Application, or any other document submitted to SVCE; (b) failure to
comply with applicable laws; (c) a failure to maintain in effect any policy of insurance required under this Agreement; or (d) a material breach of this Agreement.

15. NON
-
APPROPRIATION.

Recipient acknowledges that SVCE is a public agency. In the event that sufficient funds for the performance of

this Agreement are not appropriated by

the
SVCE Board of Directors in any fiscal year covered by this Agreement, this Agreement may be terminated

SVCE,

without

penalty,

giving

notice

Recipient

such

facts

and

SVCE’s
intention to terminate.

16. NON
-
WAIVER.

Failure to exercise any right the SVCE may have or be entitled to, in the

event

default

hereunder,

shall

not

constitute

waiver

such

right

any

other

right

the
event of a
subsequent default.

17. AMENDMENT

AGREEMENT.

modification,

rescission,

waiver,

release

or
amendment of any provision of this Agreement shall be made except by a written agreement executed by the Recipient and the SVCE.

18. ASSIGNMENT

PROHIBITED.

event

shall

the

Recipient

assign

transfer

any
portion of this Agreement.

19. GOVERNING

LAW.

This

Agreement

shall

governed

the

laws

the State

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California.

Any

legal

action

brought

under

this

Agreement

must

instituted

the

Superior
Court of
the County of Santa Clara, State of California.

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20. NO THIRD
-

PARTY BENEFIT
. The provisions of this Agreement are for the sole
benefit

the

parties

hereto

and

confer

rights,

benefits,

claims

upon

any

person

entity
not a party hereto.

21. SEVERABILITY
. If any provision of this Agreement is held to be invalid or unenforceable

for

any

reason,

the

remaining

provisions

will

continue

full

force

without

being
impaired or invalidated in any way. The parties agree to replace any invalid provision with a valid provision that most closely approximates the intent and economic effect of the invalid provision.

obligations

hereunder

will

constitute

violation of,

default

under,

conflict

with

any

term
of any governance documents or other agreements to which it is bound.

23. COUNTERPARTS
.

This

Agreement

may

executed

one

counterparts,

each
of which shall be deemed an original and all of which shall be taken together and deemed to be one instrument. Faxed and PDF counterpart signatures are sufficient to make this Agreement effective.

24. ENTIRE AGREEMENT.

This Agreement contains the entire understanding between the parties relating to the obligations of the parties described in this Agreement.

All prior or
contemporaneous agreements, understandings, representations and statements, oral or written, are

merged

into

this

Agreement

and

shall

further

force

effect.

Each

party

entering
into

this

Agreement

based

solely

upon

the

representations

set

forth

herein

and

upon

each

party's
own independent investigation of any and all

facts such party deems material.

25. COMMUNICATIONS AND ENGAGEMENT
.

Recipient agrees that SVCE may use

and publicize information and visual materials (photos, videos, etc.) related to this project, including (but not limited to) information and visual materials provided in this application, updates,

follow
-
up

information.

Recipient

will

coordinate

good

faith

with

SVCE

follow
-

up activities, such as interviews, outreach coordination, photo or video shoots, requests for additional

information,

and

the

design

educational

materials

and

signage

the

project.

Recipient will work with SVCE to schedule all coordination and activities within a determined and mutually agreed
-
upon time frame and understand that refusal or failure to collaborate on marketing and outreach may result in termination of the fund ing.

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WITNESS

WHEREOF,

the

parties

hereto

have

caused

this

Agreement

be executed the
day and year first above written.

SILICON

VALLEY

CLEAN

ENERGY

AUTHORITY

NAME:

TITLE:

APPROVED

FORM:

NAME:

TITLE:

City of Milpitas

By:

Luz Cofresi
-
Howe, Finance Director

Date: _________________________________

By:

Deanna Santana
,
Interim
City Manager

Date:
_________________________________

APPROVED AS TO FORM BY COUNSEL FOR
CITY OF MILPITAS:

By:

Christopher Creech, Acting City Attorney

Date: _________________________________

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EXHIBIT

[Attach

Grant
Application
]

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Grant Form Questions:

Date of Grant Form: Name of Agency:

Name and Email of Project Team:

Project Name:

Email: Project Address:

Project Summary- Please briefly describe the project, site, technology (if applicable), and intended audience.

[email protected]; [email protected]
December 3, 2024
City of Milpitas
Elaine Marshall, Samu Tiumalu
Milpitas Fleet Electrification
1265 N Milpitas Blvd, Milptias, CA 95035The City is proposing to use the non-competitive grant funds to support electrification of the City’s public fleet. The City’s fleet is primarily housed and maintained at the City’s Public Works Corporation Yard located at 1265 N Milpitas Blvd, Milpitas, CA 95035. Certain dedicated fleet vehicles are located with departments at other sites such as at City Hall (Building Inspection, Fire Prevention. Code Enforcement, etc).

While the City has initiated efforts and has established an electric and plug-in electric motor pool for non-dedicated fleet vehicles through a lease option, electrification of remainder of the dedicated fleet is a challenge technologically, functionally, and financially.

Dedicated fleet vehicles consist mostly of larger trucks and mid-duty vehicles that are commonly used for specialty functions such as utility maintenance, street, park, and tree maintenance and also need to be available for emergency response. As such, the City would like to test use of electric vehicles in these functions to understand operating implications and identify best management practices to ensure optimum vehicle availability and readiness. Additionally, the City needs to understand and identify the best electric replacement vehicle based on use case.

The City has an underfunded fleet/equipment replacement fund and has been experiencing supply chain challenges replacing existing fleet vehicles. On top of that, the State’s new Advanced Clean Fleet requirements create a larger funding gap for replacements of internal combustion engine vehicles with electric.

Grant funds will be used to fund electrification for a portion of the City’s Public Works maintenance fleet replacement over the fiscal year (FY 25-26) and possibly the year thereafter (FY 26-27) based on the City’s ability to source and procure the vehicles.

The City plans to purchase up to five all-electric Ford F150 Lightings, estimated at $80,000 each. The Lightings will be used by Public Works field operations and utility maintenance divisions. Our Public Works Division Manager over Operations (including Fleet Maintenance) will work with City Purchasing Officer and Ford dealers to acquire the electric vehicles.

Project Summary Updated June 2025

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Anticipated Project Task
Start Date
End Date
Jan-25
Feb-25
Mar-25
Apr-25
May-25
Jun-25
Jul-25
Aug-25
Sep-25
Oct-25
Nov-25
Dec-25
Jan-26
Feb-26
Mar-26
Apr-26
May-26
Jun-26
Jul-26
Aug-26
Sep-26
Oct-26
Nov-26
Dec-26
Jan-27
Feb-27
Mar-27
Apr-27
May-27
Jun-27
Grant Award
Jan-25
Jan-25
Grant Agreement Establishment
Jan-25
Jun-25
Work with City Purchasing and Ford Dealers to Purchase
up to 5 F150 Lightings, continues in FY 26-27 if needed Jul-25
Jun-26
Receive Vehicles, continues in FY 26-27 if needed
Aug-25
Jul-26

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Project Budget: Fleet Electrification
City of Milpitas
Line Item Description
SVCE Grant Funding
Other Funding*
Total Cost (Line B + C)
Eletric Vehicle Replacement Total
Incremental Costs**
372,233.00
$

-
$

372,233.00
$

Totals
372,233.00
$

-
$

372,233.00
$

*Other Funding should match Project Funding Sources below.

Project Funding Sources
Please list all the sources of other funding below. The total of Other Funding Sources should match Total Other Funding Contribution above.

Source of Other Funding
Monetary
In-Kind $ Value
Total Contribution of
Funding from Other Sources
(Line B + C)
City of Milpitas Equipment
Replacement Funds/Other City Funds
TBD***
#VALUE!
-
$

-
$

Totals Other Funding Contributions
-
$

-
$

#VALUE!
***Amount of City funding for base vehicle replacement to be determined once actual replacement vehicles have been identified. ** City intends to use all grant dollars to offset incremental costs of electric vehicle replacements; number and cost per veicle to be determined once vehicles and suitable replacements have been identified.

Funding Secured
(yes/no)
Yes

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EXHIBIT

[
Member Agency
Guiding

Documents
]

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SVCE Member Agency Grant: Decarbonization Track

Reimbursement Guidance

Reimbursement Overview



The following activities must be completed before requesting reimbursement:

Construction

Community engagement activities as listed in your grant application

Marketing activities such as press release, photos, construction videos, and interviews with city staff for SVCE spotlight video



The reimbursement request must be submitted with the final report



If the reimbursement request or final report is missing information, SVCE will notify the grantee to resolve before processing



When possible, try to compile documents in a single PDF file



Reimbursement will be delivered as a physical check

Key Items for Reimbursement Packet



Cover letter on agency letterhead with a summary of the project, date, grant reimbursement amount, and signature from authority (e.g., Department Director, City Manager)



Accounts payable information such as official name and invoicing address



All applicable project invoices



Itemized list of expenditures and invoices listing SVCE’s applied grant funds



Photos, videos, and any publications related to the project



Reimbursement requests and questions can be sent to Jess Cornejo (
[email protected]
)

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SVCE Member Agency Grant: Decarbonization Track

Final Report Outline

[Guidance for grantees: This document is meant to present a high -
level summary of the grant project
for easy consumption by a
general audience. Please use non
-
technical language, define acronyms, and
limit the page range from 3
-
5 pages. You are encouraged to include any graphics or visualizations that help illustrate the project.]

Grant Project Title: __________________________

Grant project Timeline:

Budget Amount:

(List SVCE funding, external grant funding, and any match funding)

Partners:
(List all project partners)



…

Targeted Groups:

List the groups this project targets (e.g., single
-
family residential, multi
-
unit
dwellings, commercial/industrial, public agencies, demographic of groups, etc.)

Summary (~5
-
6 sentences, max 200 words)

Provide a brief summary of the grant project.

Project Goals (~2
-
4 paragraphs, max 300 words)

List the goals and objectives of the project.

Outcomes (~3
-
5 paragraphs, max 400 words)



What are the anticipated short
-
, medium
-

and long
-
term outcomes?



What are key metrics of success, and how did you measure success of the project?



Any notable improvements and differences in the site before and after building upgrades?



What were your agency's challenges during the project, and how did you resolve them?



What were the lessons learned from the project?

Please try to quantify anticipated outcomes where possible –

e.g., number of events hosted
at the site and number of people engaged, materials distributed, number and type of permits pulled for the project, improved building features, potential GHG reducti ons (direct
or indirect), etc. Please attach any additional materials associated with the project if applicable.

Future Plans
(~2
-
5 paragraphs, max 400 words)



Is the project completely finished? If not, what are your agency’s plans for continuing this work?



What special maintenance activities are planned for the demonstration project?



What might you do differently in the future for similar projects, and what advice might you have for others doing similar projects?



How can SVCE further support your agency in future grant cycles?

Final reports must be submitted with the reimbursement request and can be sent to Jess Cornejo (
[email protected]
).

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Silicon Valley Clean Energy

Community Grant Marketing Guidelines

HOW TO USE THIS DOCUMENT

This document is designed to
provide guidance for grantees developing communications and marketing materials related to projects receiving Silicon Valley Clean Energy (SVCE) Community Grant funding.

Grantees are responsible for ensuring all branding and related marketing materials, press releases, social media, online assets and communications are consistent with the guidelines in this document. SVCE can require grantees to change and/or remove any ma terial deemed
to veer from the following guidelines.

Please share this with marketing, communications, public relations, graphics, and web teams in addition to any staff working on materials that reference SVCE.

Grantee’s Role



Submit all materials created around the project receiving SVCE grant funding for SVCE review at least
one week

prior to planned material publication.



If requesting SVCE content support or guidance, please notify SVCE as soon as possible and allow for
at least

2 weeks

prior to planned publication.

SVCE’s Role

SVCE will complete a timely review for all materials that relate to SVCE grant -
funded projects or reference SVCE programs and resources.

SVCE will support planned press, media, or events around the project.

Key Contacts

If you have questions about your project, funding or timeline, please contact Senior Community Strategies Specialist Jess Cornejo at
[email protected]
.

If you have questions about these guidelines, marketing, public relations, or communications materials about the funded project, please contact Communications Specialist Emily Muniz at
[email protected]
.

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Approved Language

Referring to SVCE:

1. Silicon Valley Clean Energy

2. SVCE (acronym may be used after first spelling out full agency name)

3. SV Clean Energy

Describing SVCE
grant funding:

1. “Funding for
[title of project that received grant funding]

provided [or partly
funded] by the Silicon Valley Clean Energy Community Grants Program.”

Sharing SVCE resources:

1. “Explore rebates and incentives to go electric at
svcleanenergy.org/offers
-
services/”

2. “Talk to a trusted energy advisor for FREE at goelectric.svcleanenergy.org/”

3. “Start your journey to go electric with eHub (svcleanenergy.org/ehub/), the Silicon Valley Clean Energy resource that simplifies your switch to all -
electric living. Find
personalized rebates, incentives, and tips to power your home, car, appliances, and bu
siness with clean energy.”

4. Additional resources to share:
https://svcleanenergy.org/digital
-
media
-
assets/

Optional language to provide information about SVCE:

1. “Silicon Valley Clean Energy is the community choice electricity provider for thirteen communities in Santa Clara County formed to reduce greenhouse gas emissions and fight climate change locally. Silicon Valley Clean Energy provides homes and businesses w
ith clean electricity at competitive rates, reinvests locally through programs and community grants, and accelerates electric technologies through rebates, technical support, and innovative solutions supporting grid -
wide resilience.”

SVCE Logo Use

Grantees may use the
SVCE full logo

or
SVCE abbreviated log
o in marketing materials
related to the funded project, but must submit the materials to SVCE for review prior to publication.

The SVCE logo shall not be cropped, rotated, compressed or have the colors changed. If the grantee needs a specific logo not provided (i.e. all
-
white logo for dark backgrounds), the
grantee should contact SVCE with the request.

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SILICON VALLEY CLEAN ENERGY MEMBER AGENCY GRANT PROGRAM

AGREEMENT
THIS AGREEMENT is made and effective on the date of last signature below (“Effective Date”) by and between the Silicon Valley Clean Energy Authority (“SVCE”), an independent public agency and City of Milpitas (“Recipient”) In consideration of the covenants, conditions and undertakings set forth herein, the parties agree as follows:”

1. RECITALS. This Agreement is made with respect to the following facts and purposes which each of the parties acknowledge and agree are true and correct:

A. SVCE’s Member Agency Competitive Grant Program (“Program”) will provide $3M in grants to member jurisdictions to plan and develop decarbonization demonstration, energy resilience, and engagement projects.

B. Recipient submitted an application for Program funding, attached hereto and incorporated herein as Exhibit A, for a decarbonization demonstration, energy resilience, and engagement projects (“Project”). The scope and estimated budget for the Project are included in Exhibit A.

C. SVCE finds that the use of Grant Funds described herein furthers a public purpose and meets the goals and objectives established for the Program, and desires to award Recipient a one-time grant pursuant to the terms of this Agreement.

2. GRANT. SVCE hereby agrees to provide funding to Recipient in an amount not to exceed $502,000 subject to the provisions of this Agreement (“Grant Funds”). Such Grant Funds shall be disbursed to Recipient on a reimbursement basis. It is agreed and understood that the Grant Amount is a ceiling and that SVCE will only reimburse the allowable cost of services actually rendered as authorized by SVCE at or below the Grant Amount established herein.

3. REIMBURSEMENT OF GRANT FUNDS. Grant Funds shall be reimbursed pursuant to the following process:

A. SVCE shall reimburse Recipient for its actual and reasonable costs of constructing the Project up to the agreed upon Grant Funds.

B. Requests for payment submitted to SVCE shall include: 1) a cover letter in the agency’s letterhead summarizing the project and requested dollar amount for reimbursement 2) an itemized list of all expenditures; and 3) supporting documentation that clearly identifies the expenditure(s) in relation to the scope of the Project set forth in Exhibit A of this Agreement.

Payment requests should be aggregated and submitted after Project completion.

C. SVCE shall process requests for payment and remit payment within 30 days.

D. If, in SVCE’s sole discretion, the request for payment is incomplete, inadequate, or inaccurate, SVCE may dispute the invoice for reasonable cause and hold all or a portion of the payment request until all required information is received or corrected. Any penalties imposed

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on the Recipient by a contractor, or other consequence, because of delays in payment or other breach of the agreement between the Recipient and the contractor are the responsibility of the Recipient and are not reimbursable under this Agreement.

E. Unless otherwise authorized by SVCE in writing, Recipient shall submit all documentation of Project completion, including a final request for payment, within sixty (60) days of Project completion.

F. Final payment of remaining Grant Funds, including any amounts withheld from previous payments, shall be paid up to the total amount of the actual Project cost, not to exceed the Grant Funds amount set forth in this Agreement, upon completion of the Project, receipt of the final report and final request for payment from the Recipient in a form and content satisfactory to SVCE.

4. USE OF GRANT FUNDS. Recipient shall use the Grant Funds to support the Program as set forth in Exhibit A. Any use(s) of Grant Funds not contemplated in this Agreement must be approved in writing by SVCE. This Agreement was awarded to Recipient based on the application submitted by Recipient with the intention that the awarded funds would be used to implement the Project as described in Exhibit A. Any substantive deviation during Project implementation may require reevaluation or result in loss of funding. In no event shall Recipient’s Grant Funds or scope of work be increased. If Recipient knows or should have known that substantive changes to the Project will occur or have occurred, Recipient will immediately notify SVCE in writing. SVCE will then determine whether the Project is still consistent with the overall objectives of the Program and whether the changes would have negatively affected the Project ranking during the Grant evaluation process. SVCE reserves the right to have Grant Funds withheld from Recipient, or refunded to SVCE, due to Recipient’s failure to satisfactorily complete the Project or due to substantive changes to the Project.

5. TERM. This Agreement shall commence on the Effective Date, and shall remain and continue in effect until the final Grant Funds are paid to Recipient, unless sooner terminated pursuant to the provisions of this Agreement. Project completion dates shall not be extended unless SVCE determines, in its sole discretion, that extenuating circumstances justify an extension. Projects must be complete no later than December 31, 2028.

6. REPORTING AND RECORDS. Recipient agrees to cooperate with SVCE and provide requested information, if any, related to the use of Grant Funds and the Project, including for the purposes of SVCE’s evaluation, measurement, and verification activities for the Program.

Recipient will cooperate in good faith with SVCE or its authorized representative in performing evaluation, measurement and verification (EM&V) of the Program. Information accessed for EM&V may include, but is not limited to, onsite verification of Project operation, Program compliance, and Project records, analysis of facility billing metered data, analysis of data collected from facility-owned submetering, and collection of supplementary metered data on- site. All information collected will be held confidentially and will be used by SVCE or its authorized representative for Program analysis purposes only. Recipient is responsible for ensuring, through a separate agreement between Recipient and property owner, that property owner shall cooperate with SVCE to provide any documentation and assist in analysis and provide access to the Project site at reasonable times, during the construction of the Project and for a period of up to two (2) years from the completion of the Project. During the course of the

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Project and for three (3) years thereafter from the receipt of the final Grant Funds, the Recipient agrees to maintain, intact and readily accessible, all communications, data, documents, reports, records, contracts, and supporting materials relating to the Project, as SVCE may require. The Recipient agrees to have financial and compliance audits performed as SVCE may require.

7. LEGAL RESPONSIBILITIES. Recipient shall keep itself informed of all local, State and Federal ordinances, laws and regulations which in any manner affect those employed by it or in any way affect the performance under this Agreement. Recipient shall at all times observe and comply with all such ordinances, laws and regulations. SVCE, and its officers and employees, shall not be liable at law or in equity occasioned by failure of Recipient to comply with this Section.

8. PREVAILING WAGES. By accepting the Grant Funds, Recipient as a material term of this Agreement shall be fully responsible for complying with all California public works requirements including but not limited to payment of prevailing wage. Therefore, as a material term of this Agreement, to the extent required by California law, Recipient shall ensure that prevailing wages are paid, that the project budget for labor reflects these prevailing wage requirements, and that the project complies with all other requirements of prevailing wage law, including that Recipient’s subcontractors also comply with all applicable public works/prevailing wage requirements.

9. PROCUREMENT. At minimum, Recipient shall abide by Recipient’s purchasing regulations and policies and all California laws and regulations in procuring goods or services where the costs are eligible for reimbursement under this Agreement.

9. CALIFORNIA PUBLIC RECORDS ACT. Recipient acknowledges that SVCE is subject to the California Public Records Act (Gov. Code § 7920.000 et seq.). SVCE acknowledges that Recipient may submit information to SVCE that Recipient considers to be confidential, proprietary, or trade secret information. Only such information clearly designated in writing as “confidential” shall be deemed “Confidential Information.” Upon request or demand of any third person or entity (“Requestor”) for the production, inspection, and/or copying of Confidential Information, SVCE shall notify Recipient that such request has been made.

Recipient shall be solely responsible for taking whatever legal steps are necessary to protect Confidential Information and to prevent its release to the Requestor. Without limiting SVCE’s right to disclose Confidential Information as may be required by law, if Recipient takes no such action after receiving the foregoing notice from SVCE, SVCE shall be permitted to release information it deems subject to disclosure.

10. NOTICES. Any notices provided under this Agreement must be in writing and may be given either by mail or e-mail to the following addresses:

SVCE:

Silicon Valley Clean Energy Authority 333 W. El Camino Real #330 Sunnyvale, CA 94087
Attention: [email protected]

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RECIPIENT:

City of Milpitas Public Works
1265 N Milpitas Blvd
Milpitas, CA 95035
Attention: Elaine Marshall
[email protected]

11. INDEPENDENT CONTRACTOR.

A. Recipient shall at all times remain as to the SVCE a wholly independent contractor. The personnel performing the services under this Agreement on behalf of Recipient shall at all times be under Recipient's exclusive direction and control. Neither SVCE nor any of its officers, employees, agents, or volunteers shall have control over the conduct of Recipient or any of Recipient's officers, employees, or agents except as set forth in this Agreement. Recipient shall not at any time or in any manner represent that it or any of its officers, employees or agents are in any manner officers, employees or agents of the SVCE.

Recipient shall not incur or have the power to incur any debt, obligation or liability whatever against SVCE, or bind SVCE in any manner.

B. No employee benefits shall be available to Recipient in connection with the performance of this Agreement. Except for the fees paid to Recipient as provided in the Agreement, SVCE shall not pay salaries, wages, or other compensation to Recipient for performing services hereunder for SVCE. SVCE shall not be liable for compensation or indemnification to Recipient for injury or sickness arising out of performing services hereunder.

12. INDEMNIFICATION; WAIVER. Recipient shall indemnify, protect, defend and hold harmless SVCE, its elected officials, officers, employees, volunteers, and representatives from any and all suits, claims, demands, losses, defense costs or expenses, actions, liability or damages of whatsoever kind and nature which SVCE, its officers, agents and employees may sustain or incur or which may be imposed upon them for injury to or death of persons, or damage to property arising out of Recipient’s acts or omissions arising out of or in any way related to the performance or non-performance of this Agreement. Recipient expressly waives the provisions of California Civil Code section 1542, which provides: “A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release and that, if known by him or her, would have materially affected his or her settlement with the debtor or released party.” This Section shall survive the terminate of this Agreement.

13. INSURANCE.

A. On or before the commencement of the term of this Agreement, Recipient shall furnish SVCE with certificates showing the type, amount, class of operations covered, effective dates, and dates of expiration of insurance coverage in compliance with the requirements in this Section. Recipient shall maintain such coverage in full force at all times for the duration of this Agreement, at its sole cost and expense. Nothing herein shall be construed as a limitation on Recipient indemnification obligations under this Agreement.

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B. Recipient shall maintain the following minimum insurance coverages:
1)Workers’ compensation, as required by the State of California; 2)Commercial general liability coverage with minimum limits of $3,000,000 per occurrence and $5,000,000 aggregate for bodily injury and property damage.

ISO occurrence Form CG 0001 or equivalent is required;
3)Comprehensive automotive liability coverage with minimum limits of $1,000,000 per accident for bodily injury and property damage. ISO Form CA 0001 or equivalent is required.

C. Such coverages shall be issued by an insurer(s) licensed to conduct business in the State of California, with a minimum A.M. Best’s Insurance Rating of A:VII unless otherwise approved in writing as satisfactory to SVCE. The Recipient may satisfy its obligations under this Section through self-insurance.

D. The insurance limits required by SVCE are not represented as being sufficient to protect Recipient. Recipient is advised to confer with its insurance broker to determine adequate coverage for Recipient.

14. DEFAULT AND TERMINATION. Should an Event of Default occur, SVCE shall provide a notice of default to Recipient and shall give Recipient at least fifteen (15) calendar days from the date the notice is sent to cure the Event of Default. If Recipient fails to cure the Event of Default within the time prescribed, SVCE may, at SVCE’s sole discretion, withhold Grant Funds not yet disbursed hereunder, require the return or repayment of Grant Funds already disbursed, and/or terminate this Agreement by written notice which shall be effective upon receipt by Recipient. “Event of Default” shall mean the occurrence of any one or more of the following events by Recipient: (a) any false statement, representation, or warranty contained in this Agreement, the Application, or any other document submitted to SVCE; (b) failure to comply with applicable laws; (c) a failure to maintain in effect any policy of insurance required under this Agreement; or (d) a material breach of this Agreement.

15. NON-APPROPRIATION. Recipient acknowledges that SVCE is a public agency. In the event that sufficient funds for the performance of this Agreement are not appropriated by the SVCE Board of Directors in any fiscal year covered by this Agreement, this Agreement may be terminated by SVCE, without penalty, by giving notice to Recipient of such facts and of SVCE’s intention to terminate.

16. NON-WAIVER. Failure to exercise any right the SVCE may have or be entitled to, in the event of default hereunder, shall not constitute a waiver of such right or any other right in the event of a subsequent default.

17. AMENDMENT OF AGREEMENT. No modification, rescission, waiver, release or amendment of any provision of this Agreement shall be made except by a written agreement executed by the Recipient and the SVCE.

18. ASSIGNMENT PROHIBITED. In no event shall the Recipient assign or transfer any portion of this Agreement.

19. GOVERNING LAW. This Agreement shall be governed by the laws of the State of

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California. Any legal action brought under this Agreement must be instituted in the Superior Court of the County of Santa Clara, State of California.

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20. NO THIRD-PARTY BENEFIT. The provisions of this Agreement are for the sole benefit of the parties hereto and confer no rights, benefits, or claims upon any person or entity not a party hereto.

21. SEVERABILITY. If any provision of this Agreement is held to be invalid or unenforceable for any reason, the remaining provisions will continue in full force without being impaired or invalidated in any way. The parties agree to replace any invalid provision with a valid provision that most closely approximates the intent and economic effect of the invalid provision.

22. RECIPIENT'S AUTHORITY. Recipient represents and warrants that (a) it has the power and authority to enter into this Agreement and to perform its obligations hereunder; (b) the person who executes this Agreement on its behalf has the necessary authority to bind Recipient; and (c) neither the execution and delivery of this Agreement nor the performance of its obligations hereunder will constitute a violation of, a default under, or conflict with any term of any governance documents or other agreements to which it is bound.

23. COUNTERPARTS. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original and all of which shall be taken together and deemed to be one instrument. Faxed and PDF counterpart signatures are sufficient to make this Agreement effective.

24. ENTIRE AGREEMENT. This Agreement contains the entire understanding between the parties relating to the obligations of the parties described in this Agreement. All prior or contemporaneous agreements, understandings, representations and statements, oral or written, are merged into this Agreement and shall be of no further force or effect. Each party is entering into this Agreement based solely upon the representations set forth herein and upon each party's own independent investigation of any and all facts such party deems material.

25. COMMUNICATIONS AND ENGAGEMENT. Recipient agrees that SVCE may use and publicize information and visual materials (photos, videos, etc.) related to this project, including (but not limited to) information and visual materials provided in this application, updates, or follow-up information. Recipient will coordinate in good faith with SVCE on follow- up activities, such as interviews, outreach coordination, photo or video shoots, requests for additional information, and the design of educational materials and signage related to the project.

Recipient will work with SVCE to schedule all coordination and activities within a determined and mutually agreed-upon time frame and understand that refusal or failure to collaborate on marketing and outreach may result in termination of the funding.

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and year first above written.

SILICON VALLEY CLEAN ENERGY AUTHORITY
NAME:

TITLE:

APPROVED AS TO FORM:

NAME:

TITLE:

City of Milpitas
By:

Luz Cofresi-Howe, Finance Director
Date: _________________________________
By:

Deanna Santana, Interim City Manager
Date: _________________________________

APPROVED AS TO FORM BY COUNSEL FOR
CITY OF MILPITAS:

By:

Christopher Creech, Acting City Attorney
Date: _________________________________

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EXHIBIT A
[Attach Grant Application]

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SVCE 2025 Competitive Member Agency Grant: Decarbonization Track Application From City of Milpitas
City Motor Pool and Fleet Charing Stations at Milpitas City Hall Charge Connect
Building community around the EV transition in Milpitas

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Charge Connect
Building community around the EV transition in Milpitas Table of Contents
Proposal Summary ...................................................................................................................................3 Description of the Project........................................................................................................................4 Project Value and Impacts ...................................................................................................................4 Community Engagement Plan Outline ...............................................................................................5 Community Engagement Evaluation Metrics.........................................................................................7 Project Budget..........................................................................................................................................8 Project Workplan and Timeline ...............................................................................................................8 EV Installation Timeline .......................................................................................................................9 Community Engagement Timeline......................................................................................................9 History of Project/Grant Management ....................................................................................................9 Experience Administering Grants......................................................................................................10

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Proposal Summary
Following City Council adoption of Milpitas’ 2022 Climate Action Plan, efforts have been made to reduce Greenhouse Gas (GHG) emissions in high-emitting sectors across the city with transportation serving as an important area of focus due to its contribution to over half of the City’s emissions.

Milpitas recognizes the importance of normalizing awareness of availability of electric vehicle (EV) charging infrastructure in order to address charging access and range anxiety concerns among traditional drivers. The City proposes to use the requested $502,000 towards the installation of two high capacity DC fast chargers and one dual port level 2 charger at the City’s Public Works building to be used for public and City fleet charging and to leverage this infrastructure – along with the City’s electric fleet and other charging stations throughout Milpitas – in a dynamic two-way engagement campaign designed highlight EVs and EV infrastructure throughout our community. The City is
growing its electric vehicle fleet and has plans to purchase (with other funds) an all-electric sewer inspection (CCTV) truck in April 2025 and several Ford F-150 Lightings for our operations and maintenance staff. These vehicles will be housed at Public Works and will utilize these proposed charging stations. Additionally, the City intends for these stations to be available for personal vehicles belonging to City staff working onsite and to make the charging stations available for public use.

These new EV charging stations will serve as a springboard for a broader community engagement effort designed to increase awareness of EV infrastructure and EV adoption throughout Milpitas.

Community members will see more City branded EVs being used to provide critical city services and, as a part of the proposed community engagement campaign, be encouraged to look for EV infrastructure throughout the course of their daily lives in Milpitas and beyond. This will be supported through a combination of digital resources, gamification, and in-person events to improve visibility and awareness of the EV transition as a city priority. Even more so, these efforts will begin the process of building a community around the EV transition, drawing in more community support and creating a more impactful result.

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Description of the Project and Site
The majority of the grant budget, approximately
$430,000, will go towards the installation of four EV charging ports – two high-capacity DC fast chargers and one dual port level 2 charger –
located at the Public Works Department Building (1265 N Milpitas Blvd, Milpitas, CA 95035). This is a prime
location due to its proximity to the 880 freeway as well as both
residential and commercial zones. As a result, it sees regular traffic by both municipal personnel and the public. This mix of populations will
allow for messaging and influence that extend beyond Milpitas city lines, contributing to a broader Bay Area impact. Major roadways 880 and c50 are located within a 1-mile radius of the proposed EV charger site.

The remaining grant funds will be used to support and interactive digital and in-person community engagement campaign aimed to improve awareness of Milpitas’ EV infrastructure availability. Several approaches will be taken, including:
• Developing Milpitas EV Hub which will be promoted through traditional digital marketing techniques via social media and newsletter promotion • Scavenger hunts and other gamifications that will encourage participants to look for EV infrastructure while they are out and about
• Hosting Electrification Block Parties, EV showcases, and EV Ride and Drive events throughout the City including at the PW Building where we can showcase the grant funded stations and the City’s EV fleet
• Tabling at various City events
Project Value and Impacts
In August of 2022, the Milpitas City Council adopted an update to the City’s Climate Action Plan that set a goal of carbon neutrality by 2045. Over half (59%) of communitywide greenhouse gas (GHG) emissions from 2019 were generated by on-road transportation, and the City has since sought opportunities to address perceived barriers related to EV reliability and costs.

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Initial steps to address this issue have taken the form of City service fleet electrification which began in 2022, when the City introduced an all-electric and plug-in hybrid motor pool for employee business travel at City Hall. Conversion to EVs is still being conducted, but the City foresees a strong need for fast charging infrastructure to ensure that City vehicles can be quickly charged and remain in “ready state” for City maintenance operations as needed. DC fast charging will be essential for Public Works personnel who regularly travel throughout the city during the work week and when responding to emergencies, but they will also be key in serving members of the public who need fast charging before heading to 880 on the weekends and the work week.

Following discussions with community members, the City has determined that development of charging infrastructure is a major priority in establishing EV acceptance amongst Milpitas residents.

Investing in more EV chargers will increase community access which is an essential component to facilitate effective communitywide transition. This is one of many actions outlined in the City’s Climate Action Plan to decarbonize vehicles. Other actions identified in the CAP include establishment of preferential parking for EVs and reach codes requiring additional EV infrastructure (implemented).

This project also serves as an opportunity to showcase Milpitas’ commitment to environmental leadership in conjunction with increasing EV adoption as a city priority.

Increased accessibility to chargers will encourage residents to have more confidence to purchase and drive EVs more often, thus reducing GHG emissions from on-road vehicles.

The larger goal, however, is to normalize electric transportation infrastructure as a way of encouraging the entire Milpitas community to transition away from gas powered vehicles to EVs. The City aims to electrify 59% of passenger vehicles by 2030; 59% by 2040; and 85% by 2045 as is outlined in the Climate Action Plan. While progress has been made, the proposed project would ensure amplification of current efforts and establish longevity in this investment.

Community Engagement Plan Outline
The City recognizes that a perceived lack of established charging infrastructure stands as a major barrier to EV conversion in Milpitas. For non-EV drivers, a lot of concerns hamper one’s willingness to purchase an all-electric vehicle – in terms of both time and finances – including how and where to charge both routinely and while out and about and uncertainty related to costs to charge as compared to regular gas fueling. The community engagement plan addresses this by developing a centralized space for residents to access EV-related resources while also improving awareness of charger availability through Milpitas and

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possibly the greater Bay Area. The interactive plan will be completed digitally using different online platforms and social media for broader reach but will include in-person outreach as an opportunity to answer questions and further engage with residents.

The online campaign will feature a webpage modeled after the City’s home electrification “Incentive Corner” (https:// www.milpitas.gov/566/Incentive-Corner) previously established to collect resources including rebates and selection resources in a centralized location. The EV resource will be hosted through the City’s Public Works website and will highlight available EV charging apps that will more easily aid residents in identifying public chargers near them. Signage promoting the online resource will be posted alongside the installed EV chargers to ensure these two elements create a feedback loop, and its promotion will also be pushed through city-wide social media and newsletter campaigns. The City will also promote this information through all of our digital and social media channels including Sustainable Milpitas Newsletter, other online and print newsletters,
and social media.

Beyond more traditional approaches, the City proposes to create an interactive experience called “Charge It Up Milpitas”: a series of scavenger hunts and contests with the goal of increasing awareness of EV infrastructure throughout the community. The City will host regular contests and award prizes for “spotting” EV charging infrastructure while out and about in Milpitas.

Gamifying the City’s engagement encourages people of all ages to participate, thus increasing awareness of where EV infrastructure is being put in place. In the long run, this initiative addresses concerns related to lack of EV charging access by ensuring members of the community who may be on the fence about purchasing an EV see and process how many options are available for public charging ports.

Building onto the information shared about EVs, the City sees value in giving residents first- hand experience with vehicles. Acterra’s GoEV program is a leader in this field, and the City will work with the organization to host EV Expos, Ride and Drives, and additional in-person workshops. These opportunities will open spaces to demystify stigmas and start conversations amongst community members. The City plans to host some of these events at the Public Works building to feature the grant funded charging infrastructure as well as showcasing the City’s electric fleet vehicles.

Further expansion upon this in-person community engagement will take the form of block parties hosted by the City to promote electrification. These events will be planned in partnership with electrification ambassadors from the community who can provide testimonials for their electric vehicles and appliances.

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The goal of this multi-faceted community engagement campaign is to build community awareness, acceptance, and use of EVs in Milpitas. These collaborative efforts will move the City and its community toward community-wide vehicle electrification together.

Community Engagement Evaluation Metrics
This project will employ the Plan-Do-Check-Act method and will strive to learn from each event with the goal to improve for the next one. Over the course of the Project, the following measurement tools will be used to track progress, if we are reaching our intended objectives, and number of contacts that lead to action. Additional measurement tools will likely be identified and added over the course of the Project.

Proposed Measurement/Measurement
Tool
What We Can Deduce
Tracking of Milpitas EV Hub website trends Are outreach efforts resulting in action or follow-up by the participants?
Tracking attendance at Electrification
Block Parties/EV Showcases/Ride and
Drives
Number of people reached at event
Number of interactions/submissions to
“Charge It Up” scavenger hunt and other
contests
How many people are paying attention to
the EV infrastructure in Milpitas?
Tracking quantity of flyers distributed at
outreach events
Number of people reached at event
Tracking “number of clicks” on EV
newsletter updates
Are newsletter promotions supporting EV
Hub engagement?
Number of overall charging sessions per
week at grant-funded stations
How many people are utilizing the EV
infrastructure?

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Project Budget
Project Workplan and Timeline
The following depicts the anticipated project timeline based on the grant schedule provided by SVCE. Milpitas staff will work to keep the project on-time and on-budget. Any issue that result in project delays will be communicated to the grant manager in a timely fashion.

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EV Installation Timeline
Community Engagement Timeline
History of Project/Grant Management
This project will be overseen by the Deputy Public Works Director who has more than two decades of experience successfully implementing and building community engagement with high quality environmental programs. Beyond this, the Milpitas Public Works Department has completed several successful large-scale sustainability initiatives with built-in community engagement including but not limited to:
• Milpitas Smart City Infrastructure Project (https://smartcitymilpitas.org/) which included, among many efficiency and resiliency projects, outreach to prepare for the upgrade of all water meters to smart water meters and the launch of our WaterSmart portal for customers to track real time water use and receive leak alters. Since the launch in May 2022, the portal has over 4,000 registered users and continues to see new registrations each day;
• Our Drought Outreach Campaign continues to encourage community water conservation and has resulted in Milpitas achieving State and local water conservation targets (Milpitas achieved ~11% reduction in water use between 2020- 21 fiscal year and the 2023-24 fiscal year);
• Milpitas’ Climate Action Plan Update was adopted by the City Council in August 2022 following a multi-year community engagement process that included online

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community workshops, in-person pop-up engagements at the Milpitas Farmers’ Market, online surveys, neighborhood association presentations, and much more;
• Various ongoing environmental program outreach efforts including for solid waste, food scraps, street sweeping, and the Sustainable Milpitas Newsletter which continues to grow its audience and experiences an open rate of
more than 50%.

Experience Administering Grants
The City of Milpitas has a strong history of successfully applying, receiving, and administering grants from various local, regional, and federal agencies. The list below provides a snapshot of recently awarded or completed grants.

Information on additional grants can be provided upon request.

Grant Project Granting Agency Grant Amount Project Status Milpitas Fleet
Electrification
Silicon Valley Clean
Energy – 2024
Noncompetitive
Grant
$372,233 for
electrification of city
vehicle fleet
In progress.

Decarb Central Event
Collaboration
Silicon Valley Clean
Energy – 2023
Community
Engagement Grant
For large-scale
outreach event
promoting home
electrification
In progress.

Senior Center Solar
PV and Microgrid
Resiliency Project
Silicon Valley Clean
Energy – 2021
Community
Resilience Grant
$700,702 for upgrades
to city electrification
infrastructure
Completed
BAAQMD Charge!
Grant
Bay Area Air Quality
Management
District FYI 2019
Transportation fund
for Clean Air Grant
Program
$32,000 for EV
charging
infrastructure for
fleet charging at City
facilities
Completed
Milpitas Community
Shuttle
Santa Clara Valley
Transportation
Authority
$1,084,732 to
implement
Community Shuttle
Pilot
In progress.

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EXHIBIT B
[Member Agency
Guiding
Documents]

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SVCE Member Agency Grant: Decarbonization Track
Reimbursement Guidance
Reimbursement Overview
•The following activities must be completed before requesting reimbursement:
oConstruction
oCommunity engagement activities as listed in your grant application oMarketing activities such as press release, photos, construction videos, and interviews with city staff for SVCE spotlight video
•The reimbursement request must be submitted with the final report •If the reimbursement request or final report is missing information, SVCE will notify the grantee to resolve before processing
•When possible, try to compile documents in a single PDF file •Reimbursement will be delivered as a physical check
Key Items for Reimbursement Packet
•Cover letter on agency letterhead with a summary of the project, date, grant reimbursement amount, and signature from authority (e.g., Department Director, City Manager) •Accounts payable information such as official name and invoicing address •All applicable project invoices
•Itemized list of expenditures and invoices listing SVCE’s applied grant funds •Photos, videos, and any publications related to the project •Reimbursement requests and questions can be sent to Jess Cornejo ([email protected])

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SVCE Member Agency Grant: Decarbonization Track
Final Report Outline
[Guidance for grantees: This document is meant to present a high-level summary of the grant project for easy consumption by a general audience. Please use non-technical language, define acronyms, and limit the page range from 3-5 pages. You are encouraged to include any graphics or visualizations that help illustrate the project.]
Grant Project Title: __________________________
Grant project Timeline:

Budget Amount: (List SVCE funding, external grant funding, and any match funding) Partners: (List all project partners)
•…
Targeted Groups: List the groups this project targets (e.g., single-family residential, multi-unit dwellings, commercial/industrial, public agencies, demographic of groups, etc.) Summary (~5-6 sentences, max 200 words)
Provide a brief summary of the grant project.

Project Goals (~2-4 paragraphs, max 300 words)
List the goals and objectives of the project.

Outcomes (~3-5 paragraphs, max 400 words)
•What are the anticipated short-, medium- and long-term outcomes? •What are key metrics of success, and how did you measure success of the project? •Any notable improvements and differences in the site before and after building upgrades? •What were your agency's challenges during the project, and how did you resolve them? •What were the lessons learned from the project?
Please try to quantify anticipated outcomes where possible – e.g., number of events hosted at the site and number of people engaged, materials distributed, number and type of permits pulled for the project, improved building features, potential GHG reductions (direct or indirect), etc. Please attach any additional materials associated with the project if applicable.

Future Plans (~2-5 paragraphs, max 400 words)
•Is the project completely finished? If not, what are your agency’s plans for continuing this work?
•What special maintenance activities are planned for the demonstration project? •What might you do differently in the future for similar projects, and what advice might you have for others doing similar projects?
•How can SVCE further support your agency in future grant cycles? Final reports must be submitted with the reimbursement request and can be sent to Jess Cornejo ([email protected]).

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Silicon Valley Clean Energy
Community Grant Marketing Guidelines

HOW TO USE THIS DOCUMENT
This document is designed to provide guidance for grantees developing communications and marketing materials related to projects receiving Silicon Valley Clean Energy (SVCE) Community Grant funding.

Grantees are responsible for ensuring all branding and related marketing materials, press releases, social media, online assets and communications are consistent with the guidelines in this document. SVCE can require grantees to change and/or remove any material deemed to veer from the following guidelines.

Please share this with marketing, communications, public relations, graphics, and web teams in addition to any staff working on materials that reference SVCE.

Grantee’s Role
•Submit all materials created around the project receiving SVCE grant funding for SVCE review at least one week prior to planned material publication. •If requesting SVCE content support or guidance, please notify SVCE as soon as possible and allow for at least 2 weeks prior to planned publication.

SVCE’s Role
oSVCE will complete a timely review for all materials that relate to SVCE grant- funded projects or reference SVCE programs and resources. oSVCE will support planned press, media, or events around the project.

Key Contacts
If you have questions about your project, funding or timeline, please contact Senior Community Strategies Specialist Jess Cornejo at [email protected].

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Approved Language
Referring to SVCE:

1. Silicon Valley Clean Energy

2. SVCE (acronym may be used after first spelling out full agency name)

3. SV Clean Energy
Describing SVCE grant funding:

1. “Funding for [title of project that received grant funding] is provided [or partly funded] by the Silicon Valley Clean Energy Community Grants Program.” Sharing SVCE resources:

1. “Explore rebates and incentives to go electric at svcleanenergy.org/offers-services/”

2. “Talk to a trusted energy advisor for FREE at goelectric.svcleanenergy.org/”

3. “Start your journey to go electric with eHub (svcleanenergy.org/ehub/), the Silicon Valley Clean Energy resource that simplifies your switch to all-electric living. Find personalized rebates, incentives, and tips to power your home, car, appliances, and business with clean energy.”

4. Additional resources to share: https://svcleanenergy.org/digital-media-assets/ Optional language to provide information about SVCE:

1. “Silicon Valley Clean Energy is the community choice electricity provider for thirteen communities in Santa Clara County formed to reduce greenhouse gas emissions and fight climate change locally. Silicon Valley Clean Energy provides homes and businesses with clean electricity at competitive rates, reinvests locally through programs and community grants, and accelerates electric technologies through rebates, technical support, and innovative solutions supporting grid-wide resilience.” SVCE Logo Use
Grantees may use the SVCE full logo or SVCE abbreviated logo in marketing materials related to the funded project, but must submit the materials to SVCE for review prior to publication.

The SVCE logo shall not be cropped, rotated, compressed or have the colors changed. If the grantee needs a specific logo not provided (i.e. all-white logo for dark backgrounds), the grantee should contact SVCE with the request.

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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 No Longer Constitutes an Emergency (Staff Contact: Christian Di Renzo, Public Works Director, 408-586- 2602)
Category: Consent Calendar-Community Services and Sustainable Infrastructure Meeting Date: 6/17/2025
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 no longer constitutes an emergency and, therefore, terminate the emergency declaration.

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.

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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. No further emergency work is required at this time, and any remaining work can be done through regular contracting procedures.

Project #2: 16-Inch Spiral Welded Steel Water Main Repair – 878 Yosemite Avenue Background:

On April 16, 2025, City crews responded to a major water leak at the intersection of Yosemite Avenue and Hillview Drive. Upon investigation, a large hole was found on the underside of a 16-inch spiral welded steel water main, located at a transition fitting. This type of pipe requires specialized materials and certified welding expertise for repairs.

Given the complexity of the job, City staff contacted Preston Pipeline to assist with the emergency repair and provide a cost proposal. The total cost for the work, including labor, materials, and pavement restoration, was not to exceed $214,000. The initial plan was to begin work the week of June 2, with an estimated repair duration of up to five days.

Due to a delay in the delivery of specialized parts, the project start date was pushed back to June 6. On that day, crews mobilized to the site and began preparatory work. On June 7, Preston Pipeline successfully removed the damaged section of the steel water main and initiated installation and certified welding of the replacement pipe.

Repairs were completed on Sunday, June 8. Following pressure testing and inspection, City staff removed temporary jumper hoses that had been supplying nearby businesses, and full potable water service was restored without further issue. On June 9 and 10, final surface restoration was conducted, including pavement repair and roadway striping, ensuring the area was returned to its original condition.

All work associated with the emergency repair at Yosemite Avenue and Hillview Drive is now complete. Water service has been fully restored to all affected customers, and no further disruptions are anticipated.

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.

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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.

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CITY OF MILPITAS

AGENDA REPORT
(AR)
Item Title: Authorize the City Manager to Negotiate and Execute a Public Art Agreement with Vickie Jo Sowell (Staff Contact: Renee Lorentzen, Recreation and Community Services Director, 408-586-3409)
Category: Consent Calendar-Community Services and Sustainable Infrastructure Meeting Date: 6/17/2025
Recommendation: Authorize the City Manager, or designee, to negotiate and execute a Professional Services Agreement with Vickie Jo Sowell for a term of one year in an amount not to exceed $100,000, for historical park markers to be fabricated and installed in Bob McGuire Park, Fredrick Creighton Park, Delano Manongs Park, Peter Gill Park, Jose Higuera Adobe Park, Murphy Park, and Sunnyhills Albert Augustine Jr. Memorial Park.

BACKGROUND:

As part of their City Council-approved FY2020-21 Workplans, the Arts Commission and Parks Recreation and Cultural Resources Commission (PRCRC) were directed to collaborate on a project to develop historical park markers that would be public art pieces, honoring park namesakes. With the recent addition of Delano Manongs Park, Milpitas has 20 parks named for people and/or cultural groups.

A joint subcommittee of the Arts Commission and PRCRC was convened in May 2021 to develop a plan for a Historical Park Marker Project. The Park Marker Subcommittee (Subcommittee) consisted of two Arts Commissioners and three PRCRC Commissioners, one of whom also represented the Milpitas Historical Society.

The Subcommittee developed a concept of a unique-to-Milpitas, artist-designed kiosk which would contain interpretive signage about the park’s namesake, community designed artwork, and depending on space, possibly interpretive signage about the parkland’s former use, or native floral/fauna.

On September 19, 2023, the City Council approved the concept and $90,000 funding for Phase One projects, which will be Bob McGuire Park, Fredrick Creighton Park, Delano Manongs Park, Peter Gill Park, Jose Higuera Adobe Park, Murphy Park, and Sunnyhills Albert Augustine Jr. Memorial Park.

On March 18, 2025, the City Council approved the unanimous joint recommendation of the Arts Commission and Parks, Recreation and Cultural Resources Commission to approve the historical park markers design “Natives” by artist Vickie Jo Sowell, and approved an additional $10,000 from CP3489 Public Art Program to fully fund this project.

ANALYSIS:

Staff is recommending a professional services agreement with Vickie Jo Sowell for a term of one year in an amount not to exceed $100,000, for the “Natives” historical park markers to be fabricated and installed in Bob McGuire Park, Fredrick Creighton Park, Delano Manongs Park, Peter Gill Park, Jose Higuera Adobe Park, Murphy Park, and Sunnyhills Albert Augustine Jr. Memorial Park.

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FISCAL IMPACT:

This agreement is fully funded with the City Council appropriating $90,000 from the Public Art Fund at its September 19, 2023 meeting and $10,000 from the Delano Manongs Park CIP to the Public Art CIP No. 3489 at its March 18, 2025 meeting, for a total of $100,000.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):

ATTACHMENT(S):

None.

Page 357 of 448 ends

CITY OF MILPITAS

AGENDA REPORT
(AR)
Item Title: Authorize the City Manager to Negotiate and Execute an Agreement with RecTrac, LLC dba Vermont Systems for Recreation Management Software (Staff Contact: Luz Cofresí-Howe, Finance Director, 408-586-3111; and Renee Lorentzen, Recreation and Community Services Director, 408-586-3409) Category: Consent Calendar-Community Services and Sustainable Infrastructure Meeting Date: 6/17/2025
Recommendation: Authorize the City Manager, or designee, to negotiate and execute a Software License and Professional Services Agreement with RecTrac, LLC dba Vermont Systems for Recreation Management Software, including related professional services and as-required hardware, for an initial three-year term and a maximum compensation of $140,000, subject to the appropriation of funds.

BACKGROUND:

The City full-service Recreation and Community Services Department (Department) provides recreational services and activities, including class registrations, memberships, facility and park rentals, and point of sale transactions to a diverse population ranging from technically savvy dotcom engineers who handle all interactions online to non-computer users who typically conduct their transactions in person with staff members. The Department also serves a high percentage of non-native English speakers. As such, an intuitive, contemporary, robust, and user-friendly recreational management software solution is essential to delivering these services and serving the community. Last year, the Department processed nearly 9,000 transactions valued at almost $3 million. However, the City’s current recreation management solution no longer supports the City’s existing and anticipated future needs. Customer participation and diverseness are expected to continue to increase over the coming years so the City needs a software solution that will help the City continue to expand the program and better serve the community.

ANALYSIS:

On January 3, 2025, the City released a Request for Proposal (RFP 25-1010) for Recreation Management Software. The scope of work required a fully vendor-hosted, cloud-based, browser-agnostic, user-friendly solution that included childcare management, customer communications, facility reservations, league scheduling, membership management, intuitive entry procedures, class and session cloning, remote activity registration and payment processing, online activity registration, onsite activity registration, payment processing and payment plans, point of sale capability, reporting, scholarship accounting, marketing incentives, and more to facilitate Department operations and public use.

The RFP was publicly noticed on the City website and OpenGov, the City e-procurement website, in accordance with City Municipal Code. Upon release, 961 firms received notification of the RFP, and 41 firms downloaded the RFP documents. Six vendors submitted proposal responses by the published closing date of February 5, 2025.

The proposals were evaluated and scored in accordance with the evaluation criteria set forth in the RFP.

Following initial scoring, the top five-ranked vendors provided system demonstrations to the evaluation panel, as well as other subject matter experts in the City. After score adjustments based on information provided to the evaluation panel during the system demonstration, the top three-ranked proposers submitted Best and Final Offers (BAFOs), and customer references were conducted. Finalist scores following score adjustments based on BAFO responses and customer references are as follows:

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Points Range : Minimum = 0; Maximum = 10
Evaluation Criteria
Evaluation
Criteria
Weight (%) CivicPlus, LLC
Kaizen
Laboratories Inc.

RecTrac LLC dba
Vermont Systems
Cover Letter and Compliance
with RFP Requirements 5.0% 7.20 7.40 7.00
Company Profile 10.0% 7.80 8.00 7.80
Execution Plan 10.0% 6.60 8.20 7.00
References 10.0% 7.00 7.60 7.20
Personnel Assigned 10.0% 6.20 8.20 6.00
Technical Capabilities 40.0% 6.40 8.20 8.20
Proposed Compensation 15.0% 10.00 1.83 7.01
Weighted Average Score 100.0% 71.80 71.25 74.81
Based on these results of the weighted average score calculation, RecTrac LLC dba Vermont Systems was the best value proposer in accordance with the evaluation criteria set forth in the RFP.

POLICY ALTERNATIVE(S):

Alternative 1: Do not negotiate and execute an Agreement with RecTrac LLC dba Vermont Systems.

Pros: None.

Cons: The recommended new software will provide considerable improvement in functionality and user interfaces for both customers and City staff, as well as improved reporting, and a clear, simple pricing structure that does not burden Department customers with excessive online fees.

Reason for Not Recommending: By not approving staff’s recommendation, the Department and its customers would continue to be limited by its current software solution and would necessitate considerable additional staff time to conduct another solicitation.

FISCAL IMPACT:

RecTrac LLC dba Vermont Systems services will cost an estimated $140,000 of general fund monies over the next three years, which represents a slight savings over the current system, but also establishes known costs for each year’s subscription fees. Under the current vendor contract, fees are deducted directly from revenue so the actual cost to the City is not known in advance. The fees for the current system over the same three- year period are estimated to be in excess of $150,000. Under this recommendation and the new solution, all revenue comes directly to the City, so the City will see an increase in revenue to offset the expense.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):

ATTACHMENT(S):

None.

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CITY OF MILPITAS

AGENDA REPORT
(AR)
Item Title: Authorize the City Manager to Negotiate and Execute an Amendment to the Agreement for Asian-Inspired Congregate Nutritious Meals Services with Moonchef, LLC (Staff Contact: Luz Cofresí-Howe, Finance Director, 408-586- 3111; and Renee Lorentzen, Recreation and Community Services Director, 408- 586-3409)
Category: Consent Calendar-Community Services and Sustainable Infrastructure Meeting Date: 6/17/2025
Recommendation: Authorize the City Manager, or designee, to negotiate and execute an amendment to the Agreement for Asian-Inspired Congregate Nutritious Meals Services with Moonchef, LLC to extend the term for one additional year through June 30, 2026 and add $68,217 to the Agreement for a revised not-to-exceed compensation of $167,587 for the full three-year term.

BACKGROUND:

On July 14, 2023, the City released Request for Proposal (RFP) 24-002 seeking vendors to prepare and deliver Asian-Inspired Congregate Meals for the City’s Senior Nutrition Program. The City Senior Nutrition Program is a collaborative partnership with the County of Santa Clara Senior Nutrition Program and is aimed at providing hot, nutritious meals to seniors aged 60 and above. For Fiscal Year 2025-26, the City will serve 88+ meals daily to our senior population across 243 service days.

The RFP was publicly noticed on the City website and OpenGov, the City e-procurement website, in accordance with City Municipal Code. Upon release, 127 firms received notification of the RFP, and 5 firms downloaded the RFP documents. One vendor submitted a proposal response by the published closing date of July 28, 2023. Moonchef, LLC (Moonchef), as the sole responsive and responsible proposer, was awarded the contract.

The City entered into an Agreement with Moonchef on August 24, 2023 for an initial term of August 27, 2023 to August 26, 2024 and a maximum compensation of $47,370. On June 21, 2024, the City executed Amendment No. 1 to the Agreement to extend the term through June 30, 2025 and add an additional $52,000 for a revised maximum compensation of $99,370.

ANALYSIS:

The RFP through which this contract was awarded allowed for an initial one-year term and two one-year options to extend. However, adding the third option year requires City Council approval as the maximum revised compensation will be $167,587.

The requested amendment will extend the term of the existing Agreement for the additional option year, as allowed by the RFP, through June 30, 2026 and add $68,217. This will provide up to 10,709 meals at a cost $6.37 per meal for the additional one-year term and will result in a revised maximum compensation of $167,587 for the three-year Agreement.

Staff will conduct a new RFP within the next few months to establish contract(s) for the next fiscal year.

POLICY ALTERNATIVE(S):

Alternative 1: Do not authorize the City Manager, or designee, to amend the Agreement for Asian-Inspired Congregate Nutritious Meals Services with Moonchef.

Page 360 of 448 ends

Pros: The City saves these funds.

Cons: Seniors in the Senior Nutrition Program will have only one meal provider, TRIO Community Meals, LLC, without an alternative option like the Asian-inspired meals from MoonChef.

Reason not recommended: Seniors in the Senior Nutrition Program benefit from a diverse range of meal options, particularly with the inclusion of an Asian-inspired meal provider. Furthermore, past surveys of participating seniors indicate that this type of cuisine is a popular choice among them.

FISCAL IMPACT:

Approval to amend this Agreement will increase the total not-to-exceed amount of the Agreement from $99,370 to $167,587. Sufficient funds are available in the Fiscal Year 2025-2026 Adopted, Amended Operating Budget.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):

ATTACHMENT(S):

None.

Page 361 of 448 ends

CITY OF MILPITAS

AGENDA REPORT
(AR)
Item Title: Adopt a Resolution to Confirm the 2025 Weed Abatement Assessment Report (Staff Contact: Arthur Belton, Deputy Fire Chief / Fire Marshal, 408-586-3384) Category: Public Hearings-Public Safety
Meeting Date: 6/17/2025
Recommendation: Adopt a resolution confirming the 2025 Weed Abatement Assessment Report and Assessment List to be entered into the tax assessment rolls.

BACKGROUND:

On February 2, 1976, an Agreement was established and approved to abate weeds by the County of Santa Clara for the City of Milpitas. The purpose of the Agreement is to promote the efficiency and economy of operations in the abatement of weeds by the City and the County.

On June 21, 2022, City Council approved and authorized the City Manager to execute and sign the Amended and Restated Weed Abatement Agreement Between City of Milpitas and the County of Santa Clara Consumer and Environmental Protection Agency – Weed Abatement Program. The intent of this updated agreement was to provide consistency with current County standards. The County typically adjusts fees annually to ensure costs of the program are fully recovered from property owners within the program. Language in the agreement included a provision for a true-up, where the City will be responsible for any potential shortfall if the amounts collected from property owners are inadequate to reimburse the County for services provided.

The major procedural functions to be performed by the County and/or City shall include but not be limited to:

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

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

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

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

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

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

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7. The City Council, after a public hearing, shall require the County Assessor’s Office to include the costs of the weed abatement services performed for the City for the current year, as a special assessment on bills for taxes levied against the affected parcels. Such special assessments shall be liens on the respective properties.

ANALYSIS:

On March 4, 2025, the City Council adopted Resolution No. 9392 declaring noxious or dangerous weeds growing upon specific listed properties to be a public nuisance that must be abated by the removal of the weeds. If the public nuisance was not removed from a property by the owner, the City contracted with the County of Santa Clara Consumer and Environmental Protection Agency- Weed Abatement Program (County). to remove weeds and abate the nuisance. In accordance with Title V, Chapter 202 of the Milpitas Municipal Code, the County filed with the City Clerk a report and assessment list on weeds abated within the City as nuisances. A notice for the public hearing was sent by the City Clerk’s Office to the local newspaper for publication, as well as mailed to the affected property owners by the Fire Marshal’s Office pursuant to Milpitas Municipal Code Section V-202-9.00.

The City’s Municipal Code requires City Council to hear the report together with any objections from property owners liable to be assessed and make such modifications on the proposed assessment as it deems necessary.

Following adoption by the City Council, the resolution will be recorded and charges thereon become a lien on the land involved to be collected in the same manner as property taxes. A copy of the assessment list and the proposed resolution confirming the weed abatement report are included in the Council’s agenda packet.

POLICY ALTERNATIVE(S):

There are no policy alternatives other than what is outlined under the Recommendations section. Pursuant to the amended agreement of March 21, 2022, the County under the provisions of the Health and Safety Code of the State of California and its ordinance has the authority to enforce the abatement of weeds. Likewise, the City under the California Fire Code and Milpitas Municipal Code, Title V, Chapter 202 has the authority to enforce the abatement of weeds.

FISCAL IMPACT:

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

If the County’s costs to administer the program are not fully recovered through fees from the property owners, Section 7C of the agreement may be applied. If this true-up were to occur, it would impact on the General Fund via the Unanticipated Expenditure Reserve.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):

ATTACHMENT(S):
(a) 2025 Weed Abatement Assessment Report
(b) Resolution

Page 363 of 448 ends

Exhibit A

APN AMT
634 ABEL 022-06-010 $105.00
7280 MARYLINN 022-07-007 $2,541.68
99 MAIN 022-24-017 $210.00
111 Main 022-24-040 $807.00
VALLEY 022-28-026 $807.00
1735 CALIFORNIA 022-37-002 $3,984.11
CALIFORNIA 022-38-026 $105.00
CALIFORNIA 022-38-027 $105.00
81 DIXON 026-05-021 $105.00
DIXON 026-05-023 $105.00
1878 MILPITAS 026-05-024 $105.00
51 DIXON 026-05-053 $105.00
DIXON 026-06-012 $105.00
1720 ARIZONA 026-07-016 $105.00
1840 ARIZONA 026-07-051 $105.00
1640 ARIZONA 026-11-067 $105.00
BOTHELO 028-23-017 $105.00
RAILROAD 028-24-006 $3,776.89
1390 EL CAMINO HIGURA 029-02-007 $105.00
1327 CALLE ORIENTE 029-05-010 $651.00
880 EVANS 029-06-003 $105.00
666 EVANS 029-06-008 $105.00
826 CALAVERAS RIDGE 029-06-031 $105.00
322 PARK VICTORIA 029-16-006 $105.00
1220 COUNTRY CLUB 029-52-014 $105.00
1039 CAMARILLO 029-52-015 $105.00
673 QUINCE 029-59-014 $105.00
517 VISTA RIDGE 042-30-009 $105.00
519 VISTA RIDGE 042-30-010 $807.00
529 VISTA RIDGE 042-30-015 $105.00
410 VISTA RIDGE 042-30-024 $105.00
350 VISTA RIDGE 042-30-025 $105.00
531 VISTA RIDGE 042-30-029 $105.00
SERRA 083-06-006 $1,353.00
MAIN 083-06-008 $1,818.90
MAIN 083-07-015 $807.00
91 MONTAGUE 083-42-002 $210.00
HAMMOND 086-25-018 $4,557.32
MAIN 086-25-028 $105.00
HAMMOND 086-25-030 $1,869.80
HAMMOND 086-25-032 $1,865.98
BOTHELO 086-26-039 $2,129.16
HAMMOND 086-26-040 $2,236.05
HAMMOND 086-26-042 $3,722.56

2025 Weed Abatement
Program Assessment Report
City of Milpitas
Situs

Page 364 of 448 ends

MILPITAS 086-28-006 $105.00
VISTA 086-29-005 $5,279.59
WRIGLEY 086-29-036 $105.00
YOSEMITE 086-29-047 $2,887.80
876 YOSEMITE 086-30-047 $807.00
YOSEMITE 086-30-048 $3,910.89
AMES 086-30-060 $3,488.17
SINCLAIR FRONTAGE086-31-003 $5,025.60
MILPITAS 086-32-084 $4,094.64
1646 CENTRE POINT 086-33-110 $105.00
COSTA 086-41-014 $105.00
1001 MILPITAS 086-42-033 $105.00
GARDEN 086-94-014 $1,603.00
375 DEMPSEY 088-01-002 $105.00
PARK VICTORIA 088-04-062 $105.00
DEMPSEY 088-04-076 $105.00
534 PARK VICTORIA 088-06-039 $105.00
1459 CANTON 088-09-039 $105.00
1496 JUPITER 088-09-089 $105.00
2013 YOSEMITE 088-20-023 $105.00
575 CARLSBAD 088-20-102 $105.00
632 CARLSBAD 088-20-125 $105.00
1791 ROCKY MOUNTAIN 088-23-075 $105.00
1966 YOSEMITE 088-26-149 $105.00
OLD PIEDMONT 092-34-008 $2,705.80
1250 PIEDMONT 092-34-014 $702.00
2235 URIDIAS RANCH 092-37-050 $807.00
$69,875.94

Page 365 of 448 ends

When Recorded Mail to:

City of Milpitas
Attention: City Clerk
455 East Calaveras Boulevard
Milpitas, CA 95035
Record without fee under
Section 6103 - Government Code
State of California
RESOLUTION NO. _____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MILPITAS CONFIRMING A

WEED ABATEMENT ASSESSMENT REPORT AND ASSESSMENT LIST TO BE ENTERED

ON TAX ASSESSMENT ROLLS
WHEREAS, on March 4, 2025, the City Council of the City of Milpitas adopted Resolution No. 9392 declaring noxious or dangerous weeds growing upon and/or the accumulation of rubbish, refuse or dirt upon certain described property to be a public nuisance that must be abated by removal; and WHEREAS, if the public nuisance was not removed from the properties by the owner, the City contracted with the Office of Santa Clara County Agricultural and Environmental Management to remove the weeds, rubbish, refuse and/or dirt and abate the nuisance; and WHEREAS, the Office of Santa Clara County Agricultural and Environmental Management filed a report and abatement assessment list with the City Clerk in conformance with Title V, Chapter 202 of the Milpitas Municipal Code; and
WHEREAS, notice of the report and abatement assessment list was posted in accordance with Milpitas Municipal Code, Section V-202-9.00; and
WHEREAS, on June 17, 2025 a public hearing was held on said report and assessment list, a copy of which is attached hereto as Exhibit A; and
WHEREAS, the City Council heard and overruled any objections of the property owners liable to be assessed for the abatement.

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

2. The City Council hereby confirms the 2025 Weed Abatement Assessment Report and Abatement List by the County of Santa Clara for the City of Milpitas, filed by the Office of Santa Clara County Agricultural and Environmental Management, without modification.

3. The City Council orders that the cost of abating such public nuisance upon the various properties respectively referred to in the 2025 Weed Abatement Assessment Report and Assessment List shall constitute special assessments against such respective parcels of land and shall constitute a lien against such parcels for the amount of such assessments.

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4. The City Manager shall cause a certified copy of this Resolution confirming the 2025 Weed Abatement Assessment Report and Assessment List to be recorded in the Office of the Santa Clara County Recorder and to be filed with the County Tax Assessor and Collector’s office and the County Auditor’s office in order for said assessments to be entered on the tax rolls as provided by Title V, Chapter 202 of the Milpitas Municipal Code.

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

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:
________________________________
Carmen Montano, Mayor
ATTEST:
______________________________________
Suzanne Guzzetta, City Clerk
APPROVED AS TO FORM:
_________________________________________
Christopher Creech, Acting City Attorney

Page 367 of 448 ends

CITY OF MILPITAS

AGENDA REPORT
(AR)
Item Title: Adopt a Resolution Certifying the City of Milpitas Sewer System Management Plan (Staff Contact: Christian Di Renzo, Public Works Director, 408-586-2602) Category: Public Hearings-Community Services and Sustainable Infrastructure Meeting Date: 6/17/2025
Recommendation: Adopt a resolution certifying the City of Milpitas 2025 Sewer System Management Plan.

BACKGROUND
The City of Milpitas maintains a sanitary sewer collection system. The State Water Resources Control Board (“SWRCB”) Order# 2022-0103-DWQ requires all entities that own and operate sanitary sewer systems that convey untreated wastewater to a publicly-owned treatment plant to prepare a Sewer System Management Plan (“SSMP”). The SSMP is a document that addresses procedures to operate, maintain and manage wastewater collection systems. The goal of the Sewer System Management Plan (Plan) is to provide a plan and schedule to: (1) properly manage, operate, and maintain all parts of the Enrollee’s sanitary sewer system(s), (2) reduce and prevent spills, and (3) contain and mitigate spills that do occur. Utilization of the SSMP provides the guidelines and procedures to reduce the number and frequency of sanitary sewer overflows (“SSOs”) thereby decreasing the risk to both human health and the environment. Staff recently completed a regulatorily required self-audit and has identified several SSMP revisions that will improve program effectiveness.

SWRCB Order #2022-0103-DWQ became effective June 5, 2023, and replaces the previous order that was issued in 2006. This reissued Order imposed several new requirements on agencies including new spill response procedures, spill monitoring and notification requirements, revised self-audit frequencies, additional spill categories, and new certification and reporting requirements. The Order also requires that agencies update their SSMPs by August 2, 2025, and that the SSMPs are certified by the agency’s governing body.

ANALYSIS
The 2025 update of the City of Milpitas’ Sewer System Management Plan (SSMP) is a comprehensive response to the updated State Water Resources Control Board (SWRCB) Order No. 2022-0103-DWQ, and incorporates findings from the City’s 2021 Sewer Master Plan (SMP) and the 2020 Asset Renewal and Replacement (R&R) Study. The updated SSMP consolidates and documents significant enhancements in operation, maintenance, and risk management strategies.

Significant updates include:

1.Revised SSMP Structure and Compliance Alignment
The SSMP was reorganized using the 2024 BACWA SSMP Guidance to align with the latest WDR requirements, including new certification, reporting, and audit mandates.

2. Enhanced Condition Assessment and Rehabilitation Planning a. Integrated findings from the 2021 SMP and 2020 R&R Study, which evaluated 105,000 feet of sewer pipe using CCTV inspection.
b. Segments were prioritized based on Business Risk Exposure (BRE) scores derived from Likelihood of Failure (LoF) and Consequence of Failure (CoF) criteria, guiding future rehabilitation investments.

3. Modernized Mapping and GIS Protocols
a. Updated protocols for maintaining accurate wastewater collection system maps in GIS. b. Mobile redlining and QA/QC review now ensure real-time updates and accuracy post- construction.

4. Spill Emergency Response Plan (SERP) Updates

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a. SERP fully revised to incorporate the new spill category (Category 4), improved interagency notifications, and provisions for public observations via the City's work order system.

5. Capacity Planning Based on Latest Hydraulic Modeling a. The 2021 SMP model evaluated both existing and projected (2040) conditions and found no major capacity deficiencies.
b. One pipe segment flagged as “marginally deficient” (MH GID 1392) has been proactively fitted with SmartCover® monitoring to mitigate potential SSOs.

6. Expanded Use of Technology in Preventive Maintenance a. Deployment of 33 SmartCover® sensors and expanded use of the Lucity CMMS for scheduling and tracking cleaning, root control, and inspection activities. b. Real-time level monitoring allows for targeted maintenance and spill prevention.

7. New Climate Resilience Section
a. The SSMP includes a new section on climate adaptation, outlining a three-year review cycle and strategies for sea level rise, extreme precipitation, and wildfire impacts on system operations.

8. Formalization of Private Lateral Maintenance Program (PLMP) a. The SSMP initiates development of a Private Lateral Maintenance Plan by 2026, consistent with regional best practices.

9. FOG (Fats, Oils, and Grease) Program Updates
a. Improved inspections, enforcement, and recordkeeping. b. Education and BMP outreach are being implemented to reduce commercial and residential FOG sources.

10. Training and Certification Improvements
a. Staff training requirements now include annual SERP drills, CIWQS reporting, and SSMP implementation.

These updates reflect a continued commitment to regulatory compliance, public health protection, and infrastructure resilience, while incorporating robust asset management principles and data-driven planning tools. The Order also requires that the City audit its implementation of the SSMP every 3 years and update the SSMP every 6 years.

POLICY ALTERNATIVE(S)
Alternative 1: City Council does not adopt a resolution to re-certify the City of Milpitas’ 2025 Sewer System Management Plan.

Pros: None.

Cons: Does not comply with the State Water Resources Control Board (“SWRCB”) Order# 2022-0103-DWQ which requires the City Council to update and re-certify the SSMP by August 2, 2025.

Reason for Not Recommending: The City would be out of compliance with the State Water Resources Control Board (“SWRCB”) Order# 2022-0103-DWQ.

FISCAL IMPACT
None.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA)
The introduction and adoption of this Ordinance is not a project subject to the California Environmental Quality Act (CEQA) as it can be seen with certainty that the ordinance does not have the potential to result in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, and is more akin to an administrative activity of the government pursuant to CEQA Guidelines Section 15378.

ATTACHMENT(S)
(a) Resolution
(b) Draft 2025 Sanitary System Management Plan

Page 369 of 448 ends

RESOLUTION NO. ________

A RESOLUTION OF THE CITY COUNCIL OF MILPTIAS APPROVING AND CERTIFYING THE CITY’S SEWER SYSTEM MANAGEMENT PLAN IN

ACCORDANCE WITH THE CALIFORNIA STATE WATER RESOURCES
CONTROL BOARD’S ADOPTED STATEWIDE GENERAL WASTE

DISCHARGE REQUIEMENTS FOR SANITARY SEWER SYSTEMS, WATER QUALITY ORDER NO. 2022-0103-DWQ
WHEREAS, on May 2, 2006, the California State Water Resources Control Board (“Water Board”) adopted Statewide General Waste Discharge Requirements for Sanitary Sewer Systems, requiring owners of public sanitary sewer collection systems to prepare a Sewer System Management Plan (“SSMP”); and
WHEREAS, on December 6, 2022, the Water Board adopted Order #2022-0103-DWQ replaces the previous order that was issued in 2006 and became effective June 5, 2023; and WHEREAS, Order #2022-0103-DWQ requires that agencies update their SSMPs by August 2, 2025 and that the SSMPs are approved and certified the agency’s governing body; and WHEREAS, the SSMP is a document that addresses procedures to operate, maintain and manage wastewater collection systems; and
WHEREAS, utilization of the SSMP provides the guidelines and procedures to reduce the number and frequency of sanitary sewer overflows (“SSOs”) and thereby decrease the risk to human health and the environment in our community; and
WHEREAS, the City Council approved and certified previous SSMPs on August 18, 2009, August 19, 2014, December 16, 2016, and October 19, 2021; and NOW, THEREFORE, the City Council of the City of Milpitas hereby finds, determines, and resolves as follows:

2. The City Council hereby approves and certifies the 2025 SSMP, attached hereto as Exhibit A.

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

AYES:

NOES:

ABSENT:

ABSTAIN:

Page 370 of 448 ends

2 Resolution No. xxxx
ATTEST: APPROVED:

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

Christopher Creech, Acting City Attorney

Page 371 of 448 ends

City of Milpitas
Sewer System Management Plan
(SSMP)
2025 Update
Sanitary Sewer Collection System
Waste Discharge ID (WDID): # 2SSO10156

REVIEWED AND APPROVED BY:

Elaine Marshall, Deputy Public Works Director
Legally Responsible Oﬃcial
City of Milpitas
Sanitary Sewer Collection System
(includes Element Development Plans & Schedules)

Date Signed

THIS PAGE INTENTIONALLY LEFT BLANK

SSMP CHANGE LOG
© 2025 Fischer Compliance, LLC. All rights reserved. Sewer System Management Plan licensed for City of Milpitas use only. COPY THIS PAGE AS NEEDED Revision
Date
SSMP
Section
Approval
Date
Description of Change/Revision Made Initials

LETTER OF COMPLIANCE

City of Milpitas
Att: Elaine Marshall, Deputy Public Works Director
Legally Responsible Oﬃcial (LRO)
455 East Calaveras Boulevard
Milpitas, CA 95035
Dear Ms. Marshall,
We are pleased to present the new 2025 Sewer System Management Plan (SSMP) Update developed in partnership with Agency management. The 2025 Update meets and exceeds compliance with the Reissued WDR (State Water Board, Water Quality Order No. 2022-0103-DWQ, Attachment D-10 and Speciﬁcations 5.4). The 2025 SSMP has been completely revised to harmonize with industry standard guidelines and incorporates the latest SSMP Audit ﬁndings.

The 2025 SSMP is a declaration of what the Agency is doing to demonstrate full compliance with the Reissued WDR. Attachment A of the Reissued WDR (page A-4), states “A sewer system management plan is a living document which requires the Agency to Enrollee develops and implements to eﬀectively manage its sanitary sewer system(s) in accordance with this General Order.” This requires the Agency to periodically review and update the SSMP as necessary until its next required 6 -year SSMP Update is completed.

We look forward to assisting the Agency wherever necessary to fully implementation its new 2025 SSMP Update.

Sincerely,

James Fischer, P.E.

Principal, Fischer Compliance LLC
Credentialed U.S. EPA NPDES Compliance Inspector

TABLE OF CONTENTS
INTRODUCTION .................................................................................................................................................. 1 SSMP Organization ..................................................................................................................................................................... 2 Abbreviations and Acronyms...................................................................................................................................................... 3

1. GOAL AND INTRODUCTION ......................................................................................................................... 4

1.1. Regulatory Context ............................................................................................................................................................ 4

1.2. SSMP Update Schedule ...................................................................................................................................................... 5

1.3. Sewer System Asset Overview ........................................................................................................................................... 7 Speciﬁcations 5.2 – SSMP Development and Implementation ................................................................................................ 10 Speciﬁcations 5.7 – Allocation of Resources ............................................................................................................................ 11 Provisions 6.1 - Enforcement Provisions .................................................................................................................................. 13 Provisions 6.3 Sewer System Management Plan Availability ................................................................................................... 14

2. ORGANIZATION ......................................................................................................................................... 15

2.1. Organizational Lines of Authority .................................................................................................................................... 18

2.2. Organizational Responsibilities ........................................................................................................................................ 19

2.3. Chain of Communication for Reporting Spills .................................................................................................................. 20

3. LEGAL AUTHORITY ..................................................................................................................................... 22

4. OPERATION AND MAINTENANCE PROGRAM ............................................................................................. 24

4.1. Updated Map of Sewer System ....................................................................................................................................... 24

4.2. Preventive Operation and Maintenance Activities .......................................................................................................... 25

4.3. Training ............................................................................................................................................................................ 27

4.4. Equipment Inventory ....................................................................................................................................................... 29 Speciﬁcations 5.19 - Operations and Maintenance .................................................................................................................. 31

5. DESIGN AND PERFORMANCE PROVISIONS ................................................................................................. 32

5.1. Updated Design Criteria/Construction Standards/Speciﬁcations .................................................................................... 32

5.2. Procedures and Standards ............................................................................................................................................... 33

6. SPILL EMERGENCY RESPONSE PLAN ........................................................................................................... 36

7. SEWER PIPE BLOCKAGE PROGRAM ............................................................................................................ 38

8. SYSTEM EVALUATION, CAPACITY ASSURANCE, CAPITAL IMPROVEMENTS .................................................. 42

8.1. System Evaluation and Condition Assessment ................................................................................................................ 42

8.2. Capacity Assessment and Design Criteria ........................................................................................................................ 46

8.3. Prioritization of Corrective Action ................................................................................................................................... 48

8.4. Capital Improvement Plan ............................................................................................................................................... 49

9. MONITORING, MEASUREMENT, AND PROGRAM MODIFICATIONS ............................................................. 51

10. INTERNAL AUDITS ...................................................................................................................................... 53

11. COMMUNICATION PROGRAM ................................................................................................................... 55 LIST OF APPENDICIES ......................................................................................................................................... 57

LIST OF FIGURES
Figure 1 - Collection System Operational Report – SWRCB Integrated Water Quality System (CIWQS) ..................... 1 Figure 2 - Sewer System Management Plan, Subsequent Update and Audit Due Dates ............................................. 5 Figure 3 – City of Milpitas Vicinity Map and Service Area ............................................................................................ 8 Figure 4 - Organizational Lines of Authority ............................................................................................................... 18 Figure 5 - Chain of Communication for Reporting Spills ............................................................................................. 20

LIST OF TABLES
Table 1 - Abbreviations and Acronyms ......................................................................................................................... 3 Table 2 - City Sewer Connection Flow Classiﬁcations And Connections Data .............................................................. 8 Table 3 - Implementation Responsibilities ................................................................................................................. 16 Table 4 - Implementation Responsibilities City Contacts ........................................................................................... 17

OVERVIEW
© 2025 Fischer Compliance, LLC. All rights reserved. Sewer System Management Plan licensed for City of Milpitas use only. Page 1 of 57 Introduction
This Sewer System Management Plan (SSMP) or “Plan” has been prepared for the City of Milpitas (City) with technical assistance from Fischer Compliance LLC for meeting and exceeding compliance with the State Water Resources Control Board 2022 General Waste Discharge Requirements, Order No. 2022 -0103-DWQ for Sanitary Sewer Systems (referred to throughout this document as the WDR ). The City provided all details, information and institutional insights for preparation of the SSMP. The document has been developed to meet the size, scale, and complexity, serving as a “living document” used as a tool for managing and operating the City's sanitary sewer collection system. Additionally, the latest 2024 Sewer System Management Plan Guidance Manual published by the Bay Area Clean Water Agency (BACWA) was utilized as a model for development of the document to harmonize formatting/content and incorporate recommended suggested guidance wherever possible.

The City’s commitment to meeting or exceeding regulatory requirements, along with their proactive approach to operation and management of the collection system, has served them well, as evidenced by system performance relative to other agencies in the region and the state.

Figure 1 provides key Agency spill metrics, including data (8/1/2009 to 5/1/2025) comparing the City ’s spill record with state and regional system data. The City consistently performs better than both statewide and regional spill rate indices and net spill volumes for all categories of spills from its sanitary sewer collection system. See also Appendix 1.1.

Figure 1 - Collection System Operational Report – SWRCB Integrated Water Quality System (CIWQS)

OVERVIEW
© 2025 Fischer Compliance, LLC. All rights reserved. Sewer System Management Plan licensed for City of Milpitas use only. Page 2 of 57 SSMP Organization
This SSMP is organized into 11 core elements following Attachment D of the WDR, with inclusion of applicable Speciﬁcations requirements.

Each individual element in the SSMP includes the following technical contents.

1. Requirements – Provides the actual description of applicable requirements in the WDR.

2. Compliance – Describes the City’s approach to complying with the WDR requirements.

3. Eﬀectiveness – As measured by Key Performance Indicators (KPIs)

4. Implementation – Demonstrates how the City will ensure the Plan is being carried out as described.

5. Resilience – Demonstrates the resilience that is addressed in the SSMP and built -in to the City’s collection system and procedures.

6. Appendix Inclusions – List the items included in the Appendix for each SSMP Element, if any.

OVERVIEW
© 2025 Fischer Compliance, LLC. All rights reserved. Sewer System Management Plan licensed for City of Milpitas use only. Page 3 of 57 Abbreviations and Acronyms
BMP Best Management Practices
CCTV Closed Circuit Television
CIP Capital Improvement Program
CIPP Cured in Place Pipe
CIWQS California Integrated Water Quality System (State Water Board Online Spill Database) CMMS Computerized Maintenance Management System
FOG Fats, Oils and Grease
FSE Food Service Establishment
GCD Grease Control Device
GIS Geographic Information System
I & I Inﬂow and Inﬁltration
LRO Legally Responsible Oﬃcial
RWF San Jose-Santa Clara Regional Wastewater Facility
RWQCB Regional Water Quality Control Board (San Fransico Bay Region) SCADA Supervisory Control and Data Acquisition
SERP Spill Emergency Response Plan
SOP Standard Operating Procedure
SSMP Sewer System Management Plan
Spill Sanitary Sewer Overﬂow
WDR Sanitary Sewer Systems General Wastewater Discharge Requirements Order issued by the State Water Board (Order No. 2022-0103-DWQ)
SWRCB State Water Resources Control Board
WDID Waste Discharge ID Number (CIWQS)
Table 1 - Abbreviations and Acronyms

GOAL AND INTRODUCTION

1. Goal and Introduction

REQUIREMENTS
Att. D-1 (pg. D-2)
“The goal of the Sewer System Management Plan (Plan) is to provide a plan and schedule to: (1) properly manage, operate, and maintain all parts of the Enrollee’s sanitary sewer system(s), (2) reduce and prevent spills, and (3) contain and mitigate spills that do occur.

The Plan must include a narrative Introduction section that discusses the following items (see below):”

1.1. Regulatory Context

WDR REQUIREMENTS
Att. D-1.1 (pg. D-2)
“The Plan Introduction section providing a general description of the local sewer system management program and discuss Plan implementation and updates.”

COMPLIANCE
The City is committed to fully implementing the WDR which includes addressing all requirements by integrating a wide range of programs speciﬁcally designed for ensuring the integrity and eﬃciency of the City’s sanitary sewer collection system. Moreover, the City is dedicated to maintaining its collection system in a systematic manner by implementing various work programs , with a focus on critical areas, to prevent spills, allowing for a comprehensive approach to maintenance.

Establishing internal core objectives allows City staﬀ to focus on complying with the WDR and develop strategies and procedures to achieve successful overall management and maintenance of the wastewater collection system. Work programs conducted under the City ’s Preventative Maintenance, Rehabilitation and Replacement and Capital Improvement and SSMP implementation Programs include CCTV inspections, pipe cleaning, lift station maintenance, root control, sewer main lining, sewer main and lateral pipe repair , smart manhole cover installation, inspection of connected FOG generating sources/source control and public outreach.

By prioritizing proactive measures and taking a comprehensive approach, the City is well-equipped with a proven track record of eﬀectively operating its sanitary sewer collection system with the highest levels of service, complying with the WDR, and reducing/eliminating sewage spills.

EFFECTIVENESS
N/A

IMPLEMENTATION PLAN/SCHEDULE
N/A

GOAL AND INTRODUCTION

1.2. SSMP Update Schedule

WDR REQUIREMENTS
Att. D-1.2 (pg. D-3)
“The Plan Introduction section must include a schedule for the Enrollee to update the Plan, including the schedule for conducting internal audits. The schedule must include milestones for incorporation of activities addressing prevention of sewer spills.”

COMPLIANCE
The City utilizes the State Water Board’s online lookup tool for ensuring all required due dates for updating its SSMP and completing its required SSMP Audits (see chart below).

The City’s most recent SSMP audit was completed for the period August 2, 2021 through August 2, 2024.

Figure 2 - Sewer System Management Plan, Subsequent Update and Audit Due Dates

GOAL AND INTRODUCTION

EFFECTIVENESS
The City utilizes the following Key Performance Indicators for measuring eﬀectiveness of this Element:
• Are SSMP Audits and SSMP Updates being performed as scheduled? • Has the Sewer System Management Plan been approved by the City Council on schedule (every six years)?
• Are speciﬁc internally established sewer program milestones being monitored?

IMPLEMENTATION PLAN/SCHEDULE
No. Plan Schedule Responsible Party
Dir Eng Man

1.2.1 Prepare for next SSMP Audit Begin 5/2/2027 X X X

1.2.2 Complete and Upload SSMP Audit By 11/2/2027 X X

1.2.3 Incorporate Audit Findings, update Change
Log and Update SSMP 5/2/2025 X

1.2.4 City Council Approval and LRO Certiﬁcation of
SSMP By 5/2/2025 X

GOAL AND INTRODUCTION

1.3. Sewer System Asset Overview

WDR REQUIREMENTS
Att. D-1.3 (pg. D-3)
“The Plan Introduction section must provide a description of the Enrollee -owned assets and service area, including but not limited to:
• Location, including county(ies).
• Service area boundary.
• Population and community served.
• System size, including total length in miles, length of gravity mainlines, length of pressurized (force) mains, and number of pump stations and siphons. • Structures diverting stormwater to the sewer system.
• Data management systems.
• Sewer system ownership and operation responsibilities between Enrollee and private entities for upper and lower sewer laterals.
• Estimated number or percentage of residential, commercial, and industrial service connections; and
• Unique service boundary conditions and challenge(s).
• Additionally, the Plan Introduction section must provide reference to the Enrollee’s up-to-date map of its sanitary sewer system, as required in section 4.1 (Updated Map of Sanitary Sewer System) of this Attachment.”

COMPLIANCE
The City of Milpitas is located in northeastern Santa Clara County between the Cities of San Jose and Fremont. See Figure 2. The collection system generally ﬂows from east to west and south to north towards the San Francisco Bay. Most of the collection system ﬂows by gravity to the Milpitas Main Pump Station then is pumped to the San Jose-Santa Clara Regional Wastewater Facili ty (RWF) through dual force mains.

The Venus Way Lift Station pumps sewage from a small portion of the City in the Pines neighborho od that is at a lower elevation up to a higher elevation where it then ﬂows by gravity to the Main Pump Station.

The City encompasses 14 square miles of residential, commercial, industrial, agricultural and recreational land uses, roughly oriented around the intersections of SR 237 with I-880 on the west and I-680 on the east approximately 45 miles southeast of San Francisco . The City provides wastewater collection services to a population of 81,067 and hosts a number of high-tech electronic research, development and manufacturing facilities typical of the Silicon Valley.

The City owns and operates a municipal sewer collection system consisting of 1 79 miles of gravity mains, with pipe diameters ranging from 4 -inch to 66 -inch, ﬁve ( 5) miles of force main, 14,779 sewer lateral connections totaling approximately 71 miles of lower laterals, two (2) sewer pump stations and twenty-four (24) siphons.

The City’s collection system does not include storm water diversion structures.

The City uses the Lucity CMMA to maintain asset data and manage workﬂow. This is discussed in more detail in Element 4.2 of the SSMP.

The City owns and operates the lower laterals . The private property owners the upper sewer laterals and are responsible for their operation, maintenance, and repair.

GOAL AND INTRODUCTION

Estimated customer connection classiﬁcations are presented below.

Use Type Number of Connections
Residential 14,363
Commercial/Institutional 709
Industrial 290
Overall, the City has put itself in good position to maintain its collection system. There are few service area challenges. Some manholes cannot be accessed by heavy equipment, which requires remote set up s such as pulling jetter hose or CCTV cameras to manholes from the vehicle parked a distance away. During heavy rain events, access to some easement roads/manholes can sometimes be limited for short periods.

The City maintains up to date system maps. Refer to Section 4.1 Updated Map of Sanitary Sewer System for more detail.

Figure 3 – City of Milpitas Vicinity Map and Service Area Table 2 - City Sewer Connection Flow Classiﬁcations And Connections Data

GOAL AND INTRODUCTION

EFFECTIVENESS
The City utilizes the following Key Performance Indicators for measuring eﬀectiveness of this Element:
• Are asset statistics periodically reviewed and updated as necessary? • Are omissions or errors addressed in a timely manner? • Are system maps up to date?

IMPLEMENTATION PLAN/SCHEDULE
No. Plan Schedule Responsible Party
Dir Eng Man

1.3.1 Review City-owned asset
statistics and element
description; update as necessary
At the beginning of the audit cycle and
when signiﬁcant changes have been
made.

X X

1.3.2 Update Maps Within 30 Days of Correction Submittal of Completion of Development Project
X

RESILIENCE
Resilience is addressed for Element 1 by:
• Adhering to an SOP for collecting and managing asset data. • Redundancy: More than one member of staﬀ is trained and able to retrieve and manage the data. • Implementing a QA/QC process to help ensure information is accurate. • Using Calendar Reminders to ensure compliance deadlines are met.

APPENDIX 1 INCLUSIONS:
• 1.1 Milpitas City 2007-2024 CIWQS Historical Collection System Operational Report

GOAL AND INTRODUCTION

WDR REQUIREMENTS
Spec. 5.2 (pg. 18)
“To facilitate adequate local funding and management of its sanitary sewer system(s), the Agency shall develop and implement an updated Sewer System Management Plan. The scale and complexity of the Sewer System Management Plan, and speciﬁc elements of The SSMP, must match the size, scale, and complexity of the Enrollee’s sanitary sewer system(s). The Sewer System Management Plan must address, at minimum, the required Plan elements in Attachment D (Sewer System Management Plan – Required Elements) of this General Order. To be eﬀective, the Sewer System Management Plan must include procedures for the management, operation, and maintenance of the sanitary sewer system(s).

The procedures must: (1) incorporate the prioritization of system repairs and maintenance to proactively prevent spills, and (2) address the implementation of current standard industry practices through available equipment, technologies, and strategies.”

COMPLIANCE
The City's current Sewer System Management Plan (SSMP) has been updated to meet the requirements of Order WQ 2022-0103-DWQ and addresses the required Elements. The SSMP addresses management, operations and maintenance procedures speciﬁc to the City’s collection system. The City maintains a proactive O&M program to operate its system and identify defects, which are then prioritized for repair, replacement, rehabilitation, or placed on modiﬁed maintenance schedules. (See Elements 4 and 8 and Speciﬁcations 5.19 of this SSMP for more detail.)
The City keeps up with current industry standards, technology and best practices by reviewing industry periodicals, networking and attending industry conferences and workshops.

GOAL AND INTRODUCTION

WDR REQUIREMENTS
Spec. 5.7 (pg. 22)
“The Agency shall comply with the following requirements:
• Establish and maintain a means to manage all necessary revenues and expenditures related to the sanitary sewer system; and
• Allocate the necessary resources to its sewer system management program for: (a) compliance with this General Order, (b) full implementation of its updated SSMP, (c) system operation, maintenance, and repair, and (d) spill responses.”

COMPLIANCE
The City maintains various revenue sources to maintain ﬁnancial stability, meet its operational needs and manage all necessary expenditures for its sewer system operation. The primary source of revenue is the annual Sewer Service Rate Charge, which is collected from customers and used for:
• City’s share of operation and maintenance of the San Jose-Santa Clara Regional Wastewater Facility • Plant improvements, equipment replacement, and modiﬁcation. • Maintenance and operation of City wastewater collection and conveyance system • Collection system maintenance equipment and construction • General administrative services
• Extension of service of collection system
• General and unappropriated reserves
The annual Sewer Service Rate Charge is adopted by the City every ﬁve (5) years and, is allocated to fund sewer maintenance and upgrades to facilities serving existing connections.

The City also collects a sewer impact fee that funds the installation of facilities to areas not yet served and to upsize existing facilities to ensure adequate capacity.

The City’s sewer utility is a self -supporting enterprise. Revenues derived from sewer rates and other sources, including reserves, must be suﬃcient to cover all operating and capital expenditures each year.

The City aims to balance its budgets each year. Fund reserves generated in surplus years are typically used to make up any revenue shortfalls in deﬁcit years.

The City has evaluated several aspects of the sanitary sewer system’s ﬁscal needs. The Sewer Master Plan has identiﬁed pipe deﬁciencies and treatment capacity shortfalls that must be mitigated to meet build -out conditions. The Utility Depreciation Study (See Financial Utility-Master-Plan 2003) identiﬁed the age and materials of the collection system and established a long -term replacement schedule. The Financial Utility Master Plan incorporated the proposed Master Plan projects and replacement needs and developed a cash ﬂow scenario for a 20-year period. The City has demonstrated its commitment to provide and operate a functional sewer collection system with suﬃcient capacity monitoring, measurement & program modiﬁcations.

The City’s rate structure conforms to the State Water Resources Control Board (SWRCB) revenue program guidelines that require each customer or class to pay sewer rates in proportion to the cost of service received. Milpitas customer rates are allocated based on estimated wastewater ﬂows and strengths. Sewer rates are adopted by the City Council via ordinance. The sewer section derives funding from the sewer enterprise fund, which includes the user rate structure (Sewer Fund) and developer hookup fees (Sew er Treatment Plant) and Sewer Bond.

GOAL AND INTRODUCTION

© 2025 Fischer Compliance, LLC. All rights reserved. Sewer System Management Plan licensed for City of Milpitas use only. Page 12 of 57 • Sewer Infrastructure Fund: Monies set aside to replace aging infrastructure for sewer related projects.
• Sewer Fund : Enterprise fund which receives revenue from sewer rates for sewer related improvements.
• Sewer Treatment Fund: Funded from fees collected from developers connecting to the Sewer System.

Funds restricted for sewer related projects.
• Sewer Bond : Bond is a debt security issued to ﬁnance capital expenditures including the sewer system. Restricted use.

Expenses typically fall into four categories: City operations, City capital improvements, RWF operations, or RWF capital improvements. The Milpitas City Council has established target reserve levels for the Sewer Fund.

The City is adequately staﬀed with ten (10) full time employees of which four (4) are CWEA certiﬁed Grade I, two (2) are CWEA certiﬁed Grade II, three (3) are CWEA certiﬁed Grade III and one (1) is CWEA certiﬁed Grade IV collection system operators responsible for managing and maintaining the sewer collection system. The City owns and operates the necessary equipment to eﬀectively maintain its collection system.

GOAL AND INTRODUCTION

WDR REQUIREMENTS
Provisions 6.1 (pg. 27)
“The following enforcement provisions are based on existing federal and state regulations, laws and policies, including the federal Clean Water Act, the state Water Code and the State Water Board Enforcement Policy.”

COMPLIANCE
The City is aware of the consequences for noncompliance including associated penalties for violations. The City maintains a proactive stance with full implementation of its SSMP.

Noncompliance with requirements of this General Order or discharging sewage without enrolling in this General Order constitutes a violation of the Water Code and a potential violation of the Clean Water Act and is grounds for an enforcement action by the State Water Board or the applicable Regional Water Board.

Failure to comply with the notiﬁcation, monitoring, inspection, entry, reporting, and recordkeeping requirements may subject the Enrollee to administrative civil liabilities of up to $10,000 a day per violation pursuant to Water Code section 13385; up to $1,000 a day per violation pursuant to Water Code section 13268; or referral to the Attorney General for judicial civil enforcement. Discharging waste not in compliance with the requirements of this General Order or the Clean Water Act may subject the Enrollee to administrative civil liabilities up to $10,000 a day per violation and additional liability up to $10 per gallon of discharge not cleaned up after the ﬁrst 1,000 gallons of discharge; up to $5,000 a day per violation pursuant to Water Code section 13350 or up to $20 per gallon of waste discharged; or referral to the Attorney General for judicial civil enforcement.

GOAL AND INTRODUCTION

WDR REQUIREMENTS
Provisions 6.3
“The Enrollee’s updated Sewer System Management Plan must be maintained for public inspection at the Enrollee’s oﬃces and facilities and must be available to the public through CIWQS and/or on the Enrollee’s website, in accordance with section 3.8 (Sewer System Management Plan Reporting Requirements) of Attachment E1 (Notiﬁcation, Monitoring, Reporting and Recordkeeping Requirements) of this General Order.”

COMPLIANCE
The City publishes its SSMP, available for public review, on its website and also maintains a paper copy in its oﬃces which can be made available for inspection during regular business hours. The City’s adopted SSMP is also being made readily available to the Regional Water Quality Control Board (Region No. 2 ) representatives upon request and to the operators of any collection system or treatment facility downstream of the City’s sanitary sewer system.

2. Organization

WDR REQUIREMENTS
Att. D-2 (pg. D-3)
“The Plan must identify organizational staﬃng responsible and integral for implementing the local Sewer System Management Plan through an organization chart or similar narrative documentation that includes:
• The name of the Legally Responsible Oﬃcial as required in section 5.1 (Designation of a Legally Responsible Oﬃcial) of this General Order.
• The position titles, telephone numbers, and email addresses for management, administrative, and maintenance positions responsible for implementing speciﬁc Sewer System Management Plan Elements.
• Organizational lines of authority.
• Chain of communication for reporting spills from receipt of complaint or other information, including the person responsible for reporting spills to the State and Regional Water Boards and other agencies, as applicable. (For example, county health oﬃcer, county environmental health agency, and State Oﬃce of Emergency Services.)”

COMPLIANCE
The above requirements are addressed in order below:

The City’s Legally Responsible Oﬃcials (LRO) are listed below:
• Elaine Marshall, Deputy Public Works Director 408-586-2602 • Daniel McVey, Public Works Division Manager – Utilities 408-586-2618 Both meet the requirements set forth in Speciﬁcations 5.1 of the WDR (WQ-2022 0103-DWQ).

IMPLEMENTATION RESPONSIBILITIES
Sewer System Management Plan Elements Responsible Position

1. SSMP Plan, Goal and Introduction Deputy Public Works Director

1.1. Regulatory Context Deputy Public Works Director

1.2. SSMP Update Schedule Deputy Public Works Director

1.3. Sewer System Asset Overview Deputy Public Works Director

2. Organization Deputy Public Works Director

3. Legal Authority Deputy Public Works Director

4. Operations and Maintenance Program Public Works Manager for Utilities

4.1. Updated maps of Sanitary Sewer System Public Works Manager for Utilities

4.2. Preventive Operation & Maintenance Public Works Manager for Utilities

4.3. Training Public Works Manager for Utilities

4.4. Equipment Inventory Public Works Manager for Utilities

5. Design/Performance Deputy Public Works Director

5.1. Updated Design Criteria & Construction Standards Deputy Public Works Director

5.2. Procedures and Standards Deputy Public Works Director

6. Spill Emergency Response Plan Public Works Manager for Utilities

7. Sewer Pipe Blockage Program Deputy Public Works Director

8. System Eval, Capacity Assurance, Capital Imp. Deputy Public Works Director

8.1. System Evaluation and Condition Assessment Deputy Public Works Director

8.2. Capacity Assessment and Design Criteria Deputy Public Works Director

8.3. Prioritization of Corrective Action Deputy Public Works Director

8.4. Capital Improvement Plan Deputy Public Works Director

9. Monitoring, Measurement & Program Modiﬁcations Deputy Public Works Director & Public Works Manager for Utilities

10. Internal Audits Deputy Public Works Director

11. Communication Program Deputy Public Works Director & Public Works Manager for Utilities

Table 3 - Implementation Responsibilities

RESPONSIBLE POSITION CONTACT INFORMATION
Responsible Person Responsible Position Phone Email
Christian Di Renzo Public Works Director 408.586.2602 [email protected] Elaine Marshall Deputy Public Works Director 408.586.2603 [email protected] Daniel McVey Public Works Manager – Utilities 408.586.2618 [email protected] Michael Silveira, P.E. City Engineer 408.586.3303 [email protected] Public Works Division Manager – Utility
Engineering Vacant

Table 4 - Implementation Responsibilities City Contacts

2.1. Organizational Lines of Authority
Figure 4 below shows the City’s organization chart and City staﬀ who manage all sanitary sewer activities within the City, whether it be reporting spills, analyzing capacities of the sanitary sewer system, or maintaining sanitary sewer facilities.

Figure 4 - Organizational Lines of Authority

2.2. Organizational Responsibilities
A description of responsibilities or roles of each position related to the City’s sewer system management and SSMP implementation are as follows:

City Council
Approves operating budgets and capital improvement program, enters agreements on behalf of the City.

City Manager
City’s Executive Oﬃcer. Oversees and coordinates work of all departments.

City Attorney
City’s Legal Counsel. Advises on content of sewer ordinances, coordinates ordinance adoption, provides legal interpretations, and serves in enforcement actions.

Public Works Director
Establishes sewer system policy and plans strategy, leads and assigns duties of engineering staﬀ, prepares budgets and serves as the spokesperson for spill related events. (See section 2.2: Chain of Communication:
spill Reporting).

Deputy Public Works Director (Secondary LRO)
Oversees and prepares wastewater collection system planning documents, documents new and rehabilitated assets, proposes rate analysis reports and staﬀ recommendations, and coordinates development and implementation of SSMP.

Public Works Manager for Utilities (Primary LRO)
Manages ﬁeld operations and maintenance activities, provides relevant information to management, prepares and implements contingency plans, leads emergency response, investigates and reports spills, and trains ﬁeld crews. (See section 2.2: Chain of Communication: Spill Reporting).

Public Works Maintenance Crew/Standby Crew
Undertakes preventive maintenance activities, mobilizes and responds to notiﬁcation of stoppages and spills (mobilize sewer cleaning equipment, by-pass pumping equipment, and portable generators).

RWF
Provides pre-treatment program inspection and permitting to ensure compliance of the RWF operations with its NPDES discharge permit.

2.3. Chain of Communication for Reporting Spills
During Business hours calls are received by the City’s Service Call Operator, who makes a Work Request and dispatches a designated person to respond. After Hours go to Police dispatch who contact the designated standby person. Lift station alarms are routed to the standby person. Alarm calls from remote level-sensing devices are sent to a pager and to designated personnel via text and email.

Response personal follow the guidelines set forth in the City’s spill response procedures, which are generally respond, assess, mitigate, resolve, estimate spill volume and spill start time, clean up, and document. Filed documentation is submitted to the Senior Lead of the Utility Department.

The Senior Lead ensures that all necessary information has been collected, veriﬁes the submitted data and then forwards to the Public Works Manager – Utilities for submission and certiﬁcation in CIWQS.

Figure 5 - Chain of Communication for Reporting Spills

SPILL INCIDENT COMMAND
In the event that command personnel are absent, the speciﬁc order of command is as follows:

1. Public Works Manager for Utilities

2. Deputy Public Works Director

3. Senior Lead

4. Equipment Maintenance Worker 3

EFFECTIVENESS
The City utilizes the following Key Performance Indicators for measuring eﬀectiveness of this Element:
• Have there been any changes requiring updates to the Organizational Chart? • Have there been instances when a service call for a spill was not properly routed to response personnel?
• Were all spill response activities documented and forwarded to the LRO? • Have there been any changes in assigned responsibilities for implementing the Sewer System Management Plan?
• Is there a process in place to ensure all contact information remains up to date?

IMPLEMENTATION PLAN/SCHEDULE
No. Plan Schedule Responsible Party
Dir Eng Man

2.1 Review names, contact information and position
responsibilities. Update as necessary.

Semi-Annually X X

2.2 Review Chain of Communication outcomes for all
spill responses
Each Spill Event X X

2.3 Review Organizational Chart for any changes. Update as necessary.

Semi-Annually X X

RESILIENCE
Resilience is addressed for Element 2 by:
• Ensuring that more than one person is capable and responsible for speciﬁc duties for Sewer System Management Plan implementation, e.g., back-up personnel. • Designation of more than one LRO to help ensure full and continuous coverage of duties. • Testing the phone notiﬁcation system to ensure calls are received and routed to appropriate personnel.

APPENDIX 2 INCLUSIONS:
• 2.1 Utility Maintenance Standard Operating Procedures

3. Legal Authority

WDR REQUIREMENTS
Att. D-3 (pg. D-4)
“The Plan must include copies or an electronic link to the Enrollee’s current sewer system use ordinances, service agreements and/or other legally binding procedures to demonstrate the Enrollee possesses the necessary legal authority to:
• Prevent illicit discharges into its sanitary sewer system from inﬂow and inﬁltration (I&I); unauthorized stormwater; chemical dumping; unauthorized debris; roots; fats, oils, and grease; and trash, including rags and other debris that may cause blockages. • Collaborate with storm sewer agencies to coordinate emergency spill responses, ensure access to storm sewer systems during spill events, and prevent unintentional cross connections of sanitary sewer infrastructure to storm sewer infrastructure. • Require that sewer system components and connections be properly designed and constructed.
• Ensure access for maintenance, inspection, and/or repairs for portions of the service lateral owned and/or operated by the Enrollee.
• Enforce any violation of its sewer ordinances, service agreements, or other legally binding procedures; and
• Obtain easement accessibility agreements for locations requiring sewer system operations and maintenance, as applicable.”

COMPLIANCE
The above items are addressed in order below. Article V Illicit Discharges
The City’s Municipal Code Title VIII, Chapter 2, Article II, Section 2.15 and Article V, Chapter 2, Sections 5.11 through 5.28 and Section 5.10 address prohibited discharges to the City’s sanitary sewers.

Collaboration And Coordination With Storm Drain Agencies The City owns and operates most of the storm drains within its boundaries and has a de facto legal authority to ensure access to these storm drains in the event of a wastewater spill. The City has a maintenance agreement with Cal-Trans for that allows for access and entry to the Cal-Trans storm drains within the City’s service area.

Proper Design
The City’s Municipal Code, Title VIII, Chapter 2, Article XI - Design Standards, 11.01 & Title VIII, Chapter 2, Article II – General Provisions, Section 2.08 - Construction include the rules and regulations of the City with respect to the construction of sanitary sewerage facilities.

Access to Laterals
The City’s municipal Code Title VIII, chapter 2, article XIII ensures access to laterals for maintenance, inspection and repairs. have the authority to access the lateral for inspections and right of entry authority for necessary City activities. See Ordinance-100, Section 7.

LEGAL AUTHORITY
© 2025 Fischer Compliance, LLC. All rights reserved. Sewer System Management Plan licensed for City of Milpitas use only. Page 23 of 57 Enforce Violations
The City Municipal Code, Title VIII, Chapter 2 Article V, Section VIII -2-5.03 provides the City the legal authority to enforce violations of the Sanitary Code and other ordinances, rules or regulations of the City.

Easement Accessibility
All City sewer facilities are located within a public right of way or public service utility. The City requires that any newly constructed Sewer facility be located within a public utility easement or dedicated sewer easement.

EFFECTIVENESS
The City utilizes the following Key Performance Indicators for measuring eﬀectiveness of this Element:
• Are the City ordinances and standards adequate for fulﬁlling the Sewer System Management Plan legal requirements?
• Does the City have a process in place for periodic review and evaluation of ordinances? • Have there been instances when the code or ordinance did not address a need or circumstance?

IMPLEMENTATION PLAN/SCHEDULE
No. Plan Schedule Responsible Party
Dir Eng Man

3.1 Review Ordinance to conﬁrm all documents provide
necessary required legal authority.

Once per 6-year SSMP
Update Cycle X X

3.2 Confer with storm drain owners to ensure current
practices and contact information are up to date.

Annually X

3.3 Monitor and Document occasions when ordinance(s)
failed to address issues as intended.

Continuously X X X

RESILIENCE
Resilience is addressed for Element 3 by:
• Keeping abreast of industry trends and local ordinances that may aﬀect operations.

APPENDIX 3 INCLUSIONS:
• None

4. Operation and Maintenance Program
The Plan must include the items listed below that are appropriate and applicable to the Enrollee’s system.

4.1. Updated Map of Sewer System

WDR REQUIREMENTS
Att. D-4 (pg. D-4)
“An up-to-date map(s) of the sanitary sewer system, and procedures for maintaining and providing State and Regional Water Board staﬀ access to the map(s). The map(s) must show gravity line segments and manholes, pumping facilities, pressure pipes and valve s, and applicable stormwater conveyance facilities within the sewer system service area boundaries.”

COMPLIANCE
The sanitary sewer system service area lies entirely within the City of Milpitas. The City’s sewer system that includes gravity and pressure pipes, valves, manholes, pump stations, siphons and storm drain facilities.

The City maintains hardcopies of up-to-date sewer maps and atlases for its sewer and stormwater system.

The City utilizes a Geographical Information System (GIS) to map the sanitary sewer system. Should a map error or omission be discovered, staﬀ can redline the map with the correction using tablets and forward the proposed correction to a supervisor for review and veriﬁcation. It is then submitted to the GIS team for implementation.

Record drawings are submitted at the completion of new construction projects and forwarded to the GIS team to update the system maps including any new assets.

Upon request, the City will provide State and Regional Water Board staﬀ with a link to current system maps.

EFFECTIVENESS
The City utilizes the following Key Performance Indicators for measuring eﬀectiveness of this Element:
• Were all map updates completed in a timely manner?
• Are all staﬀ trained in the procedure for providing map update information? • Are newly installed sewer assets incorporated into the system maps? • Are there terrain features or assets that should be incorporated in future map updates (e.g. exposed pipe, siphons, ARVs, surface water, etc.)

IMPLEMENTATION PLAN/SCHEDULE
No Plan Schedule Responsible Party
Dir Eng Man

4.1.1 Review map update procedures with all aﬀected staﬀ. Annually X X

4.1.2 Review/ensure all newly installed facilities have been updated and included in the system maps
Annually X X

4.2. Preventive Operation and Maintenance Activities

WDR REQUIREMENTS
Att. D-4 (pgs. D-4/D-5)
“A scheduling system and a data collection system for preventive operation and maintenance activities conducted by staﬀ and contractors. The scheduling system must include:
• Inspection and maintenance activities.
• Higher-frequency inspections and maintenance of known problem areas, including areas with tree root problems.
• Regular visual and closed-circuit television (CCTV) inspections of manholes and sewer pipes.

The data collection system must document data from system inspection and maintenance activities, including system areas/components prone to root -intrusion potentially resulting in system backup and/or failure.”

COMPLIANCE
The purpose of a work order system is to program and track all required inspection and maintenance activities within the collection system to help proactively prevent blockages/operational problems and spills. The City utilizes the Lucity CMMS to provide a complete, accurate, and up-to-date inventory of sewer system assets. Lucity’s work order system allows staﬀ to put certain activities on a preventive schedule within the CMMS system which creates work orders on a prescribed interval. Work orders for othe r activities are generated by staﬀ on an as-needed basis.

In addition, the CMMS is used to plan and schedule higher-frequency inspection and maintenance activities such as Hot Spot cleaning and root control activities.

The City’s CMMS maintains historical data for all maintenance activities and provides a basis for critical analysis and data-driven planning and decision-making today and into the future. This allows for prioritizing and planning routine activities such as CCTV in spections, pipe cleaning and pump station maintenance activities.

EFFECTIVENESS
The City utilizes the following Key Performance Indicators for measuring eﬀectiveness of this Element:
• Is the City maintenance, operations, engineering work orders periodically audited for accuracy and completeness?
• Does the City monitor “open,” “overdue,” or “not yet completed” work orders to ensure completion of tasks?
• Are inspection and maintenance activities reducing the number and volume of spills? • Is maintenance work being completed as scheduled?

IMPLEMENTATION PLAN/SCHEDULE
No. Plan Schedule Responsible Party
Dir Eng Man

4.2.1 Monitor “Past Due” work orders to ensure critical work is being completed. Quarterly X

4.2.2 Review scheduled PMs to ensure the prescribed
schedule remains appropriate. Annually X

4.3. Training

WDR REQUIREMENTS
Att. D-4 (pg. D-5)
In-house and external training provided on a regular basis for sanitary sewer system operations and maintenance staﬀ and contractors. The training must cover:
• The requirements of this General Order.
• The Enrollee’s Spill Emergency Response Plan procedures and practice drills. • Skilled estimation of spill volume for ﬁeld operators; and • Electronic CIWQS reporting procedures for staﬀ submitting data.

COMPLIANCE
The City invests signiﬁcant resources to staﬀ training. No issues have occurred that are attributable to a lack of suﬃcient training. All training and certiﬁcation requirements for proper operation & maintenance, timely and eﬀective emergency response, and s afe practices are met and documented. For contractors’ staﬀ, training requirements are spelled out in the contracts.

The City’s training program covers several areas involving or associated with wastewater collection systems and serves to develop and maintain highly qualiﬁed, knowledgeable, and capable staﬀ. This training is provided through a variety of modes (self-study, seminars, conferences, in-house on-the-job training, etc.) and begins from the ﬁrst day on the job and continues regularly thereafter. Sanitary Division personnel receive training both in -house and through CWEA. The City’s utility maintenance crew me mbers attend sanitary sewer maintenance training on a regular basis. This training includes topics such as equipment operation and repair, spill volume identiﬁcation, and SERP and SSMP review.

Staﬀ involved in responding to customer service calls, including sewage spills, will receive annual training on the City’s Spill Emergency Response Plan. This training is part classroom and part hands-on exercises and drills for responding to spill events and includes containment, restoring ﬂow, spill volume estimation, spill volume recovered estimation, and spill start ti me estimation, clean up and completing the spill event data collection forms for entry into CIWQS.

Staﬀ designated as Data Submitters are trained on the City’s WDR compliant procedures for reporting spills from receipt of call to draft report submittals and certiﬁcation.

The City has developed spill response procedures that Contract Service personnel who perform work for the City are required to:
• Immediately notify the City of any sewage spill they encounter. • Make attempts to contain the spill
• Cordon oﬀ the area to keep the public safe
• Remain onsite until the City staﬀ arrives and relieves them.

This language is included in service agreements and discussed during pre-job meetings.

EFFECTIVENESS
The City utilizes the following Key Performance Indicators for measuring eﬀectiveness of this Element:
• Has all training been completed as scheduled?
• Have records of training and attendance been documented and maintained? • Have all staﬀ demonstrated ability and knowledge after each training event? • Have contractors received, at a minimum, direction for reporting and responding to spills.

IMPLEMENTATION PLAN/SCHEDULE
No. Plan Schedule Responsible Party
Dir Eng Sup

4.3.1 Review training documentation to ensure all staﬀ have received required training Quarterly X X

4.3.2 Review agreements with contractors and/or Pre-Job meeting minutes to ensure contract personnel have
received instruction for responding to sewage spills
Each Contract X X

4.4. Equipment Inventory

WDR REQUIREMENTS
Att. D-4 (pg. D-5)
“An inventory of sewer system equipment, including the identiﬁcation of critical replacement and spare parts.”

COMPLIANCE
The City maintains a host of equipment for both routine inspection, maintenance and for contingency or emergency operations to minimize equipment/facility downtime in the event of an unplanned failure.

Typical response items are maintained in the City’s Emergency Response Trailer.

Critical replacement parts are identiﬁed, for both the gravity system and for lift stations, and an inventory is maintained. Examples of inventory items are pumps, motors, pipes and vehicles. All lift stations have redundancy, including bypass manifolds on force mains that allow for bypassing the lift station for as long as needed to rectify a problem.

The City can obtain equipment and material from the vendors, contractors, and other agencies in the event of a large-scale failure.

EFFECTIVENESS
The City utilizes the following Key Performance Indicators for measuring eﬀectiveness of this Element:
• Have inventory lists been audited as scheduled?
• Have any inventory deﬁciencies or omissions been discovered and rectiﬁed? • Has the City experienced any equipment failure that inhibited a spill response?

IMPLEMENTATION PLAN/SCHEDULE
No. Plan Schedule Responsible Party
Dir Eng Man

4.4.1 Audit inventory lists to ensure stock is adequate Annually X X

4.4.2 Check with vendors to ensure critical parts lead
times are as expected. Annually X X

4.2.3 Ensure contracts with emergency support
services are current Annually X

RESILIENCE
Resilience is addressed for Element 4 by:
• Developing an SOP for updating maps when errors are discovered. • Developing and using forms (paper or electronic) for data collection to help ensure all pertinent information is consistently collected.
• Periodically evaluating inspection cycle intervals to help ensure they are optimized. • Requiring staﬀ to demonstrate ability and/or knowledge for all training activities. • Monitoring equipment and critical spare parts usage for and trends. • Performing periodic audits of the Vehicle and Equipment Inventory List.

OPERATIONS AND MAINTENANCE PROGRAM
© 2025 Fischer Compliance, LLC. All rights reserved. Sewer System Management Plan licensed for City of Milpitas use only. Page 30 of 57 APPENDIX 4 INCLUSIONS:
• 4.1. Vehicles and Equipment List
• 4.2. Training Plans/Schedules

OPERATIONS AND MAINTENANCE PROGRAM
© 2025 Fischer Compliance, LLC. All rights reserved. Sewer System Management Plan licensed for City of Milpitas use only. Page 31 of 57 Speciﬁcations 5.19 - Operations and Maintenance

WDR REQUIREMENTS
Spec. 5.19 (pg. 27)
“To prevent discharges to the environment, the Enrollee shall maintain in good working order, and operate as designed, any facility or treatment and control system designed to contain sewage and convey it to a treatment plant.”

COMPLIANCE
The City has a very eﬀective preventive maintenance program that maintains the integrity of the sewer system and ensures continuous and safe conveyance of wastewater, resulting in a reduced frequency, number, and volume of sanitary sewer spills. The City’s preventive maintenance program has evolved into a very proactive program that is designed to locate, identify, and address problems that may exist in the collection system prior to the occurrence of a failure in the system.

The City’s preventive maintenance activities include the following:
• Condition assessment of gravity mains utilizing CCTV equipment. • Regular inspections of pump stations.
• Service lateral inspections upon request of property owner. • Scheduled weekly cleaning for high problem areas or areas with frequent stoppages. Other areas, with more moderate frequency problems, receive cleaning on a monthly or 6 -month schedule. And low frequency areas, the remainder of the City receive sewer line cleaning on a 36-month basis. • Weekly cleaning of one problem siphon and quarterly cleaning of all other siphons. • Proactively repair or replace problem areas with structural deﬁciencies in the City’s CIP (see Element8.3 for additional discussion).
• Root control in areas that are known to have recurring SSOs or premature structural damage due to root intrusion. Root foaming is performed by the newly equipped hydro-vac truck. • Investigate and resolve customer complaints upon notiﬁcation, 24 hours a day. • Periodic cleaning of force mains to maintain pump station eﬃciency and prevent backups. • Keep maintenance activity records to support appropriate analysis and reporting. • Pipe performance monitoring using SmartCover level monitors. • The City is currently in the process of updating all of its standard details and speciﬁcations. This update is expected to be completed by the end of 2026 . Manholes will continue to be inspected by CCT V crews during the course of their daily duties.

5. Design and Performance Provisions

5.1. Updated Design Criteria/Construction Standards/Speciﬁcations

WDR REQUIREMENTS
Att. D-1.1 (pg. D-5)
“Updated design criteria, and construction standards and speciﬁcations, for the construction, installation, repair, and rehabilitation of existing and proposed system infrastructure components, including but not limited to pipelines, pump stations, and other system appurtenances. If existing design criteria and construction standards are deﬁcient to address the necessary component-speciﬁc hydraulic capacity as speciﬁed in section 8 (System Evaluation, Capacity Assurance and Capital Improvements) of this Attachment, the procedures must include component-speciﬁc evaluation of the design criteria.”

COMPLIANCE
The City has standards for design installation, rehabilitation and repair, inspection, and testing of new and rehabilitated facilities in the following documents.
• Standard Speciﬁcations for Sanitary Sewers provide design and construction standards for the installation of sewer facilities and the repair or rehabilitation of existing facilities. • Standard Details & Speciﬁcations , Sanitary Sewer (Series 600) provides detail drawings Lateral, cleanouts, and connections to the City gravity main.

EFFECTIVENESS
The City utilizes the following Key Performance Indicators for measuring eﬀectiveness of this Element:
• Is plan checking QA/QC processes helping to ensure adherence to the standards?

IMPLEMENTATION PLAN/SCHEDULE
No. Plan Schedule Responsible Party
Dir Eng Man

5.1.1 Ensure all project plans are approved in accordance with the City’s Standard Speciﬁcations and Details. Each Project X

5.1.2 Verify design standards and hydraulic model
previously completed are adequate and consistent
with current standards of practice.
2025 X

5.2. Procedures and Standards

WDR REQUIREMENTS
Att. D-1.1 (pg. D-5)
“Procedures, and standards for the inspection and testing of newly constructed, newly installed, repaired, and rehabilitated system pipelines, pumps, and other equipment and appurtenances.”

COMPLIANCE
The City has standards inspection and testing of new and rehabilitated facilities in the following document.

Standard Speciﬁcations for Sanitary Sewers , S3.11, provides standards for the inspection and testing of newly installed sewer facilities and the repair or rehabilitation of existing facilities. S3.11. “Testing of Sanitary Sewer Lines: All newly constructed sewer mains and laterals adjacent thereto shall be tested for leakage as described in the Engineering Guidelines for sewers. The Contractor shall furnish all materials, equipment, tools and labor necessary to make leakage tests and to perform any work incidental thereto.

Leakage test shall be performed on the entire sanitary sewer installed, with the length of each test section limited to the pipe segment between adjacent manholes.

The Contractor shall follow the detailed speciﬁcations and shall conform with the intent thereof to secure the highest quality of workmanship in the laying of all sewer lines under the contract. All jointing of pipe shall be subject to rigorous inspection by the City Engineer or his representative.

When a sewer is constructed as part of the improvements of a street or road testing of the lines shall be done at such time that the subbase has been compacted and accepted by the City Engineer.

The Low Pressure Air Test shall be the accepted method used to determine watertight integrity of all sanitary sewers. The Hydrostatic Leakage Test method will only be used when speciﬁcally authorized by the City Engineer.

In addition to the Low Pressure Air Test, ABS sewer lines shall also be tested for deﬂection by passing a rigid mandrel through them.

The Low Pressure Air Test shall be done in the presence of the City’s Inspector and in accordance with the following procedure:
(1) Plug and securely brace the ends of each reach of pipeline to be tested. 250 XXI. A. Standard Speciﬁcations for Sanitary Sewers
(2) Pressurize scaled line until internal air pressure reaches 4.0 pounds per square inch gauge. When prevailing water is above the sewer line being tested, increase all pressures used in this test by 0.43 psi for each foot the water is above the ﬂow line of the pipe. (3) Allow at least two minutes for the air pressure to stabilize, adding additional air as required to maintain 4.0 psig.
(4) The Inspector shall observe the pressure gauge attached to the pipeline and when the pressure decreases to 3.5 psig, a timing period shall be started. The timing period shall be stopped when the pressure has decreased to 2.5 psig or until the portion of line being tested is found to be “Acceptable.”

DESIGN AND PERFORMANCE PROVISIONS
© 2025 Fischer Compliance, LLC. All rights reserved. Sewer System Management Plan licensed for City of Milpitas use only. Page 34 of 57 (5) The portion of line being tested shall be termed “Acceptable” if the time required in minutes for the pressure to decrease from 3.5 psig to 2.5 psig is not less than the time shown for the given pipe diameters in the following table:

Pipe Diam. In Inches Minutes
4 2.0
6 3.0
8 4.0
10 5.0
12 6.0
15 7.5
18 8.5
21 10.0
24 11.5
27 13.0
30 14.5
33 16.0
36 17.5
39 19.0
42 21.5
(6) If adjoining laterals are tested concurrently with the sanitary sewer main, one -half of the above listed respective time for the largest lateral tested shall be added to the respective required time listed for the sanitary sewer main.
(7) If the line fails to meet the above requirements, the source of the leak shall be located and corrected to the satisfaction of the Inspector. After the leak or leaks are corrected and the trench is rebackﬁlled and compacted, the section of the line shall then be retested to compliance.

Because of the inherent danger involved in air testing, extreme care shall be exercised in placing and bracing the pipe plugs, and no one shall be allowed in the manhole during testing. Caution shall also be taken to avoid over-pressurizing and damaging an otherwise acceptable line.

When Hydrostatic Leakage Test, in lieu of the air test, is authorized by the City Engineer, it shall be done in the presence of the City’s Inspector and in accordance with the following procedure:

Each section of the sewer main to be tested shall be sealed by inserting stoppers in the lower end of the sewer segment, the inlet pipe of the upper manhole and any side sewers. The pipe and upstream manhole shall be ﬁlled with water to a point not less that four (4) feet above the invert of the pipe or prevailing ground water elevation, whichever is higher. The line shall e tested for at least two (2) hours, maintaining the head speciﬁed above by measured additions of water. The sum of the additions of water added shall be the amount of leakage for the test period.

When the amount of leakage, in a section, exceeds the allowable, the Contractor shall locate the source of the leak or leaks and correct such leaks to the satisfaction of the inspector. After the leak or leaks are corrected and the trench backﬁlled and co mpacted, the section of the line shall ten be retested to compliance.

DESIGN AND PERFORMANCE PROVISIONS
© 2025 Fischer Compliance, LLC. All rights reserved. Sewer System Management Plan licensed for City of Milpitas use only. Page 35 of 57 The maximum leakage allowed shall be 200 gallons per inch of pipe diameter per mile per 24 hours (0.0263 gallons per minute per inch of pipe diameter per 1000 feet of pipe).

PVC and ABS pipe shall be tested for deﬂection in the presence of the City’s Inspector and in accordance with the following:
1) Immediately after ﬂushing, a solid mandrel undersized 5% shall be pulled through all lines, excluding laterals.
2) Any section of pipe through which the mandrel cannot be pulled will be considered defective and shall be placed by the Contractor at his expense. The replaced section of line shall be rebackﬁlled and compacted, this work meeting City speciﬁcations. The section shall then be retested to compliance.”

EFFECTIVENESS
The City utilizes the following Key Performance Indicators for measuring eﬀectiveness of this Element:
• Were any design or installation deﬁciencies found during warranty inspections? • Are deviations from standard procedures and/or specs, testing, etc., justiﬁed and documented? • Does the City stay abreast of industry design standards and technical advances in the industry?

IMPLEMENTATION PLAN/SCHEDULE
No. Plan Schedule Responsible Party
Dir Eng Man

5.2.1 Verify inspection procedures are adequate and
consistent with current standards of practice. 2017 (10-year cycle) X X

5.2.2 Verify design standards and hydraulic model
previously completed are adequate and
consistent with current standards of practice.
2017 (10-year cycle)
X X

RESILIENCE
Resilience is addressed for Element 5 by:
• Staying abreast of industry trends and standards.
• Performing warranty inspections of newly installed or repaired assets to evaluate design and installation practices.
• Evaluating as-built changes for trends and areas for design and performance improvements.

APPENDIX 5 INCLUSIONS:
• Appendix 5.1. Milpitas City Standard Speciﬁcations for Sanitary Sewers • Appendix 5.2. Milpitas City Standard Drawings for Sanitary Sewer Construction

6. Spill Emergency Response Plan

WDR REQUIREMENTS
Att. D-1.1 (pg. D-6)
“The Plan must include an up-to -date Spill Emergency Response Plan to ensure prompt detection and response to spills to reduce spill volumes and collect information for prevention of future spills. The Spill Emergency Response Plan must include procedures to:
• Notify primary responders, appropriate local oﬃcials, and appropriate regulatory agencies of a spill in a timely manner;
• Notify other potentially aﬀected entities (for example, health agencies, water suppliers, etc.) of spills that potentially aﬀect public health or reach waters of the State; • Comply with the notiﬁcation, monitoring and reporting requirements of this General Order, State law and regulations, and applicable Regional Water Board Orders; • Ensure that appropriate staﬀ and contractors implement the Spill Emergency Response Plan and are appropriately trained;
• Address emergency system operations, traﬃc control and other necessary response activities; • Contain a spill and prevent/minimize discharge to waters of the State or any drainage conveyance system;
• Minimize and remediate public health impacts and adverse impacts on beneﬁcial uses of waters of the State;
• Remove sewage from the drainage conveyance system;
• Clean the spill area and drainage conveyance system in a manner that does not inadvertently impact beneﬁcial uses in the receiving waters;
• Implement technologies, practices, equipment, and interagency coordination to expedite spill containment and recovery;
• Implement pre-planned coordination and collaboration with storm drain agencies and other utility agencies/departments prior, during, and after a spill event; • Conduct post-spill assessments of spill response activities; • Document and report spill events as required in this General Order; and • Annually, review and assess eﬀectiveness of the Spill Emergency Response Plan, and update the Plan as needed.”

COMPLIANCE
The City’s Spill Emergency Response Plan (SERP) is a stand -alone document that contains all the key elements necessary for an appropriate Spill response: notiﬁcation procedures, emergency incident response, impact mitigation, and reporting. The current plan, prepared by Fischer Compliance, LLC, meets the requirements of the State Water Resources Control Board’s reissued Waste Discharge Requirements (Order WQ-2022-0103-DWQ), which became eﬀective on June 5, 2023. Initial training has been provided to aﬀected staﬀ and refresher training is con ducted annually. A copy of th e SERP is available on the City’s oﬃces, during businesses hours.

EFFECTIVENESS
The City utilizes the following Key Performance Indicators for measuring eﬀectiveness of this Element:
• Have staﬀ spill response eﬀorts helped to prevent the discharge of sewage to surface waters? • Do post-spill assessments indicate staﬀ are following the procedures outlined in the SERP? • Is SERP training eﬀective and trainees demonstrating adequate knowledge and abilities?

IMPLEMENTATION PLAN/SCHEDULE
No. Plan Schedule Responsible Party
Dir Eng Man

6.1 Perform SERP training including practice drills. Annually X

6.2 Review Post Spill Assessments to ensure adherence and to indemnify any trends that should be addressed Annually X

RESILIENCE
Resilience is addressed for Element 6 by:
• Multiple staﬀ are trained to respond to spill events. • Post-spill assessments are conducted to evaluate staﬀ adherence to the SERP and to identify areas for improvement.
• Data collection forms direct staﬀ to collect all the required data to be submitted to CIWQS and are designed as a guide to a proper spill event response.
• The City employees several diﬀerent spill volume estimation methods to account for diﬀerent circumstances.

APPENDIX 6 INCLUSIONS:
• 6.1. Spill Emergency Response Plan (SERP)

7. Sewer Pipe Blockage Program

WDR REQUIREMENTS
Att. D-7 (pg. D-7)
“The Sewer System Management Plan must include procedures for the evaluation of the Enrollee’s service area to determine whether a sewer pipe blockage control program is needed to control fats, oils, grease, rags and debris. If the Enrollee determines that a program is not needed, the Enrollee shall provide justiﬁcation in its Plan for why a program is not needed. The procedures must include, at minimum:
• An implementation plan and schedule for a public education and outreach program that promotes proper disposal of pipe-blocking substances;
• A plan and schedule for the disposal of pipe-blocking substances generated within the sanitary sewer system service area. This may include a list of acceptable disposal facilities and/or additional facilities needed to adequately dispose of substances gene rated within a sanitary sewer system service area;
• The legal authority to prohibit discharges to the system and identify measures to prevent spills and blockages.
• Requirements to install grease removal devices (such as traps or interceptors), design standards for the removal devices, maintenance requirements, best management practices requirements, recordkeeping and reporting requirements; • Authority to inspect grease producing facilities, enforcement authorities, and whether the Enrollee has suﬃcient staﬀ to inspect and enforce the fats, oils, and grease ordinance; • An identiﬁcation of sanitary sewer system sections subject to fats, oils, and grease blockages and establishment of a cleaning schedule for each section; and • Implementation of source control measures for all sources of fats, oils, and grease reaching the sanitary sewer system for each section identiﬁed above.”

COMPLIANCE
The requirements listed above are addressed in order below:

Public Outreach
The City periodically provides outreach to the community through a variety of methods, including educational information via the City's website and Social Media. Regional eﬀorts result in articles in the area newspapers and radio spots to promote proper disposal of FOG. The City provides outreach to private sewer systems on proper operation and maintenance to prevent spills.

The City’s Department of Public Works extends outreach to the City’s restaurants, the largest contributors of FOG. This includes Grease Management Best Management Practices such as: Grease Trap Maintenance, Grease Interceptor Maintenance, Maintenance Documentation, Power-Operated Grease Removal Devices, Chemicals, Enzymes and Bacteria, Vapor/Ventilation Hood Cleaning, and a poster Managing Fats, Oils, & Grease, “It’s Easier Than You Think”. Additionally, outreach material is available at the Building Department to plumbers and contractors to assist in the prevention of spills.

SEWER PIPE BLOCKAGE PROGRAM
© 2025 Fischer Compliance, LLC. All rights reserved. Sewer System Management Plan licensed for City of Milpitas use only. Page 39 of 57 FOG Disposal
Fats, oils, and grease from non-residential sites can be disposed of:
• Hauled by tallow companies;
• Hauled by other licensed companies (possible component for bio-diesel fuel); • RWF is investigating the conversion of an existing facility to accept FOG. This may be a possible future option.

This debris is taken to Green Waste Zanker Resource Recovery Facility.

Prohibited Discharges
The Milpitas Municipal Code, Title VIII, Chapter 2 governs dischargers’ use of grease traps and regulates the discharge of grease and other pipe-blocking substances to the sanitary sewer. • Section 5.16 prohibits grease, oils, and fats from discharging into the sanitary sewer. • Section 5.17 prohibits solid or viscous matter from discharging to the sanitary sewer. • Section 5.27 prohibits the garbage and other solid matter from discharging to the sanitary sewer.

Grease Control Devices Required
Building Department staﬀ determines the requirements for grease removal devices (GRD). The size and type of GRD required is determined based upon the facility’s potential for discharging grease in the wastewater. The Milpitas Municipal Code, Title VIII, Chapter 2 governs the use of grease removal devices, The City Building Department requires food service facilities to obtain approval for the grease interceptor size prior to issuance of building permits.
• Section 5.29 provides the authority to require grease removal devices.

Authority to Inspect
The Milpitas Municipal Code, Title VIII, Chapter 2, governs right of access for investigative purposes. • Section 5.48 provides the authority for duly authorized employees to have right of access for inspection purposes.

The FOG Program staﬀ inspect all restaurants and other food service facilities. Their initial inspection includes determining if:
• The facility generates grease
• There is a Grease Removal Device (GRD)in place
• GRD cleaning records exist and are up to date
• Best Management Practices (BMPs) are being implemented Sanitary Sewer System FOG Blockages
The Public Works Maintenance Division follows a preventative maintenance schedule for areas of the sewer systems that have experienced problems with FOG or other causes of blockages. During CCTV inspection, instances of large grease buildup in various locations throughout the wastewater collection system have been identiﬁed. Locations identiﬁed as having grease buildup are cleaned to prevent blockages from moving further downstream. Preventative maintenance consists of jetting sewers that accumulate sedim ent or grease on a weekly and quarterly basis. Between frequent ﬂushing of the lines in targeted areas and the FOG Inspectors conducting inspections, including follow up visits, when necessary, the City implements eﬀective source control measures to minimize blockages, and subsequently reduce the quantity of spills as is expressed in our spill history.

SEWER PIPE BLOCKAGE PROGRAM
© 2025 Fischer Compliance, LLC. All rights reserved. Sewer System Management Plan licensed for City of Milpitas use only. Page 40 of 57 Implementation of Source Control Measures
Staﬀ may discuss Best Management Practices (BMPs) to restaurant representatives during the plan check, including kitchen practices to minimize the discharge of grease into the sewer system, maintenance tips for grease traps and interceptors, and record keeping requirements. The City Building Inspectors and FOG Program Inspectors verify the installation and connections of the GRD.

The plan review process also involves a GRD certiﬁcation. This certiﬁcation involves the restaurant representative signing an acknowledgement of GRD requirements. Some of the requirements acknowledged in the certiﬁcation are the minimum acceptable cleaning frequency for the type of GRD being required, an onsite maintenance schedule, cleaning instructions, and cleaning records and receipts Facilities generating grease are re -inspected periodically (every one to three years), depending on the number of areas of concern observed during the inspection. BMPs are distributed to restaurant operators during the inspections, as appropriate, including the kitchen practices to minimize the discharge of grease into the sewer system, maintenance tips for grease trap and interceptors, and record keeping requirements.

Additionally, County Health conducts regular inspections of food facilities, which are he lpful to ensure continuing compliance with Program requirements.

To assist businesses to comply, the FOG Inspectors provide various brochures and booklets such as “Good Practices to Protect Our Creeks and Bay – Guidelines for Restaurants, Grocery Stores, Cafeterias, Bakeries and Delicatessens,” posters on “Good Cleaning Practices”. Some of these items are available in multiple languages for those individuals where English is not the primary language. The FOG Program staﬀ believe that education is the key to compliance and works with the businesses toward this end. If a higher level of enforcement is necessary, the Milpitas Municipal Code authorizes the City to terminate or revoke permits, impose civil penalties, issue citations, and take action by the City Attorney. Enforcement actions are taken against any restaurant that does not clean their GRD at the minimum set frequency (monthly for grease traps and quarterly for grease interceptors) or keep 3 years of cleaning records. The Milpitas Municipal Code, Title VIII, Chapter 2, Section 5.03 and Section 5.50 provide enforcement authority.

EFFECTIVENESS
The City utilizes the following Key Performance Indicators for measuring eﬀectiveness of this Element:
• Have there been any blockages/spills from any identiﬁed problem area? • Is the City receiving feedback on public outreach eﬀorts? • Is the debris and other sewage solids collected during cleaning activities being disposed of appropriately?
• Have there been spills due to excessive fats, oil, grease, roots, or non-dispersible wipes discovered in the sewer system during the audit period?
• Are there repeat oﬀenders among FSEs?
• Are enforcement trends decreasing?
• Are Source Control and Collection staﬀ included in the plan check process?

IMPLEMENTATION PLAN/SCHEDULE
No Plan Schedule Responsible Party
Dir Eng Man

7.1 Review/evaluate enforcement and inspection ﬁndings and implement changes as necessary. Annually X X

7.2 Review spill rates and causes and make changes to
maintenance programs, as necessary. Annually X X

RESILIENCE
Resilience is addressed for Element 7 by:
• Inspection of select assets directly downstream of grease producing businesses to ensure source control is eﬀective.
• Residential FOG outreach and education program.
• Performance of regular assessments of system assets to monitor performance. • QA/QA process for evaluating pipe cleaning eﬀectiveness. • Daily disposal of pipe blocking materials retrieved during maintenance activities.

APPENDIX 7 INCLUSIONS
• 7.1 Sewer Operation and Maintenance Ordinance

8. System Evaluation, Capacity Assurance, Capital Improvements

WDR REQUIREMENTS
Att. D-8 (pgs. D-7/D-8)
“The Plan must include procedures and activities for:
• Routine evaluation and assessment of system conditions. • Capacity assessment and design criteria.
• Prioritization of corrective actions; and
• A capital improvement plan.”

8.1. System Evaluation and Condition Assessment

WDR REQUIREMENTS
Att. D-8 (pgs. D-7/D-8)
“The Agency SSMP must include procedures to:
• Evaluate the sanitary sewer system assets utilizing the best practices and technologies available.
• Identify and justify the amount (percentage) of its system for its condition to be assessed each year.
• Prioritize the condition assessment of system areas that:
• Hold a high level of environmental consequences if vulnerable to collapse, failure, blockage, capacity issues, or other system deﬁciencies.
• Are located in or within the vicinity of surface waters, steep terrain, high groundwater elevations, and environmentally sensitive areas.
• Are within the vicinity of a receiving water with a bacterial -related impairment on the most current Clean Water Act section 303(d) List.
• Assess the system conditions using visual observations, video surveillance and/or other comparable system inspection methods.
• Utilize observations/evidence of system conditions that may contribute to exiting of sewage from the system which can reasonably be expected to discharge into a water of the State. • Maintain documents and recordkeeping of system evaluation and condition assessment inspections and activities; and
• Identify system assets vulnerable to direct and indirect impacts of climate change, including but not limited to: (a) sea level rise, (b) ﬂooding and/or erosion due to increased storm volumes, frequency, and/or intensity; (c) wildﬁres; and (4) increased power disruptions.”

COMPLIANCE
The above requirements are addressed in order below:

Evaluate the Sewer System
The assessment of a collection system involves every component of the City’s collection system, including pipelines, manholes, lower laterals and pump stations. It is of key importance to regularly perform condition assessments to initially establish a condition baseline and have the ability to monitor condition changes over time. CCTV inspections of gravity mains are performed continuously, manholes are visually inspected, employing a top-down method, ﬂows are monitored in various portions of the system using level sensing equipment (Smart Covers), pump stations are visually inspected regularly.

The City also utilizes GIS and Lucity CMMS to maintain an up -to-date inventory of location, age, size, condition, and other details of system components (i.e., pipe, manholes, pump stations). This inventory is maintained up-to-date and allows the City to evaluate collection system assets on an on-going basis.

Justify Condition Assessment Intervals
The City endeavors to inspect the gravity mains on a 5 -year interval and clean gravity mains on a 3 -year interval, which means each line will be cleaned at least once between CCTV inspections. In addition, the City currently has only a small backlog of repairs, which indicates problems are being found before pipe performance in signiﬁcantly impacted. Known problem areas are on higher frequency maintenance intervals, or those with a higher risk factor are being monitored by SmartCover level sensing devices. The City’s gravity main spill rate is low. These eﬀorts help ensure pipes are performing as intended and puts the City in position to properly manage the collection system and maintain a low spill rate. T he City continues to evaluate system performance to optimize maintenance practices and inspection intervals, with the goal of reducing the likelihood of a spill and determining the optimal inspection interval(s).

Currently, the City takes a reactive approach to the maintenance of private sewer laterals, responding to issues such as blockages or overﬂows as they arise. Recognizing the importance of proactive asset management and the role of lateral maintenance in p reventing sanitary sewer spills, the City is actively developing a formal proactive maintenance plan. This plan will evaluate best practices, prioritize risk-based inspection and cleaning schedules, and identify the necessary staﬃng, equipment, and funding required for eﬀective implementation.

The proactive maintenance strategy will align with regulatory expectations related to the reduction of inﬁltration and inﬂow (I&I), the mitigation of SSO risks, and the overall improvement of system reliability and performance. This eﬀort supports the C ity’s commitment to protecting public health and the environment, in accordance with state and federal regulatory standards.

It is anticipated that the evaluation and development of the proactive lateral maintenance program will be completed by the end of 2026. Once ﬁnalized, the City will begin phased implementation, with updates to its Sewer System Management Plan (SSMP) and operational procedures to reﬂect the new approach.

Pump stations are routinely inspected, and ﬁndings are documented . This enables City staﬀ to monitor trends and evaluate performance and monitor expected lifecycle status.

Assess the System Conditions
The City’s inspection activities include the following:
• Routine inspections of the collection system facilities, including siphons, frequently clogged locations, and pump stations.
• Inspections based on customer complaints and/or spills. • Periodic ﬂow monitoring for capacity analysis.

SYSTEM EVALUATION, CAPACITY ASSURANCE, CAPITAL IMPROVEMENTS © 2025 Fischer Compliance, LLC. All rights reserved. Sewer System Management Plan licensed for City of Milpitas use only. Page 44 of 57 • Condition assessments based on pipe age.
• Regular pump station inspections
• Maintenance of records to support appropriate analysis and reporting. • CCTV on program basis to conduct asset management assessment and rating/ranking pipes according to PACP and investigate complaints.
• Focus on risk management, including higher risk areas in close proximity to waterways, ﬂows, and impact to public health and the environment.

Exiting of Sewage
The City is not aware of any exiting of sewage from the collection system and continuously inspects and evaluates for defects such as cracks, separated joints, and inﬁltration. Signiﬁcant ﬁndings will be addressed in a timely manner.

Documents and Recordkeeping
Inspection and assessment activities are documented in the City’s CMMS. All collected data is used for the purpose of documenting maintenance and inspection eﬀorts, evaluating system performance, and making maintenance and corrective action decisions today and into the future.

Climate Change Impacts
At present, the City has not identiﬁed any direct impacts from climate change on its sanitary sewer collection system. The system continues to operate eﬀectively under current environmental and weather conditions. However, the City recognizes the increasing importance of assessing and planning for potential future impacts associated with climate change, such as more frequent and intense storm events, sea level rise, increased groundwater inﬁltration, and prolonged drought conditions that could aﬀect sys tem performance, operation, and maintenance.

To ensure continued regulatory compliance and infrastructure resilience, the City is committed to evaluating potential climate change impacts on its collection system on a recurring basis. Speciﬁcally, the City will assess climate-related risks and vulnerabilities at least once every three years as part of its Sewer System Management Plan (SSMP) Audit process. This assessment will include a review of recent weather patterns, projected climate models, and local or regional data to determine whether updates to operational practices, maintenance strategies, or capital improvement planning are warranted.

If and when climate change impacts become evident or anticipated, the City will incorporate appropriate adaptive measures into its SSMP, emergency response planning, and long-term asset management strategy to mitigate risks and protect public health and environmental quality.

EFFECTIVENESS
The City utilizes the following Key Performance Indicators for measuring eﬀectiveness of this Element:
• Has the City maintained its schedule for and is data being reviewed in a timely manner? o CCTV Gravity Mains
o Laterals
o Manholes
o Pump Stations
• Are inspection eﬀorts discovering deﬁciencies in a timely manner? • Are maintenance and inspection activities being properly documented?

IMPLEMENTATION PLAN/SCHEDULE
No. Plan Schedule Responsible Party
Dir Eng Man

8.1.1 Review/evaluate enforcement and inspection ﬁndings and implement changes as necessary. Annually X X

8.1.2 Review spill rates and causes and make changes to maintenance programs, as necessary. Annually X X

8.1.3 Hold meeting to discuss any issues that may result from climate changes Annually X X X

8.2. Capacity Assessment and Design Criteria

WDR REQUIREMENTS
Att. D-8 (pgs. D-7/D-8)
“The Plan must include procedures to identify system components that are experiencing or contributing to spills caused by hydraulic deﬁciency and/or limited capacity, including procedures to identify the appropriate hydraulic capacity of key system elements for:
• Dry-weather peak ﬂow conditions that cause or contributes to spill events; • The appropriate design storm(s) or wet weather events that causes or contributes to spill events.
• The capacity of key system components; and
• Identify the major sources that contribute to the peak ﬂows associated with sewer spills.

The capacity assessment must consider:
• Data from existing system condition assessments, system inspections, system audits, spill history, and other available information.
• Capacity of ﬂood-prone systems subject to increased inﬁltration and inﬂow, under normal local and regional storm conditions.
• Capacity of systems subject to increased inﬁltration and inﬂow due to larger and/or higher - intensity storm events as a result of climate change.
• Increases of erosive forces in canyons and streams near underground and above -ground system components due to larger and/or higher-intensity storm events; • Capacity of major system elements to accommodate dry weather peak ﬂow conditions, and updated design storm and wet weather events; and
• Necessary redundancy in pumping and storage capacities.”

COMPLIANCE
Capacity assessment evaluates if adequate capacity exists in all portions of the collection system and that downstream portions that will receive wastewater from new connections can handle additional ﬂow.

Industry standard practice is to update or develop a new Sewer Master Plan every ten years. The 2020 Sewer Master Plan Update incorporates a sound methodology to provide wastewater volume estimates based on current (2020) and future (2040) planning horizons.

The 2020 Sewer Master Plan identiﬁes improvements to the sanitary sewer system resulting from identiﬁed capacity deﬁciencies based upon land use, including the Metro Speciﬁc Plan, Gateway-Main Street Speciﬁc Plan, and Opportunity Areas. There are several “Opportunity Areas” identiﬁed throughout the City as areas of potential growth and/or redevelopment.

The methodology starts with land use zoning for each parcel and develops average base wastewater generation ﬂows for each type of zoning. Wet -weather monitoring provided data for groundwater inﬁltration and rainfall -dependent inﬁltration/inﬂow estimate s. The total wastewater discharge is calculated to be the sum of the base wastewater ﬂow multiplied by a peaking factor, plus groundwater inﬁltration, plus rainfall-dependent inﬁltration/inﬂow. In addition, multiple scenarios were developed using assumed land use changes over time.

Design criteria have been established in the City’s 2020 Sewer Master Plan to determine estimated wastewater volume. These criteria include base wastewater ﬂow generation factors, peak factors, groundwater inﬁltration, and rainfall dependent inﬂow.

SYSTEM EVALUATION, CAPACITY ASSURANCE, CAPITAL IMPROVEMENTS © 2025 Fischer Compliance, LLC. All rights reserved. Sewer System Management Plan licensed for City of Milpitas use only. Page 47 of 57 There were no major capacity deﬁciencies identiﬁed as part of this analysis. There were six pipeline segments with a recorded surcharge state of “2” indicating that they are under capacity. Of these six segments, ﬁve of them have freeboard values greater than ﬁve feet, so they do not fulﬁll the criteria for a deﬁciency and thus are not considered hydraulically deﬁcient. There were no additional capacity deﬁciencies identiﬁed under future conditions that were not seen under existing conditions.

EFFECTIVENESS
The City utilizes the following Key Performance Indicators for measuring eﬀectiveness of this Element:
• Number of capacity-related spills or surcharge condition during the audit period? • Has the system responded to rain events as indicated by the hydraulic model? • Has there been any changes to zoning designations (residential, commercial, industrial)?

IMPLEMENTATION PLAN/SCHEDULE
No Plan Schedule Responsible Party
Dir Eng Man

8.2.1 Monitor/Evaluate signiﬁcant rain
events to see if they exceed the
design storm in the hydraulic model.

Each signiﬁcant rain evet
X X

8.2.2 Identify and monitor ﬂood-prone
areas susceptible to erosion from rain
events
After each signiﬁcant rain event
X X

8.2.3 Monitor ﬂows in each basin and
update the hydraulic model
Per Engineering Department
schedule
X X

8.3. Prioritization of Corrective Action

WDR REQUIREMENTS
Att. D-8 (pgs. D-7/D-8)
“The ﬁndings of the condition assessments and capacity assessments must be used to prioritize corrective actions. Prioritization must consider the severity of the consequences of potential spills.”

COMPLIANCE
In 2020 the City completed a Sewer Utility Asset Renewal and Replacement Study (Brown and Caldwell, August 2020) as part of the 2020 Sewer Master Plan to assess the current condition of the City’s wastewater collection system. This study was conducted to assess the current condition of the City’s wastewater collection system. This includes CCTV inspection results, an assessment of the relative risk of failure of all pipe segments in the City, as well as lift station inspection and evaluation results. The purpose of this study is to provide the City with a set of priorities for asset renewal and replacement.

Assessment of the relative risk of failure of all pipe segments in the City, as well as lift stations was performed, and a Risk Exposure Score was developed for all gravity main pipes. The City utilizes this assessment to identify and prioritize sewer system improvements to address existing capacity issues and build capacity for future growth
The City utilizes the capacity and condition assessments to prioritize sewer system maintenance and capital improvements with areas at highest risk of discharge to waters of the State in case of blockage or failure prioritized for higher frequency maintenance, corrective repairs, and capacity improvement.

EFFECTIVENESS
The City utilizes the following Key Performance Indicators for measuring eﬀectiveness of this Element:
• Has the City adhered to its system evaluation/condition assessment schedule? • Has the City adhered to its prioritization/corrective procedures for sewer repair and capacity improvement projects?
• Have projects been completed before deﬁciencies caused failures?

IMPLEMENTATION PLAN/SCHEDULE
No. Plan Schedule Responsible Party
Dir Eng Man

8.3.1 Utilize all available data for prioritizing corrective actions considering severity and consequences of
potential spills.

Each CIP Update
X X

8.3.2 Maintain documents and recordkeeping of system
evaluation and condition assessment inspections
and activities.

Continuously
X X

8.4. Capital Improvement Plan

WDR REQUIREMENTS
Att. D-8 (pgs. D-7/D-8)
The capital improvement plan must include the following items:
• Project schedules include completion dates for all portions of the capital improvement program.
• Internal and external project funding sources for each project; and • Joint coordination between operation and maintenance staﬀ, and engineering staﬀ/consultants during planning, design, and construction of capital improvement projects; and Interagency coordination with other impacted utility agencies.

COMPLIANCE
The City’s CIP_2025-2029 is a comprehensive ﬁve-year plan of capital improvement projects for the City of Milpitas. Capital improvement projects are purchases or construction of capital assets including streets, park developments or upgrades, the acquisition of land, major construction of public facilities, and major repair/rehabilitation of City infrastructure and facilities. Only funding for current year’s projects is appropriated by City Council on an annual basis.

Funding is projected for subsequent years for planning purposes. The CIP is reviewed annually to allow for necessary adjustments. Sewer system capital projects are generated using a variety of methods and studies (refer to page 379 of the CIP) . Projected schedule, funding, and funding sources for each project can be found on page 380 of the CIP.

The City maintains a strong collaborative approach between its Operations and Engineering divisions to ensure the eﬀective planning, design, and maintenance of the sanitary sewer collection system. Weekly coordination meetings are held between operations staﬀ and engineering personnel to discuss system performance, ongoing maintenance activities, project updates, and any emerging issues that may aﬀect infrastructure needs or priorities.

Operations staﬀ are actively involved in all Capital Improvement Program (CIP) planning and design meetings. Their ﬁrsthand experience with the day -to-day performance of the collection system provides critical insights into asset condition, operational c hallenges, and maintenance trends. Engineering staﬀ value and incorporate this input to ensure that CIP projects are both practical and sustainable, and that they eﬀectively address the needs observed in the ﬁeld.

Furthermore, all new development and redevelopment projects that connect to the City’s collection system are reviewed by collections/operations staﬀ prior to ﬁnal approval. This step ensures that proposed connections, alignments, and infrastructure components are compatible with existing system capacity and operation, and that long-term maintenance considerations are addressed early in the design process.

This coordinated, multidisciplinary approach helps ensure that the City’s sewer infrastructure investments are informed by operational experience, responsive to system needs, and compliant with applicable regulatory requirements, including those outlined i n the Sewer System Management Plan (SSMP) and associated Waste Discharge Requirements (WDRs).

EFFECTIVENESS
The City utilizes the following Key Performance Indicators for measuring eﬀectiveness of this Element:
• Has the City’s capital improvement plan schedule been adhered to?

IMPLEMENTATION PLAN/SCHEDULE
No. Plan Schedule Responsible Party
Dir Eng Man

8.4.1 Hold regular coordination meetings, with all
parties, to help keep the projects on track and
resolve issues that may arise in a timely manner.

Annually
X X

8.4.2 For schedules that are not kept, justify and
document the reason.

Each Delayed
Project X

RESILIENCE
Resilience is addressed for Element 7 by:
• Is there an annual review of the Capital Improvement Plan by all appropriate individuals including both Engineering and Operations?
APPENDIX 8 INCLUSIONS
• 8.1. Capital Improvement Plan

9. Monitoring, Measurement, and Program Modiﬁcations

WDR REQUIREMENTS
Att. D-9 (pg. D-9)
“The Agency SSMP must include an Adaptive Management section that addresses Plan implementation eﬀectiveness and the steps for necessary Plan improvement, including:
• Maintaining relevant information, including audit ﬁndings, to establish and prioritize appropriate SSMP activities.
• Monitoring the implementation and measuring the eﬀectiveness of each element. • Assessing the success of the preventive operation and maintenance activities. • Updating SSMP procedures and activities, as appropriate, based on results of monitoring and performance evaluations; and
• Identifying and illustrating spill trends, including spill frequency, locations, and estimated volumes.”

COMPLIANCE
The above requirements are addressed in order below:
• The City maintains accurate and relevant inspection and maintenance records for the collection system. Much of the documentation today is maintained electronically, which allows for ease of access and analysis. The City relies on this information to make sound decisions and prioritize activities when dealing with the routine and the unexpected.
• Monitoring of the District ’s SSMP focuses on each element in terms of its implementation and eﬀectiveness. The SSMP has been designed to include key performance indicators (KPIs) for each element, which are used to measure eﬀectiveness. In addition, implementation responsibilities are included for each element to help ensure the SSMP is being implemented as intended. • The City assesses the success of maintenance and operation activities by ensuring activities are being performed as expected, by monitoring actual outcomes compared to intended outcomes, as well as monitoring spill trends. As an example, gravity main cleaning crews evaluate, rate and document debris collected from the cleaning process, and if there are questions about the quality of the cleaning, push cameras are used to evaluate the eﬀectiveness after the cleaning. This information is used to help determine optimal maintenance intervals and can be a trigger to perform targeted outreach to help prevent illicit discharges from connected buildings and educate the public. • The City is committed to continuous improvement and monitors and evaluates performance of work programs and SSMP elements to ensure intended outcomes are achieved while looking for areas for improvement. Although the SWRCB requires that the SSMP be updated every s ix years, the SSMP is considered as a dynamic document and may require updating on a more frequent basis. Routine changes to administrative information, notwithstanding, minor changes will likely be required to address improvements identiﬁed throu gh the SSMP Audit or through modiﬁcations required as conditions change.
• The City monitors spill trends, at a minimum every three years during required audits, utilizing the CMMS database, inspection records, condition assessment information, and CIWQS data. These resources are helpful in planning and programm ing work, and adjusting as needed, enabling the City to be adaptive and capitalize on lessons learned.

EFFECTIVENESS
The City utilizes the following Key Performance Indicators for measuring eﬀectiveness of this Element:
• Are SSMP Elements being periodically evaluated for eﬀectiveness? • Are work activities and spill events being documented? • Has a plan and schedule been established to address audit ﬁndings/deﬁciencies from the last audit? • Is Trend Analysis being performed on spill causes?
• Have work programs been assessed and updated as necessary?

IMPLEMENTATION PLAN/SCHEDULE
No. Plan Schedule Responsible Party
Dir Eng Man

9.1 Assess work programs to ensure outcomes are as
intended
Annually
X X

9.2 Ensure updates to work programs and the SSMP based
on assessments.

As Needed
X X

9.3 Monitor and evaluate spill trends. Document eﬀorts. Annually X X

RESILIENCE
Resilience is addressed for Element 9 by:
• Development of key performance indicators to measure eﬀectiveness of the Sewer System Management Plan.
• Performing periodic reviews of the Sewer System Management Plan to help ensure the plan is being properly implemented.
• Developing and adhering to a timeline to correct deﬁciencies found during the audit process. • Periodically evaluating work programs to help ensure eﬀectiveness.

APPENDIX 9 INCLUSIONS:
• None

10. Internal Audits

WDR REQUIREMENTS
Att. D-10 (pg. D-10)
”The Agency SSMP shall include internal audit procedures, appropriate to the size and performance of the system, for the Enrollee to comply with section 5.4 (Sewer System Management Plan Audits) of this General Order.”

COMPLIANCE
The City completed its last audit in August 2024 and will complete audits every three (3) years moving forward. The objective of the audit is to evaluate compliance, implementation and eﬀectiveness of the SSMP.

Additionally, the SSMP includes a description of how the City will comply with the requirements of each Element. The audit review includes an evaluation to determine if compliance has been met.

Implementation is evaluated by determining if the City is executing the SSMP as stated.

Eﬀectiveness is evaluated by using key performance indicators, which have been developed speciﬁcally for each element.

An additional evaluation is performed to comply with Speciﬁcations 5.6 addressing resilience.

Resilience indicators have been developed for each element, and they serve to demonstrate how resilience is built into the SSMP and inspection, maintenance and spill response activities (see Appendix 12).

Any deﬁciencies discovered through the audit process are noted and a plan and schedule to implement corrective measures are established.

EFFECTIVENESS
The City utilizes the following Key Performance Indicators for measuring eﬀectiveness of this Element:
• Have audits been performed as required?
• Have the audits assessed compliance, implementation, and eﬀectiveness? • Have deﬁciencies been identiﬁed?
• Has a plan and schedule to rectify the deﬁciencies been established?

IMPLEMENTATION PLAN/SCHEDULE
No. Plan Schedule Responsible Party
Dir Eng Man

10.1 Schedule audits in advance of due dates to ensure
adequate time to complete. City has 6 months to
complete the audit from the end of the audit
period.

Begin end of audit
period X X

10.2 Ensure a plan and schedule is developed to address deﬁciencies.

Once the Audit is
completed X X

RESILIENCE
Resilience is addressed for Element 10 by:
• Periodically evaluate key performance indicators during the audit period to assess eﬀectiveness and make corrections, if necessary, prior to the audit.
• Evaluate previous audit to ensure deﬁciencies have been rectiﬁed. • Calendar the audit due dates and complete the audit on time.

APPENDIX 10 INCLUSIONS:
• 10.1. 2021-2024 SSMP Audit Report

11. Communication Program

WDR REQUIREMENTS
Att. D-11 (pg. D-10)
“The Plan must include procedures for the Enrollee to communicate with:

The public for:
• Spills and discharges resulting in closures of public areas, or that enter a source of drinking water, and
• The development, implementation, and update of its Plan, including opportunities for public input to Plan implementation and updates.

Owners/operators of systems that connect into the Enrollee’s system, including satellite systems, for:
• System operation, maintenance, and capital improvement-related activities.”

COMPLIANCE
Spills Resulting in Closures of Public Areas
When the City experiences a spill, it is standard procedure to secure the aﬀected area and keep the public away. This is generally done using barricades, cones and caution tape. Should the City experience a spill that may require closure of public areas, signs are immediately placed indicating the issue and providing contact information. Staﬀ will remain on site to provide an additional safety factor until appropriate authorities respond and direct otherwise. In all cases, the City will follow the advice of higher authorities, such as the State Water Resource Control Board and other regulatory authorities.

The City’s Public Information Oﬃcer will generally be involved and take the lead and send out information through various channels, including social media, news release and website postings.

Opportunity for Public Input
There are opportunities for stakeholders and the public to participate and provide input into the development and update of the City SSMP. The SSMP is available for review on the City website and at City oﬃces, by appointment.

The City Council must approve the updated SSMP every six years during a regular City Council meeting. The agenda for these meetings are noticed to the public prior to the City Council meeting and public comment opportunities are provided for each action item on the agenda.

Satellite Systems
The City does not have public sewer systems connecting to its collection system.

Operation and Maintenance Activities
As part of the City’s commitment to maintaining a high level of service and minimizing disruption to the community, residents and business owners are notiﬁed in advance of planned operation and maintenance activities that may result in signiﬁcant temporary impacts. These impa cts may include traﬃc congestion, road closures or detours, restricted access to properties, construction-related noise, or other disruptions.

Notiﬁcations are typically provided through a combination of methods, including door hangers, mailed notices, City website updates, social media posts, and, when appropriate, direct outreach by City staﬀ or

COMMUNICATION PROGRAM
© 2025 Fischer Compliance, LLC. All rights reserved. Sewer System Management Plan licensed for City of Milpitas use only. Page 56 of 57 contractors. The information provided includes the nature and purpose of the work, expected dates and times, potential impacts, and contact information for City staﬀ in case questions or concerns arise.

The City prioritizes clear, timely, and accessible communication to ensure the public is well informed and can plan accordingly. Eﬀorts are made to provide notiﬁcation at least 48–72 hours in advance of scheduled work, with updates issued as needed if timelines change.

This approach supports compliance with regulatory requirements related to public communication, customer service, and environmental stewardship. It also helps foster positive community relations and public understanding of the importance of ongoing mainten ance and infrastructure investment to protect public health and the environment.

EFFECTIVENESS
The City utilizes the following Key Performance Indicators for measuring eﬀectiveness of this Element:
• Does the City place all Sewer System Management Plan action items on the agenda for regular City Council meetings?
• Does the City have signage, or other means, readily available to notify the public of environmental or public risk factors related to a sewage spill?
• Does the City perform outreach to residential customers?

IMPLEMENTATION PLAN/SCHEDULE
No. Plan Schedule Responsible Party
Dir Eng Man

11.1 Ensure the City Council approves the
SSMP per schedule
Every 6 years
X X

11.2 Ensure the SSMP is posted on the City
Website and the link functions
properly.

Annually
X X

11.3 Ensure Sewage Spill Warning signs are
readily available to communicate with
the public when necessary
Annually
X

RESILIENCE
Resilience is addressed for Element 11 by:
• Use the Sewer System Management Plan as a tool to communicate to the public how the City is managing the system.
• Maintain a consistent presence in the service area by attending community events or issuing periodic newsletters or other communications to the public.
• Make it clear and easy for the public to contact the City.

APPENDIX 11 INCLUSIONS
• None

LIST OF APPENDICIES
APPENDIX 1
• 1.1 Milpitas City 2007-2024 CIWQS Historical Collection System Operational Report APPENDIX 2
• 2.1 Utility Maintenance Standard Operating Procedures APPENDIX 3
• None
APPENDIX 4
• 4.1. Vehicles and Equipment List
• 4.2. Training Plans/Schedules
APPENDIX 5
• Appendix 5.1. Milpitas City Standard Speciﬁcations for Sanitary Sewers • Appendix 5.2. Milpitas City Standard Drawings for Sanitary Sewer Construction APPENDIX 6
• 6.1. Spill Emergency Response Plan (SERP)
APPENDIX 7
• 7.1 Sewer Operation and Maintenance Ordinance
APPENDIX 8
• 8.1. Capital Improvement Plan
APPENDIX 9
• None
APPENDIX 10
• 10.1. 2021-2024 SSMP Audit Report
APPENDIX 11
• None
APPENDIX 12
• 12.1. SSMP Eﬀectiveness Assessment Worksheet

CITY OF MILPITAS

AGENDA REPORT
(AR)
Item Title: Adopt a Resolution Accepting Metropolitan Transportation Commission’s Transit-Oriented Communities Planning and Implementation Projects Grants (Staff Contact: Jay Lee, Planning Director, 408-586-3077) Category: Consent Calendar-Community Development
Meeting Date: 6/17/2025
Recommendation: Adopt a resolution accepting Metropolitan Transportation Commission Transit- Oriented Communities Planning and Implementation Projects Grant in the amount of $400,000 as a condition to receive regional discretionary funds to support increased allowable floor area ratio for the implementation of a parking and transportation demand management policy for Transit-Oriented Communities areas.

BACKGROUND:

On June 3, 2025, staff brought a resolution to the City Council for adoption on this same item. The City Council had concerns regarding the overall Metropolitan Transportation Commission (MTC) Transit-Oriented Communities (TOC) Policy (Policy) and directed staff to amend the resolution language to remove certain statements regarding the City’s overall commitment to the TOC Policy and clarify the grant’s purpose.

Additionally, the City Council directed staff to obtain in writing from MTC the limitations of the proposed resolution. Since that time, staff has coordinated the attached resolution with MTC that is responsive to the concerns expressed by the City Council at the June 3 Council meeting, and staff also received a written confirmation from MTC on the resolution’s purpose. The email reads:

The resolution is the City Council’s affirmation of their intent to adopt TOC compliant parking and transportation demand management policy for the three stations and a TOC overlay district for the BART Station Area as proposed in the grant application. Not the full suite of policies necessary to be TOC compliant.

As a demonstration of that commitment, we require the work developed by the consultant under city staff direction go before the council for consideration. The council retains local control and can choose not to adopt the policies developed. Because there are implications to the city not being TOC compliant, it is expected that staff and the council are motivated to work with their consultant to develop policies that work for the city. (MTC Email, June 11, 2025)
Background of MTC TOC Policy and Efforts
The MTC 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. Alignment 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

Page 436 of 448 ends

Milpitas City CouncilJune 17, 2025

Milpitas City Council
June 17, 2025