CITY OF MILPITAS
MILPITAS POLICE DEPARTMENT
LOCKER ROOM RENOVATION PROJECT
PREPARED FOR
Hank Terlaje, CIP Constr. Mgr.
City of Milpitas
1265 N. Milpitas Blvd.
Milpitas, CA 93035
PREPARED BY
NJ Associates, Inc. DBA NJA & NJA Architecture
Licensed Architect, Owner, John Vierra (License No. C35199) Licensed Architect, Owner, Nick Seward (License No. C38947)
SERVICE AGREEMENT
DATE
06.27.25
PROJECT
SCOPE
› Permitting, Bid assistance, and Contract Administration support services for planned revovations to the the womens locker room of the existing Milpitas Police Department. Program as follows, and noted per the reference drawings:
› Demolition of select areas of the existing locker rooms and exercise room › Expansion of Womens Locker Room and renovations to Mens showers › Creation of Body Cam Storage area and Vestibules
› Site Improvements
› Limited accessibility improvements, as noted per the reference drawings PROJECT LOCATION 1275 N. Milpitas Blvd.
Milpitas, CA 95305
WHAT TO
EXPECT
NJA Architecture is pleased to provide a list of services identifi ed in the following pages. We strive to provide a sensible and well-thought out design solution to meet our clients needs. In addition, we fi rmly believe that architecture should be an authentic expression of our clients’ values.
At each stage of the design process, we work together as a collaborative team. NJA, the client, consultants, and government agencies meet and communicate to maximize opportunities and ensure requirements are being met.
After signature of this agreement, your point of contact will reach out to you and set up a kick-off call to review the project timeline and any missing items to get the work started.
401 SCOPE OF SERVICES PAGE
SCOPE OF
SERVICES
0 1
1.0 Assessment and Schematic Design
› Services completed under prior agreement
2.0 Design Development
› Services completed under prior agreement
3.0 Construction Documents
› Services completed under prior agreement
4.1 Permitting
› Permit applications and submittal of documentation to City › Plan check revisions as required
› Coordination with City staff and offi cials
› Time and Material basis
4.2 Bid Assistance
› Assistance during bidding, clarifi cation of CDs
› Time and Material basis
4.3 Contract Administration
› Respond to RFIs
› Review Submittals, Shop Drawings,
and Applications for Payment
› Attend Job Conferences as necessary
› Site Observations as necessary
› Punchlist Observations
› Time and Material basis
TA S K 1 . 0
SCHEMATIC DESIGN
TA S K 2 . 0
DESIGN DEVELOPMENT
TA S K 3 . 0
CONSTRUCTION
DOCUMENTS
TA S K 4 . 0
PERMITTING
TA S K 5 . 0
CONTRACT ADMIN
501 SCOPE OF SERVICES PAGE
SCOPE OF
SERVICES
0 1
•
› Changes in the project’s program defi ned in 1.0 Project Scope › Environmental Analysis - Phase 1 & 2 reports
› Hazardous material reports and abatement if necessary › Joint trench design & dry utilities
› PUE determinations
› Frontage improvements, street improvements and/or dedication › Fire sprinkler plan, fi re alarms, and fi re supporession system › Boundary and Topographic Surveys, Record of Survey, or Monument Preservation
› Geotechnical engineering and reports
› Civil Engineering, Site Design and Storm Water Pollution Prevention Plan (SWPPP)
› Landscape Design
› Building Commissioning
› Food Service Equipment Design and Specifi cation
› Lighting Design
› Acoustic Design
› Solar Design and Engineering
› EV charging stations and engineering
› Signage design and signage permits
› Furniture and equipmptne design and engineering
› Construction Staking
› Any governmental fees required by this work
› NJA cannot assume responsibility for construction means, methods, techniques, sequences or procedures, safety, precautions, programs connected with the work, or for acts and ommisions by the Contractor, subcontractors, or others.
ARCHITECTURAL
SERVICES NOT
PROVIDED
602 FEE BREAKDOWN PAGE
Services completed under prior agreement
Services completed under prior agreement
Services completed under prior agreement
PERMITTING (INCLUDING UNBILLED T&M BALANCE) $23,200 (T&M) BIDDING ASSISTANCE $2,500 (T&M)
CONTRACT ADMINISTRATION $7,000 (T&M)
D AT E A U T H O R I Z AT I O N
REIMBURSABLE EXPENSES $2,000 (T&M)
D AT E A U T H O R I Z AT I O N
SERVICES FEE
FEE
BREAKDOWN
0 2
TOTAL (ABOVE SERVICES T&M) $34,700
TA S K 1 . 0
SCHEMATIC DESIGN
TA S K 2 . 0
DESIGN DEVELOPMENT
TA S K 4 . 0
PERMITTING AND
CONTRACT ADMIN.
T I M E A N D M AT E R I A L A L L O W A N C E
N O T T O E X C E E D
TA S K 3 . 0
CONSTRUCTION
DOCUMENTS
702 FEE BREAKDOWN PAGE
Balance will be invoiced monthly on progress to date.
Final drawings will be issued to client upon receipt of payment of remaining balance.
Payments are due and payable within (30) calendar days of Client’s receipt of NJA’s invoice. Undisputed amounts unpaid (30) calendar days after the invoice date shall bear interest from the date payments are due at a rate of 10% per annum (.833% per month), or the maximum amount allowed by applicable law.
At the request of Client, NJA shall provide additional services not included in the Architectural Services specifi ed above. Additional services shall be provided on an hourly basis in accordance with the following hourly rate, and shall be billed on a monthly basis:
Principal/Owner $250/hour
Senior Project Designer/Manager $195/hour
Project Architect/Manager $175/hour
Project Designer $155/hour
Architectural Staff Level 2 $110/hour
Architectural Staff Level 1 $90/hour
Admin Staff $75/hour
Note: Amendments to Article 2.0 Payment Schedule will be updated at the time of approved additional services if any.
NJA shall be compensated for reimbursable expenses such as reproductions and postage.
30 x 42 Black & White $6.56 ea.
24 x 36 Black & White $4.00 ea.
8.5 x 11 Color $0.50 ea.
8.5 x 11 Black & White $0.25 ea.
12 x 18 Color $1.50 ea.
12 x 18 Black & White $1.00 ea.
Site Visits - Travel - IRS Standard Millage Rate +15%
Client Meetings: 6 virtual meetings and 2 site visits are assumed.
Any invoice amounts disputed in good faith by Client and the reasons therefore will be reported to NJA within fi ve (5) calendar days after receipt of the applicable invoice, and Client and NJA agree to work diligently to resolve the dispute within ten (10) calendar days of NJA’s receipt of the notice of dispute from Client.
A R T I C L E 2 . 3
REIMBURSABLE
EXPENSES
A R T I C L E 2 . 2
ADDITIONAL
SERVICES
A R T I C L E 2 . 1
PAYMENT
TERMS
803 LEGAL AGREEMENT PAGE
See Article 2 for Fee Breakdown.
Client’s responsibilities include, but are not limited to the following:
1. Provide full information about the objectives, schedule, and constraints of the Project. NJA may rely on the accuracy and completeness of information furnished by Client.
2. Permit Fees, contractor’s fees, consultant fees outside this architectural agreement
3. Obtain project cost from a licensed contractor at each phase of the design process to ensure plans are meeting client’s budget.
All ideas, designs, drawings and plans are the original work of and owned by NJA and use of said work product is limited to the Project of Client, and for the construction of ONE building only. Any use, reuse, or disclosure of said plans, reproductions, ideas and designs, other than by NJA, is prohibited without the prior written permission of NJA.
Client’s responsibilities include, but are not limited to the following:
1. The term of this Agreement shall commence on the date signed under the Execution section and shall expire when fi nal drawings are provided to Client and payment in full is made to NJA.
2. Client has the right to terminate this Agreement at any time with or without cause by providing written notice of termination to NJA. In the event Client terminates this Agreement, Client See Article 1 for Architectural Services.
LEGAL
AGREEMENT
03 A R T I C L E 3 . 3
CLIENT
RESPONSIBILITIES
A R T I C L E 3 . 2
FEE BREAKDOWN
A R T I C L E 3 . 1
SCOPE OF
SERVICES
A R T I C L E 3 . 3
OWNERSHIP OF
INSTRUMENTS OF
SERVICE
A R T I C L E 3 . 5
TERM &
TERMINATION
903 LEGAL AGREEMENT PAGE
shall be responsible for payment to NJA for Architectural Services performed up to the date of termination (hourly rate times the time invested).
3. If Client fails to make payment on any undisputed amount, then NJA may (a) terminate this Agreement or (b) suspend provision of Architectural Services until payment is made in full.
NJA shall not be held responsible for any delays resulting from untimely payment by Client. NJA shall terminate or suspend this Agreement by providing written notice of same to Client.
4. This Agreement shall terminate automatically on the occurrence of bankruptcy or insolvency of either party.
5. NJA shall immediately cease providing Architectural Services to Client upon any termination or suspension of this Agreement.
Any and all amounts due by Client to NJA shall be paid within thirty (30) days of the date of termination of this Agreement.
Throughout the term of this Agreement, NJA agrees to and shall obtain from insurers of NJA’s choice, who are admitted to do business in California, and to maintain in force for the duration of this Agreement: (a) a policy of commercial liability insurance covering the activities of NJA in performing the Architectural Services with a combined single limit of not less than $1,000,000 per accident or occurrence and not less than $2,000,000 in the aggregate; (b) worker’s compensation insurance in statutory form during any times in which NJA has one or more employees other than owners exempt from such coverage; and (c) a policy of errors and omissions insurance covering the architectural services provided by NJA hereunder with a policy limit of not less than $1,000,000.
Client acknowledges and agrees that NJA is not responsible or liable for any act, or failure to act, on the part of Client, its employees, subcontractors, agents, or assigns (collectively, “Client Representatives”) nor for any personal injury or property damage sustained by Client, Client Representatives, or by any third person caused by Client’s or Client Representatives’ act or failure to act with regard to improper use and interpretation of the fi nalized Construction Documents, or otherwise caused by Client or Client Representatives. Client agrees to and shall indemnify, defend, and hold NJA harmless from and against any and all liabilities, claims, causes of action, damages, losses, costs or expenses, including reasonable attorneys’ fees and litigation costs, arising from or in any way connected with any acts or omissions by Client or Client Representatives related to any improper use or interpretation of the fi nalized Construction Documents, or otherwise caused by Client or Client Representatives.
A R T I C L E 3 . 6
INSURANCE
A R T I C L E 3 . 7
INDEMNIFICATION
10 03 LEGAL AGREEMENT PAGE
A R T I C L E 3 . 9
RELATIONSHIP OF
PARTIES
A R T I C L E 3 . 8
DISPUTE
RESOLUTION
1. The parties shall submit any and all disputes concerning the interpretation or the enforcement of rights and duties under this Agreement, or any deadlock arising between the parties that cannot be resolved, to mediation by a mediator to be mutually agreed to by the parties or appointed by a judge of the applicable County Superior Court if the parties cannot so agree. Mediation shall be held under the Construction Industry Mediation Rules of the American Arbitration Association. No written or oral representation made during the course of any mediation shall be deemed a party admission.
2. In the event the dispute cannot be resolved by mediation, the parties shall submit the dispute to arbitration, if mutually agreed by the parties, or to the County Superior Court. This Agreement shall be governed by the laws of the state of California, irrespective of such state’s choice-of-law principles.
3. It is understood that any and all liabilities incurred by NJA throughout the course of rendering professional services on the Project shall be limited to a maximum of the net fee received by NJA not including expenses and subconsultants for all Architectural Services rendered on the Project. UNDER NO
CIRCUMSTANCES WILL NJA BE LIABLE TO CLIENT OR ANY THIRD
PARTY FOR SPECIAL, INDIRECT, INCIDENTAL, OR CONSEQUENTIAL
DAMAGES OF WHATEVER NATURE ARISING OUT OF OR RELATING
TO THIS AGREEMENT, EVEN IF NJA HAS BEEN NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES.
This Agreement is not intended to create, and shall not be construed to create, an employment relationship, partnership, joint venture, or other form of joint or shared enterprise between NJA and Client. NJA is an independent contractor performing Architectural Services for the benefi t of Client.
The time period specifi ed for any act herein will be extended for any periods of time during which any party is prevented from commencing or proceeding with performance by any act of God, riot, drought, fl ood, earthquake, strike, war, terrorist attack, civil unrest, action, or failure to act by any governmental authority, litigation commenced by any person or entity not a party to this Agreement, failure or inability of any public utility to deliver service, or any similar cause beyond the reasonable control of any party.
A R T I C L E 3 . 1 0
FORCE
MAJEURE
11 03 LEGAL AGREEMENT PAGE
A R T I C L E 3 . 1 3
EXECUTION
Any and all notices, demands, requests, or other communications required or permitted by this Agreement or by law to be served on or given to either party hereto by the other party hereto must be in writing and will be deemed duly served and effective when personally delivered to the party to whom it is directed, or in lieu of such personal service, three (3) business days after having been deposited in the United States mail, postage prepaid, registered or certifi ed, return receipt requested, or twenty-four (24) hours after having been provided to Federal Express or other overnight courier service for delivery, and addressed to the party to whom it is directed, at the address provided at the party’s signature line below.
This Agreement is intended by the parties as a fi nal expression of their agreement with respect to the terms included herein and may not be contradicted by evidence of a prior agreement or of a contemporaneous oral agreement. Any modifi cation or waiver of any of the terms of this Agreement must be expressly made in writing by the parties. The invalidity of any provision of this Agreement as determined by a court of competent jurisdiction will in no way affect the validity of any other provision of this Agreement. This Agreement shall be binding upon and inure to the benefi t of the parties hereto and their respective heirs, successors, and permitted assigns. This Agreement is personal to the parties and may not be assigned by either party without written consent of the other party.
This Agreement was executed voluntarily without any duress or undue infl uence on the part of or on behalf of the parties hereto. The parties acknowledge and agree that they have read and understood this Agreement and its legal effect. Each person executing this Agreement on behalf of another person or entity represents that the execution of this Agreement has been duly authorized by the party on whose behalf the person is executing this Agreement and that such person is authorized to execute this Agreement on behalf of such party. IN WITNESS WHEREOF, each of the undersigned has signed this Agreement indicating his or her assent and agreement hereto.
A R T I C L E 3 . 1 1
NOTICES
A R T I C L E 3 . 1 2
MISCELLANEOUS
12 03 LEGAL AGREEMENT PAGE
CLIENT SIGNATURE NJA ARCHITECTURE SIGNATURE
CLIENT NAME NJA ARCHITECTURE NAME
DATE
LEGAL
AGREEMENT
SIGNATURES
03 The terms and conditions of this Contract are valid 60 days starting the date the contract was issued. After 60 days, NJA reserves the right to review the fee schedule and terms and conditions of this agreement.
CITY OF MILPITAS
AGENDA REPORT
(AR)
Item Title: City Council Priority Setting (Staff Contact: Matt Cano, Assistant City Manager, 408-586-3012)
Category: Leadership and Support Services
Meeting Date: 11/4/2025
Recommendation: (1) Review, prioritize, and approve Council Referrals, with direction to staff to return at a future meeting with additional analysis and costing; and (2) Adopt a resolution to appropriate unassigned fund balances or reserves for referrals ranked and prioritized for funding.
BACKGROUND:
On October 2, 2025, the Milpitas City Council (Council) attended a City Council Priority Setting Workshop during which staff delivered a presentation on the City’s fiscal condition, strategy, and work plan efforts, and provided an overview of completed, existing, and new Council referrals. Additionally, staff presented Council with a two-step process to both prioritize and rank the referrals. Staff further recommended Council approve and adopt a resolution to appropriate unassigned fund balances or reserves for referrals ranked and prioritized by the City Council for funding.
After the staff presentation, the Council engaged in step 1 of the prioritization process (majority vote on which referrals to prioritize). However, prior to proceeding to step 2 (ranking the prioritized referrals) and after robust discussion, Councilmember Lien requested to rescind her prioritization votes based on the discussion. Council directed staff to bring the prioritization vote back to the November 4, 2025 City Council meeting to complete both steps of the prioritization process.
Provided on this agenda report is a link to the staff presentation: October 2, 2025 City Council Priority Setting Workshop
ANALYSIS:
Based on Council’s discussion and request for more information on the referrals, staff will present Council with a detailed list of referrals for prioritization, which articulates what Council can expect as an outcome if the referral is prioritized. This referral list set forth as an exhibit to this Agenda Report as Attachment A.
After review of the referral list, staff requests Council to engage in the two-step prioritization process, as outlined below:
Step 1: Vote on new referrals in Bucket 2 – those with Council majority will be moved to Bucket 3
o Bucket 2: New referrals made at Council meetings that have not been prioritized and referrals submitted through this process
o Bucket 3: Existing referrals which are Council Approved & Prioritized but are on hold
This vote will determine which referrals have Council majority support and only these referrals will be moved to step 2. Multiple rounds of voting may occur until 30% to 50% of the items receive majority vote.
Step 2: Rank Bucket 3 Referrals (forced ranking) -- based on the full Council's rankings, these referrals will be considered Council Priorities and will be placed into three categories:
1. High Priority: Impacts health, safety, or revenue. Strategic in nature and builds on Milpitas' Strategic Goals
2. Important: Has a positive impact on the community but can be postponed if needed
3. Nice to Have: Not necessary but would be nice to have for the Council and/or Community. The City can get by with or without this referral
Finally, Council will review the final ranked list of priorities and will have the option to adjust the list, if desired:
1. If desired, make a motion, with a supermajority (4 of 5) vote to:
o Swap certain items between categories -- motion should be clear on which items to swap with each other
o Replace any items on list with a new item -- motion should indicate which item to replace; OR
2. Final motion to deem the list completed and ranked
Once a final list is approved by majority vote, Council will be asked to consider adoption of a resolution to appropriate unassigned fund balances or reserves for referrals ranked and prioritized for funding. Information on the source of one-time funds and one-time funded referrals is set forth as an exhibit to this agenda report as Attachment B.
POLICY ALTERNATIVE:
Alternative 1: Postpone the Priority Setting process and/or approval and adoption of funding resolution to a later date
Pros: Postponing the process may allow Councilmembers additional time to decide on the referrals they want to prioritize.
Cons: Postponing the prioritization of referrals or allocation of one-time funds would impact referrals that have a target completion or implementation date.
PROJECT SCHEDULE/KEY MILESTONES
Staff will report back on the progress of prioritized referrals and related work plans at future prioritization sessions and/or through other channels.
FISCAL IMPACT:
The fiscal impact will be determined by Council’s approval and adoption of a resolution to appropriate unassigned fund balances or reserves for referrals ranked and prioritized by the City Council for funding.
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):
This item is not a project under the California Environmental Quality Act (CEQA) Guideline 15378(b).
ATTACHMENT(S):
(a) Referral List including Descriptions of Staff Actions on Referral if Prioritized by Council (b) Use of One-Time Funds Proposal
(c) Resolution to Increase Appropriation for Referrals
Attachment A: Referral List including Description of Staff Action on Referral if Prioritized by Council
# Bucket 2 Referral (New) One-Time
Cost What Council can Expect, if Prioritized
1 Update Mural Program Policy to allow for
enhanced Commissioner input (Montano)
NA Staff is prepared to work on these policy changes. If prioritized, staff will draft edits to the policy that articulate that final approval of mural designs is under the purview of the Arts Commission. The schedule for this is to be determined. 2 Revise Youth Scholarship Policy to expand
eligibility criteria (Montano) NA Existing eligibility: Milpitas residents enrolled in Milpitas school. Does not preclude homeschooled/private school students who meet the above criteria. If prioritized, staff will draft edits to the existing policy to clarify eligibility and return to Council at a future date to approve the revised policy. 3 Explore expansion of SMART
transportation services to San Jose
International Airport (Lam) * Council
request to expand scope to include County
hospital
NA/ ongoing cost
TBD
Funding challenges and potential regulatory challenges need to be studied, as well as the relative potential increased cost per passenger. If prioritized, staff will seek preliminary cost estimates for this initiative and share with the City Council for a future budget process. The schedule for this is to be determined. 4 Ring Doorbell Neighborhood Initiative
(Chua) $120,000 Explore program to distribute wireless doorbell security cameras at no cost to eligible residents. Included in one time funding list. If prioritized, staff will be assigned to develop a policy for Council approval. The schedule for this is to be determined. 5 Add three Police patrol vehicles to be
driven by low-cost/volunteer drivers
(Lam)
NA/ongoing cost
TBD
This request carries significant liability, and implementation challenges. 1) Operating a marked patrol vehicle—even if unarmed—carries an implied authority and responsibility that legally rests with sworn law enforcement officers. Allowing volunteers or minimally trained personnel to operate these vehicles significantly increases the City's exposure to civil liability in the event of vehicle accidents involving injury or property damage, use-of-force incidents (actual or perceived), misrepresentation of authority or impersonation of law enforcement, claims of harassment, racial profiling, or unlawful surveillance. 2) Patrol-level activity demands a high degree of training in areas such as De-escalation, Use of radio communications, Legal detainment and observation, Tactical safety during suspicious activity. 3) Volunteer programs of this nature would require a robust vetting, training, and supervision infrastructure—resources we currently do not have without significantly diverting from core policing operations. Using volunteers as the staffing model for this program would be subject to Meet and Confer obligations under the MOU with POA. If prioritized, staff will research an alternate option to attain the intended outcome. Alternate options will focus on reducing liability and may include recommendations such as enhancing neighborhood watch. The costs for this alternative option would be presented during a future city council budget discussion. The schedule for this is to be determined.
6 Create status updates function for citizens
to track their police reports that were
submitted online (Lam)
NA/ongoing cost
estimated at
$16,000 annually
Public access to case status, may disrupt investigative integrity as the premature release of case updates, especially in active investigations, could interfere with interviews, suspect leads, or ongoing surveillance. Disclosure of certain statuses (e.g., “under investigation,” “suspect identified”) may alert suspects and hinder progress. Detectives are assigned several cases each month. Keeping constant updates on each case compounds and will take time away from investigating their open cases. Citizens may misinterpret case status terminology or timelines (e.g., assuming "open" means active progress is being made daily). This can lead to increased calls, complaints, or unrealistic expectations about investigative timelines. This is particularly true in cases where search warrants (or several search warrants) are necessary, or evidence items are sent to a crime lab for evaluation. In both circumstances, it can take a significant period to receive actionable results. Integration with existing RMS and CAD systems may require costly vendor upgrades or new software modules if they exist. A standardized tracking system may oversimplify or misrepresent the actual investigative process. Staff identified an automated technology solution with our existing RMS vendor. The solution is approximately $16,000 per year to implement. If prioritized, staff will provide the costs for Council consideration during a future budget process to consider allocation of ongoing funding. Staff will also research a process to attain the desired outcome while minimizing impact to staff workload and mitigating the above concerns. The schedule for this is to be determined. 7 Add function to online police report
system to allow for citizens to upload
photos/videos to submitted reports (Lam)
TBD
Although this functionality is likely possible with enhancements to existing technology and systems, adding this functionality would cost money and create unnecessary security concerns with little benefit to the community. Currently, online reports with physical evidence and actionable suspect information are not accepted via the online system. Those reporting crimes meeting these criteria are rejected and an officer is assigned to take the report. When picture or video evidence is available under these circumstances, the officer receives the evidence and provides a quality/control assessment before collecting and booking the evidence. Allowing citizens to automatically upload files without this check and balance, creates security issues, the potential of actionable leads being missed, and costly retention of data that may not have any investigative value. Most online reports are lower-level crimes that may not be investigated due to insufficient leads. It is not necessary to store data under these circumstances. Changing the current practice is not recommended. Staff has identified correlation between this request and an existing initiative on the department’s workplan to streamline digital media evidence collection. This request can be resolved under the existing workplan.
8 Install AI cameras to police patrol cars to
detect issues (stolen vehicles, potholes,
etc. (Lam)
TBD
California has significant scrutiny around law enforcement use of AI and surveillance tools. There is legislation moving through the legislature that may impact our ability to implement such a program. Use of AI should be presented to the public for input before implementation to avoid outcry. Expanding AI surveillance, even for collecting infrastructure data can trigger distrust since its on police vehicles. This will likely be viewed as an overreach and lack of transparency. The infrastructure concerns this technology is meant to resolve can already be reported through existing platforms; it is more fiscally responsible to better publicize these existing systems. The police department's first LPR program was LPR cameras installed on police vehicles. That program was significantly less productive than the current system with fixed LPRs strategically placed throughout the City.
If prioritized, staff will perform an analysis to determine feasibility, costs, and potential funding sources to install cameras on other City vehicles (not Patrol vehicles). The schedule for this is to be determined.
9 Build hospital in Milpitas (Lam) TBD
Private hospital: Siting a private hospital is market driven and outside of the City’s control.
County hospital: Siting a public hospital is also market driven but also informed by community needs and ability to subsidize costs, if needed. Based on the Sept. 16 County presentation, it does not appear that the County is focused on a growth strategy, rather a strategy to preserve current services.
City hospital: CA Govt. Code 37600 enables a City to operate a hospital; but requires voter approval and significant resources (e.g., land, funding sources to build and operate, etc.). This referral requires that the City enter a new line of business.
If prioritized, staff will prepare a memo to Council articulating the requirements and challenges in further detail.
10 Strategic Land Acquisition Revenue
Reserve Fund (staff recommendation
following Council feedback)
$200,000 or TBD This would add to the existing reserve in the City’s budget. Included in one-time funding list.
If prioritized, staff will allocate the approved amount to this fund so that it would be available for a future potential purchase. 11 Storefront & Crime Prevention Business
Initiative (Montano) $100,000
This would make funding available for businesses to focus on public safety related physical improvements to their storefronts.
If prioritized, staff will allocate the amount approved by Council to this initiative and return to Council with policy revisions. The schedule for this is to be determined.
12 Council Community Fund
(Montano/Chua) $50,000
This would expand the eligibility for the existing $25,000 available annually for donations and fee reductions and possibly increase the amount on a one-time basis. Included in one-time funding list.
If prioritized, staff will allocate the amount to this fund and return to the City Council with a revised policy that considers potential expanded uses of the funding. The schedule for this is to be determined.
13 Council Special Events Fund
(Montano/Chua) $10,000
This would provide funding for City Councilmembers to attend local, non-political, events where their attendance is beneficial for the City of Milpitas. Included in one-time funding list.
If prioritized, staff will allocate the approved amount to this fund and return to the City Council to present a policy that outlines allowed uses for this funding.
The schedule for this is to be determined.
14 ADU Permit Subsidy (staff
recommendation following ADU
Information Memo re Sale of ADUs as real
estate)
$60,000
This increases the amount of funding currently available to provide subsidies for homeowners to develop ADUs on their properties. Included in one-time funding list.
If prioritized, staff will allocate the approved amount to this fund to provide for additional ADU subsidies. 15 Public/Private Partnership for Street
Festival in 2026 (Montano/Lam) $385,000
Street Festival in 2026, during FIFA, by a 3rd Party Promoter. However, significant capacity and funds would be required to support this event, including cancellation of Annual July 4th event. At present moment, there is no revenue opportunity for the City. Public benefit of gift of public funds needs to be determined. If prioritized, staff will continue the analysis and update the estimated cost. The schedule for this is to be determined. 16 Review flight paths over Milpitas
(Montano) NA/TBD Flight paths are under Federal authority/oversight so there is little the City can do to control/influence. Staff has met with San Jose Airport team and is assessing how to join ongoing mitigation regional activities. If prioritized, staff will continue this effort.
# Bucket 3 Referrals ** One-time Cost What Council can Expect, if Prioritized 1 Temporary Police Office on Main Street
(Montano) $310,000
Included in one-time funding list. Part one of this is deemed completed as an office is planned for inclusion in the eventual development of the Main Street parcels. However, Part two of this would be a temporary police office. This is not currently funded. If prioritized, staff will look at all options/sites for a temporary office, update Council, and seek Council approval of the fund allocation. The schedule for this is to be determined. 2 Develop Fentanyl Policy (Barbadillo) NA
Due to staffing workload, additional work on this priority item has not yet begun. Milpitas is currently experiencing less than average opioid overdose incidents. In 2024, emergency calls for opioid related incidents were 1.2% of total EMS calls. The less than average opioid related overdose deaths currently observed in Milpitas can be attributed to the proactive steps the fire and police departments have implemented to include, carrying and deploying naloxone on all front-line fire apparatus and police patrol cars, along with increased public education consistent with industry best-practice.
If prioritized, staff will be assigned to research and develop a draft policy. The schedule for this is to be determined. 3 Plan Small Business Open House (Doing
Business with Milpitas) * (Chua) $1,500
Included in one-time funding list. Intended focus is to educate and inform business on how to participate in procurement of city services. If prioritized, staff will commence work on this initiative with a goal of a Spring 2026 event. Irrespective of prioritization, staff plans to continue other forms of small business outreach during 2026 as part of its current work plan. 4 Revise and expand Animal Cruelty
ordinance (Chua) NA Due to staffing workload, work on this priority item has not yet begun. If prioritized, staff will be assigned to commence work on this ordinance revision. The schedule for this is to be determined.
** These are existing prioritized referrals to be included in 2nd round of voting (ranking process).
Source
Source & Use Summary Tables
# Source Amount Detail
1 Community Investment
Fund $472,419 June 30, 2025, balance from unallocated and completed program fund balance 2 Stratford School $1,000,000 $1.0 million has been provided to the city as part of the Development Agreement. 3 VTA Reimbursement $840,200 City received the VTA reimbursement in June 2025, for BART Extension pavement and structural street repairs. Note: Funds may be used differently.
4 Fiscal Strategy – Contract
Review $1,000,000 As of now, staff has identified over $1,000,000 that can be liquidated due to expired contracts.
TOTAL $3,312,419 One-Time Funds Only
Type Amount
One Time Funds $3,312,419
Staff Recommendations ($1,005,000)
Councilmember
Proposals ($1,236,500)
One Time Fund
Balance $1,070,919
Councilmember Proposals
# Proposal One-Time Cost Detail
1 Temporary Police Office on
Main Street $310,000
Staff worked with various contractors to determine the current condition of the building and identified 5 key building systems that need to be addressed for the building to be occupied by Police personnel. A total of $301,760 would be needed for the building improvements. $310,000 requested for contingency. If approved, the work would take approximately one year to complete once it is started. 2 Strategic Land Acquisition
Revenue Fund $200,000 or TBD The Council has long expressed the need to build up funding for strategic land acquisition that enables revenue generating opportunities for the City. A contribution of any sort builds on that goal. This would add to the current reserve of $710,248. 3 Storefront & Crime
Prevention Business
Assistance
$100,000
This initiative would refocus the City's existing storefront rehabilitation fund with crime prevention improvements, enabling businesses to take proactive measures to address safety needs for patrons and business facilities. The Storefront fund has $87,000 available for re- distribution to this initiative, if desired.
4 Flood Mitigation near
Milpitas Jose Esteves Library $2,600,000 - $2,800,000 *Not included in the Total value 5 Ring Doorbell Neighborhood
Initiative $120,000 The average Ring doorbell costs $115 and this reflects the purchase of 1000 doorbells, with a $5,000 contingency. 6 Plan Small Business Open
House (Doing Business with
Milpitas)
$1,500
Council direction to establish an event that offers public service career opportunities and awareness for youth and adults. Per feedback from referral sponsor, focus of name changed to Small Business Open House (Doing Business with Milpitas). Intended focus is to educate and inform business on how to participate in procurement of city services. 7* Council Community Fund $50,000
Currently, the Council appropriates $25k/year to this fund for fee waivers, grants, and/or other community uses. In addition to the citywide $25k/year, this initiative could establish a pilot program for two years that provides Councilmembers $5k/yr to sponsor community priorities, Councilmember priorities, or neighborhood events. The fund balance for two years would be $50k/year with $25k for Citywide current types of expenditures, and $5k/year for individual Councilmember sponsorships (e.g., choir, neighborhood party, youth effort, etc.). This would begin following completion of a new council approved policy for funding distribution. 8* Council Special Events Fund $10,000
Establishes a pilot program for two years allowing $1,000/yr for each Councilmember to attend non-political events where it is deemed beneficial for the City of Milpitas to be represented. This would begin following completion of a new council approved policy for funding distribution.
9* Public/Private Partnership
for Street Festival in 2026 $385,000
Street Festival in 2026, during FIFA, by a 3rd Party Promoter. However, significant capacity and funds would be required to support this event, including cancellation of Annual July 4th event. At present moment, there is no revenue opportunity for the City. Public benefit of gift of public funds needs to be determined. Cost estimate is preliminary, and additional costs would likely be incurred beyond current estimate.
10* ADU Permit Subsidy $60,000 Subsize approximately 10 permit fees for each new ADU; average building permit and plan check fees per ADU is $6,000. Additional funding would be added to approximately $130,000 remaining in current program.
TOTAL $ 1,236,500
* Requests have surfaced since April 2025 and ADU is related to Council's former referral on ADUs (as a Policy option).
Staff Recommended Proposals based on Council Requests and Feedback
# Proposal Est. One-Time
Cost Detail
1 Library: Improved security and maintenance $300,000
Library security enhancement for 24 months: this includes security guard presence at the Library to address on-going vandalism and security needs ($100k/yr). Library improved maintenance includes an extra $50,000/year to provide for quicker clean up and proactive maintenance. 2 Park Improvements Grant Matching Funds $200,000 Matching funds for potential future grant applications for a city park project. 3 Main Street Revitalization $100,000
Funds streetscape beautification, marketing/branding, or a financial incentive program to attract retail and restaurants into vacant buildings. A funding plan would be presented to Council before implemented, but it includes Street Eats 209 event ($7,500/event) 4 Milpitas Youth Force Summer Job Program $80,000 Funds appx. 20 youth to participate each summer (@ approximately $2000 per student). 5 Expand Emergency Motel Stay $100,000 Funds motel stays for the unhoused during emergencies for 2 - 4 years. 6 FIFA/Superbowl events and small business
promotion $75,000 Fund events promoting Milpitas businesses during FIFA/Superbowl. Note timeline needed for approval to allow for Superbowl events.
7 Economic Development Strategy $150,000 To fund the development of a citywide Economic Development Strategy.
TOTAL $1,005,000
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MILPITAS
AUTHORIZING AN INCREASE TO THE APPROPRIATION OF UNASSIGNED FUND
BALANCES OR RESERVES FOR REFERRALS RANKED AND PRIORITZED BY THE
CITY COUNCIL OF MILPITAS
WHEREAS, the City Council of the City of Milpitas has received and discussed a presentation on the City of Milpitas fiscal condition, strategy, and work plan efforts; and
WHEREAS, the City Council has reviewed, prioritized, and approved City Council Referrals using a two- step prioritization process, with direction to City staff to return at a future meeting with additional analysis and costing that may be required; and
WHEREAS, the City Council wishes to appropriate unassigned fund balances or reserves for certain referrals ranked and prioritized by the City Council at its November 4, 2025 meeting;
NOW, THEREFORE, the City Council of the City of Milpitas hereby finds, determines, and resolves as follows:
1. The City Council has duly considered the full record before it, which may include but is not limited to such things as the City staff presentation, testimony by staff and the public, and other materials and evidence submitted or provided to it. Furthermore, the recitals set forth above are found to be true and correct and are incorporated herein by reference.
2. The 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.
3. The City Council hereby authorizes a budget increase of $[XXXXX] of unassigned fund balances or reserves for the current fiscal year for certain referrals ranked and prioritized by the City Council at its November 4, 2025 meeting.
PASSED AND ADOPTED this 4th day of November 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