January 13, 2026 Milpitas City Council Agenda Page 1
SPECIAL JOINT MEETING OF THE MILPITAS
CITY COUNCIL AND HOUSING AUTHORITY
AGENDA
TUESDAY, JANUARY 13, 2026
CITY COUNCIL CHAMBER, 455 E. CALAVERAS BLVD, MILPITAS, CA 5:30 PM (PUBLIC BUSINESS)
For assistance in the following languages, you may call:
Đối với Việt Nam, gọi 408-586-2400
Para sa Tagalog, tumawag sa 408-586-3051
Para español, llame 408-586-3072
* To access written translation during the meeting, scan the QR Code.
The City Council meeting is held in the City Council Chamber at City Hall, 455 E. Calaveras Blvd., Milpitas and via teleconference/Zoom webinar.
You may watch the Council meeting without providing public comment by accessing it via links here.
Meeting shall be livestreamed - Go to:
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YouTube: https://www.milpitas.gov/youtube
Web Streaming: https://www.milpitas.gov/webstreaming
PUBLIC COMMENT INSTRUCTIONS
Oral public comments may only be provided live during the City Council meeting in person, unless the City Council approves remote public comment. All comments provided shall be limited to three minutes or less as determined by the Mayor. All members of the public will be limited to one comment per agenda item, and one comment for non-agenda items. Members of the public may submit written comments by email to [email protected]
The meeting will be streamed via Zoom for viewing purposes only unless the City Council approves remote public comment. To watch via Zoom, please register at:
https://ci-milpitas-ca-gov.zoom.us/webinar/register/WN_PdjAOw74R0CtH7aNBlilfA NOTE: If a member of the public wishes to share any presentation materials for Council consideration, they must be submitted to the Clerk’s Office by email to [email protected] by 12:00 p.m. on the day of the meeting. No presentations will be accepted in person in the Council Chambers.
MILPITAS CITY COUNCIL CODE OF CONDUCT
• Be respectful and courteous (words, tone, and body language). • Model civility.
• Avoid surprises.
• Praise publicly and criticize privately.
• Focus on the issue, not the person.
• Use electronic devices appropriately while on the Council dais. • Disclose conflicts of interest and affiliations related to agenda items. • Separate governing from campaigning.
• The Council speaks with one voice after making policy on issues. • Respect the line between policy and administration.
• Council will hold one another accountable to comply with this Code of Conduct.
January 13, 2026 Milpitas City Council Agenda Page 2
CALL MEETING TO ORDER by Mayor and ROLL CALL by City Clerk (5:30 PM)
ADJOURN TO CLOSED SESSION
(a) PUBLIC EMPLOYEE APPOINTMENT AND HIRING
Pursuant to Government Code Section 54957(b)(1)
Employee Position: City Manager
(b) CONFERENCE WITH LEGAL COUNSEL
Pursuant to Government Code Section 54956.9(d)(1)
Existing Litigation: McHarris vs. City of Milpitas, Santa Clara County Superior Court Docket No. 23- CV-427505; Sixth District Docket No. H053453
(c) PUBLIC EMPLOYEE APPOINTMENT AND HIRING
Pursuant to Government Code Section 54957(b)(1)
Employee Position: Acting City Manager
CLOSED SESSION ANNOUNCEMENT:
Report on action taken in Closed Session, if required per Government Code Section 54957.1, including the vote or abstention of each member present.
PLEDGE OF ALLEGIANCE
INVOCATION (Councilmember Lam)
PRESENTATIONS
● Certificate Presentation to Library and Education Advisory Commission Essay Winners ● Martin Luther King, Jr. Day (Proclamation)
PUBLIC FORUM
Members of the public are invited to speak on any item that does not appear on today’s agenda. Comments will be limited to three minutes or less at the Mayor’s discretion. When called to speak, you are encouraged to state your name for the record.
As an item not listed on the agenda, no action can be taken, however the City Council may instruct the City Manager to place the item on a future meeting agenda.
ANNOUNCEMENT OF CONFLICT OF INTEREST AND CAMPAIGN CONTRIBUTIONS
READING OF THE CITY COUNCIL CODE OF CONDUCT
APPROVAL OF AGENDA
CONSENT CALENDAR
Consent calendar items are considered to be routine and will be considered for adoption by one motion. There will be no separate discussion of these items unless a City Councilmember, member of the audience or staff requests the Council to remove an item from (or be added to) the consent calendar. Any person desiring to speak on any item on the consent calendar should ask to have that item removed from the consent calendar.
C1. Receive City Council Calendar of Meetings (Staff Contact: Suzanne Guzzetta, City Clerk, 408- 586-3001)
Recommendation: Receive City Council Calendar of Meetings for January 2026.
January 13, 2026 Milpitas City Council Agenda Page 3
C2. Approve City Council Meeting Minutes (Staff Contact: Suzanne Guzzetta, City Clerk, 408-586- 3001)
Recommendation: Approve City Council Meeting minutes of December 16, 2025.
C3. Receive the Preview List of Anticipated Items for the Next Regular City Council Meeting (Staff Contact: Suzanne Guzzetta, City Clerk, 408-586-3001)
Recommendation: Receive the list of anticipated agenda items for the next regular City Council meeting.
C4. Receive and Review the List of Agenda Items Requested by City Councilmembers (Staff Contact: Suzanne Guzzetta, City Clerk, 408-586-3001)
Recommendation: Receive the list of items that have been requested by City Councilmembers and received consensus in previous meetings to date.
C5. Consider Recommendations from Mayor Montano for Appointments to Rent Review Board (Staff Contact: Suzanne Guzzetta, City Clerk, 408-586-3001) Recommendation: Receive Mayor Montano's recommendations and approve and confirm recommendations for appointments to the Rent Review Board C6. Approve Report of Actions Taken by the City Manager During the City Council and City of Milpitas Housing Authority Winter Recess from December 16, 2025 through January 13, 2026 (Staff Contact: Matt Cano Assistant City Manager, 408-586-3012) Recommendation: Approve report of actions taken by the City Manager during the City Council and City of Milpitas Housing Authority Winter Recess from December 16, 2025 through January 13, 2026.
C7. Authorize and Approve Travel Request for Mayor Carmen Montano to Washington, D.C. (Staff Contact: Matt Cano, Assistant City Manager, 408-586-3012) Recommendation: Authorize and approve the travel to Washington, D.C., for Mayor Carmen Montano to attend the 94th Winter Meeting of the United States Conference of Mayors to be held on January 28- 30, 2026, for a combined estimated total amount of $4,500 budgeted under the Individual Elected Official allocation for Conferences/Meetings/Trainings.
C8. Authorize the Assistant City Manager to Release the Option to Purchase the Affordable Housing Unit (Lot 20, Building 2) at 2001 Tarob Court, Accept the Net Proceeds from the Sale, and Execute the Necessary Documents (Staff Contact: Matt Cano, Assistant City Manager, 408-586- 3012)
Recommendation: Authorize the Assistant City Manager to release the option to purchase the Affordable Housing Unit (Lot 20, Building 2) at 2001 Tarob Court, accept from the Developer the net proceeds from the sale of the unit in accordance with the Affordable Housing Agreement, and execute the necessary documents.
C9. Authorize the Assistant City Manager, or Designee, to Negotiate and Execute an Amendment to the Agreement with Harris & Associates, Inc. for a Transit Area Development Impact Fee Nexus Fee and Community Facilities District Nexus Study (Staff Contact: Luz Cofresí-Howe, Finance Director, 408-586-3111; and Jay Lee, Planning Director, 408-586-3077) Recommendation: Authorize the Assistant City Manager, or designee, to negotiate and execute an amendment to the Professional Services Agreement with Harris & Associates, Inc. for a Transit Area
January 13, 2026 Milpitas City Council Agenda Page 4
Development Impact Fee (TADIF) Nexus Fee and Community Facilities District (CFD) Nexus Study to include: (1) retroactively extend the Agreement through December 1, 2026; (2) add $5,100 for a revised maximum compensation of $105,085; (3) revise Exhibit A, Scope of Services, to add additional services; (4) revise Exhibit B, Schedule of Charges/Payments, to reflect payments for additional services; and (5) revise Exhibit C-4, Activity Schedule, to reflect updated project timeline.
C10. Accept the Additional FY 2025 Citizens’ Option for Public Safety (COPS) Grant for Front-Line Law Enforcement Services and Approve the Appropriation of Funds to the Police Department’s FY 2025-26 Operating Budget (Staff Contact: Jared Hernandez, Chief of Police, 408-586-2406) Recommendation: 1) Accept the additional FY 2025 Citizens’ Option for Public Safety (COPS) Grant in the amount of $128,220.02 to be spent in alignment with the City Council approved FY 2025 spending plan; and 2) Approve the appropriation of funds to the Police Department’s FY 2025-26 Operating Budget for front-line law enforcement services.
C11. Accept the FY 2026 Citizens’ Option for Public Safety (COPS) for Front-Line Law Enforcement Services and Approve the Appropriation of Funds (Staff Contact: Jared Hernandez, Chief of Police, 408-586-2406)
Recommendation: (1) Accept the FY 2026 Citizens’ Option for Public Safety (COPS) Grant in the Amount of $125,185 for Front-Line Law Enforcement Services; and (2) Approve the Appropriation of Funds in the Total Amount of $125,185 to the Police Department’s FY2025-26 Operating Budget.
ANNOUNCEMENTS AND FUTURE AGENDA ITEMS
Members of the City Council or City Manager may make brief announcements at this time. Members of the City Council may also suggest future agenda items. For future agenda items, the City Council shall not debate the topic or engage in discussion but shall simply state a “yes” or “no” as whether to move the item forward. If a majority of the City Council agrees to move the item forward, the City Manager shall place the item on a future agenda.
ADJOURNMENT
KNOW YOUR RIGHTS UNDER THE OPEN GOVERNMENT ORDINANCE
Government’s duty is to serve the public, reaching its decisions in full view of the public. Commissions and other City agencies exist to conduct the people’s business. This ordinance assures that deliberations are conducted before the people and City operations are open to the people’s review. For more information on your rights under the Open Government Ordinance or to report a violation, contact the City Attorney’s office at Milpitas City Hall, 455 E. Calaveras Blvd., Milpitas, CA 95035 e-mail: [email protected] / Phone: 408-586-3040
The Open Government Ordinance is codified in the Milpitas Municipal Code as Title I Chapter 310 and is available online at the City’s website www.milpitas.gov by selecting the Milpitas Municipal Code link.
Materials related to an item on this agenda submitted to the City Council after initial distribution of the agenda packet are available for public inspection at the City Clerk’s office at Milpitas City Hall, 3rd floor 455 E. Calaveras Blvd., Milpitas and on City website. City Council agendas and related materials can be viewed online: www.milpitas.gov/government/council/agenda_minutes.asp (select meeting date)
APPLY TO SERVE ON A CITY COMMISSION
Commission application forms are available online at www.milpitas.gov or at Milpitas City Hall.
Contact the City Clerk’s Office at 408-586-3001 for more information.
If you need assistance, per the Americans with Disabilities Act, for any City of Milpitas public meeting, please call the City Clerk at 408-586-3001 or send an e-mail to [email protected] prior to the meeting. You may request a larger font agenda.
Milpitas City Council Calendar
January 2026
Sunday Monday Tuesday Wednesday Thursday Friday Saturday
1 CITY OBSERVED HOLIDAY
CITY OFFICES CLOSED
2 3
4 5
7:00 PM-Parks, Recreation & Cultural
Resources Commission (EC)
6 7
2:00 PM-Santa Clara VTA Monthly
Briefing - Northeast Group (CM)
(Santa Clara)
8 4:00 PM-Santa Clara VTA Policy
Advisory Committee (EC)
4:00 PM-Treatment Plant Advisory
Committee (CM) (San Jose)
6:00 PM-Youth Advisory Commission
(HL)
7:00 PM-Cities Assoc of SCC (CM)
9 10
11 12
7:00 PM- Library and Education
Advisory Commission (HL)
13 5:30 PM-Special City Council
14 4:30 PM-City Council Finance
Subcommittee (CM/EC)
4:30 PM-Economic Development and
Trade Commission (WL)
7:00 PM-Silicon Valley Clean Energy
Board of Directors (GB) (Sunnyvale)
15 6:30 PM-Bay Area Water Supply
Conserv Agency (CM) (Oak Room -
San Mateo Main Library)
16 17
18 19
MARTIN LUTHER KING JR.
BIRTHDAY
CITY OFFICES CLOSED
20 6:00 PM-Closed Session
7:00 PM-City Council
21 6:00 PM-Energy and Environmental
Sustainability Commission (EC)
7:30 PM-Science, Technology and
Innovation Commission (WL)
22 4:00 PM-Silicon Valley Regional
Interoperability Authority (SVRIA)
(GB)
23 24
25 26
7:00 PM-Arts Commission (CM)
27 28
7:00 PM-Planning Commission
29 12:00 PM-Santa Clara County Library
JPA Board Meeting (CM) (Campbell,
CA)
30 31
December 2025
S M T W T F S
1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30 31
February 2026
S M T W T F S
1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
December 16, 2025 Milpitas City Council Minutes Page 1
REGULAR MEETING OF THE MILPITAS
CITY COUNCIL
MINUTES
TUESDAY, DECEMBER 16, 2025
The City Council of the City of Milpitas convened in a Regular Meeting of the Milpitas City Council on December 16, 2025, in the City Council Chamber, 455 E. Calaveras Blvd, Milpitas, CA, and via teleconference/Zoom webinar.
CALL MEETING TO ORDER by Mayor and ROLL CALL by City Clerk Mayor Montano called the Regular City Council meeting to order at 6:01 PM. Roll Call was taken by City Clerk Guzzetta.
PRESENT: Mayor Montano, Vice Mayor Barbadillo, Councilmember Chua, Councilmember Lam, Councilmember Lien
ABSENT: None.
ADJOURN TO CLOSED SESSION
Acting City Attorney Creech briefed the City Council on the Closed Session Items.
There were no public comments.
The City Council adjourned to closed session at 6:03 PM. (a) PUBLIC EMPLOYEE APPOINTMENT AND HIRING
Pursuant to Government Code Section 54957(b)(1)
Employee Position: City Manager
(b) PUBLIC EMPLOYEE APPOINTMENT AND HIRING
Pursuant to Government Code Section 54957(b)(1)
Employee Position: City Attorney
CLOSED SESSION ANNOUNCEMENT:
Upon returning from closed session at approximately 7:00 PM, Acting City Attorney Creech reported that there was nothing to report out.
PLEDGE OF ALLEGIANCE
Mayor Montano led the Pledge of Allegiance.
INVOCATION
Mayor Montano delivered the invocation.
PRESENTATIONS
There were no presentations.
December 16, 2025 Milpitas City Council Minutes Page 2
PUBLIC FORUM
There were the following public speakers:
1. Gwan Alisantosa
2. Kaveri Rangaraj
ANNOUNCEMENT OF CONFLICT OF INTEREST AND CAMPAIGN CONTRIBUTIONS Acting City Attorney Creech asked the Mayor and City Councilmembers if they had any personal conflicts of interest. By roll call, there were no conflicts of interest. Acting City Attorney Creech asked the Mayor and City Councilmembers if they had any reportable campaign contributions. By roll call, there were no reportable campaign contributions.
READING OF THE CITY COUNCIL CODE OF CONDUCT
Councilmember Lam read the City Council Code of Conduct.
APPROVAL OF AGENDA
Assistant City Manager Cano requested a modification to the agenda, requesting that Item C5 be continued to the January 13 meeting.
After discussion, motion: to approve the agenda with Item C5 continued to the next City Council meeting.
Motion/Second: Councilmember Chua / Vice Mayor Barbadillo Motion carried by the following:
AYES: Mayor Montano, Vice Mayor Barbadillo, Councilmember Chua, Councilmember Lam, Councilmember Lien
NOES: None
CONSENT CALENDAR
There were no public speakers.
After discussion, motion: to approve the Consent Calendar.
Motion/Second: Councilmember Lien / Mayor Montano
Motion carried by the following:
AYES: Mayor Montano, Vice Mayor Barbadillo, Councilmember Chua, Councilmember Lam, Councilmember Lien
NOES: None
1. Receive City Council Calendar of Meetings (Staff Contact: Suzanne Guzzetta, City Clerk, 408- 586-3001)
Received City Council Calendar of Meetings for December 2025 and January 2026.
2. Approve City Council Meeting Minutes (Staff Contact: Suzanne Guzzetta, City Clerk, 408-586- 3001)
Approved City Council Meeting minutes of November 18 and December 2, 2025.
3. Receive the Preview List of Anticipated Items for the Next Regular City Council Meeting (Staff Contact: Suzanne Guzzetta, City Clerk, 408-586-3001)
December 16, 2025 Milpitas City Council Minutes Page 3
Received the list of anticipated agenda items for the next regular City Council meeting.
4. Receive and Review the List of Agenda Items Requested by City Councilmembers (Staff Contact: Suzanne Guzzetta, City Clerk, 408-586-3001)
Received the list of items that have been requested by City Councilmembers and received consensus in previous meetings to date.
5. Consider Recommendations from Mayor Montano for Appointments to Rent Review Board (Staff Contact: Suzanne Guzzetta, City Clerk, 408-586-3001) Continued to January 13, 2026.
6. Authorize and Approve Request from Mayor Carmen Montano to Present a Key to the City to the Mayor of Mexico City, Alcaldesa/Mayor Clara Brugada (Staff Contact: Matt Cano, Assistant City Manager, 408-586-3012)
Authorized and approved request from Mayor Carmen Montano to present a Key to the City to the Mayor of Mexico City, Alcaldesa/Mayor Clara Brugada.
7. Authorize and Approve Travel Request for Councilmember Lam to Sacramento, CA for the League of California Cities Mayors and Council Members Academy (Staff Contact: Matt Cano, Assistant City Manager, 408-586-3012)
Authorized and approved the travel to Sacramento, CA, for Councilmember William Lam to attend the League of California Cities Mayors and Council Members Academy to be held on January 21–23, 2026, for a combined estimated total not-to-exceed amount of $1,600 budgeted under the Individual Elected Official allocation for Conferences/Meetings/Trainings.
8. Authorize the City Manager, or Designee, to Execute a Purchase Order with CDW Government LLC for Desktops and Laptops (Staff Contact: Luz Cofresí-Howe, Finance Director, 408-586- 3111; and Daniel Nam, Information Technology Director, 408-586-2712) Authorized the City Manager, or designee, to execute a purchase order with CDW Government LLC for the purchase of desktops and laptops for a total amount not to exceed $292,866, inclusive of applicable sales tax and recycling fees.
9. Adopt a Resolution Delegating Authority to the City’s Personnel Officer or Designee to Notify Recognized Employee Organizations of Specified Procurements and Contracts as Required by California Assembly Bill 339 (Staff Contact: Kelli Parmley, Human Resources Director, 408-586- 3086; Luz Cofresí-Howe, Finance Director, 408-586-3111) Adopted Resolution No. 9463 delegating authority to the City’s Personnel Officer, or their designee, to notify recognized employee organizations of specific procurements and contracts that may materially affect represented positions pursuant to California Assembly Bill 339 beginning January 1, 2026.
10. Adopt a Resolution Authorizing the City Manager, or Designee, to Accept Grant Funds from Santa Clara Valley Transportation Authority, Negotiate and Execute Necessary Agreements, and Appropriate Related Funds for the Continuation and Expansion of the Milpitas SMART Program (Staff Contact: Jay Lee, Planning Director, 408-586-3077; and Luz Cofresí-Howe, Finance Director, 408-586-3111)
Adopted Resolution No. 9464 authorizing the City Manager, or designee, to: (1) Accept $2,766,144 in grant funds from the Santa Clara Valley Transportation Authority (VTA) for the continuation and expansion of the Milpitas SMART (Simple, Mobile, Access to Reliable Transit) program; (2) Negotiate
December 16, 2025 Milpitas City Council Minutes Page 4
and execute all necessary instruments, including a grant funding agreement with VTA, for disbursement and/or expenditure of these grant funds; (3) Approve the related budget appropriation actions in the amount of $2,856,144 in the General Fund to the Intergovernmental Revenue and the Planning Department budgets; and $243,486 in the General Government Fund to the Planning Department; and to the Intergovernmental Revenue estimate and Planning Department budget; and (4) Negotiate and execute a related amendment to the Agreement with RideCo US Inc. to add $3,099,630, extend the term through June 30, 2027, and add scope of services as required by this grant, including for trip planning and data sharing features.
PUBLIC HEARINGS
11. Review and Accept the Development Impact Fee Annual and Five-Year Reports for the Calaveras Boulevard Widening Traffic Impact Fee, Transit Area Specific Plan Impact Fee, and Storm Drainage Improvement Fee (Staff Contact: Luz Cofresí-Howe, Finance Director, 408-586- 3111)
Assistant City Manager Cano introduced the item. Finance Director Cofresí-Howe presented the report.
Councilmember Lien asked for clarification on the fund balances.
Councilmember Chua inquired about how these funds compared to previous years and asked for specifics about how the funds are used, noting that they are restricted to specific purposes rather than going to the General Fund.
Vice Mayor Barbadillo expressed interest in analyzing the economic impact of converting commercial land to residential within the TASP area, particularly looking at how property tax revenues from residential developments compare to what might have been earned from commercial uses. Acting City Attorney Creech noted that impact fees are designed to offset public improvement costs regardless of development type and may not be a good measure for this analysis. Assistant City Manager Cano noted that a comprehensive analysis of TASP fees would be conducted early in 2026.
Mayor Montano opened the public hearing. There being no public speakers, she closed the public hearing.
Councilmember Lam questioned why the Calaveras fund balance was relatively low, and staff clarified that the balances shown were point-in-time figures rather than cumulative totals. Mayor Montano also expressed surprise at the low figures. Assistant City Manager Cano mentioned that $5 million had previously been spent on Calaveras project analysis, with $1.5 million from the Calaveras fund and $3.5 million from the TASP fund.
After discussion, motion: to (1) Review and accept the Development Impact Fee Annual consistent with the Mitigation Fee Act for the Calaveras Boulevard Widening Traffic Impact Fee, Transit Area Specific Plan (TASP) Impact Fee, and Storm Drainage Improvement Fee for the fiscal year ended June 30, 2025; (2) Adopt Resolution No. 9465 making all findings required by the Mitigation Fee Act..
Motion/Second: Councilmember Lien / Mayor Montano
Motion carried by the following:
AYES: Mayor Montano, Vice Mayor Barbadillo, Councilmember Chua, Councilmember Lam, Councilmember Lien
NOES: None
December 16, 2025 Milpitas City Council Minutes Page 5
12. Accept the City’s Annual Comprehensive Financial Report and Other Related Annual Audited Reports for the Fiscal Year Ended June 30, 2025 (Staff Contact: Luz Cofresí-Howe, Finance Director, 408-586-3111)
Assistant City Manager Cano introduced the item. Finance Director Cofresí-Howe presented the report and responded to questions from the City Council.
Mayor Montano opened the public hearing. There were no public speakers and Mayor Montano closed the public hearing.
After discussion, motion: to review and accept the City’s Annual Comprehensive Financial Report and other related Annual Audited Reports for the Fiscal Year Ended June 30, 2025. .
Motion/Second: Councilmember Lien / Vice Mayor Barbadillo Motion carried by the following:
AYES: Mayor Montano, Vice Mayor Barbadillo, Councilmember Chua, Councilmember Lam, Councilmember Lien
NOES: None
13. Adopt a Resolution Approving the Fiscal Year 2025-26 User and Regulatory Fee Schedule (Staff Contact: Luz Cofresí-Howe, Finance Director, 408-586-3111) Assistant City Manager Cano introduced the item. Finance Director Cofresí-Howe presented the report.
Mayor Montano opened the public hearing. There were the following public speakers:
1. Voltaire Montemayor
Mayor Montano closed the public hearing.
Councilmember Lam asked why public safety fees increased by 15.17%. Finance Director Cofresí- Howe explained this was based on the year-over-year increase in average compensation for public safety employees, resulting from recently completed negotiations. Assistant City Manager Cano added that the first year of the agreement had larger increases than subsequent years.
After discussion, motion: to Adopt Resolution No. 9466 approving the Fiscal Year 2025-26 User and Regulatory Fee Schedule..
Motion/Second: Councilmember Lien / Vice Mayor Barbadillo Motion carried by the following:
AYES: Mayor Montano, Vice Mayor Barbadillo, Councilmember Chua, Councilmember Lam, Councilmember Lien
NOES: None
COMMUNITY DEVELOPMENT
14. Receive a Presentation on the Work Completed on the Innovation District Parks and Trails Master Plan and Provide Feedback (Staff Contact: Jay Lee, Planning Director, 408-586-3077) Assistant City Manager Cano and Planning Director Lee introduced the item. Principal Planner Van Hua, joined by consultants Karen Folsom and Beverly Yee, presented the report.
The Council provided individual feedback on their preferred concepts:
December 16, 2025 Milpitas City Council Minutes Page 6
• Vice Mayor Barbadillo: Concept #1 for southern park, Concept #1 for northern park, and trail Concept #2
• Councilmember Chua: Concept #1 for both parks (citing support for food trucks and vendor activities), and trail Concept #2
• Councilmember Lam: Concept #3 for both parks, and trail Concept #1 • Councilmember Lien: Concept #2 for both parks, and trail Concept #2 (with a caution about community outreach for dog parks)
• Mayor Montano: Concept #1 for southern park and Concept #3 for northern park, with trail Concept #2. She emphasized the need for facilities that would serve workers in the Innovation District, such as walking paths and gathering spaces, rather than children's play structures.
There were the following public speakers:
1. Voltaire Montemayor
No action taken.
LEADERSHIP AND SUPPORT SERVICES
15. Consider Appropriating Unassigned Fund Balances or Reserves Based on the November 4, 2025 Prioritization Vote (Staff Contact: Matt Cano, Assistant City Manager, 408-586-3012) Assistant City Manager Cano introduced the item and Senior City Manager Analyst Minot presented the report.
There were the following public speakers:
1. Voltaire Montemayor
The Council discussed additional priorities for funding. Mayor Montano suggested funding the library security improvements at $150,000 for one year (half of the original two-year request), which would include $100,000 for security services and $50,000 for maintenance and enhancements. Public Works Director Christian Di Renzo explained that security services had previously been effective, but vandalism had increased since the contract expired on September 30. Councilmember Lam asked about long-term solutions, and Assistant City Manager Cano noted that while security funding would likely be needed for several years, staff was also exploring ways to address underlying socioeconomic issues and possible infrastructure hardening. The Council reached consensus to fund Library Improved Security at $150,000 for one year.
The Council also discussed the Park Improvements Grant Matching fund. Assistant City Manager Cano explained that while Sandalwood Park was a particular priority for which design had been funded but construction funding was not yet identified, the request was made more generic to allow flexibility in pursuing grant opportunities. The Council reached consensus to fund Park Improvements Grant Matching at $200,000.
Councilmember Lien advocated for funding the Milpitas Youth Force summer jobs program at $80,000, noting its importance in providing youth with valuable work experience. The Council reached consensus to fund the Milpitas Youth Force at $80,000.
Councilmembers Chua and Lam discussed a previously prioritized initiative to expand Milpitas SMART transportation services to San Jose International Airport and Valley Medical Center. Staff explained that cost estimates were not yet available but would be developed by late January through discussions with RideCo, the service provider. The Council decided to wait for these estimates before allocating funding.
December 16, 2025 Milpitas City Council Minutes Page 7
After discussion, motion: to Adopt Resolution No. 9467 to appropriate unassigned fund balances or reserves for approved one-time funded priorities based on the November 4, 2025 prioritization vote. as follows:
• $150,000 for Library Security Improvements
• $200,000 for Park Improvements Grant Matching
• $80,000 for the Milpitas Youth Force
Motion/Second: Councilmember Chua / Vice Mayor Barbadillo Motion carried by the following:
AYES: Mayor Montano, Vice Mayor Barbadillo, Councilmember Chua, Councilmember Lam, Councilmember Lien
NOES: None
ANNOUNCEMENTS AND FUTURE AGENDA ITEMS
Assistant City Manager Cano announced the remaining schedule for Tillering with Santa events by the Fire Department for December 17.
Councilmember Chua acknowledged Voltaire Montemayor's birthday on December 10, and led the Council in wishing him a happy birthday.
Councilmember Lien requested consideration of an "Adopt a Drain" program to engage community members and students, which received unanimous consensus from the Council.
ADJOURNMENT
Mayor Montano adjourned the meeting at 9:51 PM.
Draft meeting minutes submitted by City Clerk, Suzanne Guzzetta
TENTATIVE CITY COUNCIL AGENDA ITEM LIST
as of 1/9/2026
January 20, 2026 – Regular Meeting (7:00 PM)
CLOSED SESSION
INVOCATION (Councilmember Lam)
PRESENTATION
CONSENT CALENDAR
1. Receive City Council calendar for January and February 2026 (City Clerk)
2. Approve City Council Meeting minutes of January 13, 2026 (City Clerk)
3. Preview list of items for February 3, 2026 (City Clerk)
4. Councilmember Request List (City Clerk)
5. Commission Appointments (City Clerk)
6. Authority to Proceed with State Disability Insurance for ProTech Members (Human Resources)
7. One-Year Continuation of Library Security Services (Public Works)
8. Architectural and Engineering Services Agreements (Public Works)
9. Initial Acceptance of Holiday Inn and Springhill Suites Project (Public Works / Engineering)
PUBLIC HEARINGS
10. Community Development Bloc Grant FY 26-27 Application Review (Housing)
COMMUNITY DEVELOPMENT
11. PLHA Funding Application for 2022 + 2023 (Housing)
MILPITAS CITY COUNCIL
AGENDA ITEM REQUESTS
OPEN ITEMS
Request
No. Topic Submitted by:
Date
Requested
STATUS and/or DATE scheduled on City
Council meeting agenda:
1 Consider an "Adopt a Drain" program to engage
community members and students Lien 12/16/2025
An update on this item will be included in the
next quarterly prioritization update.
2 Conduct a review of commission names to better
reflect their focus Montano 11/18/2025
An update on this item will be included in the
next quarterly prioritization update.
3 Review the Council prioritization process Chua 11/18/2025 An update on this item will be included in the
next quarterly prioritization update.
4 Look into the process of establishing a Friendship
City relationship Montano 11/18/2025
An update on this item will be included in the
next quarterly prioritization update.
5 Research how public funds could be used to
advertise local restaurants during the upcoming
Super Bowl Montano 11/18/2025
An update on this item will be included in the
next quarterly prioritization update.
6 Have a community forum on the Crown Castle
Small Cell towers. Montano 11/18/2025
An update on this item will be included in the
next quarterly prioritization update.
7 Install debrillators on city properties Barbadillo 10/28/2025 An update on this item will be included in the
next quarterly prioritization update.
8 Place a billboard at the Sport Center to inform the
community about events and activities Montano 10/21/2025 An update on this item will be included in the
next quarterly prioritization update.
9 Explore the creation of small parks in
neighborhoods without them Montano 10/21/2025
An update on this item will be included in the
next quarterly prioritization update.
ACTIVE ITEMS
Request
No. Topic Submitted by:
Date
Requested
STATUS and/or DATE scheduled on City
Council meeting agenda:
10 Increase the amount of funding for the ADU Permit
Subsidy Council 4/1/2025
An update on this item will be included in the
next quarterly prioritization update.
11 Council Special Events Fund to provide funding for
City Councilmembers to attend local, non-political,
events where their attendance is beneficial for the
City of Milpitas Montano/Chua 4/1/2025
An update on this item will be included in the
next quarterly prioritization update.
12 Add to the existing Strategic Land Acquisition
Revenue Reserve Council
An update on this item will be included in the
next quarterly prioritization update.
13 Storefront and Crime Prevention Initiative by
making funding available for businesses to focus
on public safety related physical improvements to
their storefronts. Montano
An update on this item will be included in the
next quarterly prioritization update.
14 Revisit the mural selection committee process to
make it more inclusive by involving all
commissioners in the Arts Commission Montano 8/19/2025
An update on this item will be included in the
next quarterly prioritization update.
15 Exapnd the Milpitas SMART program to include
service to the San Jose Airport Lam 8/12/2025
An update on this item will be included in the
next quarterly prioritization update.
16 Staff explore a program similar to San Leandro’s,
which provides Ring doorbell cameras to residents Chua 8/12/2025 An update on this item will be included in the
next quarterly prioritization update.
17 Develop a project management informational
memo. Barbadillo 4/1/2025
An update on this item will be included in the
next quarterly prioritization update.
18 Look into adding an entertainment zone to Main
Street. Montano 3/4/2025
An update on this item will be included in the
next quarterly prioritization update.
19 Staff provide a detailed analysis of overtime
expenditures by department. Barbadillo 3/4/2025
An update on this item will be included in the
next quarterly prioritization update.
20 Look into a policy to require a Super Majority vote
by Council for any deductions to budget reserves. Chua 2/18/2025 An update on this item will be included in the
next quarterly prioritization update.
21 Bring back a discussion regarding fentanyl-related
issues Barbadillo 2/18/2025
An update on this item will be included in the
next quarterly prioritization update.
22 Feasibility study regarding a police satellite office. Montano 2/18/2025 An update on this item will be included in the
next quarterly prioritization update.
23 Staff organize a job fair for City job openings Chua 11/19/2024 An update on this item will be included in the
next quarterly prioritization update.
NOTE: Deferred and Completed Items are not listed
MILPITAS CITY COUNCIL
AGENDA ITEM REQUESTS
24 Bring back a study or analysis of the permit
process Chua 11/19/2024
An update on this item will be included in the
next quarterly prioritization update.
25 Explore updating the city's business tax rate
schedule Chua 10/1/2024
An update on this item will be included in the
next quarterly prioritization update.
26 Explore funding options for new signage following
the decision to rename the Milpitas Library to the
Milpitas Jose Esteves Library Barbadillo 9/3/2024
An update on this item will be included in the
next quarterly prioritization update.
27 Look into adopting an ordinance similar to San
Jose allowing ADUs (Accessory Dwelling Units) to
have a separate title and be sold separately. Chua 8/13/2024 An update on this item will be included in the
next quarterly prioritization update.
28 Conduct a traffic study on Escuela Parkway to
address circulation concerns Montano 5/7/2024
An update on this item will be included in the
next quarterly prioritization update.
29 Explore the possibility of augmenting the Planning
Commission stipend Barbadillo 4/16/2024
An update on this item will be included in the
next quarterly prioritization update.
30 Consideration of the 20% Low Income Below
Market Rate Housing Montano 12/5/2023
An update on this item will be included in the
next quarterly prioritization update.
31 Referral for utility infrastructure cost on Main Street from Carlo to Corning Streets Montano 10/17/2023
An update on this item will be included in the
next quarterly prioritization update.
32 Main Street International Festival Lien 10/3/2023
An update on this item will be included in the
next quarterly prioritization update.
33 Pickleball Pilot Project Chua 2/28/2023
An update on this item will be included in the
next quarterly prioritization update.
34 Main Street Infrastructure Projects Montano 2/28/2023 An update on this item will be included in the
next quarterly prioritization update.
35 Main Street Flooding at Library Chua 2/28/2023
An update on this item will be included in the
next quarterly prioritization update.
36 Have the City look into the possibility of a Citywide Senior Discount Barbadillo 2/7/2023
An update on this item will be included in the
next quarterly prioritization update.
37 Quarterly or Monthly crime statistics on Homekey
Project Chua 6/7/2022
An update on this item will be included in the
next quarterly prioritization update.
38 Evaluate reopening the childcare center with a non-
profit organization running the center Montano 2/1/2022 An update on this item will be included in the
next quarterly prioritization update.
39 Staff to look into mural Art on Great Mall Parkway
on the VTA owned Light rail pillars Montano 11/16/2021
An update on this item will be included in the
next quarterly prioritization update.
40 Consider Community Museum and Park on Main
St. Phan 8/20/2019
Discussions with the property owner of this
site are ongoing and staff is tracking
returning to council by June 2025 with an
update.
ACTIVE ITEMS
Request
No. Topic Submitted by:
Date
Requested
STATUS and/or DATE scheduled on City
Council meeting agenda:
NOTE: Deferred and Completed Items are not listed
CITY OF MILPITAS
AGENDA REPORT
(AR)
Item Title: Consider Recommendations from Mayor Montano for Appointments to Rent Review Board (Contact: Suzanne Guzzetta, City Clerk, 408-586-3001) Category: Consent Calendar-Leadership and Support Services Meeting Date: 1/13/2026
Recommendation: Receive Mayor Montano's recommendations and approve and confirm recommendations for appointments to the Rent Review Board
BACKGROUND:
On October 15, 2019, the City of Milpitas adopted Chapters 2 and 3 of Title XII of the Milpitas Municipal Code related to the adoption of a rent review program and tenant protections. In particular, the ordinance outlines a process for landlords to notify tenants of rent increases and the establishment of a Rent Review Board that would hold a hearing on the potential rent increase, upon request, if the mediation process between the tenant and the landlord is not successful, per Section XII-2-9.01 of the Municipal Code,
The Rent Review Board's decision is non-binding on the parties and the rent increase shall be effective as provided in the notice of rent increase but subject to subsection XII-2-7.06 (a landlord's failure to appear renders the increase void), unless the parties enter into an agreement pursuant to subsection XII-2-9.00 of this Chapter.
On November 3, 2025, the City received a request for a Rent Review Board hearing from a tenant. Per the Municipal Code, a Rent Review Board hearing must be held within 45 days of this request (by December 19, 2025). Since the adoption of the rent review program ordinance in 2019, staff is not aware of a prior request for review that has been made to the Rent Review Board, and the seats of the Rent Review Board are not currently filled.
Per Section XII-2-5.00 of the Milpitas Municipal Code, the Board must consist of five (5) members and one (1) alternative as follows:
• Two members shall be landlord representatives who own rental units in the City of Milpitas; • Two members shall be tenant representatives who are residents of the City of Milpitas; and • One member and one alternate shall be a neutral third party who is a resident of the City of Milpitas and is neither a landlord nor a tenant;
• The Rent Review Board members shall have a demonstrated interest in the issues considered by the Rent Review Board and will be selected based on their relevant experience.
Per Section XII-2-5.01 of the Municipal Code, the Rent Review Board is intended to evaluate the reasonableness of proposed rent increases at the request of either a landlord or tenant pursuant to the rent review program set forth in the Municipal Code.
Per Section XII-2-5.02 of the Municipal Code, members of the Rent Review Board generally serve four (4) year terms, with one of the landlord seats and one of the tenant seats serving an original two (2 year term such that term of appointment for members are staggered.
Per Government Code 40605, in a general law city where the office of Mayor is an elective office, the Mayor, with the approval of the City Council, shall make all appointments to boards, commissions, and committees unless otherwise specifically provided by statute.
The Milpitas Commissioner Handbook states that all Commissioners are expected to attend all regular meetings. Commissioners absent from three or more meetings in a year may be subject to removal from the Commission.
ANALYSIS:
The Mayor is expected to transmit their recommended appointments to the Rental Review Board prior to the City Council meeting. Due to timing, final names may not be available by the distribution of this agenda packet.
If not, they will distributed separately prior to the meeting. Appointments will include:
• Landlord Representatives:
• Tenant Representatives:
• Neutral Third Pary Representative:
• Neutral Third Pary Representative (alternate):
FISCAL IMPACT:
There is no fiscal impact associated with this item.
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):
The action is an organizational or administrative activity of the City government that will not result in direct or indirect physical changes in the environment and is not a project pursuant to Cal. Code of Regs., tit. 14, § 15378.
ATTACHMENTS:
None
CITY OF MILPITAS
AGENDA REPORT
(AR)
Item Title: Approve Report of Actions Taken by the City Manager During the City Council and City of Milpitas Housing Authority Winter Recess from December 16, 2025 through January 13, 2026 (Staff Contact: Matt Cano Assistant City Manager, 408-586-3012)
Category: Consent Calendar-Leadership and Support Services
Meeting Date: 1/13/2026
Recommendation: Approve report of actions taken by the City Manager during the City Council and City of Milpitas Housing Authority Winter Recess from December 16, 2025 through January 13, 2026.
BACKGROUND:
On December 2, 2025, the City Council and the City of Milpitas Housing Authority adopted a resolution delegating authority to the City Manager, or their designee, to approve and execute project-related documents, including contract documents, and urgent administrative items during the City Council and City of Milpitas Housing Authority winter recess from after the last City Council meeting held on December 16, 2025 through January 13, 2026.
ANALYSIS:
The purpose of this agenda report is to provide the City Council and City of Milpitas Housing Authority with a list of items upon which this authority was used.
There were no items during the Winter Recess from December 16, 2025 through January 13, 2026 upon which this authority was used.
POLICY ALTERNATIVE(S):
Not Applicable
FISCAL IMPACT:
No fiscal impact as no actions were taken.
California Environmental Quality Act (CEQA):
CEQA does not apply to actions that the City does not take pursuant to Cal. Code Regs., tit. 14, § 15270. 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.
Attachment(s):
None
CITY OF MILPITAS
AGENDA REPORT
(AR)
Item Title: Authorize and Approve Travel Request for Mayor Carmen Montano to Washington, D.C. (Staff Contact: Matt Cano, Assistant City Manager, 408-586- 3012)
Category: Consent Calendar-Leadership and Support Services Meeting Date: 1/13/2026
Recommendation: Authorize and approve the travel to Washington, D.C., for Mayor Carmen Montano to attend the 94th Winter Meeting of the United States Conference of Mayors to be held on January 28-30, 2026, for a combined estimated total amount of $4,500 budgeted under the Individual Elected Official allocation for Conferences/Meetings/Trainings.
BACKGROUND:
The 94th Winter Meeting of the United States Conference of Mayors to be held on January 28-30, 2026. This conference brings together mayors and city officials to collaborate on issues affecting cities, share best practices, and engage with federal policymakers on municipal priorities, including housing, public safety, infrastructure, and economic development. Included in this agenda packet is the preliminary agenda for this academy as Attachment A.
ANALYSIS:
The City of Milpitas Travel and Expense Policy require the City Council to approve all travel for the elected officials and City Manager. Council approval of the Washington, D.C. travel request will allow Mayor Carmen Montano to gain additional knowledge from mayors and city officials nationwide and share that information with the City Council and staff. Continued conference participation and attendance also ensure that the Milpitas community is fully represented at the regional, state, and national levels.
POLICY ALTERNATIVE(S):
Not Applicable
FISCAL IMPACT:
The estimated individual expense for the Washington, D.C., 94th Winter Meeting of the United States Conference of Mayors, including the registration fee, airfare, lodging, meals, mileage, and incidental reimbursements, are $4,500.
To date, Mayor Carmen Montano has a balance of $5,114 in her Individual Elected Official allocation of $10,000 for Conferences/Meetings/Memberships, which is sufficient to cover the estimated conference cost of $4,500. A balance of $590 remains in Mayor Montano’s account if this action is taken by City Council.
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):
The action is an organizational or administrative activity of the City government that will not result in direct or indirect physical changes in the environment and is not a project pursuant to Cal. Code of Regs., tit. 14, § 15378.
ATTACHMENT(S):
(a) The 94th Winter Meeting of the United States Conference of Mayors Draft Agenda (b) Council Conferences Budget Tracking
ATTACHMENT B
estimates only
estimates only
Council Conferences/Trainings FY 25-26 Budget Tracking Sheet
Mayor Montano
Training/Travel Event FY25-26 Amount
Expended/Estimates
Total Remaining Balance
$ 9,409.20 $ 590.80
1 42nd Annual NALEO Conference $1,490.99
2 2025 Cal Cities $3,094.88
3 Cities Association of Santa Clara County Annual Holiday Party Ticket $75.00 4 Mission College Gala $150.00
5 Mayors Academy Registration Cancelation Fee $75.00
4 USCM 94th Winter Meeting: Jan 28-30, 2026 $4,500.00
Vice Mayor Barbadillo
Training/Travel Event FY25-26 Amount
Expended/Estimates
Total Remaining Balance
$ 50.00 $ 9,950.00
1 Cities Association of SCC Annual Holiday Dinner: Dec 8, 2024 $50.00
Councilmember Chua
Training/Travel Event FY25-26 Amount
Expended/Estimates
Total Remaining Balance
$ 0 $10,000.00
Councilmember Lien
Training/Travel Event FY25-26 Amount
Expended/Estimates
Total Remaining Balance
$ 2,737.33 $ 7,262.67
1 2025 Cal Cities $2,662.33
2 Cities Association of SCC Annual Holiday Dinner 2025 $75.00
Councilmember Lam
Training/Travel Event FY25-26 Amount
Expended/Estimates
Total Remaining Balance
$4,608.52 $5,391.48
1 2025 Cal Cities $2,833.17
2 Cities Association of SCC Annual Holiday Dinner 2025 $75.00 3 Mayor and Councilmember Academy – Jan 21-23, 2026 $1,600.00
CITY OF MILPITAS
AGENDA REPORT
(AR)
Item Title: Authorize the Assistant City Manager to Release the Option to Purchase the Affordable Housing Unit (Lot 20, Building 2) at 2001 Tarob Court, Accept the Net Proceeds from the Sale, and Execute the Necessary Documents (Staff Contact: Matt Cano, Assistant City Manager, 408-586-3012) Category: Consent Calendar-Community Development
Meeting Date: 1/13/2026
Recommendation: Authorize the Assistant City Manager to release the option to purchase the Affordable Housing Unit (Lot 20, Building 2) at 2001 Tarob Court, accept from the Developer the net proceeds from the sale of the unit in accordance with the Affordable Housing Agreement, and execute the necessary documents.
BACKGROUND:
Affordable Housing Ordinance
The City's Affordable Housing Ordinance ("AHO") requires developers to provide affordable units within any project that includes ten (10) or more residential units. Fifteen percent (15%) of housing units within applicable projects must be affordable units set at a defined Affordable Sales Price. For rental projects, units must be rented to very low or low-income households. For ownership projects, units must be sold to very low, low, or moderate-income households. The AHO includes provisions that address the design, location, and construction of affordable housing units. Alternative compliance options, such as off-site construction, land dedication, or inclusionary housing in-lieu fees, are available with City Council approval.
Prior to approval of occupancy of a residential project, developers must enter into an Affordable Housing Agreement ("Agreement") with the City to ensure compliance with the AHO. The Agreement addresses the number, size, and location of affordable units within the project, the Affordable Sales Price for the units, long- term rental/resale/occupancy restrictions, recording of affordable housing covenants, and other related requirements.
The Agreement also defines the required marketing period for the affordable units, with provisions if the developer cannot sell any of these units during the specified timeframe. Options include allowing the City to either: 1) purchase the affordable unit at the Affordable Sales Price, or 2) release the unit with the City receiving the net proceeds based on the difference between the market-rate sales price and the Affordable Sales Price, less real estate transaction expenses.
Current Inventory of Affordable Housing Units
The City currently oversees an inventory of approximately 283 affordable or below-market-rate (BMR) ownership units where the initial sale price and future resale of the units are restricted for at least 45 years.
The inventory includes 36 very-low, 53 low, and 194 moderate-income units. The table below lists the current residential projects with affordable housing units.
Inventory of Affordable Housing Units
Developer Location Total Units Affordable/BMR
Units
Summerfield Homes Summerfield Drive 110 22
Parc Metro S. Main Street & E. Curtis Avenue 382 28
Parc Place E. Curtis Avenue & Hammond Way 358 58
Luna at Terra Serena Abel Street (north of Curtis Avenue) 25 25 Paragon S. Main Street & Ede Lane 147 29
Terra Serena Abel Street (north of Curtis Avenue) 683 63 Centria East Great Mall Parkway & Main Street 137 26
Town Center Villas Shaughnessy Drive & Belshaw Drive 65 16 Coyote Creek Murphy Ranch Road & Nestwood Way 134 7
Robsen Homes Dogwood Street & N. Park Victoria 38 4
KB Homes Tarob Court 32 5
Total 2,111 283
Lumen at Tarob Court Affordable Housing Agreement
On January 22, 2022, the City Council approved a 32-unit ownership housing project, entitled "Lumen at Tarob Court," located at 2001 Tarob Court. The project consists of stacked townhomes/condominiums in two four- story buildings. Subsequently, on August 26, 2024, the City entered into an Agreement (Attachment A) with KB Homes of South Bay, Inc. ("Developer") to provide five three-bedroom, moderate-income units distributed between the two buildings.
Approval of occupancy was granted for the housing development in Fall/Winter 2024, and marketing of the units commenced at approximately the same time. Four of the five affordable units have been sold to qualifying moderate-income households at an Affordable Sales Price substantially below the market-rate price of approximately $1.2 million. Attachment B shows the site plan for the development and the location of the five affordable units. All the units contain three bedrooms and two bathrooms with over 1,400 square feet of living space and an enclosed two-car tandem garage. Attachment B also lists the Affordable Sales Price for the units, when the four units were sold, and the household size of the buyers.
The affordable units at the Lumen project have been challenging to market. Currently, all but one unit have been sold, marking the near completion of home sales for the development. Successfully marketing the affordable units requires a concerted effort by the KB Homes sales team, with significant support and numerous referrals from HouseKeys, the program manager for the City's affordable housing ownership portfolio. With the KB Homes sales team no longer on site, it has become increasingly difficult to attract potential buyers and promote the final available unit.
Additionally, the marketability of the units was hindered by the unconventional floor plans and interlocking configurations, where living spaces from one or more units were sometimes situated above others. Attachment C show the floor plan for the remaining affordable unit on Lot 20 (365 Lundy Place). The floor plan is a “Unit 2” and is highlighted in yellow. The unit contains 1,414 square feet of living space: the first floor (ground level) contains an entry area (173 square feet) with access to the tandem garage; the second floor contains the primary living space (1,241 square feet) with a family room, kitchen, three bedrooms, and two baths, and a small deck. Lot 20 is in a four-story building and is sandwiched between entry staircases that lead to two units located directly above Lot 20. These two units occupy the third and fourth floors and are shown as “Units 5 and 7” on the second page of Attachment C. To date, the City has pre-qualified multiple potential buyers for this unit, but following tour of the unit, potential buyers have voiced concerns about buying a “townhome” with units above them and have not completed the sale.
The challenge of marketing the affordable units is evident in the extensive outreach efforts conducted by Housekeys during the past year. HouseKeys ran a series of marketing campaigns, including 24 invites and 2 open houses. This drove an initial 178 applicants to the project and all 5 units went into contract. After the buyer for Lot 20 cancelled their contract. Finding a buyer for this last remaining unit has been particularly
challenging despite additional marketing. HouseKeys ran a second set of campaigns to attract another 198 applicants. 64 applicants cancelled with the majority visiting the property and deciding, after viewing it, that they did not want to move forward.
ANALYSIS:
The Developer has submitted a letter dated November 17, 2025 (Attachment D), offering to sell the remaining unsold affordable unit (Lot 20, Building 2) to the City at the Affordable Sales Price as contemplated by Section
2.5 of the Agreement, which describes the terms for marketing the affordable units.
In accordance with Section 2.5(a) of the Agreement, if an affordable unit remains unsold one hundred fifty (150) calendar days after the date a Certificate of Occupancy was issued, the City can exercise an option to purchase the unit. The City has sixty (60) calendar days (in this case, until January 16, 2026) to notify the Developer if it will purchase the unit. If the City chooses to purchase, the Developer must convey the property to the City within thirty (30) days of the City's written notice. The City would need to allocate $716,361 to acquire the affordable unit at the Affordable Sales Price, plus an allowance for real estate and administrative expenses.
Alternatively, in accordance with Section 2.5(c) of the Agreement, the City can decline to purchase the affordable unit. The Developer would then have the right to sell the unit on the open market without affordability restrictions, and it would be considered a "Released Unit." Upon sale and close of escrow on the Released Unit, the Developer would remit to the City the net sale proceeds based on the difference between the eventual market-rate sales price and the Affordable Sales Price, less reasonable real estate transaction expenses.
When the loss of an affordable unit may be imminent, the usual preference of the City is to preserve the unit by exercising its option to purchase and selling it to an eligible affordable household. A recent example is 1377 Coyote Creek Way, where the Housing Authority authorized in June 2025 the purchase of a townhome to allow HouseKeys to resolve outstanding financing issues and find an eligible buyer. Sale of this townhome is still pending resolution of title and construction issues. Additionally, in November 2025, the Housing Authority authorized a possible option to purchase a townhome at 173 Parc Place Drive, if necessary, to avoid a potential foreclosure action.
In many instances, staff would recommend purchasing the unit to retain it in the City’s portfolio. However, after conferring with HouseKeys staff and understanding the extensive outreach conducted to date to fine an eligible buyer, it is evident that considerable additional effort would be required to secure an eligible buyer if the City exercises its option to acquire the unit. The unit could be on the market for an indefinite period, and a price concession or other incentives may need to be considered. Although renting could be an interim solution, managing a single rental unit in an ownership project is not ideal from a property management perspective and raises potential future relocation issues. Other concerns include limited funds to protect all housing assets, a growing inventory of assets to protect, existing outlay to protect other potentially more valuable assets, and significant uncertainty in the duration that the City may have to carry the cost of purchase before reselling this unit.
Given the marketing challenges, staff recommends that the City Council decline to acquire the affordable unit in this instance. Instead, staff recommends releasing the unit from affordability restrictions and accepting the net sale proceeds in accordance with Section 2.5(c) of the Agreement. While the sales price is unknown and will be driven by the market, the estimated assessed value is $1.2 million. Deducting real estate transaction expenses, the City might receive up to approximately $450,000 in net proceeds upon sale of the unit by the Developer, with the maximum amount assuming it can be sold at the assessed value. These proceeds would be deposited in the City’s Affordable Housing Fund (AHF).
POLICY ALTERNATIVE:
Alternative 1: Direct the purchase of the affordable unit and allocate $716,361 (Affordable Sales Price for moderate-income unit) and authorize Housekeys to be the City’s agent for reselling the property. In accordance with the City’s current contract and fee schedule with Housekeys, a six percent commission or maximum $36,000 would be charged for this service upon sale of the unit. An additional $10,000 allowance is suggested to cover additional real estate and administrative expenses as well as ongoing incidental costs such
as homeowner association dues. If Alternative 1 is preferred, it is suggested that that City Council allocate up to $800,000 from the AHF for acquiring and reselling the property.
Pros: An affordable moderate-income ownership unit would be preserved. The City would eventually recover most of the acquisition cost. If after an additional marketing effort, an eligible buyer cannot be secured, the City could decide to relinquish the affordable unit and sell it at the market price and replenish the AHF with the proceeds. This backup option would be similar to the City releasing the unit to KB Homes for sale, except that the City would incur added costs for keeping the affordable unit on the market for an extended period, and the added costs may or may not be reimbursed.
Cons: The City would assume responsibility for marketing and selling the unit. it is uncertain when it could be sold to an eligible buyer. After a year of concerted marketing without success, it may be appropriate to release the unit at this time and reserve the net proceeds for other affordable housing projects and programs.
Reason for Not Recommending: The unit could remain on the market for many more months. A substantial amount of the Affordable Housing Fund would be expended and not replenished until the unit is resold. In the interim, potential funding for other AHF activities might have to be delayed or alternative funding sources must be identified. Additional costs beyond real estate transaction and administrative expenses might also be required, such as financial incentives or price concessions. For instance, the City could consider reducing the price and setting it at the Affordable Sales Price for a low-income household. This option would align with the City’s affordable housing goals, although the City would essentially be subsidizing the sale of the unit since it would be purchased at the moderate-income Affordable Sales Price.
PROJECT SCHEDULE/KEY MILESTONES:
If the City Council approves the release of the affordable unit, staff will provide a written notice to KB Homes by January 16, 2026. The City would receive the net sale proceeds once the unit is sold by the Developer, which is uncertain at this time.
If the City Council directs Alternative 1 to purchase the unit, staff will inform the Developer accordingly to process the sales transaction and will work with HouseKeys to continue to market the unit to an eligible buyer.
FISCAL IMPACT:
If the affordable unit is released, upon close of escrow on the sale of the unit by the Developer, the net sale proceeds would be submitted to the City in accordance with the Agreement. This sum would be deposited in the AHF to support affordable housing programs and projects as directed by the City Council.
If Alternative 1 is selected, up to $800,000 would be allocated from the AHF to purchase the affordable unit and to cover real estate and incidental property expenses. Upon resale of the unit, the net sales proceeds would be deposited back into the AHF.
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 and purchase of an existing residential structure, involving negligible or no expansion of existing or former use, and is exempt from CEQA pursuant to Cal. Code Regs., tit. 14, § 15301.
ATTACHMENTS:
(a) Affordable Housing Agreement for Lumen at Tarob Court, August 26, 2024 (b) Lumen at Tarob Court Site Plan
(c) Lot 20 Floor Plan
(d) KB Homes Notice of Offer to Sell Affordable Unit to City, November 17, 2025
ATTACHMENT B
Lumen at Tarob Court
2001 Tarob Court
Site Plan
(Note: Depicts floor area of first level of units only; upper floor area varies depending on the floor plan of unit)
TAROB COURT LUNDY PLACE
Affordable Units
Unit Address Plan
Unit
Bedrooms/
Baths
Living
Area
(sf)
Date Sold Affordable
Sales Price
Buyer
HH
Size
Lot 20
Building 2
365 Lundy
Place 2R 3/2 1,414 Unsold $716,361 _
Lot 26
Building 2
377 Lundy
Place 2 3/2 1,414 May 2,
2025 $746,045 1
Lot 29
Building 2
383 Lundy
Place 2 3/2 1,414 May 1,
2025 $746,045 3
Lot 2
Building 1
2047 Lundy
Place 4 3/2 1,430 February
3, 2025 $746,045 3
Lot 13
Building 1
2069 Lundy
Place 2R 3/2 1,414 April 4,
2025 $746,079 4
November 17, 2025
VIA EMAIL AND OVERNIGHT MAIL
City of Milpitas
455 East Calaveras Boulevard
Milpitas, CA 95035
Attention: Deanna Santana, City Manager
Email: [email protected]
City of Milpitas
455 East Calaveras Boulevard
Milpitas, CA 95035
Attention: Matt Cano, Asst. City Manager
Email: [email protected]
Re: Lot 20 at Lumen at Tarob Court (Milpitas) – Affordable Housing Agreement (Lumen at Tarob Court by KB Home) (“ Agreement”) by and between the City of Milpitas (the “City”) and KB Home South Bay Inc., a California corporation (“Developer”) dated August 26, 2024, and recorded in the Official Records of Santa Clara County on August 30, 2024, as Document Number 25692509. Capitalized terms not otherwise defined herein shall have the meaning given them in the Agreement.
Dear Ms. Santana and Mr. Cano:
This letter serves as Developer’s notice under Section 2.5 of the Agreement that, despite sustained marketing efforts in accordance with Section 2.4 of the Agreement, the Affordable Unit located at Lot 20 of the Lumen at Tarob Court project has remained unsold for more than one hundred fifty (150) days following issuance of its Certificate of Occupancy on October 18, 2024. Accordingly, the 150- day marketing period concluded on March 17, 2025.
In accordance with the terms of the Agreement, the Developer hereby offers to sell the remaining Affordable Unit (Lot 20) to the City at the Affordable Sales Price. The Affordable Unit would be conveyed under the same general terms applicable to a sale to an Eligible Purchaser . Pursuant to Section 2.5(a) of the Agreement, the Affordable Unit will be transferred to the City by grant deed, free and clear of monetary liens other than standard permitted exceptions such as non -delinquent taxes, assessments, and matters of record. Closing will occur within thirty (30) days after the City’s written election to purchase, with escrow and title services handled through standard residential closing procedures. Developer will provide the limited warranty and homeowner materials typically provided to initial purchasers; otherwise, the Unit will be conveyed to the City in its as-is condition as of the close of escrow, consistent with the Agreement.
Under Section 2.5(b) of the Agreement, the City has sixty (60) calendar days from receipt of this notice to notify Developer in writing whether it elects to purchase the Unit at the Affordable Sales Price. If the City elects to purchase, the parties will proceed to closing on the terms described above . If the City does not elect to purchase the Unit within the 60-day period, then pursuant to the Agreement, the Unit will automatically become a Released Unit, and Developer may sell the Unit on the open marke t without affordability restrictions. In that event, Developer will pay to the City any difference between the Affordable Sales Price and the net market sale price, calculated in accordance with the Agreement.
Please confirm receipt of this notice. Should you require further information or wish to discuss the offer, please do not hesitate to contact me.
Sincerely,
Evelyn Jones
Regional Counsel
KB Home
5000 Executive Parkway, Suite 125
San Ramon, CA 94583
Tel: (925) 983-4519
Email: [email protected]
cc: Oren Hershkovich ([email protected])
Kerry Medellin ([email protected])
Bryon Lehl ([email protected])
CITY OF MILPITAS
AGENDA REPORT
(AR)
Item Title: Authorize the Assistant City Manager, or Designee, to Negotiate and Execute an Amendment to the Agreement with Harris & Associates, Inc. for a Transit Area Development Impact Fee Nexus Fee and Community Facilities District Nexus Study (Staff Contact: Luz Cofresí-Howe, Finance Director, 408-586-3111; and Jay Lee, Planning Director, 408-586-3077)
Category: Consent Calendar-Community Services and Sustainable Infrastructure Meeting Date: 1/13/2026
Recommendation: Authorize the Assistant City Manager, or designee, to negotiate and execute an amendment to the Professional Services Agreement with Harris & Associates, Inc. for a Transit Area Development Impact Fee (TADIF) Nexus Fee and Community Facilities District (CFD) Nexus Study to include: (1) retroactively extend the Agreement through December 31, 2026; (2) add $5,100 for a revised maximum compensation of $105,085; (3) revise Exhibit A, Scope of Services, to add additional services; (4) revise Exhibit B, Schedule of Charges/Payments, to reflect payments for additional services; and (5) revise Exhibit C-4, Activity Schedule, to reflect updated project timeline.
BACKGROUND:
A development impact fee, in this case the Transit Area Development Impact Fee (TADIF), is allowed by State law (California Assembly Bill 1600, et. al). Through this fee, local agencies may fairly and proportionally cover some or all of the costs of infrastructure that support the proposed development expansion. Generally, this results in a savings for the General Fund and other resources that might pay for this infrastructure if development is allowed without imposing an impact fee. The City initially adopted an impact fee for the original Plan area in 2008 through adoption of the Transit Area Specific Plan (TASP), the predecessor to the current Metro Plan.
On February 7, 2023 the City adopted the current Milpitas Metro Specific Plan which increased the plan area from 437 to 510 acres and substantially increased the development scenario for a number of new infrastructures needed to support the increase in resident and worker populations. Given this expansion and the length of time since the last evaluation of proportional responsibility for funding the current and future infrastructure needs, it was determined that a new Nexus Study was required to analyze and update the impact fees applied to new development within the Metro plan area.
On July 17, 2023, the City executed a Professional Services Agreement with Harris & Associates, Inc. to conduct a Transit Area Development Impact Fee (TADIF) Nexus Fee and Community Facilities District (CFD) Nexus Study for a maximum compensation of $75,000 and a term period of July 17, 2023 through December 31, 2023. The scope of services included verifying infrastructure projects, developing the fee methodology and calculations, conducting a related CFD analysis, completing the Nexus Study, and attending public meetings.
Since then, the Agreement has been amended four times to add additional compensation and scope of work as well as extend the term. The Agreement expired December 31, 2025 with a maximum compensation of $99,985.
ANALYSIS:
The Nexus Study is almost complete, but additional time, funds, and services are required to address additional items such as unresolved and evolving data issues, additional City review cycles, new legislative requirements, updated land-use information, and reviews by the Building Industry Association (BIA), interested developers, and the public prior to bringing the Nexus Study and fee resolution to City Council for
consideration, which is currently anticipated in early 2026.
Staff requests City Council approval to amend the Agreement pursuant to Milpitas Municipal Code I-2-3.13- 2(b) (Contracting for Consultants), which requires City Council approval if the consultant's total fee for materials and services under the contract exceed $100,000. The requested amendment would add the additional services required to complete the Nexus Study, increase the Agreement by $5,100, for a new not-to- exceed total of $105,085, and retroactively extend the term of the Agreement through December 31, 2026.
POLICY ALTERNATIVE(S):
Alternative 1: Do not approve staff’s request to amend the Agreement.
Pros: None.
Cons: Not approving the amendment will result in an incomplete study and may result in inappropriate fees applied to new development or no fees at all.
Reason for Not Recommending: Approval of the amendment will allow the City to continue utilizing the consultant for the remaining services required to fully complete the Nexus Study, including the new development scenario and the infrastructure proposal to support growth in the Metro area. The Nexus Study will adjust fees for new development to pay its fair share of remaining and new infrastructure projects servicing those developments. This would result in an incomplete study and potentially inappropriate fees applied to new development or no fees at all.
FISCAL IMPACT:
Currently, the TADIF Nexus Fee and CFD Nexus Study are funded by the Metro Impact Fee Study capital project (CP 3469). With a remaining uncommitted balance of $50,000 in this project, there are sufficient funds remaining to fund this contract amendment.
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):
The project does not allow new development and only applies and updates funding requirements. The project involves the establishment, modification, structuring, restructuring, or approval of rates, tolls, fares, and other charges the City for the purpose of (1) Meeting operating expenses, including employee wage rates and fringe benefits, (2) Purchasing or leasing supplies, equipment, or materials, (3) Meeting financial reserve needs and requirements, or (4) Obtaining funds for capital projects, necessary to maintain service within existing service areas. The project is exempt pursuant to Cal. Code Regs., tit. 14, § 15273. The action is a fiscal activity of the City government or an action to create a City government funding mechanism that does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment and is not a project pursuant to Cal. Code of Regs., tit. 14, § 15378.
ATTACHMENT(S):
N/A
Harris & Associates, Inc. 1 of 2
December 1, 2025
Matt Cano
Deputy City Manager/Acting City Engineer
City of Milpitas
1265 N. Milpitas Blvd.
Milpitas CA 95035
Re: Amendment No. 5 TADIF Nexus Fee and CFD Nexus Study Dear Matt:
We appreciate the opportunity to continue assisting the City of Milpitas (City) with the preparation of the Milpitas Metro Specific Plan: Transit Area Development Impact Fee (TADIF) TADIF Nexus Study and Community Facilities District (CFD) evaluation. Per our prior discussions regarding additional work related to the Nexus Study including additional meetings and extended City review time, the following outlines the changes to the scope and estimated fee to provide these additional services. The updated revised timeline to complete the project is included as well. This will be amendment three to the contract.
Project Understanding
Harris is currently under contract and has been wor king on the TADIF Nexus Study with the City. Harris has completed a public review draft of the Nexus Study following ex tensive review and meetings with City staff. Since that time, several factors have extended the project timeline and sign ificantly increased the level of effort required to complete the Nexus Study. These include: unresolved and evolving data issues, additional City review cycles, new legislat ive requirements, updated land use information, and the addition of i tems outside the original scope of work. In paralle l, multiple rounds of revisions to the CFD analysis and questions related to CFD feasibility, also outside the original scop e, have required substantial additional time and coordination.
Due to the extended project timeline, the need to p repare an additional revised draft of the Nexus Stu dy, expanded edits to the report, and continued work to refine both the fee a nalysis and CFD analysis, Harris is requesting an a mendment to the scope of work.
This amendment covers the additional project manage ment, meetings, coordination, research, and documen t revisions necessary to complete the updated Nexus Study. Harris is also re questing updated billing rates to reflect 2026 rates (a n approximate 3 percent CPI increase), as shown in the fee table below.
Scope of Service
The scope of service for the TADIF Nexus Study includes preparing a comprehensive Development Impact Fee Nexus Study that summarizes the fee update in a clear and organized format, including an executive summary and all required legal and technical documentation. Due to recent AB 602 legislation and the Sheetz court decision, proportionality requirements must now be demonstrated at a more detailed level within the Nexus Study. Initially, the methodology for residential land uses was expected to shift from a per-square-foot basis to a per-bedroom basis; however, after extensive research and evaluation of the available City data, Harris determined that the data does not support this approach. Reevaluating the methodology and incorporating updated analyses required additional time, meetings, and coordination not included in the original scope of work.
The original scope included six (6) meetings outside of public hearings. At the time of the previous am endment, Harris had attended approximately twenty (20) meetings. With the ongoing review of project costs, analysis of fee program f easibility, evaluation of City projects, and numerous discussions related to the C FD analysis, Harris has now attended over twenty-five (25) meetings to date.
Furthermore, there has been additional project mana gement coordination and CFD revisions as well as di scussions regarding the staff report and other items.
Accordingly, the additional scope of work request i ncludes:
Harris & Associates, Inc. 2 of 2
• Additional project management and coordination due to the extended schedule and expanded scope • Additional meetings with City staff to review the r evised Nexus Study and updated fee analysis • Preparation of an additional draft of the Nexus Stu dy reflecting responses to comments and updated fee scenarios • Additional meetings and discussions regarding the f easibility of the fee program and CFD analysis • Additional edits and revisions to the CFD analysis outside the original scope • Updates to the Nexus Study, fee comparison tables, and supporting documentation to reflect current TAD IF fees and changes resulting from the delay in fee adoption
Updated Timeline
Harris request a contract extension through June 30, 2026.
Proposed Fees
Based on the above scope of work our estimated fee for revising and finalizing the TADIF Nexus Study is below. Should additional work be required, or the timeline be extended, an amendment may be required.
Note: Hourly rates subject to annual increase based on CPI beginning January 1, 2027 and each year thereafter.
If approved, the total Harris budget would be $105,085 . This includes the original scope of work amount o f $74,135 and the previous amendment requested amounts of $19,830 and $6,020 as well as the current amendment of $5,035.
We are looking forward to continuing our relationship with the City of Milpitas. If you have any questions regarding this proposal, please call me at 916-306-5704, or email me at [email protected].
Sincerely,
Harris & Associates, Inc.
Megan Quinn, MBA
Director, Municipal and District Finance
(916) 306-5704
[email protected]
Project CFD
Manager Lead Total Harris Total Harris
$295/hr $260/hr $280/hr $180/hr $140/hr Estimated Estimat ed Hours Hours Hours Hours Hours Hours Fee
Task 1: Kick-off Meeting and Project Management 0 8 0 0 0 8 2,080 $ Task 2: Verify Infrastructure Projects 0 0 0 0 0 0 - $ Task 3: Develop Methodology and Calculate Fees 0 1 0 4 0 5 980 $ Task 4: CFD Analysis 0 1 1 0 0 2 540 $
Task 5: Nexus Study 0 3 0 4 0 7 1,500 $
Task 6: Public Meetings 0 0 0 0 0 0 - $
Task 7: Nexus Study 0 0 0 0 0 0 - $
Total 0 13 1 8 0 22 5,100
Note: Hourly rates subject to annual increase based on CPI beginning January 1, 2027 and each year th ereafter.
Harris & Associates Labor
Project
Director
Senior
Analyst
Project
Analyst
CITY OF MILPITAS
AGENDA REPORT
(AR)
Item Title: Accept the Additional FY 2025 Citizens’ Option for Public Safety (COPS) Grant for Front-Line Law Enforcement Services and Approve the Appropriation of Funds to the Police Department’s FY 2025-26 Operating Budget (Staff Contact:
Jared Hernandez, Chief of Police, 408-586-2406)
Category: Consent Calendar-Public Safety
Meeting Date: 1/13/2026
Recommendation: 1) Accept the additional FY 2025 Citizens’ Option for Public Safety (COPS) Grant in the amount of $128,220.02 to be spent in alignment with the City Council approved FY 2025 spending plan; and 2) Approve the appropriation of funds to the Police Department’s FY 2025-26 Operating Budget for front-line law enforcement services.
BACKGROUND:
The Citizens’ Option for Public Safety (COPS) program was originally adopted in Assembly Bill 3229 (Brulte) 1996 with funding from the state general fund. The COPS grant program provides funding for front-line law enforcement (municipal police, county sheriffs, and police protection districts); county jails; district attorneys for prosecution; and local juvenile justice programs (since FY 2001).
In FY 2001, the law was amended to provide a minimum front-line law enforcement allocation of $100,000 to any local agency receiving funding under the program. This funding must supplement existing services and may not be used to supplant any existing funding for law enforcement services.
The City of Milpitas’ FY 2025 COPS Grant award was $126,280. In November 2025, the City was awarded an additional $128,220.02 for the FY 2025 COPS Grant. The Police Department will utilize the previously approved COPS 2025 spending plan for this funding (Attachment A).
ANALYSIS:
The City of Milpitas is not required to provide matching funds. California Government Code section 30062 specifies these funds must be used exclusively for front-line law enforcement services. These funds shall be appropriated pursuant to a written request from the Chief of Police. The Milpitas Police Department has identified additional training, equipment, and services that can be purchased with this additional funding and will utilize the additional funding within the scope of the previously approved spending plan categories.
POLICY ALTERNATIVE(S):
Alternative 1: Refuse the additional FY 2025 COPS Grant funding.
Pros: There are no identified benefits to this alternative.
Cons: The Police Department would not be able to purchase the needed training and equipment, or the purchase of such would be delayed.
Reason for Not Recommending: The additional FY 2025 COPS award does not require matching funds nor are there any requirements that result in a negative impact to the City.
PROJECT SCHEDULE/KEY MILESTONES
Upon approval and appropriation, this funding will be utilized as soon as feasible and no later than the grant deadline of June 30, 2027.
BUDGET REFERENCE:
The table below identifies the fund and appropriation accounts to fund the actions recommended in this Agenda Report.
Fund Function Appropriations Account Revenue/Reserve Expense State Contributions - Police $128,220.02
Police - Equipment, Supplies,
261 –
Supplemental
Law
Enforcement
Services
712 -
Personnel
&
Training
and Training $128,220
$128,220.02 $128,220.02
FISCAL IMPACT:
The City would receive $128,220.02 in grant funding to be applied to the Supplemental Law Enforcement Services Fund. There is no match requirement or leveraging of funds required.
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):
This action is a fiscal or administrative activity of the City government that does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment and is not a project pursuant to Cal. Code of Regs., tit. 14, § 15378. 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 is 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) COPS 2025 Spending Plan (Council approved February 18, 2025)
MEMORANDUM
Milpitas Police Department
1275 N. Milpitas Blvd., Milpitas, CA 95035 www.ci.milpitas.ca.gov Superior Customer Service Open Communication Integrity and Accountability Trust and Respect Recognition and Celebration
DATE: February 18, 2025
TO: Honorable Mayor and City Council
THROUGH: Ned Thomas, City Manager
FROM: Jared Hernandez, Chief of Police
SUBJECT: FY 2025 Citizen Options for Public Safety (COPS) Grant
The City of Milpitas anticipates receiving FY 2025 Citizens Option for Public Safety (COPS) funds from the state pursuant to Government Code 30061-30063, in the amount of $126,280. These funds must be used to support front-line law enforcement services and must supplement and not supplant existing funding for front-line law enforcement services.
No City matching funds are required.
These funds shall be appropriated pursuant to written request from the Chief of Police of the law enforcement agency that provides police services for the city. The request shall specify the front-line law enforcement needs of the requesting entity including the personnel, equipment, and programs that are necessary to meet those needs.
Below are the recommended approximate expenditures for COPS grant monies for fiscal year 2025:
1. Community Engagement and Recruitment Supplies $22,000
2. Safety Equipment $52,000
3. Community Safety and Security Equipment $30,000
4. Training $11,280
5. Logistics and Technological Equipment $11,000
Total: $126,280
Details on these spending areas are as follows:
1. Community Engagement and Recruitment Supplies
Recruitment continues to be a priority in the Police Department; the department attends various recruitment events throughout the year where high-quality recruitment supplies and materials (banners, MPD swag, recruitment website, etc.) are essential in effectively attracting and engaging with potential job applicants. In addition, the Police Department hosts and participates in a variety of community events throughout the year to consistently build and maintain positive relationships with our community. For example, the Police Department conducts crime prevention presentations, produces
2 crime prevention media, and deploys equipment and technology to deter and prevent criminal activity. Therefore, the purchase of additional supplies, materials, and equipment is needed to continue to fulfill the department’s community engagement and recruitment efforts.
2. Safety Equipment
The purchase of equipment designed for rapid deployment in the field will protect officers and citizens during critical incidents. Protective equipment such as ballistic helmets will ensure officers are properly equipped and trained for potential critical and/or violent encounters.
3. Community Safety and Security Equipment
The Police Department’s existing stationary security camera system is aging and in need of software upgrade, to ensure functionality and higher quality results. Such equipment will ensure officers and detectives are properly equipped to maintain low response times to calls for service, preserve life, and protect public safety.
4. Training
Continuous employee training is critical to the success of the Police Department. T he purchase of in-person or virtual training, conferences, and/or new training software will aid department staff in maintaining high standards and equip them with the skills and knowledge needed to maintain and enhance operations . In addition, s uch training will enable the department to continue to meet state mandates.
5. Logistics and Technological Equipment
The Police Department routinely responds to various critical, emergency operations and investigates in-depth cases that require pertinent information be shared among department staff. The purchase of smart technology equipment will ensure department staff are properly equipped with reliable tools to collect, share, and preserve sensitive information effectively, efficiently, and securely.
RECOMMENDATION:
Allocate the 2025 COPS grant funds ($126,280) to the above program areas.
CITY OF MILPITAS
AGENDA REPORT
(AR)
Item Title: Accept the FY 2026 Citizens’ Option for Public Safety (COPS) for Front-Line Law Enforcement Services and Approve the Appropriation of Funds (Staff Contact: Jared Hernandez, Chief of Police, 408-586-2406) Category: Consent Calendar-Public Safety
Meeting Date: 1/13/2026
Recommendation: (1) Accept the FY 2026 Citizens’ Option for Public Safety (COPS) Grant in the Amount of $125,185.00 for Front-Line Law Enforcement Services; and (2) Approve the Appropriation of Funds in the Total Amount of $125,185 to the Police Department’s FY2025-26 Operating Budget.
BACKGROUND:
The Citizens’ Option for Public Safety (COPS) program was originally adopted in Assembly Bill 3229 (Brulte) 1996 with funding from the state general fund. The COPS grant program provides funding for front-line law enforcement (municipal police, county sheriffs, and police protection districts); county jails; district attorneys for prosecution; and local juvenile justice programs (since FY 2001).
In FY 2001, the law was amended to provide a minimum front-line law enforcement allocation of $100,000 to any local agency receiving funding under the program. This funding must supplement existing services and may not be used to supplant any existing funding for law enforcement services.
The City of Milpitas’ FY 2026 COPS Grant award is $125,185. The Police Department has proposed a grant funding spending plan, as outlined below.
ANALYSIS:
The City of Milpitas is not required to provide matching funds. California Government Code section 30062 specifies that these funds must be used exclusively for front line law enforcement services and shall be appropriated pursuant to a written request from the Chief of Police (included as Attachment A). The Milpitas Police Department recommends the following front-line municipal police services to be purchased with the FY 2026 COPS Grant:
1. Community Engagement and Recruitment Supplies
2. Safety Equipment
3. Community Safety and Security Equipment
4. Training Expenses
5. Logistics and Technological Equipment
POLICY ALTERNATIVE(S):
Alternative 1: Refuse the FY 2026 Citizen’s Option for Public Safety (COPS) grant award.
Pros: There are no identified benefits to this alternative.
Cons: The Police Department would not be able to purchase the needed equipment and training, or the purchase of the equipment/training would be delayed.
Reason for Not Recommending: The FY 2026 COPS grant award does not require matching funds nor are there any requirements that result in a negative impact.
PROJECT SCHEDULE/KEY MILESTONES
Upon approval and appropriation, this funding will be utilized as soon as feasible and no later than the grant deadline of June 30, 2028.
BUDGET REFERENCE:
The table below identifies the fund and appropriation accounts to fund the actions recommended in this Agenda Report.
Fund Function Appropriations Account Revenue/Reserve Expense State Contributions - Police $125,185
Police - Equipment, Supplies,
261 –
Supplemental
Law
Enforcement
Services
712 -
Personnel
&
Training
and Training $125,185
$125,185 $125,185
FISCAL IMPACT:
The City would receive $125,185 in grant funding to be applied to the Supplemental Law Enforcement Services Fund. There is no match requirement or leveraging of funds required.
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):
This action is a fiscal or administrative activity of the City government that does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment and is not a project pursuant to Cal. Code of Regs., tit. 14, § 15378. 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 is 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) COPS 2026 Spending Plan
MEMORANDUM
Milpitas Police Department
1275 N. Milpitas Blvd., Milpitas, CA 95035 www.milpitas.gov Superior Customer Service Open Communication Integrity and Accountability Trust and Respect Recognition and Celebration
DATE: January 13, 2026
TO: Honorable Mayor and City Council
THROUGH: Matt Cano, Acting City Manager
FROM: Jared Hernandez, Chief of Police
SUBJECT: FY 2026 Citizen Options for Public Safety (COPS) Grant
The City of Milpitas anticipates receiving FY 2026 Citizens Option for Public Safety (COPS) funds from the state pursuant to Government Code 30061-30063, in the amount of $125,185. These funds must be used to support front-line law enforcement services and must supplement and not supplant existing funding for front-line law enforcement services.
No City matching funds are required.
These funds shall be appropriated pursuant to written request from the Chief of Police of the law enforcement agency that provides police services for the city. The request shall specify the front-line law enforcement needs of the requesting entity including the personnel, equipment, and programs that are necessary to meet those needs.
Below are the recommended approximate expenditures for COPS grant monies for fiscal year 2026:
1. Community Engagement and Recruitment Supplies $20,000
2. Safety Equipment and Storage $30,000
3. Community Safety and Security Equipment $30,000
4. Training Expenses $25,000
5. Logistics and Technological Equipment $20,185
Total: $125,185
Details on these spending areas are as follows:
1. Community Engagement and Recruitment Supplies
The Police Department hosts and participates in community events and outreach throughout the year to consistently build and maintain positive relationships with our community, such as hosting crime prevention presentations, producing crime prevention media/materials, and deploying equipment and technology to deter and prevent criminal activity. In addition, recruitment continues to be a priority in the Police Department, thus these funds will also be utilized to purchase various recruitment supplies, materials, and event registrations that are essential in effectively attracting potential job applicants.
2 2. Safety Equipment
The purchase of safety and protective equipment designed for rapid deployment in the field will protect officers and citizens during critical incidents. In addition, the purchase and/or replacement of firearms, less-lethal devices, less-lethal ammunition, firearms accessories, and related safety equipment will maintain the firearm program inventory and ensure officers are equipped with appropriate equipment for de-escalation techniques.
3. Community Safety and Security Equipment
A police canine with basic and specialized training courses will be purchased, due to the upcoming retirement of one of the department’s existing police canines. Such equipment and resources will support the department’s canine unit and enhance public safety, providing the department with the ability to perform specialized public safety tasks, such as missing person tracking, narcotics detection, etc. that officers otherwise could not accomplish.
4. Training Expenses
Continuous employee training , above and beyond required courses, is critical to the success of the Police Department. T he purchase of in-person or virtual training and conferences, such as specialized training for the department’s polygraph unit, will aid in succession planning efforts and equip department staff with the skills and knowledge needed to maintain and enhance operations . In addition, s uch training will enable the department to continue to meet state mandates.
5. Logistics and Technological Equipment
The purchase of technological equipment, such as dispatch monitors, will ensure department staff are properly equipped with up-to-date and reliable tools to collect, share, and preserve sensitive information effectively, efficiently, and securely.
RECOMMENDATION:
Allocate the 2026 COPS grant funds ($125,185) to the above program areas.