Road to Hillview Avenue. In addition, the consultant will provide a planning feasibility study to define the scope of work to guide funding decisions for Phase 2 of sewer pipe segment repairs adjacent to Berryessa Creek from East Calaveras Blvd. to Ames Avenue in Valley Water property, anticipated for construction in 2028.
ANALYSIS:
In accordance with City Municipal Code I-2-3.10 - Request for Qualification (RFQa) Procedure, an RFQa was posted on the City’s eProcurement system, OpenGov Procurement on August 27, 2025, to establish a list of qualified design firms with expertise in providing planning, design, and construction services related to City utility infrastructure identified in the Capital Improvement Program.
Upon release, ninety-one (91) firms downloaded the RFQa document, and ten (10) design firms submitted proposal by the published closing date of October 2, 2025. Each proposal was evaluated and scored according to the criteria outlined in the solicitation, and seven (7) highest-ranked firms were added to the City’s On-Call Engineering Services for Utility Improvements (Attachment B).
Staff requested proposals from design firms on the On-Call list and received three (3) proposals. Staff determined HydroScience Engineers is the best value proposer in accordance with the evaluation criteria. In accordance with City Municipal Code I-2-3.13 – Contracting for Consultants, staff recommends that the City Council authorize the City Manager, or designee, to execute Design Service Agreement (DSA) with HydroScience Engineers in the amount not-to-exceed of $797,610 for planning, design, and construction support services as described in Exhibit A of the DSA (Attachment A).
PROJECT SCHEDULE/KEY MILESTONES
Upon City Council approval of the DSA, HydroScience Engineers, Inc. will start the design of the Projects in Summer 2026 and complete the design by Spring 2027. Construction is anticipated to start in Summer 2027 and be completed by Summer 2028.
POLICY ALTERNATIVE(S):
Alternative 1: Not approving the Design Service Agreement with HydroScience Engineers, Inc.
Pros: None
Cons: A denial would cause a delay in completing necessary repairs of at-risk sewer pipelines and replacement of undersized water pipelines, infrastructure that is crucial to meeting the City’s operational demands. A proactive approach to upsize pipelines and rehabilitate degraded sewer lines is key to safeguarding against unanticipated emergencies and shutdowns that can adversely impact the community and strain financial resources.
Reason for Not Recommending: The Project is critical to ensure the City maintains fire flow requirements per the State’s guidelines and that the sewer system is fully operational and working. Not addressing the repair or replacement of the water and sewer pipelines now could put the city’s infrastructure and residents at risk.
FISCAL IMPACT:
Adequate funds are available in CIP Nos. 6138 and 7150 and no additional funding appropriation is required.
As of March 17, 2026, the uncommitted balance of the Projects are as follows:
Project Number CIP 6138 CIP 7150
CIP Uncommitted Balance $265,000 $749,000
Design Service Agreement $244,811 $522,800
Remaining CIP Budget $20,189 $226,200
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):
The Project entails replacement or reconstruction of existing structures and facilities where the new structure will be located on the same site as the structure replaced and will have substantially the same purpose and capacity as the structure replaced and is exempt from CEQA pursuant to Cal. Code Regs., tit. 14, § 15302. A Notice of Exemption will be filed with the County of Santa Clara prior to the award of construction contract.
ATTACHMENT:
(a) Design Service Agreement
(b) On-call list for Utility Engineering Improvements
38077.00180\29175422.11 C2
1 CITY OF MILPITAS
DESIGN SERVICES AGREEMENT
CONTRACT NO.
1. PARTIES AND DATE.
This Agreement is made and entered into as ________________, 2026 by and between the City of Milpitas, a municipal corporation organized and operating under the laws of the State of California with its principal place of business at 455 E. Calaveras Boulevard, Milpitas, California 95035 (“City”), and HydroScience Engineers, Inc. a California corporation with its principal place of business at 10569 Old Placerville Road Sacramento, CA 95827 (hereinafter referred to as “ Designer”). City and Designer are sometimes individually referred to herein as “Party” and collectively as “Parties.”
2. RECITALS.
2.1 City. City is a municipal corporation organized under the laws of the State of California, with power to contract for services necessary to achieve its purpose.
2.2 Designer. Designer desires to perform and assume responsibility for the provision of certain professional design services required by the City on the terms and conditio ns set forth in this Agreement. Designer warrants that it is fully licensed, qualified, and willing to perform the services required by this Agreement; provided, however, that if Designer is a corporation or other organization, the Project Designer designated pursuant to Section 3.2, and not the Designer itself, shall be fully licensed to practice as an architect and/or engineer in the State of California.
2.3 Project. City desires to engage Designer to render such services for the Fire Flow and Sanitary Sewer Pipeline Improvements – Phase 1, CIP Nos. 7150 & 6138 ("Project") as set forth in this Agreement.
3. TERMS
3.1 Employment of Designer.
3.1.1 Scope of Services . Designer promises and agrees to furnish to City all labor, materials, tools, equipment, services, and incidental and customary work necessary to fully and adequately supply the professional design and related services necessary for the full and adequate completion of the Project consistent with the provisions of this Agreement (hereinaft er referred to as “Services”). The Services are more particularly described throughout this Agreement, including Exhibit “A” attached hereto and incorporated herein by reference. All Services shall be subject to, and performed in accordance with, this Agreement, any exhibits attached hereto and incorporated herein by reference, and all applicable local, state and federal laws, rules and regulations. All Services performed by Designer shall be subject to the sole and discretionary approval of the City, which approval shall not be unreasonably withheld.
3.1.2 Term.
The term of this Agreement shall be from May 1, 2026 to December 31, 2029 , unless earlier terminated as provided herein. The City reserves the right to review the Designer’s performance at the end of each year and cancel all or part of the Agreement.
38077.00180\29175422.11 C2
2 3.2 Project Designer; Key Personnel.
3.2.1 Project Designer. Designer shall name a specific individual to act as Project Designer, s ubject to the approval of City. Designer hereby designates Curtis Lam California Civil Engineer (License No. 59049) to act as the Project Designer for the Project. The Project Designer shall:
(1) maintain oversight of the Services; (2) have full authority to represent and act on behalf of the Designer for all purposes under this Agreement; (3) supervise and direct the Services using his or her best skill and attention; (4) be responsible for th e means, methods, techniques, sequences and procedures used for the Services; (5) adequately coordinate all portions of the Services; and (6) act as principal contact with City and all contractors, consultants, engineers and inspectors on the Project. Any change in the Project Designer shall be subject to the City’s prior written approval, which approval shall not be unreasonably withheld.
The new Project Designer shall be of at least equal competence as the prior Project Designer. In the event that City and Designer cannot agree as to the substitution of a new Project Designer, City shall be entitled to terminate this Agreement for cause.
3.2.2 Key Personnel. In addition to the Project Designer, Designer has represented to the City that certain additional key personnel, engineers and consultants will perform the Services under this Agreement. Should one or more of such personnel, engineers or consultants become unavailable, Designer may substitute others of at least equal competence upon written approval of the City. In the event that City and Designer cannot agree as to the substitution of key personnel, engineers or consultants, City shall be entitled to terminate this Agreement for cause. As discussed below, any personnel, engineers or consultants who fail or refuse to perform the Services in a manner acceptable to the City, or who are determined by the City to be uncooperative, incompetent, a threat to the adequate or timely compl etion of the Project or a threat to the safety of persons or property, shall be promptly removed from the Project by the Designer at the request of the City. The key additional personnel, engineers and consultants for performance of this Agreement are as follows: Mark Fernandez, Project Engineer
3.3 Hiring of Consultants and Personnel.
3.3.1 Right to Hire or Employ . Designer shall have the option, unless City objects in writing after notice, to employ at its expense architects, engineers, experts or other consultants qualified and licensed to render services in connection with the planning and/or administration of the Project, and to delegate to them such duties as Designer may delegate without relieving Designer from administrative or other responsibility under this Agreement. Designer shall be responsible for the coordination and cooperation of Designer’s architects, engineers, experts or other consultants. All consultants, including changes in consultants, shall be subject to approval by City in its sole and reasonable discretion. Designer shall notify City of the identity of all consul tants at least fourteen (14) days prior to their commencement of work to allow City to review their qualifications and approve to their participation on the Project in its sole and reasonable discretion.
3.3.2 Qualification and License. All architects, engineers, experts and other consultants retained by Designer in performance of this Agreement shall be qualified to perform the Services assigned to them, and shall be licensed to practice in their respective professions, where required by law.
3.3.3 Standards and Insurance. All architects, engineers, experts and other consultants hired by Designer shall be required to meet all of the same standards and insurance requirements set forth in this Agreement, unless other standards or requirements are approved by the City in writing. Unless changes are approved in writing by the City, Designer’s agreements with its consultants shall contain a provision making them subject to all provisions stipulated in this Agreement.
38077.00180\29175422.11 C2
3 3.3.4 Assignments or Staff Changes . Designer shall promptly obtain written City approval of any assignment, reassignment or replacement of such architects, engineers, experts and consultants, or of other staff changes of key per sonnel working on the Project. As provided in the Agreement, any changes in Designer’s consultants and key personnel shall be subject to approval by City.
3.3.5 Draftsman and Clerical Support. Draftsmen and clerical personnel shall be retained by Designer at Designer’s sole expense.
3.4 Standard of Care.
3.4.1 Standard of Care. Designer shall perform all Services under this Agreement in a skillful and competent manner, consistent with the standards generally recognized as being employed by professionals qualified to perform the Services in the same discipline in the State of California, and shall be responsible to City for damages sustained by the City and delays to the Project as specified in the indemnification provision of this Agreement. Without limiting the foregoing, Designer shall be fully responsible to the City for any increased costs incurred by the City as a result of any such delays in the design or construction of the Project. Designer represents and maintains that it is skilled in the professional calling nec essary to perform the Services. Designer warrants and represents that all of its employees, architects, engineers, experts and other consultants shall have sufficient skill and experience to perform the Services assigned to them. Finally, Designer represents that it, its employees, architects, engineers, experts and other consultants have all licenses, permits, qualifications and approvals of whatever nature that are legally required to perform the Services assigned to or rendered by them and that such licenses and approvals shall be maintained throughout the term of this Agreement. As provided for in the indemnification provisions of this Agreement, Designer shall perform, at its own cost and expense and without reimbursement from the City, any services necessary to correct errors or omissions which are caused by the Designer’s failure to comply with the standard of care provided for herein.
3.4.2 Performance of Employees. Any employee or consultant who is determined by the City to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project, a threat to the safety of persons or property, or any employee or consultant who fails or refuses to p erform the Services in a manner acceptable to the City, shall be promptly removed from the Project by the Designer and shall not be re-employed to perform any of the Services or to work on the Project.
3.5 Laws and Regulations.
3.5.1 Knowledge and Compliance. Designer shall keep itself fully informed of and in compliance with all applicable local, state and federal laws, rules and regulations in any manner affecting the performance of the Services or the Project, and shall give all notices required of the Designer by law.
Designer shall be liable, pursuant to the standard of care and indemnification provisions of this Agreement, for all violations of such laws and regulations in connection with its Services. If the Designer performs any work knowing it to be contrary to such laws, rules and regulations, Designer shall be solely responsible for all costs arising therefrom. Designer shall defend, indemnify and hold City, its officials, officers, employees and agents free and harmless, pursuant to the indemnification provisions of this Agreement, from any claim or liability arising out of any failure or alleged failure to comply with such laws, rules or regulations.
3.5.2 Drawings and Specifications. Designer shall cause all drawings and specifications to conform to any applicable requirements of federal, state and local laws, rules and regulations, including the Uniform Building Code, in effect as of the time the drawings and specifications are prepared or revised during the latest phase of the Services described in Exhibit “A” attached hereto. Any significant revisions made necessary by changes in such laws, rules and regulations after this time may be compensated as
38077.00180\29175422.11 C2
4 Additional Services which were not known or reasonably should not have been known by Designer.
Designer shall cause the necessary copies of such drawings and specifications to be filed with any governmental bodies with approval jurisdiction over the Project, in accordance with the Services described in Exhibit “A” attached hereto. For the preparation of all such drawings and specifications, the Designer shall use Computer Aided Design Drafting (“CADD”) (e.g., AutoCAD) or other technology acceptable to the Designer and City.
3.5.3 Americans with Disabilities Act. Designer will use its best professional efforts to interpret all applicable federal, state and local laws, rules and regulations with respect to access, including those of the Americans with Disabilities Act (“ADA”). Designer shall inform City of the existence of inconsistencies of which it is aware or reasonably should be aware between federal and state accessibility laws, rules and regulations, as well as any other issues which are subject to conflicting interpretations of the law, and shall provide the City with its interpretation of such inconsistencies and conflicting interpretations. Unless Designer brings such inconsistencies and conflicting interpretations to the attention of the City and requests City’s direction on how to proceed, the Designer’s interpretation of such inconsistencies and conflicting interpretations shall be the sole responsibility and liability of Designer, and the Designer shall correct all plans, specifications and other documents prepared for t he Project at no additional cost if its interpretations are shown to be incorrect. In the event that the Designer request’s City’s direction on how to proceed with respect to any inconsistent and/or conflicting interpretation, the Designer shall be responsible to the City only pursuant to the indemnification provisions of this Agreement.
3.5.4 Permits, Approvals and Authorizations. Designer shall provide City with a list of all permits, approvals or other authorizations required for the Project from all federal, state or local governmental bodies with approval jurisdiction over the Project. Designer shall then assist the City in obtaining all such permits, approvals and other authorizations. The costs of such permits, approvals and other authorizations shall be paid by the City.
3.5.5 Water Quality Management and Compliance.
(a) Compliance with Water Quality Laws, Ordinances and Regulations .
Designer shall keep itself and all subcontractors, staff, and employees fully informed of and in compliance with all local, state and federal laws, rules and regulations that may impact, or be implicated by the performance of the Services including, without limitation, all applicable provisions of the City’s ordinances regulating water quality and storm water; the Federal Water Pollution Control Act (33 U.S.C. § 1251 et seq.); the California P orter-Cologne Water Quality Control Act (Cal Water Code §§ 13000 -14950); and any and all regulations, policies, or permits issued pursuant to any such authority. Designer shall additionally comply with the lawful requirements of the City, and any other municipality, drainage district, or other local agency with jurisdiction over the location where the Services are to be conducted, regulating water quality and storm water discharges.
(b) Standard of Care . Designer warrants that all employees and subcontractors shall have sufficient skill and experience to perform the work assigned to them without impacting water quality in violation of the laws, regulations and policies described in Sections 3.5.5(a) of this Agreement. Designer further warrants that it, its employees and subcontractors will receive adequate training, as determined by the City, regarding these requirements as they may relate to the Services. (c) Liability for Non-compliance.
(i) Indemnity: Failure to comply with laws, regulations, and ordinances listed in Sections 3.5.5(a) of this Agreement is a violation of federal and state law.
Notwithstanding any other indemnity contained in this Agreement, Designer agrees to indemnify and hold
38077.00180\29175422.11 C2
5 harmless the City, its officials, officers, agents, employees and authorized volunteers from and against any and all claims, demands, losses or liabilities of any kind or nature which the City, its officials, officers, agents, employees and authorized volu nteers may sustain or incur for noncompliance with the laws, regulations, and ordinances listed above, arising out of or in connection with the Services, except for liability resulting from the sole established negligence, willful misconduct or active negligence of the City, its officials, officers, agents, employees or authorized volunteers. (ii) Defense: City reserves the right to defend any enforcement action or civil action brought against the City for Designer’s failure to comply with any applicable water quality law, regulation, or policy. Designer hereby agrees to be bound by, and to reimburse the City for the costs associated with, any settlement reached between the City and the relevant enforcement entity. (iii) Damages: City may seek damages from Designer for delay in completing the Services caused by Designer’s failure to comply with the laws, regulations and policies described in Section 3.5.5(a) of this Agreement, or any other relevant water quality law, regulation, or policy.
3.6 Independent Contractor.
3.6.1 Control and Payment of Subordinates . City retains Designer on an independent contractor basis and Designer is not an employee of City. Designer is not an employee for state tax, federal tax or any other purpose, and is not entitled to the rights or benefits afforded to City’s employees. Any additional personnel performing the Services under this Agreement on behalf of Designer shall also not be employees of City, and shall at all times be under Designer’s exclusive direction and control. Designer shall pay all wages, salaries, and other amounts due such personnel in connection with their performance of Services under this Agreement and as required by law. Designer shall be responsible for all reports and obligations respecting such additional personnel, including, but not limited to: social security taxes, income tax withholding, unemployment insurance, disability insurance, and workers’ compensation insurance.
3.7 Schedule of Services.
3.7.1 Designer Services. Designer shall fully and adequately complete the Services described in this Agreement and in Exhibit “A” attached hereto and incorporated herein by reference.
3.7.2 Timely Performance Standard. Designer shall perform all Services hereunder as expeditiously as is consistent with professional skill and care, as well as the orderly progress of the Project work so as not to be the cause, in whole or in part, of delays in the completion of the Project or in t he achievement of any Project milestones, as provided herein. Specifically, Designer shall perform its Services so as to allow for the full and adequate completion of the Project within the time required by the City a nd within any completion schedules adopted for the Project. Designer agrees to coordinate with City’s staff, contractors and consultants in the performance of the Services, and shall be available to City’s staff, contractors and consultants at all reasonable times.
3.7.3 Performance Schedule. Designer shall prepare an estimated time schedule for the performance of Designer’s Services, to be adjusted as the Project proceeds. Such schedule shall be subject to the City’s review and approval, which approval shall not be un reasonably withheld, and shall include allowances for periods of time required for City’s review and approval of submissions, and for approvals of authorities having jurisdiction over Project approval and funding. If City and Designer cannot mutually agree on a performance schedule, City shall have the authority to immediately terminate this Agreement.
The schedule shall not be exceeded by Designer without the prior written approval of City. If the Designer’s Services are not completed within the time provided by the agreed upon performance schedule, or any
38077.00180\29175422.11 C2
6 milestones established therein, it is understood, acknowledged and agreed that the City will suffer damage for which the Designer will be responsible pursuant to the indemnification provision of this Agreement.
3.7.4 Excusable Delays. Any delays in Designer’s work caused by the following shall be added to the time for completion of any obligations of Designer: (1) the actions of City or its employees; (2) the actions of those in direct contractual relationship with City; (3) the actions of any governmental agency having jurisdiction over the Project; (4) the actions of any parties not within the reasonable control of the Designer; and (5) any act of God or other unforeseen occurrence not due to any fault or negligence on the part of Designer. Neither the City nor the Designer shall be liable for damages, liquidated or otherwise, to the other on account of such delays.
3.7.5 Request for Excusable Delay Credit . The Designer shall, within fifteen (15) calendar days of the beginning of any excusable delay, notify the City in writing of the causes of delay (unless City grants in writing a further period of time to file such notice prior to the date of final payment under the Agreement). City will then ascertain the facts and the extent of the delay, and grant an extension of time for completing the Services when, in its sole judgment, the findings of fact justify such an extension.
The City’s findings of fact thereon shall be final and conclusive on the parties. Extensions of time shall apply only to that portion of the Services affected by the delay and shall not apply to other portions of the Services not so affected. The sole remedy of Designer for extensions of time shall be an extension of the performance time at no cost to the City. If Additional Services are required as a result of an excusable delay, the parties shall mutually agree thereto pursuant to the Additional Se rvices provision of this Agreement. Should Designer make an application for an extension of time, Designer shall submit evidence that the insurance policies required by this Agreement remain in effect during the requested additional period of time.
3.8 Additional Designer Services.
3.8.1 Request for Services . At City’s request, Designer may be asked to perform services not otherwise included in this Agreement, not included within the basic services listed in Exhibit “A” attached hereto, and/or not customarily furnished in accordance with generally accepted design practice.
3.8.2 Definition. As used herein, “Additional Services” mean: (1) any work which is determined by City to be necessary for the proper completion of the Project, but which the parties did not reasonably anticipate would be necessary for the Designer to perform at the execution of this Agreement; or (2) any work listed as Additional Services in Exhibit “A” attached hereto. Designer shall not perform, nor be compensated for, Additional Services without prior written authorization from City and without an agreement between the City and Designer as to the compensation to be paid for such services. City shall pay Designer for any approved Additional Services, pursuant to the compensation provisions herein, so long as such services are not made necessary through the fault of Designer pursuant to the indemnification provision of this Agreement.
3.8.3 Examples of Additional Services. Such Additional Services shall not include any redesign or revisions to drawings, specifications or other documents when such revisions are necessary in order to bring such documents into compliance with applicable laws, rules, regulations or codes of w hich Designer was aware or should have been aware pursuant to the laws and regulations provision of this Agreement above. Such Additional Services may include, but shall not be limited to:
(a) Separately Bid Portions of Project. Plan preparation and/or administration of work on portions of the Project separately bid.
38077.00180\29175422.11 C2
7 (b) Furniture and Interior Design . Assistance to City, if requested, for the selection of moveable furniture, equipment or articles which are not included in the Construction Documents.
(c) Fault of Contractor . Services caused by delinquency, default or insolvency of contractor, or by major defects in the work of the contractor, provided that any such services made necessary by the failure of Designer to detect and report such matters when it reasonably should have done so shall not be compensated.
(d) Inconsistent Approvals or Instructions . Revisions in drawings, specifications or other documents when such revisions are inconsistent with written approvals or instructions previously given and are due to causes beyond the control of Designer. (e) Legal Proceedings . Serving as an expert witness on City's behalf or attending legal proceedings to which the Designer is not a party. (f) Damage Repair. Supervision of repair of damages to any structure. (g) Extra Environmental Services . Additional work required for environmental conditions (e.g. asbestos or site conditions) not already contemplated within the Designer's services for the Project.
3.9 City Responsibilities. City’s responsibilities shall include the following:
3.9.1 Data and Information . City shall make available to Designer all necessary data and information concerning the purpose and requirements of the Project, including scheduling and budget limitations, objectives, constraints and criteria. As part of the budget limitation information, the City shall provide the Designer with a preliminary construction budget (“City’s Preliminary Construction Budget”).
3.9.2 Project Survey. If required pursuant to the scope of the Project and if requested by Designer, City shall furnish Designer with, or direct Designer to procure at City’s expense, a survey of the Project site prepared by a registered surveyor or civil engineer, any other record documents which shall indicate existing structures, land features, improvements, sewer, water, gas, electrical and utility lin es, topographical information and boundary dimensions of the site, and any other such pertinent information.
3.9.3 Bid Phase. Distribute Construction Documents to bidders and conduct the opening and review of bids for the Project.
3.9.4 Testing. Retain consultant(s) to conduct chemical, mechanical, soils, geological or other tests required for proper design of the Project, and furnish such surveys, borings, test pits, and other tests as may be necessary to reveal conditions of the site which must be known to determine soil condition or to ensure the proper development of the required drawings and specifications.
3.9.5 Required Inspections and Tests. Retain consultant(s) to conduct materials testing and inspection or environmental/hazardous materials testing and inspection pursuant to any applicable laws, rules or regulations.
3.9.6 Fees of Reviewing or Licensing Agencies. Directly pay or reimburse the payment of all fees required by any reviewing or licensing agency, or other agency having approval jurisdiction over the Project.
38077.00180\29175422.11 C2
8 3.9.7 City’s Representative. The City hereby designates the City Manager, or his or her designee, to act as its representative for the performance of this Agreement (“City’s Representative”). City’s Representative shall have the power to act on behalf of the City for all purposes under this Agreement. The City Manager hereby designates Ariel Morales, P.E., Public Works Division Manager - Utilities or his or her designee, as the City’s contact for the implementation of the Services hereunder. Designer shall not accept direction or orders from any person other than the City’s Representative or his or her designee.
3.9.8 Review and Approved Documents. Review all documents submitted by Designer, including change orders and other matters requiring approval by the City Council or other officials. City shall advise Designer of decisions pertaining to such documents within a reasonable time after submission, so as not to cause unreasonable delay as provided in the excusable delay provisions of this Agreement above.
3.10 Compensation.
3.10.1 Designer’s Compensation for Basic Services . City shall pay to Designer, for the performance of all Services rendered under this Agreement, the total not to exceed amount of seven hundred ninety-seven thousand and six hundred ten Dollars ($797,610) (“Total Compensation”). This Total Compensation amount shall be based upon, and may be adjusted according to, the fee schedule and related terms and conditions attached hereto as Exhibit “B” and incorporated herein by reference. The Total Compensation, as may be adjusted upon mutual agreement, shall constitute complete and adequate payment for Services under this Agreement.
3.10.2 Payment for Additional Services. At any time during the term of this Agreement, City may request that Designer perform Additional Services. As used herein, Additional Services means any work which is determined by City to be necessary for the proper completion of the Project, but which the Parties did not reasonably anticipate would be necessary at the execution of this Agreement . Any additional work in excess of this amount must be approved by the City . If authorized, such Additional Services will be compensated at the rates and in the manner set forth in Exhibit “C” attached hereto and incorporated herein by reference, unless a flat rate or some other form of compensation is mutually agreed upon by th e parties. If City requires Designer to hire consultants to perform any Additional Services, Designer shall be compensated therefore at the rates and in the manner set forth in Exhibit “C” attached hereto and incorporated herein by reference, unless a fla t rate or some other form of compensation is mutually agreed upon by the parties. City shall have the authority to review and approve the rates of any such consultants. In addition, Designer shall be reimbursed for any expenses incurred by such consultants pursuant to the terms and conditions of Section 3.10.3.
3.10.3 Reimbursable Expenses. Reimbursable expenses are in addition to compensation for the Se rvices and Additional Services. Designer shall not be reimbursed for any expenses unless authorized in writing by City, which approval may be evidenced by inclusion in Exhibit “C” attached hereto.
Such reimbursable expenses shall include only those expenses which are reasonably and necessarily incurred by Designer in the interest of the Project. Designer shall be required to acquire prior written consent in order to obta in reimbursement for the following: (1) extraordinary transportation expenses incurred in connection with the Project; (2) out -of-town travel expenses incurred in connection with the Project; (3) fees paid for securing approval of authorities having jurisd iction over the Project; (4) bid document duplication costs in excess of $1,000.00; and (5) other costs, fees and expenses in excess of $1,000.00.
3.10.4 Payment to Designer. Designer’s compensation and reimbursable expenses shall be paid by City to Designer no more often than monthly. Such periodic payments shall be made based
38077.00180\29175422.11 C2
9 upon the percentage of work completed, and in accordance with the phasing and funding schedule provided in Exhibit “B” and the compensation rates indicated in Exhibit “C” attached hereto and incorporated herein by reference. In order to receive payment, Designer shall present to City an itemized statement which indicates Services performed, percentage of Services completed, method for computing the amount payable, and the amount to be paid. The statement shall describe the amount of Services provided sinc e the initial commencement date, or since the start of the subsequent billing periods, as appropriate, through the date of the statement, as well as those expenses for which reimbursement is requested for that statement period. The amount paid to Designer shall never exceed the percentage amounts authorized by the phasing and funding schedule located in Exhibit “B” attached hereto. City shall, within thirty (30) days of receiving such statement, review the statement and pay all approved charges thereon pu rsuant to the provisions of Civil Code Section 3320. Disputed amounts shall be resolved by the parties in a mutually agreeable manner.
Payments made for Additional Services shall be made in installments, not more often than monthly, proportionate to the degree of completion of such services or in such other manner as the parties shall specify when such services are agreed upon, and in acc ordance with any authorized fee or rate schedule.
In order to receive payment, Designer shall present to City an itemized statement which indicates the Additional Services performed, percentage of Additional Services completed, method for computing the amount payable, and the amount to be paid. The statement shall describe the amount of Additional Services provided since the initial commencement date, or since the start of the subsequent billing periods, as appropriate, through the date of the statement. City shall, within thirty (30) days of receiving such statement, review the statement and pay all approved charges thereon pursuant to the provisions of Civil Code Section 3320. Disputed amounts shall be resolved by the parties in a mutually agreeable manner.
Upon cancellation or termination of this Agreement, Designer shall be compensated as set forth in the termination provision herein.
3.10.5 Withholding Payment to Designer. The City may withhold payment, in whole or in part, to the extent reasonably necessary to protect the City from claims, demands, causes of action, costs, expenses, liabilities, losses, damages, or injuries of any kind to the extent arising out of or cause d by the negligence, recklessness, or willful misconduct protected under the indemnification provisions of this Agreement. Failure by City to deduct any sums from a progress payment shall not constitute a waiver of the City’s right to such sums. The City may keep any moneys which would otherwise be payable at any time hereunder and apply the same, or so much as may be necessary therefor, to the payment of any expenses, losses, or damages as determined by the City, incurred by the City for which Designer is liable under the Agreement or state law. Payments to the Designer for compensation and reimbursable expenses due shall not be contingent on the construction, completion or ultimate success of the Project. Payment to the Designer shall not be withheld, postponed, or made contingent upon receipt by the City of offsetting reimbursement or credit from parties not within the Designer’s reasonable control.
3.10.6 Prevailing Wages. Designer is aware of the requirements of California Labor Code Sections 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Section 16000, et seq., (“Prevailing Wage Laws”), which require the payment of prevailing wage rates and the performance of other requirements on certain “public works” and “maintenance” projects. If the Services are being performed as part of an applicable “public works” or “maintenance” project, as defined by the Prevailing Wage Laws, and if the total compensation is $1,000 or more, Designer agrees to fully comply with and to require its consultants to fully comply with such Prevailing Wage Laws. City shall provide Designer with a copy of the prevailing rates of per diem wages in effect at the commencement of this Agreement. Designer shall make copies of the prevailing rates of per diem wages for each craft, classification or type of worker needed to execute the Services available to interested parties upon request, and shall post copies at the Designer’s principal place of business and at the Project site. Designer shall defend, indemnify and hold the City, its officials, officers, employees and agents free and harmless from any claims, liabilities, costs,
38077.00180\29175422.11 C2
10 penalties or interest arising out of any failure or alleged failure of the Designer or its consultants to comply with the Prevailing Wage Laws. It shall be mandatory upon the Designer and all subconsultants to comply with all California Labor Code provisi ons, which include but are not limited to prevailing wages (Labor Code Sections 1771, 1774 and 1775), employment of apprentices (Labor Code Section 1777.5), certified payroll records (Labor Code Sections 1771.4 and 1776), hours of labor (Labor Code Section s 1813 and 1815) and debarment of contractors and subcontractors (Labor Code Section 1777.1). The requirement to submit certified payroll records directly to the Labor Commissioner under Labor Code section 1771.4 shall not apply to work performed on a pub lic works project that is exempt pursuant to the small project exemption specified in Labor Code Section 1771.4.
3.10.7 Registration. If the Services are being performed as part of an applicable “public works” or “maintenance” project, then pursuant to Labor Code Sections 1725.5 and 1771.1, the Designer and all subconsultants performing such Services must be registered with the Departmen t of Industrial Relations. Designer shall maintain registration for the duration of the Project and require the same of any subconsultants, as applicable. Notwithstanding the foregoing, the contractor registration requirements mandated by Labor Code Sections 1725.5 and 1771.1 shall not apply to work performed on a public works project that is exempt pursuant to the small project exemption specified in Labor Code Sections 1725.5 and 1771.1.
3.10.8 Labor Compliance. This Project may also be subject to compliance monitoring and enforcement by the Department of Industrial Relations. It shall be Designer’s sole responsibility to comply with all applicable registration and labor compliance requirements. Any stop orders issued by the Department of Industrial Relations against Designer or any subcontractor that affect Designer’s performance of Services, including any delay, shall be Designer’s sole responsibility. Any delay arising out of or resulting f rom such stop orders shall be considered Designer caused delay and shall not be compensable by the City. Designer shall defend, indemnify and hold the City, its officials, officers, employees and agents free and harmless from any claim or liability arising out of stop orders issued by the Department of Industrial Relations against Designer or any subcontractor.
3.11 Notice to Proceed.
Designer shall not proceed with performance of any Services under this Agreement unless and until the City provides a written notice to proceed.
3.12 Termination, Suspension and Abandonment.
3.12.1 Grounds for Termination; Designer’s Termination for Cause. City hereby reserves the right to suspend or abandon, at any time and for any reason, all or any portion of the Project and the construction work thereon, or to terminate this Agreement at any time with or without cause. Designer shall be provided with at least seven (7) days advanced written notice of such suspension, abandonment or termination. In the event of such suspension, abandonment or termination, Designer shall be paid for Services and reimbursable expenses rendered up to the date of such suspension, abandonment or termination, pursuant to the schedule of payments provided for in this Agreement, less any claims against or damages suffered by City as a result of the default, if any, by Designer. Designer hereby expressly waives any and all claims for damages or compensation arising under this Agreement, except as set forth herein, in the event of such suspension, abandonment or termination. Designer may terminate this Agreement for substantial breach of performance by the City such as failure to make payment to Designer as provided in this Agreement.
3.12.2 City’s Suspension of Work . If Designer’s Services are suspended by City, City may require Designer to resume such Services within ninety (90) days after written notice from City. When
38077.00180\29175422.11 C2
11 the Project is resumed, the Total Compensation and schedule of Services shall be equitably adjusted upon mutual agreement of the City and Designer.
3.12.3 Documents and Other Data . Upon suspension, abandonment or termination, Designer shall provide to City all preliminary studies, sketches, working drawings, specifications, computations, and all other Project Documents, as defined below, to which City would have been entitled at the completion of Designer’s Services under this Agreement. Upon payment of the amount required to be paid to Designer pursuant to the termination provisions of this Agreement, City shall have the rights, as provided in this Agreement hereinafter, to use such Project Documents prepared by or on behalf of Designer under this Agreement. Designer shall make such documents available to City upon request and without additional compensation other than as may be approved as a reimbursable expense.
3.12.4 Employment of other Designers. In the event this Agreement is terminated in whole or in part as provided herein, City may procure, upon such terms and in such manner as it may determine appropriate, services similar to those terminated.
3.13 Ownership and Use of Documents; Confidentiality.
3.13.1 Ownership. All plans, specifications, original or reproducible transparencies of working drawings and master plans, preliminary sketches, design presentation drawings, structural computations, estimates and any other documents prepared pursuant to this Agreement, including, but not limited to, any other works of authorship fixed in any tangible medium of expression such as writings, physical drawings and data magnetically or otherwise recorded on computer diskettes (hereinafter referred to as the “Project Documents”) shall be and remain the property of City. Although the official copyright in all Project Documents shall remain with the Designer or other applicable subcontractors or consultants, the Project Documents shall be the property of City whether or not the work for which they were made is executed or completed. Within thirty (30) calendar days following completion of the Project, Designer shall provide to City copies of all Project Documents required by City. In addition, Designer shall retain copies of all Project Documents on file for a minimum of fifteen (15) years following completion of the Project, and shall make copies available to City upon the payment of reasonable duplication costs. Before destroying the Project Documents following this retention period, Designer shall make a reasonable effort to notify City and provide City with the opportunity to obtain the documents.
3.13.2 Right to Use. Designer grants to City the right to use and reuse all or part of the Project Documents, at City’s sole discretion and with no additional compensation to Designer, for the following purposes:
(a) The construction of all or part of this Project.
(b) The repair, renovation, modernization, replacement, reconstruction or expansion of this Project at any time;
(c) The construction of another project by or on behalf of the City for its ownership and use;
City is not bound by this Agreement to employ the services of Designer in the event such documents are used or reused for these purposes. City shall be able to use or reuse the Project Documents for these purposes without risk of liability to the Designer or third parties with respect to the condition of the Project Documents, and the use or reuse of the Project Documents for these purposes shall not be construed or interpreted to waive or limit City’s right to recover for latent defects or for errors or o missions of the Designer.
38077.00180\29175422.11 C2
12 Any use or reuse by City of the Project Documents on any project other than this Project without employing the services of Designer shall be at City’s own risk with respect to third parties. If City uses or reuses the Project Documents on any project other than this Project, it shall remove the Designer’s seal from the Project Documents and hold harmless Designer and its officers, directors, agents and employees from claims arising out of the negligent use or re-use of the Project Documents on such other project.
3.13.3 License. This Agreement creates a non-exclusive and perpetual license for City to copy, use, modify or reuse any and all Project Documents and any intellectual property rights therein.
Designer shall require any and all subcontractors and consultants to agree in writing that City is granted a non-exclusive and perpetual license for the work of such subcontractors or consultants performed pursuant to this Agreement.
3.13.4 Right to License . Designer represents and warrants that Designer has the legal right to license any and all copyrights, designs and other intellectual property embodied in the Project Documents that Designer prepares or causes to be prepared pursuant to this Agreement. Designer shall indemnify and hold City harmless pursuant to the indemnification provisions of this Agreement for any breach of this Section. Designer makes no such representation and warranty in regard to previously prepared designs, plans, specifications, studies, drawings, estimates or other documents that were prepared by design professionals other than Designer and provided to Designer by City.
3.13.5 Confidentiality. All Project Documents, either created by or provided to Designer in connection with the performance of this Agreement, shall be held confidential by Designer to the extent they are not subject to disclosure pursuant to the Public Records Act. All Project Documents shall not, without the written consent of City, be used or reproduced by Designer for any purposes other than the performance of the Services. Designer shall not disclose, cause or facilitate the disclosure of the Project Documents to any person or entity not connected with the performance of the Services or the Project.
Nothing furnished to Designer which is otherwise known to Designer or is generally known, or has become known, to the related industry shall be deemed confidential. Designer shall not use City’s name or insignia, photographs of the Project, or any publicity pertaining to the Services or the Project in any magazine, trade paper, newspaper, television or radio production or other similar medium without the written consent of City.
3.14 Indemnification.
3.14.1 To the fullest extent permitted by law, Designer shall defend (with counsel of City’s choosing), indemnify and hold the City, its officials, officers, employees, volunteers, and agents free and harmless from any and all claims, demands, causes of action, c osts, expenses, liability, loss, damage or injury of any kind, in law or equity, to property or persons, including wrongful death, in any manner arising out of, pertaining to, or incident to any acts, errors or omissions, or willful misconduct of Designer, its officials, officers, employees, subcontractors, consultants or agents in connection with the performance of the Designer’s services, the Project or this Agreement, including without limitation the payment of all damages, expert witness fees and attorney’s fees and other related costs and expenses. Designer's obligation to indemnify shall not be restricted to insurance proceeds, if any, received by Designer, the City, its officials, officers, employees, agents, or volunteers.
3.14.2 If Designer’s obligation to defend, indemnify, and/or hold harmless arises out of Designer’s performance of “design professional” services (as that term is defined under Civil Code section 2782.8), then, and only to the extent required by Civil Code sectio n 2782.8, which is fully incorporated herein, Designer’s indemnification obligation shall be limited to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Designer, and, upon Designer obtaining a final
38077.00180\29175422.11 C2
13 adjudication by a court of competent jurisdiction, Designer’s liability for such claim, including the cost to defend, shall not exceed the Designer’s proportionate percentage of fault.
3.15 Insurance. Designer shall not commence work under this Agreement until it has provided evidence satisfactory to the City that it has secured all insurance required under Exhibit “D” (Insurance Requirements), attached hereto and incorporated herein by this reference . In addition, Designer shall not allow any subconsultant to commence work on any subcontract until it has provided evidence satisfactory to the City that the subconsultant has secured all insurance required therein.
3.16 Records.
Designer shall maintain complete and accurate records with respect to all costs and expenses incurred under this Agreement. All such records shall be clearly identifiable. Designer shall allow a representative of City during normal business hours to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement. Designer shall allow inspection of all work, data, documents, proceedings, and activities related to the Agreement for a period of five (5) years from the date of final payment under this Agreement.
3.17 Standardized Manufactured Items.
Designer shall cooperate and consult with City in the use and selection of manufactured items on the Project, including but not limited to, paint, hardware, plumbing, mechanical and electrical equipment, fixtures, roofing materials and floor coverings. All such manufactured items shall be standardized to City’s criteria to the extent such criteria do not interfere with building design.
3.18 Limitation of Agreement.
This Agreement is limited to and includes only the work included in the Project described herein.
Any additional or subsequent construction at the site of the Project, or at any other City site, will be covered by, and be the subject of, a separate Agreement for design services between City and the designer chosen therefor by City.
3.19 Mediation.
Disputes arising from this Agreement may be submitted to mediation if mutually agreeable to the parties hereto. The type and process of mediation to be utilized shall be subject to the mutual agreement of the parties.
3.20 Successors and Assigns.
This Agreement shall be binding upon and shall inure to the benefit of the successors in interest, executors, administrators and assigns of each party to this Agreement. However, Designer shall not assign or transfer by operation of law or otherwise any or all of its rights, burdens, duties or obligations without the prior written consent of City. Any attempted assignment without such consent shall be invalid and void.
3.21 Asbestos Certification.
Designer shall certify to City, in writing and under penalty of perjury, that to the best of its knowledge, information and belief no asbestos -containing material or other material deemed to be hazardous by the state or federal government was specified as a buildi ng material in any construction document that the Designer prepares for the Project. Designer shall require all consultants who prepare any
38077.00180\29175422.11 C2
14 other documents for the Project to submit the same written certification. Designer shall also assist the City in ensuring that contractors provide City with certification, in writing and under penalty of perjury, that to the best of their knowledge, information and belief no material furnished, installed or incorporated into the Project contains asbestos or any other material deemed to be hazardous by the state or federal government.
These certifications shall be part of the final Project submittal. Designer shall include statements in its specifications that materials containing asbestos or any other material deemed to be hazardous by the state or federal government are not to be included.
3.22 No Third Party Rights.
This Agreement shall not create any rights in, or inure to the benefits of, any third party except as expressly provided herein.
3.23 Governing Law.
This Agreement shall be construed in accordance with, and governed by, the l aws of the State of California. Venue shall be in Santa Clara County.
3.24 Exhibits and Recitals.
All exhibits and recitals contained herein and attached hereto are material parts of this Agreement and are incorporated as if fully set forth.
3.25 Severability.
Should any provision in the Agreement be held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions shall continue in full force and effect.
3.26 Non-Waiver.
None of the provisions of this Agreement shall be considered waived by either party, unless such waiver is specifically specified in writing.
3.27 Safety.
Designer shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out its Services, the Designer shall at all times be in compliance with all applicable local, state and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of its employees, consultant and subcontractors appropriate to the nature of the work and the conditions under which the work is to be performed.
3.28 Harassment Policy.
Designer shall provide a copy of the City's Harassment Policy to each of its employees assigned to perform the tasks under this Agreement. Designer shall submit to the City's Personnel Manager a statement signed by each of its employees who are assigned to perform the Services under this Agreement certifying receipt of City's Harassment Policy and certifying that they have read the Harassment Policy. A finding by the City that any of Designer's employees has harassed a City employee shall be grounds for appropriate
38077.00180\29175422.11 C2
15 discipline, up to and including such employee's removal from performance of this Agreement at City's request.
3.29 Delivery of Notices.
All notices permitted or required under this Agreement shall be given to the respective parties at the following address, or at such other address as the respective parties may provide in writing for this purpose:
CITY:
City of Milpitas
455 E. Calaveras Boulevard
Milpitas, California 95035
Attn: Ariel Morales, PW Division Manager
DESIGNER:
HydroScience Engineers, Inc.
10569 Old Placerville Road
Sacramento, CA 95827
Attn: Curtis Lam, President
Such notice shall be deemed made when personally delivered or when mailed, forty -eight (48) hours after deposit in the U.S. Mail, first class postage prepaid and addressed to the party at its applicable address. Actual notice shall be deemed adequate notice o n the date actual notice occurred, regardless of the method of service.
3.30 Time of Essence.
Time is of the essence for each and every provision of this Agreement.
3.31 City’s Right to Employ Other Consultants.
City reserves right to employ other consultants, including designers, in connection with this Project or other projects.
3.32 Prohibited Interests.
3.32.1 Solicitation. Designer maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Designer, to solicit or secure this Agreement. Further, Designer warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Designer, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the awar d or making of this Agreement. For breach or violatio n of this warranty, City shall have the right to rescind this Agreement without liability.
3.32.2 Conflict of Interest. For the term of this Agreement, no director, official, officer or employee of City, during the term of his or her service with City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.
3.33 Equal Opportunity Employment.
Designer represents that it is an equal opportunity employer and that it shall not discriminate against any employee or applicant for employment because of race, religion, color, national origin, ancestry, sex, age or any other classification protected by federal or state law. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or
38077.00180\29175422.11 C2
16 recruitment advertising, layoff or termination. Designer shall also comply with all relevant provisions of City’s minority business enterprise program, affirmative action plan or other related programs or guidelines currently in effect or hereinafter enacted.
3.34 Labor Certification.
By its signature hereunder, Designer certifies that it is aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for Worker’s Compensation or to undertake self-insurance in accordance with the provisions of that Code, and agrees to comply with such provisions before commencing the performance of the Services.
3.35 Wage Theft Certification.
3.35.1 Designer, and any subconsultant it employs to complete work under this Agreement, shall comply with all applicable federal, state and local wage and hour laws. Applicable laws may include, but are not limited to, the Federal Fair Labor Standards Act, the C alifornia Labor Code and the Milpitas Minimum Wage Ordinance.
3.35.2 BY SIGNING THIS AGREEMENT, DESIGNER AFFIRMS THAT IT HAS
DISCLOSED ANY FINAL JUDGMENTS, DECISIONS OR ORDERS FROM A COURT OR INVESTIGATORY GOVERNMENT AGENCY, FINDING IN THE FIVE (5) YEARS PRIOR TO
EXECUTING THIS AGREEMENT THAT DESIGNER OR ITS SUBCONSULTANTS HAS VIOLATED ANY APPLICABLE WAGE AND HOUR LAWS. DESIGNER FURTHER AFFIRMS THAT IT OR ITS
SUBCONSULTANT(S) HAS EITHER FULLY SATISFIED EACH JUDGMENT, DECISION OR
ORDER, OR, IF ANY JUDGMENT, DECISION OR ORDER HAS NOT BEEN FULLY SATISFIED,
DESIGNER AFFIRMS THAT IT OR ITS SUBCONSULTANT(S) IS CURRENTLY SATISFYING SAID
JUDGMENT, DECISION OR ORDER THROUGH A PAYMENT OR ALTERNATIVE PLAN
APPROVED BY THE APPLICABLE COURT/GOVERNMENT AGENCY AND THAT DESIGNER OR
ITS SUBCONSULTANT(S) ARE IN COMPLIANCE WITH SAID PLAN AS OF THE DATE OF EXECUTING THIS AGREEMENT.
3.35.3 If at any time during the term of this Agreement, a court or investigatory government agency issues a final judgment, decision or order finding that Designer or a subconsultant it employs to perform work under this Agreement has violated any applicable wage and hour law, or Designer learns of such a judgment, decision, or order that was not previously disclosed in its bid/proposal, Designer shall inform the City no more than fifteen (15) calendar days after the judgment, decision or order becomes final or from the date of learning of the final judgment, decision or order. Designer or its subconsultant(s) shall, within thirty (30) calendar days after notifying the City, either (i) fully satisfy any such judgment, decision, or order and provide the City with documentary evidence of satisfying said judgment, decision or order; or (ii) provide the City documentary evidence of a payment or other alternative plan approved by the court/government agency to satisfy the judgment, decision or order. If the Designer or its subconsultant is subject to a payment or other alternative plan, the Designer or its subconsultant shall continue to submit documentary evidence every thirty (30) calendar days during the term of the Agreement demonstrating continued compliance with the plan until the judgment, decision or order has been fully satisfied.
3.35.4 For purposes of this Section, a "final judgment, decision, or order" refers to one for which all appeals have been exhausted or the time period to appeal has expired. Relevant investigatory government agencies include: the United States Department of Labor , the California Division of Labor Standards Enforcement, the City, or any other governmental entity or division tasked with the investigation and enforcement of wage and hour laws.
38077.00180\29175422.11 C2
17 3.35.5 Failure to comply with any part of this Section constitutes a material breach of this Agreement. Such breach may serve as a basis for immediate termination of this Agreement and/or any other remedies available under this Agreement and/or law.
3.35.6 Notice provided to the City shall be addressed to: Attention: Finance Director, 455 E. Calaveras Blvd. Milpitas, CA 95035. The Notice provisions of this Section are separate from any other notice provisions in this Agreement and, accordingly, only notice p rovided to the above address satisfies the notice requirements in this Section.
3.36 Subcontracting.
As specified in this Agreement, Designer shall not subcontract any portion of the Services required by this Agreement, except as expressly stated herein, without prior written approval of City. Subcontracts, if any, shall contain a provision making them subject to each and every provision of this Agreement.
3.37 Supplemental Conditions.
Any supplemental conditions shall be attached as an exhibit to this Agreement, and that exhibit shall be incorporated herein by reference.
3.38 Entire Agreement.
This Agreement, with its exhibits, contains the entire agreement of the parties hereto, and supersedes any and all other prior or contemporaneous negotiations, understandings and oral or written agreements between the parties hereto. Each party acknowledge s that no representations, inducements, promises or agreements have been made by any person which are not incorporated herein, and that any other agreements shall be void. Furthermore, any modification of this Agreement shall only be effective if in writing signed by all parties hereto.
[SIGNATURES ON FOLLOWING PAGE]
38077.00180\29175422.11 C2
18 SIGNATURE PAGE FOR DESIGN SERVICES AGREEMENT
BETWEEN THE CITY OF MILPITAS
AND HYDROSCIENCE ENGINEERS, INC.
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above.
CITY OF MILPITAS
Approved By:
Jared Hernandez, Acting City Manager
Date
Approved As To Form:
Christian M. Curtis, City Attorney
Approved:
Luz Cofresí-Howe, Finance Director/Risk manager
Approved As To Content:
Christian Di Renzo, Public Works Director
HYDROSCIENCE ENGINEERS, INC.
Signature
Name
Title
Date
38077.00180\29175422.11 C2
1 EXHIBIT “A”
DESIGNERS SCOPE OF SERVICES
March 17, 2026
Adrianne Nikoloff
Assistant Engineer
City of Milpitas
455 East Calaveras Boulevard
Milpitas, CA 95035
[email protected]
Subject: Proposal for Sanitary Sewer Pipeline and Fire Flow Pipeline Improvements Project, Phase 1 Design and Phase 2 Preliminary Design
Dear Adrianne:
HydroScience Engineers (HydroScience) is pleased to submit this proposal to the City of Milpitas (City) to provide professional engineering services for the Sanitary Sewer Pipeline and Fire Flow Pipeline Improvements Project, Phase 1 and preliminary design services (Tasks A-C of the scope) for Phase 2 (Project). This proposal summarizes our understanding of the project, presents our scope of work, our project team, fee, and proposed schedule.
The water segments of the Project requiring upsizing to meet the required fire flow are presented in Table 1, based on an analysis completed in the City’s Water Master Plan.
Table 1 – Water and Sewer Pipeline Segments in Project
Segment ID Street Description Footage
Phase 1
ECIP-PI-05 Hanson Ct 8” to 12” 611
ECIP-PI-06 Milmont Dr 8/10” to 12” 907
ECIP-PI-10 Greenwood Way 6” to 8” 861
ECIP-PI-11 Abel St. 6” to 8” 240
Phase 2
ECIP-PI-07 Railroad Avenue 8” to 12” 880
ECIP-PI-21 Merz Ct 4” to 8” 425
ECIP-PI-23 Sussex Pl. 4” to 8” 192
ECIP-PI-25 Carlsbad St 4” to 8” 160
ECIP-PI-26 Calera Creek Heights Dr. 6” to 8” 1,476
Sewer
Phase 1 East Calaveras Blvd 15-inch 2,373
Phase 2 East of South Hillview Dr 12 and 15-inch 5,055
Phase 1 water and sewer projects have a total footage of 2,619 LF and 2,373 LF, respectively.
HydroScience would provide preliminary design services only for the Phase 2 water and sewer projects, which have total footages of 3.133 LF and 5,055 LF, respectively.
Notable project features and key elements for discussion are presented below.
Rigorous Utility Locating: The previous project HydroScience executed for the City, the Dempsey Road Waterline Replacement Project, was originally designed in 2014 but then shelved for both funding and constructability reasons. When HydroScience was selected to design this project, we started a process to proactively locate and document the source and as- built information for every utility from the City’s extensive as-built libraries. Working closely with the City, we traced the history of each utility, the year of various improvements, what had been and not been abandoned or replaced, and then documented the as-built reference with a new tag that corresponded to the City’s as-built project identification number. We created this removable layer so the City could examine the plans, verify that the as-built drawings matched current conditions, and let us retain the information in AutoCAD while removing it from the stamped PDFs distributed to contractors. This tracking system increased confidence in the data, allowed us to tie the as-built file to visible conditions, and correlate the City’s records to the correct files.
For each of the new projects in this procurement, HydroScience will perform utility research similar to what worked successfully for the Dempsey project. We will perform a topographic survey of the site, receive and process each and every available as-built, ask informed questions of the City, walk the project site to confirm visible utility locations, and select the most suitable project alignments for construction of each project. The outcome of this work will facilitate City confidence in the design, minimize surprises and change orders during construction, and streamline construction.
Railroad Avenue: Available mapping for Project ECIP-PI-07 appears to show that this pipeline is located in an existing easement, within an existing ditch historically referred to as Ford Creek, a public street, and underneath a Caltrans overpass. The water pipeline extends under the Caltrans overpass within the Railroad Avenue right-of-way because the overpass overcrossing railroad is bermed up to the east of Railroad Avenue.
The City wants to upsize this pipeline from 8” to 12” to increase fire flow, and evaluate whether to replace the segment within the existing easement or relocate the main to within Railroad Avenue and bore under the creek. Ford Creek flows into Berryessa Creek, which flows into Lower Penitencia Creek, a perennial waterway. Trenchless construction methods are likely going to be required for the creek crossing, either for the 12-inch water main or to reconnect the services supplying the property located at 222 Railroad Avenue.
HydroScience will evaluate options to replace the water main in place, or relocate the water main to within Railroad Avenue. Assuming that the existing easement allows for replacement of the water pipeline, but a temporary construction easement is required, we would expect that the long-term best solution for the City would be to relocate the water main into Railroad Avenue, then construct a new service over the creek to the existing services near the existing bridge overcrossing the creek for the potable, irrigation, and fire services. It is likely that these can be supplied off of one 6 or 8-inch crossing, with multiple services connecting to that main. The final design and alignment will be confirmed during the preliminary design phase in consultation with the City.
Across the Caltrans overcrossing, we would expect that open trench construction methods would be allowed, similar to how HydroScience has designed and permitted similar Caltrans crossings within public streets with Caltrans aerial crossings. Caltrans has a standard trench section which will be used within the limits of the aerial crossing, and the design will be structured in accordance with Caltrans requirements within their aerial crossing and/or right-of- way limits. The exact limits of their easement and right-of-way will also be determined as part of the topographic surveying work.
It was also noted that the creek crossing will require confirmation regarding who owns and maintains the Ford Creek. HydroScience will consult Valley Water and City records and available right-of-way and record of survey information to confirm the need for a Valley Water permit and right-of-way needs for a new service and/or pipeline crossing of the creek. A preliminary examination of Valley Water CPRU GIS and maps suggests that the ditch is neither owned nor maintained by Valley Water. If this remains the case, obtaining a Valley Water permit for this crossing is probably unnecessary. Confirmation of the environmental requirements for the crossing, as well as right-of-way, will be determined during the preliminary engineering stage to confirm the best path forward.
This is a Phase 2 project, so only preliminary design services will be performed for this project segment as part of this authorization.
Calera Creek Heights Drive: Project ECIP-PI-26 starts from the north at 1607 Calera Creek Heights Drive and then extends south along the existing road right of way to the Bay View Golf Course. Alongside the course, the pipeline will extend over land through HOA property to connect to the pipeline at 1555 Hilltop Court, which is the only property on Hilltop Court. The pipeline would then continue south on Hilltop Court back to Calera Creek Heights Drive to avoid a dead end.
County records show that the South Bay Aqueduct bisects this project alignment. An aerial survey showed surface improvements relating to this existing utility, and County mapping also shows the mapping on Book 29, Page 35. Coordination with SFPUC will be required for new water pipelines crossing the SFPUC right-of-way. It is expected that the new pipeline will be installed via open-trench methods within a steel casing located at least two feet above the existing SFPUC pipeline.
Between Calera Creek Heights Drive and Hilltop Court, there appear to be three parcels – the parcel at 1555 Hilltop to be served, a subdivided parcel that appears to be undeveloped, and the common area of the Country Club/HOA. Mapping each of these parcels, the existing pipeline alignment, and the proposed pipeline alignment will be crucial to determining what permanent and temporary easements may be required.
This is a Phase 2 project, so only preliminary design services will be performed for this project segment as part of this authorization.
Valley Water Permitting: Valley Water CPRU mapping shows that the Phase 2 sewer is owned by fee by Valley Water between Yosemite Avenue and Calaveras. Valley Water has an easement for the sewer segment located between Ames and Yosemite.
For work within Valley Water property or easements, compliance with the Valley Water, Water Resources Protection Ordinance (WRPO) is required. One of the key requirements is that this
project will require a longitudinal encroachment within Valley Water right-of-way, which are prohibited under the WRPO.
During the preliminary engineering phase, HydroScience will review the existing right-of-way and pipeline replacement options to determine the most suitable permitting pathway with Valley Water. This is an existing longitudinal utility encroachment with little to no other options available for an alternative. Should other alternatives exist, we will propose them to the City.
However, the likely course of action will be to hold a meeting between City and Valley Water CPRU staff to review the project and discuss options, permitting needs, and design requirements. It is likely that Valley Water will ask for a copy of the existing CEQA document for this project, and identify any required permits (CDFW, RWQCB, USACE) permits that may be required.
This is a Phase 2 project, so only preliminary design services will be performed for this project segment as part of this authorization. There is no Valley Water Permitting expected as part of the Phase 1 work.
Scope of Work
The tasks for this scope of work are based on the Scope of Work contained within the RFP , our experience providing similar services for the City and other local clients, and the needs of the Project. Our proposed tasks are as follows.
• Task A: Project Administration and Coordination
• Task B: Field and Document Investigation
• Task C: Feasibility Study and Condition Assessment
• Task D: Construction Documents
• Task E: Permitting
• Task F: Quality Control/Quality Assurance
• Task G: Bidding Phase
• Task H: Construction Administration
• Task I: Record Documents and Project Closeout
• Task J: Reimbursable Expenses
• Task K: Additional Services as Needed
The details associated with each task are presented below.
Task A: Project Administration and Coordination
Upon receipt of Notice to Proceed from the City, HydroScience shall conduct a kick-off meeting with City staff to:
• Review the project goals, expectations, budget, scope, and schedule • Verify regulatory items, approval processes, and administrative procedures • Clarify City preferred materials, equipment, methods of construction, and available maintenance procedures and resources
• Confirm the availability of as-built documentation from the City • Review the project schedule, which will include key milestones, tasks organized in accordance with the scope of work, and City review periods which we assume shall be 30 days for each submittal.
HydroScience will prepare for, coordinate, and facilitate up to design review workshops at the 35% Basis of Design Memorandum, 50%, and 90% milestones for a single set of contract documents. The intent of the workshops is to help facilitate the City’s review of the design progress. It is assumed that all meetings will be virtual.
HydroScience will provide general project management activities, including team coordination, project budget tracking and reporting, managing and administering the work and contracts of subconsultants, invoicing, and maintaining the project schedule. Invoices will be prepared monthly and include a summary of billings by task and a general listing of work performed during the invoice period.
HydroScience will maintain a tracking log of comments and outstanding items, which will be returned to the City with responses/action taken.
During the execution of the project, HydroScience and the City will schedule brief 30-minute virtual check-in meetings to confirm the status of action items, ask questions, and confirm the status of various project activities. The scheduling of these virtual check-ins will be coordinated between HydroScience and the City once design work begins in earnest.
Except where noted, it is assumed that all submittals will be made electronically in PDF format.
Deliverables
• Project schedule in Microsoft Project format
• Monthly progress reports included with each invoice
• Meeting agendas, minutes, and collateral material as required (PDF) • Comment tracking logs and responses
Task B: Field and Document Investigation
HydroScience will perform field investigation and data collection to collect, analyze, and interpret all available utility information to support the execution of the design phase of work.
HydroScience will walk the project site once the survey is performed to confirm visible site features, the accuracy of available as-built plans, and to identify where additional information may be required to confirm utility location. HydroScience will additionally observe the locations of driveways, access points, and other visible features that may impact design and construction.
The topographic survey will be reviewed in the field by comparing the survey and available utility information to what is visible in the field.
It is expected that the City will provide available utility plat maps, as-builts, record drawings, a schedule of meters to be reconnected to the new water mains, and a copy of available CCTV data.
Topographic field survey: HMH will set survey control for all pertinent locations and perform field topographic survey to obtain all surface features from back-of-sidewalk to back-of-sidewalk, utility surface features (utility vaults, boxes, hydrants), manhole & inlet survey (including location, rim, invert, pipe size, and direction of flow), water valves (location, rim, top of nut, and length of extension of water valves). Utility potholes will be surveyed. HydroScience will establish horizontal and vertical control based on the City’s monuments.
Survey would be performed for all of the Phase 1 and Phase 2 projects.
Utility Locating: HydroScience will send utility research/as-built plans request letter to local utility companies that may have facilities within the project limits. A map of the approximate utility locations (including underground utilities) will be created based on data provided by the utility companies and surface utility features as identified during the topographic survey. When the existing data allows, the drawing will indicate utility type, diameter, material, approximate cover, and the horizontal location of the utility.
Potholing: HydroScience will review utility information provided by the City and other utility providers. If information provided by the utilities does not match information collected during the site walk and information in the previous design drawings, or if potholing verification is recommended due to potential construction risks, HydroScience will identify the areas for potholing. HydroScience will notify the City and receive City approval prior to proceeding.
BESS will perform up to ten utility potholes using air-vacuum excavation methods and/or ground penetrating radar at locations specified by HydroScience within the segment limits. Potholing will be performed to identify the precise horizontal and vertical position of existing utilities that need to be located to complete the pipeline design. Data collected as a result of potholing activities will be presented in a PDF report that will include: utility type, size, material, depth and pictures of the exposed utility. Pothole locations (in the field) will be marked with wooden lath and ribbon marked with the pothole number, utility size and depth or MAG nail with pertinent utility data annotated on the ground surface. Potholing will require a Road Encroachment Permit from the City. Once the utility data has been collected the pothole will be restored and the area resurfaced in accordance with City standard details. BESS will prepare a Traffic Control Plan that is stamped and signed by a P .E. or T.E. for the potholing work.
Potholing will only be performed for the Phase 1 sewers, where required.
CCTV: We understand that CCTV data may be unavailable or incomplete. As directed by the City, we have included an optional task to perform CCTV on the Phase 1 and Phase 2 sewer pipelines in this project. Bess Testlab will perform CCTV or the project sewers, and have the ability to perform up to 1,200 LF/day using a 2-person crew with a crawler camera. CCTV would be preceded by project planning and some cleaning of the sewers to facilitate the camera coming in afterwards. All pipe defects will be noted in accordance with NASSCO standards, and a deliverable with the video file, coding, and NASSCO ratings of all pipes and manholes will be prepared.
Assumptions
• No new monuments will be set. Survey monument preservation, as defined and required by Section 8771 of the Professional Land Surveyor’s Act, is not included in this task. • A no-fee encroachment permit will be issued by the City for the utility locating, CCTV, and topographic survey efforts.
Task C: Feasibility Study and Condition Assessment
Based on the information collected as part of Tasks A and B, HydroScience will prepare a 35% Basis of Design Memorandum. This document will contain the following elements.
• Plans developed to a 35% level of detail showing the proposed pipeline horizontal alignment, existing utilities, topographic survey, pipe material, and whether the pipeline goes over or under any perpendicular utilities.
• Tie-in intent will be identified for water and sewer connections to existing utilities. • Alternate project alignments will be identified and evaluated where appropriate. • The recommended construction method for each project reach will be identified. Open-cut construction is assumed as the default approach. Where required, HydroScience will evaluate alternate construction methods and make a recommendation for how to move forward. These evaluations will focus on reaches where surface disruption is infeasible or would be undesirable.
• Table of contents for specifications. It is assumed that all specifications will be based on City standards, and supplemented with additional specifications as required to reflect construction methods, City preferences, or other specifications not specifically present in existing City standards.
• Permitting needs. HydroScience will review available right-of-way from the topographic survey and the proposed alignment to determine what permit(s) may be required to construct the project. It is assumed that permits will be required from Valley Water and Caltrans for selected Phase 1 and Phase 2 project elements. CEQA documentation, assuming a Categorical Exemption, will be signed and provided by the City. Should a Mitigated Negative Declaration be required, optional services will be utilized for that purpose. It is expected that any new project work will minimize environmental impacts to avoid the need for mitigation or preparation of a CEQA document other than a Categorical Exemption.
• Proposed project schedule. A preliminary project schedule for design, bid advertisement, and construction will be included. The schedule will incorporate City council approval steps and will seek to initiate construction at the earliest feasible date. The schedule will identify the anticipated number of contract days to final completion.
• CCTV. CCTV information collected as part of the Condition Assessment phase (see Task B), or HydroScience’s review of CCTV information provided by the City, will be documented in the Basis of Design Memorandum.
• Construction sequencing. It is expected that bypass of the sewer pipelines will be required, and a narrative discussion of how the sewer bypassing will be performed will be provided in the Contract Documents. For the water projects, based on the tie-in locations and the pipeline alignments, areas where temporary pipelines are required to provide water service during construction will be identified.
HydroScience will prepare a draft 35% Basis of Design Memorandum containing information collected from Tasks A-C and submit it to the City. Comments from the City will be received in one consolidated review set, then reviewed in a workshop, per Task A. As appropriate, comments requiring discussion will be discussed in the workshop and/or responded to in writing in a decision log. Based on the final disposition of comments, a final 35% Basis of Design Memorandum will be prepared.
Deliverables:
• Basis of Design Memorandum (Draft and Final)
• Response to comments
Task D: Construction Documents
Based on the 35% Basis of Design Memorandum, HydroScience will advance the design and provide progress submittals to the City at the 50%, 90%, and 100%/Bid Set levels of completion for the Phase 1 projects. Responses to comments on each plan set will be incorporated into the subsequent submittals as appropriate. A decision log with notable responses to comments will be prepared by HydroScience and submitted to the City prior to submitting the following submittal.
The 90% PS&E sheets of work in Caltrans easements will be submitted to Caltrans and will be essentially ready for construction pending Caltrans comment. Comments from Caltrans and the City will be incorporated into the 100% Bid Set, which will be submitted to Caltrans for permit issuance. The 100%/Bid set will also be a complete set of contract documents that are suitable for advertisement. Any fees for the Caltrans Encroachment Permit will be paid by the City.
All plan drawings will be prepared in scales not smaller than 1” = 20’.
The proposed sheet list is as follows:
Sheet Title
1-5 Title Sheet, Vicinity Map, Sheet Index, Abbreviations, Symbols, Standard Notes 6 Blueprint for a Clean Bay
7 Topographic survey showing existing site conditions and potholed locations 8-13 Plan and Profiles – Water
14-19 Plan and Profiles – Sewer
20-23 Tie-in Details in plan and cross-section
24-30 City Standard Details
31-33 Civil Details and Bypass Schematics
34-36 Cathodic Protection Details
37 Traffic Control Plans for work in the Caltrans ROW
The project specifications will utilize the City’s standard technical specifications supplemented with project specific information as appropriate. All design work will be verified by the Engineer- of-Record to make sure that all specifications meet the intent of the design, whatever the source of the specifications. The specifications will be prepared in CSI format.
HydroScience will prepare project-specific information to insert into the City’s front-end specifications. The City will ultimately prepare and be responsible for the balance of the front- end specifications, and will include technical project information prepared by HydroScience, including but not limited to the description of the work, the construction duration, description of the bid items, measurement and payment, and other technical information as appropriate.
A construction cost estimate will be prepared for the project. The estimate will be prepared based on our experience preparing similar designs, quotes from vendors, and our review of the project conditions and available recent and relevant bid tabulations. The estimate will include the cost required to obtain a permit from Valley Water.
The contract documents will contain our approach to compliance with SWPPP requirements and C.3 provisions. It is expected that requirements for the Contractor to comply with will be included in the Contract Documents. Should conditions require preparation of a SWPPP or additional work to prepare documentation to comply with C.3 requirements, budget within Task K will be proposed for consideration by the City.
Where new utilities are installed with horizontal or vertical separations requiring a waiver from the DDW separation standards, HydroScience will prepare the tabular waiver requests in accordance with DDW standards for City review and acceptance. It is expected that this will be submitted with 90% PS&E in Word and PDF formats.
Deliverables:
• 50% PS&E
• 90% PS&E
• 100%/Bid Set PS&E (with AutoCAD, Project, Excel, Word, and native format file formats)
• Responses to comments/decision logs
• DDW Waiver Requests Package
Assumptions:
• The contract documents would be prepared for only the the Phase 1 water and sewer improvements.
• Phase 2 design work would be completed as part of a separate authorization.
Task E: Permitting
It is expected that permits will be required from Caltrans and Valley Water to construct the Phase 1 and Phase 2 portions of the project. Only permits required for Phase 1 will be obtained as part of this authorization.
All required permits will be identified as part of the Basis of Design Memorandum, which will also contain our approach to obtaining each permit. While we do not expect that other permits will be required, we will evaluate the need for CDFW, RWQCB, or Corps permits. Should those permits be required, we can prepare those permit applications using budgets from the additional services budget task.
Caltrans: HydroScience will prepare an Encroachment Permit Application for work within the Caltrans right-of-way. The encroachment permit application will be prepared in accordance with the Caltrans Checklist, and comply with the requirements of the Caltrans Encroachment Permit Manual. Items to be prepared by HydroScience to have a complete application will include:
• Providing Caltrans construction notes,
• Identifying the limits of Caltrans right-of-way
• Limits of excavations and pit details,
• Traffic control plans specific to the work in the Caltrans right-of-way • Plan and profile views of the utilities
• Stationing and offsets to the other utilities and Caltrans facilities • Details on the proposed pavement and trench section
• Plating requirements
• Stamped and signed plans for the proposed improvements
Task F: Quality Control/Quality Assurance
HydroScience will implement and maintain the following minimum quality control procedures during the preparation of plans, specifications, estimates, calculations, and all other documents relating to this project:
• Design and calculations will be independently checked, corrected and back checked; • When different disciplines are involved, verify that conflicts and misalignments do not exist between designs;
• Verify coordination and compatibility between the plans, specifications and estimated quantities;
• Conduct field reviews and reviews of all pertinent materials to verify compatibility of design with existing facilities to the extent possible given the data collected in Tasks A-C
Task G: Bidding Phase
HydroScience will assist City during bid solicitation and bid phase services as needed and requested up to the allowance outlined in the proposed budget. Services may include:
• Response to prospective bidder inquiries during the bidding period • Preparation of up to two addenda
• Attend up to two pre-bid meetings
• Review and evaluation of bids
• Preparing the conformed contract document package that incorporates all addenda issued during the bid period.
Assumptions
• City is responsible for bid advertisement and any costs associated with advertisement. • City is responsible for preparing for, coordinating, and hosting pre-bid meetings • Addendum prepared during bidding will be based on relatively minor comments or clarification to the design, not requiring significant design revisions.
Deliverables
• Responses to inquiries and addenda in PDF format.
Task H: Construction Administration
HydroScience will provide engineering services during construction as needed and requested up to the proposed number of labor hours shown in the fee. This scope covers one set of contract documents, one bid phase, and one construction phase. Services may include the following:
• HydroScience will support the City in construction matters related to compliance with the intent of the contract documents and timely completion of project. • HydroScience will attend selected construction meetings as directed by the City. For the purpose of this budget, we have assumed attending one pre-construction meeting and up to five on-site construction progress meetings.
• HydroScience will respond to selected RFIs generated by the Contractor. RFI reviews will be provided in the same format as the RFI was submitted. RFIs may address changed conditions, corrective actions, or items requested by the Contractor. We have assumed an average of four hours per RFI for up to 12 RFIs (48 hours). • HydroScience will review selected Potential Change Orders (PCOs) (up to 5) and provide comments and recommendations to the City.
• We expect that the City will require HydroScience to review up to 30 separate submittals, and their corresponding resubmittals. Submittal reviews will be returned to the City in the format utilized by the construction manager, which is expected to be either email or cloud based construction management software. At an average of about 4 hours per submittal, we have budgeted a total of 120 hours for this task.
• HydroScience will participate in the final punch list walk and note incomplete and/or unacceptable items for the City’s review and approval. HydroScience will attend a final close-out walk through with the City when the Contractor has corrected all punch list items.
All work performed for this task will be completed in a timely manner by HydroScience. It will be our goal to respond as expeditiously as possible to submittals, RFIs, and PCOs, and typically not longer than 10 days, of up to five days for PCOs or potential claims.
Assumptions
• City to provide Construction Management and inspection services. HydroScience is not responsible for providing construction quality control testing. • City to prepare for and run all construction meetings.
Deliverables:
• Responses to RFIs, submittals, and PCOs
Task I: Record Documents and Project Closeout
HydroScience will update the plans to reflect the as-built conditions of the project when construction is completed. Red-line drawings will be provided by the Contractor and used as the basis for preparing the as-built drawings. HydroScience shall submit an electronic copy of the Record Drawings in the latest AutoCAD format, PDF to the City within 25 calendar days of receipt of completed Contractor red line drawings. AutoCAD files shall meet the requirements set in the City’s “Guidelines for Submitting CAD Digital Files to the City Memo dated 10/11/12.
HydroScience will identify warranties and guarantees in the Contract Documents, and provide the City with a summary of the applicable warranty and guarantee time periods following issuance of the substantial completion certificate.
Deliverables:
• As-built drawings
Task J: Reimbursable Expenses
This task includes budget for reimbursable expenses associated with the completion of the work. Reimbursable expenses could include mileage, reprographics, purchasing supplies required to execute the work, travel, or other costs approved by the City.
Task K: Additional Services As Needed
This task is for additional services that may be needed to execute the Project, and will be issued only upon written confirmation by the City. The services provided as part of Task K can be services either specifically listed as potential Additional Services in this Scope of Work, or other work as directed by the City. The fixed budget for this task is 15% of the budget for Tasks A-J.
Should the City request optional services in excess of this amount, HydroScience will provide a quotation for additional services.
ID Task Name Duration Start Finish Predecessors
1 Notice to Proceed 0 days Fri 5/1/26 Fri 5/1/26
2 Task A: Project Administration and Coordination 615 days Fri 5/1/26 Thu 9/7/28 3 Project Management 615 days Fri 5/1/26 Thu 9/7/28 1
4 Kickoff Meeting 0 days Thu 5/7/26 Thu 5/7/26 1FS+5 days 5 BODM Workshop 0 days Thu 9/3/26 Thu 9/3/26 15
6 50% Workshop 0 days Thu 12/10/26 Thu 12/10/26 19FF
7 90% Workshop 0 days Thu 3/18/27 Thu 3/18/27 21FF
8 Task B: Field and Document Investigation 105 days Fri 5/8/26 Thu 10/1/26 9 Topographic Field Survey 30 days Fri 5/8/26 Thu 6/18/26 4 10 Utility Drawing Collection and Review 20 days Fri 5/8/26 Thu 6/4/26 4 11 Utility Locating 10 days Fri 9/4/26 Thu 9/17/26 5
12 CCTV 20 days Fri 9/4/26 Thu 10/1/26 5
13 Task C: Feasibility Study and Condition Assessmen65 days Fri 6/19/26 Thu 9/17/26 14 Draft Feasibility Study and Condition Assessment 25 days Fri 6/19/26 Thu 7/23/26 9 15 City Review 30 days Fri 7/24/26 Thu 9/3/26 14
16 Finalize Feasibility Study and Condition Assessment 10 days Fri 9/4/26 Thu 9/17/26 15 17 Task D: Construction Documents 156 days Fri 9/4/26 Fri 4/9/27 18 50% PS&E 40 days Fri 9/4/26 Thu 10/29/26 15
19 City Review 30 days Fri 10/30/26 Thu 12/10/26 18
20 90% PS&E 40 days Fri 12/11/26 Thu 2/4/27 19
21 City Review 30 days Fri 2/5/27 Thu 3/18/27 20
22 100%/Bid Set PS&E 15 days Mon 3/22/27 Fri 4/9/27 21,27 23 Task E: Permitting 31 days Thu 2/4/27 Mon 3/22/27
24 Caltrans 31 days Thu 2/4/27 Mon 3/22/27
25 Submit Caltrans Permit Application 0 days Thu 2/4/27 Thu 2/4/27 20 26 Caltrans Review 20 days Fri 2/5/27 Thu 3/4/27 25
27 Receive Caltrans Encroachment Permit 0 days Mon 3/22/27 Mon 3/22/27 26FS+15 days 28 Task F: Quality Control/Quality Assurance 150 days Fri 7/10/26 Thu 2/4/27 29 Feasibility Study QC/QA 10 days Fri 7/10/26 Thu 7/23/26 14FF 30 50% PS&E QC/QA 10 days Fri 10/16/26 Thu 10/29/26 18FF 31 90% PS&E QC/QA 10 days Fri 1/22/27 Thu 2/4/27 20FF
32 Task G: Bidding Phase 50 days Mon 5/24/27 Fri 7/30/27 33 Advertise Project 30 days Mon 5/24/27 Fri 7/2/27 22FS+30 days 34 Pre-Bid Meeting 0 days Fri 6/4/27 Fri 6/4/27 33SS+10 days 35 Bids Due 0 days Fri 7/2/27 Fri 7/2/27 33
36 Review Bids 10 days Mon 7/5/27 Fri 7/16/27 35
37 Prepare Conformed Drawings 20 days Mon 7/5/27 Fri 7/30/27 35 38 Task H: Construction Administration 260 days Mon 8/16/27 Fri 8/11/28 39 Construct Project (By Contractor) 260 days Mon 8/16/27 Fri 8/11/28 35FS+30 days 5/1
5/7
9/3
12/10
3/18
2/4
3/22
6/4
7/2
F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O 26 2027 2028
Sanitary Sewer Pipeline and Fire Flow Pipeline Improvements Project, Phase 1 Design and Phase 2 Predesign, CIP No. 6138 & 7150 Project Schedule
HydroScience Engineers
38077.00180\29175422.11 C2
2 EXHIBIT “B”
FEE AND PHASING/FUNDING SCHEDULES
Fee Proposal for the City of Milpitas Sanitary Sewer Pipeline and Fire Flow Pipeline Improvements Project, Phase 1 and Phase 2, CIP No. 6138 and 7150 HydroScience Engineers
March 17, 2026
Task Description
Curtis Lam
Project Manager
Marc Fernandez
Project Engineer
Tommy Phan
Staff Engineer
Eric Petrel
QC/QA
Drafting
Labor Hours
Fee
Direct Costs
HMH
Land Surveying
Bess Testlab
CCTV
Direct Charges Markup
Expense Subtotal with
Markup
Total Fee
Phase Totals
Hourly Billing Rates $330 $258 $208 $319 $179
A Project Administration and Coordination $32,184
Project Management 60 48 108 $32,184 $0 $0 $32,184
B Field and Document Investigation $134,554
Topographic Field Survey 1 4 16 21 $4,226 $85,000 $8,500 $93,500 $97,726 Field Survey/Utility Locating 4 8 24 24 60 $12,672 $0 $0 $12,672 Potholing/Ground Penetrating Radar 1 8 6 15 $3,468 $15,000 $1,500 $16,500 $19,968 CCTV 2 4 12 18 $4,188 $0 $0 $4,188
C Feasibility and Condition Assessmen t $131,140
C.W BODM - Water (Phase 1 & 2) 20 108 72 156 $77,364 $0 $0 $77,364 C.S BODM - Sewer (Phase 1 & 2) 20 72 48 104 $53,776 $0 $0 $53,776 D Construction Document s $261,862
D.W.1 50% PS&E - Water (Phase 1) 20 64 64 90 $52,534 $0 $0 $52,534 D.S.1 50% PS&E - Sewer (Phase 1) 20 36 36 60 $34,116 $0 $0 $34,116 D.W.2 90% PS&E - Water (Phase 1) 30 60 80 80 $56,340 $0 $0 $56,340 D.S.2 90% PS&E - Sewer (Phase 1) 30 40 40 60 $39,280 $0 $0 $39,280 D.W.3 100% PS&E - Water (Phase 1) 12 40 20 50 $27,390 $0 $0 $27,390 D.S.3 100% PS&E - Sewer (Phase 1) 12 20 12 30 $16,986 $0 $0 $16,986 SWPPP/C.3 8 24 80 112 $25,472 $0 $0 $25,472
DDW Waiver Requests 4 16 24 44 $9,744 $0 $0 $9,744
E Permitting $18,296
Caltrans 4 40 32 76 $18,296 $0 $0 $18,296
F Quality Control/Quality Assurance (QC/QA ) $9,570
QC/QA 30 30 $9,570 $0 $0 $9,570
G Engineering Services During the Bidding Phas e $10,980 Eng Services During Bidding 8 12 8 20 48 $10,980 $0 $0 $10,980 H Engineering Services During the Construction Phas e $63,800 Engineering Servcices During Construction 40 120 60 40 260 $63,800 $0 $0 $63,800 I Record Drawing and Project Closeou t $20,724
Record Drawings 4 24 40 68 $14,672 $0 $0 $14,672
Project Closeout 2 8 16 26 $6,052 $0 $0 $6,052
J Reimburseable Expenses $8,000
Reimburseable Expenses $0 $8,000 $0 $8,000 $8,000
K Additional Services As Needed $106,500
Additional Services $90,000 $15,000 $1,500 $16,500 $106,500 TOTAL 302 756 604 30 800 886 $663,110 $8,000 $85,000 $30,000 $11,500 $134,500 $797,610 Tasks A-J (Base Services) $691,110
Task K (Additional Services) $106,500
38077.00180\29175422.11
1 (BB&K: January 2015)
EXHIBIT “C”
COMPENSATION RATES AND REIMBURSABLE EXPENSES
LABOR CLASSIFICATION HOURL Y RATE
Principal $330
Engineer IX $319
Engineer VIII $308
Engineer VII $293
Engineer VI $280
Engineer V $269
Engineer IV $258
Engineer III $240
Engineer II $228
Engineer I $208
Engineering Aide $120
Construction Professional VI $220
Construction Professional V $210
Construction Professional IV $200
Construction Professional III $190
Construction Professional II $170
Construction Professional I $160
Cross Connection Control Specialist $145
CAD Manager $179
CAD Designer I $155
Marketing Professional $130
Administrative II $120
Administrative $105
HYDROSCIENCE ENGINEERS, INC.
2026 Standard Schedule of Billing Rates
Rates are subject to increase annually on January 1
of each calendar year.
Hourly billing rates include postage and telephone charges that are normal to the work authorized. Other direct costs for travel, reproduction, mail service, outside services, etc. will be invoiced at 110 percent of the actual cost. Rates for expert witness services shall be billed at the quoted rates plus $50/hour.
38077.00180\29175422.11
1 (BB&K: January 2015)
EXHIBIT “D”
INSURANCE REQUIREMENTS
Please refer to the insurance requirements listed below. Those that have an “X” indicated in the space before the requirement apply to Design Services Agreement.
Designer shall procure and maintain for the duration of the Agreement insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder and the results of that work by the Designer, its agents, representatives, employees or subcontractors.
Designer shall provide its insurance broker(s)/agent(s) with a copy of these requirements and request that they provide Certificates of Insurance complete with copies of all required endorsements.
Designer shall furnish City with copies of original endorsements affecting coverage required by this Exhibit D. The endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. All endorsements and certificates are to be received and approved by City before work commences. City has the right to require Designer’s insurer to provide complete, certified copies of all required insurance policies, including endorsements affecting the coverage required by these specifications.
Commercial General Liability (CGL):
___ Coverage at least as broad as Insurance Services Office (“ISO”) Form CG 00 01 covering CGL on an “occurrence” basis, including products and completed operations, property damage, bodily injury and personal and advertising injury with limits no less than $2,000,000.00 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit.
X Coverage at least as broad as ISO Form CG 00 01 covering CGL on an “occurrence” basis, including products and completed operations, property damage, bodily injury and personal and advertising injury with limits no less than $1,000,000.00 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit.
___ Coverage at least as broad as ISO Form CG 00 01 covering CGL on an “occurrence” basis, including products and completed operations, property damage, bodily injury and personal and advertising injury with limits no less than $5,000,000.00 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit.
Automobile Liability:
X Coverage at least as broad as ISO Form Number CA 0001 covering, Code 1 (any auto), of if Designer has no owned autos, Code 8 (hired) and 9 (non -owned), with limits no less than $1,000,000.00 combined single limit for bodily injury and property damage.
___ Coverage at least as broad as ISO Form Number CA 0001 covering, Code 1 (any auto), with limits no less than $5,000,000.00 combined single liit for bodily injury and property damage.
38077.00180\29175422.11 C2
2 ___ Garage keepers’ extra liability endorsement to extend coverage to all vehicles in the care, custody and control of the Designer, regardless of where the vehicles are kept or driven.
Professional Liability (Errors and Omissions):
X Insurance appropriates to the Designer’s profession, with limit no less than $1,000,000.00 per occurrence or claim, $2,000,000.00 aggregate.
___ (If Design/Build), with limits no less than $1,000,000.00 per occurrence or claim, and $2,000,000.00 policy aggregate.
___ Insurance appropriates to the Designer’s profession, with limit no less than ______ per occurrence or claim, ______ aggregate
Workers’ Compensation Insurance:
X Insurance as required by the State of California, with Statutory Limits, and Employer’s Liability Insurance with limit of no less than $1,000,000.00 per accident for bodily injury or disease. (Not required if Designer provides written verification it has no employees)
The Employer’s Liability policy shall be endorsed to waive any right of subrogation as respects the City, its elected and appointed officials, officers, attorneys, agents, and employees.
Builder’s Risk (Course of Construction):
___ Insurance utilizing an “All Risk” (Special Perils) coverage form, with limits equal to the completed value of the project and no coinsurance penalty provisions. If the project does not involve new or major reconstruction, at the option of the City, an In stallation Floater may be acceptable. For such projects, a Property Installation Floater shall be obtained that provides for the improvement, remodel, modification, alteration, conversion or adjustment to existing buildings, structures, processes, machinery and equipment.
The Property Installation Floater shall provide property damage coverage for any building, structure, machinery or equipment damaged, impaired, broken, or destroyed during the performance of the Work, including during transit, installation, and testing at the City’s site.
Pollution Legal Liability:
___ Designer’s legal liability and/or Asbestos Legal Liability and/or Errors and Omissions (if project involves environmental hazards) with limits no less than $1,000,000.00 per occurrence or claim and $2,000,000.00 policy aggregate.
If the Designer maintains higher limits than the minimums shown above, the City requires and shall be entitled to coverage for the higher limits maintained by the Designer. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to City.
Cyber Liability Insurance
___ Cyber Liability Insurance with limits not less than $1,000,000 per claim.
Coverage shall be sufficiently broad to respond to the duties and obligations as is undertaken by Designer in this Agreement and shall include, but not be limited to, claims involving infringement of intellectual property, including but not limited to infringement of copyright, trademark, trade dress, invasion of privacy
38077.00180\29175422.11 C2
3 violations, information theft, damage to or destruction of electronic information, release of private information, alteration of electronic information, extortion, and network security.
The policy shall provide coverage for breach response costs as well as regulatory fines and penalties, and credit monitoring expenses with limits sufficient to respond to these obligations.
Surety Bonds:
Designer shall provide the following Surety Bonds:
____ Bid Bond
____ Performance Bond
____ Payment Bond
The Payment Bond and Performance Bond shall be in a sum equal to the contract price. Bonds shall be duly executed by a responsible corporate surety, authorized to issue such bonds in the State of California and secured through an authorized agent with an office in California.
Other Insurance Provisions:
The insurance policies are to contain, or be endorsed to contain the following provisions:
X Additional Insured Status and Primary/Non-Contributory Language:
Contractor’s general liability and automobile liability policies shall be primary and shall not seek contribution from the City’s coverage and be endorsed to add the City and its elected and appointed officials, officers, attorneys, agents employees and vo lunteers as additional insureds under such policies using Insurance Services Office form CG 20 10 (or equivalent) on the general liability policy. For construction projects, an endorsement providing completed operations coverage for the additional insured on the general liability policy, ISO form CG 20 37 (or equivalent), is also required.
The limits of insurance required in this Agreement may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and non -contributory basis for the benefit of City (if agreed to in a written contract or agreement) before the City’s own insurance or self-insurance shall be called upon to protect it as a named insured.
___ Loss Payee Status – Builder’s Risk/Course of Construction Insurance (applicable to Construction Contracts only)
Designer may submit evidence of Builder’s Risk insurance in the form of Course of Construction coverage.
Such coverage shall name the City as a loss payee as their interest may appear.
X Notice of Cancellation, Suspension or Otherwise Voiding Policies:
Each insurance policy required above shall contain or be endorsed to contain that coverage shall not be suspended, voided, canceled or reduced in coverage or in limits except with thirty (30) days’ prior written notice by certified mail, return receipt requested to the City.
X Waiver of Subrogation:
Designer hereby grants to City a waiver of any right to subrogation which any insurer of said Designer may acquire against the City by virtue of the payment of any loss under such insurance. Designer agrees to
38077.00180\29175422.11 C2
4 obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer.
The Workers’ Compensation Policy shall be endorsed with a waiver of subrogation in favor of the City for all work performed by Designer, its employees, agents and subcontractors.
___ Completed Operations
For Construction Agreements, Designer shall maintain insurance as required by this Agreement to the fullest amount allowed by law and shall maintain insurance for a minimum of five (5) years following the completion of this project. In the event Designer fails to obtain or maintain completed operations coverage as required by this Agreement, the City at its sole discretion may purchase the coverage required and the cost will be paid by Designer.
THE FOLLOWING PROVISIONS APPLY TO ALL AGREEMENTS
Deductibles and Self-Insured Retentions (“SIR”):
Any deductibles or self-insured retentions must be declared to and approved by City. The City may require the Designer to purchase coverage with a lower deductible or retention or provide proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention. At the option of the City, either (1) the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its elected and appointed officials, officers, attorneys, agents, and employees; or (2) the Designer shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses.
All SIRs must be disclosed to Risk Management for approval and shall not reduce the limits of liability.
Policies containing any SIR provision shall provide or be endorsed to provide that the SIR may be satisfied by either the named insured or the City.
City reserves the right to obtain a full-certified copy of any insurance policy and endorsements. Failure to exercise this right shall not constitute a waiver of right to exercise later.
Acceptability of Insurers:
Insurance is to be placed with insurers with a current A.M. Best’s rating of no less than A -:VII, unless otherwise acceptable to City.
Claims Made Policies: (note - should be applicable only to professional liability, see below)
1. The Retroactive Date must be shown and must be before the date of the contract or the beginning of contract work.
2. Insurance must be maintained, and evidence of insurance must be provided for at least five (5) years after completion of contract of work.
3. If coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a Retroactive Date prior to the contract effective date, the Designer must purchase “extended reporting” coverage for a minimum of five (5) years after completion of work.
38077.00180\29175422.11 C2
5 4. A copy of the claims reporting requirements must be submitted to the City for review.
5. If the services involve lead -based paint or asbestos identification/remediation, the Designer’s Pollution Liability Policy shall not contain lead -based paint or asbestos exclusions. If the services involve mold identification/remediation, the Designer’s Pollution Liability Policy shall not contain a mold exclusion, and the definition of Pollution shall include microbial matter, including mold.
Subcontractors:
Designer shall require and verify that all subcontractors maintain insurance meeting all the requirements stated herein, and Designer shall ensure that City is an additional insured on insurance required from subcontractors.
Subcontractor agrees to be bound to Designer and City in the same manner and to the same extent as Designer is bound to City under this Agreement and any other contract documents. Subcontractor further agrees to include the same requirements and provisions of this Agreement, including the indemnity and insurance requirements, with any sub -subcontractor to the e xtent they apply to the scope of the sub - subcontractor’s work. A copy of the City indemnity and insurance provisions will be furnished to the subcontractor upon request.
Verification of Coverage:
Designer shall furnish the City with original certificates and amendatory endorsements or copies of the applicable policy language effecting coverage required by this clause. All certificates and endorsements are to be received and approved by the City before work commences. However, failure to obtain the required documents prior to the work beginning shall not waive the Designer’s obligation to provide them. The City reserves the right to require complete, certified copies of all required insurance policie s, including endorsements required by these specifications, at any time.
Special Risks or Circumstances
City reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage or other special circumstances.
Failure to Comply:
Each insurance policy required above shall contain or be endorsed to contain that any failure to comply with reporting provisions of the policies shall not affect coverage provided to the City, its elected and appointed officials, officers, attorneys, agents, and employees.
Applicability of Coverage:
Each insurance policy required above shall contain or be endorsed to contain that the Designer’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability.
DATE: October 30, 2025
The City of Milpitas is pleased to announce the establishment of a qualified list of consultants for comprehensive design and construction support services related to the City’s Water Master Plan, Sewer Master Plan and adopted Capital Improvement Program (CIP).
Project Overview: The City sought proposals from qualified firms to provide design and construction support services for projects listed in the City’s Water Master Plan, Sewer Master Plan and CIP.
Qualified Consultant List: The following consultants have been determined to be the most qualified and are included in the consultant list for a period of five (5) years:
• Carollo Engineers
• Hydroscience Engineers
• Kimley-Horn
• MNS Engineers, Inc.
• Schaaf & Wheeler
• Water Works Engineers
• West Valley Construction Company Inc.
While some consultants may have already received contracts for specific projects, all qualified firms will remain on the list for the full five-year period and may be considered for future related opportunities.
The City of Milpitas thanks all consultants for their participation in this procurement process.
Sincerely,
Michael Silveira, P.E. - City Engineer
CITY OF MILPITAS
AGENDA REPORT
(AR)
Item Title: Adopt Resolutions Approving the Annual Engineer’s Report and Declaring Its Intention to Levy and Collect Assessments, and Provide Notice of Public Hearing for Landscaping and Lighting Maintenance Assessment District No. 98-1 Sinclair Horizon (Staff Contact: Christian Di Renzo, Public Works Director, 408-586-2602; and Michael Silveira, City Engineer, 408-586-3303) Category: Consent Calendar-Community Development
Meeting Date: 4/21/2026
Recommendation: (1) Adopt a resolution approving the Annual Engineer’s Report; and, (2) Adopt a resolution declaring its intention to levy and collect assessments and provide notice of public hearing to be held on May 19, 2026, for Landscaping and Lighting Maintenance Assessment District No. 98-1 Sinclair Horizon.
BACKGROUND:
In 1998, the City Council completed its proceedings in accordance with and pursuant to the Landscaping and Lighting Act of 1972, Part 2, Division 15 of the California Streets and Highways Code (commencing with Section 22500) (Act) to establish the Landscaping and Lighting Maintenance Assessment District 98-1 (LLMD 98-1 Sinclair Horizon).
LLMD 98-1 Sinclair Horizon provides for the maintenance and improvement of public landscaping, irrigation systems, and a pedestrian walking path adjacent to Sinclair Frontage Road and Los Coches Creek abutting the Sinclair Horizon residential subdivision in the areas as shown on the attached location map (Attachment A).
Staff retained the consulting firm NBS for the purpose of assisting with the annual levy of the LLMD 98-1 Sinclair Horizon, and the preparation and filing of the report required pursuant to Section 22622 of the Act (the Annual Engineering Report).
ANALYSIS:
Before the City Council may levy the annual assessments for LLMD 98-1 Sinclair Horizon, the Act requires the City Council to adopt a resolution approving the Annual Engineer’s Report (Attachment B) evaluating the district’s landscape and lighting maintenance and improvement costs for Fiscal Year (FY) 2026-27. On February 17, 2026, the City Council directed the City Engineer to prepare the Annual Engineer’s Report, which is included in the City Council agenda packet. The proposed total assessment for FY2026-27 is $538.32 per lot, with an assessment rate not exceeding the maximum assessment rate of $605.63. The FY2026-27 rate is approximately 0.0167% lower than the previous fiscal year (FY2025-26) rate of $538.41 due to adjusting expenses for materials to maintain the district.
Staff recommends City Council adopt Resolutions approving the Annual Engineering’s Report (Attachment C) and declaring its intent to levy and collect an assessment and providing notice of a public hearing to be held on May 19, 2026, (Attachment D) for LLMD 98-1 Sinclair Horizon in Fiscal Year 2026-27.
PROJECT SCHEDULE/KEY MILESTONES
Upon approval of the annual Engineer’s Report and declaring its intention to levy and collect assessments, staff will conduct a public hearing and recommend City Council adopt a resolution confirming annual assessments and ordering the levy for the district on May 19, 2026.
POLICY ALTERNATIVE(S):
Alternative 1: Do not adopt the Resolutions for LLMD 98-1 Sinclair Horizon.
Pros: None.
Cons: If the City Council does not adopt the Resolutions according to the Landscaping and Lighting Act of 1972, the City will be unable to collect assessments for LLMD 98-1 Sinclair Horizon.
Reason Not Recommended: Staff recommend approving the Resolutions in order to levy and collect assessments for fiscal year 2026-27 to allow for the continued maintenance and improvements of LLMD 98-1 Sinclair Horizon.
FISCAL IMPACT:
The levy and collection of assessments provide the City with the resources needed for ongoing maintenance and servicing of the improvements. The FY 2026-27 maintenance cost budget for the LLMD 98-1 is estimated to be $65,785. The City maintains an operating reserve, not to exceed the estimated maintenance costs.
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):
A levy and collection of assessments has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment and is not a project pursuant to Pub. Resources Code, §21065 and Cal. Code Regs., tit. 14, §15378. The action is a fiscal activity of the City government or an action to create a City government funding mechanism that does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment and is not a project pursuant to Cal. Code of Regs., tit. 14, §15378. To the extent the funds generated by this levy and collection would be used to fund any currently contemplated projects, such projects entail the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use and is exempt from CEQA pursuant to Cal. Code Regs., tit. 14, §15301.
ATTACHMENT(S):
(a) Location Map
(b) Engineer’s Report for LLMD No. 98-1 Sinclair Horizon (c) Resolution Approving Annual Engineer’s Report
(d) Resolution Declaring Intention to Levy and Collect Assessments
CITY OF MILPITAS
LANDSCAPING MAINTENANCE DISTRICT (LMD) 98-1
(N.T.S.)
2026-2027 FISCAL YEAR LANDSCAPE AREA FUNDED FOR MAINTENANCE S T
Fiscal Year 2026/27 Engineer’s Report For:
Landscaping and Lighting Maintenance
Assessment District No. 98-1
May 2026
CITY OF MILPITAS
LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT NO. 98-1 455 East Calaveras Boulevard
Milpitas, California 95035
(408) 586-3000
CITY COUNCIL
Carmen Montano, Mayor
Gary Barbadillo, Vice Mayor
Evelyn Chua, Council Member
Hon Lien, Council Member
William Lam, Council Member
CITY STAFF
Michael Silveira, PE, City Engineer
Luz Cofresi-Howe, Finance Director/Risk Manager
Christian Di Renzo, Public Works Director
NBS
Kristin Harvey, Client Success Ambassador
Adina McCargo, Project Manager
Jason Roth, Administrator
TABLE OF CONTENTS
1. Engineer’s Letter ............................................................................................................. 1
2. Plans and Specifications .................................................................................................. 3
2.1 Location of Improvements ...................................................................................... 3
2.2 Landscaping Improvements .................................................................................... 3
2.3 Capital Improvements ............................................................................................. 4
2.4 Overhead ................................................................................................................. 4
3. Estimate of Costs ............................................................................................................ 5
3.1 District Budget ......................................................................................................... 5
4. Special and General Benefit ............................................................................................ 7
4.1 Introduction ............................................................................................................. 7
4.2 Special Benefits Identified ....................................................................................... 7
4.3 General Benefits Identified ..................................................................................... 8
4.4 Quantification of Benefit ......................................................................................... 8
5. Method of Assessment ................................................................................................. 13
5.1 Method of Assessment Spread ............................................................................. 13
5.2 Maximum Assessment Rates ................................................................................ 14
5.3 Appeals .................................................................................................................. 14 Appendix A - Assessment Diagram ......................................................................................... A Appendix B - Assessment Roll ................................................................................................ B
City of Milpitas
Fiscal Year 2026/27 – LLMAD No. 98-1 Engineer’s Report 1
1. ENGINEER’S LETTER
WHEREAS, in 1998, the City Council of the City of Milpitas (the “City”), State of California, under the Landscaping and Lighting Act of 1972 (the “Act”), created the City of Milpitas Landscaping and Lighting Maintenance Assessment District No. 98-1 (the “District”) to provide for the continued maintenance, operation, and administration of various improvements within the boundaries of the District; and WHEREAS, the City Council has directed NBS to prepare and file a report for Fiscal Year 2026/27 in accordance with Chapter 1, Article 4 of the Act presenting plans and specifications describing the general nature, location, and extent of the improvements to be maintained; an estimate of the costs to maintain, operate, and service the improvements for the District for the referenced fiscal year; a diagram for the District showing the area and properties to be assessed; and an assessment of the estimated costs to maintain and service the improvements, stating the net amount to be assessed upon all assessable lots or parcels within the District in proportion to the special benefit received.
NOW THEREFORE, the following assessments have been calculated in accordance with the assessment methodology adopted and approved by the City Council at the time of District formation, and are made to cover the portion of the estimated costs of maintenance, operation, and servicing of the improvements, to be paid by the assessable real property within the District in proportion to the special benefit received:
District Parcels
2026/27
Maximum Assessment
Rate per Lot(1)
2026/27
Actual Assessment
Rate per Lot
2026/27
Net Amount to be
Assessed(2)(3)
LLMAD 98-1 98 $605.63 $538.32 $52,755.36
(1) The April 1, 2026 Consumer Price Index (CPI) provided by the U.S. Bureau of Labor Statistics was not available at the time of writing of this report. The Fiscal Year 2026/27 CPI increase was estimated using the February 1, 2026 CPI. (2) Amounts placed on the tax roll include the 1% Santa Clara County Collection Fee. (3) This amount is only an estimate and does not reflect the final billed amount with rounding adjustments. Refer to Section 7 for the rounded figure.
I identified all parcels which will have a special benefit conferred upon them from the improvements described in District’s Plans and Specifications section of this Engineer’s Report (the “Benefited Parcels”).
For particulars as to the identification of said parcels, reference is made to the Assessment Diagram, a copy is on file in the office of the City Clerk.
I have assessed the costs and expenses of the improvements upon the Benefited Parcels. In making such assessment:
a. The proportionate special benefit derived by each Benefited Parcel from the improvements was determined in relationship to the entirety of the maintenance costs of the improvements; b. No assessment has been imposed on any Benefited Parcel which exceeds the reasonable cost of the proportional special benefit conferred on such parcel from the improvements; and c. Any general benefits from the improvements have been separated from the special benefits and only special benefits have been assessed.
City of Milpitas
Fiscal Year 2026/27 – LLMAD No. 98-1 Engineer’s Report 2 I, the undersigned, respectfully submit the enclosed Engineer’s Report and, to the best of my knowledge, information and belief, the Engineer’s Report, Assessments, and the Assessment Diagrams herein have been prepared and computed in accordance with the order of the City Council of the City of Milpitas, the Act, and Article XIIID.
Michael Silveira, City Engineer
City of Milpitas
Fiscal Year 2026/27 – LLMAD No. 98-1 Engineer’s Report 3
2. PLANS AND SPECIFICATIONS
The District provides for the continued administration, maintenance, operation, and servicing of various improvements located within the public right-of-way and dedicated easements within the boundaries of the District.
2.1 Location of Improvements
The District is located in the City of Milpitas, bounded on the east by Sinclair Frontage Road, on the west by Berryessa Creek, and on the north by Los Coches Street. The improvements maintained include public landscaping and irrigation improvements, including jogging paths, planter walls, grass berms, and ornamental planting, which are primarily situated within the public rights-of-way and dedicated public easements within the District.
2.2 Landscaping Improvements
The landscaping and irrigation improvements were installed within the District in order to enhance the overall visual appearance for adjacent parcels. The improvements consist of the maintenance and operation of any or all public landscaping and irrigation improvements adjacent to curbs, including asphalt concrete jogging paths, planter walls, grass berms, and appurtenant irrigation systems; ornamental planting including lawns, shrubs, and trees, including necessary repairs, replacements, water, electric current, spraying, care, supervision, debris removal and all other items of work necessary and incidental for proper maintenance and operation thereof. The landscaping and irrigation improvements are collectively referred to as “landscaping improvements.” All such work will be performed in the following areas:
2.2.1 BERRYESSA CREEK
Due to the widening of the creek, improvements in Berryessa Creek were removed. Any improvements maintained in this reach (asphalt concrete jogging path, exercise equipment, planting, and irrigation) will no longer be maintained or improved.
2.2.2 LOS COCHES CREEK
1. A strip of land 812 feet long, 14 feet in width along the south bank of Los Coches Creek adjacent to Tract 9018. The improvements include an asphalt concrete jogging path, exercise equipment, planting, and irrigation.
2. A strip of land 5.5 feet wide within the Los Coches Street right-of-way between the back of sidewalk and the right-of-way along the south side of Los Coches Street between Berryessa Creek and Sinclair Frontage Road. The improvements include planting and irrigation.
City of Milpitas
Fiscal Year 2026/27 – LLMAD No. 98-1 Engineer’s Report 4
2.3 Capital Improvements
In 2023, the City completed the replacement of the irrigation controller and repairs of the irrigation system along portions of Los Coches Street and Sinclair Frontage Road. The City is planning to continue planting renovations in 2026/2027.
2.4 Overhead
In addition to the hard costs of maintaining the improvements mentioned above, the City will incur costs for staff time and expenses related to the management and maintenance of the improvements within the District. Staff time includes oversight and coordination of both City and contractor provided services, annual tax roll preparation, and addressing property owner questions and concerns. These activities are directly related to the maintenance of the improvements, and without them the improvements could not be efficiently completed or properly maintained on an ongoing basis.
City of Milpitas
Fiscal Year 2026/27 – LLMAD No. 98-1 Engineer’s Report 5
3. ESTIMATE OF COSTS
The estimated costs of maintenance and servicing of the improvements as described in the Plans and Specifications are summarized below.
3.1 District Budget
The Fiscal Year 2026/27 estimated cost budget for the maintenance and servicing of the improvements is as follows:
Description Fiscal Year 2026/27 Budget
Maintenance Staff(1) $32,085
Capital Equipment 0
Supplies 2,400
Utilities (Water, Electricity) 11,800
Reserve Fund 0
Capital Improvement Program 19,500
Maintenance Costs $65,785
NBS $4,300
City Staff District Administration 3,040
County Auditor-Controller Fee(2) 550
District Specific Costs $7,890
Total District Costs $73,675
General Benefit Contribution(3) (20,920)
Operating Reserve Contribution 0
Capital Improvement Fund Contribution 0
Net Amount to be Assessed $52,755
Total District Lots 98
Rate per Lot(4) $538.32
Maximum Rate Per Lot – 2026/27(5) $605.63
(1) The City’s Department of Public Works is the provider of Maintenance Services. (2) County Auditor-Controller Fee is currently 1% of the total levy submittal. (3) General Benefit Contribution is not applied to District Specific Costs, as these are special benefits to the District. (4) The Rate per Lot equals the Net Amount to be Assessed / Total District Lots. The Rate per Lot cannot exceed the maximum rate.
(5) The April 1, 20 26 CPI was not available at the time of writing of this report. The Fiscal Year 20 26/27 CPI increase was estimated by using the February 1, 2026 CPI.
City of Milpitas
Fiscal Year 2026/27 – LLMAD No. 98-1 Engineer’s Report 6
3.1.1 OPERATING RESERVE
It is the intent of the City to maintain an operating reserve which shall not exceed the estimated costs of maintenance and servicing of the improvements prior to December 10 of the fiscal year, or when the City expects to receive its apportionment of special assessments from the County, whichever is later. The operating reserve balance information for the District is as follows:
Estimated Fiscal Year Ending 6/30/2026 Operating Reserve Cash Balance $147,201 Operating Reserve Collection for Fiscal Year 2026/27 0
Estimated Fiscal Year Ending 6/30/2027 Operating Reserve Cash Balance $147,201
3.1.2 CAPITAL IMPROVEMENT BUDGET
The City completed the replacement of the irrigation controller and repairs of the irrigation system along portions of Los Coches Street and Sinclair Frontage Road in 2023. The City is planning to continue planting renovations in 2026/2027. As of March 20, 2026, the balance available for the Capital Improvement Project was $142,391.35. The City will utilize these funds, along with an annual collection of $20,000 via the District from Fiscal Year 2025/26 to Fiscal Year 2028/29, to finance the project.
City of Milpitas
Fiscal Year 2026/27 – LLMAD No. 98-1 Engineer’s Report 7
4. SPECIAL AND GENERAL BENEFIT
The improvements defined in Section 2 are expected to confer certain special benefits to parcels within the District. The special benefits are described in this section. Figures in this section are derived from a Special v. General Benefit Analysis performed in Fiscal Year 2014/15.
4.1 Introduction
Pursuant to Article XIIID, all parcels that receive a special benefit conferred upon them as a result of the installation, implementation and maintenance of the improvements, services and activities shall be identified, and the proportionate special benefit derived by each identified parcel shall be determined in relationship to the entire costs of the installation, implementation and maintenance of the improvements, services and activities.
Article XIIID, Section 4(a) of the California Constitution limits the amount of any assessment to the proportional special benefit conferred on the property. Proposition 218 requires that the City separate the general benefit from special benefit, so that only special benefit may be assessed to properties within the District. Furthermore, Article XIIID also provides that publicly owned properties must be assessed unless there is clear and convincing evidence that those properties receive no special benefit from the assessment.
4.2 Special Benefits Identified
The improvements described in Section 2 are expected to confer certain special benefits to parcels within the District. The special benefits conferred to property within the District can be grouped into two primary benefit categories: aesthetic benefit and safety benefit. The two district benefit categories are further expanded upon below.
• Improved Aesthetics: The aesthetic benefit relates to the increase in the overall aesthetics as a result of the ongoing maintenance, servicing and operation of the improvements within the District. Street landscaping improvements improve the livability, commercial activity, appearance and desirability for properties within the District. Regular maintenance ensures that the improvements do not reach a state of deterioration or disrepair so as to be materially detrimental to properties adjacent to or in close proximity to the improvements. The overall appeal of the District is enhanced when improvements are in place and kept in a healthy and satisfactory condition. Conversely, appeal decreases when improvements are not well-maintained, unsafe, or destroyed by the elements or vandalism. Streetscapes have a significant effect on how people view and interact with their community1. With streetscapes that are safe and inviting, people are more likely to walk, which can help reduce automobile traffic, improve public health, stimulate local economic activity and attract residents and visitors to the community2. • Increased Safety: Well maintained areas mitigate crime, especially vandalism, and enhance pedestrian safety. A recent study found that after landscape improvements were installed, there
1 Victoria Transport Policy Institute. (2011). Community Livability. Helping to Create Attractive, Safe, Cohesive Communities. Retrieved from http://www.vtpi.org/tdm/tdm97.htm.
2 Ibid.
City of Milpitas
Fiscal Year 2026/27 – LLMAD No. 98-1 Engineer’s Report 8 was a 46% decrease in crash rates across urban arterial and highway sites and a second study reviewed found a 5% to 20% reduction in mid-block crashes after trees and planters in urban arterial roads were put in place. In addition, there is less graffiti, vandalism, and littering in outdoor spaces with natural landscapes than in comparable plant-less spaces3. The Victoria Transport Policy Institute has found that streetscapes reduce traffic speeds and when combined with improved pedestrian crossing conditions can significantly reduce collisions4.
4.3 General Benefits Identified
Section 4 of Article XIIID of the California Constitution provides that once a local agency which proposes to impose assessments on property has identified those parcels that will have special benefits conferred upon them and upon which an assessment will be imposed, the local agency must next “separate the general benefits from the special benefits conferred,” and only the special benefits can be included in the amount of the assessments imposed.
General benefit is an overall and similar benefit to the public at large resulting from the maintenance of the District’s improvements provided by the assessments levied. The improvements to be maintained by the District are located within the District boundaries only. There will be no District maintenance activities provided for improvements located outside of the District boundaries.
The ongoing maintenance of the District improvements will provide aesthetic and safety benefits to the property within the District. However, it is recognized that the ongoing District maintenance activities will also provide a level of benefit to some property within proximity to the District, as well as individuals passing through. Therefore, the general benefit created as a result of the District maintenance activities has been considered.
4.4 Quantification of Benefit
As a result of the maintenance and operation of the improvements, there will be a level of general benefit to people that do not live in or intend to conduct business within the District. In order for property within the District to be assessed only for that portion of special benefits received from the district’s maintenance activities, general benefits provided by the ongoing maintenance of the improvements needs to be quantified. The amount of general benefit that is provided from the District’s maintenance activities cannot be funded via property owners’ assessments.
The landscaping improvements are primarily located along Los Coches Street and Sinclair Frontage Road and within the subdivision along Los Coches Creek and Berryessa Creek. A portion of the maintained landscaping provides some general benefit to pass-thru traffic. Per the City, there is 52,912 square feet of landscaping being maintained.
Los Coches Creek and Berryessa Creek
As result of the District maintenance activities, there will be a level of general benefit to pedestrians and vehicular traffic that are not associated with property in the District. As expressed by the Court in Beutz v.
3 Wolf, Kathleen L. (2010). Safe Streets – A Literature Review. In: Green Cities: Good Health (www.greenhealth.washington.edu). College of the Environment, University of Washington.
4 Victoria Transport Policy Institute. (2011). Community Livability. Helping to Create Attractive, Safe, Cohesive Communities. Retrieved from http://www.vtpi.org/tdm/tdm97.htm.
City of Milpitas
Fiscal Year 2026/27 – LLMAD No. 98-1 Engineer’s Report 9 County of Riverside (2010), “... courts of this state have long recognized that virtually all public improvement projects provide general benefits." A route beginning or ending with a parcel within the District does not include the “general public” for purposes of determining general benefit. The landscaping improvements along the south side of Los Coches Creek and Berryessa Creek are local in nature, however even though they are intended primarily for localized access, there is some portion of pedestrian traffic that may not be accessing the adjacent properties. The landscaping improvements are located adjacent to the backyard of homes, and access is only available by walking or bicycling. There is no vehicular access to these improvements.
The Summary of Travel Trends, 2009 National Household Travel Survey (NHTS) prepared by the U.S.
Department of Transportation Federal Highway Administration analyzed the number of person trips by various modes of transportations such as private vehicle, transit, walking or some other means of transportation. According to the Pacific Division data extracted from the 2009 NHTS database, of the annual 181,703 (in millions) total person trips, 21,252 (in millions) or 11.70% of those person trips were made by using walking as their mode of transportation, and 2,066 (in millions) or 1.14% of those person trips were made by bicycling5.
According to the U.S. Census Bureau (2010), the average household size in the City is 3.34 persons6. Based on this average household size, and considering there are 98 residential units within the District, there are approximately 327 people residing within the District boundaries. There are an estimated 163 residential units in close proximity, but outside of the District boundaries. Based on the City’s average household size, there are approximately 544 persons residing outside of the District boundaries, but have access to the landscaping improvements.
Community
Estimated Number
of Residential Units
Estimated
Number of Persons(1)
District 98 327
Sundrop Subdivision 83 277
Sinclair Renaissance Subdivision 80 267
Total Residential Population 261 871
(1) U.S. Census Bureau (2010) average household size in the City is 3.34 persons.7
In order to determine the estimated total number of persons who are within close proximity to the landscaping improvements, and would utilize walking or bicycling as their mode of transportation, we applied the 12.84% (11.70% walking, 1.14% bicycling) of person trips reported from the NHTS Pacific Division study, to the total nearby residential population (871). There are approximately 112 people within close proximity of the District that utilize walking or bicycling as their mode of transportation.
In order to determine the portion of the 112 persons that reside within the District, we applied the 2009 NHTS walking trip percentage (12.84%) to the District population (327). Approximately 42 people within the
5 U.S Department of Transportation. Federal Highway Administration. (2011). Summary of Travel Trends: 2009 National Household Travel Survey. (Report No. FHWA-PL-11-022). Retrieved from http://nhts.ornl.gov 6 U.S. Census Bureau. (2010). Profile of General Population and Housing Characteristics: 2010, 2010 Demographic Profile Data. Milpitas, C.A. Retrieved March 23, 2015, http://quickf acts.census.gov/qf d/states/06/0647766.html 7 Ibid.
City of Milpitas
Fiscal Year 2026/27 – LLMAD No. 98-1 Engineer’s Report 10 District boundaries use walking or bicycling as their primary mode of transportation. Therefore, the total surrounding neighborhood area population, located outside of the District boundaries, but in close proximity the landscaping improvements, that uses walking or bicycling as their primary mode of transportation is estimated to be 70 people.
Community
Estimated Number of
Persons
District 42
Sundrop Subdivision 36
Sinclair Renaissance Subdivision 34
Walking or Bicycling Population 112
In order to obtain a better picture of the overall level of general benefit provided by the landscaping improvements, the pedestrian traffic that utilizes walking or bicycling as the mode of transportation that will seek out and use the District improvements, but live outside of the District, must be considered. The 2009 NHTS further details the purposes of the reported walking (21,252 in millions) and bicycling (2,066 in millions) trips; based on the property types people entering the District would most likely do so for social or recreational activities.
The following details the number of walking and bicycling trips, based on the 2009 NHTS study, for each of the activities that are the most likely reasons people outside of the District would use the landscaping improvements:
Trip Purpose
Number of Walking or
Bicycling Trips (in millions)
Social/Recreational 6,442
Total 6,442
Of the total number of walking and bicycling trips reported, 6,442 (in millions) or 27.63% are for purposes that persons outside of the District may use the landscaping improvements. Applying this percentage (27.63%) to the number of people walking or bicycling as their mode of transportation and that reside outside of the District (70), there are approximately 19 people (general benefit) that may use the landscaping improvements, but do not reside within the District. Taking the 19 people that may walk or bicycle, but reside outside of the District, divided by total residential population with access to the landscaping improvements (871), the estimated percentage of persons, engaging in what is considered general benefit because they do not reside within the District, represents 2.21%.
Los Coches Street and Sinclair Frontage Road
The City does not have a study showing traffic volume along Los Coches Street and Sinclair Frontage Road along the District boundaries. The portion of the maintained landscaping that is located along Los Coches Street and Sinclair Frontage Road provides some general benefit to pass-through traffic. Before the determination and allocation of the percentage of special and general benefit for the District can be made, the estimated pass-through traffic must be computed. The pass-through trips are vehicles driving along the
City of Milpitas
Fiscal Year 2026/27 – LLMAD No. 98-1 Engineer’s Report 11 maintained streets within the District for a portion of their trips, but not living or conducting business in the District and benefiting from the landscaping improvements in place.
The Sundrop and Sinclair Renaissance residential communities are located directly across the street and next to the District, and vehicles entering and/or exiting these communities in all likelihood are passing by a portion of the landscaping improvements for a portion of their trip. In lieu of having a study that identifies the pass-through traffic, the estimated number of trips generated for each community has been calculated based on the number of units and average number of trips per dwelling unit.
Community
Number of
Residential Units(1)
Estimated Number of
Daily Vehicle Trips(2)
% of Total Daily
Vehicle Trips(3)
District 98 933.0 44.34%
Sundrop Subdivision 83 790.2 37.56%
Sinclair Renaissance Subdivision 80 380.8 18.10%
Total 261 2,104.0 100.00%
(1) Number of Residential Units is from the City’s Approved Projects map.8 (2) Per the ITE Trip Generation Report a single family residence generates an average of 9.52 trips per dwelling unit.9 (3) Number of daily trips has been reduced by 50% to account for vehicles entering and exiting the community from the opposite direction on Sinclair Frontage Road, and not driving along the portion of Los Coches Street and Sinclair Frontage Road with landscaping improvements maintained by the District.
As detailed above, based on the average number of daily vehicle trips generated for the communities in close proximity to the District, 1,171 (55.66%) are generated by residential units located outside of the District (general benefit).
All Locations and Landscaping Improvements – Residential Pass-thru Benefit The general benefit percentages determined in the previous sections for Los Coches Creek and Berryessa Creek (2.21%) and Los Coches Street and Sinclair Frontage Road (55.66%) were then applied to each corresponding location with landscaping improvements. The landscaping square footage being maintained by the District was provided by the City’s Public Works Department. The general benefit percentage for each street type was multiplied by the total square footage being maintained for such street. The general benefit square footage was summed for all street segments and divided into the total square footage of all landscaping maintenance. The result is the combined general benefit percentage. The following table details this calculation.
Street Name
Total Square
Footage
General Benefit
Percentage
General Benefit Square
Footage
Los Coches Creek 4,572 2.21% 101
Berryessa Creek 21,025 2.21% 465
Los Coches Street 24,747 55.66% 13,773
Sinclair Frontage 2,568 55.66% 1,429
Totals: 52,912 15,768
Landscaping General Benefit 29.80%
8 City of Milpitas. (2013). Approved Development Projects. Retrieved from http://www.ci.milpitas.ca.gov/government/planning/proj_approved.asp 9 Trip Generation, 9th Edition: An Informational Report of the Institute of Transportation Engineers. (2012). Washington, DC: Institute of Transportation Engineers.
City of Milpitas
Fiscal Year 2026/27 – LLMAD No. 98-1 Engineer’s Report 12 Based on the above calculations, the general benefit portion of the improved aesthetics and increased safety resulting from the landscaping improvements is estimated to be 29.80%.
Public at Large General Benefit
Given the location and nature of the improvements, it is very unlikely the public at large would seek out or use the landscaping improvements within the District. In addition, there are more direct routes to access the industrial complexes/businesses located to the south of the District than the 2 lane Los Coches Street and Sinclair Frontage Road. Nevertheless, it is perceivable that members of the public at large may pass- thru a portion of the landscaping improvements, even if it’s lost or leisure traffic. As such, general benefit of 2.00% has been assigned for the landscaping improvements to the public at large.
4.4.1 COLLECTIVE DISTRICT-WIDE GENERAL BENEFIT
Since the District is comprised of improved aesthetics and increased safety benefits resulting from the collective landscaping improvements, the activity of both pedestrians and vehicles, and the public at large must be addressed in a collective form rather than independently. The sum of the calculated general benefits is the total general benefit related to all pass-thru traffic. This general benefit result is provided in the table below:
Residential Pass-thru General Benefit 29.80%
Public at Large General Benefit 2.00%
Total General Benefit 31.80%
The general benefit, which is the percentage of the total budget that must be funded through sources other than assessments, is 31.80%. The special benefit then, which is the percentage of the budget that may be funded by assessments, is 68.20%.
City of Milpitas
Fiscal Year 2026/27 – LLMAD No. 98-1 Engineer’s Report 13
5. METHOD OF ASSESSMENT
5.1 Method of Assessment Spread
All parcels in the District on which residential dwellings will be constructed specially benefit from the improvements to an equivalent extent. These parcels are therefore assessed on a per lot basis for the maintenance and operation of the District, including incidentals and appurtenances, and will include all the costs of maintenance and/or operating the improvements. As outlined in Section 4, the total amount of general benefit from the improvements is determined to be 31.80%.
The preliminary maximum assessment rate for Fiscal Year 2026/27 is $605.63. The actual assessment rate levied on each taxable parcel for Fiscal Year 2026/27 is $538.32.
Each year the maximum assessment rate shall be increased by the percentage change from April 1st of the prior year to April 1st of the current year by the U.S. Department of Labor, Bureau of Labor Statistics, Consumer Price Indexes, Pacific Cities and U.S. City Average, San Francisco-Oakland-Hayward. The April 1, 2026 CPI was not available at the time of writing of this report. For purposes of this report, the CPI increase was estimated by using the February 1, 2026 CPI.
City of Milpitas
Fiscal Year 2026/27 – LLMAD No. 98-1 Engineer’s Report 14
5.2 Maximum Assessment Rates
The following table provides the historical maximum assessment rates for Fiscal Year 2000/01 through the current fiscal year:
Fiscal Year CPI Percentage Increase(1) Maximum Rate
2000/01 178.7 N/A $292.803
2001/02 189.1 5.82% 309.844
2002/03 193.0 2.06% 316.234
2003/04 197.3 2.23% 323.280
2004/05 198.3 0.51% 324.918
2005/06 202.5 2.12% 331.800
2006/07 208.9 3.16% 342.286
2007/08 215.842 3.32% 353.661
2008/09 222.074 2.89% 363.872
2009/10 223.854 0.80% 366.789
2010/11 227.697 1.72% 373.086
2011/12 234.121 2.82% 383.611
2012/13 238.985 2.08% 391.581
2013/14 244.675 2.38% 400.904
2014/15 251.495 2.79% 412.079
2015/16 257.622 2.44% 422.118
2016/17 264.565 2.70% 433.494
2017/18 274.589 3.79% 449.919
2018/19 283.422 3.22% 464.392
2019/20 294.801 4.01% 483.037
2020/21 298.074 1.11% 488.400
2021/22 309.419 3.81% 506.988
2022/23 324.878 5.00% 532.318
2023/24 338.496 4.19% 554.632
2024/25 351.247 3.77% 575.524
2025/26 354.432 2.69% 591.000
2026/27 363.211 2.48%(2) 605.639
(1) Percentage increase from April 1 of the prior year to April 1 of the current year in the US Department of Labor, Bureau of Labor Statistics, Consumer Price Index, Pacific Cities and US City Average, San Francisco-Oakland-Hayward. (2) The April 1, 2026 CPI was not available at the time of writing of this report. The Fiscal Year 202/26 CPI increase was estimated using the February 1, 2025 CPI.
5.3 Appeals
Any property owner who feels that the amount of their assessment is in error as a result of incorrect information being used to apply the foregoing method of spread, may file an appeal with the Finance Director of the City. Any such appeal is limited to correction of an assessment during the current or, if before July 1, the upcoming fiscal year. Upon the filing of any such appeal, the Finance Director shall promptly review the information provided by the property owner and if he/she finds that the assessment should be modified, he/she shall have the authority to make the appropriate changes in the assessment roll. If any such changes are provided after the assessment roll has been filed with the County for collection, the Finance Director is authorized to refund to the property owner the amount of any approved reduction.
City of Milpitas
Fiscal Year 2026/27 – LLMAD No. 98-1 Engineer’s Report A
APPENDIX A - ASSESSMENT DIAGRAM
The following page provides a copy of the assessment diagram of the District.
City of Milpitas
Fiscal Year 2026/27 – LLMAD No. 98-1 Engineer’s Report B
APPENDIX B - ASSESSMENT ROLL
Assessor’s parcel identification, for each lot or parcel within the District, shall be based on the Santa Clara County Assessor’s secured roll data for the applicable year in which this report is prepared and is incorporated herein by reference.
A listing of assessor’s parcels assessed within the District for Fiscal Year 2026/27, along with the assessment amounts, is on file in the office of the City Clerk and incorporated herein by reference. Based on County Assessor’s secured roll data, current assessor’s parcels, including corrected and/or new assessor’s parcels, will be submitted and/or resubmitted to the Santa Clara County Auditor/Controller. The annual assessment amount to be levied and collected for the resubmitted parcel(s) shall be determined in accordance with the method of apportionment and assessment rate approved in this report. Therefore, if a single assessor’s parcel has a status change in development, other land use change, or subdivides into multiple assessor’s parcels, the assessment amounts applied to each of the new assessor’s parcels shall be recalculated and applied according to the approved method of apportionment and assessment rate rather than a proportionate share of the original assessment amount.
City of Milpitas
LLMAD No. 98-1
Final Billing Detail Report for Fiscal Year 2026/27
APN Assessment ID Situs Address Fiscal Year 2026/27 Levy 086-48-001 1 872 CAMERON CIR $538.32
086-48-002 2 868 CAMERON CIR 538.32
086-48-003 3 864 CAMERON CIR 538.32
086-48-004 4 860 CAMERON CIR 538.32
086-48-005 5 856 CAMERON CIR 538.32
086-48-006 6 852 CAMERON CIR 538.32
086-48-007 7 848 CAMERON CIR 538.32
086-48-008 8 844 CAMERON CIR 538.32
086-48-009 9 840 CAMERON CIR 538.32
086-48-010 10 836 CAMERON CIR 538.32
086-48-011 11 832 CAMERON CIR 538.32
086-48-012 12 828 CAMERON CIR 538.32
086-48-013 13 824 CAMERON CIR 538.32
086-48-014 14 820 CAMERON CIR 538.32
086-48-015 15 816 CAMERON CIR 538.32
086-48-016 16 812 CAMERON CIR 538.32
086-48-017 17 808 CAMERON CIR 538.32
086-48-018 18 804 CAMERON CIR 538.32
086-48-019 19 800 CAMERON CIR 538.32
086-48-020 20 1004 CAMERON PL 538.32
086-48-021 21 1000 CAMERON PL 538.32
086-48-022 22 996 CAMERON PL 538.32
086-48-023 23 992 CAMERON CIR 538.32
086-48-024 24 988 CAMERON CIR 538.32
086-48-025 25 984 CAMERON CIR 538.32
086-48-026 26 980 CAMERON CIR 538.32
086-48-027 27 976 CAMERON CIR 538.32
086-48-028 28 972 CAMERON CIR 538.32
086-48-029 29 968 CAMERON CIR 538.32
086-48-030 30 964 CAMERON CIR 538.32
086-48-031 31 960 CAMERON CIR 538.32
086-48-032 32 956 CAMERON CIR 538.32
086-48-033 33 952 CAMERON CIR 538.32
086-48-034 34 948 CAMERON CIR 538.32
086-48-035 35 944 CAMERON CIR 538.32
086-48-036 36 940 CAMERON CIR 538.32
086-48-037 37 936 CAMERON CIR 538.32
086-48-038 38 932 CAMERON CIR 538.32
086-48-039 39 928 CAMERON CIR 538.32
086-48-040 40 924 CAMERON CIR 538.32
086-48-041 41 920 CAMERON CIR 538.32
086-48-042 42 916 CAMERON CIR 538.32
Slight variances may occur due to rounding
Copyright © 2013 by NBS Page 1 of 3 03/25/2026 04:43:26PM
City of Milpitas
LLMAD No. 98-1
Final Billing Detail Report for Fiscal Year 2026/27
APN Assessment ID Situs Address Fiscal Year 2026/27 Levy 086-48-043 43 912 CAMERON CIR 538.32
086-48-044 44 908 CAMERON CIR 538.32
086-48-045 45 904 CAMERON CIR 538.32
086-48-046 46 900 CAMERON CIR 538.32
086-48-047 47 896 CAMERON CIR 538.32
086-48-048 48 892 CAMERON CIR 538.32
086-48-049 49 888 CAMERON CIR 538.32
086-48-050 50 884 CAMERON CIR 538.32
086-48-051 51 880 CAMERON CIR 538.32
086-48-052 52 876 CAMERON CIR 538.32
086-48-053 53 899 CAMERON CIR 538.32
086-48-054 54 903 CAMERON CIR 538.32
086-48-055 55 907 CAMERON CIR 538.32
086-48-056 56 911 CAMERON CIR 538.32
086-48-057 57 915 CAMERON CIR 538.32
086-48-058 58 211 CAMERON CT 538.32
086-48-059 59 203 CAMERON CT 538.32
086-48-060 60 195 CAMERON CT 538.32
086-48-061 61 200 CAMERON CT 538.32
086-48-062 62 208 CAMERON CT 538.32
086-48-063 63 216 CAMERON CT 538.32
086-48-064 64 207 WHITE CT 538.32
086-48-065 65 199 WHITE CT 538.32
086-48-066 66 191 WHITE CT 538.32
086-48-067 67 183 ALLEN CT 538.32
086-48-068 68 175 ALLEN CT 538.32
086-48-069 69 180 ALLEN CT 538.32
086-48-070 70 188 ALLEN CT 538.32
086-48-071 71 196 WHITE CT 538.32
086-48-072 72 204 WHITE CT 538.32
086-48-073 73 212 WHITE CT 538.32
086-48-074 74 203 KING CT 538.32
086-48-075 75 195 KING CT 538.32
086-48-076 76 187 KING CT 538.32
086-48-077 77 179 BRANDT CT 538.32
086-48-078 78 171 BRANDT CT 538.32
086-48-079 79 176 BRANDT CT 538.32
086-48-080 80 184 BRANDT CT 538.32
086-48-081 81 192 KING CT 538.32
086-48-082 82 200 KING CT 538.32
086-48-083 83 208 KING CT 538.32
086-48-084 84 199 DOUGLAS CT 538.32
Slight variances may occur due to rounding
Copyright © 2013 by NBS Page 2 of 3 03/25/2026 04:43:26PM
City of Milpitas
LLMAD No. 98-1
Final Billing Detail Report for Fiscal Year 2026/27
APN Assessment ID Situs Address Fiscal Year 2026/27 Levy 086-48-085 85 191 DOUGLAS CT 538.32
086-48-086 86 183 DOUGLAS CT 538.32
086-48-087 87 175 HOBBS CT 538.32
086-48-088 88 167 HOBBS CT 538.32
086-48-089 89 174 HOBBS CT 538.32
086-48-090 90 182 HOBBS CT 538.32
086-48-091 91 190 DOUGLAS CT 538.32
086-48-092 92 198 DOUGLAS CT 538.32
086-48-093 93 206 DOUGLAS CT 538.32
086-48-094 94 991 CAMERON CIR 538.32
086-48-095 95 995 CAMERON CIR 538.32
086-48-096 96 811 CAMERON CIR 538.32
086-48-097 97 815 CAMERON CIR 538.32
086-48-098 98 831 CAMERON CIR 538.32
$52,755.3698 Accounts
Slight variances may occur due to rounding
Copyright © 2013 by NBS Page 3 of 3 03/25/2026 04:43:26PM
RESOLUTION NO. ______
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MILPITAS
APPROVING THE ANNUAL REPORT FOR THE LANDSCAPING AND
LIGHTING MAINTENANCE ASSESSMENT DISTRICT NO. 98-1 FOR FISCAL YEAR 2026/27
WHEREAS, the City Council previously completed its proceedings in accordance with and pursuant to the Landscaping and Lighting Act of 1972, Part 2, Division 15 of the California Streets and Highways Code (commencing with Section 22500) (the “Act”) to establish the Landscaping and Lighting Maintenance Assessment District 98-1 (the “Assessment District”); and
WHEREAS, the City of Milpitas has retained NBS for the purpose of assisting with the annual levy of the Assessment District, and the preparation and filing of and the report required pursuant to Section 22622 of the Act (the “Annual Report”); and
WHEREAS, the City Council has, by previous resolution, ordered NBS to prepare and file such Annual Report;
WHEREAS, NBS has prepared and filed such Annual Report with the City Clerk;
WHEREAS, all statutory and otherwise required prerequisites for the adoption of the Annual Report have occurred, including as specified in the Act.
NOW, THEREFORE, the City Council of the City of Milpitas hereby finds, determines and resolves as follows:
1. The City Council has considered the full record before it, which may include but is not limited to such things as the staff report, testimony by staff and the public, and other materials and evidence submitted or provided to it. Furthermore, the recitals set forth above are found to be true and correct and are incorporated herein by reference.
2. Approval of Report: The City Council hereby approves the Annual Report for the Assessment District concerning the levy of assessments as submitted by NBS for the fiscal year commencing July 1, 2026 and ending June 30, 2027.
3. The Assessment District exterior boundaries are as shown by a map filed in the office of the City Clerk, which map is made a part hereof by this reference.
PASSED AND ADOPTED this _______ day of ____________, 2026, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
2 Resolution No. xxxx
ATTEST: APPROVED:
_____________________________ _____________________________ Suzanne Guzzetta, City Clerk Carmen Montano, Mayor
APPROVED AS TO FORM:
_____________________________
Christian M. Curtis, City Attorney
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MILPITAS DECLARING
ITS INTENTION TO LEVY AND COLLECT ASSESSMENTS FOR THE LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT NO. 98-1 FOR FISCAL YEAR 2026/27
WHEREAS, the City Council previously completed its proceedings in accordance with and pursuant to the Landscaping and Lighting Act of 1972, Part 2, Division 15 of the California Streets and Highways Code (commencing with Section 22500) (the “Act”) to establish the Landscaping and Lighting Maintenance Assessment District No. 98-1 (the “Assessment District”); and
WHEREAS, the City Council has retained NBS for the purpose of assisting with the annual levy of the Assessment District, and the preparation and filing of the report required pursuant to Section 22622 of the Act (the “Annual Report”); and
WHEREAS, the City Council adopted a Resolution approving the Annual Report for the Assessment District for Fiscal Year 2026/27; and
WHEREAS, all statutory and otherwise required prerequisites for the issuance of a notice of intent to levy and collect assessments within the Assessment District have been met, including as specified in the Act.
NOW, THEREFORE, the City Council of the City of Milpitas hereby finds, determines, and resolves as follows:
1. The City Council has considered the full record before it, which may include but is not limited to such things as the staff report, testimony by staff and the public, and other materials and evidence submitted or provided to it. Furthermore, the recitals set forth above are found to be true and correct and are incorporated herein by reference.
2. Intention: The City Council hereby declares its intention to levy and collect assessments within the Assessment District to pay the costs of the improvements for the fiscal year commencing July 1, 2026 and ending June 30, 2027. The City Council finds that the public’s best interest requires such action.
3. Improvements: The improvements within the Assessment District include, but are not limited to:
operating, maintaining and servicing of all public landscaping improvements, consisting of landscaping and grass. Operating, maintaining and servicing costs include, but are not limited to: personnel, materials, electrical energy and water. Services provided include all necessary service, operations, administration, and maintenance required to keep the improvements in a healthy, vigorous, and satisfactory condition. A project renovating the landscape and irrigation improvements in the Assessment District was initiated in Fiscal Year 2021/22 and will be completed in Fiscal Year 2026-27.
4. Assessment District Boundaries: The boundaries of the Assessment District are as shown by the assessment diagram filed in the offices of the City Clerk, which map is made a part hereof by reference.
5. Annual Report: Reference is made to the Annual Report prepared by NBS, on file with the City Clerk, for a full and detailed description of the improvements, the boundaries of the Assessment District and the zones therein, and the proposed assessments upon assessable lots and parcels of land within the Assessment District.
6. Notice of Public Hearing: The City Council hereby declares its intention to conduct a public hearing concerning the levy of assessments in accordance with Section 22629 of the Act. All objections to the assessment, if any, will be considered by the City Council. The public hearing will be held on Tuesday, May 19, 2026 at 7:00 pm or as soon thereafter as is feasible in the meeting place of the City Council
2 Resolution No. ___
located at 455 E. Calaveras Boulevard, Milpitas, CA 95035. The City Council further orders the City Clerk to publish notice of this resolution in accordance with Section 22626(a) of the Act.
7. Increase of Assessment: The maximum assessment is not proposed to increase (as “increased assessment” is defined in Section 54954.6 of the Government Code) either because this ongoing annual assessment is imposed at the same or lower amount as the previous year or does not exceed the assessment formular or range of assessments previously approved by the voters in the area where the assessment is imposed.
PASSED AND ADOPTED this _____ day of ___________, 2026, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST: APPROVED:
_____________________________ _____________________________ Suzanne Guzzetta, City Clerk Carmen Montano, Mayor
APPROVED AS TO FORM:
_____________________________
Christian M. Curtis, City Attorney
CITY OF MILPITAS
AGENDA REPORT
(AR)
Item Title: Adopt Resolutions Approving the Annual Engineer’s Report and Declaring Its Intention to Levy and Collect Assessments, and Provide Notice of Public Hearing for Landscaping and Lighting Maintenance Assessment District No. 95-1 McCarthy Ranch (Staff Contact: Christian Di Renzo, Public Works Director, 408-586-2602; and Michael Silveira, City Engineer, 408-586-3303) Category: Consent Calendar-Community Development
Meeting Date: 4/21/2026
Recommendation: (1) Adopt a resolution approving the Annual Engineer’s Report; and (2) Adopt a resolution declaring its intention to levy and collect assessments and provide notice of public hearing to be held on May 19, 2026, for Landscaping and Lighting Maintenance Assessment District 95-1 McCarthy Ranch.
BACKGROUND:
In 1995, the City Council completed its proceedings in accordance with and pursuant to the Landscaping and Lighting Act of 1972, Part 2, Division 15 of the California Streets and Highways Code (commencing with Section 22500) (Act) to establish the Landscaping and Lighting Maintenance Assessment District 95-1 (LLMD 95-1 McCarthy Ranch).
LLMD 95-1 McCarthy Ranch provides for the maintenance and improvement of public landscaping, irrigation systems, pedestrian lighting, gateway columns and entry signs along North McCarthy Boulevard between State Route 237 and Dixon Landing Road and Ranch Drive in the areas as shown on the attached location map (Attachment A).
Staff retained the consulting firm NBS for the purpose of assisting with the annual levy assessment for LLMD 95-1 McCarthy Ranch, and the preparation and filing of the report required pursuant to Section 22622 of the Act (Annual Engineering Report).
ANALYSIS:
Before the City Council may levy the annual assessments for LLMD 95-1 McCarthy Ranch, the Act requires the City Council to adopt a resolution approving the Annual Engineer’s Report (Attachment B) evaluating the district landscape and lighting maintenance and improvement costs for Fiscal Year (FY) 2026-27. On February 17, 2026, the City Council directed the City Engineer to prepare the Annual Engineer’s Report, which is included in the City Council agenda packet. The proposed total assessment for FY2026-27 is $0.03897 per lot square foot with an assessment rate not exceeding the maximum assessment rate of $0.05864 per lot square foot. The FY2026-27 rate is approximately 2.28% higher than the previous fiscal year (FY2025-26) rate of $0.0381 due to a combination of adjusting of expenses for material and utilities and accommodating cost of living increases for staff.
Staff recommends the City Council adopt Resolutions approving the Annual Engineering’s Report (Attachment C), and declaring its intent to levy and collect an assessment and providing notice of a public hearing to be held on May 19, 2026, (Attachment D) for LLMD 95-1 McCarthy Ranch in Fiscal Year 2026-27.
PROJECT SCHEDULE/KEY MILESTONES
Upon approval of the annual Engineer’s Report and declaring its intention to levy and collect assessments, staff will conduct a public hearing and recommend City Council adopt a resolution confirming annual assessments and ordering the levy for the district on May 19, 2026.
POLICY ALTERNATIVE(S):
Alternative 1: Do not adopt the Resolutions for LLMD 95-1 McCarthy Ranch.
Pros: None.
Cons: If the City Council does not adopt the Resolutions according to Landscaping and Lighting Act of 1972, the City will be unable to collect assessments for LLMD 95-1 McCarthy Ranch.
Reason Not Recommended: Staff recommends approving the Resolutions in order to levy and collect assessments for fiscal year 2026-27 to allow for the continued maintenance and improvement of LLMD 95-1 McCarthy Ranch.
FISCAL IMPACT:
The levy and collection of assessments provide the City with the resources needed for ongoing maintenance and servicing of the improvements. The FY 2026-27 maintenance budget for the LLMD 95-1 is estimated to be $468,800. The City maintains an operating reserve, not to exceed the estimated maintenance costs.
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):
A levy and collection of assessments has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment and is not a project pursuant to Pub. Resources Code, § 21065 and Cal. Code Regs., tit. 14, § 15378. The action is a fiscal activity of the City government or an action to create a City government funding mechanism that does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment and is not a project pursuant to Cal. Code of Regs., tit. 14, § 15378. To the extent the funds generated by this levy and collection would be used to fund any currently contemplated projects, such projects entail the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use and is exempt from CEQA pursuant to Cal. Code Regs., tit. 14, § 15301.
ATTACHMENT(S):
(a) Location Map
(b) Engineer’s Report for LLMD No. 95-1 McCarthy Ranch
(c) Resolution Approving Annual Engineer’s Report
(d) Resolution Declaring Intention to Levy and Collect Assessments
CITY OF MILPITAS
LANDSCAPING MAINTENANCE DISTRICT (LMD) 95-1
(N.T.S.)
2026-2027 FISCAL YEAR LANDSCAPE AREA FUNDED FOR MAINTENANCE
Fiscal Year 2026/27 Engineer’s Report For:
Landscaping and Lighting Maintenance
Assessment District No. 95-1
May 2026
CITY OF MILPITAS
LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT NO. 95-1 455 East Calaveras Boulevard
Milpitas, California 95035
Phone (408) 586-3000
CITY COUNCIL
Carmen Montano, Mayor
Gary Barbadillo, Vice Mayor
Evelyn Chua, Council Member
Hon Lien, Council Member
William Lam, Council Member
CITY STAFF
Michael Silveira, PE, City Engineer
Luz Cofresi-Howe, Finance Director/Risk Manager
Christian Di Renzo, Public Works Director
NBS
Kristin Harvey, Client Success Ambassador
Adina McCargo, Project Manager
Jason Roth, Administrator
TABLE OF CONTENTS
1. Engineer’s Letter ............................................................................................................. 1
2. Plans and Specifications .................................................................................................. 3
2.1 Location of Improvements ........................................................................................ 3
2.2 Landscaping Improvements ...................................................................................... 3
2.3 Capital Improvements ............................................................................................... 4
2.4 Overhead ................................................................................................................... 4
3. Estimate of Costs ............................................................................................................ 5
3.1 District Budget ........................................................................................................... 5
4. Special and General Benefit ............................................................................................ 7
4.1 Identification of Benefit ............................................................................................ 7
4.2 Special Benefits Identified ......................................................................................... 7
4.3 General Benefits Identified ....................................................................................... 8
4.4 Quantification of Benefit ........................................................................................... 8
4.5 Special Benefit Trips ................................................................................................ 12
5. Method of Assessment ................................................................................................. 14
5.1 Introduction ............................................................................................................. 14
5.2 Method of Assessment Spread ............................................................................... 14
5.3 Maximum Assessment Rates .................................................................................. 15
5.4 Appeals .................................................................................................................... 15 Appendix A - Assessment Diagram ......................................................................................... A Appendix B - Assessment Roll ................................................................................................ B
City of Milpitas
Fiscal Year 2026/27 – LLMAD No. 95-1 Engineer’s Report 1
1. ENGINEER’S LETTER
WHEREAS, in 1995, the City Council of the City of Milpitas (the “City”), State of California, under the Landscaping and Lighting Act of 1972 (the “Act”), created the City of Milpitas Landscaping and Lighting Maintenance Assessment District No. 95-1 (the “District”) in order to provide for the continued maintenance, operation, and administration of various improvements within the boundaries of the District; and
WHEREAS, the City Council has directed NBS to prepare and file a report for Fiscal Year 2026/27 in accordance with Chapter 1, Article 4 of the Act presenting plans and specifications describing the general nature, location, and extent of the improvements to be maintained; an estimate of the costs to maintain, operate, and service the improvements for the District for the referenced fiscal year; a diagram for the District showing the area and properties to be assessed; and an assessment of the estimated costs to maintain and service the improvements, stating the net amount to be assessed upon all assessable lots or parcels within the District in proportion to the special benefit received.
NOW THEREFORE, the following assessments have been calculated in accordance with the assessment methodology adopted and approved by the City Council at the time of District formation, and are made to cover the portion of the estimated costs of maintenance, operation, and servicing of the improvements, to be paid by the assessable real property within the District in proportion to the special benefit received:
District Parcels
2026/27
Maximum Assessment
Rate per Lot Sq. Ft.(1)
2026/27
Actual Assessment
Rate per Lot Sq. Ft.
2026/27
Net Amount to be
Assessed(2)(3)
LLMAD 95-1 45 $0.0586 $0.03897 $459,672
(1) The April 1, 2026 Consumer Price Index (CPI) provided by the U.S. Bureau of Labor Statistics was not available at the time of writing of this report. The Fiscal Year 2026/27 CPI increase was estimated using the February 1, 2026 CPI. (2) Amounts placed on the tax roll include the 1% Santa Clara County Collection Fee. (3) This amount is only an estimate and does not reflect the final billed amount with rounding adjustments. Refer to Section 7 for the rounded figure.
I identified all parcels which will have a special benefit conferred upon them from the improvements described in District’s Plans and Specifications section of this Engineer’s Report (the “Benefited Parcels”) have been identified. For particulars as to the identification of said parcels, reference is made to the Assessment Diagram, a copy of which is on file in the office of the City Clerk.
I have assessed the costs and expenses of the improvements upon the Benefited Parcels. In making such assessment:
a. The proportionate special benefit derived by each Benefited Parcel from the improvements was determined in relationship to the entirety of the maintenance costs of the improvements; b. No assessment has been imposed on any Benefited Parcel which exceeds the reasonable cost of the proportional special benefit conferred on such parcel from the improvements; and c. Any general benefits from the improvements have been separated from the special benefits and only special benefits have been assessed.
City of Milpitas
Fiscal Year 2026/27 – LLMAD No. 95-1 Engineer’s Report 2 I, the undersigned, respectfully submit the enclosed Engineer’s Report and, to the best of my knowledge, information and belief, the Engineer’s Report, Assessments, and the Assessment Diagrams herein have been prepared and computed in accordance with the order of the City Council of the City of Milpitas, the Act, and Article XIIID.
Michael Silveira, City Engineer
City of Milpitas
Fiscal Year 2026/27 – LLMAD No. 95-1 Engineer’s Report 3
2. PLANS AND SPECIFICATIONS
The District provides for the continued administration, maintenance, operation, and servicing of various improvements located within the public right-of-way and dedicated easements within the boundaries of the District.
2.1 Location of Improvements
The District is located on the west side of the City of Milpitas, bounded on the east by State Route 880, on the west by Coyote Creek, on the south by State Route 237, and on the north by Dixon Landing Road. The improvements maintained include public landscaping and irrigation improvements, including jogging paths, pedestrian lighting, gateway improvements, and entry signage, which are primarily situated within the public right-of-way and dedicated public easements within the District.
2.2 Landscaping Improvements
Landscaping, pedestrian lighting, gateway, and signage improvements were installed along the roadways and sidewalks within the District to enhance the overall visual appearance for adjacent parcels.
The improvements within the District consist of the maintenance and installation of any or all public landscaping and irrigation improvements adjacent to curbs of the following described streets, including jogging paths, planter walls, grass berms, pedestrian lighting and appurtenant irrigation systems, ornamental planting including lawns, shrubs, and trees; installation and maintenance of gateway columns and entry signs. Such maintenance includes all necessary repairs, replacements, water, electric current, spraying, care, supervision, debris removal and all other items of work necessary and incidental for property maintenance and operation thereof. The landscaping, irrigation, pedestrian lighting, gateway, and signage improvements are collectively referred to as “landscaping improvements.” All such work will be performed in the following areas:
2.2.1 N. MCCARTHY BOULEVARD
1. A strip of land including an earth berm approximately 50 feet in width from face of each curb line, from the southerly connection with Ranch Drive northerly 2,400 feet, more or less, to the northerly connection with Ranch Drive. A strip of land including a grass berm approximately 35 feet in width, west of the face of westerly curb, along the West Side of N. McCarthy Boulevard, from the southerly connection with Ranch Drive, northerly 2,400 feet, more or less. The initial phase includes a strip of land 6 feet wide on the west side of McCarthy Boulevard.
2. Commencing at a location approximately 2,400 feet north of State Route 237 thence proceeding north to the northern boundary of Lands of N. McCarthy, 7,800 feet more or less, a strip of land approximately 27 to 34 feet in width on each side along the east and west sides of McCarthy Boulevard between the northerly connection with Ranch Drive and Dixon Landing Road.
3. A median island from the southerly intersection with Ranch Drive northerly to the intersection with Dixon Landing Road.
City of Milpitas
Fiscal Year 2026/27 – LLMAD No. 95-1 Engineer’s Report 4
4. Gateway Improvements, at the southerly intersection of N. McCarthy Boulevard and Ranch Drive and southerly of Bridge No. 1 along N. McCarthy Boulevard, including curved stone planter walls, gateway columns with entry sign appurtenant mounding ornamental plantings including flat work, trees and ground cover, irrigation systems; all as shown on landscape plans.
5. Lighting costs in the District are limited to the supplemental pedestrian lights installed on the east side of McCarthy Boulevard between the two intersections at Ranch Drive and McCarthy Boulevard. The conventional lighting along McCarthy Boulevard is not included. There also exists decorative up-lighting for the Gateway Towers in other areas near the southern Ranch Drive intersection of McCarthy.
2.2.2 MILPITAS ENTRY SIGN
1. City of Milpitas Entry Identification Sign along N. McCarthy Blvd., including walls, columns, lighting, and other appurtenances.
2.2.3 RANCH DRIVE
1. Commencing at a Northerly location where the right-of-way of Ranch Drive is contiguous with the right-of-way of Interstate 880, thence southerly, a strip of land approximately 10 feet in width measured from the east face of curb of Ranch Drive, from the northerly connection with Interstate 880 and Ranch Drive, southerly 630 feet, more or less, thence 405 feet south to the southerly end of Gateway location, varying in width from 10 feet to 132 feet, more or less.
2. Gateway Improvements, at the southerly connection of Ranch Drive and Interstate 880, including curved stone planter walls, gateway columns with entry sign appurtenant mounding ornamental plantings including flat work, trees and ground cover, irrigation systems; all as shown on landscape plans (Part A), except the Shopping Center’s Monument Sign. As mentioned above, there also exists decorative up-lighting for the Gateway Towers in other areas near the southern Ranch Drive intersection of McCarthy.
2.3 Capital Improvements
In Fiscal Year 2021/22, the City initiated the design and construction of landscape and irrigation renovation on N. McCarthy Blvd. between State Route 237 and Dixon Landing Road and a portion of Ranch Drive. The landscape and irrigation renovation design has been completed and planting renovations will continue in 2026/27.
2.4 Overhead
In addition to the costs of maintaining the improvements mentioned above, the City will incur costs for staff time and expenses related to the management and maintenance of the improvements within the District. Staff time includes oversight and coordination of both City and contractor provided services, annual tax roll preparation, and addressing property owner questions and concerns. These activities are directly related to the maintenance of the improvements, and without them the improvements could not be efficiently completed or properly maintained on an ongoing basis.
City of Milpitas
Fiscal Year 2026/27 – LLMAD No. 95-1 Engineer’s Report 5
3. ESTIMATE OF COSTS
The estimated costs of maintenance and servicing of the improvements as described in the Plans and Specifications are summarized below.
3.1 District Budget
The Fiscal Year 2026/27 estimated cost budget for the maintenance and servicing of the improvements is as follows:
Description Fiscal Year 2026/27 Budget
Maintenance Staff and Contract Services(1) $388,800
Capital Equipment 0
Supplies 15,000
Utilities (Water, Electricity) 65,000
Reserve Fund 0
Capital Improvement Program 0
Maintenance Costs $468,800
NBS $5,380
City Staff District Administration 4,520
County Auditor-Controller Fee(2) 4,600
District Specific Costs $14,500
Total District Costs $483,300
General Benefit Contribution(3) (23,628)
Operating Reserve Contribution 0
Net Amount to be Assessed $459,672
Total District Square Footage(4) 11,794,540
Rate per Square Foot(5)(6) $0.03897
Maximum Rate Per Square Foot – 2026/27(7) $0.05864
(1) Fiscal Year 2026/27 Landscape Maintenance Contract Services includes Terracare and Irvine Company. (2) County Auditor-Controller Fee is currently 1% of the total levy submittal amount. (3) General Benefit Contribution is not applied to District Specific Costs, as these are special benefits to the District. (4) Total District Square Footage includes a 50% reduction for Parcel 5-7 (Sewer Main Pump Station) and Parcel 5-3C (Storm Pump Station).
(5) The Rate per Square Foot equals the Net Amount to be Assessed / Total District Square Footage. (6) The assessed rate cannot exceed the maximum rate.
(7) The April 1, 2026 CPI was not available at the time of writing of this report. The Fiscal Year 2026/27 CPI increase was estimated by using the February 1, 2026 CPI.
City of Milpitas
Fiscal Year 2026/27 – LLMAD No. 95-1 Engineer’s Report 6
3.1.1 OPERATING RESERVE
It is the intent of the City to maintain an operating reserve which shall not exceed the estimated costs of maintenance and servicing of the improvements prior to December 10 of the fiscal year, or when the City expects to receive its apportionment of special assessments from the County, whichever is later. The operating reserve balance information for the District is as follows:
Estimated Fiscal Year Ending 6/30/2026 Operating Reserve Cash Balance $333,345 Operating Reserve Collection for Fiscal Year 2026/27 0
Estimated Fiscal Year Ending 6/30/2027 Operating Reserve Cash Balance $333,345
3.1.2 CAPITAL IMPROVEMENT BUDGET
The City completed the replacement of the irrigation controllers and repairs of the irrigation system on N.
McCarthy Blvd. (between State Route 237 and Dixon Landing Road) and a portion of Ranch Drive. The City also installed planting in the median on Ranch Drive at the intersection of N. McCarthy Blvd. Planting renovations will continue in 2026/2027. As of March 20, 2026, the balance available for the Capital Improvement Project is $328,033.88. The City will utilize these funds, along with an annual collection of $75,000 via the District from Fiscal Year 2024/25 to Fiscal Year 2028/29, to finance the work.
City of Milpitas
Fiscal Year 2026/27 – LLMAD No. 95-1 Engineer’s Report 7
4. SPECIAL AND GENERAL BENEFIT
The improvements defined in Section 2 are expected to confer certain special benefits to parcels within the District. The special benefits are described in this section. Figures in this section are derived from a Special v. General Benefit Analysis performed in Fiscal Year 2020/21.
4.1 Identification of Benefit
Section 4 of Article XIIID of the California Constitution provides that once a local agency which proposes to impose assessments on property has identified those parcels that will have special benefits conferred upon them and upon which an assessment will be imposed, the local agency must next “separate the general benefits from the special benefits conferred,” and only the special benefits can be included in the amount of the assessments imposed.
4.2 Special Benefits Identified
The improvements described in Section 2 are expected to confer certain special benefits to parcels within the District. The special benefits conferred to property within the District can be grouped into three primary benefit categories: aesthetic benefit, safety benefit, and economic benefit. The three District benefit categories are further expanded upon below.
• Improved Aesthetics: The aesthetic benefit relates to the increase in the overall aesthetics as a result of the ongoing maintenance, servicing, and operation of the improvements within the District. The landscaping improvements enhance the overall image and desirability of the properties within the District. Street landscaping improvements improve the livability, commercial activity, appearance, and desirability for properties within the District. Regular maintenance ensures that the improvements do not reach a state of deterioration or disrepair, so as to be materially detrimental to properties adjacent to or in close proximity to the improvements. The overall appeal of the District is enhanced when improvements are in place and kept in a healthy and satisfactory condition. Conversely, appeal decreases when improvements are not well- maintained, unsafe, or destroyed by the elements or vandalism. Streetscapes have a significant effect on how people view and interact with their community.1 With streetscapes that are safe and inviting, people are more likely to walk, which can help reduce automobile traffic, improve public health, stimulate local economic activity, and attract residents and visitors to the community.2 • Increased Safety: Well-maintained areas mitigate crime, especially vandalism, and enhance pedestrian safety. A recent study found that after landscape improvements were installed, there was a 46% decrease in crash rates across urban arterial and highway sites and a second study reviewed found a 5% to 20% reduction in mid-block crashes after trees and planters in urban arterial roads were put in place. In addition, there is less graffiti, vandalism, and littering in outdoor spaces with natural landscapes than in comparable plant-less spaces. 3 The Victoria Transport
1 Victoria Transport Policy Institute. (2011). Community Livability. Helping to Create Attractive, Safe, Cohesive Communities.
Retrieved from http://www.vtpi.org/tdm/tdm97.htm.
2 Ibid.
3 Wolf, Kathleen L. (2010). Safe Streets – A Literature Review. In: Green Cities: Good Health (www.greenhealth.washington.edu).
College of the Environment, University of Washington.
City of Milpitas
Fiscal Year 2026/27 – LLMAD No. 95-1 Engineer’s Report 8 Policy Institute has found that streetscapes reduce traffic speeds and when combined with improved pedestrian crossing conditions can significantly reduce collisions. 4 • Economic Activity: Well-maintained street landscape improvements not only make adjacent properties appear more stable and prosperous but can spur investment in the property. The National Complete Streets Coalition notes that street design that is inclusive of all modes of transportation, where appropriate, not only improves conditions for existing businesses, but also is a proven method for revitalizing an area and attracting new development. 5 Landscaped sidewalks create an inviting place for customers to shop and do business. 6 Well-maintained and safe District areas will encourage an increase in the overall pedestrian activity. The area will become more pedestrian friendly, thus improving the retail environment by encouraging individuals to shop, dine, and stay within the District boundaries. The District will provide a cleaner more inviting environment to businesses and consumers which will attract, retain and expand the retail and business climate throughout. The effort will reduce vacancy rates and increase lease rates and utilization of property within the District.
4.3 General Benefits Identified
Section 4 of Article XIIID of the California Constitution provides that once a local agency which proposes to impose assessments on property has identified those parcels that will have special benefits conferred upon them and upon which an assessment will be imposed, the local agency must next “separate the general benefits from the special benefits conferred,” and only the special benefits can be included in the amount of the assessments imposed.
General benefit is an overall and similar benefit to the public at large resulting from the maintenance of the District’s improvements provided by the assessments levied. The improvements to be maintained by the District are located within the District boundaries only. There will be no District maintenance activities provided for improvements located outside of the District boundaries.
The ongoing maintenance of the District improvements will provide aesthetic, safety and economic activity benefits to the property within the District. However, it is recognized that the ongoing maintenance activities will also provide a level of benefit to some property within proximity to the District, as well as individuals passing through. Therefore, the general benefit created as a result of the District maintenance activities has been considered.
4.4 Quantification of Benefit
As a result of the maintenance and operation of the improvements, there will be a level of general benefit to people that do not work or intend to conduct business within the District. In order for property within the District to be assessed only for that portion of special benefits received from the District’s maintenance
4 Victoria Transport Policy Institute. (2011). Community Livability. Helping to Create Attractive, Safe, Cohesive Communities.
Retrieved from http://www.vtpi.org/tdm/tdm97.htm.
5 Pugliese, Philip. (2008). Complete Streets provide all the elements of multi-modal transportation. Retrieved from http://www.americantrails.org/resources/trans/completestreets08.html 6 U.S Department of Transportation. Federal Highway Administration. (2001). Designing Sidewalks and Trails for Access, Part II of II: Best Practices Design Guide. Retrieved from http://www.fhwa. dot. gov/ environment/bicycle_pedestrian/publications/sidewalk2/
City of Milpitas
Fiscal Year 2026/27 – LLMAD No. 95-1 Engineer’s Report 9 activities, general benefits provided by the ongoing maintenance of the improvements need to be quantified. The amount of general benefit that is provided from the District’s maintenance activities cannot be funded via property owners’ assessments.
Based upon the City’s General Plan, the streets within the City are classified into one of the following categories: freeway, expressway, arterial, collector or local streets. The landscaping improvements are primarily located along N McCarthy Boulevard and Ranch Drive and situated within the public rights-of- way. The portion of the maintained landscaping that is located along N McCarthy Boulevard (classified as an arterial street) provides some general benefit to pass-through traffic.
Arterial streets are intended to provide a higher degree of mobility and generally serve longer vehicle trips.
The landscape improvements within the District boundaries not only serve the parcels in the immediate vicinity, but persons who live outside of the District and are passing by. The City’s most recent traffic study7 completed in 2016 does not identify the percentage of traffic, which is pass-through traffic, but it does provide an estimated number of daily trips for N McCarthy Boulevard at the entrance of the District.
However, the daily trip count estimate is lower than the trip count utilized in the 2015 findings report. This would not be expected with the increase in development to this area. Therefore, In the absence of a more recent reading of traffic along N. McCarthy Boulevard, the 2015 average number of daily trips of 35,050 per the General Plan has been utilized for the base trip count.
In order to account for the estimated increase in daily average trips as a result of the increased development, the City commissioned a traffic study for each new development. Per the traffic studies, it is estimated there will be an increase of 9,156 average daily trips. Adding this increase to the 35,050 previously identified above, the estimated number of average vehicles per day is 44,206 as shown below.
Street Name
Average Number of
Vehicles per Day
N McCarthy Boulevard – between SR 237 and Ranch Drive 44,206
Before the determination and allocation of the percentage of special and general benefit for the District can be made, the estimated pass-through traffic must be computed. The pass-through trips are vehicles driving along the maintained streets for a portion of their trips, but not working, shopping or conducting business in the District or benefiting from the landscaping improvements in place.
Research consistently shows that developments with multiple land uses that make walking safe and convenient and are near other development, allow residents and workers to drive significantly less if they choose. While this District is not a mixed-use development, there are multiple land uses adjacent to one another. Therefore, treating this development area as though the uses were separated and accessible only by car would result in inflated trip counts in comparison to conventional, single-use developments.
In lieu of having a comprehensive traffic study that identifies the pass-through traffic, the estimated number of special benefit trips for each parcel has been determined using the average daily trips according
7 City of Milpitas. (2016 Traffic Study). Retrieved from City’s Assistant Traffic Engineer
City of Milpitas
Fiscal Year 2026/27 – LLMAD No. 95-1 Engineer’s Report 10 to the ITE Trip Generation Report, 9th Edition8 and the 2010 NCHRP Report 684 Enhancing Trip Capture Estimation for Mixed-use Developments9.
Utilizing the ITE Trip Generation Report, each parcel within the District was assigned an average daily number of special benefit trips using the parcel’s land use, building size or number of units. Further, to ensure the number of trips generated by the parcels has not been overstated, the percentage of total trips that are made internally within the development has been considered. Using the 2010 NCHRP Report 684 Enhancing Trip Capture Estimation for Mixed-Use Developments, the total special benefit trips have been reduced by approximately 31% (19,258 trips) to account for internal trips between the various businesses within the District. The total number of special benefit trips is therefore 42,864 as shown below.
Property Type Combined Trip Generations
Retail (ITE Land Uses 815, 820, 869) 24,978.76
Office (ITE Land Uses 710, 714, 750) 15,832.41
Industrial/Warehousing (ITE Land Uses
140, 150, 151) 8,660.43
Fast-Food Restaurant w/ drive thru (ITE
Land Use 934) 3,925.30
Gas Station (ITE Land Use 945) 3,758.16
Restaurant (ITE Land Uses 931, 932) 3,710.03
Hotel (ITE Land Use 310) 1,256.82
Total Trips 62,121.92
Internal Trip Reduction1 (19,257.79)
Total Adjusted Special Benefit Trips 42,864.12
(1) The internal trip rate percentage was calculated by using the NCHRP 684 Internal Rate Capture Estimation Tool.10
The total of all special benefit trips was removed from the average number of vehicles per day traveling within the District to estimate the number of pass-through trips daily.
Street Name
Average Number
of Vehicles
per Day
Less:
Estimated Special
Benefit Trips
Estimated Number
of Pass
Through Trips
Estimated %
General
Benefit
McCarthy Blvd. 44,206 42,864 1,342 3.04%
Based on the above calculations, the general benefit portion of the improved aesthetics, increased safety, and economic activity benefits resulting from the landscaping improvements is estimated to be 3.04%.
Pass-thru Vehicle General Benefit 3.04%
8 Trip Generation, 9th Edition: An Informational Report of the Institute of Transportation Engineers. (2012) Washington, DC: Institute of Transportation Engineers.
9 Bochner, Brian S., Hooper, Kevin, Sperry, Benjamin and Dunphy, Robert. National Cooperative Highway Research Program, Transportation Research Board of National Academies (2011). NCHRP Report 684 Enhancing Trip Capture Estimation for Mixed - Use Developments. Retrieved from onlinepubs.trb.org/onlinepubs/nchrp/nchrp_rpt_684.pdf 10 Ibid.
City of Milpitas
Fiscal Year 2026/27 – LLMAD No. 95-1 Engineer’s Report 11 The commonly accepted distance people will walk for public transportation, goods and services is one- quarter mile.11 However, based on the location of the District, and given that it is bounded by State Route 880 and 237, and Coyote Creek, there is not an efficient or practical means of walking into the District.
Although unlikely, a person may decide to use the paths within the District, and as such the general benefit portion of the improved aesthetics, increased safety, and economic activity benefits resulting from the landscaping improvements is estimated to be 1.00%.
Pass-thru Walking General Benefit 1.00%
An estimated 1% of all US trips are made by bicycle12. Although the District is bounded by State Route 880 and 237, and Coyote Creek, there is a bike lane on N McCarthy Boulevard and a bike path along Coyote Creek13. According to the National Household Travel Surveys, 49% of bike trips are for recreation, exercise, and sports14. As result of the District maintenance activities, there will be a level of general benefit to bicycle traffic that is not associated with property in the District. As such the general benefit portion of the improved aesthetics, increased safety, and economic activity benefits resulting from the landscaping improvements is estimated to be .50%, rounded up to 1.00%.
Pass-thru Biking General Benefit 1.00%
Collective District-Wide General Benefit
Since the District is comprised of improved aesthetics, safety, and economic activity benefits resulting from the collective landscaping improvements, the activity of both pedestrians and vehicles must be addressed in a collective form rather than independently. The sum of the calculated general benefits is the total general benefit related to vehicle, walking, and biking pass-thru traffic. This general benefit result is provided in the table below:
Pass-thru Vehicle General Benefit 3.04%
Pass-thru Walking General Benefit 1.00%
Pass-thru Biking General Benefit 1.00%
Total General Benefit 5.04%
The general benefit, which is the percentage of the total budget that must be funded through sources other than assessments, is 5.04%. The special benefit then, which is the percentage of the budget that may be funded by assessments, is 95.00%. This general benefit percentage is in line with the level of general benefit determined by the assessment engineer at formation of the District (less than 10%).
11 Walkscore. (2014). Walk Score Methodology. Retrieved from http://www.walkscore.com/methodology.shtml 12 U.S Department of Transportation. Federal Highway Administration. (2011). Summary of Travel Trends: 2009 National Household Travel Survey. (Report No. FHWA-PL-11-022). Retrieved from http://nhts.ornl.gov 13 City of Milpitas. (2002). General Plan. Retrieved from http://www.ci.milpitas.ca.gov 14 Pucher, J., Buehler R., Meron, F., and Bauman, A. American Journals of Public Health, Supplement 1, Vol 101, No S1 (2011).
Walking and Cycling in the United States, 2001-2009: Evidence from the National Household Travel Surveys. Retrieved from http://www.ncbi.nlm.nih.gov/pubmed/21551387
City of Milpitas
Fiscal Year 2026/27 – LLMAD No. 95-1 Engineer’s Report 12
4.5 Special Benefit Trips
The detailed breakdown of the estimated special benefit trips for each parcel in the District is shown in the following table.
Assmt ID
Assessor’s
Parcel
Number Land Use Description Acreage
Gross
Leasable
Area
Average
Trip Rate1
Estimated # of
Daily Special
Benefit Trips2
1-1A-1 022-54-016 710 - General office 1.05 8,500 11.03 93.76 1-1A-2 022-54-017(3) 310 – Hotel 3.29 83,310 8.17 680.64 1-1A-3 022-54-018(3) 310 – Hotel 2.31 70,524 8.17 576.18 1-1A-4 022-54-019 934 - Fast Food 0.19 0.00 496.12 0.00 1-1B 022-54-008 934 - Fast Food 0.78 2,912 496.12 1,444.70 1-2 022-54-002 820 - Shopping Center 0.58 5,600 42.70 239.12 1-3 022-54-003 932 - High Vol. Restaurant 1.02 5,465 127.15 694.87 1-4A 022-54-009 869 - Home Superstore 8.47 86,250 20.00 1,725.00 1-4B 022-54-012 820 - Shopping Center 3.02 15,000 42.70 640.50 1-4C 022-54-013 820 - Shopping Center 0.23 10,000 42.70 427.00 1-4D 022-54-015 931 - Quality Restaurant 1.78 8,285 89.95 745.24 1-4E 022-54-014 932 - High Vol. Restaurant 0.64 3,710 127.15 471.73 1-4F 022-54-011 820 - Shopping Center 1.31 9,100 42.70 388.57 1-4G 022-54-010 931 - Quality Restaurant 1.03 7,476 89.95 672.47 2-1 022-53-001 931 - Quality Restaurant 0.75 6,500 89.95 584.68 2-2 022-53-002 820 - Shopping Center 1.23 15,020 42.70 641.35 2-3 022-53-003 820 - Shopping Center 0.76 12,000 42.70 512.40 2-4 022-53-004 934 - Fast Food 0.6 2,000 496.12 992.24 2-5 022-53-005 934 - Fast Food 0.74 3,000 496.12 1,488.36 2-6 022-53-006 820 – Shopping Center 1.19 51,250 45.04 2,308.30 2-7 022-53-007 820 - Shopping Center 21.92 187,134 42.70 7,990.62 3 022-29-016 815 - Discount Superstore 14.56 125,000 50.75 6,343.75 4-1A-1 022-56-005 714 - Corp Headquarters 2.04 115,753 7.98 923.71 4-1A-2 022-56-006 714 - Corp Headquarters 2.06 174,483 7.98 1,392.37 4-1A-3 022-56-007 714 - Corp Headquarters 2.07 174,483 7.98 1,392.37 4-1A-4 022-56-008 Undeveloped 34.52 - - -
4-1A-5 022-56-009 Parking Lot 24.32 - - -
4-1B 022-29-037 Undeveloped 6 - - -
5-1A-1 022-29-034 750 - Office Park 36.49 572,660 11.42 6,539.78 5-2A-1 022-29-035 750 - Office Park 31.31 480,772 11.42 5,490.42 5-3A-1 022-29-040 150 – Warehousing/710
General Office
15.55 313,978 8.87 2,784.67
5-3A-2 022-29-041 931 – Quality Restaurant 0.14 6,015 89.95 541.05 5-3A-3 022-29-042 150 – Warehousing/710
General Office 6.94 136,632 8.87 1,211.79
5-3A-4 022-29-043 150 – Warehousing/710
General Office 7.36 122,208 8.87 1,083.86
5-3A-5 022-29-044 140 - Manufacturing and 710
General Office 7.73 131,331 8.87 1,164.77
5-3B-1A 022-30-054 140 - Manufacturing and 710
General Office 5.63 99,576 8.87 883.14
5-3B-2 022-30-038 Undeveloped 10 - - -
5-3B-3 022-30-039 Undeveloped 5 - - -
5-3C 022-30-0354 Pump Station 0.19 - - 1.00
City of Milpitas
Fiscal Year 2026/27 – LLMAD No. 95-1 Engineer’s Report 13 Assmt ID
Assessor’s
Parcel
Number Land Use Description Acreage
Gross
Leasable
Area
Average
Trip Rate1
Estimated # of
Daily Special
Benefit Trips2
5-5A-1 022-30-055 815 - Discount Superstore 5.6 74,131 50.75 3,762.15 5-5A-2 022-30-056 915 – Gasoline/Service Station 0.59 3,182 1,181.07 3,758.16 5-5A-3 022-30-057 151 – Mini-Warehouse 3.15 114,707 13.34 1,530.19 5-6 022-30-041 Open Space 0 - - -
5-7 022-30-0494 Sewer Pump Station 9.12 8,500 11.03 1.00 Total Estimated Daily Special Benefit Trips 62,121.92
Internal Trip Reduction5 (19,257.79)
Total Special Benefit Trips 42,864.12
(1) Average Trip Rate per Day is from the Institute of Traffic Engineer’s, Trip Generation Report. 15 (2) Average Number of Special Benefit Trips per Day is the Average Trip Rate times each 1,000 square feet of gross leasable area. (3) Average Number of Special Benefit Trips per Day is the Average Trip Rate times number of hotel rooms for this parcel. (4) Pump Station trips are an estimate.
(5) The internal trip rate percentage was calculated by using the NCHRP 684 Internal Rate Capture Estimation Tool. 16
15 Trip Generation, 9th Edition: An Informational Report of the Institute of Transportation Engineers. (2012) Washington, DC: Institute of Transportation Engineers.
16 Bochner, Brian S., Hooper, Kevin, Sperry, Benjamin and Dunphy, Robert. National Cooperative Highway Research Program, Transportation Research Board of National Academies (2011). NCHRP Report 684 Enhancing Trip Capture Estimation for Mixed - Use Developments. Retrieved from onlinepubs.trb.org/onlinepubs/nchrp/nchrp_rpt_684.pdf
City of Milpitas
Fiscal Year 2026/27 – LLMAD No. 95-1 Engineer’s Report 14
5. METHOD OF ASSESSMENT
5.1 Introduction
The special benefits that accrue to the properties in the District are limited to those properties that abut an improved public street or which have been obligated by issuance of bonds for necessary public improvements (the “Benefited Parcels”). Other properties in the District receive only a general benefit from the work of the improvements, and there is also some general benefit that accrues to the community as a whole. As outlined in Section 4, the total amount of general benefit from the improvements is determined to be 5.04%.
The Benefited Parcels receive a special benefit proportionate to their net acreage and thus they are assessed on the basis of total net acreage for all costs associated with the maintenance and installation of the District’s improvements, with the following exceptions:
• Of the 9.12 acres of parcel 022-30-049 (sewer pump station), 5.51 acres is the pump station and is not assessable. The remaining 3.61 acres does not benefit from landscaping as much as other Benefited Parcels because it is dedicated to municipal sanitary sewer and storm facilities use and will not otherwise be developed. Therefore, it is assigned a special benefit equal to 50% of other Benefited Parcels.
• Parcel 022-30-035 (storm pump station) does not benefit from landscaping as much as other Benefited Parcels because it is dedicated to municipal sanitary sewer and storm facilities use and will not otherwise be developed. Therefore, it is assigned a special benefit equal to 50% of other Benefited Parcels.
• Parcel 022-29-037 and parcel 022-30-041 are dedicated to open space and therefore do not receive special benefit from the maintenance and improvements.
5.2 Method of Assessment Spread
The amount of assessment levied on each Benefited Parcel in the District, for Fiscal Year 2026/27, is $0.03897 per square foot. The assessment rate was determined by taking the Fiscal Year 2026/27 Net Amount to be assessed ($459,672) divided by the total net square footage of the District (11,794,540 sq. ft.).
The maximum assessment rate for Fiscal Year 2026/27 is approximately $0.0586, which is a preliminary number. Each year the maximum assessment rate per square foot is increased by the percentage change from April 1st of the prior year to April 1st of the current year in the U.S. Department of Labor, Bureau of Labor Statistics, Consumer Price Indexes, Pacific Cities and U.S. City Average, San Francisco-Oakland- Hayward. The April 1, 2026 CPI was not available at the time of writing of this report. For purposes of this report, the CPI increase was estimated by using the February 1, 2026 CPI.
City of Milpitas
Fiscal Year 2026/27 – LLMAD No. 95-1 Engineer’s Report 15
5.3 Maximum Assessment Rates
The following table provides the historical maximum assessment rate for Fiscal Year 2001/02 through the current fiscal year:
Fiscal Year CPI Percentage Increase(1) Assessment Rate Range(2) 2001/02 189.1 N/A $0.0120 $0.0300
2002/03 193.0 2.06% 0.0122 0.0306
2003/04 197.3 2.23% 0.0125 0.0313
2004/05 198.3 0.51% 0.0126 0.0315
2005/06 202.5 2.12% 0.0129 0.0321
2006/07 208.9 3.16% 0.0133 0.0331
2007/08 215.842 3.32% 0.0137 0.0342
2008/09 222.074 2.89% 0.0141 0.0352
2009/10 223.854 0.80% 0.0142 0.0355
2010/11 227.697 1.72% 0.0144 0.0361
2011/12 234.121 2.82% 0.0149 0.0371
2012/13 238.985 2.08% 0.0152 0.0379
2013/14 244.675 2.38% 0.0155 0.0388
2014/15 251.495 2.79% 0.0160 0.0399
2015/16 257.622 2.44% 0.0163 0.0409
2016/17 264.565 2.70% 0.0168 0.0420
2017/18 274.589 3.79% 0.0174 0.0436
2018/19 283.422 3.22% 0.0180 0.0450
2019/20 294.801 4.01% 0.0187 0.0468
2020/21 298.074 1.11% 0.0189 0.0473
2021/22 309.419 3.81% 0.0196 0.0491
2022/23 324.878 5.00% 0.0206 0.0515
2023/24 338.496 4.19% 0.0215 0.0537
2024/25 351.247 3.77% 0.0223 0.0557
(1) Percentage increase from April 1 of the prior year to April 1 of the current year in the US Department of Labor, Bureau of Labor Statistics, Consumer Price Indexes, Pacific Cities and US City Average, San Francisco-Oakland-Hayward. (2) The left and right column indicate the minimum and maximum assessment rate, respectively. (3) The April 1, 2026 CPI was not available at the time of writing of this report. The Fiscal Year 2026/27 CPI increase was estimated using the February 1, 2026 CPI.
5.4 Appeals
Any property owner who feels that the amount of their assessment is in error as a result of incorrect information being used to apply the foregoing method of spread may file an appeal with the Finance Director of the City. Any such appeal is limited to the correction of an assessment during the current or, if before July 1, the upcoming fiscal year. Upon the filing of any such appeal, the Finance Director shall promptly review the information provided by the property owner and if he/she finds that the assessment should be modified, he/she shall have the authority to make the appropriate changes in the assessment roll. If any such changes are provided after the assessment roll has been filed with the County for collection, the Finance Director is authorized to refund to the property owner the amount of any approved reduction.
2025/26 354.432 2.69% 0.0229 0.0572
2026/27 363.211 2.48 (3) 0.0235 0.0586
City of Milpitas
Fiscal Year 2026/27 – LLMAD No. 95-1 Engineer’s Report A
APPENDIX A - ASSESSMENT DIAGRAM
The following page provides a copy of the assessment diagram of the District.
City of Milpitas
Fiscal Year 2026/27 – LLMAD No. 95-1 Engineer’s Report B
APPENDIX B - ASSESSMENT ROLL
Assessor’s parcel identification, for each lot or parcel within the District, shall be based on the Santa Clara County Assessor’s secured roll data for the applicable year in which this report is prepared and is incorporated herein by reference.
A listing of assessor’s parcels assessed within the District for Fiscal Year 2026/27, along with the assessment amounts, is on file in the office of the City Clerk and incorporated herein by reference. Based on County Assessor’s secured roll data, current assessor’s parcels, including corrected and/or new assessor’s parcels, will be submitted and/or resubmitted to the Santa Clara County Auditor/Controller. The annual assessment amount to be levied and collected for the resubmitted parcel(s) shall be determined in accordance with the method of apportionment and assessment rate approved in this report. Therefore, if a single assessor’s parcel has a status change in development, other land use change, or subdivides into multiple assessor’s parcels, the assessment amounts applied to each of the new assessor’s parcels shall be recalculated and applied according to the approved method of apportionment and assessment rate rather than a proportionate share of the original assessment amount.
City of Milpitas
LLMAD No. 95-1
Final Billing Detail Report for Fiscal Year 2026/27
APN Situs Address Net Square Foot Fiscal Year 2026/27 Levy 022-29-016 301 RANCH DR 634,234 $24,718.16
022-29-034 430 N MCCARTHY BLVD 1,589,504 61,948.20
022-29-035 820 N MCCARTHY BLVD 1,363,864 53,154.24
022-29-040 407N N N MCCARTHY BLVD 677,532 26,405.64
022-29-041 507N N N MCCARTHY BLVD 43,691 1,702.76
022-29-042 607N N N MCCARTHY BLVD 302,350 11,783.56
022-29-043 707 N MCCARTHY BLVD 320,732 12,499.98
022-29-044 807 N MCCARTHY BLVD 336,545 13,116.24
022-30-035 4,138 161.26
022-30-038 435,600 16,976.76
022-30-039 1207 N MCCARTHY BLVD 217,800 8,488.38
022-30-049 78,626 3,064.30
022-30-054 907 N MCCARTHY BLVD 245,330 9,561.30
022-30-055 1645 N MCCARTHY BLVD 243,936 9,506.98
022-30-056 1605 N MCCARTHY BLVD 25,875 1,008.40
022-30-057 1585 N MCCARTHY BLVD 137,040 5,340.88
022-53-001 275 RANCH DR 32,670 1,273.24
022-53-002 179 RANCH DR 53,579 2,088.14
022-53-003 125 RANCH DR 33,106 1,290.22
022-53-004 81 RANCH DR 26,136 1,018.60
022-53-005 41 RANCH DR 32,234 1,256.28
022-53-006 63 RANCH DR 51,836 2,020.22
022-53-007 11 RANCH DR 954,835 37,213.06
022-54-002 74 RANCH DR 25,265 984.64
022-54-003 84 RANCH AVE 44,431 1,731.62
022-54-008 50 RANCH DR 33,977 1,324.18
022-54-009 120 RANCH DR 368,953 14,379.30
022-54-010 110 RANCH DR 44,867 1,748.60
022-54-011 170 RANCH DR 57,064 2,223.94
022-54-012 200 RANCH DR 131,551 5,126.98
022-54-013 212 RANCH DR 10,019 390.46
022-54-014 190 RANCH DR 27,878 1,086.50
022-54-015 260 RANCH DR 77,537 3,021.86
022-54-016 12 RANCH DR 46,174 1,799.52
022-54-017 30 RANCH RD 143,312 5,585.34
022-54-018 40 RANCH DR 100,624 3,921.62
022-54-019 8,276 322.54
022-56-005 115 N MCCARTHY BLVD 88,427 3,446.28
022-56-006 135 N MCCARTHY BLVD 89,734 3,497.20
022-56-007 155 N MCCARTHY BLVD 90,169 3,514.18
022-56-010 205 N MCCARTHY BLVD 1,489,899 58,066.26
022-56-011 1,075,192 41,903.76
Slight variances may occur due to rounding
Copyright © 2013 by NBS Page 1 of 2 03/25/2026 03:52:44PM
City of Milpitas
LLMAD No. 95-1
Final Billing Detail Report for Fiscal Year 2026/27
APN Situs Address Net Square Foot Fiscal Year 2026/27 Levy 11,794,540 $459,671.5842 Accounts
Slight variances may occur due to rounding
Copyright © 2013 by NBS Page 2 of 2 03/25/2026 03:52:44PM
1 Resolution No. xxxx
RESOLUTION NO. _____
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MILPITAS,
APPROVING THE ANNUAL REPORT FOR THE LANDSCAPING AND
LIGHTING MAINTENANCE ASSESSMENT DISTRICT NO. 95-1 FOR FISCAL YEAR 2026/27
WHEREAS, the City Council previously completed its proceedings in accordance with and pursuant to the Landscaping and Lighting Act of 1972, Part 2, Division 15 of the California Streets and Highways Code (commencing with Section 22500) (the “Act”) to establish the Landscaping and Lighting Maintenance Assessment District 95-1 (the “Assessment District”); and
WHEREAS, the City Council has retained NBS for the purpose of assisting with the annual levy of the Assessment District, and the preparation and filing of and the report required pursuant to Section 22622 of the Act (the “Annual Report”); and
WHEREAS, the City Council has, by previous resolution, ordered NBS to prepare and file such Annual Report; and
WHEREAS, NBS has prepared and filed such Annual Report with the City Clerk.
WHEREAS, all statutory and otherwise required prerequisites for the adoption of the Annual Report have occurred, including as specified in the Act.
NOW, THEREFORE, the City Council of the City of Milpitas hereby finds, determines and resolves as follows:
1. The City Council has considered the full record before it, which may include but is not limited to such things as the staff report, testimony by staff and the public, and other materials and evidence submitted or provided to it. Furthermore, the recitals set forth above are found to be true and correct and are incorporated herein by reference.
2. Approval of Report: The City Council hereby approves the Annual Report for the Assessment District concerning the levy of assessments as submitted by NBS for the fiscal year commencing July 1, 2026 and ending June 30, 2027.
3. The Assessment District exterior boundaries are as shown by a map filed in the office of the City Clerk, which map is made a part hereof by this reference.
PASSED AND ADOPTED this day of , 2026, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
2 Resolution No. xxxx
ATTEST: APPROVED:
_____________________________ _____________________________ Suzanne Guzzetta, City Clerk Carmen Montano, Mayor
APPROVED AS TO FORM:
_____________________________
Christian M. Curtis, City Attorney
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MILPITAS
DECLARING ITS INTENTION TO LEVY AND COLLECT ASSESSMENTS FOR THE LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT NO. 95-1 FOR FISCAL YEAR 2026/27
WHEREAS, the City Council previously completed its proceedings in accordance with and pursuant to the Landscaping and Lighting Act of 1972, Part 2, Division 15 of the California Streets and Highways Code (commencing with Section 22500) (the “Act”) to establish the Landscaping and Lighting Maintenance Assessment District No. 95-1 (the “Assessment District”); and
WHEREAS, the City Council has retained NBS for the purpose of assisting with the annual levy of the Assessment District, and the preparation and filing of the report required pursuant to Section 22622 of the Act (the “Annual Report”); and
WHEREAS, the City Council adopted a Resolution approving the Annual Report for the Assessment District for Fiscal Year 2026/27; and
WHEREAS, all statutory and otherwise required prerequisites for the issuance of a notice of intent to levy and collect assessments within the Assessment District have been met, including as specified in the Act.
NOW, THEREFORE BE IT RESOLVED, DETERMINED, AND ORDERED BY THE CITY COUNCIL, AS FOLLOWS:
1. The City Council has considered the full record before it, which may include but is not limited to such things as the staff report, testimony by staff and the public, and other materials and evidence submitted or provided to it. Furthermore, the recitals set forth above are found to be true and correct and are incorporated herein by reference.
2. Intention: The City Council hereby declares its intention to levy and collect assessments within the Assessment District to pay the costs of the Improvements for the fiscal year commencing July 1, 2026 and ending June 30, 2027. The City Council finds that the public’s best interest requires such action.
3. Improvements: The improvements within the Assessment District include, but are not limited to:
operating, maintaining and servicing of all public landscaping improvements, consisting of landscaping and grass. Operating, maintaining and servicing costs include, but are not limited to: personnel, materials, electrical energy and water. Services provided include all necessary service, operations, administration, and maintenance required to keep the improvements in a healthy, vigorous, and satisfactory condition. A project renovating the landscape and irrigation improvements in the Assessment District was initiated in Fiscal Year 2021/22 and will be completed in Fiscal Year 2026/27.
4. Assessment District Boundaries: The boundaries of the Assessment District are as shown by the assessment diagram filed in the offices of the City Clerk, which map is made a part hereof by reference.
5. Annual Report: Reference is made to the Annual Report prepared by NBS, on file with the City Clerk, for a full and detailed description of the improvements, the boundaries of the Assessment District and the zones therein, and the proposed assessments upon assessable lots and parcels of land within the Assessment District.
6. Notice of Public Hearing: The City Council hereby declares its intention to conduct a public hearing concerning the levy of assessments in accordance with Section 22629 of the Act. All objections to the assessment, if any, will be considered by the City Council. The public hearing will be held on Tuesday, May 19, 2026 at 7:00 pm or as soon thereafter as is feasible in the meeting place of the City Council
2 Resolution No. xxxx
located at 455 E. Calaveras Boulevard, Milpitas, CA 95035. The City Council further orders the City Clerk to publish notice of this resolution in accordance with Section 22626(a) of the Act.
7. Increase of Assessment: The maximum assessment is not proposed to increase (as “increased assessment” is defined in Section 54954.6 of the Government Code) either because this ongoing annual assessment is imposed at the same or lower amount as the previous year or does not exceed the assessment formular or range of assessments previously approved by the voters in the area where the assessment is imposed. .
PASSED AND ADOPTED this _____ day of ___________, 2026, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST: APPROVED:
_____________________________ _____________________________ Suzanne Guzzetta, City Clerk Carmen Montano, Mayor
APPROVED AS TO FORM:
_____________________________
Christian M. Curtis, City Attorney
CITY OF MILPITAS
AGENDA REPORT
(AR)
Item Title: Adopt a Resolution to Approve Project Plan and Specifications and Award the Construction Contract to GSW Construction, Inc. for the Curtis Recycled Water Main Repair Project – Phase 1 (Staff Contact: Christian Di Renzo, Public Works Director, 408-586-2602; and Michael Silveira, City Engineer, 408-586-3303) Category: Consent Calendar-Community Services and Sustainable Infrastructure Meeting Date: 4/21/2026
Recommendation: Adopt a resolution to: (1) Approve the project plan and specifications, (2) Award the construction contract to GSW Construction, Inc., the lowest responsible bidder submitting a responsive bid, in the amount of $164,130; (3) Authorize the City Manager, or designee, to execute the construction contract with GSW Construction, Inc.; (4) Authorize the Public Works Director to negotiate and execute contract change order(s) in an aggregate amount not-to-exceed $41,000; and (5) Approve a budget appropriation of $205,130 into the Water Maintenance & Operations Fund for the Curtis Recycled Water Line Repair Project Phase 1.
BACKGROUND:
In 1995, the City of Milpitas (Milpitas) entered into a Wholesaler-Retailer Agreement with the City of San José (San José) for the supply of recycled water from the San José/Santa Water Pollution Control Plant through the South Bay Water Recycling Program. As San José owns the recycled water distribution facilities (System) within Milpitas city limits, Milpitas operates and maintains the System as specified in the Operation and Maintenance Agreement (O&M Agreement) with San José executed in 1997. The O&M Agreement requires San José to fully reimburse Milpitas for all work associated with the operations and maintenance, including emergency services, of the System.
In April 2025, City operations staff responded to a recycled water main break on the existing 20-inch welded steel pipeline in Curtis Avenue (west of the BART/Union Pacific Railroad (UPRR) tracks) that affected eight customers. Due to the complexity of the repair and excavation work, staff dispatched the City’s on-call emergency contractor (Contractor) to investigate and repair the leak. The initial excavation did not reveal the source of the leak, but it appeared to be located inside the 30-inch steel casing where the recycled water main runs beneath the railroad tracks. To mitigate impacts in the interim, the Contractor installed a new isolation valve on the water main to isolate the break and service was successfully restored to all affected customers.
Staff met with San José to discuss the findings and presented a two-phase workplan to repair the leak that is Milpitas’ responsibility according to the O&M Agreement. The first phase would be to further investigate and identify the exact location of the leak by excavating on the east side of the railroad tracks within the City’s utility easement on 777 Gibraltar Drive and video inspect the 20-inch recycled water main. This would allow staff to determine if the leak is on the east side or underneath the railroad tracks. Upon the results of the investigation, staff will determine necessary repairs and present the second-phase workplan to San José for acceptance.
San José was in concurrence with Milpitas’ workplan and approved Milpitas to proceed with the first phase of Curtis Ave. Recycled Water Line Repair – Phase 1 (Project).
ANALYSIS:
The Project was advertised on the City’s eProcurement system, OpenGov Procurement, and digital construction trade publication on February 13, 2026, and in the Milpitas Post on February 13 and 20, 2026, in accordance with the bidding requirements of the Uniform Public Construction Cost Accounting Act and City Ordinance I-2-3.08 – Formal Bid Procedures. The Project was also posted at Milpitas City Hall, Sports Center, and Senior Center as per City Council direction and Government Code Section 36933. The bid opening was
held on March 17, 2026, and six (6) sealed bids were received with the prices ranging from $164,130 to $218,180. The Council’s agenda packet includes detailed information about the Project’s Plans and Specifications (Attachment B), and the Engineer’s Construction Estimate and the Bid Results for the Project’s base bid (Attachment C). The Summary of Bid Results is as follows:
Bidder Location Base Bid
Engineer’s Construction Estimate $184,500
GSW Construction Inc. San Francisco, CA $164,130
Cratus San Francisco, CA $175,000
Golden Bay Construction Hayward, CA $186,184
Corcus Construction San Francisco, CA $205,500
Norgo Engineering American Canyon, CA $206,300
Preston Pipelines Milpitas, CA $218,180
The bid pricing received varies between 11% below to 18% over the Engineer’s Construction Estimate. The variation is likely due to various factors including, but not limited to, favorable construction market, timing of the bid posting, contractor’s work schedule, an increase in competition amongst contractors, contractors self- performing work instead of using subcontractors, and/or reduced cost in material and labor.
Staff reviewed the bid proposal submitted by GSW Construction, Inc., the apparent lowest bidder, and found their bid proposal to be responsive. The Notice of Intent to Award Contract (Attachment D) to GSW Construction, Inc. was posted on OpenGov Procurement and no bid protests were filed with the City. Staff recommends City Council award the construction contract in the amount of $164,130 to GSW Construction, Inc., the lowest responsible bidder submitting a responsive bid. The cost of the work will be fully reimbursed to Milpitas by San José as per the O&M agreement, and no additional funding appropriation is required.
Despite the Milpitas best effort to capture all relevant information in the plans and specifications, a significant challenge in water pipeline construction is the potential discovery of unforeseen conditions that may create conflict with the proposed work. The construction contingency established for the Project to address any unforeseen conditions that arise during construction is $41,000, which is approximately 25% of the total contract value. As previously approved for the successful completion of recent projects with tight completion schedules, staff are requesting the use of the same change order policy used for previous project (Attachment E). This policy allows for timely completion of the Project, while addressing the need to respond swiftly to construction conditions and approve necessary change orders to limit potential claims or risks to the City.
PROJECT SCHEDULE/KEY MILESTONES
Upon City Council adoption of the Resolution (Attachment A), construction is anticipated to start in May/June and be completed by September. Thereafter, staff will meet with San José to discuss the next steps.
POLICY ALTERNATIVES:
Alternative 1: Do not award the construction contract to GSW Construction, Inc.
Pros: None.
Cons: The Project will not proceed, and the recycled water system will no longer be looped; there will be only one feed for delivering recycled water to customers on either side of the BART/UPRR railroad tracks.
Reason not Recommended: The Project is essential to maintaining a looped system for the recycled water system and providing system redundancy to prevent customers from being without service for a lengthy extend of time due to a main breakdown. Milpitas will be in violation of the O&M Agreement and could be liable for any damages to customers if the Project doesn’t move forward.
FISCAL IMPACT
The total fiscal impact of this action is $205,130, consisting of a $164,130 construction contract with GSW Construction, Inc. and $41,000 in contract change order contingency. Adoption of this resolution appropriates $205,130 to the Water Maintenance & Operations Fund for the Curtis Ave. Recycled Water Line Repair – Phase 1 Project. Pursuant to the Operation and Maintenance Agreement between the City of Milpitas and the City of San José, all project costs will be fully reimbursed by the City of San José, resulting in no net impact to the Water Maintenance & Operations Fund or the General Fund.
The following is the summary of estimated construction cost:
Base Bid $164,130
25% Construction Contingency $ 41,000
TOTAL $205,130
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):
The Project entails replacement or reconstruction of existing facilities where the new facility will be located on the same site as the facility replaced and will have substantially the same purpose and capacity as the facility replaced and is exempt from CEQA pursuant to Cal. Code Regs., tit. 14, §15302.
ATTACHMENTS:
(a) Resolution
(b) Project Plan and Specifications
(c) Bid Results Summary
(d) Notice of Intent to Award Contract
(e) Construction Change Order Policy
Attachment A
RESOLUTION NO. ______
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MILPITAS TO APPROPRIATE $205,130 TO THE WATER MAINTENANCE & OPERATIONS FUND; APPROVE PROJECT PLANS AND SPECIFICATIONS; AWARD THE CONSTRUCTION
CONTRACT TO THE LOWEST RESPONSIBLE BIDDER SUBMITTING A
RESPONSIVE BID, GSW CONSTRUCTION, INC., IN A TOTAL AMOUNT OF $164,130;
AUTHORIZE THE CITY MANAGER, OR DESIGNEE, TO EXECUTE THE CONSTRUCTION CONTRACT WITH GSW CONSTRUCTION, INC.; AUTHORIZE
THE PUBLIC WORKS DIRECTOR TO NEGOTIATE AND EXECUTE CONTRACT CHANGE ORDER(S) IN AN AGGREGATE AMOUNT NOT TO EXCEED $41,000; AND APPROVE A BUDGET APPROPRIATION OF $205,130 INTO THE WATER MAINTENANCE & OPERATIONS FUND FOR THE CURTIS AVE. RECYCLED WATER LINE REPAIR – PHASE 1.
WHEREAS, the City of Milpitas (Milpitas) entered into a Wholesaler-Retailer Agreement with the City of San José (San José) for the supply of recycled water from the San José/Santa Water Pollution Control Plant through the South Bay Water Recycling Program (SBWR) in 1995; and
WHEREAS, Milpitas entered into a the Operation and Maintenance Agreement (O&M Agreement) with the San José in 1997 where San José owns the recycled water distribution facilities (System) and Milpitas operates and maintains the System within Milpitas’ city limits, and San José to fully reimburse Milpitas for all work associated with the operations and maintenance, including emergency services, of the System; and
WHEREAS, in May 2025, the City’s Contractor installed a new isolation valve on the recycle water main in Curtis Avenue to isolate a break and restore services to customers, but the initial excavation did not reveal the exact source of the leak; and
WHEREAS, staff met with San José to discuss the findings and presented a two phase workplan to repair the leak on recycled water main in Curtis Avenue and San José was in concurrence with Milpitas’ workplan and approved to proceed with the first phase of Curtis Ave. Recycled Water Line Repair – Phase 1 (“Project”) which is to identify the exact location of the leak by excavating on the east side of the railroad tracks within the City’s utility easement and video inspect the 20-inch recycled water main; and
WHEREAS, the Project was advertised on City’s eProcurement system, OpenGov Procurement and digital construction trade publications on February 13, 2026, and in the Milpitas Post on February 13 and 20, 2026, in accordance with the bidding requirements of the Uniform Public Construction Cost Accounting Act and City Ordinance I-2-3.08 – Formal Bid Procedures; and posted at Milpitas City Hall, Sports Center, and Senior Center per City Council direction and Government Code section 36933; and
WHEREAS, the Engineer’s Construction Estimate is $184,500; and
WHEREAS, on March 17, 2026, six (6) sealed bid proposals were received, ranging from $164,130 to $218,180; and
WHEREAS, the lowest responsible bidder submitting a responsive bid is GSW Construction, Inc., in the base bid amount of $164,130; and
WHEREAS, the Notice of Intent to Award Contract to GSW Construction, Inc. was posted on OpenGov Procurement and no bid protest was filed with the City within seven (7) days of the notice of intent to award as set forth in the Milpitas Municipal Code I-2-3.19 – Protest Procedure; and
WHEREAS, staff recommends the City Council award a construction contract to GSW Construction, Inc., the lowest responsible bidder submitting a responsive bid for the Project, and authorize the City Manager, or
2 Resolution No. ____
designee, to execute the construction contract for the Base Bid in the amount of $164,130 in accordance with State law; and
WHEREAS, the cost of the work will be fully reimbursed to Milpitas by San José as per the O&M agreement; and
WHEREAS, staff recommends the City Council authorize the Public Works Director to negotiate and execute change order(s) in an amount not-to-exceed $41,000, twenty-five percent (25%) of the total contract value, due to the Project’s uncertain site conditions and staff’s capability to respond swiftly to unanticipated construction conditions to limit potential claims or risk to the City; and
WHEREAS, staff recommend the City Council approve the project plans and specifications; and
WHEREAS, staff recommends the City Council approve the Budget Appropriation of $205,130 into the Water Maintenance & Operating Fund for the Project, consisting of $164,130 for the construction contract with GSW Construction, Inc. and $41,000 for contract change order contingency, and recognizes offsetting reimbursement revenue in the same amount from the City of San José pursuant to the Operation and Maintenance Agreement.
NOW, THEREFORE, the City Council of the City of Milpitas hereby finds, determines, and resolves as follows:
1. The City Council has considered the full record before it, which may include but is not limited to such things as the staff report, testimony by staff and the public, and other materials and evidence submitted or provided to it. Furthermore, the recitals set forth above are found to be true and correct and are incorporated herein by reference.
2. The City Council hereby approves the Project Plan and Specifications.
3. The City Council hereby awards the construction contract to and authorizes the City Manager, or designee, to execute the contract and related documents with the lowest responsible bidder submitting a responsive bid, GSW Construction, Inc., in the amount of $164,130 for the Project.
The City Manager or their designee is authorized to execute a contract with GSW Construction, Inc. not-to-exceed this amount and take all necessary actions to effectuate this award.
4. The Public Works Director is hereby authorized to negotiate and execute contract change order(s) in an aggregate amount not to exceed $41,000 for the Project.
5. The City Council hereby appropriates $205,130 to the Water Maintenance & Operating Fund for the Project, consisting of $164,130 for the construction contract with GSW Construction, Inc. and $41,000 for contract change order contingency, and recognizes offsetting reimbursement revenue in the same amount from the City of San José pursuant to the Operation and Maintenance Agreement.
PASSED AND ADOPTED this day of , 2026, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
3 Resolution No. ____
ATTEST: APPROVED:
_____________________________ __________________________ Suzanne Guzzetta, City Clerk Carmen Montano, Mayor
APPROVED AS TO FORM:
_____________________________
Christian Curtis, City Attorney
Bid Set – January 2026
CITY OF MILPITAS
MILPITAS, CALIFORNIA
CONTRACT DOCUMENTS AND SPECIFICATIONS FOR
CURTIS AVE. RECYCLED WATER LINE REPAIR - EXPLORATORY
WORK
Recommended for Bidding: ____________________________________________________ Ariel Morales, P.E., Public Works Division Manager – Utilities
Approved for Bidding: ________________________________________________________ Michael Silveira, P.E., City Engineer
38077.00180\29080232.10 C2
-i- 00 11 16 – NOTICE INVITING BIDS
TABLE-OF-CONTENTS
Page
00 11 16 – NOTICE INVITING BIDS ......................................................................................... 1 00 21 13 – INSTRUCTIONS TO BIDDERS ............................................................................... 4 00 41 43 – BID FORMS .......................................................................................................... .13 00 52 13 – CONTRACT ........................................................................................................... 35 00 61 13 – BOND FORMS .......................................................................................................40 00 72 13 – GENERAL CONDITIONS .......................................................................................52 00 73 13 – SPECIAL CONDITIONS ....................................................................................... 108 01 00 00 – GENERAL REQUIREMENTS ............................................................................... 110 TECHNICAL PROVISIONS ........................................................................................ 130 E-01 MOBILIZATION (EAST SIDE) ................................................................ 144 E-02 PREPARE WATER POLLUTION CONTROL PROGRAM ...................... 146 E-03 CONSTRUCTION LAYOUT ................................................................... 151 E-04 EXCAVATION AND SHORING (EAST SIDE) ......................................... 152 E-05 CUTTING OF EXISTING 20” RECYCLED WATER LINE (EAST
SIDE) (REVOCABLE) .......................................................................... 163 E-06 VIDEO INSPECTION OF EXISTING RECYCLED WATER LINE
(REVOCABLE) .................................................................................... 164 E-07 INSTALLATION OF NEW 20” ISOLATION VALVE (EAST SIDE) (REVOCABLE) .................................................................................... 166 E-08 REMOVAL OF SHORING AND BACKFILL (EAST SIDE) ....................... 170 E-09 PAVEMENT RESTORATION (EAST SIDE) ........................................... 173 E-10 PRESERVATION OF PROPERTY ......................................................... 178 E-11 CONTROL OF WATER .......................................................................... 181 E-12 DEWATERING ...................................................................................... 183 E-13 COOPERATION ..................................................................................... 186 E-14 OBSTRUCTIONS ................................................................................... 187 E-15 SUBMITTAL PROCEDURES ................................................................. 189 EXHIBIT “A” – CITY STANDARD FORMS ...................................................... 194 EXHIBIT “B” – SITE PLAN .............................................................................. 227 EXHIBIT “C” – EXISTING DRAWINGS ........................................................... 228
38077.00180\29080232.10 C2
-1- 00 11 16 – NOTICE INVITING BIDS
00 11 16 – NOTICE INVITING BIDS
NOTICE IS HEREBY GIVEN that the City Council of the City of Milpitas (“City”) invites and will receive sealed Bids up to but not later than 2:00 p.m. on Tuesday, March 17, 2026, at Milpitas City Hall, 1st floor, Information Service Counter, 455 E. Calaveras Blvd., Milpitas, California 95035, for the furnishing to City of all labor, equipment, materials, tools, services, transportation, permits, utilities, and all other items necessary for the CURTIS AVE. RECYCLED WATER LINE REPAIR - EXPLORATORY WORK (the “Project”). At said time, Bids will be publicly opened and read aloud at the City Office. Bids received after said time shall be returned unopened. Bids shall be valid for a period of 90 calendar days after the Bid opening date.
Bids must be submitted on the City’s Bid Forms in person. No bid shall be accepted through OpenGov Procurement. Bidders may obtain a copy of the Contract Documents from OpenGov Procurement ( https://procurement.opengov.com/portal/milpitas-ca). To the extent required by Section 20103.7 of the Public Contract Code, upon request from a contractor plan room service, the City shall provide an electronic copy of the Contract Documents at no charge to the contractor plan room. Additionally, bid packa ges containing all forms, specifications, terms and conditions may be obtained on the City’s OpenGov Procurement website. Links or documents found outside the City’s online vendor portal may not be accessible/up-to-date.
It is the responsibility of each prospective bidd er to download and print all Bid Documents for review and to verify the completeness of Bid Documents before submitting a bid. Any Addenda will be posted on OpenGov Procurement. It is the responsibility of each prospective bidder to check OpenGov Procurement daily through the cl ose of bids for any applicable addenda or updates. The City does not assume any liability or responsibility based on any defective or incomplete copying, excerpting, scanning, faxing, downloading or printing of the Bid Documents.
Information on OpenGov Procurement may change without notice to prospective bidders. The Contract Documents shall supersede any information posted or transmitted by OpenGov Procurement.
Each Bid shall be accompanied by cash, a certified or cashier’s check, or Bid Bond secured from a surety company satisfactory to the City Council, the amount of which shall not be less than ten percent (10%) of the submitted Total Bid Price, made payable to City of Milpitas as bid security.
The bid security shall be provided as a guarante e that within five (5) working days after the City provides the successful bidder the Notice of Award, the successful Bidder will enter into a contract and provide the necessary bonds and certificates of insurance. The bid security will be declared forfeited if the successful Bidder fails to comply within said time. No interest will be paid on funds deposited with City.
A MANDATORY Pre-Bid Conference and Site Walk are scheduled for Thursday, February 26, 2026 at 10:00 a.m. and Tuesday, March 3, 2026 at 10:00 a.m. to review the Project's existing conditions. The meeting will be held at Flex Inc., 777 Gibraltar Dr., Milpitas, CA 95035, adjacent to the railroad tracks within the utility easeme nt. Representatives of the City and consulting engineers, if any, will be present. Questions as ked by Bidders at the Pre-Bid Conference not specifically addressed within the Contract Documents shall be answered in writing and issued as an Addendum. Bids will not be accepted from any bidder who did not attend one of the mandatory Pre-Bid Conferences.
The deadline for submitting ques tions related to this bid is Friday, March 6, 2026 at 4:00 p.m.
Contact Howard Salamanca, Associate Civil Engineer for questions submittal. Addenda with answers to questions received by the specified time will be posted following the close of questions.
38077.00180\29080232.10 C2
-2- 00 11 16 – NOTICE INVITING BIDS
The successful Bidder will be required to furnish a Faithful Performance Bond and a Labor and Material Payment Bond, each in an amount equal to one hundred percent (100%) of the Contract Price. Each bond shall be in the forms set forth herein, shall be secured from a surety company that meets all State of California bonding requir ements, as defined in California Code of Civil Procedure Section 995.120, and that is a California admitted surety insurer.
Pursuant to Section 22300 of the Public Contract Code of the State of California, the successful Bidder may substitute certain securities for funds withheld by the City to ensure its performance under the contract.
Pursuant to Labor Code Section 1773, the City has obtained the prevailing rate of per diem wages and the prevailing wage rate for holiday and overtime work applicable in Santa Clara County from the Director of the Department of Industrial Relations for each craft, classification, or type of worker needed to execute this contract. A copy of these prevailing wage rates may be obtained via the internet at http://www.dir.ca.gov/dlsr/.
In addition, a copy of the prevailing rate of per diem wages is available at the City’s Public Works Department and shall be made available to inte rested parties upon request. The successful bidder shall post a copy of the prevailing wage rates at each job site. It shall be mandatory upon the Bidder to whom the Contract is awarded, and upon any subcontractors, to comply with all Labor Code provisions, which include but are not limited to the payment of not less than the said specified prevailing wage rates to all workers employed by them in the execution of the Contract, employment of apprentices, hours of labor and debarment of contractors and subcontractors.
Pursuant to Labor Code Sections 1725.5 and 1771.1, all contractors and subcontractors that wish to bid on, be listed in a bid proposal, or enter into a contract to perform public work must be registered with the Department of Industrial Relations. No Bid will be accepted, nor any contract entered into, without proof of the contractor’s and subcontractors’ current registration with the Department of Industrial Relations to perform public work. If awarded a contract, the Bidder and its subcontractors, of any tier, shall maintain active registration with the Department of Industrial Relations for the duration of the Project. Notwithstanding the foregoing, the contractor registration requirements mandated by Labor Code Sections 1725.5 and 1771.1 shall not apply to work performed on a public works project that is ex empt pursuant to the small project exemption specified in Labor Code Sections 1725.5 and 1771.1.
This Project is subject to compliance monitoring and enforcement by the Department of Industrial Relations. In bidding on this Project, it shall be the Bidder’s sole responsibility to evaluate and include the cost of complying with all labor comp liance requirements under this contract and applicable law in its Bid.
Unless otherwise provided in the Instructions for Bidders, each Bidder shall be a licensed contractor pursuant to Sections 7000 et seq. of the Business and Professions Code in the following classification(s) throughout the time it submits its Bid and for the duration of the contract:
Class A or Class C-34 License from the Contractor’s State License Board. The Engineer’s Estimate for the CURTIS AVE. RECYCLED WATER LINE REPAIR - EXPLORATORY WORK project base bid item is between $150,000 and $220,000.
Substitution requests shall be made within 35 ca lendar days after the award of the contract.
Pursuant to Public Contract Code Section 3400(b), the City may ma ke findings designating that certain additional materials, methods, or services by a specific brand or trade name other than those listed in the Standard Specifications be used for the Project. Such findings, if any, as well
38077.00180\29080232.10 C2
-3- 00 11 16 – NOTICE INVITING BIDS
as the materials, methods, or services and their specific brand or trade names that must be used for the Project, may be found in the Special Conditions.
City shall award the contract for the Project to the lowest responsive and responsible Bidder as determined by the City from the BASE BID ALONE. City reserves the right to reject any or all bids or to waive any irregularities or informalities in any bids or in the bidding process.
For further information, contact Howard Salamanca, Associate Civil Engineer at Milpitas City Hall, 455 E. Calaveras Blvd., Milpitas, CA 95035, [email protected], (408) 586-3347.
END OF NOTICE INVITING BIDS
38077.00180\29080232.10 C2
-4- 00 21 13 – INSTRUCTIONS TO BIDDERS
00 21 13 – INSTRUCTIONS TO BIDDERS
1. SECURING DOCUMENTS
Bids must be submitted to the City on the Bid Forms, which are a part of the Bid Package for the Project. Bid and Contract Documents may be obta ined from the City as specified in the Notice Inviting Bids. Prospective bidd ers are encouraged to telephone in advance to determine the availability of Contract Documents. Any charge for the Contract Documents is stated in the Notice Inviting Bids.
The City may also make the Contract Documents available for review at one or more plan rooms, as indicated in the Notice Inviting Bids. Please Note: Prospective Bidders who choose to review the Contract Documents at a plan room must create an account with OpenGov Procurement to obtain the required Contract Documents if they decide to submit a bid for the Project.
Addenda, if any, issued during the bid period will be posted on OpenGov Procurement. Failure to acknowledge addenda may make a bid nonresponsive and not eligible for award of the contract.
2. EXAMINATION OF SITE AND CONTRACT DOCUMENTS
At its own expense and prior to submitting its Bid, each Bidder shall visit the site of the proposed work and fully acquaint itself with the conditions relating to the construction and labor required so that the Bidder may fully understand the work , including but not limited to difficulties and restrictions attending the execution of the work under the contract. Each Bidder shall carefully examine the Drawings, and shall read the Spec ifications, Contract, and all other documents referenced herein. Each Bidder shall also dete rmine the local conditions which may in any way affect the performance of the work, including local tax structure, contractors’ licensing requirements, availability of required insurance, the prevailing wages and other relevant cost factors, shall familiarize itself with all federal, state and local laws, ordinances, rules, regulations and codes affecting the performance of the work , including the cost of permits and licenses required for the work, and shall make such surveys and investigations, including investigations of subsurface or latent physical conditions at the si te or where work is to be performed as may be required. Bidders are responsible for consulting the standards referenced in the Contract. The failure or omission of any Bidder to receiv e or examine any contract documents, forms, instruments, addenda, or other documents, or to visit the site and acquaint itself with conditions there existing shall in no way relieve any Bidder from any obligation with respect to its Bid or to the contract and no relief for error or omission will be given except as required under State law.
The submission of a Bid shall be taken as conclusive evidence of compliance with this Article.
Storm, surface, nuisance, or other waters may be encountered at various times during construction of the Project. Federal and Stat e laws require the City and its contractors to appropriately manage such waters pursuant to the requirements of California State Water Resources Control Board Order Number 20 09-0009-DWQ and any amendment or renewal thereof, the Federal Clean Water Act, and the Ca lifornia Porter Cologne Water Quality Control Act. By submitting a Bid, each Bidder acknowledges that it has investigated the risk arising from such waters, has prepared its Bid accordingly, and assumes any and all risks and liabilities arising therefrom.
38077.00180\29080232.10 C2
-5- 00 21 13 – INSTRUCTIONS TO BIDDERS
3. INTERPRETATION OF DRAWINGS AND DOCUMENTS
Prospective Bidders unclear as to the true meaning of any part of the Drawings, Specifications or other proposed contract documents may submit to the Engineer of the City a written request for interpretation. The prospective Bidder submitting the request is responsible for prompt delivery.
Interpretation of the Drawings, Specifications, or other proposed contract documents will be made only by a written addendum duly issued, and a copy of such addenda will be mailed or delivered to each prospective Bidder who has purchased a set of Drawings and Specifications. The City will not be responsible for any other explanation or interpretations of the proposed documents. If a Prospective Bidder becomes aware of any erro rs or omissions in any part of the Contract Documents, it is the obligation of the Prospective Bidder to promptly bring them to the attention of the City.
4. INSPECTION OF SITE; PRE-BID CONFERENCE
Each prospective bidder is responsible for fully acquainting itself with the conditions of the Project Site (which may include more than one site), as well as those relating to the construction and labor of the Project, to fully understand the facilities, difficulties, and restrictions which may impact the cost or effort required to complete the Project. To this end, a Pre-Bid Meeting and Site Walk will be held on the date(s) and time(s) indicated in the Notice Inviting Bids.
5. ADDENDA
The City reserves the right to revise the Cont ract Documents prior to the Bid opening date.
Revisions, if any, shall be made by written Addenda. All Addenda issued by the City shall be included in the Bid and made part of the Contract Documents. Pursuant to Public Contract Code Section 4104.5, if the City issues an Addendum which includes material changes to the Project less than 72 hours prior to the deadline for su bmission of Bids, the City will extend the deadline for submission of Bids. The City may determine, in its sole discretion, whether an Addendum warrants postponement of the Bid submission da te. Each prospective Bidder shall provide the City a name, address, email address, and facsim ile number to which Addenda may be sent, as well as a telephone number by which the City can contact the Bidder. Any Addenda will be posted on www.printscharlesrepro.com. Please Note: Bidders are responsible for ensuring that they have received any and all Addenda. To this end, each Bidder should contact Howard Salamanca – Associate Civil Engineer, at Milpitas City Hall, 455 E. Calaveras Blvd., Milpitas, CA 95035 or (408) 586-3347 to verify that it has received all Addenda issued, if any, prior to the Bid opening.
The Bidder shall indicate the Addenda received prior to bidding in the space provided in the Bid Form. Failure to indicate all Addenda may be sufficient cause for rejecting the Bid.
6. ALTERNATE BIDS
If alternate bid items are called for in the Contract Documents, the time required for completion of the alternate bid items has already been factored into the Contract duration and no additional Contract time will be awarded for any of the alternate bid items. The City may elect to include one or more of the alternate bid items, or to otherwise remove certain work from the Project scope of work. Accordingly, each bidder must ensure that each bid item contains a proportionate share of profit, overhead, and other costs or expenses which will be incurred by the bidder.
38077.00180\29080232.10 C2
-6- 00 21 13 – INSTRUCTIONS TO BIDDERS
7. COMPLETION OF BID FORMS
Bids shall only be prepared using copies of th e Bid Forms which are included in the Contract Documents. The use of substitute Bid Forms ot her than clear and correct photocopies of those provided by the City will not be permitted. Bids shall be executed by an authorized signatory as described in these Instructions to Bidders. In addition, Bidders shall fill in all blank spaces (including inserting “N/A” where applicable), and initial all interlineations, alterations, or erasures to the Bid Forms. Bidders shall neither delete, mo dify, nor supplement the printed matter on the Bid Forms nor make substitutions thereon. USE OF BLACK OR BLUE INK, INDELIBLE PENCIL, OR A TYPEWRITER IS REQUIRED. Deviations in the Bid Forms may result in the Bid being deemed non-responsive.
8. MODIFICATIONS OF BIDS
Each Bidder shall submit its Bid in strict conformity with the requirements of the Contract Documents. Unauthorized additions, modifications, revisions, conditions, limitations, exclusions, or provisions attached to a Bid may render it non-responsive and may cause its rejection. Bidders shall not delete, modify, or supplement the printed matter on the Bid Forms, or make substitutions thereon. Oral, telephonic, and electronic modifications will not be considered.
9. SUBCONTRACTORS
Bidder shall set forth the name, address of the place of business, and contractor license number of each subcontractor who will perform work, labor, furnish materials or render services to the bidder on said contract and each subcontractor licensed by the State of California who, under subcontract to bidder, specially fabricates and in stalls a portion of the Work described in the Drawings and Specifications in an amount in excess of one half of one percent (0.5%) of the total bid price, and shall indicate the portion of the work to be done by such subcontractor in accordance with Public Contract Code Section 4104.
The successful bidder will be required to self-perform at least 50% of the work.
10. LICENSING REQUIREMENTS
Pursuant to Business and Professions Code Section 7028.15 and Public Contract Code Section 3300, all bidders must possess proper licenses for performance of this Contract. Subcontractors must possess the appropriate licenses for each specialty subcontracted. Pursuant to Business and Professions Code Section 7028.5, the City shall consider any bid submitted by a contractor not currently licensed in accordance with state law and pursuant to the requirements found in the Contract Documents to be nonresponsive, and th e City shall reject the Bid. The City shall have the right to request, and Bidders shall provide within ten (10) calendar days, evidence satisfactory to the City of all valid license(s) currently held by that Bidder and each of the Bidder’s subcontractors, before awarding the Contract.
Notwithstanding anything contained herein, if the Work involves federal funds, the Contractor shall be properly licensed by the time the Contract is awarded, pursuant to the provisions of Public Contract Code section 20103.5.
38077.00180\29080232.10 C2
-7- 00 21 13 – INSTRUCTIONS TO BIDDERS
11. BID GUARANTEE (BOND)
Each bid shall be accompanied by: (a) cash; (b) a certified or cashier’s check made payable to City of Milpitas; or (c) a Bid Bond secured from a surety company satisfactory to the City Council, the amount of which shall not be less than ten percent (10%) of the Total Bid Price, made payable to City of Milpitas as bid security. Personal sureties and unregistered surety companies are unacceptable. The surety insurer shall be a California admitted surety insurer, as defined in Code of Civil Procedure Section 995.120. The bid security shall be provided as a guarantee that, within ten (10) working days after the City provides the successful bidder the Notice of Award, the successful bidder will enter into a contract and provide the necessary bonds and certificates of insurance. The bid security will be declared forfeited if the successful bidder fails to comply within said time, and the City may enter into a contract with the next lowest responsive responsible bidder, or may call for new bids. No interest shall be paid on funds deposited with the City. City will return the security accompanying the bids of all unsuccessful bidders no later than 60 calendar days after award of the contract.
12. IRAN CONTRACTING ACT OF 2010
In accordance with Public Contract Code Section 2200 et seq., the City requires that any person that submits a bid or proposal or otherwise propo ses to enter into or renew a contract with the City with respect to goods or services of one million dollars ($1,000,000) or more, certify at the time the bid is submitted or the contract is renewed, that the person is not identified on a list created pursuant to subdivision (b) of Public Contract Code Section 2203 as a person engaging in investment activities in Iran described in subdivision (a) of Public Contract Code Section 2202.5, or as a person described in subdivision (b) of Public Contract Code Section 2202.5, as applicable.
The form of such Iran Contracting Certificate is included with the bid package and must be signed and dated under penalty of perjury.
13. NONCOLLUSION DECLARATION
Bidders on all public works contracts are required to submit a declaration of noncollusion with their bid. This form is included with the bid package and must be signed and dated under penalty of perjury.
14. PUBLIC WORKS CONTRACTOR REGISTRATION CERTIFICATION
Pursuant to Labor Code sections 1725.5 and 1771.1, all contractors and subcontractors that wish to bid on, be listed in a bid proposal, or enter into a contract to perform public work must be registered with the Department of Industrial Relations. No bid will be accepted, nor any contract entered into, without proof of the contractor’s and subcontractors’ current registration with the Department of Industrial Relations to perform public work. If awarded a contract, the bidder and its subcontractors, of any tier, shall maintain active registration with the Department of Industrial Relations for the duration of the Project. To this end, Bidder shall sign and submit with its Bid the Public Works Contractor Registration Certificatio n on the form provided, attesting to the facts contained therein. Failure to submit this form may render the bid non-responsive. In addition, each Bidder shall provide the registration number for each listed subcontractor in the space provided in the Designation of Subcontractors form.
38077.00180\29080232.10 C2
-8- 00 21 13 – INSTRUCTIONS TO BIDDERS
15. WAGE THEFT CERTIFICATION
Bidders on public works contracts are required to submit a certification disclosing whether the Bidder or any of its proposed subcontractors has been found by a final court order or administrative action of an investigatory government agency to have violated federal, state or local wage and hour laws, including but not limit ed to the federal Fair Labor Standards Act, the California Labor Code and the Milpitas Minimum Wage Ordinance, within the past five (5) years from the bid submission deadline.
16. BIDDER INFORMATION AND EXPERIENCE FORM
Each Bidder shall complete the questionnaire provided herein and shall submit the questionnaire along with its Bid. Failure to provide all information requested within the questionnaire along with the Bid may cause the bid to be rejected as non-responsive. The City reserves the right to reject any Bid if an investigation of the information su bmitted does not satisfy the Engineer that the Bidder is qualified to properly carry out the terms of the contract.
17. WORKERS' COMPENSATION CERTIFICATION
In accordance with the provisions of Labor Code Section 3700, Contractor shall secure the payment of compensation to its employees. Cont ractor shall sign and file with the City the following certificate prior to performing the work under this Contract:
I am aware of the provisions of Section 3700 of the Labor Code, which require every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the work of this contract.
The form of such Workers' Compensation Certificate is included as part of this document.
18. SIGNING OF BIDS
All Bids submitted shall be executed by the Bidder or its authorized representative. Bidders may be asked to provide evidence in the form of an authenticated resolution of its Board of Directors or a Power of Attorney evidencing the capacity of the person signing the Bid to bind the Bidder to each Bid and to any Contract arising therefrom.
If a Bidder is a joint venture or partnership, it may be asked to submit an authenticated Power of Attorney executed by each joint venturer or pa rtner appointing and desi gnating one of the joint venturers or partners as a management sponsor to execute the Bid on behalf of Bidder. Only that joint venturer or partner shall execute the Bid. The Power of Attorney shall also: (1) authorize that particular joint venturer or partner to act for and bind Bidder in all matters relating to the Bid; and (2) provide that each venturer or partner shall be jointly and severally liable for any and all of the duties and obligations of Bidder assumed under the Bid and under any Contract arising therefrom.
The Bid shall be executed by the designated joint venturer or partner on behalf of the joint venture or partnership in its legal name.
19. SUBMISSION OF SEALED BIDS
Once the Bid and supporting do cuments have been completed and signed as set forth herein, they shall be placed, along with the Bid Guarant ee and other required materials, in a sealed
38077.00180\29080232.10 C2
-9- 00 21 13 – INSTRUCTIONS TO BIDDERS
envelope, addressed and delivered or mailed, postage prepaid, to the City Clerk before the time and day set for the receipt of bids. The envelope shall bear the title of the work and the name of the bidder. No oral or telephonic bids will be considered. No forms transmitted via the internet, e- mail, facsimile, or any other electronic means will be considered unless specifically authorized by the City as provided herein. Bids received after th e time and day set for the receipt of bids shall be returned to the bidder unop ened. The envelope shall also co ntain the following in the lower left-hand corner thereof:
Bid of _________________ (Bidder’s Name)_______________________________ for the CURTIS AVE. RECYCLED WATER LINE REPAIR - EXPLORATORY WORK Only where expressly permitted in the Notice Inviting Bids may bidders submit their bids via electronic transmission pursua nt to Public Contract Code sections 1600 and 1601. Any acceptable method(s) of electronic transmission shall be stated in the Notice Inviting Bids. City may reject any bid not strictly complying with City’s designated methods for delivery.
20. OPENING OF BIDS
At the time and place set for the opening and read ing of bids, or any time thereafter, each and every bid received prior to the time and day set for the receipt of bids will be publicly opened and read. The City will leave unopened any Bid received after the specified date and time, and any such unopened Bid will be returned to the bidder. It is the bidder’s sole responsibility to ensure that its Bid is received as specified. Bids may be submitted earlier than the date(s) and time(s) indicated.
The public reading of each bid will include the following information:
A. The name and business lo cation of the bidder.
B. The nature and amount of the bi d security furnished by bidder.
C. The bid amount.
Bidders or their representatives and other interested persons may be present at the opening of the bids. The City may, in its sole discretion, elect to postpone the opening of the submitted Bids.
The City reserves the right to reject any or all Bids and to waive any informality or irregularity in any Bid.
21. WITHDRAWAL OF BID
Any bid may be withdrawn either personally or by written request, incurring no penalty, at any time prior to the scheduled closing time for rece ipt of bids. Requests to withdraw bids shall be worded so as not to reveal the amount of the or iginal bid. Withdrawn bids may be resubmitted until the time and day set for the receipt of bids, provided that resubmitted bids are in conformance with the instructions herein.
Bids may be withdrawn after bid opening only by providing written notice to the City within five (5) working days of the bid opening and in compli ance with Public Contract Code Section 5100 et seq., or as otherwise may be allowed with the consent of the City.
38077.00180\29080232.10 C2
-10- 00 21 13 – INSTRUCTIONS TO BIDDERS
22. BIDDERS INTERESTED IN MORE THAN ONE BID
No Bidder shall be allowed to make, file, or be interested in more than one bid for the same work unless alternate bids are specifically called for. A person, firm, or corporation that has submitted a sub-proposal to a Bidder, or that has quoted pr ices of materials to a Bidder, is not thereby disqualified from submitting a sub-proposal or quot ing prices to other bidders. No person, firm, corporation, or other entity may submit a sub-proposal to a Bidder, or quote prices of materials to a Bidder, when also submitting a prime Bid on the same Project.
23. SUBSTITUTION OF SECURITY
The Contract Documents call for monthly progress payments based upon the percentage of the Work completed. The City will retain a percentage of each progress payment as provided by the Contract Documents. At the request and expense of the successful Bidder, the City will substitute securities for the amount so retained in accordance with Public Contract Code Section 22300.
24. PREVAILING WAGES
The City has obtained from the Director of the Department of Industrial Relations the general prevailing rate of per diem wages in the locality in which this work is to be performed for each craft or type of worker needed to execute the Contract. These rates are available at the City or may be obtained online at http://www.dir.ca.gov. Bidders are advised that a copy of these rates must be posted by the successful Bidder at the job site(s).
25. DEBARMENT OF CONTRACTORS AND SUBCONTRACTORS
In accordance with the provisions of the Labor Code, contractors or subcontractors may not perform work on a public works project with a subcontractor who is ineligible to perform work on a public project pursuant to Labor Code Sections 1777.1 or 1777.7. Any contract on a public works project entered into between a contractor and a debarred subcontractor is void as a matter of law. A debarred subcontractor may not receiv e any public money for performing work as a subcontractor on a public works contract. An y public money that is paid to a debarred subcontractor by the Contractor for the Project shall be returned to the City. The Contractor shall be responsible for the payment of wages to wo rkers of a debarred subcontractor who has been allowed to work on the Project.
26. INSURANCE REQUIREMENTS
Prior to commencing work, the successful bidder shall purchase and maintain insurance as set forth in the General Conditions.
27. PERFORMANCE BOND AND PAYMENT BOND REQUIREMENTS
The successful bidder will be required to furnish a Labor and Material Payment Bond and a Faithful Performance Bond each in an amount equal to one hundred percent (100%) of the contract price. Each bond shall be secured from a surety company that meets all State of California bonding requirements, as defined in California Code of Civil Procedure Section 995.120, and is admitted by the State of Californ ia. Each bond shall be accompanied, upon the request of the City, with all documents required by California Code of Civil Procedure Section 995.660 to the extent required by law. All bonding and insurance requirements shall be completed
38077.00180\29080232.10 C2
-11- 00 21 13 – INSTRUCTIONS TO BIDDERS
and submitted to City within ten (10) working days from the date the City provides the successful bidder with the Notice of Award.
28. SALES AND OTHER APPLICABLE TAXES, PERMITS, LICENSES AND FEES Contractor and its subcontractors performing work under this Contract will be required to pay California sales tax and other applicable taxes, and to pay for permits, licenses, and fees required by the agencies with authority in the jurisdiction in which the Work will be located, unless otherwise expressly provided by the Contract Documents.
29. FILING OF BID PROTESTS
Consistent with Section I-2-3.19 of the Milpitas Municipal Code, Bidders may file a “protest” of a Bid with the City of Milpit as Purchasing Agent. In order for a Bidder’s protest to be considered valid, the protest must:
A. Be filed in writing no later than seven (7) calendar days after the posting of the intent to award;
B. Clearly identify the specific irregularity or accusation; C. Specify in detail the grounds for prot est and the facts supporting the protest; D. Include all relevant, supporting documentation with the protest at time of filing; E. Set forth the proposed remedy requested.
If the protest does not comply with each of these requirements, the City may reject the protest without further review.
If the protest is timely and complies with the above requirements, the Purchasing Agent shall review the protest, any response from the challenged Bidder(s), and all other relevant information.
The Purchasing Agent will provide a written respon se to the protestor. The Purchasing Agent's decision on a bid protest for a procurement in an amount of no more than Fifty Thousand Dollars ($50,000) shall be final. For pr ocurements having a value of more than Fifty Thousand Dollars ($50,000), the City Council will consider the protest and take action thereupon, which action shall be final.
The procedure and time limits set forth in this Article are mandatory and are the sole and exclusive remedy in the event of a Bid protest. Failure to comply with these procedures shall constitute a failure to exhaust administrative remedies and a waiver of any right to further pursue the Bid protest, including filing a Government Code Claim or legal proceedings.
30. BASIS OF AWARD; BALANCED BID
The City shall award the Contract to the lowest re sponsible Bidder submitting a responsive Bid.
The lowest Bid will be determined on the basis of the Total Base Bid alone unless otherwise set forth in the Notice Inviting Bids.
The City may reject any Bid which, in its opinion, when compared to other Bids received or to the City’s internal estimates, does not accurately reflect the cost to perform the Work. The City may