Milpitas City Council
June 16, 2026

38077.00180\29175422.11 C2
18 SIGNATURE PAGE FOR DESIGN SERVICES AGREEMENT

BETWEEN THE CITY OF MILPITAS

AND TJKM TRANSPORTATION CONSULTANTS
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above.

CITY OF MILPITAS
Approved By:

Willie A. Hopkins, Jr., City Manager

Date
Approved As To Form:

Christian Curtis, City Attorney
Approved:

Luz Cofresí-Howe
Finance Director/Risk manager
Approved As To Content:

Christian Di Renzo, Public Works Director
TJKM Transportation Consultants

Signature
Nayan Amin
Name
President
Title

Date

38077.00180\29175422.11 C2
1 EXHIBIT “A”
DESIGNER’S SCOPE OF SERVICES
The Design consultant is to complete the design of systemic improvements at the City’s seventy-two (72) signalized intersections and safety improvements at three (3) unsignalized intersections and roadway segment with a history of fatal and severe crashes. Work includes, but not limited to, signal modifications at the City’s 72 intersections by installing signal head reflective backplates and Leading Pedestrian Interval (LPI); installation of signage, daylighting, beacons, etc. at the 3 unsignalized intersections; and safety improvements of a horizontal curve along McCarty Blvd. Additionally, the design consultant to complete the professional planning and design for NEPA clearance, assistance with the Caltrans E-76 process, and coordination with the City staff to ensure that all of the federal requirements and City’s goals are met.

Retroreflective backplates were identified as an effective countermeasure to address these crash types citywide. Additionally, with 42% of pedestrian and cyclist crashes occurring at signalized intersections, implementing a Leading Pedestrian Interval (LPI) was identified as an effective way to improve pedestrian safety systemically. The implementation of retro-reflective backplates and LPI Citywide forms the core of the Project, and it is estimated to account for two-thirds of the total project cost. These improvements will be made at 72 of the City owned and maintained traffic signals as shown in Figure 1 and Table 1.

Installing improved signage that are more visible and retroreflective at unsignalized/stop-controlled intersections was identified as a countermeasure in the Safety Plan to prevent broadsides and rear-ends and improve pedestrian and cyclist safety. These intersections are recommended as a top priority because they have each experienced fatal or severe injury crashes in the last five years. The following are additional information of each intersection.
• Kennedy Drive and N. Park Victoria Drive intersection: Flashing beacons are also recommended to ensure the safety of students traveling to the nearby William Burnett Elementary School.
• N. Temple Drive and Golden Hills Drive intersection: Daylighting per AB 413 and signage improvements are being recommended as vehicles are parking at the curb returns that obstruct the vision triangle, increasing the risk to pedestrians and broadside crashes. Restricting parking should improve pedestrian safety and help prevent crashes at this intersection. • Murphy Ranch Road and McCarthy Boulevard intersection: Signage improvements are recommended to enhance driver compliance at the two-way stop-controlled intersection.

The horizontal curve along the north end of McCarthy Blvd. near the City limits was identified as a priority location in the Safety Plan due to the high prevalence of lane departure-hit objects and the severe nature of the crashes along the curve. To address these issues, several countermeasures have been proposed, including, but not limited to, lighting improvements, high-friction surface treatments, chevron signs object markers, larger retroreflective curve warning signs, and edge line rumble strips. These improvements are anticipated to reduce the number of crashes that occur.

38077.00180\29175422.11 C2
2 Figure 1: Proposed Improvement Locations
Table 1: List of Project Intersections
Intersection
Number
Intersection
Control Intersection Name
1 Signalized McCarthy Blvd @ Sycamore Dr
2 Signalized McCarthy Blvd @ Barber Ln
3 Signalized McCarthy Blvd @ Cottonwood Dr
4 Signalized Tasman Dr @ McCarthy Blvd
5 Signalized McCarthy Blvd @ Alder Dr
6 Signalized Tasman Dr @ Alder Dr
7 Signalized Barber Ln @ Alder Dr
8 Signalized Great Mall Pkwy @ Abel St

38077.00180\29175422.11 C2
3 9 Signalized S. Main St @ Mihalakis St
10 Signalized Main St @ Cedar Wy
11 Signalized McCandless Dr @ Delong Ln
12 Signalized Great Mall Pkwy @ Centre Pointe Dr
13 Signalized Abel St @ Main St
14 Signalized Main St @ Great Mall
15 Signalized Abel St @ Capitol Ave
16 Signalized Great Mall Pkwy @ McCandless Dr
17 Signalized Great Mall Dr @ S Main St
18 Signalized Main St @ Curtis Dr
19 Signalized Milpitas Blvd @ Yosemite Dr
20 Signalized Bellew Dr @ Cypress Dr
21 Signalized McCarthy Blvd @ Bellew Dr
22 Signalized McCarthy Blvd @ Sandisk
23 Signalized Barber Ln @ Bellew Dr
24 Signalized Barber Ln @ Cisco Driveway
25 Signalized Abel St @ Serra Way
26 Signalized Ranch Dr @ Apple Bees
27 Signalized McCarthy Blvd @ N Ranch Dr
28 Signalized Abel St @ Alvarez Ct
29 Signalized Abel St @ Curtis Ave
30 Signalized Abel St @ Corning Ave
31 Signalized Main St @ Serra Wy
32 Signalized Main St @ Carlo St
33 Signalized S Abel St @ Junipero Dr
34 Signalized Milpitas Blvd @ Kiss&Ride
35 Signalized Capitol Ave @ Milpitas Blvd
36 Signalized Milpitas Blvd @ Garage Parking
37 Signalized Milpitas Blvd @ Garden St
38 Signalized Milpitas Blvd @ Gibraltar

38077.00180\29175422.11 C2
4 39 Signalized Milpitas Blvd @ Ames Ave
40 Signalized Milpitas Blvd @ Turquoise St
41 Signalized Yosemite Ave @ Sinclair Frontage Rd
42 Signalized Yosemite Ave @ Dempsey Rd
43 Signalized Park Victoria @ Yosemite Dr
44 Signalized Milpitas Blvd @ Los Coches St
45 Signalized Park Victoria @ Yellowstone Ave
46 Signalized Park Victoria @ Big Basin
47 Signalized Yellowstone Dr @ Westridge Dr
48 Signalized McCarthy Blvd @ N Ranch Dr
49 Signalized Abel St @ Weller Ln
50 Signalized Abel St @ Marylinn Dr
51 Signalized Main St @ Weller St
52 Signalized Abel St @ Redwood
53 Signalized Milpitas Blvd @ Abel St/Jacklin Rd
54 Signalized Milpitas Blvd @ Midwick Dr
55 Signalized Jacklin Rd @ Arizona Ave
56 Signalized McCarthy Blvd @ Sprig
57 Signalized Dixon Landing Rd @ Milmont Dr
58 Signalized Milpitas Blvd @ Washington Dr
59 Signalized Milpitas Blvd @ Sunnyhills Ct
60 Signalized Milpitas Blvd @ Dixon Landing Rd
61 Signalized Milpitas Blvd @ Beresford Ct
62 Signalized Milpitas Blvd @ Escuela Pkwy
63 Signalized Jacklin Rd @ Escuela Pkwy
64 Signalized Jacklin Rd @ Hillview Dr
65 Signalized Calaveras Blvd @ Park Victoria Dr
66 Signalized Jacklin Rd @ Park Victoria Dr
67 Signalized Calaveras Blvd @ Gadsden Dr
68 Signalized Calaveras Blvd @ Temple Dr

38077.00180\29175422.11 C2
5 69 Signalized California Circle @ Ped Xing
70 Signalized Jacklin Rd @ Hetch Hetchy Ped Xing
71 Signalized Park Victoria @ Edsel Dr
72 Signalized Capitol @ Montague Station/Transit Ent
73 Unsignalized McCarthy Blvd and Murphy Ranch Rd
74 Unsignalized Kennedy Dr and N Park Victoria
75 Unsignalized N Temple Dr and Golden Hills Dr
76 Segment McCarthy Curve, 500 feet south of City Boundary between Milpitas and Fremont
TASK A: PROJECT ADMINISTRATION AND COORDINATION
TJKM will provide overall project management throughout the design and environmental phases of the project to ensure services are delivered on schedule, within budget, and in full compliance with City requirements, Caltrans LAPM requirements, and federal HSIP guidelines. This task includes establishing the overall project framework through a kickoff meeting, maintaining regular coordination with City staff, and managing all technical disciplines and subconsultant activities throughout the duration of the project.

TJKM will oversee project progress, monitor schedule and budget performance, coordinate deliverables, and implement internal quality management procedures to maintain consistency and timely delivery across all project locations. Our project management approach emphasizes proactive communication, accountability, and early identification of potential schedule or coordination issues to support efficient project delivery.

To facilitate project coordination and maintain transparency throughout the project, TJKM will develop and maintain a live, trackable project management document using a collaborative cloud-based platform.

This tool will be shared with City staff and used as a centralized resource to support the kickoff meeting, regular progress meetings, and ongoing project coordination. The document will allow for real-time updates, tracking, and collaboration among the project team and City staff.

Consistent with TJKM’s approach to similar multi-location projects, the project management tracker will be used to monitor key project information, including:
• Project schedule and milestone tracking
• Action items and pending tasks
• Subconsultant coordination and deliverables
• Critical path activities
• Review of comments and responses
• Upcoming coordination items and decisions

38077.00180\29175422.11 C2
6 The document will be updated on a bi-weekly basis, or as agreed upon with the City, in advance of each project progress meeting. Each meeting update will include a structured agenda, discussion topics, schedule updates, and clearly defined action items with assigned responsibilities and target completion dates. This approach supports effective communication, enhances accountability among all team members, and ensures continuous tracking of outstanding items throughout the duration of the project.

Deliverables:
• Project schedule
• Meeting agendas and minutes
• Monthly progress reports and invoices
TASK B: DATA COLLECTION, FIELD REVIEW, AND EXISTING CONDITIONS

ASSESSMENT
Task B.1: Existing Conditions Assessment
TJKM will perform a comprehensive existing conditions assessment and develop a detailed signal inventory for all project locations identified in Table 1 of the RFP. This effort will establish a reliable baseline of existing infrastructure conditions to support design development, environmental documentation, cost estimating, and future system improvements.

TJKM will collect and review all available background information provided by the city, including as-built and record drawings, GIS configuration data, signal timing sheets, existing inventory records, and other relevant documentation for each project location. Because the accuracy and completeness of existing records may vary, TJKM will verify critical infrastructure information through detailed field investigations.

Field investigations will be conducted at all project locations to document existing conditions and compile a comprehensive inventory for each signalized intersection. Data collection will include, but not be limited to:
• Signal cabinet manufacturer and model
• Signal controller type and all cabinet equipment, including manufacturer and model • Communications equipment (MMU/CMU, switches, communication devices, etc.), including manufacturer and model
• Traffic signal heads, including size (8-inch or 12-inch), manufacturer, and presence of retroreflective backplates
• Pedestrian signal heads, including countdown and non-countdown displays • Pushbutton assemblies, including manufacturer, model, and APS capabilities • Vehicle detection systems, including type and manufacturer/model (e.g., inductive loop, video detection, hybrid systems)
• Battery Backup Systems (BBS), including presence, manufacturer, model and operational condition
• Emergency Vehicle Preemption (EVP) systems, including presence, manufacturer, model and operational configuration

38077.00180\29175422.11 C2
7 In addition to the inventory effort, TJKM will document the condition, approximate age, and operational status of existing signal equipment and associated infrastructure, including signal poles, mast arms, signal heads, cabinets, conduits, pull boxes, and appurtenances. Field observations will identify visible damage, deterioration, fading, corrosion, or other deficiencies resulting from weather exposure, age, or roadway incidents.

Field data collection will be completed using the city-provided inventory checklist and standardized documentation procedures to ensure consistency across all project locations. Site photographs will also be collected to supplement the inventory database and support future design development, QA/QC review, and coordination with City staff.

This detailed field verification effort is intended to minimize design assumptions, identify infrastructure compatibility issues early, improve estimate accuracy, and reduce the potential for redesign, utility conflicts, and construction change orders during implementation.

Task B.2: GIS Database Update
TJKM will coordinate closely with City staff to ensure consistency with the City’s existing GIS data standards, asset management practices, and database structure requirements. Using verified field data collected during the existing conditions assessment, TJKM will update and enhance the City’s GIS-based traffic signal inventory database to reflect current infrastructure conditions throughout the project locations.

The updated GIS database will include detailed signal infrastructure information collected during field investigations, including signal equipment attributes, hardware types, communications systems, detection systems, pedestrian facilities, battery backup systems, and emergency vehicle preemption equipment. Site photographs collected during the Existing Conditions Assessment will also be integrated into the GIS database. The database will be structured to support efficient querying, asset tracking, maintenance planning, and future system upgrades.

TJKM’s goal is to provide the city with a comprehensive, user-friendly GIS inventory tool that supports both current project needs and long-term operational management of the City’s traffic signal infrastructure.

The upgraded database will improve accessibility to system information, enhance coordination between departments, and provide maintenance staff with a reliable resource for asset tracking, equipment replacement planning, and future capital improvement programming. The GIS database we propose to develop will provide the City with a long-term asset management tool supporting future maintenance planning, capital improvement programming, emergency response coordination, and lifecycle infrastructure management.

TJKM has successfully developed and implemented similar GIS-based traffic signal inventory databases for the Cities of Concord and Manteca, demonstrating our experience delivering practical, scalable, and maintenance-focused asset management solutions for local agencies.

Deliverables:
• Completed signal inventory database utilizing the city-provided checklist format • Updated GIS inventory dataset reflecting verified field conditions • Supporting field documentation, including site photographs and condition assessments

38077.00180\29175422.11 C2
8 TASK C: ENVIRONMENTAL CLEARANCE (NEPA), CULTURAL RESOURCES, AND

PERMITTING
The TJKM team will lead the environmental clearance process in accordance with NEPA and all applicable federal, state, and Caltrans Local Assistance requirements. Environmental coordination activities will begin early in the project and advance concurrently with preliminary design to support timely approvals, minimize schedule risks, and avoid delays to PS&E delivery. TJKM will coordinate closely with Caltrans Local Assistance staff to confirm the appropriate level of environmental documentation required for the project and prepare all necessary technical studies and supporting documentation needed to obtain environmental clearance. Our team understands the importance of integrating environmental considerations into the design process early to support efficient project advancement and reduce the potential for redesign or permitting delays. In addition to overall NEPA compliance, the TJKM team will prepare the required cultural resources documentation in accordance with Section 106 of the National Historic Preservation Act, the applicable Caltrans Programmatic Agreement, and all coordination requirements involving the State Historic Preservation Officer (SHPO) and Advisory Council on Historic Preservation (ACHP), as applicable. Based on the anticipated project requirements, this effort is expected to include preparation of the Area of Potential Effects (APE) mapping, Archaeological Survey Report (ASR), and Historic Property Survey Report (HPSR).

The TJKM team will also identify required regulatory permits and agency approvals associated with the proposed improvements, prepare permit application packages, and support the City throughout the agency coordination and approval process. This effort may include coordination with Caltrans, utility agencies, and other permitting entities, as necessary, to support timely project delivery and maintain compliance with all applicable environmental and regulatory requirements. We will advance the environmental activities concurrently with preliminary engineering to minimize schedule impacts and support timely advancement into final design and construction authorization.

Deliverables:
• NEPA documentation
• APE map
• Archaeological Survey Report
• Historic Property Survey Report
• Environmental clearance approvals
• Permit applications
TASK D: PS&E DEVELOPMENT
TJKM’s PS&E development approach is heavily focused on constructability, implementation efficiency, utility coordination, and delivery of high-quality bid-ready documents that support successful project implementation while minimizing construction-related risks. Our team understands that traffic signal and roadway safety improvement projects involving existing infrastructure can encounter utility conflicts, undocumented field modifications, differing equipment configurations, underground utility constraints, and operational challenges that may impact construction if not identified early in the design process. To minimize these risks, TJKM will conduct detailed field verification efforts, coordinate closely with utility providers and City staff, and perform interdisciplinary coordination and constructability reviews at each

38077.00180\29175422.11 C2
9 design milestone to proactively identify potential conflicts and reduce contractor RFIs, change orders, redesign efforts, utility impacts, and construction delays.

TJKM’s design philosophy emphasizes preparation of coordinated, contractor-friendly construction documents that clearly communicate design intent, minimize ambiguity, and support efficient field implementation. Our approach emphasizes consistency, constructability, and long-term maintainability across all project locations while remaining flexible enough to address site-specific conditions and operational needs. Standardized design templates, inventory procedures, QA/QC protocols, and comment tracking systems will be utilized throughout project development to maintain consistency between plans, specifications, quantities, utility coordination requirements, and engineer’s estimates. Our team will also evaluate existing signal equipment compatibility, including McCain, Peek, and Econolite infrastructure, to develop practical and cost-effective implementation strategies for retroreflective backplates, APS improvements, LPIs, and related safety enhancements.

TJKM will prepare complete PS&E documents for the project in accordance with City standards, Caltrans requirements, and applicable federal-aid guidelines. This task will include preparation of design plans for all project locations, technical specifications, quantities, utility coordination documentation, and detailed construction cost estimates necessary to develop a complete bid-ready construction package. The PS&E documents will be developed through progressive submittals to allow for ongoing review and coordination with City staff, utility agencies, and project stakeholders throughout the design process. Each submittal phase will incorporate review comments and refinements to ensure the final construction documents are complete, coordinated, and constructible.

The final PS&E package will include all required plan sheets and supporting documentation, including traffic signal modifications, signing and striping plans, lighting improvements, beacon details, construction details, traffic control elements, utility coordination considerations, and other related design components required for successful project implementation. TJKM will maintain close coordination between all disciplines throughout design development to ensure consistency between plans, specifications, utility requirements, quantities, and cost estimates while supporting efficient project delivery and maintaining compliance with all applicable City, State, and Federal requirements.

Task D.1: Preliminary Design and Estimate
TJKM proposes conducting two initial project design meetings with the city to review and refine the project scope, budget, and schedule. The first meeting will occur at the outset of the project to establish a clear understanding of the City’s goals, funding constraints, and schedule requirements.

The second meeting will be conducted after TJKM completes a detailed field inventory and evaluation of existing conditions. This effort will include identification of existing signal infrastructure; verification of signal head make/model and countdown pedestrian signal installations; evaluation of locations where LPIs may be appropriate; assessment of unsignalized intersection improvements; and review of proposed roadway segment improvements along McCarthy Boulevard/McCarthy Ranch Road. TJKM will prepare Preliminary Design Plans and Opinion of Probable Construction Costs for discussion with the city.

This meeting will provide an opportunity for a focused and productive discussion regarding existing conditions, proposed improvements, and associated cost implications at the signalized intersections,

38077.00180\29175422.11 C2
10 unsignalized intersections, and along the McCarthy Ranch Road corridor, while balancing project priorities against available grant funding allocations.

Following directions received during the second meeting, TJKM will proceed with preparation of the 50% PS&E package.

Task D.2: 50% PS&E
TJKM will develop the 50% PS&E package for all project locations. This phase will establish the overall design framework and confirm the proposed implementation strategy for the identified traffic safety improvements. Design development will include preparation of traffic signal, civil, signage, and striping plans for pedestrian accessibility improvements, and identification of key design elements, utility considerations, and site constraints.

The 50% design effort will incorporate the approved safety countermeasures identified during the preliminary engineering phase, including evaluation and placement of improvements such as LPIs, countdown pedestrian signal upgrades, high visibility crosswalks, HFST, signing and striping enhancements, and corridor safety improvements along McCarthy Boulevard/McCarthy Ranch Road.

TJKM will prepare detailed construction quantities and develop an Engineer’s Estimate based on the proposed improvements. In addition, TJKM will obtain the City’s standard boilerplate technical specifications and special provisions template and prepare draft project-specific technical specifications tailored to the proposed improvements.

The 50% PS&E package is intended to provide the City with sufficient detail to confirm design direction, review project scope and budget alignment, identify any remaining concerns or design refinements, and establish the basis for advancement into final design.

Task D.3: 90% PS&E
Following City review of the 50% PS&E package, TJKM will receive one consolidated set of review comments and participate in a comment review meeting with the City to discuss all outstanding issues, requested revisions, and project coordination items.

TJKM will advance the design to the 90% PS&E level by incorporating City and stakeholder comments and further refining all project elements. This phase will include additional design detailing and coordination to ensure consistency across all disciplines and project locations. Plan sheets will be updated to include finalized layouts, detailed construction notes, signing and striping plans, traffic signal modification details, ADA accessibility improvements, traffic control considerations, and other required design components.

The 90% PS&E package will include substantially complete construction quantities, coordinated project technical specifications, updated special provisions, and a revised Engineer’s Estimate. TJKM will also prepare a formal comment response matrix documenting all review comments received on the 50% submittal and identifying how each item was addressed within the updated design documents.

This submittal is intended to represent a near-final bid-ready package and provide the city an opportunity to verify that all project requirements, operational considerations, and funding constraints have been appropriately addressed prior to finalization.

38077.00180\29175422.11 C2
11 Task D.4: 100% PS&E (Final)
Following review of the 90% PS&E submittal, TJKM will participate in a final comment review meeting with the City to confirm resolutions of all outstanding issues and finalize the design documents. TJKM will then prepare the 100% final PS&E package incorporating all remaining comments, refinements, and final coordination items.

As part of the final submittal, TJKM will provide a final check-print plan set along with a detailed responseto-comments matrix identifying how all City comments were addressed. Following the City’s final review and confirmation of the documents, TJKM will provide signed and stamped final plans, complete technical specifications, final quantities, and a final engineer’s estimate suitable for bidding and construction.

Deliverables:
• Preliminary Plans and Estimates
• 50% PS&E package
• 90% PS&E package with comment-response matrix
• 100% Check Print PS&E and 100% final PS&E (signed and stamped, bid-ready) TASK E: QUALITY CONTROL (QC) AND QUALITY ASSURANCE (QA) TJKM will implement a comprehensive Quality Control (QC) and Quality Assurance (QA) program throughout all phases of project development to ensure that all deliverables are accurate, coordinated, complete, and constructible. Our QA/QC process is specifically designed to minimize errors, reduce review comments and revisions, maintain consistency between disciplines, and support delivery of high-quality bid-ready construction documents in accordance with City standards, Caltrans requirements, and applicable federal-aid guidelines. TJKM understands that successful delivery of federally funded transportation improvement projects requires disciplined quality management procedures, proactive coordination, and independent technical oversight throughout all phases of project development.

Independent QA/QC reviews will be conducted at each design milestone to verify consistency between plans, specifications, quantities, technical specifications, utility coordination requirements, and construction cost estimates. Reviews will include interdisciplinary coordination checks, constructability evaluations, field verification reviews, specification verification, quantity validation, and compliance review with applicable City standards, Caltrans standards, ADA requirements, CA MUTCD requirements, and federal-aid procedures. TJKM will perform field-based validation, as needed, to confirm design assumptions and proposed improvements are consistent with existing field conditions, operational requirements, and utility constraints. Independent senior-level QA/QC reviewers not directly involved in day-to-day design production will provide additional oversight to verify technical accuracy, interdisciplinary consistency, constructability, and compliance with City and federal-aid requirements. As part of this process, senior staff not directly involved in daily design preparation will perform independent reviews of key project deliverables to provide an added level of quality assurance and technical oversight throughout project development. Review comments, resolutions, and corrective actions will be documented and tracked through each design phase to ensure all issues are addressed prior to advancement to subsequent project milestones.

38077.00180\29175422.11 C2
12 TJKM’s QA/QC approach emphasizes proactive coordination, implementation efficiency, and constructability to help minimize contractor RFIs, change orders, redesign efforts, utility conflicts, and construction delays during implementation. Standardized QA/QC procedures, review checklists, comment tracking systems, and interdisciplinary coordination reviews will be utilized throughout project development to maintain consistency between PS&E and supporting documentation across all project locations. This disciplined review process will support delivery of a complete, coordinated, and high-quality final PS&E package that meets the City’s project objectives, schedule, budget, and long-term operational needs.

Deliverables:
• QA/QC review documentation and comment logs
• Interdisciplinary coordination review records
• Constructability review documentation
• Independent QA/QC check records
• Final QA/QC certification prior to final PS&E submittal TASK F: ADDITIONAL SERVICES (AS NEEDED)
TJKM is committed to serving as a long-term project partner and will remain available throughout bidding and construction to support efficient issue resolution, maintain project momentum, and help ensure successful implementation of the City’s safety improvement program. Our team understands that successful delivery of federally funded transportation improvement projects extends beyond completion of design documents and requires continued responsiveness, coordination, and technical support during bidding and construction activities to facilitate efficient implementation and minimize project delays.

TJKM will provide additional services, as requested by the City, to address unforeseen conditions, supplemental work items, or scope modifications that may arise during the project. Any additional services will be performed only upon written authorization from the City and in accordance with the additional services provisions identified in the Request for Proposals (RFP). Although not specifically included within the base scope of work, TJKM routinely provides bidding and construction support services for similar federally funded transportation improvement projects and is well-positioned to assist the city during these phases, if desired.

These services may include support during bidding, responding to contractor RFIs, preparation of addenda, review of contractor submittals, utility coordination support, review of proposed construction changes, and timely design clarifications throughout construction to ensure the design intent is accurately interpreted and properly implemented in the field. TJKM understands the importance of maintaining clear communication and timely responsiveness during construction to minimize delays, support efficient decision-making, and maintain project schedule and budget objectives.

TJKM is committed to supporting the city beyond completion of the design phase to help facilitate a smooth transition into construction and successful project delivery. Our team will remain available throughout construction to address design-related questions, assist with issue resolution, support coordination between the City, contractor, utility providers, and project stakeholders, and help resolve unforeseen field conditions in a timely and practical manner.

38077.00180\29175422.11 C2
13 If authorized, TJKM can also provide construction-phase engineering services including site observations, review of construction changes, preparation of record drawings, verification of field modifications, punchlist support, and project closeout assistance necessary to support efficient project implementation and successful completion of the proposed safety improvements.

Deliverables:
• Additional service work products, as authorized by the City.

38077.00180\29175422.11 C2
1 EXHIBIT “B”

FEE AND PHASING/PROJECT SCHEDULES

1. FEE SCHEDULE.

Designer will invoice City on a monthly cycle based on the following fee schedule. Designer will include with each invoice a detailed progress report that indicates the amount of budget spent on each phase and the total amount spent against the Total Compensation. Designer will inform City regarding any out-ofscope work being performed by Designer for which Designer intends to seek compensation from City.

Number Description Cost
A Project Administration and Coordination $16,933
B Data Collection, Field Review and Existing Conditions Assessment $56,465 C Environmental Clearance (NEPA), Cultural Resources and Permitting $29,129 D PS&E Development $178,223
E Quality Control/Quality Assurance (QC/QA) $16,933
F Additional Services (As Needed) $30,049
Total: $327,732

38077.00180\29175422.11 C2
2 2. PHASING/PROJECT SCHEDULE.

38077.00180\29175422.11
1 (BB&K: January 2015)
EXHIBIT “C”

COMPENSATION RATES AND REIMBURSABLE EXPENSES
The Designer has listed reimbursable expenses as Zero dollars on their proposed compensation. The Compensation rates are shown below:

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 Installation 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 volunteers 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 extent they apply to the scope of the subsubcontractor’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 policies, 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.

CITY OF MILPITAS

AGENDA REPORT
(AR)
Item Title: Consider Fee Waiver Request from Samuel Ayer High School Alumni Association for the Samuel Ayer High School Annual Alumni Picnic (Staff Contact: Renee Lorentzen, Recreation and Community Services Director, 408- 586-3409)
Category: Consent Calendar-Community Services and Sustainable Infrastructure Meeting Date: 6/16/2026
Recommendation: Approve Fee Waivers for Samuel Ayer High School Alumni Association in the amount of $1,500 for the Annual Samuel Ayer High School Annual Alumni Picnic at Murphy Park on September 19, 2026.

BACKGROUND:

On May 18, 2026, staff received one (1) Fee Waiver request from non-profit organization, Samuel Ayer High School Alumni Association, for City Council consideration.

ANALYSIS:

One Donation and Fee Waiver/Reduction Policy request application was received by the Recreation and Community Services Department from the Samuel Ayer High School Alumni Association.

Fee Waiver Requests
Samuel Ayer High School Alumni Association submitted the required application and documentation for their event:
- Facility Rental Application and Permit
- City Council Donation and Fee Waiver/Reduction Policy request - Non-profit status letter
Samuel Ayer High School Alumni Association is requesting that City Council waive eligible fees, open space rental fees and special event permit fees in the amount of $1,500 for their Samuel Ayer High School Annual Alumni Picnic at Murphy Park on September 19, 2026. Fees ineligible for waiver are the application fee, refundable rental security/damage deposits, and staff fees.

Milpitas City Council adopted an updated “City Council Donation and Fee Waiver/Reduction Policy” on June 21, 2022. Per the policy, eligible organizations can request City fees to be waived up to $1,500 or a donation amount up to $500 to be granted upon request. Eligible organizations are defined as “a non-profit organization as described by the Internal Revenue Section such as 501(c)(3) or an intergovernmental agency, nondiscriminatory, and non-political in nature.” Fee Waiver or Donation requests for events must provide a community benefit within the City of Milpitas proper. Applying organizations must provide proof of non-profit status from the federal Internal Revenue Service or the state Franchise Tax Board.

Samuel Ayer High School Alumni Association has provided a copy of their determination letter from the Internal Revenue Service stating they are a tax-exempt organization. The applicant meets the requirements as outlined in the Council adopted Donation and Fee Waiver/Reduction Policy.

POLICY ALTERNATIVE(S):

Alternative: Do not approve any one or combination of received fee waivers and donation applications as requested.

Pros: The City’s General Fund will not incur the costs of the fees waived.

Cons: Denial of the request may not allow the non-profit organization to hold their events.

Reason not recommended: The request is consistent with the Council approved Policy.

FISCAL IMPACT:
$25,000 was approved and included in the FY 2025-26 City budget for City Council’s Unallocated Community Promotions with a current balance of $18,760. If this request is approved by the City Council, then $17,260 would remain in that line item of the current year’s budget.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):

The action has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment and is not a project pursuant to Pub. Resources Code, § 21065 and Cal. Code Regs., tit. 14, § 15378. Even if a project, the action is exempt from further CEQA review pursuant to Cal. Code Regs., tit. 14, § 15061(b)(3) as it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.

ATTACHMENT(S):
(a) Samuel Ayer High School Alumni Association Application (b) Samuel Ayer High School Alumni Association Internal Revenue Service (IRS) non-profit letter

Letter 947 (Rev. 2-2020)
Catalog Number 35152P
Department of the Treasury
Internal Revenue Service
Tax Exempt and Government Entities
P.O. Box 2508
Cincinnati, OH 45201

SAMUEL AYER HIGH SCHOOL ALUMNI

ASSOCIATION

C/O JACOB P ABEYTIA
1975 OLD CALAVERAS RD
MILPITAS, CA 95035
Date:
04/19/2023
Employer ID number:

Person to contact:

Name: Customer Service
ID number: 31954
Telephone: 877-829-5500
Accounting period ending:

December 31
Public charity status:
509(a)(2)
Form 990 / 990-EZ / 990-N required:

Yes
Effective date of exemption:

December 9, 2022
Contribution deductibility:

Yes
Addendum applies:

No
DLN:
26053503003983
Dear Applicant:

We're pleased to tell you we determined you're exempt from federal income tax under Internal Revenue Code (IRC) Section 501(c)(3). Donors can deduct contributions they make to you under IRC Section 170. You're also qualified to receive tax deductible bequests, devises, transfers or gifts under Section 2055, 2106, or 2522. This letter could help resolve questions on your exempt status. Please keep it for your records.

Organizations exempt under IRC Section 501(c)(3) are further classified as either public charities or private foundations. We determined you're a public charity under the IRC Section listed at the top of this letter.

If we indicated at the top of this letter that you're required to file Form 990/990-EZ/990-N, our records show you're required to file an annual information return (Form 990 or Form 990-EZ) or electronic notice (Form 990-N, the e-Postcard). If you don't file a required return or notice for three consecutive years, your exempt status will be automatically revoked.

If we indicated at the top of this letter that an addendum applies, the enclosed addendum is an integral part of this letter.

For important information about your responsibilities as a tax-exempt organization, go to www.irs.gov/charities.

Enter "4221-PC" in the search bar to view Publication 4221-PC, Compliance Guide for 501(c)(3) Public Charities, which describes your recordkeeping, reporting, and disclosure requirements.

Sincerely,
Stephen A. Martin
Director, Exempt Organizations
Rulings and Agreements

CITY OF MILPITAS

AGENDA REPORT
(AR)
Item Title: Approve a Limited Waiver of Maximum Rent Limits Under the Milpitas Affordable Housing Ordinance for a 100% Affordable Housing Project Located at 1397 California Circle (Staff Contact: Hanson Hom, Senior Special Projects Associate, 408-586- 3222)
Category: Consent Calendar-Community Development
Meeting Date: 6/16/2026
Recommendation: Approve a limited waiver of the maximum rent limits set by the Milpitas Affordable Housing Ordinance to allow affordable units in a previously approved affordable housing development located at 1397 California Circle in Milpitas, California to be rented at an affordable housing cost not to exceed the annual rent limits set by the California Tax Credit Allocation Committee, inclusive of a reasonable utility allowance.

BACKGROUND:

The City has received a request from the Waterford Property Company, LLC (Waterford), the developer of the California Circle Family Apartments (“Project”), a 100 percent affordable residential housing development located at 1397 California Circle in Milpitas, to allow for rental of the affordable units contained therein at up to the maximum rent levels annually established by the California Tax Credit Allocation Committee (“CTCAC”) rather than the maximum rent levels generally set by the City’s Affordable Housing Ordinance (“AHO”), Milpitas Municipal Code (“MMC”) Sections XII-1-1.00 et seq.

The AHO generally prohibits the maximum rent charged to affordable units in rental projects from exceeding 30 percent of the maximum gross income level for very low- or low-income households annually established by the California Department of Housing and Community Development (“HCD”), as published in Title 25, Section 6932 of the California Code of Regulations.

The CTCAC, which is operated under the California State Treasurer’s Office, administers the federal and state Low-Income Housing Tax Credit (“LIHTC”) programs and, consistent with federal and state law, annually establishes and publishes the rent limits for affordable housing projects that receive low-income housing tax credits, tax-exempt private activity bonds or general obligation bonds, or local, state, or federal loans or grants that utilize rent and income limits determined by the CTCAC. The rent limits published by CTCAC for projects funded with tax credits can differ from the rent limits published by HCD for other projects because of, among other things, differences in regulatory standards including differences between federal and state law. As of January 1, 2026, pursuant to Assembly Bill 1529 (“AB 1529”), affordable housing projects like this that dedicate at least 80% of units to lower income households and receive federal and state tax credits must charge rents that do not exceed the maximum rent levels set by CTCAC. (See Cal. Health & Saf. Code, § 50053(b)(2).) Sometimes the rent limits set by CTCAC are higher than the maximum set by the AHO; sometimes they are lower. The Project, however, predicated its financial disclosures to lenders upon the limits set by CTCAC without factoring in the different limits set by the AHO. The CTCAC rent limits are comparable to the AHO limits, and Waterford requests that the City Council grant a waiver pursuant to MMC Section XII-1-4.03 to allow it to use the rent limits established by the CTCAC – rather than the AHO – so that they can close on the financing that is necessary for the Project to move forward.

The Project is part of a larger development that was originally approved by the City Council on November 7, 2023. The development consists of two components on a 6.7-acre site: 1) 131 units of market-rate for-sale

townhomes; and 2) 75 affordable rental units located in a multi-story apartment building. The City Council approved allowing all the required inclusionary units to be located in a separate apartment building pursuant to the exception provision for alternative compliance in Title XII, Chapter 1, Section 4, of the AHO.

After approval of the larger development, Waterford became the developer of the apartment building component and submitted planning applications to revise the Project to more favorably qualify for California Municipal Finance Authority (“CMFA”) and other financing, including tax credit financing. The Project continued to contain 75 rental units, but the site plan, building design, and bedroom mix were modified.

Additionally, the household affordability levels were significantly reduced to serve entirely very low and lowincome households. The planning applications to amend the original development were approved by the City Council on April 15, 2025. The Project as currently entitled is a 100% affordable project.1 On March 3, 2026, the City Council held a public hearing in accordance with the requirements of the Tax Equity and Fiscal Responsibility Act of 1982 (“TEFRA”) and, as the recognized local representative with jurisdiction over the area where the Project is located, authorized issuance of up to $25 million in tax-exempt revenue bonds by the CMFA to assist with financing the site acquisition and construction of the Project. The authorization did not impose any financial liability or obligation on the City.

ANALYSIS:

In situations such as this, Section XII-1-4.03 of the MMC permits the City Council, at its discretion, to waive, in whole or in part, the requirements of the AHO and approve alternative methods of compliance if the City Council finds such alternate methods of compliance meet the purposes of the AHO.

The stated purpose of the AHO (MMC XII-1-1.00) is to:
(a) Enhance the public welfare and assure that further housing development contributes to the attainment of the City's housing goals by increasing the production of residential units affordable by households of very low, low and moderate income.
(b) Assure that the limited remaining developable land in the City's planning area is utilized in a manner consistent with the City's housing policies and needs.

The City Council in approving this Project already found that the affordable units created therein met the purpose of the AHO and indeed resulted in the creation of more affordable units at a deeper level of affordability than would otherwise be required under the AHO. The requested waiver does not modify the number or quality of affordable units previously approved by the City Council but does potentially increase the maximum rent that could be charged to a qualifying household for some of the units because of the applied household size or other factors. For instance, the maximum rents for a three-bedroom unit are based on the area median income (AMI) for a 4-person household under the HCD standards versus a 4.5-person household under the CTCAC standards. However, some of the maximum rents actually decrease when applying the CTCAC standards, such as rents for the very low and low income one-bedroom units. The following chart compares the maximum rents (including utilities) allowed for the Project under the AHO, which are from the HCD 2026 rent limits table for Santa Clara County in Attachment A, with the CTCAC maximum rents (including utilities), which are from the CTCAC 2026 rent limits table for Santa Clara County in Attachment C. While the rents for some units would be higher and some units would be lower, the two systems of limiting rents for affordable units are ultimately comparable and produce a comparable overall result. 1 On May 6, 2026, Waterford submitted a request to allow one of the affordable units to be used as a manager’s unit that would not be rent-restricted. This request required an amendment to the conditions of approval for the Project pertaining to compliance with the AHO. On June 2, 2026, the City Council approved allowing an unrestricted unit to be occupied by an onsite manager. The Project continues to be considered a 100 percent affordable housing development with 15 very lowincome units and 49 low-income units.

California Circle Family Apartments
Comparison of HCD and CTCAC Maximum Rents for Santa Clara County (May 2026) Unit Type AMI Level Units HCD CTCAC Difference
Very Low Income (VLI) Units
1-bedroom 30% 6 1,233 1,156 -77
2-bedroom 30% 4 1,387 1,387 0
3- bedroom 30% 5 1,541 1,603 +62
Sub-total VLI Units 15
Low Income (LI) Units
60% 10 2,466 2,312 -154 1-bedroom 70% 14 2,877 2,697 -180 60% 7 2,773 2,775 +2 2-bedroom 70% 9 3,236 3,237 +1
60% 8 3,082 3,206 +124 3-bedroom 70% 11 3,596 3,740 +144 Sub-total LI Units 59
Manager’s Unit Unrestricted 1
TOTAL UNITS 75
Staff recommends the City Council approve a limited waiver to maximum rents under the AHO to allow the Project to charge up to the maximum rents allowed by CTCAC regulations rather than the maximum rents generally provided under the AHO. This waiver is only required for this Project because the CTCAC maximum rents for the three-bedroom units exceed the HCD maximum rents that are referenced in the AHO. Conversely, the rents for some of the units will be set at a deeper affordable level than required in the AHO. For instance, the rents for the very low-income units will be set at 30 percent AMI, whereas very low-income households are defined as households earning up to 50 percent AMI. Additionally, the affordability level for the current Project will continue to significantly exceed the affordability level of the prior apartment building that was approved in 2023. The original approval was for 44 moderate income units and 31 low-income units. Larger units will also be constructed as the prior project included studio apartments. Overall, the waiver to the maximum rents under the AHO will not compromise the much-needed affordable housing and community benefits that the Project will offer. This Project will generate an investment of up to $25 million in CMFA tax credit bonds and other construction and long-term financing, and does not require any financial contribution or matching funds from the City.

POLICY ALTERNATIVE(S):

Alternative 1: Do Not Grant the Requested Waiver to the AHO Pros: The affordable units would have to be rented at either the maximum affordable rents allowed under the AHO or the CTCAC, whichever is less, resulting in lower rental rate maximums particularly for the larger threebedroom units.

Cons: The Project would likely not be able to close on its presently agreed upon financing and would have to seek alternative financing, which may delay the creation of these affordable units or even result in the project not being constructed or financed.

Reason for Not Recommending: The applicant’s proposal represents a compromise to a comparable rent limit system that would not jeopardize the Project’s financing or schedule for the construction of affordable units and

would provide relief to the applicant as they try to address an interaction the applicant did not foresee with the recent enactment of AB 1529, which took effect on January 1, 2026 after the present version of the Project was entitled and in the midst of the applicant proceeding with TEFRA financing.

PROJECT SCHEDULE/KEY MILESTONES
The AHO contemplates that prior to the occupancy of affordable units, a regulatory agreement shall be recorded against the property imposing rent controls to ensure the continuing affordability of the affordable units for a period of not less than 55 years. If the waiver is approved by the City Council, Housing staff will include language effectively matching the CTCAC limit in the regulatory agreement for this Project.

FISCAL IMPACT:

No fiscal impact is expected by the approval of the limited waiver to maximum rents under the AHO. Approval of the waiver will allow the Project to receive CMFA tax-exempt bonds and other financing that do not require any financial obligation or contribution from the City. The cost to renters of the three-bedroom units is expected to rise marginally, but that increase in cost is expected to be offset by a decrease in cost to renters of the onebedroom units.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):

The action has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment and is not a project pursuant to Public Resources Code, § 21065 and Cal. Code Regs., tit. 14, § 15378. Even if a project, the action is exempt from further CEQA review pursuant to Cal. Code Regs., tit. 14, § 15061(b)(3) as it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. The action entails management and operation of an approved residential development, involving no changes or expansion of the approved use, and is exempt from CEQA pursuant to Cal. Code Regs., tit. 14, § 15301. The action is a fiscal or administrative activity of public government that does not involve any commitment to any new, specific project which may result in a potentially significant physical impact on the environment and is not a project pursuant to Cal. Code of Regs., tit. 14, § 15378. The environmental impacts of the underlying development were adequately studied and considered by the City, and the previously certified Final Environmental Impact Report (FEIR) (SCH#2022110251) remains a sufficient environmental analysis for the underlying development, including as found most recently by City Council Resolution No. 9403. No condition for further CEQA review of the underlying development has occurred (Cal. Pub. Resources Code, § 21166; Cal. Code Regs., tit. 14, §§ 15162-15164).

ATTACHMENT(S):
(a) 2026 Santa Clara County Income and Rent Limit (effective May 29, 2026) (b) 2026 California Tax Credit Allocation Committee Maximum Income Levels (excerpt including Santa Clara County, effective May 1, 2026)
(c) 2026 California Tax Credit Allocation Committee Maximum Multi-Family Tax Subsidy (MTSP) Rents (excerpt including Santa Clara County, effective May 1, 2026)

ATTACHMENT (a)

ATTACHMENT (b)

ATTACHMENT (c)

CITY OF MILPITAS

AGENDA REPORT
(AR)
Item Title: Authorize and Approve Travel Request for Councilmember Hon Lien to Los Angeles, CA for the AAPI Summit (Staff Contact: Willie Hopkins, City Manager, 408-586-3000)
Category: Consent Calendar-Leadership and Support Services Meeting Date: 6/16/2026
Recommendation: Authorize and approve the travel for Councilmember Hon Lien to Los Angeles, CA for the AAPI Summit to be held on July 17-19, 2026, for an estimated total amount of $1,800, budgeted under the Individual Elected Official allocation for Conferences/Meetings/Trainings.

BACKGROUND:

AAPI LEAD is hosting the 3rd annual AAPI Summit in Los Angeles, CA from July 17-19, 2026. The AAPI Summit (Summit) focuses on leadership development, civic engagement, public policy, economic opportunity, health equity, and issues affecting Asian American and Pacific Islander communities. It provides practical tools, best practices, and collaborative strategies to support effective governance, community engagement, and inclusive leadership at the local level. Included in this agenda packet is the preliminary agenda for the Summit as the AAPI Summit Draft Itinerary (Attachment A).

ANALYSIS:

The City of Milpitas Travel and Expense Policy require the City Council to approve travel for the elected officials and City Manager. City Council approval of this travel request will allow Councilmember Lien to gain additional knowledge from other California policymakers and bring it back to share with her colleagues.

Continued conference participation and attendance also ensure the Milpitas community is fully represented at the regional, state, and national levels.

POLICY ALTERNATIVE(S):

Not Applicable
FISCAL IMPACT:

The estimated individual expense for the Los Angeles, CA AAPI Summit, including the registration fee, lodging, meals, mileage, and incidental reimbursements, is $1,800 (actual costs may vary).

Fiscal year to date, $4,537.33 – inclusive of the estimated costs for this travel – has been expended from Councilmember Hon Lien's Individual Elected Official allocation of $10,000 for Conferences/Meetings/ Trainings.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):

The action is an organizational or administrative activity of the City government that will not result in direct or indirect physical changes in the environment and is not a project pursuant to Cal. Code of Regs., tit. 14, § 15378.

ATTACHMENT(S):
(a) AAPI Summit Draft Itinerary
(b) Council Conferences Budget Tracking

ATTACHMENT A

Friday, July 17
- 12 PM: Registration opens
- Afternoon: Networking and community service opportunities - 6 PM: Opening Session
- 7 PM: Opening Night Reception and Dinner
Saturday, July 18
- 8 AM to 8 PM: Full day of Summit programming, including plenary sessions, workshops, policy discussions, networking activities, breakfast, lunch, and a community dinner.

Sunday, July 19
- 8 AM to 1 PM: Morning and early afternoon programming, including a farewell lunch. - 2 PM: Summit concludes

CITY OF MILPITAS

AGENDA REPORT
(AR)
Item Title: Authorize the City Manager, or Designee, to Negotiate and Execute an Agreement Between the County of Santa Clara and the City of Milpitas for Emergency Medical Dispatch Services (Staff Contact: Jared Hernandez, Chief of Police, 408-586-2406)
Category: Consent Calendar-Public Safety
Meeting Date: 6/16/2026
Recommendation: Authorize the City Manager, or designee, to negotiate and execute a one-year agreement between the County of Santa Clara and the City of Milpitas for Emergency Medical Dispatch Services in an amount not to exceed $180,062.

BACKGROUND:

Emergency Medical Dispatch (EMD) is a specialized service that provides a systematic method for telecommunicators in Public Safety Answering Points (PSAPs) to determine the nature of medical aid calls, establish response priorities, allocate appropriate response resources, and provide callers with instructions and life-saving measures to help treat patients while first responders are en route. EMD telecommunicators receive specialized training and adhere to the quality assurance and accreditation standards set by the International Academies of Emergency Dispatch.

ANALYSIS:

Emergency Medical Dispatch services are essential to maintaining an effective and responsive Public Safety Answering Point. The City of Milpitas has contracted with the County of Santa Clara for EMD services since 2008. The current one-year agreement will expire on June 30, 2026; therefore, the Police Department recommends the proposed new one-year agreement, which consists of the same scope of services. The annual cost to the City of Milpitas for Fiscal Year 2026-2027 is estimated to be $171,488, subject to a possible variance of up to 5%, which results in an estimated maximum total cost of $180,062 for the duration of the agreement.

POLICY ALTERNATIVE(S):

Alternative 1: Do not authorize the City Manager to negotiate and execute a new agreement between the County of Santa Clara and the City of Milpitas for EMD services.

Pros: The City would not incur the annual cost for EMD services.

Cons: The City of Milpitas PSAP would not be able to effectively and efficiently respond to calls for medical aid, and callers would not receive vital medical instructions before first responders arrive.

Reason for Not Recommending: A systematic, coordinated response to calls for medical aid through an accredited EMD program is crucial to public safety.

PROJECT SCHEDULE/KEY MILESTONES
Following approval of this recommendation, staff will negotiate and execute an agreement with the County of Santa Clara by June 30, 2026, with a start date of July 1, 2026.

FISCAL IMPACT:

General funds in the amount of $180,062 are included in the Fiscal Year 2026-2027 Proposed Operating Budget adopted on June 9, 2026.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):

This item is not a project under the California Environmental Quality Act (CEQA) Guideline 15378(b).

ATTACHMENT(S):

None

CITY OF MILPITAS

AGENDA REPORT
(AR)
Item Title: Adopt the 2026-2027 Annual Action Plan and Approve the Community Development Block Grant Allocations for 2026-2027 (Staff Contact: Michelle Silva, Administrative Analyst II, 408-586-3244)
Category: Public Hearings-Community Development
Meeting Date: 6/16/2026
Recommendation: (1) Adopt the 2026-2027 Annual Action Plan with recommended allocation amounts; (2) Authorize the City Manager, or designee, to make any necessary changes to the 2026-2027 Annual Action Plan as needed to comply with CDBG submission guidelines and execute necessary forms and certifications for submission; and (3) Authorize the City Manager, or designee, to execute CDBG agreements with the approved subrecipients, and amend the CDBG agreements as needed to comply with CDBG guidelines.

BACKGROUND:

The U.S. Department of Housing and Urban Development (HUD) provides annual grants through the Community Development Block Grant (CDBG) program to local entitlement cities and counties. The CDBG program provides resources to the most vulnerable low- and moderate-income communities to address community development needs through investment in capital projects and public services. Information on eligible activities and CDBG minimum requirements are available in Attachment A. 2025 – 2029 Consolidated Plan
The Consolidated Plan serves as the City’s strategic outline of community development needs and priorities for the next three to five years. To align with the County of Santa Clara (County) Consolidated Plan, the City established a five-year Consolidated Plan for FY 2025-29 that was approved by the City Council on June 3, 2025. This Annual Action Plan will cover the second of five years under the current Consolidated Plan. 2026-2027 Annual Action Plan
For each year covered by the Consolidated Plan, HUD requires the City to prepare a one-year action plan that identifies programs, projects, and CDBG funding levels undertaken during any given year. This is known as the Annual Action Plan. The specific amount of funds Milpitas receives each fiscal year is determined by a formula based on population and other factors and finalized once the federal budget process concludes. The City FY 2026-27 entitlement amount is $538,212.

On October 31, 2025, the City released a Notice for Availability of Funding (NOFA) for its FY 2026-27 CDBG allocation. The application period was open from November 3 through December 5, 2025. The NOFA was distributed via email to current CDBG subrecipients, and individuals and organizations on the City CDBG interest email list. Additionally, the NOFA was published in the Milpitas Post on October 31, 2025. As stated in the NOFA, physical copies were made available at the City Hall Permit Center and Milpitas Library, and application guidelines were available online via the Office of Housing Community Development Block Grant Program webpage.

Applications were submitted via City Data Services’ online portal. A total of thirteen applications were received during the application period, with the grant requests totaling $814,048.

On January 20, 2026, the City Council held a public hearing to provide staff with feedback and/or direction on CDBG priority areas the City Council seeks to fund. The City Council feedback was incorporated into the final allocation recommendations for the public hearing on June 16, 2026.

On February 4, 2026, the Community Housing Commission (CHC) held a public meeting to review the applications deemed eligible, allow applicants to provide comments, and rank priority areas. Below is the ranking by the CHC of the public services’ priority areas.

1. Senior Services

2. Disability Services

3. Housing Services

4. Youth/Teen Services

5. Victims of Domestic Violence

6. Counseling Services
On April 7, 2026, the City Council held a public hearing to consider a substantial amendment to the 2022-25 Consolidated Plan and the 2025-2026 Annual Action Plan. The City Council reallocated the entire revolving loan fund balance of $368,359.55 as follows:

Revolving Loan Fund Balance $368,359.55
FY 2025-26 Program Administration (73,671.91)
FY 2026-27 Public Services (55,253.93)
Terrace Gardens (Fire Panel Replacement) (143,660.23)
Microenterprise Assistance Program (MEAP) (95,773.48)
Remaining Fund Balance to Reallocate $0.00
Of the thirteen applications received, two were funded through the April 7, 2026, reallocation. The remaining eleven applications are evaluated for funding in this Annual Action Plan. Additional funding for the Microenterprise Assistance Program (MEAP) is recommended. The $55,253.93 has been added to the maximum public services allocation available for FY 2026-27. Additionally, $116,072.35 in unused funds from prior years will also be incorporated.

The thirteen applications requested a combined $814,048. After removing the $150,000 in requests fulfilled through the April 7, 2026, reallocation, $664,048 in requests remains for consideration in this plan.

A full breakdown of the applications is provided in the Analysis section below.

ANALYSIS:

The purpose of the public hearing is to adopt the FY 2026-27 Annual Action Plan and approve the FY 2026-27 CDBG allocations. The draft Annual Action Plan is available as Attachment B.

Based on the City’s FY 2026-27 entitlement allocation from HUD of $538,212 and April 7, 2026, reallocation of $55,253.93 to public services, and $116,072.35 in prior unused monies, the maximum funding allowed in each category is as follows:

Public Services (15%)
Capital/ Workforce &
Economic Development
Activities
Program Administration
(20%)
$135,985.73 $465,910.15 $107,642.40
The combined total of all unfulfilled requests for FY 2026-27 CDBG funding is $664,048 with eight organizations requesting $124,048 for public services and four organizations requesting $540,000 in capital projects and economic development activities.

Staff Recommendation
The City Council provided staff with the following feedback at the January 20, 2026, City Council meeting:
• Support microenterprise activities by prioritizing applicants with broad applicability to benefit a diverse range of microenterprises.
• Prioritize applications for senior services

Based on City Council feedback, available funding, and the caps on public services and administration, staff have provided recommendations seen in the table below. The proposed allocations strive to adjust the allocations equitably while maintaining compliance with HUD guidelines.

For a full summary of the applicants’ original CDBG funding requests, staff funding recommendations, and the allocations proposed based on City Council feedback, see Attachment C. The following is a summary of the activities and funding amounts staff recommends. The proposed served is based on the original funding requests and is subject to change depending on the amount allocated.

Organization Name Project Description CDBG Fund
Request
Proposed
CDBG
Funding
Amount
Catholic Charities of
Santa Clara County
The Long-Term Care Ombudsman Program seeks
the resolution of problems and advocates for the
rights and well-being of senior residents of longterm care facilities.

Proposed Served: 16
$11,000 $12,531.00
Child Advocates of
Silicon Valley
Child Advocates trains community volunteers to
become Court Appointed Special Advocate
(CASA) in Santa Clara County to advocate for
foster children.

Proposed Served: 4
$15,000 $16,214.80
Next Door Solutions
Next Door Solutions provides Milpitas residents
who are victims of domestic violence with
comprehensive, survivor-defined services.

Proposed Served: 48
$13,000 $14,531.00
Project Sentinel
Project Sentinel will provide Milpitas residents with
housing advocacy and tenant/landlord counseling
and education.

Proposed Served: 120
$25,000 $26,536.93
Senior Adults Legal
Assistance
SALA will provide free legal services to Milpitas
seniors at no cost.

Proposed Served: 20
$15,000 $16,531.00
Silicon Valley
Independent Living
Center
SVILC will provide education, resources, and
advocacy about affordable, accessible housing to
Milpitas residents with disabilities.

Proposed Served: 48
$16,048 $17,579.00
Sourcewise
Sourcewise will provide nutritious home-delivered
meals to homebound seniors.

Proposed Served: 20
$11,000 $12,531.00
YWCA Golden Gate
Silicon Valley
YWCA Golden Gate Silicon Valley will provide
Milpitas residents with a multiservice continuum of
crisis response and prevention services for
survivors of domestic violence.

Proposed Served: 25
$18,000 $19,531.00
Public Service
Subtotal $124,048 $135,985.73
Organization Name Project Description CDBG Fund
Request
Proposed
CDBG
Funding
Amount
Capital Projects
Rebuilding Together
Silicon Valley
RTSV provides critical home repairs to lowincome residents.

Proposed Served: 30 $216,000 $200,000

Staff recommends reallocating unused funds this
program year to RTSV to support ongoing home
rehabilitation activities. This will be in addition to
the $200,000 proposal.

Terrace Gardens
Senior Housing
Requesting funds to replace the emergency pullcords at the senior facility.

Proposed Served: 184 (148 units)
On April 7, 2026, the Council funded Terrace
Gardens $143,660.23 for fire-panel replacement
at the senior facility. If the proposed emergency
cord replacement activity is approved in the
amount of $100,000, Terrace Gardens will receive
$243,660.23 in funding support to serve 148
affordable senior housing units (184 seniors).
$100,000 $100,000
Subtotal $316,000 $300,000
Organization Name Project Description CDBG Fund
Request
Proposed
CDBG
Funding
Amount
City of Milpitas
The City requests funding to support local
microenterprises with grants and technical
assistance.

Proposed Served: 40
On April 7, 2026, the Council awarded MEAP
$95,773.48. If the proposed allocation is approved, a
total of $261,683.63 will be allocated to this activity. $160,000 $165,910.15
Workforce & Economic
Development
Upwards
Upwards' BOOST Program provides specialized
business support and technical assistance to inhome childcare providers.

Proposed Served: 8
$64,000 $0
Subtotal $224,000 $165,910.15
Program
Administration
Program
Administration
Staff time in administering the program, including
all public noticing, and publishing. $0 $107,642.40
Subtotal $0 $107,642.40
Funds Subtotal $664,048 $709,538.28

The organization, Upwards, is the only applicant staff is not recommending funding.

The reasons for staff’s recommendation can be attributed to one or more of the following reasons:

1. Duplication of Services

2. Niche service category

3. For-profit instead of non-profit entity
The MEAP program will continue to follow the funding strategy approved by the City Council on June 3, 2025.

Program parameters will remain the same with 40 grantees as the targeted number of awards based on the Council’s existing distribution priorities:

1. Create two areas for grant distribution: Milpitas Historic Downtown Business Association (MHDBA) boundary and the rest of Milpitas with $100,000 allocated to eligible microenterprises in MHDBA and remaining funds allocated to eligible microenterprises in the rest of the city

2. Award grants to daycare/childcare microenterprises that did not receive funding during the prior program year in each area

3. Award grants to non-daycare/childcare microenterprises that did not receive funding during the prior program year (2025) in each area

4. If funding remains within the MHDBA boundary after priorities 1 and 2 are completed and eligible microenterprises remain in the citywide area based on priority 1 and 2 above, then distribute funds to citywide eligible microenterprises

5. Any remaining funds will go to citywide microenterprises, including in the MHDBA boundary that received funding in the previous program year.

Staff are evaluating qualifications from prospective program administrators as part of the City’s procurement process. The MEAP administrator will be selected through this process. The process is currently in progress.

Due to delays in executing the grant agreement with HUD this year, home rehabilitation activities with Rebuilding Together Silicon Valley were significantly postponed. Therefore, staff recommends reappropriating any remaining balance from this program year to the next program year.

FISCAL IMPACT:

The City is set to receive a CDBG entitlement allocation of $538,212 for FY 2026-27. Additionally, $55,253.93 reallocated from the revolving loan fund on April 7, 2026, and $116,072.35 in unused prior-year funds will be available. This brings the total CDBG resources allocated through this plan to $709,538.28. Staff also recommends reappropriating any remaining balance from this program year’s home rehabilitation activity to next year’s home rehabilitation activity. There will be no impact on the City’s General Fund, as CDBG funds cannot replace General Fund expenditures.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):

The actions being considered have no potential for causing a significant effect on the environment and are exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3). Further, this action does not meet the definition of a project under CEQA Guideline 15378 as it is a government fiscal activity which does not commit to any project that would result in a potentially significant impact on the environment.

ATTACHMENT(S):
(a) Eligible CDBG Activities and Requirements
(b) DRAFT 2026-2027 Annual Action Plan
(c) Applicant Summary

Eligible and Ineligible CDBG Activities
Eligible CDBG Activities

1. Acquisition of Real Property

2. Disposition

3. Public Facilities and Improvements

4. Clearance and Remediation

5. Public Services

6. Interim Assistance

7. Relocation

8. Loss of Rental Income

9. Housing Services

10. Privately-Owned Utilities

11. Rehabilitation and preservation

12. Construction of Housing

13. Code Enforcement

14. Special Economic Development Activities

15. Microenterprise Assistance

16. Special Activities by Community-Based Development Organizations

17. Homeownership Assistance

18. Planning and Capacity Building

19. Program Administration Costs

20. Miscellaneous Other Activities
Ineligible CDBG Activities

1. Buildings or portions thereof, used for the general conduct of government may not be assisted with CDBG funds. This does not include, however, the removal of architectural barriers involving any such building, which may be assisted under the category of Public Facilities and Improvements.

2. General government expenses. Expenses required to carry out the regular responsibilities of the unit of general local government are not eligible for assistance under this part.

3. Political activities. CDBG funds may not be used to finance the use of facilities or equipment for political purposes or to engage in other partisan political activities, such as candidate forums, voter transportation, or voter registration.

4. Purchase of equipment. The purchase of equipment with CDBG funds is generally ineligible – construction equipment, fire protection equipment, furnishings and personal property.

5. Operating and maintenance expenses. The general rule is that any expense associated with repairing, operating, or maintaining public facilities, improvements, and services is ineligible.

6. New housing construction.

7. Income payments. The general rule is that CDBG funds may not be used for income payments.

Adapted from HUD booklet, Community Development Block Grant Program; A guide to National Objectives & Eligible Activities for Entitlement Communities.

City of Milpitas
Annual Action Plan
2026-2027

Annual Action Plan 1
OMB Control No: 2506-0117 (exp. 09/30/2021)
Revised May 29, 2026
Revised June 4, 2026
Executive Summary
AP-05 Executive Summary - 24 CFR 91.200(c), 91.220(b)

1. Introduction
The City of Milpitas (City) is an entitlement city that receives Community Development Block Grant (CDBG) funding from the U.S. Department of Housing and Urban Development (HUD).

CDBG funds address community and economic development needs for low- and moderate-income residents through public services and capital improvement projects. At least seventy percent (70%) of gross funding is to be utilized to serve low- and moderate-income individuals and households.

The City is required to develop a three to five-year Consolidated Plan outlining the strategies used to meet the variety of housing and non-housing community needs. For each of the three to five years covered by the Consolidated Plan, HUD requires the City to prepare a one-year Action Plan that identifies programs, projects, and CDBG funding levels undertaken any given year. This Annual Action Plan (AAP) covers the second program year covered by the City’s FY 2025-29 Consolidated Plan which was adopted by the Milpitas City Council on June 3, 2025.

The City’s AAP spans July 1, 2026, to June 30, 2027, aligning with HUD’s Program Year 2026. This FY 2026-27 AAP outlines the City’s anticipated needs and projected outcomes for the upcoming year, with activities reflecting the City’s current priorities. The AAP also supports the broader FY 2025-29 Consolidated Plan.

2. Summarize the objectives and outcomes identified in the Plan This could be a restatement of items or a table listed elsewhere in the plan or a reference to another location. It may also contain any essential items from the housing and homeless needs assessment, the housing market analysis or the strategic plan.

The Annual Action Plan provides a snapshot of how the City will utilize its CDBG allocation to meet the needs of the City’s low- and moderate-income individuals and the most vulnerable populations.

The objectives and outcomes identified in the FY 2025-29 Consolidated Plan are to be achieved with the activities and programs mentioned in the AAP. The AAP works towards accomplishing the following priorities to meet the housing and community development needs in Milpitas:

Annual Action Plan 2
OMB Control No: 2506-0117 (exp. 09/30/2021)
• Maintain and Preserve Affordable Housing
• Supportive and Community Services
• Homelessness Prevention and Response
• Public Improvements
• Workforce Development
• Planning and Administration

3. Evaluation of past performance
This is an evaluation of past performance that helped lead the grantee to choose its goals or projects.

The City is committed to ensuring full compliance with all rules and regulations governing the CDBG entitlement grant program.

To guide the selection of our goals, the City conducts an annual evaluation of funding allocations and a biannual review of funding priorities. These evaluations involve assessing progress toward previous goals, reviewing project outcomes, and soliciting feedback from stakeholders and the community. By analyzing past performance, considering community needs, and integrating stakeholder input, the City identifies areas of greatest impact and adjusts priorities accordingly to ensure activities remain aligned with both regulatory requirements and local needs.

At the time of drafting this Action Plan, FY 2025-26 has not concluded. Accomplishments for the current program year will report accomplishments in the upcoming Consolidated Annual Performance Evaluation Report (CAPER).

4. Summary of Citizen Participation Process and consultation process Summary from citizen participation section of plan.

Throughout the development of the FY 2026-27 AAP, the City actively sought community input. Two public hearings and a community meeting were conducted to gather public comments and identify community needs. The first public hearing occurred during the drafting phase, while the second and final public hearing took place following the community meeting.

Public Hearing #1
The first public hearing, held on January 20, 2026, invited public comments on submitted applications. In total, ten public comments were received. Of these, nine came from prospective applicants, each summarizing their proposed activities and describing how these activities would benefit Milpitas residents.

Community Meeting

Annual Action Plan 3
OMB Control No: 2506-0117 (exp. 09/30/2021)
On February 4, 2026, the Community Housing Commission (CHC) convened a public meeting to review submitted applications, hear presentations from applicants, and prioritize funding areas. The commissioners’ feedback will be incorporated in the final allocation recommendations presented at the public hearing on June 2, 2026.

Public Hearing #2
The Second/Final Public Hearing will be held on June 2, 2026. This section will be updated.

Public Noticing
In accordance with its adopted Citizen Participation Plan, the City of Milpitas conducted a 30-day public review and comment period for the Annual Action Plan. Notifications of the upcoming public hearings and the public review period were widely distributed: published in a local newspaper, posted at the front desk and public library, shared on the City’s CDBG webpage, and sent via email blasts to stakeholders. The next advertised public hearing is scheduled for June 2, 2026.

The City announced the opening of the FY 2026-27 CDBG application period on October 31, 2025, with applications accepted from November 3 through December 5, 2025. This Notice of Funding Availability (NOFA) was distributed to current CDBG subrecipients, the CDBG interest email list, and other community members. The notice and application were also made available at City Hall’s Permit Center, the Milpitas Library, and on the City’s CDBG webpage. Additionally, the public notice was published in the Milpitas Post on October 31, 2025.

On January 2, 2026, the City announced the first public hearing to discuss applications received for the FY 2026-27 AAP. The announcement was widely distributed, published in a local newspaper, posted at the front desk and public library, shared on the City’s CDBG webpage, included in email blasts to stakeholders, and featured in the Milpitas Post. The first public hearing took place on January 20, 2026.

Section will be updated after June 16, 2026, public hearing.

5. Summary of public comments
This could be a brief narrative summary or reference an attached document from the Citizen Participation section of the Con Plan.

Section will be updated after June 16, 2026, public hearing.

6. Summary of comments or views not accepted and the reasons for not accepting them Section will be updated after June 16, 2026, public hearing.

Annual Action Plan 4
OMB Control No: 2506-0117 (exp. 09/30/2021)

7. Summary
Section will be updated after June 16, 2026, public hearing.

Annual Action Plan 5
OMB Control No: 2506-0117 (exp. 09/30/2021)
PR-05 Lead & Responsible Agencies – 91.200(b)

1. Agency/entity responsible for preparing/administering the Consolidated Plan Describe the agency/entity responsible for preparing the Consolidated Plan and those responsible for administration of each grant program and funding source.

Agency Role Name Department/Agency
CDBG Administrator MILPITAS Office of Housing
Table 1 – Responsible Agencies
Narrative (optional)
The City of Milpitas’ Office of Housing serves as the lead agency in the administration of the CDBG program.

Consolidated Plan Public Contact Information
Michelle Silva
Administrative Analyst, City of Milpitas
455 E. Calaveras Blvd. Milpitas, CA 95035

Annual Action Plan 6
OMB Control No: 2506-0117 (exp. 09/30/2021)
AP-10 Consultation – 91.100, 91.200(b), 91.215(l)

1. Introduction
The FY 2026-27 AAP is a one-year plan that describes eligible projects and activities to be completed according to current priorities outlined in the FY 2025-29 Consolidated Plan. The AAP was prepared by the Office of Housing with input from a variety of local and regional stakeholders.

Provide a concise summary of the jurisdiction’s activities to enhance coordination between public and assisted housing providers and private and governmental health, mental health and service agencies (91.215(l))
The City of Milpitas actively collaborates with the County of Santa Clara’s Supportive Housing System alongside numerous other agencies and organizations. Although the City does not have direct access to the Homeless Management Information System (HMIS), it receives relevant homeless data from the County and works closely with County HMIS staff to interpret the data and provide recommendations for improvements.

The Continuum of Care (CoC) brings together stakeholders from local jurisdictions, including the Santa Clara County Housing Authority (SCCHA), community- and faith-based organizations, government departments, health agencies, homeless advocates, consumers, and research and policy groups. The CoC utilizes the HMIS to track outcomes and performance measures for all County-funded homeless service agencies.

According to the 2023 Point-in-Time (PIT) count, Milpitas had 142 homeless individuals, all of whom were unsheltered. This stark statistic highlights the urgent need for expanded shelter and both supportive and preventative homelessness services within the City.

Milpitas staff also participate in the Community Plan to End Homelessness Implementation Team, which includes regional CoC members and diverse community stakeholders. This team evaluates the County’s progress toward homeless goals, identifies service gaps, sets funding priorities, and pursues a coordinated and systematic approach to addressing and ultimately ending homelessness. The City is currently in the midst of participating and planning for the next iteration of the Community Plan to End Homelessness.

Describe coordination with the Continuum of Care and efforts to address the needs of homeless persons (particularly chronically homeless individuals and families, families with children, veterans, and unaccompanied youth) and persons at risk of homelessness.

The County of Santa Clara serves as the primary government agency responsible for coordinating, planning, and distributing funding for homeless programs and services across the region. To address homelessness in a comprehensive manner, the County has established the Supportive Housing System, which brings together the Continuum of Care (CoC), a consortium of public agencies, nonprofit organizations, and community partners, to prevent and end homelessness. As the lead partner, the

Annual Action Plan 7
OMB Control No: 2506-0117 (exp. 09/30/2021)
County ensures a unified system-wide response. Additionally, the CoC is tasked with organizing and conducting the biennial Point-in-Time (PIT) count to assess the local unhoused population.

Through its Office of Supportive Housing (OSH), the County of Santa Clara applies for federal and state grants on behalf of the region, coordinates access and referrals to housing programs, sets performance benchmarks, and collects and manages critical data on homelessness.

CoC stakeholders encompass a wide range of local jurisdictions and organizations, including communityand faith-based groups, the Santa Clara County Housing Authority (SCCHA), government departments, health service agencies, homeless advocates, service consumers, and research and policy organizations.

The CoC utilizes the Homeless Management Information System (HMIS) to monitor outcomes and performance measures for all County-funded homeless service agencies.

The City of Milpitas is an active partner in the County of Santa Clara’s Supportive Housing System, collaborating with a network of agencies and organizations to address local homelessness. Although the City does not currently have direct HMIS access, it receives essential data from the County and works closely with County HMIS staff to better interpret trends and recommend improvements.

To provide targeted support, the City contracts with WeHOPE to employ two homeless outreach case managers who conduct Vi-SPDAT assessments and input data into HMIS, strengthening data-driven service delivery. In partnership with the CoC, all shelter referrals are centralized through the Here4You hotline, streamlining access to housing resources. To further improve services, the City is pursuing direct HMIS access to expedite connections for residents and is developing a “by-name” list of unhoused individuals to enable more personalized case management and sustainable homelessness prevention strategies.

Milpitas also participates in the Community Plan Implementation Team, which brings together regional CoC representatives and diverse community stakeholders. This collaborative group evaluates the County’s progress in meeting homeless goals and metrics, identifies gaps in services and systems, sets funding priorities, and advances a coordinated approach to addressing and ultimately ending homelessness.

The City of Milpitas maintains ongoing collaboration with the County to address the needs of the local unhoused population, including initiatives such as:
• Participating in the development of the 2025-2030 Community Plan to End Homelessness in Santa Clara County, which outlines strategies to address the needs of homeless individuals and families, including chronically homeless people, families with children, veterans, unaccompanied youth, and those at risk of homelessness.
• Provide weekly hot shower and laundry services to Milpitas’s unhoused residents through WeHOPE’s Dignity on Wheels program, which features mobile shower and laundry facilities and connects clients with additional resources.

Annual Action Plan 8
OMB Control No: 2506-0117 (exp. 09/30/2021)
Describe consultation with the Continuum(s) of Care that serves the jurisdiction's area in determining how to allocate ESG funds, develop performance standards for and evaluate outcomes of projects and activities assisted by ESG funds, and develop funding, policies and procedures for the operation and administration of HMIS The City of Milpitas does not receive Emergency Shelter Grant (ESG) funding however the City participates with the CoC to address homeless issues.

2. Describe Agencies, groups, organizations and others who participated in the process and describe the jurisdiction’s consultations with housing, social service agencies and other entities
Table 2 – Stakeholder Participation
1 Agency/Group/Organization Catholic Charities
Agency/Group/Organization Type Services-Elderly Persons What section of the Plan was addressed by
Consultation?
Needs Assessment
Market Analysis
Non-Homeless Special Needs
How wasthe Agency/Group/ Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Community Meeting
Website https://www.ccscc.org/
2 Agency/Group/Organization City of Milpitas, Office of Economic Development Agency/Group/Organization Type Other government- Local
What section of the Plan was addressed by
Consultation?
Needs Assessment
Market Analysis
Economic Development
How wasthe Agency/Group/ Organization
consulted and what are the anticipated
Community Meeting

Annual Action Plan 9
OMB Control No: 2506-0117 (exp. 09/30/2021)
outcomes of the consultation or areas for
improved coordination?
Website https://www.milpitas.gov/1102/Office-of-EconomicDevt-Strategic-Initia 3 Agency/Group/Organization Next Door Solutions
Agency/Group/Organization Type Services-Victims of Domestic Violence What section of the Plan was addressed by
Consultation?
Needs Assessment
Market Analysis
Non-Homeless Special Needs
How wasthe Agency/Group/ Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Community Meeting
Website https://www.nextdoorsolutions.org/
4 Agency/Group/Organization Project Sentinel
Agency/Group/Organization Type Services-Housing
What section of the Plan was addressed by
Consultation?
Needs Assessment
Market Analysis
Non-Homeless Special Needs
How wasthe Agency/Group/ Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Community Meeting
Website https://www.housing.org/
5 Agency/Group/Organization Rebuilding Together Silicon Valley Agency/Group/Organization Type Services-Housing
What section of the Plan was addressed by
Consultation?
Needs Assessment
Market Analysis

Annual Action Plan 10
OMB Control No: 2506-0117 (exp. 09/30/2021)
Non-Homeless Special Needs
How wasthe Agency/Group/ Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Community Meeting
Website https://rebuildingtogethersv.org/
6 Agency/Group/Organization Terrace Gardens Senior Housing Agency/Group/Organization Type Services-Elderly Persons What section of the Plan was addressed by
Consultation?
Needs Assessment
Market Analysis
Non-Homeless Special Needs
How wasthe Agency/Group/ Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Community Meeting
Website https://terracegardensinc.com/
7 Agency/Group/Organization Senior Adults Legal Assistance Agency/Group/Organization Type Services-Elderly Persons What section of the Plan was addressed by
Consultation?
Needs Assessment
Market Analysis
Non-Homeless Special Needs
How wasthe Agency/Group/ Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Community Meeting
Website http://s393914827.initial-website.com/
8 Agency/Group/Organization Upwards
Agency/Group/Organization Type Services-Education

Annual Action Plan 11
OMB Control No: 2506-0117 (exp. 09/30/2021)
What section of the Plan was addressed by
Consultation?
Needs Assessment
Market Analysis
Economic Development
How wasthe Agency/Group/ Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Community Meeting
Website https://upwards.com/
9 Agency/Group/Organization Silicon Valley Independent Living Center Agency/Group/Organization Type Services-Persons with Disabilities What section of the Plan was addressed by
Consultation?
Needs Assessment
Market Analysis
Non-Homeless Special Needs
How wasthe Agency/Group/ Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Community Meeting
Website https://svilc.org/
10 Agency/Group/Organization Sourcewise
Agency/Group/Organization Type Services-Elderly Persons What section of the Plan was addressed by
Consultation?
Needs Assessment
Market Analysis
Non-Homeless Special Needs
How wasthe Agency/Group/ Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Community Meeting
Website https://mysourcewise.com/

Annual Action Plan 12
OMB Control No: 2506-0117 (exp. 09/30/2021)
11 Agency/Group/Organization YWCA Golden Gate Silicon Valley Agency/Group/Organization Type Services-Victims of Domestic Violence What section of the Plan was addressed by
Consultation?
Needs Assessment
Market Analysis
Non-Homeless Special Needs
How wasthe Agency/Group/ Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Community Meeting
Website https://yourywca.org/

Table 2 – Agencies, groups, organizations who participated in the process

Annual Action Plan 13
OMB Control No: 2506-0117 (exp. 09/30/2021)
Identify any Agency Types not consulted and provide rationale for not consulting Not applicable. No agency types were intentionally left out of the consultation process.

Other local/regional/state/federal planning efforts considered when preparing the Plan Name of Plan Lead Organization How do the goals of your Strategic Plan overlap with the goals of each plan?
Continuum of Care Regional Continuum of Care Council The CoC works to alleviate the impact of homelessness in the community through
the cooperation and collaboration of
social service providers. This effort aligns
with the Strategic Plan’s goal to support
activities to end homelessness.

City of Milpitas Housing Element City of Milpitas Housing Elementserves as a policy guide to help the City meet its existing and
future housing needs. This effort
aligns with the Strategic Plan’s goal to
assist in the creation and preservation of
affordable housing.

Table 3 – Other local / regional / federal planning efforts Narrative (optional)

Annual Action Plan 14
OMB Control No: 2506-0117 (exp. 09/30/2021)
AP-12 Participation – 91.105, 91.200(c)

1. Summary of citizen participation process/Efforts made to broaden citizen participation Summarize citizen participation process and how it impacted goal-setting The citizen participation process involves hosting multiple public community meetings and workshops to maximize engagement. City staff collaborated with the Community Housing Commission (CHC) to organize a public meeting, providing both the Commission and the community with opportunities to understand and participate in the CDBG process. On February 4, 2026, the CHC held a meeting to discuss priorities, goals, and funding allocations for the FY 2026-27 Annual Action Plan.

The City will conduct three publicly noticed meetings to discuss CDBG allocations, including two public hearings. Notices for these hearings were issued in accordance with the Citizen Participation Plan. The next public hearing is to be held on June 16, 2026.

Section will be updated after June 16, 2026, public hearing.

Annual Action Plan 15
OMB Control No: 2506-0117 (exp. 09/30/2021)
Citizen Participation Outreach
Sort Ord
er
Mode of Outre
ach
Target of Outre
ach
Summary of
response/attend
ance
Summary of
comments recei
ved
Summary of comm
ents not accepted
and reasons
URL (If applicable)
1 Public Hearings Milpitas
Residents
A public hearing
was held on
January 20, 2026,
with the Milpitas
City Council to
review the
applications
received for the
2026 program
year. Total of 50
in attendance at
the public
hearing. The next
public hearing
will be held on
June 16, 2026.

A total of ten
public
comments were
provided. Nine
of the public
comments
received were
from
prospective
applicants
summarizing its
proposed
activities and
how the
activities would
benefit Milpitas
residents.

All comments
accepted.

N/A

Annual Action Plan 16
OMB Control No: 2506-0117 (exp. 09/30/2021)
Sort Ord
er
Mode of Outre
ach
Target of Outre
ach
Summary of
response/attend
ance
Summary of
comments recei
ved
Summary of comm
ents not accepted
and reasons
URL (If applicable)
2 Community
Meeting
Milpitas
Residents
A community
meeting was held
on February 4,
2026, with the
Community
Housing
Commission. A
total of 20 in
attendance of the
community
meeting.

The public
meeting was
held to review
the FY 2026-27
program
applications,
hear from the
applicants, and
rank community
priority areas.

The
commissioner’s
feedback will be
provided after
the meeting.

All comments
accepted.

N/A
3 Milpitas’ CDBG
Website
Nontargeted/broad
community
No responses
received.

No comments
received.

N/A https://www.milpitas.gov/475/Co
mmunity-Development-BlockGrant-CDBG
Table 4 – Citizen Participation Outreach
Section will be updated after June 2, 2026, public hearing.

Annual Action Plan 17
OMB Control No: 2506-0117 (exp. 09/30/2021)
Expected Resources
AP-15 Expected Resources – 91.220(c)(1,2)
Introduction
The City of Milpitas was awarded $538,212 in entitlement funds for the 2026 program year, aligning with recent allocation trends.

These CDBG funds will support eligible activities that address priorities identified in the Consolidated Plan. Additionally, the City receives revolving loan fund (RLF) monies from a retired Home Rehabilitation Loan Program. Repayments from these loans are deposited into the RLF and classified as program income (PI). Most City loans do not require regular payments; instead, balances are typically settled in full when properties are sold or refinanced. Consequently, repayments are unpredictable and may vary from under $10,000 to more than $300,000, or sometimes nothing at all. Therefore, the City will not estimate PI amounts. If repayments are received during the year, the City will determine whether an amendment is required or include the PI in the following program year Annual Action Plan.

On April 7, 2026, the City Council approved a substantial amendment to reallocate $368,359.55 in RLF funds to eligible activities.

Program administration funds totaling $73,671.91 will be used during FY 2025–26. Carryover program income of $294,687.64 will support activities in FY 2026–27.

Carryover PI Fund Balance $294,687.64
PY 2026 Public Services (55,253.93)
PY 2026 Terrace Gardens (Fire Panel Replacement) (143,660.23) PY 2026 Microenterprise Assistance Program (MEAP) (95,773.48) Prior year unused entitlement monies in the amount of $116,072.35 will be reallocated to eligible activities.

Annual Action Plan 18
OMB Control No: 2506-0117 (exp. 09/30/2021)
An estimated $111,000 in current program year funding to Rebuilding Together Silicon Valley will be reallocated to the same activity.

This reallocated amount will depend on the remaining funding at the end of the 2025 program year.

Anticipated Resources
Program Source
of
Funds
Uses of Funds Expected Amount Available Year 1 Expected Amount
Available
Remainder
of ConPlan
$
Narrative Description
Annual
Allocation:
$
Program
Income: $
Prior Year
Resources: $
Total:
$
CDBG PublicFederal
Admin and
Planning Economic
Development
Housing
Public
Improvements
Public Services
$538,212 $8,000 $536,759.63 $963,971.63 $1,257,525
Prior year resources
include carryover PI,
prior year unused EN
monies, carry over
monies from RTSV and
unused Covid monies.

Estimated PI for
program admin use.

Table 5 - Expected Resources – Priority Table
Explain how federal funds will leverage those additional resources (private, state and local funds), including a description of how matching requirements will be satisfied
Not applicable, the City does not match federal funds.

Annual Action Plan 19
OMB Control No: 2506-0117 (exp. 09/30/2021)
If appropriate, describe publically owned land or property located within the jurisdiction that may be used to address the needs identified in the plan There are three parcels controlled by the City. One parcel, located at 1432 S. Main Street, is owned by Milpitas Housing Authority and is approximately 0.9 acres in size. Currently, the parcel is occupied by commercial tenants, but the land is zoned as high-density multi-family residential. In January 2022, City Council directed staff to sell the parcel owned by the Milpitas Housing Authority with the intent that the buyer will develop affordable housing.

The other two parcels, approximately 1.7 acres, are located adjacent to the Milpitas Housing Authority property and are owned by the City of Milpitas. Those City parcels are also occupied by commercial businesses but are also zoned for multi-family residential use. Staff is awaiting City Council direction for this parcel.

Discussion
See discussion above.

Annual Action Plan 20
OMB Control No: 2506-0117 (exp. 09/30/2021)
Annual Goals and Objectives
AP-20 Annual Goals and Objectives

Annual Action Plan 21
OMB Control No: 2506-0117 (exp. 09/30/2021)
Goals Summary Information
Sort Order Goal Name Start
Year
End
Year
Category Geographic
Area
Needs
Addressed
Funding Goal Outcome Indicator
1 Maintain and
Preserve
Affordable
Housing
2025 2030 Affordable
Housing
City of
Milpitas
Affordable
Housing
Development
and
Preservation
CDBG: $557,660.23
Rental Unit Rehabilitated: 148
Household Housing Unit
Homeowner Housing
Rehabilitated: 18 Household
Housing Unit
2 Supportive and
Community
Services
2025 2030
NonHomeless
Special
Needs
Non-Housing
Community
Development
City of
Milpitas
Supportive
Services CDBG: $135,985.73
Public service activities other
than Low/Moderate Income
Housing Benefit: 301 Persons
Assisted
3 Workforce and
Economic
Development
2025 2030
Non-Housing
Community
Development
City of
Milpitas
Community,
Public and
Neighborhood
Sustainability
Economic
Development
CDBG: $261,683.63 Businesses Assisted: 40
Businesses Assisted
4 Planning and
Administration 2025 2030
Affordable
Housing
Public
Housing
Homeless
NonHomeless
Special
Needs
Non-Housing
Community
Development
City of
Milpitas
Planning and
Administration
CDBG: $107,642.40
PI: $8,000 Other

Annual Action Plan 22
OMB Control No: 2506-0117 (exp. 09/30/2021)
Table 6 – Goals Summary
Goal Descriptions
1 Goal Name Maintain and Preserve Affordable Housing
Goal
Description
Maintain and preserve existing affordable homeownership and rental housing for LMI Households through housing rehabilitation.
2 Goal Name Supportive and Community Services
Goal
Description
Provide supportive services for low and moderate income and special populations (seniors, domestic violence survivors, youth) including case management, and legal assistance. 3 Goal Name Workforce and Economic Development
Goal
Description
Invest in projects that support workforce development including support for small businesses and microenterprise to benefit LMI households.
4 Goal Name Planning and Administration
Goal
Description
Provide management, planning and implementation of the City’s CDBG program.

Annual Action Plan 23
OMB Control No: 2506-0117 (exp. 09/30/2021)
Projects
AP-35 Projects – 91.220(d)
Introduction
The Consolidated Plan goals identify the highest priority needs for the City of Milpitas and form the foundation for the City's strategic actions to address these needs. Milpitas receives Community Development Block Grant (CDBG) funding exclusively. When appropriate and recommended, the City Council may supplement CDBG funds with local resources, such as the Housing Authority Fund. All funds are dedicated to serving and improving the lives of low- and moderate-income residents in Milpitas.

Projects
# Project Name
1 Maintain and Preserve Affordable Housing
2 Supportive and Community Services
3 Workforce and Economic Development
4 Planning and Administration
Table 7 - Project Information
Describe the reasons for allocation priorities and any obstacles to addressing underserved needs
The Priority Needs identified in the Consolidated Plan include:
• Maintaining and Preserving Affordable Housing
• Providing Supportive and Community Services
• Workforce and Economic Development
• Planning and Administration
The projects outlined in this Action Plan comprehensively address each Priority Need and its corresponding Goals. However, the most significant barrier to meeting underserved needs remains insufficient funding. Funding sources are dwindling across several sectors, and reductions in non-HUD resources further intensify the needs of residents.

Annual Action Plan 24
OMB Control No: 2506-0117 (exp. 09/30/2021)
AP-38 Project Summary
Project Summary Information
1 Project Name Maintain and Preserve Affordable Housing Target Area Citywide
Goals Supported Maintain and Preserve Affordable Housing Needs Addressed Affordable Housing Development and Preservation Funding CDBG: $557,660.23
Description Critical home repairs and accessibility modifications to low-income and vulnerable residents such as seniors.

Target Date 6/30/2027
Estimate the number and type
of families that will benefit
from the proposed activities
An estimated eighteen (18) single-unit residences will receive critical home repairs, while one hundred forty-eight (148) units at senior facility are slated for fire panel and emergency pull-cord replacements.

Location Description Milpitas, CA
Planned Activities Rebuilding Together Silicon Valley (RTSV): Provide critical home repairs and accessibility modifications to low-income residents at an estimated eighteen (18) single-unit residences. HUD Matrix Code: 14ARehabilitation: Single-Unit Residential. National Objective: LMH. Funding is estimated to be $311,000. Not presumed benefit.

Terrace Gardens Senior Housing: Conduct fire panel and emergency pull-cord replacements for one hundred forty-eight (148) units at senior facility. HUD Matrix Code: 14B- Rehab; Multi-Unit ResidentialLMH. National Objective: LMH. Funding is estimated to be $243,660.23. Presumed benefit. 2 Project Name Supportive and Community Services

Annual Action Plan 25
OMB Control No: 2506-0117 (exp. 09/30/2021)
Target Area Citywide
Goals Supported Supportive and Community Services
Needs Addressed Supportive Services
Funding CDBG: $135,985.73
Description Continue strengthening the community by funding essential public services for low-income residents.

Support agencies that provide vital services to low- and moderate-income individuals, including housing advocacy, foster youth support, a long-term ombudsman program, services for victims of domestic violence, tenant-landlord counseling, legal assistance for seniors, housing services for people with disabilities, and meal delivery and services for homebound seniors.

Target Date 6/30/2027
Estimate the number and type
of families that will benefit
from the proposed activities
An estimated 301 individuals will benefit from the City's public service activities.

Location Description Milpitas, CA

Annual Action Plan 26
OMB Control No: 2506-0117 (exp. 09/30/2021)
Planned Activities Catholic Charities: The Long-Term Care Ombudsman Program provides advocacy and protection for residents living in skilled nursing facilities and residential care facilities for the elderly. An estimated sixteen (16) seniors will benefit. HUD Matrix Code: 05A- Senior Service. National Objective: LMC. Funding is estimated to be $12,531. Presumed benefit.

Child Advocates of Silicon Valley: Program for foster youth advocacy. CDBG funding will support four (4) Milpitas youth in foster care. HUD Matrix Code: 05N- Services for Abused and Neglected Children.

National Objective: LMC. Funding is estimated to be $16,214.80. Presumed benefit.

Next Door Solutions to Domestic Violence: Support services for survivors of domestic violence. An estimated forty eight (48) survivors will benefit from this activity. HUD Matrix Code: 05G- Services for victims of domestic violence, dating violence, sexual assault or stalking. National Objective: LMC. Funding is estimated to be $14,531. Presumed benefit.

Project Sentinel: This activity will provide residents with housing advocacy and tenant-landlord counseling and education. An estimated one hundred twenty (120) residents will benefit. HUD Matrix Code: 05KTenant/Landlord Counseling. National Objective: LMC. Funding is estimated at $26,536.93. Not presumed benefit.

Senior Adults Legal Assistance: This activity provides seniors with no-cost legal services. An estimated twenty (20) seniors will benefit. HUD Matrix Code: 05A- Senior Services. National Objective: LMC. Funding is estimated at $16,531. Presumed benefit.

Silicon Valley Independent Living Center: SVILC provides education, resources and housing advocacy for residents with disabilities. An estimated forty eight (48) residents will benefit. HUD Matrix Code: 05BServices for Persons with Disabilities. National Objective: LMC. Funding is estimated at $17,579. Presumed benefit.

Sourcewise: This activity provides nutritional meals to homebound seniors. An estimated twenty (20) seniors will benefit. HUD Matrix Code: 05A- Senior Services. National Objective: LMC. Funding is estimated at $12,531. Presumed benefit.

YWCA: Support services for survivors of domestic violence. An estimated twenty-five (25) survivors will benefit from this activity. HUD Matrix Code: 05G- Services for victims of domestic violence, dating violence, sexual assault or stalking. National Objective: LMC. Funding is estimated to be $19,531.

Presumed benefit.

Annual Action Plan 27
OMB Control No: 2506-0117 (exp. 09/30/2021)
3 Project Name Workforce and Economic Development
Target Area Citywide
Goals Supported Workforce and Economic Development
Needs Addressed Community, Public and Neighborhood Sustainability Economic Development Funding CDBG: $261,683.63
Description Provide grants to income-qualified Milpitas microenterprises and provide microenterprises with technical assistance to boost financial management.

Target Date 6/30/2027
Estimate the number and type
of families that will benefit
from the proposed activities
An estimated forty (40) microenterprises will be assisted.

Location Description Milpitas, CA
Planned Activities Microenterprise Assistance Program (MEAP): Provide grants to forty (40) income-qualified Milpitas microenterprises and provide microenterprises with technical assistance. HUD Matrix Code: 18CMicroenterprise Assistance. National Objective: LMC. Funding is estimated to be $261,683.63. Not presumed benefit.
4 Project Name Planning and Administration
Target Area Citywide
Goals Supported Planning and Administration
Needs Addressed Planning and Administration
Funding CDBG: $107,642.40 PI: $8,000
Description Oversee general staff administration of the CDBG program and activities, including IDIS management, program setup, reporting, and planning.

Annual Action Plan 28
OMB Control No: 2506-0117 (exp. 09/30/2021)
Target Date 6/30/2027
Estimate the number and type
of families that will benefit
from the proposed activities
Administrative activities will not directly benefit families.

Location Description Milpitas, CA
Planned Activities General planning and CDBG administrative activities. HUD Matrix Code: 21A General Administration

Annual Action Plan 29
OMB Control No: 2506-0117 (exp. 09/30/2021)
AP-50 Geographic Distribution – 91.220(f)
Description of the geographic areas of the entitlement (including areas of low-income and minority concentration) where assistance will be directed CDBG funding will be used city-wide for eligible people. The City of Milpitas does not set geographic concentration areas for assistance. No census tracts in the city limits identify any area as a slum. Instead, the City helps fund organizations that provide supportive services to low- and moderate-income residents.

Geographic Distribution
Target Area Percentage of Funds
Citywide 100%
Table 8 - Geographic Distribution
Rationale for the priorities for allocating investments geographically N/A
Discussion
See discussion above.

Annual Action Plan 30
OMB Control No: 2506-0117 (exp. 09/30/2021)
Affordable Housing
AP-55 Affordable Housing – 91.220(g)
Introduction
The City adopted Affordable Housing Ordinance No. 297 on June 12, 2018. The Affordable Housing Ordinance requires that all new developments of over ten units must construct 15% of the total number of dwelling units to be affordable. For example, a developer wants to build an apartment complex with twenty units. A total of three units (15%) will need to be deemed affordable to comply with the City’s Affordable Housing Ordinance. On March 5, 2019, the City established residential and non-residential affordable housing fees. On February 1, 2022, the City Council approved changes to the Affordable Housing Ordinance to encourage more on-site housing construction, to help the City meet its Regional Housing Needs Allocation (RHNA) goals, and to add clarity and consistency throughout the ordinance.

The affordable units constructed become part of the City’s Below Market Rate (BMR) Program portfolio and are deed-restricted affordable for 55 years.

In addition to our Affordable Housing Ordinance, the City typically allocates funding for housing rehabilitation and preservation. The funded organizations help support low-income homeowners and renters and seniors stay housed.

One Year Goals for the Number of Households to be Supported Homeless 0
Non-Homeless 166
Special-Needs 0
Total 166
Table 9 - One Year Goals for Affordable Housing by Support Requirement One Year Goals for the Number of Households Supported Through Rental Assistance 0
The Production of New Units 0
Rehab of Existing Units 166
Acquisition of Existing Units 0
Total 166
Table 10 - One Year Goals for Affordable Housing by Support Type Discussion
The rising costs of materials and labor, along with limited low-income housing bonds and financing, pose significant challenges to the construction and rehabilitation of affordable housing. Regardless, the City is committed to providing and maintaining affordable housing through our BMR program and critical home rehabilitation projects.

Annual Action Plan 31
OMB Control No: 2506-0117 (exp. 09/30/2021)
The City plans to allocate resources to Rebuilding Together Silicon Valley (RTSV) for critical home repairs, and to Terrace Gardens for fire panel and emergency cord replacement.

RTSV assists low-income homeowners and renters with critical repairs. The allocated resources will support 18 low-income homeowners and renters in Milpitas.

Terrace Gardens is a deed-restricted, very low- and low-income affordable senior rental community. The allocation will fund critical capital repairs, benefiting 148 affordable housing units.

Annual Action Plan 32
OMB Control No: 2506-0117 (exp. 09/30/2021)
AP-60 Public Housing – 91.220(h)
Introduction
The City of Milpitas currently does not have any public housing. However, there is a project-based Section 8 property in the City, the Sunnyhills Apartments. Sunnyhills Apartments is a 171-unit development in which 149 units receive project-based Section 8 vouchers. The project-based Section 8 vouchers subsidize assistance for each unit with the Department of Housing and Urban Development, establishing fair market rent for the area and what the tenant can afford to pay. The goal is to be competitive with the local market thus incentivizing the owner to rent to low-income households.

Actions planned during the next year to address the needs to public housing Not applicable. There is no public housing within the city.

Actions to encourage public housing residents to become more involved in management and participate in homeownership
Not applicable. There is no public housing within the city.

If the PHA is designated as troubled, describe the manner in which financial assistance will be provided or other assistance
N/A
Discussion
N/A

Annual Action Plan 33
OMB Control No: 2506-0117 (exp. 09/30/2021)
AP-65 Homeless and Other Special Needs Activities – 91.220(i) Introduction
The County of Santa Clara and the City have identified homelessness as a critical issue. According to Santa Clara County’s 2023 Point-in-Time Census and Survey Comprehensive Report, there were 142 unsheltered homeless individuals in Milpitas, a notable 48% decrease. This decline indicates progress in addressing the homelessness crisis in the City. Nonetheless, the City remains committed to supporting individuals experiencing homelessness by providing essential resources. Recognizing the complexity of homelessness, interagency and interregional collaboration remains vital to developing effective solutions.

Describe the jurisdictions one-year goals and actions for reducing and ending homelessness including
Reaching out to homeless persons (especially unsheltered persons) and assessing their individual needs
The City currently partners with WeHope to deliver homeless outreach and engagement services, conduct VI-SPDAT assessments, and connect unhoused individuals to the County’s community queue for housing opportunities. These efforts, aligned with the City’s strategic plan, will be further strengthened by the goals and policies of the 2024 Housing Element, which focuses on addressing the needs of the unhoused population. As the agreement with WeHope approaches expiration, the City has issued a Request for Proposal (RFP) to identify a new agency to continue homeless outreach and assessment services.

The City of Milpitas continues to enhance homeless outreach and to better assess the unique housing and service needs of unhoused individuals and families through several key strategies:
1) Maintain outreach and respond promptly to the immediate needs of unhoused and at-risk populations through collaborative efforts with County staff and social service providers; 2) Seek funding for programs and facilities that support unhoused populations and households at risk of homelessness; and
3) Conduct a feasibility study to establish a low-barrier navigation center offering temporary housing and case management and implement recommendations such as site selection and funding identification as appropriate.

In addition, the City is collaborating with local jurisdictions to renew the County’s Community Plan to End Homelessness, with City Council set to endorse the updated plan.

Annual Action Plan 34
OMB Control No: 2506-0117 (exp. 09/30/2021)
Addressing the emergency shelter and transitional housing needs of homeless persons Despite limited resources and funding, the City of Milpitas takes a coordinated, resourceful approach to addressing the emergency and transitional housing needs of homeless individuals and families. The City partners across departments, including the Police Department, Office of Building Safety, Planning Department, and Public Works, as well as with local service providers such as the Milpitas Food Pantry and Hope for the Unhoused to maximize available support.

To further stretch limited resources, Milpitas implements goals, policies, and programs from the Housing Element, which prioritizes collaboration with regional agencies for supportive housing and services. Key strategies include:
1) Prioritizing permanent and transitional supportive housing, creating stable environments that help improve quality of life;
2) Maintaining and expanding crisis response beds, especially during extreme weather events; and 3) Providing or referring individuals to temporary housing with supportive programs to facilitate transitions from homelessness to permanent housing.

By leveraging partnerships and targeting resources, the City strives to meet immediate and long-term needs.

The City also works to address emergency and transitional housing needs by zoning for a variety of housing types, including emergency shelters, supportive housing, low-barrier navigation centers, and other interim housing options. This diversity in housing types helps make the most of available resources and provides flexible support for individuals at different stages of transitioning out of homelessness.

Helping homeless persons (especially chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth) make the transition to permanent housing and independent living, including shortening the period of time that individuals and families experience homelessness, facilitating access for homeless individuals and families to affordable housing units, and preventing individuals and families who were recently homeless from becoming homeless again
The City of Milpitas is dedicated to supporting homeless individuals and families as they transition to permanent housing and independent living, striving to prevent repeat homelessness. The City’s comprehensive strategy, guided by the 2024 Housing Element, outlines targeted goals, policies, and programs designed to address both the immediate and long-term housing and service needs of the unhoused. The key initiatives and actions are summarized below.

Annual Action Plan 35
OMB Control No: 2506-0117 (exp. 09/30/2021)
Goal HE-8: Foster collaboration with regional agencies and organizations to support Milpitas’ unhoused population through comprehensive services and supportive housing. The City will advance this goal through the following policies, strategies, and actions:
• Prioritize the development and preservation of permanent and transitional supportive housing to provide stable living environments and enhance quality of life for the unhoused population. • Maintain and expand access to crisis response beds, especially during periods of extreme weather, to ensure immediate safety and shelter.
• Facilitate access to temporary housing paired with robust support services, enabling unhoused individuals and families to successfully transition to permanent housing. • Aggressively pursue funding opportunities to support programs and facilities that assist unhoused populations and households at risk of homelessness, maximizing impact despite limited resources.
• Sustain robust outreach efforts and rapid response to the immediate needs of unhoused and atrisk populations through strong collaboration between City, County, and local service providers. • Conduct a feasibility study for establishing a low-barrier navigation center, such as a “tiny home village” to provide temporary housing and case management. Act on study recommendations by identifying suitable sites and securing necessary funding.

Given the City’s success with the first round of funding, the City will offer a round two of the Workforce Housing and Rental Assistance Program (WHRAP). This program offers twenty-eight households at or below 30% of the Housing and Community Development (HCD) Area Median Income (AMI) with twentyfour months of rental subsidies. The program is aimed at assisting and preventing displacement of extremely low income households.

Helping low-income individuals and families avoid becoming homeless, especially extremely low-income individuals and families and those who are: being discharged from publicly funded institutions and systems of care (such as health care facilities, mental health facilities, foster care and other youth facilities, and corrections programs and institutions); or, receiving assistance from public or private agencies that address housing, health, social services, employment, education, or youth needs.

The City does not currently have its own institutional discharge policy; instead, it partners with the Santa Clara County Continuum of Care (CoC), which has recently updated its Quality Assurance Standards to include a homeless discharge coordination policy. Through this collaboration, the City helps ensure that individuals are not discharged into homelessness by providing guidance and resources for those leaving institutions. The policy enables access to reentry resource centers, where VI-SPIDAT assessments can be conducted. These assessments evaluate an individual’s needs and inform the appropriate type of

Annual Action Plan 36
OMB Control No: 2506-0117 (exp. 09/30/2021)
support or housing. Additionally, the VI-SPIDAT serves as a gateway to further resources and supportive services, including residential or outpatient treatment, transitional housing, and emergency shelter.

To help low-income residents and families avoid housing instability and homelessness, the City implements a variety of strategies, policies, and programs. These efforts are outlined in the City’s 2024 Housing Element and summarized below.

Program 7: Tenant Assistance Services. The City will continue to work with qualified nonprofit organizations to deliver housing outreach and assistance, landlord-tenant mediation services, mortgage default counseling, and referrals to additional support services for Milpitas residents, landlords, and housing professionals. Planned actions include:
• Promote rental assistance programs with a goal of supporting 300 Milpitas residents, landlords, and housing professionals over the next eight years;
• Continue promoting housing services, aiming to support around 320 people annually through Project Sentinel’s outreach activities, informational workshops, phone assistance, and other resources;
• Continue to facilitate and ensure compliance with the California Tenant Protection Act of 2019, which regulates just cause evictions and limits annual rent increases; • Continue offering programs that supplement housing costs and reduce overall living expenses for lower- and moderate-income households, including the ongoing Milpitas Assistance Program (MAP); and
• Continue coordinating with the San Andreas Regional Center (SARC) to provide services, outreach, and referrals for tenants with disabilities.

Discussion
See discussion above.

Annual Action Plan 37
OMB Control No: 2506-0117 (exp. 09/30/2021)
AP-75 Barriers to affordable housing – 91.220(j)
Introduction:

In the FY 2023-31 Housing Element, the City identified the following governmental constraints/barriers impeding affordable housing development:
• General Plan Land Use Designations. Overall, the City’s land use designations do not pose a significant constraint on residential development, but the Town Center (TWC) and Neighborhood Commercial Mixed Use (NCMU) designations may be revised to better support housing production. Both districts have a commercial requirement, which may impede redevelopment of parcels in these zones with housing uses. • Zoning Ordinance. The City’s Zoning Ordinance has not been comprehensively updated to ensure consistency with the 2021 General Plan. The City planned to begin updating the comprehensive Zoning Ordinance in 2023, which was expected to be completed and adopted by 2024.
• Development Processing Procedures and Timing. The City completed a study to evaluate the development review and permitting process, implementing a number of actions to improve internal processes. Milpitas’ review and approval timelines are similar to average times taken by other jurisdictions in Santa Clara County and were found not to pose a significant constraint on housing development. However, many factors outside of a local jurisdiction’s control can constrain the timing between project approval and when the developer requests building permits, such as the inability to secure financing for construction or availability of design professionals to complete construction documents or make corrections. • Development fees. The City does provide fee deferrals for projects that provide on-site affordable housing units. Housing Programs 16 and 20 include actions to explore fee deferrals and waivers for affordable housing production. Compared to other cities in Santa Clara County, Milpitas has higher fees per unit for single- and multi-family developments. Milpitas has the highest Entitlement Fees in the County for single-family developments located within the Metro Specific Plan area.

Actions it planned to remove or ameliorate the negative effects of public policies that serve as barriers to affordable housing such as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charges, growth limitations, and policies affecting the return on residential investment
Strategy to Remove or Ameliorate the Barriers to Affordable Housing Strategies include:
• Completing a comprehensive update to the City’s General Plan and Land Use Element and

Annual Action Plan 38
OMB Control No: 2506-0117 (exp. 09/30/2021)
creating new mixed-use zones;
• Updating the Milpitas Metro Specific Plan and Milpitas Gateway-Main Street Specific Plan to support higher residential densities and building heights in locations adjacent to high quality transit.
• Adopting an Inclusionary housing ordinance (Affordable Housing Ordinance); and amending it to encourage more on-site construction of affordable units. • Adopting Zoning Ordinance amendments to address changes in State Law related to Accessory Dwelling Units, Two-Unit Developments (SB 9), and Objective Design Standards (SB 330).

Goal HE-3 in the City’s FY 2023-31 Housing Element addresses barriers to new housing production, specifically to continually assess the barriers to new housing production and proactively mitigate the governmental constraints to new housing development. Specific policies include:
• HE 3.1: Continually review and right-size development fees on housing development. Adjust or defer City fees for affordable housing development.
• HE 3.2: Track changes to State housing legislation and regularly update the City’s Zoning Ordinance to reduce barriers to housing production and incentivize affordable housing production.
• HE 3.3: Implement recommendations in the Housing Opportunity Zone (HOZ) study to reduce barriers to new affordable housing production, while balancing the need for convenient neighborhood-serving retail stores and services for existing and future residents. • HE 3.4: Maintain and implement the City’s Objective Design Standards for residential projects to streamline the development review process and increase predictability of review outcomes. • HE 3.5: Prioritize investment in transportation, infrastructure, and utility improvements to reduce development barriers and costs for producing affordable housing. • HE 3.6: Respond to changing market conditions and diverse housing needs, such as recognizing the need for limited term rentals (six months or less) for temporary employees and independent contractors or gig workers.
• HE 3.7: Support the adaptive reuse, renovation, conversion, or redevelopment of economically underutilized properties or buildings for residential or mixed-use development. • HE 3.8: Be a strong advocate for legislative change and funding/financing initiatives to support affordable housing.
• HE 3.9: Continue to streamline housing permitting and procedures consistent with State laws (e.g., AB 2234) and the City’s Service Delivery Study.

Additionally, the City’s “Adequate Sites and Housing Production” goal has two relevant policies to address barriers to affordable housing, including:
• HE 1.5: Facilitate the development of housing through the adoption of new zoning districts consistent with the General Plan, zoning incentives or waivers, development process

Annual Action Plan 39
OMB Control No: 2506-0117 (exp. 09/30/2021)
streamlining, and CEQA findings of consistency, especially affordable housing in high resource areas.
• HE 1.8: Regularly review the land use designations and zoning districts to encourage a variety of housing types to be developed at a range of densities to equitably serve households at all economic levels, and to meet the needs of large family households, the elderly, and people with disabilities.

Discussion:

Non-governmental constraints include:
• Cost and availability of land. The cost of land is a significant contributor to the overall cost of housing. Santa Clara County averages $508 per square foot for a small single-family unit and $264 per square foot for a large single-family unit. The average cost for a multi-family unit in Santa Clara County is about $60,000.
• Construction costs. The cost of construction, including labor and materials, has a significant impact on the overall cost of new housing units and can be a significant constraint to development. In 2021, average construction costs ranged from approximately $260 per square foot for a mid-rise, seven-story multifamily project to approximately $300 for a twelve-story, high-rise multifamily residential project in Milpitas. Assuming an average unit size of 1,200 square feet (including common areas), these estimates result in construction costs ranging from approximately $312,000 to $360,000 per unit in Milpitas. The high land and development costs in Milpitas mean that, without subsidies, new rental units affordable to very low and lowincome households are difficult to provide at a feasible rate of return to a developer or investor.

This also tends to hold true for for-sale housing at the moderate-income level. • Mortgage and rehabilitation financing. The City of Milpitas does not vary greatly from other communities regarding the availability of home financing. In 2020, 69% of conventional purchase loan applications were approved, and 10% were denied. The denial rate was highest for home improvement loans at 33%. In a housing market such as Milpitas, the downpayment requirement may be a greater obstacle to homeownership for many households. As of March 2022, Redfin estimates that average home price in Milpitas was $1,450,000. To provide a 10% down payment, a household would need to save $145,000. Current home mortgage interest rates for home loans are steadily increasing for a 30-year fixed-rate mortgage. This means that prospective homebuyers will be less likely to qualify for home loans under the more stringent current lending standards.
• Environmental constraints. The City identified several environmental constraints that may act as barriers to affordable housing development, including geologic and seismic hazards, fire and flood hazards, and sea-level rise.

Annual Action Plan 40
OMB Control No: 2506-0117 (exp. 09/30/2021)
AP-85 Other Actions – 91.220(k)
Introduction:

This section discusses efforts in addressing the underserved needs, expanding and preserving affordable housing, reducing lead-based paint hazards, developing an institutional structure for delivering housing and community development activities, and planning to enhance coordination between public and private housing and social services agencies.

Actions planned to address obstacles to meeting underserved needs The primary challenge in addressing underserved needs for FY 2026-27 is the insufficient availability of federal, state, and local funding to support essential programs, activities, and projects.

The City contributes to meeting underserved needs with other resources and funds, such as:
• The City of Milpitas Affordable Housing Fund primarily supports the development of new affordable housing units. Funded through fees collected from developers under Affordable Housing Ordinance 297, this resource has enabled initiatives such as the Pilot Rent Relief Program.
• The City currently funds an Emergency Motel Stay Program. • In February 2023, the City received approval for its Permanent Local Housing Allocation (PLHA) entitlement. This grant will help fund homeless outreach and assessment services for the next three years and will also support the creation of a Workforce Housing Rental Assistance Program. This program will offset tenant rent for periods longer than six months for households with incomes at or below 30% of Area Median Income (AMI). • In September 2022, the City Council accepted Assemblymember Lee’s one-time state funding request, securing $1,500,000 for homelessness prevention and services for unhoused residents.

Although the funding covers these programs, the original request also sought support for mobile shower and laundry services, additional rent relief, and the creation of a Milpitas Resource Center.

Actions planned to foster and maintain affordable housing The City has taken proactive steps to help decrease the barriers to affordable housing through the following resolutions/ordinances:

Resolution No. 8523
The City adopted Resolution No. 8523 on February 2, 2016, which recognizes homelessness as a crucial problem in the County and will consider contributing to future affordable housing projects that will

Annual Action Plan 41
OMB Control No: 2506-0117 (exp. 09/30/2021)
house the homeless. The City is in discussion to create its first 100% permanent supporting housing project in Milpitas.

Affordable Housing Ordinance
On June 12, 2018, the City Council adopted Affordable Housing Ordinance No. 297 which requires that any new development with 10 or more units must include 15% of the units these units as affordable.

The ordinance applies to both rental and ownership developments. In January 2022, the City Council approved changes to the Affordable Housing Ordinance to encourage more on-site affordable housing production. The City Council also adopted changes to add clarity and consistency throughout the ordinance.

Density Bonus Ordinance
To attract developers to build affordable units, the Density Bonus Ordinance will allow developers the ability to build above their permitted densities in permitted zoning districts in exchange for the provision of affordable units in the development.

Below Market Rate Ownership
The City manages a Below Market Rate (BMR) Home Ownership program for first-time, income-qualified homebuyers. Once a unit from the current BMR housing stock becomes available, the homebuyer will have the ability to purchase a home in Milpitas at one of the various developments throughout the City.

Actions planned to reduce lead-based paint hazards
The County of Santa Clara has received funding from the State’s Department of Health Service and the Federal Government for the Center for Disease Control to implement a Childhood Lead Poisoning Prevention Program. The funded programs include community outreach screens, case management, and public education to inform low-to-moderate income and older communities. The project will then follow up with environmental testing, lead-based education, blood-lead testing for children, hazard reduction grants, and follow up with monitoring and testing.

Milpitas has adopted a Lead-Based Paint Management Plan which complies with HUD-Based Paint regulations, which outlines the required states of abatement and remediation for rehabilitation projects.

In addition, the City publicizes and identifies lead-based hazards and older residential projects through its Code Enforcement Division and Building Department.

Home rehabilitation projects that are federally funded also require testing for lead-based paints.

Residential structures not meeting lead-based paint regulations will go through the process of abatement and remediation of lead-based hazards.

Annual Action Plan 42
OMB Control No: 2506-0117 (exp. 09/30/2021)
Actions planned to reduce the number of poverty-level families The City of Milpitas will follow these actions:
• Work with non-profit housing developers to fund and provide more affordable housing opportunities to address the housing crisis and needs of very low and low-income households. • Provide funding and supportive services to prevent very low-income people and families from becoming homeless and assist them in ending the cycle of homelessness. Programs such as the Rent Relief Program and the Workforce Housing Rental Assistance Program (WHRAP) help poverty-level families stay housed.
• Provide funding for a variety of services and referrals to assist people in obtaining access to public assistance to prevent poverty. This is typically done through funding various non-profit organizations.

Actions planned to develop institutional structure
The City is working to strengthen collaboration between government agencies and the private sector, aiming to combine efforts and resources and generate new funding for community services and affordable housing. Key collaborative initiatives include:
• Regular monthly meetings among entitlement jurisdictions through the CDBG Coordinators Meeting and the Regional Housing Working Group
• Joint jurisdiction Requests for Proposals and shared project review committees • Coordinated project management for initiatives funded by multiple jurisdictions.

Actions planned to enhance coordination between public and private housing and social service agencies
The City benefits from a strong jurisdiction and region-wide network of housing and community development partners, such as the County and the CoC. To improve intergovernmental and private sector cooperation, the City will continue to participate with other local jurisdictions and developers in sharing information and resources.

Discussion:

See discussion above.

Annual Action Plan 43
OMB Control No: 2506-0117 (exp. 09/30/2021)
Program Specific Requirements
AP-90 Program Specific Requirements – 91.220(l)(1,2,4)
Introduction:

Projects planned with all CDBG funds expected to be available during the year are identified in the Projects Table. The following identifies program income that is available for use that is included in projects to be carried out.

Community Development Block Grant Program (CDBG)
Reference 24 CFR 91.220(l)(1)
Projects planned with all CDBG funds expected to be available during the year are identified in the Projects Table. The following identifies program income that is available for use that is included in projects to be carried out.

1. The total amount of program income that will have been received before the start of the next program year and that has not yet been reprogrammed 0 2. The amount of proceeds from section 108 loan guarantees that will be used during the year to address the priority needs and specific objectives identified in the grantee's strategic plan
0 3. The amount of surplus funds from urban renewal settlements 0

4. The amount of any grant funds returned to the line of credit for which the planned use has not been included in a prior statement or plan. 0 5. The amount of income from float-funded activities 0 Total Program Income 0
Other CDBG Requirements

1. The amount of urgent need activities 0

Applicant Activity Applicant
Request
CDBG
FY25-26
CDBG
FY26-27
Entitlement
CDBG
Program
Income (RLF)
Prior Year
Unused
Funding
Total Funding
538,212.00 294,687.64 116,072.35 948,971.99
Catholic Charities Long-Term Ombudsman Program (LTCOP) 11,000.00 11,000.00 $11,000.00 $1,531.00 $0.00 $12,531.00 Child Advocates of Silicon Valley Advocacy Program for Foster Youth in Milpitas 15,000.00 11,000.00 $14,683.80 $1,531.00 $0.00 $16,214.80 Next Door Solutions to Domestic Violence Social Services for Survivors of Domestic Violence 13,000.00 12,250.00 $13,000.00 $1,531.00 $0.00 $14,531.00 Project Sentinel Tenant-Landlord Counseling & Fair Housing 25,000.00 15,968.89 $0.00 $26,536.93 $0.00 $26,536.93 Senior Adults Legal Assistance Legal Assistance to Seniors 15,000.00 11,000.00 $15,000.00 $1,531.00 $0.00 $16,531.00 Silicon Valley Independent Living Center Housing Services for People with Disabilities 16,048.00 11,000.00 $16,048.00 $1,531.00 $0.00 $17,579.00 Sourcewise Sourcewise Meals on Wheels 11,000.00 11,000.00 $11,000.00 $1,531.00 $0.00 $12,531.00 YWCA Domestic Violence Support Services 18,000.00 12,250.00 $0.00 $19,531.00 $0.00 $19,531.00 Subtotal $124,048.00 $95,468.89 $80,731.80 $55,253.93 $0.00 $135,985.73 City of Milpitas Microenterprise Assistance Program 160,000.00 373,581.36 64,226.52 $95,773.48 $101,683.63 $261,683.63 Upwards Home Childcare Provider
Technical Assistance 64,000.00 0.00 $0.00 $0.00 $0.00 $0.00 Subtotal $224,000.00 $0.00 $64,226.52 $95,773.48 $101,683.63 $261,683.63 Rebuilding Together Critical Home Repairs 216,000.00 385,000.00 200,000.00 $0.00 $0.00 $200,000.00 Terrace Gardens Fire Panel Repairs 150,000.00 0.00 0.00 $143,660.23 $0.00 $143,660.23 Terrace Gardens Emergency Pull Cord Repairs 100,000.00 0.00 85,611.28 $0.00 $14,388.72 $100,000.00 Subtotal $466,000.00 $385,000.00 $285,611.28 $143,660.23 $14,388.72 $443,660.23 Program Admin (20% Cap) Program Administration CDBG Administration 0.00 111,074.80 $107,642.40 $0.00 $0.00 $107,642.40 Subtotal 0.00 $111,074.80 $107,642.40 $0.00 $0.00 $107,642.40 Totals 814,048.00 $591,543.69 $538,212.00 $294,687.64 $116,072.35 $948,971.99 Public Services (15% Cap) Capital (No Cap) Economic Development (No Cap)

CITY OF MILPITAS

AGENDA REPORT
(AR)
Item Title: Adopt a Resolution Approving a Site Development Permit, Vesting Tentative Map, Density Bonus Permit, and Environmental Assessment for 134 Townhome Condominiums and one Clubhouse Amenity Building at 600 Valley Way (Staff Contact: Jay Lee, Planning Director, 408-586-3077)
Category: Public Hearings-Community Development
Meeting Date: 6/16/2026
Recommendation: (1) Consider the Project to be categorically exempt from environmental review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Sections 15162 (Subsequent EIRs and Negative Declarations) and 15182 (Residential Projects Pursuant to a Specific Plan); and (2) Adopt a Resolution approving Site Development Permit No. SD24-0005, Vesting Tentative Map No.

MT24-0002, Density Bonus Permit No. DB24-0001, and Environmental Assessment No. EA24-0003, subject to the Conditions of Approval.

BACKGROUND:

In 2021, the City initiated an update to the Milpitas Midtown Specific Plan, originally adopted by City Council in 2002 and updated in 2010 to maximize land use, transportation, and economic opportunities along the City’s historic Main Street and to energize and catalyze mixed-use, transit-oriented development in the Midtown area, also known as the “heart” of Milpitas. The update included renaming the Midtown Specific Plan to “Milpitas Gateway-Main Street Specific Plan” (MGSP).

The MGSP established new zoning districts to achieve the plan’s vision, strategies, and policies by providing clear but flexible development standards to facilitate redevelopment. The update also included a change to the MGSP area boundaries to annex several areas that would benefit from inclusion into the MGSP. On October 28, 2025, the City Council adopted the MGSP and certified the associated Subsequent Environmental Impact Report, including Specific Plan Amendment No. SP20-0002, Zoning Text and Map Amendment No. ZA25-0002 (with Ordinance No. 38.859 first introduced on this date and adopted at a second reading by the City Council on November 18, 2025), and General Plan Amendment No. GP25-0002.

On January 7, 2026, The Sobrato Organization “Sobrato” (Property Owner/Applicant) submitted a preliminary application pursuant to California SB 330 (Housing Crisis Act of 2019) requesting a Site Development Permit, Vesting Tentative Map, Density Bonus Permit, and Environmental Assessment to redevelop the site into a 134- unit townhome condominium subdivision with a clubhouse building, landscaping, and associated site improvements on a 7.22-acre site located in the Gateway Mixed-Use (GW-MU) Zoning District of the MGSP area at 600 Valley Way (the “Project”)1. On March 20, 2026, Sobrato submitted a formal application within the required SB 330 submittal timelines for the same townhome housing development. The Project site was previously identified as a Rezone Site for future housing under the City’s 2023-2031 Housing Element Update, certified by the California Department of Housing and Community Development (HCD) in 2023.

The following is a summary of the Applicant’s entitlements:

1. Site Development Permit No. SD24-0005: To allow the development of 24 multi-family buildings, up to 1 The Applicant originally submitted for the proposed Project’s entitlements on November 18, 2024, which required the submittal of a General Plan Amendment (GPA) and Zoning Amendment (ZA) at the time to begin early inter-departmental review of the Project. After the MGSP was formally adopted in late Fall 2025, the GPA and ZA request were deemed void.

The Applicant shortly thereafter invoked SB 330 in early January 2026, starting new formal timelines for the requested Project entitlements.

three stories in height, with up to 134 residential units and a one-story clubhouse amenity building on the 7.22-acre site per MMC XIII-D.4.020 (Site Development Permits); and

2. Vesting Tentative Map No. MT24-0002: To combine three lots into one lot, establish 134 residential condominium spaces, related common areas, and associated easements per MMC Section XI-1-4.00 (Filing and Approval of Tentative Map); and

3. Density Bonus Permit No. DB24-0001: To ensure compliance with State Density Bonus Law and the Project’s eligibility for certain waivers and one concession under State Density Bonus Law. See MMC Sections XIII-C.12.010 et seq. (Density Bonus for Affordable Housing Developments).

In addition to the above entitlements, the City prepared Environmental Assessment No. EA24-0003 with a Project-specific Environmental Checklist (Attachment B) to establish California Environmental Quality Act (CEQA) compliance to consider the Project’s CEQA exemption pursuant to its conformance with the GatewayMain Street Specific Plan Subsequent Environmental Impact Report (EIR) (SCH No. 2024070432) in accordance with CEQA Guidelines Sections 15162 (Subsequent EIRs and Negative Declarations) and 15182 (Projects Pursuant to a Specific Plan). The supporting technical studies for this document are included as Attachment C.

California Senate Bill 330 (SB 330) is a statewide bill intended to reduce the time to approve housing developments in California. It became effective on January 1, 2020, and Senate Bill 8 (SB 8) recently extended the Act through January 1, 2030. Under SB 330, eligible projects receive enhanced streamlining and vesting opportunities by filing a preliminary application.

Through the Housing Accountability Act, the state requires a local jurisdiction to approve housing consistent with applicable, objective land use standards. Under the State Density Bonus Law, the state also requires a local jurisdiction to approve waivers and concessions for projects that meet certain affordability requirements.

Consistent with state law, planning staff have determined that the Project is consistent with applicable, objective design standards and qualifies for certain waivers, incentives, or concessions under the State Density Bonus Law. As provided under SB 330, a local government agency can deny an eligible housing project only if there is strong evidence that denial is the only way to avoid an adverse impact on public health and safety.

On May 27, 2026, the Planning Commission (PC) held a public hearing to consider the proposed Project. After receiving a presentation from staff, hearing from the Applicant and the public, the PC closed the public hearing and voted 4-0, with three Commissioners absent, recommending that the Milpitas City Council approve the Project with the adoption of Resolution No. 26-009 with a clerical revision to Condition of Approval 76. Copies of the Project’s PC staff report, resolution, and meeting minutes are included as Attachments D, E, and J, respectively.

Based on public comments received during the hearing and as detailed in the PC meeting minutes, the Planning Commission also made a separate motion to include three recommendations forwarded to the City Council, including:
1) The Applicant work with staff and provide additional information demonstrating why the proposed trash enclosure location is necessary and whether alternative locations would physically preclude development at the density permitted under State Density Bonus Law; 2) The Applicant work with the Public Works Department regarding evaluation of the four trees discussed during the public hearing and determine whether removal or relocation is feasible and consistent with City requirements; and
3) The Applicant continue coordinating with City staff and the City Attorney’s Office regarding the three proposed Conditions of Approval revisions not recommended by staff and provide any additional factual basis or supporting information prior to City Council consideration.

Subsequently, the Applicant actively worked with neighboring property owner and City staff on the three aforementioned PC recommendations and has (1) provided additional detailed documentation and analysis for how the proposed trash enclosure location cannot be feasibly moved to another alternative location such as the west or south property lines due to a PG&E easement along both sides and a potential relocation to the northwest corner of the lot would still be adjacent to other single-family residences to the north, (2) met with the

adjacent property owner on potential alternatives to the tree concerns and the Applicant has revised the proposed tree planting plan to remove three out of the four trees with one tree retained in a location the adjacent property owner discussed could be kept and replaced the tree species to Magnolia from Sycamore in the same area, with the Applicant revising applicable landscaping sheets to reflect these changes and worked with the Public Works Department to receive issuance of the Project’s Tree Removal Permit on June 11, 2026, and (3) coordinated with the City Attorney’s Office and have included additional language on compliance with State laws in the beginning of the Conditions of Approval (COA) (Exhibit 1 of Attachment A) and have agreed upon modifications to COA #12, Indemnification, and have removed the third revision request to COA #104, Water Supply and Force Majeure. The Applicant has provided a response letter detailing the above summary including diagrams and e-mail correspondence with the Public Works Department (Attachment K), and provided a follow-up letter from the Applicant’s legal firm in response to discussion items from the PC hearing further substantiating the Project’s protections under state housing law and SDBL waivers (Attachment L).

ANALYSIS:

Project Location
The Project site is generally flat on a 7.22-acre site located west of Valley Way at the end of a cul-de-sac and south of Heath Street. Interstate Highway 880 (I-880) abuts the site to the west, an existing single-family residential neighborhood is located to the north, and a mix of retail and commercial uses are to the south and east. The Project site is located within the Gateway District within the northwest boundary of the MGSP and is zoned Gateway-Mixed Use (GW-MU) with neighboring parcels south and east also zoned GW-MU. The parcels north of the Project site are not within the MGSP and are zoned single-family residential. An aerial map of the Project site location is shown on Map 1 below.

Map 1 – Project Location
Existing Condition and Project Context
The site currently has five existing one- to two-story buildings and surface parking lots that were constructed in the 1970s by Sobrato and leased spaces to various non-profit organizations. Sobrato recognized the site was suitable for redevelopment as the existing condition of the buildings were deteriorating and the buildings had a low occupancy rate. Tenants also shifted to a telecommuting policy during the global COVID-19 pandemic which further reduced the active use of the buildings in the early 2020s. As the City initiated the MGSP in 2021, Sobrato expressed interest to the City in redeveloping the site with housing and was subsequently identified in the City’s 2023-2031 Housing Element Update as a Rezone Site.

If the Project’s entitlement requests receive final approval by the City Council, the Applicant will be required to separately obtain from the Office of Building Safety a demolition permit to allow for demolition of all existing structures, and a building permit to allow for construction of the Project. In anticipation of the redevelopment of the site, Sobrato conducted extensive voluntary outreach over the years to all existing nonprofit tenants to assist in relocation, including meetings, surveys, grants, and options to move into another Sobrato non-profit center in various other nearby South Bay locations. All tenants were vacated by the end of 2025 in anticipation of construction of the proposed Project with demolition potentially occurring in the latter half of 2026.

Project Overview
The Sobrato Organization “Sobrato” (Property Owner/Applicant), submitted a formal SB 330 application in March 2026 for a Site Development Permit, Vesting Tentative Map, Density Bonus Permit, and Environmental Assessment to allow the development of a 134-unit townhome condominium subdivision, comprised of 24 multi-family buildings up to 38-feet in height (three stories) (up to a maximum height of 45-feet to the top of the highest architectural element used as a ladder roof access tower for maintenance only) with a one-story, 2,182-square foot clubhouse, landscaping, and associated site improvements including private alleyways and outdoor amenity spaces on a 7.22-acre site located at 600 Valley Way (APNs 222-80-022, -024, -025) in the MGSP area. The Project’s vesting tentative map application for a major subdivision would combine three lots into one irregular-shaped lot for the condominium units, private streets, related common areas, easements, and other shared site improvements to support the future residents.

The proposed townhomes consist of three (3) unit types, ranging from approximately 1,326 to 2,013-square feet of habitable space, each with a three-bed/three-bath or four-bed/four-bath configuration including an attached two-car private garage in tandem or zipper (side-by-side) parking for each unit. The Project provides a total of 328 vehicle parking spaces (268 spaces within a garage, 60 guest onsite surface parking spaces). In total, the proposed Project will provide approximately 307,102-gross square feet of new residential development.

The one-story clubhouse will be located near the center of the site, serving as the community hub providing a space for gatherings and a management office. New pedestrian walkways, paseos, alleyways, and streets would provide access within the Project site to the proposed townhomes. The Project proposes other site and mobility improvements required in the MGSP to improve neighborhood connections between communities and reduce barriers. A centrally located open space spine will serve as the Project’s main connecting publicly accessible pedestrian paseo and would provide connectivity to the adjacent single-family residential neighborhood to the north and nearby commercial areas through the Project site as a future “greenway” connection as required in the MGSP for the site.
20 of the 134 units will be reserved for moderate-income households in conformance with the City’s Affordable Housing Ordinance (AHO). The Project qualifies for concessions, waivers, and parking reductions under the State Density Bonus Law (SDBL). Additional details of the Project’s design and compliance with the AHO, SDBL, and other applicable regulations are detailed in the upcoming sections of the agenda report.

Milpitas General Plan 2040
The General Plan designation for the Project site is Milpitas Gateway-Main St. Specific Plan (MGSP). The proposed Project is in conformance with the applicable policies and standards in the City's General Plan, as outlined in Table 1.

Table 1: General Plan Consistency
Policy Conformance
Policy LU 1-4: Continue to provide for a
variety of housing types and densities that
meet the needs of individuals and families and
offer residents of all income levels, age
groups, and special needs sufficient housing
opportunities and choices for locating in
Consistent. The Project will provide 134 new
three- to four-bedroom for sale townhome
condominiums in three (3) unit type floor plans
with modern design elements such as
including a minimum of three bathrooms and
private balconies in each unit. The Project will

Policy Conformance
Milpitas. also provide housing opportunities with those with special needs by providing at least 10
percent of the total units (14 units) as
accessible (ADA) units. Additionally, 20 of the
residential units will be reserved for moderateincome households in compliance with the City’s AHO.

Policy LU 2-1: Utilize Specific Plans to guide
development within Milpitas’s special planning
areas. Properties located within Specific Plan
areas shall conform to the underlying Specific
Plan’s land uses, zoning, and development
standards.

Consistent. The MGSP establishes four new
zoning districts to align with the development
goals of the MGSP’s four focus areas and
incentivize redevelopment. The Project site is
within one of the identified focus areas in the
Gateway Mixed-Use (GW-MU) Zoning District
and was evaluated and designed in
conformance to the MGSP’s land uses,
zoning, and development standards including
meeting the majority of the site’s main
standards shown for MGSP Figure 3-6,
Gateway District Regulating Plan for the
Project site area. The Project requests minor
deviations to some subsections of these
standards using the State Density Bonus Law.

Policy LU 5-1: Require new development and
redevelopment to be compatible,
complementary and, where appropriate, well
integrated with existing residential areas.

Integrate new largescale development
projects into the fabric of the existing
community rather than allowing projects to be
insular and self-contained, walled off, or
physically divided from surrounding uses.

Improve connectivity between neighborhoods
and services with new development. Tie
circulation systems and open spaces into
existing streets and open spaces. Reduce
unnecessary barriers and improve
connections between neighborhoods and
services by retrofitting existing development
over time as area improvements or
redevelopment occurs.

Consistent. The Project, as proposed, is well
integrated with the existing residential,
commercial, and mixed-use developments.

The overall scale, bulk, and height of the
Project is compatible with the existing one- to
two-story single-family residences to the
north. Although the GW-MU zoning district
allows for buildings with a maximum of up to
5-stories and 65-feet in height, the Project is
proposing all 24 residential buildings to be a
maximum of three-stories (up to a roof height
of 38-feet to 45-feet to the top of an
architectural element).

Additionally, the Project was designed to meet
the MGSP requirement for a new greenway
connection described as the “central open
spine” in the Project Description. This new
greenway will provide a new publicly
accessible pathway from Valley Way to Health
Street to integrate the new development with
existing neighborhoods and reduce existing
physical barriers between the commercial and
residential areas.

Furthermore, the proposed Project will also tie
circulation systems and open spaces into
existing streets and open spaces by providing
a new internal circulation system within the
development along with the greenway which
will lead to the three pocket parks and

Policy Conformance
clubhouse amenity building, and will include
on and offsite public improvements.

Policy LU 5-3: Ensure new development is
consistent with specific height limits
established within the City's Zoning
Ordinance as applied through the zoning
district for all properties within the City.

Consistent. The Project meets the height
standards by proposing one, single-story
clubhouse building and 24 residential
buildings that are three stories each, up to 38-
feet in height to the top of roof and up to a
maximum of 45-feet to the top of an
architectural element in the GW-MU zoning
district, which allows a maximum height of 65-
feet and 5-stories.

Milpitas Gateway-Main Street Specific Plan (MGSP)
The MGSP vision and strategies are organized into (4) focus areas or districts: (1) Crossroads (2) Main Street, (3) Gateway, and (4) Abbott. The MGSP is envisioned as a group of neighborhoods that together create a complete community and center for Milpitas. New Infill housing and mixed-use development will be paired with complete streets, new urban open spaces, and placemaking to distinguish the MGSP area as a walkable and bike-friendly urban community.

The Project site is within the Gateway District, one of the MGSP’s four focus areas and the proposed Project supports the purpose and intent of this district. The Project also complies with an MGSP Guiding Principle to integrate a mix of housing types, scales, and affordability and the Gateway District Vision for a highly visible community commercial node along Calaveras Boulevard with neighborhood-scale residential development north of Calaveras Boulevard. The Project, which will redevelop an underutilized site, will provide 134, threestory condominium townhomes and a one-story clubhouse with other open space amenities for all ages.

Additionally, 20 of the 134 townhomes will be reserved for moderate-income affordable units. Improvements include the on- and off-site public improvements such as constructing new sidewalks and reconstructing existing City sidewalks, including infilling sidewalk gaps along the Valley Way cul-de-sac, roadway resurfacing, and constructing a new internal circulation network with new native landscaping and tree lined pedestrian pathways built to modern code requirements. Furthermore, the Project will introduce more residents to the immediate area who may utilize and support local business operations at nearby retail stores and commercial shopping centers.

Milpitas Zoning Ordinance
The Project site is located in the Gateway Mixed-Use (GW-MU) Zoning District within the MGSP. Per the Zoning Ordinance, the GW-MU Zoning District supports a freeway and commercial corridor service orientation along Calaveras Boulevard and I-880, transitioning to a neighborhood-oriented residential focus to the north, and a commercial/mixed-use focus adjacent to Crossroads Mixed-Use. Development shall comply with the standards of MGSP Section 3.7.3, Gateway District, including MGSP Figure 3-6, Gateway District Regulating Plan.

Table 2 describes the proposed Project’s conformance or consistency with the development standards in the Zoning Ordinance for the MGSP GW-MU Zoning District. MGSP Chapter 4 includes specific objective design standards tailored to the plan area (MGSP ODS) to provide criteria for site planning, urban form, building design, and pedestrian-level design.

Where the Project is not in compliance with any of the aforementioned standards, the State Density Bonus Law (SDBL) requires the City to grant appropriate concessions, waivers, and parking reductions for qualifying projects, as further described in Table 3.

Table 2: Summary of MGSP GW-MU Zoning District Development Standards Development
Standard
(GW-MU)
Required Proposed Conformance
Density 18-65 du/ac 19 du/ac; 134 units total Yes
Floor Area
Ratio 2.0 (Max.) 0.98 FAR Yes
Front Yard
Setback
(Min. – Max.)
Valley Way
5 ft. (min.) -
12 ft. (max.)
Four Proposed Buildings #16, 18, 22 and 24
front Valley Way. All four meet minimum 5-ft.
front setback; three exceed 12-ft. maximum
front yard setback as follows:

Bldg. 16: 15’-5” ft., Bldg. 18: 13’-5” ft., Bldg.
24: 14’-3” ft.

Yes, with
approval of a
SDBL waiver
for max. front
yard setback
for three (3)
buildings
Interior Side
Yard
Setback
(East Side)
0 ft. (min.) 10’-3” to 13’-6” Yes
Interior Side
Setback
Adjacent to
SingleFamily
Residential
10 feet; also
see MGSP
Section 4.1.3
A
6’ (Trash Enclosure)
28’-5” to 38’ (Townhomes on North Side)
Yes, with
approval of a
SDBL waiver
for the side
setback for the
trash
enclosure
Interior Rear
Yard
Setback
Along
Freeway
Edge
MGSP
Section

4.1.3(B): Min.
60 feet from
edge of
freeway rightof-way
99’-2” to 144’ Yes
Height (Max.) 65 ft. and five
(5) stories
38 ft. to top of roof (45 ft. max to tallest
architectural feature), three (3) stories Yes
Common
Outdoor
Open Space
6+ units
requires
minimum 60
S.F/unit
Minimum area
for common
open space
shall be 1,000
S.F., with a
min.
dimension of
40 ft. x 25 ft.

The proposed Project incorporates several
outdoor amenity areas including but not
limited to bocce ball court, turf activity areas
for open lawn and play areas, native
landscaping, trellises, and picnic tables.

Total Required: 8,040 S.F.

Total Provided: 9,974 S.F.

Yes

Development
Standard
(GW-MU)
Required Proposed Conformance
Private Open
Space
6+ units
require
minimum 40
S.F./unit
Minimum
dimension of
5-feet in all
directions
Each unit has a private ground level porch or
patio meeting the minimum dimensional and
size requirements. Some units also have a
private upper deck.

Total Required: 5,360 S.F.

Total Provided: 13,967 S.F.

Yes
Vehicle
Parking
(Min.)
Off-street
parking: 1.5
spaces per
unit; plus 1.0
guest parking
space per 3
units
Total Required: Off-street parking - 201
stalls (1.5 spaces x 134 units); Guest
parking 45 stalls (134 units/1 guest stall per
3 units)
Total Provided: 268 stalls (2 private spaces
per unit in each garage); 60 guest parking
stalls
Yes
Bicycle
Parking

0.5 spaces
per unit
Total Required: 134 units x 0.5 bicycle stalls
per unit = 67 bicycle stalls
Total Provided: 134 long-term indoor bicycle
parking stalls (one in each unit’s garage), 12
short-term outdoor bicycle stalls
Yes
In addition to meeting the standards outlined above, the Project is consistent with most of the applicable MGSP ODS criteria, some of which directly refer to a standard from the City ODS or ZO. Attachments G and H provide a detailed compliance matrix of all MGSP ODS and City ODS requirements with the associated SDBL letter request explaining why relief to some standards are needed.

Objective Design Standards
The City adopted its Residential and Mixed-Use Objective Design Standards (ODS) on November 1, 2022, to facilitate project designs by establishing objective development and design standards for all multi-family and mixed-use projects. The ODS are intended to bring consistency and clarity to project review and permitting while eliminating subjectivity to provide uniform language. The proposed Project is classified as a Large project type and a “Medium” building type. While full compliance with the ODS is only required for projects seeking permit streamlining (i.e., ministerial review), all projects proposing two or more dwelling units must demonstrate how it meets the intent and purpose of the ODS.

Although the Applicant is not seeking ministerial review and invoked SB 330, the proposed Project was required to demonstrate compliance with all MGSP ODS as well as complying or meeting the intent of all City ODS. Refer to Attachment H for the Project’s compliance analysis, which demonstrates the Project is consistent or meets the intent with most of the applicable MGSP ODS and City ODS. In conclusion, the Project is considered compliant because it conforms or meets the intent of all applicable ODS standards, other than those that the Applicant has requested to use a concession or waiver per the SDBL, as detailed in the following section.

State Density Bonus Law
State Density Bonus Law (Gov. Code § 65915 et seq.) incentivizes affordable housing by offering developers certain benefits. According to State Density Bonus Law (SDBL), developers that reserve a certain minimum percentage of total units as below-market rate units at lower or moderate-income levels as identified in the SDBL are entitled to waivers, concessions, and incentives (which include parking reductions). The City cannot

deny a waiver, concession, or incentive unless it can demonstrate the exception will not result in an identifiable cost reduction for the project, have a specific adverse impact upon public health and safety (per Section 50052.5 of the California Health and Safety Code), would be prohibited by CEQA (Pub. Resources Code, § 21000 et seq.), or otherwise be contrary to state or federal law.

The proposed Project qualifies for waivers and one concession under SDBL because more than 10 percent of total units will be reserved as affordable units for moderate-income households. Table 3 below lists the request for one (1) concession and 10 waivers for the proposed Project, as detailed in the Applicant’s SDBL Letter (Attachment G) and MGSP/ODS Compliance Matrix (Attachment H).

Table 3: State Density Bonus – Proposed Project Concessions, Waivers, and Incentives SDBL
Waiver/Concession Regulating Objective Development Standard Subsection Concession #1 ODS Section 5.3.1 – Fenestration Design – 2-inch Recessed Windows Waiver #1 MGSP Section 3.7.3 - Max. Front Setback
Waiver #2 MGSP Section 3.7.3 - Interior Side Setback Adj. to Single-Family Residential for Trash Enclosure
Waiver #3 MGSP Section 3.7.3(1)(a) - Min. 60% Building Frontage Waiver #4 MGSP Section 4.1.3(B)(1) - Adjacent to Freeways – Double Row of Trees Waiver #5 MGSP Section 5.3.9 - Future Service Alleys
Waiver #6 ODS Section 3.9.1.3 – Planting (Spacing of Trees/Shrubs) Waiver #7 ODS Section 3.9.3.3 - Adjacent to Freeways – Double Row of Trees Waiver #8 ODS Section 4.1.3.6 - Open Space Quality – Min. of 40-ft in width and depth Waiver #9 ZO Section C.2.120 - Refuge and Recycling Areas – E.6 Enclosures – Location Waiver #10 ZO Section C.6.080.D - Size and Dimensions of Parking Spaces – Parallel Parking Spaces and Dimensions for Guest Parking
The Applicant’s SDBL requests are summarized below. The Project’s proposed plan set for the requested entitlements were reviewed by the City’s Building, Fire, Engineering, and Planning Departments and did not identify any specific, adverse health and safety impacts for the SDBL requests. • Concession #1 is requested by the Applicant regarding the ODS Section 5.3.1 requirement for the fenestration design of windows to all be recessed a minimum of 2-inches. The Project proposes to include the 2-inch recessed windows along the residential building elevations fronting the main entryway to the units via publicly accessible pathways and open space areas only, and requests a relief to the requirement for elevations facing private alleyways as full compliance would add significant construction costs. The Applicant has identified an actual cost reduction the Project will need to ensure financial feasibility to construct the Project and provide for the affordable units, with estimated construction costs to be approximately $620 per recessed window with over 1,000 windows potentially subject to this requirement. • Waivers #1 and #3 are requested as the City’s MMC requirements for a new subdivision will require the dedication of new 10-ft. Public Utility Easement (PUE) along the front setback along the Valley Way cul-desac, which prohibits permanent physical structures being constructed within the PUE. Three buildings along the front will exceed the maximum front yard setback of 12-ft. by a minor range of 1.5-3.5-ft. and will not be able to meet the minimum 60 percent building frontage requirements due to the angle the buildings are oriented and placed as the lot is irregularly-shaped and along a cul-de-sac frontage. • Waivers #2 and #9 involve the proposed interior yard setback and location of the proposed trash enclosure by the northeast corner of the Project site. The proposed trash enclosure will be setback 6-ft. from the side interior property line instead of the required 10-ft. Due to site constraints, the Applicant was unable to find

another feasible location for the trash enclosure to be located further away from the existing single-family residences to the north without a reduction in Project density. • Waivers #4 and #7 refer to a request for relief to the same standard, as the MGSP ODS subsection directly cites the need to comply with ODS Section 3.9.3.3 regarding the requirement to plant a double row of trees adjacent to a freeway. Due to an existing PG&E overhead powerline easement along the western edge of the Project site next to Interstate Highway 880, the Applicant confirmed with PG&E via email correspondence that no trees are allowed to be greater than 2-ft. tall in this easement, thereby making implementation of this standard infeasible. PG&E also indicated the Applicant will not be required to underground existing PG&E utilities.
• Waiver #5: The proposed Project requests a waiver for an alternative private two-way alley design. MGSP Figure 5-14 requires a 35-ft. wide alley with a 25-ft. right-of-way (ROW) and a 5-ft. setback on both sides, and the Project proposes a 34-ft. wide alley, consisting of a 26-ft. wide right-of-way (ROW) with 4-ft. setbacks on both sides.
• Waiver #6 involves a relief request from ODS requirements on detailed spacing requirements for planting new trees and shrubs along shared property lines and side/rear setbacks. The Project will exceed the number of required new trees to be planted onsite via Tree Removal Permit No. TR24-0018 but cannot meet all spacing and distancing requirements due to site constraints, and is partially related to Waivers #4 and #7 as no trees will be able to be planted along the rear setback of the property adjacent to I-880 due to an existing PG&E overhead powerline easement.
• Waiver #9: The Applicant requests a waiver from ODS Section 4.1.3.6 as the Project’s design was unable to have one common space area meeting the minimum dimension of 40 ft. by 40 ft. due to site constraints but will still meet all other MGSP requirements for private and common open space. • Waiver #10: The Project requests a waiver from the Zoning Ordinance requirement for minimum parallel parking stall dimensions (10’ wide by 22’ depth). The Project proposes outdoor surface parking stalls along alleys that are approximately 9’wide by 20-22’ depth.

Affordable Housing Ordinance
The City’s Affordable Housing Ordinance (AHO) applies to all new residential development projects of ten units or more designed and intended for permanent occupancy. Pursuant to MMC Section XII-1-3.00 of the City’s Affordable Housing Ordinance (AHO), the Applicant must reserve fifteen percent (15%) of the total number of dwelling units within the development as affordable units, resulting in 20.1 units for the Project. The Applicant proposes to meet the City’s affordable housing requirement by reserving 20 of the 134 units on-site for moderate-income households. However, the AHO states if the 15% calculation results in a fractional unit that is less than 0.5 (i.e., less than half a unit), the developer may pay an in-lieu fee for the remainder of the fractional unit or provide another BMR unit. The Applicant will pay for the remaining 0.1 fractional in-lieu payment calculated at the time of building permit issuance.

The City’s Office of Housing reviewed the proposed Project for compliance with the City’s AHO, and has included conditions of approval for the Applicant to complete post-entitlement during the building permit review phase, including executing an agreement imposing appropriate ownership controls on the affordable units and payment of the in-lieu fee for the fractional unit of the 15 percent calculation. The Applicant has agreed to distribute the 20 BMR units between the three-unit types as shown in Table 4 with eight BMR units of Unit Types 1 and 2 and four BMR units of Unit Type 3. Refer to Sheet G-007 of the Project Plans (Attachment F) for the proposed BMR distribution placement among the 24 residential buildings.

Table 4: Proposed Project Unit Type and Affordable Unit Distribution Unit Type Total S.F. Per Unit
Moderate
BMR
Units*
Market
Rate
Units
Total Units
(% Unit Mix)
Unit Type 1
(3 bed/3 bath)
1,326 S.F. Habitable Space with 477 S.F.

Private Tandem Garage
Total Net S.F.: 1,803
8 47 55 Units (41%)
Unit Type 2
(3 bed/3 bath)
1,710 S.F. Habitable Space with 442 S.F.

Private Side by Side Garage
Total Net S.F.: 2,152
8 47 55 Units (41%)
Unit Type 3
(4 bed/4 bath)
2,013 S.F. Habitable Space with 449 S.F.

Private Side by Side Garage
Total Net S.F.: 2,462
4 20 24 Units (18%)
* Required Affordable Unit Type Distribution per City’s Affordable Housing Ordinance.

Housing Element and No Net Loss Law
While the Project with its proposed 134 units would result in fewer units to be built on the Project site than the potential maximum site capacity anticipated in the Housing Element Sites Inventory (202 units), the No Net Loss Law as codified in Government Code Section 65863 requires a jurisdiction to maintain adequate housing sites to accommodate its remaining unmet RHNA by each income category at all times throughout the entire planning period. If a jurisdiction approves a development of a site identified in its Housing Element Sites Inventory with fewer units than shown in the Housing Element, it must find that the remaining sites have sufficient capacity to accommodate the remaining unmet RHNA by each income level. The Milpitas 2023-2031 Housing Element identified a total capacity of 9,397 units, which exceeds Milpitas’ RHNA obligation of 6,713 units by 2,684 units. Although the Project would result in the loss of 68 units relative to the anticipated number of units identified in the Sites Inventory, the City currently has more than enough capacity to accommodate its remaining unmet RHNA in each income category. Moreover, any reduction of units was appropriately considered during the City’s approval of the Gateway-Main Street Specific Plan, the City at that time made all required findings for the adoption of the applicable zoning, including those findings required by the No Net Loss Law, and no further findings are required at this time. Those findings and analysis are incorporated herein by this reference.

Subdivision Ordinance
The Project's form, content, and dedications of the proposed tentative map have been reviewed by the City’s Public Works Land Development Division and deemed consistent with the provisions of MMC Section XI-1-4 (Tentative Maps), as outlined in Planning Commission Resolution No. 26-009 and the attached City Council Resolution for the Project. Tentative Maps require approval by Resolution by the Planning Commission that recommends final approval or denial by the City Council.

Site & Architectural Design
The Project's design concept for the future residential development includes a modern Spanish architectural theme. The design of buildings incorporates varied rooflines, balconies, and projections to add visual interest, and will include a mix of window sizes, decorative trim, and roof overhangs including awnings and Juliet balconies to further reinforce the architectural style.

The overall color scheme will remain neutral and earth-toned and complements the architectural theme. The Project’s modern Spanish architectural design includes tile roofs in two colors, stucco finishes with natural paint colors and darker balconies and trims, and entry and garage doors with wood-like finishes.

Elevations and renderings of the proposed Project are included in the Project Plans (Attachment F). The front of each entry unit along the publicly accessible pathways will also include a wood trellis with new landscaping and trees planted along both sides of the new walkways to enhance the pedestrian experience and streetscape design.

Tree Removal and Landscaping

The Project includes removal of 115 ordinance-sized trees and the removal of 16 smaller non-ordinance sized trees, shrubs, and other vegetation from the site and will retain seven onsite ordinance-sized trees. Pursuant to MMC Title X, Chapter 2 (Tree Maintenance and Protection), the Project must plant a minimum of two replacement trees for every one ordinance sized tree that is removed, and requires approval of a Tree Removal Permit and appropriate mitigation (i.e., replacement trees) under the purview of the City’s Public Works Department at an administrative staff level approval. Information about the Tree Removal Permit and tree planting plan have been provided for transparency but are not under the review authority purview of the City Council. The Project’s Tree Removal Permit No. 24-0018 was issued by the Public Works Department on June 11, 2026. The Project will plant 338 new trees on the same site to increase the overall site canopy, with species chosen from the City’s MGSP and ODS recommended lists. Seven (7) ordinance sized-trees will be retained onsite, bringing the total number of proposed onsite trees to 345. Any proposed revisions to the total new tree count and associated tree planting plan will require a new evaluation and issuance of a subsequent Tree Removal Permit by the Public Works Department. Additional new landscaping improvements to complement the new tree planting include installation of various native and drought-tolerant plants with a collection of shrubs, grasses, perennials, and groundcovers with a new efficient irrigation system is detailed in the landscaping sheets of the Project Plans (Attachment F).

Private and Common Outdoor Open Space
Per the MGSP, private development with over six units requires private open space with a minimum of 40- square feet per unit and must have a minimum dimension of 5-feet in all directions. The Project proposes each unit with its own private ground level porch or patio meeting the minimum dimensional and size requirements, with some units also having a private upper balcony deck. The proposed Project will exceed the private open space requirements of 5,360-square feet by providing a total of 13,967-square feet of open space (12,501- square feet within private patios/porches and 1,466-square feet in upper decks).

The MGSP requires common outdoor open space for the Project to be a minimum of 60-square feet per unit, with the minimum area of 1,000-square feet and having a dimension of at least 40-feet by 25-feet. The proposed Project requires a total of 8,040-square feet and will provide approximately 9,974-square feet of code compliant common open space, with three common outdoor open space pocket parks located along the greenway path with various amenities.

The common open space areas will be publicly accessible but will be privately owned and maintained by the future residents of the subdivision and are not proposed to be dedicated as public parkland to the City in the subdivision map. Additionally, a small dog park with turf and concrete paving will be provided in the top left corner of the Project site.

Public Parkland Dedication or In-Lieu Payment Requirement The MGSP requires all new developments to provide 3.5 acres of parkland for every 1,000 persons or payment of park in-lieu fees, as allowed by MMC Section XI-1-9 (Improvements: Dedication of Land or Payment of Fee or Both, for Recreational Purposes). The Parkland Fee is based upon the estimated number of persons expected to reside in the development (per U.S. Census definitions) and the estimated value of parkland in the City for the MGSP area per City Council Resolution No. 8437 (currently $2,787,840 per acre).

In the MGSP at least, two (2) of every three and a half (3 ½) acres (57.4%) shall be provided as public parkland. The remaining acreage can be provided as private parkland (42.6%). Estimates from the U.S.

Census show 2.49 people will occupy each unit for multi-family developments with 5 units or more. The Project proposes 134 units, resulting in an estimated population of 334 persons and a total parkland requirement of

1.17 acres, equivalent to approximately $3,255,667.43. The Applicant will receive a credit of 0.23 acres out of the maximum 0.5-acre allowance of private parkland they will be providing onsite with the three pocket park areas as described in the aforementioned section. Therefore, the City has determined the Applicant must pay for a total of 0.94 acres, or $2,620,569.60 to satisfy the MGSP parkland requirement. A full analysis for the parkland requirement is demonstrated in Table 5 below.

Table 5: Project MGSP Parkland Requirements Analysis

Sobrato Townhomes Proposed 134
Sobrato Townhomes Population Estimate
(2.49 persons/unit per Census)
334 persons
MGSP Parkland Requirement 3.5 acres/1,000 people or
equivalent fees-in-lieu
Total Parkland Acreage or In-Lieu Fee Required 1.17 acres / $3,255,667.43 Total Required Amount Satisfied Through Dedicating Public Parkland to the City or Payment of Park-In Lieu Fees
(Acreage/Dollars)

1.17 acres x 57.4% =

0.67 acres / $1,867,852.80
Remaining Max. Parkland Acreage Allowed as Private Common Open Space

1.17 acres x 42.6% =

0.50 acres
Total Private Common Open Space Proposed in Project 0.23 acres Project’s Net Additional Requirement of Parkland Acreage 0.27 acres Balance of Parkland Acreage or In-Lieu Fee Due
(1.17 acres - 0.23 acres) =

0.94 acres / $2,620,569.60
Access, Circulation, and Parking
The Project has two points of access from the public right-of-way. The first is via a cul-de-sac to Valley Way on the eastern edge of the Project site, which would act as the main ingress/egress to the site. This frontage would contain three driveways on the cul-de-sac bulb and a public sidewalk, which would be rebuilt as part of the Project. The second point of access is via a short segment of Valley Way to the north of the Project site which would act solely as an emergency vehicle access (EVA) point, outfitted with a new driveway and removable bollards. Non-emergency vehicle access to the Project site, such as residents and guests, would be provided from Valley Way at the cu-de-sac and connect to internal private streets.

An internal private street and alley grid will provide access to 134 private residential garages to fit two cars in a tandem or side-by-side configuration with a total of 268 covered vehicle spaces. In addition, 60 guest parking spaces will be provided around the private streets and alleys as uncovered surface parking stalls. Additionally, each unit’s private garage provides one long-term bicycle parking space, totaling 134 long-term spaces with 12 short-term bike stalls provided outdoors.

Traffic and Transportation
The City’s 2022 Transportation Analysis (TA) Guidelines contains thresholds on assessing when projects may require a Vehicle Miles Traveled (VMT) study pursuant to CEQA and when a separate requirement for a transportation operation analysis (TOA) are needed for projects to address transportation deficiencies and conform to the Santa Clara County Congestion Management Program. A Project-specific VMT study was not required as the Project did not meet the screening thresholds to require a separate report, and was analyzed within build out projections in the MGSP SEIR and as summarized in Section 3.17, Transportation, of the Project’s CEQA exemption checklist (Attachment B).

A Project-specific TOA Report (Attachment I) was prepared and reviewed in consultation with the City’s Transportation and Traffic Engineering staff demonstrating the Project’s anticipated traffic generation can be accommodated by the existing street network. The City’s Transportation and Fire staff have also reviewed the Project plans and are requiring conditions of approval to ensure adequate emergency vehicle access and have confirmed that the internal private streets and driveways will adequately serve the development.

Utilities and Public Improvements

The Project site is located in an urban area and is currently served by existing utilities, including water, sanitary sewer, storm drainage, electricity, and telecommunications infrastructure. All public utilities will be provided to the Project site with the proposed improvements coordinated under the purview of the City’s Engineering Division within the Public Works Department. The proposed Project improvements to infrastructure include new water, sewer, and stormwater mains and laterals. The Applicant will construct new curb, gutter, sidewalk, and driveway approaches along the Valley Way cul-de-sac and will extend the sidewalk along the northside of Valley Way where sidewalks are currently missing to provide complete streets access to N. Abbott Avenue.

In addition, the developer will also prepare a photometric plan to be reviewed and approved by the City during the construction plan phase.

Development Impact Fees
The Project was submitted under SB 330 with a preliminary application review period from January 7 to February 6, 2026, and will be subject to the FY 24-25 fee rates unless meeting an exempt fee as detailed in the state law2. The Project is subject to the Parkland Impact Fee as shown in Table 5, Public Art Fee as set forth in MMC Section XI-14, affordable housing in-lieu fee as described earlier in this report, and Engineering Division Impact Fees (i.e., utility connection fees and the Calaveras Boulevard Widening Traffic Impact Fee).

POLICY ALTERNATIVES
Alternative 1: Deny the Project.

Pros: A different project with higher density or higher intensity mixed-use development could be proposed at this site in accordance with the GW-MU zoning district standards.

Cons: The existing site will remain vacant and underutilized for the foreseeable future until a new development is proposed, which will require new Planning entitlements. Until that time, the City would lose an opportunity to collect development impact fees, require offsite public improvements, and realize development of new housing options within the MGSP area. The vision of the Gateway District neighborhood would remain incomplete for the site and the vacated site would remain a blight to the surrounding area. Furthermore, 20 of the 134 units are reserved for below market rate households which would support the affordable housing needs within the region including the City’s Regional Housing Needs Allocation (RHNA) and the Project site was identified in 2023 as a Rezone Site for future housing development in the City’s 2023-2031 Housing Element.

Reason for Not Recommending: This alternative is not recommended because the proposed Project is consistent with the City’s General Plan, MGSP, zoning, and other applicable MMC sections after qualifying for the State Density Bonus Law provisions for one concession and waivers requested by the Applicant. The Project includes 20 townhomes reserved for moderate-income households, increasing the number of affordable units in the City and providing more options of housing for its residents. The Project is scaled appropriately from its surroundings and complements nearby residential projects and other commercial and mixed-use land uses.

PROJECT SCHEDULE/ KEY MILESTONES
City Council Approval: 6/16/2026
Estimated Submittal of Building Plan Check/Construction Drawings: August 2026 Estimated Start of Construction: 2028
Estimated Substantial Completion: 2030-2031
FISCAL IMPACT:

If the proposed Project is approved, the Applicant will apply for various building permits and encroachment permits to construct the new onsite buildings, site improvements, and offsite public improvements in the surrounding area. The new development is expected to generate additional revenue to the City through property taxes.
2 The Citywide fee study update for FY 25-26 became effective on February 14, 2026, after the Project’s SB 330 preliminary application period was complete. Therefore, the Project will be subject to the City’s FY 24-25 fee schedule unless meeting an SB 330 exemption.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):

The City conducted an environmental assessment for the proposed Project (P-EA24-0003) in accordance with the California Environmental Quality Act (“CEQA”), as amended. The City certified a Subsequent Environmental Impact Report (SEIR) for the MGSP on October 28, 2025 (State Clearinghouse No. 2024070432). The SEIR provides an assessment of the reasonably foreseeable and potentially significant adverse environmental effects of the MGSP that may occur beyond what was evaluated in the City of Milpitas 2040 General Plan EIR. The SEIR for the MGSP was prepared at the program “first-tier” level of environmental review consistent with the requirements of the California Environmental Quality Act (CEQA) (CEQA Guidelines Sections 15152 and 15168) for the overall MGSP area.

According to Section 15182 of the CEQA Guidelines, certain residential, commercial and mixed-use projects that are consistent with a specific plan adopted pursuant to Title 7, Division 1, Chapter 3, Article 8 of the Government Code are exempt from CEQA. Section 15182(c) of the CEQA Guidelines states that a residential project undertaken pursuant to and in conformity to a specific plan that included certification of an EIR are exempt from CEQA unless one of the conditions described in CEQA Guidelines Section 15162 occur as a result of the project.

The 600 Valley Way Environmental Checklist is included as Exhibit 2 of the Resolution (Attachment B) and supporting technical reports as substantial evidence for the CEQA exemption as Exhibit 3 of the Resolution (Attachment C). The Project-specific checklist was prepared to provide supporting information that none of the events outlined in CEQA Guidelines Section 15162 have occurred, that the Project is consistent with Section 15182 and the MGSP SEIR. As the prepared document is considered a CEQA exemption, no public circulation of the exemption and no public comment period is required. As the Project site is within the MGSP area and as listed in the exemption document, the Project will still have relevant Conditions of Approval included as part of Exhibit 1 to the Resolution (Attachment A). Therefore, the Project is exempt from the provisions of CEQA, and no further environmental review is required.

ATTACHMENT(S):
(a) City Council Resolution, including Exhibit 1 to the Resolution: Conditions of Approval (b) Exhibit 2 to the Resolution: CEQA Exemption Environmental Checklist (c) Exhibit 3 to the Resolution: CEQA Exemption Supporting Technical Studies (d) Planning Commission Staff Report dated May 27, 2026 (e) Planning Commission Meeting Minutes for May 27, 2026 (f) Senate Bill 1214 Project Plans
(g) Applicant State Density Bonus Request Letter (Waivers/Concession List) (h) Project MGSP and City ODS Compliance Matrix
(i) Project Transportation Operation Analysis Report
(j) Planning Commission Resolution No. 26-009
(k) Applicant Response Letter to Planning Commission Recommendations Minutes from May 27, 2026 (l) Applicant Legal Firm Follow Up Letter dated June 12, 2026

RESOLUTION NO. _____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MILPITAS APPROVING SITE DEVELOPMENT PERMIT NO. SD24-0005, VESTING TENTATIVE MAP NO. MT24-0002, DENSITY BONUS PERMIT NO. DB24-0001, AND ENVIRONMENTAL ASSESSMENT NO. EA24-0003 FOR THE SOBRATO TOWNHOME PROJECT WITH 134 CONDOMINIUM UNITS AND A ONESTORY CLUBHOUSE AMENITY BUILDING, WITH 268 PRIVATE GARAGE VEHICLE PARKING STALLS, 60 UNCOVERED SURFACE LEVEL GUEST

PARKING STALLS, LANDSCAPING, AND ASSOCIATED SITE
IMPROVEMENTS ON A 7.22-ACRE SITE LOCATED WITHIN THE GATEWAYMIXED USE (GW-MU) ZONING DISTRICT IN THE MILPITAS GATEWAYMAIN STREET SPECIFIC PLAN (MGSP) AREA AT 600 VALLEY WAY (APNs 222-80-022, -024, -025), AND MAKING FINDINGS OF CEQA EXEMPTION WHEREAS, the City of Milpitas, California (the “City”) is a municipal corporation, duly organized under the constitution and laws of the State of California; and WHEREAS, California Government Code Section 65300 et seq. requires each city to prepare and adopt, and amend as necessary, a comprehensive, long-term general plan for the physical development of the county or city; and
WHEREAS, California Government Code Section 65800 et seq. authorizes the adoption and administration of zoning laws, ordinances, rules, and regulations by cities as a means of implementing the General Plan; and
WHEREAS, California Government Code Sections 65450-65457 authorize cities to prepare specific plans to systematically implement the General Plan, specify the required contents of specific plans, allow specific plans to be adopted by resolution or ordinance and amended as often as deemed necessary by the legislative body, and requires specific plans to be consistent with the General Plan; and WHEREAS, on October 28, 2025, the Milpitas City Council adopted Resolution No. 9452 to approve Specific Plan Amendment No. SP20-0002 to adopt the Milpitas Gateway-Main Street Specific Plan (MGSP) (formerly known as the Midtown Specific Plan), approved a Zoning Map and Text Amendment No. ZA25-0002 and introduced Ordinance No. 38.859 to amend the Zoning Ordinance and Zoning Map to establish new Specific Plan boundaries, zoning districts, and zoning regulations, adopted Resolution No. 9453 to adopt General Plan Amendment GP25-0002 to amend the Land Use Element Map; and certified the Subsequent Environmental Impact Report (EIR) to the Milpitas 2040 General Plan EIR for the Milpitas Gateway-Main Street Specific Plan (State Clearinghouse “SCH” No. 2024070432) in accordance with the California Environmental Quality Act (“CEQA”); and WHEREAS, on November 18, 2025, the Milpitas City Council adopted Ordinance No 38.859 amending the Milpitas Municipal Code (MMC) Title XIII, Part B, Chapters B.22 and B.214 to establish the Gateway-Main Street Specific Plan Zoning Districts and Regulations, and amending the zoning map of the City to establish the updated specific plan boundaries; and WHEREAS, on January 7, 2026, The Sobrato Organization (the “Applicant”) submitted a complete pre-application and paid the required pre-application fee for a multi-family residential

2 Resolution No. xxxx
development that includes 134 condominium townhome units with a one-story clubhouse building at 600 Valley Way, pursuant to California Senate Bill SB 330 (SB 330) to the City; and WHEREAS, on March 20, 2026, the Applicant submittal a formal application pursuant to SB 330 to the City for the entitlements necessary to allow the development of a multi-family residential project contemplated within the aforementioned pre-application. The Project is a 134-unit townhome condominium subdivision with one clubhouse amenity building, comprised of 24 multi-family buildings up to 38-feet in height (three stories) (up to a maximum height of 45-feet to the top of the highest architectural element) with a one-story, 2,182-square foot clubhouse, 268 vehicle parking spaces, 60 outdoor surface level guest parking stalls, landscaping, and associated site improvements on a 7.22-acre site located at 600 Valley Way (APNs 222-80-022, -024, -025) in the Milpitas Gateway-Main Street Specific Plan (MGSP) area (the “Project”). The Project requires approval of the following entitlements:

1. Site Development Permit No. SD24-0005: To allow the development of 24 multi-family buildings, up to three stories in height, with up to 134 residential units and a one-story clubhouse amenity building with landscaping and associated site improvements on the

7.22-acre site; and

2. Vesting Tentative Map No. MT24-0002: To combine three lots into one lot, establish 134 residential condominium spaces, related common areas, and associated easements; and

3. Density Bonus Permit No. DB24-0001: To ensure the Project is compliant with State Density Bonus law and regulations.

WHEREAS, the Applicant separately applied for Tree Removal Permit No. TR24-0018 to be issued by the Public Works Department at an administrative staff level approval on June 11, 2026, to remove 115 ordinance-sized trees and replace with 338 new trees on the same site, with replacement trees to be commensurate with the size of the tree being removed as determined by the Planning Director or his or her designee per MMC X-2-4.02, with any proposed revisions to the total new tree count and associated tree planting plan to be re-evaluated and will require the issuance of a subsequent Tree Removal Permit by the Public Works Department; and
WHEREAS, the Planning Department completed Environmental Assessment No. EA24-0003 for the Project in accordance with the CEQA, and recommends that the City Council determine this Project is exempt from further environmental review pursuant to CEQA Guidelines Section 15182 (Projects Pursuant to a Specific Plan), provided that the Project results in none of the conditions described in CEQA Guidelines Section 15162 (Subsequent EIRs and Negative Declarations), as evaluated within a Projectspecific CEQA Environmental Checklist prepared for the 600 Valley Way Residential Development Project (the “Environmental Checklist,”), a true and correct copy of which is attached hereto and incorporated herein, as Exhibit 2 to the Resolution. Exhibit 3 to the Resolution includes the Projectspecific CEQA Environmental Checklist supporting technical studies), which demonstrates the Project would result in none of the conditions in CEQA Guidelines Section 15162; and WHEREAS, the proposed Project is consistent with the goals, policies, and regulations of the California Density Bonus Law (Government Code sections 65915 et seq.), Milpitas 2040 General Plan, MGSP, and Milpitas Zoning Ordinance, including specifically as provided in MMC Section XIII-C.12 (Density Bonus for Affordable Housing Developments), which permits waivers and concessions to development standards, as analyzed and documented in the staff report; and

3 Resolution No. xxxx
WHEREAS, the Planning Commission is an advisory body to the City Council pursuant to MMC Section XIII-D.2.040(B)(3) 10-64.03 (Multiple Applications), where, as here, due to the application for a Tentative Map pursuant to MMC Section XI-1-4.03 and a density bonus pursuant to MMC Section XIIIC.12, the City Council is the highest review authority for the Project and, accordingly, all review by other bodies with approval authority over the application shall be in the form of a recommendation to the City Council; and
WHEREAS, on May 27, 2026, the Planning Commission held a duly-noticed public hearing, during which meeting the Planning Commission considered the CEQA exemption findings as well as Site Development Permit No. SD24-0005, Vesting Tentative Map No. MT24-0002, Density Bonus Permit No.

DB24-0001, and Environmental Assessment No. EA24-0003 for the 600 Valley Way Project, heard a presentation from staff, and had the opportunity to hear from members of the public and closed the public hearing on the item; and
WHEREAS, by adoption of Resolution No. 26-009, the Planning Commission recommended that the City Council approve Site Development Permit No. SD24-0005, Vesting Tentative Map No. MT24- 0002, Density Bonus Permit No. DB24-0001, and Environmental Assessment No. EA24-0003 for the 600 Valley Way Project; and
WHEREAS, the documents and other materials which constitute the record of proceedings upon which the Planning Commission bases its recommendation and the findings contained within this Resolution are available as part of the agenda packet posting on the City of Milpitas website and may be reviewed at Milpitas City Hall, located at 455 E. Calaveras Boulevard, Milpitas, California 95035; and WHEREAS, on June 16, 2026, the City Council held a duly-noticed public hearing, during which meeting the City Council considered the CEQA exemption findings as well as Site Development Permit No. SD24-0005, Vesting Tentative Map No. MT24-0002, Density Bonus Permit No. DB24-0001, and Environmental Assessment No. EA24-0003 for the 600 Valley Way Project, heard a presentation from staff, and had the opportunity to hear from members of the public; and WHEREAS, the findings and conclusions made by the City Council pursuant to this Resolution are based upon the oral and written evidence presented before it as a whole.

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

SECTION 1. Recitals.

The City Council has duly considered the full record before it, which may include but is not limited to such things as all published staff reports, oral and written testimony by staff, the Planning Commission, City Council, and the public, and all other relevant materials and evidence submitted or provided to City Council. Furthermore, the recitals set forth above are found to be true and correct and are incorporated herein by reference.

SECTION 2. California Environmental Quality Act (CEQA)
The City conducted an environmental assessment (in the form of a Project-specific named as the 600 Valley Way Residential Development Project Environmental Checklist, dated March 2026) for the proposed Project in accordance with the California Environmental Quality Act (CEQA) and determined

4 Resolution No. xxxx
that the proposed Project is categorically exempt from CEQA in accordance with CEQA Guidelines Section 15182 (Projects Pursuant to a Specific Plan). The City certified a Subsequent Environmental Impact Report (SEIR) for the MGSP on October 28, 2025 (State Clearinghouse No. 2024070432). The SEIR provides an assessment of the reasonably foreseeable and potentially significant adverse environmental effects of the MGSP that may occur beyond what was evaluated in the City of Milpitas 2040 General Plan EIR. The SEIR for the MGSP was prepared at the program “first-tier” level of environmental review consistent with the requirements of the California Environmental Quality Act (CEQA) (CEQA Guidelines Sections 15152 (Tiering) and 15168 (Program EIR)) for the overall MGSP area.

According to Section 15182 of the CEQA Guidelines, certain residential, commercial and mixed-use projects that are consistent with a specific plan adopted pursuant to Title 7, Division 1, Chapter 3, Article 8 of the Government Code are exempt from CEQA. Section 15182(c) of the CEQA Guidelines states that a residential project undertaken pursuant to and in conformity to a specific plan that included certification of an EIR are exempt from CEQA unless one of the conditions described in CEQA Guidelines Section 15162 occur as a result of the project. The Project-specific Environmental Checklist, attached hereto as Exhibit 2 and its supporting technical studies attached hereto as Exhibit 3, provides supporting information that none of the events outlined in CEQA Guidelines Section 15162 have occurred, that the Project is consistent with Section 15182 and the MGSP SEIR, and is therefore exempt from further environmental analysis under the provisions of CEQA.

SECTION 3. Site Development Permit Findings (MMC Section XIII-D.4.020.F(1.a-d) for All Site Development Permits and MMC Section XIII-D.4.020.F(2.a-c) for Specific Projects):

The City Council makes the following findings based on the evidence in the administrative record in support of Site Development Permit No. SD24-0005:
1a. The proposed project is consistent with the Zoning Ordinance.

The proposed Project is generally consistent with the Milpitas Zoning Ordinance per MMC XIIIB.14, Gateway-Main St. Specific Plan Area. The proposed Project meets its applicable section of the Gateway Mixed-Use (GW-MU) zoning district purpose statement as described in MMC XIIIB.14.010(D) as “… transitioning to a neighborhood-oriented residential focus to the north…” as it will be located in the northwest corner of the Gateway District MGSP boundary, and will be accessible off of Valley Way from S. Abbott Avenue and Calaveras Boulevard.

The Project also conforms to MMC Section XIII-C.12 (Density Bonus for Affordable Housing Developments). Where exceptions to the GW-MU standards are needed including to the MGSP ODS, Citywide ODS, and Zoning Ordinance, the Applicant has requested 10 waivers and one (1) concession under the State Density Bonus Law (Gov. Code §§ 65915 et seq.). The requested waivers and concession exception will support the development of affordable housing on a site where it would not otherwise be possible through a strict application of the specified standard and the financial feasibility of constructing the Project. Furthermore, the Project site was identified as a Rezone Site in the City’s 2023-2031 Housing Element cycle and thus was envisioned for housing.

Furthermore, the proposed Project complies with MMC XIII-C.2.030(A) Affordable Housing, as the Applicant will comply with the City’s affordable housing requirements pursuant to MMC XII-1 (Affordable Housing Ordinance) by dedicating 20 out of the 134 proposed townhome condominium units for moderate-income families, meeting the minimum 15% requirement

5 Resolution No. xxxx
pursuant to the City’s AHO. The Office of Housing reviewed the proposed Project and has conditionally approved the Project, and will coordinate further with the Applicant during the building permit phase, including the executing the affordable housing agreement, collection of the partial fractional affordable in-lieu fee, and reaffirming the distribution of affordable units on the site.
1b. The proposed use and project are consistent with the goals and policies of the General Plan:

The proposed Project’s use as a multi-family residential development within the Milpitas Gateway-Main Street Specific Plan (MGSP) is consistent with the goals and policies of the City’s General Plan 2040. The General Plan 2040 description of MGSP notes that “a variety of uses are allowed in this designation, including entertainment, retail, commercial, residential, civic, cultural, office, and high-density mixed use residential in a compact, walkable, and unique centralized setting.” The residential Project fits this description and new residents in the immediate area will be able to walk or use other multimodal modes to access nearby adjacent commercial, retail, entertainment, and other related uses as there are several multi-tenant commercial plazas in the vicinity.

In addition, as shown in Table 1 of the agenda report, the Project complies with General Plan policies LU 1-4, LU 2-1, LU 5-1, and LU 5-3. The Project will provide 134 new condominium townhome units, 20 of which will be affordable units at moderate-income and 14 of which will be ADA accessible, thereby contributing to the existing housing mix in the surrounding area. The Project is also consistent with the MGSP goals and policies, is compatible in scale and design with the existing neighborhood, will be well-integrated with adjacent developments, and will improve vehicular and pedestrian connectivity in the surrounding area. 1c. The project will not be detrimental to public health, safety, and general welfare:

As part of the City’s standard development review process, projects such as this scale for a new multi-family residential development are routed to several City Departments including but not limited to the Planning Department, Police Department, Office of Building, Fire Prevention, and the Engineering Division within the Department of Public Works. Each Department reviews the proposed Project for conformance to applicable adopted codes, regulations, and other requirements under their respective purview to try and identify any major public health, safety, and general welfare concerns. The Applicant must address and revise the proposed Project’s plans and/or other materials as part of the application until such issue is corrected to no longer be detrimental to public health, safety, and general welfare. Furthermore, the Project-specific CEQA Environmental Checklist did not identify any detrimental public health, safety, or general welfare concerns. 1d. The proposed project is in compliance with the provisions of California Environmental Quality Act (CEQA):

As a Lead Agency, the City has determined the Project is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15182 and created Environmental Assessment No. EA24-0003 to verify consistency with CEQA. CEQA Guidelines Section 15182 states that projects in conformity with a specific plan that has a certified Environmental Impact Report (EIR) are exempt from CEQA, provided the project results in none of the conditions described in CEQA Guidelines Section 15162. The City prepared an Environmental Checklist for the Project to evaluate its consistency with the Gateway-Main Street

6 Resolution No. xxxx
Specific Plan Subsequent Environmental Impact Report (State Clearinghouse No. 2024070432), which demonstrates the Project would result in none of the conditions in CEQA Guidelines Section 15162. The Project-specific Environmental Checklist and the supporting technical reports are included as Attachments B and C to the agenda report.
2a. The proposed use and project are consistent with the goals and policies of any Specific Plan, if applicable:

The MGSP also was initiated in 2021 and anticipated that the Project site would be analyzed as part of the future Gateway District of the MGSP. The Project site was annexed into the MGSP boundaries with a rezone and general plan amendment to allow for residential uses in late October 2025 as the former General Commercial zoning and land use designation does not allow for any residential development. The proposed Project meets the GW-MU density requirements at 19 dwelling units/acre where the range requires 18-65 dwelling units/acre. The Project would reaffirm the Gateway-Main Street Specific Plan Guiding Principle and the Gateway District Vision per MGSP Section 2.5. The Project will also improve the mobility network as desired by the MGSP and complete the vision in MGSP Figure 3-6 by connecting a new greenway, perimeter alleyways, and proper setbacks from the freeway side and meets the daylight plane and height requirements in consideration of the existing single-family residences to the north. With approval of the Applicant’s SDBL requests for 10 waivers and one concession, the Project will be consistent with the MGSP.
2b. The proposed siting, form, architectural style, materials, and other elements of multi-family residential and mixed-use developments are consistent with City Objective Design Standards:

As the Applicant invoked SB 330 and the SDBL, the Applicant team was still required to provide documentation to the City on the proposed Project’s compliance with not only the MGSP ODS but the Citywide ODS in separate checklists, and also must identify a consolidated list of SDBL requests for waivers and concessions for streamlining considerations. The Applicant provided all the aforementioned requested documents and for the Citywide ODS, was required to explain how any such proposed design elements in the Project were meeting the intent of such objective standard. The proposed Project generally meets the intent of several adopted objective design standards including having building entries front publicly accessible pathways, include varying rooflines and façade articulation details, 2-inch recessed windows and Juliet awnings along the building’s frontages, a consistent contemporary Spanish style theme throughout the site, use of native, drought tolerant plant species as recommended in the MGSP and ODS, meets the daylight plane and complies with transitions to single-family residential neighborhoods per MGSP Sec.

4.1.3.A and meets the minimum setback distance requirements of being adjacent to a freeway per MGSP Sec. 4.1.3.B. Additionally, the Project will meet the utility and rooftop / at grade screening requirements, proposes to use operable vinyl windows for bird safety and glazing, and utilize high quality materials such as steel garage doors in a wood like finish and accent tiles and trims. With approval of the Applicant’s SDBL requests for 10 waivers and one concession, the Project will be consistent with the Citywide and MGSP ODS.
2c. The proposed siting, form, and architectural style of single-family residential, commercial, and industrial developments are appropriate for the project site and surroundings and create a visually cohesive design, and are consistent with all applicable design standards in this Title:

7 Resolution No. xxxx
The above finding is not applicable to the Project, which is a multi-family development and was similarly described in the Site Development Permit Finding 2b.

SECTION 4. Vesting Tentative Map Findings (MMC Section XI-1-20.01) The City Council makes the following findings based on the evidence in the public record in support of Vesting Tentative Map No. MT24-0002:

1. The tentative subdivision map is consistent with the General Plan.

The General Plan designation for the Project site references the Milpitas Gateway-Main Street Specific Plan (MGSP). The MGSP sets for the types, locations, and intensities of land uses to be accommodated within the MGSP area, with its purpose to create an economically-viable main street type development that serves as a cultural hub of the City, and supports a variety of uses including entertainment, retail, commercial, residential, civic, cultural, office, and high-density mixed use residential in a compact, walkable, and unique centralized setting. The General Plan defers to the MGSP document for all development standards including density ranges. The MGSP identified the Project site to be in the Gateway District and is zoned Gateway-Mixed Use (GWMU). The intent of this designation is to provide a compatible mix of land uses with residential density proposals at a range of 18-65 dwelling units/acre. As this Project proposes 19 dwelling units/acre, it is consistent with both the intended land use of the General Plan and the MGSP and the relevant density requirement. In addition, the City’s 2023-2031 Housing Element identified the Project site as a Rezone Site. As such, the Project site has been incorporated into projections for affordable housing opportunities. The tentative subdivision map is necessary for the proposed multi-family residential Project, and would allow three lots to combine into one lot to establish the condominium areas, common areas, and easements to facilitate a new compact, walkable development with several on- and off-site public improvements that have been conditionally approved under the purview of the City’s Public Works Land Development Division to improve the City’s infrastructure and mobility network with modern standards on the Project site which has not been improved since the 1970s.

Furthermore, as shown in Tables 1 in the agenda report, the Project complies with General Plan policies LU 1-4, LU 2-1, LU 5-1, LU 5-3, and the MGSP’s Guiding Principle and MGSP Section

2.5: Gateway District Vision. Therefore, the vesting tentative map is consistent with the goals and policies of the General Plan.

2. None of the conditions identified in California Government Code Section 66474 exist, to wit:

A. That the proposed map is not consistent with applicable general and specific plans as specified in Government Code Section 65451.

As outlined above, the Project site includes the development of 134 residential condominium units and one clubhouse amenity building at a density of 19 dwelling units per acre (du/acre) and within the MGSP. The General Plan, MGSP designations, and the GW-MU zoning district permits residential development at intensities of 18 to 65 du/acre.

Therefore, the proposed Project’s density is consistent with the required density range as designated in the MGSP. The City’s Public Works Land Development Division reviewed the proposed map with the Planning Department and worked with the Applicant’s civil engineer team from Kier+Wright on necessary revisions to the proposed map before

8 Resolution No. xxxx
issuing a conditional approval letter to allow the Project to proceed with public hearings for the tentative map. Therefore, the proposed map is consistent with the General Plan and MGSP.

B. That the design or improvement of the proposed subdivision is not consistent with applicable general and specific plans.

The design and improvements of the Vesting Tentative Map are consistent with the General Plan and MGSP in that it would allow for multifamily residential development with associated public improvements, which are consistent with the applicable General Plan and MGSP goals and policies as described in Tentative Map Finding 1 and identified in Tables 1 of the agenda report, except for minor exceptions to design standards the Applicant has requested and is allowed pursuant to State Density Bonus Law described in Table 3 of the agenda report. The Project site is located within the Gateway District of the MGSP, which includes a vision for higher-intensity development, oriented along Calaveras Boulevard, to attract and support the needs of travelers along the corridor, while offering a neighborhoodscale residential and mixed-use north Calaveras Boulevard with complete streets improvements planned along this right-of-way. The Vesting Tentative Map would allow for development that is compatible with a new residential community north of Calaveras Boulevard and would complete the MGSP’s vision for the Gateway District including MGSP Figure 3-6, Gateway District Regulating Plan, and will include a new internal circulation network with a new greenway connection, improvements to the onsite and offsite sidewalks to support complete streets in the MGSP, and will be required to pay associated fees for the Calaveras Boulevard Widening Traffic Impact Fee as contributions for the future right-of-way improvements.

C. That the site is not physically suitable for the type of development.

The Project site is surrounded by properties designated for mixed-use development under the City’s General Plan and zoned for this type of development under the MGSP and GWMU zoning district. The proposed Project will be an infill development that has already been developed since the 1970s with a mix of five industrial/office buildings, surface parking lots, and associated infrastructure with all tenants vacated before the end of 2025, and would demolish all existing structures and add 134 condominium units and a clubhouse amenity building. In addition, the site is suitable for the proposed townhome development based on the location and physical attributes of the site and is surrounded by other types of development including retail and commercial plazas. The site is located in an urban context suitable for multifamily development and is generally flat and approximately 7.22 acres in size, which is sufficient to accommodate the development. The Vesting Tentative Map includes the necessary infrastructure improvements to adequately serve the site from a transportation and utilities perspective.

D. That the site is not physically suitable for the proposed density of development.

The Project site is suitable for the proposed medium density townhome development based on the location and physical attributes of the site. The site is located in an urban context suitable for medium density multifamily infill development and is approximately 7.22 acres in size, which is sufficient to accommodate the proposed density of development.

The Vesting Tentative Map includes the necessary infrastructure improvements including utilities built up to modern code standards to adequately serve a multifamily residential development at the proposed density.

9 Resolution No. xxxx
E. That the design of the subdivision or the proposed improvements are likely to cause substantial environmental damage or substantially and avoidably injure fish or wildlife or their habitat.

The Project, including the subdivision and its associated improvements, is located in within a heavily urbanized area and was previously developed with five multi-tenant office buildings, surface parking lots, and infrastructure and is surrounded by a mixture of other commercial and residential development. A Project-specific CEQA environmental checklist was also prepared, which confirmed that the proposed Project will not cause substantial environmental damage or substantially and avoidably injure fish or wildlife or their habitat.

F. That the design of the subdivision or type of improvements is likely to cause serious public health problems.

The Project, including the proposed subdivision and its associated improvements, has been designed in a manner that will not cause serious public health problems. The Project has been reviewed by Building, Planning, Housing, Fire, Engineering, Traffic, Utilities, and Solid Waste Departments to review for such design issues and the Applicant must address all Department comments sufficiently prior to allowing the Project to be considered for public hearings to consider approval of the subdivision and improvements. The Vesting Tentative Map includes various public improvements in the public rights-of-way related to transportation and utilities to ensure the Project will be adequately serviced and thereby preserve public health and wellness, including a new dedicated 10-foot Public Utility Easement along the Project’s frontage along Valley Way as required per MMC X-I-8.06, Granting of Easements. Additional public improvements include utility services such as water, wastewater, storm drain, gas, electrical, and telecommunications. The Project site will also have include modern stormwater improvements pursuant to requirements of the Santa Clara Valley Urban Runoff Pollution Prevention Program and as codified per MMC XI-16-1, Stormwater and Urban Runoff Pollution Control. Pavement restoration including a minimum 2-inch grind and overlay will be provided along the Valley Way frontage up to the Abbott Avenue intersection and new sidewalks along the Valley Way cul-de-sac and infilling missing segments of the sidewalk built to the City’s Engineering Standard Details with matching curbs and gutters to aid in the MGSP’s vision for complete streets. Other required public improvements are detailed in the Engineering Department’s “Specific Improvements” section of the conditions of approval and include new street tree wells, installation of radio-transmitting water meters with built-in antennas, and a lighting analysis on the existing streetlight conditions along Valley Way and on S. Abbott Avenue between Valley Way and W. Calaveras Boulevard to determine if any upgrades or new lighting improvements are necessary during the building permit review phase.

G. That the design of the subdivision or the type of improvements will conflict with easements, acquired by the public at large, for access through or use of, property within the proposed subdivision.

Upon the City’s Engineering Department review of the subdivision map, it has been determined that the design of the subdivision or the type of improvements will not conflict with any easements acquired by the public at large, for access through or use of, property within the proposed subdivision. The Project will comply with MMC X-I-8.06, Granting of Easements, and include a new dedicated 10-ft. Public Utility Easement (PUE) from the

10 Resolution No. xxxx
Valley Way cul-de-sac. The property contains an existing 8-inch Public Water Main and associated 15-ft. Waterline Easement running through the middle of the site between the two connections to Valley Way. The water main will be abandoned and capped in place, and the associated easement will be vacated. The Project will provide a new 10-inch water line that runs through proposed Alley 1 in a looped system that will reroute and connect the existing water line along Valley Way. The proposed public water lines will be installed within the new private streets/PUE.

The existing PG&E overhead powerline easement will remain along the westerly boundary line and will not require the Applicant to underground the existing overhead transmission lines. The private streets will be covered by proposed typical 26’ wide emergency vehicle access easements and typical 34’ wide public service & utility easements. Additional private easement needs may be identified in further stages of design and will be recorded through separate instruments. All existing easements on-site are to be quitclaimed or vacated, unless noted otherwise. Covenants, Conditions & Restrictions (CC&R's) will be prepared to facilitate and manage the operations, maintenance and related functions of the common areas. Therefore, the proposed subdivision and relevant improvements will not conflict with easements or access to the property.

SECTION 5. Density Bonus Permit (MMC Section XIII-C.12) The City Council makes the following findings based on the evidence in the public record in support of Density Bonus Permit No. DB24-0001:

1. The maximum allowable base density specified in the General Plan, including any other permitted increases to density.

The proposed Project includes 134 townhome condominiums on a 7.22-acre lot, equaling a residential density of approximately 19 dwelling units per acre (du/ac), which meets the minimum density of 18 du/acre in the GW-MU zoning district with a maximum density of 65 du/acre in this zoning district. Therefore, the Project is within the density range as specified in the General Plan and MGSP, and will not exceed the maximum allowable base density including any other permitted increases to density.

2. All affordable units shall be reasonably dispersed throughout the project, shall contain on average the same number of bedrooms as the non-affordable units in the project, and shall be comparable with the non-affordable units in terms of appearance, materials and finished quality. The Planning Commission may recommend to the City Council modifying the requirements as to unit size or type, if it is found that such a modification would better serve the affordable housing need of Milpitas.

The Applicant has allocated a total of 20 units as affordable units reserved for moderate-income households. In order to meet the City’s Affordable Housing Ordinance (AHO) requirements, the affordable units will be distributed across the Project site. The three (3) unit types and distribution of the 20 affordable units are listed below. All units will be three-stories in height and include private balconies and a 2-car garage. The affordable unit locations have been identified and approved by the Office of Housing as meeting the intent of the AHO, and will reaffirm compliance with the distribution and placement of each unit during the building permit phase. and must be developed with the same specifications and appliances as the standard, market-rate units.

Additionally, pursuant to XII-1-3.00 and as detailed in the Affordable Housing Ordinance section

11 Resolution No. xxxx
of the staff report, the Applicant will be conditioned to complete an in-lieu Housing Affordable fee for the fractional 0.1 unit resulting from the City’s AHO 15 percent calculation. • Eight (8) Affordable Units: Unit Type 1 (3 bedroom/1,326-square feet habitable space) • Eight (8) Affordable Units: Unit Type 2 (3 bedroom/1,710-square feet habitable space) • Four (4) Affordable Units: Unit Type 3 (4 bedroom/2,013-square feet habitable space)

3. Prior to final building inspection and occupancy for a project containing affordable units, the applicant shall execute and record at the Santa Clara County Recorder's Office the City's Agreement Imposing Restrictions on Real Property, which Agreement shall explain the affordability requirements. The agreement shall be approved by the Milpitas City Attorney prior to recordation.

The Project has been conditioned to provide an agreement to the City of Milpitas explaining the affordability requirements, processes and procedures, to the satisfaction of the Milpitas City Attorney prior to the release of Certificate of Occupancy.

4. Retaining Affordability. A developer shall agree to, and the City shall insure continued affordability of, all lower- or very low-income density bonus units for thirty (30) years or a longer period of time, if required by the construction or mortgage financing assistance program, mortgage insurance program, or rental subsidy program.

This standard is not applicable to the Project, as the Project is allocating 20 of the 134 townhome condominium units for sale at the moderate-income affordability levels. However, if the Applicant or a different Permittee may want to change the affordable levels to low- or very low-income, this standard shall apply: prior to final building inspection and occupancy for the Project containing affordable units, the Applicant shall execute and record at the Santa Clara County Recorder’s Office the City’s Agreement Imposing Restrictions on Real Property, which Agreement shall explain the affordability requirements, including continued affordability for moderate-income households. The agreement shall be approved by the Milpitas City Attorney prior to recordation.

5. Affordable Rents. Those units targeted for lower-income households, as defined in Section 50079.5 of the Health and Safety Code shall be affordable at a rent that does not exceed thirty (30%) of sixty (60%) percent of the Santa Clara County median income. Those units targeted for very lowincome households, as defined in Section 50105 of the Health and Safety Code, shall be affordable at a rent that does not exceed thirty (30%) of fifty (50%) percent of County median income.

This standard is not applicable to the Project, as the Project is allocating 20 of the 134 townhome condominium units for sale at the moderate-income affordability levels. However, if the Applicant or a different Permittee may want to change the affordable levels to low- or very low-income, this standard shall apply: prior to final building inspection and occupancy for the Project containing affordable units, the Applicant shall execute and record at the Santa Clara County Recorder’s Office the City’s Agreement Imposing Restrictions on Real Property, which Agreement shall explain the affordability requirements, including continued affordability for moderate-income households. The agreement shall be approved by the Milpitas City Attorney prior to recordation.

6. Relation to Statute. Density bonus requirements not specified in these regulations shall be governed by the State Density Bonus Law, Government Code section 65915, et seq.

12 Resolution No. xxxx
The Applicant has identified and requested 10 waivers and one concession pursuant to State Density Bonus Law.

SECTION 6: Housing Element. While the Project with its proposed 134 units would result in fewer units to be built on the Project site than the potential maximum site capacity anticipated in the Housing Element Sites Inventory (202 units), the No Net Loss Law as codified in Government Code Section 65863 requires a jurisdiction to maintain adequate housing sites to accommodate its remaining unmet RHNA by each income category at all times throughout the entire planning period. If a jurisdiction approves a development of a site identified in its Housing Element Sites Inventory with fewer units than shown in the Housing Element, it must find that the remaining sites have sufficient capacity to accommodate the remaining unmet RHNA by each income level. The Milpitas 2023-2031 Housing Element identified a total capacity of 9,397 units, which exceeds Milpitas’ RHNA obligation of 6,713 units by 2,684 units. Although the Project would result in the loss of 68 units relative to the anticipated number of units identified in the Sites Inventory, the City currently has more than enough capacity to accommodate its remaining unmet RHNA in each income category. Moreover, any reduction of units was appropriately considered during the City’s approval of the Gateway-Main Street Specific Plan, the City at that time made all required findings for the adoption of the applicable zoning, including those findings required by the No Net Loss Law, and no further findings are required at this time. Those findings and analysis are incorporated herein by this reference.

SECTION 7: City Council Decision and Approval. The City Council of the City of Milpitas hereby approves Site Development Permit No. SD24-0005, Vesting Tentative Map No. MT24-0002, Density Bonus Permit No. DB24-0001, and Environmental Assessment No. EA24-0003, based on the above Findings and subject to the Conditions of Approval attached hereto and incorporated herein as Exhibit 1, the CEQA Exemption Environmental Checklist attached hereto as Exhibit 2, and the CEQA Exemption Environmental Checklist Supporting Technical Studies attached hereto as Exhibit 3.

PASSED AND ADOPTED this 16th day of June, 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

ATTEST:

Suzanne Guzzetta, City Clerk
APPROVED:

Carmen Montano, Mayor
APPROVED AS TO FORM:

Christian M Curtis, City Attorney

13 Resolution No. xxxx
EXHIBIT 1

CONDITIONS OF APPROVAL
SITE DEVELOPMENT PERMIT NO. SD24-0005, VESTING TENTATIVE MAP NO. MT24- 0002, DENSITY BONUS PERMIT NO. DB24-0001, AND
ENVIRONMENTAL ASSESSMENT NO. EA24-0003

SOBRATO TOWNHOME PROJECT
600 VALLEY WAY
(APNs 222-80-022, -024, -025)
The City of Milpitas Planning Commission and City Council approves the above entitlements (“Permit”), in accordance with Section XIII-Part D of the Milpitas Municipal Code, subject to and conditioned upon all applicable State and local laws and regulations and the Conditions of Approval outlined below. This Permit will allow the development of 134 townhome condominium units and a clubhouse amenity building with landscaping and associated site improvements (“Project”) on a 7.22-acre site within the Milpitas Main Street Gateway Specific Plan (MGSP) area at 600 Valley Way (APNs 222-80-022, -024, - 025), subject to all other necessary reviews, approvals, studies, and inspections necessary for such development including for the issuance of building permits or occupancy and other required entitlements and approvals. As described in greater detail in the associated Staff Report and Resolutions, the Project is subject to vesting pursuant to SB 330 (Cal. Gov. Code, § 65941.1) as of January 7, 2026, and is also eligible for and subject to a variety of other state housing laws, including but not limited to the Housing Accountability Act (Cal. Gov. Code, §§ 65589.5 et seq.), State Density Bonus Law (Cal. Gov. Code, §§ 65915 et seq.), and SB 937 (Cal. Gov. Code, § 66007). This Permit and all other necessary reviews, approvals, studies, and inspections will be implemented consistent with such laws. .

APPROVED SUBJECT TO THE FOLLOWING CONDITIONS OF APPROVAL:

General Conditions

1. General Compliance: The Permittee and owner, including all successors in interest (collectively "Permittee") shall comply with each and every condition set forth in this Permit. Site Development Permit No. SD24-0005, Vesting Tentative Map No. MT24-0002, Density Bonus Permit No. DB24- 0001, and Environmental Assessment No. EA24-0003 (collectively "Permit") shall have no force or effect and no building permit shall be issued unless and until all things required by the belowenumerated precedent conditions have been performed or caused to be performed. The Permittee shall develop the site in accordance with the approved Attachments and as modified by these Conditions of Approval.

2. Modifications to Project. Any deviation from the approved site plan, floor plans, or other approved submittal shall require that, prior to the issuance of building permits, the Permittee shall submit modified plans and any other applicable materials as required by the City for review and obtain the approval of the Planning Director or designee. If the Planning Director or designee determines that the deviation is significant, the Permittee shall be required to apply for review and obtain approval of the applicable Review Authority, in accordance with the Zoning Ordinance. (P)

14 Resolution No. xxxx

3. Effective Date: Unless there is a timely appeal filed in accordance with the Milpitas Zoning Code, the date of approval of this Permit is the date on which the City Council approved this Permit.

4. Acceptance of Permit: Should Permittee fail to file a timely appeal within twelve (12) calendar days of the date of approval of this Permit, inaction by Permittee shall be deemed to constitute each of the following:
a. Acceptance of this Permit by Permittee; and
b. Agreement by the Permittee to be bound by, comply with, and to do all things required of or by Permittee pursuant to all the terms, obligations, and conditions of this Permit.

5. Permit Expiration: Pursuant to Milpitas Municipal Code (MMC) Section XIII-D.2.040(K), this Permit shall become null and void if the development is not implemented within two (2) years from the date of City Council approval, or for a project submitted with a tentative map, within the time limits of the approved tentative map. Pursuant to MMC Section XIII-D.2.040(K)(3), implementation is defined when:
a. A permit or approval shall not be deemed implemented until the applicant has obtained a grading permit and/or building permit and commenced construction, or where no grading or building permit is required, has commenced the allowed use on the subject site in compliance with the approval; or
b. Construction shall be diligently pursued towards completion. If after construction commencement, work is discontinued for a minimum period of two years, the permit or approval shall expire and be deemed void; or
c. If a project is phased, each phase shall be subject to a time limit during which construction must commence. Each subsequent phase shall have the same length of time allowed for the previous phase. The time limit for a subsequent phase shall begin when the previous phase commences construction, unless otherwise specified in the permit of approval. d. “Commence construction” shall mean any of the following, whichever occurs soonest:
i. Completes a foundation associated with the project;
ii. Dedicates any land or easement as required from the approval; or iii. Complies with all legal requirements necessary to commence the use or obtains a Certificate of Occupancy permit.

This Permit shall become null and void if the work is added to, modified, or otherwise deviated from in any significant way from the approved site plan, building plan, floor plans, or other approved submittals as determined by the Planning Director or designee.

6. Time Extension: Pursuant to MMC Section XIII-D.2.040(L), unless otherwise provided by State law, Permittee shall have the right to request a one-time extension of the Permit if the request is made in writing to the Planning Division and include a description if any prior Conditions of Approval will need to be amended with a completed Planning Application and payment of the time extension fee is paid prior to the expiration date of the approval. (P)

7. Project Job Account (PJ Account): If Permittee's project job account is at any time delinquent or below the required deposit amount, City will not continue to review or process the application until Permittee's project job account is paid in full and the required deposit has been made. Additionally, prior to the issuance of any building permit or occupancy permit as applicable, Permittee shall pay in full the Project account balance and establish a remaining balance of at least twenty-five percent (25%) of the required initial deposit. (P/E)

15 Resolution No. xxxx

8. Notice: Pursuant to California Government Code Section 66020, any protest filed in court relating to the imposition of fees, dedication, reservations, or other exactions to be imposed on the development project shall be filed within ninety (90) days after the date of the adoption of this Resolution. This provision serves as notice from the local agency to the Permittee that the ninety (90) day period in which the Permittee may file a protest has begun under California Government Code Section 66020(d)(1).

9. Cost and Approval: Permittee shall fully complete and satisfy each and every condition set forth in this Resolution and any other condition applicable to the Project to the sole satisfaction of the City.

Additionally, Permittee shall be solely responsible and liable for the cost to satisfy each and every condition. (ALL)

10. Conditions: Each and every condition set forth in this Exhibit shall apply to the Project and continue to apply to the Project so long as the Project is operating under the permits and approvals in this Resolution. (ALL)

11. Compliance with Laws: The construction, use, and all related activity authorized under this Permit shall comply with all applicable local, state and federal laws, rules, regulations, guidelines, requirements and policies. (CAO/P/E/B)

12. Indemnification: The Permittee is under preexisting obligation to indemnify the City with respect to the approval of the Permit pursuant to the Indemnification Agreement as part of Permittee’s Planning Department Application Form, executed December 17, 2025, which is incorporated in full into this Condition. In addition, to the fullest extent permitted by law, Permittee shall indemnify, defend, and hold harmless the City, its City Council, its boards and commissions, officials, officers, employees and agents from and against any and all claims, demands, obligations, damages, actions, causes of action, suits, losses, judgments, fines, penalties, liabilities, costs and expenses (including without limitation, attorney's fees, disbursements and court costs) of every kind and nature whatsoever which may arise from or in any manner relate (directly or indirectly) to (i) City's approval of the project, including, but not limited to, the approval of the discretionary permits, maps under the Subdivision Map Act, and/or the City's related determinations or actions under the California Environmental Quality Act, and (ii) Permittee's construction, operation, use or related activity under this Permit. This indemnification shall include, but not be limited to, damages awarded against the City, if any, costs of suit, attorneys' fees, and other expenses incurred in connection with such claim, action, causes of action, suit or proceeding whether incurred by Permittee, City and/or the parties initiating or bringing such proceeding. Permittee shall indemnify the City for all of City's costs, attorneys' fees and damages, which City incurs in enforcing the indemnification provisions set forth in this condition. City shall have and retain the right to approve (i) the counsel to so defend City, and (ii) all significant decisions concerning the manner in which the defense is conducted, and (iii) any and all settlements, which approval shall not be unreasonably withheld. Permittee shall pay to the City upon demand or, as applicable, to counsel selected and directed with City's approval, any amount owed pursuant to the indemnification requirements prescribed in this condition. The above indemnification is intended to be as broad as permitted by applicable law. To the extent the above indemnification is limited by Government Code Section 66474.9, any limitations shall only apply to Vesting Tentative Map No.

MT24-0002, and the balance of the Permit shall be unaffected by Government Code Section 66474.9. (ALL)

13. Certificate of Insurance: Permittee shall provide certificate of insurance and name City as an additional insured in its insurance policies for the Project.

16 Resolution No. xxxx

14. Revocation, Suspension, Modification: This Permit may be suspended, revoked or modified in accordance with Section XIII-D.18.070 of the Milpitas Municipal Code.

15. Severability: If any term, provision, or condition of this Permit is held to be illegal or unenforceable by the Court, such term, provision or condition shall be severed and shall be inoperative, and the remainder of this Permit shall remain operative, binding and fully enforceable.

16. Site Improvement Fees. Prior to issuance of any building permit, Permittee must pay all applicable development fees, including but not limited to, connection fees (water, sewer and storm), plan check and inspection deposit, and 3.8% building permit automation fee. These fees are collected as part of the secured public improvement agreement. The agreement shall be secured for an amount of 100% of the engineer’s estimate of the construction cost for faithful performance and 100% of the engineer’s estimate of the construction cost for labor & materials.

17. Response to Conditions of Approval: Permittee shall provide a written response to comments upon submittal for building permit application as a separate attachment document. The responses should clearly indicate how each condition of approval in this Resolution has been addressed in the plans and/or supplemental materials and shall note the appropriate plan sheet(s). (P)

18. Compliance with Fire Department and California Fire Code: The Project shall comply with the requirements of the Milpitas Fire Department and the California Fire Code, as adopted by the City.

Changes to the site plan and/or buildings requires review and re-approval by the Fire Department. (F)

19. Compliance with Milpitas Office of Building Safety. The Project shall comply with the requirements of the Office of Building Safety and the International Building Code. (B)

20. Compliance with Milpitas Public Works Land Development Division. The Project/development shall comply with the requirements of the Public Works Land Development Division, as may be amended by the City of Milpitas. (E)

21. Compliance with Milpitas Police Department. The Project/development shall comply with the requirements of the Police Department, as may be amended by the City of Milpitas. (POL)

22. Conditions of Approval Included in Building Permit Plans. As part of the issuance of building permits, the Permittee shall include within the first four pages of the working drawings for a plan check, a list of all conditions of approval imposed by the final approval of the Project. (P)

23. Development in Conformance with Approved Plans: Permittee shall develop the approved Project in conformance with the plans dated March 17, 2026, and approved by the City Council on the date of the signed City Council Resolution, in accordance with these Conditions of Approval. Any deviation from the approved site plan, elevations, materials, colors, landscape plan or other approved submittal shall require that, prior to the issuance of building permits, the Permittee shall submit modified plans and any other applicable materials as required by the City for review and obtain the approval of the Planning Director or Designee. If the Planning Director or designee determines that the deviation is significant, the owner or designee shall be required to apply for review and obtain approval of the Planning Commission or City Council, as applicable, in accordance with the Milpitas Zoning Code. (P)

17 Resolution No. xxxx

PLANNING DEPARTMENT CONDITIONS

24. Transportation Demand Management (TDM): In compliance with MMC XIII-C.6.070, the Permitee/Applicant shall work with the Planning Department on a Project-specific Final TDM Plan revised from the Project’s Draft TDM Plan during the building permit review phase and include a written response to all applicable subsections. The Final TDM Plan must also adhere to all required monitoring and enforcement measures per MMC XIII-C.6.070(E).

25. Construction Equipment: All off-road diesel-powered construction equipment greater than 50 horsepower used on-site shall, at a minimum, meet the US EPA tier 4 final emission standards. The contractor shall maintain records of the equipment fleet (including carb exemption numbers or tier ratings) and provide documentation to the assigned City Planner before the issuance of any building permit approval for construction including grading or site improvement, and to the Project Engineer or City Inspector upon request.

26. MGSP SEIR Mitigation Monitoring and Reporting Program: The Project shall comply with the applicable mitigation measures from the certified Milpitas Main St. Gateway Specific Plan (MGSP) Specific Plan SEIR. The mitigation measures are compiled in the MGSP’s Mitigation Monitoring and Reporting Program (MMRP) as adopted with the Final SEIR as Attachment A. During the building permit review phase, the Permittee/Applicant shall submit as an attachment to the building permit submittals a completed MGSP MMRP table indicating details and any applicable supplemental information and materials to demonstrate compliance with all applicable mitigation measures, including those specified in the 600 Valley Way Residential Development Environmental Checklist, dated March 2026.

27. Landscaping: All approved landscaping and trees shall be permanently maintained and replaced by the property owner(s) and future Homeowners Association with substantially similar plant material or trees (in type or number) as necessary from the approved plan set to provide a permanent, attractive and effective appearance. Any future proposed alterations to the landscaping and trees shall be consistent with applicable sections of MGSP Section 4.3.4, Landscape Design and MMC XIII-C.4, Landscaping Standards.

28. Streetlights: In collaboration with the Engineering Department’s related Project-specific Conditions of Approval regarding streetlights, Permittee shall install where applicable pedestrian scale lights along all public and private street frontages consistent with the Main St. Gateway Specific Plan lighting design standard and demonstrate compliance with applicable standards from MGSP Section

6.5, Streetscape and Lighting. The Permittee shall submit a photometric plan to determine appropriate light levels with submittal of on-site improvement plans during the building permit process.

29. Lighting and Illumination Plan. Prior to issuance of any building permit, Permittee shall submit a lighting and iso-illumination plan and written responses explaining compliance with all applicable sections of MMC XIII-C.2.070, Lighting and Illumination that shall subject to Planning Department review for approval. Proposed light fixtures shall be high quality and complement the architectural style of each townhome. Light fixtures over garage doors shall be of high-quality, residential scale, architectural design, subject to final approval by the Planning Director and/or designee.

18 Resolution No. xxxx

30. CC&Rs. Permittee shall submit proposed covenants, conditions, and restrictions (CC&Rs) to the City for approval prior to submission to the California Department of Real Estate. The CC&Rs shall include disclosure statements informing future residents of noise due to trash enclosure collection; potential noise, traffic, as well as the use and/or storage of any hazardous material associated with normal operations of the adjacent freeway, PG&E, and commercial business activity and development; noise from the freeway; maintenance of all landscaping and trees, maintenance of all publicly accessible private common open space park areas and amenities, and potential graffiti problems towards the tracks. Furthermore, the CC&Rs shall restrict the use of gasoline powered landscape equipment (blowers and string trimmers).

31. Design and Screening of Utilities (Underground, Ground-Mounted, Rooftop): Prior to issuance of any building permit for underground, ground-mounted, or rooftop equipment, Permitee shall describe and demonstrate compliance in a plan set with all applicable standards from MGSP Section 4.1.5, Service and Utility Areas, and MMC XIII-C.2.140, Screening Standards, and MMC XIII-C.2.150, Underground Utilities.

32. Parking: Parking shall be provided as depicted on the Site Plan approved by the City Council and shall consist of the following:
a. RESIDENT: A total of 268 vehicle spaces within unit parking garages. b. GUEST: A total of 60 guest vehicle spaces are to be provided on site.

33. Bicycle Racks: A total of twelve (12) short-term bicycle parking spaces shall be installed on the site and 134 long-term bicycle parking stalls (one located within each unit’s private garage) shall be maintained.

34. Tree Planting Plan: The Project shall comply with Tree Removal Permit No. TR24-0018 and will remove 115 ordinance-sized trees and replace with approximately 338 new trees issued by the Public Works Department at an administrative staff level approval on June 11, 2026, in conformance with the plans dated March 17, 2026 and approved by City Council on the date of the signed City Council Resolution for the Project. Any proposed revisions to the total new tree count and associated tree planting plan shall be re-evaluated and will require the issuance of a subsequent Tree Removal Permit by the Public Works Department.

35. Park in Lieu Fee. Prior to issuance of the final certificate of occupancy, the applicant shall pay a total of $2,620,569.60 for the Parkland In-Lieu Fee is in accordance with Milpitas Municipal Code Section XI-1-9 on the basis of the average valuation of land in the City in effect at the time the SB 330 Preliminary Application for the Project was complete (Government Code Section 65589.5(o)).

36. Public Art Requirement: Permittee shall comply with the City’s Public Art Requirements for Private Development, as set forth in MMC Section XI-14. Fee shall be no less than one-half of one percent of building development costs and shall be payable at time of building permit issuance per building.

19 Resolution No. xxxx

OFFICE OF BUILDING SAFETY DEPARTMENT CONDITIONS

37. Compliance with California Code of Regulations. The Project shall comply with the requirements of the Office of Building Safety and the California Code of Regulations Title 24 and the Milpitas Municipal Code as adopted by the City. Building permits shall be submitted to and approved by the Office of Building Safety prior to start of construction. All California Code of Regulations Title 24 and Milpitas Municipal Code requirements applicable at the time of building permit application must be met in advance of any building permit approvals or related construction. Changes to the site plan and/or building plan require review and approval by the Office of Building Safety.

38. Demolition. All existing structures and improvements to the property, including any unpermitted or otherwise legally non-compliant structures and improvements, shall be demolished prior to construction of any new development contemplated by this building permit.

OFFICE OF HOUSING

39. Affordable Housing Requirement: Permittee shall comply with the City’s Affordable Housing Ordinance, as set forth in Milpitas Municipal Code Section XI-1-3.00. All new residential development projects of ten units or more designed and intended for permanent occupancy shall construct 15 percent of the total number of dwelling units within the development as affordable units, unless otherwise remedied by the City Council.
a. Permittee shall reserve 20 townhome condominium units for moderate income households, consisting of:
i. Eight, Unit Type 1 Townhome Units (3-bedroom unit, tandem parking) ii. Eight, Unit Type 2 Townhome Units (3-bedroom unit, side by side parking) iii. Four, Unit Type 3 Townhome Units (4-bedroom unit, side-by-side parking)

40. Affordable Housing Agreement: An executed agreement imposing appropriate ownership controls on the affordable units is required prior to certificate of occupancy. The agreement shall be approved by the Milpitas City Attorney prior to recordation.

41. Fractional Unit In-Lieu Fee Payment for 15 Percent Affordability Requirement: Per MMC XII-1-3.00, the Permittee shall pay a fractional affordable housing in-lieu fee for 0.1 housing units, as of the SB 330 Vesting Date.

42. Concurrent Construction of Affordable Units: Per MMC XII-1-3.03, all affordable units in a project or phase of a project shall be constructed prior or concurrently with market-rate units, unless the City Manager or designee determines in writing that extenuating circumstances exist that make concurrent construction infeasible or impractical. In phased developments, the affordability requirement will be calculated on the basis of the whole development, but affordable units shall be developed in advance or concurrently with market rate units in each phase unless the City Manager or designee determines in writing that extenuating circumstances exist that make concurrent construction infeasible or impractical. If this occurs, a schedule must be developed by the applicant and approved by the City Manager to ensure that affordable units are built expeditiously and before final discretionary permits are issued. Each phase must include the required number of affordable units based on the number of market-rate units in that phase, and on-site affordable housing units must be developed concurrently with the market-rate units in each phase.

20 Resolution No. xxxx

43. Design and Distribution of Affordable Units: Per MMC XII-1-3.04, Affordable units shall meet the following applicable requirements:
a. All affordable units shall be reasonably comparable in terms of floor plan and base finish amenities to market rate units in the proposed development. b. The quality of the exterior design, landscaping, and construction of the affordable units shall be consistent with the other units in the proposed development. c. Affordable units shall have the same access to common entrances from the exterior as market rate units.
d. Affordable units shall have the same access to all project amenities and recreational facilities available to market rate units.
e. All affordable units shall be reasonably dispersed throughout the Project.

FIRE DEPARTMENT CONDITIONS

FIRE CODE REQUIREMENTS
The plans approved by the City Council and/or the Planning permit process are not building construction plans and have not been reviewed nor approved for conformance to the California Building Code (CBC), California Fire Code (CFC) and the Milpitas Municipal Code (MMC). Do not consider this review as a final review for building construction plans approved by the Fire Department. Building construction plans must be submitted for review and approval before construction is to commence. The following notes are a general list of the applicable code requirements (2022 Edition) and are provided to assist with the building permit process. Please note that these are not all inclusive. All applicable Building, Fire and Municipal Code requirements must be met in advance of any building permit approvals or related construction. The notes listed below will apply to ALL buildings and site, unless specifically identify for one particular building or area.

44. Technical Assistance: To determine the acceptability of technologies, processes, products, facilities, materials, and uses attending the design, operation or use of a building or premises subject to inspection by the Fire Code Official, the Fire Code Official is authorized to require the owner or agent to provide, without charge to the jurisdiction, a technical opinion(s), plan review(s) and/or report(s).

CFC Section 104.8.2

45. Electronic Documents: The Fire Code Official may require electronic base documents for all construction documents and operational permits. The Fire Code Official shall designate the software base format for the electronic documents. CFC Section 106.1.1, added by MMC Section V-300-2.28

46. Fire Department Access: Fire Department apparatus and staff access shall be provided to all buildings and site. Detailed review will be done during construction permit process. The plans appear to be in general conformance with the requirements. Final design shall meet the requirements listed below.

CFC Section 503
a. Minimum Number of Fire Apparatus Access Points: A Minimum of two independent and approved (approved by the Fire Code Official) means of fire apparatus access shall be provided for the site. Buildings or facilities exceeding 30 feet (9144 mm), or three stories in height, or 50,000 square feet (5760 m2) shall be provided with at least two means of fire apparatus access for each structure. CFC, Section D104.1, adopted and amended by MMC V-300-2.170