Milpitas City Council
June 16, 2026

June 16, 2026 Milpitas City Council Agenda Page 1

REGULAR MEETING OF THE MILPITAS

CITY COUNCIL
AGENDA
TUESDAY, JUNE 16, 2026
CITY COUNCIL CHAMBER, 455 E. CALAVERAS BLVD, MILPITAS, CA 7:00 PM (PUBLIC BUSINESS)
For assistance in the following languages, you may call:

Đối với Việt Nam, gọi 408-586-2400
Para sa Tagalog, tumawag sa 408-586-3051
Para español, llame 408-586-3072
* To access written translation during the meeting, scan the QR Code.

The City Council meeting is held in the City Council Chamber at City Hall, 455 E. Calaveras Blvd., Milpitas and via teleconference/Zoom webinar.

You may watch the Council meeting without providing public comment by accessing it via links here.

Meeting shall be livestreamed - Go to:

Facebook: https://www.facebook.com/CityofMilpitas/
YouTube: https://www.milpitas.gov/youtube
Web Streaming: https://www.milpitas.gov/webstreaming

PUBLIC COMMENT INSTRUCTIONS
Oral public comments may only be provided live during the City Council meeting in person, unless the City Council approves remote public comment. All comments provided shall be limited to three minutes or less as determined by the Mayor. All members of the public will be limited to one comment per agenda item, and one comment for non-agenda items. Members of the public may submit written comments by email to [email protected]
The meeting will be streamed via Zoom for viewing purposes only unless the City Council approves remote public comment. To watch via Zoom, please register at:
https://ci-milpitas-ca-gov.zoom.us/webinar/register/WN_5p1iKjHaSkmZ0Q7oyGE66Q NOTE: If a member of the public wishes to share any presentation materials for Council consideration, they must be submitted to the Clerk’s Office by email to [email protected] by 12:00 p.m. on the day of the meeting. No presentations will be accepted in person in the Council Chambers.

MILPITAS CITY COUNCIL CODE OF CONDUCT
• Be respectful and courteous (words, tone, and body language). • Model civility.
• Avoid surprises.
• Praise publicly and criticize privately.
• Focus on the issue, not the person.
• Use electronic devices appropriately while on the Council dais. • Disclose conflicts of interest and affiliations related to agenda items. • Separate governing from campaigning.
• The Council speaks with one voice after making policy on issues. • Respect the line between policy and administration.
• Council will hold one another accountable to comply with this Code of Conduct.

June 16, 2026 Milpitas City Council Agenda Page 2
CALL MEETING TO ORDER by Mayor and ROLL CALL by City Clerk (7:00 PM)

PLEDGE OF ALLEGIANCE
INVOCATION (Councilmember Lam)

PRESENTATIONS
● Parks and Recreation Month (Proclamation)
● Commending Kulwant Singh on National Hall of Fame Recognition (Commendation)

PUBLIC FORUM
Members of the public are invited to speak on any item that does not appear on today’s agenda. Comments will be limited to three minutes or less at the Mayor’s discretion. When called to speak, you are encouraged to state your name for the record.

As an item not listed on the agenda, no action can be taken, however the City Council may instruct the City Manager to place the item on a future meeting agenda.

ANNOUNCEMENT OF CONFLICT OF INTEREST AND CAMPAIGN CONTRIBUTIONS

READING OF THE CITY COUNCIL CODE OF CONDUCT

APPROVAL OF AGENDA

CONSENT CALENDAR
Consent calendar items are considered to be routine and will be considered for adoption by one motion. There will be no separate discussion of these items unless a City Councilmember, member of the audience or staff requests the Council to remove an item from (or be added to) the consent calendar. Any person desiring to speak on any item on the consent calendar should ask to have that item removed from the consent calendar.

C1. Receive City Council Calendar of Meetings (Staff Contact: Suzanne Guzzetta, City Clerk, 408- 586-3001)
Recommendation: Receive City Council Calendar of Meetings for June, July and August 2026.

C2. Approve City Council Meeting Minutes (Staff Contact: Suzanne Guzzetta, City Clerk, 408-586- 3001)
Recommendation: Approve City Council Meeting minutes of June 2 and 9, 2026.

C3. Receive the Preview List of Anticipated Items for the Next Regular City Council Meeting (Staff Contact: Suzanne Guzzetta, City Clerk, 408-586-3001)
Recommendation: Receive the list of anticipated agenda items for the next regular City Council meeting.

C4. Receive and Review the List of Agenda Items Requested by City Councilmembers (Staff Contact: Suzanne Guzzetta, City Clerk, 408-586-3001)
Recommendation: Receive the list of items that have been requested by City Councilmembers and received consensus in previous meetings to date.

C5. Consider Recommendations from Mayor Montano for Appointments to City Commissions (Staff Contact: Suzanne Guzzetta, City Clerk, 408-586-3005)

June 16, 2026 Milpitas City Council Agenda Page 3
Recommendation: Receive Mayor Montano's recommendations and approve and confirm recommendations for appointments to City Commissions.

C6. Waive the Second Reading and Adopt Ordinance No. 262.9 Repealing and Replacing Title I, Chapter 310 of the Milpitas Municipal Code Regarding Open Government (Staff Contact:

Christian Curtis, City Attorney, 408-586-3040)
Recommendation: Waive the second reading and adopt Ordinance No. 262.9 repealing and replacing Title I, Chapter 310 of the Milpitas Municipal Code regarding open government.

C7. Authorize the City Manager, or Designee, to Negotiate and Execute a Professional Services Agreement with WeHOPE for Homeless Outreach, Assessment, and Mobile Hygiene Services (Staff Contact: Luz Cofresí-Howe, Finance Director, 408-586-3111; and Sarah Balcha, Senior Administrative Analyst, 408-586-3268)
Recommendation: (1) Authorize the City Manager, or designee, to negotiate and execute a Professional Services Agreement with WeHOPE for Homeless Outreach, Assessment, and Mobile Hygiene Services for a five-year term and a maximum compensation not to exceed $849,208, subject to the appropriation of funds; and (2) Approve an increase of $159,952 in the Affordable Housing Grant Fund in FY 2026-27.

C8. Authorize the City Manager, or Designee, to Negotiate and Execute an Agreement for Crossing Guard Services with All City Management Services, Inc. (Staff Contact: Luz Cofresí-Howe, Finance Director, 408-586-3111; and Jared Hernandez, Chief of Police, 408-586-2406) Recommendation: Authorize the City Manager, or designee, to negotiate and execute a Professional Services Agreement for Crossing Guard Services with All City Management Services, Inc. for an initial three-year term of August 1, 2026 through July 31, 2029 with a maximum compensation of $2,920,549 plus one additional option, to be exercised at the City’s sole discretion, to extend the agreement for an additional three-year term through July 31, 2032 with a maximum compensation of $3,190,055 for a combined contract not-to-exceed amount of $6,110,604 for the full six years, subject to the appropriation of funds.

C9. Authorize the City Manager, or Designee, to Negotiate and Execute a Purchase Order with JWC Environmental, Inc. for the Purchase and Installation of Two Channel Monster Grinders (Staff Contact: Luz Cofresí-Howe, Finance Director, 408-586-3111; and Christian Di Renzo, Public Works Director, 408-586-2602)
Recommendation: Authorize the City Manager, or designee, to negotiate and execute a purchase order with JWC Environmental, Inc. for the purchase and installation of two Channel Monster Grinders for a not-to-exceed amount of $275,722.

C10. Adopt Ordinance No. 38.862 Approving a Development Agreement between the City of Milpitas and Milpitas – District 2 Associates, LLC and Fields CH Owner, LLC (Staff Contact: Jay Lee, Planning Director, 408-586-3077)
Recommendation: Waive the second reading and adopt Ordinance No. 38.862 approving a Development Agreement between the City of Milpitas and Milpitas – District 2 Associates, LLC and Fields CH Owner, LLC to provide certainty as to the applicable development standards for the development of 109 townhomes and 10 ADUs at 1320 McCandless Drive (APNs 086-33-112, -113, and -114).

C11. Authorize the City Manager, or Designee, to Accept the 2025 Bulletproof Vest Partnership Grant (Staff Contact: Jared Hernandez, Chief of Police, 408-586-2406)

June 16, 2026 Milpitas City Council Agenda Page 4
Recommendation: (1) Authorize the City Manager, or designee, to accept the 2025 Bulletproof Vest Partnership Grant in the amount of $7,040.28; and (2) Approve an appropriation of $7,040.28 in BVP grant revenue and a corresponding $7,040.28 in expenditure authority within the Police Department's FY 2026-27 General Fund operating budget.

C12. Approve an Amendment to the Agreement with Bennett Engineering for Street Resurfacing Project 2027, CIP No. 4307 (Staff Contact: Christian Di Renzo, Public Works Director, 408-586- 2602; and Michael Silveira, City Engineer, 408-586-3303) Recommendation: Approve and authorize the City Manager, or designee, to execute Amendment No. 1 to the Design Services Agreement with Bennett Engineering in an amount not-to-exceed $366,458 for the Street Resurfacing Project 2027, CIP No. 4307.

C13. Adopt a Resolution to Approve Project Plans and Specifications, Award Construction Contract to Joseph J. Albanese, Inc., Approve Agreements with H.T. Harvey & Associates, and Baseline Environmental Consulting, and Approve Amendment to the Agreement with Artik Art & Architecture for the S. Milpitas Boulevard Road Extension, CIP No. 2016 (Staff Contact:

Christian Di Renzo, Public Works Director, 408-586-2602; and Michael Silveira, City Engineer, 408-586-3303)
Recommendation: Adopt a resolution to: (1) Approve the project plans and specifications; (2) Accept the bid withdrawal request from A&B Construction Inc.; (3) Award the construction contract to Joseph J. Albanese, Inc., the lowest responsible bidder submitting a responsive bid, in the amount of $5,730,000; (4) Authorize the City Manager, or designee, to execute the construction contract with Joseph J. Albanese, Inc.; (5) Establish a construction contingency of $1,146,000 and authorize the Public Works Director to negotiate and execute contract change order(s) in an amount not-to-exceed $1,146,000; (6) Approve and authorize the City Manager, or designee, to execute a Professional Services Agreement with H.T. Harvey & Associates in an amount not-to-exceed $111,498; (7) Approve and authorize the City Manager, or designee, to execute a Professional Services Agreement with Baseline Environmental Consulting in an amount not-to-exceed $197,617; and (8) Approve and authorize the City Manager, or designee, to execute Amendment No. 1 to the Design Services Agreement with Artik Art & Architecture in an amount not-to-exceed $72,400 for S. Milpitas Boulevard Road Extension, CIP No. 2016.

C14. Approve the Improvement Agreement with Shapell Norcal Rental Properties, LLC for a Commercial Building at 145 North Milpitas Boulevard (Staff Contact: Christian Di Renzo, Public Works Director, 408-586-2602; and Michael Silveira, City Engineer, 408-586-3303) Recommendation: Approve and authorize the City Manager, or designee, to execute the Improvement Agreement between the City of Milpitas and Shapell Norcal Rental Properties, LLC with a value of $318,000 for a new commercial building at 145 North Milpitas Boulevard.

C15. Authorize the City Manager, or Designee, to Negotiate and Execute Purchase Orders and SalesRelated Documents to Effectuate the Purchase of Three 2026 Chevrolet Silverado EV Trucks and Two 2025 Dump Trucks (Staff Contact: Luz Cofresí-Howe, Finance Director, 408-586-3111; and Christian Di Renzo, Public Works Director, 408-586-2602) Recommendation: Authorize the City Manager, or designee, to negotiate and execute purchase orders and sales-related documentation with (1) National Auto Fleet Group for the purchase of three 2026 Chevrolet Silverado EV trucks for an amount not to exceed $183,714, inclusive of sales tax and fees; and (2) Golden Gate Truck Center for the purchase of two 2025 dump trucks for an amount not to exceed $314,608, inclusive of sales tax and fees.

June 16, 2026 Milpitas City Council Agenda Page 5
C16. Approve a Design Services Agreement with TJKM Transportation Consultants for HSIP Traffic Safety Improvements, CIP No. 4314 (Staff Contact: Christian Di Renzo, Public Works Director, 408-586-2602; and Michael Silveira, City Engineer, 408-586-3303) Recommendation: Approve and authorize the City Manager, or designee, to execute a Design Services Agreement with TJKM Transportation Consultants in an amount not-to-exceed $327,732 for the HSIP Traffic Safety Improvements, CIP No. 4314.

C17. 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)
Recommendation: Approve Fee Waivers for Samuel Ayer High School Alumni Association in the amount of $1,500 for the Samuel Ayer High School Annual Alumni Picnic at Murphy Park on September 19, 2026.

C18. 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) 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.

C19. 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) 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.

C20. Authorize the City Manager, or Designee, to 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)
Recommendation: Authorize the City Manager, or designee, to 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.

PUBLIC HEARINGS
Members of the public may be allotted up to three (3) minutes or less at the Mayor’s discretion, to comment on any public hearing item. Applicants/Appellants and their representatives may be allotted up to a total of ten (10) minutes for opening statements and up to a total of five (5) minutes maximum for closing statements. Items requested/recommended for continuance are subject to Council’s consent at the meeting.

21. 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) 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

June 16, 2026 Milpitas City Council Agenda Page 6
agreements with the approved subrecipients, and amend the CDBG agreements as needed to comply with CDBG guidelines.

22. 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)
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.

COMMUNITY DEVELOPMENT

23. Review and Approve the Proposed Storefront Crime Prevention Program (Staff Contact:

Madison Nguyen, Interim Economic Development Director, 408-586-3046) Recommendation: Review and accept the proposed Storefront Crime Prevention Program strategy.

ANNOUNCEMENTS AND FUTURE AGENDA ITEMS
Members of the City Council or City Manager may make brief announcements at this time. Members of the City Council may also suggest future agenda items. For future agenda items, the City Council shall not debate the topic or engage in discussion but shall simply state a “yes” or “no” as whether to move the item forward. If a majority of the City Council agrees to move the item forward, the City Manager shall place the item on a future agenda.

ADJOURNMENT

KNOW YOUR RIGHTS UNDER THE OPEN GOVERNMENT ORDINANCE
Government’s duty is to serve the public, reaching its decisions in full view of the public. Commissions and other City agencies exist to conduct the people’s business. This ordinance assures that deliberations are conducted before the people and City operations are open to the people’s review. For more information on your rights under the Open Government Ordinance or to report a violation, contact the City Attorney’s office at Milpitas City Hall, 455 E. Calaveras Blvd., Milpitas, CA 95035 e-mail: [email protected] / Phone: 408-586-3040
The Open Government Ordinance is codified in the Milpitas Municipal Code as Title I Chapter 310 and is available online at the City’s website www.milpitas.gov by selecting the Milpitas Municipal Code link.

Materials related to an item on this agenda submitted to the City Council after initial distribution of the agenda packet are available for public inspection at the City Clerk’s office at Milpitas City Hall, 3rd floor 455 E. Calaveras Blvd., Milpitas and on City website. City Council agendas and related materials can be viewed online: www.milpitas.gov/government/council/agenda_minutes.asp (select meeting date)

APPLY TO SERVE ON A CITY COMMISSION
Commission application forms are available online at www.milpitas.gov or at Milpitas City Hall.

Contact the City Clerk’s Office at 408-586-3001 for more information.

If you need assistance, per the Americans with Disabilities Act, for any City of Milpitas public meeting, please call the City Clerk at 408-586-3005 or send an e-mail to [email protected] prior to the meeting. Larger font agendas are available upon request.

June 16, 2026 Milpitas City Council Agenda Page 7

Milpitas City Council Calendar
June 2026
Sunday Monday Tuesday Wednesday Thursday Friday Saturday 1 2
6:00 PM-Closed Session
7:00 PM-City Council
3 2:00 PM-Santa Clara VTA Monthly
Briefing - Northeast Group (CM)
(Santa Clara)
5:30 PM-Veterans Commission (GB)
4 5:30 PM-Milpitas Chamber of
Commerce Board (GB)
5:30 PM-Santa Clara VTA Board of
Directors (CM)
5 6
7 8
4:30 PM-Economic Development and
Trade Commission (WL)
9 3:00 PM- Special City Council
10 7:00 PM-Silicon Valley Clean Energy
Board of Directors (GB) (Sunnyvale)
7:00 PM-Planning Commission
11 4:00 PM-Treatment Plant Advisory
Committee (CM) (San Jose)
4:00 PM-Santa Clara VTA Policy
Advisory Committee (EC)
6:00 PM-Youth Advisory Commission
(HL)
7:00 PM-Cities Assoc of SCC (CM)
12 13
14 15
7:00 PM-Technology Commission
(WL)
16 5:00 PM-Closed Session
7:00 PM-City Council
17 4:00 PM-City Council Finance
Subcommittee (CM/EC)
6:00 PM-Energy and Environmental
Sustainability Commission (EC)
18 9:00 AM-ABAG General Assembly
Conference (HL)
5:30 PM-Measure F Oversight
Committee
19 20
21 22 23
1:30 PM-Senior Advisory Commission
(HL)
24 5:30 PM-Cities Assoc. of SCC -
Recycling and Waste Reduction
Commission (CM)
7:00 PM-Planning Commission
25 26 27
28 29 30
May 2026

S M T W T F S
1 2
3 4 5 6 7 8 9
10 11 12 13 14 15 16
17 18 19 20 21 22 23
24 25 26 27 28 29 30
31 July 2026

S M T W T F S
1 2 3 4
5 6 7 8 9 10 11
12 13 14 15 16 17 18
19 20 21 22 23 24 25
26 27 28 29 30 31

Milpitas City Council Calendar
July 2026
Sunday Monday Tuesday Wednesday Thursday Friday Saturday 1 2:00 PM-Santa Clara VTA Monthly
Briefing - Northeast Group (CM)
(Santa Clara)
2 5:30 PM-Santa Clara VTA Board of
Directors (CM)
5:30 PM-Milpitas Chamber of
Commerce Board (GB)
3 INDEPENDENCE DAY
Observance
City Hall Closed
4 5 6 7 8
7:00 PM-Silicon Valley Clean Energy
Board of Directors (GB) (Sunnyvale)
9 4:00 PM-Santa Clara VTA Policy
Advisory Committee (EC)
4:00 PM-Treatment Plant Advisory
Committee (CM) (San Jose)
7:00 PM-Cities Assoc of SCC (CM)
10 11
12 13 14 15 16
6:30 PM-Bay Area Water Supply
Conserv Agency (CM) (Oak Room -
San Mateo Main Library)
17 18
19 20 21 22
12:00 PM-Santa Clara Valley Water
District - Water Commission (CM)
23 4:00 PM-Silicon Valley Regional
Interoperability Authority (SVRIA)
(GB)
24 25
26 27 28 29 30 31
June 2026

S M T W T F S
1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30
August 2026

S M T W T F S
1 2 3 4 5 6 7 8
9 10 11 12 13 14 15
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30 31

Milpitas City Council Calendar
August 2026
Sunday Monday Tuesday Wednesday Thursday Friday Saturday 1 2 3
7:00 PM-Parks, Recreation & Cultural
Resources Commission (EC)
4 5
2:00 PM-Santa Clara VTA Monthly
Briefing - Northeast Group (CM)
(Santa Clara)
5:30 PM-Special City Council
5:30 PM-Veterans Commission (GB)
7:00 PM-Community Housing
Commission (EC)
6 5:30 PM-Milpitas Chamber of
Commerce Board (GB)
5:30 PM-Santa Clara VTA Board of
Directors (CM)
7 8
9 10
4:30 PM-Economic Development and
Trade Commission (WL)
11 5:30 PM-Special City Council
12 7:00 PM-Silicon Valley Clean Energy
Board of Directors (GB) (Sunnyvale)
7:00 PM-Planning Commission
13 4:00 PM-Treatment Plant Advisory
Committee (CM) (San Jose)
4:00 PM-Santa Clara VTA Policy
Advisory Committee (EC)
6:00 PM-Youth Advisory Commission
(HL)
7:00 PM-Cities Assoc of SCC (CM)
14 15
16 17
7:00 PM-Science, Technology, and
Innovation Commission (WL)
18 5:00 PM-Closed Session
7:00 PM-City Council
19 4:00 PM-City Council Finance
Subcommittee (CM/EC)
6:00 PM-Energy and Environmental
Sustainability Commission (EC)
20 21 22
23 24 25
1:30 PM-Senior Advisory Commission
(HL)
26 5:30 PM-Cities Assoc. of SCC -
Recycling and Waste Reduction
Commission (CM)
7:00 PM-Planning Commission
27 28 29
30 31
July 2026

S M T W T F S
1 2 3 4
5 6 7 8 9 10 11
12 13 14 15 16 17 18
19 20 21 22 23 24 25
26 27 28 29 30 31
September 2026

S M T W T F S
1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30

June 2, 2026 Milpitas City Council Minutes Page 1

JOINT SPECIAL MEETING OF THE MILPITAS

CITY COUNCIL, HOUSING AUTHORITY AND

PUBLIC FINANCING AUTHORITY

MINUTES
TUESDAY, JUNE 2, 2026
The City Council of the City of Milpitas convened in a Special Joint Meeting of the Milpitas City Council, Housing Authority, and Public Financing Authority on June 2, 2026, in the City Council Chamber, 455 E.

Calaveras Blvd, Milpitas, CA, and via teleconference/Zoom webinar.

CALL MEETING TO ORDER by Mayor and ROLL CALL by City Clerk Mayor Montano called the Special City Council meeting to order at 5 PM. Roll Call was taken by City Clerk Guzzetta.

PRESENT: Mayor Montano, Vice Mayor Barbadillo (5:06 PM), Councilmember Chua, Councilmember Lam, Councilmember Lien
ABSENT: None

ADJOURN TO CLOSED SESSION
City Attorney Curtis briefed the City Council on the Closed Session agenda.

There being no public speakers, the City Council adjourned to closed session at 5:02 PM.

Vice Mayor Barbadillo arrived at 5:06 PM.
(a) CONFERENCE WITH LEGAL COUNSEL
Pursuant to Government Code Section 54956.9(d)(1)
Existing Litigation: Alexander Prince vs. City of Milpitas, WCAB Case Nos. ADJ17651048, ADJ18892457, and ADJ17651067
CLOSED SESSION ANNOUNCEMENT:

The City Council reconvened at 5:48 PM. City Attorney Curtis had nothing to report from Closed Session.

PLEDGE OF ALLEGIANCE
Vice Mayor Barbadillo led the Pledge of Allegiance.

INVOCATION
Councilmember Lam presented the invocation.

PRESENTATIONS
There were no presentations.

ANNOUNCEMENT OF CONFLICT OF INTEREST AND CAMPAIGN CONTRIBUTIONS City Attorney Curtis asked the Mayor and City Councilmembers if they had any personal conflicts of interest.

By roll call, there were no conflicts of interest. City Attorney Curtis asked the Mayor and City

June 2, 2026 Milpitas City Council Minutes Page 2
Councilmembers if they had any reportable campaign contributions. By roll call, there were no reportable campaign contributions.

READING OF THE CITY COUNCIL CODE OF CONDUCT
Mayor Montano read the City Council Code of Conduct.

APPROVAL OF AGENDA
After discussion, motion: to approve the agenda.

Motion/Second: Councilmember Lien / Councilmember Chua
Motion carried by the following:

AYES: Mayor Montano, Vice Mayor Barbadillo, Councilmember Chua, Councilmember Lam, Councilmember Lien
NOES: None

CONSENT CALENDAR
Vice Mayor Barbadillo asked to pull Item C15 for a brief discussion.

There were no public speakers.

After discussion, motion: to approve the Consent Calendar with Item C15 pulled.

Motion/Second: Councilmember Chua / Councilmember Lien
Motion carried by the following:

AYES: Mayor Montano, Vice Mayor Barbadillo, Councilmember Chua, Councilmember Lam, Councilmember Lien
NOES: None

1. Receive City Council Calendar of Meetings (Staff Contact: Suzanne Guzzetta, City Clerk, 408- 586-3001)
Received City Council Calendar of Meetings for June 2026.

2. Approve City Council Meeting Minutes (Staff Contact: Suzanne Guzzetta, City Clerk, 408-586- 3001)
Approved City Council Meeting minutes of May 19, 2026.

3. Receive the Preview List of Anticipated Items for the Next Regular City Council Meeting (Staff Contact: Suzanne Guzzetta, City Clerk, 408-586-3001)
Received the list of anticipated agenda items for the next regular City Council meeting.

4. Receive and Review the List of Agenda Items Requested by City Councilmembers (Staff Contact: Suzanne Guzzetta, City Clerk, 408-586-3001)
Received the list of items that have been requested by City Councilmembers and received consensus in previous meetings to date.

5. Adopt a Resolution Calling for the General Municipal Election on November 3, 2026 (Staff Contact: Suzanne Guzzetta, City Clerk, 408-586-3001)

June 2, 2026 Milpitas City Council Minutes Page 3
Adopted Resolution No. 9514 calling a General Municipal Election for the City of Milpitas on Tuesday, November 3, 2026, requesting consolidation of the election in accordance with California Elections Code Section 10418, and requesting services from the Santa Clara County Registrar of Voters.

6. Authorize the City Manager, or Designee, to Negotiate and Execute the First Amendment to the Agreement for Animal Services between the City of Milpitas and the City of San José (Staff Contact: Matt Cano, Assistant City Manager, 408-586-3012) (1) Authorized the City Manager, or designee, to negotiate and execute the first amendment to the agreement with the City of San José for the continued provision of animal services, extending the term through June 30, 2035, in a total not-to-exceed amount of $10,282,902 in accordance with the annual payment schedule set forth in the Fiscal Impact section of this Agenda Report; and (2) Authorized the City Manager, or designee, to approve and execute amendments or change orders to the Agreement, subject to the total not-to-exceed contract amount.

7. Adopt a Resolution to Approve Modifications to the Affordable Housing Conditions for Site Development Amendment Permit SA24-0005 and Density Bonus Permit DB24-0002 to Allow an On-site Manager’s Unit Within the Previously Approved Residential Apartment Building Located within the “1355 California Project” (Staff Contact: Matt Cano, Assistant City Manager, 408-586- 3012)
Adopted Resolution No. 9515 approving modifications to the affordable housing conditions for Site Development Amendment Permit SA24-0005 and Density Bonus Permit DB24-0002 to allow an on-site manager’s unit within the previously approved residential apartment building located within the “1355 California Project” in accordance with the City’s Affordable Housing Ordinance.

8. Authorize the City Manager, or their Designee, to Execute an Amendment to the Professional Services Agreement with Invoice Cloud, Inc (Staff Contact: Luz Cofresí-Howe, Finance Director, 408-586-3111)
Authorized the City Manager, or their designee, to execute an amendment to the Professional Services Agreement for Utility Electronic Bill Presentment and Payment services with Invoice Cloud, Inc. to extend the term for one year through June 30, 2027 and add $77,197 for a revised not-to-exceed compensation of $144,913, subject to the appropriation of funds.

9. Adopt a Resolution Updating and Establishing Various User and Regulatory Fees for 500 of 668 Fees Reviewed as Part of the FY 2026-27 User and Regulatory Fee Study, Effective August 3, 2026 (Staff Contact: Luz Cofresí-Howe, Finance Director, 408-586-3111) Adopted Resolution No. 9516 updating and establishing user and regulatory fees for 500 of 668 fees examined in the FY 2026-27 fee study, effective August 3, 2026, and establishing an annual inflationary adjustment framework subject to City Council confirmation each fiscal year.

10. Authorize the City Manager, or their Designee, to Execute an Amendment to the Cayenta Software Support and Maintenance Agreement with N. Harris Computer Corporation (Staff Contact: Luz Cofresí-Howe, Finance Director, 408-586-3111) Authorized the City Manager, or designee, to execute an amendment to the Cayenta Software Support and Maintenance Agreement with N. Harris Computer Corporation, subject to the appropriation of funds, to: (1) Extend the Agreement for one additional year through June 30, 2027 and increase the contract amount by $317,063, for a revised contract not-to-exceed of $2,051,416, plus a 10% contingency of $31,706 for as-required related services, for a total not-to-exceed of $2,083,122; (2) Add four additional one-year options to extend the Agreement through June 30, 2031 for ongoing maintenance and support of the Cayenta Utility Billing System, at estimated costs not to exceed

June 2, 2026 Milpitas City Council Minutes Page 4
$480,794 for the four option terms, plus a 10% contingency of $48,079 for as-required related services, for a total estimated not-to-exceed of $528,873; and (3) Authorize City Manager or designee to exercise those options as appropriate, subject to appropriations.

11. Authorize the City Manager, or Designee, to Execute Amendment No. 3 to the Agreement with Chandler Asset Management, Inc. for Investment Services (Staff Contact: Luz Cofresí-Howe, Finance Director, 408-586-3111)
Authorized the City Manager, or designee, to execute Amendment No. 3 to the Professional Services Agreement with Chandler Asset Management, Inc. for Investment Services (Contract No. 253), extending the term through December 31, 2026 and increasing the not-to-exceed compensation by $100,000, for a revised total not-to-exceed amount of $890,000.

12. Adopt Resolutions to Approve the Continued Investment of Monies in the Local Agency Investment Fund and Designation of Officers Authorized to Sign on the Account (Staff Contact:

Luz Cofresí-Howe, Finance Director, 408-586-3111)
(1) Adopted Resolution No. 9517 of the Milpitas City Council to authorize the continued investment of monies in the Local Agency Investment Fund and designation of officers authorized to sign on the respective accounts; and (2) Adopted Resolution No. PFA 31 of the Board of Directors of the Milpitas Public Financing Authority to approve continued investment of monies in the Local Agency Investment Fund and designation of officers authorized to sign on the respective accounts.

13. Authorize the City Manager, or Designee, to Negotiate and Execute Two Renewal Options Under the Professional Services Agreement with JPMorgan Chase Bank, N.A. for Comprehensive Banking Services (Staff Contact: Luz Cofresí-Howe, Finance Director, 408-586-3111) Authorized the City Manager, or designee, to negotiate and execute the two two-year renewal options under the existing Professional Services Agreement with JPMorgan Chase Bank, N.A. for Comprehensive Banking Services, extending the maximum term of the Agreement through June 30, 2030, subject to the appropriation of funds.

14. Authorize the City Manager, or Designee, to Negotiate and Execute a Purchase Order with Golden State Emergency Vehicle Service, Inc. for As-Requested Parts, Service, and Maintenence (Staff Contact: Finance Director, Luz Cofresí-Howe, 408-586-3111; and Christian Di Renzo, Public Works Director, 408-586-2602)
Authorized the City Manager, or designee, to negotiate and execute a Purchase Order with Golden State Emergency Vehicle Service, Inc. for as-requested parts, service, and maintenance for a not-toexceed compensation of $530,914 for a five-year term, subject to the appropriation of funds.

15. Adopt a Resolution Approving a Site Development Permit Amendment Permit to Develop a New Single-family Residence on a Vacant 1.1-Acre Lot Located in the R1-H Single-Family Residential Zoning District with a Hillside Combining District at 1321 Terra Vista Court (Staff Contact: Jay Lee, Planning Director, 408-586-3077)
Item pulled from Consent Calendar.

ITEMS PULLED FROM CONSENT CALENDAR

15. Adopt a Resolution Approving a Site Development Permit Amendment Permit to Develop a New Single-family Residence on a Vacant 1.1-Acre Lot Located in the R1-H Single-Family Residential Zoning District with a Hillside Combining District at 1321 Terra Vista Court (Staff Contact: Jay Lee, Planning Director, 408-586-3077)

June 2, 2026 Milpitas City Council Minutes Page 5
After discussion, motion: to adopt Resolution No. 9518 approving Site Development Permit Amendment No. SA25-0003, subject to the attached Conditions of Approval, to develop a new singlefamily residence on a vacant 1.1-acre lot located in the R1-H Single-family Residential Zoning District with a Hillside Combining District at 1321 Terra Vista Court..

Motion/Second: Vice Mayor Barbadillo / Councilmember Chua Motion carried by the following:

AYES: Mayor Montano, Vice Mayor Barbadillo, Councilmember Chua, Councilmember Lam, Councilmember Lien
NOES: None

PUBLIC HEARINGS

16. Adopt Resolutions to Approve the Fiscal Year 2026-27 Proposed Operating Budget for the City of Milpitas and the Milpitas Housing Authority, Approve the Fiscal Year 2026-27 Gann Appropriations Limit, Authorize Various Financial Actions, Fiscal Policies and Budget Guidelines, and Amend the Classification Plan for Alignment with the FY 2026-27 Proposed Operating Budget, the Minimum Wage Increase, and Salary Schedules Consistent with Previous Council Action (Staff Contact: Luz Cofresí-Howe, Finance Director, 408-586-3111) City Manager Hopkins introduced the item. Finance Director Cofresí-Howe presented the FY 2026-27 Proposed Operating Budget, joined by Budget Manager Vurich and Assistant City Manager Matt Cano.

Councilmember Chua asked questions regarding changes to projected budget surpluses and the assumptions used in developing revenue and expenditure forecasts. Staff provided clarification regarding updated cost projections and the timing of information received during the budget development process.

Vice Mayor Barbadillo expressed concerns regarding long-term budget projections and future fiscal sustainability. Staff responded to his questions, and Vice Mayor Barbadillo suggested additional measures to address potential future budget shortfalls.

Councilmember Lam asked questions regarding specific items contained in the budget document. Staff provided clarification and responded to his questions.

Councilmember Lien spoke in support of the proposed budget and suggested that staff annotate future budget presentations with explanatory notes adjacent to significant figures to improve clarity for the council and the public.

Councilmember Chua expressed that the council's recurring focus was not solely on achieving a singleyear balanced budget, but on demonstrating a credible path to addressing the structural deficit over the next several years and ensuring adequate resources for direct community services.

Councilmember Lam made a motion: to postpone adoption of the budget and hold a special meeting to allow additional time for review, including an opportunity for newly appointed City Manager Willie Hopkins to familiarize himself with the document.

Vice Mayor Barbadillo proposed amending the motion to a three-week continuance to accommodate his schedule, but discussions settled on adding the budget item to the Special Meeting already scheduled on June 9, 2026, with a start time of 3:00 PM to allow adequate time for discussion before the remainder of the June 9 agenda.

June 2, 2026 Milpitas City Council Minutes Page 6
Finance Director Cofresí-Howe requested the City Council submit questions in writing in advance of the meeting.

After discussion, motion: to continue the public hearing and postpone adoption of the FY 2026-27 Proposed Operating Budget to a Special Meeting on June 9, 2026, beginning at 3:00 PM.

Motion/Second: Councilmember Lam / Councilmember Chua
by the following:

AYES: Mayor Montano, Vice Mayor Barbadillo, Councilmember Chua, Councilmember Lam, Councilmember Lien
NOES: None

ANNOUNCEMENTS AND FUTURE AGENDA ITEMS
Mayor Montano noted that the announcements and future agenda items section would be heard at the conclusion of the regular City Council Meeting.

ADJOURNMENT
Mayor Montano adjourned the Joint Special Meeting of the Milpitas City Council, Housing Authority, and Public Financing Authority at 7:48 PM, and called a brief recess before convening the regular City Council meeting.

Draft meeting minutes submitted by City Clerk, Suzanne Guzzetta

June 2, 2026 Milpitas City Council Minutes Page 1

REGULAR MEETING OF THE MILPITAS

CITY COUNCIL

MINUTES
TUESDAY, JUNE 2, 2026
The City Council of the City of Milpitas convened in a Regular Meeting of the Milpitas City Council June 2, 2026, in the City Council Chamber, 455 E. Calaveras Blvd, Milpitas, CA, and via teleconference/Zoom webinar.

CALL MEETING TO ORDER by Mayor and ROLL CALL by City Clerk Mayor Montano called the Regular City Council meeting to order at 7:58 PM. Roll Call was taken by City Clerk Guzzetta.

PRESENT: Mayor Montano, Vice Mayor Barbadillo, Councilmember Chua, Councilmember Lam (7:59 PM), Councilmember Lien
ABSENT: None

PLEDGE OF ALLEGIANCE
Vice Mayor Barbadillo led the Pledge of Allegiance.

Councilmember Lam joined the meeting at 7:59 PM

PUBLIC FORUM
There were no public speakers.

APPROVAL OF AGENDA
After discussion, motion: to approve the agenda.

Motion/Second: Councilmember Chua / Councilmember Lien
Motion carried by the following:

AYES: Mayor Montano, Vice Mayor Barbadillo, Councilmember Chua, Councilmember Lam, Councilmember Lien
NOES: None

CONSENT CALENDAR
After discussion, motion: to approve the Consent Calendar.

Motion/Second: Councilmember Chua / Councilmember Lien
Motion carried by the following:

AYES: Mayor Montano, Vice Mayor Barbadillo, Councilmember Chua, Councilmember Lam, Councilmember Lien
NOES: None

1. Waive the Second Reading and Adopt Ordinance No. 38.861 Adding a New Section to Title XIII, Chapter B.20 of the Milpitas Municipal Code to Create a Transit-Oriented Development Overlay

June 2, 2026 Milpitas City Council Minutes Page 2
Zoning District to Implement Senate Bill 79 Development Standards (Staff Contact: Jay Lee, Planning Department, 408-586-3077)
Determined that the ordinance is statutorily exempt from the California Environmental Quality Act (CEQA) under Government Code Section 65912.160(c)(2) and Title 14, Section 15183 of the California Code of Regulations and adopted the findings therefore in the agenda report and waived the second reading and adopted Ordinance No. 38.861 approving Zoning Text and Map Amendment no. ZA26- 0002 adding a new section to Title XIII, Chapter B.20 of the Milpitas Municipal Code to create a Transit-Oriented Development Overlay (TOD) zoning district and regulations implementing Senate Bill 79 development standards.

2. Conduct a Public Hearing to Adopt the 2026-2027 Annual Action Plan and Approve the Community Development Block Grant Allocations for 2026-2027 (Staff Contact: Matt Cano, Assistant City Manager, 408-586-3222)
Continued to the June 16, 2026 City Council Meeting.

PUBLIC HEARINGS

3. Adopt a Resolution to Confirm the 2026 Weed Abatement Assessment Report (Staff Contact:

Arthur Belton, Deputy Fire Chief / Fire Marshal, 408-586-3384) City Manager Hopkins introduced the item. Deputy Fire Chief / Fire Marshal Belton presented the report.

Mayor Montano opened the public hearing. There being no public speakers, she closed the public hearing.

After discussion, motion: to adopt Resolution No. 9519 confirming the 2026 Weed Abatement Assessment Report and Assessment List to be entered into the tax assessment rolls..

Motion/Second: Councilmember Chua / Councilmember Lien
Motion carried by the following:

AYES: Mayor Montano, Vice Mayor Barbadillo, Councilmember Chua, Councilmember Lam, Councilmember Lien
NOES: None

ANNOUNCEMENTS AND FUTURE AGENDA ITEMS
City Manager Willie Hopkins made brief introductory remarks.

Councilmembers Chua and Lam, and Mayor Montano, offered thanks to outgoing Assistant City Manager Matt Cano, noting his dedication, responsiveness, and service to the City over the past three and a half years.

Mr. Cano thanked the Council and expressed confidence in the City's direction under the new City Manager.

ADJOURNMENT
Mayor Montano adjourned the meeting at 8:07 PM.

Draft meeting minutes submitted by City Clerk, Suzanne Guzzetta

June 9, 2026 Milpitas City Council Minutes Page 1

JOINT SPECIAL MEETING OF THE MILPITAS

CITY COUNCIL AND HOUSING AUTHORITY

MINUTES
TUESDAY, JUNE 9, 2026
The City Council of the City of Milpitas convened in a Joint Special Meeting of the Milpitas City Council and Housing Authority on June 9, 2026, in the City Council Chamber, 455 E. Calaveras Blvd, Milpitas, CA, and via teleconference/Zoom webinar.

CALL MEETING TO ORDER by Mayor and ROLL CALL by City Clerk Mayor Montano called the Regular City Council meeting to order at 3:02 PM. Roll Call was taken by City Clerk Guzzetta.

PRESENT: Mayor Montano, Vice Mayor Barbadillo, Councilmember Chua, Councilmember Lam, Councilmember Lien
ABSENT: None

ADJOURN TO CLOSED SESSION
City Attorney Curtis briefed the City Council on the Closed Session item.

There being no public comments, the City Council adjourned to Closed Session at 3:03 PM. (a) PUBLIC EMPLOYEE PERFORMANCE EVALUATION
Pursuant to Government Code Section 54957(b)(1)
Employee Position: City Attorney
CLOSED SESSION ANNOUNCEMENT:

The City Council reconvened in Open Session at 4:00 PM.

City Attorney Curtis had nothing to report out.

PLEDGE OF ALLEGIANCE
Vice Mayor Barbadillo led the Pledge of Allegiance.

INVOCATION
Councilmember Lam provided the invocation.

PRESENTATIONS
There were no presentations.

PUBLIC FORUM
There were the following public speakers:

1. Rob Means

2. Yolie Garcia

3. Voltaire Montemayor

June 9, 2026 Milpitas City Council Minutes Page 2

ANNOUNCEMENT OF CONFLICT OF INTEREST AND CAMPAIGN CONTRIBUTIONS City Attorney Curtis asked the Mayor and City Councilmembers if they had any personal conflicts of interest.

By roll call, there were no conflicts of interest. City Attorney Curtis asked the Mayor and City Councilmembers if they had any reportable campaign contributions. By roll call, there were no reportable campaign contributions.

READING OF THE CITY COUNCIL CODE OF CONDUCT
Mayor Montano read the City Council Code of Conduct.

APPROVAL OF AGENDA
After discussion, motion: to approve the agenda.

Motion/Second: Councilmember Lien / Councilmember Chua
Motion carried by the following:

AYES: Mayor Montano, Vice Mayor Barbadillo, Councilmember Chua, Councilmember Lam, Councilmember Lien
NOES: None

CONSENT CALENDAR
Mayor Montano asked to pull Items C4 and C5 from the Consent Calendar for discussion.

There were no public comments.

After discussion, motion: to approve the Consent Calendar, pulling Items C4 and C5.

Motion/Second: Councilmember Lien / Councilmember Chua
Motion carried by the following:

AYES: Mayor Montano, Vice Mayor Barbadillo, Councilmember Chua, Councilmember Lam, Councilmember Lien
NOES: None

1. Receive City Council Calendar of Meetings (Staff Contact: Suzanne Guzzetta, City Clerk, 408- 586-3001)
Received City Council Calendar of Meetings for June 2026.

2. Receive and Review the List of Agenda Items Requested by City Councilmembers (Staff Contact: Suzanne Guzzetta, City Clerk, 408-586-3001)
Received the list of items that have been requested by City Councilmembers and received consensus in previous meetings to date.

3. Adopt a Resolution Delegating Authority to the City Manager, or Designee, to Approve and Execute Project-Related Documents and Urgent Administrative Items During the City Council Summer Recess (Staff Contact: Willie Hopkins, City Manager, 408-586-3000) Adopted Resolution No. 9520 delegating authority to the City Manager, or designee, to approve and execute project-related documents, including contract documents and urgent administrative items during the City Council and City of Milpitas Housing Authority summer recess from June 17, 2026 through August 10, 2026.

June 9, 2026 Milpitas City Council Minutes Page 3

4. Authorize the City Manager, or Their Designee, to Execute an Amendment to the Professional Services Agreement with Liebert Cassidy Whitmore for Labor Relations and Other Legal Services (Staff Contact: Kelli Parmley, Human Resources Director, 408-586-3086; and Christian Curtis, City Attorney, 408-586-3041)
Item pulled from Consent Calendar.

5. Adopt a Resolution to Accept the Improvements, and Authorizing the City Engineer to File a Notice of Completion and Issue a Notice of Final Acceptance After the One-Year Warranty for Fire Station No.1 Modular Building (Staff Contact: Christian Di Renzo, Public Works Director, 408-586-2602; and Michael Silveira, City Engineer, 408-586-3303) Item pulled from Consent Calendar.

6. Adopt a Resolution Accepting Completed Public Improvements and Authorizing a Bond Reduction and Release for the McCarthy Parking Lot Project at 1207 N. McCarthy Boulevard (Staff Contact: Christian Di Renzo, Public Works Director, 408-586-2602; and Michael Silveira, City Engineer, 408-586-3303)
Adopted Resolution No. 9521 to (1) accept the completed public improvements; (2) approve a reduction in the faithful performance bond to $156,874; and (3) authorize the City Engineer to release the performance bond after the one-year warranty period without further City Council action, provided all required warranty work has been completed to the satisfaction of the City Engineer for the McCarthy Parking Lot Project at 1207 N. McCarthy Blvd.

7. Adopt a Resolution to Accept the Improvements, Authorizing the City Engineer to File a Notice of Completion and Issue a Notice of Final Acceptance After the One-Year Warranty and Approve Budget Amendment for Bicycle Improvement Project, CIP No. 4299 (Staff Contact: Christian Di Renzo, Public Works Director, 408-586-2602; and Michael Silveira, City Engineer, 408-586-3303) Adopted Resolution No. 9522 to: (1) accept the improvements; (2) authorizing the City Engineer to file a Notice of Completion and issue a Notice of Final Acceptance after the one-year warranty; and (3) approve the Budget Amendment to increase the Caltrans 2022 Priority Legislative Budget Project Earmarks funding in the amount of $72,560.13 for Bicycle Improvement Project, CIP No. 4299.

8. Adopt a Resolution Accepting Completed Public Improvements and Authorizing a Bond Reduction and Release for the Innovation Campus Project at 1331 E Calaveras Blvd (Staff Contact: Christian Di Renzo, Public Works Director, 408-586-2602; and Michael Silveira, City Engineer, 408-586-3303)
Adopted Resolution No. 9523 to (1) accept the completed public improvements; (2) approve a reduction in the faithful performance bond to $780,250; and (3) authorize the City Engineer to release the remaining portion of the bond after the one-year warranty period without further City Council action, provided all required warranty work has been completed to the satisfaction of the City Engineer for the Innovation Campus Project at 1331 E. Calaveras Blvd.

9. Approve an Update to the Donation and Fee Waiver/Reduction City Council Policy (Staff Contact: Renee Lorentzen, Recreation and Community Services Director, 408-586-3409) Approved the updated Donation and Fee Waiver/Reduction City Council Policy.

June 9, 2026 Milpitas City Council Minutes Page 4

PUBLIC HEARINGS

10. Adopt Resolutions to Approve the Fiscal Year 2026-27 Proposed Operating Budget for the City of Milpitas and the Milpitas Housing Authority, Approve the Fiscal Year 2026-27 Gann Appropriations Limit, Authorize Various Financial Actions, Fiscal Policies and Budget Guidelines, and Amend the Classification Plan for Alignment with the FY 2026-27 Proposed Operating Budget, the Minimum Wage Increase, and Salary Schedules Consistent with Previous Council Action (Staff Contact: Luz Cofresí-Howe, Finance Director, 408-586-3111) City Manager Hopkins introduced the item.

Councilmember Lam opened by remarking on the importance of the budget as a reflection of community values and the Council's responsibility for fiscal oversight, noting that the budget spans hundreds of pages and hundreds of millions of tax dollars.

Councilmember Lien noted that all questions from the prior June 2nd study session had been addressed and answered, and made a motion: to adopt the budget without further discussion. There being no second, the motion failed.

Vice Mayor Barbadillo referenced correspondence received from the MPOA and clarified that the Council's discussion was focused on fiscal sustainability rather than service reductions. He expressed concern regarding the use of one-time funds to support ongoing expenditures and asked staff to explain how the City plans to address projected structural deficits over the five-year forecast period through increased revenues or expenditure reductions.

Finance Director Cofresí-Howe provided introductory remarks. Budget Manager Vurich presented the report.

Mayor Montano opened the public hearing.

There were the following public speakers:

1. Jacob Stocke

2. Brian Thanh

3. Jason Speckenheuer

4. Mayra Zuniga

5. Rob Means

6. Voltaire Montemayor
Mayor Montano closed the public hearing.

Councilmember Chua asked about the projected FY 2027-28 General Fund shortfall and what actions could be taken to address it. Finance Director Cofresi-Howe discussed potential strategies, including use of budget stabilization reserves, reducing pension-related costs through additional payments toward the City's unfunded pension liability, and anticipated savings from a bond refunding. Budget Manager Vurich noted that current revenues were trending above projections and suggested that any confirmed year-end surplus could be allocated to offset future projected deficits. Councilmember Chua showed interest in presenting that as a motion to the Council.

The City Council recessed at 5:25 PM and reconvened at 6:02 PM.

City Attorney Curtis reported out on the motion developed on behalf of Councilmember Chua:

Motion: to allocate an additional $1,600,000 to the structural surplus item in the FY 2026-27 adopted budget, funded from projected FY 2025-26 General Fund excess revenue, to offset the projected FY 2027-28 General Fund shortfall, with the appropriation to be adopted and reconciled at fiscal year-end

June 9, 2026 Milpitas City Council Minutes Page 5
close (December 2026).

Motion/Second: Councilmember Chua / Mayor Montano
Motion carried by the following:

AYES: Mayor Montano, Vice Mayor Barbadillo, Councilmember Chua, Councilmember Lam, Councilmember Lien
NOES: None
Vice Mayor Barbadillo asked questions regarding the City's reserve balances, including which reserves would be available during an emergency and how reserve funds could be used to address projected structural deficits. Finance Director Cofresi-Howe explained the composition of the City's reserves and noted that certain funds could potentially be applied toward reducing pension-related liabilities.

Councilmember Lam asked about the increase in the electricity and gas budget. Budget Manager Vurich explained that a portion of the increase reflected a correction to a prior-year budgeting issue involving a one-time utility rebate. Councilmember Lam requested that any resulting savings be directed toward addressing future structural deficits.

Councilmember Lam suggested that management-level vacancies be reviewed by the City Council prior to being filled. City Manager Hopkins and City Attorney Curtis discussed the operational and policy considerations associated with such a process. Councilmembers Lien and Chua did not support the recommendation. No formal action was taken.

Council members individually identified their priorities for allocating one-time funding from the approximately $937,000 in available resources. The following allocations reached consensus:
• Expansion of the Milpitas Youth Force through Summer 2028 — $40,000 • Ring Doorbell Initiative — $60,000
• Care Solace (pilot project) — $80,000
• Choir and Band Support — $3,500
• Community Center Roof — $370,000 for design services (with a full presentation on roof replacement versus new construction to be brought back in August by the Public Works Director)
• Milpitas Police Community Center (additional funds toward the existing $310,000 allocation) — $200,000
• Murphy Park bench — no dollar figure specified
Councilmember Lien also proposed an additional $120,000 for the Milpitas Food Pantry anticipated rent costs if the City Council opted to change their rental agreement. Mayor Montano noted concerns about the Pantry's limited hours of operation and suggested staff conduct further research before any funding commitment, including consideration of an RFP process. The item did not achieve consensus and was deferred for further staff research.

Following the discussion, City Manager Hopkins highlighted the Community Center roof as a pressing facilities concern, noting the condition of the roof could affect the viability of the facility. Public Works Director Di Renzo confirmed that even a modest interim intervention could cost $2–2.5 million, and that a full presentation on options (including possible bonding for a new facility at an estimated $58 million) would be brought to City Council in August. Councilmember Chua requested that staff also examine whether existing CIP projects could be deferred to partially fund the Community Center.

After discussion, motion: to (a) Adopt Resolution No. 9524 Joint Resolution of the City Council and Milpitas Housing Authority to approve the Fiscal Year 2026-27 Proposed Operating Budget for the City of Milpitas and the Milpitas Housing Authority, approve the Fiscal Year 2026-27 Gann Appropriations

June 9, 2026 Milpitas City Council Minutes Page 6
Limit, Fiscal Policies and Budget Guidelines and authorizing various financial actions by the City Manager, including Approving and Authorizing the Execution of Various Contracts and Payments over $100,000, and including the following one-time funding allocations per City Council consensus:
• Expansion of Milpitas Youth Force ($40,000)
• Ring Doorbell Initiative ($60,000)
• Care Solace pilot project
• Choir and Band support
• Community Center roof design ($370,000)
• Police Community space ($200,000)
• Bench for Murphy Park
(c) Adopt Resolution No. 9525 Amending Resolution No. 1626, the Classification Plan, to authorize additional positions and amend budgeted allocated positions; (d) Adopt Resolution No. 9526 Amending Resolution No. 1626, the Classification Plan, to adjust the hourly rate ranges for classifications due to a minimum wage increase pursuant to Ordinance No. 292; (e) Adopt Resolution No. 9527 Amending Resolution No. 1626, the Classification Plan, to adjust the Salary Schedules for various classifications to align with the current memorandums of understandings (MOUs).

Motion/Second: Councilmember Chua / Mayor Montano
Motion carried by the following:

AYES: Mayor Montano, Vice Mayor Barbadillo, Councilmember Chua, Councilmember Lam, Councilmember Lien
NOES: None

11. Conduct a Public Hearing and Adopt a Resolution Adopting the 2025 Urban Water Management Plan (Staff Contact: Christian Di Renzo, Public Works Director, 408-586-2602) Public Works Division Manager Morales presented the report.

Mayor Montano opened the public hearing. There being no public speakers, the public hearing was closed.

Mayor Montano asked for a brief clarification on the water supply zones within the city, specifically regarding the Pines neighborhood. City Engineer Silveira confirmed that the Pines area is served by the Hetch Hetchy system.

After discussion, motion: to adopt Resolution No. 9528 adopting the 2025 Urban Water Management Plan.

Motion/Second: Councilmember Chua / Mayor Montano
Motion carried by the following:

AYES: Mayor Montano, Vice Mayor Barbadillo, Councilmember Chua, Councilmember Lam, Councilmember Lien
NOES: None

12. Conduct a Public Hearing and Adopt a Resolution Adopting the 2025 Water Shortage Contingency Plan, and Introduce Ordinance No. 240.8 Amending Sections of Chapter 6 of Title VIII of the Milpitas Municipal Code Relating to the Water Shortage Contingency Plan and Permanent Water Waste Restrictions including a Ban on Watering of Nonfunctional Turf (Staff Contact: Christian Di Renzo, Public Works Director, 408-586-2602)

June 9, 2026 Milpitas City Council Minutes Page 7
Deputy Public Works Director Marshall presented the report.

Mayor Montano opened the public hearing. There being no public speakers, the public hearing was closed.

Mayor Montano requested that staff proactively communicate the non-functional turf ban to HOAs well in advance, and that the water waste reporting hotline number be included on utility bills and digital signage during drought periods. Deputy Director Marshall confirmed outreach efforts are planned in coordination with Valley Water.

City Attorney Curtis read the ordinance title into the record.

After discussion, motion: to (1) waive the reading beyond the title and introduce Ordinance No. 240.8 amending Chapter 6 (Water Conservation) of Title VIII (Public Works) of the Milpitas Municipal Code relating to Water Shortage Contingency Plan and permanent water waste restrictions pursuant to California Water Code §0608.14 including a ban on watering of nonfunctional turf; and (2) Adopt a resolution adopting the 2025 Water Shortage Contingency Plan.

Motion/Second: Vice Mayor Barbadillo / Councilmember Lien by the following:

AYES: Mayor Montano, Vice Mayor Barbadillo, Councilmember Chua, Councilmember Lam, Councilmember Lien
NOES: None

13. Introduce Ordinance No. 232.2 Regarding Backflow Prevention and Cross-Connection Control (Staff Contact: Christian Di Renzo, Public Works Director, 408-586-2602; and Michael Silveira, City Engineer, 408-586-3303)
City Engineer Silveira presented the report.

Mayor Montano opened the public hearing. There being no public speakers, the public hearing was closed.

Councilmember Chua emphasized the importance of notifying affected property owners as early as possible. Councilmember Lam concurred with the need for early notifications to ensure residents have sufficient time to prepare, and Mayor Montano expressed concerns about the financial impact on homeowners, advocating for effective communication to help mitigate costs.

City Attorney Curtis read the title of the ordinance.

After discussion, motion: to waive reading beyond the title and introduce Ordinance No. 232.2, amending various sections of Chapter 3 (Backflow Prevention and Cross-Connection Control) of Title VIII of the Milpitas Municipal Code.

Motion/Second: Councilmember Lien / Vice Mayor Barbadillo Motion carried by the following:

AYES: Mayor Montano, Vice Mayor Barbadillo, Councilmember Chua, Councilmember Lam, Councilmember Lien
NOES: None

LEADERSHIP AND SUPPORT SERVICES

14. Introduce an Ordinance Amending the Milpitas Municipal Code Regarding Open Governance (Staff Contact: Christian Curtis, City Attorney, 408-586-3040)

June 9, 2026 Milpitas City Council Minutes Page 8
City Attorney Curtis presented the report.

There were no public speakers.

After discussion, motion: to Introduce and waive first reading of an ordinance repealing and replacing sections of Title I, Chapter 310 of the Milpitas Municipal Code regarding open governance.

Motion/Second: Councilmember Chua / Councilmember Lien
Motion carried by the following:

AYES: Mayor Montano, Vice Mayor Barbadillo, Councilmember Chua, Councilmember Lam, Councilmember Lien
NOES: None

ITEMS PULLED FROM CONSENT CALENDAR

4. Authorize the City Manager, or Their Designee, to Execute an Amendment to the Professional Services Agreement with Liebert Cassidy Whitmore for Labor Relations and Other Legal Services (Staff Contact: Kelli Parmley, Human Resources Director, 408-586-3086; and Christian Curtis, City Attorney, 408-586-3041)
Mayor Montano pulled the item for discussion due to the contract amount. Human Resources Director Parmley clarified that the amendment would increase the agreement's not-to-exceed amount from $600,000 to $900,000 and corrected typographical errors in the staff report. She explained that recent labor negotiations and arbitration proceedings contributed to the increased costs and stated that the City anticipates reducing its reliance on outside counsel with the addition of a new HR Manager and City Attorney. City Attorney Curtis concurred and noted efforts to transition certain functions in-house.

After discussion, motion: to authorize the City Manager, or their designee, to execute an amendment to the Professional Services Agreement with Liebert Cassidy Whitmore for labor relations and other legal services to extend the term through June 30, 2028 and add $300,000 for a revised maximum compensation of $900,000, subject to the appropriation of funds..

Motion/Second: Councilmember Lien / Vice Mayor Barbadillo Motion carried by the following:

AYES: Mayor Montano, Vice Mayor Barbadillo, Councilmember Chua, Councilmember Lam, Councilmember Lien
NOES: None

5. Adopt a Resolution to Accept the Improvements, and Authorizing the City Engineer to File a Notice of Completion and Issue a Notice of Final Acceptance After the One-Year Warranty for Fire Station No.1 Modular Building (Staff Contact: Christian Di Renzo, Public Works Director, 408-586-2602; and Michael Silveira, City Engineer, 408-586-3303) Mayor Montano pulled the item to discuss the condition of the City's fire stations. Fire Chief Schoonover explained that the modular building at Fire Station 1 replaces a condemned structure and supports training operations. He identified Fire Station 3 as the highest priority for replacement, followed by Station 4, and noted that Station 2 was recently replaced. Mayor Montano emphasized the importance of maintaining all fire stations.

After discussion, motion: to (1) Adopt Resolution No. 9530 to accept the improvements for the Fire Station No. 1 Modular Building, CIP No. 3465; and (2) Authorize the City Engineer to file a Notice of Completion and issue a Notice of Final Acceptance after the one-year warranty..

June 9, 2026 Milpitas City Council Minutes Page 9
Motion/Second: Mayor Montano / Councilmember Chua
Motion carried by the following:

AYES: Mayor Montano, Vice Mayor Barbadillo, Councilmember Chua, Councilmember Lam, Councilmember Lien
NOES: None

ANNOUNCEMENTS AND FUTURE AGENDA ITEMS
City Manager Hopkins extended thanks to staff and the Council for the budget deliberations and congratulated the Council on the budget adoption.

Councilmember Chua thanked staff for their work during the budget process and commented that policy changes can be an effective tool for addressing budget challenges.

Councilmember Lam requested consideration of a citywide emergency preparedness exercise t Fire Chief Schoonover described existing emergency operations training activities and indicated staff could coordinate a future Emergency Operations Center exercise.

Vice Mayor Barbadillo commented regarding a letter issued by the Milpitas Police Officers Association (MPOA) concerning the budget. He expressed concern regarding the contents of the letter and proposed a resolution condemning the letter, the organization, and calling for the resignation of the MPOA President.

Mayor Montano commented on the letter and encouraged communication between the parties involved.

Councilmember Chua noted surprise at the letter and emphasized the importance of communication between the City Council and employee organizations and indicated she would not support the proposed resolution.

Councilmember Lam expressed concerns regarding the MPOA letter and spoke in support of improved communication between the City Council and employee organizations.

Police Chief Hernandez offered to assist in facilitating discussions between the parties.

Councilmember Lien spoke in favor of working toward mutual understanding and welcomed the Chief's assistance in facilitating communication.

Mayor Montano shared an update regarding the completion and distribution of a City promotional brochure and noted ongoing FIFA-related marketing efforts.

ADJOURNMENT
Mayor Montano adjourned the meeting at 10:01 PM.

Draft meeting minutes submitted by City Clerk, Suzanne Guzzetta

TENTATIVE CITY COUNCIL AGENDA ITEM LIST
as of 06/08/2026
August 11, 2026 – Special Meeting (5:30 PM)

CLOSED SESSION
• Labor Relations
INVOCATION (Councilmember Lien)

PRESENTATION
None

CONSENT CALENDAR

1. Receive City Council calendar for August 2026 (City Clerk)

2. Approve City Council Meeting minutes of June 16, 2026 (City Clerk)

3. Preview list of items for August 18, 2026 (City Clerk)

4. Councilmember Request List (City Clerk)

5. Resolution approving addendum to Metro Specific Plan SEIR for Tango Park, CIP2023 (Public Works / Engineering)

6. Approve Design Service Agreement for SS4A Improvement Project, CIP 4312 (Public Works / Engineering)

7. Approve Improvement Agreement - 1000 Gibraltar Dr. – Amazon (Public Works / Engineering)

8. Approve Final Map for Phase 2, Parcel A of Summerhill Apartments, 1646 Centre Pointe Drive (Public Works / Engineering)

9. Approve Reimbursement Agreement - 675 Trade Zone Blvd - Geomax 1 (Public Works / Engineering)

PUBLIC HEARING

10. Townhomes at 1301 California Circle (Planning)

11. TADIF Update Adoption Hearing (Planning)

12. Tobacco Retail Ordinance Introduction (Planning)

13. Amendment to the Floodplain Ordinance for FEMA-CRS Program (Public Works / Engineering)

COMMUNITY DEVELOPMENT

14. Cardoza / Dixon Landing Park Softball Improvements Presentation (Public Works)

15. Community Center Roof Renovation Presentation (Public Works)

MILPITAS CITY COUNCIL

AGENDA ITEM REQUESTS

OPEN ITEMS
Request
No. Topic Submitted by:

Date
Requested
STATUS and/or DATE scheduled on City
Council meeting agenda:
1 Return to the City Council with a recommendation
regarding transitioning thefood pantry lease to a
market rate model through the Housing Authority Montano 5/5/2026 An update on this item will be included in the
next quarterly prioritization update.
2 Consider prioritization of a formal, third-party
staffing analysis for te Fire Department similar to
the 2019 study Barbadillo 4/7/2026
An update on this item will be included in the
next quarterly prioritization update.
3 Prepare an information report on the current Fire
Department deployment model and alternative shift
schedule options Barbadillo 4/7/2026
An update on this item will be included in the
next quarterly prioritization update.
4 Review the permitting process, including the site
development permit process, to determine whether
updates were needed to address technology
advancements such as the proliferation of small
cell towers. Barbadillo 4/7/2026
An update on this item will be included in the
next quarterly prioritization update.
5 Explore youth programs and intervention initiatives
in the wake of the passing of Milpitas high school
student Jared Kavan on March 31st, including
possible partnerships with MUSD on counseling,
sports, or after-school programming. Montano 4/7/2026
An update on this item will be included in the
next quarterly prioritization update.
6 Return with a revision to the Council Policy
allowing the school district a limited number of
additional fee waivers. Montano 4/7/2026
An update on this item will be included in the
next quarterly prioritization update.
7 Agendize a review by the Facility Naming
Subcommittee of facilities with "Cesar Chavez" in
the name and make recommendations to the full
Council on new names, including proposed
changes to the Municipal Code, any standing
resolutions, and the City holiday observed on
March 31st. Montano 4/7/2026
An update on this item will be included in the
next quarterly prioritization update.
8 Conduct a review of commission names to better
reflect their focus Montano 11/18/2025
On 4/7/2024 this was removed from the list
and the focus will be on changing the name
of the Science and Technology Commission
only
9 Review the Council prioritization process Chua 11/18/2025 An update on this item will be included in the
next quarterly prioritization update.
10 Research how public funds could be used to
advertise local restaurants during the upcoming
Super Bowl Montano 11/18/2025
An update on this item will be included in the
next quarterly prioritization update.
11 Have a community forum on the Crown Castle
Small Cell towers. Montano 11/18/2025 Completed
12 Install debrillators on city properties Barbadillo 10/28/2025 Completed 13 Place a billboard at the Sport Center to inform the
community about events and activities Montano 10/21/2025 Not prioritzed on 4/7/2026, will be removed
from future lists.
14 Explore the creation of small parks in
neighborhoods without them Montano 10/21/2025
Not prioritzed on 4/7/2026, will be removed
from future lists.

ACTIVE ITEMS
Request
No. Topic Submitted by:

Date
Requested
STATUS and/or DATE scheduled on City
Council meeting agenda:
15 Overtime reporting requirements be modified to
include all overtime rather than only amounts
exceeding 10% of allocated budgets
Lam 3/17/2026
An update on this item will be included in the
next quarterly prioritization update.
16 Consider shortening the name from Library and
Education Advisory Commission to Library
Commission Montano 3/3/2026
Not prioritzed on 4/7/2026, will be removed
from future lists.
17 Request a name change for Science, Technology
and Innovation Commission to the Technology
Commission
Lam 3/3/2026
An update on this item will be included in the
next quarterly prioritization update.

NOTE: Deferred and Completed Items are not listed

MILPITAS CITY COUNCIL

AGENDA ITEM REQUESTS
18 Alcohol and Massage Parlor Permits come before
the City Council. Montano 2/3/2026
An update on this item will be included in the
next quarterly prioritization update.
19 Providing city-branded jackets, hat, and t-shirts to Councilmembers Lam 2/3/2026
An update on this item will be included in the
next quarterly prioritization update.
20 Look into the process of establishing a Friendship
City relationship Montano 11/18/2025
An update on this item will be included in the
next quarterly prioritization update.
21 Increase the amount of funding for the ADU Permit
Subsidy Council 4/1/2025
This was funded and will be removed from
future lists.
22 Council Special Events Fund to provide funding for
City Councilmembers to attend local, non-political,
events where their attendance is beneficial for the
City of Milpitas
Montano/Chua 4/1/2025
This was funded and will be removed from
future lists.
23 Add to the existing Strategic Land Acquisition
Revenue Reserve Council
This was funded and will be removed from
future lists.
24 Storefront and Crime Prevention Initiative by
making funding available for businesses to focus
on public safety related physical improvements to
their storefronts.

Montano
An update on this item will be included in the
next quarterly prioritization update.
25 Revisit the mural selection committee process to
make it more inclusive by involving all
commissioners in the Arts Commission
Montano 8/19/2025
An update on this item will be included in the
next quarterly prioritization update.
26 Exapnd the Milpitas SMART program to include
service to the San Jose Airport Lam 8/12/2025
An update on this item will be included in the
next quarterly prioritization update.
27 Staff explore a program similar to San Leandro’s,
which provides Ring doorbell cameras to residents Chua 8/12/2025 An update on this item will be included in the
next quarterly prioritization update.
28 Develop a project management informational
memo. Barbadillo 4/1/2025
An update on this item will be included in the
next quarterly prioritization update.
29 Look into adding an entertainment zone to Main
Street. Montano 3/4/2025
An update on this item will be included in the
next quarterly prioritization update.
30 Staff provide a detailed analysis of overtime
expenditures by department. Barbadillo 3/4/2025
An update on this item will be included in the
next quarterly prioritization update.
31 Look into a policy to require a Super Majority vote
by Council for any deductions to budget reserves. Chua 2/18/2025 An update on this item will be included in the
next quarterly prioritization update.
32 Bring back a discussion regarding fentanyl-related
issues Barbadillo 2/18/2025
An update on this item will be included in the
next quarterly prioritization update.
33 Feasibility study regarding a police satellite office. Montano 2/18/2025 An update on this item will be included in the
next quarterly prioritization update.
34 Staff organize a job fair for City job openings Chua 11/19/2024 An update on this item will be included in the
next quarterly prioritization update.
35 Bring back a study or analysis of the permit
process Chua 11/19/2024
An update on this item will be included in the
next quarterly prioritization update.
36 Explore updating the city's business tax rate
schedule Chua 10/1/2024
An update on this item will be included in the
next quarterly prioritization update.
37 Explore funding options for new signage following
the decision to rename the Milpitas Library to the
Milpitas Jose Esteves Library Barbadillo 9/3/2024
An update on this item will be included in the
next quarterly prioritization update.
38 Look into adopting an ordinance similar to San
Jose allowing ADUs (Accessory Dwelling Units) to
have a separate title and be sold separately. Chua 8/13/2024 An update on this item will be included in the
next quarterly prioritization update.
39 Conduct a traffic study on Escuela Parkway to
address circulation concerns Montano 5/7/2024
An update on this item will be included in the
next quarterly prioritization update.
40 Explore the possibility of augmenting the Planning
Commission stipend Barbadillo 4/16/2024
An update on this item will be included in the
next quarterly prioritization update.
41 Consideration of the 20% Low Income Below
Market Rate Housing Montano 12/5/2023
An update on this item will be included in the
next quarterly prioritization update.
42 Referral for utility infrastructure cost on Main Street from Carlo to Corning Streets Montano 10/17/2023
An update on this item will be included in the
next quarterly prioritization update.
43 Main Street International Festival Lien 10/3/2023
An update on this item will be included in the
next quarterly prioritization update.

ACTIVE ITEMS
Request
No. Topic Submitted by:

Date
Requested
STATUS and/or DATE scheduled on City
Council meeting agenda:

NOTE: Deferred and Completed Items are not listed

MILPITAS CITY COUNCIL

AGENDA ITEM REQUESTS
44 Pickleball Pilot Project Chua 2/28/2023
An update on this item will be included in the
next quarterly prioritization update.
45 Main Street Infrastructure Projects Montano 2/28/2023 An update on this item will be included in the
next quarterly prioritization update.
46 Main Street Flooding at Library Chua 2/28/2023
An update on this item will be included in the
next quarterly prioritization update.
47 Have the City look into the possibility of a Citywide Senior Discount Barbadillo 2/7/2023
An update on this item will be included in the
next quarterly prioritization update.
48 Quarterly or Monthly crime statistics on Homekey
Project Chua 6/7/2022
An update on this item will be included in the
next quarterly prioritization update.
49 Evaluate reopening the childcare center with a nonprofit organization running the center Montano 2/1/2022An update on this item will be included in the next quarterly prioritization update.
50 Staff to look into mural Art on Great Mall Parkway
on the VTA owned Light rail pillars Montano 11/16/2021
An update on this item will be included in the
next quarterly prioritization update.
51 Consider Community Museum and Park on Main
St. Phan 8/20/2019
Discussions with the property owner of this
site are ongoing and staff is tracking
returning to council by June 2025 with an
update.

ACTIVE ITEMS
Request
No. Topic Submitted by:

Date
Requested
STATUS and/or DATE scheduled on City
Council meeting agenda:

NOTE: Deferred and Completed Items are not listed

CITY OF MILPITAS

AGENDA REPORT
(AR)
Item Title: Consider Recommendations from Mayor Montano for Appointments to City Commissions (Staff Contact: Suzanne Guzzetta, City Clerk, 408-586-3005) Category: Consent Calendar-Leadership and Support Services Meeting Date: 6/16/2026
Recommendation: Receive Mayor Montano's recommendations and approve and confirm the recommended appointments to City Commissions.

BACKGROUND:

The City of Milpitas has 13 Commissions (including the Measure F Oversight Committee), with members appointed by the Mayor and confirmed by the City Council. The Commissions advise the Milpitas elected officials on a variety of community interest and policy areas. Commissioner appointments and removals are governed by various sections of the California Government Code, Milpitas Municipal Code, and the adopted Milpitas Commissioner Handbook and By-Laws.

Any resident interested in serving on a City Commission must complete a Commission Application and submit the form to the City Clerk. Copies of the applications are provided to the Mayor for her consideration. Per Government Code 40605, in a general law city where the office of Mayor is an elective office, the Mayor, with the approval of the City Council, shall make all appointments to boards, commissions, and committees unless otherwise specifically provided by statute.

On May 19, 2026, the City Council approved the commission realignment to a quarterly structure. Under the approved structure, commissioner term expiration dates are updated only upon appointment to a new term or appointment to fill a vacant seat. The appointments presented in this report are the first to conform to the new appointment structure.

ANALYSIS:

Appointments and removals are as follows:

Youth Advisory Commission:

1. Appoint Kellyn Hu to a full voting seat with an unexpired term ending September 2028.

2. Appoint Olivia Xia as Alternate No. 2 with an unexpired term ending September 2028.

Additional appointments may be provided by the Mayor in a revised report prior to the meeting.

All recommended Commissioner appointments have been reviewed and confirmed by the City Clerk’s office.

FISCAL IMPACT:

There is no fiscal impact associated with this item.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):

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

ATTACHMENT(S):
(a) Commission Applications

CITY OF MILPITAS – LIST OF COMMISSIONS
ARTS COMMISSION: Founded July 6, 2000. Meetings are held at 7:00 PM on fourth Mondays in alternate months in the City Hall Committee Room. The Arts Commission serves as an advisory body to the City Council on matters pertaining to supporting and promoting the arts in the City, including placement of public art. Seven members and two alternates are appointed to 3-year terms.

COMMUNITY ADVISORY COMMISSION: Founded July 20, 1954. Meetings are held at 7:00 PM on the first Wednesday each month in the City Hall Committee Room. CAC is as an advisory body on matters affecting Milpitas citizens, especially community improvement. CAC evaluates and makes recommendations to the City Council on issues including Citywide beautification, community and neighborhood clean-up and abatement issues. The Commission advises the Council on recommended Community Development Block Grant funds. CAC has 7 members and 2 alternates appointed to 3-year terms.

ECONOMIC DEVELOPMENT & TRADE COMMISSION: Founded February 18, 2003. Meetings are held at 4:30 PM on the second Monday every month at the City Hall Committee Room. EDC was established to advise the Council on business issues and to make recommendations on the design, development, and implementation of a comprehensive economic development program for the City of Milpitas. The Commission consists of 7 members appointed to 3-year terms and 2 alternates appointed to 3-year terms. Members represent specific industries and business community segments in Milpitas.

ENERGY & ENVIRONMENTAL SUSTAINABILTY COMMISSION: Founded February 5, 1991. Meetings are held at 6:00 PM on third Wednesdays monthly (except July) in the City Hall Committee Room. Formerly, Recycling and Source Reduction Advisory Commission (RSRAC). Advises Council on recycling and solid waste management issues. Seven members recommend programs designed to reduce solid waste, and monitor the City’s achievement of diversion goals mandated by the state, along with other environmental issues. 7 Members and 2 alternates are appointed to serve in 3-year terms.

LIBRARY & EDUCATION COMMISSION: Founded January 17, 1961. Meetings are held at 7:00 PM on the second Monday of January, and third Monday of March, May, September, and November at the Milpitas Library. Advises the Santa Clara County Library which operates the Milpitas Library under the jurisdiction of a Joint Powers Authority, informs the City Council and County Librarian of community needs, and helps to determine library activities and levels of service. The Commission consists of 7 members and 2 alternates are appointed to 3-year terms.

PARKS, RECREATION & CULTURAL RESOURCES COMMISSION: Founded July 1, 1992. Meetings are held monthly at 7:00 PM on the first Monday at City Hall. PRCRC was formed when the Council combined functions of Parks & Recreation Commission and Cultural Resources Preservation Board into one body. Advises Council on operation of recreation services and historic preservation activities, and advises in the acquisition, planning, and development of new and existing parks and facilities. PRCRC assists activities related to City’s cultural heritage. Commission consists of 7 members and 2 alternates appointed to 3-year terms.

PUBLIC SAFETY & EMERGENCY PREPAREDNESS COMMISSION: Founded April 23, 1988. Meetings are held at 7:00 PM on the third Thursday in January, March, May, July, September, and November at Fire Station #1 Training Room. The Commission advises the City Council regarding emergency preparedness and disaster planning. PS&EPC consists of 7 Commissioners plus 2 alternate members in 3-year terms.

SCIENCE, TECHNOLOGY & INNOVATION COMMISSION: Founded September 6, 1994. Meetings are held at 7:00 PM on 3rd Mondays each month at City Hall Committee Room. Information technology, communications and information services offer challenges to Milpitas, so Commissioners advise on matters of technology policy, legislation and implementation at the local, state, and federal levels. 7 Members and 2 alternates are appointed to 3-year terms.

SENIOR ADVISORY COMMISSION: Founded April 20, 1993. Meetings are held at 1:30 PM on 4th Tuesdays of February, April, June, August, October, and December at the Barabara Lee Senior Center. Originally founded as the Senior Advisory Committee on December 14, 1978, it served in an advisory capacity to the Parks, Recreation, & Cultural Resources Commission. SAC advises the Council on matters pertaining to recreation and services for senior citizens in Milpitas. 7 Members and 2 alternates serve 3-year terms.

VETERANS COMMISSION: Founded December 1, 2009. Meetings are held on first Wednesdays at 5:30 PM at City Hall in February, April, June, August, October and December. 7 members and 2 alternates with 3-year terms are appointed by the City Council to advise the Council on matters pertaining to veterans in Milpitas. All Commissioners are current or retired U.S. military service members.

YOUTH ADVISORY COMMISSION: Founded May 21, 1996. Meetings are held at 7:00 PM on the second Thursday of each month excluding June at City Hall Committee Room. Commissioners must be ages 13 to 19 years, in grades 7 through 12, and live in Milpitas. YAC advises the City Council on issues involving youth and teens in Milpitas. 7 Members and 2 alternates are appointed to 3- year terms.

CITY OF MILPITAS COMMISSIONS, ALONG WITH CITY COUNCIL, DO NOT MEET IN THE MONTH OF JULY.

2. How did you hear about the Youth Advisory Commission? I heard about the Youth Advisory Commission through my interest in community involvement, as well as from a friend who is currently on the commission. Hearing about her experience and the impact she’s been able to make encouraged me to explore this opportunity further and consider how I could contribute as well.

3. What have you heard or know about the Youth Advisory Commission? From what I understand, the Youth Advisory Commission serves as a bridge between the youth of Milpitas and the City Council, bringing forward student perspectives on issues that impact our community. Commissioners not only represent youth voices, but also contribute to community initiatives and help ensure that youth are actively involved in shaping the future of the city.

I also understand that this role carries the responsibility of representing a diverse range of student experiences and thinking beyond individual perspectives to what benefits the broader youth community.

This is especially meaningful to me because I’ve had the opportunity to work on both school and community projects, and I’ve seen how impactful it is when youth are given a voice in decisions that affect them. I’m interested in contributing in a way that not only reflects student perspectives, but also supports the city’s efforts to build a more connected and engaged community.

4. Have you ever attended a Youth Advisory Commission meeting? If so, explain your experience.

I have not yet attended a Youth Advisory Commission meeting, but I am very interested in participating and learning more about how the commission operates.

I have attended an Art Commission meeting, where I presented with a team on a proposal to beautify Milpitas through public art projects. That experience gave me insight into how city commissions discuss ideas, gather feedback, and evaluate proposals.

I’m excited about the opportunity to bring that perspective into the Youth Advisory Commission, and to contribute, collaborate with others, and become more involved in serving the youth of Milpitas.

CITY OF MILPITAS

AGENDA REPORT
(AR)
Item Title: Waive the Second Reading and Adopt Ordinance No. 262.9 Repealing and Replacing Title I, Chapter 310 of the Milpitas Municipal Code Regarding Open Government (Staff Contact: Christian Curtis, City Attorney, 408-586-3040) Category: Consent Calendar-Leadership and Support Services Meeting Date: 6/16/2026
Recommendation: Waive the second reading and adopt Ordinance No. 262.9 repealing and replacing Title I, Chapter 310 of the Milpitas Municipal Code regarding open government.

BACKGROUND:

This Ordinance was introduced at the City Council meeting held on June 9, 2026. The Ordinance is now ready for its second reading and adoption.

The proposed Ordinance will repeal and replace Milpitas Municipal Code Title I, Chapter 310 to:

1. Remove language duplicative of what is already in the Brown Act and Public Records Act.

2. Minimize the need for future amendments to the Ordinance.

3. Reduce potential for conflicts with State Law as it evolves.

4. Better reflect both the City’s current structure and the intent of the current City Council.

ANALYSIS:

Waiving the second reading is commonplace for ordinances previously considered by City Council and returning for adoption without substantial changes from the initial introduction. No substantive changes have been made to the Ordinance since its introduction on June 9, 2026.

POLICY ALTERNATIVE(S):

Not applicable.

PROJECT SCHEDULE/KEY MILESTONES
First reading and introduction of Ordinance No. 262.9 occurred on June 9, 2026. Following adoption on June 16, 2026, the Ordinance will take effect 30 days thereafter, on July 16, 2026.

FISCAL IMPACT:

There is no specific fiscal impact to adoption of this ordinance; however, adoption is expected to simplify administrative processes and alleviate challenges to City staff.

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. 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) Ordinance No. 262.9

Ordinance No. ___

REGULAR
NUMBER: 262.9
TITLE: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF MILPITAS

REPEALING AND REPLACING MILPITAS MUNICIPAL CODE TITLE I, CHAPTER 310 RELATING TO THE OPEN GOVERNMENT ORDINANCE
HISTORY: This Ordinance was introduced (first reading) by the City Council at its meeting of June 9, 2026, upon motion by Councilmember Chua and was adopted (second reading) by the City Council at its meeting of _______________, upon motion by ____________________________. The Ordinance was duly passed and ordered published in accordance with law by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

ATTEST: APPROVED:
________________________________ __________________________ Suzanne Guzzetta, City Clerk Carmen Montano, Mayor
APPROVED AS TO FORM:
________________________________
Christian M. Curtis, City Attorney

Ordinance No. ___
RECITALS AND FINDINGS:

WHEREAS, in 2005 the Milpitas City Council adopted Title I, Chapter 310 of the Milpitas Municipal Code, commonly known as the Milpitas Open Government Ordinance; and WHEREAS, the Milpitas Open Government Ordinance sets forth local rules for such topics as the conduct of public meetings and the provision of public records, and was modeled upon and contained provisions of the Ralph M. Brown Act and the California Public Records Act, as they existed at that time; and WHEREAS, the Open Government Ordinance has been amended several times since its enactment but has not kept pace with the numerous changes to the Ralph M. Brown Act and the California Public Records Act, interpretive guidance from the California Attorney General, published caselaw from the California Supreme Court and various California Courts of Appeals, technological advancements, changes in the structure of the Milpitas City Government, and a bevy of other legal and practical changes over the last two decades; and WHEREAS, the outdated structure of the Open Government Ordinance has contributed to confusion and a lack of awareness of the ordinance’s requirements by members of the public, city staff, and the officials that the ordinance is intended to govern; and
WHEREAS, the Milpitas City Council believes that the Open Government Ordinance’s goals of transparency, public participation, and government accountability are better served by a simplified and revised ordinance that clearly articulates local requirements that go beyond existing state law; and WHEREAS, the City Council, consistent with California Government Code sections 7920.000- 7931.000 and 54950-54963, wishes to replace Title I, Chapter 310 of the Milpitas Municipal Code to update the Open Government Ordinance to provide greater clarity of the intent and purpose of the Ordinance in the interest of the City Council and residents of the City of Milpitas.

NOW, THEREFORE, the City Council of the City of Milpitas does ordain as follows:

SECTION 1. RECORD AND BASIS FOR ACTION
The City Council has duly considered the full record before it, which may include but is not limited to such things as the City staff report, testimony by staff and the public, and other materials and evidence submitted or provided to the City Council. Furthermore, the recitals set forth above are found to be true and correct and are incorporated herein by reference.

SECTION 2. REPEAL OF EXISTING ORDINANCE
Title I, Chapter 310 of the Milpitas Municipal Code, as it currently exists, is hereby repealed in its entirety.

SECTION 3. ENACTMENT OF MILPITAS MUNICIPAL CODE TITLE I, CHAPTER 310 A new Title I, Chapter 310 of the Milpitas Municipal Code is hereby enacted to read as follows:

Chapter 310 OPEN GOVERNMENT ORDINANCE
Section 1 Title

Created: 2026-02-24 10:13:14 [EST]
(Supp. No. 59)

I-310-1.10 Citation
This Chapter may be cited as the Milpitas Open Government Ordinance.

Section 2 Public Access to Meetings
I-310-2.10 Meetings to be Open and Public; Application of Brown Act The City of Milpitas is governed by the provisions of the Ralph M. Brown Act (Government Code Sections 54950 et seq.), and the City Council, along with all of the City’s boards, commissions, standing committees, or other bodies shall comply with all requirements contained therein.

Additionally, the City Council and any other “legislative body” of the City (as that term is defined in Government Code section 54952), shall comply with all additional requirements set forth is this Chapter.

I-310-2.20 Agenda Requirements; Regular Meetings
(a) At least six (6) calendar days before a regular City Council meeting, a preliminary agenda shall be posted in the same manner as the final agenda, except that the purpose of the preliminary agenda is to provide only a list of items tentatively scheduled for consideration at the next regular meeting. Preliminary agendas are "pre-agendas" subject to change that are posted the Wednesday the week preceding the regular City Council meeting and are not the agenda posted in compliance with the Brown Act at least 72 hours before a regular meeting. A preliminary agenda may be amended to include additional items, delete items or may be amended in any other manner prior to the final posting of the agenda at least 72 hours before a regular meeting. (b) Each legislative body shall ensure that notices and agendas for regular and special meetings shall include the following notice:

KNOW YOUR RIGHTS UNDER THE OPEN GOVERNMENT ORDINANCE
Government's duty is to serve the public, reaching its decisions in full view of the public.

Commissions, boards, councils and other agencies of the City exist to conduct the people's business. The Open Government Ordinance assures that deliberations are conducted before the people and that City operations are open to the people's review.

FOR MORE INFORMATION ON YOUR RIGHTS UNDER THE OPEN GOVERNMENT ORDINANCE

OR TO REPORT A VIOLATION OF THE ORDINANCE, CONTACT THE CITY ATTORNEY'S OFFICE (c) Each agenda of a legislative body shall include the contact name, address, phone number, and e-mail address for the City Attorney's Office. Information on how to obtain a free copy of the Open Government Ordinance shall be included on each agenda.

I-310-2.30 Additional Public Statements and Comments
Members of the public may submit written statements and/or comments regarding any item on a legislative body’s meeting agenda to the City Clerk, who shall transmit those writings to the body.

Those statements or comments, while not read aloud at the public meeting, shall become public record, regardless of whether their authors are present when the item at issue is discussed.

Written statements and/or comments shall be subject to review and consideration by those bodies if submitted before or during the hearing on the item.

Ordinance No. ___
I-310-2.40 Public Participation
Whenever the City Council, a board or commission, or any committee thereof anticipates that the number of persons attending the meeting will exceed the legal capacity of the meeting room, any public address system used to amplify sound in the meeting room shall be extended by supplementary speakers to permit the overflow audience to listen to the proceedings in an adjacent room or passageway, unless such supplementary speakers would disrupt the operation of a City office.

Each legislative body shall provide that each person wishing to speak on an item before the body at a regular or special meeting shall be permitted to be heard once for a maximum of three minutes. However, the Chair of the meeting has discretion to reduce the speaking time as required for orderly and efficient administration of the meeting. The Chair of the policy body shall accept public testimony in a fair and even-handed way, and time limits shall be applied as uniformly as practicable.

I-310-2.50 Minutes
(a) The clerk or secretary of policy bodies shall record the minutes for each regular and special meeting of those bodies.
(b) To the extent feasible, the draft minutes of each meeting are to be made available and approved at the next regularly scheduled meeting of the policy body and be available for inspection and copying upon request after the minutes have been approved.

I-310-2.60 Public Comment by Members of Policy Bodies
Every member of a legislative body retains the full constitutional rights of a citizen to comment publicly on the wisdom or propriety of government actions, including those of the policy body of which he or she is a member. Policy bodies shall not sanction, reprove or deprive members of their rights as elected or appointed officials for expressing their judgments or opinions, including those which deal with the perceived inconsistency of non-public discussions, communications or actions with the requirements of state or federal law or of this chapter. The release of specific factual information made confidential by state or federal law including, but not limited to, closed session discussions or the privilege for confidential attorney-client communications, may be the basis for a request for injunctive or declaratory relief, seeking an accusation of misconduct, or both.

I-310-2.70 Role of City Attorney on Items Before Council The Milpitas Municipal Code and state law do not explicitly bar the City Attorney from offering unsolicited legal advice either verbally or in writing on matters before the Council. This chapter should be interpreted as such that the City Attorney, in addition to regular duties, should be outspoken in giving advice on the validity of legal compliance on all matters.

I-310-2.80 Conflict Disclosures Required at City Council Meetings At the beginning of each City Council meeting or upon the arrival of the Mayor or Councilmember, the City Attorney shall ask the Mayor and each member of the City Council to disclose any financial or personal conflict with any item on the City Council's agenda. In addition, pursuant to Government Code section 87105, if the Mayor or a Councilmember discloses that a financial interest is present, immediately prior to consideration of that matter, he or she shall publicly identify the conflict or potential conflict in detail sufficient to be understood by the public, and shall then recuse him or herself in the manner required by law.

Ordinance No. ___
I-310-2.90 Compliance Does Not Affect Validity of Action The provisions of this Chapter are intended to be directory. Failure to follow the requirements of this ordinance shall not invalidate any action taken by the City Council or other legislative body, unless the facts constituting such failure would independently invalidate that action under the Brown Act or other applicable law.

Section 3 Public Information and Public Records
I-310-3.10 Definitions
Whenever in this chapter the following words or phrases are used, they shall mean:
(a) "Public Information" shall mean the content of "public records" as defined in the California Public Records Act, whether provided in documentary form or in oral communication. "Public Information" shall not include "computer software" developed by the City of Milpitas as defined in the California Public Records Act or information that is exempt from disclosure under the Public Records Act. (b) "Lobbyist" means a person or business entity that receives $250 or more in a calendar year for communicating, using any means, with City officials or employees to influence current or future City legislation, administrative decisions, or City Council elections or local initiative measures. Officials or employees of other government agencies shall not be deemed lobbyists for purposes of this ordinance when communicating with City officials or employees on behalf of such other government agency.

I-310-3.20 Access to Public Records
Release of documentary public information, whether for inspection of the original or by providing a copy, shall be governed by the California Public Records Act. The City of Milpitas shall also comply with those additional requirements set forth in this chapter.

I-310-3.30 Administrative Appeals
(a) Any person requesting public records who believes that their request was improperly denied, was responded to in an incomplete manner, or that some or all records were improperly withheld may within thirty (30) days of the City’s final response to the request file a written petition with the City Clerk seeking a determination whether the records requested are public. The petition must specify the basis for the petition, including by clearly stating how the City’s response was incomplete, and identify the corrective action requested. Said petition shall be heard by the City Manager or their designee, in consultation with the City Attorney. The City Manager or their designee shall then inform the petitioner, as soon as possible and within ten (10) days, of their determination. If the determination is that the City’s response to the request was in any way deficient, the City Manager shall take appropriate action to ensure that a corrected response be provided at the earliest opportunity. Where requested by the petition, and where otherwise desirable, this determination shall be in writing.
(b) The administrative remedy provided under this chapter shall in no way limit the availability of other administrative remedies provided to any person with respect to any officer or employee of any agency, executive office, department or board; nor shall the administrative remedy provided by this section in any way limit the availability of judicial remedies otherwise available to any person requesting a public record.

Ordinance No. ___
I-310-3.50 Oral Release of Public Information
Oral release of public information shall be accomplished as follows:
(a) Every department head shall designate a person or persons knowledgeable about the affairs of the department, to provide information, including oral information, to the public about the department's operations, plans, policies and positions. The department head may designate himself or herself for this assignment, but in any event shall arrange that an alternate be available for this function during the absence of the person assigned primary responsibility.
(b) The role of the person or persons so designated shall be to provide information on as timely and responsive a basis as possible to those members of the public who are not requesting information from a specific person. This section shall not be interpreted to curtail existing informal contacts between employees and members of the public when these contacts are occasional, acceptable to the employee and the department, not disruptive of his or her operational duties and confined to accurate information not confidential.
(c) If it would take an employee more than fifteen minutes to obtain the information responsive to an inquiry or inquiries from a member of the public, the employee may instead notify the requestor of the procedures for obtaining public records. (d) Public employees shall not be discouraged from or disciplined for the expression of their personal opinions on any matter of public concern while not on duty, so long as the opinion (1) is not represented as that of the department and does not misrepresent the department position; and (2) does not disrupt coworker relations, impair discipline or control by superiors, erode a close working relationship premised on personal loyalty and confidentiality, interfere with the employee's performance of his or her duties or obstruct the routine operation of the office in a manner that outweighs the employee's interests in expressing that opinion. In adopting this subsection, the City Council intends merely to restate and affirm court decisions recognizing the First Amendment rights enjoyed by public employees. Nothing in this section shall be construed to provide rights to City employees beyond those recognized by courts, now or in the future, under the First Amendment, or to create any new private cause of action or defense to disciplinary action.
(e) Notwithstanding any other provisions of this chapter, public employees shall not be discouraged from or disciplined for disclosing any information that is public information or a public record to any journalist or any member of the public. Any public employee who is disciplined for disclosing public information or a public record shall have a cause of action against the City and the supervisor imposing the discipline.

I-310-3.100 Withholding Kept to a Minimum
Information that is exempt from disclosure shall be masked, deleted or otherwise segregated so that the nonexempt portion of a requested record may be released and keyed by footnote or other clear reference to the appropriate justification for withholding.

I-310-3.110 Justification of Withholding
Any withholding of information shall be justified, in writing, in the manner required by the Public Records Act. That written justification shall also include the following additional information:

Created: 2026-02-24 10:13:14 [EST]
(Supp. No. 59)

(a) A withholding under a specific permissive exemption in the California Public Records Act, shall cite that authority.
(b) A withholding on the basis that disclosure is prohibited by law shall cite the specific statutory authority, caselaw, or other relevant authority. (c) A withholding on the basis that disclosure would incur civil or criminal liability shall cite any specific statutory or case law, or any other public agency's litigation experience, supporting that position.

I-310-3.150 Compilation of Records Available On-line
The City shall display in a convenient location on the internet, a compilation of on-line document resources. To the extent it is reasonable, records not available on-line, but otherwise available from the City from other sources, shall be identified on the City’s website together with the location where they may be accessed.

I-310-3.160 Internet Access/World Wide Web Minimum Standards The City shall maintain on a website, or on a comparable, readily accessible location on the Internet, information that it is required to make publicly available, to the extent it is practical to do so and considering whether such information is otherwise available in a different form from the City. To the extent it is reasonable, records not available on-line, but otherwise available from the City from other sources, shall be identified on the Website together with the location where they may be accessed.

Each department is encouraged to make publicly available through its website as much information and as many documents as possible concerning its activities. These include, but are not limited to, campaign report forms, statements of economic interest, operating and capital budgets, meeting agenda, meeting minutes, public notices and, when feasible, staff meeting reports. Each department shall post on its website all meeting notices required under this ordinance, all agendas and the minutes of all previous meetings of its policy bodies for the last three years. Notices and agendas shall be posted no later than the time that the department otherwise distributes this information to the public, allowing reasonable time for posting. Minutes of meetings shall be posted as soon as possible, but in any event within 48 hours after they have been approved. The City shall make reasonable efforts to ensure that its website is regularly reviewed for timeliness and updated on at least a weekly basis. The City shall also make available on a readily accessible location on the Internet, a current copy of the Municipal Code.

The City shall also webcast all City Council and Planning Commission meetings and archive the webcasts of such meetings for a period established by the City’s record retention schedule.

I-310-3.200 Calendars of Officials
Members of the City Council (including the Mayor), Planning Commission and the City Manager shall maintain a monthly City Calendar form which includes all City-related appointments, meetings, including regular and special City Council and Planning Commission meetings, public events or speaking engagements, meetings with developers, meetings with consultants, meetings with lobbyists, regional meetings, and meetings of subcommittees or task forces, but not to include social and personal events. The description shall include the meeting's duration and shall include a listing of all principal individuals present at meetings with developers, meetings with consultants, and meetings with lobbyists. The Mayor, City Council, City Manager and Planning

Created: 2026-02-24 10:13:14 [EST]
(Supp. No. 59)

Commission members shall submit the updated calendar forms for the prior month onto their individual on-line calendars which shall be maintained and available to the public on the City website. Councilmembers and Commissioners shall be trained in the operation and procedures for entering or re-entering data into an automated calendaring system maintained on the City's website.

I-310-3.210 Solicitation of Donations by Elected Officials Solicitation of donations by elected officials for charitable purposes and third-party political campaigns is permitted. Contributions over $100 made at the behest of an elected official must be reported to the City Clerk quarterly by the elected official making such requests. Such report is a public record. Reports must contain the following information:

1. Name of payer.

2. Address of payer.

3. Amount of payment.

4. Date or dates the payment or payments were made.

5. Name and address of the payee.

6. A brief description of the goods or services provided or purchased, if any.

7. A description of the specific purposes or event for which the payment or payments were made
I-310-3.220 Restriction and Prohibition on Certain Activities of Former Elected and Former Appointed Officials
For a period of two years following the expiration of their term, the Mayor and all members of the City Council and Planning Commission shall be prohibited from using the experience or contacts arising from their former office to assist any applicant through the permitting process. This provision is intended to supplement additional restrictions contained in Chapter 300, "Regulations of Certain Activities of Former City Officials."
Section 3.5 Regulation of Lobbying Activities
I-310-3.5.10 Purpose
The purpose of this chapter is to impose registration and disclosure requirements on those engaged in efforts to influence the decisions of City policy makers for compensation. Disclosure of lobbyists' identities and activities fosters public confidence in government officials by making government decision-making more transparent to the public. Additionally, the disclosure and registration requirements ensure that City officials are made aware of the interests that lobbyists represent when the officials are lobbied.

I-310-3.5.20 Interpretation
Unless the term is specifically defined in this chapter or the contrary is stated or clearly appears from the context, the definitions set forth in Government Code section 81000 et seq., shall govern the interpretation of this chapter.

Ordinance No. ___
I-310-3.5.30 Definitions
For the purposes of this chapter, the following definitions shall be applicable:
(a) "Activity expense" means any payment made by a lobbyist to or directly benefiting any City official, City official-elect or member of his or her immediate family. Activity expenses include gifts, honoraria, consulting fees, salaries and any other form of compensation, but do not include campaign contributions. (b) "Administrative action" means the proposal, drafting, development, consideration, advocacy or recommendation of any rule, regulation, agreement or contract, permit, license or hiring action.
(c) "At the behest" means at the specific direction of, or at the personal request or suggestion of, or with the express prior consent of, any elective City official, City officialelect or candidate for elective City office. (d) "City official" means any public official, or City employee who participates in the consideration of any legislative action or administrative action other than in a purely clerical, secretarial or ministerial capacity. It shall also include any City board or commission member, or City representative to any joint powers authority to which the City is a party, and any consultant to the City.
(e) "Client" means a person who is represented by a lobbyist. (f) "Compensation" includes, but is not limited to, money of any denomination or origin; goods or services or anything of value, delivered or rendered; commissions related to the purchase or sale of real property, or a contract or promise therefor; or promises to perform or provide services or contractual arrangements or awards. (g) "Contact" means attendance at a meeting with a City official or City official-elect, or any direct communication with a City official or City official-elect, whether oral, electronic or in writing, including, but not limited to communication through an agent, associate or employee, for the purpose of engaging in lobbying activity. (h) "Fundraising activity" means soliciting a contribution; hosting or sponsoring a fundraising event; or hiring a fundraiser or contractor to conduct any event designed for political fundraising at which contributions for any City official, candidate for elective City office or any controlled committee of an elected City official or candidate for City office or for any political action committee, political party or candidate for elective office of a governmental organization are solicited, delivered or made. (i) "Gift" means gift as defined in the California Political Reform Act, Government Code Section 81000 et seq., as amended from time to time.
(j) "Independent expenditure" means an expenditure made by any person, including a payment of public moneys by a state or local governmental agency, in connection with a communication which expressly advocates the election or defeat of a clearly identified candidate or the qualification, passage or defeat of a clearly identified measure, or taken as a whole and in context, unambiguously urges a particular result in an election but which is not made to or at the behest of the affected candidate or committee. (k) "Influencing" means the purposeful communication, either directly or through agents, promoting, supporting, modifying, opposing, causing the delay or abandonment of conduct, or otherwise intentionally affecting the behavior of a City official or officialPage 50 of 1482

Ordinance No. ___
elect, by any means, including, but not limited to, providing or using persuasion, information, incentives, statistics, studies or analyses. (l) "Intermediary" means a person who makes a campaign or officeholder contribution on behalf of another person. A person is an intermediary for a contribution if the recipient of the contribution would consider that person to be the contributor without the disclosure of the identity of the true source of the contribution. A lobbyist acts as an intermediary if the lobbyist makes a contribution on behalf of another person, and that other person is acknowledged as the contributor, and the lobbyist is reimbursed for the contribution. (m) "Legislative action" means the drafting, introduction, consideration, modification, enactment or defeat of any resolution, ordinance, amendment thereto, report, nomination, or other action of the Mayor, City Council, any City board, committee, or commission or any joint powers authority of which the City is a party, acting in its official capacity, or the granting, approval, or amendment of contracts or agreements to which the City is a party by any of the foregoing.
(n) "Lobbying" is the influencing or attempting to influence a legislative action or administrative action of the City.
(o) "Lobbyist," unless exempt under subsection (p) of this section, means:
(1) Contract lobbyist: A person who engages in lobbying on behalf of one or more clients (acting individually or through agents, associates, employees or contractors) and who has received or has entered into an agreement for compensation of $1,000.00 or more, or equivalent nonmonetary compensation ("threshold Compensation") for engaging in lobbying during any consecutive three-month period; (2) Business or organization lobbyist: Any business or organization, whose owner(s), officer(s) or employee(s) carry out lobbying on its behalf, in an aggregate amount of ten hours or more within any consecutive 12-month period, whether or not such officers or employees are specifically compensated to engage in lobbying; provided, that the activities of officers shall be considered lobbying only if those officers receive compensation by the business or organization beyond reimbursement for their reasonable travel, meals or incidental expenses; or (3) Expenditure lobbyist: A person who makes payments or incurs expenditures of $5,000.00 or more during any calendar year in connection with carrying out public relations, advertising or similar activities with the intent of soliciting or urging, directly or indirectly, other persons to communicate directly with any City official in order to attempt to influence legislative action or administrative action. The $5,000.00 threshold shall not include: (A) Compensation paid to contract lobbyists or employees for lobbying; or (B) dues payments, donations, or other economic consideration paid to an organization, regardless of whether the dues payments, donations or other economic consideration are used in whole or in part to lobby. (p) Exemptions to "lobbyist" include:
(1) Any public official acting in his or her official capacity or acting within the scope of his or her employment or appointment;
(2) The media, when limiting its action to the ordinary course of news gathering or editorial activity, as carried out by members of the press. "Media" shall mean newspapers or any other regularly published periodical, radio or television station or network or information published on the Internet. This exemption does not apply to

Ordinance No. ___
individuals conducting media activities when that individual would otherwise qualify as a contract lobbyist under this chapter;
(3) Persons reimbursed for only their reasonable travel, meals or incidental expenses, including, but not limited to, uncompensated members or directors of nonprofit organizations, such as chambers of commerce;
(4) Persons whose communications regarding any legislative action or administrative action are solely limited to appearing at or submitting testimony for any public meeting held by the City or any of its agencies, offices, or departments, as long as the communications thereto are public records available for public review. Persons who appear or testify at public meetings and who otherwise qualify as lobbyists due to other activities must register and disclose their lobbying activities directed toward City officials, and must identify themselves and their clients at public meetings, in the same manner and to the same extent such registration, disclosure, and identification is required of all other lobbyists;
(5) Persons submitting bids or responding to requests for proposals, provided the provision of such information is limited to direct conversation or correspondence with the official or department specifically designated to receive such information; (6) Persons providing oral or written information pursuant to a subpoena or otherwise compelled by law or regulation, or in response to an official request; provided, that the request and response thereto are public records available for public review; (7) Designated representatives of a recognized employee organization whose activities are limited to communicating with City officials or their representatives regarding (A) wages, hours and other terms or conditions of employment, or (B) the administration, implementation or interpretation of an existing employment agreement;
(8) Persons who are professionally licensed by a State licensing organization pursuant to the California Business and Professions Code, including, but not limited to, attorneys, architects and engineers; provided however, the exemption for attorneys shall only be applicable if the attorney is engaged in the practice of law with respect to the subject of the employment;
(9) Board members or employees of nonprofit 501(c)(3) corporations, unless the nonprofit organization is lobbying for a specific project, issue or person for which the organization has received compensation or a contribution to lobby for or against a specific project, issue or person;
(10) Members of neighborhood associations;
(11) A person hired by the City for work performed on behalf of the City, or a person who prepares documents for consideration by the City under the California Environmental Quality Act;
(12) The owner of a business whose attempts to influence governmental action are on behalf of the business and:
(i) The owner or business has not retained a person to engage in lobbying activity on behalf of the owner or business; or
(ii) Officers or employees of the business (not including the owner) have not engaged in lobbying activity on behalf of the owner or business.

Ordinance No. ___
(iii) This exemption applies only to the threshold for becoming a business or organization lobbyist as defined under section I-310-3.5.30(o), subsection (2). An owner of a business who meets this exemption is subject to the requirements of this chapter if he or she meets the definition of contract lobbyist or expenditure lobbyist as defined under subsections (1) and (3) of section I-310-3.5.30(o), respectively;
(13) Persons who meet with City officials solely to lodge "whistleblower" complaints relating to alleged improper governmental activity such as mismanagement, waste of funds, an abuse of authority, or a substantial and specific danger to public health or safety;
(14) Persons whose communications with City officials are solely in connection with the administration of an existing contract or agreement between the person and the City; or
(15) Persons who meet with the City Attorney, or City staff regarding any claim or litigation matter, negotiation of any agreements or contracts where the City is a party, or the requirements or interpretation of this chapter. (q) "Organization" means any person that is not an individual. (r) "Person" means any individual, domestic or foreign corporation, for-profit or nonprofit entity, firm, association, syndicate, union, chamber of commerce, joint-stock company, partnership of any kind, limited liability company, common-law trust, society, or any other group of persons acting in concert.

I-310-3.5.40 Registration
Lobbyists shall register with the City Clerk within 15 days after qualifying as a lobbyist under Milpitas Municipal Code section I-310-3.5.30. Should a lobbyist have a change to its registration information, including, but not limited to, the city legislative action or administrative action as to which the lobbyist has been engaged, after the annual registration period, such lobbyist shall file an amended registration with the City Clerk within 15 days of such change with the changed information.

I-310-3.5.50 Annual Registration Renewal
A lobbyist shall renew his or her registration by January 15 of each year unless he or she has terminated their status as a lobbyist pursuant to Milpitas Municipal Code section I-310-3.5.60 by such date.

I-310-3.5.60 Termination of Lobbyist Status
After initial registration, annual registration renewal will not be required if a declaration attesting to the termination of lobbying services within the City has been filed with the City Clerk no later than January 15.

I-310-3.5.70 Active Status
All registrations, renewals and terminations will be deemed filed on the date received by the City Clerk. A lobbyist shall be deemed active for the duration of the year of registration ending December 31, unless a declaration attesting to termination of lobbying services within the City is filed.

Created: 2026-02-24 10:13:15 [EST]
(Supp. No. 59)

I-310-3.5.80 Registration Fees
Persons subject to the registration requirements of this ordinance shall pay an annual fee set by resolution of the City Council.
(a) The applicable registration fee is due at the time of registration or registration renewal.

Payment will be deemed delinquent thereafter. Delinquency fees may be assessed as specified in subsection (c) below, if payment occurs after the due date. (b) In addition to the annual fee, each registrant shall pay a fee set by resolution of the City Council per client for whom lobbying is undertaken for compensation in excess of $500.00. The fees for clients as of the date of initial registration shall be submitted with the registration. The fees for subsequent clients shall be due and submitted within 15 days of such change with the changed information pursuant to section I-310-3.5.30. (c) A fine of $25.00 per day for delinquent fees, up to a maximum of $500.00, will be assessed until in compliance with the registration provisions herein.

I-310-3.5.90 Required Registration Information
The initial registration shall contain the name, business address, telephone, email addresses and if applicable, business license of all persons required to register pursuant to this Chapter, including the names of all owners of sole proprietorships and partnerships of fewer than ten persons. If the registrant is a corporation, limited liability company, or limited liability partnership, it shall also include the names of the president, secretary, chief financial officer, managing members, and agent for service of process, if any. Any business or organization registering under this act shall also briefly describe the nature of its business or organization and contact individual. In addition to this information, the report shall contain the following:
(a) Contract lobbyists: The name, business address, telephone number of each client, the nature of each client's business and the item(s) of legislative action or administrative action the lobbyist is seeking to influence on behalf of the client; and the name of each person employed or retained by the lobbyist to lobby on behalf of each client. (b) Business or organization lobbyists: The names of owners, officers or employees conducting lobbying activities and the item(s) of legislative action or administrative action the lobbyist is seeking to influence.
(c) Expenditure lobbyists: The item(s) of municipal legislative action or administrative action the lobbyist is seeking to influence.
(d) Payment received by the reporting lobbyist for services as a consultant or in any other capacity for services rendered to a City agency, any City official or any City official-elect or their controlled committees, or ballot measure committee within the previous calendar year. The dates of payment and name of each payer shall be included. (e) Campaign and officeholder contributions that a lobbyist made, delivered or acted as an intermediary for, to an elected City official or candidate for City office made during the preceding calendar year. A person is an intermediary for a contribution if the recipient of the contribution would consider that person to be the contributor without the disclosure of the identity of the true source of the contribution. Also, a lobbyist acts as an intermediary if the lobbyist makes a contribution on behalf of another person, and that

Ordinance No. ___
other person is acknowledged as the contributor, and the lobbyist is reimbursed for the contribution.
(f) Campaign and officeholder contributions made at the behest of an elected City official or candidate to any other elected public official or candidate for public office during the preceding calendar year.
(g) All independent expenditures made for or on behalf of a City official or candidate for City office made during the preceding calendar year.
(h) Fundraising activity for any City official, candidate for elective City office or any controlled committee of the elected City official or candidate for City office or for any political action committee, political party or candidate for elective office of a governmental organization made at the behest of a City official during the preceding calendar year. Required information and disclosures must include the name of the City official, candidate, committee or party on whose behalf the lobbyist engaged in fundraising activities, or delivered or acted as intermediary for one or more contributions. The information and disclosures must also include the name of the City official requesting the fundraising activity, the date of the fundraising activity, the name of the contributors and the amount of contributions raised, delivered and/or made in connection with which the lobbyist acted as an intermediary. (i) Donations to for-profit or nonprofit organizations made at the behest of a City official or candidate for elective City office of any contribution or payment of more than $1,000.00 in the aggregate made during the preceding calendar year. (j) Contacts made with City officials or City officials-elect during the preceding calendar year for the purpose of influencing or attempting to influence legislative action or administrative action. Contact information must include a brief description of the item(s) of legislative action or administrative action the lobbyist is seeking to influence, the date(s) of contact, the method(s) of contact, and the number of contacts in the following ranges: (one), (two to five), (six to ten) or (11 or more). (k) Activity expenses such as payments that directly benefit any City official, City official-elect or member of his or her immediate family or domestic partner made during the preceding calendar year. Activity expenses include gifts, honoraria, consulting fees, salaries and other forms of compensation, but do not include campaign contributions. (l) The name, address, title and telephone number of the person responsible for preparing the report, together with that individual's signature attesting to the authority of the signatory and the accuracy and truthfulness of the information submitted.

I-310-3.5.100 Quarterly Reports
Quarterly reports for the prior three-month period are to be filed with the City Clerk on or before July 15, October 15, January 15, and April 15 of each year, whether or not any lobbying activities have occurred during such period. Electronic reporting may also be permitted by the City Clerk.

Each quarterly report shall contain the same information as required to be disclosed in the initial registration, for those activities occurring in that period. If a lobbyist has terminated all lobbying activities during such period, the lobbyist may file a declaration of termination with the quarterly report. The final quarterly report shall include disclosure of any lobbying activities during the period of termination.

Created: 2026-02-24 10:13:15 [EST]
(Supp. No. 59)

I-310-3.5.110 Records Retention
All information, reports and statements required to be filed under the provisions of this chapter shall be compiled and preserved by the City pursuant to the City's records retention schedule and shall be open to public inspection. Copies of the records pertaining to the above-required reports shall be preserved by the lobbyist for inspection and audit for a period of four years from date of production.

I-310-3.5.120 Lobbyist Identification
When appearing in a lobbying capacity at any meeting with a City official or at a public meeting of the City Council or any other City board, commission or hearing, a contract lobbyist shall identify himself/herself and the client(s) on whose behalf he/she is appearing, and a business or organization lobbyist shall identify himself/herself and the business or organization he/she represents.

I-310-3.5.130 Prohibitions
It shall be unlawful for any lobbyist to commit any of the following acts:
(a) Unregistered lobbying: Acting as a lobbyist in the City without having registered in compliance with this chapter, or knowingly to employ a person or entity to serve as a lobbyist when such person is not registered pursuant to this chapter. (b) Unauthorized communications: Sending or causing any communication to be sent to any City official in the name of any nonexistent person or in the name of an existing person without the express or implied consent of such person.
(c) Indirect violations: Attempting to evade the requirements of this chapter through indirect efforts or through the use of agents, associates, intermediaries or employees. (d) Creation of obligations: Performing or sponsoring any act with the purpose and intent of placing any City official under personal obligation to the lobbyist.

I-310-3.5.140 Gifts
It shall be unlawful for any lobbyist to deliver or cause to be delivered any gift to any City official, and for any City official to accept any gift from a lobbyist.

I-310-3.5.150 Enforcement
Persons or entities that violate this chapter may be subject to penalties as set forth in Milpitas Municipal Code sections I-1-4.09-1 to I-1-4.09-11.

I-310-3.5.160 Injunction
The City Attorney or his designee may seek injunctive relief in the courts to enjoin violations of or to compel compliance with the provisions of this chapter.

Created: 2026-02-24 10:13:15 [EST]
(Supp. No. 59)

I-310-3.5.170 Practice Restrictions
No person who the City finds to have violated this chapter may act as a lobbyist or otherwise attempt to influence municipal legislative actions or administrative actions for compensation for one year after such finding of violation.

I-310-3.5.180 Exemptions
Any person who in good faith and on reasonable grounds believes that he or she is not required to comply with the provisions of Milpitas Municipal Code section I-310-3.5.40 by reason of his or her being exempt under Milpitas Municipal Code section I-310-3.5.30(p) shall not be deemed to have violated the provisions of Milpitas Municipal Code section I-310-3.5.40 if, within 15 days after notice from the City, he or she either complies or furnishes satisfactory evidence to the City that he or she is exempt from registration.

I-310-3.5.190 Lobbyists on Behalf of the City
(a) Any lobbyist who contracts for economic consideration with the City of Milpitas to represent the City in matters before any local, regional, state, or federal administrative or legislative body shall file a public records report of their activities on a quarterly basis with the City Clerk's office. This report shall be maintained by the City Clerk's office and not be exempt from disclosure. Each quarterly report shall identify all financial expenditures by the lobbyist, the individual or entity to which each expenditure was made, the date the expenditure was made, and specifically identify the local, state, regional or national legislative or administrative action the lobbyist supported or opposed in making the expenditure. The failure to file a quarterly report with the required disclosures shall be a violation of this chapter. (b) No person shall be deemed a lobbyist on behalf of the City under subsection (a) of this section, unless that person receives or becomes entitled to receive at least $250.00 total compensation in any month for influencing legislative or administrative action on behalf of the City of Milpitas. No business or organization shall be deemed as a lobbyist under subsection (a) of this section unless it compensates its employees or members for their lobbying activities on behalf of the City of Milpitas, and the compensated employees or members have at least 25 separate contacts with local, state, regional or national officials for the purpose of influencing legislative or administrative action within any two consecutive months. "Total compensation" shall be calculated by combining all compensation received from the City of Milpitas during a month of lobbying activities on matters at the local, state, regional or national level. "Total number of contacts" shall be calculated by combining all contacts made during a two-month period on behalf of the City of Milpitas for all lobbying activities on matters at the local, state, regional or national level.
(c) Funds of the City of Milpitas shall not be used to support any lobbying efforts to restrict public access to records, information, or meetings, except where such effort is solely for the purpose of protecting the identity and privacy rights of private citizens.

SECTION 4. SEVERABILITY
The provisions of this Ordinance are separable, and the invalidity of any phrase, clause, provision or part shall not affect the validity of the remainder.

Ordinance No. ___
SECTION 5. EFFECTIVE DATE AND POSTING
In accordance with Section 36937 of the Government Code of the State of California, this Ordinance shall take effect thirty (30) days from and after the date of its passage. The City Clerk of the City of Milpitas shall cause this Ordinance or a summary thereof to be published in accordance with Section 36933 of the Government Code of the State of California.

CITY OF MILPITAS

AGENDA REPORT
(AR)
Item Title: Authorize the City Manager, or Designee, to Negotiate and Execute a Professional Services Agreement with WeHOPE for Homeless Outreach, Assessment, and Mobile Hygiene Services (Staff Contact: Luz Cofresí-Howe, Finance Director, 408-586-3111; and Sarah Balcha, Senior Administrative Analyst, 408-586-3268)
Category: Consent Calendar-Community Development
Meeting Date: 6/16/2026
Recommendation: (1) Authorize the City Manager, or designee, to negotiate and execute a Professional Services Agreement with WeHOPE for Homeless Outreach, Assessment, and Mobile Hygiene Services for a five-year term and a maximum compensation not to exceed $849,208, subject to the appropriation of funds; and (2) Approve an increase of $159,952 in the Affordable Housing Grant Fund in FY 2026-27.

BACKGROUND:

On October 6, 2020, City staff, in coordination with Destination: Home and Santa Clara County, presented the 2020-2025 Regional Community Plan to End Homelessness to the Milpitas City Council as a roadmap for how to address and end homelessness in Santa Clara County. At a special City Council meeting on October 15, 2020, City Council directed staff to return to City Council with a proposal for a comprehensive strategy to prevent and respond to homelessness in Milpitas. On November 10, 2020, City Council approved and authorized staff to enter into an agreement with Santa Clara County for homeless outreach, assessment, and street-based case management services. On December 1, 2020, City Council adopted a resolution endorsing the 2020-2025 Santa Clara County Community Plan to End Homelessness, which included a six-month pilot program for weekly hot shower, laundry, and case management services for unhoused residents in Milpitas.

On February 21, 2021, staff entered into an agreement with WeHOPE, a nonprofit agency based in Santa Clara County, for the pilot program. The agreement was for 26 sessions of services for a not-to-exceed amount of $21,372. Mobile hygiene services provided a mobile shower and laundry trailer at no charge to the unhoused residents. At each session, WeHOPE also provided supplies such as towels, laundry pods, hair and body wash, and hygiene kits. On September 7, 2021, City Council received a report from staff on the pilot program and directed staff to extend the pilot for an additional 12 months. The pilot agreement was subsequently extended two more times and ended on June 30, 2023. On June 6, 2023, City Council approved a new three-year agreement with WeHOPE for mobile shower and laundry services for unhoused individuals.

The agreement was executed on July 5, 2023 with a term of July 1, 2023 to June 30, 2026.

In April 2024, the City issued a Request for Proposals (RFP 24-088) for homeless outreach. Based on the results of the RFP, WeHOPE was determined to be the best value proposer. On June 18, 2024, City Council authorized staff to enter into a one-year agreement with WeHOPE for homeless outreach and assessment services for an amount not to exceed $199,933. On June 17, 2025, City Council authorized staff to extend the term of the agreement through June 30, 2026 and add an additional $203,033 for a revised maximum compensation of $402,966.

Between September 2024 and September 2025, WeHOPE responded to 173 referrals from the City in addition to referrals identified through outreach. Additionally, from March 2021 through December 2025, WeHOPE provided 247 mobile hygiene sessions equating to 4,964 showers and 2,559 loads of laundry for 2,675 individuals, with an average of 50 unduplicated individuals per month. The agreements for these services both expire June 30, 2026.

ANALYSIS:

On March 17, 2026, the City released a Request for Proposal (RFP 26-181) for Homeless Outreach/Assessment and Mobile Hygiene Services. For Homeless Outreach/Assessment Services, vendors were asked to provide proposals for three levels of frequency: two days per week, three days per week, and five days per week. For Mobile Hygiene, vendors were asked to provide proposals for one location for a fourhour session once a week. Vendors were allowed to submit proposals for one or both services.

The RFP was publicly noticed on the City’s website and OpenGov, the City e-procurement website, in accordance with the City Municipal Code. Upon release, 6,924 RFP notifications were sent, and 23 firms downloaded the RFP. Three vendors submitted proposal responses by the published RFP closing date of April 21, 2026.

All three vendors submitted proposals for Homeless Outreach/Assessment Services, while only one of them, WeHOPE, also submitted a proposal for Mobile Hygiene Services. Since there was only one responsive proposal for Mobile Hygiene services, evaluators reviewed the Mobile Hygiene submission from WeHOPE and confirmed that the proposer was responsible and able to meet the City’s requirements for these services.

For the Outreach/Assessment Services, evaluators scored the proposers in accordance with the evaluation criteria set forth in the RFP. Final scores were as follows:

Evaluation Criteria
Evaluation
Criteria Weight
(%) LifeMoves
Pathways for
Progress
LLC WeHOPE
Cover Letter and RFP
Compliance 5% 3 1 4
Company Profile 10% 8 2 8
Execution Plan 10% 5 4 6
Personnel Assigned 20% 14 4 12
Service Proposal 25% 19 7 18
References 10% 8 2 8
Proposed Compensation 20% 5 19 20
Total Weighted Average 100% 62 39 76
Based on these results, WeHOPE was ranked as the best value proposer in accordance with the evaluation criteria set forth in this RFP. Since WeHOPE is the City’s current provider for both of these services and staff have been satisfied with their services to date, reference checks were not conducted for this RFP.

Staff recommend that the City enter a five-year contract with WeHOPE as follows:
• Homeless Outreach/Assessments: Services to be provided by two case workers three days per week for an amount not to exceed $99,840 for the first year. Based on this level of service with an annual increase not to exceed 3% per year after the first year of service, subject to vendor’s advance request and justification in accordance with an applicable industry index and City’s approval, the maximum fiveyear cost is estimated to not exceed $530,065. • Mobile Hygiene: Services to be provided once per week for a period of four hours for an amount not to exceed $60,112 for the first year. Based on this level of service with an annual increase not to exceed 3% per year, subject to vendor’s advance request and justification in accordance with an applicable industry index and City’s approval, the estimated maximum five-year cost will not exceed $319,143. • The combined not to exceed amount for both services for the first year will be $159,952, and the fiveyear not to exceed amount will be $849,208, subject to the appropriation of funds.

Under the City’s standard terms and conditions, the City reserves the right to terminate the Agreement or parts of the Agreement, with or without cause, with 10 calendar days’ notice. The Agreement will also include a provision that the Agreement is subject to the appropriation of funds by City Council.

Staff recommend reducing homeless outreach from five times a week to three times a week as WeHOPE has been providing consistent outreach since 2024. WeHOPE has built trust and relationships with the unhoused community. The number of unhoused individuals in the city has also decreased from 143 in 2023 to 79 in 2025 as reported in the Santa Clara County Point-In-Time Count. The Point-In-Time Count is a federal requirement in which members of the community go out and count every single unhoused person on a single morning. This count occurs every other year and has specific methodologies and formulas which allow jurisdictions to get an accurate picture of homelessness. For Milpitas, the data indicates a reduction in unhoused individuals.

Funding for this contract will be through a combination of the 2022 and 2023 Permanent Local Housing Allocation (PLHA) grant of $361,322 which City Council approved for homeless outreach and the approximate $380,000 remaining in the Homeless Prevention and Unhoused Services Grant which can be used for both homeless outreach and mobile shower and laundry services. The combined funding covers over 4 years of homeless outreach at three days per week and mobile shower and laundry services at 1 one day per week.

This means between these two grants; funding is secured for FY 26-27 – FY 29-30.

Frequency 2 days/week 3 days/week 5 days/week
Homeless Outreach $66,560.00 $99,840.00 $166,400.00
Homeless
Outreach
3 days/week Funding Source
Mobile Shower
and Laundry
1 day/week Funding Source Total
Year 1 $99,840.00 PLHA (as approved
by Council on
02/03/2026)
$60,112.00 Homelessness
Prevention and
Unhoused Services
Grant
$159,952.00
Year 2 $102,835.20 PLHA (as approved
by Council on
02/03/2026)
$61,915.36 Homelessness
Prevention and
Unhoused Services
Grant
$164,750.56
Year 3 $105,920.26 PLHA (as approved
by Council on
02/03/2026)
$63,772.82 Homelessness
Prevention and
Unhoused Services
Grant
$169,693.08
Year 4 $109,097.86 PLHA (as approved
by Council on
02/03/2026) +
Homelessness
Prevention and
Unhoused Services
Grant
$65,686.01 Homelessness
Prevention and
Unhoused Services
Grant
$174,783.87
Year 5 $112,370.80 TBD $67,656.59 Homelessness
Prevention and
Unhoused Services
Grant
$180,027.39
* Estimates include an annual fee increase of 3%
* Homelessness Prevention and Unhoused Services Grant may be replaced by an alternate funding source in future years.

POLICY ALTERNATIVE(S):

Alternative 1: Do not approve this recommendation and direct staff to cancel the RFP without an award of contract.

Pros: No funds will be expended.

Cons: The City has been providing its unhoused residents with homeless outreach and a mobile shower and laundry trailer since 2021. Discontinuing these vital services would create barriers in assisting unhoused residents with services and providing them with connection points to shelters.

Reason for Not Recommending: Many volunteer organizations partner with WeHOPE at the mobile shower and laundry trailer site. Not having a central location would make it harder for volunteers to provide unhoused individuals with additional services and support offered in addition to the free shower and laundry. This would also prevent City staff from responding to encampment notifications.

Alternative 2: Direct staff to remove, reduce, or maintain services. For Outreach/Assessment Services, they can be reduced to two days per week or less or increased back to five days per week. For Mobile Hygiene, it is already at its lowest level of service so the only way to reduce it further would be to remove it. It could be increased to more days per week, but with the significant reduction in the unhoused population in Milpitas, it is probably not necessary.

Pros: Less funds could be expended if services are reduced or eliminated.

Cons: A reduction in outreach would negatively impact how quickly outreach is deployed once notification is received. Keeping the service at five days a week would require more funding. Eliminating the mobile shower and laundry service would mean unhoused individuals would no longer have free access to these mobile hygiene services.

Reason for Not Recommending: The 2025 Point-In-Time Count reported 79 unhoused individuals in Milpitas which was a reduction from 142 unhoused individuals in 2023. Additionally, WeHOPE has conducted homeless outreach in Milpitas since 2024 and has built trust within the community. Due to the reduction in unhoused individuals in Milpitas, the need for these services should likewise be reduced. However, reducing the days of the week to two would be drastic and result in the City not being able to respond to encampment notifications in a timely manner. Removing the mobile hygiene services that have been provided since 2021 would not only remove these services from the unhoused population but would also impact the large number of community volunteers who normally show up every week to provide additional services. The cost of service is relatively inexpensive, and it is a core service the City provides to its unhoused residents.

PROJECT SCHEDULE/KEY MILESTONES
Following approval of this recommendation, staff will execute a new contract with WeHOPE by June 30, 2026 with a start date of July 1, 2026.

FISCAL IMPACT:

For Fiscal Year 2026-27, the appropriation action to increase the Affordable Housing Grant Fund (Fund 218) by $159,952 will ensure sufficient funds are available to cover the first year’s expense of this contract. Upon City Council approval, this contract will be funded by the 2022 and 2023 Permanent Local Housing Allocation (PLHA) grant and the Homelessness Prevent and Unhoused Services Grant programs. Funding for future fiscal years will be requested and appropriated through the City’s annual budget process.

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: Authorize the City Manager, or Designee, to Negotiate and Execute an Agreement for Crossing Guard Services with All City Management Services, Inc. (Staff Contact: Luz Cofresí-Howe, Finance Director, 408-586-3111; and 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 Professional Services Agreement for Crossing Guard Services with All City Management Services, Inc. for an initial three-year term of August 1, 2026 through July 31, 2029 with a maximum compensation of $2,920,549 plus one additional option, to be exercised at the City’s sole discretion, to extend the agreement for an additional three-year term through July 31, 2032 with a maximum compensation of $3,190,055 for a combined contract not-to-exceed amount of $6,110,604 for the full six years, subject to the appropriation of funds.

BACKGROUND:

The Milpitas Crossing Guard Program was first adopted in 2006. Its purpose is to provide crossing guard assistance to children and pedestrians at intersections along school routes to enhance public safety. Through the 2022-2023 school year, the program was managed directly by the Milpitas Police Department. However, due to staffing capacity issues, the Police Department was no longer able to provide these services after this time.

On June 20, 2023, City Council authorized staff to enter into a one-year agreement with All City Management Services, Inc. to provide crossing guard services for the 2023-2024 school year, with one additional one-year option to extend the agreement through the 2024-2025 school year. The option was exercised on June 5, 2024 to extend the term of the agreement through July 31, 2025. Additionally, on June 17, 2025, City Council authorized staff to execute an amendment to the agreement to extend it for one additional year through July 31, 2026 to allow staff sufficient time to complete a competitive solicitation for these services.

ANALYSIS:

On March 25, 2026, the City released a Request for Proposal (RFP 25-1195) for Crossing Guard Services.

The scope of work included providing crossing guard services for 37 sites during the regular 180-day school year for an estimated 26,325 hours and at selected sites for the 25-day summer school session for an estimated 800 hours.

The RFP was publicly noticed on the City’s website and OpenGov, the City e-procurement website, in accordance with the City Municipal Code. Upon release, 6,937 notifications were sent to registered users, and 20 users downloaded the RFP. Three vendors submitted proposal responses by the published RFP closing date of April 22, 2026.

Evaluators scored the proposals in accordance with the evaluation criteria set forth in the RFP. Final scores were as follows:

Vendor
Evaluation
Criteria
Weight (%)
All City
Management
Services, Inc.

Crossing
Guard
Services LLC
Unified
Protective
Services, Inc.

Cover Letter and RFP Compliance 5% 5 4 3
Experience and Qualifications 20% 19 17 5
Execution Plan 20% 19 15 9
Service Capabilities 30% 28 24 13
References 5% 5 4 2
Proposed Compensation 20% 11 12 20
Weighted Average Score 100% 87 76 52
Based on these results, All City Management Services, Inc. was ranked as the best value, responsive, and responsible proposer. Since All City Management Services, Inc. is the City’s current provider, reference checks were not conducted as staff have been satisfied with the vendor’s services to date.

Staff recommend that the City enter into a contract with All City Management Services, Inc. for an initial threeyear term for an amount not to exceed $2,920,549, subject to the annual appropriation of funds and in accordance with the City’s standard terms and conditions. Staff also recommend including one three-year option to extend the agreement for an amount not to exceed $3,190,055. The combined total contract amount for the full six years of the contract, should the City elect to exercise the option, would be $6,110,604. This cost includes fixed hourly pricing for each year with an increase cap of 3% per year. Under the City’s standard terms and conditions, the City reserves the right to terminate all or part of the agreement, with or without cause, with 10 calendar days’ notice. The agreement also includes a provision for termination due to nonappropriation of funds.

POLICY ALTERNATIVE(S):

Alternative 1: Do not authorize the City Manager, or designee, to negotiate and execute the agreement.

Pros: The City would not incur costs for these services.

Cons: There would be a gap in crossing guard services that would not be fillable by the Police Department due to current staffing constraints.

Reason for Not Recommending: A gap in crossing guard services jeopardizes public safety.

PROJECT SCHEDULE/KEY MILESTONES
Following approval of this recommendation, staff will negotiate and execute an agreement with All City Management Services, Inc. by July 31, 2026, with a start date of August 1, 2026.

FISCAL IMPACT:

General funds in the amount of $964,971 are included in the Fiscal Year 2026-2027 budget request, which was approved by City Council on June 9, 2026. Funding for future fiscal years is subject to appropriation through the City’s annual budget process.

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: Authorize the City Manager, or Designee, to Negotiate and Execute a Purchase Order with JWC Environmental, Inc. for the Purchase and Installation of Two Channel Monster Grinders (Staff Contact: Luz Cofresí-Howe, Finance Director, 408-586-3111; and Christian Di Renzo, Public Works Director, 408-586-2602) Category: Consent Calendar-Community Services and Sustainable Infrastructure Meeting Date: 6/16/2026
Recommendation: Authorize the City Manager, or designee, to negotiate and execute a purchase order with JWC Environmental, Inc. for the purchase and installation of two Channel Monster Grinders for a not-to-exceed amount of $275,722.

BACKGROUND:

The City of Milpitas’ municipal sewer collection system consists of 175 miles of gravity pipes and five miles of force main. The system also includes two pump stations: the Venus Station, which lifts sewage out of the lowlying Pines neighborhood, and the Main Lift Station, which pumps all City sewage through dual 2.5-mile force mains to the San José/Santa Clara Regional Wastewater Facility for treatment.

The Main Lift Station is equipped with four JWC Environmental Channel Monster Model CDD6020 grinders.

Each grinder is located within an individual concrete channel, and all influent sewage flows through the grinders before being pumped to the wastewater treatment plant. Two of the grinders were installed in 2007 and are now almost 20 years old, which is their estimated useful life. The other two grinders were replaced in 2025. The Public Works Department scheduled replacement of the two 20-year-old grinders over a two-year period as part of the adopted Capital Improvement Program budget.

ANALYSIS:

Because the electrical, mechanical, and hydraulic infrastructure at the Main Lift Station is specifically engineered to accommodate these JWC Environmental Channel Monster Model CDD6020 grinders, use of a different grinder would require significant costs to complete modifications to the existing infrastructure to ensure system compatibility, interoperability, operational reliability, and cost-effective maintenance. Based on this, the Purchasing Agent approved a standardization for JWC Environmental Channel Monster Model CDD6020 grinders on June 3, 2026 pursuant to Municipal Code §I-2-3.14 (Standardization).

While JWC Environmental, Inc. (JWC), the grinder manufacturer, does have an authorized reseller and service provider assigned to our region, the regional vendor has been consistently unresponsive to City staff so JWC agreed to work directly with the City. On June 3, 2026 pursuant to Municipal Code §I-2-3.06 (Sole Source Procurement), the Purchasing Agent approved a sole source designation for JWC for the purchase of grinders and parts as well as related services such as installation, maintenance, and repair.

Staff requests authority to issue a purchase order to JWC for the purchase and installation of two Channel Monster Model CDD6020 grinders for a not-to-exceed amount of $275,722. Another vendor, under a separate contract, will provide crane services to lift the grinders into place, after which JWC will complete the installation process.

POLICY ALTERNATIVE(S):

Alternative 1: Do not approve this purchase order.

Pros: No City funds would be expended.

Cons: The two 20-year-old grinders that are at the end of their estimated useful life could become nonoperational.

Reason for Not Recommending: Failure of the existing grinders could result in sewage overflows which would pose significant public health, safety, and environmental hazards.

PROJECT SCHEDULE/KEY MILESTONES
Following approval of this recommendation, staff will negotiate and execute a purchase order with JWC Environmental, Inc. by July 15, 2026.

FISCAL IMPACT:

Sufficient funds for this $275,722 purchase are available in Capital Improvement Project 6124, Sewer Pump Station Rehabilitation Program. As of May 18, 2026, the available balance for CIP No. 6124 is $1,790,553.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):

This project is categorically exempt from CEQA under the Class 1 (Existing Facilities) exemption, California Code of Regulations, Title 14, Section 15301, which applies to the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing use.

ATTACHMENT(S):

None.

CITY OF MILPITAS

AGENDA REPORT
(AR)
Item Title: Adopt Ordinance No. 38.862 Approving a Development Agreement between the City of Milpitas and Milpitas – District 2 Associates, LLC and Fields CH Owner, LLC (Staff Contact: Jay Lee, Planning Director, 408-586-3077) Category: Consent Calendar-Community Development
Meeting Date: 6/16/2026
Recommendation: Waive the second reading and adopt Ordinance No. 38.862 approving a Development Agreement between the City of Milpitas and Milpitas – District 2 Associates, LLC and Fields CH Owner, LLC to provide certainty as to the applicable development standards for the development of 109 townhomes and 10 ADUs at 1320 McCandless Drive (APNs 086-33-112, -113, and -114).

BACKGROUND:

This Ordinance was introduced at the City Council meeting held on May 19, 2026, following a duly noticed public hearing. The Ordinance is now ready for its second reading and adoption.

In 2025, Lyon Living (the “Applicant”) submitted an application to develop 109 multi-family townhomes and 10 Accessory Dwelling Units on a vacant 5.49-acre site located in the MXD2-Metro Zoning District at 1320 McCandless Drive. Nine of the 109 units will be live-work units. The current application proposes a further amendment to Site Development Permit No. SD15-0006 (SA20-0004) through SA25-0002 and Conditional Use Permit (CUP) No. UP15-0010 (through UA25-0003), as amended by SA20-0004. The application also includes Vesting Tentative Tract Map No TM26-0001, Density Bonus Permit No. DB26-0001, and Development Agreement No. 26-0001. On May 19, 2026, the City Council held a duly noticed public hearing to discuss the Project and Development Agreement. After further negotiations, the Council and Applicant agreed on a modified contribution of $700,000 from the Applicant to the City, up from the original $400,00.

ANALYSIS:

Waiving the second reading is commonplace for ordinances previously considered by the Council and returning for adoption without substantive changes from the initial introduction. No substantive changes have been made to the Ordinance since its introduction on May 19, 2026.

The Project is eligible for a Development Agreement because it is a large-scale multifamily residential project and part of a multi-phased master-planned development requiring significant front-end investment and multiple years to complete construction, and otherwise requires long-term certainty on the part of the Applicant, at least for the three-year term (up to a seven-year term with options) of the currently proposed DA. This DA would provide certainty and direction for development to allow the completion of the last aspect of the District/Fields development.

Through the proposed Agreement, the landowner and City would preserve the minimum residential density previously allowed for the subject property under the TASP (31 dwelling units per acre), and thereby allow for the proposed development with additional construction and improvements only allowable through the benefit of this DA. In consideration, the landowner shall provide the following offsetting public benefits to the City:

1. Payment of Seven Hundred Thousand Dollars ($700,000) as a voluntary contribution to the City and community benefit to fund City services and infrastructure improvements at the discretion of the

Council, payable prior to issuance of the Project’s final certificate of occupancy, but no later than three years from the Effective Date; and

2. Conversion of 3 low- and 1 very low-income units within the adjacent Gideon development beyond the affordable units provided for AHO compliance, with a regulatory agreement to be recorded prior to issuance of the Project’s first vertical building permit (or within one year of the Effective Date, whichever is earlier) and the units rented to qualifying households within two years of the Effective Date.

These community benefits are meant to offset the community impacts of the DA, which staff anticipates will at least include additional transportation and other programming or infrastructure required by locating additional residential units further away from this location and the extensive infrastructure and public/private amenities next to it, including the Great Mall and the Milpitas Transit Center.

POLICY ALTERNATIVE(S):

Alternative 1: Deny the Ordinance
Pros: A different project with higher density could be proposed at this site in accordance with the MXD2-Metro zoning standards.

Cons: The existing vacant site will remain vacant 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, including accessory dwelling units and live/work units within the Metro area. The District neighborhood would remain incomplete and the vacant site would remain a blight to the surrounding area, potentially hindering the immediate surroundings from becoming a vibrant and pedestrian-friendly core within the Metro Plan area. Furthermore, the City would not receive the public benefits associated with the Development Agreement, including the additional affordable housing units beyond the AHO requirement and voluntary cash contribution of $700,000.

Reason for Not Recommending: This alternative is not recommended because it does not consider the current market, which has made the previously approved high-density, mixed-use project challenging to build.

Denial of the amendment could result in prolonged inactivity on a key site within the Metro area, limiting the City’s ability to facilitate infill development while providing at least 119 RHNA dwelling units.

PROJECT SCHEDULE/KEY MILESTONES
Ordinance Introduction (First Reading): 5/19/2026
Ordinance Adoption (Second Reading): 6/16/2026
Ordinance Effective Date: 7/16/2026 (30 days after adoption) Recordation of DA: within 10 days of the Effective Date per Ordinance Section 5 Estimated Submittal of Building Plan Check/ Construction Drawings: August 2026 Estimated Start of Construction: June 2027
Estimated Substantial Completion: June 2028
FISCAL IMPACT:

If the Ordinance is approved, the Applicant will apply for various building 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 as well as potential sales taxes from the nine live/work units. Additionally, the Development Agreement includes a one-time voluntary contribution of $700,000 to the City to fund City services and infrastructure improvements at the discretion of the Council.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):

In accordance with the California Environmental Quality Act (CEQA), the City has found the project to be exempt, per CEQA Guidelines Section 15182. On May 22, 2026, the City submitted a Notice of Exemption

(NOE) with the County Clerk.

ATTACHMENT(S):
(a) Ordinance No. 38.862
(b) Exhibit 1 to the Ordinance – Development Agreement

1 Ordinance No. 38.862

REGULAR
NUMBER: 38.862
TITLE: AN UNCODIFIED ORDINANCE OF THE CITY COUNCIL OF THE CITY OF

MILPITAS APPROVING A DEVELOPMENT AGREEMENT BETWEEN THE
CITY OF MILPITAS AND FIELDS CH OWNER, LLC AND MILPITAS – DISTRICT 2 ASSOCIATES, LLC
HISTORY: This Ordinance was introduced (first reading) by the City Council at its meeting of May 19, 2026 upon motion by_________________________ and was adopted (second reading) by the City Council at its meeting of _______________, upon motion by ____________________________. The Ordinance was duly passed and ordered published in accordance with law by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

ATTEST: APPROVED:
________________________________ __________________________ Suzanne Guzzetta, City Clerk Carmen Montano, Mayor
APPROVED AS TO FORM:
________________________________
Christian Curtis, City Attorney

2 Ordinance No. 38.862
RECITALS AND FINDINGS:

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, in July 2025, an application was submitted by Lyon Living (“Applicant”) to develop 109 multi-family townhomes and 10 Accessory Dwelling Units (“Project”) on a 5.49-acre vacant lot located at 1320 McCandless Drive, Milpitas, CA 95035 (APN: 086-33-112, -113, and -114); and WHEREAS, the City and the applicant wish to memorialize the rights to development in the document entitled “Development Agreement Between the City of Milpitas and Milpitas – District 2 Associates, LLC and Fields CH Owner, LLC” (hereinafter referred to as the “Development Agreement”), a draft of which is attached hereto as Exhibit 1; and
WHEREAS, the Planning Department completed an environmental impact assessment for the project in accordance with the California Environmental Quality Act (“CEQA”) and determined that the Project was exempt from further CEQA review pursuant to CEQA Guidelines Section 15182 (Residential Projects Pursuant to a Specific Plan); and
WHEREAS, on May 6, 2026, the Planning Commission held a duly noticed public hearing, during which the Planning Commission, by the adoption of Resolution No. 26-010, recommended that the City Council approve SA25-0002, TM26-0001, UA25-0003, DB26-0001, and DA26-0001 and approve the Project based on the findings and subject to the Conditions of Approval; and WHEREAS, on May 19, 2026, the City Council held a duly-noticed public hearing and considered the proposed Development Agreement for compliance with City of Milpitas Resolution No. 6642, the Milpitas Municipal Code (“MMC”), Title XIII, Chapter D.14, commencing with Section D.14.010, and Government Code Sections §§ 65864 et seq.

NOW, THEREFORE, the City Council of the City of Milpitas does ordain as follows:

SECTION 1. RECORD AND BASIS FOR ACTION
The City Council has duly considered the full record before it, which may include but is not limited to such things as the City staff report, testimony by staff and the public, and other materials and evidence submitted or provided to the City Council. Furthermore, the recitals set forth above are found to be true and correct and are incorporated herein by reference.

SECTION 2: CEQA FINDINGS
The City conducted an environmental assessment in accordance with the California Environmental Quality Act (CEQA) and determined that the proposed Project is exempt from CEQA in accordance with CEQA Guidelines Section 15182 (Residential Projects Pursuant to a Specific Plan) and is consistent with the Addendum to the Transit Area Specific Plan (TASP) Final Environmental Impact Report (FEIR).

CEQA Guidelines Section 15182 exempts further environmental review for a predominantly residential project that is generally in conformity with a specific plan, provided that an EIR was certified for the Specific Plan after January 1, 1980, the Project is a residential project (or predominantly residential in nature), that the Project is consistent with the Specific Plan, and that no events under CEQA Guidelines Section 15162 have occurred. The TASP EIR (SCH#2006032091) was certified by the Milpitas City Council on June 3, 2008, and was later updated by the Milpitas Metro Specific Plan Subsequent EIR, certified by the Milpitas City Council on February 7, 2023, both of which meet the time frame requirement.

3 Ordinance No. 38.862
The proposed Project consists of 109 townhome dwelling units, 10 ADUs, and nine live/work units, which is considered predominantly residential in nature, meets the residential component of CEQA Guidelines Section 15182. The proposed Project is located within the Metro Plan, and the proposed townhome project with live/work units contributes to the Metro Plan’s vision of creating a complete neighborhood within the McCandless District. The Project is found to be consistent with the goals, policies, and development standards of the Metro Plan which meets the Specific Plan component. Lastly, CEQA Guidelines Section 15162 refers to substantial changes proposed in the EIR area that would create significant or substantially more severe impacts. Since the proposed Project involves a decrease in units, decrease in building square footage, and decrease in building height, no instances of CEQA Guidelines Section 15162 could reasonably have been known. Therefore, this Project meets CEQA Guidelines Section 15182.

SECTION 3. DEVELOPMENT AGREEMENT FINDINGS (MMC SECTION XIII-D.14.050) The proposed Project is considered to be eligible for a Development Agreement per City Council Resolution No. 6642 Sections 2.3(a) and 2.3(c), regarding acreage and general welfare of the community.

Although the Project site is under 10 acres, it is part of a larger development (The District), which encompasses multiple lots totaling over 20 acres. Furthermore, the public health, safety and general welfare of the citizens of City will best be served by accepting an Application for consideration by the Planning Commission and City Council. The Development Agreement will facilitate the final step in a large development that has taken many years to complete and activate an otherwise vacant lot that has remained underutilized during that time. The Project will establish affordable housing close to public transportation and other infrastructure and amenities that will particularly benefit lower income households.

1. The Development Agreement is consistent with the goals, policies, general land uses, and programs specified in the General Plan;
The proposed Development Agreement (DA) would further the General Plan goals and policies by allowing for the proposed Project with additional construction and improvements only allowable through the benefit of this DA. The Project would provide a mix of townhomes, accessory dwelling units, and live-work units in proximity to the Milpitas Transit Center, which is consistent with the General Plan’s vision for the Metro Specific Plan area. Furthermore, as part of DA and as a public benefit, the Project would provide low- and very-low-income level units beyond what is required by the Affordable Housing Ordinance, which will help the City achieve its affordable housing goals in its Housing Element. Lastly, the DA also includes a voluntary $700,000 contribution to the City as a community benefit, which can be used to fund City services and public improvements identified in the General Plan.

2. The Development Agreement is consistent with any Specific Plan, if applicable; The proposed Project is located within the Milpitas Metro Specific Plan (Metro Plan, formerly TASP). The Metro Plan envisions the McCandless Subdistrict with high-density mixed-use development along larger streets and lower-density townhouse developments. The proposed DA would allow for the proposed Project, which includes a mix of housing types (townhomes, ADUs, and live-work units) that are aligned with the Metro Plan’s vision for this subdistrict. The livework units would also contribute to the pedestrian-oriented, vibrant atmosphere envisioned along Market Street. Lastly, the DA includes a public benefit of four low- and one very low-income units, which would provide lower-income affordable housing near public transit, which is another goal of the Metro Plan.

3. The Development Agreement and accompanying development maps, plans, and other supporting information are compatible with the uses authorized in, and the performance and development standards prescribed for, the zone in which the subject parcel or site is located;

4 Ordinance No. 38.862
The DA would allow for the Project site to be developed with multifamily residential development, which is permitted by-right in and consistent with the intent of the MXD2-Metro zoning district.

The purpose of the MXD2-Metro zoning district is to create and enhance areas with a mix of retail, restaurant, entertainment, and commercial service uses on the ground floor and residential or office uses on upper stories, while maintaining a pedestrian-oriented streetscape. Although the Project does not comply with the density and active commercial requirement of the MXD2-Metro zone, the DA would preserve the previously applicable minimum density in the TASP (31 du/ac), which the Project complies with once density averaging is applied throughout The Fields/District development. A waiver through the Density Bonus Permit would also reduce the commercial requirement for the Project, which is being met through the live-work units. Therefore, the proposed DA and accompanying development are compatible with the uses allowed in the applicable zoning district.

4. The Development Agreement is in conformity with and will promote public convenience, general welfare, and good land use and development practices;
The proposed DA promotes public convenience and general welfare by providing affordable housing (four low- and one very low-income units) within walking distance of the Milpitas BART station and VTA light rail. These deed-restricted affordable units will not only provide rental savings over 55 years to the Milpitas community but also provide housing options near public transit for disadvantaged persons who are often dependent on public transit. Furthermore, the DA would allow for the proposed Project, which includes ADUs and live-work units. ADUs provide yet another affordable option for prospective tenants and allows homeowners to collect rental income by renting out their ADUs to tenants. Meanwhile, live-work units provide much-needed housing for artists, artisans, and small business owners and entrepreneurs in a convenient location.

5. The Development Agreement shall be shown to be of greater benefit to the community than development absent the Development Agreement;
The proposed Development Agreement would provide a one-time voluntary $700,000 contribution and the conversion of 4 low-income and 1 very low-income apartment units within the adjacent Gideon development as a community benefit to offset the loss of market-rate units, which would result from preserving the lower minimum residential density previously allowed for the subject property under the TASP (31 du/ac) rather than applying the minimum density in the Metro Specific Plan (40 du/ac). While allowing a lower density Project through a DA would result in fewer units on the subject property, the Project would provide affordable units at a lower income level than would otherwise be provided, which provides a significant public benefit to the Milpitas community through rental savings for future tenants.

6. The term or duration of the Development Agreement has a commensurate relationship to the benefit(s) provided;
The proposed DA has an initial term of three (3) years. Commencement of construction within 3 years from the Effective Date would vest the DA. “Commencement” would include the property owner/ applicant having been issued a building, demolition, and/or grading permit. Two 2-year extensions may be granted by the City provided that the property owner/ applicant is not in default of its obligations under the DA. The term of the DA is commensurate to the benefit provided in that the term is sufficient to allow for construction of the Project and implementation of the proposed public benefit.

7. The Development Agreement contains the mandatory provisions specified in California Government Code Section 65865.2 and any other terms required by Council;

5 Ordinance No. 38.862
Government Code Section 65865.2 requires that a Development Agreement include the duration of the agreement, the permitted uses of the property, the density, the maximum height and size of proposed buildings, and provisions for reservation or dedication of land for public purposes. The proposed DA meets this requirement by including all of the aforementioned provisions.

8. The Development Agreement complies with all other applicable requirements of California Government Code Section 65864 et seq.

The Planning Commission held a duly noticed public hearing on May 6, 2026 and the City Council considered the Development Agreement and Project for approval at a public hearing on May 19, 2026.

SECTION 4: No Net Loss Findings (Gov. Code, §§ 65863 and 66300) The Project, as conditioned and approved, does not result in changing the general plan land use designation, specific plan land use designation, or zoning of a parcel or parcels of property to a less intensive use or reduce the intensity of land use within an existing general plan land use designation, specific plan land use designation, or zoning district below what was allowed under the land use designation or zoning ordinances of the City in effect as of January 1, 2018, and is therefore approved in conformity with California Government Code Section 66300.

In conformity with California Government Code Section 65863, any reduction caused by the approval of this Project in the number of units anticipated for construction in the Housing Element Sites Inventory contained in the Housing Element of the General Plan is found to be consistent with the General Plan, together with the Housing Element, including because the Project would continue to contribute meaningfully to the development of housing at levels greater than or equal to the applicable residential density for the property at the time of the General Plan’s adoption and moreover would allow and incentivize the development of a greater number of affordable units closer to transportation and other community resources than was otherwise anticipated in the Housing Element Sites Inventory. The Project’s residential density is consistent with the Housing Element, and the remaining sites identified in the Housing Element remain unchanged and are adequate to meet the requirements of Government Code Section 65583.2 and to accommodate the City’s share of the regional housing need pursuant to Section 65584. This finding demonstrates that the Project is not subject to Government Code Section 65583.2 and will still ensure that the City can accommodate the remaining share of the regional housing need pursuant to Section 65584.

SECTION 5. APPROVAL AND AUTHORIZATION
The City Council hereby approves and authorizes the City Manager or designee to execute the Development Agreement between the City of Milpitas and Fields CH Owner, LLC and Milpitas – District 2 Associates, LLC, attached hereto as Exhibit 1. Within ten (10) days of the effective date of this Ordinance, the City Clerk shall have the Development Agreement recorded with the Santa Clara County Recorder if it has not been so recorded by the applicant or otherwise prior to that date.

SECTION 6. SEVERABILITY
The provisions of this Ordinance are separable, and the invalidity of any phrase, clause, provision or part shall not affect the validity of the remainder.

SECTION 7. EFFECTIVE DATE AND POSTING

6 Ordinance No. 38.862
In accordance with Section 36937 of the Government Code of the State of California, this Ordinance shall take effect thirty (30) days from and after the date of its passage. The City Clerk of the City of Milpitas shall cause this Ordinance or a summary thereof to be published in accordance with Section 36933 of the Government Code of the State of California.

DEVELOPMENT AGREEMENT

RECORD WITHOUT FEE
PURSUANT TO GOVERNMENT CODE § 6103

RECORDING REQUESTED BY
AND
WHEN RECORDED MAIL TO:

City of Milpitas
City Clerk’s Office
455 Calaveras Boulevard
Milpitas, CA 95035
SPACE ABOVE THIS LINE FOR RECORDER’S USE ONLY

DEVELOPMENT AGREEMENT

BETWEEN CITY OF MILPITAS,
a California municipal corporation,
AND
MILPITAS - DISTRICT 2 ASSOCIATES, LLC,
a Delaware limited liability company; and

FIELDS CH OWNER, LLC,
a Delaware limited liability company

DEVELOPMENT AGREEMENT
Development Agreement/Table of Contents/ District Lot 3 (Elion) Page i of i Rev. 4-23-26

TABLE OF CONTENTS

1. Term.................................................................................................................................... 4

2. Development of the Property.............................................................................................. 5

3. Effect of Agreement............................................................................................................ 8

4. Development Fees, Exactions and Dedications. ............................................................... 10

5. Standard of Review of Permits......................................................................................... 13

6. Priority .............................................................................................................................. 14

7. Cooperation in Implementation ........................................................................................ 14

8. Periodic Review................................................................................................................ 15

9. Reimbursements................................................................................................................ 16

10. Insurance ........................................................................................................................... 16

11. Default and Remedies....................................................................................................... 16

12. Amendment or Termination.............................................................................................. 17

13. Mortgagee Protection: Certain Rights of Cure ................................................................. 18

14. Assignability ..................................................................................................................... 19

15. Controlling Law................................................................................................................ 20

16. General.............................................................................................................................. 21

17. Notices .............................................................................................................................. 22

18. Developer Independent Contractor................................................................................... 23

19. Project as a Private Undertaking....................................................................................... 23

20. Nondiscrimination............................................................................................................. 24

21. Force Majeure. .................................................................................................................. 24

22. Third Parties...................................................................................................................... 24

23. Amendments..................................................................................................................... 24

24. No Third-Party Beneficiary .............................................................................................. 24

25. Dispute Resolution............................................................................................................ 24

26. Consent ............................................................................................................................. 25

27. Covenant of Good Faith and Fair Dealing........................................................................ 25

28. Authority to Execute ......................................................................................................... 25

29. Counterparts...................................................................................................................... 25

EXHIBITS

1. Legal Description of Property

2. Selected Pages of Development Plan

3. Conditions of Approval

4. Mitigation Monitoring and Reporting Program

5. Insurance Requirements

DEVELOPMENT AGREEMENT
Development Agreement/ District Lot 3 (Elion) Page 1 of 26 Rev. 4-23-26

DEVELOPMENT AGREEMENT
This DEVELOPMENT AGREEMENT (“Agreement”) is entered into by and between CITY OF MILPITAS (“City”), a California municipal corporation, and MILPITAS - DISTRICT 2 ASSOCIATES, LLC, a Delaware limited liability company, as well as FIELDS CH OWNER, LLC, a Delaware limited liability company (collectively “Developer”), (collectively the “Parties” and individually and interchangeably “Party”) and is effective on the date set forth in Recital R.

RECITALS
Developer and City enter into this Agreement on the basis of the following facts, understandings and intentions, and the following recitals are a substantive part of this Agreement:

A. Sections 65864 through 65869.5 of the California Government Code authorize City to establish procedures to enter into binding development agreements with persons having legal or equitable interests in real property located within City for development of property.

B. The Milpitas Municipal Code (“MMC”), Title XIII, Chapter D.14, commencing with Section D.14.010 and following, as well as Milpitas City Council Resolution No. 6642 (“Resolution 6642”), establishes the authority and procedure for review and approval of proposed development agreements.

C. Developer is currently the legal owner of the property (“Property”) governed by this Agreement. The Property consists of three parcels (APNs 086-33-112, -113, and -114) totaling 5.49 acres, as further described in Exhibit “1”, attached hereto and incorporated by this reference.

D. In 2010, Integral Communities Inc. submitted a master-planned mixed-use development within a portion of the McCandless/Centre Pointe Sub-District, which included the Property and was known as The District. That project included multiple land areas for retail, commercial, and high-density residential development and included the Property.

E. Integral Communities Inc. subsequently sold The District project to Developer, who completed the development of a portion of The District, sometimes referred to as The Fields, and which comprises of four separate mixed-use areas located on multiple parcels totaling over 23.04 acres of developed property near the intersection of Great Mall Parkway and McCandless Drive, also referred to by the City as The District – Lot 1, Lot 2, Lot 3, and Lot 4, and by the Developer as Turing, Graham, Elion, and Gideon, respectively. The Property was part of that larger project and was designated therein as Lot 3 or Elion.

F. In November 2015, the City approved multiple entitlements for a major portion of The Fields, including Site Development Permit No. SD15-0006 and Conditional Use Permit No. UP15-0010, as part of a master-planned development comprised of six planning areas, each developed with a mix of multi-family residential and residential units, including:

DEVELOPMENT AGREEMENT
Development Agreement/ District Lot 3 (Elion) Page 2 of 26 District Lot 2: A 218-unit multi-family residential development with approximately 3,480 square feet of retail and commercial uses, mapped pursuant to Tentative Map No. TM11-0002 approved March 20, 2012;
District Lot 3: a 175-room hotel and associated uses as approved under SD15-0006 and UP15-0010; and
District Lot 4: A 173-unit multi-family residential development with approximately 13,941 square feet of retail, mapped pursuant to Tentative Map No. TM11-0002 approved on March 20, 2012.

G. In 2021, the Planning Commission approved Site Development Permit Amendment No.

SA20-0004 and an amendment to Conditional Use Permit No. UP15-0010. That amendment modified the previously approved development density, uses, and architecture, including decreasing the total number of residential dwelling units from 423 to 357, decreasing the total number of hotel rooms from 175 to 162, decreasing the amount of commercial space from 59,135 square feet to 25,179 square feet, decreasing the size of the rooftop amenity deck from 49,240 square feet to 18,225 square feet, and reducing the building’s height from 130 feet to 83 feet for the hotel and 90 feet for the mixed-use buildings.

H. Developer has presently submitted the following pending application(s) to City for development of the Property, which represent further proposed amendments to what was previously approved: Amendment to Site Development Permit No. SD15-0006, Vesting Tentative Map No. P-TM26-0001, Conditional Use Permit No. UP15-0010, and Density Bonus Permit No. P-DB25-0001. The application(s) request that Developer be allowed to develop the 5.49-acre Property with a multi-family housing development consisting of 109 multi-family townhomes and 10 Accessory Dwelling Units (collectively, the “Project”).

As part of this Project, it is contemplated that Developer will rent restrict 22 units in the completed apartment complex in the Gideon property for affordable housing, with 18 of those units being restricted to affordable housing costs for low income households and 4 of those units being restricted for very-low income households, as those affordable housing costs and income limits are defined and determined by Health & Safety Code Sections 50079.5 and 50105, the Milpitas Affordable Housing Ordinance (“AHO”) (MMC §§ XII1-1.00 et seq.), and Title 25, Chapter 6.5, Section 6932 of the California Code of Regulations.

I. The Project, including but not limited to the buildings, access and parking facilities, landscaping, and infrastructure improvements, are all more particularly shown on the Development Plan (“Development Plan”) consisting of four sheets of plans submitted by Urban Arena Architects dated 4/15/2026. Sheets SP1, L3, TM-01, and TM-02 of the Development Plan are described in Exhibit “2” attached hereto and incorporated by this reference.

J. Through this Agreement, the Parties intend for the duration of this Agreement to (i) preserve the minimum residential density permitted for the Property at the time of the original entitlement of The Fields under the Milpitas Transit Area Specific Plan

DEVELOPMENT AGREEMENT
Development Agreement/ District Lot 3 (Elion) Page 3 of 26 (“TASP”) in order to facilitate the Project, (ii) recognize the Developer’s commitment and right to otherwise develop the Property with the Project under currently applicable standards, including the presently applicable Milpitas Metro Specific Plan (“Metro Plan”), and (iii) afford Developer the incentives and concessions allowed under the State Density Bonus Law (Gov. Code, §§ 65915 et seq.) (“Density Bonus” or “DBL”).

K. City and Developer each acknowledge that development and construction of the Project, particularly in the context of the larger development of which it has historically been a part, is a large-scale undertaking involving major investments by Developer and City, and assurances that the Project can be developed and used in accordance with the terms and conditions set forth herein and the existing rules governing development of the Property will benefit both Developer and City.

L. City is willing to enter into this Agreement for public benefit, including but not limited to: (i) strengthening the public planning process, (ii) encouraging private participation in comprehensive planning by providing a greater degree of certainty, (iii) reducing the economic costs of development, (iv) allowing for orderly planning of public improvements and services and the allocation of costs in order to achieve the maximum utilization of public and private resources in the development process, (v) ensuring that appropriate measures to enhance and protect the environment are achieved, and (vi) ensuring that all conditions of approval, including the construction of off-site improvement made necessary by land development, will proceed in an orderly and economical fashion to the benefit of City.

M. Developer acknowledges and recognizes that material inducements for City to enter into this Agreement are: (i) an opportunity to create the Project on an otherwise presently vacant lot; (ii) the prompt occupancy of the Property by residential tenants within the City and the consequential housing provided thereby; (iii) the rental restriction of affordable units in the Gideon property and the occupancy thereby of qualifying low and very low income households ; and (iv) the contributions provided by Developer as recognized and established by this Agreement, including $700,000 of contributions that could be used for transportation improvements and/or other community benefits by the City.

N. Developer proposes to enter into this Agreement in order (i) to obtain assurances from City that the Property may be developed, constructed, completed and used pursuant to this Agreement, and in accordance with existing policies, rules and regulations of City, subject to the exceptions and limitations expressed herein and the term of this Agreement; and (ii) to provide for a coordinated and systematic approach to funding the cost of certain public improvements and facilities planned by City, and to establish the timing and extent of contributions required from Developer for these purposes.

O. Developer requested that City enter into a Development Agreement (“Development Agreement”), and proceedings have been taken in accordance with state law, as set forth below.

P. On May 6, 2026, the Milpitas Planning Commission (“Planning Commission”) held a duly noticed public hearing on the Development Agreement and based on the findings contained

DEVELOPMENT AGREEMENT
Development Agreement/ District Lot 3 (Elion) Page 4 of 26 within Planning Commission Resolution No. 26-010 (i) determined that consideration of this Agreement complies in all respects with California Environmental Quality Act (“CEQA”); (ii) determined that this Agreement is consistent with City’s General Plan; and (iii) recommended approval of this Agreement to the Milpitas City Council.

Q. On May 19, 2026, the Milpitas City Council (“City Council”) held a duly noticed public hearing on the Development Agreement and (i) determined that consideration of this Agreement based on CEQA Guidelines Section 15182 (Cal. Code Regs., tit. 14, § 15182) complies in all respects with CEQA; (ii) determined that this Agreement is consistent with City’s General Plan; and (iii) introduced Ordinance No. 38.862, approving this Agreement.

R. On May 19, 2026, the City Council adopted Ordinance No. 38.862, enacting this Agreement, and the Ordinance became effective thirty (30) days later on __________ (“Effective Date”).

S. Certain improvements as set forth in the conditions of approval (“Conditions of Approval”), which are outlined in Exhibit “3”, attached hereto and incorporated herein by this reference, are necessary to provide infrastructure support for the Project.

T. Developer plans to develop the Project in one phase, which is outlined in more detail in the Development Plan and Conditions of Approval. Any modification to the content and/or sequencing of development phases must comply with Section 12.1 of this Agreement.

U. On __________, the City Council adopted Resolution No. __________, and together with the findings in Ordinance No. __________ found, among other things, that this Agreement and the Approvals are consistent with the General Plan, any applicable Specific Plan, and the MMC, including the Milpitas Zoning Code. Such findings are incorporated herein by this reference.

AGREEMENT
NOW, THEREFORE, pursuant to the authority contained in California Government Code Section 65864 and following, MMC Section XIII-D.14.010 and following, and Resolution 6642, and in consideration of the mutual representations, covenants and promises of the Parties, the Parties hereto agree as follows:

1. TERM

1.1 Effective Date. The term (“Term”) of this Agreement shall commence on the later of: (a) the Effective Date as set forth in Recital R above, or (b) the effective date of Ordinance No. __________ approving this Agreement. The Term of this Agreement shall be tolled from the commencement of any legal challenge or the filing of any referenda challenging the Approvals until the time such legal challenge or referenda is finally resolved in favor of the Approvals. Final resolution in the case of legal challenge shall be the date final judgment is entered, with the time for any appeal expired, and in the case of referenda shall be the date the vote is certified. The Term of this Agreement shall continue for an initial

DEVELOPMENT AGREEMENT
Development Agreement/ District Lot 3 (Elion) Page 5 of 26 period of three (3) years from the Effective Date, unless sooner terminated or extended as hereinafter provided.

1.2 Option to Extend. Provided that Owner is not in default of its obligations under this Agreement, Owner shall have the option to extend this Agreement twice, with each extension being for a period of two (2) years, for a total possible seven (7) year Term of this Agreement. To exercise these two options, Owner shall provide notice to the City of its exercise of each option at least ninety (90) calendar days prior to the otherwise applicable expiration of this Agreement.

1.3 Expiration. Following expiration of the Term or any extension, or if sooner terminated, this Agreement shall have no force and effect, subject, however, to post-termination obligations of Developer and City.

2. DEVELOPMENT OF THE PROPERTY

2.1 Property. The Property that is the subject of this Agreement is that certain real property described in Exhibit “1”, attached hereto.

2.2 Binding Covenants. It is intended and agreed that the provisions of this Agreement shall constitute covenants that shall run with the Property for the Term of this Agreement, as such Term may be extended, and the benefits and burdens hereof shall bind and inure to all successors in interest to the Parties hereto.

2.3 Life of Approvals. Pursuant to Government Code Section 66452.6(a) and this Agreement, the life of the Project approvals, including but not limited to Amendment to Site Development Permit No. SD15-0006, Vesting Tentative Map No. P-TM26-0001, Conditional Use Permit No. UP15-0010, and Density Bonus Permit No. P-DB25-0001 (collectively, “Approvals”) shall automatically be extended to and until the later of the following: (1) the end of the Term of this Agreement, as such Term may be extended; or (2) the end of the term or life of the Approvals. Notwithstanding the foregoing, the vested elements secured by Developer under this Agreement shall have a life no greater than the Term of this Agreement, and any extension thereof.

2.4 Vested Elements. For the purposes of this Project only, the Approvals, the Project, and the permitted uses of the Property, the maximum density and intensity of use, the maximum heights, locations, numbers and gross square footage of the proposed buildings, the provisions for vehicular access and parking, reservation or dedication of land for public purposes or fees in-lieu thereof, provision for construction of public improvements and/or required fees associated with the Project as provided in, and limited by, this Agreement, shall be vested and are hereby vested and referred to as vested elements (collectively, the “Vested Elements”). In addition to the foregoing Vested Elements, other terms and conditions of development applicable to the Project are set forth in the following documents as they exist as of the Effective Date to the extent not in conflict with this Agreement:
a. The General Plan of City of Milpitas, current as of the Effective Date, the terms and conditions of which are incorporated herein by this reference;

DEVELOPMENT AGREEMENT
Development Agreement/ District Lot 3 (Elion) Page 6 of 26 b. The Metro Specific Plan, current as of the Effective Date; c. MMC, current as of the Effective Date;
d. The Metro High Density Mixed Use Zone (MXD2-Metro) Zoning District and the Residential Retail High Density Mixed Use (RRMU) General Plan Land Use Designation and the Conditions of Approval imposed thereon; e. The Development Plan, defined in Recital I, herein;
f. The AHO, current as of the Effective Date;
g. All other applicable City plans, policies, programs, regulations, ordinances and resolutions of City in effect as of the Effective Date, which regulate development of the Property and implementation of the Project, and which are not inconsistent with the terms of this Agreement (“Other Regulations”); h. Any permits and/or subsequent approvals, including but not limited to additional subdivision maps or lot line adjustments, if any, final maps, site and architectural review, demolition permits, building permits, grading permits, and infrastructure improvement plans processed in accordance with the terms of this Agreement.

Upon approval, such subsequent approvals shall be incorporated into this Agreement and vested hereby; and,
i. In the event this Project includes a subdivision as defined by Government Code § 66473.7, the tentative map for this Project will comply with the provisions of § 66473.7, as it may be amended from time-to-time.

2.5 Minimum Density. The Project may be developed at the minimum residential density allowed for development of the Property at the time of the original entitlement of The Fields under the TASP.

2.6 Density Bonus. The State DBL permits local jurisdiction to provide incentives or concessions allowed under that law even where a development may otherwise not be entitled to such incentives or concessions, and to further reduce the cost of developing the affordable housing contemplated in the Project, the City is willing to grant two (2) incentives or concessions for the Project.

2.7 Permitted Uses. The permitted uses for the Project are as established by applicable law as of the Effective Date.

2.8 Design of On-Site and Off-Site Improvements. Development of the Property shall be subject to final architectural and design review by City pursuant to the policies, regulations and ordinances in effect as of the Effective Date, and subject to the Development Plan and the Conditions of Approval. The Approvals, Development Plan, and Conditions of Approval, and all improvement plans prepared in accordance with same, shall govern the design and scope of all on-site and off-site improvements benefiting or to be constructed on the Property, including all street widths and dedications.

DEVELOPMENT AGREEMENT
Development Agreement/ District Lot 3 (Elion) Page 7 of 26

2.9 Developer’s Obligation to Develop the Site. In consideration for City entering into this Agreement, Developer agrees to perform all of its obligations contained in this Agreement, including, but not limited to planning and designing the Project on the site within the times, and in substantially the same size and density, as proposed and approved.

2.10 Present Right to Develop. Subject to Developer’s fulfillment of the provisions of this Agreement, the Development Plan and the Conditions of Approval, City hereby grants to Developer the present vested right to develop and construct on the Property all the improvements authorized by, and in accordance with, the Approvals, this Agreement and the Vested Elements, including in particular the terms of the Development Plan. To the extent permitted by law, no future modification (including by later-adopted initiative and/or referendum) of City’s General Plan, MMC, ordinances, policies or regulations that purport to (i) limit the rate or timing of development, size of buildings or other improvements (including developable square footage), or amount of development of the portions of the Project to be built; or (ii) impose fees, exactions or conditions upon development, occupancy or use of the Property other than as provided in the Development Plan or Conditions of Approval or pursuant to this Agreement, shall apply to the Project during the Term of this Agreement; provided, however, that nothing in this Agreement shall prevent or preclude City from adopting and applying any fees or land use regulations or amendments thereto, expressly permitted herein, or prevent or preclude Developer, at its election, from waiving such protections in writing and accepting the application of all such later-adopted laws, policies, and regulations effective as of the date of such waiver.

2.11 Timing of Improvements. If Developer implements the Development Plan in phases, as described herein or as outlined in the Development Plan, the phasing set forth in the Development Plan is the approved phasing as of the Effective Date. It is the Parties’ specific intent that this Agreement shall prevail over any later-adopted initiative or moratorium that might otherwise have the effect of restricting or limiting the timing of development of the Project and that Developer shall have the right to develop the Project at such time as Developer has specified in the Development Plan and no annual (or other) limit, moratoria, or other limitation upon the number of, or phasing or pacing of, buildings which may be constructed, or building permits which may be obtained, shall apply to the Project.

2.12 Agreement and Comprehensive Development Plan. The Parties acknowledge that, except as specifically set forth herein, this Agreement, the Development Plan, the Mitigation Monitoring and Reporting Program (described in Exhibit “4”, attached hereto) and the Conditions of Approval set forth a comprehensive schedule of all development terms and conditions, development mitigation measures and fees, special assessments, special taxes, exactions, fees in-lieu, charges and dedications required in the public interest to be contributed, paid or constructed due to development of the Property as defined in the Development Plan. All fees referred to herein may be subject to an annual increase until paid, but only if such increase is applied equally to similarly situated projects on a citywide or area-wide basis.

2.13 Design of On-Site and Off-Site Improvements. Development of the Property shall be subject to final architectural and design review by City pursuant to the policies, regulations

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Development Agreement/ District Lot 3 (Elion) Page 8 of 26 and ordinances in effect as of the Effective Date, and subject to the Development Plan, the Conditions of Approval, Mitigation Monitoring and Reporting Program, and this Agreement. No such architectural and design review shall, without Developer’s consent, require development of the Property inconsistent with the Approvals, the Development Plan, the Conditions of Approval, the Mitigation Monitoring and Reporting Program, and this Agreement, unless City determines it is necessary to protect against conditions which create a risk to the physical health or safety of residents or users of the Project or the affected surrounding region. The Approvals, the Development Plan, Mitigation Monitoring and Reporting Program, and Conditions of Approval, and all improvement plans prepared in accordance thereof, shall govern the design and scope of all on-site and off-site improvements benefiting or to be constructed on the Property.

2.14 Development of the Site. In consideration for City entering into this Agreement, Developer agrees to perform all of its obligations contained in this Agreement in the time and manner set forth in this Agreement and the Development Plan, any Mitigation Monitoring and Reporting Program, and Conditions of Approval.

2.15 Single Integrated Development. City and Developer acknowledge that the Project is, and shall be considered, a single, integrated development project, and that each component of the Project is dependent upon the completion and occupancy of all other components. The viability of each component of the Project is and shall be dependent upon completion and occupancy of all other components and the full performance of this Development Agreement. It is the intention of the Parties that, if construction on one component of the Project is commenced, any additional development of the Property will adhere to the Development Plan.

2.16 Building Standards. Developer hereby agrees to employ all reasonable efforts such that the Project will be built to the then applicable building standards for each phase of development.

3. EFFECT OF AGREEMENT

3.1 Subsequent State or Federal Laws or Regulations. As provided in California Government Code § 65869.5, this Agreement shall not preclude the application to the Project of changes in laws, regulations, plans or policies, to the extent that such changes are required by changes in county, regional, state or federal laws or regulations (“Changes in the Law”).

In the event Changes in the Law prevent or preclude compliance with one or more material provisions of this Agreement, Developer may request that such material provisions be modified or suspended, or performance delayed, as may be necessary to comply with Changes in the Law, and City may take such action as it deems necessary to be consistent with the intent of this Agreement.

3.2 Changes to Existing Regulations. Except as otherwise specifically provided, only the following changes to the Vested Elements, including such changes adopted by the electorate through the powers of initiative, or otherwise, shall apply to the development of the Property for the duration of this Agreement:

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Development Agreement/ District Lot 3 (Elion) Page 9 of 26 a. Citywide regulations, ordinances, policies, programs, resolutions or fees adopted after the Effective Date that are not in conflict with the Vested Elements and the terms and conditions for development of the Property established by this Agreement, or otherwise applicable regulations existing as of the Effective Date.

Changes to the General Plan, MMC or Other Regulations shall be deemed to conflict with the approvals and this Agreement (“Conflicting City Law”) if such changes prevent development of the Project on the Property in substantial accordance with the Approvals; require significant changes in the development of the Project from what is contemplated by the Approvals; significantly delay, ration or impose a moratorium on development of the Project; or require the issuance of discretionary or nondiscretionary permits or approvals by City other than those required as of the Effective Date.
b. Any law, regulation or policy that would otherwise be Conflicting City Law, but through this Agreement or by later separate document, application to the Property has been consented to in writing by the Developer.

3.3 Further Reviews. Developer acknowledges that existing land use regulations, the Vested Elements and this Agreement contemplate the possibility of further reviews of elements or portions of the Project by City including potential CEQA analysis, if required. Nothing in this Agreement shall be deemed to limit the legal authority of City with respect to these reviews as provided by and otherwise consistent with, this Agreement. In no event shall such further review by City revisit the Development Plan, Conditions of Approval, or the Approvals or be conditioned on or require any change in the Project except as may be contemplated by the Development Plan, Conditions of Approval or this Agreement.

3.4 Local Rules. Future development on the Property shall be subject to all the official rules, regulations and policies (collectively “Local Rules”) of City which govern uses, architectural design, landscaping, public improvements and construction standards, and which are contained in the Development Plan or are in effect as of the Effective Date, with the exception that revisions or amendments to the Local Rules necessitated by reasonable public health or fire and life-safety considerations shall apply as though the rules were in effect as of the Effective Date. Notwithstanding any other provision of this Agreement, and without limitation as to any other exceptions contained in this Agreement, City shall retain the authority to take the following actions, so long as such action is applied on a citywide basis to similarly situated projects:
a. Adopt and apply property transfer taxes and/or excise taxes; b. Adopt updates to building and/or fire codes;
c. Maintain the right of voters to act by initiative or referendum, but only to the extent that the initiative or referendum does not affect or interfere with any vested rights acquired by the Developer in this Agreement; except that this Agreement itself is subject to referendum; and,

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Development Agreement/ District Lot 3 (Elion) Page 10 of 26 d. Take other actions not expressly prohibited by the terms or provisions of this Agreement.

3.5 Future Exercise of Discretion by City. This Agreement shall not be construed to limit the authority or obligation of City to hold necessary public hearings, or, except as provided herein, to limit discretion of City or any of its officers or officials with regard to rules, regulations, ordinances or laws which require the exercise of discretion by City or any of its officers or officials. Except as provided, this Agreement shall not prevent City from applying new rules, regulations and policies, or from conditioning future Project development approval applications on new rules, regulations and policies that do not conflict with the terms of the Approvals, Project, Development Plan, or this Agreement.

4. DEVELOPMENT FEES, EXACTIONS AND DEDICATIONS.

4.1 Development Fees, Exactions and Dedications. The fees, special assessments, special taxes, exactions and dedications (collectively “Fees”) payable to City due to the development, build out, occupancy and use of the Property pursuant to this Agreement shall be exclusively those in effect as of the Effective Date, including as set forth in the Conditions of Approval and the Development Plan and as specified in this Agreement.

City may apply new or increased fees if the fees apply citywide or area-wide and are of the type of cost recovery fees typically imposed by cities.

4.2 Processing Fees. Developer shall be responsible for the costs to City of processing any Developer requested land use approvals, including without limitation, building permits, plan checks, environmental studies required under CEQA and other similar requests for City permits and entitlements, when such costs are incurred by City (“Processing Fees”).

Processing Fees may be increased if the increase is applicable citywide and reflects the reasonable cost to City of performing the administrative processing or other service for which the particular Processing Fee is charged. City shall impose those funding requirements needed to ensure that the processing costs to City are fully covered by the Project (including Developer as owner of same). Further, if additional, accelerated, or more frequent inspections are requested by Developer of City than would otherwise take place in City’s ordinary course of business, then City may either hire additional contract inspectors, plan checkers, engineers or planners or City may hire a full or part-time employee(s). If City hires additional contractors or consultants, then Developer shall reimburse City the cost of hiring additional contractors or consultants, plus 10 percent (10%). If City hires a full or part-time employee(s), then Developer shall reimburse City for a pro rata share of the total cost of the employee(s).

4.3 New Processing Fees. New processing fees may be imposed by City if such new fees apply to all similarly situated projects or works within City and if the application of these Processing Fees to the Property is prospective only. Processing Fees shall be due and payable on a phase-by-phase basis, so that only those fees applicable to the actual construction of each phase shall be paid upon the issuance of the appropriate permits for that phase. Developer shall pay the costs associated with the planning, processing and environmental review process for the Project, provided that such costs shall be limited to (i) reasonable costs directly associated with the planning, processing and environmental

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Development Agreement/ District Lot 3 (Elion) Page 11 of 26 review process; (ii) fees ordinarily charged by City for processing land use applications and permits, provided that such fees and costs are applied to Developer in the same manner as other similarly situated applicants seeking similar land use approvals and are not limited in applicability to the Project or to related uses; and (iii) fees associated with third-party permit plan checking, if applicable, above those normally charged by City. Developer shall reimburse City for reasonable staff overtime expenses incurred by City in processing review, approval, inspection and completion of the Project provided that such overtime expenses are reasonably necessary for the completion of the Project in accordance with Developer’s schedule.

4.4 Development Agreement Fee. Developer agrees to pay the City the sum of seven hundred thousand dollars ($700,000) prior to the City’s issuance of the Project’s final certificate of occupancy (“Development Agreement Fee”) but in no event later than the date that is three (3) years from the Effective Date. If this Agreement is tolled pursuant to Section 1.1, this period for payment shall also be tolled.

4.5 Monetary Exaction. Developer and City acknowledge that it is difficult to calculate the exact impact of the Project upon City infrastructure and City services. Developer acknowledges that the Project will have a direct impact by creating a greater demand upon City, including for residential and other development that may have to be located elsewhere in the City and further away from transportation and other infrastructure previously planned for and developed by the City in the vicinity of the Project. Property taxes or any other impact fee paid by the Project does not offset this increased demand. Consequently, Developer agrees to pay and provide the Development Agreement Fee, community benefits, and other sums and fees contemplated by this Agreement, and City shall accept such payments to the extent not otherwise required by applicable law as payment in full for impacts to City services caused by this Agreement. Unless otherwise indicated herein, such fees, sums, and benefits shall be paid and provided no later than the date of issuance of the Final Certificate of Occupancy for the Project.

4.6 Dedications. Developer shall offer to dedicate to City, upon request by City, all portions of the Property designated in the Conditions of Approval for public easements, streets or public areas and/or other improvements.

4.7 Contribution to Costs of Facilities and Services. Developer agrees to contribute to the costs of public facilities and services as required herein to mitigate impacts of the development of the Property, and City agrees to assure that Developer may proceed and complete development of the Property in accordance with the terms of this Agreement. City and Developer recognize and agree that but for Developer’s contributions to mitigate the impacts arising as a result of development entitlement granted pursuant to this Agreement, City would not and could not approve the development of the Property as provided by this Agreement. City’s approval of development of the Property is in reliance upon and in consideration of Developer’s agreement to make contributions toward the cost of public improvements and public services as provided to mitigate the impacts of development of the Property.

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Development Agreement/ District Lot 3 (Elion) Page 12 of 26

4.8 Sewer Facilities, Storm Drains and Runoff. This Agreement does not affect the Developer’s obligations to pay for or construct improvements in the storm drain system required to implement the Project, nor does it affect the Developer’s obligations to meet any applicable federal, state and local discharge limits and requirements pertaining to sewer facilities, storm drains or runoff.

4.9 Limited Effect on Right to Tax, Assess, or Levy Fees or Charges. Except as expressly provided herein, this Agreement does not limit the power and right of City to impose the same taxes, levy the same assessments, or require the payment of the same permit fees and charges by the Developer as City requires for all other residential development or property on a citywide basis. The Developer shall be required to pay all development impact fees in effect on the Effective Date.

4.10 No Limit on Right of City to Adopt and Modify Uniform Codes. This Agreement does not limit the right of City, to the extent permitted by state law, to adopt Building, Plumbing, Electrical, Fire and similar uniform construction codes, and to adopt local modifications of those codes, from time to time.

4.11 California Environmental Quality Act Compliance (“CEQA”). City determined that the Project is exempt from further environmental review pursuant to CEQA under CEQA Guidelines Section 15182 (Cal. Code Regs., tit. 14, § 15182). This Agreement does not limit City’s duty to comply with the provisions of CEQA and the associated Guidelines, as they may be amended from time to time, that comply with the provisions of § 21082 of CEQA. However, City shall not undertake additional environmental review under CEQA unless required to do so by CEQA. In the event that any such further environmental review is required for a subsequent approval or other discretionary action, it shall be in accordance with §§ 15162-15164 of the CEQA Guidelines, and the scope of analysis and evaluation shall be as required by CEQA.

4.12 No General Limitation on Future Exercise of Police Power. City retains its right to exercise its general police power except when such exercise would conflict with this Agreement.

The police powers so retained and enforceable under this Agreement shall include, but are not limited to, the enactment of regulations that apply generally to City concerning the disposition of construction and demolition materials. The police powers so retained and enforceable under this Agreement shall also include, but are not limited to, the modification or suspension the provision of this Agreement if the City determines that the failure of the City to do so would place residents in a condition dangerous to their health or safety, or both.

4.13 Mitigations. Developer agrees to contribute to the costs of public facilities and services in the amounts set forth in this Agreement, the Development Plan, Mitigation Monitoring and Reporting Program and Conditions of Approval, as required to mitigate impacts of the development of the Property (“Mitigations”). City and Developer recognize and agree that but for Developer’s contributions to mitigate the impacts arising as a result of the entitlements granted pursuant to this Agreement, City would not and could not approve the development of the Property as provided by this Agreement. City’s approval of development of the Property is in reliance upon, and in consideration of, Developer’s

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Development Agreement/ District Lot 3 (Elion) Page 13 of 26 agreement to make contributions toward the cost of public improvements and public services as provided to mitigate the impacts of development of the Property.

4.14 Affordable Housing Development. As a community benefit and Mitigation to establish more affordable housing closer to greater public transportation resources, and as a material inducement to the City’s willingness to enter into this Agreement, Developer agrees to develop more affordable units than it would otherwise be required to develop, including more affordable units than it would otherwise be required to develop under the AHO.

Developer agrees to impose rent restrictions for a period of not less than 55 years upon 22 units in the Gideon property such that 18 of those units are restricted to low-income households and 4 of those units are restricted to very low-income households in conformity with the AHO. In a form acceptable to the City Attorney, Developer shall record a regulatory agreement against the Gideon property that runs with the land and binds the owners and successors to that property to restrict the rents for those units consistent with the AHO and this Agreement. This regulatory agreement must be recorded by the earlier of (a) the issuance of the Project’s first vertical building permit; or (b) the date that is one (1) year from the Effective Date. That regulatory agreement shall require the owner of the affordable units to ensure that the units are occupied by tenants whose monthly income levels do not exceed very low- or low-income levels, as the case may be, and shall preclude tenants from subletting or subleasing the unit. The regulatory agreement shall also require the owner of the affordable unitsto submit an annual report to the City Manager, in a format approved by the City. The report shall include, but not be limited to the following information: an identification of the affordable units within the project; the monthly rents charged and proposed to be charged; vacancy information for the prior year; and the monthly income for tenants of each affordable unit throughout the prior year. Prior to lease or release of the affordable units, the regulatory agreement shall require the owner of the affordable units to provide a marketing plan, to be approved by the City, and income certifications, to be approved by the City, and in all other material respects comply with the AHO and the program requirements of the City below market rate housing program.

That regulatory agreement shall also require that the affordable units be rented to qualifying and approved low- and very low-income households no later than two (2) years from the Effective Date. If this Agreement is tolled pursuant to Section 1.1, then the periods to record the regulatory agreement and rent the affordable units to qualifying households shall also be tolled.

4.15 Transportation and Other Improvements. Developer shall pay the Development Agreement Fee in the sum of Seven Hundred Thousand Dollars ($700,000.00) to City for transportation and other improvements or programs deemed necessary by the City, including as Mitigation for public services that may need to be further developed elsewhere in the City as a result of the Project and the standards and conditions of development allowed by this Agreement, to be paid as specified in Section 4.4.

5. STANDARD OF REVIEW OF PERMITS

5.1 Standard of Review of Permits. All permits (“Permits”) required by Developer to develop the Property, excepting the rezoning, but including (i) road construction permits, (ii) grading permits, (iii) building permits, (iv) fire permits, and (v) certificates of

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Development Agreement/ District Lot 3 (Elion) Page 14 of 26 occupancy, shall be issued by City after City’s review and approval of Developer’s applications, provided that City’s review of the applications is limited to determining whether the following conditions are met:
a. The application is complete; and,
b. The application demonstrates that Developer has complied with this Agreement, the Development Plan, the Mitigation Monitoring and Reporting Program, the Conditions of Approval and the applicable Local Rules.

5.2 Construction Codes. Developer shall be subject to the California Building Code and all other state-adopted construction, fire and other codes and the applicable version or revision of the codes by local City Action (collectively referred to as “Construction Codes”) in place at the time that a plan check application for a building, grading or other permit subject to Construction Codes is submitted to City for approval, provided that the Construction Codes have been adopted by City and are in effect on a citywide basis.

6. PRIORITY

6.1 Priority. In the event of conflict between the General Plan, the Metro Specific Plan, this Agreement, MMC, Other Regulations and Local Rules, all as they exist on the Effective Date, the Parties agree that the following sequence establishes the relative priority of each item: (1) the General Plan, as existing on the Effective Date; (2) any applicable Specific Plan, as existing on the Effective Date; (3) this Agreement; (4) the Development Plan; (5) Mitigation Monitoring and Reporting Program; (6) the Approvals; and (7) MMC, Other Regulations and Local Rules.

7. COOPERATION IN IMPLEMENTATION

7.1 Cooperation in Implementation. Upon Developer’s satisfactory completion of all required preliminary actions provided in the Development Plan, and payment of required fees, if any, City shall proceed in a reasonable and expeditious manner, in compliance with the deadlines mandated by applicable agreements, statutes or ordinances, to complete all steps necessary for implementation of this Agreement and development of the Property in accordance with the Development Plan, including the following actions:
a. Scheduling all required public hearings by the Planning Commission and City Council; and,
b. Processing and checking all maps, plans, land use and architectural review permits, permits, building plans and specifications and other plans relating to development of the Property filed by Developer as necessary for complete development of the Property. Developer, in a timely manner, shall provide City with all documents, applications, plans and other information necessary for City to carry out its obligations hereunder and to cause City’s planners, engineers and all other consultants to submit in a timely manner all necessary materials and documents. It is the Parties’ express intent to cooperate with one another and diligently work to implement all land use and building approvals for development

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Development Agreement/ District Lot 3 (Elion) Page 15 of 26 of the Property in accordance with the Development Plan and the terms hereof.

At Developer’s request and sole expense, City shall retain outside building consultants to review plans or otherwise assist City’s efforts in order to expedite City processing and approval work. City shall cooperate with Developer, and assist Developer in obtaining any third-party governmental or private party permits, approvals, consents, rights of entry, or encroachment permits, needed for development of the Project or any other on or offsite improvements.

8. PERIODIC REVIEW

8.1 Annual Review. City and Developer shall review all actions taken pursuant to the terms of this Agreement annually during each year of the Term, within thirty (30) days prior to each anniversary of the Effective Date.

8.2 Developer’s Submittal. At least sixty (60) days before each anniversary of the Effective Date, Developer shall submit a compliance letter (“Compliance Letter”) to the Director of the Planning Department (“Director”), along with a copy directed to the City Attorney, describing Developer’s compliance with the terms of the Conditions of Approval and this Agreement during the preceding year. The Compliance Letter shall include a statement that the Compliance Letter is submitted to City pursuant to the requirements of Government Code § 65865.1, this Agreement, and MMC.

8.3 City’s Findings. Within thirty (30) days after receipt of the Compliance Letter, the Director shall determine whether, for the year under review, Developer has demonstrated good faith substantial compliance with the terms of this Agreement. If the Director finds and determines that Developer has complied substantially with the terms of this Agreement, or does not determine otherwise within thirty (30) days after delivery of the Compliance Letter, the annual review shall be deemed concluded, Developer shall be deemed to have complied in good faith with the terms and conditions of this Agreement during the year under review, and this Agreement shall remain in full force and effect. Upon a determination of compliance, the Director shall, if requested by Developer, issue a recordable certificate confirming Developer’s compliance through the year under review.

Developer may record the certificate with the Santa Clara County Recorder’s Office. If the Director initially determines the Compliance Letter to be inadequate in any respect, he/she shall provide notice to that effect to Developer. If, after a duly noticed public hearing thereon, the Council finds and determines based on substantial evidence that Developer has not complied substantially in good faith with the terms of this Agreement for the year under review, the Director shall give written notice thereof to Developer specifying the noncompliance and such notice shall serve as a notice of default under Section 9.1. If Developer fails to cure the noncompliance within a reasonable period of time as established by the Director, the Council, in its discretion, may (i) grant additional time for compliance by Developer, or (ii) following the hearing described in Resolution 6642, modify this Agreement to the extent necessary to remedy or mitigate the noncompliance, or (iii) terminate this Agreement. Except as affected by the terms hereof, the terms of Resolution 6642, shall govern City’s compliance review process. During any review, Developer shall bear the burden of proof to demonstrate good faith compliance with the terms of this Agreement. If the Council does not hold a hearing and make its determination

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Development Agreement/ District Lot 3 (Elion) Page 16 of 26 within one hundred and twenty (120) days after delivery of the Compliance Letter for a given year, then it shall be deemed conclusive that Developer has complied in good faith with the terms and conditions of this Agreement during the period under review.

9. REIMBURSEMENTS

9.1 Reimbursements. The Parties agree that Developer shall not be entitled to any reimbursement for the construction of any private or public improvement required by this Agreement, unless explicitly provided by this Agreement or the Conditions of Approval.

10. INSURANCE

10.1 Insurance. During the term of this Agreement, Developer shall maintain in full force and effect the following insurance policies:
a. a commercial general liability policy (“CGL”) (bodily injury and property damage);
b. a worker’s compensation/employer’s liability policy; and c. a comprehensive automobile liability insurance policy.

These policies shall be maintained with coverage amounts, required endorsements, certificates of insurance and coverage verifications included, as defined in Exhibit “5”, attached hereto and incorporated by this reference.

11. DEFAULT AND REMEDIES

11.1 Default. Failure by either Party to perform any material term or provision of this Agreement shall constitute a default, provided that the Party alleging the default gave the other Party advance written notice of the default and thirty (30) days to cure the condition, or, if the nature of the default is such that it cannot be cured within thirty (30) days, the Party receiving notice shall not be in default if the Party commences performance of its obligations within the thirty (30) day period and diligently completes that performance.

Written notice shall specify in detail the nature of the obligation to be performed by the Party receiving notice.

11.2 Remedies. It is acknowledged by the Parties that City and Developer would not have entered into this Agreement if City were to be liable in damages under, or with respect to, this Agreement or the application thereof. City and Developer shall not be liable in damages to one another, or to any assignee, transferee or any other person, and Developer covenants not to sue for or claim damages. Each Party shall have the right to (i) bring any proceeding in the nature of specific performance, injunctive relief or mandamus, and/or (ii) bring any action at law or in equity as may be permitted by law or this Agreement. The Parties acknowledge that monetary damages and remedies at law generally are inadequate upon the occurrence of a default. Therefore, specific performance or other extraordinary equitable relief (such as injunction) is an appropriate remedy for the enforcement of this Agreement, other remedies at law being inadequate under all the circumstances pertaining

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Development Agreement/ District Lot 3 (Elion) Page 17 of 26 as of the Effective Date of this Agreement and any such equitable remedy shall be available to the Parties.

11.3 Default by Developer/Withholding of Building Permit. City may, without submitting to mediation, refuse to issue a building permit for any structure within the Property if City, in its reasonable discretion, determines Developer has materially failed and refused to complete any requirement that is a Condition of Approval, or that is applicable to the building permit requested. In addition, where City has determined that Developer is in default as described above, City may also refuse to issue the Developer any permit or entitlement for any structure or property located within the Project. This remedy shall be in addition to any other remedies provided for by this Agreement.

12. AMENDMENT OR TERMINATION

12.1 Development Plan. City and Developer anticipate that the Project will be implemented in accordance with the Approvals, the Development Plan, Mitigation Monitoring and Reporting Program, and the Conditions of Approval. The foregoing actions and other necessary or convenient implementation actions shall not require an amendment to this Agreement. Any subsequent amendment or modification of the Development Plan shall be done pursuant to a Development Agreement Amendment pursuant to applicable Government Code provisions, MMC Section XIII-D.14.010 and following, and Section

24.1 herein.
a. Insubstantial Modifications and Operating Memoranda. The Parties acknowledge that refinements and further development of the Project may demonstrate that minor changes or clarifications are appropriate with respect to the details of the Project development and the performance of the parties under this Agreement.

The Parties desire to retain a certain degree of flexibility with respect to the details of the Project development and with respect to those items covered in general terms under this Agreement, and thus desire to provide a streamlined method of approving insubstantial modifications to, or clarifications of the Parties responsibilities and obligations under this Agreement. Therefore, to the extent allowed by applicable law, any minor modification or clarification to this Agreement which does not modify (i) the Term of this Agreement; (ii) permitted uses of the Property, (iii) maximum density or intensity of use, (iv) the approved floor area, number or type of dwelling units, or building height, (v) provisions for the reservation or dedication of land, (vi) conditions, terms, restrictions or requirements for subsequent discretionary actions, (vii) monetary obligations of Developer, or (viii) the original findings and Conditions of Approval for the Project and (ix) would not result in any threat to the public health, safety, or welfare or any new or detrimental effects from the Project (hereinafter an “Insubstantial Modification”), and that can be processed under CEQA as exempt from CEQA, and that do not require a notice of amendment and/or hearing, including pursuant to Government Code Section 65868, shall not require a public hearing or City Council approval prior to the Parties executing a modification to this Agreement. Upon receiving a written request from the Developer for an Insubstantial Modification, the City Manager or a designated representative will

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Development Agreement/ District Lot 3 (Elion) Page 18 of 26 evaluate the request, considering: (1) whether the requested modification falls under the definition of an “Insubstantial Modification”; and (2) whether the requested modification aligns with the objectives of this Agreement. The City Manager will not unreasonably withhold a decision, but will also ensure the City's interests are adequately protected. If the City Manager or designee determines that the requested modification is an “Insubstantial Modification” that is consistent with the Approvals and this Agreement and tends to promote the goals of the Approvals and this Agreement, the proposed modification may be approved by the City Manager as an Insubstantial Modification, and a written modification will be executed by the Parties and attached to this Agreement as an operating memorandum (“Operating Memorandum”).

12.2 Termination upon Completion of Development. This Agreement shall terminate upon the expiration of the Term, or when the Property has been fully developed and all of the Developer’s obligations are satisfied as determined by City. Upon termination of this Agreement, City may record a Notice of Termination in a form satisfactory to the City Attorney.

12.3 Effect of Termination Upon Developer Obligations. Termination of this Agreement as to the Developer shall not affect any of the Developer’s obligations to comply with City General Plan and the terms and conditions of any applicable zoning, or subdivision map or other land use entitlement approved with respect to the Project, nor shall it affect any other covenants or development requirements in this Agreement specified to continue after the termination of this Agreement, or obligations to pay assessments, liens, fees or taxes.

12.4 Effect of Termination Upon City. Upon any termination of this Agreement as to the Developer, the entitlement, conditions of development, and all other terms and conditions of this Agreement shall no longer be vested with respect to the Property and City shall no longer be limited by this Agreement, to make any changes or modifications to the entitlement, conditions or fees applicable to the Property.

12.5 Elements of Termination. This Agreement shall be deemed terminated and of no further effect upon the occurrence of any of the following events:
(a) Expiration of the Term;
(b) Entry after all appeals have been exhausted of a final court judgment or issuance of a final court order directed to City to set aside, withdraw, or abrogate the Approvals, the City’s approval of this Agreement or any material part thereof; or (c) The effective date of a Party’s election to terminate the Agreement as provided in this Agreement.

13. MORTGAGEE PROTECTION: CERTAIN RIGHTS OF CURE

13.1 Mortgagee Protection. This Agreement shall be superior and senior to all liens placed upon the Property or any portion thereof after the date on which this Agreement or a memorandum thereof is recorded, including the lien of any deed of trust or mortgage (“Mortgage”). Notwithstanding the foregoing, no breach hereof shall defeat, render invalid,

DEVELOPMENT AGREEMENT
Development Agreement/ District Lot 3 (Elion) Page 19 of 26 diminish or impair the lien of any Mortgage made in good faith and for value, but all of the terms and conditions contained in this Agreement shall be binding upon and effective against all persons and entities, including all deed of trust beneficiaries or mortgagees (“Mortgagees”) who acquire title to the Property or any portion thereof by foreclosure, trustee’s sale, deed in-lieu-of foreclosure, voluntary transfer or otherwise.

13.2 Mortgagee Obligations. City, upon receipt of a written request from a foreclosing Mortgagee, shall permit the Mortgagee to succeed to the rights and obligations of Developer under this Agreement, provided that all defaults by Developer that are reasonably susceptible of being cured are cured by the Mortgagee as soon as reasonably possible, provided, however, that in no event shall such Mortgagee personally be liable for any defaults or monetary obligations of Developer arising prior to acquisition of possession of such Property by such Mortgagee. The foreclosing Mortgagee shall have the right to find a substitute developer to assume the obligations of Developer, which substitute shall be considered for approval by City pursuant to Section 13 of this Agreement, but shall not, itself, be required to comply with all of the provisions of this Agreement.

13.3 Notice of Default to Mortgagee. If City receives notice from a Mortgagee requesting a copy of any notice of default given to Developer and specifying the address for service thereof, City shall endeavor to deliver to the Mortgagee, concurrently with service thereof to Developer, all notices given to Developer describing all claims by City that Developer has defaulted hereunder. If City determines that Developer is not in compliance with this Agreement, City also shall endeavor to serve notice of noncompliance on the Mortgagee concurrently with service on Developer. Each Mortgagee shall have the right, but not the obligation, during the same period available to Developer to cure or remedy, or to commence to cure or remedy, the condition of default claimed or the areas of noncompliance set forth in City’s notice.

14. ASSIGNABILITY

14.1 Assignment. Except as provided in Section 13, neither Party shall convey, assign or transfer (“Transfer”) any of its interests, rights or obligations under this Agreement without the prior written consent of the other Party, which consent shall not be unreasonably withheld or delayed. In no event shall the obligations conferred upon Developer under this Agreement be transferred except through a Transfer of all or a portion of the Property.

Should Developer Transfer any of its interests, rights or obligations under this Agreement, it shall nonetheless remain liable for performance of the obligations for installation of public improvements, provision of affordable housing, and payment of fees, unless the transferee executes an Assumption Agreement in a form reasonably acceptable to City whereby the transferee agrees to be bound by the relevant Terms of the Agreement, including the obligations for installation of public improvements, provision of affordable housing, and payment of fees. During the Term, Developer shall provide City with written notice of a request to Transfer any interest in this Agreement sixty (60) days prior to any such contemplated Transfer. Any such request for a Transfer shall be accompanied by quantitative and qualitative information that substantiates, to City’s reasonable satisfaction, that the proposed transferee has the capability to assume the rights and fulfill the obligations of this Agreement. Any transferee (including parents and subsidiary entities)

DEVELOPMENT AGREEMENT
Development Agreement/ District Lot 3 (Elion) Page 20 of 26 shall have a net worth, valuation, or liquidity (including debt capacity), of not less than $50,000,000.00 Dollars. The City Manager shall have sole discretion to find and determine that transferees with a net worth, valuation, or liquidity (including debt capacity) of less than $50,000,000.00 Dollars are otherwise eligible transferees under this Agreement.

Within thirty (30) days of such a request and delivery of information, the Milpitas City Manager shall make a determination, in his or her reasonable discretion, as to whether the Transfer shall be permitted or whether such Transfer necessitates an Amendment to this Agreement, subject to approval by the Council. The Milpitas City Manager’s approval of a proposed Transfer shall not be unreasonably withheld provided that the terms of this Section 14.1 are met. Each successor-in-interest to Developer shall be bound by all of the terms and provisions applicable to the portion of the Property acquired. This Agreement shall be binding upon and inure to the benefit of the Parties’ successors, assigns and legal representatives. Developer or its successor shall record notice of such approved Transfers in the Santa Clara County Recorder’s Office promptly upon execution by each of the Parties.

14.2 Covenants Run With The Land. The terms of this Agreement are legislative in nature, and apply to the Property as regulatory ordinances. All of the provisions, agreements, rights, powers, standards, terms, covenants and obligations contained in this Agreement shall run with the land and shall be binding upon the Parties and their respective heirs, successors (by merger, consolidation or otherwise) and assigns, devisees, administrators, representatives, lessees and all other persons or entities acquiring the Property, any lot, parcel or any portion thereof and any interest therein, whether by sale, operation of law or other manner, and shall inure to the benefit of the Parties and their respective successors.

14.3 Foreclosure. Nothing contained in this Section 14 shall prevent a Transfer of the Property, or any portion thereof, to a lender as a result of a foreclosure or deed in lieu of foreclosure, and any lender acquiring the Property, or any portion thereof, as a result of foreclosure or a deed in lieu of foreclosure shall take such Property subject to the rights and obligations of Developer under this Agreement; provided, however, in no event shall such lender be liable for any defaults or monetary obligations of Developer arising prior to acquisition of title to the Property by such lender, and provided further, in no event shall any such lender or its successors or assigns be entitled to a building permit or occupancy certificate until all fees due under this Agreement (relating to the portion of the Property acquired by such lender) have been paid to City.

15. CONTROLLING LAW

15.1 Controlling Law. This Agreement shall be governed by the laws of the State of California, and the exclusive venue for any disputes or legal actions shall be the Superior Court of California in and for the County of Santa Clara. Developer shall comply with all requirements of state and federal law, in addition to the requirements of this Agreement, including, without limitation, the payment of prevailing wages, if required. In any event, Developer shall pay prevailing wages for all work on off-site public improvements related to the Project.

DEVELOPMENT AGREEMENT
Development Agreement/ District Lot 3 (Elion) Page 21 of 26

16. GENERAL

16.1 Construction of Agreement. The language in this Agreement in all cases shall be construed as a whole and in accordance with its fair meaning.

16.2 No Waiver. No delay or omission by either Party in exercising any right or power accruing upon the other Party’s noncompliance or failure to perform under the provisions of this Agreement shall impair or be construed to waive any right or power. A waiver by either Party of any of the covenants or conditions to be performed by Developer or City shall not be construed as a waiver of any succeeding breach of the same or other covenants and conditions.

16.3 Agreement is Entire Agreement. This Agreement and all exhibits attached hereto or incorporated herein, together with the Development Plan, Mitigation Monitoring and Reporting Program, and the Conditions of Approval, are the sole and entire Agreement between the Parties concerning the Property. The Parties acknowledge and agree that they have not made any representation with respect to the subject matter of this Agreement or any representations inducing the execution and delivery, except representations set forth herein, and each Party acknowledges that it has relied on its own judgment in entering this Agreement. The Parties further acknowledge that all statements or representations that heretofore may have been made by either of them to the other are void and of no effect, and that neither of them has relied thereon in its dealings with the other. To the extent that there is any conflict between the approved Development Plan and this Agreement, the approved Development Plan shall govern the Parties’ respective rights and obligations.

16.4 Estoppel Certificate. Either Party from time to time may deliver written notice to the other Party requesting written certification that, to the knowledge of the certifying Party, (i) this Agreement is in full force and effect and constitutes a binding obligation of the Parties, (ii) this Agreement has not been amended or modified either orally or in writing, or, if it has been amended or modified, specifying the nature of the amendments or modifications, and, (iii) the requesting Party does not have knowledge of default in the performance of its obligations under this Agreement, or if in known default, describing therein the nature and monetary amount, if any, of the default. A Party receiving such a request shall execute and return the certificate within thirty (30) days after receipt thereof. City Manager shall have the right to execute the certificates requested by Developer. At the request of Developer, the certificates provided by City establishing the status of this Agreement with respect to any lot or parcel shall be in recordable form, and Developer shall have the right to record the certificate for the affected portion of the Property at its cost.

16.5 Severability. Each provision of this Agreement which is adjudged by a court of competent jurisdiction to be invalid, void or illegal shall in no way shall affect, impair or invalidate any other provisions, and the other provisions shall remain in full force and effect.

16.6 Further Documents. Each Party shall execute and deliver to the other all other instruments and documents as may be reasonably necessary to carry out this Agreement.

DEVELOPMENT AGREEMENT
Development Agreement/ District Lot 3 (Elion) Page 22 of 26

16.7 Time of Essence. Time is of the essence in the performance of each and every covenant and obligation to be performed by the Parties hereunder.

16.8 Defense, Indemnification and Hold-Harmless Provisions. Developer shall hold City, its elective and appointive boards, commissions, officers, agents, and employees (the “Indemnified Parties”) harmless from any liability for damage for personal injury, including death, as well as from claims for property damage which may arise from Developer’s contractors, subcontractors’, agents’ or employees’ operations on the Project, whether the actions be by the Developer or by any of Developer’s contractors, subcontractors, or by any one or more persons directly or indirectly employed by, or acting as agent for Developer or any of Developer’s contractors or subcontractor’s. Developer shall indemnify and defend Indemnified Parties from any suit or actions at law or in equity for damages caused, or alleged to have been caused, by reason of the operations and Developer shall pay all reasonable attorneys’ fees and costs that City may incur. City does not, and shall not waive any rights against Developer that it may have by reason of the aforesaid hold-harmless requirement of Developer because of the acceptance of improvements by City, or the deposit of security with City by Developer. The holdharmless requirement of Developer shall apply to all damages and claims for damages of every kind suffered, or alleged to have been suffered, by reason of any of the operations referred to in this paragraph, regardless of whether or not City has prepared, supplied or approved of, plans and/or specifications for the Project. Notwithstanding anything to the contrary, Developer’s indemnification of City shall not apply to the extent that such action, proceedings, demands, claims, damages, injuries or liability is based upon the active negligence of City.

16.9 Third-Party Challenge. Developer agrees to defend the Indemnified Parties from any challenge to the validity of this Agreement, environmental review for the Project, entitlements, or anything related to the passage of the Agreement by City.

16.10 Construction. This Agreement has been reviewed and revised by legal counsel for both City and Developer and no presumption or rule that ambiguities shall be construed against the drafting Party shall apply to the interpretation or enforcement of this Agreement.

16.11 Section Headings. All section headings and subheadings are inserted for convenience only and shall not affect any construction or interpretation of this Agreement.

17. NOTICES

17.1 Notices. Except as otherwise expressly provided herein, all notices and demands pursuant to this Agreement shall be in writing and delivered in person, by commercial courier or by first-class certified U.S. mail, postage prepaid. Except as otherwise expressly provided herein, notices shall be considered delivered when personally served, upon delivery if delivered by commercial courier, or two (2) days after mailing if sent by U.S. mail. Notices shall be sent to the addresses below for the respective Parties; provided, however, that either Party may change its address for purposes of this section by giving written notice to the other Party. These addresses may be used for service of process:

DEVELOPMENT AGREEMENT
Development Agreement/ District Lot 3 (Elion) Page 23 of 26 City:

City of Milpitas
Attn: City Manager
455 E. Calaveras Blvd.

Milpitas, CA 95035
With copy to:

City of Milpitas
Attn: City Attorney
455 E. Calaveras Blvd.

Milpitas, CA 95035
Developer:

Lyon Living
Attn: Mike Barmettler
4901 Birch St.

Newport Beach, CA 92660
With copy to:

Pete Zak
3 Corporate Plaza Drive, Suite 230
Newport Beach, CA 92660
And:

Cox, Castle & Nicholson LLP
Attn: Sean Matsler
3121 Michelson Drive, Suite 200
Irvine, CA 92612
The provisions of this section shall be deemed directive only and shall not detract from the validity of any notice given in a manner that would be legally effective in the absence of this section.

18. RELATIONSHIP BETWEEN CITY AND DEVELOPER

18.1 Developer is an Independent Contractor. Developer is not an agent or employee of City, but is an independent contractor with full rights to manage its employees subject to the requirements of the law. All persons employed or utilized by Developer in connection with this Agreement are employees or contractors of Developer and shall not be considered employees of City in any respect.

19. PROJECT AS A PRIVATE UNDERTAKING

19.1 Project as a Private Undertaking. It is specifically understood and agreed that the Project is a private development. No partnership, joint venture or other association of any kind between City and Developer is formed by this Agreement.

DEVELOPMENT AGREEMENT
Development Agreement/ District Lot 3 (Elion) Page 24 of 26

20. NONDISCRIMINATION

20.1 Nondiscrimination. Developer shall not discriminate, in any way, against any person on the basis of race, color, national origin, gender, marital status, sexual orientation, age, creed, religion or disability in connection with or related to the performance of this Agreement.

21. FORCE MAJEURE.

21.1 Force Majeure. Performance by either Party hereto shall not be deemed to be in default where delays or defaults are due to war, insurrection, strikes, walkouts, riots, floods, earthquakes, fires, casualties, acts of God, acts of other governmental entities or enactment of conflicting state or federal laws or regulations.

22. THIRD PARTIES

22.1 Third Parties. If any person or entity not a Party to this Agreement initiates an action at law or in equity to challenge the validity of any provision of this Agreement or the Approvals, the Parties shall reasonably cooperate in defending such action. Developer shall bear its own costs of defense as a real Party in interest in any such action, and shall reimburse City for all reasonable costs and attorneys’ fees expended by City in defense of any such action or other proceedings.

23. AMENDMENTS

23.1 Amendments. No alterations or changes to the Terms of this Agreement shall be valid unless made in writing and signed by both Parties, and completed in compliance with the procedures listed in MMC and/or the Government Code for Development Agreement Amendments.

24. NO THIRD-PARTY BENEFICIARY

24.1 No Third-Party Beneficiary. This Agreement shall not be construed or deemed to be an Agreement for the benefit of any third-party or Parties, and no third-party or Parties shall have any claim or right of action hereunder for any cause whatsoever.

25. DISPUTE RESOLUTION

25.1 Mediation. Any controversies between Developer and City regarding the construction or application of this Agreement, and claims arising out of this Agreement or its breach, shall be submitted to mediation within thirty (30) days of the written request of one Party after the service of that request on the other Party.

25.2 Mediator Selection/Length of Mediation. The Parties may agree on one mediator. If they cannot agree on one mediator, the Party demanding mediation shall request the Superior Court of Santa Clara County to appoint a mediator. The mediation meeting shall not exceed one day (eight (8) hours). The Parties may agree to extend the time allowed for mediation under this Agreement.

DEVELOPMENT AGREEMENT
Development Agreement/ District Lot 3 (Elion) Page 25 of 26

25.3 Mediation Costs. The costs of the mediator shall be borne by the Parties equally; however, each Party shall bear its own attorney, consultant, staff and miscellaneous fees and costs.

25.4 Exhaustion of Mediation As A Remedy. Mediation under this Section is a condition precedent to filing an action in any court, but it is not a condition precedent to City’s refusal to issue a building permit or any other entitlement under Section 5.

26. CONSENT

26.1 Consent. Where consent or approval of a Party is required or necessary under this Agreement, the consent or Agreement shall not be unreasonably withheld or delayed.

27. COVENANT OF GOOD FAITH AND FAIR DEALING

27.1 Covenant of Good Faith and Fair Dealing. Neither Party to this Agreement shall do anything which shall have the effect of harming or injuring the right of the other Party to receive benefits of this Agreement; each Party shall refrain from doing anything which would render its performance under this Agreement impossible; and, each Party shall do everything which this Agreement contemplates to accomplish the objectives and purpose of this Agreement.

28. AUTHORITY TO EXECUTE

28.1 Authority to Execute. The person or persons executing this Agreement on behalf of Developer warrant and represent that they have the authority to execute this Agreement on behalf of Developer, and further represent that they have the authority to bind Developer to the performance of its obligations in this Agreement.

29. COUNTERPARTS

29.1 Counterparts. This Agreement may be executed in multiple originals, each of which is deemed an original, and may be signed in Counterparts. The Parties acknowledge and accept the terms and conditions of this Agreement as evidenced by the following signatures of their duly authorized representatives. It is the intent of the Parties that this Agreement shall become operative on the Effective Date.

SIGNATURES FOLLOW ON PAGE 26

DEVELOPMENT AGREEMENT
Development Agreement/ District Lot 3 (Elion) Page 26 of 26

CITY OF MILPITAS, CALIFORNIA
a chartered California municipal corporation
APPROVED AS TO FORM:

CHRISTIAN CURTIS
City Attorney
ATTEST:

JARED HERNANDEZ
Acting City Manager
455 E. Calaveras Blvd.

Milpitas, CA 95035

SUZANNE GUZZETTA
City Clerk
“CITY”

DEVELOPER
CHOOSE ONE: CORPORATION/PARTNERSHIP/INDIVIDUAL
By:

Signature of Person executing the Agreement on behalf of Developer Name:

Title:

Local Address:

Telephone ( )
Facsimile: ( )
Exhibit “1” Legal Description
Exhibit “2” Selected Pages of Development Plan
Exhibit “3” Conditions of Approval
Exhibit “4” Mitigation and Monitoring Plan
Exhibit “5” Insurance Requirements

DEVELOPMENT AGREEMENT
Development Agreement/ District Lot 3 (Elion)/Exhibit 1 Page 1 of Rev. 4-23-26

DEVELOPMENT AGREEMENT

BETWEEN CITY OF MILPITAS,
a California municipal corporation,
AND
MILPITAS - DISTRICT 2 ASSOCIATES, LLC,
a Delaware limited liability company; and

FIELDS CH OWNER, LLC,
a Delaware limited liability company
EXHIBIT 1

LEGAL PROPERTY DESCRIPTION

DEVELOPMENT AGREEMENT
Development Agreement/ District Lot 3 (Elion)/Exhibit 2 Page 1 of

DEVELOPMENT AGREEMENT

BETWEEN CITY OF MILPITAS,
a California municipal corporation,
AND
MILPITAS - DISTRICT 2 ASSOCIATES, LLC,
a Delaware limited liability company; and

FIELDS CH OWNER, LLC,
a Delaware limited liability company
EXHIBIT 2

SELECTED PAGES OF DEVELOPMENT PLAN

DEVELOPMENT AGREEMENT
Development Agreement/ District Lot 3 (Elion)/Exhibit 3 Page 1 of

DEVELOPMENT AGREEMENT

BETWEEN CITY OF MILPITAS,
a California municipal corporation,
AND
MILPITAS - DISTRICT 2 ASSOCIATES, LLC,
a Delaware limited liability company; and

FIELDS CH OWNER, LLC,
a Delaware limited liability company
EXHIBIT 3

CONDITIONS OF APPROVAL

35 Resolution No. xxxx
be supported by copies of weight tags and/or receipts of “end dumps.” Actual reuse, recycling and disposal tonnage amounts (and estimates for “end dumps”) shall be submitted to the Building Department for approval by the Engineering Department prior to inspection by the Building Department.

83. Flood Plain Management: This project is in the Flood Zone “AO” with 1’ average flood depth, therefore, Permittee shall comply with all applicable flood protection criterion required by the Federal Emergency Management Agency (FEMA) and MMC Title XI, Chapter 15. Permittee shall also submit a Flood Study for the Project demonstrating, to the satisfaction of the City Engineer, that the proposed development has no adverse impact to the surrounding flood plain within the Special Flood Hazard Area (SFHA) and to the flood carrying capacity of the area. The study should include cumulative effects of existing and proposed developments demonstrating the combined effects will not increase the water surface elevation of the Base Flood Elevation (BFE) more than one foot at any point. For the AO Flood Zone, the flood study is required to establish the BFE, and set the building elevation accordingly. The flood study shall be consistent with the requirements in accordance with Title 44 of the Code of Federal Regulations by establishing a hydraulic model and HEC-RAS.

The study shall clearly identify the lowest floor elevation as being either the bottom of garage, bottom of first floor residential units, bottom of elevator pit, etc. and shall be completely elevated out of the SFHA.

84. Development Fees: Permittee shall pay the following development fees. The information listed in items “a” through “g” are based upon current fee rates; however, those fee rates are subject to change. The exact fee amount shall be determined at the time of building permit fee payment. a. Water connection fee at $1,164/unit for residential, based upon increased water usage. b. Sewer connection fee at $1,406/unit for residential, based upon increased average wastewater flow. c. 3.8% of applicable fees in accordance with City Resolution No. 8969 as Permitting Automation Fee. d. FEMA Floor Zone Designation Letter fee in the amount of $100.00 each.

85. Mailboxes: The Permittee shall coordinate with US Postal Services regarding placement of required mailboxes.

Mailbox location shall not be on public street frontages, shall not encroach into public easements, shall not conflict with utility lines and appurtenances, and shall be approved by City prior to building permit issuance.

Mailbox locations shall be shown on the improvement plans. Structures to protect mailboxes may require Building, Engineering and Planning Department review.

86. Hazard Assessment Report: For any new back flow device proposed to be installed on an irrigation, domestic or fire service, the Permittee and its qualified cross-connection specialist shall complete and submit a City of Milpitas Hazard Assessment Report (CMP Hazard Assessment Report (Fillable) 2026). An existing Hazard Assessment Report may be submitted if completed in the last six (6) months, or submission of a new assessment if any of the following conditions have occurred: 1) Initial site hazard assessment is older than six (6) months, 2) Account change; 3) New connection; 4) Change in onsite activities or materials that may affect water safety; 5) If there has been cross-connection incident in the last six (6) months or if this work is requirement of the State Water Resource Control Board. The Hazard Assessment Report shall be submitted for review and approval by the City’s Utility Engineering department prior to building permit issuance.

DURING CONSTRUCTION
The following conditions shall be complied with at all times during the construction phase of the project, unless otherwise approved by the Director of Engineering/City Engineer. (E)

87. Dewatering: If dewatering is needed during construction, Permittee shall obtain a Short-Term Industrial Wastewater Permit from the San Jose/Santa Clara Water Pollution Control Plant for discharging the groundwater to a sanitary sewer system.

88. On-site Recycle Water Coordination: Permittee’s cross-connection specialist shall coordinate the phasing of the construction; facilitate the cross-connection testing in order to minimize the impact for occupied buildings during cross-connection testing; sign-off before the water meter set; coordinate on-site construction inspection;

DEVELOPMENT AGREEMENT
Development Agreement/ District Lot 3 (Elion)/Exhibit 4 Page 1 of

DEVELOPMENT AGREEMENT

BETWEEN CITY OF MILPITAS,
a California municipal corporation,
AND
MILPITAS - DISTRICT 2 ASSOCIATES, LLC,
a Delaware limited liability company; and

FIELDS CH OWNER, LLC,
a Delaware limited liability company
EXHIBIT 4

MITIGATION MONITORING AND REPORTING PROGRAM

Milpitas Metro Specific Plan
Mitigation and Monitoring Reporting Program 1 November 2022 Mitigation Monitoring and Reporting Program
Introduction
The California Environmental Quality Act (CEQA) requires the adoption of feasible mitigation measures to reduce the severity and magnitude of significant environmental impacts associated with project development. The draft subsequent environmental impact report (draft SEIR) for the Milpitas Metro Specific Plan (Metro Plan) identified all feasible mitigation measures, subject to adoption by decision makers, to reduce the potential environmental effects of the Project.

The Mitigation Monitoring and Reporting Program (MMRP) is formulated based upon the findings of the draft SEIR. The MMRP, found in the table below, lists mitigation monitoring and implementation requirements. This MMRP has been prepared to comply with the requirements of CEQA (Public Resources Code Section 21081.6), which requires Lead Agencies making CEQA findings related to approval of a project for which an EIR was prepared/certified to adopt an MMRP when mitigation measures are required to avoid significant impacts. This MMRP contains mitigation measures that have been required in the Metro Plan to lessen significant effects. The MMRP is designed to aid the City of Milpitas in its implementation and monitoring of measures adopted from the certified SEIR.

The mitigation measures in this MMRP are assigned the same number they had in the SEIR. The MMRP is presented in table format and describes the actions that must take place to implement each mitigation measure, the timing of those actions, the entities responsible for implementing and monitoring the actions, and verification of compliance. Additional information is provided in the SEIR for the Metro Plan.

The MMRP is organized in a matrix format. The first two columns of the table identify the potential impact and corresponding mitigation measures. The third column, entitled “Implementing Party, Action” refers to the party responsible for implementing the mitigation measure and the action itself. The fourth column entitled “Timing,” refers to when monitoring will occur to ensure the mitigating action is completed. The fifth column, entitled “Monitoring Party, Verification,” refers to the party responsible for oversight or ensuring that the mitigation measure is implemented and how they can verify the action was implemented.

City of Milpitas
Milpitas Metro Specific Plan
Mitigation and Monitoring Reporting Program 2 November 2022 Milpitas Metro Specific Plan
Mitigation Monitoring and Reporting Program
Mitigation Measure Impacts
Implementing
Party, Action Timing
Monitoring Party,
Verification
Air Quality
AQ-1: Require at Least Tier 4 Final Engines on
Construction Equipment
All applicants proposing development of projects within the Metro Plan Area shall require their contractors, as a condition of contract, to further reduce constructionrelated exhaust emissions by ensuring that all off-road equipment greater than 50 horsepower (hp) and operating for more than 20 total hours over the entire duration of construction activities, shall operate on at least an
Environmental Protection Act (EPA)-approved Tier 4 Final or newer engine. Exemptions can be made for specialized equipment where Tier 4 engines are not commercially
available within 200 miles of the Metro Plan Area. The
construction contract must identify these pieces of
equipment, document their unavailability, and ensure that they operate on no less than an EPA-approved Tier 3
engine.

AQ-2a, AQ-3, C-AQ1 Applicant/
applicant’s
contractor
Provide
documentation of
use of Tier 4
engines or
unavailability of
pieces of
equipment.

During all
construction
activities
City of Milpitas
Review
documentation.

AQ-2: Require Use of Diesel Trucks with 2010-
Compliant Model Year Engines
All applicants proposing development of projects within the Metro Plan Area shall require their contractors, as a condition of contract, to use diesel trucks that have 2010 model year or newer engines, but no less than the average fleet mix for the current calendar year as set forth in the CARB’s EMFAC database. In the event that 2010 model year or newer diesel trucks cannot be obtained, the contractor must provide documentation to the City showing that a
good faith effort to locate such engines was conducted.

AQ-2a, AQ-3, C-AQ1 Applicant/
applicant’s
contractor
Provide
documentation of
use of engines with
2010 model year or
newer engine but
no less than
average fleet mix
for current
calendar year per
CARB’s EMFAC
database.

During all
construction
activities
City of Milpitas
Review
documentation.

City of Milpitas
Milpitas Metro Specific Plan
Mitigation and Monitoring Reporting Program 3 November 2022 Milpitas Metro Specific Plan
Mitigation Monitoring and Reporting Program
Mitigation Measure Impacts
Implementing
Party, Action Timing
Monitoring Party,
Verification
AQ-3: Require Construction Fleet to Use Renewable
Diesel
All applicants proposing development of projects within the Metro Plan Area shall require their contractors, as a condition of contract, to reduce construction-related
exhaust emissions by ensuring that all off-road equipment greater than 50 hp and operating for more than 20 total hours over the entire duration of construction activities shall operate on renewable diesel (such as high
performance renewable diesel).

AQ-2a, AQ-3, C-AQ1 Applicant/
applicant’s
contractor
Provide contract
language requiring
use of renewable
diesel.

During all
construction
activities
City of Milpitas
Review contract
language.

AQ-4: Require Low-VOC Coatings During Construction
All applicants proposing development of projects within the Metro Plan Area shall require their contractors, as a condition of contract, to reduce construction-related
fugitive ROG emissions by ensuring that low-VOC coatings that have a VOC content of 10 grams/liter (g/L) or less are used during construction. The project applicant will submit evidence of the use of low-VOC coatings to City prior to the start of construction.

AQ-2a, AQ-3, C-AQ1 Applicant/
applicant’s
contractor
Provide contract
language requiring
use of low-VOC
coatings.

During all
construction
activities involving
coatings
City of Milpitas
Review contract
language.

AQ-5: Require Fugitive Dust Best Management
Practices
All applicants proposing development of projects within the Metro Plan Area shall require their contractors, as a condition of contract, to reduce construction-related
fugitive dust by implementing BAAQMD’s basic control
measures at all construction and staging areas. The
following measures would be implemented.
 All exposed surfaces (e.g., parking areas, staging areas, soil piles, graded areas, and unpaved access roads) will be watered two times per day.
 All haul trucks transporting soil, sand, or other loose material offsite will be covered.

AQ-2a, AQ-3, C-AQ1 Applicant/
applicant’s
contractor
Provide contract
language requiring
implementation of
fugitive dust best
management
practices.

During all
construction
activities to which
the basic control
measures would
apply
City of Milpitas
Review contract
language.