Agenda packet — Mountain View City Council, October 13, 2026 (part 2 of 2)

PUBLIC NOTICING
The City Council’s agenda is advertised on Channel 26, and the agenda and this report appear on the City’s website. All property owners and tenants within a 750’ radius were notified of this meeting, and public notice of the hearing was published in a newspaper of general circulation per Section 36.56.20 (Notice of hearing) of the City Code.

Prepared by:

George Schroeder
Planning Manager
Reviewed by:

Amber Blizinski
Assistant Director of Community
Development
Approved by:

Christian Murdock
Community Development Director
Kimbra McCarthy
City Manager
Attachments: 1. Draft DA Amendment Ordinance

2. June 24, 2026 Administrative Zoning Hearing

3. DA Amendment Request

4. Original DA with Extension Letter

5. Council Report dated November 27, 2018
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ORDINANCE NO.

AN ORDINANCE OF THE CITY OF MOUNTAIN VIEW

APPROVING A FIRST AMENDMENT TO THE DEVELOPMENT AGREEMENT BY AND BETWEEN THE

CITY OF MOUNTAIN VIEW AND LINKEDIN CORPORATION FOR THE LINKEDIN MIDDLEFIELD CAMPUS ON A 28.7-ACRE SITE
LOCATED AT 700-810 EAST MIDDLEFIELD ROAD AND 1100-1200 MAUDE AVENUE (APNs: 165- 38-001 and 165-38-009)

TO EXTEND THE TERM BY FIVE YEARS
WHEREAS, in order to strengthen the public planning process, encourage private participation in comprehensive planning, and reduce the economic costs and risk of development, the Legislature of the State of California enacted Sections 65864 to 65869.5 of the Government Code, which authorizes a city to enter into a binding, long-term development agreement with any person having a legal or equitable interest in real property, establishing certain development rights in the property; and
WHEREAS, pursuant to Government Code Section 65864, the City of Mountain View (“City”) has adopted rules and regulations establishing procedures and requirements for consideration of development agreements, which procedures and requirements are contained in Section 36.54 et seq. of the City Code; and
WHEREAS, LinkedIn Corporation (“Applicant”) has a legal interest in certain real property located in the City consisting of approximately 28.7 acres and commonly known as 700-810 East Middlefield Road and 1100-1200 Maude Avenue (collectively, the “Property”). The Property is located within the East Whisman Mixed-Use Land Use Designation under the City’s 2030 General Plan (the “General Plan”), which was adopted on July 10, 2012 by Resolution No. 17710, and the area is subject to the P(41) East Whisman Precise Plan (the “Precise Plan”), adopted November 5, 2019 by Resolution No. 18397, with subsequent amendments adopted thereto on October 13, 2020 (Resolution No. 18508), November 9, 2021 (Resolution No. 18616), and November 12, 2024 (Resolution No. 18948); and
WHEREAS, the Applicant proposes to redevelop the Property by demolishing the buildings located at 700-810 East Middlefield Road and 1100-1200 Maude Avenue and building three new office buildings and two parking structures in the vacated areas of the Property, consistent with the Planned Community Permit and a Heritage Tree Removal Permit (the “Project”), approved by the City Council on November 27, 2018, by Resolution No. 18277; and WHEREAS, the City desires to advance the socioeconomic interests of the City and its residents by promoting the productive use of underdeveloped property and encouraging quality development and economic growth, thereby enhancing employment opportunities for residents, and expanding the City’s property tax base. The City also desires to establish certainty for the 154
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future development of the Property, which will advance the planning objectives of, and provide benefits to, the City; and
WHEREAS, the City and the Applicant entered into that certain Development Agreement By and Between the City of Mountain View and LinkedIn Corporation for the LinkedIn Middlefield Campus dated as of March 10, 2019 (the “Development Agreement”), pursuant to which the City and the Applicant agreed to certain terms with respect to the Project, allowing for flexibility in the timing and phasing of the Project development; and
WHEREAS, the complexity, magnitude and long-term build-out of the Project on an infill site would be difficult for the Applicant to undertake if the City had not entered into the Development Agreement to provide a sufficient degree of certainty in the land use regulatory and flexibility in entitlement duration to justify the substantial financial investment associated with the development of the Project; and
WHEREAS, the development of Phase 2 of the Project has been delayed and the Developer has requested that the City approve an amendment of the Development Agreement to extend the term to allow additional time for the Developer to build Phase 2 of the Project on account of those delays; and
WHEREAS, the City and Developer have negotiated the terms of the First Amendment to Development Agreement (the "First Amendment") to extend the term of the Development Agreement; and
WHEREAS, the City has determined that by entering into this First Amendment, (1) the City will ensure the productive use of underdeveloped property and foster orderly growth and quality development in the City; (2) development will proceed in accordance with the goals and policies set forth in the General Plan and Precise Plan and will implement the City’s stated General Plan and Precise Plan policies; (3) the City will receive substantially increased property tax and sales tax revenues; (4) the City will benefit from increased employment opportunities for residents of the City created by the retail businesses in the commercial space within the Project; and (5) the City will receive the public benefits provided by the Applicant for the residents of the City; and WHEREAS, the Zoning Administrator conducted a duly noticed public hearing on June 24, 2026 to consider the First Amendment, and recommended that the City Council approve the First Amendment based on requisite findings; and
WHEREAS, the City Council held a duly noticed public hearing on October 13, 2026 to consider and act upon the First Amendment and duly considered the previously certified 700 East Middlefield LinkedIn Office Project Environmental Impact Report (State Clearinghouse No. 2017092025), the Development Agreement, the First Amendment, the recommendations of the Zoning Administrator, the comments of the Public, both oral and written, and all written materials in the record connected therewith;
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NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOUNTAIN VIEW DOES HEREBY ORDAIN AS FOLLOWS:

Section 1. On November 27, 2018, the Mountain View City Council certified a Final Environmental Impact Report (SCH No. 2017092025) by Resolution No. 18276, which analyzed the potential environmental consequences of the Project, and adopted Statement of Overriding Considerations, CEQA Findings, Mitigation Measures, and a Mitigation Monitoring and Reporting Program.

The First Amendment does not alter the project conditions assessed in the adopted EIR. The Project would not create any new significant environmental effects or substantially increase the severity of previously identified significant effects that had been previously identified in the Final Environmental Impact Report. Therefore, no further environmental review is required.

Section 2. The City Council of the City of Mountain View hereby makes the following findings to support the First Amendment pursuant to Sections 36.54.15(a), 36.54.15(d), and

36.54.40 of the City Code:
a. The amendment to the Development Agreement is consistent with the objectives, policies, general land uses and programs specified in the General Plan and any specific plan or Precise Plan and intent of Chapter 36 (Zoning) of the City Code. The amendment to the Development Agreement authorizes a five-year extension for Phase 2 of a 429,491 square foot office development and is consistent with the objectives, policies, general land uses, and programs specified in the General Plan for the High-Intensity Office Land Use Designation and the East Whisman Precise Plan, which allow intensities up to 1.0 floor area ratio (FAR) for highly sustainable developments which provide innovative site, architectural, and landscape designs and transportation demand management measures which support the City’s goals for reducing trips and improved bicycle and pedestrian circulation in area.

The Project aligns with several land use and transportation policies, such as LUD 3.1 (Land use and transportation) by proposing higher-intensity development within one-half mile of public transit service and along major commute corridors; and LUD 8.3 (Enhanced publicly accessible bicycle and pedestrian connections) by incorporating enhanced, publicly accessible bicycle and pedestrian connections as part of the project design and improvements.

The Project provides LEED® Platinum-designed buildings which incorporate roof-mounted photovoltaic panels to generate energy for the site, native plantings, planted terraces and roofs, and the use of recycled water inside the buildings and for the landscaping; and a Transportation Demand Management (TDM) Program which will reduce peak-hour trips to the site by 22%.

Furthermore, the Project meets the East Whisman Precise Plan’s Employment Area South targets, providing a pedestrian and bicycle path through the campus and a large open space along the Middlefield Road frontage. It complies with design standards for streetscape and frontages by incorporating a distinctive building and open space design at the prominent corner of East 156
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Middlefield Road and the State Route 237 service road intersection. The Project is also consistent with the applicable development standards and guidelines outlined in Chapter 36 (Zoning) of the City Code, including, but not limited to, water-efficient landscaping and parking standards; b. The amendment to the Development Agreement is compatible with the uses authorized in, and the regulations prescribed for, the land use district in which the real property is located. The Project design clearly demonstrates superior site and building design and compatibility with surrounding uses and developments within the P(41) East Whisman Precise Plan by providing appropriate building setbacks from the public right-of-way, innovative architecture which responds to the project site and surroundings, the implementation of birdsafe building design, providing all the project parking within parking structures, and a highintensity office use compatible with the surroundings. Approval of a five-year extension of Phase 2 would improve the likelihood that the Project will ultimately be completed; c. The amendment to the Development Agreement is in conformity with the public convenience, general welfare, and good land use practice. The Project was designed and entitled in 2018 and was found to be in conformity with the public convenience, general welfare, and good land use practice. The proposed office use is also an allowed land use under the East Whisman Precise Plan High-Intensity Employment Character Area (South) and is compatible with surrounding office developments. The Project design includes campus open spaces and new public path connections through the office campus to surrounding neighborhoods. Approval of a five-year extension of Phase 2 would improve the likelihood that the Project will ultimately be completed;
d. The amendment to the Development Agreement will not be detrimental to the health, safety, and general welfare of the community. The proposed office development will not be detrimental to the health, safety, and general welfare of the community because it is consistent with the policies and development standards of the General Plan, P(41) East Whisman Precise Plan, and applicable Building and Fire Codes;
e. The amendment to the Development Agreement will not adversely affect the orderly development of property or the preservation of property values. The development of the Property with office buildings will not adversely affect the orderly development of property or preservation of property values because the project is compatible with the surrounding office developments in the East Whisman Precise Plan Employment Character area; f. The amendment to the Development Agreement is needed by the applicant due to the complexity, cost, or infrastructure requirements for development. The amendment would allow for flexibility in the timing and phasing of the project because construction of a project of this size and extent would otherwise exceed the City’s standard approval and permit extension periods. Moreover, circumstances beyond the applicant’s control, including the impacts of the COVID-19 pandemic,supply chain shortages, labor issues, current economic conditions (including interest rates and construction costs), and the significant post-pandemic shift in office use operations, result in the applicant needing additional time to complete the Project (i.e., Phase 2); 157
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g. The amendment to the Development Agreement is advantageous to and benefits the City. The Applicant has provided significant public contributionsin accordance with the terms of the Development Agreement. As part of the original seven-year term for the 1.08 million square foot office development (effective on January 10, 2019, thirty days after the second reading of Ordinance No. 16.18), the applicant paid a $350,000 public benefit fee along with other contributions, such as a $10,000,000 prepayment of the Housing Impact Fee. The initial expiration date was subject to an automatic extension of 48 days to February 27, 2026 due to the pandemic-related moratorium on construction imposed in 2020. In January 2022, the Applicant contributed an additional $150,000 in public benefit fees in exchange for a one-time, three-year extension of the Development Agreement (to February 27, 2029). The First Amendment requires the Applicant to provide an additional $1,600,000 in public benefit fees in exchange for an additional five-year extension (to February 27, 2034) to complete Phase 2 of the Project, totaling 429,491 square feet of net new floor area. These public benefit fees, combined with the increased likelihood that Phase 2 of the project will ultimately be completed, result in a development agreement that is advantageous to and benefits the City; h. The amendment to the Development Agreement complies with the California Environmental Quality Act (CEQA). Approval of the First Amendment complies with CEQA (Pub.

Res. Code, §  21000, et seq.) pursuant to a previously adopted Project Environmental Impact Report (EIR), and none of the circumstances in CEQA Guidelines (Cal. Code Regs., Title 14) Sections 15162 and 15163 are present. Therefore, no further environmental review is required.

The EIR for the Project, adopted by the City Council on November 27, 2018 (State Clearinghouse # 2017092025), concluded that all significant impacts of the project would be reduced to lessthan-significant levels with the incorporation of mitigation measures and standard City conditions of approval, except for five significant and unavoidable intersection impacts, for which a Statement of Overriding Considerations and a Mitigation, Monitoring, and Reporting Program (MMRP) was adopted. The First Amendment does not alter the project conditions assessed in the adopted EIR. The First Amendment does not result in any changes to the Project, and no revisions to the EIR are required. There have been no changes to the circumstances under which the Project is undertaken that would require any revisions of the EIR due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects. There has been no new information of substantial importance which was not known and could not have been known with the exercise of reasonable diligence at the time the EIR was certified as complete, which shows any of the following: (i) the Project will have one or more significant effects not discussed in the EIR or negative declaration; (ii) significant effects previously examined will be substantially more severe than shown in the EIR; (iii) mitigation measures or alternatives previously found not to be feasible would in fact be feasible and would substantially reduce one or more significant effects of the Project, but the project proponent declines to adopt the mitigation measure or alternative; or (iv) mitigation measures or alternatives which are considerably different from those analyzed in the EIR would substantially reduce one or more significant effects on the environment, but the project proponent declines to adopt the mitigation measure or alternative;
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i. The amendment to the Development Agreement for the project has been reviewed by the City Attorney. The First Amendment has been reviewed by the City Attorney; and j. The City has determined that the project is a development for which a Development Agreement is appropriate. The First Amendment will improve the potential for the project to be constructed in an orderly fashion, along with the significant project benefits, such as the financial contributions by the applicant, and otherwise achieve the goals and purposes of Chapter 36, Article XVI, Division 14, of the City Code related to Development Agreements, including meeting the required contents of a development agreement as set forth in Section 36.54.20.

Section 3. The City Council finds that entering into that certain amendment to Development Agreement entitled “FIRST AMENDMENT TO DEVELOPMENT AGREEMENT” is consistent with the City’s General Plan, the East Whisman Precise Plan, and the Zoning Ordinance, and provides substantial public benefits to persons residing or owning property outside the boundary of the Property, which exceed the exactions for public benefits required in the normal development review process under Federal, State, or local law. The City Council further finds that the First Amendment is in compliance with the Government Code, Sections 65864 through 65869.5, and Chapter 36, Article XVI, Division 14, of the Mountain View City Code and, therefore, may be approved.

Section 4. The City Council hereby approves the First Amendment to Development Agreement attached hereto as Exhibit A, which shall be dated upon execution by the parties on or following the effective date of this Ordinance.

Section 5. The City Council authorizes and directs the City Manager to execute the First Amendment to Development Agreement in substantially the form attached hereto as Exhibit A, subject to minor technical conforming changes as may be approved by the City Attorney.

Section 6. The provisions of this Ordinance shall be in full force and effect from and after thirty (30) days from and after the date of its final passage.

Section 7. If any section, subsection, sentence, clause, or phrase of this ordinance is for any reason held to be unconstitutional, such decision shall not affect the validity of the other remaining portions of this ordinance. The City Council hereby declares that it would have passed this ordinance and each section, subsection, sentence, clause, or phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, or phrases be declared unconstitutional.

Section 8. Pursuant to Section 522 of the Mountain View City Charter, it is ordered that copies of the foregoing proposed ordinance be posted at least two (2) days prior to its adoption in three (3) prominent places in the City and that a single publication be made to the official 159
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newspaper of the City of a notice setting forth the title of the ordinance, the date of its introduction, and a list of the places where copies of the proposed ordinance are posted. – – – – – – – – – – –
Exhibit: A. Draft First Amendment to Development Agreement 160
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ACCOMMODATION RECORDING
REQUESTED BY:

First American Title Insurance Company
National Commercial Services

AND WHEN RECORDED
RETURN TO:

Lease Administrator
LinkedIn Corporation
845 West Maude
Sunnyvale, CA 94085
This document is exempt from payment of a
recording fee pursuant to California
Government Code Section 27383 and 27388.1.
(Space Above Line for Recorder’s Use Only)
APNs: 165-38-009 and 165-38-001

FIRST AMENDMENT TO DEVELOPMENT AGREEMENT
This FIRST AMENDMENT TO DEVELOPMENT AGREEMENT (this “First Amendment”) is made and entered into by and between the CITY OF MOUNTAIN VIEW, a California charter city and municipal corporation (the “City”), and LINKEDIN CORPORATION, a Delaware corporation (“Owner”), pursuant to Government Code Section 65864 et seq. and Section 36.54 of the Mountain View City Code (“Development Agreement Legislation”).

RECITALS
A. In order to strengthen the public planning process, encourage private participation in comprehensive planning, and reduce the economic costs of development, the California Legislature enacted the Development Agreement Legislation, which authorizes the City and any person holding a legal or equitable interest in the subject real property to enter into a development agreement, establishing certain development rights in the property, which is the subject of the development project application.

B. Pursuant to the Development Agreement Legislation, the City has adopted procedures and requirements for consideration of development agreements, including amendments thereto, which were codified in Section 36.54 et seq. of the Mountain View City Code (“City Code”). This Amendment has been processed, considered, and executed in accordance with such procedures and requirements.
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C. Owner has a legal interest in certain real property located in the City consisting of approximately 28.7 acres and commonly known as 1100 and 1200 West Maude Avenue, and 700, 760, 770, 780, 790, 800, and 810 East Middlefield Road (collectively, “Property”).

D. City and Owner entered into that certain DEVELOPMENT AGREEMENT BY

AND BETWEEN THE CITY OF MOUNTAIN VIEW AND LINKEDIN CORPORATION FOR THE LINKEDIN MIDDLEFIELD CAMPUS, dated March 10, 2019, and recorded in the Official Records of Santa Clara County (“Official Records”) on September 9, 2019 as Document No. 24274803 (“Development Agreement”). The Development Agreement, which remains in full force and effect, was adopted by Ordinance No. 16.18 on December 11, 2018. The Effective Date of the Development Agreement is January 10, 2019. All initially capitalized terms used but not defined herein shall have the meanings given to them in the Development Agreement.

E. Pursuant to Section 1.3 (Expiration Date) of the Development Agreement, the initial Term of the Development Agreement was seven (7) years with an Expiration Date of January 10, 2026. In accordance with Section 6.3 (Extension of Term Due to Moratoria) of the Development Agreement, the initial Term was extended for 48 days due to the pandemic-related moratorium on construction imposed in 2020, resulting in a new Expiration Date of February 27, 2026.

F. The Expiration Date was subsequently extended to February 27, 2029 under Section 1.3 of the Development Agreement, which provides Owner with a one (1) time extension for up to three (3) years if Owner has obtained a Certificate of Occupancy for at least one (1) of the new Buildings to be constructed on the Property, subject to written notice and payment of an extension public benefit payment of One Hundred Fifty Thousand Dollars ($150,000.00). By written notice dated January 26, 2022, Owner has obtained the required Certificate of Occupancy, remitted the public benefit payment, and exercised its right to extend the Term of the Development Agreement for an additional three-year period.

G. The Development Agreement establishes vested development rights to approximately 612,033 square feet of net new floor area comprised of three (3) new office buildings and two parking structures. To date, Owner has completed Phase 1 of the Project, which is an office building with 182,542 net new square feet, or 29.8% of the total entitled net new floor area. Phase 2 of the Project consists of two (2) additional office buildings with 429,491 square feet of net new floor area. As described in Recital K(1) and (2) below, as part of Phase 1, Owner has made payments for certain public benefits, the amount of which payments exceeds the amount that was due on a pro rata basis for the office building completed in Phase 1. The extension of the Term pursuant to this Amendment will allow for the remaining public benefit payments to be paid in connection with the completion of the remaining 429,491 square feet of net new floor area in Phase 2.

H. Due to delays in Owner’s redevelopment efforts related to the Covid-19 pandemic, supply chain shortages, labor issues, evolving market conditions and Owner’s need for office space, interest rate and operating expense increases, and other factors beyond Owner’s control, Owner desires to amend the Development Agreement and satisfy the condition precedent stated in Section 4 below to extend the Term of the Development Agreement so that it has sufficient time to utilize the vested development rights for the remaining 429,491 square feet of net new floor area 162
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in Phase 2. Such extension would extend the Term for an additional five (5) years, which would result in a total Term of 15 years from the Effective Date, and a new Expiration Date of February 27, 2034.

I. Section 6.7 (Amendment by Mutual Consent) of the Development Agreement provides that it may be amended in writing by mutual consent of the parties, subject to approval by the City Council, and in accordance with the procedures of State law and City Code.

Government Code Section 65868 authorizes amendments by mutual consent of the parties to the agreement, subject to noticing and hearing requirements in Government Code Section 65867 and subject to findings of consistency in Government Code Section 65867.5. City Code Section

36.54.40(a) authorizes either party to propose an amendment to a development agreement.

J. The purpose of the Development Agreement and this First Amendment is to further facilitate the implementation of the General Plan through the development of the Project, thereby realizing the public benefits to the City and private benefits to Owner described in the Recitals in both the Development Agreement and the First Amendment. The development of the Project requires a major investment by the Owner in making certain substantial payments to the City, including, without limitation, the East Whisman Development Impact Fees, Housing Impact payments, school district fees, plan documentation fees, payments to the Department of Public Works, and a public benefit payment in consideration of the additional floor area ratio (FAR) granted to the Project. Owner would be unable to make and realize the benefits from such commitments of land and resources without the assurances of a realized Project provided by this First Amendment. The City has determined that the granting of such assurances is necessary to enable the Owner to undertake the development of the Project and thereby provide and achieve the public purpose and the benefits of the Project. These benefits include furthering the policies in the General Plan to create jobs and improve the City’s jobs/housing balance and economic development, creating an employment center that will enhance the image and identity of Mountain View, and providing Owner with sufficient certainty and predictability in the development process to induce the Owner to incur substantial commitments to construct at its sole expense certain public improvements required by the City in connection with the Project, including, without limitation, sidewalks, roads, streets, curbs, gutters, medians, traffic signals, water, sewers, storm drains and a cycle track along the Hwy 237 Frontage Road.

K. Owner has demonstrated its commitment to completing Phase 2 of the Project in the following manner:

1. Under Condition of Approval 62 for the Project, Owner is required to pay the City a total of $11,000,000 as a public benefit for Bonus FAR for the Project. Of this amount, $5,500,000 was paid before commencement of the construction of Phase 1, representing 50% of the obligation, even though only 29.8% of the entitled floor area was constructed in Phase 1. This results in a $2,200,000 pre-payment of this public benefit payment attributable to Phase 2. The remaining public benefit fee balance of $5,500,000 will be paid prior to the issuance of Phase 2 building permits;

2. Under Section 3.1(b) (Future East Whisman Development Impact Fees) of the Development Agreement and Condition of Approval 61, Owner is required to pay East Whisman Fees, notwithstanding that the City had not yet adopted a development impact 163
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fee ordinance for the East Whisman Precise Plan area as of the Effective Date. The Development Agreement established the impact fee based on an estimated amount of $31.05 per net new square footage of floor area. The East Whisman Impact Fee was subsequently established to be $10.75 per square foot of net new gross floor area. The Development Agreement provides that if the East Whisman Fees as formally established are less than $31.05 per square foot, then Owner will be entitled to a credit against future East Whisman Fees payable by the Project. At the initiation of Phase 1, LinkedIn paid East Whisman Fees of $5,667,929.10. Based on the current (Fiscal Year 2025-26 City of Mountain View Fee Schedule) East Whisman Fees of $12.27 per square foot, the City received an overpayment of approximately $3,428,138.76 in East Whisman Fees for Phase 1, equivalent to approximately 279,392 square feet of net new square footage of floor area, which amount will be credited towards the East Whisman Development impact fee payment. The East Whisman Fees due for Phase 2 of the project are estimated to be based on approximately 150,099 square feet of net new square footage of floor area, and are estimated to total approximately $1,841,714.73;

3. Under the Conditions of Approval for the Project, Owner is required to construct at its sole cost certain public improvements required by the City in connection with the Project including, without limitation, sidewalks, roads, streets, curbs, gutters, medians, traffic signals, water, sewers, storm drains and a cycle track along the Hwy 237 Frontage Road. Owner has completed all of the public improvements, except the cycle track. The cost of the public improvements completed in Phase 1 but not required for Phase 1 is approximately $7,000,000. By doing so, Owner has made a substantial investment benefiting the City beyond what would have been required under Phase 1 alone. The cycle track will be installed during Phase 2 construction, completing all public improvement obligations associated with the Project;

4. Under Conditions of Approval 7, 8 and 9, Owner is required to maintain certain areas and improvements available to the public as publicly accessible, privately owned open space, including, without limitation, pedestrian sidewalks, walkways, plazas and the large landscaped open space on the East Middlefield Road frontage. As part of the construction of Phase 1, Owner has completed approximately 50% of the publicly accessible open space improvements for the Project, which has been available to the public for its use and enjoyment; and

5. In January 2019 and prior to the issuance of building permits for Phase 1, Owner established for the benefit of the City a $10,000,000 revolving loan for the purpose of financing the development of below-market rate housing within the City. This amount is $5,200,000 more than Owner is obligated to pay for housing impact fees for Phase 1 of the Project, representing a significant pre-payment of housing impact fees in anticipation of Phase 2.

L. By this First Amendment, City and Owner desire to amend the Development Agreement to reflect the foregoing, in accordance with the terms and conditions set forth herein.

AGREEMENT
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NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, City and Owner hereby agree as follows:

1. Incorporation of Recitals. The Recitals to this Amendment are true and correct and incorporated herein as if set forth in full.

2. Extension of Term. Section 1.3 of the Development Agreement is hereby deleted in its entirety and the following is substituted in lieu thereof:

1.3 Expiration Date. The initial Term of the Development Agreement commenced on the Effective Date (January 10, 2019) for a seven (7) year period, with an initial expiration date of January 10, 2026. The initial expiration date was subject to an automatic extension for 48 days to February 27, 2026, and was subsequently extended by an additional three (3) year period to February 27, 2029 pursuant to the terms of the Development Agreement and mutual consent of the parties. Except as the Term may be extended in accordance with Section 6.3, the Term of the Development Agreement pursuant to this First Amendment shall expire on February 27, 2034 (“Expiration Date”).

Notwithstanding the foregoing, if, prior to the Expiration Date, Owner has caused a building permit for the Project to be issued, commenced construction pursuant thereto, and thereafter diligently maintained such building permit in active status in accordance with the applicable provisions of the California Building Code and any applicable local amendments, then Owner’s vested rights under this Development Agreement shall vest upon commencement of construction and shall survive the expiration of this Development Agreement.

For purposes of clarification, (i) vesting shall occur only upon issuance of a building permit for new construction and commencement of construction authorized thereby, and approval of a building permit application alone shall not constitute vesting; (ii) following vesting, the vested rights granted under this Development Agreement shall apply to and remain effective for the entirety of the Project, including all buildings, phases, and improvements authorized by the approved Project approvals and building permit, notwithstanding that construction may proceed in phases or one building at a time; (iii) vested rights for the entire Project shall continue in full force and effect so long as Owner maintains at least one active building permit for new construction and continues construction activity sufficient to prevent expiration or invalidation of such permit under the applicable provisions of the California Building Code and any applicable local amendments; and (iv) in all cases, the vesting of rights shall not exceed beyond 10 years from the issuance date of the first building permit used for purposes of vesting. The completion, suspension, or delayed commencement of construction of any individual building or phase of the Project shall not, by itself, terminate or diminish the vested rights applicable to the remainder of the Project. 165
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3. Adoption of Ordinance. This First Amendment was approved by the City Council of the City by way of Ordinance No. _______, which was finally adopted on ________, 2026 and became effective thirty (30) days thereafter (“First Amendment Effective Date”).

4. Condition Precedent. Notwithstanding any provisions to the contrary, this First Amendment shall be effective upon satisfaction of the following condition precedent: receipt of payment in the amount of One Million Six Hundred Thousand Dollars ($1,600,000.00) by City from Owner within sixty (60) days after the First Amendment Effective Date.

5. No Other Modifications. Except as set forth herein, the Development Agreement is and shall remain in full force and effect and unamended. The Development Agreement and this First Amendment shall hereafter be collectively referred to as the Development Agreement. The Development Agreement, as amended herein, integrates all of the terms and conditions of agreement between the parties and supersedes all previous agreements between the parties with respect to the subject matter herein.

6. Scope of Amendment. To the extent that any inconsistency arises between the Development Agreement and this First Amendment, the terms of the Development Agreement shall be controlling unless expressly stated otherwise.

7. Interpretation. The parties acknowledge that this First Amendment is the product of negotiation and compromise on the part of both parties, and the parties agree, that since all have participated in the negotiation and drafting of this First Amendment, this First Amendment shall not be construed as if prepared by one of the parties, but rather according to its plain and fair meaning as a whole, as if all parties had prepared it.

8. Recordation. No later than ten (10) days after this First Amendment is fully executed and acknowledged by both Parties, the Clerk of the City shall record, at Owner’s expense, a copy of this First Amendment in the Official Records. Owner shall be responsible for all recordation fees, if any.

9. Severability. If any term or provision of this First Amendment, or the application of any term or provision to a specific situation, is found to be invalid, void, or unenforceable, the remaining terms and provisions of the Development Agreement and this First Amendment shall continue in full force and effect.

10. Signatures. The individuals executing this First Amendment represent and warrant that they have the right, power, legal capacity, and authority to enter into and execute this First Amendment on behalf of Owner, including all persons or entities with a legal or equitable interest in the Property and the City. This First Amendment shall inure to the benefit of and be binding upon the parties hereto and their respective successors and assigns. Signatories shall defend, indemnify, and hold harmless the City, and its agents, officers, and employees from any challenge related to the authority of any person or persons signing this First Amendment.

11. Counterparts. This First Amendment may be executed in any number of counterparts, each of which shall be deemed an original, but all of which, taken together, shall constitute one and the same instrument.
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12. Further Assurances. Each of Owner and City shall, when requested to do so by the other party, execute, acknowledge, and deliver, or cause to be executed, acknowledged, and delivered any and all such further documents and do any and all other acts as may be necessary to carry out the intent and purpose of this First Amendment. [Signatures on Following Pages]
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IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to be executed as of the First Amendment Effective Date.

NOTARY REQUIRED ON ALL SIGNATURES
“OWNER”

LINKEDIN CORPORATION,
a Delaware corporation
By: _________________________
Name:

Title:

Taxpayer ID No. 47-0912023
[Signatures Continue on Following Page]
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IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to be executed as of the date first above written.
“CITY”

CITY OF MOUNTAIN VIEW,
a California charter city and municipal
corporation
By: _________________________
City Manager
By: _________________________
City Clerk
APPROVED AS TO CONTENT:
_____________________________
Name:

Title:

FINANCIAL APPROVAL:
_____________________________
Finance and Administrative
Services Director
APPROVED AS TO FORM:
_____________________________
City Attorney
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STATE OF CALIFORNIA )
) ss.

COUNTY OF SANTA CLARA )
On this ___ day of ______________, 2026, before me, _______________________________, Notary Public, personally appeared__________________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.
______________________________
Notary Public
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STATE OF CALIFORNIA )
) ss.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.
______________________________
Notary Public
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104856\19524185v2

STATE OF CALIFORNIA )
) ss.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.
______________________________
Notary Public
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ATTACHMENT 3
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1000 W. Maude Avenue, Sunnyvale, CA 94085
January 26, 2022
City Manager’s Office
City of Mountain View
500 Castro Street
P.O. Box 7540
Mountain View, CA 94039-7540
Attn: Kimbra McCarthy
Re: Development Agreement dated March 10, 2019 by and between the City of Mountain View and LinkedIn Corporation; Extension of Term
Dear Ms. McCarthy:

The City of Mountain View (the “City”) and LinkedIn Corporation (“LinkedIn”) entered into that certain Development Agreement dated March 10, 2019 (the “Development Agreement”) with respect to the LinkedIn Middlefield Campus project located at 1100 West Maude Avenue, 700 East Middlefield Road and 800 East Middlefield Road (the “Project”). Each initially capitalized term that is not defined in this letter has the meaning given such term in the Development Agreement.

Section 1.3 of the Development Agreement provides for an initial Term of seven years from the Effective Date and gives LinkedIn with the right to extend the Term for an additional three years if a certificate of occupancy has been issued for at least one building in the Project and LinkedIn delivers $150,000 to the City prior to the expiration of the Term. LinkedIn received a certificate of occupancy for Building 1 in the Project on December 21, 2021.

LinkedIn will remit payment to The City of Mountain View by wire transfer in the amount of $150,000. LinkedIn hereby exercises its right to extend the Term for such three-year period.

The Effective Date occurred, and the Term of the Development Agreement commenced, on January 10, 2019. By letter dated May 29, 2020, we notified the City that, in accordance with Section 6.3 of the Development Agreement, the Term was extended for 48 days, to February 27, 2026, due to the pandemic-related moratorium on construction imposed last year. With the additional three-year extension exercised by this letter, the Term of the Development Agreement will now expire on February 27, 2029.

Please contact me if you have any questions.

Sincerely,
Brett Hautop
Vice President, Workplace
DocuSign Envelope ID: 84AED7C0-11F3-4002-90EE-732B84FACE53 ATTACHMENT 4 176
1000 W. Maude Avenue, Sunnyvale, CA 94085
cc:

Office of the City Attorney
City of Mountain View
500 Castro Street
P.O. Box 7540
Mountain View, CA 94039-7540
Attn: City Attorney
Community Development Department
City of Mountain View
500 Castro Street
P.O. Box 7540
Mountain View, CA 94039-7540
Attn: Assistant City Manager/Community Development Director Paul Hastings LLP
515 South Flower Street, 25th Floor
Los Angeles, CA 90071
Attn: Mitchell B. Menzer
DocuSign Envelope ID: 84AED7C0-11F3-4002-90EE-732B84FACE53 177
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City of Mountain View
Legislation Text

CITY HALL
500 CASTRO STREET
File #: 206403, Version: 1
Interim Urgency Ordinance for Detention or Custodial Facilities Adopt an Urgency Ordinance of the City of Mountain View Establishing a Temporary Moratorium on the Filing, Acceptance, Processing, or Approval of Applications for, and the Establishment or Operation of, Detention or Custodial Detention Facilities and Custodial Processing Facilities Pending Study of Appropriate Zoning and Land Use Regulations.

City of Mountain View Page 1 of 1 Printed on 10/8/2026
powered by Legistar™233
DATE: October 13, 2026
CATEGORY: Public Hearing
DEPT.: City Attorney
TITLE: Interim Urgency Ordinance for Detention
or Custodial Facilities

RECOMMENDATION
Adopt an Urgency Ordinance of the City of Mountain View Establishing a Temporary Moratorium on the Filing, Acceptance, Processing, or Approval of Applications for, and the Establishment or Operation of, Detention or Custodial Detention Facilities and Custodial Processing Facilities Pending Study of Appropriate Zoning and Land Use Regulations.

SUMMARY
A February 13, 2026, overview of ICE's Detention Reengineering Initiative described a nationwide plan to expand and centralize detention capacity through eight large-scale detention centers, regional processing centers, and the acquisition of 10 existing facilities, with activation targeted by November 30, 2026. Consistent with this effort, the Department of Homeland Security acquired the Otay Mesa Detention Center in San Diego County and the California City Detention Facility in Kern County. These developments represent a substantial federal expansion of detention capacity, including in California, with direct implications for communities like Mountain View whose residents, workers, and families contribute to the cultural, social, and economic fabric of the region.

In June 2026, the State of California and Santa Clara County filed a lawsuit challenging a proposed immigration detention and processing facility on an approximately 25-acre site near Gilroy. The lawsuit claims that the federal government did not complete the required environmental review, coordinate with state and local agencies, follow the property's land use restrictions, or provide adequate information about the facility's purpose, size, and capacity. On September 11, 2026, a federal judge temporarily stopped further construction and directed the parties to propose terms describing what work must remain on hold while the case continues. Mountain View joined the amicus brief supporting that lawsuit, standing alongside Palo Alto, San José, Alameda, Hollister, and the Counties of San Mateo, Monterey, and Santa Cruz.

Concerns raised regarding the Gilroy site include the conversion of protected agricultural land; effects on sensitive species and habitat; potential hazardous-material contamination; and 234
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impacts on roads, wastewater, drinking-water, and other infrastructure. Additional concerns include whether a facility characterized as an administrative office with short-term holding capacity could function as a de facto longer-term detention facility, potentially resulting in overcrowding, extended confinement, inadequate conditions, and increased demands on local services. The City is also mindful that increased enforcement activity near such facilities has been shown to heighten fear among community members, fearthat can deter residents from accessing City services, reporting crimes, or engaging in civic life, undermining the public safety and community trust that Mountain View has worked to build.

Mountain View has long been committed to protecting its diverse community. In 2017, the City Council adopted "Community for All" as a Council Strategic Priority, reaffirmed in the Fiscal Years 2025–27 Work Plan, to promote strategies that protect vulnerable populations and preserve the City's socioeconomic and cultural diversity. In June 2026, the Council adopted Council Policy A24, prohibiting the use of City-owned or City-controlled property as a staging area, processing location, or operations base for civil immigration enforcement purposes, joining Santa Clara County, the Valley Transportation Authority, and the cities of Campbell, Santa Clara, San José, and Sunnyvale in adopting similar protections.

On September 8, 2026, the City Council unanimously directed staff to research land use regulations prohibiting detention centers and to bring forward an urgency ordinance placing a temporary moratorium on detention centers, or other appropriate action, as soon as practicable.

That direction included reviewing the existing zoning code, consulting with neighboring cities, examining San José's approach, and addressing concerns about federal land (such as Moffett Field).

Congressman Liccardo has encouraged Bay Area jurisdictions to consider interim zoning controls, particularly where detention and processing facilities are not already expressly defined and regulated, given the possibility that federal agencies may pursue additional sites in Northern California. The recent court order temporarily halting construction at the proposed site near Gilroy heightens this concern, as federal agencies may evaluate alternative locations in the region. Once a lease, option, or comparable site commitment is in place, a jurisdiction's ability to adopt effective interim controls may be constrained. The City is therefore bringing forward this interim urgency ordinance to preserve the status quo while staff evaluates potential land-use, environmental, public-health, and safety impacts and develops options for permanent regulations through the regular public-review process. Other Bay Area jurisdictions are similarly evaluating interim and permanent land-use controls.
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ANALYSIS & IMPACT
Existing City Regulations
The City’s Zoning Ordinance, codified in Chapter 36 of the Mountain View City Code, does not expressly define detention or custodial detention facilities or custodial processing facilities. While the City’s permissive zoning structure generally prohibits uses not listed as permitted or conditionally permitted, the absence of a clear definition and classification creates uncertainty and the possibility that a proposal could be characterized under a broader use category before the City completes a comprehensive policy review. Recent events show that, without appropriate land-use regulations, detention and processing proposals may advance on accelerated timelines and with limited notice to local governments.

The construction of new or conversion of existing buildings or properties to detention or custodial detention facilities or custodial processing facilities has the potential to cause significant environmental impacts, strain local infrastructure, create zoning and land-use conflicts, and adversely affect public health, safety, and well-being. Without an interim moratorium, an application could be submitted and asserted to fall within an existing use classification before the City determines whether additional standards are necessary. The moratorium would provide a limited study period to evaluate possible approaches to use. The interim urgency ordinance would not predetermine the content of any permanent regulation. Its purpose is to preserve the status quo while staff completes the analysis and returns through the ordinary public-review process with options for Council consideration.

Interim Urgency Ordinance
Government Code Section 65858, City Charter Section 514, and the City’s Zoning Ordinance Section 36.58.05 authorize the City Council to adopt an urgency ordinance when a current and immediate threat to public health, safety, or welfare exists, and approval of additional permits or entitlements would actualize the public danger. The proposed ordinance includes findings that, while the City studies the issues and develops appropriate regulations, allowing private property to be used for a detention or custodial detention facility or a custodial processing facility would create the public health, safety, and welfare risks described in the ordinance. A temporary moratorium is therefore necessary to preserve the status quo during the study period. A vote of 4/5 of the City Council (6 members) is required for the adoption of the proposed interim urgency ordinance, and it would take effect immediately.

Covered Uses and Definitions
To prevent circumvention through terminology or a broader use classification, the ordinance defines a “covered use” as any detention or custodial detention facility or custodial processing facility, whether proposed as a principal, accessory, temporary, intermittent, or component use 236
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and regardless of the name used to characterize it. The ordinance would define the following additional terms:
• Detention or custodial detention facility: Any building, structure, property, or land used to confine, detain, hold, house, maintain custody of, or otherwise restrict the movement of one or more persons under governmental authority or an arrangement with a governmental entity, whether temporarily, overnight, or for a longer period. The definition includes jails, prisons, detention centers, holding or confinement facilities, correctional facilities, civil or immigration detention facilities, juvenile detention facilities, and substantially similar uses.
• Custodial processing facility: Any building, structure, property, or land used primarily to receive, admit, book, register, fingerprint, photograph, search, screen, interview, evaluate, classify, stage, transfer, transport, release, or otherwise process persons who are in custody or being taken into custody. The definition applies even if persons are held only temporarily, no overnight accommodations are provided, or the facility is described as an office, field office, intake center, reporting center, transfer center, transportation center, or similar use. • Operator: Any public agency or private entity that owns, leases, manages, controls, staffs, funds, contracts for, or operates a covered use.
• Person in custody: A person whose freedom of movement is restrained under actual or asserted governmental authority, including a person who is detained, confined, arrested, transported under restraint, required to remain at a facility, or not free to leave without authorization.

Temporary Moratorium
This interim urgency ordinance would remain in effect for 45 days from its adoption or until November 27, 2026. During the ordinance’s effective period, the City would not accept, process, deem complete, review, approve, or issue any application, permit, certificate of occupancy, business license, similar-use determination, or other approval for a covered use. No person or entity could establish, commence, locate, convert property to, expand, or operate a covered use within the City. A covered use could not be recharacterized as a governmental, professional, or administrative office; a public, quasi-public, institutional, emergency, or transportation use; or another broader classification to avoid the moratorium.

Limited Exclusions
The moratorium would not apply to routine law-enforcement activities, lawful restrictions incidental to medical or residential care, ordinary supervision in schools and childcare settings, 237
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offices or hearing locations without a custodial component, or transportation through the City that does not involve detention or processing within the City.

Study of Permanent Regulations
The City is studying the issues and will bring forward land-use regulations governing the use and/or a citywide prohibition in the near future. The Environmental Planning Commission would review any proposed zoning ordinance and provide its recommendation to the City Council. If the regular public-review process cannot be completed within the initial 45-day period, staff will return to the City Council to request an extension of the interim urgency ordinance, as permitted by state law. The City Council may extend the interim urgency ordinance by a maximum of twenty-two months and 15 days.

FISCAL IMPACT
No anticipated fiscal impact.

LEVINE ACT
California Government Code Section 84308 (also known as the Levine Act) prohibits city officials from participating in any proceeding involving a “license, permit, or other entitlement for use” if the official has received a campaign contribution exceeding $500 from a party, participant, or agent of a party or participant within the last 12 months. The Levine Act is intended to prevent financial influence on decisions that affect specific, identifiable persons or participants. For more information see the Fair Political Practices Commission website: www.fppc.ca.gov/learn/pay-toplay-limits-and-prohibitions.html Please see below for information about whether the recommended action for this agenda item is subject to or exempt from the Levine Act.

EXEMPT FROM THE LEVINE ACT
☒ General policy and legislative actions

ALTERNATIVES

1. Modify the proposed interim urgency ordinance.

2. Do not adopt the proposed interim urgency ordinance.

3. Provide other direction.
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PUBLIC NOTICING
Agenda posting. The ordinance was published at least two days prior to adoption in accordance with City Charter Section 522.

Prepared by:

Jannie Quinn
Interim City Attorney
Mitesh Bhakta
Senior Assistant City Attorney
Celena Chen
Senior Assistant City Attorney
Attachment: 1. Interim Urgency Ordinance
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Attachment 1
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ORDINANCE NO.

AN URGENCY ORDINANCE OF THE CITY OF MOUNTAIN VIEW

ESTABLISHING A TEMPORARY MORATORIUM ON THE FILING, ACCEPTANCE, PROCESSING, OR

APPROVAL OF APPLICATIONS FOR, AND THE ESTABLISHMENT OR OPERATION OF, DETENTION

OR CUSTODIAL DETENTION FACILITIES AND CUSTODIAL PROCESSING FACILITIES PENDING

STUDY OF APPROPRIATE ZONING AND LAND USE REGULATIONS
WHEREAS, the Department of Homeland Security “ICE Detention Reengineering Initiative” directive dated February 13, 2026, outlined the acquisition and development of eight large-scale detention centers, sixteen processing sites, and the acquisition of ten turnkey facilities; the directive asserted Immigration and Customs Enforcement (“ICE”) intended to have all facilities active by November 30, 2026; and
WHEREAS, United States Immigration and Customs Enforcement has stated that California detention centers are “crucial to ICE’s detention network on the West Coast,” and recently acquired two facilities in California, the Otay Mesa and California City facilities; and WHEREAS, Santa Clara County and the State of California have filed a lawsuit seeking to enjoin the Department of Homeland Security from constructing a detention or custodial detention facility outside of Gilroy that could hold up to 150 detainees, citing significant environmental impacts, improper zoning, and failure to cooperate with state and local governments; and
WHEREAS, the United States District Court for the Northern District of California recently issued a preliminary injunction halting construction while the litigation proceeds, which may increase pressure on federal agencies and their contractors to identify additional or alternative sites elsewhere in the region; and
WHEREAS, detention or custodial detention facilities and custodial processing facilities may generate traffic associated with employees, service providers, transportation operations, visitors, intake, transfer, and release activities and may require local traffic management, emergency response, crowd management, or other municipal services during demonstrations, public gatherings, or facility-related incidents; and
WHEREAS, local municipalities have not been afforded the opportunity to evaluate issues surrounding detention or custodial detention facilities and custodial processing facilities and provide input, resulting in some local jurisdictions turning to litigation after development activity was already underway; and
WHEREAS, the City's existing zoning regulations do not comprehensively address potential impacts of detention and custodial facilities, especially those constructed on an accelerated timeline; and
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WHEREAS, the City of Mountain View needs time to analyze and determine how best to revise its Zoning Code and accompanying regulations to address the potential establishment or operation of detention or custodial detention facilities and custodial processing facilities; and WHEREAS, because the City’s existing zoning regulations do not currently define detention and facilities and custodial processing facilities or contain development and operational standards for detention or custodial detention facilities and custodial processing facilities, an application could be submitted and asserted to fall within an existing permitted land use classification before the City completes its study; the processing or approval of such an application could establish or authorize a use without standards addressing its security, emergency-response, circulation, intake, release, transfer, infrastructure, access, and land-use compatibility characteristics; and
WHEREAS, the City Council directs City staff to study contemplated amendments to the City’s zoning regulations addressing detention or custodial detention facilities and custodial processing facilities, including possible definitions, use classifications, locational standards, development and operational standards, discretionary review requirements, or a citywide prohibition, and intends that this study be completed within a reasonable time; and WHEREAS, Government Code Section 65858 authorizes a city, by a four-fifths vote, to adopt a 45-day interim urgency ordinance prohibiting uses that may conflict with a zoning proposal the City is studying or intends to study within a reasonable time; and WHEREAS, Mountain View City Charter Section 514 authorizes the City Council to adopt ordinances on an emergency basis by at least five affirmative votes if such emergency ordinance contains a statement of the reasons for its urgency; and WHEREAS, Mountain View City Code Section 36.58.05 defines urgency to include an ordinance which may be needed to control such uses or structures that compromise the community's health, safety or welfare; and
WHEREAS, the City Council intends this interim urgency ordinance only to preserve the status quo during the study period and not to determine the substance of the permanent regulations, if any, that may later be considered through the ordinary public review process; now therefore,
THE CITY COUNCIL OF THE CITY OF MOUNTAIN VIEW DOES HEREBY ORDAIN AS FOLLOWS:

Section 1. Findings and Declarations.

The City Council finds, pursuant to Government Code Section 65858, City Charter Section 514, and Zoning Code Section 36.58.05 that the facts set forth in the recitals establish a current and immediate threat to the public health, safety, and welfare, and that without a moratorium prohibiting use of private property as a detention or custodial detention facility or custodial processing facility while these issues and concerns are being examined and appropriate 241
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regulations are being developed, there remains a current and immediate threat that the use of private property as a detention or custodial detention facility or custodial processing facility will result in the public health, safety and welfare harms described herein.

Section 2. Definitions. For the purposes of this Ordinance, the following terms shall have the meanings ascribed thereto:

1. “Covered Use” means any detention or custodial detention facility or custodial processing facility, whether proposed as a principal, accessory, temporary, intermittent, or component use, regardless of its formal designation or characterization.

2. “Custodial processing facility” means any building, structure, portion of a building or structure, property, or land used or intended to be used primarily for one or more of the following activities:
a. Receiving, admitting, booking, registering, fingerprinting, photographing, searching, screening, interviewing, evaluating, or classifying persons who are in custody or are being taken into custody;
b. Determining the detention, release, transfer, placement, transportation, removal, or custodial status of persons;
c. Temporarily holding, staging, assembling, or maintaining custody of persons before or after transport, transfer, release, adjudication, or placement; or d. Coordinating, directing, dispatching, or administering custodial intake, detention, confinement, transportation, transfer, or release operations from the premises.

A custodial processing facility includes a facility that conducts the described activities even if persons are held only temporarily, the facility does not provide overnight accommodations, or the operator characterizes the facility as an office, administrative office, field office, intake center, processing center, reporting center, transfer center, transportation center, or other similar use.

3. “Detention or custodial detention facility” means any building, structure, portion of a building or structure, property, or land used or intended to be used to confine, detain, hold, house, maintain custody of, or otherwise restrict the freedom of movement of one or more persons under governmental authority or pursuant to a contract or other arrangement with a governmental entity, whether on a temporary, short-term, overnight, or longer-term basis. A detention or custodial detention facility includes, but is not limited to, a jail, prison, detention center, detention facility, holding facility, confinement facility, correctional facility, civil detention facility, immigration detention facility, juvenile detention facility, temporary holding facility, or other substantially similar use, regardless of the name or terminology used to describe the facility.
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4. “Operator” means any public agency, private person, corporation, partnership, limited liability company, nonprofit organization, contractor, subcontractor, or other entity that owns, leases, manages, controls, staffs, funds, contracts for, or operates a detention or custodial detention facility or custodial processing facility.

5. “Person in custody” means a person whose freedom of movement is restrained under actual or asserted governmental authority, including a person who is detained, confined, arrested, transported under restraint, required to remain at a facility, or not free to leave the facility without authorization.

SECTION 3. Temporary Moratorium. During the effective period of this interim urgency ordinance:

1. No application, request, or other submittal for a covered use shall be filed with or accepted by the City.

2. The City shall not process, deem complete, review, act upon, approve, conditionally approve, or issue any building permit, certificate of occupancy, business license, administrative approval, similar-use determination, or other permit, approval, license, or land use entitlement for a covered use.

3. No person or entity shall establish, commence, locate, convert property to, expand, or operate a covered use within the City.

4. No covered use shall be treated as a governmental office, professional office, administrative office, public or quasi-public use, institutional use, emergency facility, transportation use, or other broader use classification for purposes of avoiding this moratorium.

SECTION 4. Limited Exclusions. This interim urgency ordinance does not apply to: (1) temporary restraint or custody by the Mountain View Police Department incidental to an arrest, investigation, emergency response, transportation, or transfer; (2) a licensed hospital, medical facility, residential care facility, or behavioral health facility that temporarily limits a patient's movement as authorized by law and incidental to care; (3) ordinary supervision by a school, childcare facility, or residential care facility; (4) a judicial or administrative hearing location without a detention or custodial detention facility, holding, intake, or custodial processing component; (5) a general governmental, legal, social-service, or professional office that does not conduct custodial detention, holding, intake, transfer, staging, or processing; or (6) transportation through the City when no person is received, detained, held, processed, staged, transferred, or released at a location within the City.

SECTION 5. Study of Zoning and Land Use Regulations.

City staff is directed to study and develop options for an appropriate zoning and land use response to covered uses, which may include definitions, use classifications, locational standards, development and operational standards, discretionary review requirements, or a citywide prohibition. Any permanent regulation shall be considered separately in accordance with 243
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applicable notice, hearing, and environmental review requirements. No language in this interim urgency ordinance commits the City Council to adopt a particular permanent regulation.

SECTION 6. CEQA. Pursuant to California Code of Regulations section 15061(b)(3), this urgency ordinance is not subject to the California Environmental Quality Act (“CEQA”) because it can be seen with certainty that the temporary moratorium, which preserves the status quo and does not authorize construction or development, has no possibility of causing a significant effect on the environment.

SECTION 7. Term and Effective Date. This interim urgency ordinance shall take effect immediately upon adoption pursuant to Government Code Sections 65858(a), Mountain View City Charter Section 514, and Government Code Section 36937(b) and shall remain in effect for 45 days from the date of adoption, unless repealed or extended by the City Council in accordance with Government Code Section 65858.

SECTION 8. Ordinance not codified. This Ordinance shall not be codified in the Mountain View City Code.

SECTION 9. Severability. If any section, subsection, sentence, clause, or phrase of this ordinance is for any reason held to be unconstitutional, such decision shall not affect the validity of the other remaining portions of this ordinance. The City Council hereby declares that it would have passed this ordinance and each section, subsection, sentence, clause, or phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, or phrases be declared unconstitutional.

SECTION 10. Publication. Pursuant to Mountain View City Charter section 522, as soon as is reasonably practicable, but in no event after the fifteenth (15th) day after its adoption, the City Clerk shall publish the ordinance in the City’s official newspaper. – – – – – – – – – – –
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City of Mountain View
Legislation Text

CITY HALL
500 CASTRO STREET
File #: 205798, Version: 1
Downtown Business Improvement Area No. 1 and Allocation of 2027 Business Improvement Area No. 1 Revenues

1. Adopt a Resolution of the City Council of the City of Mountain View Confirming the Annual Report of the Downtown Mountain View Business Improvement Area No. 1 and Levying the Annual Benefit Assessments for Calendar Year 2027, to be read in title only, further reading waived (Attachment 1 to the Council report).

2. Authorize the City Manager or designee to allocate the 2027 revenues from Business Improvement Area No. 1 to the Mountain View Chamber of Commerce to fund a disbursement agreement with the Mountain View Chamber of Commerce to accomplish the purposes of the area.

City of Mountain View Page 1 of 1 Printed on 10/8/2026
powered by Legistar™245
DATE: October 13, 2026
CATEGORY: Public Hearing
DEPT.: Community Development
TITLE: Downtown Business Improvement Area
No. 1 and Allocation of 2027 Business
Improvement Area No. 1 Revenues

RECOMMENDATION

BACKGROUND
Mountain View has two Business Improvement Areas (BIAs) originally created by the downtown businesses and Downtown Business Association (DBA). The 1983 Business Improvement Area, BIA No. 1, includes the entire length of Castro Street (from West Evelyn Avenue to El Camino Real) and some side streets. BIA No. 1 fees are based upon the type of business, specifically restaurant, retail, and professional (i.e., office). The 1991 Business Improvement Area, BIA No. 2, includes the 100, 200, and 300 blocks of Castro Street, and the fees are based upon type of business (restaurant, retail, or professional) and size of business (square feet). Businesses within both BIAs pay both fees, and the total BIA revenues are then allocated to the Mountain View Chamber of Commerce (Chamber). The Chamber utilizes BIA revenues for promoting the downtown, coordinating special events, and providing business advocacy.

ANALYSIS
State law requires the annual renewal of both BIAs go through a public meeting as well as a public hearing to levy the assessments and authorize the allocation of revenues. At the first public meeting on September 8, 2026 (Attachment 2), the City Council unanimously approved (Vice Mayor Clark and Councilmember Hicks abstained) the preliminary approval of the assessments 246
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Allocation of 2027 Business Improvement Area No. 1 Revenues October 13, 2026

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and set the public hearing. At this public hearing, the Council will be asked to levy the BIA assessment and allocate the 2027 revenues from BIA No. 1 to the Chamber to fund assessment activities in 2027. The Chamber would utilize allocated funds for 2027 pursuant to the disbursement agreement terms. After the Council takes final action, BIA assessment amounts will be included with business license renewal notices and sent to businesses located within the BIA boundaries in November.

FISCAL IMPACT
All 300-plus downtown businesses are included in BIA No. 1 and are assessed annually at $50 for professional businesses, $150 for retail businesses, and $200 for restaurants. The Chamber projects total 2027 assessment revenues of approximately $60,000, consisting of $45,000 from BIA No. 1 and $15,000 from BIA No. 2.

The assessment revenues are allocated to the Chamber to support downtown promotions, business advocacy, and event planning. The assessments for both areas are collected by the City as part of the business license process and will be due with the January 2027 business license renewals.

There is no proposed increase or other change to the assessment rates or methodology for 2027.

Please see below for information about whether the recommended action for this agenda item is subject to or exempt from the Levine Act.

SUBJECT TO THE LEVINE ACT
☒ Contract or franchise agreement
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Allocation of 2027 Business Improvement Area No. 1 Revenues October 13, 2026

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ALTERNATIVES

1. Do not adopt the resolution levying the BIA assessment. If the resolution is not adopted, the assessment would not be collected, and there would be no allocation of the BIA No. 1 2027 revenues to the Chamber. The Chamber would need to seek new funding or reduce its programming.

2. Provide other direction.

PUBLIC NOTICING
The renewal of the annual BIAs was presented at the Downtown Committee meeting on September 1, 2026. The Council meeting agenda and Council report were posted on the City’s website and announced on Channel 26 cable television. Notice of the public meeting and hearing was mailed to all businesses in the BIA No. 1 area and published in the San Jose Post Record.

Prepared by:

Toni Gomez
Economic Vitality Strategist
Amanda Rotella
Economic Vitality Manager
Approved by:

Christian Murdock
Community Development Director
Kimbra McCarthy
City Manager
CDD/AR-10-13-26CR
Attachments: 1. Resolution of Intention to Levy Assessments for BIA No. 1

2. September 8, 2026 Council Report
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Attachment 1
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CITY OF MOUNTAIN VIEW
RESOLUTION NO.

SERIES 2026

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MOUNTAIN VIEW

CONFIRMING THE ANNUAL REPORT OF THE DOWNTOWN MOUNTAIN VIEW BUSINESS IMPROVEMENT AREA NO. 1 AND
LEVYING THE ANNUAL BENEFIT ASSESSMENTS FOR CALENDAR YEAR 2027 WHEREAS, on October 25, 1983, the City Council held a duly noticed public hearing in the City Council Chambers, 500 Castro Street, Mountain View, California, and formed the Downtown Mountain View Business Improvement Area (BIA) No. 1, pursuant to Ordinance No. 21.83 and in accordance with Section 36500, et seq., of the California Streets and Highways Code; and WHEREAS, the City Council has reviewed and considered the Council report on BIA No. 1 and the proposed assessments and uses of revenues for 2027; and WHEREAS, the Mountain View Chamber of Commerce, acting as the Advisory Board to the City Council on BIA No. 1, has filed the required annual report on the use of funds generated by the assessments in 2026 and the proposed uses for 2027, and the City Council has reviewed and considered said report; and
WHEREAS, on September 8, 2026, the City Council held a duly noticed public meeting at which it declared its intention to levy and collect assessments within BIA No. 1 as authorized by California Streets and Highways Code Section 36530, et seq., and approved the report from the Mountain View Chamber of Commerce; and
WHEREAS, a notice of the proposed assessment has been published once in a newspaper of general circulation as required; and
WHEREAS, on October 13, 2026, the City Council held a duly noticed public hearing regarding the 2027 assessments and charges and the uses to which revenues shall be put, which, as recommended by the Advisory Board, are to remain unchanged from 2026; now, therefore, be it
RESOLVED: by the City Council of the City of Mountain View that:

1. The City Council hereby finds and determines that BIA No. 1 was established as a parking and business improvement area pursuant to California Streets and Highways Code Section 36500, et seq., with the boundaries as specified in the plan on file with the City Clerk. 249
-2- 7917v1

2. Pursuant to California Streets and Highways Code Section 36535, a public hearing was held on October 13, 2026 to hear all public comments, protests, and take final action as to the levying of the proposed assessments for BIA No. 1 for 2027.

3. The City Council has considered all public comments, oral and written, and hereby finds that there was no majority protest as defined in Streets and Highways Code Section 36500, et seq.

4. The boundaries of BIA No. 1 are generally described as all businesses located on Castro Street, between Evelyn Avenue to the north and El Camino Real to the south, as more particularly described in Exhibit A, attached hereto. All businesses within this area with a Castro Street address, excluding nonprofit organizations, are to be assessed as authorized in the Streets and Highways Code Section 36500, et seq., and as set forth herein. Said boundaries are unchanged from the boundaries established by Ordinance No. 21.83 on October 11, 1983.

5. Revenue from BIA No. 1 is to be used as follows:
a. Promotion of public events which are to take place on or in public places in the area;
b. Decoration of any public place in the area;
c. Furnishing of music in any public place in the area; and d. The general promotion of business activities within the area.

6. The City Council hereby confirms the annual report as filed by the Mountain View Chamber of Commerce and shall levy an annual benefit assessment for the 2027 calendar year on all businesses, trades, and professions, excluding nonprofit organizations, located within BIA No. 1 and collected with the annual City business license fee and are hereby established as the following amounts:

Type of Establishment Fee
Restaurants $200
Retail $150
Professional $50

7. The City Council hereby finds and determines that the businesses located within the aforesaid BIA No. 1 shall be benefited by the improvements and activities funded by the assessments to be levied pursuant to Ordinance No. 21.83.

8. The improvements and activities provided in BIA No. 1 will be funded by the levy of the assessments upon businesses’ registration or renewal of their business license for 2027. 250
-3- 7917v1
Revenues from the levy of the assessments within this area shall not be used to provide improvements or activities outside this area.

9. The City Council does hereby authorize the City Manager or designee to enter into a disbursement agreement with the Mountain View Chamber of Commerce, as Advisory Board of the BIA No. 1, for 2027 to disburse revenues from BIA No. 1 to accomplish the purposes of the area as set forth herein and in the referenced Council report and annual report and to accomplish the purposes of BIA No. 1.
– – – – – – – – – – –
CDD/AR-10-13-26r
Exhibit: A. Business Improvement Areas—Boundaries
251

W EL CAMINO REAL

CENTRAL EXPY

FRANKLIN ST

MERCY ST WILD CHERRY LN

PARK DR

CALIFORNIA ST

W EVELYN AVE

HIGH SCHOOL WAY

MIRAMONTE
AVE

VILLA ST

W DANA ST
LATHAM
ST

CHURCH ST

FAIRMONT AVE

W EVELYN AVE

PALMITA PL

LANE AVE

HOPE ST

LORETO ST

W DANA ST

VELARDE ST

YOSEMITE AVE

MERCY ST

SIERRA AVE

S OAK ST

FRONT LN

MINTON LN

PARK DR

BLOSSOM LN

WILD CHERRY LN

WILD CHERRY
LN

BRYANT ST
O
AK ST
C
ASTR

O ST CASTRO ST

S SHORELINE BLVD

BUSH ST BUSH ST

VIEW ST

HOPE ST
BLOSSO
M LN
City of Mountain View
± 500 Castro Street, Mountain View, CA 94039
For information only. The City of Mountain View does not warrant the accuracy of the information contained herein. © 09/20/2013 Business Improvement Districts
September 30, 2013
Business Improvement District #1
Business Improvement District #2
Exhibit A
252
City of Mountain View
Legislation Text

CITY HALL
500 CASTRO STREET
File #: 205799, Version: 1
Downtown Business Improvement Area No. 2 and Allocation of 2027 Business Improvement Area No. 2 Revenues

1. Adopt a Resolution of the City Council of the City of Mountain View Confirming the Annual Report of the Downtown Mountain View Business Improvement Area No. 2 and Levying the Annual Benefit Assessments for Calendar Year 2027, to be read in title only, further reading waived (Attachment 1 to the Council report).

2. Authorize the City Manager or designee to allocate the 2027 revenues from Business Improvement Area No. 2 to the Mountain View Chamber of Commerce to fund a disbursement agreement with the Mountain View Chamber of Commerce to accomplish the purposes of the area.

City of Mountain View Page 1 of 1 Printed on 10/8/2026
powered by Legistar™253
DATE: October 13, 2026
CATEGORY: Public Hearing
DEPT.: Community Development
TITLE: Downtown Business Improvement Area
No. 2 and Allocation of 2027 Business
Improvement Area No. 2 Revenues

RECOMMENDATION

BACKGROUND
Mountain View has two Business Improvement Areas (BIAs) originally created by the downtown businesses and Downtown Business Association (DBA), formerly the Central Business Association. The 1983 Business Improvement Area, BIA No. 1, includes the entire length of Castro Street (from West Evelyn Avenue to El Camino Real) and some side streets. BIA No. 1 fees are based upon the type of business, specifically restaurant, retail, and professional (i.e., office). The 1991 Business Improvement Area, BIA No. 2, includes the 100, 200, and 300 blocks of Castro Street, and the fees are based upon type of business (restaurant, retail, or professional) and size of business (square feet). Businesses within both BIAs pay both fees, and the total BIA revenues are then allocated to the Mountain View Chamber of Commerce (Chamber). The Chamber utilizes BIA revenues for promoting the downtown, coordinating special events, and providing business advocacy.

ANALYSIS
State law requires the annual renewal of both BIAs go through a public meeting as well as a public hearing to levy the assessments and authorize the allocation of revenues. At the first public meeting on September 8, 2026 (Attachment 2), the City Council unanimously approved (Vice 254
Downtown Business Improvement Area No. 2 and
Allocation of 2027 Business Improvement Area No. 2 Revenues October 13, 2026

Page 2 of 3 ends

Mayor Clark and Councilmember Hicks abstained) the preliminary approval of the assessments and set the public hearing. At this public hearing, the Council will be asked to levy the BIA assessment and allocate the 2027 revenues from BIA No. 2 to the Chamber to fund assessment activities in 2027. The Chamber would utilize allocated funds for 2027 pursuant to disbursement agreement terms. After the Council takes final action, BIA assessment amounts will be included with business license renewal notices and sent to businesses located within the BIA boundaries in November.

FISCAL IMPACT
Businesses in BIA No. 2 are assessed for BIA No.1 and an additional assessment of $25 to $175 for BIA No.2, depending on the square footage and type of business. The Chamber projects total 2027 assessment revenues of approximately $60,000, consisting of $45,000 from BIA No. 1 and $15,000 from BIA No. 2.

There is no proposed increase to the assessment rates or methodology for 2027.

Please see below for information about whether the recommended action for this agenda item is subject to or exempt from the Levine Act.

SUBJECT TO THE LEVINE ACT
☒ Contract or franchise agreement
255
Downtown Business Improvement Area No. 2 and
Allocation of 2027 Business Improvement Area No. 2 Revenues October 13, 2026

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ALTERNATIVES

1. Do not adopt the resolution levying the BIA assessment. If the resolution is not adopted, the assessment would not be collected, and there would be no allocation of the BIA No. 2 2027 revenues to the Chamber. The Chamber would need to seek new funding or reduce its programming.

2. Provide other direction.

Prepared by:

Toni Gomez
Economic Vitality Strategist
Amanda Rotella
Economic Vitality Manager
Approved by:

Christian Murdock
Community Development Director
Kimbra McCarthy
City Manager
CDD/AR-10-13-26CR-1
Attachments: 1. Resolution of Intention to Levy Assessments for BIA No. 2

2. September 8, 2026, Council Report
256
Attachment 1
-1- 7917v1

CITY OF MOUNTAIN VIEW
RESOLUTION NO.

SERIES 2026

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MOUNTAIN VIEW

CONFIRMING THE ANNUAL REPORT OF THE DOWNTOWN MOUNTAIN VIEW BUSINESS IMPROVEMENT AREA NO. 2 AND
LEVYING THE ANNUAL BENEFIT ASSESSMENTS FOR CALENDAR YEAR 2027 WHEREAS, on November 26, 1991, the City Council held a duly noticed public hearing in the City Council Chambers, 500 Castro Street, Mountain View, California, and formed the Downtown Mountain View Business Improvement Area (BIA) No. 2, pursuant to Ordinance No. 22.91 and in accordance with Section 36500, et seq., of the California Streets and Highways Code; and WHEREAS, the City Council has reviewed and considered the Council report on BIA No. 2 and the proposed assessments and uses of revenues for 2027; and WHEREAS, the Mountain View Chamber of Commerce, acting as the Advisory Board to the City Council on BIA No. 2, has filed the required annual report on the use of funds generated by the assessments in 2026 and the proposed uses for 2027, and the City Council has reviewed and considered said report; and
WHEREAS, on September 8, 2026, the City Council held a duly noticed public meeting at which it declared its intention to levy and collect assessments within BIA No. 2 as authorized by California Streets and Highways Code Section 36530, et seq., and approved the report from the Mountain View Chamber of Commerce; and
WHEREAS, a notice of the proposed assessment has been published once in a newspaper of general circulation as required; and
WHEREAS, on October 13, 2026, the City Council held a duly noticed public hearing regarding the 2027 assessments and charges and the uses to which revenues shall be put, which, as recommended by the Advisory Board, are to remain unchanged from 2026; now, therefore, be it
RESOLVED: by the City Council of the City of Mountain View that:

1. The City Council hereby finds and determines that BIA No. 2 was established as a parking and business improvement area pursuant to California Streets and Highways Code Section 36500, et seq., with the boundaries as specified in the plan on file with the City Clerk. 257
-2- 7917v1

3. The City Council has considered all public comments, oral and written, and hereby finds that there was no majority protest as defined in Streets and Highways Code Section 36500, et seq.

4. The boundaries of BIA No. 2 are generally described as all businesses located on Castro Street between Evelyn Avenue to the north and California Street to the south, including all businesses with street addresses numbered 100 through 399 inclusive, as more particularly described in Exhibit A, attached hereto. All businesses within this area with a Castro Street address number 100 through 399 inclusive, excluding nonprofit organizations, are to be assessed as authorized in Streets and Highways Code Sections 36500, et seq., and as set forth herein. Said boundaries are unchanged from the boundaries established by Ordinance No. 22.91 on December 10, 1991.

5. Revenue from BIA No. 2 is to be used as follows:
a. Promotion of public events which are to take place on or in public places in the area;
b. Decoration of any public place in the area;
c. Furnishing of music in any public place in the area; and d. The general promotion of business activities within the area. e. Other activities or improvements which benefit businesses located and operating in the Business Improvement Area.

6. The City Council hereby confirms the annual report as filed by the Mountain View Chamber of Commerce and shall levy an annual benefit assessment for the 2027 calendar year on all businesses, trades, and professions, excluding nonprofit organizations, located within BIA No. 2 and collected with the annual City business license fee and are hereby established as the following amounts, with reductions in certain rates:

Type of Establishment 0 to 2,999
Square Feet
3,000 to 7,999
Square Feet
8,000 Square Feet
and Up
Restaurants $125 $150 $175
Retail $75 $100 $125
Professional $25 $50 $50
258
-3- 7917v1

7. The City Council hereby finds and determines that the businesses located within the aforesaid BIA No. 2 shall be benefited by the improvements and activities funded by the assessments to be levied pursuant to Ordinance No. 22.91.

8. The improvements and activities provided in BIA No. 2 will be funded by the levy of the assessments upon businesses’ registration or renewal of their business license for 2027.

Revenues from the levy of the assessments within this area shall not be used to provide improvements or activities outside this area.

9. The City Council does hereby authorize the City Manager or designee to enter into a disbursement agreement with the Mountain View Chamber of Commerce, as Advisory Board of the BIA No. 2, for 2027 to disburse revenues from BIA No. 2 to accomplish the purposes of the area as set forth herein and in the referenced Council report and annual report and to accomplish the purposes of BIA No. 2.
– – – – – – – – – – –
CDD/AR-10-13-26r-1
Exhibit: A. Business Improvement Areas—Boundaries
259

W EL CAMINO REAL

CENTRAL EXPY

FRANKLIN ST

MERCY ST WILD CHERRY LN

PARK DR

CALIFORNIA ST

W EVELYN AVE

HIGH SCHOOL WAY

MIRAMONTE
AVE

VILLA ST

W DANA ST
LATHAM
ST

CHURCH ST

FAIRMONT AVE

W EVELYN AVE

PALMITA PL

LANE AVE

HOPE ST

LORETO ST

W DANA ST

VELARDE ST

YOSEMITE AVE

MERCY ST

SIERRA AVE

S OAK ST

FRONT LN

MINTON LN

PARK DR

BLOSSOM LN

WILD CHERRY LN

WILD CHERRY
LN

BRYANT ST
O
AK ST
C
ASTR

O ST CASTRO ST

S SHORELINE BLVD

BUSH ST BUSH ST

VIEW ST

CITY HALL
500 CASTRO STREET
File #: 206138, Version: 1
Energy Services Contract for Solar Photovoltaic Systems and Battery Energy Storage Project-Various Actions Adopt a Resolution of the City Council of the City of Mountain View: (1) Awarding an Energy Services Contract to SolarNorcal, LLC, Doing Business as Excite Energy, for the Design, Installation, and Commissioning of Solar Photovoltaic (PV) Systems at Four City Facilities: the Mountain View Public Library, City Hall, the Mountain View Center for the Performing Arts, and Rengstorff Park Aquatics Center (“Project Sites”), Including Roof Replacement Work at the Mountain View Public Library and the Mountain View Center for the Performing Arts, and a Battery Energy Storage System (Battery Storage) at the Rengstorff Park Aquatics Center, For a Total Amount Not to Exceed $3,945,750; (2) Finding That the Project Satisfies the Cost-Effectiveness Requirements of California Government Code Section 4217.12 for Energy Service Contracts; (3) Approving a Midyear Capital Improvement Program (CIP) Project, City Facilities Solar PV and Battery Storage, for the Design and Installation of Solar PV Systems at the Project Sites, Including Roof Replacement Work at the Mountain View Public Library and the Mountain View Center for the Performing Arts, and Battery Storage at Rengstorff Park Aquatics Center (Collectively, “Project”); (4) Transferring and Appropriating $2,600,000 From the General Non-Operating Fund, $1,400,000 From the CIP Reserve Fund, and $1,000,000 From the Sustainability Project CIP (Project 20-99) to Fund the New CIP Project; and (5) Finding That the Project is Exempt From the California Environmental Quality Act (CEQA), to be read in title only, further reading waived (Attachment 1 to the Council report). (Five Votes Required)
City of Mountain View Page 1 of 1 Printed on 10/8/2026
powered by Legistar™261
DATE: October 13, 2026
CATEGORY: Public Hearing
DEPT.: City Manager’s Office
TITLE: Energy Services Contract for Solar
Photovoltaic Systems and Battery Energy
Storage Project—Various Actions

RECOMMENDATION
Adopt a Resolution of the City Council of the City of Mountain View: (1) Awarding an Energy Services Contract to SolarNorcal, LLC, Doing Business as Excite Energy, for the Design, Installation, and Commissioning of Solar Photovoltaic (PV) Systems at Four City Facilities: the Mountain View Public Library, City Hall, the Mountain View Center for the Performing Arts, and Rengstorff Park Aquatics Center (“Project Sites”), Including Roof Replacement Work at the Mountain View Public Library and the Mountain View Center for the Performing Arts, and a Battery Energy Storage System (Battery Storage) at the Rengstorff Park Aquatics Center, For a Total Amount Not to Exceed $3,945,750; (2) Finding That the Project Satisfies the Cost-Effectiveness Requirements of California Government Code Section 4217.12 for Energy Service Contracts; (3) Approving a Midyear Capital Improvement Program (CIP) Project, City Facilities Solar PV and Battery Storage, for the Design and Installation of Solar PV Systems at the Project Sites, Including Roof Replacement Work at the Mountain View Public Library and the Mountain View Center for the Performing Arts, and Battery Storage at Rengstorff Park Aquatics Center (Collectively, “Project”); (4) Transferring and Appropriating $2,600,000 From the General Non-Operating Fund, $1,400,000 From the CIP Reserve Fund, and $1,000,000 From the Sustainability Project CIP (Project 20-99) to Fund the New CIP Project; and (5) Finding That the Project is Exempt From the California Environmental Quality Act (CEQA), to be read in title only, further reading waived (Attachment 1 to the Council report). (Five Votes Required)

BACKGROUND
Municipal Sustainability and Solar Energy
The City has incorporated solar energy into its municipal facilities as part of its ongoing sustainability efforts. Solar energy can reduce reliance on electricity from the utility grid, lower greenhouse gas emissions associated with City operations, and help manage long-term energy costs. Municipal facilities also provide an opportunity for the City to demonstrate the benefits of renewable energy investments and lead by example in the community. 262
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Solar photovoltaic (PV) systems are located at the California/Bryant Street parking garage, Shoreline Golf Pro Shop, Shoreline Maintenance Facility, Municipal Operations Center, Mountain View Senior Center, Mountain View Sports Pavilion, Whisman Sports Center, Rengstorff Park Aquatics Center, and Mountain View Community Center. The Mountain View Community Center solar PV system also includes a battery energy storage system (battery storage). The solar PV systems at the Mountain View Senior Center, Mountain View Sports Pavilion, and Whisman Sports Center were included in the Energy Services Contract approved by the City Council at a June 25, 2024 public hearing.

Inflation Reduction Act Funding Opportunity
The Inflation Reduction Act (IRA), enacted in 2022, established federal incentives to support investment in clean energy projects, such as solar PV installations. Through the IRA's Direct Pay provisions, eligible public agencies may receive payments comparable to the federal Investment Tax Credit (ITC) for qualifying clean energy projects. The City anticipates receiving approximately $1,527,418 in Direct Pay incentives for the recently completed solar projects at the Mountain View Senior Center, Mountain View Sports Pavilion, and Whisman Sports Center.

When the IRA was enacted in 2022, Direct Pay incentives for eligible solar PV and battery storage projects were expected to remain available through at least 2032, providing public agencies with a longer timeframe to plan and implement clean energy projects. However, federal legislation enacted in 2025 accelerated the phaseout of certain IRA clean energy incentives and shortened the eligibility period for qualifying solar projects. As a result, eligible solar PV projects now must be completed and placed into service by December 31, 2027, to qualify for Direct Pay incentives.

Battery storage projects remain eligible for Direct Pay incentives through December 31, 2032.

These changes have significantly reduced the time available for public agencies to develop and complete qualifying solar PV projects in order to receive Direct Pay incentives. The accelerated timeframe has created constraints for planning new solar installations at City facilities, resulting in careful consideration of the project delivery approaches needed to complete the project by the end of December 2027.

ANALYSIS
Proposed Solar PV and Battery Storage Systems
The proposed project (“Project”) would build on the City’s existing solar installations by adding solar PV systems at four sites: the Mountain View Public Library (Library), City Hall, the Mountain View Center for the Performing Arts (MVCPA), and additional solar PV capacity and battery storage at the Rengstorff Park Aquatics Center. The Project Sites were identified based on energy consumption, anticipated energy cost savings, available space, and technical feasibility. The 263
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preliminary locations and configurations of the installations at the Project Sites are shown in Attachment 2. The final locations, layouts, configurations, and related design details may be refined during final design and engineering to optimize system performance and address sitespecific conditions while remaining consistent with the approved Project scope. The goals of the Project are to increase onsite renewable energy generation, reduce electricity costs, and advance the City's sustainability goals.

Rengstorff Park Aquatics Center
At the Rengstorff Park Aquatics Center, the Project includes solar carports within the existing parking areas as well as battery storage. The battery storage system at the Rengstorff Park Aquatics Center will store excess solar energy for use during periods of high electricity demand, when utility rates are typically highest. The Rengstorff Park Aquatics Center is well-suited for battery storage due to its all-electric operations and significant energy needs, including pool heating.

Preliminary review indicates that approximately 10 to 12 small, newly planted trees located in the middle parking island at the Rengstorff Park Aquatics Center may be affected by the proposed solar carport improvements and may require removal. Staff anticipates being able to replant these recently established trees. Planting will be in accordance with City requirements and the final Project design, including consideration of appropriate locations outside of the solar carport footprint. Minor tree trimming or pruning may also be necessary at other locations to support the functionality and performance of the solar PV system.

City Hall, MVCPA, and Library
The solar PV systems at City Hall, MVCPA, and the Library will consist of rooftop panels and will be designed to accommodate future battery storage, providing flexibility to add storage as operational needs evolve, technology advances, or additional funding becomes available.

The Project also includes roof replacement work at two of the facilities – MVCPA and the Library.

Preliminary assessments identified that portions of the existing roofing systems at these facilities may require replacement during the anticipated 20-year operating life of the rooftop solar PV systems. Completing roof replacement before solar installation will allow the City to coordinate the improvements efficiently, minimize future disruption to the facility and solar energy production, achieve utility savings, and avoid costs associated with removing and reinstalling solar equipment if roof work were to be required after installation. 264
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Project Delivery Approach
Energy Services Contractor Selection Process
The City issued a Request for Proposals (RFP) on February 13, 2026, seeking qualified firms to provide design-build services for solar PV systems at the four Project Sites. The RFP also requested that each system be designed to be battery-ready, allowing for future integration of battery storage, and invited optional proposals for immediate installation of battery storage if financially advantageous to the City. Proposals were due on April 3, 2026, and the City received six proposals.

Proposals were evaluated based on the firms' relevant experience, technical qualifications, project approach, ability to meet the Project schedule, cost, and acceptance of the City's contract terms. Following evaluation of the written proposals, the four highest-ranked firms were invited to interviews, and reference checks were completed as part of the final evaluation process.

Based on the results of the evaluation, staff recommends awarding the Energy Services Contract to Excite Energy. Their proposal demonstrated a strong understanding of the Project, a technically sound approach, and successful experience delivering comparable design-build solar energy projects for public agencies. Excite Energy’s proposal was among the lowest-cost proposals received and ranked highest overall based on the evaluation criteria and provided the best overall value to the City.

Key Aspects of Excite Energy’s Proposal
Excite Energy's proposal includes the design, installation, and commissioning of the solar PV systems, solar carports, battery storage, and roof replacement work. The total energy services contract is $3,945,750, including $1,234,814 for roof replacement at the Library and MVCPA. The roof replacement work will be performed by a subcontractor to Excite Energy and is included in the energy services contract because completing the work before installation of the rooftop solar PV systems will avoid future costs associated with removing and reinstalling the solar equipment.

In addition to the $3,945,750 energy services contract, the proposal includes an initial two-year operations and maintenance (O&M) term for the solar PV and battery storage systems at a cost not to exceed $50,750. O&M services include system monitoring, preventive and corrective maintenance, and warranty support. Staff anticipates procuring the O&M services through a separate contract in accordance with applicable City procurement policies and procedures. The City may extend the O&M agreement for additional one-year periods, subject to future evaluation of system performance, operational needs, and available funding. 265
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Financial Analysis
Table 1 summarizes the anticipated Energy Services Contract costs, as well as the estimated IRA Direct Pay incentive.

Table 1: Estimated Energy Services Contract Costs
Category Estimated
Amount
Energy Services Contract (including Solar PV Systems, Battery Storage, Roof Replacement Work, and Contingency) $3,945,750
Estimated IRA Direct Pay Incentive (30-40% of eligible project costs) ($920,190) Net Project Cost $3,025,560
The financial analysis considers the Energy Services Contract cost, estimated electricity cost savings, O&M costs, and anticipated IRA Direct Pay incentives. The Project is eligible for IRA Direct Pay incentives, and staff expects to receive the proceeds after the Project is completed and placed into service and applicable federal requirements have been satisfied. The City may evaluate applying the incentive proceeds to reimburse or replenish eligible funding sources used for the Project, subject to applicable City policies and budgetary requirements.

Figure 1 illustrates the projected 20-year net savings cumulative over time by Project Site, incorporating Excite Energy’s proposed system sizes and costs (and not including roof replacement costs), anticipated IRA Direct Pay incentives, and projected O&M expenses. City Hall and MVCPA are analyzed together and shown as the Civic Center because the two facilities are served by a single PG&E account and meter.
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Figure 1: 20-Year Cumulative Net Savings for Proposed Solar and Battery Systems by Project Site (3.7% utility rate escalation)
As shown in Figure 2, the proposed solar and battery systems are projected to generate approximately $5.7 million in cumulative net savings for all proposed sites over 20 years. These savings reflect the anticipated energy cost savings and IRA Direct Pay incentives after accounting for the costs of the solar and battery systems, not including costs associated with the planned roof replacement and associated O&M expenses.

The analysis assumes an annual utility electricity rate increase of 3.7%, based on the annual average PG&E rate increase identified in the California Public Utilities Commission’s analysis referenced by Energy Toolbase. This assumption is used to estimate future electricity costs and the resulting savings from the Project.

Given the significant increases in PG&E electricity rates in recent years, staff also evaluated a 5% annual utility rate increase as a sensitivity analysis. The 5% assumption is consistent with the rate escalation assumption permitted under the Energy Conservation Assistance Act loan program and is intended to illustrate the potential impact of higher future electricity rate growth.

Under the 5% assumption, projected cumulative net savings would increase to approximately $6.9 million over 20 years.
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The cumulative net savings including the planned roof replacement costs and other City-incurred Project costs is $4.5 million. The roof replacements at the Library and MVCPA are necessary capital improvements that are being completed in conjunction with the solar installations to avoid future costs associated with removing and reinstalling rooftop solar equipment. When the roof replacement costs are incorporated into the overall economic analysis, the Project continues to demonstrate positive lifecycle economic benefits, as shown in Figure 2 and Table 2, and in more detail in Attachment 3.

Figure 2: 20-Year Cumulative Net Savings for Proposed Solar and Battery Systems – Total Project (3.7% utility rate escalation)
The solar PV and battery storage systems are also projected to generate additional savings beyond the 20-year analysis period, with many modern solar PV systems operating for 30 years or longer. As shown in Table 2, over a 30-year period, cumulative net savings from the solar PV and battery storage systems are projected to range from approximately $10.4 million to $15.1 million, depending on the utility rate escalation assumption and whether planned roof replacement costs are included.
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Table 2: Cumulative Net Savings (in Millions)
Project Savings Scenario
20 Years 30 Years

3.7% utility rate
escalation
5% utility rate
escalation

3.7% utility rate
escalation
5% utility rate
escalation
Excluding Roof Replacement $5.7M $6.9M $11.6M $15.1M
Including Roof Replacement $4.5M $5.7M $10.4M $13.9M
Note: Values represent cumulative net savings and assume annual utility-rate escalation of 3.7% or 5.0%, as indicated.

Energy Conservation Contracting
Staff recommends delivering the project using the Energy Conservation Contracting process authorized by California Government Code Sections 4217.10 through 4217.19. This procurement method allows public agencies to contract with qualified energy services contractors based on overall project value, including technical qualifications, project approach, lifecycle costs, schedule, and anticipated energy savings, rather than solely on the lowest responsive bid. For this Project, the Energy Conservation Contracting process also supports timely implementation necessary to preserve eligibility for available IRA Direct Pay incentives.

Required Government Code Findings
Prior to approving an energy services contract under Government Code Section 4217, the City Council must determine that the contract is in the City's best interests and that the anticipated cost of energy provided under the contract is less than the anticipated cost of energy the City would otherwise purchase in the absence of the Project.1 These findings can be made because:
• The Project was competitively procured through the Energy Conservation Contracting process and represents the best overall value to the City; • Projected electricity cost savings exceed the cost of electricity that would otherwise be purchased from the utility;
• Anticipated IRA Direct Pay incentives further reduce the City's overall project cost; and 1 Government Code Section 4217 also requires findings before a public agency may enter into a ground lease that is necessarily related to the energy service contract. Here, the project does not involve a necessarily related facility ground lease.
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• The financial analysis demonstrates positive lifecycle economic benefits over the expected useful life of the Project, as summarized in Figure 1, 20-Year Cumulative Net Savings by Project Site, presented earlier in this report. The solar and battery components of the Project provide positive long-term savings. As mentioned above, although including planned roof replacement affects the timing and amount of cumulative savings, the Project continues to provide positive lifecycle economic benefits. A detailed 20-year cumulative net savings analysis, including the impact of planned roof replacement, is provided in Attachment 3.

Accordingly, staff recommends that the City Council make the findings required by Government Code Section 4217.12, as reflected in the attached resolution.

Environmental Clearance
In accordance with the requirements of the California Environmental Quality Act (CEQA), the solar PV systems component of the Project is statutorily exempt pursuant to Public Resources Code Section 21080.35 as an installation of a solar energy system on the roof of an existing building or at an existing parking lot. On a separate and independent basis, the solar PV systems and battery energy storage system components of the Project are exempt pursuant to Cal. Code Regs. tit. 14 (CEQA Guidelines) section 15301 (Class 1, Existing Facilities), as minor alterations of existing public structures or facilities involving negligible or no expansion of existing or former use. On another separate and independent basis, the solar PV systems are exempt pursuant to CEQA Guidelines section 15303 (Class 3, New Construction or Conversion of Small Structures), as it is a new small structure or conversion of existing small structures from one use to another where only minor modifications are made in the exterior of the structure. Further, the roof replacement work at the Library and MVCPA is categorically exempt pursuant to CEQA Guidelines Section 15302 (Class 2, Replacement or Reconstruction). The roof replacement work consists of the replacement of existing roofing systems with similar improvements at existing City facilities and does not involve expansion of existing uses.

The Project consists of the installation of Solar PV Systems at four existing City facilities—a battery storage system, and roof replacement work. The Project will involve improvements to existing City facilities and does not involve expansion of existing uses or result in significant environmental impacts. Accordingly, staff recommends that the City Council find the Project exempt from CEQA pursuant to the statutory and categorical exemptions identified above.

Project Schedule
If approved by the City Council, the Project will enter the design phase in 2026, with construction to begin early to mid-2027. The project schedule has been developed to prioritize completion of the solar PV systems, including roof replacement work, by December 31, 2027, preserving the 270
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City's eligibility for IRA Direct Pay incentives while allowing for coordination of the battery storage system at the Rengstorff Park Aquatics Center at a later date.

FISCAL IMPACT
The total estimated cost of the Project is $5,000,000. This includes $3,945,750 for the Energy Services Contract with Excite Energy, $50,750 for the initial two-year O&M term, and approximately $1,003,500 for other Project costs, including professional services, project management, permitting and fees, construction inspections, City administration, and contingency. Staff anticipates executing a separate contract, in accordance with applicable City procurement policies and procedures, for the O&M services.

The Project is anticipated to qualify for approximately $920,190 in federal Inflation Reduction Act Direct Pay incentives, which would reduce the City’s net project cost to approximately $4.1 million. The Project is also expected to generate ongoing electricity cost savings over the useful life of the solar PV and battery storage systems.

Staff recommends establishing a new CIP project, City Facilities Solar PV and Battery Storage, and transferring and appropriating $2,600,000 from the General Non-Operating Fund, $1,400,000 from the CIP Reserve Fund, and $1,000,000 from the Sustainability Project CIP (Project 20-99), for a total appropriation of $5,000,000. Sufficient funds are available from these existing funding sources, and no new funding is required.

As the Project advances, staff will review certain City-incurred costs, including permitting, fees, and related project costs, and City administration costs, to determine whether they can be reduced or eliminated for this City project. Any resulting savings would reduce the Project's funding requirement only where the cost and associated funding are within the same fund.

The CIP appropriation request is summarized in Table 3.

Table 3: CIP Appropriation Request
Description Cost
Energy Services Contract $3,945,750
Operations and Maintenance Services (Initial Two-Year Term) $50,750 Professional services $217,560
Project management $237,083
Permitting, fees, and related project costs $65,000
Construction inspections $120,000
City administration $299,624
Contingency $64,233
Total CIP Appropriation Request $5,000,000
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Please see below for information about whether the recommended action for this agenda item is subject to or exempt from the Levine Act.

SUBJECT TO THE LEVINE ACT
☒ Contract or franchise agreement

CONCLUSION
The Project includes the design and construction of rooftop solar PV systems at City Hall, the MVCPA, and the Library; solar carports and battery storage at the Rengstorff Park Aquatics Center; and associated roof replacement work at MVCPA and the Library necessary to support the installation and expected useful life of the Rooftop Solar PV Systems. The Project will be funded through transfers and appropriations from the General Non-Operating Fund, CIP Reserve Fund, and Sustainability Project CIP to fund the Energy Services Contract, two years of operations and maintenance, and additional City-incurred Project costs.

The Project aligns with the City’s sustainability and climate action goals and is projected to generate $5.7 million in cumulative net utility cost savings over 20 years from the solar PV and battery storage, after accounting for associated project and O&M costs. The inclusion of planned roof replacement work affects the overall Project savings; however, the combined solar, battery, and roof replacement project continues to provide positive lifecycle economic benefits. Based on the anticipated energy cost savings, available project incentives, and lifecycle cost analysis, the Project is expected to provide long-term financial benefits to the City. The Project also satisfies the requirements of California Government Code Section 4217 for use of an energy conservation contract, as the anticipated cost of energy provided by the Project, including associated costs over the contract term, is expected to be less than the anticipated marginal cost of energy that would otherwise be consumed by the City.
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ALTERNATIVES

1. Do not adopt the resolution and defer the Project. This alternative would forego eligibility for currently available federal Inflation Reduction Act Direct Pay incentives and delay the anticipated energy savings and facility improvements.

2. Do not adopt the resolution and direct staff to pursue an alternative project delivery and/or funding approach, such as a traditional Public Works design-bid-build process or funding the Project through a future Capital Improvement Program process. This alternative would delay implementation and may affect Project costs, anticipated energy savings, and the City’s ability to maximize available federal incentives.

3. Modify the resolution to authorize a reduced project scope, such as limiting solar PV and/or battery storage improvements to select sites, or deferring certain improvements. This alternative would reduce the initial funding requirement but may also reduce anticipated energy savings, resiliency benefits, and available federal incentives.

4. Provide other direction.

PUBLIC NOTICING
Agenda posting and a notice of the public hearing was published in The Daily Journal on September 29, 2026 as required by Government Code Section 4217.

Prepared by:

Lauren Anderson
Sustainability Analyst II
Rebecca Lucky
Sustainability Manager
Approved by:

Kimbra McCarthy
City Manager
Attachments: 1. Resolution

2. Preliminary Locations for Solar PV and Battery Energy Storage Systems

3. Projected 20-Year Cumulative Net Savings
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CITY OF MOUNTAIN VIEW
RESOLUTION NO.

SERIES 2026
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MOUNTAIN VIEW:
(1) AWARDING AN ENERGY SERVICES CONTRACT TO SOLARNORCAL, LLC, DOING BUSINESS AS

EXCITE ENERGY, FOR THE DESIGN, INSTALLATION, AND COMMISSIONING OF SOLAR PHOTOVOLTAIC (PV) SYSTEMS AT FOUR CITY FACILITIES: THE MOUNTAIN VIEW PUBLIC LIBRARY,

CITY HALL, THE MOUNTAIN VIEW CENTER FOR THE PERFORMING ARTS, AND RENGSTORFF PARK AQUATICS CENTER (“PROJECT SITES”), INCLUDING ROOF REPLACEMENT WORK AT THE

MOUNTAIN VIEW PUBLIC LIBRARY AND THE MOUNTAIN VIEW CENTER FOR THE PERFORMING

ARTS, AND A BATTERY ENERGY STORAGE SYSTEM (BATTERY STORAGE) AT THE RENGSTORFF PARK AQUATICS CENTER, FOR A TOTAL AMOUNT NOT TO EXCEED $3,945,750; (2) FINDING

THAT THE PROJECT SATISFIES THE COST-EFFECTIVENESS REQUIREMENTS OF CALIFORNIA GOVERNMENT CODE SECTION 4217.12 FOR ENERGY SERVICE CONTRACTS; (3) APPROVING A

MIDYEAR CAPITAL IMPROVEMENT PROGRAM (CIP) PROJECT, CITY FACILITIES SOLAR PV AND

BATTERY STORAGE, FOR THE DESIGN AND INSTALLATION OF SOLAR PV SYSTEMS AT THE

PROJECT SITES, INCLUDING ROOF REPLACEMENT WORK AT THE MOUNTAIN VIEW PUBLIC

LIBRARY AND THE MOUNTAIN VIEW CENTER FOR THE PERFORMING ARTS, AND BATTERY STORAGE AT RENGSTORFF PARK AQUATICS CENTER (COLLECTIVELY, “PROJECT”); (4) TRANSFERRING AND APPROPRIATING $2,600,000 FROM THE GENERAL NON-OPERATING FUND, $1,400,000 FROM THE CIP RESERVE FUND, AND $1,000,000 FROM THE SUSTAINABILITY PROJECT CIP (PROJECT 20-99) TO FUND THE NEW CIP PROJECT; AND (5) FINDING THAT THE

PROJECT IS EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) WHEREAS, the City of Mountain View (“City”) has incorporated solar photovoltaic systems at various municipal facilities as part of its ongoing sustainability efforts and desires to expand onsite renewable energy generation, reduce electricity costs, and advance the City’s sustainability and climate action goals; and
WHEREAS, the City proposes to install solar photovoltaic systems at City Hall, the Mountain View Center for the Performing Arts (“MVCPA”), and the Mountain View Public Library (“Library”), and to install solar carports and battery energy storage at the Rengstorff Park Aquatics Center, together with associated roof replacement work at the MVCPA and Library; and WHEREAS, the proposed solar photovoltaic and battery energy storage systems will increase onsite renewable energy generation and are expected to reduce electricity costs over the useful life of the systems, with the battery energy storage system at the Rengstorff Park Aquatics Center allowing excess solar energy to be stored for use during periods of high electricity demand; and
WHEREAS, the Inflation Reduction Act of 2022 established federal incentives for qualifying clean energy projects, including Direct Pay incentives available to eligible public agencies, and the City anticipates receiving approximately $920,190 in Direct Pay incentives for the Project; and Attachment 1
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WHEREAS, federal legislation enacted in 2025, including 26 U.S. Code § 45Y and 26 U.S.

Code § 48E, accelerated the phaseout of certain Inflation Reduction Act clean energy incentives and requires qualifying solar photovoltaic projects to be completed and placed into service by December 31, 2027, thereby creating an accelerated timeframe for the City to complete the solar photovoltaic portion of the Project and preserve eligibility for available Direct Pay incentives; and WHEREAS, the City issued a Request for Proposals on February 13, 2026, seeking qualified firms to provide design-build services for solar photovoltaic systems at the Project Sites, received six proposals, and, following evaluation of the proposals, interviews, and reference checks, determined that SolarNorcal, LLC, doing business as Excite Energy (“Contractor”), provided the best overall value to the City; and
WHEREAS, the Contractor’s proposal includes the design, installation, and commissioning of the solar photovoltaic systems, solar carports, battery energy storage, and associated roof replacement work, and the Contractor has separately proposed an initial two-year operations and maintenance term for the solar photovoltaic and battery energy storage systems; and WHEREAS, the City desires to establish a Capital Improvement Program project, City Facilities Solar PV and Battery Storage, to fund the Project, including the Energy Services Contract, the initial two-year term of the operations and maintenance contract, and City-incurred project implementation and oversight costs; and
WHEREAS, the City has sufficient funds available from existing City funding sources and desires to transfer and appropriate $2,600,000 from the General Non-Operating Fund, $1,400,000 from the CIP Reserve Fund, and $1,000,000 from the Sustainability Project Capital Improvement Program (Project 20-99), for a total appropriation of $5,000,000 to fund the Project; and
WHEREAS, based on estimated electricity cost savings, City-incurred Project costs, and IRA Direct Pay incentives, the proposed solar and battery systems, including the planned roof replacement work, are projected to generate approximately $4.5 million in cumulative net savings for all proposed sites over 20 years; and
WHEREAS, to facilitate timely implementation of the Project and preserve eligibility for available Inflation Reduction Act Direct Pay incentives, staff recommends using an Energy Conservation Contract pursuant to California Government Code Section 4217.10, et seq.; and WHEREAS, as required by California Government Code Section 4217.12, certain findings for an energy service contract must be made by the City Council at a regularly scheduled public hearing that demonstrate: (1) the energy project is in the best interest of the City; and (2) the anticipated cost to the City for the electrical energy provided by the Project under the contract will be less than the anticipated marginal cost to the City of thermal, electrical, or other energy that would have been consumed by the City in the absence of the Project; and 275
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WHEREAS, the Project does not include any facility ground lease that is necessarily related to the energy service contract;
WHEREAS, the Project was competitively procured through the Energy Conservation Contracting process, and the Contractor’s proposal was determined to provide the best overall value to the City based on the evaluation criteria established in the Request for Proposals; and WHEREAS, the financial analysis demonstrates positive lifecycle economic benefits from the solar photovoltaic and battery energy storage systems, and the anticipated energy cost savings and federal Direct Pay incentives are expected to provide long-term financial benefits to the City; and
WHEREAS, the Project consists of improvements to existing City facilities, does not involve expansion of existing uses, and does not involve significant environmental impacts; now, therefore, be it
RESOLVED: that the City Council of the City of Mountain View does hereby award an Energy Services Contract to SolarNorcal, LLC, doing business as Excite Energy, for the design, installation, and commissioning of solar photovoltaic systems at the Mountain View Public Library, City Hall, the Mountain View Center for Performing Arts, and Rengstorff Park Aquatics Center (collectively, “Project Sites”), including roof replacement work at the Mountain View Public Library and the Mountain View Center for the Performing Arts, and a battery energy storage system at the Rengstorff Park Aquatics Center, for an amount not to exceed $3,945,750; and be it FURTHER RESOLVED: that the City Council of the City of Mountain View does hereby determine and find, pursuant to California Government Code Section 4217.12, that entering into the energy services contract with Excite Energy is in the best interest of the City; and be it FURTHER RESOLVED: that the City Council of the City of Mountain View finds that the anticipated cost to the City for electrical energy or conservation services provided by the energy conservation facilities under the energy services contract with Excite Energy will be less than the anticipated marginal cost to the City for thermal, electrical, or other energy that would have been consumed by the City in the absence of those facilities; and be it FURTHER RESOLVED: that the City Council of the City of Mountain View does hereby approve a midyear Capital Improvement Program project, City Facilities Solar PV and Battery Storage, for the design and installation of solar photovoltaic systems at the Project Sites, including roof replacement work at the Mountain View Public Library and the Mountain View Center for the Performing Arts, and battery energy storage at the Rengstorff Park Aquatics Center (“Project”); and be it
FURTHER RESOLVED: that $2,600,000 shall be transferred and appropriated from the General Non-Operating Fund, $1,400,000 shall be transferred and appropriated from the CIP 276
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Reserve Fund, and $1,000,000 shall be transferred and appropriated from the Sustainability Project Capital Improvement Program, Project 20-99, to the City Facilities Solar PV and Battery Storage Capital Improvement Program project to fund the Project; and be it FURTHER RESOLVED: that the City Council of the City of Mountain View does hereby find that the adoptions of this Resolution and related actions are exempt from the California Environmental Quality Act (“CEQA”), Public Resources Code section 2100 et seq., pursuant to California Public Resources Code section 21080.35(a) as the Project’s solar photovoltaic systems is an installation of a solar energy system on the roof of an existing building or at an existing parking lot; on a separate and independent basis, this action is exempt from CEQA pursuant to Cal. Code Regs. tit. 14 (CEQA Guidelines) section 15301 (Class 1, Existing Facilities) asthe Project’s solar photovoltaic systems, as well as the battery energy storage system and associated improvements, are minor alterations of existing public structures or facilities involving negligible or no expansion of existing or former use; on a further separate and independent basis, this action is exempt from CEQA pursuant to CEQA Guidelines section 15303 (Class 3, New Construction or Conversion of Small Structures) as the Project’s photovoltaic systems is a new small structure or conversion of existing small structure from one use to another where only minor modifications are made in the exterior of the structure; on a further separate and independent basis, this action is exempt from CEQA pursuant to CEQA Guidelines section 15302 (Class 2, Replacement or Reconstruction) asthe Project’s roof replacement work at the Mountain View Public Library and the Mountain View Center for the Performing Arts is a replacement or reconstruction of existing structures and facilities where the new structure will be located on the same site as the structure replaced and will have substantially the same purpose and capacity as the structure replaced; and be it
FURTHER RESOLVED: that the City Manager or designee is authorized to enter into the energy services contract with Excite Energy for the Project, and to execute any documents necessary to implement the Project, subject to applicable legal and budgetary requirements. – – – – – – – – – – –
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Attachment 2
1 Preliminary Locations for Solar PV and Battery Energy Storage Systems Proposed locations for solar PV and battery energy storage systems are shown in Figures 1-3.

These locations are preliminary and represent anticipated project areas. Final locations, configurations, and system sizing may be modified based on detailed design, site conditions, permitting requirements, and other project considerations.

Figure 1: Proposed Rooftop Solar PV Locations for Mountain View City Hall and the Mountain View Center for the Performing Arts
278
Attachment 2
2 Figure 2: Proposed Rooftop Solar PV Location for the Mountain View Public Library Figure 3: Rengstorff Park Aquatics Center Proposed Solar Carport and Battery Storage Locations 279
Attachment 3
1 Projected 20-Year Cumulative Net Savings
This attachment presents the projected 20-year cumulative net savings associated with the overall Project, including the proposed solar and battery systems and planned roof replacement costs. The analysis incorporates Excite Energy’s proposed system sizes and costs, anticipated Investment Tax Credit (ITC) reimbursement, planned roof replacement costs, and projected operations and maintenance (O&M) expenses over the analysis period. Over 20 years, the Project is projected to generate approximately $4.5 million in savings, increasing to approximately $10.4 million over 30 years.

Figure 1 presents projected cumulative net savings for the Total Project. The Mountain View Civic Center includes City Hall and the Mountain View Center for the Performing Arts.

Figure 1: Projected 20-Year Cumulative Net Savings – Total Project 280

Mountain View City CouncilOctober 13, 2026

Mountain View City Council
October 13, 2026