City Manager Weekly Report – Week Ended March 9, 2019

Find out what’s happening in Milpitas by reading the City Manager’s Weekly Report, a summary report of updates related to City projects, new businesses, construction updates, special events and more!  You may also download a printable PDF of the latest Weekly Report.

 

 

 

 

GENERAL INFORMATION

Study Session to Review Proposed 2019-2024 Capital Improvement Program (CIP)

Staff looks forward to the opportunity to review the proposed Fiscal Years 2019-2024 Capital Improvement Program (CIP) with the Council at a Special Meeting to be held Tuesday, March 12 at the Barbara Lee Senior Center, Rooms 140/141. In addition to reviewing the overall CIP program, there will be specific review of Fire Station No. 2 with the potential use of a revenue bond and a review of projects with unidentified funding and direction for funding strategies.

PUBLIC SAFETY

Press Release: Auto Burglaries are on the Rise

On Monday, March 4, the Police Department issued a press release stating that Milpitas has experienced a significant increase in auto burglaries since the beginning of the year. Since January 1^st, there have been 145 auto burglaries in the City.  Do not leave bags in your vehicle that can be seen and don’t keep any valuables in your car.

Community Events

On Monday, March 4, Chief Armando Corpuz, Captain Jared Hernandez, and Officer Daniel Cancilla participated in Dr. Seuss Day at Pomeroy School, 1505 Escuela Parkway.  They enjoyed the morning reading and drawing with the students.

On Wednesday, March 6, Sergeant Bryan Hinkley and Emergency Services Coordinator Toni Charlop attended a Parent Night at Spangler School, 140 North Abbott Avenue.  This was an open forum where parents could ask questions about what to do in case of an emergency at the school.

On Thursday, March 7, Sergeant Bryan Hinkley attended Career Day at Russell Middle School and School Resource Officer Kita Inthasak attended Career Day at Rancho Middle School. Afterwards, they both presented a Run, Hide, Fight! presentation for City Park and Recreation staff at the Milpitas Sports Complex.

BUILDING PERMITS AND OCCUPANCY

Building permits were issued to the following:

1. LD Milpitas Lodging, LLC, for the construction of Element Hotel, a new 5-story 194-room hotel located at 521 Alder Dr. at an estimated construction cost of $34.7M.
2. Venture Corporation, a Singapore-based electronic service provider, for tenant improvements at their new facility located at 1621 Barber Ln. at an estimated construction cost of $771,633.
3. The Core Group, for site improvements to create a new outdoor break area located at 490 N McCarthy Blvd at an estimated construction cost of $200,000.

Building permit application was submitted by the following:

1. Amplitude Technologies, an ultrafast laser manufacturer company for scientific, medical and industrial application, for tenant improvements at their new facility located at 532 Gibraltar Dr. at an estimated construction cost of $310,000.

The following business received final inspection and is now open for operation:

1. The Diamond Company, a new retail jewelry store located at Great Mall.
2. Ismaili Council, a new religious assembly center located at 695 S. Milpitas Blvd.
3. Protominds Inc., a new IT consulting services office located at 1551 McCarthy Blvd.

 CONSTRUCTION UPDATE

Metro Towns & Rows, 149 townhome development located at 1401 S Milpitas Blvd.: One more 3-story building with a total of 6 units was finaled at the development, bringing it to a total of 102 completed units in the development.

Centre Pointe Townhomes, 241 townhome development by DR Horton located at 1501 Centre Pointe Dr.: One more 3-story building with a total of 9 units was finaled at the development, bringing it to a total of 150 completed units in the development.

       

Piper Drive Townhomes, Lucente, 98 townhome residential development by KB Homes developer at 1256 Piper Dr.: Two more 3-story buildings with a total of 16 units were finaled at the development, bringing it to a total of 24 completed units in the development.

       

McCarthy Creekside Development, 5 single-story high pile storage warehouse use shell buildings, with a total of 926,000 sf and 1 retail/restaurant building of 6,000 sf by McCarthy Ranch developer located at 625 N. McCarthy Blvd.:  The first set of exterior walls for the concrete tilt-up building was lifted and set into place on the fourth building #C out of 5 single-story high pile storage warehouse buildings.

         

 ECONOMIC DEVELOPMENT

Digital Billboard Request for Proposals (RFP)

Staff from Economic Development, Purchasing and Planning have collaborated on the Digital Billboard RFP, which was issued on Wednesday, March 6, 2019.  To-date, two interested parties have applied to receive additional information such as any forthcoming Addendums.  The RFP submittal due date is March 27, 2019.  The Selection Committee will review proposals based on the merits of the cover letter, company profile, execution plan, references and revenue sharing plan.

The RFP’s scope of services focuses primarily on revenue generation, rent, lease term, branding and advertising, vendor experience, permits and design review, visual and glare analysis, operations and maintenance, and indemnification and risk management.  Once staff identifies the most qualified vendor through the RFP process, staff will present the vendor to Council for consideration and approval.  Subsequently, staff will negotiate a Digital Billboard Agreement in tandem with processing entitlements and CEQA clearance for development of the digital billboard project.

Foreign Trade Zone Forum

Staff attended a Foreign Trade Zone Forum hosted by the City of San Jose on Tuesday, March 5, 2019.  The Federal Foreign Trade Zone program was designed to promote competitiveness of domestic businesses by encouraging companies to maintain and expand their operations in the United States.

A Foreign Trade Zone site is considered to be outside of U.S. Customs territory. Goods can be brought into the U.S. without going through a formal customs entry or paying of federal import duties. The benefit to companies is that the Foreign Trade Zone allows business to delay, reduce, or eliminate duty payments on foreign products before entering the U.S. market.

Milpitas is covered by Foreign Trade Zone #18, managed by the City of San Jose, which includes all of Santa Clara County, parts of Santa Cruz County and southern Alameda County. If a company wishes to be designated a Foreign Trade Zone site, the company can apply through Foreign Trade Zone #18 for approval from both the Federal Foreign Trade Zone Board and Customs and Border Protection.  Currently, there are no Milpitas-based companies taking advantage of Foreign Trade Zone #18 benefits, so Economic Development staff will promote and advertise the program. Staff is on track to bring forward the results of the RFP to the City Council for their consideration in June.

Western Digital

Economic Development Staff has received a Worker Adjustment and Retraining Notification (WARN) letter from the State’s Employment Development Department communicating that Western Digital will be laying off 114 employees from its Milpitas location.  Employees are expected to be impacted now through May 7, 2019.  The 114 professional positions includes a Vice President, Directors, Managers, Engineers, Technologists and Technicians.  Economic Development staff will contact Western Digital’s Human Resources Department as well as NOVA for potential job placement services.