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Council adopts modest decrease to Milpitas development and storm impact fees for FY 2025–26
Summary
The Milpitas City Council adopted an annual update to development-related impact fees — including the Transit Area Specific Plan (TASP) fee, Calaveras Boulevard widening fee, and storm drain fee — that reflects a 0.66 percent decrease tied to the San Francisco construction cost index.
The Milpitas City Council on May 6 adopted a resolution updating development and storm impact fees for fiscal year 2025–26 for three targeted areas: the Transit Area Specific Plan (TASP), a Calaveras Boulevard widening traffic impact fee, and the city’s storm drain fee.
Finance Director Luis Cofresi explained the annual adjustment is based on the Engineering News-Record San Francisco construction cost index and showed a modest decline of 66 basis points (about 0.66 percent) from December 2023 to December 2024. The change results in a nominal reduction to the fees used to recover the costs of infrastructure tied to new development.
The council heard a short presentation describing the TASP area (originally 437 acres and expanded to roughly 510 acres and renamed the Milpitas Metro Specific Plan area), the Calaveras Boulevard widening project area (Abel Street to Milpitas Boulevard), and the citywide storm drain system that the fee supports. Staff noted the storm drain system includes roughly 112 miles of pipeline, about 1,400 manholes, 3,500 storm drain inlets and 13 pump stations; major downstream channels are maintained by Valley Water.
Council Member Lien moved to adopt the resolution; Council Member Chua seconded. The motion passed unanimously. Staff said the updated fee schedule will remain in effect until the next annual update or until a city-led study (under Assistant City Manager Matt Cano) produces a new recommendation.
Council members asked staff to explain the index and the series’ unusual recent decline; staff said the change originates with the ENR index and the city follows that industry standard metric rather than a general CPI measure. Staff also agreed to provide a breakdown of funds collected for the Calaveras Boulevard project on request.
The update will be posted for public notice and be effective for the upcoming fiscal year cycle as the city implements its annual fee schedule.
