City Council

Summary

The City Council will hold a closed session on December 9, 2025, at 9:30 a.m. in Conference Room W-133 to discuss existing and anticipated litigation. Discussions will include two existing cases: Marilou Cacho v. City of San Jose, et al. (Santa Clara County Superior Court, Case No: 25cv461279) and Enrique Dorantes v. City of San Jose (Santa Clara County Superior Court, Case No: 23cv422312), both seeking damages. Additionally, the council will confer with legal counsel regarding anticipated litigation stemming from a claim filed by Sara Corona against the Police Department, and one other anticipated litigation matter.

Citizen Impact

This closed session is an administrative matter where the City Council will discuss ongoing and potential legal cases with legal counsel; it has no direct impact on residents' daily lives or services.

Confidence

high

Summary

Councilmember Rosemary Kamei requests an excused absence from the Rules and Open Government Committee and Committee of the Whole meetings on December 3, 2025. This absence is due to a conflict with her attendance at the Regular meeting of the Local Agency Formation Commission of Santa Clara County (Santa Clara LAFCO) on the same date, where she serves as the Council appointee.

Citizen Impact

This is an administrative matter regarding excused absences for a councilmember and has no direct impact on residents.

Confidence

high

Summary

The City Council is considering first amendments to agreements with HNTB Corporation and Landrum & Brown, Inc. for on-call planning and environmental consulting services at the San José Mineta International Airport. The amendments propose to increase the combined maximum compensation by $1,000,000, from $3,500,000 to $4,500,000. This increase is necessary to fund upcoming work supporting the Airport's Capital Improvement Program and required environmental analysis while a new procurement process for these services is completed, expected by September 2026. Funding will come from existing appropriations in the Airport Renewal and Replacement Fund.

Citizen Impact

This action will allow for the continuation of essential planning and environmental services at the San José Mineta International Airport, funded through existing airport budgets.

Confidence

high

Summary

The City Council is considering authorizing the City Manager to extend a purchase order with WECO Industries, LLC for sewer monitoring parts and supplies. This action allows for up to four additional one-year options, extending the contract until approximately June 13, 2030. The initial projected cost for the first option year (June 14, 2026, to June 13, 2027) is $450,000, funded by the Department of Transportation's Sewer Service and Use Charge Fund. This is necessary for the Sewer Division to respond to emergencies, perform maintenance on 2,278 miles of sewer lines, and comply with regulatory requirements.

Citizen Impact

This action ensures the continued availability of essential parts for maintaining the city's sewer system, preventing potential overflows and service disruptions.

Confidence

high

Summary

The City of San José is proposing two amnesty programs: one for Business Taxes and another for Business Improvement District (BID) assessments. These programs, running from January 1, 2026, to December 31, 2026, aim to encourage businesses to pay past-due taxes and assessments. By paying the principal amount owed, businesses can have remaining past-due taxes, interest, and penalties forgiven. The Business Tax Amnesty is estimated to generate $3.15 million in net revenue for the General Fund, with an estimated program cost of $250,000. The BID Assessment Amnesty will benefit specific Business Improvement Districts and their respective funds.

Citizen Impact

Businesses with past-due Business Taxes or BID assessments have an opportunity to pay only the principal amount owed and have penalties and interest waived during 2026.

Confidence

high

Summary

The City Council is considering adopting "Tsugio Fujimoto Park" as the official name for a new 0.36-acre pocket park located at Senter Road and Serenade Way. This park was developed on a former underutilized traffic island and now features a native pollinator garden and shade trees. The naming recommendation honors Tsugio ‘Tee’ Fujimoto, a former parks supervisor and gardener who lived near the site and made significant contributions to the City of San José's Parks, Recreation, and Neighborhood Services Department from the late 1950s to 1982. The park opened in December 2024, with signage to be installed in summer or fall of 2026. The recommendation aligns with City Council Policy 7-5 and reflects community input, with "Fujimoto Park" being the top preference in public surveys.

Citizen Impact

Residents will have a new public park named Tsugio Fujimoto Park, honoring a former city employee and providing a community gathering space.

Confidence

high

Summary

The City Council is set to accept the 2026 Weed Abatement Program Commencement Report, compiled by the County of Santa Clara’s Consumer and Environmental Protection Agency. This report identifies properties with noxious weeds or refuse that constitute a public nuisance. The Council will direct the County agency to notify affected property owners of a public hearing scheduled for February 10, 2026, where they can voice objections. The City contracts with the County for this service, as the County has the necessary expertise and resources, and there is no direct cost to the City.

Citizen Impact

Residents will be notified if their property is identified in the 2026 Weed Abatement Program; failure to comply with maintenance standards may result in abatement charges on property tax statements.

Confidence

high

Summary

The San José City Council is considering accepting a donation of $1,523,394 in equipment from the San José Police Foundation for the new San José Police Department fixed-wing aircraft. This equipment includes an L3 Harris MX15 Camera Imaging System, associated mount, software, antenna, controller, and dual workstation monitors. This donation, approved by the City Council on September 16, 2025, will enhance the aircraft's capabilities for observation and situational awareness, ultimately improving public safety and resource efficiency without any cost to the city.

Citizen Impact

Residents will benefit from enhanced police surveillance capabilities from the new aircraft, potentially leading to improved public safety and more efficient law enforcement response.

Confidence

high

Summary

The City Council is considering the Third Amendment to an agreement with Cal Engineering & Geology, Inc. for professional engineering services related to storm outfall and embankment projects at Kelley Park and Alum Rock Park. This amendment will extend the agreement term retroactively from October 31, 2024, to October 31, 2029, and will decrease the maximum compensation from $754,540 to $642,801. The projects experienced delays due to coordination with regulatory agencies, but all necessary permits have now been secured, allowing for the re-engagement of the consultant for bidding, award, and construction phases.

Citizen Impact

This amendment extends the timeline and adjusts the budget for critical storm outfall and embankment repair projects at Kelley Park and Alum Rock Park, ensuring their completion.

Confidence

high

Summary

The City Council is considering terminating the contract with VNH Builders for the Happy Hollow Park and Zoo Fossa Night House Project due to contractor non-performance and alleged violations of labor laws. The project, located at 1300 Senter Road, is approximately 30% complete and was originally scheduled for completion by October 6, 2025. The contractor, VNH Builders, has faced issues including alleged prevailing wage violations and significant work stoppages. The City intends to work with the surety, American Contractors Indemnity Company, and potentially a new contractor to complete the project, which is critical for the zoo's accreditation and acquisition of new animals.

Citizen Impact

Residents may experience delays in the opening of the new Fossa Night House at Happy Hollow Park and Zoo, potentially impacting the zoo's accreditation and ability to house endangered species.

Confidence

high

Summary

The City Council is considering a resolution to adjust the Shared Micro-Mobility Device Fee. The proposed change would reduce the annual permit and program monitoring operating fee from $139 per device to $100 per device, effective January 1, 2026. This adjustment is intended to make the program more competitive and attract new operators, as the city received no applications in the most recent solicitation period due to the high fee.

Citizen Impact

Residents may see more shared micro-mobility options like scooters return to the city, as the proposed fee reduction aims to attract operators.

Confidence

high

Summary

The City of San José's Annual Comprehensive Financial Report (ACFR) for Fiscal Year Ended June 30, 2025, has received an unmodified ("clean") audit opinion from Macias Gini & O’Connell, LLP, marking the 37th consecutive year the City has earned the GFOA Certificate of Achievement for Excellence in Financial Reporting. The City's total net position increased by $9.9 million (0.22%) to $4.419 billion, though unrestricted net position remains a deficit of $1.664 billion, primarily due to pension and OPEB liabilities. Governmental activities saw a $146.4 million decrease in net position, while business-type activities experienced a $156.3 million increase.

Key Financials & Trends

Overall governmental fund balances decreased by $132.4 million (6.18%) to $2.010 billion. General Fund revenues increased by $80.3 million (6.02%), driven by property tax (+$19.6 million) and utility tax (+$9.8 million), while capital grants decreased by $47.7 million (27.85%). Expenses saw a $54.5 million decrease in pension costs but a $47.6 million increase in OPEB expenses. Capital assets, net of depreciation, decreased by $15.0 million to $7.376 billion, with construction in progress decreasing by $500.3 million.

Economic Outlook & Debt

The local economy shows signs of weakening with high inflation, elevated office vacancy rates, and a rising unemployment rate of 4.7% in June 2025. Despite this, construction valuation increased by 9.6%, notably in data center development ($990.7 million). The City's long-term debt decreased by $102.5 million to $2.599 billion, and its legal debt margin stands at $39.432 billion. The Successor Agency to the Redevelopment Agency (SARA) reduced its deficit by $111 million to $856 million.

Commitments & Risks

Significant commitments include $29.087 million in Airport purchase commitments and a $2 billion estimated investment for the Wastewater Treatment Plant Master Plan. The City faces federal funding risks due to shifting policies and ongoing litigation regarding pension obligation bonds, with the California Supreme Court hearing an appeal on October 8, 2025.

Citizen Impact

This report confirms the City's financial stability, but highlights challenges like rising pension and OPEB liabilities that could impact future budgets. Residents will see a 1.67% increase in Sewer Service and Use Charge rates for FY 2026, and ongoing investments in infrastructure, housing, and public safety are planned, funded by taxes and fees. Economic indicators suggest potential slowdowns, which could affect local job markets and services.

Confidence

high

Summary

The City Council is reviewing the External Auditor’s Report to Those Charged with Governance for the year ended June 30, 2025, issued by Macias Gini & O’Connell LLP. The report indicates an unmodified audit opinion with no material weaknesses or significant deficiencies identified in the City's internal controls, marking the fourth consecutive year of such favorable results. The City successfully implemented new accounting standards, including GASB Statement No. 101, which required a restatement of the beginning net position by approximately $77.9 million to better reflect liability for unused leave. While the audit itself is clean, a public letter highlights a widening gap between service obligations and revenue capabilities, a $34.2 million drawdown in General Fund reserves, and a $1.7 billion infrastructure backlog.

Citizen Impact

Residents can be assured of the City's strong financial oversight and transparency, as evidenced by a clean audit report, though underlying financial challenges like infrastructure needs and a structural deficit are noted.

Confidence

high

Summary

The Comprehensive Annual Debt Report (CADR) for Fiscal Year Ended June 30, 2025, provides a detailed overview of the City of San José's debt portfolio and management activities. During FY 2024-25, the City issued $97.7 million in direct debt, including $76.4 million for Airport Revenue Refunding Bonds and $20.7 million for CSJFA Lease Revenue Commercial Paper Notes. Additionally, $1.24 billion in Clean Energy Project Revenue Bonds, Series 2024E, were issued by the California Community Choice Financing Authority (CCCFA) for the City's benefit to prepay a 30-year energy supply, though these are not direct City obligations.

As of June 30, 2025, the City's total outstanding debt portfolio stands at $4.3 billion, comprising 78 obligations. Of this, $3.4 billion is direct City or related entity debt, while $834.0 million consists of multifamily housing revenue bonds where private developers are the primary obligors. The City maintains high credit ratings, including AAA from Fitch for its General Obligation Bonds, which translates into significant interest cost savings.

Future Debt and Projects

For Fiscal Year 2025-26, the City plans to issue approximately $622.7 million in new and refunding debt. This includes $209.6 million in General Obligation Bonds (the final issuance under Measure T), $47.8 million in CSJFA Lease Revenue Bonds for the Muni Water Building, and $50.0 million for Regional Wastewater Facility capital improvements. Several affordable housing projects, such as 525 N. Capitol Apartments ($65.9 million) and Arcade ($73.7 million), are also being financed through conduit bonds. The City's legal debt limit is $40.0 billion, with only $497.3 million (1.5%) currently outstanding, leaving a substantial margin of $39.4 billion.

Debt Administration and Policy

Debt management staff actively monitors compliance, manages bond proceeds, and evaluates refunding opportunities, aiming for a minimum 3% net present value savings on refunded debt. The City Council Debt Management Policy was last amended on March 11, 2025, to incorporate energy prepay financing. Ongoing projects include exploring a new debt management software solution and monitoring the legal challenge to the proposed $3.5 billion Pension Obligation Bonds, with oral arguments scheduled for October 8, 2025, at the California Supreme Court.

Citizen Impact

This report directly affects residents by detailing the City's financial health and its ability to fund essential services and infrastructure. High credit ratings mean the City can borrow money at lower interest rates, saving taxpayer dollars that can then be used for other community needs. The debt finances critical projects like airport improvements, wastewater facility upgrades, and the construction of new affordable housing units, which directly impact daily life and the future development of San José.

Confidence

high

Summary

The City Council is considering a First Amendment to the Master Service Agreement with Intergraph Corporation for the Computer Aided Dispatch (CAD) System. This amendment would extend the agreement for up to four additional one-year terms through December 31, 2029, and increase the total not-to-exceed compensation by $8,030,000, bringing the total to $19,909,000. This ensures continued software maintenance, support, and professional services for the mission-critical CAD system used by the Police and Fire Departments for emergency response.

Citizen Impact

This agreement ensures the continued operation of the emergency response dispatch system used by police and fire departments, with an increased cost of $8,030,000 over four years.

Confidence

high

Summary

The City Council is considering awarding a contract to Rodan Builders, Inc. for the 9153 - Tenant Improvement 911 Call Center Upgrade (2018 Measure T) Project. The total contract amount, including base bid and two alternates, is $6,091,858, with an additional $1,218,372 approved for contingency. This project, funded by Measure T, aims to expand the 911 Call Center by adding 22 new dispatch stations for Police and Fire Departments, improving working conditions and technological capabilities. Construction is anticipated to begin in March 2026 and conclude by June 2027.

Citizen Impact

This project will upgrade the 911 Call Center to improve emergency response services, ensuring faster and more efficient dispatch during critical events.

Confidence

high

Summary

The City Council will interview applicants for three Member-at-Large seats on the Appeals Hearing Board for terms beginning January 1, 2026, and ending December 31, 2029. The Board hears administrative hearings and appeals related to code enforcement, abatement actions, and traffic control devices. Three applicants have been identified for interviews: Martin Nguyen, Ronald Cabanayan (incumbent), and Genevieve Altwer (incumbent). Successful candidates require six or more votes for appointment. Ronald Cabanayan has requested his reappointment be considered despite his inability to attend the interview due to a scheduled surgery.

Citizen Impact

Residents will be impacted by the appointment of individuals who will adjudicate code enforcement appeals and administrative hearings affecting property and public safety standards.

Confidence

high

Summary

The City of San José is granting non-exclusive Commercial Solid Waste and Recyclables Collection Franchises to five companies: Bayview Industrial Services, Inc., Compactor Management Company, LLC, Dumpster Pro, Inc., MTB Demolition, and TDB Incorporated. This action, approved by the City Council on December 9, 2025, through an ordinance effective February 12, 2026, authorizes these companies to collect, transport, and deliver Residential Clean-Out Material and Construction and Demolition Debris (C&D Debris) city-wide until December 31, 2026. This increases the total number of authorized haulers to 31.

Service Details

Franchisees will handle materials from residential clean-outs (e.g., garage clear-outs) using roll-off or front-load containers rented for one week or less, and C&D debris from permitted construction, remodeling, or demolition projects. All collected materials must be delivered to City-Certified Recycling Facilities to support the City's C&D Diversion Program, which aims for 50% or more diversion for deposit refunds and 75% diversion for CalGreen compliance.

Financial Aspects

While Residential Clean-Out Material and C&D Debris are generally exempt from Franchise Fees and Source Reduction and Recycling (SRR) Fees (AB 939 Fees) due to their recyclable nature, landfilled material will incur fees. These include Franchise Fees of $11.01 per cubic yard for compacted waste and $3.67 per cubic yard for uncompacted waste, plus AB 939 Fees of $2.67 per cubic yard compacted and $0.89 per cubic yard uncompacted. In Fiscal Year 2024-2025, non-exclusive haulers generated $52,179 in revenue for the City. Each applicant paid a $1,265.00 application fee.

Compliance and Oversight

Franchisees are required to submit detailed monthly reports, maintain equipment and vehicles to City standards, and educate customers on diversion programs. Liquidated damages, ranging from $100 to $5,000 per incident, can be imposed for non-compliance, such as failure to separate materials, cover loads, clean spills, or deliver to certified facilities. The Director of Environmental Services is authorized to negotiate amendments to these agreements to align with anticipated changes to the C&D Diversion Program in early 2026.

Citizen Impact

Residents undertaking home clean-out projects or construction/demolition work will have more options for debris removal services, as the number of authorized haulers in San José increases from 26 to 31. These services are specifically for residential clean-out materials and construction/demolition debris, ensuring proper disposal and recycling. Customers will benefit from haulers providing education on the Construction and Demolition Diversion Program, helping them meet recycling targets and potentially recover refundable deposits.

Confidence

high

Summary

The City Council is considering authorizing an amendment to a grant agreement with the County of Santa Clara’s Office of Supportive Housing to fund the Homelessness Prevention System (HPS). This amendment would provide up to $5,500,000 in new funding, plus an additional $2,579,023 in unspent funds from a previous authorization. The agreement term would be retroactive from July 1, 2025, to December 31, 2026. This action aims to prevent homelessness by providing financial assistance, case management, and supportive services to San Jose households at immediate risk. The total funding for the HPS, leveraging city, county, and philanthropic contributions, is expected to exceed $25,000,000, serving over 1,900 households, with over 1,200 being San Jose households.

Citizen Impact

This action will provide critical funding to prevent homelessness for at-risk San Jose households through financial assistance and supportive services.

Confidence

high

Summary

The Successor Agency to the Redevelopment Agency of the City of San José (SARA) has released its Audited Financial Statements for the Fiscal Year ended June 30, 2025. These statements, audited by Macias Gini & O’Connell LLP, present a fair view of the SARA's financial position and activities. The audit resulted in an unmodified ('clean') opinion, indicating compliance with generally accepted accounting principles. The SARA's net deficit at the end of the fiscal year was $856 million, an improvement from the previous year, with outstanding bonds expected to be fully repaid by August 1, 2035.

Citizen Impact

Residents can review the audited financial statements of the Successor Agency to the Redevelopment Agency, ensuring transparency in how funds related to former redevelopment activities are managed.

Confidence

high