San José City Council Meeting - April 8, 2025

The San José City Council met on April 8, 2025, at 1:30 PM in Council Chambers. The meeting began with ceremonial proclamations, followed by consent calendar approvals, a city manager report, an appeals hearing board appointment, retirement plan reviews, a lawsuit settlement, clean energy agreements, a first-time homebuyer loan program modification, and early consideration of two innovative mixed-use projects under the new Innovative Project Pathway Program. The session concluded with Open Forum comments.

Consent Calendar

• Item 2.2 (Final Adoption of Ordinances): Councilmember Kamei clarified that a 30-day review period in the peddler ordinance (Ordinance No. 31183) is part of the city manager's administrative authority, not a separate public review. Public speaker Chris Jan Greco (Winchester Orchard Neighborhood Association) expressed concern that the 30-day review lacked clear public input opportunities and also raised a public safety threat from illegal food trucks on Stevens Creek Boulevard, urging council action. The consent calendar was adopted unanimously with two absent.
• Item 2.6 (Council Liaison Report): Vice Mayor Foley reported on an update from the Federated Retirement Board and Police and Fire Retirement Board, noting that the boards approved travel and procurement policies in January 2025, resolving a dispute with the city and avoiding municipal code changes.
• Other consent items included approval of minutes, committee reports, appointments (Nathan Nakagawa to Federated City Employees' Retirement System), purchase orders for bike park maintenance, sweeper parts, flooring services, and sponsorship of various special events (Music in the Valley Festival, Portugal Day, Fourth of July Fireworks, District events).

Public Comments & Testimony

• Consent Calendar (Item 2.2): Chris Jan Greco (Vice President, Winchester Orchard Neighborhood Association) spoke about the peddler ordinance review process and urged the city to address illegal food trucks causing vision zero safety hazards on Stevens Creek Boulevard.
• Items 10.2 & 10.3 (Innovative Project Pathway Program): Brian Darby requested that data center fire safety and childcare be incorporated into the housing plans. Dennis Randall expressed strong support for the data center projects, emphasizing that San Jose must act quickly to capture AI investment opportunities, and noted the financial feasibility challenges downtown.
• Open Forum: Multiple speakers addressed the council. One speaker highlighted fear among immigrant and disabled communities due to a lack of empathy and urged the city not to leave anyone behind. Another speaker (Mike Sodergren, Preservation Action Council) commended the Innovative Project Pathway Program and noted San Jose's history of innovation, referencing 55 Market Street and 99 Notre Dame. A third speaker shared personal experiences of homelessness and criticized the city's response to homeless and disabled individuals, demanding better outreach. Another speaker demanded body cameras for council members, criticized the council's handling of the Omar Torres case, and made allegations regarding other council members and an attempted murder cover-up, calling for accountability.

Ceremonial Items

• Displaced Vietnamese American Heritage Month (April 2025): Councilmember Doan and Mayor Mahan presented a proclamation recognizing the resilience and contributions of Vietnamese Americans displaced by the Vietnam War. Councilmember Doan shared personal reflections on heritage and freedom.
• Cambodian Genocide Remembrance Month (50th anniversary): Councilmember Ortiz and Mayor Mahan presented a proclamation honoring the two million Cambodians killed under the Khmer Rouge regime. Community leader Nancy Kao accepted and gave a moving testimony about her mother's survival and the Cambodian community's resilience in San Jose.
• National Library Week (April 6-12, 2025): Councilmember Kamei and City Librarian Jill Bourne highlighted the library's role, noting that San Jose Public Libraries welcome over 10,300 visitors daily (3.6 million annually), loan 23,000 items per day (8 million per year), and answer nearly 1,000 reference questions daily.

City Manager Report

• No Encampment Zones Update: City Manager Jennifer Maguire reported that the city established its first no encampment zone along the Guadalupe River in April 2024, with daily patrols. No encampment zones are now being implemented on 12 miles of Coyote Creek, with signage installed at Olander Park on March 26, 2025, and abatements scheduled by June 30, 2025. Zones are also being established around all Emergency Interim Housing sites. Beautify San Jose conducted over 300 encampment abatements last year and manages nearly 200 encampments with sanitation services. There are over 800 managed shelter spaces, with plans to add approximately 800 more in 2025 (200 already opened this year).

Appeals Hearing Board Interview & Appointment

• Council interviewed two candidates: Genevieve Altware (licensed marriage and family therapist, former police officer) and Samantha Kaye (internal audit background). After questions on code enforcement experience and reconciling personal beliefs with the law, the council voted by paper ballot. Genevieve Altware was appointed unanimously (9-0) to fill the Member-at-Large seat with a term ending December 31, 2025. The other candidate was encouraged to reapply for upcoming vacancies.

Review of Retirement Plans’ Actuarial Valuations (Item 3.4)

• John Flynn (Director of Retirement Services) and Bill Hallmark (actuary) presented the actuarial valuations as of June 30, 2024. Medians: national pension funding ratio ~75%, California ~82%. The Federated City Employees’ Retirement System serves 15,805 members (2.9% increase). Projections show city contributions peaking in 2029 and declining after 2040 due to completion of Great Recession liabilities. The unfunded liability ($3.1 billion) was attributed largely to the 2007-2009 recession (over $2 billion) and assumption changes (e.g., investment return assumption reduced from 8% to 6.625%). Current contributions are steadily paying down the unfunded liability. Council accepted the report unanimously.

Settlement of Lawsuit (Unite Here Retirement Fund) (Item 3.5)

• Council approved a $1,550,000 settlement to be paid in two installments of $775,000 each, with the first due by May 9, 2025. Motion passed with Councilmember Ortiz absent.

San José Clean Energy Resource Adequacy Agreements (Item 6.1)

• Staff requested authorization to enter into agreements with MRP Pacifica Marketing III for resource adequacy from a new Tracy long-duration storage facility (14 years) and an existing Tracy combined cycle gas facility (12 years). Annual cost not to exceed $25 million (5% of power supply budget); lifetime cost not to exceed $38 million. The battery will reduce emissions by 12% (equivalent to removing 50,000 gasoline cars for one year). The developer committed community investment funds. Motion passed unanimously with Councilmember Doan absent.

First-Time Homebuyer Loan Program: Equity Share Reduction (Item 8.1)

• Director Eric Sullivan presented a proposal to reduce the city’s equity share from 30% to 15% for the 438 loans in the portfolio. The program originated over 30 years ago; loans total $30 million (average $70,000). Most units are small condos. Staff analysis showed that reducing the share would lower the city’s take on 13 loans due today from $1.26 million to $631,000, providing borrowers with more equity (average $276,000 per loan vs. $227,000 at 30%). Council approved the reduction unanimously, with discussion about possibly removing deed restrictions entirely to further assist homeowners’ generational wealth.

Innovative Project Pathway Program – Early Consideration (Items 10.2 & 10.3)

• 323 Terraine Street (Item 10.2): West Bank proposed converting an existing 18-story residential tower entitlement (345 units) to an 11-story data center (680,000 sq ft) paired with the residential component. The data center would utilize waste heat for district energy and activate ground floor with public art and outdoor spaces.
• 300 South 1st Street (Item 10.3): West Bank proposed a new project with over 1,100 residential units (three towers) and a 10-story data center (330,000 sq ft) on the Valley Title site, with a public square, retail, and an art walk.
• Council discussed the need for data centers to unlock housing development, ensure ground-floor activation, and dedicate a portion of data center revenue to arts and culture. A multi-signature memo from the Mayor, Vice Mayor, and Councilmembers Salas, Cohen, and Candelas outlined conditions: housing must be under construction before data center operation; creative activation of ground floors; and exploration of a small percentage of revenue for downtown arts. Both items were approved unanimously.

Key Outcomes

• Consent Calendar adopted unanimously with two absent.
• Appeals Hearing Board: Genevieve Altware appointed (unanimous).
• Retirement Plan Actuarial Valuations accepted (unanimous).
• Lawsuit settlement approved ($1.55 million; Ortiz absent).
• Clean Energy agreements authorized (unanimous; Doan absent).
• First-Time Homebuyer equity share reduced to 15% (unanimous).
• Innovative Project Pathway Program: Both projects (323 Terraine St and 300 S 1st St) received early consideration direction (unanimous). Staff will return with formal approvals.
• Adjournment: The meeting was adjourned in memory of community leader David "Mike" Michael Flaugher.