San Jose City Council Meeting - May 13, 2025: Budget Hearing, Code Enforcement, Flea Market, Sharks Way
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San Jose City Council Meeting - May 13, 2025
The San Jose City Council met on May 13, 2025, for a regular session that included a public hearing on the proposed 2025-2026 operating and capital budgets, acceptance of a code enforcement operational assessment, updates on the Berryessa Flea Market redevelopment, approvals of multifamily housing incentive program amendments and loan commitments, and a street renaming to "Sharks Way." The meeting began with ceremonial items recognizing Hepatitis B Awareness Week (May 18-25), the May Day Coalition, and Global Accessibility Awareness Day. The consent calendar was approved unanimously, including a settlement with Calpine Energy Solutions ($900,000 credit), employee health services vendor agreements (up to $8.7 million combined), a T-Mobile macro cell site permitting agreement, acceptance of $3.654 million in federal One Bay Area Grant funds for bikeway projects, and various boards and commissions appointments.
Consent Calendar
- Approved routine items including: settlement agreement with Calpine Energy Solutions (credited $900,000 over 36 months); agreements with 1582 Medical Corporation, Fast Response On-Site Testing, and Carbon Health for employee health services (five-year terms, maximums $2.24M, $1.21M, $5.26M respectively); T-Mobile West macro cell site funding and reimbursement agreement; acceptance of $2.233M for Better Bikeway San Fernando and $1.421M for Downtown Bikeways Quick Strike (local match totaling ~$473,000); and eight Youth Commission appointments. Councilmember Mulcahy recused from item 2.9 (T-Mobile) due to a conflict of interest.
Public Comments & Testimony
- Budget Hearing (Item 3.3): 38 speakers addressed the council, with most urging the council to prioritize affordable housing using Measure E funds rather than diverting them to shelters and enforcement. Speakers from SiREN, REaL Coalition, Sacred Heart Community Service, and others opposed criminalizing homelessness and called for increased investment in prevention, a 24/7 TRUST crisis response team, and $1.5 million for immigrant rapid response and legal defense. Several speakers opposed cuts to the Older Adult Health and Wellness Grant ($526,000) and advocated for maintaining funding for nine nonprofits serving seniors. A few supported the budget's balanced approach, including the Chamber of Commerce representative who praised investments in sports entertainment, small business ADA compliance, and interim housing.
- Other items: Public comment on the Berryessa Flea Market (Item 8.1) included testimony from vendors and advocates urging action to secure a relocation site (especially Singleton landfill) and coordination with VTA. Union representatives opposed the Aquino project (Item 8.2) for lacking prevailing wage requirements. Supportive comments were heard for the Sharks Way renaming (Item 10.2) and affordable housing projects (Items 8.3, 8.4).
Discussion Items
- Budget Public Hearing: The council heard a verbal report from the City Manager and accepted public testimony; no action was taken.
- San José Clean Energy Selection Criteria (Item 6.1): Staff presented new criteria for long-term power purchase agreements, emphasizing workforce development, environmental stewardship, and community engagement. Councilmembers discussed balancing affordability with other goals. Approved unanimously.
- Code Enforcement Operational Assessment (Item 7.2): Staff and Guidehouse presented findings: 26-inspector staffing gap, outdated technology, and process inefficiencies. Recommendations included hiring a transformation manager, adopting new case management software (Codex), expanding pilot programs (FAST, vacant buildings), and increasing fines (up to $500,000). Councilmember Ortiz and Vice Mayor Foley successfully amended to ensure fines are not limited to historic properties. The report and Phase 1 workplan were accepted.
- Berryessa Flea Market Status (Item 8.1): Staff reported on market studies (economic impact: $20-40M annual sales, 1,000+ jobs), site assessments (former Sears, fairgrounds, Singleton landfill), and $5M vendor transition fund (15% spent). Councilmember Cohen moved to pursue an RFP for Singleton in accordance with the Surplus Land Act, with staff to report back in Q1 2026. Councilmember Duan's amendment to include mixed-use evaluation was not adopted. Motion passed 9-1 (Duan dissenting).
- Multifamily Housing Incentive Program – The Aquino (Item 8.2): Approved a tax and fee waiver of up to $4.07 million for a 278-unit market-rate project (14 affordable at 100% AMI) at 498 W. San Carlos Street. Motion passed 10-1 (Mahan absent, Duan voting no).
- Multifamily Housing Incentive Program Amendments (Item 8.3): Approved adding Santana Row Lot 12 (358 Hatton Street), increasing eligible units from 1,500 to 1,800, and refunding $3.44 million in previously paid AHIF fees to Federal Realty. Councilmember Kamei successfully amended the direction to "explore extending the cutoff date" rather than committing to an extension. Approved unanimously.
- Loan Commitment – Berryessa Station Affordable Housing (Item 8.4): Approved a $9.9 million construction-permanent loan for a 193-unit all-affordable development (74% extremely low- and very low-income) at 1565 Mabury Road, leveraging $29M in state AHSC funds, $11.1M from the county, and $60M from the Bay Area Housing Innovation Fund. Approved unanimously.
- Street Renaming to Sharks Way (Item 10.2): Approved renaming a ~1,200-foot segment of West St. John Street (from San Pedro to the arena) and connecting segments to "Sharks Way," and directed staff to prioritize a companion renaming of a portion of North Almaden Boulevard to "Little Italy Way." Approved unanimously.
Key Outcomes
- Budget: Public hearing conducted; further study sessions and town halls scheduled before final adoption.
- Code Enforcement: Accepted operational assessment and Phase 1 workplan; directed staff to hire a transformation manager, implement escalated intervention program, increase maximum fines (to $500,000) beyond historic properties, and report back with detailed work plan and milestones in summer 2025.
- Berryessa Flea Market: Directed staff to prepare a timeline for a Surplus Land Act-compliant RFP for Singleton site; report to council in Q1 2026 with findings and recommended next steps, including potential mixed-use development and coordination with VTA.
- Housing Production: Approved tax/fee waivers for two market-rate projects (The Aquino, Santana Row Lot 12) and a $9.9M loan for Berryessa Station affordable housing; expanded MFHIP capacity from 1,500 to 1,800 units; directed staff to explore extending the program cutoff date and return in September 2025 with an update.
- Street Renaming: Approved "Sharks Way" for the section connecting San Pedro Square to SAP Center; directed staff to prioritize "Little Italy Way" for a perpendicular segment of North Almaden Boulevard.
Meeting Transcript
All right, good afternoon, everyone, and welcome. I would like to call to order this meeting of the San Jose City Council for the afternoon of May thirteenth. Tony, would you please call the role? Campos. Present, Salas. Here. Cohen. Here. Ortiz. Present. Okay, hear. Duan. Here. Candelas. Here. Casey. Holy. Here. Mayhem. Here. You have a corn. Thank you. Now, if you're able, please stand and join us in the Pledge of Allegiance. We are now on to our invocation, which will be provided today by the Green Sound, and Councilmember Ortiz will tell us more. Thank you, Mayor. Today's invocation will be delivered by the Green Sound, a youth-led Vietnamese American band melding modern sounds with Vietnamese tradition. Sisters Anna and Linda Nguyen, who are trained in both ballet and Vietnamese folk dance. Oh not yet, guys. Now I'd like to invite Green Sound to please start us off. Thank you. That was beautiful. Thank you so much for sharing your talent with us as we start our city council meeting. We are and again, that was the green sound. Thank you again. We are moving on to our ceremonial items. Councilmember Kameh and Councilman Duan, if you would join me at the podium, we will recognize and proclaim May eighteenth through twenty-fifth is Hepatitis B awareness week. Today we recognize May eighteenth to twenty-fifth, two thousand twenty-five as Hepatitis B Awareness Week. This observance reminds us of the importance of education, testing, and prevention in the fight against hepatitis B. I want to take a moment to thank the students of the Archbishop Mitty High School who through Team HBV San Jose have shown real leadership by bringing forth this proclamation. As hepatitis B continue to have its significant impact on the AAPI community. It's in fact one in ten Asian and Pacific Islanders, often without early symptoms. The good news is that simple blood tests can detect it and vaccination offer reliable prevention. Today we acknowledge both challenges and the tools we have to address them, address them. Thanks to the leadership of our student and the engagement of our broader community, and we continue to work towards healthier future. I want to thank you to Councilmember Kamei and Mayor, would you please present the proclamation prior after this young gentleman would like to make a little speech? Please come on up the case. And uh on behalf of the ALC and Team HPV San Jose, uh I'd like to thank uh Mayor Mahan, uh Councilmembers Doan and Councilmember uh Kamei, and the rest of the City Council uh for proclaiming May 18th through 25th as hepatitis B awareness week here in the city of San Jose. Uh hepatitis B is a contagious liver infection that disproportionately affects Asian and Pacific Islander communities, often without symptoms until it's too late. In the US alone, 1.2 million are living with chronic HPV, and two out of three are unaware of their deadly infection. Yet it's preventable through vaccination and early screening, which is why awareness is so important in our community and why this proclamation matters.
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