San Jose City Council Meeting – December 2, 2025

The San Jose City Council met on December 2, 2025, to address a range of items including ceremonial recognitions, updates on winter storm preparedness, a major bond financing for clean energy, the annual retirement investment fee report, acceptance of park projects, merit increases for appointed officials, the semi-annual Climate Smart San Jose update, a heat pump contractor incentive pilot, customer bill credits from San Jose Clean Energy, and a highly debated amendment to the Historic Preservation Ordinance (Title 13). The meeting included numerous public comments, particularly on the historic preservation ordinance, which was approved on a 9–2 vote.

Consent Calendar

• Deferred item 4.1 (amendment to title 16 gaming control) unanimously.
• Approved the remaining consent calendar as a whole (unanimous, Ortiz absent).
• Approved land use consent items 10.1A and 10.1B (unanimous, Ortiz absent).

Public Comments & Testimony

• Item 3.1 (City Manager's Report on Winter Storm Preparedness): No public comments.
• Item 3.3 (Green Bonds): No public comments.
• Item 3.4 (Retirement Fee Reports): No public comments.
• Item 3.5 (Park Bundle): No public comments.
• Item 3.6 (Merit Increases): No public comments.
• Item 6.1 (Climate Smart San Jose Update): Two speakers: Lena Ein from Santa Clara Valley Open Space Authority expressed support for incorporating natural and working lands, and noted that sprawl contradicts growth policies and increases emissions. Lyndon Shea (retired ESD, now CNPS) urged greater emphasis on native plant restoration and pollinator corridors in city parks and residential landscapes.
• Item 6.2 (Clean Energy Pilot Programs): Two speakers: Linda Hutchins-Knowles (Mothers Out Front Silicon Valley) strongly supported the contractor heat pump incentive and urged considering reach code updates for single-family homes. Blair Beekman asked whether the pilot fits into community energy infrastructure concepts.
• Item 6.3 (Customer Bill Credits): Linda Hutchins-Knowles spoke again, suggesting that high-income residents could voluntarily donate their $40 credit to a resilience fund for heat pumps, though she acknowledged the impracticality of immediate change.
• Item 10.2 (Historic Preservation Ordinance Amendment): 27 speakers (in-person and via cards). Many speakers from the Friends of Levitt Pavilion San Jose (e.g., Laura Wolford, Sally Schroeder, Michael McDermott, Thomas Aguilar, Michelle Drayband) urged approval of the staff recommendation, arguing it clarifies existing authority and will allow the Levitt Pavilion project to move forward, activating St. James Park and bringing economic benefits ($14 million annual spending) and free concerts. Opponents, including Susan Brandt-Hawley, Sean Atkinson, Mark Biagini, and Mike Sodergren (Preservation Action Council San Jose), argued the amendment reduces historic protections, could allow demolition of landmarks, lacks adequate environmental review (need for a supplemental EIR), and that the process was rushed and flawed. Some speakers (e.g., Maria Peterson, resident near St. James Park) expressed concerns about noise, trash, and quality of life. Others like Camille Chihate and Steve Paulson supported the amendment for downtown vibrancy. Councilmember Kamei offered a substitute memo to require a "compelling public interest" finding for overrides, supported by PACSJ.

Discussion Items

• Item 3.1 – City Manager's Report: Jennifer Maguire reported on winter storm preparations: 35,000 storm inlets cleaned, 31 pump stations inspected, portable pumps staged, overnight warming centers at Evergreen Branch Library and Roosevelt Community Center, and multi-lingual emergency alerts.
• Item 3.3 – Green Bonds (CCCFA Clean Energy Project): Staff presented a complex prepaid energy transaction involving up to $1.25 billion in tax-exempt bonds (30-year, remarketed every 6–9 years). The city assigns partial rights under power purchase agreements (PPAs) to Morgan Stanley, who prepays for 30 years of energy; the city buys back energy at a discount (minimum 8% annual savings first term, ~$5/MWh thereafter). Risks include volumetric, market, and counterparty risks – mitigated by partial assignment, substitution rights, and termination provisions that return city to original PPAs. The bonds are not city obligations. Council approved after clarifying questions.
• Item 3.4 – Retirement Fee Reports: Jay Kwan (ORS) reported that total expense ratio (management fees + operating expenses) was 98 basis points; internal monitoring cost 6 basis points. Management fees have declined by almost 0.25% over a decade, saving ~$17 million in 2024. Council accepted the reports.
• Item 3.5 – Park Bundle (10,400, 9,111, 9,102): Councilmember Tordios commented on the two remaining parks in the series. Staff recommendation approved.
• Item 3.6 – Merit Increases for Council Appointees: Approved 2.5% merit increase and additional 40 hours of executive leave for City Manager, City Clerk, City Auditor, and Independent Police Auditor, retroactive to July 1, 2025.
• Item 6.1 – Climate Smart San Jose Update: Staff presented the 2023 community greenhouse gas inventory (approx. 500 million metric tons CO2e, 16% lower than 2017 baseline but slight uptick since 2021). Transportation accounts for 51%, building natural gas 21%. The 2025 administrative plan update was presented, incorporating carbon neutrality by 2030 goal, natural/working lands, streamlined metrics, and annual departmental work plans. Councilmember Cohen noted the flattening progress and urged continued push on transportation electrification and building electrification. Report accepted.
• Item 6.2 – Clean Energy Pilot Programs: Staff evaluated two pilots: (1) Incentive for commercial electric leaf blowers (not recommended due to low GHG impact, high cost, and staff time) and (2) Contractor incentive for heat pump installations ($1,000 per first six installations, up to 15 contractors, $100,000 total). Council approved the contractor incentive pilot and a companion memo directing further assessment of EcoHome improvements and potential reach code updates.
• Item 6.3 – Clean Energy Customer Bill Credits: Council approved the distribution of approximately $25 million in bill credits to San Jose Clean Energy customers.
• Item 10.2 – Historic Preservation Ordinance Amendment: Following extensive public comment, Councilmember Tordios made a substitute motion to approve the staff recommendation (amending Chapter 13.48 to add an override provision mirroring CEQA, allowing Council to approve projects that cause detrimental impacts if social, economic, or other benefits outweigh harm). Councilmember Kamei offered a substitute memo requiring a "compelling public interest" finding, but it was not adopted. After debate (Mayor Mahan and Tordios argued the staff version provides clarity and retains Council discretion; Kamei argued for a higher standard to protect landmarks), the staff recommendation passed 9–2, with Councilmembers Kamei and Casey voting no.

Key Outcomes

• Item 4.1 deferred unanimously.
• Item 3.3 approved: Resolution authorizing up to $1.25 billion in CCCFA Clean Energy Project revenue bonds; city manager authorized to execute related documents.
• Item 3.4 accepted: Retirement plans' comprehensive annual investment fee reports for 2024.
• Item 3.5 approved: Park bundle for Elizabeth P. Boyer Park, City Gardens Park, and others.
• Item 3.6 approved: Merit increases and executive leave for council appointees.
• Item 6.1 accepted: Semi-annual Climate Smart update and 2025 plan update; transition to annual updates.
• Item 6.2 approved: Contractor incentive pilot program (not to exceed $100,000) and staff direction to report back in spring 2026.
• Item 6.3 approved: Customer bill credits distribution.
• Item 10.2 approved (9-2): Ordinance amending Chapter 13.48 of the San Jose Municipal Code to add an override provision for historic preservation permits.

Open Forum

Three speakers addressed non-agenda items: Bob Palacio requested removal of an unhoused vehicle encampment at 985 Timothy Drive (District 3), citing safety issues; Blair Beekman urged more public input on Bay Area emergency planning and technology accountability; Susan Bassey reported mistreatment by a police officer during a records request and raised concerns about CLET restraining order enforcement.