Thank you.

All right, colleagues, I'm gonna start calling our meeting

to order, welcome everybody.

Thank you all for being here, welcome.

Once again, we'd like to call to order this meeting

of the San Jose City Council for the afternoon

of December 9th.

Tony, would you please call the roll?

Sorry, I got distracted with another question.

Kamei?

Here.

Campos?

Present.

Tordios?

Here.

Cohen?

Ortiz?

Present.

Mulcahy?

Here.

Duan?

Here.

Candelas?

Here.

Casey?

Here.

Foley?

Here.

Mahan?

Here.

You have a quorum.

Thank you.

Now, if you're able, please stand and join us

in the Pledge of Allegiance.

I pledge allegiance to the flag of the United States of America and to the republic for which it stands, one nation, under God, individual, with the freedom of God.

thank you for my second invocation in december i would like to invite father justin lay of our

lady of lavong to join us at the podium and provide today's invocation just before he does

that i'll share just a little bit about father lay and his incredible leadership here in our

community father justin currently serves as pastor of our lady of lavong parish located just down

Santa Clara from City Hall and Shepherds, one of the largest Vietnamese Catholic communities

in the region. He previously served as pastor of St. Maria Goretti Parish. Both parishes long

recognized for their service to our city's vibrant and dynamic Vietnamese community.

In addition to his parish leadership, Father Justin has made significant contributions to the

broader life of the diocese and to our civic community. His service includes roles as chaplain

to the Catholic Professionals Club,

advisory board member to the Catholic Foundation,

member of the Priest Council,

and member of the Diocesan College of Consulters,

where he advises the bishop

on important administrative and financial matters.

He also currently serves as the Episcopal Vicar

for Vietnamese Ministry,

supporting more than 30,000 Vietnamese Catholics

who call the Diocese of San Jose home.

Beyond his work with the church,

Father Justin has been a bridge builder in our city.

In recent years, he has organized the annual Tet Celebration, an event that welcomes more

than 70,000 Vietnamese residents and visitors and friends from across the Bay Area.

The celebration has enriched San Jose's cultural life, strengthened community ties, supported

small businesses, and showcased the many contributions of our Vietnamese community to the diversity

and vitality of our city.

Father Lay, thank you for being here with us today

to be our invocator.

Welcome.

Thank you, Mayor.

Let us place ourselves in the presence of God.

Loving and gracious God,

we gather this afternoon as a community

and trust it with the care of our city and its people.

We ask you to bless our mayor, our council members,

and all who labor for the common good.

Grant them wisdom to discern what is right, courage to choose what is just, and compassion to consider the needs of every resident, especially the most vulnerable.

Bless our city of San Jose, its families, its workers, its neighborhoods, and all who enrich

its vibrant diversity.

Inspire in us the shared commitment to build a community where respect, understanding,

and cooperation flourish.

Guide us toward unity and peace.

Help us to see one another not as strangers, but as neighbors and partners in shaping a

a future filled with hope.

We ask your blessing upon this meeting

and upon all who serve our city

with integrity and goodwill.

Amen.

Thank you, Father.

Appreciate you being here.

Thanks for your service to the community

and Merry Christmas to you and your parish.

That's our invocation.

We're on to ceremonial items.

Councilman Kamei and Councilmember Campos,

if you would join me at the podium,

we will recognize and proclaim Holiday Children Book Drive Week.

Thank you so much.

Today we're gathered to kick off and proclaim December 8th through 14th

as the Holiday Children's Book Drive Week,

A special collaboration between District 1, District 2, Los Bomberos of Northern California,

a group of active and retired firefighters from the San Jose Fire Department,

and our wonderful San Jose Library.

Last year, we collaborated with Los Bomberos for their Christmas toy drive.

This year, we're partnering again and with Council Member Pamela Campos from District 2

and the library team to provide more resources to our kids this holiday season.

This event brings together to promote literacy and support for our community's

young readers. Many children in our community lack access to books and this

book drive aims to provide them with as many resources as possible. Reading opens

doors to new worlds, sparks imagination, and builds lifelong learners. I'd like to

extend a special thank you to our partners the fire department the library

for their tireless efforts in making this initiative possible we're grateful for

their dedication to our community their commitment to promoting literacy and

every book donated every word read every moment shared brings us closer to a

brighter future for all let us come together to make this holiday season

and brighter for our communities children and give the gift of education thank you

Thank you.

Thank you.

Thank you.

Thank you.

All right.

Thank you.

Vice Mayor Foley, if you would join me at the podium,

we will recognize the Trash Punks and Sabore as well.

And welcome to our guests.

guests come on down as well.

Good afternoon. Today I'm here to honor a remarkable partnership between the Trash Punks and Sabori's Well.

Justin Imamura of the Trash Punks first met Sabori Oye Oye of Sabori's

well through Vanessa Rogier. The Trash Punks conservation manager who you'll

remember gave the invocation last week. Vanessa has brought people together for

a gathering and in the garage at her house Sabori and Justin began chatting

with one another. As they talked, Sabore shared that his hometown of Owosso, Nero,

Kenya, struggled with the same issues Justin and his team tackle every day here

in San Jose. During this conversation, Justin's mind was open to the

realization that despite their hometowns being continents apart, their

communities faced the same challenge. The harmful impact of trash, dumping, and the

lack of sustainable waste practices. Through this, the idea of Project Pickup was born,

and three short months later Justin and Vanessa boarded a plane to travel to Kenya, marking

the Trash Punk's first global initiative. Together on this trip, they brought hundreds

of community members together to transform a town without waste infrastructure into a

cleaner, more sustainable place to live. The work of Project Pickup is a reminder that

But real change often starts with simple human connection.

This partnership embodies the spirit of international goodwill, strengthening the connection between

San Jose and Kenya through service, collaboration, and a mutual commitment to sustainability.

What Justin, Vanessa, and Sabore, and their teams accomplished demonstrates the power

of global community action.

When uniting across borders, they didn't just pick up trash, they built a bridge connecting

our communities and creating a lasting environmental and cultural impact, just like the Trash Punks

have been doing here in San Jose.

Today the City of San Jose proudly presents this commendation to the Trash Punks and Sabori

as well for their project pickup initiative and for leadership rooted in community and

sustainability.

Thank you for showing us what's possible when passion meets purpose and when communities,

no matter how far apart, come together to serve one another.

Sabori, would you like to say a few words before Mayor Mahan presents the commendation?

Thank you very much.

Good afternoon, Mayor Mahan, Vice Mayor Foley, City Mayor Council members, and everyone gathered

here today.

On behalf of Trash Punks, Boris Well and the community in Wasonyuro, it is an honor to

receive this recognition.

Thank you for seeing our work and for welcoming me here with such generosity.

Project Pickup, our shared effort to collect, recycle and reuse trash, has been possible

because of the partnership which this city, your community and the many volunteers and

donors who believed in the work and deeply grateful for every heart and every heart that

helped make this project a success.

In Awaso Niro, we face challenges very similar to those ones you face here, protecting our

environment, caring for our waterways, and keeping our communities clean and healthy.

And though this partnership we have learned that the people of San Jose value many of the same things we do.

Family, resilience, caring for the land, and lifting one another up.

The Trashbank efforts in Kenya remind me very much of the mayor weekend cleanup here in San Jose.

In both places, people come together and beautify their community.

And in Kenya, these efforts have grown even further,

creating micro-business opportunities, new jobs, and products made from recycled plastic.

We began as a cleaning up trash has now become a way for families to support themselves

and for young people to see future in protecting the environment.

Even though our homes are thousands of miles apart,

this partnership has built a strong bridge between San Jose and Awaso Nuro.

And as we continue this work,

I hope we can keep creating opportunities to learn from one another

through culture, through service, and through the friendship of our communities.

There is a Massey proverb I often share.

If you want to go far, go together.

The partnership shows the truth of these words.

Together, we are doing something none of us could do alone.

Thank you for the city of San Jose for honoring this work and recognizing our community.

Your belief reminds us that connection is powerful.

And that's when we support one another.

Hope can travel very long.

Thank you.

Look forward to growing this relationship for many years to come.

Thank you.

Thank you.

Thank you.

Thank you, Vice Mayor.

Now I'd like to invite Councilmember Ortiz to join me at the podium and we will recognize

and proclaim Dia de la Vergen de Guadalupe.

Thank you so much, Mayor.

Before I begin, I would like to invite my colleague, Councilmember Condeles, to please join me

as we come together to proclaim one of the most cherished and unified traditions in our

community.

Please, yes, join us.

Dia de la Virgen de Guadalupe.

Each year on December 11th, millions of people across the world gather with their families

at midnight to offer roses, prayers, and songs to Our Lady of Guadalupe.

as they welcome the morning of December 12th, the official feast day.

This cherished tradition traces back to the miraculous apparition of La Virgen de Guadalupe

on the Tilma of Juan Diego in 1531 on Tepeyac Hill, an event that continues to offer hope,

comfort, and strength nearly five centuries later.

Here in San Jose, La Virgen de Guadalupe is more than a religious symbol.

She is a representation of identity, resilience, and profound love.

She reminds us that dignity belongs to everyone, especially communities that have had to fight

hardest to be seen and heard.

Her mantle embraces families who have crossed borders, endured hardship, and held tight

to faith as the light that guides them forward.

Our Lady of Guadalupe Parish has been a spiritual home for generations of East San Jose families.

A place where tradition lives, where culture thrives, and where faith is practiced with joy, music, and community.

Today, the city of San Jose is proud to recognize this feast day,

honoring the cultural and spiritual importance it holds for so many residents in our great city,

throughout the Diocese of San Jose, and of course, across the Americas.

And so together, alongside our mayor, we will present this proclamation to Father Ugo

and Father Andre, who accepted on behalf of Our Lady of Guadalupe Parish

in recognition of their leadership, their ministry, and their care for the countless families

who find comfort, belonging, and love within their community.

I want to thank you, fathers, for all that you do to uplift the faith of our community and our residents

and strengthen the bond that unites us as one community.

And now I'd like to invite Father Hugo to please share a few words

about what this feast day means for the devotees of our parish and throughout our diocese.

Good afternoon, Major Matt, Council Member Peter, members of the City Council, and members of our

community. It is an honor to stand here on behalf of Our Lady of Guadalupe Parish in San Jose.

I want to express my deep gratitude for this meaningful proclamation, December 12, 2025,

as Dia de la Virgen de Guadalupe in our city.

For millions across the Americas, Our Lady of Guadalupe is more than a religious symbol.

She is a mother who brings hope, dignity, unity.

When she appeared to Saint Juan Diego in 1531, she offered the tender words,

Am I not here? I, who am your mother?

Those words continue to speak powerfully today, especially to the immigrants, working families,

and all who seek belonging, comfort, and strength.

In our parish community, we witness her impact every day.

She inspires generosity, resilience, service, and deep compassion for those most vulnerable.

She brings together people of many cultures, languages, and backgrounds.

and in a vibrant and diverse city like San Jose, she reminds us that we are one family,

called to build bridges, not barriers, hope, not fear.

This proclamation honors not only a feast day, but the heritage, faith,

and contributions of thousands of families who have shaped our neighborhoods

and enrich the cultural fabric of our city.

It recognizes a tradition that has lifted our community

through difficult times and continues to unite us in joy and purpose.

On behalf of Our Lady of Guadalupe parishioners,

I thank Major Matt, Councilmember Peter Ortiz,

and the entire City Council for acknowledging the spiritual

and cultural significance of this day.

May this proclamation inspire us to keep working together

for a more compassionate and united San Jose.

Thank you all.

God bless America.

Thank you, Father, for the council members' recommendation

on behalf of the council on behalf of proclaim

the ability of every day to the president.

Thank you so much.

You're very welcome.

Welcome.

A great day.

Thank you so much.

Great job.

All right.

Thank you all very much.

We're on to orders of the day.

Does anyone on the council have any changes to the printed agenda?

Not aware of any.

We have some items for consent, I believe, to poll.

Nothing for orders of the day.

Okay.

Moving on to the closed session report.

The mayor and councilman in closed session discuss a number of items,

and there's nothing to report out.

Okay.

Thank you, Susanna.

Appreciate it.

We're on to the consent calendar, and I believe Councilman Mulcahy would like to poll item 2.9.

Councillor compost would like to pull item 2.10 and

Did we have a

Speaker on item 2.14

Tony do you know I believe we had an applicant VNH builders

Yes, I haven't I don't have a card for them, but I was informed that I have a card if VNH builders is here for 2.14

I believe is an applicant they're entitled to five minutes. So we'll take that up if they arrive

Yeah, I have a card for 214, but it's not not the applicant. Okay. No problem. Great

Well, we'll see if we have a single motion for all these or not, but let me start we'll just go in order

We'll start with 2.9 councilmember Mulcahy. Great. Thank you mayor

Maria if you wouldn't mind coming down, I'd appreciate it very much. I

I'm really doing this for the benefit of the council

because

Several of us have BIDs in our district

Many of you have talked about doing more of them in your district and the nexus between a BID and

Maria's shop is that the fees that go into the BID collections

Come through the city's pro you know

City's ability to actually collect the business licenses and a piece of that then goes into the BID fund now I

I was the former president of the Willow Glen Business Association for a number of years,

and part of the reason that we were motivated to do a community benefit improvement district

is because there's a greater guarantee of the resources coming to the organization because

it's collected through property tax and who doesn't pay their property tax bill.

So we were motivated to do a P-Bid for that very reason, and because the BID,

the volatility of the collections one year as a business association you might

get a hundred percent and it was who knew was always after an amnesty because

an amnesty is done to get people back on the rolls well three years later you'd

have this decline from you know in the high 90s of collections and by the four

years out you'd have 50 percent and that's not just a reflection on the

challenge to that association but it also means that as a city we are not

collecting the business license tax that we're supposed to be getting anyway so I

asked Maria to come down because I just wanted to query a little bit you know

we're I think both around the same age here it's well not age life-wise but

here at City Hall and just want to understand a little bit from you are we

looking at ways where we don't have to rely on an amnesty to a get people to get on the tax rolls

and pay these fees and how we can do a better job at providing greater certainty for the business

district operators and managers that rely on us to collect the bid fees thank you council member

Maria Ober, Director of Finance. This is a rather complicated situation. We have

over 96,000 registered businesses in the city right now. So the amnesty program

is meant not just to catch those who are late in their payments, it's also a way

for us to catch those who have not yet registered with us. New businesses are

started all the time, people move in, they don't know always that they are

required to register and pay a business tax in the city of san jose so it's part outreach and

education and part getting people back in compliance so i believe in the past business

improvement district assessments were built separately we have improved that we are now

putting them together for those businesses that are in one of these districts they will be billed

together with their business tax so there's a separate line item we think that has actually

helped make it less confusing because when you get a separate bill it sounds business like i already

paid my tax why am i paying it again unfortunately with the two newest districts that came on board

in the last year we had to build them separately from the regular business tax because we were

going through a modernization of the system so that should take care of itself next year they're

now on that business tax collection system so that brought them down so they are low for our

standards they're around 60 percent collection to date the more mature ones Japantown and downtown

are very very high they're around 90 percent just shy of 90 percent but yes it is a struggle

i think what we need to do we need to do a better job outreaching to the business associations and

have them help us educate the businesses in the district of the importance to pay

this assessment because to the council members point if we don't collect that

funds we can't remit them to the business districts and they don't have

the money that they determine in the budget that they needed to do for their

improvement projects so when we spoke before you had indicated that it was

unclear whether we're mailing a bill to these businesses for their business

license and a line item on there for a bid correct so i've verified with staff we do mail out

the business invoice we mail it on the 15th of the month prior to it being due so they have 30 days

advance notice that your business tax renewal and the bid if you're part of that is coming due

we mail again seven days after the invoice due date for those who haven't paid yet and then we

continue to reach out until they pay we can also go to a collection agency and

help with that in addition to then we do do these amnesty programs just to get at

least the base of what we're owed we forgive not the base we never forgive

the base tax or the base assessment we forgive penalties and interest that's

the only thing we forget so at least we get them back in compliance so when I

get my property tax bill it comes in a fancy color with perforated tear-offs so I know that you know

when I'm when this is due you know are there any tricks that we can learn from other agencies that

are collecting fees that that help us do a better job of capturing I absolutely think there's room

for improvement we're looking at a new business tax system to make it a little bit more efficient

as well we're looking into improving our website you know little things like you're able to print

your own business tax there are you know there's a lot of things we can do to get and get more

attention but i think at least for the new ones and those new bid's that are in the planning

having this amnesty will go a long way to help educate them that look here's you know you are

required to pay here's a nice way for you to get in compliance without having to pay late fees and

and penalties no one wants to do that but yes we are always looking at better

ways to do our collections okay just want to reiterate the fact that it

doesn't look like San Jose will slow down in sponsoring creation of or the

interest in creating more of these BIDs and I just think this particular piece

is the whole linchpin to the effectiveness of our BIDs and so I thank

you for taking a look at how we can do a better job of collecting these really

precious resources that are actually giving the vitality and spirit of the BID

effort so thank you very much thank you and we appreciate your input with that

mayor I'll move to approve the consent agenda great thank you thanks for

highlighting that and for the context for the record I'm sure Maria is quite a

bit younger than you but you said we're about the same age you meant you meant

longevity here I just wanted to get that on the I did yeah fair enough oh turn

now to councilor Campos who's pulled item 2.10 for questions and comments

Thank you Mayor. Before I begin I want to acknowledge that we have Mr. Fujimoto's

nephew Wes Kashiwagi here with us today and he submitted a comment card for this

item. Wes thank you so much for being here. Thank you for sharing your family

story as we celebrate this legacy. Last year District 2 neighbors celebrated the

newest addition to our park system with the opening of Serenade and

Center Pocket Park. What was once a blighted and underutilized traffic

island has now become a beautiful community space that supports

connection, health, and neighborhood pride. And this achievement was led by the

previous District 2 Councilmember in close partnership with the residents who

helped secure funding and shape the design. It is a powerful example of what

we can accomplish when the city and the community work side by side. So I want to thank and

recognize former Councilmember Jimenez and the PRNS team for bringing this project to

life. Today we have the privilege of naming this park for Tetsujio T. Fujimoto, an exceptional

public servant who dedicated nearly 30 years of service to the city of San Jose. He was

deeply respected as a mentor, a leader, and a caretaker of our public spaces and

his influence is seen throughout the city at the Municipal Rose Garden, the

Japanese Friendship Garden, and Happy Hollow Park and Zoo. The standards that

he continued to set through the staff that he guided, supported, and encouraged

brings so much depth to his life story and even more depth to his contributions.

During World War II, Mr. Fujimoto served in the military intelligence service while his own family and community were forcibly removed from their homes and incarcerated in Japanese American internment camps.

And at a moment when his community was denied basic freedoms, Mr. Fujimoto still chose service, first to the United States and later to the city of San Jose.

His life reflects profound resilience, loyalty, and civic devotion, and it is also especially

meaningful that this nomination came directly from the Parks Department staff.

Taseigo Fujimoto was considered among several nominees, but he rose to the top because of

the enduring respect from those who worked in the very system he helped shape.

With that, I am honored to support the staff recommendation

and move to officially designate this space

as to CGO's Fujimoto Park, located along Center Road

between Serenade Way and Diamond Heights Drive.

Mr. Fujimoto leaves us not only a legacy to admire,

but a foundation to build upon,

a reminder that the spaces we steward today

become the places future generations will inherit.

Thank you, and if it's okay, Tony,

we hear from Ken at this time? Yeah I'll get us to public comment in just a

second let me see if we have a motion on the floor and a second I believe from

Councilmember Campos thanks for highlighting Sugiyo Fujimoto's

contributions thank you for being here we did not have any other items polled if

we do have on item 2.14 public comment from VNH builders please just flag that

that and we'll give the applicant extra time but with that yes Tony let's move

to public comment on consent as a whole yes so I don't have a card for Ken but

if Ken wants to come on down come on down followed by Gary Wes and Brian and

again if the BHN builders come on down VNH builders if they're here they are I

don't know if they're here I don't have a card for that got it

Thank you.

Welcome.

Good afternoon.

So Tsugyo Fujimoto was my uncle on my mom's side.

I just wanted to do a few things to acknowledge the people that actually made this happen,

and that was Gary Zatkin, Dan Summers, Ed Flammati, and John Deono.

Those are gardeners that used to work with my uncle when he was working for the city,

and without them, it never would have happened.

It's incredible.

The entire family is very honored that this is going to happen.

incredible, or I'm assuming it's going to happen. I'll tell you a little bit about my uncle. He was

born in Ielton, California, which is on the Sacramento Delta. It's about 20 miles from

Sacramento. My family had a small hotel there until the war, and then they were removed to the

internment camps. They were actually sent all the way to Arkansas, and when it became legal,

my uncle actually volunteered to join the army like most of the young men at the internment camp.

So basically everyone in my family that was in their 20s volunteered. After the war it was pretty

tough so they came back to San Jose or moved to San Jose and as you can imagine the anti-war

propaganda basically made finding a job impossible. So they were forced to work in the fields or take

whatever whatever employment they could find. So I'm actually grateful to the city for giving him

a chance to to make a living to restart his life basically. All the the entire Japanese American

community basically got pushed back a generation in terms of achievement and growth in the U.S.

But there's a term called gaman in Japan.

If you know that, it's basically perseverance through the unimaginable.

And I think my uncle is actually a really good example of that.

So he worked at the Japanese Friendship Garden.

Do you want to go ahead and finish your thought?

Okay, that was kind of it.

He also, I'll say one thing that he, life that he was able to afford,

He actually studied with Ansel Adams because his hobby was photography.

He loved ballroom dancing.

Anyway, my family is very, very grateful and thankful that this is happening.

Thank you.

Thank you.

Next speaker.

This time I brought my own clock.

Also, thank you.

The main reason I thought, if anything I see Happy Hollow,

I don't know if anybody really really understands just what a precious

pearl this is for your city and I would humbly suggest that anything you have to do to keep it

going please do I read through everything and I'll let the gentleman that has the letter I tend to

think there's both sides to this I think the city had a point I think he has a point too but anything

to keep happy hollow and making it better and eventually shooting to where it's free for all

children to enjoy whenever they want to go thank you thank you next speaker

hi it's my pleasure to say a few words about my former manager supervisor T

Fujimoto was the right person at the right place at the right time that the

city was developing and the Rose Garden was coming about TV I believe was a

gardener and he knew and he had learned so much and given so much of himself

that in time he was elevated to become a maintenance supervisor but he had first

laid a lot of groundwork at the Rose Garden at Happy Hollow at the Japanese

Friendship Garden and other parks which are too numerous to read but I would say

in the words of my friend Ed Flamani that he learned from Tito always do your

best of your job and give encouragement to your fellow employees." Another fellow,

Victor Lepari, said, he strived for me to learn as much as I could about my new job

that I knew nothing about. His extensive horticultural knowledge really

impressed me and gave me the motivation not only to learn about the care,

maintenance of roses, but also learn how to be part of a team to enhance our rose

garden for the residents and tourists who visited this rose garden. He was a man

who trusted his workers to do excellent work and he strived to do that. He took

his job very seriously and then wanted his work to do the same not only in the

horticultural work that the job demanded also in public relations with everyone

came to the Rose Garden and all our city parks you know I could speak in volumes

about the man but he was just noble he was honest he was straight he would say

learn how to cut plants learn how to use pesticides get your applicators license

take pesticide training learn bot and they learn how to run equipment and all

of these are elements that he did and thing about is and he always imparted

what he knew and how he did it and he made a lot of us better for what we did

so we're thankful and grateful for many thank you that's your time back to

Council okay thank you all for participating in public comment Thank

You Tony I don't see any additional hands up so let's vote on the consent

calendar as a whole motion passes unanimously all right so that was

unanimous approval of all of the items on consent one door regular agenda and

We'll start with item 3.1 report of the city manager. Thank You mayor city council. I do not have a report today

Thank You Jennifer moving on to our next item will actually be three items where we will hear a joint presentation

So items 3.3 3.4 and 9.1

Will be heard concurrently

But voted on separately so we will I'll ask colleagues if possible just

for everybody's clarity to move item 3.3 3.4 and then 9.1 separately before the

third item 9.1 I need to read a brief script but we'll take the staff

presentation all at once and Maria whenever you're ready I'll turn it over

to you we lower my chair so I don't swivel

All right, good afternoon, Mayor, members of Council, City managers, staff and members

of public. I am Maria Oberg, Director of Finance. And with me in the box today is Victor Lowe,

our Deputy Director of Finance, Overseeing Accounting, as well as Benjamin Lau, Managing

Partner from Macias, Ginny and O'Connell, our external auditors. So we are going to

relatively quickly walk you through what may not be the most exciting presentation today,

but we like it. So before you are, items 3.3, 9.1, and 3.4. Let me get this one. So this is a

culmination of a year-long effort that's done not just in finance, but by fiscal staff across the

entire city organization. I think it's one of the finest examples of citywide collaboration.

that we have. It also includes members from city attorney's office, our internal auditor,

external auditors, deputy directors, department directors. We include them all in this effort.

As you can see on this slide and the next one, there are a lot of reports that get done. It's

not just the giant bound copy of the ACFER, or Annual Comprehensive Financial Report.

We have several other audits, some standalone financials for our airport, our clean energy department, and others.

But there are also financial statements and compliance reports associated with our bonds.

You will see check marks next to most of these on the next two slides.

The ones that have just check boxes, those are in process.

So the GAN appropriation limitation will be done next week.

And then on the next page, we have the single audit, which handles all of our federal grants, and that will be done.

Work will start on it in January, and it will be done and completed by March 31st.

So with this, I am going to hand it off to Victor to take us through the ACFER.

Good afternoon, Mayor, Council Members, and public.

The annual comprehensive financial report effort is primarily divided into five sections.

The introductory section includes items such as the letter of transmittalcy and the organizational charge,

and this section is not audited.

The financial section contains the basic financial statement and the notes,

and these components are fully audited.

The required supplementary information, including the MD&A management discussion and analysis,

and the budgetary comparison schedule is unaudited,

but it is subject to limited review and must agree with or tie to the basic financial statement.

The supplementary information, such as non-major fund combining statement,

is audited in relation to the basic financial statement.

And lastly, the statistical section is not audited,

but it is reviewed for consistency with the rest of the report.

The statement of the net position for the city effort as of June 30, 2025, on page 27

of the effort hard copy, indicated the city's assets and liabilities remain stable compared

to the prior year.

Total net position increased by $85 million, but after the restatement of negative $75 million,

the adjusted increase is approximately $10 million.

The next slide summarizes the key factors driving this change.

The city's net position increased by $85 million, driven by several key factors.

$29 million increased higher properties and other tax revenue, $10 million higher utility

fee revenue, and $24.5 million in other revenue.

Primarily $18 million came back from the FEMA reimbursement related to the COVID-19 and the 2023 winter storm disaster, along with $5 million from the Google Community Benefits Program.

Overall, expenses remain stable compared to the prior year.

Increases in public safety and community service expenses were largely offset by the decrease in general government expenses.

So this increase in net position was then offset by a negative $75 million restatement required by the new governmental accounting standard board, Gatsby, statement number 101 for compensated absence.

Under the previous statement, Gatsby 16, the city recognized compensation absent liability only for vacation carryover and sick leave cash out, which applied only to certain Kazakh employees hired before the negotiated cutoff day.

The Gatsby 101 expanded this requirement by requiring governments to also recognize the value of the sick leave that employees expect to use as a pay time off in the future.

So this represents a new and significant liability that was not recorded previously, resulting in the negative $75 million restatement.

After effecting this one-time adjustment, the city's net position increased by up possibly $10 million for the year.

Now, I will proceed with an overview of the successor agency audited financial statement,

item 9.1.

Let's review Sarah's statement of fiduciary net position.

Sarah will put a net position deficit of $856 million, which is primarily the result

of the 2017 senior and subordinate tax allocation bonds.

This deficit will gradually improve over time with full repayments of the bond expected

by August 1, 2025.

Let's take a look at Sarah's statement of change in fiduciary net position.

Overall, the additions, deletions, and resulting changes in net position were consistent with

the prior year.

Sarah reported a $111 million increase in net position for the year, which reduced the

overall deficits to negative $856 million. At this point, I would like to turn the presentation

over to Ben Lau, MGO Audit Partner, who will provide an overview of MGO Independent Auditor's

Report and share the audit results.

Ben Lau, MGO Audit Partner, MGO Audit Partner for the Engagement. As earlier slide, Maria

already showed the financial statement that we have opined on. I would like to report

the results of the audit. We have issued a modified opinion for all the audit reports

that we have reviewed and audited, which is, in other words, a clean report for all of

the reports that we have audited. The basis of our audit opinions are based on general

accept auditing standards as well as government auditing standards. So we are following two

auditing standards for auditing government entities. And for this year, in relation to

your financial statements for stand-alone reports as well as the annual financial report

APFR, we have included an emphasis of a matter which is what Victor earlier mentioned about

the implementation of GASB statement 101 on compensated absence. So the City has successful

actually implement that with no issues. Below is a list of significant individual

items that we have included in the standard letter, required communication to you all

for those that charge with governance. A few of the highlights I want to indicate, first

one is in relation to adoption and changes in accounting policies, which is what I previously

reference to implementing GASB statement 101 regarding compensated absence.

Another one that I want to highlight on is on the left bottom corner, audit adjustments

and uncorrected misstatements.

We did not identify any corrected or uncorrected misstatements, and in other words, the city

did a great job of closing their books to ensure that those are clean records for us

to perform the audit.

We have no disagreement with the management and we are not aware of any consultation by

the city with other accountants.

We also received the representation from the city's department head and personnel indicating

that they take responsibility of the financial statement.

And lastly, in relation to internal control and compliance matters, as Maria mentioned,

we have not identified any reportable findings in relation to internal control over financial

reporting and lastly in relation to single audit which is a fed audit of the

federal awards we expect to issue the financials issue the audit by March 31st

2026 and with that I will pass that back to Maria thank you Ben this marks the

fourth consecutive year that the city has received an unqualified audit opinion

which obviously we're very thrilled and proud of.

It's also the fourth consecutive report where we've received a report

to those charged with governance without any new findings.

Some of the contributing factors to this include a very disciplined year

and process to ensure we stay on target and everyone knows what to deliver when.

Enhanced interdepartmental collaboration between finance

and all the operating departments to improve both data integrity

and reconciliation work.

We're looking at ongoing system modernization and automation, which helps streamline financial workflows and also strengthens internal controls.

And finally, we are engaged in targeted staff development programs, which foster consistency between the departments,

enhances the technical expertise and accountability across the organization.

And so while I did say that this is a true collaboration between all departments in the city,

I do want to take this opportunity to thank a team that tends to want to stay out of the limelight,

which probably means they deserve the limelight the most.

But my accounting team and the finance department who are actually here, they deserve a lot of kudos.

They're the ones who keep us on track.

They're the ones who collate all the information.

They're the ones who make sure that everything is reconciled, that any adjustments are made,

that Ben and his team and as well as our internal auditor that they are happy and satisfied and

everything's moving slowly. They work really long hours over the past several months. There have

been some weekends and evenings and they very much deserve their holiday break and a true privilege

and a joy to work with a team of that caliber so something we should be really proud of in the city.

So with that I'm simply going to read off the recommendations and as the mayor said

to get this awkward presentation to flow as awkwardly as it can, given the topic.

We group them all together.

But City Council, we recommend that you accept the 24, 25 reports for items 3.3 and 3.4,

the annual comprehensive financial report and the report to those charged with governance.

And then we recommend that you open the successor agency board for item 9.1,

which is the successor agency audited financial statements.

And we are happy to answer any questions or respond to comments.

Thank you, Maria.

Appreciate all your good work in the presentation.

Thank you and congratulations to the accounting team.

You said four years running with an unqualified acceptance or clean audit,

which is fantastic work.

And I'll turn it over to our city manager.

So I want to echo that.

I just want everybody to recognize how significant that is.

we have a $6 billion budget with thousands upon thousands upon thousands of transactions every

year. And that is no small feat with the size of a city, the 12th largest city in the nation to

have four years running a clean audit with no findings. And so I just would really like that

accounting team and Victor and your leadership and of course you and Maria to stand up because I

you deserve a round of applause. Stand up I know you're shy because you guys are fabulous and I

know it takes a village and it does all the all the credit does go to the all the financial

personnel and through across the city but really this is an area I do not lose sleep in at night

and neither should the council because we've got an absolute solid solid team running our accounting.

Thank you for highlighting that Jennifer once again great work to the team

congratulations and thank you for your hard work coming back to the council we

again again just a reminder I appreciate motions on each item individually and if

possible in order and I'll start with councilmember Mulcahy you can coach me

through the motions but I just wanted to echo what the mayor and the manager said

I really appreciated the reports and Maria you already answered the question

you know how did we get four years in a row with such high marks and thank you

for all the hard work from from all of you I rode with one of your colleagues

who's in the audience today who said I'm just an assistant and I said don't ever

say that that's every every person works I had no idea she was part of the team

that's making this work available to us today so thank you the real question I

have on the Sara bonds you know I don't recall seeing them itemized or how many

we have how many do we have and where are we in terms of the aging how far out

do we go there's one issuance outstanding and it tags very neatly into the next item I have before

you but we have one series of tax allocation bonds they totaled 981.3 million dollars and I believe

they mature in 2035 and if we wanted to know what's the backup for you know what what's

contributing to paying that bond I could ask you absolutely and it's also in your

annual death report which we will present next although we are not going

into that grand you'll detail but yes absolutely okay reach out at any time

all right thank you so I would make a motion on as many of these as needed if

you wouldn't mind moving acceptance of 3.3 which is the annual comprehensive

Financial report is I was item I will move item 3.3 perfect. We have a second

I don't see any other hands Tony. Do we have public comment on item 3.3?

Okay, yes, Brian come on down. Thank you

Um I have to be honest I use a lot of AI to do this because I don't understand this very well

and so i want to thank you for doing this because it's the lifeblood of the city

and um to get a clean audit four years in a row i've been coming here for maybe 25 years and that

that's a great record and so you all deserve a lot of credit thank you back to council great

thank you coming back to the council and i'll just check councilman cohen that was not on that item

is that right yeah okay great then let's vote on item 3.3

Okay, are we missing one vote?

You got them all?

I got them all.

It was, yeah, it was showing up weird, but a motion passes unanimously.

Okay, great.

Thank you.

We're on to item 3.4.

Let me turn to Council Member Cohen.

Yeah, I just quickly also want to express my appreciation.

When I read external audits, I always like to flip to the findings, and I love when there's

no findings.

so I just want to appreciate the team for keeping our very complicated budget

so well managed and want to move acceptance of the external auditors

report great thank you we have a second Tony do a public comment on 3.4 Ryan

you covered all of them with one alright the council concurrent public comment

okay coming back to the council I don't see any other hands let's vote on item

3.4

Motion passes unanimously. Thank you now before we entertain a motion on 3.9. I just need to read a very brief script

We will now adjourn the City Council meeting and convene the successor agency to the redevelopment agency of the City of San Jose and

We can now entertain questions comments or a motion on item 9.1

move approval great thank you and that would be to accept the Sarah audited

financial statements motion a second I don't see any other hands Tony do we have

public comment on item 9.1 I have no cards okay thank you going back to the

council any other comments seeing none let's vote

motion passes unanimously great thank you Tony we will now adjourn the

successor agency to the redevelopment agency of the city of San Jose and

reconvene the City Council meeting okay we're back um thank you Maria we I

believe you are up for another item so we're gonna move to item 3.5 which is

the comprehensive annual debt report I'll just thank Victor and Ben thank you

for your work on this and for being here today and I'll turn it to back to Maria

for a brief presentation on item 3.5.

Thank you, Mayor.

Again, Maria Oberg, Director of Finance,

and now Chen Yu Sun, Deputy Director of Finance,

overseeing Treasury and Debt Management, has joined us.

So this is item 3.5, the Comprehensive Annual Debt Report,

as of June 30, 2025.

As you are aware, the Debt Management Program

is tasked with debt issuance, debt management,

as well as some financial advisory services to internal city departments.

The policy objectives are listed.

I'm not going to go through them all, but it's minimize debt services and issuance costs,

making sure we fully and timely repay our debt and maintain full and complete financial disclosure

and reporting while staying in compliance with all applicable federal and state laws.

As of June 30, 2025, the debt portfolio outstanding was $3.4 billion.

It's important to note that this excludes our conduit debt, meaning debt we issue on behalf of others.

That is done mainly for multifamily housing revenue bonds, and those bonds were outstanding in the amount of $834 million.

This chart also does not include long-term liabilities of the city, such as pension or OPEB.

Those are handled in the ACFA.

You can see, read all about them in the notes.

As you can see in this chart, a little less than a third of the outstanding debt is associated with the airport.

Another, even less than a third, is Sarah Tab's $981 million,

and the rest are spread out between the financing authority lease revenue bonds or CP notes,

CP is commercial paper, wastewater revenue bonds, and, of course, our general obligation bonds.

We have some variable rate debt.

We have four different programs.

Two are secured by a letter of credit.

That would be the airport commercial paper program as well as the financing authority's commercial paper programs.

There's a revolving line of credit associated with the wastewater system and treatment plant

project, and we have a revolving letter of credit facility for the San Jose Clean Energy

Department.

The authorized amount is $625 million, but we only have a little less than $90 million

outstanding, so there's plenty of capacity in those programs should be needed.

For the fiscal year ended 2024-25, we issued $97.7 million.

$76.4 million of that was refunding bonds for the airport.

We issued about $21 million in lease revenue commercial paper notes for the financing authority

and also a little over half a million dollars for the airport's commercial paper program.

There was one issuance by other agencies.

It was the California Community Choice Financing Authority's issuance of $1.24 billion for clean energy project revenue bonds.

This is not the one we talked about last week.

We have not issued those bonds yet, but this was done back in November or December of 2024.

So far in fiscal year 25-26, we're about halfway through.

We have completed four issuances.

We issued the final tranche, almost $210 million for our general obligation bonds, Measure T.

We have issued $47.8 million in financing authority lease revenue bonds, $50 million for the wastewater project, and $184.5 million of multifamily housing revenue bonds.

And again, those housing revenue bonds are not debt of the city.

We issue them on behalf of others.

So the total completed debt issuance so far this year is $492 million.

We have planned for the rest of the year a few more commercial paper notes for the airport,

or at least revenue commercial paper notes for the financing authority,

one or two bonds of multifamily housing, about $92 million,

and of course we have the clean energy prepaid project that we talked about last week,

still to be determined, but authorized up to $1.25 billion in a month.

And, of course, we like to compare ourselves like all financial capital markets people do.

So we looked at the 12 largest cities in the U.S. to see how are we faring on our credit ratings.

As you know, we pride ourselves on our high credit ratings.

And as you can see, we are tied in second place with a AA1 from Moody's,

a AA plus from Standard & Poor's, and a AAA from Fitch.

While we are super proud of this, and it's something that you guys should be proud of as well

and share with your constituents,

I do want to caution that we do not manage our debt in order to keep a certain credit rating.

If we need to issue bonds for operating needs of the city, we will do so,

regardless of whether that would mean a notch or two downgrade in the ratings.

But again, of course, the higher ratings we have, the lower our cost of debt.

but it's not the end-all be-all.

But in the meantime, you should be very proud of this.

And that concludes the presentation.

We recommend that you accept the comprehensive annual debt report

for the City of San Jose for fiscal year 2425.

Great. Thank you, Maria.

I appreciate seeing the annual debt report in our consistently high ratings.

Tony, do we public comment?

I have no cards for this item.

Okay.

Council do we have any I don't see any hands do we have questions comments or a motion

great okay Tony let's vote

motion passes unanimously

Great.

Thank you.

Thank you.

Okay, we're on to item 3.6.

This is the first amendment to the master service agreement with Intergraph Corporation

for the computer-aided dispatch system.

There's no staff presentation.

Do we have public comment?

I have no cards of this item.

Okay, coming back to the council on item 3.6.

Thank you.

I'm not seeing any other hands.

Tony let's vote I clicked end voting a little too soon do we need to confirm

fully do you vote yes or no I just need an audible motion passes unanimously

thank you run item 3.7 actions related to the tenant improvements at the 911

Call Center something. I know our dispatchers will be very excited about say measure T

Project there's no staff presentation. Do we have public comment?

Tony

I have no cards for this. Okay, great coming back to the council. Do we have a motion go to council or do one?

Thank you mayor

It's been a long-standing

Need for this modernization both of the fire and police dispatch

center and

This will bring us towards the the new modernization, but also

Will better serve our community and I move to approve the project

Great. Thank you. Let's see the other hands Tony. Let's vote

Motion passes unanimously, okay

Thank you. We are on to item 3.8. This is the appeals hearing board interview. My understanding is we have three openings and three

Applicants yes, why don't we invite our

Applicants down the clerk did let me know that because there are three openings and three applicants the council

can move to approve the appointment of the applicants without interviewing them.

I'd at least like to hear a brief personal statement from each,

and I'm happy to open it up to colleagues for questions.

Do we have all three of our candidates here?

No, we have two.

Two are supposed to be here, Martin and Genevieve.

So I have a slight script.

We have three member-at-large vacancies for terms starting January 1st.

At least one appointee must be an attorney.

Both Ronald and Martin are attorneys,

and Ronald and Genevieve are incumbents.

Ronald could not attend, but he did submit a letter that's attached as part of the public record,

and the other two are here.

Great, and Ronald is hoping that the maker of the motion will include him,

but that's obviously up to the council or the maker of the motion.

Okay, great.

So again, three applicants, three spots.

I'd like to at least start with brief public, I'm sorry, statements, personal statements.

And so Jenny, we'll start with you, and we'll give you each two minutes,

so maybe just up to two minutes to say why you would like to serve

or continue serving in this role.

And then if colleagues have questions, we'll take those after that.

So Jenny, we'll start with you.

Okay. Thank you, Mayor.

Thank you, Council members, for having me back today.

I was last here in April of this year when I applied for the opening

for the Appeals Hearing Board.

That was a temporary spot, so I'm back for the more permanent spot.

Thank you for having me.

My name is Jenny Altwer.

I am a San Jose resident. I've been in San Jose almost my entire life. I know the city well.

I went to San Jose State. I'm a Spartan. Go Spartans. And I went on to earn a degree in

criminal justice. After San Jose State, I went to New York City. I went to the John Jay College

of Criminal Justice, where I earned a master's degree in criminal justice. After that, I came

back to California, went into law enforcement, and as a police officer, I worked many jobs. I was

a part of our critical incident response team. I was a field training officer, and I was also a

hostage negotiator. Part of my job there was also working in the sexual assault unit where I was an

investigator, worked many hours in the courthouse, testifying in court, being the lead investigator

around cases, and so I am very familiar with courtroom processes and things of that nature.

After my law enforcement career, I went back to school. I earned a master's degree in psychology,

and I used that degree to become a licensed marriage and family therapist, and as a therapist,

I opened a private practice here in San Jose where I provide mental health support for mostly

first responders, but also adults who have diagnoses like anxiety, depression, PTSI,

And so I think that the relevancy of these two backgrounds in my career path, it definitely

applies to the Appeals Hearing Board.

What I've learned in the last eight months, that many of these cases have a lot to do

with blight in our communities.

I've worked with code enforcement as a police officer.

I understand and I know how to read through the cases and ask the right questions to make

sure that we're making informed decisions.

And then of course, as a mental health practitioner, I also understand that there's a socioeconomic

component to the job and I think that I bring a compassionate outlook when it

comes time to make decisions and I'll leave it at that and I look forward to

your questions thank you thank you now we'll hear from Martin I just want to

make sure the clerk are you running the clock it said two minutes okay thank you

good Martin hi my name is Martin Nguyen I'm gonna a corporate counsel and to

To brief rank, a position on the appeals hearing board is completely different than my day

to day practice.

As an in-house corporate counsel for a technology company, I don't typically practice the type

of measures and adjudicate the type of remedies that you would see here.

My practice is largely transactional.

However, I have a history of public service.

I started as my first job out of undergraduate at UCLA, was teaching at East San Jose Unified

School District, over 57 North White Road, two and a half years at James Lick.

And from there, I started an intellectual property practice, first at NASA as a patent

attorney, and then moving on to various other positions, including as a judicial law clerk

at the trial courts in the state of California.

And as such, I've got a really strong background in procedural law, have reviewed many hundreds

of cases as an armchair clerk for a trial judge.

In that capacity, looked at adjudication, being an assistant to a trier, a finder of

fact, which is a very similar function to the Appeals Hearing Board.

Appeals Hearing Board, as I understand, is a quasi-judicial body that reviews code enforcement

orders relating to public nuisances and permit applications. Public nuisances are

quite broad. It's defined in the Muni Code 1.13050 as well as the Civil Code 3479-3480

and those could be any number of things but the Municipal Code defines it under

19 enumerated types. Everything from inoperative vehicles to weed abatement to

unsanitary and unlawful living conditions as my interest in procedural

law I think I would really serve really serve well in the capacity coupled with

my years of practice I also know that the council has a very keen interest in

bringing compliance into the community they've increased the the fine liability

up to $500,000. As a result of that, as the financial stakes increase, you could anticipate

that the appellants may seek mandamus proceedings and appeal certain provisions of the board.

Okay, that's your time.

Thank you. I look forward to receiving any questions and answers.

Great. Thank you, Martin. Thank you both for your opening statements. Colleagues, we'll

leave this a little more free form if you have questions be happy to turn to

folks just ask you ask questions of both candidates equally I'm not seeing any

hand shoot up we can also entertain a motion and don't forget the third

applicant submitted a written application and that was Ronald so we can do it by

motion we can also do it by vote oh fair point okay let me turn to councilor

Ortiz and see what he's thinking just gonna motion to appoint all three

applicants great that's the simplest all right let's see if a majority of the

council concurs Tony did we ask for public comment do we assume we have none

excellent let's come back to the council and vote on councilor Ortiz's motion

I saw there we go motion passes unanimously great congratulations to you both thank you for

thank you thank you all right yes and please see the clerk before you leave we are on to

our next item this is item 6.1 actions related to the issuance of non-exclusive franchise

agreements for the collection transport and delivery of residential clean-out material

on construction and demolition debris Tony I'm sorry to interrupt do a public

comment on this item there is no public comment thank you

going back to the council how about a motion okay thank you we have a motion to

approve item 6.1 let's vote and we've won absence motion passes 10 10 oh with

councilor Ortiz absent if he comes back quickly we'll capture his vote thank you

on to item 8.1 actions related to the agreement with the county of Santa

Clara's office of supportive housing for the homelessness prevention system

funding do we have public comment on item 8.1 I have no cards for the sign we do

not it's a quiet afternoon coming back to the council do we have comments

questions or a motion councilmember come okay motion in a second do we have

comment from council member or sorry questions councilman conference thank

you mayor I wanted to ask some questions and you know appreciate the work that's

happening in prevention in our community. I know that it is central to family

stability here in San Jose and what happens here does not just affect

individual households but it really reflects the broader support ecosystem

and how it's functioning and so I'd like to ask some questions to better

understand how families are moving through prevention to help us learn

whether the tools that we're currently using are meeting the real-time needs

and where families might be experiencing gaps or delays.

So the questions are going to be aimed towards gaining clarity

and hopefully being able to identify what's working well,

understanding areas where additional support might be needed,

and where aligning future investment and strategy

with the actual experiences of residents could be beneficial.

So in doing so, my hope is that we can be better supporting

the long-term stability and strengthening the tools

the city uses to keep families housed so my first question uh eric is when um someone is first

reaching out in need of hps services what does that entry point look like so thank you council

member eric solyban director of housing so the entry point is usually an assessment based on the

bi spdat or what's now converted to the hpad assessment which is the county is issued assessment

based on their risk of experiencing homelessness.

They do that with a case manager

because the program is operated through Sacred Heart.

That case manager conducts that initial assessment,

and depending on where they score on the HPAT assessment,

that then determines how they proceed forward, get waitlisted,

what are any kind of gaps in the information provided

that are needed in order to move forward with program participation.

And in this process, do we know if the same person is showing up in the system to ask for help again?

How do we know about the frequency of one person?

So the county as administrator of the program captures data on all contacts with program service providers and referrals.

so we could capture what is the total number of contacts

and then get data on the total number of contacts

versus conversions into program participation.

Thank you.

And then just speaking on average, for each week,

what is that average number of openings that is available

and how does that fluctuate?

Do we know if there are trends

for when there's more or less capacity for availability?

So I would have to talk with the county about trends and weekly program administration and available capacity.

And we can certainly have that conversation as the counties, the administrators of the program, to give us information about sort of what are the trends in capacity.

capacity you know typically capacity determinations are based on how many

total participants vis-a-vis case managers vis-a-vis administration and

oversight funds in the system so there's a number of factors that go into it so

we can certainly circle back with the county to request some additional

information to answer the query regarding total amount of capacity and

trends with capacity and it's safe to assume that there is a wait list for

services yep there are there's always a wait list of services of families who are going through the

system again at various different touch points within the system whether it's because they had

some documentation that was outstanding they needed to provide whether they were on their

scoring on the HPAT assessment didn't quite sort of meet the criteria but they got waitlisted for

other referral services so there is an active waitlist for the program and so when demand

exceeds the available capacity. You mentioned some of what informs that decision, but is there

more that's informing the decision for which household will be receiving services next?

So that is just a program administrative decision. We can ask the county for input

on that decision, but that is determined kind of by the administrators of the program,

both with the county and then the subrecipient administrator sacred heart

we can certainly query the county for information on that item okay and do we

know that every provider has a wait list or does the wait list differ based on

what intake looks like for the provider my assumption is given the number of

of subrecipients in different targeted communities.

I cannot say at this point whether every provider

has a wait list, but my guess is given the high needs,

probably most providers do, but again,

that's a query we can ask the county to provide

in order to be fully responsive.

So when thinking about the upcoming year

and as providers are estimating how many households

they'll be able to serve in the year,

I'm sure that those estimates impact things like their funding, their staffing.

And so if throughout the year the actual service numbers fall below those estimates,

how does that affect their funding going forward?

So again, that's determined by the county.

So I can ask the county and query them about those questions regarding capacity and determinations

as well as sort of accountability on the provision of those services by the various subrecipients

in the program. Yeah and to make that question a little bit more personal because when these

staffing changes are occurring there's vacancies, there's turnover and onboarding periods for new

staff, families are still going through the system and how does this affect how quickly families are

able to go through the system when we're taking into consideration turnover and

staff vacancies and those onboarding periods is their stabilization

interrupted are they spending more time in the service and programs so I can

comment more generally that within the case management workload who are

typically social workers within the broader social sort of nonprofit worker

community there is high turnover these are very stressful jobs at very low rates

of pay in terms of the direct impact of that turnover of social workers within

the system I can't speak to any particular numbers but when there is

turnover I know the county aims to try to limit what are the negative impacts

of that turnover to ensure continuity of service delivery on a per-family basis

again I can query the county as to some of these questions but some of them kind

veer into sort of the administration of the program and the city is more of an

investor in the program so I'd want to just maybe we can set up some time for

you to sit with KJ of the county and kind of get a better understanding of

the system administration as we don't capture this level of detail and program

execution because our focus has been traditionally on the outcomes of the

programs and less on daily execution of case management services. So for example

question about what that turnover looks like in the field to get a better sense

of the data of how many folks are leaving the workforce that's information

that the county could provide us that's information that we can query the county

we could set up some time to go through with the county so you can see kind of

the ins and outs again the line of queries speak more to sort of daily

management of the program which is less of the focus of the department's

perspective, more contractual obligation with the county on this. So we can certainly set up time

so we can get through into those details. And then on the side of the family, right, and their

stabilization, how are we tracking and managing that data to see the impacts on individual

stability? So we capture three data points that speak to stability. The stability within family

participation one is how what is the time of entry of that family and time of

exit and whether that time of entry to exit is consistent with performance of

other families who are similarly situated knowing that there's

significant variances in families and family households two we look at it in

the aggregate what is the overall participation of families within the

program the level of services they're receiving as a significant portion of

the overall subsidy that's provided to the household is both direct assistance

and then ongoing social services and those social services track various

metrics regarding the performance of the participant as well as some of the

outcomes they are receiving in their delivery and receipt of services and then

three we also look at globally what are the comparison points between their

service delivery as they've received from any social work of other

comparable programs that may not prevention oriented but maybe as an

example within our interim housing program to ensure that the quality of

that services is being benchmarked against a relatable and substantially

similar service delivery so with those three data points we've been able to

determine thus far in the administration of the program that the program is

meeting expectations as that forth in the city is getting to the outcomes that

we have expected to achieve. Thank you. I know it's a lot of different moving pieces and at the

end of the day, you know, the resident who's able to get to stability and not have to come back into

these services demonstrates success. So my last question is, as households are leaving the

preventive services system, whether they're successful or not, are we tracking what happens

afterwards? For example, if a year or two later down the road a family needs help

again, do we know that they accessed services before and are we asking them

information that's helping us improve upon the systems? I would say the program

tracks information up to two years to ensure they're stable a house. Nonetheless,

given the current economic dynamics of the majority of the families who are

participating in the program could there be over a window of time return

participants my assumption and I can collect the data to substantiate this is

likely yes we're not exiting the individuals from a permanent existence

of their current economic state this program has designed to provide a

temporary intervention in order to stabilize and prevent homelessness it is

not a resolution to their overall economic standing.

Yeah, I appreciate those answers and really, really appreciate the work that's being done.

I know that there was a lot of questions there.

And with that, I just want to thank you again for answering the questions and move to approve

the joint memo.

Sorry to interrupt.

We already took a motion on it.

That's right.

I do want to ask if you want to make a friendly amendment to include our group members.

include our group memo yeah and that was I'm happy to accept it I didn't I

didn't neglect it because I didn't support it I just forgot about it sorry

about that and the seconder was was counselor come a it's okay with the

seconder yeah okay thanks for catching that councilmember compost okay we've

got a couple other hands up let's go to councilmember Ortiz

Thank You mayor and thank you for inviting me to join the Brown Act group

on this item and working on this memo together with our colleagues I just want to begin by just

expressing my sincere appreciation to our city staff of course our housing director as well as

county staff and service partners who will be doing the on-the-ground work to prevent unsheltered

homelessness in our in our city I know that this work and I think everybody knows this work is

undeniably difficult but it is equally important and I appreciate all those who continue pushing

every day to meet the standard of service that our residents deserve. I'm

excited to see us coordinating closely and aligning our efforts with the county

because our residents expect all levels of government to work collaboratively on

the on the issues that they're facing. They've entrusted us to solve but

coordination alone isn't the goal. We need to know that the dollars San Jose

contributes are producing the outcomes our residents are expecting these

investments must be tied to clear metrics accountability and real results as a

city we don't have the time or budget to allocate money at this problem without

knowing our community is receiving the benefits their tax dollars are intended

to fund and so I truly believe our joint memo is taking a direct step towards

that goal and I look forward to working alongside our partners alongside our

housing director and our colleagues on the council to deliver real measurable

progress for our San Jose residents just want to thank you again mayor thank you

to the Brown Act and I look forward to voting aye on this item thanks council

member Ortiz appreciate those comments let's go to councilmember Dillon

Thank you, Mayor. On page, I believe page two of your report, it stated that on the average,

the household served received on the average of $8,000 in financial assistance,

plus an average of $5,200 in case management. Is that per year?

This is per term of household participation.

So I wouldn't necessarily put it on a year term because some households are in it for

four months, some eight months, some longer.

Just being mindful of, you know, our taxpayer dollars, $5,200 just for case management,

that seemed to me awfully high.

So if you compare it to the delivery of other individual services regarding social work

engagement, this is comparable and in line with the comparables.

In addition, given the intensity of the work and the variety of the work, that $5,200 can

scale up based on a particular household's need or can scale down based on individuals

who are very new and experiencing homelessness, may not have a lot of needs, and may have

just had a health bill crisis may have had an economic job loss crisis so it

very much depends and varies across the scale thank you and that fifty two

hundred dollars is that it's a case management is that per family or is it

per individual it is both because there are both families and individuals who

come into the program so sometimes it is family intensive sometimes it's just an

individual intensive well thank you very much is there a possible way to reduce

that cost that is not an answer I can give you today again with the city is

not the administrator of the program we are an investor in the program and a

reduction of costs would have to look at three factors one is there

inefficiencies within the delivery and system of the program to whether or not

that delivery of the program has scaled up to meet the current need either above or below

that scale in terms of sufficient delivery of services and then three whether or not

those inefficiencies can be wrangled out sufficient given the fact that this is a rolling program

that has broad variance against all of the over 2,000 participants in it.

Thank you so much.

I'm just thinking that every single dollar that we save we can reinvest in helping more

families that's all and thank you so much for your hard work and you've been a

delighted director to housing and and say thank you to your team as well I

will be supporting this funding as well thank you thanks councilmember thank you

Eric for answering our questions appreciate all the engagement from

colleagues a lot of great questions and comments want to thank my council

colleagues council members compost ordeos ortiz and casey for collaborating on the group memo

thank you vice mayor and councillor kameh for including it in the motion you know i think this

is uh one of the real bright spots in the county city collaboration there are areas where we don't

always find as much alignment but this is one where our county is running a world class arguably

best in the nation prevention system the city is the only city within the county that is

contributing to it and I think a lot of the questions about efficiency and

retention in housing and the cost of case management are important because

the big question with this system now is how much can we scale it because on a

dollar-per-dollar basis it is the best investment for a fraction of what it

costs once someone becomes homeless or needs more significant housing support

what we're doing with this system and really it's our county implementing it

we're investors in it, is we're identifying folks at that moment where a life event, a job loss,

a divorce, a health issue, has pushed them to the brink of homelessness. We're bridging them for six

to 12 months with case management. And what the Notre Dame study that did a cohort analysis on

our prevention system showed that has made us a national model is that over 90% of households did

not need additional assistance up to two years later. Now, I think all of us want to know what

happens in your three four and five and every year the cost has gone up and so

the question is can we control the resources needed per household so that we

can scale to more households last year the system served 1800 households 69% of

which over 1200 of which were in the city of San Jose and as I mentioned over 90%

were bridged and then did not need assistance again for two years that's as

long as the longitudinal data was available when the Notre Dame study was done. So really promising

early results from the last few years of our collaboration. I want to thank Destination Home

for sparking the collaboration. Again, we don't always agree on everything, but this is an area

where I think Destination Home, City, County have aligned, implemented a program that's getting a lot

of national recognition. And now the question is, can we further optimize it, control costs,

target it to the right households, keep people from falling into homelessness or needing significant

assistance in years three, four, five, and then how much more can we scale it? Because I think we all

know we reduce suffering immensely and actually save a lot of money if somebody doesn't need the

interim housing system we've just built out. I'm proud of us for adding all that shelter, but I'm

even happier if people don't have to use it, right? And we're going to save money and prevent a lot of

suffering. So I plan on speaking more to this in my budget message and just based on the level of

engagement here I think when we get to the budget study session involving homelessness and

specifically prevention it might be useful to try to invite someone over from the county who's

administering the program to also answer these questions and then our group memo here points to

the kind of data tracking and reporting I think we'd all like to see to get a better handle on how

This program is evolving over time and how we're managing costs and maximizing impact

So thanks again to colleagues for all the great engagement. It's a it's a great tool in our in our toolbox

We have a motion that includes the group memo. I don't see any other hands Tony. Let's vote

Still waiting on one there we go

Great, thank you

And that was again item 8.1. So we are on to open forum now

This is an opportunity for members of the public to comment on city business. That was not on today's

Agenda Tony do we have public? I'm sorry. Do we have comments for open forum? I have Steve

Hazek and Brian come on down great and speak in any order

You'll each have two minutes and the timer will start once you begin speaking come on down

welcome

First to the mic, it has the floor.

Yeah, go ahead, sir.

As soon as you start, we'll start the two-minute timer.

Welcome.

My name is Steve Sun.

I would like the city to invest a major burglar ring

actively harassed our neighborhood.

But the police department, I went to five times

and filled numerous police reports.

They refused to even investigate.

Even I have the burglars' photo provided by the merchant,

and they charge over $15,000

and even use our information to apply new credit card

and charge to us, charge to the new credit card,

and even they break into bank's phone system

and pretend they are bank's employees

and ask us to approve certain charges.

And later on, I find out the bank never called us.

And so I know there's a big burglar ring

actively working in our neighborhood for many years.

The police department still refused to look into that.

And my next door neighbor, she was broken three times during the broad daytime.

And I was broken twice last month.

And the police department, I have the police report and also the response.

They say, no, we are not looking into that.

This is unacceptable.

And I wanted the city to look into the situation.

and actively invest this big burglar ring

that harassing our neighborhood.

Thank you.

Thank you, sir.

If you don't mind stepping over to the side

once you're done here.

Stephen, do you mind creating follow-up information

and then looping in the council office

along with our office?

Yes, sir.

Great.

And mail through the email to the clerk.

Perfect.

You can give that to the clerk

and then Stephen will get your contact information

and we'll be sure to follow up.

Thank you.

Thank you, next speaker.

Last night, we restored my hope a little bit, Mayor.

Thank you, it was good meeting.

Always around this time,

I actually do this quite a bit,

I go back and read through Medal of Honor recipients

and what they get because we wouldn't be here without them

and other people.

It seems nowadays it's quote unquote strong men,

people who are loud and arrogant.

They're not what save a country.

They're certainly not what runs up on a beach

or what fights a fire or that works in 7-Eleven

and is a helpful, humble person.

Most of us don't like arrogance.

Pride is one thing.

arrogance and the rules don't apply to me. We as a species we stand on the

shoulders of giants we can't imagine what our forebears went through unless I

guess you lived through it. Not long ago as cosmological or even geologically

speaking half of Europe died during the Black Death. We now have antibiotics that

stop that we've moved past magic thinking to trying to just stop pain and

make people better I think that's something that we need to keep

remembering and that is an existential threat to our democracy thank you thank

you next speaker. Just before I start I'd like to thank everyone for being here.

Honorable Mayor and members of the City Council, when I was six years old I remember fishing at

the San Lorenzo River. Well let's just say I needed new clothes afterwards. I'd slipped and

fallen into the water and instead of fear I remember wonder. As I looked beneath the surface

I saw thousands of native tiny minnows swimming freely, moving like a silver cloud through the

clear water. That moment stuck with me. It taught me that rivers aren't just water, they are homes,

ecosystems, and quiet teachers. But last week when I returned, I expected nostalgia, but instead

I felt shock. The minnows were gone, and in their place were invasive largemouth bass,

filling the shallow areas and dominating the habitat where native minnows once thrived.

What I once saw as a child, a thriving, delicate ecosystem, was gone.

Although this issue may seem small, it's happening throughout San Jose.

In the Guadalupe River, it is reported that there are approximately three largemouth bass caught per minute.

Invasive bass don't just compete with native fish, they wipe them out.

They disrupt food chains, damage water quality, and permanently alter habitats that take decades to form.

As someone who cares deeply about fishing, wildlife, and the future of this community,

I'm asking you to act. My proposal is that we create volunteer efforts to remove these invasive

species and count participation efforts as community service. This will not only help

control the invasive species problem, but also strengthen our environmental education,

encourage youth involvement, and protect native species as a whole. If we don't act now,

more six-year-olds will never grow up seeing these schools of minnows.

And only stories will remain about what used to be there.

But if we do act, we can restore balance.

We can protect what still remains, and we can make sure that our rivers stay alive.

Thank you for your time and commitment to our environment.

Thank you.

Back to council.

Thanks, Tony.

That was great.

By the way, if you also want to connect with Steve, and we'll follow up,

Steve Holmes and the South Bay Clean Creeks Coalition would love to meet you

and get you involved in some of their work.

Thanks for being here.

Thank you.

Thanks.

I'll see you in a minute.

All right, friends.

Have a great afternoon.

We're adjourned.

Thank you.

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