City Council - 2026-03-24

Council approved staff's recommendation to maintain the current investment policy with updated primary dealer list, rejecting a memo from Council Members Ortiz and Kamei that would have prohibited new investments in Alphabet, Amazon, and Microsoft due to their ties to ICE. The Ortiz-Kamei memo failed 4-4, and a substitute motion to accept staff recommendation initially failed 3-5, before a final motion adding direction for staff to analyze other California municipalities' approaches to ICE-related investments passed unanimously.

Council approved a franchise agreement for LS Power Grid California to construct transmission infrastructure, representing nearly $2 billion in grid reliability projects. The project was negotiated to co-locate at the Metcalfe station with PG&E without negatively affecting Coyote Valley open space.

Council approved admission of Gateway Tower, a 220-unit 100% affordable housing project (up to 70% AMI) developed by Core Affordable Housing, into the downtown residential incentive program. The 15-story mixed-income property received over $70 million in combined city, county, and housing authority subsidies. Construction expected to start May 2026.

Council approved admission of the Bank of Italy building conversion project by Westbank into the downtown residential incentive program. The historic landmark will be converted to 109 residential units with market rents at approximately 110% AMI. Construction to begin in April.

Council approved admission of El Paseo Saratoga, a 772-unit residential development by Sandhill Property Company, into the multifamily housing incentive program. The project includes two buildings (12-story with 398 units and 10-story with 374 units) and will produce 39 restricted affordable units at 110% AMI. Developer will pay $13 million mixed compliance IHO in-lieu fee directed to Cathedral of Faith affordable project at 2315 Canoas Garden Avenue.

Council approved a resolution of intention to establish the East Village Business Improvement District in District 3, connecting downtown to the East Side. The BID covers over 356 businesses along East Santa Clara Street from 6th to 22nd Street, with two assessment zones ($250 flat rate in Zone 1, $125 in Zone 2). Expected to generate $102,062 in first fiscal year with 72% allocated to clean and safe services.

Council accepted the housing catalyst team work status report, which detailed progress on housing element implementation including completion of 31% of RHNA goals through December 2025. Report showed 103 development applications in processing representing 31,000 units, with 67% market rate and 30% affordable projects.

Council accepted the annual progress report on implementation of the general plan housing element for submission to HCD by April 1 deadline. San Jose has permitted 34% of its RHNA goal, performing better than other large Bay Area cities but behind San Diego (56%) and Sacramento.

Council accepted the status report on the regional wastewater facility capital improvement program. The facility has completed 31 projects totaling $1.2 billion over the past ten years (30% of master plan). Similar investment level planned for next ten years with focus on primary clarifiers, aeration system upgrades for new nutrient regulations, and digester improvements.

Council accepted the city auditor's report showing 88 open audit recommendations, the lowest level in more than ten years. Over the past decade, 88% of 664 audit recommendations have been implemented or closed, exceeding the 80% target. Animal Care and Services implemented all 39 recommendations from its 2024 audit.