City Council approves budget and major actions
At a glance
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The City Council adopted the Fiscal Year 2026-2027 budget, set the annual appropriation limit at $1,697,953,660, and approved several major items including a $3.6 million property purchase tied to future housing construction.
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What this means
The Council approved the city’s next budget and the legal spending limit for the year. It also authorized buying the Knox-Goodrich building property for $3.6 million, with part of the payment held back until a nearby project reaches a construction milestone for 276 residential units by December 31, 2026. The Council also voted on business district assessments, a settlement payment, and employee compensation changes for future years.
Key decisions
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- Adopted the Fiscal Year 2026-2027 Annual Appropriation Ordinance and Annual Funding Sources Resolution.
- Established the Fiscal Year 2026-2027 appropriation limit at $1,697,953,660.
- Approved a $400,000 settlement of a government claim filed by Gordon Biersch Brewing Company.
- Adopted Resolution No. RES2026-185 authorizing negotiation and execution of a purchase and sale agreement for the Knox-Goodrich building property at 26-36 South First Street for $3,600,000, with a $975,000 escrow holdback tied to a housing construction performance metric.
- Adopted Resolution No. RES2026-210 approving compensation and benefit changes for executive management, unrepresented employees, and related pay plan updates.
- Adopted Resolution No. RES2026-211 declaring opposition to Initiative 25-0006A1, a proposed ballot measure limiting voters’ ability to raise revenues for local government services.
- Adopted Resolution No. RES2026-212 approving the Alum Rock Santa Clara Street Business Improvement District budget report and levying assessments for Fiscal Year 2026-2027.
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Meeting information
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City Council
Closed Session at 9:30 a.m.
Agenda
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- Accommodations
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- THE LEVINE ACT
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- You may speak to the City Council about any discussion item that is on the agenda and under Open Forum for City Business that is not on the agenda. Each speaker generally has one minute to speak per item. The total amount of time allocated for public testimony for each public speakers or for an agenda item may be limited at the Mayor’s discretion, depending on the number of speakers or the length of the agenda. (California Government Code Section 54954.3; Council Policy 0-37) Speakers are expected to follow the Meeting Code of Conduct located at the end of the agenda, at https://www.sanjoseca.gov/home/showpublisheddocument/12901/639160116820070000
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- Call to Order and Roll Call
- Closed Session, Call to Order in Council Chambers Open Session, Labor Negotiations Update (See Item 3.2) Adjourn to Closed Session in Council Chambers Conference Room, W133 See Separate Agenda
- Closed Session Agenda
- Regular Session, Council Chambers, City Hall
- Evening Session, Council Chambers, City Hall – Cancelled *The previously scheduled Evening Session has been cancelled.
- Pledge of Allegiance
- Invocation (District 6)
- Milan Balinton, African American Community Service Agency
- Orders of the Day
- Items recommended to be added, dropped, or deferred are usually approved under Orders of the Day unless the Council directs otherwise.
- Adjournment Recognition
- Closed Session Report
- CEREMONIAL ITEMS
- Presentation of a proclamation declaring May 2026 as Myositis Awareness Month, focusing on the urgent need to educate communities, accelerate diagnosis, and strengthen support for those living with this rare disease in San José. (Cohen)
- Presentation of a commendation recognizing San Jose Sports Authority for 35 years of advancing sports, strengthening community pride, and elevating San José as a premier destination for sports. (Foley)
- Presentation of a proclamation declaring June 19, 2026, as Juneteenth in the City of San José to recognize and celebrate the emancipation of enslaved African Americans. (Tordillos and Mayor)
- CONSENT CALENDAR
- Notice to the public: There will be no separate discussion of Consent Calendar items as they are considered to be routine by the City Council and will be adopted by one motion. If a member of the City Council requests discussion on a particular item, that item may be removed from the Consent Calendar and considered separately.
- Approval of City Council Minutes.
- Final Adoption of Ordinances.
- Final Adoption of Ordinances.
- Approval of Council Committee Minutes.
- Approval of Council Committee Minutes.
- Mayor and Council Excused Absence Requests.
- City Council Travel Reports.
- Report from the Council Liaison to the Retirement Boards.
- Settlement of Government Claim by Gordon Biersch Brewing Company.
- Boards and Commissions Appointments.
- Actions Related to the Approval of the San José Hotel Business Improvement District Annual Report for Fiscal Year 2026-2027 and Levy of Assessments.
- Actions Related to the Acquisition of Real Property Located at 26-36 South First Street.
- Annual Authorization for Workforce Innovation and Opportunity Act Program and Projects for Fiscal Year 2026-2027.
- Grant Agreement with the United States Environmental Protection Agency for the Smart Stormwater Compliance Program.
- General Authorization for Water Resources Division Grant Applications.
- Master Service Agreements with Carollo Engineers, Inc. and CDM Smith, Inc. for General Wastewater Engineering Consultant Services for the San José-Santa Clara Regional Wastewater Facility.
- Actions Related to the Purchase Order with SNF Polydyne Inc. for Polymers for Co-thickening and Centrifuge Dewatering.
- Set a Public Hearing for the Fiscal Year 2026-2027 Annual Residential Solid Waste Collection Service Charges.
- Set a Public Hearing for the Fiscal Year 2026-2027 Sanitary Sewer Service and Use Charge and Storm Sewer Service Charge Assessments.
- Approval of a Construction Loan Commitment to Amigos de Guadalupe Center for Justice and Empowerment for the Rehabilitation of the Property Located at 318 North 6th Street for the Preservation of Affordable Transitional Housing.
- Revisions to Affordability Restriction for the Paseo Senter Family Housing Project (Phases I and II) Following Parcel Subdivision and Legal Description Updates.
- Authorization to Negotiate and Execute Parks, Recreation, and Neighborhood Services Fiscal Year 2026-2027 Agreements.
- Third Amendment to the Agreement with Santa Clara Valley Medical Center for the Provision of Sexual Assault Forensic Exam Services for the San José Police Department.
- Amendment to City Council Policy 7-14, City Hall Special Event Lighting Policy and Adjustment to the 2026-2027 Fees and Charges Report.
- Actions Related to the 9375 - Market Street Garage Improvements Project.
- Master Services Agreement with Our City Forest for Urban Forestry Services.
- Actions Related to the Removal of Vehicles Parked in Violation of Prohibited Large Vehicle Parking Zones and No Overnight Parking Zones on Identified Streets.
- Resolution Establishing Speed Limits.
- Report on Bids and Award of Contract for the 10627 - 2026 Local Streets Sealing Pavement Project.
- Report on Bids and Award of Contract for the 10628 - 2026 Local Streets Resurfacing South Pavement (Measure T) Project.
- Request for Travel Authorization for Mayor's Staff.
- STRATEGIC SUPPORT
- Report of the City Manager, Jennifer Maguire (Verbal Report).
- Labor Negotiations Update.
- Approval of Various Budget Actions for Fiscal Year 2025-2026. - TO BE HEARD BEFORE CONSENT
- Adoption of the Annual Appropriation Ordinance and Annual Funding Sources Resolution for the Fiscal Year 2026-2027 Budget, and Resolution Establishing the Fiscal Year 2026-2027 Appropriation Limit. - TO BE HEARD BEFORE CONSENT
- Approval of the Terms of an Agreement with the San José Police Dispatchers’ Association (SJPDA), for the Term of July 1, 2026, through June 30, 2029.
- Approval of the Terms of an Agreement with the Association of Building, Mechanical and Electrical Inspectors (ABMEI), for the Term of July 1, 2026, through June 30, 2029.
- Approval of the Terms of an Agreement with the Association of Legal Professionals (ALP), for the Term of July 1, 2026, through June 30, 2029.
- Approval of Compensation and Benefit Changes for Executive Management and Professional Employees in Unit 99 and Other Unrepresented Employees (Unit 81/82), for the Term of Fiscal Years 2026-2027, 2027-2028, and 2028-2029, and Amendment to City of San José Pay Plan, effective June 21, 2026.
- Oppose Position on Ballot Measure Limiting Ability of Voters to Raise Revenues for Local Government Services.
- PUBLIC SAFETY SERVICES
- TRANSPORTATION & AVIATION SERVICES
- ENVIRONMENTAL & UTILITY SERVICES
- NEIGHBORHOOD SERVICES
- COMMUNITY & ECONOMIC DEVELOPMENT
- Public Hearing on the Alum Rock Santa Clara Street Business Improvement District and Assessments for Fiscal Year 2026-2027.
- Public Hearing on the Downtown Business Improvement District and Assessments for Fiscal Year 2026-2027.
- Public Hearing on the Japantown Business Improvement District and Assessments for Fiscal Year 2026-2027.
- Public Hearing on The Alameda Business Improvement District and Assessments for Fiscal Year 2026-2027.
- Actions Related to Grant Agreements for Multiple Interim Housing Sites.
- REDEVELOPMENT – SUCCESSOR AGENCY
- LAND USE
- Notice to the public: There will be no separate discussion of Land Use Consent Calendar (Item 10.1) as they are considered to be routine by the City Council and will be adopted by one motion. If a member of the City Council requests discussion on a particular item, that item will be removed from the Land Use Consent Calendar (Item 10.1) and considered separately.
- Land Use on Consent Calendar - TO BE HEARD IMMEDIATELY AFTER CONSENT
- C23-115 - Rezoning of Real Property Located at 15 Cottle Road.
- END OF CONSENT CALENDAR
- Land Use - Regular Agenda
- Open Forum
- Members of the Public are invited to speak on any item that does not appear on today’s Agenda and that is within the subject matter jurisdiction of the City Council. Members of the public may only speak at Open Forum once.
- Adjournment
- All public records relating to an open session item on this agenda, which are not exempt from disclosure pursuant to the California Public Records Act, that are distributed to a majority of the legislative body will be available for public inspection online at https://sanjose.legistar.com/Calendar.aspx or at the Office of the City Clerk at San José City Hall, 200 E. Santa Clara Street, Tower 14th Floor, San José, CA 95113 at the same time that the public records are distributed or made available to the legislative body. Any draft contracts, ordinances and resolutions posted on the Internet site or distributed in advance of the Council meeting may not be the final documents approved by the City Council. Please go to the Clerk’s Records Database https://records.sanjoseca.gov/Pages/Search.aspx for the final document, or you many also contact the Office of the City Clerk at (408) 535-1260 or city.clerk@sanjoseca.gov.
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