Memorandum — San Jose City Council, March 3, 2026

TO: HONORABLE MAYOR

AND CITY COUNCIL
FROM: Matt Loesch

SUBJECT: See Below DATE: February 9, 2026

Approved

Date:
2/12/26

COUNCIL DISTRICT: Citywide

SUBJECT: Community Oversight Committee Annual Report on the Measure T - Disaster Preparedness, Public Safety, and Infrastructure General Obligation Bond Program Proceeds and Allocations for Fiscal Year 2024-2025

RECOMMENDATION

Accept the Measure T Community Oversight Committee Annual Report on the Measure T – The Disaster Preparedness, Public Safety, and Infrastructure General Obligation Bond Program proceeds and allocations for Fiscal Year 2024-2025.

SUMMARY AND OUTCOME

Consistent with its City Council-approved responsibilities, the Measure T Community Oversight Committee (COC) prepared the Fiscal Year 2024-2025 annual report for the Measure T - The Disaster Preparedness, Public Safety, and Infrastructure General Obligation Bond Program (Measure T). (Attachment – San José Community Oversight Committee (COC) 2018 Measure T Disaster Preparedness, Public Safety, and Infrastructure Bond Program Annual Report for Fiscal Year 2024-2025). The COC reviews and reports on expenditures of Measure T bond proceeds to determine consistency with voter-approved purposes. In addition, the COC reviews and forwards the annual audit of the San José Public Safety and Infrastructure Bond Projects Fund financial statements, reviews the Director of Finance’s annual report on the amount of Measure T bonds issued (page 112 in the City of San José Annual Comprehensive Financial Report for the year ended June 30, 2025),
1 and reviews the amount of ad
valorem tax collected for each prior FY ending June 30. The COC also reviews the status of Measure T-funded projects and forwards a status report on the pending Measure T projects. In the report, the COC provided general observations, comments,

1 https://sanjose.legistar.com/View.ashx?M=F&ID=15004129&GUID=9631F222-5138-4C16-B5B7-F6FBD59E96AB COUNCIL AGENDA: 3/3/26
FILE: 26-185
ITEM: 3.5

HONORABLE MAYOR AND CITY COUNCIL
February 9, 2026
Subject: Community Oversight Committee Annual Report on the Measure T - Disaster Preparedness, Public Safety, and Infrastructure General Obligation Bond Program Proceeds and Allocations for Fiscal Year 2024-2025

Page 2 ends

and specific recommendations regarding the level of spending of the Measure T authorized funds.

Acceptance of this report concludes the COC’s review of the expenditure of proceeds of Measure T bonds and the status of projects funded by the bond program in FY 2024- 2025.

BACKGROUND

On November 6, 2018, the voters of San José passed Measure T with over 70% of the electorate voting yes. The measure authorizes the City to issue up to $650 million in general obligation bonds for infrastructure projects.

As part of the Measure T bonds program, City Council was required to appoint a committee comprised of residents of San José to provide community oversight over the expenditure of the Measure T bonds. The measure also required that the size, composition, and specific responsibilities of the committee be determined by a City Council action prior to the issuance of any Measure T bonds. On June 18, 2019, the City Council approved the resolution establishing the size, composition, and specific responsibilities of the committee. The responsibilities of the Measure T COC include the following:

1) Review the expenditure of the proceeds of Measure T bonds to ascertain consistency with the voter-approved purposes for the funds; 2) In connection with the review of expenditures of Measure T bonds, review and forward to the City Council an audit of the Measure T bonds financial statements, as well as review the Director of Finance’s annual report on the amount of Measure T bonds issued, and review the amount of ad valorem tax collected for each prior FY ending June 30; and
3) Review the status of projects funded with the proceeds of Measure T bonds and forward a status report on the pending Measure T projects to the City Council.

The COC prepared and reviewed the annual report on the bond program proceeds and allocations through an ad hoc committee. The COC requested a motion to approve this report pending the format changes discussed during its meeting on January 15, 2026 and the motion was passed unanimously.

ANALYSIS

The attached annual report represents the COC report to City Council on the Measure T bonds program for City Council review and acceptance.

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The COC provided general observations, recommendations, and comments regarding the authorized funds, status, and planning of Measure T projects. The major concerns highlighted in the report are the level of spending of Measure T authorized funds and the potential risk of public safety project overruns, given that, as of June 2025, most projects were still in various phases of design or construction. The COC report also discussed further analysis of the allocation, status, and results of the Measure T expenditures as reported in the audited financial statements of the San José Public Safety and Infrastructure Bond Projects Fund.

The annual report from the COC also provides the following recommendations for City Council to consider.

1) Prioritize the public safety projects slated to receive Measure T funds; 2) Continue communication with COC district representatives to facilitate communication of the results of the COC’s Measure T oversight; 3) Continue to work to appoint individuals to the open COC seats, recognizing the importance to have a full representation on the committee.

EVALUATION AND FOLLOW-UP

The bond program proceeds and allocations, and the status reports on the project expenditures and performance of the Measure T bond program are reported on a bi- annual basis to the COC and City Council. The next Measure T bond program update will be presented to City Council in March 2026.

COORDINATION

This memorandum and the COC’s annual report on the Measure T bond program proceeds and allocations have been coordinated with the City Attorney’s Office, the City Auditor’s Office, the City Manager’s Budget Office, and the Finance Department.

PUBLIC OUTREACH

On November 6, 2025, the COC conducted a public hearing to review the expenditures and the audited financial statements for the FY ending June 30, 2025. Staff from the City Auditor’s Office, the Finance Department, and a representative from Macias Gini & O’Connell, the City’s external financial auditor, attended the public hearing to answer questions from the COC. Department of Public Works staff also presented the bond expenditures and the progress of projects. The COC conducted a second public meeting on January 15, 2026, to review and approve the COC report.

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This memorandum will be posted to the City’s Council Agenda website for the March 3, 2026 City Council meeting.

COMMISSION RECOMMENDATION AND INPUT

The Measure T COC approved the audited Financial Statements as identified in its corresponding memorandum and annual report.

CEQA

Not a Project, File No. PP17-009, Staff Reports, Assessments, Annual Reports, and Informational Memos that involve no approvals of any City action.

PUBLIC SUBSIDY REPORTING

This item does not include a public subsidy as defined in section 53083 or 53083.1 of the California Government Code or the City’s Open Government Resolution.

/s/

MATT LOESCH
Director, Public Works Department

For questions, please contact Sal Kumar, Deputy Director, Public Works Department, at [email protected]
.

ATTACHMENT – San José Community Oversight Committee (COC) 2018 Measure T Disaster Preparedness, Public Safety, and Infrastructure Bond Program Annual Report for Fiscal Year 2024-2025
Measure T COC FY2024-FY2025 Report Final V3 Page 1 of 10 Attachment
FROM: Community Oversight Committee COC)
for the Measure T: Disaster Preparedness,
Public Safety, and Infrastructure Bond Program.
15 January 2026
SUBJECT: San José Community Oversight Committee (COC) 2018 Measure T Disaster Preparedness, Public Safety, and Infrastructure Bond Program Annual Report for Fiscal Year 2024-2025

1. COC FINDINGS AND CONCLUSIONS
This report provides Measure T COC general observations, comments and specific recommendations regarding the spending of Measure T authorized funds, the status and planning of Measure T projects, and the number of unfilled seats for the COC.

The bond issuance and related expenditures for the fiscal year ended June 30, 2025 have been reviewed by the COC to ensure that the proceeds have been used within the spending categories defined and authorized by Measure T and have been expended on a timely basis to ensure that the municipal bonds issued retained their tax-exempt status.

2. COC REQUEST FOR ACTION
Accept this Fiscal Year 2024-2025 Community Oversight Committee (COC) report on the Measure T Disaster Preparedness, Public Safety, and Infrastructure Bond Program proceeds and allocations and its findings and recommendations.

3. GENERAL OBSERVATIONS AND COMMENTS
$440.4 million of the three-tranche, $650 million bond measure have been issued ($239.9 million in 2019 and $200.5 million in 2021) as of the fiscal year ended June 30, 2025.

The remaining $209.6 million was issued in July 2025 and will be reported on in Fiscal Year’s 2025- 2026 annual report.

San José City’s 2018 Measure T: Disaster Preparedness, Public Safety, and Infrastructure Bond Program Audited Use of Funds for FY 2024-2025 was $107,154,634. The Total Measure T Audited Use of Funds for FY 2019 through FY 2025 was $455,312,727 or 70% of the total Measure T Proceeds.

Refer to Section 8, Table 8-1 for more information on category spending, expected expenditures and relevant percentages
a. A total of twenty-two Measure T projects are statused in the Independent Accountant’s report (attachment 1, FY 2024
-2025 Independent Accountant's Report Statement of Revenues.

Expenditures, and C hange in Fund Balance by Fiscal Year for the Period from July 25, 2019 through June 30, 2025). This COC report provides a further analysis of the allocations, status, and results of Measure T expenditures (refer to COC matrix, attachment 2, FY 2024 -2025 COC Oversight Project Item Comparison Matrix).

Measure T COC FY2024-FY2025 Report Final V3 Page 2 of 10 b. DPW issued a June 30th semi-annual Measure T status update in a report to council dated September 8, 2025 (refer to attachment 3, The Director of Public Works Status Report on the November 2018 Ballot Measure T – The Disaster Preparedness, Public Safety, and Infrastructure General Obligation Bond). COC observations and comments related thereto are summarized below:
c. With reference to table 3.1 which provides an analysis of the utilization of Measure T reserves, the data show that 83% of all available Measure T reserves have been devoted to funding project overages associated with the ten public safety projects. DPW’s September 8, 2025 Measure T update report to Council showed three public safety projects completed and the seven remaining public safety projects in various stages of completion. With only $14.5 million in reserves now available, there is little margin for error. The Public Safety projects at high risk are Fire Station 36, 911 Call Center upgrades, and Police Admin building upgrades that are still in design phase and subject to inflation. No priority has been established for these projects.

There is a real possibility that in-progress projects may have to be halted until other funding sources are located. Prior COC reports to Council have addressed various aspects of these continuing concerns – refer to Section 4, Status of Prior Year Recommendations. d. 420 miles of city streets were originally contemplated for repaving in the 2019 projected usage of $300 million of Measure T funds; according to DPW's most recent report to Council 516 miles have actually been repaved with another 105 miles slated for the current construction season and an additional 58 miles scheduled for the year after, for a total of 676 miles expected to be paved by the time Measure T's original $300 million allocation is exhausted in 2027.

DPW's report indicates that this outperformance was achieved through operational efficiencies (actual cost per paved mile below original expectations) and leveraging other funding sources. e. The Department of Transportation (DOT) Pavement Maintenance's other major funding source is the Santa Clara Valley Transportation Authority (VTA) Measure B 2016. This funds local street Americans with Disabilities Act (ADA) ramp projects, remove-and-replace pavement projects, and sealing projects. This funding accounts for roughly 40% of the total funding used towards the local streets paving program annually. Table 3-2 provides the details for miles funded by Measure T, miles funded by VTA Measure B, and the total miles completed by both funding sources.

Measure T COC FY2024-FY2025 Report Final V3 Page 3 of 10 Table 3-1. FY 24-25 Measure Public Safety Reserves Status Project Name
19/20 Initial
Budget
Current Total
Project Budget
(FY 24/25)
Estimated
Projected
Overages Comments
Fire Station 8 16,500,000 20,390,000 -3,890,000 In Construction - anticipated completion in late 2025
Fire Station 20 - 4,930,000 -4,930,000 Completed
Fire Station 23 16,500,000 4,147,000 12,353,000 Reduced scope - Land Acquisition only Fire Station 32 17,000,000 22,093,000 -5,093,000 In Construction - anticipated completion in spring 2026
Fire Station 36 17,000,000 18,036,000 -1,036,000 In Design Fire Station 37 6,680,000 8,011,000 -1,331,000 Completed Emergency
Operations Ctr
11,500,000 25,072,000 -13,572,000 Completed
PD Training
Center
45,000,000 59,042,000 -14,042,000 In Construction -
anticipated completion in spring 2026
PD Hangar 8,400,000 18,237,000 -9,837,000 In Construction - anticipated completion in spring 2026
911 Call Ctr
Upgrades
- 6,181,000 -6,181,000 In Design
Police Admin
Bldg Upgrades
- 6,250,000 -6,250,000 In Design
Admin Fees - 2,762,000 -2,762,000 Admin fees and Public Art were not originally budgeted, but required as part of
the program.

Public Art - 1,898,000 -1,898,000
Total 138,580,000 197,049,000 -58,469,000
Reserves Sources
36,420,000 Initial Public Safety Reserve Budget
14,100,000 Transfers: Charcot Drainage, Critical Infrastructure, Envi Protection 12,150,000 FS 8 land sale, FS 20 GF reimbursement, COI Usage 10,380,780 Interest Earned thru FY22/23
73,050,780 Total Sources
14,582,000 Total Reserves Remaining (as of 6/30/25)
Measure T COC FY2024-FY2025 Report Final V3 Page 4 of 10 Table 3-2. Measure T Pavement Program Status
Year
Miles Funded by
Measure T
(Resurfacing)
Miles Funded by VTA
Measure B
(Sealing + Ramps)
Total Miles
(Resurfacing +Sealing)
2020 73 56 129
2021 88 53 139
2022 132 54 185
2023 108 50 159
2024 115 59 174
2025 (planned) 109 63 172
Total 2024-1025 516 272 786
f. Bridge Project Funding. The Measure T program allocated $20 million for City-owned bridges that are designated as structurally deficient and could be vulnerable in an earthquake or other disaster. DPW is prioritizing bridges that are vulnerable to earthquakes to be completed first and then bridges that are in fair condition and/or non-vehicular bridges. In addition to the Measure T funding, DPW has identified Highway Bridge Program Federal-aid Funding, Caltrans, and Bridge Investment Credits as other potential funding sources for bridge project completion.

The COC recommends that the Bridge project funding and expenditures be tracked and reported in a manner similar to that used for the pavement program Measure T funding and VTA Measure B funding in order to distinguish between funding sources to determine what was accomplished with Measure T funding. g. The Storm Sewer Clean Water and Clean Stormwater Infrastructure Projects were originally allocated $25 million of Measure T funds and earmarked to address the River Oaks Regional Stormwater Capture Project, the Kelley Regional Stormwater Capture Project, and the Venetian Terrace Regional Stormwater Capture Project. The River Oaks Regional Stormwater Capture Project has been completed with an expenditure of $13,653,157. The COC recommends that the two remaining projects’ funding and expenditures be tracked and reported separately.
h. Measure T Completed Projects. A total of six of the twenty-two Measure T projects that are statused in the Independent Accountant’s report have been completed. Three of the completed projects are public safety projects. Table 3-3 provides a list of the projects and each project’s Initial project estimate, final project cost, and the results of expenditures Measure T COC FY2024-FY2025 Report Final V3 Page 5 of 10 Table 3-3. Measure T Completed Projects
Project
Initial
Project
Estimate
Final
Project
Cost
Results of Expenditures
Fire Station No. 37 6,680,000 7,867,975 The project was awarded on June 30, 2020, in the amount of $8,715,600, and began construction in
September 2020. The project received the
Certificate of Occupancy in July 2023 and has
been fully operational since May 2022.

Fire Station No. 20 - 4,600,000 4,929,731 Fire Station 20, located at SJ Airport, replaced the older existing Aircraft Rescue and Firefighting
Facility station. A landside bay to the project,
increasing operational efficiency to the Fire
Department’s emergency response to the
surrounding area. The project was completed at
the end of March 2022, with the newly expanded
fire station officially online and operational.

Emergency Operations
Center (EOC)
11,500,000 24,084,744 The EOC project, in conjunction with the Fire Department Training Center, was awarded
$54,105,000 on January 12, 2021. The EOC
portion of the funding was $11,500,000.

Public Safety Reserve funds in the amount of
$13,572,000 were used to complete the EOC
project. The project received a temporary
Certificate of Occupancy in April 2024 and was
extended through November 2024, with minor
punch list items remaining to be completed prior to
final project acceptance.

Flood Control-
Coyote Valley
50,000,000 46,791,543 City Council approved the purchase of approximately 672 acres of real property in Coyote
Valley. Savings were reallocated to the Public
Safety Program.

River Oaks Regional
Stormwater
10,999,618 13,653,157 The project award on June 13, 2023, was $10,999,618. The project started in September
2023 and reached beneficial use in February 2025.

Emergency Shelters
Priority 1 & 3
12,950,000 12,631,000 The Priority 1 project was awarded on April 4, 2023 in the amount of $1,938,436. Construction began in
June 2023 and reached beneficial use in
December 2024.

The Priority 3 project was awarded on June 13,
2023 in the amount of $1,198,780. Construction
started September 2023 and reached beneficial
use January 2025.

Measure T COC FY2024-FY2025 Report Final V3 Page 6 of 10

4. STATUS OF PRIOR YEAR RECOMMENDATIONS
a. Measure T COC has previously recommended that Council prioritize the remaining in-progress public safety projects. COC suggests rank-ordering them for receipt of Measure T’s dwindling reserves. Moreover, should the $14.5 million reserve balance be exhausted before all projects are completed, COC recommends Council develop a “cut” list to re-direct available Measure T resources from the least important remaining project(s) to those that are deemed more important. This will help ensure that the biggest number of higher priority projects actually get completed before Measure T funds are exhausted.
b. There were three vacancies (out of a total of fifteen appointed positions) – District 8, Public Safety, and Environmental Issues. Once again, we emphasize the importance of having a fully- seated COC and are hereby encouraging the City Council to appoint individuals to fill the remaining seats as soon as possible.
c. DPW needs to ensure continued timely spending of bond proceeds to comply with IRS regulations regarding the three-year spending requirement to maintain the issuance’s tax- exempt status.

5. CONTINUING RECOMMENDATIONS
To ensure continued communication and liaison with their respective constituencies, District representatives to the COC will again be required to reach out to their respective Councilmembers to offer any support deemed necessary within their given Districts to facilitate communication of the results of the COC’s Measure T oversight to that District’s constituency. This also serves to reinforce the importance of restated prior recommendation in Section 4, item b, immediately above.

6. BACKGROUND/DETAILS ON MEASURE T
This report to the Mayor and Council provides the COC findings and recommendations for the Measure T Disaster Preparedness, Public Safety, and Infrastructure Bond Program for the period from July 1, 2024, through June 30, 2025.

On November 6, 2018, registered voters of the City of San José approved Measure T, the San José Public Safety, and Infrastructure Bonds, authorizing the issuance and sale of general obligation bonds (PSI Bonds) not to exceed $650,000,000 to be used to fund the cost of land or improvement of land of, without limitation, the following categories of projects: Traffic, Public Safety, Storm Sewer, Municipal Improvements, and Parks & Community Facilities.

The COC was authorized because of the approved San José City’s Measure T bond measure that provided for Community Oversight of the expenditure of the bonds.

On June 18, 2019, the City Council approved the resolution establishing the size, composition, and specific responsibilities of the COC.

The Measure T Community Oversight Committee serves as an advisory committee to the City Council, with responsibilities to include the following: (1) Review the expenditure of Measure T funds to ascertain consistency with the voter approved purposes for the funds; (2) In connection with the review of Measure T expenditures, review and forward to the City Council an audit of the Measure T Bonds Financial Statements for the fiscal year ending June 30th as well as the Director of Finance’s annual report on the amount of Bonds issued and the amount of ad valorem tax collected for each prior fiscal year ending June 30th; and (3) Review the status of projects funded with Measure T funds and forward a status report on the pending Measure T projects to the City Council.

Measure T COC FY2024-FY2025 Report Final V3 Page 7 of 10

7. BOND PROCEEDS AND TAX EXEMPTION REQUIREMENTS
IRS rules require 85% of the bond proceeds for the Measure T projects must be expended within the three years of bond-issuance to remain tax exempt. The three-year window was reached for the first bond-issuance in July 2022; the three-year window was reached for the second bond-issuance in July 2024. DPW staff has been closely tracking Measure T expenditures to ensure the bond proceeds are spent in accordance with the IRS tax-exempt guidelines for municipal bonds. Table 7-1 provides the Measure T yearly bond history from 2018 through 2025.

The remaining $209.6 million was issued in July 2025 and will be reported on in Fiscal Year’s 2025- 2026 annual report.

Table 7-1. Measure T: Disaster Preparedness, Public Safety, and Infrastructure Bond Proceeds
2018 Bond Authorized $650.0 M
2019 Bond Issued ($239.9M)
2021 Bond Issued ($200.5M)
Total Bonds Issued to date ($440.4M)
Remaining Bond Issuance $209.6M

8. AUDITED USE OF FUNDS
San José City’s 2018 Measure T: Disaster Preparedness, Public Safety, and Infrastructure Bond Program Audited Use of Funds for FY 2024-2025 was $107,154,634. The Total Measure T Audited Use of Funds for FY 2019 through FY 2025 was $455,312,727.

The funds were allocated and expended for each of the Measure T program categories as detailed in Table 8-1 below.

Measure T COC FY2024-FY2025 Report Final V3 Page 8 of 10 Table 8-1. FY 2019-2020 Through FY 2024-2025 Measure T Audited Use of Funds Vs Planned Spending and Total Expected Expenditures by Major Category Measure T
Program
Category
Measure T
Audited Use
of Funds for
Fiscal Years
June 30,
2019 Through
June 30,
2025
(1)
June 30, 2025
Encumbrances
by Program
Category
(2)
Total Audited
Use of Funds
Plus
Encumbrances
at June 30,
2025
(3)
Revised Life-of-
Category
Expected
Expenditures per
DPW as of
6-30-25
(4)
Percent of
Funds
Spent vs
Total
Expected
Spending
(5)
Percentage
of Each
Measure T
Program
Category
Unspent as
of 6-30-25
(6)
Traffic 225,091,135 9,696,290 234,787,425 328,824,000 71.4% 29.6% Public Safety 136,143,724 11,823,921 147,967,645 221,820,516 (7) 66.7% 33.3% Storm Sewer 26,450,428 929,726 27,380,154 54,100,000 (8) 50.6% 49.4% Municipal
Improvements 56,689,153 56,689,154 58,072,495 (9) 97.6% 2.4% Parks & Comm
Facilities 10,938,287 130,113 11,068,400 12,947,000 85.5% 14.5% Total $455,312,727 $22,580,051 $477,892,778 $675,764,011 (10) 70.7% 29.3% (1) The aggregate sum of the last six fiscal year’s audited financial statements by Measure T program category
(2) Per the audited financial statements for June 30, 2025 – represents year-end contractual obligations/encumbrances by program category not included as a financial liability in the year- end audited use of funds calculation
(3) The sum of columns 1 and 2
(4) Per Measure T COC matrix (see attachment) (note: all program category estimates other than public safety have remained unchanged since the prior year – see footnote 7, below) (5) Column 3 divided by column 4
(6) Column 4 minus column 3 divided by column 4 (or 100% minus column 5). (7) Planned spending revision due to unscheduled increases in anticipated project costs, defunding of Fire station 23 and reallocation of available reserves from other unspent program categories (8) Planned spending previously revised due to Charcot project re-scoping; unused category reserve transferred to public safety
(9) Planned spending previously revised due to environmental project savings; unused category reserve transferred to public safety
(10) Increase in revised life-of-category expenditures from $663MM (last year’s number) to $676MM reflect s
funds availability due to the addition of interest earned on unspent bond proceeds and bond issuance fee recoveries
Measure T COC FY2024-FY2025 Report Final V3 Page 9 of 10

9. COC COMMITTEE MEMBERSHIP
A list of the COC members serving during FY 2024-2025 is provided in Table 9-1..

Table 9-1. COC Committee Members Serving During FY 2024-2025 Representing Committee Member Representing Committee Member D1 Gary Cunningham D9 Shruti Chandrasekhar
D2 Carolyn Bauer** D10 Emily G Esparza
D3 Michelle Brenot Citywide (Labor) Olivia Navarro
D4 Jai Srinivasan Citywide (Business) Mansukh Singh
D5 Enrique Arguello Citywide
(Finance/Accounting) Jay Anand
D6 Nicholas Cochran* Public Safety Open
D7 Hai Bui Environmental Issues Open
D8 Open
*Chair **Vice Chair

10. COC MEETINGS
COC meetings were conducted in accordance with SJ City and Brown Act requirements. The Program Manager from the San José City Director of Public Works provided support for meeting logistics including meeting rooms, Zoom calls, agendas, notices, and minutes.

11. AUDITED DATA AND STATUS REPORT
The San José City Director of Public Works provided the COC with the following:
• The Measure T Independent Auditor’s Report for the fiscal year ended June 30, 2025 and for the period from July 25, 2019 through June 30, 2025 (Measure T inception-to-date) The report was prepared by Macias Gini & O’Connell LLP (attachment 1). • The Director of Public Works Measure T, The Disaster Preparedness, Public Safety, and Infrastructure Bond Status Report, dated September 8, 2025 (attachment 3).

12. OVERSIGHT METHODOLOGY
Measure T requires community oversight of the measure’s bond proceeds. This includes reporting the measure’s planned proceeds allocation, actual allocations, and the result of the expenditure.

The FY 2024-2025 Independent Accountant's Report detailing the audited use of funds is used in the oversight process and is included as attachment 1.

The Director of Public Works Measure T, The Disaster Preparedness, Public Safety, and Infrastructure General Obligation Bond Status Report, dated September 8, 2025, is used in the oversight process. The status report provides the status on budget, schedule, and results of the expenditures and is included as attachment 3.

Measure T COC FY2024-FY2025 Report Final V3 Page 10 of 10

13. OVERSIGHT PROJECT ITEM COMPARISON MATRIX AND ANALYSIS A matrix of the projects was developed and compares those items with data provided in the reports cited in section 12, Oversight Methodology. The results of the comparisons form the findings for each of the project’s planned use of funds, audited use of funds, and the results or outcomes of the expenditures. The matrix is provided as attachment 2 to this report.

The matrix lists all projects to be funded by Measure T set forth by Measure T category, as rows, and is aligned with the projects listed in attachments 2 and 3. For each project line item (matrix row) nine items of data are shown in the nine columns of the matrix described in Table 13-1. Some projects listed may not have had any planned effort for this fiscal year and are noted as such in the matrix.

Table 13-1. Title and Description of contents of each of the Nine Columns of the Comparison Matrix (attachment 3)
Column# Column Title Description of contents of the column 0 Projects Project item associated with each Measure T category 1 Project Location by Council
Districts
The districts in which this line item is physically located or the districts either impacted by or benefitted from this item 2 2024-2025 Planned Use of
Funds
Planned FY 2024-2025 funding for the item
3 2024-2025 Audited Use of
Funds
Audited FY 2024-2025 funds used for the item
4 Total Audited Use of Funds
as of June 30, 2025
Total of FY 2019-2020 through FY 2024-2025 Audited
funds used for this item
5 Results of Expenditures Provides details of the accomplishments of the expended funds for the line item
6 Initial Life of Project Total
Estimated Expenditure
Provides Initial estimate of the Total Expenditure expected for completing line item
7 Revised Life of Project Total
Estimated Expenditure
Provides Revised/New estimate of the Total Expenditure
expected for completing line item
8 Potential Delta
(Expected overrun/underrun)
Provides the estimate of the Expected Overrun /Underrun for completing this line item. It is the difference between” Initial” and “Revised” Life of Project Total Estimated
Expenditure
ATTACHMENTS:

Attachment 1. FY 2024-2025 Independent Accountant's Report Statement of Revenues.

Expenditures, and Change in Fund Balance by Fiscal Year for the Period from July 1,2024 through June 30, 2025.

Attachment 2. FY 2024-2025 COC Oversight Project Item Comparison Matrix Attachment. 3 The Director of Public Works Status Report on the November 2018 Ballot Measure T – The Disaster Preparedness, Public Safety, and Infrastructure General Obligation Bond dated September 8, 2025

CITY OF SAN JOSE

PUBLIC SAFETY AND INFRASTRUCTURE

BOND PROJECTS FUND
(A Fund of the City of San José)
Independent Auditor’s Reports,
Financial Statements,
Other Supplementary Information and
Independent Accountant’s Report
For the Year Ended June 30, 2025
Certified
Public
Accountants
Attachment 1

CITY OF SAN JOSE

PUBLIC SAFETY AND INFRASTRUCTURE BOND PROJECTS FUND
(A Fund of the City of San José)
For the Year Ended June 30, 2025
Table of Contents
Page
Independent AUdit0r9s REPOLE os .scsscsissssesexcssessssessenescavecneacreransconenennvneneonsenenveannssneereneveneonseceeneeneenensnreceneeas 1 Financial Statements:

Balance Sheet scsserssssesssvsssccsassescessessvssnsssevanisenersaveesanavnsvesteasoscaswensavscesorwtonsecessenssveovensgoansesenanavsrregseseosissesseseesvens 5 Statement of Revenues, Expenditures, and Change in Fund Balance .o....cccccessssssssssssssseeeseeeseseseseseeeneeresees 6 Notes to the Financial Statement... eeseesesseeeecesseeseeeesseeeesesessssssscscsasssssscsescsssssssessssesessecesssesseeensnsesseeeeseney 7 Other Supplementary Information:

Statement of Revenues, Expenditures, and Change in Fund Balance by Fiscal Year For the Period from July 25, 2019 through June 30, 2025 uo... ecccsssssssssecssssessersesseseteesensessescesseneeeeneessenees 13 Other Reports:

Independent Auditor9s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ....ccescsssssessesesssessssecsssssssceseeeseesesenees 15 Independent Accountant9s Report on Compliance with Measure T ........cccsscsesessesseseteeseseeeneetensesseneeneens 17 s Certified
Public
8 Accountants
Independent Auditor9s Report
City Council and
Members of the Measure T Community Oversight Commission City of San José, California
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of the Public Safety and Infrastructure Bond Projects Fund (Fund), a fund of the City of San José (City), as of and for the year ended June 30, 2025, and the related notes to the financial statements, as listed in the table of contents.

In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the financial position of the Fund of the City of San José, as of June 30, 2025, and the changes in its financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States (Government Auditing Standards). Our responsibilities under those standards are further described in the Auditor9s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Emphasis of a Matter
As discussed in Note 2, the financial statements present only the Fund and do not purport to, and do not, present fairly the financial position of the City, as of June 30, 2025, the changes in its financial position, or where applicable, its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter.

Management9s Responsibilities for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Macias Gini & O9Connell LLP
2121 N. California Boulevard, Suite 750 www.mgocpa.com
Walnut Creek, CA 94596
Auditor9s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor9s report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS and Government Auditing Standards, we:
¢ Exercise professional judgment and maintain professional skepticism throughout the audit. ¢ Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
e Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City9s internal control. Accordingly, no such opinion is expressed. ¢ Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control4related matters that we identified during the audit.

Supplementary Information
Our audit was conducted for the purpose of forming an opinion on the financial statements. The accompanying statement of revenues, expenditures, and change in fund balance by fiscal year for the period from July 25, 2019 through June 30, 2025, is presented for purposes of additional analysis and is not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information for the year ended June 30, 2025 has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary information for the year ended June 30, 2025 is fairly stated, in all material respects, in relation to the financial statements as a whole.

We also have previously audited, in accordance with auditing standards generally accepted in the United States of America, the Fund9s financial statements as of and for the period from July 25, 2019 through June 30, 2024, which are not presented with the accompanying financial statements. In our reports dated November 17, 2020, November 3, 2021, October 18, 2022, October 13, 2023, October 17, 2024, we expressed unmodified opinions on the Fund9s financial statements. The audits were conducted for the purpose of forming opinions on the financial statements as a whole. The information for the period from July 25, 2019 through June 30, 2024 has been subjected to the auditing procedures applied in the audits of those financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information for the period from July 25, 2019 through June 30, 2024 is fairly stated, in all material respects, in relation to the financial statements from which they have been derived.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated October 3, 2025 on our consideration of the City9s internal control over the Fund9s financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City9s internal control over the Fund9s financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City9s internal control over the Fund9s financial reporting and compliance.

Macias Gin ¢ OCell LEP
Walnut Creek, California
October 3, 2025
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CITY OF SAN JOSE

PUBLIC SAFETY AND INFRASTRUCTURE BOND PROJECTS FUND
(A Fund of the City of San José)
Balance Sheet
June 30, 2025
Assets
Restricted assets:

Investments held with fiscal agents
Total assets
Liabilities and Fund Balance
Liabilities:

Accounts payable
Accrued salaries, wages and payroll taxes
Due to the City of San José
Total liabilities
Fund balance:

Restricted for Public Safety and Infrastructure Bond projects Total liabilities and fund balance
See accompanying notes to the financial statements.
5 44,852,588
44,852,588
13,506,322
127,915
15,049,068
28,683,305
16,169,283
44,852,588

CITY OF SAN JOSE

PUBLIC SAFETY AND INFRASTRUCTURE BOND PROJECTS FUND
(A Fund of the City of San José)
Statement of Revenues, Expenditures, and Change in Fund Balance For the Year Ended June 30, 2025
Revenues:

Investment income $ 7,131,726
Expenditures:

Public safety 46,592,466
Traffic 36,546,298
Storm sewer 15,388,655
Municipal improvements 1,065,973
Park & community facilities 7,561,242
Total expenditures 107,154,634
Change in fund balance (100,022,908)
Fund balance, beginning of year 116,192,191
Fund balance, end of year $ 16,169,283
See accompanying notes to the financial statements.
6 CITY OF SAN JOSE

PUBLIC SAFETY AND INFRASTRUCTURE BOND PROJECTS FUND
(A Fund of the City of San José)
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 1 4- BACKGROUND
On November 6, 2018, registered voters of the City of San José (City) approved Measure T, the San José Public Safety and Infrastructure Bonds, authorizing the issuance and sale of general obligation bonds (PSI Bonds) not to exceed $650,000,000 to be used to fund the cost of land or improvement of land for, without limitation, the following categories of projects.
e The upgrade of 911 communications, police, fire and paramedic facilities to improve emergency and disaster response;
Repair deteriorating bridges vulnerable to being damaged in an earthquake; Repaving local and neighborhood streets and potholes in the worst condition; Preventing flooding and water quality contamination; and Repair or replace critical infrastructure that is likely to reduce long-term spending on operations or maintenance.

The table below sets forth the amount of PSI Bonds authorized and issued pursuant to Measure T:

Amount Date
Voter authorization $ 650,000,000 November 6, 2018
Bonds issued:

Series 2019 Bonds 239,900,000 July 25, 2019
Series 2021 Bonds 200,530,000 July 29, 2021
Total bonds issued 440,430,000
Authorized but unissued $ 209,570,000
As of June 30, 2025, outstanding projects approved by the City Council to be funded by the bond proceeds include the emergency operations center relocation, Fire Station Nos. 8 and 23 relocations, new Fire Station Nos. 32 and 36, police air support unit hangar, police training center relocation, public art 4 public safety, 911 call center upgrade, Police Department (PD) headquarters upgrade, bridges, pavement maintenance, Charcot storm drainage, clean water projects, and community centers/emergency shelters.

NOTE 2 4-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The accompanying financial statements present only the financial position and the changes in financial position of the Public Safety and Infrastructure Bond Projects Fund (Fund) and do not purport to, and do not, present fairly the financial position of the City, as of June 30, 2025, and the changes in its financial position, or where applicable, its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America.

A capital projects fund (governmental fund) is used to account for the City9s Public Safety and Infrastructure Bond Projects activities. Capital projects funds are used to account for financial resources (e.g., bond proceeds and investment income) that are restricted, committed, or assigned to expenditures for capital outlays, including the acquisition of land or acquisition and construction of major governmental facilities.

CITY OF SAN JOSE

PUBLIC SAFETY AND INFRASTRUCTURE BOND PROJECTS FUND
(A Fund of the City of San José)
Notes to the Financial Statements (Continued)
For the Year Ended June 30, 2025
NOTE 2 4-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Basis of Accounting
The Fund9s activity is reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available.

Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. The Fund considers revenues to be available if collected within 60 days of the end of the current fiscal period. Expenditures are generally recorded when a liability is incurred, as under accrual accounting. However, expenditures related to vacation, sick leave, claims and judgments are recorded only when payment is due.

Restricted Cash and Investments
Cash and investments that are restricted for specified uses by bond covenants or other requirements are classified as restricted. The Fund9s restricted cash and investments are held in the City Treasury and in fiscal agent accounts to be spent only on authorized capital projects. The Fund9s restricted cash and investments are subject to the requirements of the City9s adopted investment policy and bond indentures.

The fair value of investments is based on quoted market information obtained from fiscal agents or other sources.

Fund Balance
Under Governmental Accounting Standards Board Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, the balance sheets of governmental funds classify fund balances based primarily on the extent to which the Fund is bound to honor constraints on the specific purposes for which those funds can be spent. The Fund only has restricted fund balance at June 30, 2025. Restricted fund balance represents amounts when constraints placed on use of resources are either (1) externally imposed by creditors (such as through debt covenants), grantors, contributors, or laws or regulations of other governments; or (2) imposed by law through constitutional provisions or enabling legislation.

Use of Estimates
The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make certain estimates and assumptions that affect the reported amounts and disclosures. Accordingly, actual results may differ from those estimates.

CITY OF SAN JOSE

Moody9s Credit Weighted Average
Type of investment Fair Value Risk Rating Maturity
State of California Local Agency Investment Fund $ 37,150,194 Unrated 248 days Wilmington Trust Money Market Mutual Fund 7,702,394 Aaa-mf 36 days Total investments $ 44,852,588
The Fund has investments subject to provisions of the bond indentures of its various bond issues.

According to the bond indentures, the Fund is permitted to invest in the City9s cash and investment pool, the State of California Local Agency Investment Fund (LAIF), obligations of the U.S. Treasury or U.S. government agencies, time deposits, money market mutual funds invested in U.S. government securities, along with various other investments.

The Fund maintains part of its investments in the City9s cash and investment pool. The amounts held in the City9s investment pool can be withdrawn upon demand. Income and losses arising from the investment activity of pooled cash are allocated to the participating funds on a monthly basis, based on their proportionate shares of the average daily cash balance. As of June 30, 2025, the Fund has a negative unrestricted pooled balance of $15,049,068 in the City9s cash and investment pool, which is included as a payable to the City of San José on the accompanying financial statements.

Information regarding the characteristics of the entire City9s cash and investment pool can be found in the City9s basic financial statements for the year ended June 30, 2025. A copy of that report may be obtained by contacting the City9s Finance Department, 200 East Santa Clara Street, 13"Floor, San José, CA, 95113 or can be found at the City9s Finance Department Website at http://www.sanjoseca.gov.

Government Code Section 16429.1 authorizes each local government agency to invest funds in the LAIF administered by the California State Treasurer. The total amount recorded by all public agencies in LAIF at June 30, 2025 was approximately $24.5 billion. LAIF is part of the State9s Pooled Money Investment Account (PMIA). The total amount recorded by all public agencies in PMIA at June 30, 2025 was approximately $178.1 billion and of that amount, 96.2% was invested in non-derivative financial products and 3.8% in structured notes and asset backed securities. The Local Investment Advisory Board (Board) has oversight responsibility for LAIF. The Board consists of five members as designated by State statute.

The value of the pool shares in LAIF, which may be withdrawn, is determined on an amortized cost basis, which is different than the fair value of the Fund9s position in the pool.

Credit Risk
Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This risk is measured by the assignment of a rating by nationally recognized statistical rating organizations. The City9s investment policy has mitigated credit risk by limiting investments to the safest types of securities, by prequalifying financial institutions, by diversifying the portfolio, and by establishing monitoring procedures.

CITY OF SAN JOSE

PUBLIC SAFETY AND INFRASTRUCTURE BOND PROJECTS FUND
(A Fund of the City of San José)
Notes to the Financial Statements (Continued)
For the Year Ended June 30, 2025
NOTE 3 4 RESTRICTED INVESTMENTS (Continued)
Concentration Credit Risk
Concentration of credit risk is the risk that the failure of any one issuer would place an undue financial burden on the Fund. Investments issued by or explicitly guaranteed by the U.S. government and investments in mutual funds and other pooled investments are exempt from this requirement, as they are normally diversified themselves.

Interest Rate Risk
Interest rate risk is the risk that changes in market rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment the greater the sensitivity of its fair value to changes in market rates. The City9s investment policy has mitigated interest rate risk by establishing policies over liquidity, including maturity limits by investment classification. These limits, for investments other than external investment pools and money market mutual funds, range from 10 days to 5 years depending on the investment classification.

Fair Value Measurement Categorization
The Fund categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. Level 1 inputs are quoted prices in an active market for identical assets; Level 2 inputs are significant other observable inputs; and Level 3 inputs are significant unobservable inputs. The inputs and techniques used for valuing securities are not necessarily an indication of risk associated with investing in those securities. The City9s investment in Wilmington Trust Money Market Mutual Funds is measured at level 1 inputs, while investments in the City9s cash and investment pool and LAIF are not subject to fair value hierarchy.
10 CITY OF SAN JOSE

PUBLIC SAFETY AND INFRASTRUCTURE BOND PROJECTS FUND
(A Fund of the City of San José)
Notes to the Financial Statements (Continued)
For the Year Ended June 30, 2025
NOTE 4 4 COMMITMENTS
At June 30, 2025, the Fund has related outstanding project construction encumbrances as follows:

Project Amount
Public safety
Emergency operations center relocation $ 485,385
Fire station No. 8 relocation 2,193,273
Fire station No. 23 relocation 24,392
New fire station No. 32 2,440,497
New fire station No. 36 1,200,000
Police air support unit hangar 2,419,630
Police training center relocation 2,548,571
Public art - public safety 67,080
911 call center upgrade 188,613
PD headquarters upgrade 256,480
Traffic
Bridges 234,927
Pavement maintenance 9,461,363
Storm sewer
Charcot storm drainage 774,902
Clean water projects 154,824
Municipal improvements
City facilities LED lighting 1
Park & Community Facilities
Community centers/emergency shelters 130,113
Total project encumbrances $ 22,580,051
NOTE 5 4 GENERAL OBLIGATION BONDS
On July 25, 2019, the City issued Series 2019 General Obligation Bonds (2019 Bonds) pursuant to the fiscal agent agreement with Wilmington Trust. The 2019 Bonds were the first tranche of bonds issued under Measure T, as disclosed in Note 1. Proceeds from the 2019 Bonds in the amount of $239,900,000 and a bond premium at issuance in the amount of $34,158,933 were issued for Measure T purposes. The premium was used to pay debt service on the Series 2019 A-2 taxable Measure T Bonds in the amount of $33,114,340, to pay cost of issuance, and to fund the debt service accounts. The proceeds related to the premium in excess of the amounts necessary to pay debt service on the 2019 A-2 Bonds, cost of issuance, and debt service fund deposits amounted to $95,698, and was deposited into the Public Safety and Infrastructure Bond Projects Fund for Measure T purposes. 11 CITY OF SAN JOSE

PUBLIC SAFETY AND INFRASTRUCTURE BOND PROJECTS FUND
(A Fund of the City of San José)
Notes to the Financial Statements (Continued)
For the Year Ended June 30, 2025
NOTE 5 4 GENERAL OBLIGATION BONDS (Continued)
On July 29, 2021, the City issued $200,530,000 of General Obligation Bonds, consisting of Series 2021A (in the principal amount of $151,210,000), Series 2021B (federally taxable, in the principal amount of $8,450,000) and Series 2021C (federally taxable, in the principal amount of $40,870,000) (collectively, the <2021 GO Bonds=). The 2021 GO Bonds constitute the second round of general obligation bonds issued under the Measure T authorization of $650,000,000 for Disaster Preparedness, Public Safety, and Infrastructure, approved by the voters in November 2018. The 2021 GO Bonds are secured by a pledge of the City to levy ad valorem property taxes without limitation of rate or amount (except certain personal property which is taxable at limited rates). The ad valorem property tax levy is calculated for each fiscal year to generate sufficient revenue to pay 100% of annual debt service net of other available funding sources.

The 2019 and 2021 Bonds related to Measure T are reported in capital projects and debt service funds of the City, and further details can be located in the City9s annual comprehensive financial report.

NOTE 6 4- SUBSEQUENT EVENT
On July 23, 2025, the City issued $209,570,000 of General Obligation Bonds, consisting of Series 2025A (tax-exempt, in the principal amount of $181,740,000), Series 2025B (federally taxable, in the principal amount of $15,190,000) and Series 2025C (federally taxable, in the amount of $12,640,000) (collectively, the <2025 GO Bonds=). The 2025 GO Bonds constitute the third and final issuance of bonds under the Measure T authorization of $650,000,000 for Disaster Preparedness, Public Safety, and Infrastructure, approved by the voters in November 2018. The aggregated true interest cost is 4.432%. The 2025 GO Bonds were issued as long-term fixed-rate debt with level debt service with the final maturity of September 1, 2055. The 2025 GO Bonds are secured by a pledge of the City to levy ad valorem property taxes without limitation of rate or amount (except certain personal property which is taxable at limited rates). The ad valorem property tax levy is calculated for each fiscal year to generate sufficient revenue to pay 100% of annual debt service net of other available funding sources.

Revenues:

Investment income
Unrealized gain/loss on investment
Intergovernmental
Other
Total revenues
Expenditures:

Public safety
Emergency operations center relocation
Fire station No. 8 relocation
Fire station No. 20 relocation
Fire station No. 23 relocation
New fire station No. 32
New fire station No. 36
New fire station No. 37
Police air support unit hangar
Police training center relocation
Public art - public safety
911 call center upgrade
PD headquarters upgrade
Admin - public safety
Traffic
Bridges
Pavement maintenance
LED streetlight conversion
Admin - traffic
Storm sewer
Charcot storm drainage
Clean water projects
Public art - storm sewer
Admin - storm sewer
Municipal improvements
Environment Protection
City facilities LED lighting
Admin - municipal improvements
Park & community facilities
Community centers/emergency shelters
Public art - parks
Admin - parks
Total expenditures
Deficiency of revenues under expenditures
Other Financing Sources and Uses:

Bond proceeds
Excess bond premium
Proceeds from the sale of property
Total other financing sources and uses
Change in fund balance
Fund balance, beginning of period
Fund balance, end of period
Statement of Revenues, Expenditures, and Change in Fund Balance by Fiscal Year

CITY OF SAN JOSE

PUBLIC SAFETY AND INFRASTRUCTURE BOND PROJECTS FUND
(A Fund of the City of San José)
For the Period from July 25, 2019 through June 30, 2025 2020 2021 2022 2023 2024 2025 Total
3,201,017 $ 1,616,937 $ 460,961 $ 5,071,110 $ 8,342,769 $ 7,131,726 $ 25,824,520 - : (14,192) 14,192 2 . .
< 2 2,331,792 z < : 2,331,792
: : 300,000 : : 300,000
3,201,017 1,616,937 3,078,561 5,085,302 8,342,769 7,131,726 28,456,312 82,346 3,665,164 8,089,855 8,104,435 2,636,828 1,506,116 24,084,744 63,503 2,472,973 3,025,552 1,112,298 3,789,806 7,527,766 17,991,898 : 3,774,693 1,145,605 9,433 F . 4,929,731
9,202 25,855 39,550 35,165 32,359 417,127 559,258
40,316 138,401 4,125,604 1,137,928 236,692 7,026,124 12,705,065 7,986 78,384 44,949 294,141 9,319 15,438 450,217
34,056 1,823,256 5,825,002 152,504 32,743 414 7,867,975 63,843 138,608 280,338 1,102,396 4,862,039 8,742,653 15,189,877 271,570 18,620,490 576,197 1,519,693 6,021,328 20,364,583 47,373,861 50,860 225,060 170,734 386,808 208,343 247,438 1,289,243 17,877 37,016 347,578 351,000 219,446 339,703 1,312,620 8,232 19,431 40,623 22,880 258,390 57,365 406,921
307,365 370,912 257,550 385,717 313,031 347,739 1,982,314 823,581 679,065 1,733,451 1,060,791 3,650,633 2,330,284 10,277,805 1,481,453 38,809,769 42,767,059 38,860,270 55,184,512 34,017,609 211,120,672 520,608 873,614 256,526 772,430 876,787 180,660 3,480,625 105,007 20,958 11,857 28,178 28,288 17,745 212,033
322,422 154,206 152,034 1,224,983 1,473,416 8,605,793 11,932,854 455,552 425,697 626,567 752,933 4,844,308 6,548,100 13,653,157 962 4,896 65,480 53,981 121,548 110,062 356,929
30,452 28,168 152,122 30,982 141,064 124,700 507,488
46,077,538 451,094 261,727 1,184 - - 46,791,543
1,385,703 2,564,706 2,386,732 1,936,851 477,266 1,065,973 9,817,231 30,918 20,512 25,588 3,361 2 = 80,379
6,407 45,064 316,437 891,190 1,993,071 7,538,913 10,791,082 - - - 36,802 - - 36,802
3,013 4,905 11,475 38,820 29,861 22,329 110,403
52,200,772 75,472,897 72,736,192 60,307,154 87,441,078 107,154,634 455,312,727 (48,999,755) (73,855,960) (69,657,631) (55,221,852) (79,098,309) (100,022,908) (426,856,415) 239,900,000 - 200,530,000 2 : : 440,430,000
50,789 44,909 < 2 < : 95,698
- < 2,500,000 = 7 : 2,500,000
239,950,789 44,909 203,030,000 z = 2 443,025,698
190,951,034 (73,811,051) 133,372,369 (55,221,852) (79,098,309) (100,022,908) 16,169,283 - 190,951,034 117,139,983 250,512,352 195,290,500 116,192,191 - $ 190,951,034 $ 117,139,983 $ 250,512,352 $ 195,290,500 $ 116,192,191 $ 16,169,283 $ 16,169,283 ' Environmental Protection 4 FY 2019-2020 transactions include the acquisition of real property located in the Coyote Valley for $38.3 million and the payoff of the Community Facilities District No. 9 (Bailey/Highway 101) outstanding bonds for $7.59 million. 13 This page intentionally left blank.
e Certified
! i | Public
r Accountants
Independent Auditor9s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards City Council and
Members of the Measure T Community Oversight Commission City of San José, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States (Government Auditing Standards), the financial statements of the Public Safety and Infrastructure Bond Projects Fund (Fund), a fund of the City of San José (City), as of and for the year ended June 30, 2025, and the related notes to the financial statements, and have issued our report thereon dated October 3, 2025.

Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City9s internal control over the Fund9s financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City9s internal control.

Accordingly, we do not express an opinion on the effectiveness of the City9s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity9s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified.

Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Fund9s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Macias Gini & O9Connell LLP
2121 N. California Boulevard, Suite 750 Wwwemgocpa.com
Walnut Creek, CA 94596
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity9s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity9s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Macias Givi é OCanell LEP
Walnut Creek, California
October 3, 2025
16 a Certified
| i i Public
a Accountants
Independent Accountant9s Report on Compliance with Measure T City Council and
Members of the Measure T Committee Oversight Commission City of San José, California
We have examined the City of San José9s (City) compliance with certain provisions of Measure T for the year ended June 30, 2025 as follows:
e Bond proceeds were used to pay for the cost of land or improvement of land of, without limitation, the following categories of projects.
o The upgrade of 911 communications, police, fire and paramedic facilities to improve emergency and disaster response;
o Repair deteriorating bridges vulnerable to being damaged in an earthquake; o Repaving local and neighborhood streets and potholes in the worst condition; o Preventing flooding and water quality contamination; and o Repair or replace critical infrastructure that is likely to reduce long-term spending on operations or maintenance.

Management is responsible for the City9s compliance with those requirements. Our responsibility is to express an opinion on the City9s compliance based on our examination.

Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance whether the City complied with the specified requirements, in all material respects, with the specified requirements referenced above. An examination involves performing procedures to obtain evidence about the City9s compliance with the specified requirements.

The nature, timing, and extent of the procedures selected depend on our judgment, including an assessment of the risks of material noncompliance, whether due to fraud or error. We believe the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion.

We are required to be independent and to meet our other ethical responsibilities in accordance with relevant ethical requirements relating to the engagement.

Our examination does not provide a legal determination on the City9s compliance with the specified requirements.

In our opinion, the City complied, in all material respects, with the aforementioned requirements for the year ended June 30, 2025.

Macias Gin é OCanel LEP
Walnut Creek, California
October 3, 2025
Macias Gini & O9Connell LLP
2121 N. California Boulevard, Suite 750 Wwww.mgocpa:com Walnut Creek, CA 94596
17 This page intentionally left blank.
18 Final Version
Projects 0 Project Location by Council
Districts1
2024-2025
Planned Use of
Funds2
2024-2025
Audited Use of
Funds3
Total Audited Use of Funds as of
June 30, 20254 Results of Expenditures5 Initial Total Project Estimates6
Updated Total Project
Estimates as of November
20257
Potential Delta (expected
overrun/underrun) 8 Notes

1. Traffic

1.1 Bridges
CW 2,504,000$ 2,330,284$ 10,277,805$
Staff expenditures associated with completing
the maintenance on 11 bridges addressing deck
treatment and concrete spalls, engineering
design for the replacement of Gold St.

Connector over Agnew Overflow, maintenance
improvements on Tully Road over Coyote
Creek, and emergency repair on Lincoln Ave
over Los Gatos Creek. In addition, on-call
consultant performed Non-NBI bridge
inspections to update the current maintenance
backlog and provided repair recommendations.
$ 20,000,000 $ 19,977,000 $ 23,000

1.2 Pavement Maintenance
CW 41,595,200$ 34,017,609$ 211,120,672$
Completed maintenance on 85 miles of local
and neighborhood streets. Started design on 78
miles of local streets.
$ 300,000,000 $ 300,000,000 $ -
The Measure T program designated $300 million for the repair or rehabilitation of local and neighborhood streets in the worst condition. In 2019, this meant resurfacing a total of 420 miles of streets using Measure T funds. However, as pavement conditions deteriorated over time, more streets fell into the rehabilitation category for pavement treatment. To deliver the pavement program efficiently, staff divided stretches of roadways into zones and prioritized these zones based on overall conditions while also leveraging other funding sources to supplement and deliver projects efficiently and effectively. Approximately 516 miles have been resurfaced since 2020 utilizing Measure T funds. The City is currently projecting to complete paving about 92% of its local and neighborhood streets by 2028.

1.3 LED Streetlight Conversion
CW 479,000$ 180,660$ 3,480,625$
164 fixtures were ordered, but none were
installed due to City crews focusing on copper
theft.
$ 13,000,000 $ 8,578,000 $ 4,422,000
$4.3M of this funding has been transferred to City Facilities LED (Line item 4.1) to cover expenses that were spent benefitting both programs.

Most of the 164 fixtures have already been installed by a contractor the first several months of FY 25/26.

1.4 Admin – Traffic
N/A 22,000$ 17,745$ 212,033$ Administration costs

1.5 Admin Reserve – Traffic
N/A 42,000$ - - Administration costs
Total Traffic $ 44,642,200 $ 36,546,298 $ 225,091,135 $ 333,000,000 $ 328,824,000 $ 4,176,000 Transferred to the City Facilities LED project in the Muni program

2. Public Safety

2.1 Fire Station 37
6 8,000$ 414$ 7,867,975$ Staff costs associated with final close out of project. Project completed. $ 6,680,000 $ 7,867,975 $ (1,187,975) Actual Bid Results came in higher. Allocation from Public Safety Reserve.

Project completed. Remaining balance returned to the PS Reserves.

2.2 Fire Station 8 Relocation
3 1,756,000$ 7,527,766$ 17,991,898$
Awarded to DL Falk Construction, Inc.

Construction began Oct. 2023 and anticipated
to be completed late 2025. Staff charges for
managing the construction, including pay letters
and change orders.
$ 16,500,000 $ 21,290,000 $ (4,790,000) Actual Bid Results came in higher. Allocation from Public Safety Reserve

2.3 Fire Station 23 Relocation
4 462,000$ 417,127$ 559,258$
Staff has identified a suitable site for the
relocation project and have been in negotiations
with the property owners. Expenditures for staff
time as it relates to the site search process and
required environmental review as part of site
selection.
$ 16,500,000 $ 4,147,000 $ 12,353,000
Project was defunded to cover other public safety projects and the remainder was placed in a the Public Safety Reserve. Note:

Money has been set aside for land acquisition.

Measure T Public Safety and Infrastructure Bond Fund Planned and Audited Use of Funds FY2024-FY2025 $ 269,000 $ (269,000)
Funds only the Senior Analyst and Accountant positions – all other positions are direct charge to the capital project. General obligation bonds have a 5% cap on administrative costs. The total Measure T admin costs are less than 1% of the entire bond.

Attachment 2
Final Version
Projects 0 Project Location by Council
Districts1
2024-2025
Planned Use of
Funds2
2024-2025
Audited Use of
Funds3
Total Audited Use of Funds as of
June 30, 20254 Results of Expenditures5 Initial Total Project Estimates6
Updated Total Project
Estimates as of November
20257
Potential Delta (expected
overrun/underrun) 8 Notes
Measure T Public Safety and Infrastructure Bond Fund Planned and Audited Use of Funds FY2024-FY2025

2.4 New Fire Station 32
7 13,541,000$ 7,026,124$ 12,705,065$
Awarded to Gonsalves and Stronck
Construction Company June 2024 and
anticipated to be completed Spring 2026. Staff
charges for managing the construction,
including pay letters and change orders.
$ 17,000,000 $ 22,093,000 $ (5,093,000) Difference in costs are associated with projected inflation rates as well as the expanded scope to include the dual company per Council direction from June 2022. Additional funding allocated from the Public Safety Reserve.

2.5 New Fire Station 36
7 1,259,000$ 15,438$ 450,217$
Staff charges associated with the preparation of
the master agreement for the consultant for
design services. Design started June 2025.
$ 17,000,000 $ 19,077,000 $ (2,077,000) Difference in costs are associated with projected inflation rates.

2.6 Fire Station 20
CW - - 4,929,731$ Project completed. $ - $ 4,929,731 $ (4,929,731) Landside serving fire station located at the San Jose Airport. Only $2.3M was replenished by the General Fund. Total Cost of Project: $4,929,731
Project completed.

2.7 Emergency Ops Ctr. Relocation
(EOC)
CW 1,613,000$ 1,506,116$ 24,084,744$
Staff charges associated with managing the
project close out, including paying out
contractor's invoices and change orders.

Project completed (beneficial use in April
2024). There are some closeout items that need
to be wrapped up.
$ 11,500,000 $ 25,072,000 $ (13,572,000) Allocation from Public Safety Reserve.

Beneficial Use as of April 2024. Final closeout items remain (i.e. HVAC, alarms, solar panels monitoring, additional signage & misc items by PW - should be done in FY 25/26)

2.8 Police Training Ctr. Relocation
CW 21,013,000$ 20,364,583$ 47,373,861$
Awarded to Midstate Construction December
2023 and anticipated to be completed Spring
2026. Staff finished the design and for both the
academy and training spaces; construction
commenced in March 2024 . Expenditures
account for staff time, consultant design
services and construction/change order invoices.
$ 45,000,000 $ 59,042,000 $ (14,042,000) A portion of this overrun has been reimbursed from the savings obtained from Storm Sewer program and public safety reserves.

The total project budget is for full build out of the Police Training & Academy spaces.

2.9 Police Air Support Unit Hangar
CW 2,692,000$ 8,742,653$ 15,189,877$
Construction started January 2024 and
anticipated to be completed December 2025.

Staff charges, consultant design services and
construction/change order invoices.
$ 8,400,000 $ 18,862,000 $ (10,462,000) Difference in costs are associated with projected inflation rates as well as the expanded scope to build an essential building.

Additional funding required for the fire foam suppression system and design services. Funding allocated from the Public Safety Reserve.

2.10 Public Safety Reserve
N/A 14,581,884$ - - Reserve funds carried from prior year. Includes project savings and earned interest on the fund. $ 36,420,000 $ 17,475,256 $ 36,420,000 Interest earning from all programs have been placed into the Public Safety reserve to help with funding shortfalls.

2.11 911 Call Center Upgrade
CW 3,026,000$ 339,703$ 1,312,620$
Staff charges and consultant services for the
design and to prepare for bid and award of this
project.
$ - $ 11,053,492 $ (11,053,492) Initial estimates were not established at the time of the bond passing. This project is funded from Public Safety Reserve

2.12 PD Admin Building Upgrades
(formerly PD Headquarters Upgrade) CW 538,000$ 57,365$ 406,921$ Staff charges for preliminary design of the
HVAC upgrades and plumbing improvements at
the PAB.
$ - $ 6,250,000 $ (6,250,000) Initial estimates were not established at the time of the bond passing. This project is funded from Public Safety Reserve

2.13 Public Art – Public Safety
N/A 741,000$ 247,438$ 1,289,243$ Funding to cover the public art requirement for this bond $ - $ 1,898,000 $ (1,898,000) Required funding for public artwork no less than 1% of the total amount budgeted for the City’s capital improvement project.

Exceptions are non-construction or rehabilitation projects.

2.14 Admin – Public Safety N/A 372,000$ 347,739$ 1,982,314$ Administration costs

2.15 Admin Reserve – Public Safety N/A 710,000$ - - Administration costs Total Public Safety
$ 62,312,884 $ 46,592,466 $ 136,143,724 $ 175,000,000 $ 221,819,454 $ (29,344,198) The delta is being covered by some of savings obtained in the Muni Improvements (roughly $8.2M), the bond issuance fee ($7.05M), the revenue from selling property to VTA ($2.8M), interest earnings ($19.6 M), partial reimbursement of FS 20 ($2.3M), and the transfer from the storm sewer program
($5.9M)

3. Storm Sewer

3.1.1 Charcot Storm Drain
Improvements - Package I
4 Charcot Package I was awarded to JMB
Construction, Inc. Jun 2024 and anticipated to
be completed Dec 2025. Staff charges for
managing the construction, including pay letters
and change orders.

Project was re-scoped to construct a less costly storm drain system rather than a pump station. The project savings were reallocated to the Public Safety program.

The project will be built in two phases. Funding is available to build Package I and only design of Package II.
$ - $ 2,762,000 $ (2,762,000) See note for item 1.4 & 1.5 $ 35,000,000 $ 28,264,000 $ 6,736,000 11,932,854$ 11,732,000$ 8,605,793$ Final Version
Projects 0 Project Location by Council
Districts1
2024-2025
Planned Use of
Funds2
2024-2025
Audited Use of
Funds3
Total Audited Use of Funds as of
June 30, 20254 Results of Expenditures5 Initial Total Project Estimates6
Updated Total Project
Estimates as of November
20257
Potential Delta (expected
overrun/underrun) 8 Notes
Measure T Public Safety and Infrastructure Bond Fund Planned and Audited Use of Funds FY2024-FY2025

3.1.2 Charcot Storm Drain
Improvements - Package II
4 Staff continued to progress the design of
Package II, which is estimated to be completed
December 2025. Expenditures account for staff
time and consultant services for project design.

There is insufficient funding for construction of Package II. Staff is looking for cross connections with Package I to utilize the remaining funding and seeking other potential grants.

3.2.1 Clean Water: River Oaks
Stormwater Capture Project
4 Expenditures account for staff time, consultant
services, construction costs and change orders.

Beneficial Use as of January 2025.

To supplement bond funds, the City continues to pursue federal and state grants for Green Stormwater Improvements.

3.2.2 Clean Water: Venetian Terrace
Stormwater Capture Project 9 Staff continued to progress with the scoping, community outreach, and design costs.

Project is currently in the design phase

3.2.3 Clean Water: Kelley Regional
Stormwater Capture Project 7 Staff continued to progress with the scoping, community outreach, and design costs.

Project is currently in the design phase.

3.3 Public Art – Storm Sewer N/A 200,000$ 110,062$ 356,929$ Funding to cover the public art requirement for this bond $ - $ 527,000 $ (527,000) See Note for item 2.3

3.4 Admin – Storm Sewer N/A 132,000$ 124,700$ 507,488$ Administration costs

3.5 Admin Reserve – Storm Sewer N/A 250,000$ - - Administration costs Total Storm Sewer $ 15,722,000 $ 15,388,655 $ 26,450,428 $ 60,000,000 $ 54,100,000 $ 5,900,000 Transferred to Public Safety Program to help shortfall

4. Municipal Improvements

4.1 City Facilities LED Lighting
CW 1,249,000$ 1,065,973$ 9,817,231$
Expenditures associated with staff time,
materials and contractors to complete the
conversion of various fire station exterior lights
to LEDs.
$ 7,000,000 $ 11,201,000 $ (4,201,000) Shortfall covered by Streetlight LED item 1.3 budget adjustment

4.2 Critical Infrastructure
N/A - - - Funding was shifted to the Public Safety
program $ 5,000,000 $ - $ 5,000,000 Funding was reallocated to the Public Safety Program

4.3 Admin – Muni Improvements N/A - - 80,379$ Administration costs Admin Reserve – Muni
Improvements N/A - - - Administration costs

4.4 Environment Protection
2 - - 46,791,543$
Planned expenses due to the purchase of the
Coyote Valley Property and for the relocation of
the tenants. Project completed.
$ 50,000,000 $ 46,791,543 $ 3,208,457 Project completed. Savings was reallocated to the Public Safety Program.

Total Municipal Improvements $ 1,249,000 $ 1,065,973 $ 56,689,153 $ 62,000,000 $ 58,072,495 $ 3,927,505

5. Parks & Community Facilities

5.1 Community Centers/Emergency
Shelters - Priority Project 1 CW Expenditures account for staff time, construction costs and change orders. Project completed

5.1 Community Centers/Emergency
Shelters - Priority Project 2 (Camden
Community Center) 9
Construction began Oct 2024 and expected to
be completed Dec 2025. Expenditures account
for staff time, design consultant services,
construction costs and change orders.

5.1 Community Centers/Emergency
Shelters - Priority Project 3 CW Expenditures account for staff time, construction costs and change orders. Project completed

5.1 Community Centers/Emergency
Shelters - Priority Project 1 & 3
Electrical Upgrades CW
Staff is in the design phase for electrical
projects at Priority 1 & 3 sites. Expenditures
account for staff time and design consultant
services.

Separate electrical project to ensure readiness for temporary generators at Priority 1 & 3 sites that is currently in the design phase.

5.2 Public Art – Parks N/A 89,000$ - 36,802$ Funding to cover the public art requirement for this bond $ - $ 126,000 $ (126,000) See Note for item 2.3

5.3 Admin – Parks N/A 29,000$ 22,329$ 110,403$ Administration costs Admin Reserve Parks N/A 73,000$ - - Administration costs Total Parks & Community Facilities $ 6,148,000 $ 7,561,242 $ 10,938,287 $ 12,950,000 $ 12,947,000 $ 3,000 Bond Issuance Fee $ 7,050,000 $ 7,050,000 Transferred to Public Safety Program to help shortfall See note for item 1.4 & 1.5
See note for item 1.4 & 1.5 $ -
$ 25,000,000 $ 24,422,000 $ 578,000
$ 35,000,000
10,791,082$ $ 12,950,000 $ 12,631,000 $ 319,000
See note for item 1.4 & 1.5 $ - $ 190,000 $ (190,000) $ 28,264,000 $ 6,736,000 $ 887,000 $ (887,000)
$ - $ 79,952 $ (79,952)
11,932,854$
3,408,000$ 6,548,100$ 13,653,157$
5,957,000$ 7,538,913$
11,732,000$ 8,605,793$
Final Version
Projects 0 Project Location by Council
Districts1
2024-2025
Planned Use of
Funds2
2024-2025
Audited Use of
Funds3
Total Audited Use of Funds as of
June 30, 20254 Results of Expenditures5 Initial Total Project Estimates6
Updated Total Project
Estimates as of November
20257
Potential Delta (expected
overrun/underrun) 8 Notes
Measure T Public Safety and Infrastructure Bond Fund Planned and Audited Use of Funds FY2024-FY2025 Total Planned Expenditures
$ 130,074,084 $ 650,000,000 $ 675,762,949 $ (8,287,693) The additional funding added to the overall program came from the interest revenue earned on the bond ($19.6M),
partial reimbursement for FS 20 ($2.3M) and the additional funding obtained from the sale of the FS 8 property to VTA ($2.8M). This funding was added to the Public Safety
Program to help cover the remaining shortfall.

Total Audited Use of Funds $ 107,154,634 $ 455,312,727 Ending Fund Balance
Sources
0 Project name / description
1 Within the project dashboard located in the Construction Projects and Record Search on the City's website 2 Located in the Adopted Capital Budget under the Measure T 5-year Source and Use 3 Auditor's Report ending June 30, 2025
4 Total expenditures from 2019-2025 from the Auditor's Report (total project expenses through 06/30/25) 5 Information on expenditures for the FY 24/25 (referencing how 24-25 Audited Use of Funds3 was spent) 6 Initial budget identified for the project at inception of program 7 Revised budgets and estimates to complete the project as of November 15, 2025 (includes prior expenditures) 8 Expected Overrun/Savings (difference between Initial Project Estimates6-Updated Total Estimates7) Beneficial Use: project in use, but closeout items remain resulting in additional expenditures Project Completed: project completed and no additional expenses TO: HONORABLE MAYOR

AND CITY COUNCIL
FROM: Matt Loesch
SUBJECT: See Below DATE: September 8, 2025
Approved Date:
9/16/2025

COUNCIL DI
STRICT: Citywide
SUBJECT: Status Report on the November 2018 Ballot Measure T – The Disaster Preparedness, Public Safety, and Infrastructure General Obligation Bond

RECOMMENDATION
Accept
the bi-annual status report on the work plan and implementation updates for projects included in the approved 2018 Measure T – The Disaster Preparedness, Public Safety, and Infrastructure General Obligation Bond.

SUMMARY AND OUTCOME
The approval of
the recommendation provides the City Council with updated information on the status of projects and programs related to the voter-approved 2018 Measure T – The Disaster Preparedness, Public Safety, and Infrastructure Bond. The memorandum provides status updates on all Measure T projects as they progress through the feasibility, design, and construction phases.

BACKGROUND
Measure T,
approved by voters in November 2018, provides for the issuance of $650 million in General Obligation bonds to fund a variety of important infrastructure projects throughout the City. Since the voters approved the bond measure, the City Council has COUNCIL AGENDA: 9/30/25
FILE: 25-1031
ITEM: 2.12
Attachment 3

HONORABLE MAYOR AND CITY COUNCIL
September 8, 2025
Subject: Status Report on the 2018 Ballot Measure T – The Disaster Preparedness, Public Safety, and Infrastructure General Obligation Bond

Page 2 ends

received annual updates and provided direction on the implementation of the Measure T program. Past updates are linked below for reference.12345678910111213

Most recently, on March 25, 2025, Item 2.14,
14 the City Council approved a bi-annual
report and supplemental memorandum titled Status Report on the November 2018 Ballot Measure T – The Disaster Preparedness, Public Safety, and Infrastructure General Obligation Bond. The report included the staff update on project work plans and implementation schedules, as well as outlined the projected funding needs for the public safety program.

ANALYSIS

Since the March 25, 2025, report, several significant activities have taken place. The updated schedules for all Measure T projects are described in Attachment A – Project Implementation Schedules. Attachment A is the master schedule list, and it will be shared with the Measure T Community Oversight Committee at its November 2025 meeting. The following list provides current project statuses in each of the major program categories.

1 http://files.constantcontact.com/7a210436601/dbd7436a-7b55-4264-b1e4-e25cc8a0b8a3.pdf 2 https://sanjose.legistar.com/LegislationDetail.aspx?ID=3847489&GUID=DCF04188-1A48-4F02-B12D- 24873EAD82E5&Options=&Search=
3 https://sanjose.legistar.com/View.ashx?M=F&ID=7319023&GUID=A6FDC251-C03F-4AC5-BF59- 75566033BBA0
4 https://sanjose.legistar.com/View.ashx?M=F&ID=7319022&GUID=0BE80643-A261-4A59-B22B- D50B649E3175
5 https://sanjose.legistar.com/View.ashx?M=F&ID=7930362&GUID=B1D89BAF-37DB-4CEB-A297- 96E19FF240EE
6 https://sanjose.legistar.com/View.ashx?M=F&ID=8453769&GUID=CC323CC8-820D-408E-84B9- 8C2C79491C75
7 https://sanjose.legistar.com/View.ashx?M=F&ID=8943050&GUID=A6F24606-B5B8-4514-A76F- 3ACD0B667913
8 https://sanjose.legistar.com/LegislationDetail.aspx?ID=4970453&GUID=102628A4-C99B-407D-B9D5- E79441D5784A&Options=&Search=
9 https://sanjose.legistar.com/LegislationDetail.aspx?ID=5697307&GUID=04EADE87-A463-4DBB-8A3E- EBB6D5C96AC0&Options=&Search=
10 https://sanjose.legistar.com/View.ashx?M=F&ID=11738576&GUID=66879752-3E11-49A0-8333- 56C874716A49
11 https://sanjose.legistar.com/View.ashx?M=F&ID=12354332&GUID=E97EAD34-02C1-4B15-8D4A- 3FAEF3C0D996
12 https://www.sanjoseca.gov/home/showpublisheddocument/112066/638520560075330000

13 https://sanjoseca.primegov.com/Portal/viewer?id=0&type=7&uid=b7b6ae11-d08a-4f0d-bbab- 487efcddbaf8

14 https://sanjose.legistar.com/View.ashx?M=F&ID=13929495&GUID=1A149721-74F5-41B7-A3EE-2CE561137B84

HONORABLE MAYOR AND CITY COUNCIL
September 8, 2025
Subject: Status Report on the 2018 Ballot Measure T – The Disaster Preparedness, Public Safety, and Infrastructure General Obligation Bond

Page 3 ends

1) Measure T Community Oversight Committee – The committee met on June 26, 2025, to review the 2025-2026 Proposed Biennial Capital Budget and 2026- 2030 Capital Improvement Program, approve the creation of an ad hoc committee, approve the committee by-laws, and vote on a new chair and vice chair. The ad hoc committee is comprised of six members and one alternate that will review and make recommendations to the larger Measure T Community Oversight Committee based on the annual independent auditor’s report and annual expenditures of the Measure T Bond funds.

The next meeting will be held on November 6, 2025, to review the annual independent auditor’s report on the expenditures from fiscal year 2024-2025.

Currently, there are 13 committee seats filled and two vacant seats from District 8 and the Citywide – Public Safety.

2) Public Safety Projects – The Measure T program allocates $220.5 million to complete public safety projects. Site selection, land acquisition, and scoping for the majority of projects have been completed and many of the projects are either in design or construction. Since many projects have now moved into the construction phase, staff has a clear understanding of the spending and funding needs to complete all projects identified at the time the bond measure was passed. The updated schedules for all pending public safety projects are shown in Attachment B – Public Safety Project Estimated Schedules. Additionally, Attachment C – Completed Public Safety Projects reflects all public safety projects that have been completed. A summary of current activities in the public safety category is below.

(a) Relocated Fire Station 8 – The construction project was awarded on August 15, 2023, to the lowest responsive bidder, DL Falk Construction, Inc., in the amount of $10,526,000. The project began construction in October 2023 with final completion originally anticipated in spring 2025. Due to unforeseen conditions such as the switchgear arriving beyond the anticipated arrival date and the changes to the relocation of the Pacific Gas and Electric Company (PG&E) vault, the expected completion is now October 2025.

(b) New Fire Station 32 – The project was awarded to the lowest responsive bidder, Gonsalves & Stronck Construction Company, on June 18, 2024, in the amount of $12,867,777 which included the award of bid alternates for expansion of the facility to be a dual company fire station, as well as the installation of a rooftop solar photovoltaic system. The project required an additional $3 million from Fund 498 – Measure T Public Safety Program Reserve to cover the costs for the dual company area of the project. The project began construction in August 2024 with final completion anticipated for spring 2026. Although this facility is being constructed to house both an

HONORABLE MAYOR AND CITY COUNCIL
September 8, 2025
Subject: Status Report on the 2018 Ballot Measure T – The Disaster Preparedness, Public Safety, and Infrastructure General Obligation Bond

Page 4 ends

engine and a truck company, the 2025-2026 Adopted Operating Budget deferred funding for the truck company to contribute towards addressing the General Fund shortfall. Staffing augmentations for the truck company will be evaluated annually with consideration towards the City’s General Fund position and other critical City Council priorities.

(c) Relocated Fire Station 23 (Land Acquisition Only) – This project includes a budget of $4.1 million, dedicated solely for the purchase of a property for the future relocation of the fire station. A suitable site for Fire Station 23 has been identified and staff have engaged the landowner in negotiations. To support property acquisition, the project first needs to complete an environmental review under the California Environmental Quality Act. The California Environmental Quality Act is currently under review. Staff anticipates returning to City Council with recommendations for the potential acquisition of the property once the project’s California Environmental Quality Act analysis is complete, which is anticipated at the end of this calendar year 2025.

The project is estimated to need an additional $18 million to complete both the design and construction. To proceed with the design of Fire Station 23, staff will need to prioritize the remaining public safety projects and identify program savings or other funding opportunities, such as grants or funding in the General Fund and Fire Construction and Conveyance Tax Fund. The relocation of Fire Station 23 will improve coverage within the city limits and accounts for planned developments in North San José. Fire Station 23 is the fourth priority fire station approved by City Council in the June 18, 2019 memorandum
Measure T – New Fire Station Placement Prioritization (Item

8.1), and is the last fire station in need of land acquisition.

(d) New Fire Station 36 – The City has acquired the land located at the intersection of Capitol Expressway and Tuers Road for the construction of Fire Station 36. The project is currently fully funded. Staff have started the design process and anticipates completing the design in fall of 2026 with construction completion anticipated in fall of 2028.

(e) Police Training and Academy Facility – The City acquired 300 Enzo as the site for the relocated Police Training and Academy in March 2021. The project was awarded on December 5, 2023, to the lowest responsive bidder, Midstate Construction, in the amount of $28,748,000. The project construction start date was March 11, 2024; final completion is anticipated for spring of 2026. Originally, the project was expected to be completed late 2025; however, the project schedule has been impacted due to unforeseen conditions within the existing building discovered during the course of construction.

HONORABLE MAYOR AND CITY COUNCIL
September 8, 2025
Subject: Status Report on the 2018 Ballot Measure T – The Disaster Preparedness, Public Safety, and Infrastructure General Obligation Bond

Page 5 ends

(f) Emergency Operations Center – The project, in conjunction with the Fire Department Training Center, was awarded on January 12, 2021 to Zovich Construction, Inc. in the amount of $54,105,000. The project received a temporary Certificate of Occupancy in April 2024 and was extended through November 2024, with minor punch list items remaining to be completed prior to final project acceptance. Building 1 includes the Fire Training Center, partial Fire Information Technology team, and the City Manager’s Office of Emergency Management. Building 2 includes the Emergency Operations Center, which has ongoing heating, ventilation and air conditioning system challenges in the computer network room. Staff have been actively monitoring and are seeking further actions with the general contractor to remedy the situation, with an estimated completion date of January 2026.

(g) 9-1-1 Call Center Renovation – This project improves working conditions and creates a more efficient space for additional dispatch personnel to handle increasing call volumes. This project will also allow the City of San José to keep pace with evolving methods and technologies the public utilizes when calling for a 9-1-1 service. The 9-1-1 Call Center renovation will expand into the space previously used for the Emergency Operations Center in the Police Administration Building. The 9-1-1 Call Center Renovation project was advertised in June; however, no responsive bids were received. Alternative approaches are being considered, and the project may be re-advertised in the near future. Pending a successful re-bid, construction is projected to commence late December 2025 and conclude late 2026.

(h) Police Air Support Unit Hangar – The location of this project is 1114 Coleman Avenue, on the corner of Coleman Avenue and Airport Boulevard, next to the recently completed Aircraft Rescue and Fire Fighting Facility (Fire Station 20). The project was awarded on November 7, 2023, to the lowest responsive bidder, DL Falk Construction, Inc., in the amount of $12,660,000, and included the bid alternate for the construction of the second aircraft hangar bay for a future fixed-wing aircraft. The project began construction in January 2024, with final completion anticipated in October 2025. Due to constructability issues with some of the critical items such as fire foam suppression system and switchgear installation, the project completion schedule has been impacted.

On June 17, 2025, City Council approved staff’s recommendation to increase the construction contingency from 10% to 14% for this project. An additional contingency amount was needed to install the required fire foam suppression system within the hangar and construct the associated building modifications.

Overall, the project’s budget increased by $1.1 million, with the funding coming from the Program Reserve for Public Safety.

HONORABLE MAYOR AND CITY COUNCIL
September 8, 2025
Subject: Status Report on the 2018 Ballot Measure T – The Disaster Preparedness, Public Safety, and Infrastructure General Obligation Bond

Page 6 ends

(i) Police Administration Building Upgrades (originally reported as Police Headquarters Infrastructure Upgrades) – Staff completed preliminary scoping exercises, working closely with the Police Department to identify potential projects to be completed at the Police Administration Building. The highest priority projects identified include improvements to the plumbing throughout the facility, heating, ventilation, and air conditioning system upgrades in the existing range, and an upgrade of the existing gun range target system. As part of the March 14, 2023, update, City Council approved increasing the project budget to $6.3 million to address these high-priority projects.

The target system replacement for the existing gun range at the Police Administration Building has been completed. Staff is currently working on the preliminary design for the plumbing system with the intention to complete design in May 2026 and start construction by summer of 2026. Staff will be analyzing the existing heating, ventilation, and air conditioning system for appropriate improvements and determining the project need against the available budget for this project and other Public Safety projects.

(j) Program Reserve for Public Safety – Initially, $36.42 million of the Measure T Public Safety and Infrastructure Bond funds were set aside in the reserve for various projects, including: Police Administration Building Upgrades, 9-1-1 Call Center Upgrades, rehabilitation of various fire stations, as well as a contingency for public safety projects. Subsequently, funding has been allocated to various public safety projects once the scopes were defined or to offset higher costs of construction awards. As of July 1, 2025 the reserve balance currently stands at $18.6 million. The goal of the reserve is to have funds available to be allocated for the design and construction of Fire Station 23; however, these funds could potentially be used for other Measure T priority projects pending bid results.

(k) Arbitrage Rebate Reserve – This new reserve was created in FY 2025-2026 to set aside funding for payments to the Internal Revenue Service. Investment earnings in excess of the arbitrage yield on tax-exempt bond proceeds are to be rebated to the Internal Revenue Service at the end of every fifth bond year. For the bond year ending September 1, 2024, the cumulative interest earnings for the tax-exempt 2021A Bonds are estimated to exceed the arbitrage yield by $4.4 million, which will be subject to rebate to the Internal Revenue Service in 2026. The excess interest earnings are a result of rising interest rates and slower spending of the bond proceeds than anticipated. In the event that payback is not required or less than estimated, the remaining funding in the Reserve will be used for Measure T projects.

HONORABLE MAYOR AND CITY COUNCIL
September 8, 2025
Subject: Status Report on the 2018 Ballot Measure T – The Disaster Preparedness, Public Safety, and Infrastructure General Obligation Bond

Page 7 ends

3) Pavement and Bridge Maintenance

(a) Street Resurfacing Projects – The City’s 2,519-mile pavement network includes 967 miles of major streets (arterials and collectors) and 1,552 miles of local and neighborhood streets. The Measure T program designated $300 million for the repair or rehabilitation of local and neighborhood streets in the worst condition. In 2019, this meant resurfacing 420 miles of streets using Measure T funds. However, as pavement conditions deteriorated over time, more streets fell into the rehabilitation category for pavement treatment. To deliver the pavement program efficiently, staff divided stretches of roadways into zones and prioritized these zones based on overall conditions and ability to leverage other funding sources to supplement and deliver projects efficiently and effectively. This has proven to have significant benefits by reducing mobilization costs, shortening the project delivery timeline, and stretching the Measure T funds as streets deteriorate over time and fall under the rehabilitation category-enabling the Department of Transportation (DOT) to deliver many more miles of resurfaced roads than originally expected

DOT has resurfaced about 516 miles of roadway since 2020 utilizing Measure T funds. In the March 2025 report to City Council, an incorrect total miles resurfaced was reported, which included roadway resurfaced through other funding sources. This error has been corrected and is now appropriately reflected in this report.

For the 2025 construction season, DOT plans to complete maintenance using a resurfacing treatment on 105 miles of San José local and neighborhood streets, with about $50 million in Measure T funding. A map showing the locations can be found in Attachment D – City of San José 2020-2025 Local Streets Measure T Streets.

In the 2026 construction season, DOT plans to resurface 55 miles of local and neighborhood streets using Measure T funding. In 2026, DOT will strategically reduce the paved miles to prioritize efficiency and sustainability, ensuring that investments keep pace with rising construction and project preparation costs.

DOT continues to provide updated memoranda every spring to share tentative construction plans with the public.

(b) Bridge Repair and Rehabilitation Projects – The Measure T program allocated $20 million for City-owned bridges that are designated as structurally deficient and could be vulnerable in an earthquake or other disaster. To address as many bridge projects as possible, staff implemented a delivery strategy aimed at leveraging multiple funding opportunities, such as Measure T and the Highway Bridge Program federal-aid funding, which consists of Bridge Investment Credits.

HONORABLE MAYOR AND CITY COUNCIL
September 8, 2025
Subject: Status Report on the 2018 Ballot Measure T – The Disaster Preparedness, Public Safety, and Infrastructure General Obligation Bond

Page 8 ends

Caltrans has approved $3 million in Bridge Investment Credits for the City.

The City can use the credits as a matching fund for any future federal-aid bridge projects. Staff anticipates additional approval of approximately $1.7 million in 2025. Between 2018 and 2024, staff completed the rehabilitation work for 59 bridges and applied for Bridge Investment Credits upon completion of the projects. Currently, eight bridges under the Bridge Investment Credit program are in design and expected to begin construction in spring 2026.

Staff will be ready to apply for grant funds as soon as funding becomes available, as the bridge investment credits do not expire. Staff will continue to work with counterparts at Caltrans to maximize grant opportunities and advocate for the increased availability of program funds. New federal requirements on grants have recently been imposed, which may affect the acceptance and administration of Highway Bridge Program funds. Staff will coordinate with the City Attorney’s Office for further evaluation of future grant opportunities.

With the continuous uncertainty of the Highway Bridge Program, staff is shifting gears to focus on other bridge projects that pose a vulnerability to earthquakes. Staff has identified a specific criterion in spending the remaining Measure T funds. This includes prioritizing bridges that are vulnerable to earthquakes, projects that have quick turnaround to complete to ensure we meet the spend down requirement, and projects that are vehicular bridges.

Once those types of projects have been exhausted, staff will evaluate the next level of criteria in which bridges are in fair condition and/or non-vehicular bridges.

4) Light Emitting Diode (LED) Outdoor Lighting Projects

(a) City Facilities LED Lighting Projects –Table 1 below lists the city-owned facilities in conversion priority order, provides details about the total number of fixtures, as well as the number of fixtures that have been converted to date for each category utilizing Measure T funding. As staff evaluated the outdoor lighting inventory, the number of fixtures needing to be converted for City- owned facilities grew by over 1,000. In addition, the cost for the fixtures is higher than originally anticipated. Two alternative funding sources have been identified to ensure the remaining outdoor facility lights could proceed with being converted to LED. Staff was able to secure $500,000 from the Community Development Block Grant program through the Housing Department to address the exterior and interior lighting at the following 10 fire stations; 3, 5, 7, 16, 18, 20, 26, 30, 34, and 35. An additional $2.4 million was shifted from the LED Streetlights Conversion project to complete the conversion of all City facilities. This work is estimated to be completed by

HONORABLE MAYOR AND CITY COUNCIL
September 8, 2025
Subject: Status Report on the 2018 Ballot Measure T – The Disaster Preparedness, Public Safety, and Infrastructure General Obligation Bond

Page 9 ends

June 2026. Staff will continue to coordinate with project managers to ensure all new future developments are scoped to include the new LED lighting and controllers in the base design.

Table 1
City Facility Exterior Lighting Conversion Status as of August 2025

Facilities Converted Remaining Total
Parks and Trails 3,488 38 3,526
Community Centers 1,229 54 1,283
Libraries 1,328 0 1,328
Fire Stations 639 52* 691
Cultural Facilities 212 509 721
San José Police Department 534 60 594
Corporation Yards 419 0 419
Lighted Sports Facilities 165 115 280
Number of Fixtures 8,014 828 8,842
*Lighting conversion funded by the Community Development Block Grant. All other conversions will be funded by Measure T.

(b) Lighting Controls for City Facilities – To date, there have been 5,566 nodes installed. Staff is working to install the remaining 3,276 nodes, for a total of 8,842 nodes citywide, of which Measure T has funded a large portion of these controllers. These nodes are currently being installed at the existing retrofitted sites listed in Table 1 as well as new City facility projects as they come online. There are roughly 1,100 exterior fixtures at new City facilities (i.e., the Emergency Operation Center, Fire Training Center, Municipal Water office buildings, new parks, and fire stations), and staff anticipates purchasing the remaining controllers as sites are completed and as funding is included in project budgets.

(c) LED Streetlight Conversion Projects – The majority of the streetlights have been successfully converted either by City crews or PG&E’s “Turnkey Conversion” project. There are roughly 3,000 lights remaining to be converted, which are unique ornamental, or post-top lights, primarily in the downtown neighborhoods and business districts.

With the completion of the PG&E streetlight inventory audit in July 2021, there is also a billing records review underway of over 27,000 streetlight records.

The billing records are reviewed as a joint effort with PG&E and City staff.

These efforts are anticipated to be confirmed by PG&E in fall of 2025, and it is likely to result in a decrease in the City’s streetlight inventory.

HONORABLE MAYOR AND CITY COUNCIL
September 8, 2025
Subject: Status Report on the 2018 Ballot Measure T – The Disaster Preparedness, Public Safety, and Infrastructure General Obligation Bond

Page 10 ends

A total of $2.4 million of the funding from the LED Streetlight Conversion project was reallocated as part of the 2024-2025 Adopted Budget to fund the completion of the LED conversion of the City-owned facility lighting. The total funding remaining within the LED Streetlight Conversion project is $5.3 million and will be utilized to convert the ornamental lights as the bulbs burn out. In total approximately 1,000 ornamental lights have been previously converted and since the last Measure T status update memo, the City crews converting the LED lights have been redirected to address copper wire theft and vandalism that became a high priority issue in 2024 with over 2,000 streetlights impacted. In addition, staff will continue to perform investigations to determine how many streetlight poles require ground wire within the system. Once those locations are determined, the work will fall into the deferred maintenance infrastructure backlog and funding will need to be identified.

5) Clean Water and Green Stormwater Infrastructure Projects – The Measure T program has dedicated $25 million for this category of projects. Each of the projects is being developed in conjunction with the Green Stormwater Infrastructure Plan that was approved by the City Council on September 10, 2019. A summary of current activities is below.

(a) River Oaks Regional Stormwater Capture Project – This project was awarded on June 13, 2023, to Andrew M. Jordan Inc., dba A & B Construction, in the amount of $10,999,618. The project has been completed and the ribbon cutting ceremony occurred in April 2025.

(b) Kelley Regional Stormwater Capture Project – This project will construct a treatment basin on 5.64 acres located in Kelley Park along Coyote Creek and Roberts Avenue, collecting and treating stormwater runoff from approximately 80 acres of the surrounding neighborhood. The project offers a high degree of water quality benefit addressing pollutant reduction, and trash reduction, while also expanding usable green space for the public. Staff began design in May 2024 and anticipates completion in fall 2025.

(c) Venetian Terrace Regional Stormwater Capture Project – Staff developed a feasibility study that identified five new regional stormwater capture projects. From these five sites, the Venetian Terrace Regional Stormwater Capture Project was prioritized to move forward. This project is located on an approximately 0.4-acre site on Rinconada Drive near Almaden Expressway and Curtner Avenue in Council District 9. The project involves installing a stormwater bioretention to treat stormwater runoff from the surrounding area.

The project is currently planned to feature park amenities for residential use.

This project is currently in design and is anticipated to start construction summer of 2026.

HONORABLE MAYOR AND CITY COUNCIL
September 8, 2025
Subject: Status Report on the 2018 Ballot Measure T – The Disaster Preparedness, Public Safety, and Infrastructure General Obligation Bond

Page 11 ends

Staff anticipates prioritizing one or two additional projects to proceed forward with using Measure T funding. Staff utilized approximately $12 million of Measure T funds for the River Oaks Regional Stormwater Capture Project and anticipates utilizing approximately $5 million for the Kelley Regional Stormwater Capture Project location and approximately $3 million for Venetian Terrace Regional Stormwater Capture Project. The program is expected to have approximately $2.5 million remaining, which will be reserved for the projects outlined above.

Staff will report back to City Council at a later date to propose a smaller regional project if any additional funding remains.

6) Storm Drain Improvement Projects for the Charcot Area – The Storm Drain Improvement Projects for the Charcot area will provide flood protection in the area east of Zanker Road between East Trimble Road and East Brokaw Road.

Originally envisioned as a new storm pump station at Charcot Avenue and Hartog Drive, this project was re-scoped to construct a new and less costly storm drain system that connects to the existing Rincon Pump Station II, which outfalls to the Guadalupe River. This revised project approach provides similar levels of flood protection while saving the City significant costs for building, operating, and maintaining a new pump station. The project will be constructed under two packages, due to its size and complexity. Package one will install approximately 4,200 linear feet of a combination of 54-inch fiberglass-reinforced concrete pipe and 72-inch to 96-inch diameter storm pipe along Charcot Avenue and Bering Drive. Package two will be designed to install approximately 3,100 feet of 60-inch to 96-inch diameter storm pipe along East Brokaw Road and Rodgers Avenue.

Package one alleviates approximately 60% of flooding in the area and package two will increase that by 20% by redirecting flow to the Rincon II Pump Station.

Package one was awarded to JMB Construction, Inc on June 18, 2024, in the amount of $18,180,425. This project began construction January 2025 and is anticipated to be complete the end of calendar year 2025. The delayed start of construction was due to material lead times. This project will be approximately 75% complete for the 2025 wet season. City staff will monitor the need for a temporary pump station at Charcot Ave and Hartog Drive to alleviate any potential flooding until the project is complete.

Package one will use all the available Measure T budget for this project. There is not sufficient funding available for the construction of Package two. Staff will complete package two design in December 2025 and construction will be on hold until funding is identified.

7) Environmental and Flood Protection Projects – On November 6, 2019, City Council approved the purchase of approximately 672 acres of real property in Coyote Valley.

HONORABLE MAYOR AND CITY COUNCIL
September 8, 2025
Subject: Status Report on the 2018 Ballot Measure T – The Disaster Preparedness, Public Safety, and Infrastructure General Obligation Bond

Page 12 ends

8) Community Center/Emergency Shelters – The City Emergency Operations Plan includes the coordination of mass care and sheltering facilities. These facilities will be retrofitted to provide basic human needs, including food, water, shelter, and security. While the operation of an emergency shelter is considered an emergency protective measure under the Stafford Act, facilities identified for such a purpose are required to meet basic facility standards. These standards include per capita allowances for space, feeding, and personal hygiene.

The Priority 1 project, which includes the Roosevelt, Mayfair, Bascom and Seven Trees Community Centers, and the Priority 3 project, which includes the Berryessa, Almaden, and Evergreen Community Centers, are completed and the projects were accepted in March 2025. These facilities now meet the basic standards of an emergency shelter.

The Priority 2 project, which includes Camden Community Center, was awarded on June 18, 2024, to the lowest responsive bidder, City Building Inc., in the amount of $4,599,178. The project began construction in October 2024 and reached substantial completion and Beneficial Use at the end of August 2025.

Staff have allocated the remaining funding from this program to cover the additional electrical work at the Priority 1 and Priority 3 community center facilities. The scope of work consists of rewiring the fire alarm, telecom, and security systems to the emergency panels to ensure sites utilize a single temporary generator rather than multiple units. This project is currently in design and is anticipated to start construction summer of 2026 with final completion spring of 2027.

9) Public Art – The public art budget for each capital program is shown in Table 2 and included in the 2025-2027 Adopted Biennial Capital Budget and the 2026- 2030 Adopted Capital Improvement Program. The allocation for public art may be refined as the scopes for the projects are completed. The first public art project completed was an exterior ceramic mural and interior window treatment for Fire Station 37 by artist Sam Tubiolo. A major, flatscape sculptural artwork on the exterior of the Fire Department Training Center/Emergency Operations Center has also been completed by Bay Area artist Johanna Poethig, as well as the public art project for the interior of the building which is the permanent display of 31 original artworks created by local artists. Bay Area artist Gordon Huether’s site specific artwork for the Police Department’s Memorial to San Jose’s fallen Officers was completed in November of 2023. A memorial mural at the Mayfair Community Center has been completed by local artist Jessica Sabogal.

Additional public art projects are in the planning phase for Fire Stations 8, 32, and 36 as well as mural projects at parks and community center facilities.

HONORABLE MAYOR AND CITY COUNCIL
September 8, 2025
Subject: Status Report on the 2018 Ballot Measure T – The Disaster Preparedness, Public Safety, and Infrastructure General Obligation Bond

Page 13 ends

Table 2
Public Art Budget Allocation

Program Total
Public Safety $ 1,897,000
Storm Sewer $ 527,000
Parks and Community Facilities $ 126,000
Total $ 2,550,000

EVALUATION AND FOLLOW-UP

Staff will provide City Council with the next bi-annual program update in spring of 2026.

COST SUMMARY/IMPLICATIONS

As the Measure T program evolves, project budgets are recommended for modification, as appropriate, as they proceed through site selection, design, and construction.

Attachment E – 2026-2030 Adopted Capital Improvement Program (CIP) – The 2026- 2030 Adopted Capital Improvement Program provides funding of $190.0 million, of which $142.1 million is allocated in FY 2025-2026 and $42.1 million in FY 2026-2027.

The full amount of $650 million in Measure T bonds have been issued ($239.9 million in 2019, $200.5 million in 2021 and $209.6 million in 2025).

Attachment F – Measure T Expenditures shows the actual year-to-date Measure T expenditures through June 2025. As previously discussed, the Program Reserve for Public Safety may not be sufficient to complete the remaining public safety projects.

Staff will need to prioritize the remaining public safety projects and identify program savings or identify other funding opportunities such as grants.

As noted in the 2026-2030 Five-Year Forecast and Revenue Projections, several of the Measure T projects will incur significant operating and maintenance costs in the future, including the new fire stations, the Police Training Center and corresponding activation of the South San José Police Substation, and the 9-1-1 Call Center Renovation. This would also necessitate adding staff in the Fire, Police, and Public Works Departments to support the additional facilities and expansions. Preliminary estimates in the forecast for the operating and maintenance costs for the Measure T projects coming online during the next five years and the activation of the Substation range from approximately $13 million in 2026-2027 to $28 million in 2029-2030 when the majority of the Measure T projects will be completed. Note that in the 2025-2026 Adopted Operating Budget, the full activation of Fire Station 32 and the subsequent activation of the South San José Substation previously anticipated in 2026-2027 after the Police Training Center came

HONORABLE MAYOR AND CITY COUNCIL
September 8, 2025
Subject: Status Report on the 2018 Ballot Measure T – The Disaster Preparedness, Public Safety, and Infrastructure General Obligation Bond

Page 14 ends

online were deferred to resolve the General Fund shortfall this fiscal year and to partially resolve the shortfall in 2026-2027. The full activation of these two facilities will be re- evaluated in future budget cycles.

Projects will be brought forward for City Council certification prior to awarding a contract for construction or recommended for certification as part of the Proposed Capital Improvement Program process. In March 2008, the City Council approved Budget Principle #8 that stated capital improvement projects “shall not proceed for projects with annual operating and maintenance costs exceeding $100,000 in the General Fund without City Council certification that funding will be made available in the applicable year of the cost impact.” Annual costs for other Measure T projects, such as the upgrades at the Police Headquarters, will be brought forward as part of future budget processes once their scopes have been refined.

Aside from the operating and maintenance costs, future funding is required to outfit the new facilities with the necessary furnishings, fixtures, and equipment – including new fire apparatus – that are not eligible to be paid with Measure T general obligation bonds.

Based on very preliminary information, the furnishings, fixtures, and equipment that remain unfunded at this time are close to $9.0 million at Fire Stations 32 and 36 and the Police Training Facility and Academy, and funding would need to be identified within the next five years. It is anticipated that refinements of these estimates, as well as determining funding for furnishings, fixtures, and equipment, will be completed prior to bringing them forward for consideration by the City Council in any given year.

COORDINATION

This memorandum, work plan, and implementation schedules have been coordinated with the City Attorney’s Office, the City Manager’s Budget Office, the City Manager’s Office of Economic Development and Cultural Affairs, the City Manager’s Office of Emergency Management, the Finance Department, the Fire Department, the Parks, Recreation, and Neighborhood Services Department, the Police Department, and the Transportation Department.

PUBLIC OUTREACH

This memorandum will be posted on the City's Council Agenda website for the September 30, 2025 City Council meeting.

HONORABLE MAYOR AND CITY COUNCIL
September 8, 2025
Subject: Status Report on the 2018 Ballot Measure T – The Disaster Preparedness, Public Safety, and Infrastructure General Obligation Bond

Page 15 ends

COMMISSION RECOMMENDATION AND INPUT

The Measure T Community Oversight Committee will hold its next meeting on November 6, 2025 to review the 2024-2025 external audit report fundings.

CEQA

Not a Project, File No. PP17-009, Staff Reports, Assessments, Annual Reports, and Informational Memos that involve no approvals of any City action.

PUBLIC SUBSIDY REPORTING

This item does not include a public subsidy as defined in section 53083 or 53083.1 of the California Government Code or the City’s Open Government Resolution.

/s/
Matt Loesch
Director of Public Works

For questions, please contact Sal Kumar, Deputy Director of Public Works Department, at [email protected]
.

ATTACHMENTS:

Attachment A – Project Implementation Schedules
Attachment B – Public Safety Project Estimated Schedules Attachment C – Completed Public Safety Projects
Attachment D – City of San José 2020-2025 Local Streets Measure T Streets Attachment E – 2026-2030 Adopted Capital Improvement Program – Measure T Fund Attachment F – YTD Measure T Expenditures

Attachment A
Project Implementation Schedules
Bond Project List Category Proposed Projects Scope and Locations

911 Center - Upgraded/New
Emer. Operations Ctr. - Upgraded/New
Police Headquarters - Infrastructure needs

Priority 3 (Berryessa, Almaden, Evergreen)
ON HOLD: Project is on hold due to funding constraints
PROJECT SELECTION PROCESS AND IDENTIFICATION: Evaluation of Options SCOPING/CEQA/PROPERTY ACQUISITION: Consultant Process, Feasibility & Envir Studies DESIGN: Consultant Selection, Design and Bid/Award
CONSTRUCTION: Construction, Commissioning, Beneficial Use / Occupancy, Acceptance

COMPLETED

COMPLETED
Venetian Terrace Regional Stormwater Capture Project
Clean Water and Green
Stormwater Infrastructure
(GSI) Projects
20292026 2027 20282025

COMPLETED

NOT APPLICABLE

COMPLETED
388 Miles of Street Repair (approx. 58 mi./year)
Storm System Conveyance
& Flood Prevention Projects
Charcot Area Storm Drain Improvement Phase II
Priority 1 (Roosevelt, Mayfair, Bascom, Seven Trees)
Priority 2 (Camden)
Various bridge overpasses to be seismically retrofitted or repaired.

Fire Station No. 37 - New
Police Dept. Training Center - New/Relocated from
South Substation
Various Fire Stations - Rehabilitation
Police Dept. Air Support Unit Hangar - New at Airport
Fire Station No. 8 - Relocated
Fire Station No. 23 - Relocated
Fire Station No. 32 - New
Replacement of both standard and decorative streetlights to LEDs to reduce ongoing General Fund impacts.

Replacement of outdoor lights in city facilities to reduce ongoing General Fund impacts.

LED Lighting - City Facilities
LED Lighting - Streetlights
Upgrading community centers/emergency shelters and
parks facilities to support public safety.

Community
Center/Emergency Shelters

COMPLETED

COMPLETED
Fire Station No. 36 - New
Pavement Projects
Bridge Repair and Rehab
Projects
Flood Control, open space and environmental protection
of lands such as Coyote Valley
Public Safety Projects
River Oaks Regional Stormwater Capture Project
Kelley Regional Stormwater Capture Project
Environmental Protection
Projects
Charcot Area Storm Drain Improvement Phase I
1 Public Safety Project Estimated Schedules Attachment B Projects First Estimate Adv Bid Opening Award Const Beneficial Use Comments Fire Station 8 - 4/26/23 6/1/23 8/15/23 10/5/23 Oct-25 Awarded to DL Falk. Currently in Construction.

Police Air Support Unit Hangar - 7/12/23 9/7/23 11/7/23 1/16/24 Oct-25 Awarded to DL Falk. Currently in Construction.

Police Training and Academy Facility
- 8/30/23 10/19/23 12/5/23 2/27/24 May 26
Awarded to Midstate
Construction. Currently in
Construction
Fire Station 32 Re-Bid 4
- 3/20/24 4/25/24 6/18/24 Aug-24 May-26
Awarded to Gonsalves & Stronck
Construction Company. Currently
in Construction
9-1-1 Call Center Renovation - 6/18/25 7/31/25 9/23/25 11/10/25 Dec-26 Fire Station 36 Mar-25 Aug-26 Sep-26 Nov-26 Mar-27 Nov-28 Light grey dates are actual dates that occur in the past Dates italicized are the estimated dates
1 Attachment C
List of Completed Projects
Bond Project List Category Projects Scope and Locations Priority 3 (Berryessa, Almaden, Evergreen)

Community
Center/Emergency Shelters
Upgrading community centers/emergency shelters and
parks facilities to support public safety.

Priority 1 (Roosevelt, Mayfair, Bascom, Seven Trees)
Clean Water and Green
Stormwater Infrastructure
(GSI) Projects

COMPLETED

COMPLETED
River Oaks Regional Stormwater Capture Project COMPLETED

COMPLETED

COMPLETED
Status

COMPLETED
Environmental Protection
Projects
Flood Control, open space and environmental protection
of lands such as Coyote Valley
Emer. Operations Ctr. - Upgraded/New
Fire Station No. 37 - New
Fire Station No. 20 -
Public Safety Projects
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Harwood Rd
Umbarger Rd
Kirk Av
McKean Rd
Vistapark Dr
Race St
Allen Av
Saddle
Brook Dr
Lucretia Av
Sierra Rd
Skyway Dr
Snell Av
Gish Rd
Nieman Bl
Penitencia
Creek Rd
San Felipe Rd
Fleming Av
Ringwood Av
Foxworthy Av
Clayton Rd
Payne Av
Wayland Av
San Antonio St
Curtner Av
McKee Rd
Johnson Av
Gold St
Toyon Av
Ruby Av
Leyland Park Dr
Morrill Av
Yerba Buena Rd
Cottle Rd
Old Tully Rd
Murillo Av
Willow St
The Alameda
Park Victoria Dr
Lean Av
Minnesota Av
Calero Av
Chynoweth Av
Lawrence Ex
Mt Pleasant Rd
Trinidad Dr
Coyote Rd
Los Gatos-Almaden Rd
McAbee Rd
Doyle Rd
Redmond Av
Sanchez Dr
Blaney Av
Pedro St
Westmont Av
Pine Av
Via
Valiente
Cherry Av
Little
Orchard St
Fruitdale Av
2nd St
Delta Rd
McKay Dr
Coe Av
San Vicente Av
Tantau Av
Blossom Av
Humboldt St
Steinbeck Dr
O'Toole
Av
Edenvale Av
Grand Bl
Taylor St
Beswick Dr
Montague Ex
Clovercrest
Dr
Suncrest Av
7th St
17th St
Central Ex
13th St
Research
Pl
Almaden Rd
Zanker Rd
Mt Hamilton Rd
Mabury Rd
Rainbow Dr
Winfield Bl
1st St
Adrian Wy
Caribbean Dr
Coleman Rd
Old Bayshore Hy
Innovation Dr
Almaden Ex
Matrix Bl
Communications Hill Bl
Capitol Ex
Alma Av
Cornish Ln
Hellyer Av
Plumeria Dr
Commercial St
San Tomas Ex
Piercy Rd
Silver
Creek Rd
Camden Av
Farnsworth Dr
Embedded Wy
Los Esteros Rd
Capitol Ex
Auto Mall
Fortini Rd
Santa Teresa Bl
680
680
680
680
87 237
17 680
101
85 280
880
17 680
880
101
85 85
101
87 237
280
280
101
87 280
87 101
87 680
101
680
880
101
101
101
101
101

CITY OF SAN JOSE
2020-2025 LOCAL STREETS

MEASURE T STREETS
:

Legend
2025 Local Streets Measure T Streets
2024 Local Streets Measure T Streets
2023 Local Streets Measure T Streets
2022 Local Streets Measure T Streets
2021 Local Streets Measure T Streets
2020 Local Streets Measure T Streets
Attachment D
Program 2025-2026 2026-2027 2027-2028 2028-2029 2029-2030 5-Year Total

SOURCE OF FUNDS
Beginning Balance* ($19,557,883) $46,376,000 $4,303,000 $500,000 ($19,557,883) Financing Proceeds
Traffic 159,000,000 159,000,000
Public Safety 28,870,000 28,870,000
Storm Sewer 15,700,000 15,700,000
Parks & Community Facilities 6,000,000 6,000,000
Total Financing Proceeds $209,570,000 $209,570,000
Total Sources $190,012,117 $46,376,000 $4,303,000 $500,000 $190,012,117

USE OF FUNDS
Traffic
Bridges 4,751,000 1,900,000 1,900,000 500,000 9,051,000 Pavement Maintenance 55,250,307 20,000,000 75,250,307 LED Streetlight Conversion 2,500,000 697,000 1,600,000 4,797,000 Admin – Traffic 21,000 21,000
Admin Reserve – Traffic 21,000 21,000
Total Traffic $62,543,307 $22,597,000 $3,500,000 $500,000 $89,140,307 Public Safety
Emergency Operations Center
Relocation 500,000 500,000
Fire Station 8 Relocation 300,000 300,000
Fire Station 23 Relocation 3,539,000 3,539,000
New Fire Station 32 9,983,000 9,983,000
New Fire Station 36 2,040,000 14,000,000 303,000 16,343,000 Police Training Center Relocation 8,657,000 8,657,000 Police Air Support Unit Hangar 100,000 100,000
911 Call Center Upgrades 4,308,000 200,000 4,508,000 Police Administration Building Upgrades 4,984,000 100,000 5,084,000 Public Safety Reserves 19,183,914 19,183,914
Public Art - Pub Safety 601,659 601,659
Admin WC - Public Safety 355,000 355,000
Admin Reserve - Public Safety 355,000 355,000
Arbitrage Rebate Reserve 4,376,194 4,376,194
Total Public Safety $59,282,767 $14,300,000 $303,000 $73,885,767 Storm Sewer
Storm Drain Improvements at Charcot
Ave 12,748,000 12,748,000
Clean Water Projects
5,453,000 5,171,000 10,624,000
Public Art – Storm Sewer 165,000 5,000 170,000
Admin – Storm Sewer 125,000 125,000
Admin Reserve – Storm Sewer 125,000 125,000
Total Storm Sewer $18,616,000 $5,176,000 $23,792,000

CITY OF SAN JOSE
2026-2030 ADOPTED CAPITAL IMPROVEMENT PROGRAM

STATEMENT OF SOURCE AND USE OF FUNDS
Measure T Public Safety and Infrastructure Bond Fund (498) Attachment E
Program 2025-2026 2026-2027 2027-2028 2028-2029 2029-2030 5-Year Total

CITY OF SAN JOSE
2026-2030 ADOPTED CAPITAL IMPROVEMENT PROGRAM

STATEMENT OF SOURCE AND USE OF FUNDS
Measure T Public Safety and Infrastructure Bond Fund (498) Municipal Improvements
City Facilities LED Lighting 1,450,246 1,450,246
Total Municipal Improvements $1,450,246 $1,450,246
Parks & Community Facilities
Community Centers/Emergency
Shelters $1,581,797 $1,581,797
Public Art - Parks & Community
Facilities $89,000 $89,000
Admin – Parks 36,000 36,000
Admin Reserve Parks 37,000 37,000
Total Parks & Community Facilities $1,743,797 $1,743,797 Total Expenditures $143,636,117 $42,073,000 $3,803,000 $500,000 $190,012,117 Ending Fund Balance** $46,376,000 $4,303,000 $500,000
Total Uses $190,012,117 $46,376,000 $4,303,000 $500,000 $190,012,117 *The 2026-2027 through 2029-2030 Beginning Fund Balances are excluded from the FIVE-YEAR TOTAL SOURCE OF FUNDS to avoid multiple counting of the same funds.
**The 2025-2026 through 2028-2029 Ending Fund Balances are excluded from the FIVE-YEAR TOTAL USE OF FUNDS to avoid multiple counting of the same funds.

Attachment F - YTD Measure T Expenditures

Fiscal Year 2019-2020 2020-2021 2021-2022 2022-2023

2023-2024

2024-2025
Expenditures* $52,200,773 $75,472,897 $72,736,192 $60,307,156

$87,441,076

$103,092,896
*excludes encumbrances

-
50,000,000
100,000,000
150,000,000
200,000,000
250,000,000
300,000,000
350,000,000
400,000,000
450,000,000
500,000,000
2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 2024-2025 Measure T Expenditures
(through June 2025)

San Jose City CouncilMarch 3, 2026

San Jose City Council
March 3, 2026