The City Council of San Jose convened on May 4, 2025, for a budget study session focused on the Environmental Services Department (ESD) and its initiatives. The meeting featured presentations from key department directors, including the Deputy Director of Environmental Services, John Risto, Director of Transportation, and Laurie Mitchell, Director of Energy.

The primary agenda item was the overview of the Community Services Agency (CSA), which is dedicated to providing reliable utility services while safeguarding the environment. The CSA's core services include potable water delivery, recycled water, garbage and recycling, stormwater management, and sanitary sewer maintenance. A significant change highlighted was the establishment of a regulatory compliance group and a team focused on developing purified water, which will transition to the Energy Department in July. This move is expected to save the general fund approximately $450,000 annually.

The presentation included updates on performance measures, showcasing the CSA's effectiveness in wastewater treatment, recycled water delivery, and waste diversion. The budget for the CSA showed a slight increase, primarily due to lower power purchasing costs in the Energy Department. The overall staffing levels remained stable, with a net increase of one position.

Key cost drivers discussed included the transition to mechanical dewatering of biosolids, which is set to be commissioned in the fall. This transition is anticipated to yield long-term cost savings as the city phases out older biosolids management systems. Additionally, rising chemical costs were noted as a continuing challenge.

The ESD reported success with its recycling ambassadors program, which has significantly reduced recycling contamination rates from 50% to 41%. This improvement is projected to save the city approximately $6 million annually in waste management costs.

Collaboration between the Department of Transportation and ESD was emphasized, particularly in compliance with stormwater permit provisions. Efforts will continue to educate residents about protecting storm drains and implementing green stormwater infrastructure.

Looking ahead, the CSA aims to maintain high-quality utility services while making strategic investments and complying with regulatory requirements. The meeting concluded with an invitation for questions, indicating a commitment to transparency and community engagement in the budgeting process.