Well, they aren't in San Jose, and, truthfully, not even close, but from all I have read, this is where I plan to have my bike powder-coated: Andrews Powder Coating, Inc.
http://www.powdercoater.com/home.htmlTheir prices are quite reasonable, and, again, from what I've read, their quality is top-notch. Yes, it would mean shipping the frame, fork, and whatever else you want powder-coated down to Chatsworth (between Simi Valley & Burbank), but if you check out their site, you will find out why I have decided upon them. I was at Trail Head Cyclery this evening, talking with one of the mechanics about getting my bike done, and when he told me they deal with a local, East Bay company, as soon as I got home, I started checking up on what company it could be.
As it turned out, it is Maas Brothers (under the new ownership), but after I read some reviews of their work, while they may be inexpensive (as opposed to a certain Santa Clara-based business which is just plain "cheap", as in, low-quality), I would rather pay a little extra to guaranty quality work. If you read up on the stripping technique used my Andrews Powder Coating, you will learn to understand why the glass bead method used by many is NOT a good way to go. I have an older Giant ATX 970 (full suspension), that I have decided will, in the long (and slow) run, become a "project bike", and one of the first steps of this is going to be having the bike powder-coated...by Andrews.