HomeMy WebLinkAbout2025-06-16 City Council Action MinutesCITY COUNCIL
ACTION MINUTES
Page 1 of 10
Regular Meeting
June 16, 2025
The City Council of the City of Palo Alto met on this date in the Council Chambers and by virtual
teleconference at 5:30 P.M.
Present In Person: Burt, Lauing, Lu, Lythcott-Haims, Reckdahl, Veenker
Present Remotely:
Absent: Stone
Agenda Changes, Additions and Deletions
Public Comment
Council Member Questions, Comments and Announcements
Consent Calendar
Disclosures on Agenda Item Number 12 from Councilmembers Burt, Lythcott-Haims, Lauing, Lu,
and Veenker.
Councilmember Veenker, Lu recused from Agenda Item Number 20.
Councilmember Burt, Reckdahl, Lythcott-Haims requested to pull Agenda Item Number 3.
Councilmember Burt, Reckdahl, Lythcott-Haims requested to pull Agenda Item Number 11.
Councilmember Burt, Lu, Lythcott-Haims requested to pull Agenda Item Number 12.
MOTION: Councilmember Burt moved, seconded by Council member Reckdahl to approve
Agenda Item Numbers 1-2, 4-10, 13-17, 19-21 (Item 18 Deferred to June 17, 2025 City Council
Meeting), and to pull off Consent Agenda Item Numbers 3, 11, 12.
MOTION PASSED ITEMS 1-2, 4-10, 13-17, 19, 21: 6-0-1, Stone absent
Docusign Envelope ID: EA69ECC4-BFB2-4B82-B247-360944913AA4
ACTION MINUTES
Page 2 of 10
City Council Meeting
Action Minutes: 06/16/2025
MOTION PASSED ITEM 20: 4-0-1-2, Stone absent, Veenker, Lu Recused
1.Approval of Minutes from June 2, 2025 Meeting
2.Adoption of a Resolution Revising the Citywide Records Retention Schedule and
Repealing Resolution No. 9565
3.Approval of Office of the City Auditor Emergency Preparedness: Wildfire Audit Report as
Recommended by the Policy & Services Committee
4.Recommendation that the City Council to Refer to the Policy and Services Committee an
Update to the City of Palo Alto Advocacy Process Manual to Address Sponsorship of
Legislation; CEQA – Not a Project
5.Policy & Services Committee Recommends Approval to Amend the City Auditor
Bakertilly FY2024 and FY2025 Budgets for Task Orders to Realign the Authorized
Budgets with a Net Zero Impact; CEQA - Not a Project
6.Approval of the Council Appointed Officers (CAO) Committee‘s Recommendation to
Approve the CAO Annual Evaluation Process, Timeline, and Questions; and Approval of
Professional Services Contract Number C25193915 with the Municipal Resources Group,
LLC (MRG) in an Amount Not to Exceed $208,500 for Council Appointed Officer
Performance Evaluation Services for a Period of Three Years. CEQA Status - Not A
Project
7.Recommend the City Council Adopt the Fiscal Year 2026 Investment Policy as
Recommended by the Finance Committee: CEQA Status – Not a Project
8.Adoption of Memoranda of Agreement with International Association of Fire Fighters
(IAFF) Local 1319, Fire Chiefs Association (FCA), and Utilities Managers and Professionals
Association of Palo Alto (UMPAPA) for Terms Ending June 30, 2028, and Adoption of the
Updated Management and Professional Compensation Plan and Corresponding Salary
Schedules; CEQA Status – Not a Project
9.Approval of a Surveillance Use Policy for Security Cameras at Ada's Café at Mitchell Park
Community Center and Library; CEQA Status - Not a Project
10.City Council Appointment of the Castilleja Neighborhood Committee in Accordance with
Condition Number 33 Contained in Record of Land Use Action 2022-22 Authorizing
Redevelopment of Private School at 1310 Bryant Street (Castilleja School).
Environmental Assessment: Exempt from CEQA Pursuant to CEQA Guidelines Section
15061(b)(3).
11.Accept Electric System Reliability Key Performance Indices; CEQA – Not a Project
Docusign Envelope ID: EA69ECC4-BFB2-4B82-B247-360944913AA4
ACTION MINUTES
Page 3 of 10
City Council Meeting
Action Minutes: 06/16/2025
12.Approval of a Director’s Interpretation Pursuant to PAMC Section 18.01.025 Concluding
That Noncomplying Residential Gross Floor Area may not be Relocated Within a
Structure; Denial of the Associated Appeal; Direction to Prepare a Future Code
Amendment for Administrative De Minimis Exceptions to the Zoning Code; CEQA:
Exempt Pursuant to CEQA Guidelines Section 15061(b)(3)
13.Approve and Authorize the City Manager or Designee to Execute Purchase Orders as
Needed with the Okonite Company, Extending the Term for the Blanket Purchase Order
for Purchase and Standardization of Underground Cable Through December 31, 2025,
and to Increase the Not-to-Exceed Amount by $100,000, for the Extension Period. CEQA
Status: Not a Project.
14.Approval of Construction Contract No. C25194279 with Estate Design and Construction,
Inc. in the Amount Not-to-Exceed $283,770 and Authorization for the City Manager or
Their Designee to Negotiate and Execute Change Orders up to a Not-to-Exceed Amount
of $28,377 for the University Underpass Refurbishment Project; Capital Improvement
Program University Avenue Parking Improvements (PF-14003) and Street Lights
Improvements (PO-05054) projects; CEQA Status – Exempt under CEQA Guidelines
Section 15301(c)
15.Approval of Change Order No. 3 to Contract C22183580 with MP Nexlevel of California,
Inc., to reallocate funding from Change Order No. 2 to the Fiber-to-the-Premises (FTTP)
Project and to incorporate FTTP into the Scope of Work extending through August 31,
2025; CEQA Status - For FTTP, Council action on this item is within the scope of the Final
Initial Study and Mitigated Negative Declaration (IS/MND) for the Fiber-to-the-Premises
Project, adopted on June 17, 2024; otherwise exempt.
16.Approval of Two Professional Services Contracts for a Term of Two Years: C25193536
with 4Leaf, Inc. in an Amount Not-to-Exceed $291,253 and C25194267 with Interface
Engineering, Inc. in an Amount Not-to-Exceed $101,585 for Fire Station 4 Replacement
Capital Improvement Program Project (PE-18004); CEQA Status - Exempt under CEQA
Guidelines Sections 15302 and 15303
17.Approval of Contract Amendment No. 4 to Contract Number C19171363 with
Professional Account Management LLC, dba Duncan Solutions, to Extend the Contract
for one year to June 30, 2026, and to Adjust Billing Rates, Without an Increase to
Compensation, for a Not -to-Exceed Amount of $767,000 for Parking Permitting and
Citation Management Services; CEQA Status -- Not a Project.
18.Approval of Amendment No. 3 to Contract Number C23184827 with Nomad Transit, LLC
(Via) in the Amount of $1,100,000 for a total not to exceed $4,901,550 over a Four-Year
Term to Continue the City of Palo Alto On-Demand Transit Service through June 30,
2026; CEQA status - not a project. Item Deferred to June 17, 2025 City Council Meeting
Docusign Envelope ID: EA69ECC4-BFB2-4B82-B247-360944913AA4
ACTION MINUTES
Page 4 of 10
City Council Meeting
Action Minutes: 06/16/2025
19.QUASI-JUDICIAL. 1033 Amarillo Avenue [25PLN-00015]: Request for a Parcel Map with
Conditional Exceptions to Subdivide a 20,774-Square-Foot R-1 Property into Two Lots
(10,661 and 10,113 Square Feet). Exceptions include Minimum Lot Width, Maximum Lot
Size, and Residential Density. Zoning District: R-1 Single Family Residential. CEQA:
Exempt pursuant to CEQA Guidelines Section 15301 (Existing Facilities).
20.SECOND READING: Ordinance of the Council of the City of Palo Alto Amending: Chapter
18.14 (Housing Incentives) of the Palo Alto Municipal Code to Implement Program 3.4E
of the 2023-2031 Housing Element to Expand and Revise Regulations for the El Camino
Real Focus Area; Making Conforming Amendments to Chapter 16.58 (Development
Impact Fees) (FIRST READING: May 27, 2025; PASSED: 5-0-2, Lu, Veenker recused)
21.SECOND READING: Ordinance of the Council of the City of Palo Alto Amending Title 16
(Building Regulations) and Title 18 (Zoning) of the Palo Alto Municipal Code to Amend
Requirements Relating to Accessory Dwelling Units and Junior Accessory Dwelling Units
(FIRST READING: May 12, 2025; PASSED 7-0)
City Manager Comments
Ed Shikada, City Manager
Action Items
22.PUBLIC HEARING & PROPOSITION 218 HEARING: Finance Committee Recommends
Adoption of Six Resolutions: 1) Approving the Fiscal Year 2026 Wastewater Collection
Utility Financial Forecast and Reserve Management Practices, Amending Wastewater
Collection Rate Schedules S-1, S-2, S-6 and S-7, and Repealing Wastewater Collection
Rate Schedules S-3 and S-4; 2) Approving the Fiscal Year 2026 Water Utility Financial
Forecast, Reserve Management Practices and Reserve Transfers, and Amending Water
Rate Schedules W-1, W-2, W-3, W-4, and W-7; 3) Approving the Fiscal Year 2026 Gas
Utility Financial Forecast and Reserve Management Practices, Reserve Transfer, and
General Fund Transfer, Approving the Distribution of a Climate Credit to Small and
Medium Capacity G-2 Customers in December 2025, and Amending Gas Rate Schedules
G-1, G-2, G-3 and G-10; 4) Approving the Fiscal Year 2026 Electric Utility Financial
Forecast, Reserve Management Practices and Reserve Transfers, and Amending Electric
Rate Schedules E-1, E-2, E-2-G, E-4, E-4-G, E-4 TOU, E-7, E-7-G, E-7 TOU, E-14, E-16, E-
EEC-1, and E-NSE-1; 5) Amending Utility Rate Schedules EDF-1 and EDF-2, and Approving
the Palo Alto Fiber Broadband Internet Services Rate Schedule F-1; and 6) Amending
Storm Water Utility Rate Schedule D-1; CEQA Status: Not a project under CEQA
Guidelines Sections 15378(b)(4) and (5) and Exempt Under Section 15273(a)
Docusign Envelope ID: EA69ECC4-BFB2-4B82-B247-360944913AA4
Page 5 of 10
City Council Meeting
Action Minutes: 06/16/2025
ACTION MINUTES
Note: Resolutions are included in the packet as Attachments A – F, Attachment G reflects the
Table of URLs for the Exhibits to Attachments A – F.
MOTION: Councilmember Burt moved, seconded by Councilmember Reckdahl to adopt:
1.For the Water Utility, a Resolution (Attachment B):
a.Approving the FY 2026 Water Utility Financial Forecast and Reserves
Management Practices; and
b.Approving the transfer of up to $3 million from the Rate Stabilization Reserve to
the Operations Reserve in FY 2025; and
c.Amending the Water Utility Rate Schedules effective July 1, 2025 (FY 2026):
i.W-1 (General Residential Water service),
ii.W-2 (Water Service from Fire Hydrants),
iii.W-3 (Fire Service Connections),
iv.W-4 (Residential Master-Metered and General Non- Residential Water
Service), and
v.W-7 (Non-Residential Irrigation Water Service)
MOTION PASSED: 6-0-1, Stone absent
MOTION: Vice Mayor Veenker moved, seconded by Mayor Lauing to adopt:
1.For the Wastewater Collection Utility, a Resolution (Attachment A):
a.Approving the Fiscal Year (FY) 2026 Wastewater Collection Utility Financial
Forecast and Reserves Management Practices; and
b.Amending the Wastewater Collection Utility Rate Schedules effective July 1,
2025 (FY 2026):
i.S-1 (Residential Wastewater Collection and Disposal),
ii.S-2 (Commercial Wastewater Collection and Disposal),
iii.S-6 (Restaurant Wastewater Collection and Disposal), and
iv.S-7 (Commercial Wastewater Collection and Disposal – Industrial
Discharger); and
c.Repealing the Wastewater Collection Utility Rate Schedules effective July 1,
2025:
i.S-3 (Industrial Waste Laboratory and Analysis Charges), and
ii.S-4 (Hauled Liquid Waste Charges)
MOTION PASSED: 6-0-1, Stone absent
Docusign Envelope ID: EA69ECC4-BFB2-4B82-B247-360944913AA4
ACTION MINUTES
Page 6 of 10
City Council Meeting
Action Minutes: 06/16/2025
MOTION: Councilmember Burt moved, seconded by Mayor Lauing to adopt:
1.For the Gas Utility, a Resolution (Attachment C) with the following modification:
a.Approving the FY 2026 Gas Utility Financial Forecast and Reserves Management
Practices; and
b.Approving the transfer of up to $1.5 million from the Gas Utility Operations
Reserve to the Distribution Rate Stabilization Reserve in FY 2025; and
c.Transferring up to 18% of gas utility gross revenues received during FY 2024 to
the General Fund in FY 2026; and
d.Amending the Gas Utility Rate Schedules effective July 1, 2025 (FY 2026):
i.G-1 Residential Gas Service,
ii.G-2 Residential Master-Metered and Commercial Gas Service,
iii.G-3 Large Commercial Gas Service, and
iv.G-10 Compressed Natural Gas Service);
e.Remand the issue of a one-time credit to the Utilities Advisory Commission to be
considered at the time they review the updated COSA.
MOTION PASSED: 5-1-1, Lythcott-Haims no, Stone absent
MOTION: Councilmember Burt moved, seconded by Council Reckdahl to adopt:
1.For the Electric Utility, a Resolution (Attachment D):
a.Approving the FY 2026 Electric Utility Financial Forecast and Reserves
Management Practices; and
b.Approving the transfer of up to $5 million from the Electric Utility Supply
Operations Reserve to the Distribution Operations Reserve in FY 2025; and
c.Amending the Electric Utility Rate Schedules effective July 1, 2025 (FY 2026):
i.E-1 (Residential Electric Service),
ii.E-2 (Small Non-Residential Electric Service),
iii.E-2-G (Residential Master-Metered and Small Non-Residential Green
Power Electric Service,
iv.E-4 (Medium Non-Residential Electric Service),
v.E-4-G (Medium Non-Residential Green Power Electric Service),
vi.E-4 TOU (Medium Non-Residential Time of Use Electric Service),
vii.E-7 (Large Non-Residential Electric Service),
viii.E-7-G (Large Non-Residential Green Power Electric Service),
ix.E-7 TOU (Large Non-Residential Time of Use Electric Service),
x.E-14 (Street Lights),
xi.E-16 (Unmetered Electric Service) to recover capital and maintenance
costs for utility pole attachments and telecom conduit,
xii.E-EEC-1 (Export Electricity Compensation) to reflect 2024 avoided cost,
and
xiii.E-NSE-1 (Net Surplus Electricity Compensation) to reflect current
projections of FY 2026 avoided cost;
Docusign Envelope ID: EA69ECC4-BFB2-4B82-B247-360944913AA4
ACTION MINUTES
Page 7 of 10
City Council Meeting
Action Minutes: 06/16/2025
2.For the Fiber Optics Utility, a Resolution (Attachment E) with the following additions:
a.Amending the Dark Fiber Optic Utility Rate Schedules, consistent with the
applicable Consumer Price Index, effective July 1, 2025 (FY 2026):
i.EDF-1 (Dark Fiber Licensing Services),
ii.EDF-2 (Dark Fiber Service Connection Fees);
b.Approving the new Palo Alto Fiber Broadband Internet Services Rate Schedule F-
1, for broadband internet services;
c.Direct staff to evaluate one or more alternative pricing models, including a
promotional price and consideration of a reduced pricing for higher speed
categories;
3.For Storm Water Management, a Resolution (Attachment F):
a.Amending the Storm Water Management Fee Rate Schedule, consistent with the
applicable Consumer Price Index, D-1 effective July 1, 2025 (FY 2026):
i.D-1 (General Storm and Surface Water Drainage)
MOTION PASSED: 6-0-1, Stone absent
23.PUBLIC HEARING: Presentation on Status of Vacancies and Recruitment and Retention
Efforts and Adoption of Budget Ordinance for Fiscal Year 2026, Including the Operating
and Capital Budgets and Municipal Fee Schedule; Adoption of a Resolution determining
the Appropriations Limit for Fiscal Year 2026; Vacancies and Recruitment Update
(AB2561 Compliance); and Approval of FY 2026 Non-Profit Workplan Phase I Awards as
Recommended by the Policy & Services Committee; and Adoption of a Resolution to
Extend and Amend the Development Services Reserve Fund Policy; CEQA Status – Not a
Project
City Manager Ed Shikada and Vice Mayor Veenker recused from Stanford related portions of
the item.
MOTION: Councilmember Lu moved, seconded by Councilmember Burt to approve the
Stanford related items for the FY 2026 budget (Attachment C) and authorize funding extension
of the Palo Alto Link (PAL) On Demand Transit Services program for up to 6 months for FY 2026.
MOTION PASSED: 5-0-1-1, Veenker recused, Stone absent
MOTION: Councilmember Burt moved, seconded by Councilmember Lythcott-Haims to
approve the allocations recommended by the Policy & Services Committee with the following
changes:
•Decrease $12,500 from the Policy and Services Committee recommendation and
increase the City Manager’s Office budget for FY 2026 for Neighbors Abroad by $17,500;
Docusign Envelope ID: EA69ECC4-BFB2-4B82-B247-360944913AA4
DRAFT ACTION MINUTES
Page 8 of 10
City Council Meeting
Action Minutes: 06/16/2025
•Decrease $10,780 from the Policy & Services Committee recommendation and increase
the Community Services budget for FY 2026 for the Environmental Volunteers by
$10,780;
•Increase of $50,000 for Magical Bridge Foundation to the Policy Services Committee
recommendation to a total of $150,000 and also an increase of $25,000 for UNAFF to
the Policy and Services Committee recommendation to a total of $45,000 (with $75,000
coming from FY 2025 Council Contingency).
MOTION PASSED: 6-0-1, Stone absent
Also, the net balance of $7,366 above FY26 budget based upon the revised P&S
recommendation will be funded from FY25 Council Contingency for a total of $82,366.
MOTION: Councilmember Burt moved, seconded by Councilmember Lu to:
1.Adopt the Fiscal Year 2026 Budget Ordinance (Attachment A), which includes:
a.City Manager’s Fiscal Year 2026 Proposed Operating and Capital Budgets,
previously distributed at the May 5 City Council Meeting (Attachment A, Exhibit
1)
b.Amendments to the City Manager’s Fiscal Year 2026 Proposed Operating Budget
(Attachment A, Exhibit 2)
c.Amendments to the City Manager’s Fiscal Year 2026 Proposed Capital Budget
(Attachment A, Exhibit 3)
d.Fiscal Year 2026 City Table of Organization (Attachment A, Exhibit 4)
e.Fiscal Year 2026 Municipal Fee Changes (Attachment A, Exhibit 5)
f.Planning and Development Services Cost of Service Study and Municipal Fee
Adjustments (Attachment A, Exhibit 6)
g.Citywide Cost of Services Study and Municipal Fee Adjustments (Attachment A,
Exhibit 7)
h.In the Gas Fund: Remove $1,100,000 appropriation for Gas Climate Credits
2.Accept the Fiscal Year 2026 – 2030 Capital Improvement Plan
3.Adopt a Resolution determining the Appropriations Limit for Fiscal Year 2026
(Attachment B)
4.Comply with Assembly Bill 2561 / Government Code § 3502.3 regarding vacancies and
recruitment efforts (Attachment D).
5.Approval of FY 2026 Non-Profit Workplan Phase I Awards as amended by Items 5-9
below.
6.Adopt a Resolution to Extend and Amend the Development Services Reserve Fund
(DSRF) Policy Resolution, previously adopted by Resolution No. 10142.
7.Authorizing the Measure B funding for Safe Routes to School Planner position and
advance recruitment as soon as possible.
Amend the Fiscal Year 2026 Budget Ordinance in the General Fund by:
Docusign Envelope ID: EA69ECC4-BFB2-4B82-B247-360944913AA4
ACTION MINUTES
Page 9 of 10
City Council Meeting
Action Minutes: 06/16/2025
1.Decreasing the Appropriation for the Palo Alto Link program by $550,000;
2.Decreasing Other Revenue from Stanford University by $260,000;
3.Decreasing Charges for Services Revenue by $40,000;
4.Increasing the Budget Stabilization Reserve by $250,000;
5.Increasing the appropriation for Neighbors Abroad in the City Manager’s Office
by $17,500
6.Increasing the appropriation for Environmental Services in the Community
Services Department by $10,780
7.Increasing the appropriation for Magical Bridge in the Nonprofit Workplan
Phase I by $50,000;
8.Increasing the appropriation for UNAFF in the Nonprofit Workplan Phase I by
$25,000;
9.Reappropriating the FY 2025 Council Contingent Account by $82,366.
MOTION PASSED: 6-0-1, Stone absent
24.Approval of Five Items to Support the Newell Road/San Francisquito Creek Bridge
Replacement Project PE-12011: 1) Construction Contract No. C25194068 with Granite
Construction Company in the Amount Not-to-Exceed $9,399,787 and Authorization for
the City Manager or Their Designee to Negotiate and Execute Change Orders to the
Contract up to a Not-to-Exceed Amount of $939,979; 2) Approval of Professional
Services Contract No. C25190454 with Zoon Engineering, Inc, in the Amount of
$2,559,915 for Construction Management Services through December 31, 2026; 3)
Approval of Amendment No. 7 to Contract No. C12142825 with NV5, Inc. to extend the
contract term through December 31, 2026 for Construction Support; 4) Approval of
Amendment No. 3 to a Cost Share Agreement with Santa Clara Valley Water District
Providing Local Matching Funds in the Amount $155,458 for Design, Right of Way
Appraisal and Acquisition and Construction Support for the Newell Road/San
Francisquito Creek Bridge Replacement Project; and 5) Adoption of a FY 2025 Budget
Amendment in the Capital Improvement Fund; CEQA Status - Environmental Impact
Report for Newell Road/San Francisquito Creek Bridge (Resolution No. 9889)
MOTION: Councilmember Reckdahl moved, seconded by Councilmember Burt to:
1.Authorize the City Manager or their designee, after considering Caltrans’ feedback on
the Good Faith Effort documentation associated with the Disadvantaged Business
Enterprise program, to approve and execute Construction Contract No. C25194068 with
Granite Construction Company, in the amount not to exceed $9,399,787 for the Newell
Road/San Francisquito Creek Bridge Replacement Project (CIP PE-12011):
a.Authorize the City Manager or their designee to negotiate and execute one or
more change orders to the contract with Granite Construction Company for
Docusign Envelope ID: EA69ECC4-BFB2-4B82-B247-360944913AA4
ACTION MINUTES
Page 10 of 10
City Council Meeting
Action Minutes: 06/16/2025
related additional but unforeseen work that may develop during the project, the
total value of which shall not exceed $939,787;
2.Approve and authorize the City Manager or their designee to execute the attached
Professional Services Contract No. C25190454 with Zoon Engineering, Inc. to provide
construction management services through December 31, 2026 and a total not-to-
exceed amount of $2,559,915, including $2,327,196 for base services and $232,719 for
additional services;
3.Approve and authorize the City Manager or their designee to execute Amendment No.7
to Contract No. C12142825 with NV5, Inc. to extend the contract term through
December 31, 2026 for construction support services;
4.Approve and authorize the City Manager or their designee to execute Amendment No. 3
to Cost Share Agreement A3581S with the Santa Clara Valley Water District in the
amount of $155,458, providing local matching funds; and
5.Approve a Fiscal Year 2025 Budget Amendment for the Capital Improvement Fund
(requires a 2/3 vote):
a.Increasing the revenue appropriation for the Newell Road/San Francisquito
Creek Bridge Replacement Project (PE-12011) by $155,458 for Santa Clara Valley
Water District’s local match contribution associated with completing design and
right-of-way phases.
MOTION PASSED: 6-0-1, Stone absent
Adjournment: The meeting was adjourned at 11:20 P.M.
ATTEST: APPROVED:
____________________ ____________________
City Clerk Mayor
NOTE: Action minutes are prepared in accordance with Palo Alto Municipal Code (PAMC)
2.04.160(a) and (b). Summary minutes (sense) are prepared in accordance with PAMC Section
2.04.160(c). Beginning in January 2018, in accordance with Ordinance No. 5423, the City Council
found action minutes and the video/audio recordings of Council proceedings to be the official
records of both Council and committee proceedings. These recordings are available on the
City’s website.
Docusign Envelope ID: EA69ECC4-BFB2-4B82-B247-360944913AA4