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HomeMy WebLinkAbout2025-06-17 City Council Summary MinutesCITY COUNCIL SUMMARY MINUTES Page 1 of 19 Special Meeting June 17, 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: None Absent: Stone Special Orders of the Day 1. Proclamation Honoring Juneteenth Mayor Lauing welcomed Former Palo Alto City Council Member and Retired Judge LaDoris Cordell, the first African American woman elected to Palo Alto City Council Hillary Freeman, Brian Chancellor representing father Dr. Frederick Chancellor, and Reverend Kaloma Smith. Councilmember Lythcott-Haims read the proclamation. Retired Judge LaDoris Cordell read the beginning and close of President Abraham Lincoln’s Emancipation Proclamation and called for continued freedom, equality, democracy, and justice. Hillary Freeman thanked the City for honoring Juneteenth and was proud the City was taking meaningful steps to embrace a future of justice, unity, and inclusivity. Brian Chancellor, on behalf of Dr. Frederick Chancellor, was proud to be from Palo Alto and was elated the City was celebrating and acknowledging Juneteenth. Mr. Chancellor implored the City to continue on the path to ensure every person has Constitutional rights. Reverend Kaloma Smith thanked and commended the City for being distinct and clear regarding the history of enslaved people. NO ACTION Closed Session AA1. CONFERENCE WITH LABOR NEGOTIATORS City Designated Representatives: City Manager and his Designees Pursuant to Merit System Rules and Regulations (Ed Shikada, Kiely Nose, Sandra Blanch, Nick Raisch, Tori Post, Molly Stump, Lauren Lai, Paul Harper, and Jennifer Fine) Employee Organization: Service Employees International Union, (SEIU) Local 521 Hourly Unit, Utilities Management and Professional Association of Palo Alto (UMPAPA), Palo SUMMARY MINUTES Page 2 of 19 Sp. City Council Meeting Summary Minutes: 06/17/2025 Alto Peace Officers’ Association (PAPOA), Palo Alto Police Management Association (PMA), International Association of Fire Fighters (IAFF) local 1319, Palo Alto Fire Chiefs’ Association (FCA); Authority: Government Code Section 54957.6 (a) MOTION: Councilmember Reckdahl moved, seconded by Vice Mayor Veenker to go into Closed Session. MOTION PASSED: 6-0-1, Stone absent Council went into Closed Session at 5:47 P.M. Council returned from Closed Session at 6:57 P.M. Mayor Lauing announced no reportable action. Agenda Changes, Additions and Deletions City Manager Ed Shikada stated Item AA2 was deferred from last night’s Council discussion and added to this agenda. Staff requested the item be removed from the Consent Calendar and heard as the first Action Item. Public Comment 1. Mora O., Executive Director of Youth Community Service (YCS) expressed gratitude and appreciation to City leaders and staff. Mora O. invited those present to the youth- organized and led YCS Summer of Service Community Park Clean-Ups, the next being held on June 26 from 3:30 to 5:30 at Joel Davis Park in East Palo Alto. 2. Avram F. referenced the interruption by an unknown man during last night’s discussion. Avram F. suggested the documentary Israelism and planned to send a reading list that will include books by Ilan Pappe. 3. Ken H. referenced an article in The Mercury News titled, “Sugar Is Making Our Kids Sick,” written by 2 pediatricians at Stanford and UCSF. Ken H. felt there was a need for an ongoing fund to help pay for desired projects and activities in Palo Alto. Ken H. mentioned the deficit of nearly $6M and that many nonprofits could not be funded. Ken H. acknowledged taxes will be proposed in the next couple years at a state and county level. Santa Cruz passed a sugar tax last November. Ken H. believed a sugar tax could generate a couple million dollars every year and suggested it be a separate fund run by an organization made up of consumers instead of the City. SUMMARY MINUTES Page 3 of 19 Sp. City Council Meeting Summary Minutes: 06/17/2025 Council Member Questions, Comments and Announcements Vice Mayor Veenker will be the City’s delegate to the annual Association of Bay Area Governments General Assembly on Friday. The budget and work program for the next fiscal year will be approved. Vice Mayor Veenker mentioned the San Francisco Pride Parade happening on June 29. Consent Calendar Mayor Lauing said there must be a motion to remove Item AA2. Mayor Lauing asked if it could be tallied separately for the Council Member that must recuse. City Attorney Molly Stump explained the recusal gets made on consent and the Council Member can stay. If it is an Action Item, the recused must be removed from the dais. Public Comment: 1. Randy M-R. was invited to speak but was no longer on Zoom. 2. Sahlik was invited to speak but there was no response. 3. N. did not have a comment on the Consent Calendar items. City Manager Ed Shikada clarified that Item AA2 was removed and will be heard on the Action Agenda. MOTION: Councilmember Lythcott-Haims moved, seconded by Mayor Lauing, to approve Agenda Item Numbers 2-16 and to pull Consent Agenda Item AA2. MOTION PASSED: 6-0-1, Stone absent 2. Approval of the Office of the City Auditor Annual Risk Assessment and FY 2026 Audit Plan and Corresponding Task Orders 3. Climate Action and Sustainability Committee Recommendation to Council to Direct Staff to Develop an Affordable Multi-Family Housing Electrification Grant Program and to Approve a Budget Amendment in the Gas Utility Funds; CEQA Status: Under CEQA Guidelines section 15183, projects consistent with an existing general or comprehensive plan do not require additional CEQA review 4. Adopt a Resolution Declaring Surface Parking Lot T (APN: 120-15-100) Exempt Surplus Land and Approve an Exclusive Negotiation Agreement with Alta Housing for Development of 100% Affordable Housing on City-Owned Property Located at the Corner of Kipling Street and Lytton Avenue in Downtown Palo Alto; CEQA Status – Not a Project. SUMMARY MINUTES Page 4 of 19 Sp. City Council Meeting Summary Minutes: 06/17/2025 5. Approval of the 2025 update to the Sewer System Management Plan (SSMP) and Authorization for Staff to Make Future Administrative or Minor Updates to the SSMP as Needed; CEQA Status – Exempt under CEQA Guidelines sections 15301, 15302, 15308. 6. Approval for the City Manager or their Designee to Execute Contract No. C25194016 with SCA of CA, LLC, Utilizing Sourcewell Cooperative Contract No. 062421-SWP, to Procure Services for the Sweeping of Residential and Commercial Streets for a Period of Five Years for a Total Not-to-Exceed Amount of $9,883,850; CEQA Status – Not a Project 7. Approval of General Services Contract No. C25193659 With Community Tree Service LLC for Utility Line Clearance Services in an Amount Not-to-Exceed $16,500,000 for a Period of Five Years; CEQA Status – Exempt Under Section 15301(h) 8. Approval of and Authorization for the City Manager or Designee to Negotiate and Execute a Purchase and Sale Agreement with C H LLC to Acquire the Industrial Property Located at 2575 East Bayshore Road (Assessor’s Parcel Number 008-03-015) for $8.5 million, with Leaseback to Insulation Sources, Inc. (dba Ico Rally) for $12,600/Month; CEQA Status – Exempt Under CEQA Guidelines Section 15301 9. Approval of Professional Services Contract Number C26193797 with Chandler Asset Management, Inc. in an Amount Not to Exceed $750,000 for Investment Management Services for a Period of Three Years; CEQA Status - Not A Project 10. Approval of Professional Services Contract Number C25193814 with Alta Housing BMR Services LLC in an Amount Not to Exceed $450,600 for Administration and Consulting Services for the City's Below Market Rate Housing Program for a Period of Two Years and Approve a FY 2026 Budget Amendment in the Residential Housing In-Lieu Fund. CEQA Status: Exempt under CEQA Guidelines 15262. 11. Authorize the City Manager to Negotiate and Execute 14 Professional Services Contracts for GIS On-Call Services, supplemental staffing, and programming services: C26193271A with Lynx Technologies Inc, C26193271B with Seven Tablets Inc, C26193271C with iSpatial Techno Solutions Inc, C26193271D with Geodesy, C26193271E with UDC, C26193271F with NV5 Geospatial Inc, C26193271G with SSP Innovations, C26193271H with Timmons Group, C26193271I with Infojini Inc, C26193271J with Sybyte Technologies Inc, C26193271K with 360S2G, C26193271L with Enterprise Maps, C26193271M with Farallon Geographics, C26193271N with Arini Geographics in an Amount Not-to-Exceed $2,000,000 for a Term of One Year; CEQA Status – Not a Project. 12. Authorize the City Manager to Negotiate and Execute Professional Services Contracts for SAP Enterprise Resource System On-call Programming Services: Contract C26193272A with 360S2G, C26193272B with Sage Group Technologies Inc, C26193272C with Avertra Corp, C26193272D with Amick Brown LLC, C26193272E with 2iSolutions Inc, C26193272F with the Peloton Group, C26193272G with Phoenix Business Inc, SUMMARY MINUTES Page 5 of 19 Sp. City Council Meeting Summary Minutes: 06/17/2025 C26193272H with EPI-USE America in an Amount Not-to-Exceed $2,000,000 for a Term of One Year; CEQA status – Not a project. 13. Authorize the City Manager to Negotiate and Execute Eight Professional Services Contracts for On-Call IT Project Support and supplemental staffing: Contract C26193247A with INSPYR Solutions, C26193247B with AgreeYa Solutions, C26193247C with TechLink Systems, C26193247D with Compunnel Software Group, C26193247E with Progile Tech Inc, C26193247F with Omm IT Solutions, C26193247G with Infojini Inc, and C26193247H with California Creative Solutions Inc in an Amount Not to Exceed $1,500,000 for a Term of One Year; CEQA Status – Not a Project 14. Approval of Professional Services Contract No. C26193874 with Palo Alto Community Child Care in an Amount Not-to-Exceed $3,228,146 to Provide Management of the City’s Childcare Subsidy Program for a Term of Five Years. CEQA Status – Not A Project 15. Approval of Seven (7) On-Call Consulting Contracts to Provide Planning Application Processing and Supplemental Staffing for the Planning and Development Services Department over a Five-Year Term, as needed: 1) Arnold Mammarella, Architecture + Consulting, 2) CTC Media Group INC., 3) Good City Company 4) Metropolitan Planning Group, 5) Michael Baker International Inc., 6) Stantec Consulting Services, Inc., 7) Urban Planning Partners Inc. in the Amount not to exceed $2,000,000 ; CEQA Status: Not a Project. 16. Amend the Fiscal Year (FY) 2026 Budget Appropriation for the Community Development Block Grant (CDBG) Fund to Reflect Final Entitlement Grant Allocation. CEQA Status: Exempt under CEQA Guidelines Section 15378(b)(4). AA2. 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. (Originally Published on the June 16, 2025 City Council Meeting Agenda Item Number #18 - Deferred to June 17, 2025 City Council Meeting) Agenda Item AA2 Removed from Consent Calendar to be heard on Action at the June 17, 2025, City Council Meeting Action Items AA2. 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. (Originally Published on the June 16, 2025, City Council Meeting Agenda Item Number #18 - Deferred to June 17, 2025, City Council Meeting) SUMMARY MINUTES Page 6 of 19 Sp. City Council Meeting Summary Minutes: 06/17/2025 Part of the funding for this item comes from Stanford University. City Manager Ed Shikada recused given the FTPC held it was a conflict of interest due to City Manager Shikada’s wife’s employment with Stanford Health Care. Vice Mayor Veenker recused because of conflict based on legal work for Stanford. Councilmember Burt questioned whether Item AA2 should follow Item Number 17 given that public participation was not likely on Item AA2. Assistant City Manager Kiely Nose explained Council procedures state an item pulled will be the first heard on the Agenda before scheduled Action Items. Staff did not anticipate a long presentation. Chief Transportation Official Ria Lo stated that last night the City Council desired to fund the Palo Alto Link Program for 6 months instead of 12, which affected the contract addressed in Item AA2. Staff was given 24 hours to think about the concerns regarding cost effectiveness. Staff asked the City Council to consider a transition or wind-down plan for the service. Transportation Planning Manager Nathan Baird mentioned Council direction in 2018 to explore a flex transit model. The VTA Innovative Transit Service Grant was received in 2022. Refinements were made over the pilot period that began in March 2023. Over 45,000 rides were completed from July 1, 2024, through December 31, 2024, about 40 percent of which were seniors, low income, youth, disabled, or veterans. Transportation Planning Manager Baird wanted to renegotiate the amendment to terminate the service early without cause and would have to coordinate with Stanford Research Park regarding the implications. Transportation Planning Manager Baird stated the cessation of service without alternatives in place for transit-dependent riders would occur on January 1, 2026. Via and Nomad Transit were willing to wind down or find other options moving forward. The staff recommendation was to approve a 12-month contract amendment for Palo Alto Link service with Nomad Transit, to direct staff to consider and present termination implications and alternative service options by the end of 2025, and to consider opportunities created if grants were awarded. Transportation Planning Manager Baird said the original service required a $760,000 General Fund contribution. The current budget proposal would have been a $500,000 commitment which, including SRP funds, would allow for another year of service through June 2026 without VTA or TFCA funds. Public Comment: Joe M., with Via Transportation, thanked the City for the years of partnership and offered to answer questions regarding the contract or partnership. Joe M. said Via was willing to explore and make recommendations on potential service changes in the future. Mayor Lauing summarized the desire was to provide the service through the fiscal year, which would be a $500,000 commitment for FY2026 and may be supplemented by additional grants. Early termination would prevent discussion regarding alternatives. SUMMARY MINUTES Page 7 of 19 Sp. City Council Meeting Summary Minutes: 06/17/2025 Councilmember Burt clarified the concern was not over Via’s performance but the amount of subsidy the City must put in during a period in which deficits were projected. Councilmember Burt asked if another grant was applied for besides the VTA. Councilmember Burt questioned the amount and likelihood of receiving the TFCA and VTA grants, especially with VTA projecting deficits. Councilmember Burt wondered if services would be expanded above the planned level if the VTA grant was awarded. The goal was to reduce City subsidy. Councilmember Burt asked if the VTA grant funds must go toward expanding the service. Councilmember Burt was concerned reduced project options had not been thought of. Councilmember Burt suggested looking at less subsidy for those not in need. The VTA Board had expressed concern about the sustainability of these programs in a number of cities. Transportation Planning Manager Baird confirmed reapplication for the Transportation for Clean Air grant and requested $456,000, more than the $441,000 received last year. The VTA grant would come out of the set-aside for innovative transit funds. Originally, $2M was received, but now $1.4M was requested. Transportation Planning Manager Baird acknowledged part of the plan presented to the VTA involved some City match and would need further discussion. The VTA will go to the Board in October, and the plan would be to return to Council in the fall to present options. The VTA and Via have been flexible to change the service as needed. Transportation Planning Manager Baird reiterated the $1.4M was through 2027. Since February, there was awareness of the VTA funds winding down, so service level changes had been implemented. The service originally spent $130,000 to $150,000 per month, which dropped to $80,000 to $85,000. There had been an increase in wait times, up to 18 to 22 minutes from 10 to 15 minutes. The number of unavailable seats had increased from 12 percent to 20 percent. Chief Transportation Official Lo said the TFCA was undersubscribed this year so felt there was a good chance of receiving the grant. Chief Transportation Official Lo agreed to check what was committed to in the VTA grant application and return to Council with that information. Mayor Lauing agreed with Councilmember Burt’s comments. Mayor Lauing felt the need for $2M in grants was not sustainable and that possible solutions involved increasing cost, accepting longer wait times, and targeting a certain demographic. Councilmember Reckdahl said the feedback received implied users cannot rely on the service to be prompt. The request was for $500,000 out of the City’s budget and the service brought in $80,000 in revenue. Councilmember Reckdahl opined the program would not be successful if the subsidy was reduced because it would cost the same as Uber but would not offer as prompt of service. Councilmember Reckdahl felt the best option was to restrict use to disabled and seniors. Councilmember Reckdahl asked if the VTA had a disabled transit, what the restrictions were, and if senior citizens with walkers were eligible. Chief Transportation Official Lo believed all public transport was subsidized to some extent and confirmed the VTA had a power transit option. Chief Transportation Official Lo noted the Palo Alto Link was ADA accessible with some vehicles being equipped with wheelchair lifts. The VTA SUMMARY MINUTES Page 8 of 19 Sp. City Council Meeting Summary Minutes: 06/17/2025 paratransit required 24-hour notice and users needed to register. Chief Transportation Official Lo confirmed seniors with walkers were eligible. Assistant City Manager Nose acknowledged the unsustainability with current grant funding and service levels. The staff recommendation was to be given more time to do analysis, evaluate, and return to Council. Councilmember Lythcott-Haims referenced the graph showing vulnerable user data and asked for clarification about the 40 percent of vulnerable riders, if 30 percent of the most vulnerable were seniors, and why the other 60 percent were not included. The City’s budget situation necessitated a critical review of whether the service can continue to be subsidized. Councilmember Lythcott-Haims referenced the amendment and asked why there was urgency. Transportation Planning Manager Baird confirmed about 40 percent of users were among the most vulnerable but noted ridership demographics and types change month to month. The bar chart highlighted the most vulnerable users. Chief Transportation Official Lo clarified that 30 percent of total riders were seniors. Assistant City Manager Nose explained the 2 key components of a contract were length of term and total compensation. The provider was unable to be paid due to being at the total compensation of this contract. Assistant City Manager Nose acknowledged this had not been noticed and impacts to vulnerable populations had not been discussed. Budget conversations will be brought to the Finance Committee in August to look at the continued operation of the service as part of the process in balancing Council priorities. Mayor Lauing clarified that the contract total must be addressed right now and asked if the City could terminate the contract early even if it was approved for a year. Mayor Lauing emphasized the need to notify users and provide alternatives and had hoped to have the option to wind down in 9 months as opposed to 12. Councilmember Reckdahl asked if the price could be changed at any time. Assistant City Manager Nose explained the contract did not have an early termination clause. If Council wanted to put in an early termination clause, the contract must be renegotiated with the provider. Staff estimated it will take a year to do engagement, analysis, and the transition, and felt 6 months was insufficient to accomplish those tasks. Assistant City Manager Nose confirmed the price could be changed at any time. Chief Transportation Official Lo added that in the event the analysis was completed and Council decided to wind down, that could happen sooner if it could be negotiated with Nomad. City Manager Shikada and Vice Mayor Veenker recused from Stanford-related portions of the item. MOTION: Councilmember Burt moved, seconded by Councilmember Lythcott-Haims to: SUMMARY MINUTES Page 9 of 19 Sp. City Council Meeting Summary Minutes: 06/17/2025 1. Approve a 12-month contract amendment for Palo Alto Link service with Nomad Transit; 2. Direct staff to consider and present termination implications and alternative service options by end of 2025; 3. Consider opportunities created if requested grants are awarded; 4. Direct staff to negotiate with the provider to assure that the City has, to the extent possible, the prerogative to adjust the program, either in its service or length, over the next year. Assistant City Manager Nose asked what the fallback position would be if the provider does not agree to changing the termination clause to allow termination without cause. Councilmember Burt said the fallback was to extend the contract as the motion stated. Councilmember Reckdahl asked when the contract will run out. Mayor Lauing clarified that during the 12-month period, $500,000 was at risk, maybe less if grants come in. Mayor Lauing noted that the main driver besides the contract was the need for alternatives and notice to the customers. Assistant City Manager Nose said the current contract will run out while Council is on break. Assistant City Manager Nose emphasized the need for more time. Assistant City Manager Nose agreed the $500,000 was at risk during that period but it may be less if prices increased or to the extent grant funding supplements versus supplants. Councilmember Lu agreed with the overall approach and the need for time to wind down the program. Councilmember Lu felt it should be agendized as an Action Item. Council had the staff report and attachments for the Item but did not have the contract. Attachment B linked to the third amendment to the contract which referred to Section 19, which discussed termination. MOTION PASSED: 5-0-1-1, Veenker recused, Stone absent 17. Approve a Resolution to Allow Dining and Retail Encroachments on Car Free California Avenue under PAMC Ch. 12.11; Direct Staff to Approve the Car Free California Avenue Outdoor Activation Program Regulations Including Reference to the Program fees in the FY 2026 Municipal Fee Schedule; Adopt a Resolution Allowing Open Containers in Conjunction with 3rdThursday Performances in 2025; Direct Staff to Review Differences Between the Open Container Resolution and an Entertainment Zone as Recommended by the Retail Committee. CEQA Status – categorically exempt. City Manager Ed Shikada felt the discussion was an opportunity to express Council perspectives and hear from community members. The adoption of a resolution that allowed for continued SUMMARY MINUTES Page 10 of 19 Sp. City Council Meeting Summary Minutes: 06/17/2025 outdoor dining along California Avenue was necessary because the authorization will expire at the end of June. Mayor Lauing asked about approving the program regulations found in Attachment A. City Manager Shikada said the program regulations were a recommendation and clarified the resolution explicitly included the imposition of fees for the use of public space. Assistant to the City Manager Bruce Fukuji presented on the Outdoor Activation Program. Council direction was to implement a permanent Parklet Program based on existing guidance and adjust for context differences on California Avenue. Differences included being a car-free street, existing outdoor dining areas being greater than permitted with the Parklet Program, and a greater density of restaurants. The intents were to enable commercial and community use of the public right-of-way, prioritize walking and biking, and address the need for flexibility. The Parklet Program does not address commercial use of sidewalks, retail issues, or shared use of the street, and it restricted live music. A slide was shown detailing space allocation and street zones. The street will be reorganized for car-free mobility, economic vitality, and community experience. Location requirements included maintaining emergency egresses to buildings, location setbacks, use, and operator expectations. The program maintained extensions beyond establishments as previously discussed with letter of consent and written notice for tenants and building owners. California Avenue was originally designed to minimize travel and maximize sidewalks. Multiple slides showed the street, including sidewalks, travel lanes, bus bays, and medians. Sidewalk width ranged from 12 feet to 30 feet. A main concern regarding design elements was how to separate the outdoor activation areas from walking areas, with planters, railings, and sidewalls suggested. Lighting and electrical will be required. Heaters were optional and could be either radiant or propane and attached to umbrellas with proper ratings. Merchant feedback included equity in outdoor dining areas, enabling long-term investment and aesthetic improvements, addressing whether overhead shelters worked for year-round dining, allowing choice in design materials for individual business look, and an interest in permanent structures. A slide depicted 3 pictures for context consideration, and other slides showed the layout if existing outdoor activation layouts were applied. Assistant to the City Manager Fukuji said 80 percent of the street will have outdoor activation or dining on one or both sides. Options included identifying locations that can avoid utilities, utilizing tents during winter months with a time-of-year restriction through an annual permitting process, or having location-dependent structures. The encroachment permit was renewed annually and allowed extension beyond establishments. The program talked about failure to maintain, precautions around utility maintenance and public safety, and removal. SUMMARY MINUTES Page 11 of 19 Sp. City Council Meeting Summary Minutes: 06/17/2025 Public Comment: 1. Charlie W. with the Palo Alto Chamber of Commerce appreciated the work done and allowance for community engagement but reported concerns from businesses regarding the current guidelines. Charlie W. opined the plan fell short in supporting outdoor dining in inclement weather such as rain, cold, and extreme heat due to the prohibition of permanent roof structures. Businesses were concerned about investments already made into current structures and the costs required with the new plan. Charlie W. believed approving the new plan would risk patronage during inclement weather and reduce revenue. Charlie W. suggested Council support businesses willing to install semi- permanent or permanent roof structures. 2. Bridget A. felt the ban on permanent outdoor roof structures did not support businesses and that relying on umbrellas was not a practical or sustainable solution. Bridget A. opined that discouraging patrons during times of inclement weather combined with unpredictable staff hours would negatively impact revenue and long-term viability. Bridget A. thought requiring all dining areas to be bordered by planters would dull business creativity and the Avenue’s character. Bridget A. noted many establishments had already made significant investments in outdoor dining and the additional cost to transition within a short timeframe could threaten continued success. Bridget A. urged Council to consider more flexible options that support economic stability and cited the Parklet Program in Redwood City as an example. Bridget A. suggested dialogue with the ARB to develop a strategy that ensures year-round outdoor dining. 3. Berry H., the CEO of Gamelandia on California Avenue, expressed support in allowing restaurants within the California Avenue street closure to build permanent outdoor dining structures that enable year-round use. Berry H. believed outdoor dining was essential to the vibrancy of the street, which draws people in, and that foot traffic benefits everyone including independent retailers. Permanent structures would allow for a year-round connected experience. 4. Maico C., the owner of Terun and iTalico restaurants on California Avenue, thanked Mr. Fukuji, Council, and staff for the hard work on the project. Maico C. spoke in support of allowing roof structures and felt they were necessary for year-round staffing and operations. 5. Brandon C. mentioned Monday night music on California Avenue. Brandon C. asked Council to pause the vote and reconsider other options, reiterating concerns about inclement weather and the insufficiency of umbrellas. Brandon C. expressed support for permanent parklet structures and cited Redwood City and Downtown Palo Alto as successful examples. 6. Saalick, with Zareen’s restaurant on California Avenue, listed the drawbacks of umbrellas, including a lack of protection against rain, propensity to tear or fade, SUMMARY MINUTES Page 12 of 19 Sp. City Council Meeting Summary Minutes: 06/17/2025 vulnerability to vandalism, and thin materials. Saalick opined that umbrellas weather fast and could negatively impact the street’s aesthetic appeal. Cities like Berkeley and San Francisco managed utility and gas line access by building around those areas or by building a deck with a permanent structure on top. Agreements could be made to temporarily close an area to allow gas or utility access. Saalick proposed the solution was to allow businesses to choose. Saalick mentioned that Zareen’s had 15,000 people come to California Avenue weekly. 7. Zareen mentioned working with an architect to design a parklet that would allow guests to dine outdoors while raining. Zareen opined that umbrellas would not be sustainable or comfortable for patrons. Zareen hoped City Council and staff were willing to find a solution that works for everyone. 8. Malek, owner of La Boheme on California Avenue, felt umbrellas were not safe, did not hold up, and did not offer protection from the sun or inclement weather. Malek had invested in gazebos that were secure, weather-resistant, and approved by the Fire Department. All rules were followed, safety measures were respected, and City fees were paid. Malek spent $10,000 on the gazebos and $2,000 on propane and permits and could not afford the additional expense to tear down and rebuild, which would mean having to close the outdoor dining space and lay off 3 to 4 employees. 9. Kent W., a resident living 2 blocks from California Avenue, was concerned about the safety of umbrellas. Kent W. had witnessed umbrellas with 95-pound metal bases be lifted and moved 10 feet. Kent W. had seen a cantilever umbrella with a 550-pound base lift and tilt backward, resulting in a heater tipping over. Kent W. had not seen anything that ensured umbrellas would be immune from wind except bolting to the ground. 10. Peter B. served on the Architectural Review Board’s special committee, which was formed at the request of several Council Members to provide input on the California Avenue redevelopment project. The ARB was instrumental in helping the City draft recently enacted parklet design guidelines, in effect for University Avenue and Ramona Street. Design consultants did not involve ARB in the design process despite repeated efforts to participate. Neither the ARB nor the special committee reviewed the guidelines presented this evening. Peter B. felt the proposed guidelines were too generic and missed the character and opportunity of California Avenue. Peter B. opined the proposed parklet construction standards were overly restrictive and contradictory to current standards in place at other parts of the City. The City, staff, ARB, Public Works engineers, local restauranteurs and merchants, and involved citizens had collaborated to produce a document that was specific, applicant-friendly, enforceable, and balanced community aesthetic protections with individual design flexibility. Those standards applied to the pedestrian-only portions of Ramona Street and University Avenue. Peter B. questioned if California Avenue parklets needed different regulations. SUMMARY MINUTES Page 13 of 19 Sp. City Council Meeting Summary Minutes: 06/17/2025 11. Osma D. served on the ARB as Chair and Vice Chair and served on the sub-committee reviewing California Avenue. Osma D. felt the current plan for structures encouraged temporary use and was uncommitted to a thriving, permanent car-free street. Osma D. opined businesses should be given more leeway in expression and recommended altering the guidelines to allow for more permanent structures in tune with parklet guidelines. Osma D. suggested the City put in effort to make the issue of utilities, including the gas line issue and overhead electrical connections, easier for tenants. 12. Mark S. noted a 2022 staff proposal for a well-marked and upgraded bike path, which Council approved in 2023 with a speed limit, and was concerned Council may reverse that direction. Mark S. cited the City’s Safe Streets for All Safety Action Plan, noting a lack of discussion around the danger bikes pose to pedestrians. Closing California Avenue to cars resulted in Cambridge Avenue having a lot of new traffic. Mark S. felt moving bikes to Cambridge Avenue would be dangerous for cyclists. Fast, throttle- activated e-bikes were illegal under state law AB 1909. Mark S. urged Council to implement a design for California Avenue that accommodates bicyclists. 13. Zafarali A., a resident who read of the Agenda Item on the news, was happy to know a 2-way slow bike lane will be part of the plan and that bike access will be maintained to one of the safest streets for bikes in Palo Alto. Zafarali A. supported California Avenue restaurants having individual creative choice for outdoor dining and felt that umbrellas were not a one-size-fits-all solution. Zafarali A. appreciated the diversity of outdoor dining structures and encouraged Council to maintain that diversity. Councilmember Reckdahl endorsed the plan overall but felt there was room for improvement. Councilmember Reckdahl wanted a polished look with no walls on the parklets, either having the area open or using transparent panels to give an open feel. Merchant concerns regarding umbrellas included a lack of protection, fading, and limiting the size of heaters on top. Merchants were concerned planters would look bad without proper maintenance. Councilmember Reckdahl wanted to change planters from being required to being encouraged. Councilmember Reckdahl felt if merchants wanted to design a high-end, durable structure, it should be accommodated and more flexibility should be given regarding the timetable, which currently has structures being removed by November. Councilmember Reckdahl wanted merchants to take the time to build something right. Councilmember Reckdahl noted merchants did not like it when California Avenue first closed because pedestrians did not walk along the sidewalks to window shop. Councilmember Reckdahl emphasized having the primary walking path be on the sidewalk and the secondary walking path along the center with bikes allowed. Bike paths in Berkeley were made with rough surfaces that caused bicyclists to slow down. Councilmember Reckdahl felt pedestrian safety was very important but there were potential solutions and bikes did not need to be banned entirely. Councilmember Reckdahl asked if amplified music would be prohibited as per Page 251 of the staff report packet, noting that low volume amplified music was successful on California Avenue. Councilmember Reckdahl felt good signage was important but worried sandwich SUMMARY MINUTES Page 14 of 19 Sp. City Council Meeting Summary Minutes: 06/17/2025 boards would look cluttered and suggested referring the issue to the ARB. Councilmember Reckdahl said there will be overhead electric wires going from restaurants to the parklets to prevent digging up the sidewalks and proposed referring that to the ARB. Councilmember Reckdahl referenced Packet Page 198, saying that Entertainment Zones were very popular in the Bay Area and wanted to investigate the possibility of California Avenue being an Entertainment Zone. Councilmember Reckdahl felt public restrooms were necessary due to the farmers markets, 3rdThursdays, and potential overflow from small restaurants; suggested locations included near the intersection of El Camino or near Birch Street. Councilmember Reckdahl opined placing public restrooms near the parking ramps in the back was too removed and posed security and convenience issues. Feedback on public restrooms was invited. Assistant to the City Manager Fukuji said an errata sheet was being worked on and the text on Page 251 prohibiting amplified music will be removed. Councilmember Lythcott-Haims felt the challenge in transforming a road to a car-free street was being constrained by its former use and encouraged Council to think beyond that. Councilmember Lythcott-Haims was interested in permanent structures and agreed umbrellas might not serve the intended purposes during inclement weather. Councilmember Lythcott- Haims wanted colleagues to know that the Retail Committee was not given a presentation that explained the desire for permanent structures and therefore was not fully considered. Councilmember Lythcott-Haims acknowledged the input of the community and believed the most compelling reason to support permanent structures was to enable year-round dining despite inclement weather. Councilmember Lythcott-Haims clarified the open container reference in the staff recommendation was not limited to 3rdThursday. Staff was asked to expand the open container resolution that had expired or pursue an Entertainment Zone to allow open containers every night. Councilmember Lythcott-Haims thought the teal and royal blue planters looked nice but asked about the orange plastic barriers. Councilmember Lythcott- Haims had looked at wayfinding signage options during a study session and asked when Council will have the opportunity to approve a particular concept and what the installation timeline was. Assistant to the City Manager Fukuji said the orange bollards were supposed to come down but extra keys were needed so that all department staff could get access. Contractor work was delayed, which included putting in embedment sleeves so the removable bollards have a place to be located when taken out. Assistant to the City Manager Fukuji was willing to talk with staff about getting retractable bollards. A plan had not been put together to implement wayfinding signage and a capital improvement program would be needed. Cost estimating work would have to be done to put a plan together. Councilmember Burt felt the outdoor dining and music scene on California Avenue was successful and wanted to improve it with aesthetics and safety. Councilmember Burt invited comments from colleagues about the proposal to significantly reduce the amount of outdoor dining, feeling it went the wrong direction. Council had given guidance on year-round outdoor dining and wanted the process to move expeditiously so restaurants that were ready to invest SUMMARY MINUTES Page 15 of 19 Sp. City Council Meeting Summary Minutes: 06/17/2025 could do so. Councilmember Burt liked the concept of Redwood City where the ARB came up with 3 standard designs that allowed quick approval but accommodated a process for restaurants with a custom design to present to the ARB. Councilmember Burt embraced the input of the ARB on a number of issues including utility access. Councilmember Burt wanted the guidance to provide utility access where needed but felt it did not need to be simple because access would be infrequent. Councilmember Burt asked about the fire code requirements and the maximum size for parklets without sprinklers. Councilmember Burt felt 350 square feet was constraining and suggested 2 standards based on whether flammable materials were used. Pergolas were mentioned as a possibility that allowed for quick variation and weather protection. Councilmember Burt felt permanent structures were tied to having the ability to do proper heating. Radiant heating was encouraged over propane. Councilmember Burt suggested the ARB look at different border designs. Assistant to the City Manager Fukuji confirmed the Palo Alto Municipal Code stated fire sprinklers were required for all occupancies with exception for nonresidential occupancies that were less than 350 square feet. Mayor Lauing said the success of California Avenue was why Council wanted to make it permanent. The restauranteurs and customers wanted year-round outdoor dining. Mayor Lauing opined umbrellas do not work in that environment. Mayor Lauing felt standardization was off base. Mayor Lauing wondered if creating new guidelines was redundant when parklet guidelines were in place for University Avenue and Ramona Street. Mayor Lauing did not want to reduce seating from 880 to 734, and thought a separate discussion on fees was needed. Councilmember Lu wanted to allow more time to transition. Councilmember Lu thought permanent structures made sense and should be brought to the ARB. Councilmember Lu considered being more liberal in allocating street space, referencing certain setbacks that may not make sense, such as street trees. Councilmember Lu agreed walls and barriers should be minimal and wanted to revisit the fire sprinkler issue. Councilmember Lu felt permanent structures could be more loosely defined to include things like no concrete and relative ease in movement for utilities, and that merchants should get to choose whether to accept the risk that utility work, repaving the road, or redesigning the road may impact parklets. Artistic parklets were encouraged. Councilmember Lu suggested locating a public restroom along the surface parking lot on the back side or building one into an existing parking structure with potential to rethink how the space is used in the future. Councilmember Lu was in favor of an Entertainment Zone and felt it could attract experiential businesses like tasting rooms. Councilmember Lu wanted to permit bikes on California Avenue but advance designs that controlled them. Vice Mayor Veenker agreed with most of what had been expressed and was intrigued about public restrooms being in parking lots. Vice Mayor Veenker wanted to extend open containers beyond 3rdThursdays. Vice Mayor Veenker agreed that boundary elements needed to be open but asked how that fit with the concern over protection from the weather. Vice Mayor Veenker noted that some bicyclists rode to a destination on California Avenue while others were SUMMARY MINUTES Page 16 of 19 Sp. City Council Meeting Summary Minutes: 06/17/2025 commuters passing through. Some mechanisms to ensure safety could include texturizing the surface or making the lane not straight. Vice Mayor Veenker proposed exploring an alternate route for commuters on Cambridge Avenue or Sherman Avenue despite the challenges. Assistant to the City Manager Fukuji noted there was interest in keeping the street open to preserve transparency and a need to address weather issues, which posed a challenge. Other potential solutions would be brought to Council. City Manager Shikada acknowledged Chief Transportation Official Lo and the Police Chief were discussing options and will require focused coordination. Councilmember Burt said last year Council gave direction to promote Cambridge Avenue as a safer through route for bikes and California Avenue as a destination. Councilmember Burt felt Council needed to act with at least modest measures including signage and a slow bike speed limit. Cambridge Avenue crosses El Camino with a signal but Sherman Avenue does not. Councilmember Burt asked for more information regarding the surface treatments Berkeley implemented. Councilmember Burt reiterated umbrellas were not adequate weather protection to justify remaining open in the winter with staff continuity. Councilmember Burt was interested in broader open containers. The hardware store on California Avenue could make keys for the bollards. Councilmember Burt challenged staff to get things done more expeditiously as merchants were excited about permanence. The staff report framed fees as a discount from indoor square footage. Councilmember Burt felt that was a mis-framing and that the Downtown fee structure was right. Assistant to the City Manager Fukuji said Berkeley did not intentionally add surface treatments to slow cyclists but it was the result of improvements wearing unevenly over time. Mayor Lauing noted 2 sections of fees, application and deposit fees and fees for renting City space. Mayor Lauing believed they were 2 decision sets but City staff wanted both decisions tonight, referencing the Packet Page 194. The Retail Committee recommended Council keep the application fee. The limited outdoor space was in high demand and had value to the retailer. Mayor Lauing said a 500 square foot parklet would cost $1,200 a month and felt that was reasonable given the required City maintenance of the area was going up. City Manager Shikada said the fees were seen as a whole but was willing to discuss disaggregating them. Assistant City Manager Nose confirmed the schedule of fees was for the program. The application fees were standard, associated with the review time needed, and consistent with all other parklet programs. The license fee could be considered different because it was more flexible and the conditions on California Avenue were different. Councilmember Reckdahl asked how much sales tax was generated per square foot and wondered if it was more than rent. If so, Councilmember Reckdahl opined lowering the rent to encourage more parklets to increase sales tax revenue. SUMMARY MINUTES Page 17 of 19 Sp. City Council Meeting Summary Minutes: 06/17/2025 Councilmember Burt mentioned the established license fee for Downtown was $10.71 per square foot and asked why it was more for California Avenue. Councilmember Burt said customers would have access to restaurant bathrooms and that public restrooms were needed for non-restaurant customers, like on 3rdThursdays and farmers markets. Councilmember Burt had not observed overcapacity in restaurant bathrooms. City Manager Shikada said the rent was higher for California Avenue because of the expected expense associated with public restrooms, which was identified as an ongoing expense unless another funding method could be identified. The rationale was that the additional dining space represented in the street was above the capacity provided by restaurant bathrooms and noted a direct correlation to the plumbing code. City Manager Shikada cited anecdotal evidence suggesting restrooms were over capacity. Councilmember Lu agreed that more bathroom space was not needed and felt a few stalls in a parking lot would be sufficient. Other costs could include the need for increased cleanliness and regular traffic enforcement, especially with a more liberal stance on open containers. Councilmember Lu suggested semi-regular cleaning and police presence and thought that was a reasonable argument to charge above the $10.71 per square foot. Councilmember Lu proposed starting at $10.71 with the understanding that it could go up depending on the cost of services. Mayor Lauing asked if the amount had to be decided that evening. The requested 3-part motion was on Page 189. City Manager Shikada confirmed the desire to approve the fee schedule tonight. The City’s responsibility was to address unintended consequences, which included functionality of plumbing, safety of electrical systems, life safety access, emergency response ability, and health issues around rodent control, which was increasing as a result of outdoor dining. Ongoing outreach with FOG staff discussing secondary containment was necessary due to increased food preparation in these areas. The City supported working with restauranteurs to find solutions. Chief Building Official George Hoyt thought it was important to consider the increase in dining and the use on the existing restaurant infrastructure for restroom and other capacities. Outdoor restroom structures would require permits and must follow the California Building Code as adopted which would include plumbing, safety, and distance from other buildings. Councilmember Burt appreciated the code requirements and felt the City could build off of the Downtown requirements. MOTION: Councilmember Burt moved, seconded by Councilmember Lythcott-Haims to: 1. Adopt a Resolution allowing dining and retail encroachments on Car Free California Avenue under existing PAMC Ch. 12.11 (Parklets) Attachment B; SUMMARY MINUTES Page 18 of 19 Sp. City Council Meeting Summary Minutes: 06/17/2025 2. Adopt a Resolution to allow open containers in conjunction with the 3rdThursday music performances in 2025 (Attachment C); 3. Refer to staff a review expanding the open container resolution to an Entertainment Zone beyond 3rdThursday; Fees: 4. Set program fees (application fee, renewal fee, license fee for use of the public right-of- way, and deposit) in alignment with the existing Ongoing Parklet Program as recommended in the FY 2026 Municipal Fee Schedule (scheduled for Council adoption on June 16); Parklets: 5. Direct staff to pursue standards for parklet structures; and a. Utilize the Architecture Review Board (ARB) for design recommendations and prospective processes for standard versus custom designs. b. Pursue edge materials in addition to planters – intended to go to ARB. c. Look at a street design that would allow for outdoor seating amounts and square footage close to or at the current amount that exists on California Avenue. Biking: 6. Reaffirm the interest in supporting Cambridge Avenue as a route for through biking a. Move forward with signage and other calming measures to reduce bike speeds on California Avenue. Councilmember Lu was concerned about the viability of Cambridge Avenue as the faster bike route. Councilmember Burt asked if the permanent parklet structure wording was clear enough to express the range of what Council was seeking and asked what alternative wording would be. City Manager Shikada was concerned about using the word “permanent” and suggested “ongoing” or “longer-term.” Mayor Lauing wanted to confirm the understanding was to look at structures, side windows, and roofs which could include structures that already exist or partially exist. SUMMARY MINUTES Page 19 of 19 Sp. City Council Meeting Summary Minutes: 06/17/2025 Assistant to the City Manager Fukuji confirmed the understanding of all-year weather solutions that were visible and transparent. Assistant to the City Manager Fukuji stated solutions could come in the form of guidance, standards, or preapproved plans. Councilmember Lythcott-Haims wondered if the program that offered 3 options for business owners to adopt and implement and had an option for customization could be included under 5a. Councilmember Lythcott-Haims emphasized the desire to allow a custom option. City Manager Shikada referenced preapproved parklet designs that have been established and used in Palo Alto and did not think it was necessary to specify the means through which a possible solution may be achieved. MOTION PASSED: 6-0-1, Stone absent Adjournment: The meeting was adjourned at 9:45 P.M.