Loading...
HomeMy WebLinkAbout2025-09-08 City Council Summary MinutesCITY COUNCIL SUMMARY MINUTES Page 1 of 24 Regular Meeting September 8, 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, Stone, Veenker Present Remotely: None Absent: None Call to Order Mayor Lauing called the meeting to order. The clerk called roll and declared all were present. Agenda Changes, Additions and Deletions City Manager Ed Shikada noted an amended agenda was issued. Item 1 has been deferred and will be heard on September 15. Public Comment 1. Ken H. discussed September being National Suicide Prevention Awareness Month. He understands that funds have been allocated and a contract is being worked on for The Jed Foundation, and he requests it be presented to Council ASAP. 2. Mele T. spoke of the positive role pickleball has played in her family’s life and the courts at Mitchell Park strengthening community belonging. 3. Sven T. addressed the dangers of natural gas and propane stoves and promoted induction stoves. He will work with the UAL and the Utility to try to put something together for the next year. 4. Eric N. invited Council and the public to Bike Palo Alto on Sunday October 5 from 1 to 3 p.m. at Fairmeadow Elementary School. Visit bikepaloalto.org to preregister for the free SUMMARY MINUTES Page 2 of 24 City Council Meeting Summary Minutes: 09/08/2025 event or if interested in volunteering. He provided fliers for those attending the meeting. 5. Roger S. announced there are 3 vacancies each on the HRC, the PAC, and the PRC and asked folks to apply. The deadline is September 24. There is an article in the Palo Alto Weekly concerning campers being rented, which he requested be addressed. He thanked Council for their work and noted they each need aides. Council Member Questions, Comments and Announcements Mayor Lauing commented that he met with a number of mayors around the country this week. Senator Warren wants to present Palo Alto with the bipartisan Road to Housing Bill. There had been a press conference and community forum on September 4 where he announced that the City now has an operative Grade Safety Committee, which includes Councilmembers Burt, Lythcott-Haims, and Stone. The Caltrain Project is funded, which he recommended Councilmember Burt share more information on. Councilmember Burt voiced that Caltrain has an initiative to provide corridor wide best practices for safety and security, which includes fencing, bollards, delineators, markings, and refined Google Maps. A RailSentry security program has been installed at Churchill. The next step is an anti-intrusion mat. The challenge is getting it at Charleston, Meadow, and Palo Alto Avenue quickly. Caltrain’s staff, safety officer, and CEO and VTA’s CEO want to help. VTA has come forward with funding for Caltrain. It is hoped that it will all be installed before the end of the year. Late last week, the Metropolitan Transportation Commission leadership toured key transit locations of Santa Clara County. It was emphasized that the Palo Alto University Avenue station has the second highest boardings of the entire Caltrain corridor despite being the, he thinks, sixth largest populated city, and they were impressed with Palo Alto’s approach to drive transit. There will be an urgent sales tax measure on the November ballot to try to fill a fraction of the dollars the county is seeing cut as a result of federal budget cuts. SB 63 for a needed regional half cent sales tax to support all the transit agencies will be on the November 2026 ballot. Councilmember Stone mentioned that the CAO Committee will meet tomorrow to discuss the recruitment process for a new City attorney. The meeting will be open to the public in Council chambers and on Zoom. Comments will also be accepted via email to the CAO Committee or the full Council. September is National Suicide Prevention Month, and September 10 is World Suicide Prevention Day. He had attended a community meeting on the topic yesterday. He encouraged all to look into the vast resources provided by the City, local nonprofits, and school partners. There will be a City/Schools Committee meeting on September 11 at City Hall. Those in a crisis may call or text 988 to speak to confidential counselors 24/7. Councilmember Lythcott-Haims discussed attending a meeting on August 26 concerning RV dwellers in the community. The RV dwellers want to root out the bad actors. The Palo Alto SUMMARY MINUTES Page 3 of 24 City Council Meeting Summary Minutes: 09/08/2025 Weekly published an article explaining the complexities at work. She discussed a crisis at Stanford Hospital the same day that involved ICE. There is opportunity to address protocols and procedures. She is delighted to serve on the Rail Grade Safety Committee Ad Hoc. There are Track Watch volunteers, which the City is supporting with vests and flashlights and ensuring they know about safety training. She has seen support for the LGBT youth and the broader community at risk of suicide. She is the liaison to the PRC and stated the City has to work through the demand for tennis versus pickleball courts. Vice Mayor Veenker noted there will be a backgrounding session on September 29 related to the county measure coming up on the ballot. County officials will discuss the budget concerns. Contact her for a Measure A button or to sign up to walk. The Policy and Services Committee meeting had a robust discussion concerning RV dwellers, and there will be a full Council meeting to address recommendations on October 6. The vice mayors in Santa Clara and San Mateo counties had an informal gathering, which was a learning discussion, and she hopes it will continue. Study Session 1. 414 California Avenue [25PLN-00140]. Request for Council Prescreening to Rezone the Subject Property from Community Commercial (2) (CC[2]) to Planned Community/Planned Home Zoning and to Allow Construction of a Mixed-Use Building with 37 Units in a Six-Story Structure on a 16,231-Square-Foot (0.37 Acre) Site. CEQA Status: Not a Project. Item Removed Off Agenda (Rescheduled for September 15, 2025 City Council Meeting) 2. San Francisquito Creek Joint Powers Authority Update on Reach 2 Flood Control Project NO ACTION Councilmember Stone, Palo Alto’s representative to the SFCJPA and Chair of the Board, stated he and Margaret Bruce, Executive Director of SFCJPA, have been making rounds to the five member agencies providing updates on the JPA’s work, seeking to raise awareness of the Reach 2 Project, and requesting feedback from community and elected leaders. He provided a background of the JPA. Beyond property damage and economic loss, flooding is a public safety risk. The JPA’s responsibility is to ensure that the communities do not face flooding danger without robust protections in place. The JPA has worked to plan, design, and secure funding for flood risk reduction projects. The Reach 2 project will stretch from the Pope-Chaucer bridge through East Palo Alto. The goal is to provide protection up to the flood of record, which is equivalent to the 1998 event. The project seeks to balance flood protection with enhancements to the creek habitat, preservation of trees where feasible, and new opportunities for recreation along the corridor. In the months ahead, several key studies and evaluations of alternatives will be advanced, including widening portions of the channel, addressing pinch points, replacing or modifying bridges, and exploring innovation measures, such as bypass tunnels and passive SUMMARY MINUTES Page 4 of 24 City Council Meeting Summary Minutes: 09/08/2025 flood barriers. The intent is to break up the Reach 2 Project over 2 phases. Next steps include completing the alternatives evaluation report and selecting the full suite of project components and then moving into detailed design, permitting, and a cost-sharing framework for the 5 agencies. Executive Director SFCJPA Margaret Bruce displayed slides. She spoke of the problem with flooding on the San Francisquito Creek. She outlined the flow within the creek channel that the project aims to address. The Santa Clara Valley Water District hydrologic model used as the basis for the project design did not anticipate flooding at the capacity flow actually experienced, and there is about 25 percent less capacity in the channel than originally thought. A refined model is being used to evaluate designs previously done, validate designs, and upscale what needs to be done. It is a large project. They are mindful that it is a steelhead stream and a riparian corridor, and the goal is to maintain and improve as much of that as possible. WRA, Inc., has been retained to evaluate the updated hydrology and recommend potential project scenarios that will meet the project’s capacity goal. WRA presented 4 alternative scenarios. Floodwalls are necessary. She provided details of the different scenarios. Additional technical feasibility studies are being explored. Judicious widening in some places may be less costly and hopefully effective. A preferred alternative has not been determined. A potential additional study is for a bypass tunnel. A very preliminary feasibility study is being done, and whether a bypass tunnel may be applicable will probably be known in a couple months. If feasible, it will not replace the need for floodwalls but may minimize their size. No one project element will address the capacity need. It will be a patchwork of interconnected mutually beneficial project elements to support an overall project design. A couple segments of the project could be done early if the JPA decides to do it in pieces. Phase 1 would widen and replace the top-of-bank temporary floodwall at University and Woodland and would cost about $20M. It is a keystone piece for the overall project before other work can happen. The second part will require a supplemental EIR for the floodwalls to extend on the top of the bank and then replace the Pope-Chaucer bridge, which will cost about $100M. The $20M to $25M plus $100M are rough order of magnitude numbers and will change and become more refined as the project design proceeds. Community members have expressed concerns about floodwalls, and hard choices and compromises will need to be made. However, they are eager to look at all possible flood protection technologies that have not yet been explored to be respectful of tree protection and public access. Some community members are experiencing impacts of homeless encampments and illegal dumping encouraged by certain kinds of project designs. They are not at a level of detail in the project design to be sensitive to those concerns, but they will be. She discussed channel widening and a no-regrets option, which will not transfer risk, so work needs to be phased to not cause trouble somewhere else. Widening in key locations is beneficial and validated. The project needs to be expanded to encompass the Middlefield Road bridge. In the future, the JPA Board will adopt a project alternative that meets project goals. It is anticipated that the decision will be made by the end of this calendar year. There is not yet specific design detail, but the Reach 2 Project elements will include widening, which will most easily be accomplished on the north side of the creek, so private property easements will not be needed; replacing the temporary floodwall; implementing floodwalls, likely with a mixed set of designs; and replacing the Pope-Chaucer bridge. The current activities include the bypass tunnel study SUMMARY MINUTES Page 5 of 24 City Council Meeting Summary Minutes: 09/08/2025 and looking at passive permanent barriers and resolving questions about project elements. The current plan is for a final alternatives evaluation report by the end of this calendar year, including results of preliminary feasibility studies of the bypass tunnel, and Board selection of a project alternative will happen soon after that. Reach 2 Project activities planned for what is considered the current year fiscal year’s capital budget include finalization of the alternatives evaluation study, a bypass study, partnership with the US Army Corps of Engineers CAP 205 for some of the widening, engineering 30- and 60-percent design for Phase 1 project elements, incorporation of the Middlefield Road bridge area into the overall project scope, completing permitting for Phase 1 action if the Board decides on the phased approach, an arborist survey, initiating a supplemental EIR for the remainder of the activities not included in the current certified EIR, project-related community outreach, and project funding scenario discussions. Scheduling implementation construction will aim for this time next year. Members meet on a regular basis, and this is a standing agenda item, and dumping, public safety, and other environmental issues are discussed. In the fall, they will work with Palo Alto’s Fire Chief to do the annual tabletop exercise for the Multiagency Coordination Committee. Vice Mayor Veenker addressed Slide 5 and asked if the left bank is the north side of the Menlo Park side. Executive Director Bruce confirmed that is correct. Councilmember Burt inquired if the considered floodwalls are concrete or earth and berm and if the capacity of the Middlefield Bridge is a concern or if there is a weak spot upstream from Middlefield. Executive Director Bruce answered that the considered floodwalls are potentially earth and berm, soldier pile, sheet pile, and construction methods not yet explored. They are attentive to community members’ concerns about aesthetics and effectiveness. She thinks the Middlefield bridge capacity is almost identical to the Pope-Chaucer bridge, but it does not pop out as much as upstream of the Pope-Chaucer bridge. In modeling, there is a little breakout upstream of the Middlefield Road bridge, so a small earth and berm or guardrail sized floodwall would mitigate the breakout. Councilmember Burt understood that the Middlefield bridge has greater capacity than Pope- Chaucer, which is why it is not included for replacement, but that can be investigated as a follow-up. Executive Director Bruce remarked that the modeling results may have changed with the channel’s capacity being 25 percent less than what was thought. She will set up a date for the modelers to meet with Councilmember Burt offline to show how decreased channel capacity will make that more vulnerable. Councilmember Reckdahl queried if a berm and a replacement is being considered for Middlefield. SUMMARY MINUTES Page 6 of 24 City Council Meeting Summary Minutes: 09/08/2025 Executive Director Bruce replied that just a berm upstream or whatever will be effective is being considered for Middlefield. It is not a significant overtopping. Once Pope-Chaucer is done, a berm could be added. Public Comment: 1. Jeffrey S. on behalf of 10 (presentation) (Cynthia S., Cindy W., Mohit T., DeAnna H., Dan H., Keiko M., Mike M., Nancy Y., Liza E.) discussed degradation of the creek habitat due to homeless encampments. The report by staff from various agencies who meet regularly to discuss the homeless situation should address chronic encampments in the creek and the access from the San Mateo County side. The draft report does not appear to address deterring encampments in the gap between the floodwalls and private fences. He stated that channel widening structures could involve excavating sloped creekbanks in certain areas, which will transform them into unscalable 12- to 15-foot vertical sheet pile retaining walls, which will deter encampment access, although he does not find that creek access outside or between the channel widening sites will be limited. To achieve the dual objectives of flood safety and enhanced habitat, he suggested the JPA consider benchmarking successful implementations of unobtrusive, perhaps dual-purpose barriers that limit creek access, which would deter creek side homeless encampments. 2. Thomas R. voiced his full support for the WRA preferred alternative for increasing flood protection. The project is complex and expensive but promising. This project will protect those along the creek to the 1998 flood level. He will send additional comments to Council. 3. Hamilton H. commented that he supports the project, which will remove a very large concrete wall and steps inside the creek, help restore natural habitat, and create recreational trails. 4. Aram J. (Zoom) suggested there be shelters along the creek for the unhoused population. Councilmember Reckdahl queried if replacing the floodwall by University will include removing the concrete terrace, if it is feasible to divert floodwater into Lake Lagunita, if the tunnel is feasible, and if the concrete terrace could be removed before replacing Newell Road bridge. Executive Director Bruce responded that removing the concrete terrace is a high priority, which is an opportunity to improve the creek and the bankside habitats. The wooden floodwall along University Avenue is also part of Phase 1. It is not feasible to divert floodwater into Lake Lagunita. The tunnel is a longshot but worth considering to ensure that due diligence is done. Newell Road bridge should be replaced before removing the concrete terrace. Vice Mayor Veenker questioned if Phase 1 might be completed by the end of the calendar year, if they are comfortable with the funding being located and worked out by the end of the fiscal SUMMARY MINUTES Page 7 of 24 City Council Meeting Summary Minutes: 09/08/2025 year, and once there are permits and implementation begins how long the process will take to complete. Executive Director Bruce answered that if everything goes to plan by the end of the fiscal year, they may be in a position to begin construction the following year (2027). Construction can only be done between June and October. A funding plan needs to be in place, so questions about how to do this will come before the JPA Board. If the Board is comfortable with the scope being known but not quite the dollar amount, a phased approach could begin. She is optimistic that the funding will be located and worked out by the end of the fiscal year. They have a grant fund from the Department of Water Resources of about $8.5M, which they want used by the end of calendar year 2028, so she is eager to get moving. Once there are permits and implementation begins, it could be done in 2 construction seasons. The locations downstream and upstream of University Avenue bridge could be done concurrently, but it would create traffic havoc, so that sequencing of construction should be closely coordinated. It will be an impactful and intrusive project. Vice Mayor Veenker understands that if no unexpected hurdles are encountered this could be done in 2029. She asked if the parallel analysis of the tunnels will slow this down and if there would be one long tunnel or little tunnels around the barriers where needed. Executive Director Bruce answered that the parallel analysis of the tunnels will not slow anything down. She is optimistic that the study will provide information that will allow for a clear decision but not optimistic that tunnels will be cost effective or useful. There would be one long, multi-phased tunnel across Palo Alto from upstream of Middlefield to the bay or to downstream of Newell where the channel has more capacity. Councilmember Lu asked if strategically located permanent passive flood barriers are being studied but not expected to be a viable solution. Executive Director Bruce replied that permanent passive flood barriers are probably most applicable in very key locations, such as protecting an intersection or public safety access to a creek channel. They can be helpful. They want to look at all possible floodwall applications in their most appropriate locations and utilizations. Councilmember Lu inquired if strategically located permanent passive flood barriers would be more likely than a bypass tunnel and be considered for specific locations, which could be cleanly slotted into later phases of the project; how funding this piece by piece rather than scoping out the total cost for the whole project would work; if there have been discussions about the cost share among cities; and if the funding spread that was used for Reach 1 could be used as a model for Reach 2. Executive Director Bruce responded that strategically located permanent passive flood barriers could be slotted into a floodwall application but a floodwall might need tinkering to ensure it addresses other community and project needs. It would be decided whether it could be used instead of something else. She explained the process of costing out the Phase 1 portion and SUMMARY MINUTES Page 8 of 24 City Council Meeting Summary Minutes: 09/08/2025 then the second larger portion. Different funding opportunities should be considered. There have been discussions about the cost share among cities only at the highest hypothetical level. A good place to start as a basis for apportionment may be to take into account the number of parcels impacted by flooding for each community but not the only factor to consider. She thinks the majority of the Reach 1 project was funded by the Santa Clara Valley Water District and then Measure B funds and that it is not exactly available for Reach 2. There are funds from Valley Water available but not at that scale. Councilmember Burt expressed that he endorses segmenting, but given that there are funding challenges, as much as can be done should be done ASAP. Aiming for the Master Plan could stall getting to a point of improvement. He spoke of work that has been done that has reduced the flood risk. He encouraged JPA staff to engage with community stakeholders. He queried if there have been meetings with Jeff Koseff and [unknown] who are water experts in civil engineering. He supports floodwalls being 1½ to 3 feet. He encourages collaboration with partners as had been done with Reach 1. Regarding upstream, the plan is to replace the Searsville Dam. He does not think the timeline Executive Director Bruce outlined is possible, and he wants to be realistic to avoid making the wrong decisions. Concerning funding, he wants to work step by step to get as much progress as possible. Executive Director Bruce answered that they have met with Jeff Koseff and [unknown] and requested they review the WRA report. Mayor Lauing remarked that he desires using available funding to do what can be done. He does not support waiting for the Master Plan. Consent Calendar 3. Approval of Minutes from August 11 and August 18, 2025 Meetings 4. Adoption of an Ordinance Amending the Fiscal Year 2026 Municipal Fee Schedule to Reflect Council-Directed Changes to Existing Fees and Add a New Subsidized Fee for Stand-Alone Residential Gas, Water and Space Heating Equipment Permits. CEQA Status: Not a Project 5. Approval of Construction Contract No. C26195620 with Public Restroom Company in the Amount Not-to-Exceed $412,940 and Authorization for the City Manager or Their Designee to Negotiate and Execute Change Orders Up to a Not-to-Exceed Amount of $41,294 to Provide and Install a Modular Restroom Building at Mitchell Park for the Park Restroom Installation Capital Improvement Program Project (PG-19000); CEQA status – exempt under CEQA Guidelines Section 15303 6. Approve Amendment #1 of the Memorandum of Agreement (MOA) with the California Alternate Energy and Advanced Transportation Financing Authority (CAEATFA), to SUMMARY MINUTES Page 9 of 24 City Council Meeting Summary Minutes: 09/08/2025 Extend the Term of the Agreement from Two Years to Five Years, to Continue to Enable the Residents of Palo Alto to Participate in the GoGreen Home Energy Financing Program. 7. Authorization to Execute Amendment to Legal Services Contract S26195198 with Colantuono Highsmith & Whatley PC to Increase Amount by $205,000 for Total Not-to- Exceed Amount of $255,000; CEQA Status – Not a Project. 8. Adoption of an Emergency Ordinance Amending Palo Alto Municipal Code Chapters 16.04 (California Building Code, California Code of Regulations, Title 24, Part 2, Volumes 1 & 2), 16.05 (California Mechanical Code, California Code of Regulations, Title 24, Part 4), and 16.14 (California Green Building Standards Code, California Code of Regulations, Title 24, Part 11) to Make Non-Substantive Changes Addressing Comments from the California Building Standards Commission. CEQA Status: Exempt Pursuant to CEQA Guidelines Sections 15061(b)(3) and 15308. 9. Approval of the Purchasing Card Audit and Extension Deadline for Two FY2024 Audit Project Task Orders and Amendment of the FY2024 and FY2025 Task Order Budgets to Realign the Authorized Budgets with a Net Zero Impact, as Recommended by the Policy & Services Committee; CEQA – Not a Project 10. Approve Purchase Order S26195255 with Dasher Technologies, Utilizing a State of California Blanket Purchase Agreement, to Procure Rubrik Data Backup and Security Solution for a 3-Year Term for a Not-To-Exceed Amount of $106,933; CEQA Status – Not a Project. 11. Approval of Professional Service Contract Number C26195633 with H.T. Harvey & Associates in an Amount Not to Exceed $195,004 for Services to Manage a Wetland Remedial Mitigation Plan for a Period of 2 Years. CEQA Status – Categorically Exempt. 12. FIRST READ: Adopt an Ordinance Amending PAMC Chapter 10.56 (Special Speed Zones) to Update Speed Limit Studies for 22 Streets and Decrease the Speed Limit for a Portion of Deer Creek Road; and Approve the 2024 Traffic Survey; CEQA status – categorically exempt. 13. FIRST READING: Adoption of an Ordinance Amending Chapter 16.64 (Development Fee and In-Lieu Payment Administration) of Title 16 (Building Regulations) of the Palo Alto Municipal Code to Reflect Changes in Law. CEQA Status – Exempt under CEQA Guidelines Section 15061(b)(3). 14. SECOND READING: Ordinance Adopting the 2025 Fire Hazard Severity Zone Map Issued by the State Fire Marshal (FIRST READING: August 11, 2025 PASSED 6-0-1, Lythcott- Haims Absent) SUMMARY MINUTES Page 10 of 24 City Council Meeting Summary Minutes: 09/08/2025 15. SECOND READING: Ordinance Adding Use of Council Chambers Fees to the FY 2026 Municipal Fee Schedule (FIRST READING: August 11, 2025 PASSED 6-0-1, Lythcott-Haims absent) 16. SECOND READING: Ordinance of the Council of the City of Palo Alto Amending Chapter 2.21 (Architectural Review Board) and Chapter 2.25 (Parks and Recreation Commission) of the Palo Alto Municipal Code to Amend Procedures for Electing a Chair and Vice Chair (FIRST READING: August 11, 2025, PASSED 6-0-1, Lythcott-Haims Absent) 17. SECOND READING: Ordinance of the Council of the City of Palo Alto Restating Procedures for Expedited Permitting Processing for Electric Vehicle Charging Systems (FIRST READING: August 11, 2025 PASSED 6-0-1, Lythcott-Haims Absent) Mayor Lauing noted that Item 6 has a short supplemental memo, which includes the UAC’s 5-0 vote. Public Comment: There were no requests to speak. MOTION: Councilmember Reckdahl moved, seconded by Councilmember Lu to approve Agenda Item Numbers 3-17. MOTION PASSED: 7-0 City Manager Comments City Manager Ed Shikada furnished slides. There will be a workshop related to the South Palo Alto bike/pedestrian Caltrain crossings on September 9, and the online survey will close September 12. The item will return to Council shortly thereafter. The Downtown Streets Team will end operations in the next 60 days. Staff is working with them and other organizations to address and mitigate impacts, in particular ensuring continuation of the Downtown Food Closet, and hopefully there will be information shortly. The Opportunity Service Center is currently closed due to water damage, but field work is continuing. Staff is looking at alternative means to provide services on site and at other locations, such as the downtown library. The Annual Community Survey is available at paloalto.gov/annualcommunitysurvey. Participating in the survey does not require setting up an account. There are ongoing venues and programs for community members to participate in as it relates to youth support. Information can be found at paloalto.gov/teenservices. There is ongoing recruitment for commissions. A Rail Grade Separation Workshop will take place on September 30. The calendar of upcoming Council items has not been updated to reflect the additional dates the City Clerk announced. The 414 California Avenue item will be on September 15. The study session on managing consulting services will occur in October. The Zoning Code Amendment for de minimis exceptions and the Battery Storage Project will be addressed next week. On September SUMMARY MINUTES Page 11 of 24 City Council Meeting Summary Minutes: 09/08/2025 29, there will be a study session on the impacts of H.R. 1 and closed sessions for the CAO evaluations. There will be a number of items in October. Vice Mayor Veenker questioned, concerning the Downtown Streets Team ending operations, if there will be news prior to October 31. City Manager Shikada replied that he hopes to have news prior to October 31. The Downtown Streets Team staff is optimistic that continuity will be maintained. [Council took a 20-minute break] Action Items 18. Discuss the FY 2026 budget amendments to reduce General Fund appropriations by approximately $6.2 million as Recommended by the Finance Committee and Approve the FY 2026 Budget Amendments in Various Funds. CEQA Status - Not a Project. Chief Financial Officer Lauren Lai noted that the item is to discuss and approve the FY 2026 budget amendments. The Finance Committee recommended the amendments with additional considerations. She shared slides. The reductions relate to the General Fund and to capital improvement projects. Council had directed staff to return with budget reductions and to shore up reserves as there was a budget shortall when the budget was adopted. Staff recommends deferring specific projects. Vacant positions are being frozen. The use of contracts is being limited. Some multiyear contracts with multiple vendors are being converted to annual appropriations. As these are a set of estimates, any adjustments will return to Council in the FY 2026 midyear report in February. A table was supplied summarizing the General Fund budget and the capital budget by fiscal year, which she detailed. She discussed the slide displaying the Finance Committee’s recommendations, which included vacancy details (Attachment B), the CIP Bayland levee permitting effort, defunding a JMZ position and the revenue recovery potential and alternative staffing, potentially retaining the part-time position for the Police reserve officer, and the potential for further consultant management and savings. Staff recommends limiting the number of publications and moving toward online mailing, but the Finance Committee was concerned about revenue impacts if it shifts in that direction so it was recommended to make the change more incrementally rather than right away. Aside from that, the Finance Committee supported staff’s recommendations. She provided details concerning staff’s recommendations related to the General Fund, which includes defunding an ASD vacant division manager; defunding the filled senior management analyst position in the City Manager’s office; freezing the JMZ’s vacant program assistant position and defunding the JMZ access coordinator; rightsizing the budget for Pets In Need; discontinuing printing 4 quarterly catalogs; defunding 2 of 3 fire training positions: defunding the senior HR administrator, the benefit manager, and the vacant HR technician position for Human Resources; freezing the vacant IT manager position; freezing a Library associate position and reducing general Library expenses; reducing OES general expenses; changing the funding source for the OOT planner SUMMARY MINUTES Page 12 of 24 City Council Meeting Summary Minutes: 09/08/2025 position; one ongoing reduction and a one-time planner reduction in PDS; eliminating the Hire Ahead funding and the part-time reserve officer position and reducing general expenses for the Police Department; removing appropriations for programs that have not yet started; freezing a vacant tree trimmer position and a vacant engineer position for Public Works; and purchasing a diesel fire engine instead of a hybrid. Regarding capital projects, staff recommends reducing funding for ADA compliance; continuing the permitting effort for the Bayland levee repair; reducing the appropriation for athletic court resurfacing; reducing appropriations for benches, signage, and site amenities; deferring replacement of the Foothill Nature Preserve restrooms; reducing funding for off-road path repairs; deferring improvements for Johnson Park and the Werry Park playground; deferring the streetlight condition assessment study (not upkeep); and using Measure B LSR funding for Churchill Avenue bike and pedestrian improvements. Situations can change and information is being presented using current information. Staff requests that Council approve the budget amendments. Councilmember Burt, Finance Committee Chair, stated the Committee struggled with a few items, which are listed on Page 2 of the Staff Report. The Committee’s intention was to not entirely use the remainder of the Uncertainty Reserve in this fiscal year but to instead spread it out. The Committee recommended that the remainder of the Uncertainty Reserve be folded in to the Budget Stabilization Reserve (BSR), so there will no longer be 2 reserves. He requested a slide showing LRFF. Chief Financial Officer Lai replied that she does not have a slide showing the LRFF, but there is a paragraph in the Agenda Report showing that combining the Uncertainty Reserve and BSR would leave $2M in the Uncertainty Reserve to offset the $8M in 2027. Councilmember Burt noted that there will still be a deficit in 2027. There is no data showing how many City employees there are now compared to pre-COVID, which the Committee wanted to know. The Committee also wanted to know how reductions in the use of consultants would affect the budget, and he requested that some information related to that be presented to the Committee in the future. Mayor Lauing asked if the revenue is as expected and how much time it takes for replacement positions to take place and salaries to come into play. Chief Financial Officer Lai stated that where the City ended up last year was close to what was estimated, and nothing from last year informs differently than what is in the budget. In terms of major revenues, nothing is coming in materially more favorably. Staff continues to monitor consumer-sensitive categories, in particular sales tax. Budget gaps remain and reductions need to be made. As for salaries coming into play when replacement positions are filled, it folds into vacancy savings. The recruitment process may take 90 to 120 days, which contributes to the 5- percent vacancy assumption. Councilmember Lythcott-Haims mentioned that Council asked for a $6M reduction and staff has returned with $6.2M, so there is an additional $200K for appropriations. She does not want SUMMARY MINUTES Page 13 of 24 City Council Meeting Summary Minutes: 09/08/2025 to cut items that address the underserved community, such as the JMZ access coordinator. She inquired how much is allocated to that position and for how much of the grant interval the position has been vacant. She questioned if the City Manager senior management analyst position related to wellness and belonging is the only filled position being considered for elimination and if the person will be absorbed into a different unfilled position. Chief Financial Officer Lai replied that about $42K is allocated to the JMZ access coordinator. Community Services Director Kristen O’Kane responded that the JMZ access coordinator was a grant-funded position that has been vacant for about 2 months, and the grant money was returned. City Manager Ed Shikada confirmed that the City Manager senior management analyst position is the only filled position being considered for elimination. That person will more than likely be consolidated into another position. Vice Mayor Veenker mentioned that she is thrilled to hear that because the term layoff does not convey a good tone. She asked how much is allocated for the JMZ program assistant and requested that the revenue recovery potential be examined. She queried what the savings will be this year for decreasing the frequency of the printed Enjoy! catalog from 4 to 2. Chief Financial Officer Lai answered that a ½ FTE for the program assistant would bring in $80K to $115K and it is estimated that a full FTE would bring in $160K to $195K. The salary is about $126K. The adopted budget includes $215K revenue, and staff is concerned about increasing that. Eliminating the Enjoy! catalog in 2027 will save $65K. She estimates that going from 4 to 2 catalogs in 2026 will save about $25K or $30K. Budget Manager Paul Harper added that the itemized costs are in Attachment A. Concerning the Enjoy! catalog, the savings in 2026 will be $60K and the ongoing savings would be $80K. Councilmember Reckdahl spoke of public outreach being a critical part of the JMZ mission and cutting the position being an impact. He questioned what the loss would be with Lucie Stern transferring time to the JMZ. Director O’Kane answered that the Program Assistant 1 at Lucie Stern does similar duties, and it is anticipated that that person could do JMZ and Lucie Stern duties in the afternoon. The Program Assistant 2 could also perform some of the duties. Councilmember Reckdahl asked if the position could be entirely transferred to the JMZ and which column is correct on Packet Page 410, the adopted or filled FTE. He noted that almost every department has grown from 2020 and asked why HR grew by 4. Director O’Kane replied there may be operational impacts at Lucie Stern if the position is transferred entirely to the JMZ. SUMMARY MINUTES Page 14 of 24 City Council Meeting Summary Minutes: 09/08/2025 Chief Financial Officer Lai responded that the adopted column on Packet Page 410 is correct. It is the same for 2026. As far as the data on the filled, there are 959 positions. The departments probably grew incrementally through expanding services but there has also been reorganization. Human Resources Director Sandra Blanch explained why HR has grown by 4 employees. Councilmember Stone queried how freezing the senior management analyst would impact the City’s work on mental health, in particular youth mental health. Deputy City Manager Chantal Cotton Gains answered that the youth mental health work has been split between the City Manager’s office and the CSD. It will be determined how the efforts will move forward. The position has been leading the Wellness and Belonging Action Plan, so those items will move slower in terms of implementation, but the youth mental health efforts will be prioritized. Councilmember Stone commented that he worries that things will fall through the cracks by not having a dedicated person to manage that work. He is not sure if he supports that. The cost is $176K, which is within the theoretical extra $200K. Regarding the firefighter trainee, he is concerned about understaffing the Fire Department if there should be a retirement, etc. He questioned if staff has calculated a true cost savings considering additional costs for overtime, etc., that might occur if Fire is temporarily short staffed. Chief Financial Officer Lai explained there is a Hiring Review Committee, so the classification is not needed to respond to a retirement, etc., situation. The Fire positions have been vacant, so she does not think an overtime calculation comes into play. Councilmember Stone expressed that the trainee position is currently filled. Budget Manager Harper stated if the position is filled by someone on Workers’ Comp it is paid through the Workers’ Comp Fund, not the General Fund. Councilmember Stone asked if the City could be over-authorized with Fire personnel. City Manager Shikada replied that the situation is common, and the trainee positions are not needed. Fire Chief Geo Blackshire explained why he is comfortable with the recommendation. Vice Mayor Veenker inquired how comfortable staff is with the budget and if the City has appropriately prepared for economic uncertainty; if retaining $50K for permit work on the Bayland levee will accelerate the work that is set to be delayed by 2 years; if all the grant funding needs to be returned if the JMZ position should be eliminated; and what the life expectancy is for a new fire engine, if more need to be purchased, how many miles one is SUMMARY MINUTES Page 15 of 24 City Council Meeting Summary Minutes: 09/08/2025 driven in a year, and how long the lead time is for a hybrid. She is concerned about discontinuing the senior management analyst. Chief Financial Officer Lai responded that she is comfortable with the adopted budget and the requested reductions. Opportunities need to be shored up and reserves preserved. Sales tax is being closely watched, but the City has less control of it. They will continue to monitor, and there will be opportunities to return to the Finance Committee to bring forward timely information. The $50K can be kept in for the Bayland levee and still work with the $200K outside of that. The JMZ grant funding was for 2 years, which expired, so now it has moved to the General Fund. Public Works Director Brad Eggleston added that there have been constraints on the staff side in terms of beginning the Bayland levee project, and they are searching for staff resources. He cannot guarantee that retaining $50K for the project will accelerate the work, but without any funding to do the early work, it could be delayed further than what is shown in the current plan. He believes the replacement time for a fire engine is 15 or 16 years. Most were purchased in 2009. They hope to proceed with purchasing a hybrid engine in 2025. This discussion relates to 2026, but replacements are also scheduled in 2027, 2028, and 2030. The lead time for a hybrid is 12 to 18 months and 54 months for a diesel. He thinks the engines are driven 7,000 to 8,000 miles a year on average. He believes reserve engines are used for the Strike Team. They travel farther but not used as much on a daily basis. Staff wants to see how the first hybrid works and get folks comfortable with it before purchasing more, but future ones are planned for fleet turnover. The infrastructure has been built at Fire Station 4 to support EV fire vehicles. Pierce manufactures hybrid fire engines. Councilmember Lu inquired if the program assistant role has to come from Lucie Stern or if any of the many other program assistants across other sites could be involved; if there could be a mini-reorganization next year to fill the PA role without adding a new position; and what percentage of the wellness-and-belonging role is internal facing to the organization and external facing to the community. Director O’Kane answered that the PA1 was selected from Lucie Stern mostly because of proximity and because that person would be most suitable for the role. A mini-reorganization can to be evaluated. Deputy City Manager Gains responded that the wellness-and-belonging role has thus far been more internal than external facing with the exception of a few items in the Equity Action Plan and the mental health items. Councilmember Lu questioned what would potentially be dropped on the external side. Deputy City Manager Gains answered that what relates to Equity Action Plan progress will potentially be dropped on the external side. Some items have not yet started, and they will probably be further delayed. They would focus on moving the items that have been started all the way through. Some pieces completed in the Equity Action Plan now may not go to the next SUMMARY MINUTES Page 16 of 24 City Council Meeting Summary Minutes: 09/08/2025 step and additional implementation. The CEDAW Ordinance will be brought to Council. After adoption, the next steps for resourcing it will have to be assessed. Mayor Lauing discussed the Hire Ahead Program for Police and his concerns being relieved. He suggested a part-time person at $42K for the JMZ. Chief Financial Officer Lai clarified that the $42K is for the access coordinator, which provides outreach for the underserved community. The position focused on customer service and reservations is $125K, which is the position that would be shared with a current program assistant at Lucie Stern. Mayor Lauing stated the design he suggested is a risk worth taking, which could be somewhat of a pilot program, to see if the outside revenue can be achieved. He worries about dropping an employee from the Planning Department because of the Housing Element, although he is comfortable with it if it is Director Lait’s recommendation. He hopes there will be $200K left because something will come up. He thinks there will be a cost for 311 in the next 9 months, which may need to be addressed by the Finance Committee. Councilmember Lu queried what the implications would be to overtime related to the reserve officer. There may need to be a separate conversation concerning the Overtime Program for future budgets. For example, staffing with 3 instead of 4 officers may be sufficient. On the Planning Department side, there are a variety of contract services with up-to amounts, and he asked if the savings from the vacancies will offset contracts with those vendors. Police Chief Andrew Binder explained that they appear to be ahead by $10K as it relates to the reserve officer. Planning Director Jonathan Lait answered that the recent contracts approved by Council are not part of the proposed budget cuts in this item. Though, they were reduced in preparation for this fiscal year recognizing the interest to shift from consultant use and more toward staff resources. Councilmember Lu questioned if hiring a couple roles would allow cutting back the amount allocated to those contracts. He prefers to build in-house expertise, especially for the next cycle of the Housing Element. Director Lait answered they are contract authorities, not necessarily the amount that would be spent. The contracts recently approved for long-range planning are for subject matter expertise staff does not have. He does not want to hire for one-off or occasional projects. Hiring staff will not reduce contract spending. Public Comment: There were no requests to speak. Councilmember Reckdahl stated the JMZ’s outreach is important to underserved communities and that revenue would be gained from that one employee. Some of the Foothill Nature SUMMARY MINUTES Page 17 of 24 City Council Meeting Summary Minutes: 09/08/2025 Preserve improvements are not needed, and he suggested cutting most if not all of the $692K. He asked what staff thinks about cutting Program PE-21000. Assistant Public Works Director Holly Boyd stated that a contract has been awarded with a consultant firm for the Foothill Nature Preserve improvements, which includes creating pedestrian pathways, reconfiguring parking, adding speed humps and crosswalks, and the necessary signage and striping, which is necessary for safety. Councilmember Reckdahl voiced additional parking is not needed. There may need to be reconfiguration by the lake, but it is not a high priority. He would much rather spend money in the JMZ. He suggested at least delaying it. City Manager Shikada noted that the CIP is a one-time expense and the JMZ an ongoing expense, so it is not an apples-to-apples tradeoff. The ongoing activities at the Foothill Nature Preserve are safety improvements. Where to add parking may be a potential scope reduction. Director O’Kane added that visitation at the Foothill Nature Preserve is basically back to pre- pandemic levels. There are still safety issues, which may be due to new visitors who are not familiar with the traffic patterns and parking. There has been illegal parking and other traffic issues. Safety improvements are necessary. There are opportunities to reevaluate the scope. Perhaps some parking areas can be reduced. Councilmember Reckdahl mentioned that the scope can be reduced, which will provide extra money, granted it is one time. More is being spent than what is being received in tax revenue. Councilmember Burt remarked that the expense for Foothills Park is for a safety issue and a capacity issue. It appears the capacity issue is based upon the surge when the park was opened to the public. There are safety issues, but the design may not be the best solution to those problems. Since there is no urgency, he suggested it be referred back to PRC to reexamine the scope and scale of the proposal and the best approaches to the safety problems. He moved to approve the staff recommendations with the following changes: To restore the Police reserve officer, add the JMZ program assistant, and that the Foothills Park Capital PE-21000 be referred to the PRC. He wants to pull the Foothills item from the budget to come back in a revised form for next year. Director O’Kane stated the PRC is scheduled to review the Foothills Project in October. Councilmember Burt added that with it going to PRC in October construction might begin in this fiscal year or FY2027. City Manager Shikada replied it would be next fiscal year if funding is removed. He needs to confirm if the CIP funds will be accessed to support the planning effort with PRC. Councilmember Burt commented he has no problem with planning, just the contract for construction. SUMMARY MINUTES Page 18 of 24 City Council Meeting Summary Minutes: 09/08/2025 Director O’Kane confirmed that staff can work with that with the assistance of Public Works leading the design effort. Councilmember Reckdahl seconded the motion. Vice Mayor Veenker asked if the $50K will be in or out of the default staff piece. Chief Financial Officer Lai suggested a friendly amendment to include the $50K for the Bayland levees in the motion. She asked if Measure B should be applied toward Churchill Avenue bike/ped or if a new project should be created under the Bike/Ped Implementation Plan. Staff recommends that Measure B be used toward Churchill Avenue Bike/Ped Project ($2.5M). Councilmember Burt included in the motion the third bullet under the Finance Committee’s recommendations, to retain $50K in the FY2026 for permitting efforts on the Bayland levee and to include the Churchill bikeway with Measure B funding. Councilmember Lu expressed that the City is not in great financial shape going into the next year and requested that staff consider extra efficiencies, such as program assistance being across sites in general instead of assignment to specific sites. He suggested rescoping the Foothills Park Project. He asked if allocating the $5M capital improvement over the next 3 years to the Palo Alto Ave Grade Separation Plan should be discussed today. City Manager Shikada answered that the $5M capital improvement is a placeholder for regional funds, so the City cannot make a tradeoff on the use of those funds for the upcoming year. Mayor Lauing added that there is not currently a plan for that grade crossing. Councilmember Lu stated $2M is budged for FY2026 and 2027 Councilmember Burt noted that there has been a policy decision to not proceed on that other than quiet zones. He inquired why $2M has been budgeted. It should not be a placeholder due to Council’s policy position. City Manager Shikada responded that he will follow up with an answer. Councilmember Lu voiced that it is PL-17001 for design and construction of grade separation at Palo Alto Ave on the Caltrain rail corridor. He understands that it can be a placeholder. Councilmember Burt noted it should not be a placeholder due to Council’s policy position. City Manager Shikada added there are also pending issues with the bridge at San Francisquito Creek. Chief Transportation Official Ria Hutabarat Lo voiced she believes the money for Palo Alto Avenue is grant funding and that it is a placeholder for the grant funding already allocated to the City. SUMMARY MINUTES Page 19 of 24 City Council Meeting Summary Minutes: 09/08/2025 Councilmember Burt commented he does not believe the City has been awarded grant funding for Palo Alto Avenue. He thinks it can be removed from the placeholder and go into the CIP reserve. City Manager Shikada responded that he does not have a problem with that. There is an outstanding issue with the bridge over San Francisquito Creek, which they have been working on with Caltrain, which is not a current year issue. Councilmember Burt mentioned the bridge is not a City replacement cost. Budget Manager Harper noted that the funding in that project is offset by Measure B funding. If the money is pulled, the Measure B funding needs to be reassigned toward other projects. Councilmember Burt expressed that the funds can be put back into the City’s pool or reassigned to another grade crossing. He added to the motion removing PL-17001 from the Capital Plan and directing staff to place it in the Capital Reserve or another high-priority grade crossing if needed. Councilmember Reckdahl accepted that. Chief Transportation Official Lo clarified that it is federal earmarked funding. City Manager Shikada stated it should not be removed from funding but rather referred to staff to report on the funding and appropriate use. Councilmember Stone stated, due to safety concerns, he is concerned about removing funding for Foothill Park. He inquired if some funding can be allocated to keep the project moving if the PRC thinks the project should move forward. City Manager Shikada responded that it is trying to be determined how much funding should remain in the project for this year and then construction beginning next year. At most, the delay would be a couple to a few months, but it will interrupt the work stream of moving from planning into design and construction. Chief Financial Officer Lai voiced that she understands an existing design contract was awarded, so $692K is for construction, which could be delayed for a couple months but kept in the budget. City Manager Shikada added that a Park Improvement Ordinance may be required after review by the PRC, which will take a few months. He suspects it will not be a major delay if the funding necessary to get to construction is continued. Director O’Kane agreed. The PRC could decide on a scaled-back version of the scope. After the PRC reviews it, there will be more information on it being either a reduction in the scope or a full deferral. SUMMARY MINUTES Page 20 of 24 City Council Meeting Summary Minutes: 09/08/2025 Councilmember Stone wants this to be fully vetted by staff and the PRC. City Manager Shikada stated as long as the savings will not be used for another expenditure, there can be direction to reduce the construction cost to the extent possible. Councilmember Burt added that he assumes rescoping and redesign would not come for several months. After going through PRC, staff could propose some portion move forward in this fiscal year. Chief Financial Officer Lai recommended bringing back a budget amendment at midyear. Councilmember Burt accepted that amendment. Councilmember Reckdahl asked what is being spent on it currently. Chief Financial Officer Lai answered there is a design component with an approved contract. Councilmember Burt mentioned that design should follow rescoping. Assistant Director Boyd noted that the contract is about $99K, and about 65 percent of that has been spent. Councilmember Burt recommended not proceeding until the PRC has reviewed the design and the scope. Councilmember Stone offered as an amendment to retain the one senior management analyst position. Councilmember Lythcott-Haims seconded the amendment and requested that the amendment add back the JMZ access coordinator position. Councilmember Stone accepted the amendment to add back the JMZ access coordinator position. He discussed the importance of the senior management position as it relates to equity, youth mental health, and religious tolerance trainings. Councilmember Reckdahl asked what the cost is of the senior management analyst. Chief Financial Officer Lai responded that the senior management analyst position is $176K. City Manager Shikada commented that if the position is cut it would slow down the elements of the Wellness and Belonging Action Plan not yet implemented. The religious tolerance training will occur in mid-October irrespective of the position. Vice Mayor Veenker expressed that she supports the amendment. She queried where things are netting now. SUMMARY MINUTES Page 21 of 24 City Council Meeting Summary Minutes: 09/08/2025 Chief Financial Officer Lai answered that the JMZ program assistant, the reserve officer, and access coordinator rounds out at $182K. The deferral of Foothill parks will be a midyear, so that is not incorporated. Baylands is considered within the CIP 5-year plan. The Foothill Park is a one-time savings, and likely the work will be undertaken in a future year, which will relieve cashflow for a year or two. Chief Financial Officer Lai asked if the reduced construction funding of $690K will be determined at Fiscal 2026 midyear. Councilmember Reckdahl replied that he wants to pull it from the budget and add it back in at midyear as opposed to pulling it at midyear. City Manager Shikada suggested leaving it as is and making one change rather than removing it and potentially bringing it back. Councilmember Burt pointed out that bullets 1 and 2 are expense add backs but anticipated to be covered by reduced expenses or increased revenue. Councilmember Stone is concerned about staff taking on the important work of the senior management analyst position. Councilmember Lythcott-Haims seconded Councilmember Stone’s advocacy for the amendment and urged supporting it. Vice Mayor Veenker mentioned that she does not agree with the one person losing their job, even though they may be absorbed into another position. MOTION: Councilmember Burt moved, seconded by Councilmember Reckdahl to approve amendments to the Fiscal Year 2026 Budget Appropriation for various funds and various capital projects, as identified in Attachment A, Exhibit 1 and 2 with the following changes: A. Restore Reserve Officer (0.12 FTE) position in the Police Department ($15k) B. Restore Program Assistant I (1.00) position in the Community Services Department at the JMZ ($126k) C. Refer the Foothills Nature Preserve Improvements capital project (PE-21000) to the Parks and Recreation Commission and staff will return with potential adjustments as part of the FY 2026 Mid-Year Budget Review D. Apply Measure B funding towards Churchill Avenue Enhanced Bikeway capital project (PL-14000) ($2.5M) E. Retain $50k in the Baylands Levee Repair for Public Safety Access capital project (OS- 09002) SUMMARY MINUTES Page 22 of 24 City Council Meeting Summary Minutes: 09/08/2025 F. Refer Staff to review the Railroad Grade Separation and Safety Improvements capital project (PL-17001) and return with potential adjustments as part of the FY 2026 Mid- Year Budget Review AMENDMENT SPLIT FOR THE PURPOSE OF VOTING AMENDMENT: Councilmember Stone moved, seconded by Councilmember Lythcott-Haims to restore Senior Management Analyst (1.00 FTE) position in the City Manager’s Office ($176k) AMENDMENT PASSED: 7-0 AMENDMENT: Councilmember Stone moved, seconded by Councilmember Lythcott-Haims to restore Staff Specialist (0.48 FTE) position in the Community Services Department at the JMZ ($42k) AMENDMENT PASSED: 5-2, Burt, Reckdahl no Councilmember Reckdahl stated he supports it but something has to be cut. AMENDMENTS INCORPORATED INTO THE FINAL MOTION FINAL MOTION: Councilmember Burt moved, seconded by Councilmember Reckdahl to approve amendments to the Fiscal Year 2026 Budget Appropriation for various funds and various capital projects, as identified in Attachment A, Exhibit 1 and 2 with the following changes: G. Restore Reserve Officer (0.12 FTE) position in the Police Department ($15k) H. Restore Program Assistant I (1.00) position in the Community Services Department at the JMZ ($126k) I. Refer the Foothills Nature Preserve Improvements capital project (PE-21000) to the Parks and Recreation Commission and staff will return with potential adjustments as part of the FY 2026 Mid-Year Budget Review J. Apply Measure B funding towards Churchill Avenue Enhanced Bikeway capital project (PL-14000) ($2.5M) K. Retain $50k in the Baylands Levee Repair for Public Safety Access capital project (OS- 09002) L. Refer Staff to review the Railroad Grade Separation and Safety Improvements capital project (PL-17001) and return with potential adjustments as part of the FY 2026 Mid- Year Budget Review SUMMARY MINUTES Page 23 of 24 City Council Meeting Summary Minutes: 09/08/2025 M. Restore Senior Management Analyst (1.00 FTE) position in the City Manager’s Office ($176k) N. Restore Staff Specialist (0.48 FTE) position in the Community Services Department at the JMZ ($42k) FINAL MOTION PASSED: 7-0 19. Adoption of an Emergency Ordinance Amending Palo Alto Municipal Code (PAMC) Chapter 16.04 to Add Local Administrative Amendments Related to Certificates of Occupancy and Definitions to the 2022 California Building Code, and an Emergency Ordinance Amending PAMC Chapter 16.17 to Adopt the 2025 California Energy Code and Local Amendments Thereto. CEQA Status – Exempt Under CEQA Guidelines Section 15061(b)(3) and 15308. Assistant Director Sustainability Climate Action Jonathan Abendschein declared this is an emergency ordinance, which needs to be quickly moved on because of State Law AB 130, which comes into effect October 1. Three amendments (two are climate-related) and some administrative amendments are being brought forward. Chief Building Official George Hoyt commented that an emergency ordinance is being brought forward to make minor but timely adjustments to the City’s 2022 California Building Code Local Amendments located in PAMC 1604, which impact residential units. The amendments must be adopted and filed with the appropriate State agencies prior to September 30, 2025. It will allow the City to readopt the amendments as part of the 2025 coded update later this fall under the initial exemption allowed under SB 103. The first of the two amendments clarifies when a Certificate of Occupancy is required and issued and the second clarifies definitions associated with calculating residential net and gross floor area and points to Zoning Code Section 18.04030 for applicable projects, which aligns with the City’s current language adopted under ADU Ordinance 5656. Resource Planner Utilities Tim Scott presented slides and provided an overview of the Energy and Green Building Reach Codes and details on the proposed 2025 Reach Code amendments related to AC to heat pump time of replacement requirements and FlexPath points Assistant Director Abendschein added that in addition to this ordinance, staff will return to Council in October to carry forward previous year Local Amendments to the Energy and Green Building Codes, and staff will likely need to return to Council in 2026 with provisions related to new construction. Staff visited the Climate Action Sustainability Committee in May and on September 5, and there have been 2 outreach meetings and 2 meetings with the Climate Action Working Group, and feedback is summarized in the Staff Report. SUMMARY MINUTES Page 24 of 24 City Council Meeting Summary Minutes: 09/08/2025 City Manager Ed Shikada noted that the Climate Action Sustainability Committee voted unanimously to approve. Vice Mayor Veenker thanked the team who put this together. The two climate-based amendments will address GHG emissions reduction and cost studies will show long-term use savings for customers. The Climate Committee strongly supported this after much discussion and thought. Councilmember Burt mentioned that he appreciates staff moving expeditiously and thoroughly on this. A provision has been added to the law that appears to leave open future revisions that will be consistent with the Comp Plan. Deputy City Attorney Madeleine Salah remarked that she recommends that Council approve the two climate-related amendments to the Energy Code. She believes that under one of the exceptions to AB 130 there will be an opportunity to bring forward changes and to readopt the amendments during the course of the AB 130 moratorium. Public Comment: 1. Dashiell L. (Zoom), Conservation Coordinator for the Sierra Club Loma Prieta Chapter, stated they strongly support adopting the building codes. MOTION: Vice Mayor Veenker moved, seconded by Mayor Lauing to: 1. Adopt, by a four-fifths majority, the attached emergency ordinance (Attachment E) to incorporate administrative amendments into Palo Alto Municipal Code 16.04, which implements the California Building Code, and 2. Adopt, by a four-fifths majority, the attached emergency ordinance (Attachment F) amending PAMC Chapter 16.17 to incorporate the 2025 Edition of the California Energy Code with local amendments related to energy efficiency. MOTION PASSED: 7-0 Adjournment: The meeting was adjourned at 10:29 p.m.