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HomeMy WebLinkAbout2025-09-29 City Council Summary MinutesCITY COUNCIL SUMMARY MINUTES Page 1 of 11 Special Meeting September 29, 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. Special Orders of the Day 1. Proclamation Honoring Nara Cammack for her effort in proposing and advancing a Bike Safety Park project in the City of Palo Alto NO ACTION Councilmember Lythcott-Haims read the proclamation honoring Nara Cammack and congratulated her. Nara Cammack thanked Council for the recognition. It was an honor to have worked on the project, which will be a great resource for the community. She thanked all who made the project possible. Mayor Lauing invited Nara Cammack to the dais for photos with Council. 2. Proclamation Recognizing September 2025 as Suicide Prevention Awareness Month NO ACTION SUMMARY MINUTES Page 2 of 11 Sp. City Council Meeting Summary Minutes: 09/29/2025 Councilmember Stone read the proclamation recognizing September 2025 as Suicide Prevention Awareness Month. Project Safety Net Board Member Steven Lee accepted the proclamation on behalf of many and thanked Council for it. He asked all to pause and reflect on the grief the community shares and to recommit to one another and to work collaboratively, decisively, and with greater urgency on decisions which can have an impact on suicide prevention. He requested that the members of Project Safety Net stand and be recognized. As a new generation of leaders, their work will be carried forward with fresh energy and lived experience. The proclamation calls to recognize the challenges ahead, celebrate the work done, and recommit to the work ahead so everyone knows they are seen, supported, and not alone. Mayor Lauing invited Project Safety Net to the dais for photos with Council. Agenda Changes, Additions and Deletions Mayor Lauing noted there have been a number of modifications, which are in the supplemental packet in red. City Manager Ed Shikada added that Consent Calendar Item 5 will be pulled from the agenda. It will be re-noticed and re-agendized. Public Comment 1. Deborah G. on behalf of 5: Robin M., Sarit S., Miriam P., Maria W., Uri Z. spoke about the ongoing vigil for Gaza-sponsored protests taking place on the corner of Embarcadero and El Camino. She shared a disturbing story that Councilmember Lythcott-Haims shared on a radio interview in the past. She discussed her experience being Jewish and feeling threatened. She respects freedom of speech but without causing pain to others. She requested that protests be respectful. She noted that Palo Alto will offer optional antisemitism training in October and requested that Council be mindful of their power in addressing intentional hurtfulness. 2. Peter B. (Presentation) requested that the emergency pullcord alarm system at Lytton Gardens be functional, monitored, and responded to when used. He displayed a criminal report that he had provided to the Police Department, which he considered inaccurate. 3. Timea T., owner of the Palo Alto Tennis Shop at Town & Country shopping center, spoke of pickleball saving the tennis business, not replacing it. She urged Council to expand the pickleball courts at Mitchell Park. SUMMARY MINUTES Page 3 of 11 Sp. City Council Meeting Summary Minutes: 09/29/2025 4. Pieter F. requested that Palo Alto city officials stand against transnational oppression and urge Governor Newsom to sign SB 509 and to not further engage with groups that may serve as agents of oppressive foreign governments. He provided Council with an informational packet on such groups. 5. Michael E. requested that possible fire hazards at Oak Creek Apartments be addressed. He had sent an email with pictures to Council, Mayor Lauing, the City manager, and the Fire Department. 6. Jeff G. invited all to attend Bike Palo Alto on October 5. The PRC had unanimously supported the Bicycle Safety Park. He thanked Nara Cammack for her work. Council Member Questions, Comments and Announcements Vice Mayor Veenker voiced that she had reached out to Assemblymember Berman’s office regarding Lytton Gardens, and his district director will engage with Mr. Barling. She had attended the NCPA Commission meeting last week, and there had been a panel on wildfire and power supply management and a panel focusing on federal investment in power infrastructure to ensure reliability, resiliency, and affordable rates. The NCPA legal community had discussed interactions between Federal and State policy and possibilities for federal preemption. She recognized Myra Saxena for organizing the Children's Business Fair, which occurred last weekend; the YMCA for the Annual Health Fair the week before; and the Palo Alto Fire Department for attending Pancakes in the Park and the Midtown Residents Ice Cream Social. Mayor Lauing commented that the 61st anniversary of the Oaxaca Sister City relationship was celebrated this week. He had had a meeting with representatives of the governor, and they noted that the governor has created an Encampment Resolution Fund of $130M to help with homeless financing, and Palo Alto will look into that opportunity. An Ad Hoc Committee consisting of himself and Councilmember Stone had been created for 156 North California Avenue. Stanford had requested that he be a member of their GUP Plan, which he will participate in over the 1½ years or so. The City is partnering with VTA, Stanford, and the Urban Land Institute to get advice and recommendations on long-term development and planning issues associated with the Palo Alto Transit Center. Their findings will be presented on October 24 in City Hall. Councilmembers Burt, Lu, and Reckdahl will be the Council representatives for that engagement, but all Council members are welcome to attend. Councilmember Lythcott-Haims announced that there had been a Young Minds Celebrated event on September 17. The final Cubberley Master Plan community meeting occurred on September 17, and now the community’s comments will be analyzed and the cost determined. In the coming months, there will be a community poll to get a clearer sense of direction. It is hoped that there will be something compelling on the ballot in November 2026. SUMMARY MINUTES Page 4 of 11 Sp. City Council Meeting Summary Minutes: 09/29/2025 Study Session 3. Impacts of H.R.1 on Santa Clara County Region NO ACTION City Attorney Molly Stump explained why the study session needs to be for informational purposes and not for ballot advocacy. There will an item on next week’s agenda which will provide an opportunity to consider items on the November ballot and to give advice to voters and take a position on behalf of the City. District 5 County Supervisor Margaret Abe-Koga discussed their role and responsibility in implementing legally mandated programs and providing access to care to those in need. H.R.1. poses a grave threat to the County of Santa Clara and the Santa Clara Valley Healthcare (SCVH) System, and the County faces a fiscal challenge. The County has been moving as quickly as possible to evaluate the impacts and develop a response. In August, the Board of Supervisors voted unanimously to place a 5/8-cent general sales tax measure on the ballot to address some of the needs. The decision was difficult and not taken lightly. About $1B is being cut from the healthcare system, and there are also cuts to SNAP. Country Executive James Williams stated it is critical that the community understand the magnitude of what is being faced as a direct result of the impacts from the federal government’s recent actions. H.R.1 is the single largest withdraw of federal support for social safety net programs in the nation’s history. H.R.1 cuts nearly $1T from the Federal Medicaid Program and almost $200B from SNAP. The programs provide healthcare for 1 in 4 Santa Clara County residents and food access for 133,000 Santa Clara County residents. He detailed the devastating impacts to SCVH. The cuts layer in over the next couple years, but immediate impacts begin this current fiscal year. Substantial revenue losses are being faced. The County must ensure that residents have access to critical services, and they have a 3-pronged strategy and approach to do that. Services will need to be restructured. They are advocating that the State help ensure preservation of public hospital systems. An important piece of the strategy is Measure A, which is a temporary (5-year) 5/8-cent sales tax, which will generate about $330M. Counties have limited taxing authority, and the 5/8-cent sales tax is the only legally viable mechanism the County has to generate any meaningful revenue. The whole community needs to come together to implement the strategy. Councilmember Lythcott-Haims thanked Executive Williams, Supervisor Abe-Koga, and others for their leadership. Councilmember Reckdahl asked of the options to increase cost, reduce service, and cut costs by having nurse practitioners instead of doctors how they will split up their solution. Executive Williams answered they need do to a little of everything. The State needs to step in to ensure public hospitals are accounted for in the Medi-Cal program. They are requesting SUMMARY MINUTES Page 5 of 11 Sp. City Council Meeting Summary Minutes: 09/29/2025 community support with Measure A. The largest piece is a set of initiatives the health system is undertaking to look at the revenue and the cost sides, which he provided examples of. Councilmember Reckdahl inquired if they are able to quantify the impact on patient health with cutting costs. Executive Williams replied that they try as best as they can to quantify the impact of patient health when costs are being cut. Demand for services is a challenge, and there is an access issue. Councilmember Stone noted that on October 1 there be 100-percent tariffs on foreign-made medicine. He queried what should be expected as it relates to services such as Alcove, Project Homekey, the Opportunity Center, etc. Executive Williams answered that they have not had conversations about what to expect with services such as Alcove, etc. They are beginning the budget process for the upcoming fiscal year. The Behavioral Health Services Department relies significantly on Medi-Cal revenue (about 25 percent of its budget), and they are facing challenges in other significant revenue streams for behavioral health. There will be impacts on services, but they are doing everything they can to preserve essential services. He added that their predominant source of local revenue is property tax, and roll growth is lower than it has been in over a decade. Councilmember Stone requested that everything be done to keep funding for mental health services. Executive Williams voiced that the Board of Supervisors cares deeply about behavioral health services and that it is a space where they have made major expansions and investments over the last several years. Mayor Lauing questioned if there is visibility on some of the other cuts so that voters are clear on what the total impact will be. Executive Williams replied that the County Administration will be in front of the Board of Supervisors in October to discuss the strategy going into the next fiscal year, and they will lay out, at a high level, the recommended approaches. The County has been and will continue to do cost containment and deal with cuts and efficiencies. Most impacts will be to healthcare and public safety. The other parts of the County budget are essentially fiscally walled off. Councilmember Burt discussed critical services that the City and the County partner together on. He supports the County thinking creatively how to be more cost efficient and effective with programming. Executive Williams expressed they try to think structurally and do the best they can with a difficult situation. They are committed to determining the best and most efficient way to deliver services, although there will be impacts. SUMMARY MINUTES Page 6 of 11 Sp. City Council Meeting Summary Minutes: 09/29/2025 Vice Mayor Veenker asked if there will be impacts on Stanford, El Camino, and Sutter hospitals. Executive Williams responded there are a few categories of important impacts. The public hospital system is disproportionately impacted because they serve a large share of Medi-Cal beneficiaries. The specific cuts in H.R.1 target critical funding streams for counties. Elements will affect all systems, which directly ties into affordability and access, and he expects to see systemic impacts to all systems (private and nonprofit) as a result of that. Councilmember Lu echoed everyone’s concerns and gratitude for their work. He finds $1B to be disproportionate to the cuts to California and nationally to Medicaid and inquired why there is such a large impact to the County and what the best case scenario might be over the next few years. He understands one of the biggest drivers of the cuts is anticipated to be work requirements for certain adults and that assumptions have to be modeled. He queried if the work requirements include volunteering, which can make those barriers less and help people and help toward the $1B cut. Executive Williams explained that the $1B is not as disproportionate as it seems and is almost roughly proportionate to the $1T national impact. What is disproportionate are the funding streams that go to disproportionate share hospitals. Prop 35 is in the current State budget, but it did not receive federal approval, which creates a hole in the budget. There are disproportionate impacts to California and other states coupled with more significant impacts to public systems. He believes, according to CBO, about 34 percent was attributable to work rule requirements. Almost everyone qualifies under those requirements, but the question is are they going to be able to jump through the hoops. What they have learned from the couple states that unsuccessfully piloted those requirements is that, in the absence of automated eligibility verification, 70 to 80 percent of individuals who could not be auto-verified lost coverage. Only $200M nationally was appropriated for states to implement the data systems. Everything that can be done locally will be done, but it is important to recognize that they are State data systems, and part of the County’s strategy is to push the State to do what it can. States have until December 2026 to implement these systems, but there is no funding or time to have thoughtful implementation, so many will lose coverage even if fully eligible. Councilmember Lu voiced that he hopes there will be continued conversations about ways the City may be able to help the County. Mayor Lauing thanked the County for attending the meeting. Public Comment: 1. Dean W., Professor of Pediatric Medicine at Stanford University and full-time clinician, discussed the cuts being devastating. He supports Measure A. 2. Raymond G., a resident of the Opportunity Center and community health worker, commented that he endorses Measure A and requested that the residents and the City also endorse it. SUMMARY MINUTES Page 7 of 11 Sp. City Council Meeting Summary Minutes: 09/29/2025 3. Sara C., who recently retired as the Santa Clara County Health Officer and Director of Public Health, expressed that she supports Measure A in the strongest terms possible and urged all to do the same. There must be collective action to protect each other as the cuts will affect everyone because the healthcare system is interconnected. She opined that if the Measure A does not pass, the County will have to close hospitals. 4. Ken H. remarked that he supports Measure A and asked Council to support it. 5. Liz (Zoom), a physician, spoke of the impact of H.R.1 on everyone and urged Council to endorse Measure A. 6. Aram J. (Zoom) requested that TASERS not be in the County jail and to not cut the budget for the Public Defender’s office. He supports Measure A. Consent Calendar 4. Approval of Minutes from September 8 and September 15, 2025 Meetings 5. PUBLIC HEARING / QUASI-JUDICIAL. 70 Encina Avenue [25PLN-00034]: Request for Approval of a Tentative Map to Merge Two Lots and Allow for a Condominium Subdivision to Create 10 Units on the Resulting 12,119-Square-Foot Parcel. The Subdivision Map Would Facilitate Construction of Ten New Residential Units in One Building, which was previously approved on April 14, 2025 (24PLN-00095). CEQA Status: Exempt from the Provisions of the California Environmental Quality Act (CEQA) in Accordance with CEQA Guidelines Section 15183 (Comprehensive Plan Consistency). Zoning District: PC-5654. Agenda Item Number 5 Removed from Agenda 6. Approval of FY 2026 Architectural Review Board, Historic Resources Board, Planning and Transportation Commission, and Utilities Advisory Commission Work Plans; CEQA status – not a project 7. Adoption of a Resolution for the County of Santa Clara Historic Heritage Grant Application for the Restoration of the Roth Building Frescoes (Phase II); CEQA Status- categorically exempt. 8. Authorization to Execute an Amendment to Legal Services Contract S25194587 with Atkinson Andelson Loya Ruud & Romo to Increase Amount by $100,000 for Total Not-to- Exceed Amount of $185,000; CEQA Status – Not a Project. 9. Approval of General Service Contract No. C26194249 with Orion Security for Security Services at the Municipal Service Center and the Regional Water Quality Control Plant in an Amount Not-To-Exceed $1,448,260 for a Period of Five Years; CEQA Status – Categorically Exempt under Section 15301 SUMMARY MINUTES Page 8 of 11 Sp. City Council Meeting Summary Minutes: 09/29/2025 10. Approval of Professional Services Agreement C26195459 with Project Safety Net, Inc. in an amount not-to-exceed $300,000 to Provide Youth Mental Health and Suicide Prevention Support for a term ending June 30, 2028; CEQA Status – Not a Project. 11. Authorization to Execute Amendment to Legal Services Contract S24190674 with Jeffrey Oneal dba Rankin Oneal to Increase Amount by $85,000 for Total Not-to-Exceed Amount of $170,000; CEQA Status – Not a Project. 12. The City Schools Liaison Committee Recommends Approval of Professional Services Contract Number C26195844 with the JED Foundation for a Not-to-Exceed Amount of $149,000 for Technical Assistance, Evaluation, and Support Regarding Youth and Young Adult Mental Health Programs for a Period of Two Years; CEQA Status - Not a Project 13. SECOND READING: Ordinance of the Council of the City of Palo Alto Amending the Fiscal Year 2026 Municipal Fee Schedule to Amend and Remove Various Fees (FIRST READING: September 8,2025 PASSED: 7-0) 14. SECOND READING: 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 (FIRST READING: September 8,2025 PASSED: 7-0) 15. SECOND READING: 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 (FIRST READING: September 8,2025 PASSED: 7-0) 16. SECOND READING: Adoption of Four Ordinances, as Recommended by the Retails Committee to Amend and Reorganize Stormwater and Wastewater Management Requirements by Amending PAMC Chapter 16.09 (Sewer Use Ordinance), Amending Chapter 16.11 (Stormwater Pollution Prevention), Adding New Chapter 16.13 (Requirements for Food Facilities Related to Water Pollution Prevention and Management of Fats, Oils, and Grease), and Adding New Chapter 16.66 (Hauled Liquid Waste). (FIRST READING: September 8, 2025, PASSED 7-0) AA1. Approve Purchase Order C26195416 with Carahsoft, Utilizing a General Services Administration Blanket Purchase Agreement, to Procure SAP S/4 HANA Suite of Products and Corresponding Software and Hosting Services for a 5-Year Term for a Not-To-Exceed Amount of $6,640,429; and Approve a Budget Amendment in the Technology Fund as Recommended by Finance Committee; CEQA Status - Not a Project Public Comment: 1. Herb B. (Item 5 and Item 7) thanked Council for removing Item 5 from the calendar. He had sent a letter concerning Item 7 and the site being used for park purposes, and he felt that the property should first be dedicated as parkland so the statement in the grant application will be correct. He requested that the item be removed from the agenda and SUMMARY MINUTES Page 9 of 11 Sp. City Council Meeting Summary Minutes: 09/29/2025 continued on October 20 and that staff properly notice the intent to adopt the Park Dedication Ordinance for the site and that it be on the same agenda and prior to the grant application. 2. Ken H. (Item 12) thanked all who supported the Jed Foundation contract. He had attended an event at the Rinconada Library last weekend that presented the book The Anxious Generation, which addresses the role of social media and youth mental health. The Wellness Committee will be holding future events at the Rinconada Library. He is interested in getting data from the school district about what is happening with the youth. He also discussed the book Bad Pharma and certain medications being prescribed to the youth. City Attorney Molly Stump stated, regarding Item 7, that the County is aware that the Roth Building has not been dedicated as parkland under the procedure in the Palo Alto charter. The County is satisfied that the long-term lease the City has with the museum meets the grant requirement, so there is no concern that the grantor is being misled. The park dedication process under the Palo Alto charter does not have a time requirement. The appropriate time to make such dedications is left to the discretion of Council. Councilmember Burt, Reckdahl, and Lu requested to pull Agenda Item Number 6. MOTION: Councilmember Stone moved, seconded by Mayor Lauing to approve Agenda Item Numbers 4, 7-16, AA1 (Agenda Item Number 5 Removed from Agenda) and to pull Agenda Item Number 6 off of the Consent Calendar. MOTION PASSED ITEMS 4, 7-16, AA1: 7-0 City Manager Comments City Manager Ed Shikada remarked that Council’s docket is full through the end of the calendar year. In all likelihood, Item 6 will not be heard by Council until 2026. Vice Mayor Veenker questioned what impact it will have on the ability to carry out the work plans. City Manager Shikada suggested that pulling the item will not affect ongoing work. He will communicate to staff and the commissions that they should proceed, unless Council indicates otherwise. He returned to City Manager Comments and displayed slides. On September 30, there will be workshops on the rail grade separations at Charleston, Meadow, and Churchill, and additional information can be found at paloalto.gov/gradeseparation. This weekend and through next week is Fire Prevention Week. Fire Station 6 will have an Open House on October 5, potentially throughout the week as well, and there will be free parking behind the station on the campus. There will be a story time with Chief Blackshire on October 2. King Artist in SUMMARY MINUTES Page 10 of 11 Sp. City Council Meeting Summary Minutes: 09/29/2025 Residence and Moonlight Run and Walk events will take place on October 3. October 5 will include ride, roll, and connect with neighbors at Bike Palo Alto; Mahjong, Munchies, and Lanters; and the Palo Alto Arts Center Family Day. Next week Council will have a study session on the San Antonio Road Area Plan, Building Code updates, and an opportunity to take positions on items on the November ballot. On October 15, there will be a special meeting for board/commission/committee interviews. There will be a special meeting addressing Lot T and a study session on managing consultant services on October 22. On October 20, there will be a study session on the Cubberley Project, and oversized vehicle regulation will be addressed. On October 22, there will not be a Consent Calendar and only special topics will be addressed. There will be a regular agenda with consent on October 20. There are a number of items listed for November, and some have been on the docket for a while. Mayor Lauing declared that Council will go into closed session on 4 items listed on the agenda, which he will report on at the end of the meeting. Closed Session 17. CONFERENCE WITH CITY ATTORNEY-POTENTIAL LITIGATION Subject: Potential litigation regarding 156 North California Avenue, as set forth in letter(s) from Holland & Knight LLP dated September 3, 2025 Authority: Government Code Section 54956.9(d)(2); One case, as Defendant. AA2. CONFERENCE WITH CITY ATTORNEY-POTENTIAL LITIGATION Subject: Petition for Redistribution of Local Tax with California Department of Tax and Fee Administration Authority: Government Code Section 54956.9(d)(2) One Case, as Petitioner AA3. CONFERENCE WITH CITY ATTORNEY-POTENTIAL LITIGATION Subject: Initiation of Litigation in three Cases: A. City of Fresno et al. v. Turner et al., United States District Court, Northern District of California, Case No. 3:25-cv-07070; and B. King County et al. v. Turner et al., United States District Court, Western District of Washington, Case No. 2:25-cv-00814; and C. Anticipated litigation not yet filed against Federal Government Authority: Government Code Section 54956.9(d)(4) Three Cases, as Plaintiff 18. Public Employee Performance Evaluations Cal. Gov. Code section 54957 (b)1 City Manager, City Attorney, City Clerk, City Auditor SUMMARY MINUTES Page 11 of 11 Sp. City Council Meeting Summary Minutes: 09/29/2025 Public Comment: 1. Herb B. (Item 17 and Item 18) voiced that he submitted comments on Item 17. It appears that the address on the item does not exist and that it would be on the other side of the street and train tracks if it did. He does not agree with Item 17 being addressed in a closed session. Regarding Item 18, he requested that the goals and KPIs be made public, so the public can comment on them specifically. He does not think the item should enter a closed session until the criteria has been revealed to the public. MOTION: Vice Mayor Veenker moved, seconded by Council Member Lythcott-Haims to go into Closed Session. MOTION PASSED: 7-0 Council went into Closed Session at 7:50 p.m. Council returned from Closed Session at 12:08 a.m. Mayor Lauing announced no reportable action on Agenda Item Numbers 17, AA2, 18. Mayor Lauing announced that Agenda Item Number AA3, Council voted 7-0 to authorize the City Attorney to file papers to join King County et al. v. Turner at al., United States District Court, Western District of Washington, Case No. 2:25-cv-00814. Adjournment: The meeting was adjourned at 12:10 a.m.