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HomeMy WebLinkAboutStaff Report 2506-4823CITY OF PALO ALTO CITY COUNCIL Special Meeting Monday, August 11, 2025 Council Chambers & Hybrid 5:30 PM     Agenda Item     3.Approval of Minutes from June 9, June 16, and June 17, 2025 Meetings City Council Staff Report Report Type: CONSENT CALENDAR Lead Department: City Clerk Meeting Date: August 11, 2025 Report #:2506-4823 TITLE Approval of Minutes from June 9, June 16, and June 17, 2025 Meetings RECOMMENDATION Staff recommends that the City Council review and approve the minutes. ATTACHMENTS Attachment A: June 9, 2025 Draft Action Minutes Attachment B: June 16, 2025 Draft Action Minutes Attachment C: June 17, 2025 Draft Action Minutes APPROVED BY: Mahealani Ah Yun, City Clerk CITY COUNCIL DRAFT ACTION MINUTES Page 1 of 5 Regular Meeting June 9, 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: Absent: Special Orders of the Day 1. Proclamation Honoring James Moss for his Years of Service to the City of Palo Alto NO ACTION Agenda Changes, Additions and Deletions Public Comment Council Member Questions, Comments and Announcements Study Session 2. Cubberley Project: Discuss First Round Polling Results and Feedback from Community and Stakeholder Engagement Activities and Review an Update on the Workplan for the Cubberley Master Plan and Consideration of November 2026 Ballot Measure; CEQA Status – the Master Plan will undergo CEQA review NO ACTION DRAFT ACTION MINUTES Page 2 of 5 City Council Meeting Draft Action Minutes: 06/09/2025 Consent Calendar Councilmember Burt requested to pull Agenda Item Number 7. Councilmember Burt registered a no vote on Agenda Item Number 7. MOTION: Councilmember Lythcott-Haims moved, seconded by Councilmember Reckdahl to approve Agenda Item Numbers 3-15. MOTION PASSED ITEMS 3-6, 8-15: 7-0 MOTION PASSED ITEM 7: 6-1, Burt no 3. Approval of Minutes from May 27, 2025 Meeting 4. 2025 Annual Water Supply and Demand CEQA Status Assessment -- Exempt under Water Code Section 10652. 5. Approval of Proposed 10 Year Energy Efficiency Goals for 2026-2035 as Recommended by the Utilities Advisory Commission; CEQA Status – Not a Project. 6. Approval of a Professional Services Contract No. C26193873 with Avenidas, Inc. in an Amount Not-to-Exceed $3,186,528 for Provision of Comprehensive Services to Older Adults for a Term of Five Years; CEQA Status – Not a Project 7. Approval of a Professional Services Contract Number C25192686 with Statewide Traffic Safety and Signs, Inc. in an Amount Not-to-Exceed of $2,125,000 for On-Call Traffic Control Services for Utilities a Period of Five (5) Years; CEQA Status – Not a Project 8. Approve Three Professional Service Contracts: (1) Contract Number C25191790A with Ampirical Services, Inc.; (2) Contract Number C25191790B with Burns & McDonnell Western Enterprises, Inc.; and (3) Contract Number C25191790D with Transformer Consulting Services, Inc. in an Aggregated Amount Not-to-Exceed $15,000,000 Over a Three-Year Period for Utilities Electric Engineering Consulting Services and delegate authority to the City Manager to execute each vendor’s contract for two additional one- year extensions and increase the aggregated not to exceed amount to $25,000,000 ; CEQA Status: Not a Project 9. Approval of Construction Contract No. C25193640 with FieldTurf USA, Inc. in the Amount of $3,064,185 for Stanford Palo Alto Community Playing Fields Turf Replacement Project PG-26000, and Authorization of Contract Contingency in an Amount Not-to-Exceed $306,419; and Amend the FY 2025 Budget in the Capital Improvement Fund and the Parks Dedication Fund; CEQA status – categorically exempt under CEQA Guidelines sections 15301 (Existing Facilities) and 15302 (Replacement or Reconstruction). DRAFT ACTION MINUTES Page 3 of 5 City Council Meeting Draft Action Minutes: 06/09/2025 10. Approval of Construction Contract No. C25194274 with O’Grady Paving, Inc. in the Amount Not-to-Exceed $1,218,317 and Authorization for the City Manager or Their Designee to Negotiate and Execute Change Orders Up to a Not-to-Exceed Amount of $121,832 for the Fiscal Year 2025 Streets Preventative Maintenance Project; Capital Improvement Program Projects PE-86070 and PO-11001; CEQA Status – Exempt under CEQA Guidelines Section 15301(c) 11. Approval of Amendment No. 1 to Contract No. C22183804 With Jacobs Engineering Group, Inc. to Increase the Contract Amount by $150,000 to $1,030,569, to Update the Hourly Rate Schedule, and to Extend the Contract Term to June 30, 2026 for Engineering Services During Construction; Amendment No. 2 to Contract No. C21179265E with Tanner Pacific, Inc. to Increase the Contract Amount by $245,095 to $1,097,595 for Construction Management Services, to add Exhibit C-2 Schedule of Rates, and to Extend the Contract Term to June 30, 2026; and Amendment No. 6 to Contract No. C21179265C with Carollo Engineers, Inc. to Increase the Contract Amount by $397,800 to $15,093,184 for Construction Management Services and to add Exhibit C-2 Schedule of Rates, Funded by Wastewater Treatment Enterprise Fund for the Joint Intercepting Sewer Rehabilitation (Phase 1) Project (WQ-24000); CEQA Status – Exempt under CEQA Guidelines Section 15301 (Repairs to Existing Facilities) 12. Approval of Contract Amendment Number 1 to Contract Number C24193066 with Origami Risk in the Amount of $3,163 for API Integration Resulting in a New Not-to-Exceed Amount of $209,473 for claims processing services. CEQA Status – Not a Project. 13. Approval of Contract Amendment Number 1 to Contract Number S22183280 with Sloan Sakai Yeung & Wong, LLP for Legal Services, Extending the Term to July 1, 2028 and Increasing the Amount Not to Exceed by $200,000, Bringing the New Total Not to Exceed to $455,000; CEQA Status – Not a Project. 14. FIRST READING: Adoption of an Ordinance amending Section 15.04.410 (Definition of Wildland-Urban Interface Fire Area) to adopt and incorporate the 2025 CAL FIRE Fire Hazard Severity Zone (FHSZ) Map for the City of Palo Alto. CEQA status: Not a Project. 15. SECOND READING: Ordinance of the Council of the City of Palo Alto Amending Chapter 18.42 (Standards for Special Uses) of the Palo Alto Municipal Code on a Temporary Basis to Modify the Procedure and Standards Governing the Review of Wireless Communications Facilities Applications; and repealing Resolution 9873 (Amending Objective Aesthetic, Noise, and Related Standards for Wireless Communication Facilities in the Public Rights of Way) (FIRST READING: May 19, 2025, PASSED: 7-0) City Manager Comments Ed Shikada, City Manager DRAFT ACTION MINUTES Page 4 of 5 City Council Meeting Draft Action Minutes: 06/09/2025 Action Items 16. Adoption of the Community Development Block Grant (CDBG) Fiscal Year (FY) 2025-2026 Annual Action Plan, 2025-2030 Consolidated Plan, and a Resolution Approving Use of CDBG Funds for FY 2025-2026 as Recommended by the Human Relations Commission. CEQA Status: Exempt under CEQA Guidelines Section 15378(b)(4). MOTION: Councilmember Stone moved, seconded by Councilmember Burt to: 1. Adopt the draft Fiscal Year (FY) 2025-2026 Annual Action Plan (AAP), 2025-2030 Consolidated Plan (ConPlan)1, and the associated resolution (Attachment A) allocating Community Development Block Grant (CDBG) funding for FY 2025-2026; 2. Authorize the City Manager to execute the FY 2025-2026 CDBG application to fund the FY 2025-2026 AAP and any other necessary documents concerning the application, and to otherwise bind the City with respect to the applications and commitment of funds; 3. Authorize staff to submit the FY 2025-2030 Consolidated Plan and 2025-2026 AAP to U.S. Department of Housing and Urban Development (HUD) by the extended deadline of August 16, 2025; 4. Authorize the City Manager or designee to draft and execute amendments to a loan agreement, regulatory agreement, and related documents necessary to implement City Council direction on the Alma Garden Rehabilitation Project in a form consistent with the City’s affordable housing loan documents and approved by the City Attorney; and 5. Direct staff to return to Council following budget adoption to amend the FY 2026 Budget Appropriation for the Community Development Block Grant Fund (2/3 vote needed) by: a. Increasing Revenue from Other Agencies by $616,233. b. Increasing General Expenses by $616,233. MOTION PASSED: 7-0 17. Approve a Resolution to Allow Dining and Retail Encroachments on Car Free California Avenue under PAMC Ch. 12.11; Direct Staff to Approve the Car Free California Avenue Outdoor Activation Program Regulations Including Reference to the Program fees in the FY 2026 Municipal Fee Schedule; Adopt a Resolution Allowing Open Containers in Conjunction with Third Thursday Performances in 2025; Direct Staff to Review Differences Between the Open Container Resolution and an Entertainment Zone as Recommended by the Retail Committee. CEQA Status – categorically exempt. Item Removed Off Agenda (Rescheduled to be heard at the June 17, 2025 City Council Meeting) DRAFT ACTION MINUTES Page 5 of 5 City Council Meeting Draft Action Minutes: 06/09/2025 AA1. LEGISLATIVE. Adoption of a Temporary, Emergency Ordinance Amending Title 18 and Title 21 to Reflect Changes in State Law in Accordance with Senate Bill 1123 and Related Direction to Staff Regarding Updates to the Land Use Element of the Comprehensive Plan. CEQA Status: Exempt Pursuant to Government Code Sections 65852.28 and 66499.41. New Item Added, Supplemental Report Added MOTION: Mayor Lauing moved, seconded by Councilmember Reckdahl to: 1. Adopt the proposed ordinance (Attachment A) by a four-fifths majority (six affirmative votes), temporarily updating Title 18 and Title 21 of the Municipal Code in accordance with recent changes in State law; 2. Direct staff to prepare a ordinance for review by Planning and Transportation Commission and City Council; and 3. Direct staff to develop a ordinance for Council consideration updating the Land Use Element of the Comprehensive Plan to more specifically differentiate single-family, low-, medium-, and high-density residential land use designations. MOTION PASSED: 7-0 Adjournment: The meeting was adjourned at 8:42 P.M. ATTEST: APPROVED: ____________________ ____________________ City Clerk Mayor NOTE: Action minutes are prepared in accordance with Palo Alto Municipal Code (PAMC) 2.04.160(a) and (b). Summary minutes (sense) are prepared in accordance with PAMC Section 2.04.160(c). Beginning in January 2018, in accordance with Ordinance No. 5423, the City Council found action minutes and the video/audio recordings of Council proceedings to be the official records of both Council and committee proceedings. These recordings are available on the City’s website. CITY COUNCIL DRAFT ACTION MINUTES Page 1 of 10 Regular Meeting June 16, 2025 The City Council of the City of Palo Alto met on this date in the Council Chambers and by virtual teleconference at 5:30 P.M. Present In Person: Burt, Lauing, Lu, Lythcott-Haims, Reckdahl, Veenker Present Remotely: Absent: Stone Agenda Changes, Additions and Deletions Public Comment Council Member Questions, Comments and Announcements Consent Calendar Disclosures on Agenda Item Number 12 from Councilmembers Burt, Lythcott-Haims, Lauing, Lu, and Veenker. Councilmember Veenker, Lu recused from Agenda Item N umber 20. Councilmember Burt, Reckdahl, Lythcott-Haims requested to pull Agenda Item Number 3. Councilmember Burt, Reckdahl, Lythcott-Haims requested to pull Agenda Item Number 11. Councilmember Burt, Lu, Lythcott-Haims requested to pull Agenda Item Number 12. MOTION: Councilmember Burt moved, seconded by Council member Reckdahl to approve Agenda Item Numbers 1-2, 4-10, 13-17, 19-21 (Item 18 Deferred to June 17, 2025 City Council Meeting), and to pull off Consent Agenda Item Numbers 3, 11, 12. MOTION PASSED ITEMS 1-2, 4-10, 13-17, 19, 21: 6-0-1, Stone absent DRAFT ACTION MINUTES Page 2 of 10 City Council Meeting Draft Action Minutes: 06/16/2025 MOTION PASSED ITEM 20: 4-0-1-2, Stone absent, Veenker, Lu Recused 1. Approval of Minutes from June 2, 2025 Meeting 2. Adoption of a Resolution Revising the Citywide Records Retention Schedule and Repealing Resolution No. 9565 3. Approval of Office of the City Auditor Emergency Preparedness: Wildfire Audit Report as Recommended by the Policy & Services Committee 4. Recommendation that the City Council to Refer to the Policy and Services Committee an Update to the City of Palo Alto Advocacy Process Manual to Address Sponsorship of Legislation; CEQA – Not a Project 5. Policy & Services Committee Recommends Approval to Amend the City Auditor Bakertilly FY2024 and FY2025 Budgets for Task Orders to Realign the Authorized Budgets with a Net Zero Impact; CEQA - Not a Project 6. Approval of the Council Appointed Officers (CAO) Committee‘s Recommendation to Approve the CAO Annual Evaluation Process, Timeline, and Questions; and Approval of Professional Services Contract Number C25193915 with the Municipal Resources Group, LLC (MRG) in an Amount Not to Exceed $208,500 for Council Appointed Officer Performance Evaluation Services for a Period of Three Years. CEQA Status - Not A Project 7. Recommend the City Council Adopt the Fiscal Year 2026 Investment Policy as Recommended by the Finance Committee: CEQA Status – Not a Project 8. Adoption of Memoranda of Agreement with International Association of Fire Fighters (IAFF) Local 1319, Fire Chiefs Association (FCA), and Utilities Managers and Professionals Association of Palo Alto (UMPAPA) for Terms Ending June 30, 2028, and Adoption of the Updated Management and Professional Compensation Plan and Corresponding Salary Schedules; CEQA Status – Not a Project 9. Approval of a Surveillance Use Policy for Security Cameras at Ada's Café at Mitchell Park Community Center and Library; CEQA Status - Not a Project 10. City Council Appointment of the Castilleja Neighborhood Committee in Accordance with Condition Number 33 Contained in Record of Land Use Action 2022-22 Authorizing Redevelopment of Private School at 1310 Bryant Street (Castilleja School). Environmental Assessment: Exempt from CEQA Pursuant to CEQA Guidelines Section 15061(b)(3). 11. Accept Electric System Reliability Key Performance Indices; CEQA – Not a Project DRAFT ACTION MINUTES Page 3 of 10 City Council Meeting Draft Action Minutes: 06/16/2025 12. Approval of a Director’s Interpretation Pursuant to PAMC Section 18.01.025 Concluding That Noncomplying Residential Gross Floor Area may not be Relocated Within a Structure; Denial of the Associated Appeal; Direction to Prepare a Future Code Amendment for Administrative De Minimis Exceptions to the Zoning Code; CEQA: Exempt Pursuant to CEQA Guidelines Section 15061(b)(3) 13. Approve and Authorize the City Manager or Designee to Execute Purchase Orders as Needed with the Okonite Company, Extending the Term for the Blanket Purchase Order for Purchase and Standardization of Underground Cable Through December 31, 2025, and to Increase the Not-to-Exceed Amount by $100,000, for the Extension Period. CEQA Status: Not a Project. 14. Approval of Construction Contract No. C25194279 with Estate Design and Construction, Inc. in the Amount Not-to-Exceed $283,770 and Authorization for the City Manager or Their Designee to Negotiate and Execute Change Orders up to a Not-to-Exceed Amount of $28,377 for the University Underpass Refurbishment Project; Capital Improvement Program University Avenue Parking Improvements (PF-14003) and Street Lights Improvements (PO-05054) projects; CEQA Status – Exempt under CEQA Guidelines Section 15301(c) 15. Approval of Change Order No. 3 to Contract C22183580 with MP Nexlevel of California, Inc., to reallocate funding from Change Order No. 2 to the Fiber-to-the-Premises (FTTP) Project and to incorporate FTTP into the Scope of Work extending through August 31, 2025; CEQA Status - For FTTP, Council action on this item is within the scope of the Final Initial Study and Mitigated Negative Declaration (IS/MND) for the Fiber-to-the-Premises Project, adopted on June 17, 2024; otherwise exempt. 16. Approval of Two Professional Services Contracts for a Term of Two Years: C25193536 with 4Leaf, Inc. in an Amount Not-to-Exceed $291,253 and C25194267 with Interface Engineering, Inc. in an Amount Not-to-Exceed $101,585 for Fire Station 4 Replacement Capital Improvement Program Project (PE-18004); CEQA Status - Exempt under CEQA Guidelines Sections 15302 and 15303 17. Approval of Contract Amendment No. 4 to Contract Number C19171363 with Professional Account Management LLC, dba Duncan Solutions, to Extend the Contract for one year to June 30, 2026, and to Adjust Billing Rates, Without an Increase to Compensation, for a Not -to-Exceed Amount of $767,000 for Parking Permitting and Citation Management Services; CEQA Status -- Not a Project. 18. Approval of Amendment No. 3 to Contract Number C23184827 with Nomad Transit, LLC (Via) in the Amount of $1,100,000 for a total not to exceed $4,901,550 over a Four-Year Term to Continue the City of Palo Alto On-Demand Transit Service through June 30, 2026; CEQA status - not a project. Item Deferred to June 17, 2025 City Council Meeting DRAFT ACTION MINUTES Page 4 of 10 City Council Meeting Draft Action Minutes: 06/16/2025 19. QUASI-JUDICIAL. 1033 Amarillo Avenue [25PLN-00015]: Request for a Parcel Map with Conditional Exceptions to Subdivide a 20,774-Square-Foot R-1 Property into Two Lots (10,661 and 10,113 Square Feet). Exceptions include Minimum Lot Width, Maximum Lot Size, and Residential Density. Zoning District: R-1 Single Family Residential. CEQA: Exempt pursuant to CEQA Guidelines Section 15301 (Existing Facilities). 20. SECOND READING: Ordinance of the Council of the City of Palo Alto Amending: Chapter 18.14 (Housing Incentives) of the Palo Alto Municipal Code to Implement Program 3.4E of the 2023-2031 Housing Element to Expand and Revise Regulations for the El Camino Real Focus Area; Making Conforming Amendments to Chapter 16.58 (Development Impact Fees) (FIRST READING: May 27, 2025; PASSED: 5-0-2, Lu, Veenker recused) 21. SECOND READING: Ordinance of the Council of the City of Palo Alto Amending Title 16 (Building Regulations) and Title 18 (Zoning) of the Palo Alto Municipal Code to Amend Requirements Relating to Accessory Dwelling Units and Junior Accessory Dwelling Units (FIRST READING: May 12, 2025; PASSED 7-0) City Manager Comments Ed Shikada, City Manager Action Items 22. PUBLIC HEARING & PROPOSITION 218 HEARING: Finance Committee Recommends Adoption of Six Resolutions: 1) Approving the Fiscal Year 2026 Wastewater Collection Utility Financial Forecast and Reserve Management Practices, Amending Wastewater Collection Rate Schedules S-1, S-2, S-6 and S-7, and Repealing Wastewater Collection Rate Schedules S-3 and S-4; 2) Approving the Fiscal Year 2026 Water Utility Financial Forecast, Reserve Management Practices and Reserve Transfers, and Amending Water Rate Schedules W-1, W-2, W-3, W-4, and W-7; 3) Approving the Fiscal Year 2026 Gas Utility Financial Forecast and Reserve Management Practices, Reserve Transfer, and General Fund Transfer, Approving the Distribution of a Climate Credit to Small and Medium Capacity G-2 Customers in December 2025, and Amending Gas Rate Schedules G-1, G-2, G-3 and G-10; 4) Approving the Fiscal Year 2026 Electric Utility Financial Forecast, Reserve Management Practices and Reserve Transfers, and Amending Electric Rate Schedules E-1, E-2, E-2-G, E-4, E-4-G, E-4 TOU, E-7, E-7-G, E-7 TOU, E-14, E-16, E- EEC-1, and E-NSE-1; 5) Amending Utility Rate Schedules EDF-1 and EDF-2, and Approving the Palo Alto Fiber Broadband Internet Services Rate Schedule F-1; and 6) Amending Storm Water Utility Rate Schedule D-1; CEQA Status: Not a project under CEQA Guidelines Sections 15378(b)(4) and (5) and Exempt Under Section 15273(a) DRAFT ACTION MINUTES Page 5 of 10 City Council Meeting Draft Action Minutes: 06/16/2025 Note: Resolutions are included in the packet as Attachments A – F, Attachment G reflects the Table of URLs for the Exhibits to Attachments A – F. MOTION: Councilmember Burt moved, seconded by Councilmember Reckdahl to adopt: 1. For the Water Utility, a Resolution (Attachment B): a. Approving the FY 2026 Water Utility Financial Forecast and Reserves Management Practices; and b. Approving the transfer of up to $3 million from the Rate Stabilization Reserve to the Operations Reserve in FY 2025; and c. Amending the Water Utility Rate Schedules effective July 1, 2025 (FY 2026): i. W-1 (General Residential Water service), ii. W-2 (Water Service from Fire Hydrants), iii. W-3 (Fire Service Connections), iv. W-4 (Residential Master-Metered and General Non- Residential Water Service), and v. W-7 (Non-Residential Irrigation Water Service) MOTION PASSED: 6-0-1, Stone absent MOTION: Vice Mayor Veenker moved, seconded by Mayor Lauing to adopt: 1. For the Wastewater Collection Utility, a Resolution (Attachment A): a. Approving the Fiscal Year (FY) 2026 Wastewater Collection Utility Financial Forecast and Reserves Management Practices; and b. Amending the Wastewater Collection Utility Rate Schedules effective July 1, 2025 (FY 2026): i. S-1 (Residential Wastewater Collection and Disposal), ii. S-2 (Commercial Wastewater Collection and Disposal), iii. S-6 (Restaurant Wastewater Collection and Disposal), and iv. S-7 (Commercial Wastewater Collection and Disposal – Industrial Discharger); and c. Repealing the Wastewater Collection Utility Rate Schedules effective July 1, 2025: i. S-3 (Industrial Waste Laboratory and Analysis Charges), and ii. S-4 (Hauled Liquid Waste Charges) MOTION PASSED: 6-0-1, Stone absent DRAFT ACTION MINUTES Page 6 of 10 City Council Meeting Draft Action Minutes: 06/16/2025 MOTION: Councilmember Burt moved, seconded by Mayor Lauing to adopt: 1. For the Gas Utility, a Resolution (Attachment C) with the following modification: a. Approving the FY 2026 Gas Utility Financial Forecast and Reserves Management Practices; and b. Approving the transfer of up to $1.5 million from the Gas Utility Operations Reserve to the Distribution Rate Stabilization Reserve in FY 2025; and c. Transferring up to 18% of gas utility gross revenues received during FY 2024 to the General Fund in FY 2026; and d. Amending the Gas Utility Rate Schedules effective July 1, 2025 (FY 2026): i. G-1 Residential Gas Service, ii. G-2 Residential Master-Metered and Commercial Gas Service, iii. G-3 Large Commercial Gas Service, and iv. G-10 Compressed Natural Gas Service); e. Remand the issue of a one-time credit to the Utilities Advisory Commission to be considered at the time they review the updated COSA. MOTION PASSED: 5-1-1, Lythcott-Haims no, Stone absent MOTION: Councilmember Burt moved, seconded by Council Reckdahl to adopt: 1. For the Electric Utility, a Resolution (Attachment D): a. Approving the FY 2026 Electric Utility Financial Forecast and Reserves Management Practices; and b. Approving the transfer of up to $5 million from the Electric Utility Supply Operations Reserve to the Distribution Operations Reserve in FY 2025; and c. Amending the Electric Utility Rate Schedules effective July 1, 2025 (FY 2026): i. E-1 (Residential Electric Service), ii. E-2 (Small Non-Residential Electric Service), iii. E-2-G (Residential Master-Metered and Small Non-Residential Green Power Electric Service, iv. E-4 (Medium Non-Residential Electric Service), v. E-4-G (Medium Non-Residential Green Power Electric Service), vi. E-4 TOU (Medium Non-Residential Time of Use Electric Service), vii. E-7 (Large Non-Residential Electric Service), viii. E-7-G (Large Non-Residential Green Power Electric Service), ix. E-7 TOU (Large Non-Residential Time of Use Electric Service), x. E-14 (Street Lights), xi. E-16 (Unmetered Electric Service) to recover capital and maintenance costs for utility pole attachments and telecom conduit, xii. E-EEC-1 (Export Electricity Compensation) to reflect 2024 avoided cost, and xiii. E-NSE-1 (Net Surplus Electricity Compensation) to reflect current projections of FY 2026 avoided cost; DRAFT ACTION MINUTES Page 7 of 10 City Council Meeting Draft Action Minutes: 06/16/2025 2. For the Fiber Optics Utility, a Resolution (Attachment E) with the following additions: a. Amending the Dark Fiber Optic Utility Rate Schedules, consistent with the applicable Consumer Price Index, effective July 1, 2025 (FY 2026): i. EDF-1 (Dark Fiber Licensing Services), ii. EDF-2 (Dark Fiber Service Connection Fees); b. Approving the new Palo Alto Fiber Broadband Internet Services Rate Schedule F- 1, for broadband internet services; c. Direct staff to evaluate one or more alternative pricing models, including a promotional price and consideration of a reduced pricing for higher speed categories; 3. For Storm Water Management, a Resolution (Attachment F): a. Amending the Storm Water Management Fee Rate Schedule, consistent with the applicable Consumer Price Index, D-1 effective July 1, 2025 (FY 2026): i. D-1 (General Storm and Surface Water Drainage) MOTION PASSED: 6-0-1, Stone absent 23. PUBLIC HEARING: Presentation on Status of Vacancies and Recruitment and Retention Efforts and Adoption of Budget Ordinance for Fiscal Year 2026, Including the Operating and Capital Budgets and Municipal Fee Schedule; Adoption of a Resolution determining the Appropriations Limit for Fiscal Year 2026; Vacancies and Recruitment Update (AB2561 Compliance); and Approval of FY 2026 Non-Profit Workplan Phase I Awards as Recommended by the Policy & Services Committee; and Adoption of a Resolution to Extend and Amend the Development Services Reserve Fund Policy; CEQA Status – Not a Project City Manager Ed Shikada and Vice Mayor Veenker recused from Stanford related portions of the item. MOTION: Councilmember Lu moved, seconded by Councilmember Burt to approve the Stanford related items for the FY 2026 budget (Attachment C) and authorize funding extension of the Palo Alto Link (PAL) On Demand Transit Services program for up to 6 months for FY 2026. MOTION PASSED: 5-0-1-1, Veenker recused, Stone absent MOTION: Councilmember Burt moved, seconded by Councilmember Lythcott-Haims to approve the allocations recommended by the Policy & Services Committee with the following changes: • Decrease $12,500 from the Policy and Services Committee recommendation and increase the City Manager’s Office budget for FY 2026 for Neighbors Abroad by $17,500; DRAFT ACTION MINUTES Page 8 of 10 City Council Meeting Draft Action Minutes: 06/16/2025 • Decrease $10,780 from the Policy & Services Committee recommendation and increase the Community Services budget for FY 2026 for the Environmental Volunteers by $10,780; • Increase of $50,000 for Magical Bridge Foundation to the Policy Services Committee recommendation to a total of $150,000 and also an increase of $25,000 for UNAFF to the Policy and Services Committee recommendation to a total of $45,000 (with $75,000 coming from FY 2025 Council Contingency). MOTION PASSED: 6-0-1, Stone absent Also, the net balance of $7,366 above FY26 budget based upon the revised P&S recommendation will be funded from FY25 Council Contingency for a total of $82,366. MOTION: Councilmember Burt moved, seconded by Councilmember Lu to: 1. Adopt the Fiscal Year 2026 Budget Ordinance (Attachment A), which includes: a. City Manager’s Fiscal Year 2026 Proposed Operating and Capital Budgets, previously distributed at the May 5 City Council Meeting (Attachment A, Exhibit 1) b. Amendments to the City Manager’s Fiscal Year 2026 Proposed Operating Budget (Attachment A, Exhibit 2) c. Amendments to the City Manager’s Fiscal Year 2026 Proposed Capital Budget (Attachment A, Exhibit 3) d. Fiscal Year 2026 City Table of Organization (Attachment A, Exhibit 4) e. Fiscal Year 2026 Municipal Fee Changes (Attachment A, Exhibit 5) f. Planning and Development Services Cost of Service Study and Municipal Fee Adjustments (Attachment A, Exhibit 6) g. Citywide Cost of Services Study and Municipal Fee Adjustments (Attachment A, Exhibit 7) h. In the Gas Fund: Remove $1,100,000 appropriation for Gas Climate Credits 2. Accept the Fiscal Year 2026 – 2030 Capital Improvement Plan 3. Adopt a Resolution determining the Appropriations Limit for Fiscal Year 2026 (Attachment B) 4. Comply with Assembly Bill 2561 / Government Code § 3502.3 regarding vacancies and recruitment efforts (Attachment D). 5. Approval of FY 2026 Non-Profit Workplan Phase I Awards as amended by Items 5-9 below. 6. Adopt a Resolution to Extend and Amend the Development Services Reserve Fund (DSRF) Policy Resolution, previously adopted by Resolution No. 10142. 7. Authorizing the Measure B funding for Safe Routes to School Planner position and advance recruitment as soon as possible. Amend the Fiscal Year 2026 Budget Ordinance in the General Fund by: DRAFT ACTION MINUTES Page 9 of 10 City Council Meeting Draft Action Minutes: 06/16/2025 1. Decreasing the Appropriation for the Palo Alto Link program by $550,000; 2. Decreasing Other Revenue from Stanford University by $260,000; 3. Decreasing Charges for Services Revenue by $40,000; 4. Increasing the Budget Stabilization Reserve by $250,000; 5. Increasing the appropriation for Neighbors Abroad in the City Manager’s Office by $17,500 6. Increasing the appropriation for Environmental Services in the Community Services Department by $10,780 7. Increasing the appropriation for Magical Bridge in the Nonprofit Workplan Phase I by $50,000; 8. Increasing the appropriation for UNAFF in the Nonprofit Workplan Phase I by $25,000; 9. Reappropriating the FY 2025 Council Contingent Account by $82,366. MOTION PASSED: 6-0-1, Stone absent 24. Approval of Five Items to Support the Newell Road/San Francisquito Creek Bridge Replacement Project PE-12011: 1) Construction Contract No. C25194068 with Granite Construction Company in the Amount Not-to-Exceed $9,399,787 and Authorization for the City Manager or Their Designee to Negotiate and Execute Change Orders to the Contract up to a Not-to-Exceed Amount of $939,979; 2) Approval of Professional Services Contract No. C25190454 with Zoon Engineering, Inc, in the Amount of $2,559,915 for Construction Management Services through December 31, 2026; 3) Approval of Amendment No. 7 to Contract No. C12142825 with NV5, Inc. to extend the contract term through December 31, 2026 for Construction Support; 4) Approval of Amendment No. 3 to a Cost Share Agreement with Santa Clara Valley Water District Providing Local Matching Funds in the Amount $155,458 for Design, Right of Way Appraisal and Acquisition and Construction Support for the Newell Road/San Francisquito Creek Bridge Replacement Project; and 5) Adoption of a FY 2025 Budget Amendment in the Capital Improvement Fund; CEQA Status - Environmental Impact Report for Newell Road/San Francisquito Creek Bridge (Resolution No. 9889) MOTION: Councilmember Reckdahl moved, seconded by Councilmember Burt to: 1. Authorize the City Manager or their designee, after considering Caltrans’ feedback on the Good Faith Effort documentation associated with the Disadvantaged Business Enterprise program, to approve and execute Construction Contract No. C25194068 with Granite Construction Company, in the amount not to exceed $9,399,787 for the Newell Road/San Francisquito Creek Bridge Replacement Project (CIP PE-12011): a. Authorize the City Manager or their designee to negotiate and execute one or more change orders to the contract with Granite Construction Company for DRAFT ACTION MINUTES Page 10 of 10 City Council Meeting Draft Action Minutes: 06/16/2025 related additional but unforeseen work that may develop during the project, the total value of which shall not exceed $939,787; 2. Approve and authorize the City Manager or their designee to execute the attached Professional Services Contract No. C25190454 with Zoon Engineering, Inc. to provide construction management services through December 31, 2026 and a total not-to- exceed amount of $2,559,915, including $2,327,196 for base services and $232,719 for additional services; 3. Approve and authorize the City Manager or their designee to execute Amendment No.7 to Contract No. C12142825 with NV5, Inc. to extend the contract term through December 31, 2026 for construction support services; 4. Approve and authorize the City Manager or their designee to execute Amendment No. 3 to Cost Share Agreement A3581S with the Santa Clara Valley Water District in the amount of $155,458, providing local matching funds; and 5. Approve a Fiscal Year 2025 Budget Amendment for the Capital Improvement Fund (requires a 2/3 vote): a. Increasing the revenue appropriation for the Newell Road/San Francisquito Creek Bridge Replacement Project (PE-12011) by $155,458 for Santa Clara Valley Water District’s local match contribution associated with completing design and right-of-way phases. MOTION PASSED: 6-0-1, Stone absent Adjournment: The meeting was adjourned at 11:20 P.M. ATTEST: APPROVED: ____________________ ____________________ City Clerk Mayor NOTE: Action minutes are prepared in accordance with Palo Alto Municipal Code (PAMC) 2.04.160(a) and (b). Summary minutes (sense) are prepared in accordance with PAMC Section 2.04.160(c). Beginning in January 2018, in accordance with Ordinance No. 5423, the City Council found action minutes and the video/audio recordings of Council proceedings to be the official records of both Council and committee proceedings. These recordings are available on the City’s website. CITY COUNCIL DRAFT ACTION MINUTES Page 1 of 6 Special Meeting June 17, 2025 The City Council of the City of Palo Alto met on this date in the Council Chambers and by virtual teleconference at 5:30 P.M. Present In Person: Burt, Lauing, Lu, Lythcott-Haims, Reckdahl, Veenker Present Remotely: Absent: Stone Special Orders of the Day 1. Proclamation Honoring Juneteenth NO ACTION Closed Session AA1. CONFERENCE WITH LABOR NEGOTIATORS City Designated Representatives: City Manager and his Designees Pursuant to Merit System Rules and Regulations (Ed Shikada, Kiely Nose, Sandra Blanch, Nick Raisch, Tori Post, Molly Stump, Lauren Lai, Paul Harper, and Jennifer Fine) Employee Organization: Service Employees International Union, (SEIU) Local 521 Hourly Unit, Utilities Management and Professional Association of Palo Alto (UMPAPA), Palo Alto Peace Officers’ Association (PAPOA), Palo Alto Police Management Association (PMA), International Association of Fire Fighters (IAFF) local 1319, Palo Alto Fire Chiefs’ Association (FCA); Authority: Government Code Section 54957.6 (a) MOTION: Councilmember Reckdahl moved, seconded by Vice Mayor Veenker to go into Closed Session. MOTION PASSED: 6-0-1, Stone absent Council went into Closed Session at 5:47 P.M. Council returned from Closed Session at 6:57 P.M. DRAFT ACTION MINUTES Page 2 of 6 Sp. City Council Meeting Draft Action Minutes: 06/17/2025 Mayor Lauing announced no reportable action. Agenda Changes, Additions and Deletions Public Comment Council Member Questions, Comments and Announcements Consent Calendar MOTION: Councilmember Lythcott-Haims moved, seconded by Mayor Lauing to approve Agenda Item Numbers 2-16 and to pull of consent Agenda Item Number AA2. MOTION PASSED: 6-0-1, Stone absent 2. Approval of the Office of the City Auditor Annual Risk Assessment and FY 2026 Audit Plan and Corresponding Task Orders 3. Climate Action and Sustainability Committee Recommendation to Council to Direct Staff to Develop an Affordable Multi-Family Housing Electrification Grant Program and to Approve a Budget Amendment in the Gas Utility Funds; CEQA Status: Under CEQA Guidelines section 15183, projects consistent with an existing general or comprehensive plan do not require additional CEQA review 4. Adopt a Resolution Declaring Surface Parking Lot T (APN: 120-15-100) Exempt Surplus Land and Approve an Exclusive Negotiation Agreement with Alta Housing for Development of 100% Affordable Housing on City-Owned Property Located at the Corner of Kipling Street and Lytton Avenue in Downtown Palo Alto; CEQA Status – Not a Project. 5. Approval of the 2025 update to the Sewer System Management Plan (SSMP) and Authorization for Staff to Make Future Administrative or Minor Updates to the SSMP as Needed; CEQA Status – Exempt under CEQA Guidelines sections 15301, 15302, 15308. 6. Approval for the City Manager or their Designee to Execute Contract No. C25194016 with SCA of CA, LLC, Utilizing Sourcewell Cooperative Contract No. 062421-SWP, to Procure Services for the Sweeping of Residential and Commercial Streets for a Period of Five Years for a Total Not-to-Exceed Amount of $9,883,850; CEQA Status – Not a Project DRAFT ACTION MINUTES Page 3 of 6 Sp. City Council Meeting Draft Action Minutes: 06/17/2025 7. Approval of General Services Contract No. C25193659 With Community Tree Service LLC for Utility Line Clearance Services in an Amount Not-to-Exceed $16,500,000 for a Period of Five Years; CEQA Status – Exempt Under Section 15301(h) 8. Approval of and Authorization for the City Manager or Designee to Negotiate and Execute a Purchase and Sale Agreement with C H LLC to Acquire the Industrial Property Located at 2575 East Bayshore Road (Assessor’s Parcel Number 008-03-015) for $8.5 million, with Leaseback to Insulation Sources, Inc. (dba Ico Rally) for $12,600/Month; CEQA Status – Exempt Under CEQA Guidelines Section 15301 9. Approval of Professional Services Contract Number C26193797 with Chandler Asset Management, Inc. in an Amount Not to Exceed $750,000 for Investment Management Services for a Period of Three Years; CEQA Status - Not A Project 10. Approval of Professional Services Contract Number C25193814 with Alta Housing BMR Services LLC in an Amount Not to Exceed $450,600 for Administration and Consulting Services for the City's Below Market Rate Housing Program for a Period of Two Years and Approve a FY 2026 Budget Amendment in the Residential Housing In-Lieu Fund. CEQA Status: Exempt under CEQA Guidelines 15262. 11. Authorize the City Manager to Negotiate and Execute 14 Professional Services Contracts for GIS On-Call Services, supplemental staffing, and programming services: C26193271A with Lynx Technologies Inc, C26193271B with Seven Tablets Inc, C26193271C with iSpatial Techno Solutions Inc, C26193271D with Geodesy, C26193271E with UDC, C26193271F with NV5 Geospatial Inc, C26193271G with SSP Innovations, C26193271H with Timmons Group, C26193271I with Infojini Inc, C26193271J with Sybyte Technologies Inc, C26193271K with 360S2G, C26193271L with Enterprise Maps, C26193271M with Farallon Geographics, C26193271N with Arini Geographics in an Amount Not-to-Exceed $2,000,000 for a Term of One Year; CEQA Status – Not a Project. 12. Authorize the City Manager to Negotiate and Execute Professional Services Contracts for SAP Enterprise Resource System On-call Programming Services: Contract C26193272A with 360S2G, C26193272B with Sage Group Technologies Inc, C26193272C with Avertra Corp, C26193272D with Amick Brown LLC, C26193272E with 2iSolutions Inc, C26193272F with the Peloton Group, C26193272G with Phoenix Business Inc, C26193272H with EPI-USE America in an Amount Not-to-Exceed $2,000,000 for a Term of One Year; CEQA status – Not a project. 13. Authorize the City Manager to Negotiate and Execute Eight Professional Services Contracts for On-Call IT Project Support and supplemental staffing: Contract C26193247A with INSPYR Solutions, C26193247B with AgreeYa Solutions, C26193247C with TechLink Systems, C26193247D with Compunnel Software Group, C26193247E with Progile Tech Inc, C26193247F with Omm IT Solutions, C26193247G with Infojini Inc, DRAFT ACTION MINUTES Page 4 of 6 Sp. City Council Meeting Draft Action Minutes: 06/17/2025 and C26193247H with California Creative Solutions Inc in an Amount Not to Exceed $1,500,000 for a Term of One Year; CEQA Status – Not a Project 14. Approval of Professional Services Contract No. C26193874 with Palo Alto Community Child Care in an Amount Not-to-Exceed $3,228,146 to Provide Management of the City’s Childcare Subsidy Program for a Term of Five Years. CEQA Status – Not A Project 15. Approval of Seven (7) On-Call Consulting Contracts to Provide Planning Application Processing and Supplemental Staffing for the Planning and Development Services Department over a Five-Year Term, as needed: 1) Arnold Mammarella, Architecture + Consulting, 2) CTC Media Group INC., 3) Good City Company 4) Metropolitan Planning Group, 5) Michael Baker International Inc., 6) Stantec Consulting Services, Inc., 7) Urban Planning Partners Inc. in the Amount not to exceed $2,000,000 ; CEQA Status: Not a Project. 16. Amend the Fiscal Year (FY) 2026 Budget Appropriation for the Community Development Block Grant (CDBG) Fund to Reflect Final Entitlement Grant Allocation. CEQA Status: Exempt under CEQA Guidelines Section 15378(b)(4). AA2. Approval of Amendment No. 3 to Contract Number C23184827 with Nomad Transit, LLC (Via) in the Amount of $1,100,000 for a total not to exceed $4,901,550 over a Four-Year Term to Continue the City of Palo Alto On-Demand Transit Service through June 30, 2026; CEQA status - not a project. (Originally Published on the June 16, 2025 City Council Meeting Agenda Item Number #18 - Deferred to June 17, 2025 City Council Meeting) Agenda Item AA2 Removed from Consent Calendar to be heard on Action at the June 17, 2025 City Council Meeting Action Items AA2. Approval of Amendment No. 3 to Contract Number C23184827 with Nomad Transit, LLC (Via) in the Amount of $1,100,000 for a total not to exceed $4,901,550 over a Four-Year Term to Continue the City of Palo Alto On-Demand Transit Service through June 30, 2026; CEQA status - not a project. (Originally Published on the June 16, 2025 City Council Meeting Agenda Item Number #18 - Deferred to June 17, 2025 City Council Meeting) City Manager Ed Shikada and Vice Mayor Veenker recused from Stanford related portions of the item. MOTION: Councilmember Burt moved, seconded by Councilmember Lythcott-Haims to: 1. Approve 12-month contract amendment for Palo Alto Link service with Nomad Transit; 2. Direct staff to consider and present termination implications and alternative service options by end of 2025; DRAFT ACTION MINUTES Page 5 of 6 Sp. City Council Meeting Draft Action Minutes: 06/17/2025 3. Consider opportunities created if requested grants are awarded; 4. Direct staff to negotiate with the provider to assure that the City has, to the extent possible, the prerogative to adjust the program, either in its service or length, over the next year. MOTION PASSED: 5-0-1-1, Veenker recused, Stone absent 17. Approve a Resolution to Allow Dining and Retail Encroachments on Car Free California Avenue under PAMC Ch. 12.11; Direct Staff to Approve the Car Free California Avenue Outdoor Activation Program Regulations Including Reference to the Program fees in the FY 2026 Municipal Fee Schedule; Adopt a Resolution Allowing Open Containers in Conjunction with Third Thursday Performances in 2025; Direct Staff to Review Differences Between the Open Container Resolution and an Entertainment Zone as Recommended by the Retail Committee. CEQA Status – categorically exempt. MOTION: Councilmember Burt moved, seconded by Councilmember Lythcott-Haims to: 1. Adopt a Resolution allowing dining and retail encroachments on Car Free California Avenue under existing PAMC Ch. 12.11 (Parklets) Attachment B; 2. Adopt a Resolution to allow open containers in conjunction with the Third Thursday music performances in 2025 (Attachment C); 3. Refer to staff a review expanding the open container resolution to an entertainment zone beyond Third Thursday; Fees: 4. Set program fees (application fee, renewal fee, license fee for use of the public right-of- way, and deposit) in alignment with the existing Ongoing Parklet Program as recommended in the FY 2026 Municipal Fee Schedule (scheduled for Council adoption on June 16); Parklets: 5. Direct staff to pursue standards for parklet structures; and a. Utilize the Architecture Review Board (ARB) for design recommendations and prospective processes for standard versus custom designs. b. Pursue edge materials in addition to planters – intended to go to ARB. DRAFT ACTION MINUTES Page 6 of 6 Sp. City Council Meeting Draft Action Minutes: 06/17/2025 c. Look at a street design that would allow for outdoor seating amounts and square footage close to or at the current amount that exists on California Avenue. Biking: 6. Reaffirm the interest in supporting Cambridge Avenue as a route for through biking a. Move forward with signage and other calming measures to reduce bike speeds of California Avenue. MOTION PASSED: 6-0-1, Stone absent Adjournment: The meeting was adjourned at 9:45 P.M. ATTEST: APPROVED: ____________________ ____________________ City Clerk Mayor NOTE: Action minutes are prepared in accordance with Palo Alto Municipal Code (PAMC) 2.04.160(a) and (b). Summary minutes (sense) are prepared in accordance with PAMC Section 2.04.160(c). Beginning in January 2018, in accordance with Ordinance No. 5423, the City Council found action minutes and the video/audio recordings of Council proceedings to be the official records of both Council and committee proceedings. These recordings are available on the City’s website.