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HomeMy WebLinkAbout2026-02-02 City Council Summary MinutesCITY COUNCIL SUMMARY MINUTES Page 1 of 15 Regular Meeting February 2, 2026 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 Veenker called the meeting to order and thanked Councilmembers for the significant time commitment over the past several weekends, including the recent Council retreat. City Clerk Mahealani Ah Yun called the roll and noted all Councilmembers were present. Special Orders of the Day 1. Proclamation Honoring Christopher Fujimoto for 25 Years of Service to the City of Palo Alto Mayor Veenker announced a proclamation honoring Christopher Fujimoto for 25 years of service to the City of Palo Alto. Public Works Director Brad Eggleston recognized Mr. Fujimoto’s quarter-century of service in the Watershed Protection Group at the Regional Water Quality Control Plant, highlighting his foundational role in developing the City’s award-winning stormwater pollution-prevention programs and noting that his contributions will be greatly missed. Director Eggleston extended best wishes to Mr. Fujimoto on his retirement and acknowledged the presence of his wife, Paula. Vice Mayor Stone read the proclamation: Whereas, Chris Fujimoto joined the City of Palo Alto in July 2000 as a Code Enforcement Officer with the City of Palo Alto Planning Department, and then joined Public Works Department Environmental Services – Watershed Protection in June 2005 as an Industrial Waste Investigator; and whereas, Chris inspected construction sites, green stormwater infrastructure, commercial and industrial businesses, municipal facilities, SUMMARY MINUTES Page 2 of 15 City Council Meeting Summary Minutes: 02/02/2026 construction dewatering, and other locations to ensure the City of Palo Alto Stormwater Ordinance and regional stormwater permit requirements were followed to protect local creeks and the San Francisco Bay from stormwater runoff pollutants; and whereas, Chris responded to illicit discharges to reduce the extent of harm to local creeks and watersheds and coordinated with the City of Palo Alto Fire Department, Public Works Public Services Division, and others for cleanup, enforcement, and resolution; and whereas, Chris actively participated in Santa Clara Valley Water District’s Creek Connections Action Group and led creek cleanups during his tenure with Watershed Protection to improve the health of the watershed and engage the public in environmental protection; and whereas, Chris established trash booms on Matadero and Adobe creeks in coordination with the Santa Clara Valley Water District and led trash boom cleanouts to prevent trash from flowing downstream to the Palo Alto Baylands and San Francisco Bay; and whereas, Chris represented the City of Palo Alto at regional meetings and during daily public service with expertise and professionalism; and whereas, Chris was certified by ReScape and trained in green stormwater infrastructure maintenance practices, bringing expertise to green stormwater infrastructure design and maintenance and best practices for landscaping maintenance; and whereas, Chris completed 25 years of dedicated service to both the City of Palo Alto’s Code Enforcement Team and the Watershed Protection Stormwater Program. Now, therefore, I, Vicki Veenker, Mayor of the City of Palo Alto, on behalf of the entire City Council, do hereby recognize Chris Fujimoto for his years of dedicated service. Councilmember Burt commended Mr. Fujimoto’s career contributions to the City’s environmental initiatives, noting the lasting positive impact on the community and environment, and thanked Mr. Fujimoto for his dedicated service. Mayor Veenker thanked Mr. Fujimoto for his contributions to stormwater management, creek cleanups, and public engagement efforts that have benefited the City’s watershed and invited Mr. Fujimoto to the dais for a photo. NO ACTION Closed Session 2. CONFERENCE WITH LEGAL COUNSEL—EXISTING LITIGATION Subject: Sami Gerges vs Yolanda Franco Clausen, City of Palo Alto, Santa Clara County Superior Court Case No. 25CV473428 Authority: Government Code Section 54956.9(d)(1) Public Comment: None. MOTION: Councilmember Lu moved, seconded by Councilmember Lauing, to go into Closed Session. SUMMARY MINUTES Page 3 of 15 City Council Meeting Summary Minutes: 02/02/2026 MOTION PASSED: 7-0 Council went into Closed Session at 5:39 p.m. Council returned from Closed Session at 6:05 p.m. Mayor Veenker announced no reportable action. Agenda Changes, Additions and Deletions City Manager Ed Shikada announced that agenda item number 8 is being deferred as key staff is not available due to sickness and will be rescheduling the item to a future date. Public Comment City Clerk Mahealani Ah Yun reported that there were no requests to speak on items not on the agenda and clarified that in-person attendance is required for such items, per Council policy, and Mayor Veenker confirmed this. Council Member Questions, Comments and Announcements Mayor Veenker reported attending the U.S. Conference of Mayors meeting in Washington, DC, where 2 issues dominated discussion. Artificial intelligence drew extensive focus, particularly the local impacts of AI-related data centers, including water use, energy demand, land use tradeoffs, and the need for coordinated policy discussions. Immigration enforcement was also a primary concern, with mayors nationwide expressing alarm over fear and disruption in communities, particularly in Minnesota. Mayors from Minneapolis, Portland, and Edina described significant community impacts and strain on local police resources, emphasizing that concerns centered on community fear and stability rather than federal immigration policy. Mayor Veenker stated that the City of Palo Alto is not seeking conflict and has no current information indicating ICE activity in Palo Alto. It was emphasized that while the City will not interfere with lawful federal operations and respects the supremacy clause in the Constitution, California law prohibits local law enforcement from cooperating with ICE. Mayor Veenker explained that if ICE were to attempt to use City property, the City could object and request relocation, and any refusal could prompt Council discussion regarding potential legal options. Staff is preparing guidance for City employees on appropriate and lawful responses across City facilities. Mayor Veenker further reported receiving an invitation from the U.S. Conference of Mayors to join an amicus brief in litigation challenging federal efforts to compel cooperation with ICE, noting that the matter may be brought forward for closed session consideration pursuant to prior Council direction. Mayor Veenker concluded by expressing appreciation for SUMMARY MINUTES Page 4 of 15 City Council Meeting Summary Minutes: 02/02/2026 staff preparedness and confidence in the City’s ability to act within its authority to protect residents. Vice Mayor Stone thanked Mayor Veenker for the report from the U.S. Conference of Mayors and expressed appreciation for the work undertaken there. Vice Mayor Stone highlighted recent student walkouts at Carlmont High School (where he is a teacher), Palo Alto High School, and Gunn High School as notable demonstrations. Ongoing discussions have occurred with Mayor Veenker, staff, and the Acting Police Chief regarding the City’s legal authority and preparedness, and Vice Mayor Stone encouraged clear communication of those parameters to the public. Vice Mayor Stone emphasized the significant fear currently experienced by immigrant communities and underscored the importance of the City doing everything within its authority to protect residents. Councilmember Lythcott-Haims thanked Mayor Veenker and Vice Mayor Stone for their leadership and supported holding a closed session to consider filing an amicus brief. Councilmember Lythcott-Haims commended staff for the OSV open house at Mitchell Park, noting strong attendance, effective community engagement, and transparent discussion of RV dweller impacts and support strategies. City Manager Ed Shikada, Deputy City Manager Chantal Cotton-Gaines, Assistant City Manager Melissa McDonough, and staff were thanked for their efforts. Councilmember Lythcott-Haims noted that TheatreWorks, a regional theater company founded in Palo Alto, announced interest in partnering with the City to relocate to the Cubberley Community Center. TheatreWorks would become a second potential partner for Cubberley, alongside Friends of Palo Alto Recreation and Wellness, and Councilmember Lythcott-Haims described the announcement as a vote of confidence in the Council’s vision for the site and continued progress on the project. Study Session 3. 44 and 88 Encina Avenue [25PLN-00308]. Request for Council Prescreening to Rezone the Subject Properties from Community Commercial (CC) to Planned Community/Planned Home Zoning (PC/PHZ) and to Allow Construction of 158 Units and 315 Parking Spaces in Two Seven-Story Structures. The Formal Application Will be Subject to California Environmental Quality Act (CEQA) Review. Zoning District: CC (Community Commercial). Current Planning Manager Claire Raybould presented a prescreening application for a proposed rezoning at 44 and 88 Encina Avenue, submitted by Ellis Partners. The proposal would rezone the site from Community Commercial to Planned Home to allow 158 rental units in two 7-story buildings with 3 levels of above-grade parking, located in the north parking lot of Town & Country Village and flanking the recently approved 70 Encina Avenue townhome project. The conceptual proposal exceeds current zoning standards, including a proposed height of 85 feet (50 feet allowed). Building 1 proposes approximately 93 percent lot coverage and a 2.86:1 floor SUMMARY MINUTES Page 5 of 15 City Council Meeting Summary Minutes: 02/02/2026 area ratio (FAR), while Building 2 proposes approximately 71 percent lot coverage and a 2.41:1 FAR, compared to typical allowances of 50 percent lot coverage and significantly lower FAR limits in the district. The project would remove approximately 150 surface parking spaces, add 165 residential parking spaces, and provide 158 bicycle parking spaces. Proposed open space includes 4th-floor wellness decks, 7th-floor sky lounges on both buildings, and a 7th-floor sky deck on Building 1. It was emphasized that the prescreening is intended solely for early Council feedback, with no formal action taken and no opinions formed at this stage. Current Planning Manager Raybould presented general building elevations showing views from Town & Country Village, Encina Avenue, El Camino Real, and the Caltrain tracks. Current Planning Manager Raybould outlined key considerations for Council feedback, including building height and daylight plane transitions relative to the approved 70 Encina project and the adjacent Town & Country Village, which is a designated historic resource subject to future historic integrity analysis. Additional considerations included the presence of 9 existing parcels that the applicant does not propose to merge, requiring further evaluation; parking, circulation, and traffic impacts; utility constraints, including required undergrounding of overhead lines along Encina Avenue and potential relocation of utilities near the Caltrain corridor; and public benefits, noting the requirement to provide 20 percent affordable housing at 80 percent AMI, totaling 32 BMR units. Council's input on appropriate public benefits was requested. Current Planning Manager Raybould noted that SB 79, effective July 1, 2026, would allow development standards of up to 65 feet in height, 3.0:1 FAR, and approximately 100 dwelling units per acre on the site. No CEQA review is required for a prescreening application, and environmental analysis would occur if a formal application is submitted. Staff recommended that Council conduct the prescreening and provide informal, nonbinding feedback on the proposed rezoning request. Ellis Partners Senior Vice President Patrick Flynn stated that the applicant is seeking early Council feedback ahead of a formal development application and emphasized Ellis Partners’ long stewardship of Town & Country Village and commitment to protecting its role as a community-serving retail destination. The proposed residential project responds to prior Council request to pursue higher-density housing on the north parking lots and aims to address local housing needs, support nearby businesses, and contribute positively to Palo Alto’s architectural character. Ellis Partners is under contract to purchase the 70 Encina property and anticipates incorporating those parcels into a future formal application to create a single, integrated development spanning the north side of Town & Country Village, potentially increasing the unit count to approximately 200. SVP Flynn stated that staff confirmed the current prescreening would satisfy prescreening requirements for the future combined project and requested that Council comments focus on the project’s overall merits rather than its relationship to the previously approved 70 Encina design. The project would replace all existing retail parking spaces, resulting in no net loss of commercial parking, and the applicant is developing a construction-period parking plan to minimize impacts to Town & Country Village tenants and customers. SVP Flynn expressed appreciation for Council feedback and noted that unique utility easement conditions affecting the site will require coordination and flexibility with City utilities staff, for which Council support was requested. SUMMARY MINUTES Page 6 of 15 City Council Meeting Summary Minutes: 02/02/2026 Jones Architecture Founding Principal Alan Jones presented the architectural concept for the proposed 158-unit, 2-building project adjacent to downtown and Stanford University. The design emphasizes pedestrian frontage and connectivity along Encina Avenue and the Town & Country Village paseo, with buildings stepping back to preserve views and daylight. Architectural cues are drawn from Town & Country Village, including Craftsman and Mission influences such as red tile roofs, deep overhangs, horizontal massing, and warm, textured cladding. Parking is fully concealed within the buildings across the first 3 levels, screened to minimize visual impact, with more than 1:1 resident parking and full replacement of existing surface parking. Upper levels incorporate inset balconies, terraces, and roof amenities. The C-shaped buildings are oriented around central courtyards to reduce perceived mass and improve openness. Principal Jones stated that the project is intended to be context-responsive, provide needed housing, and integrate sensitively with surrounding uses, while noting that the design remains conceptual and subject to refinement. Councilmember Burt raised circulation concerns related to the Encina Avenue access, noting that Town & Country Village’s primary entrances experience congestion while the Encina entrance remains underutilized. Support was expressed for evaluating signal improvements, including potential relocation or modification of the signal near PAMF, to better distribute ingress and egress traffic. Councilmember Burt also referenced longstanding congestion associated with southbound left turns from El Camino Real toward Town & Country and Embarcadero Road, stating that the current project presents an opportunity to revisit prior traffic analyses and consider improvements. Councilmember Burt commented that roof tile compatibility with Town & Country Village would be important and noted that sloped roofs must be visible from ground level for the tiles to be effective and that flatter roof forms could undermine the intended aesthetic compatibility. Parking demand at Town & Country Village was described as constrained as vacancies decline, and expanded use of Palo Alto TMA programs was suggested to reduce employee parking demand. Improvements to bicycle access were encouraged, including additional bike racks in more visible locations and better bicycle circulation, to help offset parking limitations and support retail activity. Councilmember Burt also expressed support for integrating the 70 Encina parcels into the project, which he described as an interesting opportunity. Councilmember Lu requested clarification regarding staff comments on parcels not being redrawn and utility constraints, asking whether feedback was being sought from Councilmembers. Current Planning Manager Raybould explained that staff was not seeking specific comment but noted that constructing buildings across multiple unmerged parcels would be unusual in Palo Alto and could require further exploration and uncommon approaches, such as master tenant agreements, to address building code and firewall requirements. No land use or tax implications were anticipated. Regarding utilities, Current Planning Manager Raybould stated that extensive utility easements near the Caltrain tracks may limit feasible building placement and require further analysis to determine whether utilities can be relocated or whether building design modifications would be necessary, while frontage utilities would require undergrounding. SUMMARY MINUTES Page 7 of 15 City Council Meeting Summary Minutes: 02/02/2026 Councilmember Lythcott-Haims asked staff to clarify the significance of the site not being designated as a Housing Element Inventory Site and whether placing housing on a non- inventory site affects the City’s RHNA obligations. Current Planning Manager Raybould explained that housing developed on non-inventory sites still counts toward RHNA; however, inventory sites allow exclusively residential uses regardless of underlying zoning. Because the site is not on the inventory and is currently zoned for mixed use, the applicant would need to seek a rezoning to allow a fully residential project. Public Comment: 1. Herb B. raised questions regarding the applicability of SB 79 to the project parcels, suggesting the law should apply only to parcels that individually qualify and not to merged parcels. Concern was expressed that use of the Planned Home Zoning (PHZ) may require a zoning code amendment. Reference was made to a prior application for 44 and 88 Encina that identified the site as a Housing Element inventory site, with the commenter asserting that only the parcel adjacent to the Caltrain tracks qualifies as an inventory site and that merging parcels should not extend those rights. The commenter also questioned whether deed restrictions should prohibit sale or lease of the units to Stanford University, citing prior housing mitigation discussions at the County level. Uncertainty was expressed regarding whether the current proposal reflects a revised SB 79 application or differs materially from earlier submissions. 2. Jonathan G. expressed concern about the City’s retail environment, noting vacant storefronts on California Avenue, downtown, and El Camino Real despite City efforts to support retail through zoning and regulatory changes. Concerns were raised about demonstrations near El Camino Real and Embarcadero spilling onto Town & Country Village property, creating safety concerns for shoppers and retailers, including incidents involving flags placed on private property. Reference was made to a 2024 demonstration at Stanford Shopping Center that resulted in vandalism and injury to a police officer. The commenter requested the City take steps to ensure the safety of the public, employees, and customers at retail centers such as Town & Country Village. 3. Adam S., speaking on behalf of Palo Alto Forward and as a 10-year resident, expressed strong support for new housing at Town & Country Village and thanked the City Council and staff for efforts to increase housing supply. Support was voiced for the development of approximately 150 new homes at the site, citing proximity to transit, bike infrastructure, and jobs. The commenter described the project as well suited for residents seeking to remain in Palo Alto, including families and long-term community members. Palo Alto Forward urged the City to provide encouragement to advance housing development at this location. SUMMARY MINUTES Page 8 of 15 City Council Meeting Summary Minutes: 02/02/2026 4. Deborah G. asked whether the proposed apartments would be rental units or for-sale housing, expressing concern about long-term corporate ownership of large rental developments and potential impacts on affordability. The commenter stated support for the project if units are intended for individual homeownership. Deborah G. believed that traffic issues at the Embarcadero Road entrance to Town & Country Village are a City responsibility and noted her prior requests to address those concerns. Councilmember Lythcott-Haims disclosed that she had previously met with representatives of the Ronald and Ann Williams Charitable Foundation, Ellis Partners, Jones Archtecture, and BDE Architecture. Councilmember Lythcott-Haims expressed appreciation for the applicant’s efforts to advance higher-density housing, including the potential consolidation with 70 Encina, and supported the architectural approach drawing from Town & Country Village, while agreeing that roof slopes should allow the tile detailing to be visible. Councilmember Lythcott-Haims praised the stepped massing and amenity decks and emphasized that traffic circulation will require careful study given added residents, retail activity, and proximity to Palo Alto High School, identifying traffic flow and parking compatibility as the primary concern. Councilmember Lu supported housing at the site, including the affordable units and potential consolidation with 70 Encina, and expressed appreciation for the architectural design, materials, and sustainability elements while encouraging additional upper-level landscaping. Councilmember Lu commented on circulation, noting the value of accessible bicycle parking for residents and visitors, improved bike facilities, and safe design of shared roadway and paseo areas, including clear connections to the Embarcadero bike path and adjacent alleys. Councilmember Lu stated interest in seeing future refinements to pedestrian and bicycle safety and accessibility and expressed appreciation for the proposal. Vice Mayor Stone supported the project’s location, design, and mix of unit sizes, highlighting the inclusion of family-sized apartments and expressing support for the rental housing component. Agreement was expressed with earlier comments regarding rooftop visibility and circulation improvements, and the site’s proximity to transit, retail, and services was described as well suited for housing. Vice Mayor Stone considered the reduced parking supply reasonable given the location and low likelihood of neighborhood spillover, citing available transportation options and Town & Country parking enforcement. Appreciation was expressed for clarification regarding BMR units and interest in the potential consolidation with 70 Encina. Councilmember Lauing commended the applicant for advancing a strong housing proposal and expressed appreciation for the commitment to ownership and long-term investment in the site. Access and circulation were identified as the primary concern, with emphasis on thoroughly addressing traffic flow to avoid operational conflicts. Support was expressed for replacing commercial parking and providing resident parking beyond minimum state requirements, while cautioning that existing retail demand may still constrain capacity and encouraging further exploration of additional parking where feasible. Utility relocation was described as a significant unresolved issue requiring cooperative problem-solving. Height, daylight plane impacts, and SUMMARY MINUTES Page 9 of 15 City Council Meeting Summary Minutes: 02/02/2026 limited setbacks were noted as sensitivities, with encouragement to explore design softening where possible. Additional terracotta façade treatment was suggested to strengthen architectural character. Councilmember Lauing expressed appreciation for meeting the affordable housing baseline and providing a diverse unit mix, and viewed the overall progress on the proposal positively. Councilmember Reckdahl expressed strong support for the project’s design and location, highlighting proximity to downtown, transit, and major employment centers such as Stanford Research Park as well suited for biking and car-free commuting. Increased bicycle parking was encouraged, suggesting a ratio closer to 1 space per bedroom rather than 1 space per unit, given expected demand. Support was expressed for merging the 70 Encina parcels to create a more cohesive project. Councilmember Reckdahl suggested incorporating Palo Alto TMA passes and consideration of a signal at Encina as a potential circulation improvement. The need to accommodate rideshare and delivery activity was raised to avoid blocking traffic, and the applicant indicated such accommodations would be incorporated during further design. Councilmember Reckdahl expressed overall support for the proposal. Mayor Veenker summarized Council feedback as strongly supportive, expressing enthusiasm for the pending integration of the 70 Encina parcel into a unified design and interest in seeing a cohesive future proposal. Appreciation was expressed for replacing Town & Country parking and maintaining customer access. SVP Flynn confirmed the project is planned as rental housing. Mayor Veenker encouraged continued attention to traffic circulation, particularly cut-through patterns from Embarcadero, and supported the 20 percent affordable housing component, unit mix, and architectural elements, including the red tile roofs. Councilmember Burt added that if Encina becomes a primary gateway into Town & Country, clear signage at El Camino Real and at the tunnel entrance would be essential because the access is not intuitive. Minimizing construction-period parking impacts was emphasized, with a recommendation to use Palo Alto TMA as an effective long-term strategy for customers. NO ACTION Consent Calendar Public Comment: None. MOTION: Vice Mayor Stone moved, seconded by Councilmember Reckdahl, to approve Agenda Item Numbers 4-6. MOTION PASSED: 7-0 4. Approval of Minutes from January 12, January 15, and January 20, 2026, Meetings. SUMMARY MINUTES Page 10 of 15 City Council Meeting Summary Minutes: 02/02/2026 5. Approve and Authorize the City Manager to Execute an MOU Between the City of Palo Alto and the County of Santa Clara to Support the City's Psychiatric Emergency Response Team (PERT) Program for a Term of Five Years and a Not-To-Exceed Amount of $1.4 Million and Approval of a Budget Amendment in the General Fund and Stanford University Medical Center Fund; CEQA status - not a project. 6. SECOND READING: Ordinance of the Council of the City of Palo Alto Amending Chapter 4.54 (“Massage Establishments”) and Chapter 4.56 (Hot Tub/Sauna Establishments) of Title 4 (Business Licenses and Regulations) (FIRST READING: January 12, 2025, PASSED 7- 0) City Manager Comments City Manager Ed Shikada announced aerial mosquito treatment in the Baylands beginning Wednesday, with additional public information forthcoming regarding trail access. Vegetation reduction work near Interstate 280 and Page Mill Road was also announced as a wildfire prevention effort in coordination with regional partners. Community members were directed to the City website for a number of February events, including the Lunar New Year Fair on February 22 and summer camp registration opening February 5. Upcoming City Council meetings were previewed, including rescheduling the Sustainability/Climate Action Plan (S/CAP) work plan to March 2. The February 9 meeting items include a weed abatement public hearing, Cubberley update, and Procedures & Protocol Handbook update. No meeting is scheduled the week of February 16. The February 23 meeting includes an OSV ad hoc report, mid-year budget actions, and retreat follow-up, and March 2 will include a Palo Alto Link study session, the rescheduled S/CAP item, and the Reliability and Resiliency Plan. Action Items 7. 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 City Manager Ed Shikada explained that this item had previously been scheduled on consent late in 2025 when agendas were full, was pulled, and is now before Council for action. It was proposed to present an overview of all commissions first, followed by Council questions organized by individual commission. Planning and Development Services Assistant Director Jennifer Armer introduced 3 work plans for Council discussion, including items presented on behalf of Senior Historic Planner Steven Switzer for the Architectural Review Board (ARB) and Historic Resources Board (HRB), and noted that the chairs of the respective bodies were present. SUMMARY MINUTES Page 11 of 15 City Council Meeting Summary Minutes: 02/02/2026 Assistant Director Armer reported that the ARB reviewed at least 20 projects during the year, provided input on numerous standards, guidelines, ordinances, and plans, and selected 6 winners from more than 100 candidates for the 2025 Architectural Review Board Awards. The 2026 ARB work plan prioritizes continued review of planning applications; feedback on new guidelines, ordinances, streetscapes, and standards; review of area plans and streetscape improvements; and improved coordination with other boards, commissions, and Council. Assistant Director Armer shared that the HRB added 21 properties to the Historic Inventory, recommended 5 category upgrades, reviewed 5 development proposals including the rehabilitation at 1023 Forest Avenue, and established a local Historic Preservation Award program anticipated to launch early this year. The 2026 HRB work plan prioritizes clarifying the Board’s role in the code, expanding education resources, updating the Local Inventory Resource list, reconsidering preservation incentives, and implementing the award program, with members already conducting preliminary research pending Council direction on staff resources. Assistant Director Armer summarized the Planning and Transportation Commission (PTC) accomplishments in 2025, noting extensive work that included input on 9 transportation initiatives, participation in 9 Comprehensive Plan, Housing Element, and Council priority efforts, and review of 6 development projects, with examples including Palo Alto Link, the Safety Action Plan, the El Camino Real Retail Node Map, and the 100 percent affordable housing project at 3265 El Camino Real. The 2026 PTC work plan identifies 9 priority items, combining carryover efforts with new tasks reflecting the Commission’s broad scope of work. Utilities Director Alan Kurotori reported that the Utilities Advisory Commission (UAC) managed a heavy workload in 2025, including review of all utility rates supporting approximately $470M in annual revenues, evaluation of voluntary residential time-of-use electric rates, and recommendation to retain the City’s 30-year Western Area Power Administration hydroelectric contract, which supplies about 40 percent of Palo Alto’s carbon-free energy. The UAC also reviewed annual wildfire mitigation updates and improvements to PSPS public notifications, received grid modernization and fiber system construction updates, and discussed the need for a second transmission corridor now advancing with CAISO coordination. The 2026 UAC work plan emphasizes rate affordability, including a proposal to shift credit card processing fees to save an estimated $1.2M, data center competitiveness, phased grid modernization amid supply chain constraints, expansion of Fiber to the Premises, and continued long-term planning for the natural gas transition. Public Comment: None. Vice Mayor Stone expressed support for the HRB's new preservation award program and asked about timing for ARB aesthetic standards for wireless communication facilities. Assistant Director Armer explained the item remains on the work plan but has been deferred due to higher-priority housing applications, with the goal of advancing it this year. City Manager Shikada added that this topic is expected to be part of the Council objectives discussion on SUMMARY MINUTES Page 12 of 15 City Council Meeting Summary Minutes: 02/02/2026 February 23 and would involve coordination among staff, the ARB, and the City Attorney’s Office. It was confirmed that current standards remain in effect until updated. Councilmember Lu thanked commission and board members for their significant workload and noted that members often develop deeper expertise in their subject matter. Councilmember Lu asked about sequencing work on South of Forest Area (SOFA) objective standards under the Housing Element in light of anticipated SB 79 implementation, emphasizing the importance of aligning standards with future density allowances. Assistant Director Armer confirmed that converting SOFA guidelines into objective standards remains part of the Housing Element work plan and will be reviewed for consistency with SB 79. Councilmember Lu inquired whether Ramona Street could be considered alongside California Avenue in streetscape and area plan discussions. Assistant Director Armer responded that Ramona Street could be reviewed even if not explicitly listed in the work plan. Councilmember Lu encouraged flexibility given similarities between the corridors. Councilmember Lu also expressed support for HRB efforts focused on education and zoning incentives to support historic preservation. Councilmember Burt stated that review of the zoning code clarified that the ARB's mandate extends beyond aesthetics to broader urban design considerations, which overlaps at times with the PTC's role. It was recommended adding a work plan item to clarify and improve coordination between those bodies. Councilmember Burt emphasized that upcoming SB 79 and SOFA planning efforts will require meaningful ARB and PTC involvement to ensure informed community outcomes. Support was expressed for expanding objective design standards to multi-story projects and for continued efforts to streamline coordination between the commissions to reduce redundancy and improve decision-making. Councilmember Reckdahl recommended establishing a consistent process for Council to solicit input from the PTC and ARB representatives when projects reach Council, noting their work can provide valuable insight. Appreciation was expressed to the UAC for the Cost-of-Service Analysis (COSA) report and to the PTC for their work on retail zoning changes. Improved coordination between PTC and ARB was encouraged, including evaluating joint meetings or regular communication among commission leadership to reduce conflicting guidance to applicants. Councilmember Reckdahl expressed support for ARB’s urban design role and prioritization of wireless aesthetic standards, while recognizing housing workload constraints. It was encouraged to have the PTC work plan integrate bicycle planning more explicitly into new neighborhood development. Greater coordination between the Retail Committee and PTC was also suggested. For utilities, opportunities to maximize Advanced Meter Infrastructure data for time-of-use programs and leak detection were raised, along with the need to establish clear grid reliability goals as electrification expands. Councilmember Reckdahl encouraged consideration of recycled (“purple pipe”) water and graywater planning for high-demand uses such as data centers and also expressed support for expanding historic marker efforts through the HRB. Councilmember Lauing commended the quality and effort of the City’s commissions and emphasized that work plans should largely be commission-driven. Support was expressed for SUMMARY MINUTES Page 13 of 15 City Council Meeting Summary Minutes: 02/02/2026 improving communication among commissions and with Council, referencing prior chair and vice chair meetings as productive listening opportunities. The ARB’s proposal to strengthen formal Council coordination was identified as warranting future study and response. Value was also noted in allowing commissions, including the UAC, to designate representatives to present perspectives directly to Council. Councilmember Lauing raised a process concern regarding whether commissions meet frequently enough to manage increasing workloads, particularly for the UAC and PTC, while noting that some meetings have been canceled, possibly due to staff readiness. Councilmember Lauing stated that commission work plans are productive and require Council response. Mayor Veenker commended the commissions’ workload and community commitment and noted prior discussions last year between Council and commission leadership supporting greater coordination between the ARB and PTC. Planning and Transportation Commission Chair Allen Akin reported that he and ARB Commissioner Hirsch have been developing a framework outlining structure and topics for improved collaboration and hope to pursue a staff-supported long-term implementation process. Mayor Veenker acknowledged that this effort is already underway even if not explicitly listed in the work plan. Mayor Veenker supported improving information flow between Council and boards and commissions and noted upcoming Council discussions on structured commission engagement and grid modernization reliability goals. Mayor Veenker expressed interest in the UAC's review of data center impacts. Director Kurotori explained that the Commission is evaluating competitiveness, system capacity, ratepayer impacts, and water use, noting that modern facilities primarily use closed-loop and recycled water systems. The UAC will develop policy- level recommendations for Council consideration. Mayor Veenker emphasized the importance of weighing utility capacity, ratepayer impacts, water use, visual considerations, and traffic as part of that discussion. Councilmember Lu supported the ARB’s requested objectives as reasonable and deserving Council response, including interest in advancing a California Avenue area plan if resources allow. Concern was expressed that the current PTC work plan emphasizes bike and pedestrian planning without clearly prioritizing implementation of specific projects or quick-build improvements. Councilmember Lu also noted the need for more flexible communication between PTC and Council when projects stall, citing a current traffic-calming effort as an example. Appreciation was expressed for UAC’s rate and commercial insights, with interest in future UAC feedback on the Fiber to the Premises pilot as additional performance data becomes available. Councilmember Burt supported establishing oral liaison reports as a defined part of Council meetings and recommended that commission work plans acknowledge SB 79 given its anticipated impact. Concern was expressed about unclear coordination between the UAC and the S/CAP effort, with a request to clarify respective roles and include that work in upcoming SUMMARY MINUTES Page 14 of 15 City Council Meeting Summary Minutes: 02/02/2026 plans. The UAC was encouraged to develop quantitative electric reliability targets to support electrification goals. Councilmember Burt noted that the UAC work plan accomplishments emphasized utility department activities rather than the commission’s work. Finally, Councilmember Burt recommended formalizing the annual work plan timeline so Council review occurs earlier and supported maintaining regular Council–commission discussions as part of standard procedure. Mayor Veenker invited comment from the UAC Chair regarding data centers and commission coordination. Utilities Advisory Commission Chair Greg Scharff stated that the UAC is evaluating data center impacts primarily through a ratepayer lens, including determining thresholds where additional load may no longer be beneficial. Chair Scharff noted cautious interest in the Fiber to the Premises pilot pending performance data and expressed support for phased grid modernization aligned with demonstrated need and cost management. Regarding coordination with the S/CAP effort, Chair Scharff described the bodies as operating in parallel, with UAC focused on balancing climate goals with rate stability and system reliability, and suggested that maintaining separate perspectives may be appropriate. Mayor Veenker acknowledged the overlap in scope and indicated the relationship could be revisited during future S/CAP work plan discussions. Mayor Veenker noted that staggering board and commission work plan reviews was intended to align with appointment timing but acknowledged that the delay can make work plans feel outdated. City Manager Shikada added that the staggered approach also helps manage Council agenda workload, while staff has had discussions about whether the timing best supports newly appointed commissioners. Mayor Veenker stated that Council action was required to approve the board and commission work plans and invited motions or proposed amendments for consideration. Councilmember Burt moved to approve the proposed work plans and presented his proposed amendments. Councilmember Reckdahl seconded the motion. Councilmember Lu clarified that the second ARB bullet point concerned expanding objective standards to townhomes, not larger multifamily projects. Assistant Director Armer confirmed this, and Councilmember Burt amended the motion accordingly. Council discussion followed regarding inclusion of reliability goals in the UAC work plan. Director Kurotori explained that reliability metrics and improvements would be addressed through the forthcoming Reliability and Resiliency Strategic Plan, and City Manager Shikada noted that Council would consider that framework in a future discussion. Councilmember Burt clarified the amendment was intended only to include reliability goal-setting in the annual work plan, not to establish immediate targets. Councilmember Lauing suggested expanding the third bullet of the ARB amendment to include the PTC alongside the ARB and HRB, and Councilmember Burt agreed. SUMMARY MINUTES Page 15 of 15 City Council Meeting Summary Minutes: 02/02/2026 MOTION: Councilmember Burt moved, seconded by Councilmember Reckdahl, to approve the Architectural Review Board, Historic Resources Board, Planning and Transportation Commission, and Utilities Advisory Commission Fiscal Year 2026 Work Plans with the following amendments: Planning and Transportation Commission: • Add a reference to SB79 as a project. Utilities Advisory Commission: • Add project to propose specific goals for reliability. Architectural Review Board: • Add a reference to SB79 as a project. • Endorse recommendation to expand the objective standards of residential to townhomes. • Endorse efforts to coordinate and streamline work between the Historic Resources Board and Architectural Review Board, and Planning and Transportation Commission. MOTION PASSED: 7-0 8. Review the 2024 Greenhouse Gas Inventory and S/CAP Key Performance Indicators Annual Progress Report, and Approve the 2026-2027 S/CAP Work Plan and Receive Six S/CAP Studies Recommended by the Climate Action and Sustainability Committee; CEQA Status: Review GHG Inventory and Key Performance Indicators: Not a Project; Potential Environmental Impacts of the S/CAP Work Plan were Studied in the June 5, 2023 S/CAP Addendum to the 2017-2031 Comprehensive Plan EIR; this Project is also Exempt Pursuant to CEQA Guidelines Section 15183 Agenda Item #8 was not heard and deferred to a future City Council meeting date. Mayor Veenker adjourned the meeting in memory of Phil Bobel, a longtime City employee and former Assistant Director of Public Works, and recognized his environmental leadership and public service. Adjournment: The meeting was adjourned at 8:41 p.m.