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HomeMy WebLinkAbout2026-02-23 City Council Summary MinutesCITY COUNCIL SUMMARY MINUTES Page 1 of 22 Special Meeting February 23, 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. City Clerk Mahealani Ah Yun called the roll and noted all Councilmembers were present. Clerk Ah Yun announced that free live translation is available through the Wordly app, with instructions provided in the chambers. Attendees may use personal devices or borrow equipment to access translated text and audio, including for public comments given in languages other than English. This announcement was provided in Spanish by staff. Mayor Veenker expressed appreciation to the Clerk’s Office for implementing live translation services and emphasized the importance of expanding inclusive participation in Council meetings. Closed Session 1. 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) Number of potential cases: 1, as Defendant SUMMARY MINUTES Page 2 of 22 Sp. City Council Meeting Summary Minutes: 02/23/2026 Public Comment 1. Herb B. questioned the scope of Council subcommittee discussions related to the project and stated that project design or planning amendments should occur in open session. Herb B. urged Council to comply with the law and limit closed session discussions to the legal dispute regarding whether the project qualifies for AB 130 CEQA exemption. MOTION: Vice Mayor Stone moved, seconded by Councilmember Lauing, to go into Closed Session. MOTION PASSED: 7-0 Council went into Closed Session at 5:37 p.m. Council returned from Closed Session at 7:23 p.m. Mayor Veenker announced no reportable action. Agenda Changes, Additions and Deletions City Manager Ed Shikada noted a late report for Item #7 regarding a contract with Orion Security for Track Watch services at Caltrain rail crossings. Public Comment 1. Sven T., a Palo Alto resident and chemical engineer, urged Council to direct the Utilities Department to inform residents about health risks associated with natural gas stoves, particularly for children and immunocompromised individuals. Sven T. encouraged expanded public education and expressed support for incentives promoting electric stove adoption. 2. Herb B. expressed concern that overlapping Council committee memberships may create Brown Act issues if a majority of one committee also constitutes a majority of another committee during noticed meetings. Herb B. recommended adjusting committee assignments to avoid duplication and potential open meeting conflicts. SUMMARY MINUTES Page 3 of 22 Sp. City Council Meeting Summary Minutes: 02/23/2026 Council Member Questions, Comments and Announcements Councilmember Lythcott-Haims reported on the Rail Safety Ad Hoc Committee, noting coordinated efforts among Council, City staff, Caltrain, and the Palo Alto Unified School District to reduce rail-related risks and enhance safety. Councilmember Lythcott-Haims stated that 24/7 security coverage is being implemented at all 4 Palo Alto rail crossings, with a contract for Orion Security expected for approval. The effort responds to community advocacy, including a student-led petition, and is funded jointly by the City and the School District at an annual cost of approximately $2M. Guards are already in place pending formal approval. Councilmember Lythcott-Haims reported that Council is evaluating a potential temporary closure of the Churchill Avenue rail crossing and has initiated a 60-day analysis in coordination with Caltrain and the California Public Utilities Commission (CPUC), which holds final authority. The analysis will assess feasibility, emergency response impacts, traffic circulation, pedestrian and bicycle safety, and potential closure measures, with possible Council action anticipated in mid-April. Councilmember Lythcott-Haims noted ongoing efforts to install anti-intrusion and behavioral detection technology at all 4 crossings, which was already underway prior to the recent tragedy on February 3. Councilmember Burt reported that, in coordination with Caltrain and VTA funding support, the City is implementing additional anti-intrusion measures at rail crossings. Visible improvements include solar delineators, bollards, and pavement markings. Less visible measures include RailSentry technology using LIDAR, video cameras, and AI detection to identify irregular behavior. Anti-trespassing panels are being installed outside crosswalk areas, with installations underway at the Churchill and Meadow crossings and planned for the Charleston and Palo Alto Avenue crossings. Councilmember Burt announced that the Santa Clara County Board of Supervisors, led by Supervisors Abe-Koga and Lee, advanced a proposal to fund the allcove Center for 3 years at $1.75M annually, covering approximately 2/3 of operating costs. The remaining funding would need to come from community partners, public agencies, healthcare providers, and philanthropy. Councilmember Burt noted the Council may have an opportunity to discuss support later in the meeting. Mayor Veenker thanked the Rail Safety Ad Hoc Committee and staff for their swift action and progress on rail safety measures and affirmed the City’s continued commitment to responding to community concerns and advancing solutions as quickly as possible. Mayor Veenker provided several updates, including on the Northern California Power Agency (NCPA), noting recent legislative and regulatory discussions. Proposed state legislation supporting publicly owned hydropower, previously vetoed for unrelated reasons, is advancing and could save the City approximately $1M $2M annually after 2030. The City of Santa Clara’s utility presented to the Assembly Energy Committee regarding data center energy impacts, a topic relevant to Palo Alto given shared energy sources. Mayor Veenker reported that UAC Chair Greg Scharff, Utilities Director Alan Kurotori, and staff met with Assemblymember Berman and Senator Becker at the State Capitol. Following those discussions, legislation was introduced to support rebuilding electric transmission infrastructure after wildfires, aimed at enhancing safety and resiliency. Mayor Veenker gave an update on the federal Central Valley hydropower project, SUMMARY MINUTES Page 4 of 22 Sp. City Council Meeting Summary Minutes: 02/23/2026 which supplies approximately one-third of the City’s electricity. Staffing reductions in 2025 affected dam and turbine operations but limited authority to rehire has now been granted. Staffing levels remain low, though the City is hopeful vacancies will be filled soon given the project’s importance to local energy supply. Mayor Veenker reported that the NCPA Executive Committee met and that the general manager search is proceeding on schedule. Mayor Veenker noted that the governing board is evaluating an application from the Lassen Municipal Utility District to join NCPA. Lassen proposes participation limited to legislative and regulatory functions. The board is assessing whether membership would provide a net benefit to the agency, with further discussion ongoing. Mayor Veenker noted ongoing discussions regarding data center energy impacts at the state, federal, and local levels. Plans were announced for a cross-sector symposium on sustainable data centers, to be convened in partnership with the Stanford University Doerr School. The event will focus on sustainability and appropriate policy guardrails, with Stanford managing logistics. Pursuant to the Council Procedures and Protocol Handbook, the Mayor and Vice Mayor approved a $5,000 co-sponsorship from the Council Contingency Fund. Further details will be forthcoming. Study Session 2. Status Report from the Oversized Vehicles (OSV) Ad Hoc Committee CEQA Status: Not a Project. Assistant to the City Manager Melissa McDonough presented a status report from the Oversized Vehicles (OSV) Ad Hoc Committee, responsive to Council’s October 20, 2025, direction. This work aligns with the 2025 Council priority addressing homelessness impacts, including individuals living in vehicles, and seeks to balance compassion, neighborhood livability, and public safety. Assistant McDonough outlined recent actions and community feedback. Since October 20, 2025, staff completed near-term implementation steps, including deep cleaning 17 street segments, adding biweekly street sweeping, and towing 33 OSVs following outreach and noncompliance. Field surveys were conducted on 18 streets to determine permanent sign locations and advance notice was provided through signs, flyers, mailers, and outreach. There were 349 interactions between case managers and individuals living in vehicles to build rapport and connect them to services. Assistant McDonough reported that approximately 80 people attended a January community open house to provide input on OSV next steps. Feedback included calls for stronger enforcement, concerns about City costs, support for safe parking, and suggestions to share impacts across Palo Alto neighborhoods and employers. Assistant McDonough noted differing views on permits and bans, identification of neighborhood hotspots, and requests for faster action, multilingual materials, earlier public comment opportunities, and engagement with individuals living in vehicles. SUMMARY MINUTES Page 5 of 22 Sp. City Council Meeting Summary Minutes: 02/23/2026 Councilmember Lauing, Chair of the OSV Ad Hoc Committee, stated that the published report reflects the committee’s work since October but remains a work in progress. Councilmember Lauing noted that no Council action is requested and that the committee is seeking input from Council and the public. There were 33 tows since December, a significant increase over 2025 totals, achieved using existing police staffing, though sustainability of that approach remains uncertain. Councilmember Lauing emphasized that individuals living in OSVs are not a homogenous group and that varying circumstances require different solutions. Councilmember Lauing thanked staff across multiple departments for their intensive, coordinated efforts since October and stated that the committee intends to continue its current pace of work while incorporating Council feedback. Public Comment 1. Charlie W., speaking on behalf of the Palo Alto Chamber of Commerce, expressed that OSVs impact business access, deliveries, and the vitality of retail corridors, and emphasized the need to balance safety, cleanliness, economic health, and compassion. Support was expressed for transitioning vehicle dwellers from commercial curb spaces to managed off-street safe parking lots with resources. Consistent enforcement was requested in business zones, strategic signage, and expanded sanitation and sweeping. Collaboration was encouraged among the Chamber, nonprofits, and business leaders to help connect individuals to services and permanent housing. 2. Sergio M. stated that he has a mobile RV business, knows many of the RV dwellers, and proposed purchasing land to create a privately funded site for RV parking. Sergio M. indicated he would finance the project personally and asserted it could reduce City costs. Sergio M. requested zoning changes to allow such a site, stated he would welcome City inspection and oversight, and offered to provide additional information to Council if needed. 3. Barry K., representing the Ventura Neighbors Association, stated that while many residents appreciate the diligence of the OSV Ad Hoc Committee, frustration and impatience are growing. Concerns were reported about business losses, neighborhood impacts, and residents feeling unsafe, particularly at night. Barry K. described the current phased approach as too slow and urged prioritizing certain neighborhoods on an emergency basis. 4. Bob M., an Adobe Meadow resident, described significant impacts from approximately 80 RVs on East Meadow Circle and Fabian Way. Bob M. opposed designated permitted streets, stating it would legitimize RV parking and questioned where those streets would be located. Concerns were raised about obstructed bike lanes, sanitation conditions, and insufficient enforcement. Bob M. urged the City to provide police with the necessary tools and resources to SUMMARY MINUTES Page 6 of 22 Sp. City Council Meeting Summary Minutes: 02/23/2026 increase enforcement and noted a recent small decline in total OSVs from approximately 200 to 180 after towing efforts. 5. Nancy E. stated that, despite recent efforts, the City has failed to adequately address OSV issues over the past 8 years and questioned how new measures would be enforced. Concerns were cited about lack of parking enforcement, limited towing, and continued presence of trailers and campers. Nancy E. stated that business owners have borne the burden of the impacts and urged a prohibition on OSVs in commercial areas. 6. Drew, a 26-year Palo Alto resident, expressed concern about the tone of community discussions regarding OSVs and stated that some comments at public meetings felt discriminatory. Drew described feeling unwelcome as a member of the brown community and urged the City to approach the issue with greater compassion and inclusion. 7. Phil H., representing Wheatley Properties, described safety and sanitation concerns at their property at 1870 Embarcadero Road related to nearby OSVs. Visibility issues were cited as affecting residents and tenants entering and exiting the property and ongoing sanitation cleanup impacts. Phil H. expressed hope that the City will find a solution that balances compassion with neighborhood and tenant safety. 8. Jeanette B., speaking on behalf of businesses on Embarcadero, stated that current cleanup efforts are insufficient and urged the City to work directly with business owners on a faster solution. Concerns were expressed about business impacts, safety risks to bikers and joggers from obstructed visibility, and sanitation conditions. Jeanette B. opposed permitting OSVs on City streets, stating that such streets are not designed to accommodate them. 9. Loren B., representing a small number of properties on Park Boulevard, stated that the OSV issue involves housing affordability and neighborhood deterioration. It was asserted that while housing affordability is a broader regional issue, neighborhood impacts could be addressed locally by relocating OSVs away from residential and business areas. Loren B. urged the City to designate less impacted areas for OSV parking and prohibit parking elsewhere, stating this approach could provide an immediate, lower-cost solution. 10. John M. (Zoom) thanked Council for its work and stated that while poverty should not be criminalized, residents and businesses are experiencing significant impacts from concentrated OSVs. Regional coordination was urged to ensure burden sharing among neighboring cities and avoid disproportionate impacts. John M. encouraged thoughtful action within fiscal limits and reiterated community requests for faster, more decisive implementation. SUMMARY MINUTES Page 7 of 22 Sp. City Council Meeting Summary Minutes: 02/23/2026 11. Rich H. (Zoom), a building owner on Embarcadero Road, described safety concerns due to obstructed visibility, sanitation impacts affecting property maintenance, and negative effects on tenant retention. Rich H. stated that concentrating OSVs in certain areas places an unfair burden on specific properties and urged the City to identify locations that do not impact businesses or residents. 12. Penny B. (Zoom) opposed the proposed OSV permit program, stating that OSVs obstruct streets and sidewalks and create pedestrian and traffic safety concerns. It was argued that the program would disproportionately impact South Palo Alto and conflict with state and local laws regarding obstruction of public rights-of- way. Penny B. stated that confining OSVs to non-residential streets would still affect integrated neighborhoods such as Ventura and asserted that any permit program should require voter approval. 13. Melinda M. (via Zoom) opposed the OSV permit program and raised concerns about long-term costs and potential migration from neighboring cities with stricter enforcement. Melinda M. questioned whether employers, including Stanford, should provide space for workers living in vehicles and requested strategic, long-term planning. Melinda M. asked for transparency regarding the cost per person of the City’s safe parking program. 14. Maia H. (via Zoom), representing Jay Paul Company, stated that the company owns multiple office properties in the corridor employing approximately 1,900 workers and expressed opposition to including Sheridan Avenue in an OSV permit program. Maia H. requested implementation of a 2-hour parking restriction on Sheridan under California Vehicle Code Section 22507 and exclusion of the corridor from any permit zone. Maia H. stated that long-term vehicle dwelling is incompatible with a Class A office environment but expressed support for alternative solutions, including expanded safe parking capacity and regional coordination. 15. Mary S. (via Zoom) thanked Council and staff and expressed support for a permit system that would relocate OSVs away from commercial and residential areas. It was stated that designated areas, potentially including City-owned property near the Baylands, could balance neighborhood concerns with humane treatment of individuals living in vehicles. 16. Ellen H. (via Zoom) described concerns about vans being advertised for rent on Craigslist and questioned enforcement follow-up. Ellen H. stated that OSV concentration in residential areas creates sidewalk obstruction and compatibility issues. Clear and consistent enforcement was urged of whatever policy the Council adopts. SUMMARY MINUTES Page 8 of 22 Sp. City Council Meeting Summary Minutes: 02/23/2026 17. Oksana S. (via Zoom), a resident near East Meadow Circle, described increased RV concentration, sanitation concerns, and reports of break-ins. Oksana S. stated that residents feel overwhelmed and requested relocation of OSVs away from residential and commercial areas. Mayor Veenker thanked public speakers, stated public comment was closed, and noted that additional input may be submitted by email. Mayor Veenker invited members of the OSV Ad Hoc Committee to respond to feedback. Councilmember Reckdahl, a member of the OSV Ad Hoc Committee, stated that the OSV issue is complex and constrained by legal and financial limitations. Progress has included increased street cleaning and towing of unregistered vehicles, though expansion of safe parking or relocating all RVs would require significant funding. An outright ban could expose the City to litigation, based on outcomes in other jurisdictions. The primary concerns identified were the increased number of RVs and associated behavioral impacts. Councilmember Reckdahl stated that a permit system would allow the City to cap the number of OSVs and prevent further growth. A permit structure would provide greater enforcement leverage by enabling revocation for code-of-conduct violations, rather than relying solely on citation and prosecution. Councilmember Reckdahl stated that a pilot program is proposed to test the approach in a limited area and refine policies based on feedback. Councilmember Reckdahl clarified that the intent is not to concentrate OSVs in specific areas but to avoid clustering near any one neighborhood. A permit system could include districts to help distribute vehicles more evenly. Councilmember Reckdahl requested feedback from colleagues on shaping the pilot program to improve its effectiveness. Councilmember Lythcott-Haims, serving on the ad hoc committee, stated that vehicle habitation reflects broader housing affordability challenges, noting that many workers cannot afford local housing or RV park fees and therefore live in their vehicles. Councilmember Lythcott-Haims emphasized the need for solutions that address community impacts and the needs of vehicle dwellers, including identifying land where individuals could reside legally with access to services. Staff efforts to identify sites within Palo Alto were reported to have been unsuccessful and support was expressed for an upcoming county-wide convening to explore regional options. Palo Alto’s continued openness relative to neighboring jurisdictions was noted as contributing to increased OSVs locally. Enforcement-only approaches were characterized as ineffective. Councilmember Lythcott-Haims invited colleagues to give their thoughts on questions that should be addressed at the county level. Councilmember Lauing reported that several potential solutions had been explored but faced obstacles, including lack of interest from commercial property owners and expansion of spaces from congregations. Limited towing storage capacity was identified as a significant barrier to increased enforcement, as impounded OSVs may be stored for 60 to 90 days and available facilities are scarce. Councilmember Lauing noted that 33 vehicles had been towed to date, a rate higher than in 2025, averaging approximately 11 tows per month given staffing and storage constraints. Continuation at that pace would result in roughly 60 additional tows over the SUMMARY MINUTES Page 9 of 22 Sp. City Council Meeting Summary Minutes: 02/23/2026 following months. Councilmember Lauing expressed optimism that the forthcoming Homekey transition units would reduce the number of RVs on city streets and noted ongoing coordination with program staff. A pilot permit program for OSVs was identified as a key proposal for Council feedback, along with the potential for expanded safe parking in a future budget. Regional collaboration was described as necessary to address the issue long term, though expected to take time to implement. Councilmember Lauing requested input from Councilmembers on perceived barriers, potential solutions, and the proposed pilot program. Vice Mayor Stone thanked the ad hoc committee and community members for their engagement and stated that an outright ban on OSVs in Palo Alto is not feasible. Resource constraints, including limited tow yard capacity and state requirements governing impoundment, were cited as barriers. Legal risks were noted, referencing challenges to similar bans in other jurisdictions that resulted in significant costs. Vice Mayor Stone further emphasized the importance of a compassionate response, describing vehicle habitation as rooted in broader affordable housing failures. Maintaining Palo Alto’s welcoming values while ensuring that all individuals follow consistent rules was identified as a guiding principle. The ad hoc recommendations were characterized as an effort to balance allowing OSVs with mitigating impacts such as hazardous material dumping and safety concerns. Vice Mayor Stone expressed support for moving forward with Phase 1 measures and for exploring a pilot permit program in Phase 2 to evaluate its effectiveness. Vice Mayor Stone asked how a pilot permit program would ensure equitable distribution of OSV permits citywide and prevent concentration in any single neighborhood. Councilmember Lauing responded that equitable distribution had been identified as an issue, including in the P&S Committee report but that detailed implementation had not yet been developed. City Manager Ed Shikada stated that he had nothing to add. Vice Mayor Stone emphasized that equitable distribution of OSVs throughout the City will be critical to address community concerns about concentrations in certain areas as a pilot program is developed. Interest was expressed in a local connection requirement for an OSV, along with questions about how residency would be verified. Vice Mayor Stone questioned the basis for using historical numbers of OSVs as a target, asking whether those figures reflect long-term averages, pre- or post-pandemic conditions, or impacts from restrictions in neighboring jurisdictions. Councilmember Reckdahl answered that the matter remains under development. Vice Mayor Stone expressed strong support for a regional convening, emphasizing the importance of coordinated action among jurisdictions and the impacts of neighboring policies on Palo Alto. Sharing best practices and pilot program results was suggested as a way to provide other cities with guidance in addressing vehicle dwelling and the broader affordable housing crisis. Councilmember Lu emphasized the importance of regional responsibility and avoiding policies that shift OSVs among jurisdictions. Recognition was expressed that many individuals living in OSVs have ties to Palo Alto through residence or employment and support was voiced for prioritizing participants with a local connection. Councilmember Lu indicated that the preliminary pilot framework appears reasonable and recommended flexibility in any requirement to join housing waitlists, noting that individuals may be pursuing alternative SUMMARY MINUTES Page 10 of 22 Sp. City Council Meeting Summary Minutes: 02/23/2026 options such as rental RV spaces or mobile home placements. Historical vehicle counts from before neighboring jurisdictions implemented bans were described as a sensible reference point and a potential upper limit for program participation, given that some vehicles may lack a Palo Alto connection. Councilmember Lu acknowledged the difficulty of identifying appropriate sites and referenced suggestions raised during public comment, including use of more open streets and the airport parking lot area. Emphasis was placed on ensuring distribution across neighborhoods so that impacts are not concentrated in any single commercial or residential area. Councilmember Lu recommended clearly defining the duration of any pilot program. A timeframe longer than 6 months was suggested to allow sufficient evaluation of participation levels, impacts, and effectiveness in reducing OSVs on city streets. Councilmember Lu expressed appreciation for the ad hoc committee’s work. Councilmember Burt thanked the ad hoc committee and staff for the comprehensive report and highlighted the importance of the Strategic Goals, suggesting Councilmembers consider whether they concur with each of them. Councilmember Burt noted that while legal constraints limit municipal authority to regulate RVs, cities retain some regulatory ability and the scope of that authority remains uncertain as related issues continue to be litigated. Councilmember Burt stated that establishing an appropriate baseline will be critical if a permit program is pursued. Reference was made to the significant increase in RVs over the past 1 to 2 years following more restrictive policies in neighboring jurisdictions. Councilmember Burt suggested that a point-in- time count conducted prior to that regional shift would serve as the appropriate baseline. Councilmember Burt expressed support for a pilot permit program but questioned whether a geographically limited trial would produce meaningful data. Concern was raised that individuals excluded from the pilot area could relocate to nearby streets, potentially undermining the ability to assess citywide impacts. While a pilot could provide administrative insights, Councilmember Burt noted it may not reliably indicate whether a broader program would achieve desired reductions in OSVs. Councilmember Burt questioned participation incentives, citing proposed time limits of 30 to 90 days, and suggested that individuals might choose to relocate rather than enroll. Uncertainty was expressed regarding how logistical challenges would be addressed, while acknowledging that a pilot may still be necessary despite inherent limitations. City Manager Shikada acknowledged the importance of making a pilot program attractive to participants, noting that concepts under discussion include provision of services such as trash collection and septic removal, as well as greater stability within a designated permit area compared with conditions elsewhere in the city. Councilmember Burt asked what data are available regarding local connections among the RV population, including employment in Palo Alto, prior residency, or children enrolled in local schools. City Manager Shikada stated that limited demographic information is currently available regarding RV dwellers. Participation in a pilot program would likely require completion of a standardized intake form used by the County and nationally, which would provide more detailed data than is presently available. Councilmember Burt expressed concern that demographic information would be obtained only from pilot participants and not the broader RV population. Staff responded that engagement typically requires repeated contact and that participation in a permit program could facilitate collection SUMMARY MINUTES Page 11 of 22 Sp. City Council Meeting Summary Minutes: 02/23/2026 of more detailed data. Preliminary information from the Geng Road safe parking program was summarized, while emphasizing that this data was only from those willing to participate and may not represent the entire population. Councilmember Burt thanked staff and requested follow-up on any additional demographic data available from other outreach efforts. Mayor Veenker commended the OSV Ad Hoc Committee for advancing the City’s understanding of the issue, noting that earlier P&S Committee discussions focused on learning the scope of the problem, legal constraints, and characteristics of the RV population. Mayor Veenker observed growing awareness of the complexity of the issue and the need for empathy toward vehicle dwellers and affected residents and businesses. Mayor Veenker stated that community feedback reflects frustration with sanitation and neighborhood impacts as well as the hardship experienced by individuals living in RVs and emphasized the importance of identifying pathways to housing options that allow people to live with dignity while reducing adverse impacts. Mayor Veenker highlighted 3 Strategic Goals as priorities: improving traffic safety, advancing regional collaboration, and expanding safe parking options. Regional coordination with the County was supported as a way to develop longer-term solutions and avoid displacement between jurisdictions. Mayor Veenker encouraged continued efforts to identify additional safe parking sites, including engaging business owners in a broader regional discussion to help locate potential spaces, while acknowledging the difficulty of the situation. Mayor Veenker expressed reservations about pursuing a permit program, citing concerns about selecting locations and some of the issues raised by Councilmember Burt. Preference was expressed for further exploration of regional partnerships and collaboration with local businesses to identify affordable sites for managed parking or safe parking facilities before proceeding with a permit approach. Councilmember Lu suggested that regional discussions include reevaluating the use of parking lots associated with parks, citing underutilized areas near the Geng Road safe parking site. Legal and procedural constraints related to park land use were noted as barriers to expansion and clarification from the State or County regarding permissible uses of park-adjacent parking lots for OSV support was identified as a potential avenue to enable limited expansion using existing land. Councilmember Burt stated that use of park land for this purpose is likely governed by the City rather than by the State and may involve City Charter considerations. Councilmember Burt noted that potential public and private partnership options have been narrowed and remain challenging, emphasizing that land acquisition is difficult given commercial property costs of approximately $10M per acre. Councilmember Burt indicated that staff continues to pursue other possible sites, including discussions with Caltrans and Stanford Research Park, and expressed hope that those efforts may yield viable options. In response to those who feel Palo Alto is unwelcoming, Councilmember Burt stated that Palo Alto has long maintained one of the highest levels of deed-restricted affordable housing in the County and continues to expand such efforts. Reference was made to 3 affordable housing projects currently coming online and 5 additional projects in development, including transitional housing and extremely low-income SUMMARY MINUTES Page 12 of 22 Sp. City Council Meeting Summary Minutes: 02/23/2026 units. Transitional housing was described as particularly relevant, with an intent to support stays of approximately 6 to 9 months before placement into permanent affordable housing. Councilmember Burt noted that increased enforcement related to OSVs places significant demands on City staff resources, including the Police Department, and entails tradeoffs that may reduce capacity to address other issues citywide. Councilmember Burt requested additional data on the effectiveness of the Geng Road safe parking program, noting that 69 successful transitions over 5 years were reported but the total number of participants was unclear. Councilmember Burt asked for information on average length of stay and the proportion of participants who move to more stable housing outcomes. Councilmember Burt stated that OSV habitation presents significant quality-of-life concerns as well as substantial impacts on businesses and property owners, including difficulties leasing properties, declining property values, and effects on nearby neighborhoods. Councilmember Burt emphasized that these impacts have been concentrated in certain areas and must be weighed alongside other considerations. Councilmember Lythcott-Haims acknowledged Palo Alto’s substantial affordable housing efforts while cautioning against stereotypes about individuals living in OSVs. Updated information was provided regarding the Geng Road safe parking program, reporting 129 participants over 5 years with approximately 53 percent transitioning to an acceptable next step. Councilmember Lythcott-Haims suggested that acquiring land in more affordable parts of the County near transit could be a viable regional solution and noted that some vehicle dwellers may be able to contribute modest fees toward a program. Additional data collection and engagement with the population were encouraged to better understand needs, capacities, and potential partnership opportunities. Mayor Veenker agreed with Councilmember Lythcott-Haims's comments and identified Project Homekey as an additional component of the solution. Emphasis was placed on continuing short-term measures while pursuing longer-term pathways to housing. Mayor Veenker reiterated opposition to a permit program, citing concern that it could perpetuate disproportionate impacts on certain areas. Deputy City Manager Chantal Cotton-Gaines sought clarification that the options outlined in the report would remain under consideration and that the OSV Ad Hoc Committee may continue exploring them. Mayor Veenker confirmed that the committee’s work would continue and that no proposals were being removed from consideration at this time. NO ACTION Consent Calendar SUMMARY MINUTES Page 13 of 22 Sp. City Council Meeting Summary Minutes: 02/23/2026 Public Comment 1. Ken H. (Zoom) expressed support for the consent calendar item related to Track Watch and the associated collaboration with the school district. Additional attention to youth mental health was urged, with appreciation expressed for Councilmembers Burt and Lythcott-Haims’ participation at a recent County Health and Hospital meeting supporting the allcove program. Interest was noted in upcoming discussion of youth mental health initiatives at the City Schools Liaison Committee meeting, including work by The Jed Foundation. 2. Melinda G. (Zoom) questioned the cost of the Track Watch program, estimated at approximately $1.6M annually, and suggested that resources could be more effectively used to establish a quiet zone to reduce train horn noise near schools. Emphasis was placed on addressing underlying youth mental health issues, including depression and bullying, as a primary focus. 3. John M. (Zoom) expressed concern about recent fatalities along the rail corridor and noted the complexity of youth suicide, citing multiple contributing factors. Support was voiced for the City’s partnership with the school district to improve rail safety. Questions were raised regarding Caltrain’s contributions to safety measures and whether establishing quiet zones and additional infrastructure improvements could enhance safety. The importance of mental health programs and responsible media reporting was emphasized. Mayor Veenker thanked the public speakers and asked whether any Councilmembers wished to record a no vote, pull an item, or make a motion regarding the consent calendar. MOTION: Councilmember Reckdahl moved, seconded by Councilmember Lythcott-Haims, to approve Agenda Item Numbers 3-7. MOTION PASSED: 7-0 3. Approval of Minutes from January 31, February 1, February 2, and February 9, 2026 Meetings 4. Approval of a Purchase Order with ABB Inc. for a Not-to-Exceed Amount of $389,862 to Procure Equipment and Services to Retrofit Ten (10) Existing VHK, Circuit Breakers for the Maybell Electric Substation. CEQA Status: Exempt Under CEQA Guideline 15302(c), Reconstruction of Existing Utility Facilities. 5. Approval of Professional Services Contract Number C26194078 with M.E. Simpson Co., Inc. in the Amount Not-to-Exceed $642,609 Water System Leak Detection Survey Services for a Period of Three Years. CEQA Status – Exempt under CEQA Guidelines Sections 15061(b)(2) and (b)(3). SUMMARY MINUTES Page 14 of 22 Sp. City Council Meeting Summary Minutes: 02/23/2026 6. Approval of Amendment No. 2 to Contract No. C25193187 with Universal Security Company for Fire Watch Services at City Hall in the Amount of $80,915 for a New Total Not-to-Exceed Amount of $301,667, and Approval of a Fiscal Year 2026 Operating Budget Amendment in the General Fund; CEQA status - Categorically Exempt under Sections 15301 and 15302 7. Approval of Amendment No. 1 to Contract No. S26196996 for One Year with Yosh Enterprises Inc. dba Orion Security for Track Watch Services at Four Grade Crossings in the Amount of $1,623,314 for a New Total Not-to-Exceed Amount of $1,708,314; Authorize the Negotiation and Execution of a Cost Sharing Agreement with Palo Alto Unified School District for $854,157; and Approval of a Fiscal Year 2026 Operating Budget Amendment in the General Fund; CEQA status - Not a project. City Manager Comments City Manager Ed Shikada noted that several Councilmembers attended the Lunar New Year celebration at the Mitchell Park Community Center, reporting attendance of more than 1,000 community members and expressing appreciation to the organizers and cosponsors. City Manager Shikada announced several upcoming community outreach events. A virtual meeting on the Biosolids Facility Plan for the wastewater treatment plant was scheduled for February 24. A career exploration event for teens and young adults will be held February 28 at the Mitchell Park Community Center. City Manager Shikada noted an author event with Silicon Valley Reads on March 5 and a public meeting on the San Antonio Road Area Plan scheduled the same day, to be offered live and online. City Manager Shikada previewed upcoming City Council agendas, noting that scheduling adjustments may be necessary. A study session on Palo Alto Link and 2 sustainability items is planned for March 2. The March 9 meeting will include a study session on a proposed development at 51 Encina, Crescent Park traffic calming, and next steps related to SB 79. A number of items are expected throughout March and possibly into April. Mayor Veenker proposed taking a brief break in order to complete Item #8 on the agenda, noting the Council’s prior decision not to begin new items after 10:00 p.m. and expressing appreciation for staff present. City Manager Shikada indicated that staff scheduled for later agenda items would be excused and that deferred Item #9 could return at the March 9 meeting. [Council took an 8-minute break.] SUMMARY MINUTES Page 15 of 22 Sp. City Council Meeting Summary Minutes: 02/23/2026 Action Items 8. FY 2026 Mid-Year Budget Review and Approve 1) Budget Amendments in Various Funds, and 2) a $10.0 Million Additional Discretionary Payment (ADP) from the PARS Pension Trust Chief Financial Officer Lauren Lai introduced the FY 2026 Mid-Year Budget Update and described the report as consistent with prior reviews by the Finance Committee and Council, as well as the Long-Range Financial Forecast (LRFF) presented in January. The Mid-Year Report summarizes revenues and expenditures as of December 31 and includes recommended technical budget adjustments. CFO Lai stated that the information provides a foundation for development of the FY 2027 budget, which is currently underway. Budget Manager Jonathan Rewers outlined the presentation structure, including a fiscal overview addressing General Fund revenue realignments, reserve management, and current expenditure status. Pension liability management would be presented by CFO Lai, including a recommended proactive $10M disbursement from the Section 115 Trust. Budget Manager Rewers noted a preview of the FY 2027 outlook, including planned efficiency efforts to address a projected structural gap. Staff recommended that Council receive the report and approve the identified budget amendments. Budget Manager Rewers reported that the General Fund is tracking within expenditure levels but below adopted revenue projections. Proposed technical adjustments include a $9M reduction in sales tax revenue and a $1.3M reduction in property tax revenue, for a total decrease of $10.3M. To offset the revenue shortfall, staff recommended utilizing the Budget Stabilization Reserve (BSR) and consolidating the previously identified $6M Uncertainty Reserve into the BSR to streamline administration. The proposed actions would result in no net impact to the General Fund at mid-year. The projected ending balance of the BSR was reported at $54.7M, or 17.8 percent. Budget Manager Rewers stated that the sales tax decline has been discussed since November 2025, including review by the Finance Committee on November 18, 2025, and incorporation into the LRFF adopted by Council. The projected year-end BSR balance remains $54.7M, or 17.8 percent, within the 15 to 20 percent policy range but $2.1M below the 18.5 percent target. The projection assumes a potential $4M contingent loss; if that loss does not occur, the reserve level would be 19.1 percent. Budget Manager Rewers noted that earlier Council action approving a $427,000 use of the BSR would adjust the reserve level to approximately 17.7 percent. It was reported that citywide expenditures are tracking at 45.9 percent at mid-year, below the 50 percent benchmark. Public safety overtime remains elevated due to 15 FTE vacancies in the Police Department and 9 FTE vacancies in the Fire Department; however, those costs are currently offset by salary savings and reimbursements. Staff will continue monitoring expenditure trends to remain within adopted levels. Outside the General Fund, staff proposed technical adjustments to enterprise and other non-General Fund accounts. The Wastewater Treatment Fund reflects $17M in revenue from the City of Mountain View for the Advanced Water Purification System. A 30 percent increase in excess liability insurance premiums SUMMARY MINUTES Page 16 of 22 Sp. City Council Meeting Summary Minutes: 02/23/2026 requires a $900,000 increase to the General Liabilities Fund. Additionally, $200,000 will be returned to CIP reserves following scope changes across several projects. CFO Lai presented slides on Pension Liability Management and noted that the item was reviewed by the Finance Committee in November. The recommendation was evaluated by 2 sets of experts: the City’s ongoing actuary and a computer software firm performing similar analyses. CFO Lai reaffirmed continued implementation of the City’s retiree benefit policy and stated that the City is forecasted to achieve 90 percent funded status for all funds before the 15-year policy goal, reducing pension liability and employer costs. The recommendation is threefold: initiating the first $10M disbursement from the Section 115 Trust; incorporating the ADC for FY 2027 through 2031 as modeled in the LRFF and presented in January; and incorporating annual ADP disbursements into the budget development process each year. CFO Lai reviewed the primary principles of the retiree benefit policy, highlighting the goal of reaching 90 percent funded status within 15 years as a central focus of discussions with the Finance Committee. CFO Lai summarized the status of the Section 115 Trust, reporting a balance of $109M as of June 30, 2025, and $127M as of January 1, 2026. Total City contributions were $95M, with earnings of $33M to date. Under the policy, amounts exceeding the annual required contribution should be disbursed from the Section 115 Trust to CalPERS; approximately $40M would have been disbursed in 2024 but that action was deferred. CFO Lai stated that the Trust’s performance has been strong and that the recommended disbursement is consistent with established policy. CFO Lai discussed the future outlook and government efficiency efforts, noting a projected $14.9M structural deficit in FY 2027 that continues to some degree through 2032. Budget- balancing solutions are being developed as part of the FY 2027 process to ensure long-term financial stability and sustainability. CFO Lai referenced approximately $6M in reductions presented in September, including $3.4M ongoing, which will remain in place through FY 2027. Continued difficult decisions were anticipated as part of balancing the budget. CFO Lai concluded with staff’s recommendation that Council approve the proposed budget amendments, highlighting that a revised Amendment A was provided to include complete line- item budget journal entries that were only partially included in the original packet. Approval was requested of the consolidation of the Uncertainty Reserve into the BSR and authorization of the disbursement from the Section 115 Trust to CalPERS. Councilmember Burt thanked staff for the report and highlighted the $9M reduction in sales tax revenue as a key driver of the projected $15M deficit. It was noted that the decline is not attributable to reduced routine sales but to revised regulations by the California Department of Tax and Fee Administration (CDTFA) affecting allocation of sales tax revenue from the leasing and new auto sectors. Of the $9M reduction, $4M was described as one-time and $5M as ongoing. Councilmember Burt emphasized that this change accounts for the majority of current budget adjustments and revisions to the LRFF. SUMMARY MINUTES Page 17 of 22 Sp. City Council Meeting Summary Minutes: 02/23/2026 Public Comment 1. David Mineta, CEO of Alum Rock Counseling Center, requested City support for the allcove Palo Alto Youth Drop-In Center, describing youth mental health as a priority amid recent suicide clusters. The center was characterized as a multiservice model developed in Australia and brought locally through Stanford Medicine. Mr. Mineta reported that although County funding had initially been slated to end in June, the County committed $1.75M over 3 years following community advocacy, including action by Supervisors Lee and Abe-Koga at a recent Health and Hospital Committee meeting. Appreciation was expressed for City leadership and community engagement and City financial support was requested to help sustain and expand the program. 2. Melinda M. (Zoom) expressed frustration regarding the pace of implementing quiet zones, noting that Atherton established quiet zones in 2016, and urged faster action in Palo Alto. Support was expressed for youth mental health initiatives and quiet zones, citing classroom disruption, sleep impacts, and frequent train horn noise. Questions were raised about project funding, estimated at approximately $1.5M per crossing, potential use of Measure K funds, and next steps to advance implementation following prior Council approval. 3. John M. (Zoom) expressed strong support for establishing quiet zones and urged the City to advance the project, noting that consultants have indicated safety improvements at rail crossings, including with installation of quad gates. Concern was raised about delays and about funding priorities amid competing City challenges. John M. commented on the proposed closure of the Churchill crossing, stating that traffic impacts to East Meadow and East Charleston should be evaluated as part of related studies. Councilmember Reckdahl thanked Councilmember Burt for clarifying the sales tax issue because public commentary has suggested the sales tax decline reflects retail mismanagement and stated that year-over-year sales tax revenue from general retail and restaurants has increased each quarter over the past 3 years. Councilmember Reckdahl reiterated that the current revenue decline is not attributable to local retail performance but to other factors. Councilmember Reckdahl asked whether first-half expenditure trends are likely to continue in the second half of the fiscal year, particularly in light of vacancies being held open and decisions to delay filling certain positions. CFO Lai responded that maintaining vacancies would reduce second-half expenditures and noted that mid-year spending at 45 percent is consistent with prior years, with no concerns identified. Ongoing monitoring of vacancies and a hiring review committee were cited as safeguards. In response to questions regarding vacancy rates, CFO Lai referenced information in the report indicating an overall vacancy rate of 11.5 percent across all funds, including 14 percent in Other Funds and 9.4 percent in the General Fund. Councilmember Reckdahl noted that the General Fund rate is 6.9 percent excluding Public SUMMARY MINUTES Page 18 of 22 Sp. City Council Meeting Summary Minutes: 02/23/2026 Safety and asked how that compares to prior years. City Manager Ed Shikada stated that year- over-year comparisons are challenging due to position eliminations in the current budget but indicated that vacancy levels are generally comparable, while acknowledging that the current fiscal year reflects a different baseline. Councilmember Reckdahl asked what portion of Fire Department overtime would be reimbursed by the State, noting that some overtime is related to new firefighters in the academy and some to missions for which the City receives reimbursement. Distinction was requested between unreimbursed overtime and amounts expected to be reimbursed. CFO Lai indicated that staff would follow up with that information and referred Council to Page 78 of the report, which breaks down overtime usage and identifies reimbursable amounts. CFO Lai noted that the figures reflect amounts to date and are not projections but provide a reference point. Councilmember Reckdahl asked for clarification on the difference between ADC and ADP. CFO Lai explained that ADC is analogous to a monthly mortgage payment, while ADP is analogous to prepaying the mortgage. Authority under Section 115 and City policy allows contributions toward ADC and ADP. The recommendation includes disbursements addressing ADC and ADP. Councilmember Reckdahl confirmed that using funds from the Section 115 Trust toward ADP is effectively prepaying obligations and that using Trust funds for ADC in FY 2027 through 2031 would reduce reliance on the General Fund during a revenue downturn. CFO Lai confirmed that even with these disbursements, the City is still projected to achieve 90 percent funded status before the 15-year policy goal. Councilmember Reckdahl stated that the approach does not create a deficit but uses excess savings while maintaining the funding target and CFO Lai affirmed that conclusion, noting the analysis was validated by 2 independent experts. Councilmember Burt referenced Packet Page 72 regarding the $7.1M reserve established for uncertainty related to the Educational Revenue Augmentation Fund (ERAF) and asked over what time period those funds were set aside. CFO Lai responded that the reserve has been accumulated over approximately 5 years, beginning around 2020, and noted that the anticipated March court hearing has been postponed to April. Councilmember Burt noted that Transient Occupancy Tax (TOT) revenues are slightly above projections. Councilmember Burt observed that hotel occupancy rates have increased significantly while average room rates have declined, describing that trend as unusual and worth monitoring. Increased occupancy was characterized as the most encouraging indicator. Councilmember Burt discussed funding needs for the allcove program, noting that the County is relying on a combination of contributions to close an additional funding gap of approximately $1M as the program transitions to be named allcove North County. Anticipated support was described as including contributions from neighboring cities and school districts, healthcare providers, and philanthropic partners. Councilmember Burt suggested that a City contribution of $200,000 could serve as a lead investment to leverage additional funding and demonstrate SUMMARY MINUTES Page 19 of 22 Sp. City Council Meeting Summary Minutes: 02/23/2026 commitment. Input was requested from colleagues on whether to direct staff to incorporate such funding into the proposed budget to be presented in May. Councilmember Burt sought clarification on the budget review process, noting that the staff report indicated the draft budget would first go to the Finance Committee. CFO Lai clarified that the draft budget is transmitted to the full Council on Monday, followed by Finance Committee workshops on Tuesday and Wednesday. Councilmember Burt reminded Councilmembers to provide guidance to inform Finance Committee discussions and potential modifications to staff recommendations. Mayor Veenker expressed support for the $10M disbursement from the Section 115 Trust and appreciation for clarification of ADC and ADP. Reaching the 90 percent funded status ahead of schedule was described as encouraging and effective pension liability management was emphasized as critical. Mayor Veenker asked why a prior Section 115 disbursement in FY 2024 had not occurred. CFO Lai responded that the Trust balance grew rapidly due to strong investment returns and disciplined contributions and that a disbursement was not initiated at that time. The Trust balance was approximately $84M in 2024, exceeding the required level by roughly $10M to 15M, and has since continued to increase. Mayor Veenker sought clarification on whether the projected $15M structural deficit in FY 2027 reflects the ongoing reductions implemented in FY 2026; CFO Lai confirmed that it does. Mayor Veenker requested additional detail regarding improved facility utilization identified under Government Efficiency efforts in the report. CFO Lai explained that staff will more intentionally evaluate use of City-owned facilities, including relocating staff from third-party leased properties to City facilities, with the goal of optimizing asset utilization and reducing rental costs. Mayor Veenker expressed support for that approach, noting that rental burdens can significantly affect budgets, particularly in the post-COVID environment. Support was expressed for consolidating the Uncertainty Reserve into the BSR, stating that while the reserves were originally established separately for specific reasons, consolidation now promotes efficiency. Councilmember Lu asked how the $10M pension payment translates into measurable long- term savings and whether a more aggressive disbursement should be considered. CFO Lai responded that Section 115 Trust funds remain under local control, which allows the City to retain flexibility rather than transferring the full balance to CalPERS. The Trust portfolio, managed by PARS, is performing well. CFO Lai stated that CalPERS actuaries are evaluating the financial impact of the $10M contribution, with results expected shortly to inform budget planning. In addition, 2 independent third parties modeled projected cash flows over a 10-year horizon to estimate impacts on employer costs. Councilmember Lu asked whether further information from CalPERS could inform adjustments to the contribution amount during budget deliberations. CFO Lai stated that decisions would depend on updated actuarial analysis and the City’s investment strategy for the Section 115 portfolio, noting that staff favors a measured approach to disbursements rather than transferring large sums at once. SUMMARY MINUTES Page 20 of 22 Sp. City Council Meeting Summary Minutes: 02/23/2026 Councilmember Lu stated that the proposed fiscal strategies appear reasonable and identified revenue enhancement opportunities, including at the airport where hangar space is constrained, as well as broader opportunities to increase revenues from non-utility services while supporting environmental goals. Councilmember Lu expressed support for allocating approximately $200,000 to allcove, with acknowledgment of opportunities to improve program utilization. Concerns were noted about prior excess capacity and staffing levels and it was indicated that any consideration of funding beyond $200,000 should be accompanied by more detailed information regarding staffing and program use. Councilmember Lauing expressed strong support for accelerating pension liability payments where appropriate. Councilmember Lauing emphasized the importance of clear public communication regarding the sales tax adjustment, cautioning against narratives suggesting retail decline. Clarification was urged that the $15M figure reflects a projected structural gap at current spending levels, not an adopted deficit, and that the City will adopt a balanced budget while remaining cautious amid fiscal uncertainty. CFO Lai announced that updated airport fee information will be presented to the Finance Committee in the coming months. Additional sales tax analysis will be brought forward as part of the upcoming budget deliberations. Vice Mayor Stone expressed support for the staff and Finance Committee recommendations and for identifying funding to support allcove. Inclusion of City financial support for allcove in the proposed budget was encouraged. Vice Mayor Stone noted that prior underutilization was attributed in part to limited awareness among youth, stating that recent public discussion and media coverage at local high schools have increased awareness of allcove. Appreciation was expressed for the County’s commitment to sustain the program. Vice Mayor Stone asked about the timing of a decision by CDTFA regarding a prior-year sales tax adjustment. CFO Lai stated that staff is working closely with CDTFA and anticipates a determination within approximately 6 to 12 months. Vice Mayor Stone asked about the City’s vulnerability to similar State policy changes affecting other revenue sources. CFO Lai responded that this situation involved a specific sector affected by CDTFA’s interpretation of existing regulations and that staff does not believe there is comparable exposure across other revenue sectors. In response to whether the risk would have been identified earlier, City Manager Shikada stated that the evolution of sales tax distribution had been monitored and was anticipated to some degree, though the timing was unexpected. Vice Mayor Stone commented that the adjustment was a significant surprise. Councilmember Lythcott-Haims thanked the Finance Committee and staff for their work and expressed support for contributing $200,000 to allcove. Councilmember Lythcott-Haims requested that the proposed budget include a clear delineation of total City spending on youth mental health, noting that related programs and supports are distributed across multiple departments and initiatives, including teen centers, staff support, the downtown teen center, the JED partnership, and Project Safety Net. A consolidated presentation was requested to SUMMARY MINUTES Page 21 of 22 Sp. City Council Meeting Summary Minutes: 02/23/2026 better reflect youth mental health as a Council priority. Support was expressed for allcove as a Stanford-based model informed by Australian practices and the current funding commitment was characterized as an opportunity to strengthen implementation and elevate its role in supporting youth in the north part of the county. Councilmember Lythcott-Haims commended prior Council and staff action to establish the Section 115 Trust, stating that the strategy has helped address unfunded pension liability and ensure consistent annual contributions. The ability to disburse funds to CalPERS while reducing long-term pension and benefit burdens on the operating budget was described as a positive outcome of that policy decision. Mayor Veenker expressed appreciation for colleagues who advocated for allcove at the County level and noted that the program was a priority of former Santa Clara County Supervisor Simitian. A personal tour of the facility was described, highlighting the drop-in model and availability of on-site physical and mental health resources. Underutilization was attributed in part to limited public awareness. Leadership by Palo Alto was suggested as a way to encourage broader regional participation. Mayor Veenker stated uncertainty regarding the specific funding level or source but expressed support for contributing to the program, particularly given current community needs. Councilmember Reckdahl expressed support for allocating $200,000 to allcove and noted that program policies are being reviewed to improve utilization. Support was expressed for compiling a consolidated accounting of City spending on youth mental health initiatives to improve transparency and tracking. MOTION: Councilmember Reckdahl moved, seconded by Mayor Veenker, to: 1. Approve amendments to the Fiscal Year 2026 Budget Appropriation for the funds and capital projects identified in revised Attachment A, Exhibits 1 and 2 (requires 2/3 approval); 2. Consolidate the remaining $6.0 million in the Uncertainty Reserve with the Budget Stabilization Reserve (BSR) to streamline reserve administration, closing the Uncertainty Reserve; and 3. Authorize the City Manager or their designee to transmit $10.0 million from the City’s PARS Pension Trust to CalPERS as an Additional Discretionary Payment (ADP) MOTION PASSED: 7-0 9. Approval of City Council Values (as Recommended by Policy & Services Committee), 2026 Objectives, Ad Hoc Purpose Statements, and Committee Workplans SUMMARY MINUTES Page 22 of 22 Sp. City Council Meeting Summary Minutes: 02/23/2026 Agenda Item #9 was not heard and deferred to a date uncertain. Adjournment: The meeting was adjourned at 10:45 p.m.