HomeMy WebLinkAboutStaff Report 2602-6021CITY OF PALO ALTO
CITY COUNCIL
Special Meeting
Monday, March 09, 2026
Council Chambers & Hybrid
5:30 PM
Agenda Item
11.Approval of City Council Values (as Recommended by Policy & Services Committee),
2026 Objectives, Ad Hoc Purpose Statements, and Committee Workplans Public
Comment, Staff Presentation
City Council
Staff Report
From: City Manager
Report Type: ACTION ITEMS
Lead Department: City Manager
Meeting Date: March 9, 2026
Report #:2602-6021
TITLE
Approval of City Council Values (as Recommended by Policy & Services Committee), 2026
Objectives, Ad Hoc Purpose Statements, and Committee Workplans
RECOMMENDATION
Staff recommends that the City Council approve: (a) Revised Council Values, as recommended
by the Policy & Services Committee, (b) 2026 City Council Group 1 Objectives, and (c) Ad Hoc
Purpose Statements and Committee Workplans.
EXECUTIVE SUMMARY
At its January 24, 2026 annual retreat, the City Council adopted a refined framework for
establishing priorities and objectives that emphasizes clarity, focus, and implementation. Under
this approach, City Council Values represent enduring policy commitments; Priorities identify a
limited number of areas requiring heightened focus; and Objectives define specific, measurable
actions to advance both values and priorities. This structure is intended to strengthen
accountability, align resources with Council direction, and ensure meaningful progress within
the year.
This report presents: (a) recommended revised City Council Values as recommended by the
Policy & Services Committee; (b) the proposed 2026 Group 1 Objectives aligned with the
adopted Priorities; and (c) Ad Hoc Purpose Statements and Committee Workplans for City
Council consideration and adoption. Objectives are organized into three categories: Group 1
(mission-critical and requiring City Council engagement), Group 2 (value-adding initiatives with
flexible timing), and Staff Not Recommended. While all Group 1 and Group 2 objectives will be
tracked for progress, quarterly reporting will focus on Group 1 objectives to align with City
Council’s highest priorities. The Policy & Services Committee reviewed and consolidated
proposed revisions to the City Council Values and unanimously recommends adoption of an
updated set of values.
It should be noted that the objectives and timeframes described here were developed prior to
the identification of potential near-term changes being considered at railroad grade crossings.
The effort required to address this issue may impact timelines of other priority objectives.
BACKGROUND
1. City Council
distinguished between enduring Council Values, time-bound priorities, and actionable
objectives, noting that values should reflect long-standing policy commitments, while priorities
should represent a limited number of areas requiring heightened Council attention in the near
term. Several policy areas previously treated as annual priorities were recognized as ongoing in
nature and more appropriately reflected as values, allowing annual priorities to be more
targeted and strategic. This refined approach remains consistent with the Council’s Policies and
Protocols Handbook.
Achieve Near-Term Priority Housing Milestones
Cubberley Acquisition and Renovation Funding
Enhance Business Vibrancy
Government Efficiency
The Palo Alto City Council has universally shared values that help guide our decision and the
work we do. These values include:
1. We will make decisions that balance revenues and expenses, now and in the future.
2. We will make decisions that are environmentally sustainable, now and in the future.
3. We will integrate equity into our decisions, considering how decisions affect people
differently based on their identity or circumstances.
4. We will make decisions that create a healthy, safe and welcoming community for all.
5. We will safeguard public trust through transparent practices and open communication.
1 January 24, 2026 City Council Retreat:
https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=18520
6. We embrace innovation.
This report outlines the reorganized proposed 2026 Objectives within the adopted Priorities
and City Council Values, incorporating City Council feedback and the refined priority
framework. It also includes ad hoc purpose statements and committee workplans for City
Council consideration and adoption, as well as the recommended City Council Values refined by
the Policy & Services Committee for City Council consideration.
ANALYSIS
City Council Values
On February 10, 2026, the Policy & Services Committee discussed the City Council referral to
refine the City Council Values and considered proposed revisions submitted by City
Councilmembers Burt, Reckdahl, and Mayor Veenker.3 The Committee noted that the
proposals were mostly aligned, with differences primarily related to wording, organization and
level of specificity. The Committee emphasized readability, clarity, succinctness, and ensuring
that the final values incorporated key themes raised in all the suggested drafts, including
economic development, fiscal stewardship, equity, belonging, innovation, climate action and
adaptation, transparency, and community well-being. Following revisions and consensus on
language, the Committee agreed on a consolidated set of seven City Council Values and voted
unanimously to recommend that the City Council adopt the updated values:
1.Vibrant Community. Cultivate a dynamic community by fostering retail vibrancy,
economic development, engaging public spaces, and a high quality of life for all.
2.Fiscal Responsibility. Exercise disciplined financial management to ensure city revenues
and expenses remain balanced and sustainable, and are fiscally strategic and
responsible.
3.Accountable Governance. Earn public trust through transparent leadership, inclusive
engagement, and open communication.
4.Strategic Innovation. As the birthplace of Silicon Valley, embrace innovation in the
public and private sectors to optimize efficiency and outcomes.
5.Equity and Shared Prosperity. Center equity in every decision, and advance housing,
workforce, and social policies that promote inclusion, socioeconomic diversity, and
opportunity.
6.Climate Leadership and Environmental Stewardship. Lead with urgency on climate
action and adaptation, sustainability, and environmental protection for current and
future generations.
7.Community Well-Being & Belonging. Foster a safe, healthy, and welcoming community
where everyone belongs and can thrive physically, mentally, and socially.
3 February 10, 2026 Policy & Services Meeting:
https://cityofpaloalto.primegov.com/meetings/ItemWithTemplateType?id=10899&meetingTemplateType=2&com
piledMeetingDocumentId=18478
Proposed 2026 Objectives
Group 1 objectives are categorized as mission-critical, and must be achieved to meet legal,
operational, safety, or strategic requirements. Objectives in this group will require City Council
engagement. These are captured in Attachment A.
Group 2 objectives are value-adding initiatives that are important, improve quality of life or
advance longer-term goals, but flexible in timing and dependent on capacity or completion of
Group 1 priorities. These do not create immediate risk if delayed. Many of the objectives
captured in this category are already underway and will not require Council action to be
completed. These are captured in Attachment B.
Staff Not Recommended objectives include projects that are not recommended to be part of
the 2026 list of objectives, for a variety of reasons including feasibility challenges, or work is
already underway as part of a greater effort, such as the draft proposed Business Retention,
Expansion, and Attraction (BRE/A) strategy in Attachment G. A narrative for each objective not
being recommended is summarized in Attachment C.
Priority Group
1
Group
2
Staff Not
Recommended
Total 42 24 14
Ad Hoc Purpose Statements and Committee Workplans
Rail Committee (Brown Act)
Rail Safety/Youth Mental Health Ad Hoc
Cubberley Ad Hoc
Economic Development Ad Hoc (Brown Act)
Climate Action & Sustainability Ad Hoc (Brown Act)
Oversized Vehicles Impacts & Services Ad Hoc
Downtown Housing Plan and SB79 Ad Hoc
Valley Water Shoreline Funding Allocation Ad Hoc- the purpose of this ad hoc was
fulfilled in 2025.
FISCAL/RESOURCE IMPACT
STAKEHOLDER ENGAGEMENT
The City uses the International Association for Public Participation (IAP2) as a guide to structure
community participation and align that participation with the type of input or feedback needed
based on the project/issue. Workplan engagement typically fit within these general focus areas:
Inform: Fact sheets, webpages, blog posts, information sessions, open houses, frequently asked
questions, community briefings, and website feedback forms
Consult & Involve: Surveys, focus groups, questions and answer sessions, office hours, public
meetings like community meetings, town halls, panel discussions, workshops, and polling
Collaborate & Empower: Working groups, ad hoc groups, feedback groups, boards,
commissions and committee meetings, community advisory panels, advisory groups, digital
engagement platforms, and voter ballot measures.
ENVIRONMENTAL REVIEW
ATTACHMENTS
APPROVED BY:
ATTACHMENT A
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B C D E F G H I J K L M
2026 DRAFT CITY COUNCIL PRIORITIES AND OBJECTIVES
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Achieve Near‐Term Priority Housing Milestones (ANTPHM)‐ 15 Total
x
Adopt an updated Accessory Dwelling Unit (ADU) ordinance to comply with State law
and implement additional policy alternatives, including increased allowable square
footage and condominium conversions, consistent with City Council direction
(05.15.23). Milestone: Planning and Transportation Commission recommendation
and City Council consideration of draft ordinance.x 1
x
Evaluate opportunities that make multi‐family housing an attractive alternative to
commercial office development, consistent with Housing Element Program 3.9A.
Milestones: Feedback from Policy & Services Committee in Q1 and advance
ordinance to Council in Q2.x 1
x
Partner with Santa Clara County Housing Authority to achieve construction timeline
milestones for the Palo Alto Homekey project (which will provide transitional housing
and services for unhoused residents). Milestone: Formal opening of the Palo Alto
Homekey facility at 1237 San Antonio Rd.x 1
x
Receive a Prohousing Designation from the California Department of Housing and
Community Development in order to enhance the City's competitive advantage for
qualifying grants. Milestone: Apply to HCD in Q1; receive approval in Q2. x
x
Select a preferred alternative for the San Antonio Road Area Plan land use and
transportation alternatives based on community input and City Council direction.
Milestones : Stakeholder input for alternatives (PTC, community, and advisory
bodies') in Q1, Council selection of preferred alternative(s) in Q2, Environmental
Impact Review in Q3, and Council review of policy recommendations in Q4.x 1
x
Develop and adopt Objective Development Standards for the South of Forest Area
Coordinated Area Plan (SOFA), and present plan amendment options to replace
subjective standards with objective standards for Planning and Transportation
Commission and City Council consideration, consistent with Housing Element
Program 3.7. Explore alignment opportunities with SB 79 work and Downtown
Housing Plan. Milestones: Planning and Transportation Commission recommendation
and City Council consideration of amended SOFA CAP and/or municipal code
amendments by end of 2026. x 1
x
Codify the R1/SB 9 interim ordinance by establishing objective development
standards and increasing the maximum floor area for SB 9 units from 800 to 1,200
square feet, consistent with Housing Element Program 6.3A, and evaluate
implications for R1 and SB 9 projects within the City’s Individual Review Program.
Milestones: Planning and Transportation consideration of draft ordinance in Q3;
Council consideration in Q4.x 1
Priority
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OBJECTIVES (42 Total)
Sorted by:
Council Priority, Group #, estimated completion date, and finally by additional resource needs.Q1 Q2 Q3 Q4
Gr
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Attachment A - Page 1 of 6
ATTACHMENT A
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B C D E F G H I J K L M
2026 DRAFT CITY COUNCIL PRIORITIES AND OBJECTIVES
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Priority
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OBJECTIVES (42 Total)
Sorted by:
Council Priority, Group #, estimated completion date, and finally by additional resource needs.Q1 Q2 Q3 Q4
Gr
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12
13
14
15
16
17
x
Conduct and complete a study of short‐term rentals and adopt housing and
neighborhood preservation regulations that prioritize long‐term occupancy,
consistent with Housing Element Programs 4.2D–E (anticipates ordinance adoption
by July, 2027). Milestones: report to City Council in Q3; prepare alternatives for
Council and Planning and Transportation Commission review in Q4, 2026 or Q1, 2027,
if requested.x 1
x
Receive Council direction on optional SB 79 implementation strategies and, as
appropriate, present scenario Downtown Housing Plan scenarios to Council and
initiate environmental review. Milestones: Work with SB 79 and Downtown Housing
Plan City Council Ad‐Hoc Committee on next steps in Q1 and Q2 based on SB 79
implementation approach; advance Downtown Housing Plan based on direction
received from City Council through Q4.x 1
x
Adopt zoning incentives and development standards that support innovative housing
typologies, including micro‐units, intergenerational housing, housing for aging adults,
students, and lower‐income households, consistent with Housing Element Program
6.5B. Milestones : Study session with Planning and Transportation Commission in Q1;
recommendations for Architectural Review Board consideration in Q2; Planning and
Transportation Commission recommendation and City Council consideration of draft
ordinance in Q4.x 1
x
Update and adopt development impact fees for public safety, government facilities,
housing, transportation, parks, and community services, including completion of
nexus and feasibility studies and establishment of fee waivers for low‐income
inclusionary units. (Housing Element Programs 2.1B; 3.1B & C). Milestone: Present
development scenarios and growth assumptions to Council for feedback by Q2.
Adopt Parks, Library & Community Facility Fee Updates by Q3. Adopt additional fee
updates by Q1 2027.x 1
x
Issue Requests for Information or Requests for Proposals (RFI/P) to develop
approximately 218 affordable or workforce housing units on City‐owned surface
parking lots. (Housing Element Program 1.4A). Milestone: Review draft RFI/P with
Policy & Services Committee by Q3 2026 to issue the solicitation process by year end.x 1
x
Identify and designate additional Housing Element site capacity to maintain RHNA
compliance and buffer by evaluating new opportunity sites to address anticipated
capacity shortfalls in 2026, including impacts from development on faith‐based sites
and downtown parking lots. Milestones : Select consultant to provide technical
analysis in Q1; Planning and Transportation Commission recommendation and City
Council consideration of replacement Housing Element sites in Q3.x 1 $‐$$
Attachment A - Page 2 of 6
ATTACHMENT A
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2026 DRAFT CITY COUNCIL PRIORITIES AND OBJECTIVES
AN
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Priority
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OBJECTIVES (42 Total)
Sorted by:
Council Priority, Group #, estimated completion date, and finally by additional resource needs.Q1 Q2 Q3 Q4
Gr
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18
19
20
21
22
23
24
25
26
x
Implement Oversized Vehicles (OSV) Phase 1 work, including options for RV buyback
and storage, new recruiting safe parking and enforcement/signage relating to
detached/inoperable vehicles prohibition. Milestones: In coordination with the OSV
Ad hoc, seek Council direction on preferred option(s) on RV buyback and storage in
Q2. Implement signage and enforce detached/inoperable vehicles prohibition in Q2.
Work with OSV Ad Hoc on recruiting new safe parking and bring any potential
projects to Council for consideration in Q3. (related to 2025 Objective 3.3.4). x 1
$$‐
$$$
x
Initiate and advance Oversized Vehicles Phase 2 work, including oversized vehicle
permit pilot (e.g., collecting count data, designing permit process & terms, conducting
informal RFI/Q to operate pilot). Milestone : Develop OSV permit pilot, including
enhanced services and bring to Council for consideration. (related to 2025 Objective
3.3.4).x 1
$$‐
$$$
Cubberley Acquisition and Renovation Funding (CA&RF)‐ 2 Total
Continue to advance the Cubberley Project focusing on anticipated purchase of 7
acres from PAUSD and community polling for potential placement of a measure on
the November 2026 ballot and other funding source(s). x 1
Continue to explore and develop partnership opportunities with community
nonprofit organizations to advance certain elements of the master concept plan
through a combination of city and private investments.x 1
Enhance Business Vibrancy (EBV)‐ 5 Total
x
Develop a formal business retention/expansion/attraction program focused on
supporting existing Palo Alto businesses seeking to diversify the local economy,
increase the tax base that pays for essential public services, job creation, support
placemaking and special events, and branding opportunities. Milestone: With the
Economic Development Ad Hoc Committee, review and solidify for Council approval a
Business Retention, Expansion, and Attraction (BRE/A) Strategy with various
implementation actions; an initial draft is attached to this staff report.x 1
x
Adopt an ordinance expanding retail opportunities and strengthening retail resiliency,
including refining retail and retail‐like definitions and updating the retail preservation
ordinance. Milestone: PTC review and recommendation in Q2; City Council review
and action in Q3. Continued engagement with stakeholders prior to implementation. X 1
x
Implement the California Avenue near‐term signage plan replacing the El Camino Real
(October 2026) and Oregon Expressway (August 2026) signs—by completing their
procurement and installation. x 1
Attachment A - Page 3 of 6
ATTACHMENT A
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Priority
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Sorted by:
Council Priority, Group #, estimated completion date, and finally by additional resource needs.Q1 Q2 Q3 Q4
Gr
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27
28
29
30
31
32
33
34
35
x
Continue design work on new parking structure in Downtown core (Lot D).
Milestone: Complete entitlement process and design development phase by the end
of 2026.x 1
x
Secure City Council approval for the California Avenue Outdoor Activation Guidelines.
These guidelines will be finalized through continued stakeholder engagement that
includes a representative mix of business owners and residents and a formal
Architectural Review Board (ARB) review.x 1 $
Government Efficiency (GE)‐ 8 Total
x
Develop and balance FY 2027 budget by June 30 prioritizing government efficiency,
ongoing solutions and balancing fiscal impacts of policies and practices including
consultant contracts, downtown parking and general fund subsidies, nonprofit
partnerships and revenue enhancements.x 1
x
Implement a standardized Citywide Consultant Stewardship Framework—covering
the lifecycle from the decision to outsource and scope drafting to contract close‐
out—to develop and manage scope of services and enhanced reporting on use of
professional services.x 1
x
Improve City processes by streamlining approval of revised procurement thresholds
and contract authority.x 1
x x
Improve and streamline staff work on homelessness, housing and services for
vulnerable residents. Milestones: Centralize in City Manager's Office, Identify and
implement ways to improve processes and reporting (e.g., consolidating contracts,
standardizing reporting, HSRAP).x 1
x
Leverage the Palo Alto 311 staff working group workplan, vendor support and City
Auditor benchmarking advice to improve clarity and timing of constituent response
and satisfaction, and enhance staff efficiencies by aligning report categories with
constituent expectations, and implementing vendor‐proposed 2026 system
upgrades—including integrating AI tools.x 1
x
Modify the municipal code to remove the requirement for planning entitlement
approval (such as architectural review) or compliance with zoning regulations and
procedures for capital improvement or other city‐initiated projects on publicly owned
right of way and land. x 1
Attachment A - Page 4 of 6
ATTACHMENT A
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Priority
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OBJECTIVES (42 Total)
Sorted by:
Council Priority, Group #, estimated completion date, and finally by additional resource needs.Q1 Q2 Q3 Q4
Gr
o
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#
36
37
38
39
40
41
42
43
44
45
x
Explore options to streamline delivery of low‐cost, high‐value (aka quick build) traffic
safety improvements and update the City’s Traffic Calming Policy to align with Safety
Action Plan, Bicycle/Pedestrian Transportation Plan (BPTP) and Safe Routes to School.
Milestone: Council review of existing program, policy needs and approaches.x 1
x
Relocate City operations in Utilities and the Development Center back to City Hall in
order to reduce rent expense to third party landlords, maximizing revenue to the
General Fund, and consolidating property and facility management within City owned
land.x 1
Council Values‐ 12 Total
3,4
Open 429 Bryant Street Community Center. Complete construction and any
necessary partnership agreements to begin La Comida Senior Lunch Program at the
facility by end of July, 2026; plan further work for general community center
operations concurrently. x 1
3,4
Execute MOU with Santa Clara County for assignment of clinician to PD Psychiatric
Emergency Response Team (PERT) in Jan 2026.x 1
2
Adopt ordinance updates establishing additional Green Building Standards and Energy
Reach Codes. Milestone: City Council consideration of ordinance for adoption by June
2026.x 1
2
Complete 2026 Bicycle and Pedestrian Transportation Plan (BPTP) with City Council
adoption of the plan. x 1
2
Advance recommendations for the Regional Water Quality Control Plant Biosolids
Facility Plan. Milestone: Conduct community engagement, refine and review
recommendations with Council Committee in 2026, and further develop
implementation strategies in preparation for Council acceptance of the Biosolids
Facility Plan in 2027. x 1
2
Advance design of Grade Separation projects at Charleston Road, Meadow Drive and
Churchill Avenue. Milestone: Complete 15% design and select Locally Preferred
Alternative for 35% design at each crossing. x 1
4
Update the Safety Element and develop an Evacuation Plan pursuant to SB 99, AB
747, and AB 1409. Milestones: contract with consultant to develop evacuation plan,
present draft Safety Element amendments to Planning and Transportation
Commission and City Council consideration with final submittal to state for review in
Q3. x 1
Attachment A - Page 5 of 6
ATTACHMENT A
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2026 DRAFT CITY COUNCIL PRIORITIES AND OBJECTIVES
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Priority
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OBJECTIVES (42 Total)
Sorted by:
Council Priority, Group #, estimated completion date, and finally by additional resource needs.Q1 Q2 Q3 Q4
Gr
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46
47
48
49
50
51
3,4
Support Community Mental Health through provision of support for all ages through
community partnerships, programs, and initiatives. Milestone: continue work with
the Jed Foundation engagement to support youth mental health and suicide
prevention efforts.x 1
2
Implement the strategies contained in the 2026‐2027 Sustainability and Climate
Action Plan Work Plan. Milestone: Complete progress on strategies implementation
in substantial alignment with the Target Completion Dates contained in the Work
Plan.x 1
4
Pursue a natural grass athletic field pilot project to determine the best management
practices to enhance playability and durability. Milestones : Q1 work with the Parks
and Recreation Commission (PRC) to develop a workplan for the Turf Pilot. Q2 seek
Council approval of work plan and funding. Q3 Conduct enhanced maintenance pilot
and feasibility study at two locations. Q4 Conduct stakeholder engagement on
conceptual designs and present to PRC. Funding and construction of high performing
grass fields to be completed in 2027‐28 pending Council review and approval.x 1
$$‐
$$$
2
Develop and recommend for Council approval a multi‐year grid modernization capital
improvement plan focused on improving reliability and facilitating city‐wide customer
electrification by upgrading sub‐transmission, substation, and distribution
infrastructure. Issue the first tranche of debt financing in 2026.x 1 $$$$
4
Advance Quiet Zones at Palo Alto Avenue, Churchill Avenue, Meadow Drive, and
Charleston Road Rail Crossings. Milestone: Council approval of Notice of
Establishment and Quiet Zone implementation at Palo Alto Avenue; and identification
of funding and procurement of professional services for design of required
improvements to establish Quiet Zones at Churchill, Meadow and Charleston.x 1 $$$$
$ = up to 50K; $$ = 51‐499K, $$$ = 500K‐999k, $$$$ = 1M +
Attachment A - Page 6 of 6
ATTACHMENT B
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B C D E F G H I J K L MG
2026 DRAFT CITY COUNCIL PRIORITIES AND OBJECTIVES
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Achieve Near‐Term Priority Housing Milestones (ANPHM)‐ 6 Total
x
Present initial data from the first year rental registry program to Policy and Services
for discussion and an information report update to City Council. x 2
x
Present to Policy and Services an analysis related to anti‐rent gouging and forward
Committee recommendations to the City Council. x 2
x
Adopt a renter protection “fair chance” ordinance, including findings and
implementing regulations. (Housing Element Program 6.6I). Milestones: City Council
Policy and Services Committee consideration in Q2 of ordinance revised based on
City Council direction; City Council consideration upon P&S recommendation in Q3.
x 2
x
Release a Request for Proposals for development of the one‐acre site near
Matadero Creek dedicated to the City under the 2023 Sobrato/City Development
Agreement. Milestone: Issue RFP by end of 2026.x 2
x
Expand and implement the Safe Parking Program in commercial areas by increasing
geographic coverage and service availability citywide. (Housing Element Program
6.4A and Council assigned 12.04.23). Milestones: Initiate draft of zoning text
amendment by end of 2026.x 2
x
Organize an initial review of sources and methods to raise funding to support new
affordable housing production for future evaluation.x 2
Cubberley Acquisition and Renovation Funding (CA&RF)‐ 0 Total
Enhance Business Vibrancy (EBV)‐ 7 Total
x
Complete stable car free street improvements on Ramona Street, e.g. bollards and
barriers, signage, and parking regulations. Milestone: Implementation of updated
parking signage and painted curbs, and installation of spherical bollards, vehicular
barriers, and updated signage.x 2
x
Modernize Downtown parking policy to increase availability of premium parking,
reduce operating subsidies, encourage development and economic diversity and
vibrancy, and reduce fossil fuel dependency. Milestone: Council review of options to
modernize parking policy.x 2
Priority
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OBJECTIVES (24 Total)
Sorted by:
Council Priority, Group #, estimated completion date, and finally by additional resource needs.Q1 Q2 Q3 Q4
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Attachment B - Page 1 of 3
ATTACHMENT B
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2026 DRAFT CITY COUNCIL PRIORITIES AND OBJECTIVES
Priority
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OBJECTIVES (24 Total)
Sorted by:
Council Priority, Group #, estimated completion date, and finally by additional resource needs.Q1 Q2 Q3 Q4
Gr
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17
18
19
20
21
22
23
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25
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27
x
Extend the existing interim ordinance or adopt a new ordinance that restores and
implements subjective wireless communication facility regulations. Milestones:
Present an ordinance to the City Council in Q4.x 2
x
Begin feasibility analysis of Assessment District for University Avenue Streetscape.
Conduct analysis to determine practicality of an assessment district or similarly
funding strategy as a funding mechanism for capital enhancements to University
Avenue Streetscape. x 2 $$
x
Design and provide funding appropriations to improve the car free portion of
California Ave for bike and pedestrian markings and calming and minor physical
environment adjustments to reduce friction with the outdoor dining guidelines (e.g.
movement of bike racks). x 2 $$$
x
Engage stakeholders to develop design proposals for Car‐Free Ramona Street and
present to Council for necessary funding appropriations to implement initial
phase(s). Begin Historic Resource Board and Architectural Review Board review of
activation guidelines in late 2026/early 2027. x 2 $$$
x
Initiate process for Development of the Comprehensive Plan Update. Milestone :
Confirm a more limited scope for the upcoming 2030 Comprehensive Plan to inform
the release of an RFP by Q4 2026 to select a consultant to support the limited scope
refresh; consultant funding will be necessary.
x 2 $$$
Government Efficiency (GE)‐ 0 Total
N/A
Council Values‐ 11 Total
2
Adopt Bird‐Friendly Design standards. Milestones: City Council consideration in
March/April 2026 of ordinance recommended by PTC in late 2025. x 2
2
Adopt an ordinance updating Stream and Creek Corridor Setback requirements.
Milestone: PTC consideration of revised draft ordinance in Q2, 2026; Council
consideration of draft ordinance in Q3, 2026. x 2
2,4
Update the City's Natural Environment Element Update to comply with recent state
law. Milestone: Prepare draft revisions for review by the Parks and Recreation
Commission, Planning and Transportation Commission, and City Council by Q3,
2026. Present Comp Plan amendments to PRC, PTC, and City Council by the Q4 of
2026. x 2
Attachment B - Page 2 of 3
ATTACHMENT B
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2026 DRAFT CITY COUNCIL PRIORITIES AND OBJECTIVES
Priority
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OBJECTIVES (24 Total)
Sorted by:
Council Priority, Group #, estimated completion date, and finally by additional resource needs.Q1 Q2 Q3 Q4
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29
30
31
32
33
34
35
36
2,4
Advance design on South Palo Alto Bikeway project to increase walking and biking
and enhance safety. Milestone: Initiate work on pilot bikeway project.x 2
2,4
Complete concept design for additional east‐west bicycle/pedestrian crossing of
railroad tracks in the southern part of the City. Milestone: Council review of draft
report on South Palo Alto Connectivity.x 2
2
Continue to implement 3‐phase plan presented to Council in September 2024 for
phasing out leaded fuel at Palo Alto Airport. Milestone: Initiate lead air monitoring
program in Q1, work with the new fuel provider and supplier to inform tenants and
encourage the use of unleaded fuel, and provide a progress update to City Council.
x 2
4
Restart and make progress on the Palo Alto Airport master planning process.
Milestone: Develop updated alternatives informed by Council feedback from
September 2024, conduct public stakeholder meetings, and conduct a study session
with Council to review progress.x 2
4
Develop and adopt updates to the City’s seismic risk mitigation ordinance.
Milestone: Seek policy guidance from Policy and Services Committee, review draft
ordinance with Policy and Services Committee, and Council consideration of
ordinance updates by Q4 2026. x 2
2,3
Launch new Palo Alto education and rebate program for electric stoves and
cooktops, with a goal of 50 electric cooktop conversions from gas. Milestone:
Program is available to customers by the end of Q2 2026.x 2
2
Implement Quarry Road Extension in Partnership with Stanford University, Caltrans
and VTA. Milestone: Execute grant agreement with MTC and submit initial
engineering package to Caltrans to confirm process. x 2
6
Complete build‐out of fiber‐to‐the‐premises (FTTP) pilot Phase 1 and begin provision
of beta service for a municipal high speed fiber service. Establish internet service
provider operations and through iterative customer engagement, and provision
services to residents in the initial pilot area.x 2
$ = up to 50K; $$ = 51‐400K, $$$ = 500K‐999k, $$$$ = 1M +
Attachment B - Page 3 of 3
ATTACHMENT C
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Staff Not Recommended Objectives
For various reasons, including staff capacity to advance, feasibility challenges, or that work is already
underway, some objectives from the 2025 Priority Objectives list, previous Council suggestions, or the
Annual Retreat suggestions are not recommended to become priority objectives for 2026. Staff will be
prepared to respond to any Councilmember’s questions.
12. Begin implementation of the City Facility Electrification Plan. Milestone: Council approval of design
consultant contract and procurement of a contractor to construct projects at first two buildings.
This objective will continue as a staff priority but is not recommended for inclusion as a
standalone project, as it is already incorporated into the 2026–2027 Sustainability and Climate
Action Plan Work Plan. Instead, staff has added a broader objective focused on implementing
the Work Plan items overall, which encompasses this initiative.
15. Pilot electrification as a service, charging as a service, or creative financing programs to complement
the City' s single-family, multi-family, and/or non-residential electrification programs, that can be scaled.
Milestone: At least one new financing program is available to single-family, multi-family, and/or non-
residential customers by the end of 2026.
This objective will continue as a staff priority but is not recommended for inclusion as a
standalone project, as it is already incorporated into the 2026–2027 Sustainability and Climate
Action Plan Work Plan. Instead, staff has added a broader objective focused on implementing
the Work Plan items overall, which encompasses this initiative.
16. Develop long-term Climate Action funding and financing strategies and scenarios for Council
consideration. Milestone: Present strategies and scenarios to the Council Committee for consideration
by December 2026.
This objective will continue as a staff priority but is not recommended for inclusion as a
standalone project, as it is already incorporated into the 2026–2027 Sustainability and Climate
Action Plan Work Plan. Instead, staff has added a broader objective focused on implementing
the Work Plan items overall, which encompasses this initiative.
54. Implement Senate Bill 79 by developing and presenting implementation options and advancing a
recommended approach for City Council adoption. Seek direction from SB 79 and Downtown Housing
Plan City Council Ad-Hoc Committee on next steps in Q1 and Q2; present recommendations for City
Council consideration and next steps on SB 79 implementation before July 1, 2026; develop SB 79
alternative plan if directed by City Council.
Objective has been combined and updated with Objective #50.
82. Implement a gas-powered leaf blower ban citywide, based on recommendation from Policy and
Services Committee.
Staff is not recommending this project at this time due to limited resources and the need to
prioritize other Council-directed initiatives currently underway.
ATTACHMENT C
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83. Develop and implement strategies to activate vacant commercial storefronts, including establishing
regulatory tools and streamlined permitting for temporary pop-up stores.
Staff is not recommending this project at this time due to limited resources and the need to
prioritize other Council-directed initiatives currently underway.
Staff is not recommending this project at this time due to limited resources and the need to
prioritize other Council-directed initiatives currently underway.
Staff is not recommending this project at this time due to limited resources and the need to
prioritize other Council-directed initiatives currently underway.
Staff is not recommending this project at this time due to limited resources and the need to
prioritize other Council-directed initiatives currently underway.
Staff is not recommending this project at this time due to limited resources and the need to
prioritize other Council-directed initiatives currently underway.
Staff is not recommending this project at this time due to limited resources and the need to
prioritize other Council-directed initiatives currently underway.
Staff is not recommending this project at this time due to limited resources and the need to
prioritize other Council-directed initiatives currently underway. Moreover, the interested parties
can file a text amendment application to initiate this process.
ATTACHMENT C
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90. Council consideration of a design option for California Avenue. Continue engaging stakeholders to
refine alternative street designs for California Avenue and present to Council for discussion and action,
including funding appropriations to pursue a street design in late Q2/early Q3 2026.
Staff is not recommending this project at this time due to limited human and financial resources.
Suspending the project will allow staff to focus on completing the California Avenue Outdoor
Activation Guidelines and supporting businesses in their requests and plans for improvements.
To activate this project funding would be necessary both for staff and professional services
($$$).
These efforts are being incorporated into the proposed Business Retention, Expansion, and
Attraction (BRE/A) Strategy.
ATTACHMENT D
2026 Ad Hoc Committee Purpose Statements
And Tentative meeting schedules
Rail Committee
To meet every other month
The Rail Committee reviews the projects and provides recommendations to the City Council based on
the Rail Guiding principles adopted by the City Council (August 8, 2022). The projects include: the grade
separations and safety improvements at existing crossings, additional east-west bicycle and pedestrian
railroad crossings, and quiet zone improvements. Rail committee will review and advance projects for
Council approval.
Rail Safety/Youth Mental Health
Meeting as needed
The Rail Safety/Youth Mental Health Ad Hoc Committee will facilitate Council decision-making on near-
term modifications to rail crossings in response to and for prevention of youth and other suicides. This
Ad Hoc Committee will also support communication with other agencies such as Caltrain.
City Council involvement and coordination with the JED Foundation’s ongoing postvention engagement
is handled by the City/Schools Liaison Committee.
Cubberley Ad Hoc Committee
To meet monthly or as necessary to meet the project schedule
The Cubberley Ad Hoc will facilitate City Council review and approval of the master plan process and
serve as the Council ambassador for engagement with the community and building community support
for development for a new community center at the Cubberley site. This includes making
recommendations to the Council on the future operating model (e.g. services available, recommend to
Finance Committee an approach to fees & charges, space allocation) and master plan that will
successfully receive voter support in 2026.
Coordination with PAUSD on Cubberley will occur through this committee rather than the City Schools
Liaison Committee. Operations, funding, and ballot measure work (including polling) may be heard by
the Finance Committee rather than the Cubberley Ad Hoc for recommendations to the full City Council.
Economic Development Ad Hoc Committee
To meet every other month
The Economic Development Committee will provide a regular forum for business and community
stakeholders to engage with Council members on implementation of the City’s economic development
strategy. The Economic Development Committee will make recommendations to the City Council and
provide ongoing engagement on approved economic development priorities to enhance business
vibrancy efforts, including business retention, expansion, and attraction.
ATTACHMENT D
Climate Action & Sustainability Ad Hoc Committee
To meet monthly
The Climate Action & Sustainability Committee facilitates implementation of the Climate Action
workplan items of the 2026/2027 Sustainability and Climate Action Plan (S/CAP) Workplan and the 2026
Council Priority Objectives which fall under the Council values on environmental sustainability.
Oversized Vehicles Impacts & Services Ad Hoc
Meeting as needed
The Oversized Vehicles (OSV) Ad Hoc Committee was created at the October 20, 2025 Council Meeting.
The Committee is tasked with 1) recommending details on increased enforcement; 2) sharing
recommendations on other issues related to the implementation of the Oct. 20 Council motion on OSVs
(including safe parking street cleaning, urgency ordinances for detached trailers and “vanlording,” and
considering options for buyback or parking program); 3) evaluating Phase 2 activities; and 4)
participating with staff in further engagement. To date, meeting frequency has been weekly, with few
exceptions.
Downtown Housing Plan and SB 79 Ad Hoc
Meeting as needed
Established late 2025, the purpose of the ad hoc is to explore options to implement SB 79, including no
additional action, and support staff’s continued work on the Downtown Housing Plan through the
balance of calendar year 2026. Meeting frequency will vary throughout the year with more meetings
initially and fewer meetings toward the end of the year averaging out to approximately one meeting
every two months.
Valley Water Shoreline Funding Allocation Ad Hoc
Meeting as needed
The Valley Water Shoreline Funding Allocation Ad Hoc was announced at the February 24, 2025 City
Council meeting, in response to a Valley Water proposal to shift funding for addressing sea level rise in
the north County to a south County project. The committee was announced with an expectation of
being active for approximately 60 days. Valley Water ultimately deferred taking the action in 2025, and
proceeded with making process improvements to support better communications and consultation for
future proposals affecting project funding.
The purpose of this ad hoc was fulfilled in 2025.
City of Palo Alto I 250 Hamilton Avenue, Palo Alto, CA I www.paloalto.gov – February 2026
POLICY & SERVICES TENTATIVE TOPICS CALENDAR 2026
Tentative as of February 10, 2026
January
•Nonprofit Workplan item
•Referral (2024): Establish a frequency for joint City Council meetings or Policy & Services meeting
with Boards and Commissions, Youth Council, and meetings with Boards and Commissions Chairs; -
Kept referral per P&S on Dec. 9, 2025
February
•Council referral (from Jan 24, 2026 retreat): Update City Council Values and Consider Renaming
them (linked to adopted values on November 7, 2022 –
https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=2269&dbid=0&repo=PaloAlto
•SB 707 Brown Act Updates
•Seismic Ordinance Follow up discussion
Note: All items listed for the following months are tentative in date at this time. Items will be
moved around based on item readiness and agenda capacity in partnership with Committee
Chair closer to the actual meeting date.
March
•Nonprofit Partnership Phase I Improvements
•Consider Policy Tool Options to Encourage Multi-Family Development in Mixed-Use Districts (2023-
2031 Housing Element Program 3.9(A)).
•Audit: Utilities Reserves
April
•Discussion of Local Residential Rental Market Data and Recommendation regarding whether to
Pursue a Rent Stabilization Program
•Present initial data from the first-year rental registry program to Policy and Services for discussion
and an information report update to City Council.
•Legislative Update
•Fair Chance in Housing Ordinance
•Incentives at Strategic Locations to Shift the Economic Benefit of Redevelopment from Commercial
Toward Home Building (2023-2031 Housing Element Program 3.9(A)).
•Auditor Report: Junior Museum and Zoo
•Auditor Report: Annual Follow-up on Audit Recommendations
City of Palo Alto I 250 Hamilton Avenue, Palo Alto, CA I www.paloalto.gov – February 2026
May
•Referral Follow Up: Discussion and Recommendation to Council Regarding Potential New
Procedure for Councilmembers to Make Referrals to Staff Besides Colleagues’ Memo
•Auditor Task Orders
•Auditor Report: Public Safety Overtime
•Auditor Risk Assessment
•Quarterly Audit Status Report
June
•Review of Proposed Amendments to Seismic Risk Mitigation Ordinance
•Present to Policy and Services an analysis related to anti-rent gouging and forward Committee
recommendations to the City Council.
•(other items carried forward from April or May)
July – No meeting; Council break
August
•Tentative: Auditor Report
•Legislative Update (State and Federal)
September
•Tentative: Auditor Report
•Review RFI/P solicitation related to Housing Element Program 1.4A
October 29
•Tentative: Auditor Report
November 19
•Legislative Agenda and Guidelines; and Brief Legislative update
•Tentative: Nonprofit workplan
•2027 City Council Priorities Discussion (focused on process, the retreat and submitted ideas)
December 9
•Tentative: Auditor report
•No Procedures & Protocols Handbook Discussion (every other year and this is an off year)
•Informational: Report out on Status of Committee Referrals
Items removed:
•Referral (2024): Policy & Services to review and make recommendations for any initiatives to
support and strengthen neighborhood programs (linked to discussions in 2021) Removed from
referral list at Dec. 9, 2025 P&S Meeting 1 as the spirit of the referral has been accomplished
1 P&S Discussion, December 9, 2025, Item #5, Link:
https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=16351
City of Palo Alto I 250 Hamilton Avenue, Palo Alto, CA I www.paloalto.gov – February 2026
Referrals from February 9, 2026:
1. Refer to staff and subsequently the Policy & Services Committee for a recommendation to the full
City Council on the permissible and recommended practices relating to an item going to more than
one standing committee when appropriate (Procedures Section 1.2(a)2).
2. Refer to staff to return with recommended language regarding if staff should provide briefings,
respond to Councilmember questions, collaborate with Councilmembers to support City Council
representatives on regional bodies. (Not required to come to P&S, but could if needed)
3. Refer to staff and return to Council on the use of verbatim transcripts for PTC and UAC Board
minutes using AI. (Not required to come to P&S, but could if needed)
Further Work Requested Related to these Referrals:
1. Discussion of the Creation of the Advisory Committee regarding Council Compensation
(Previous Committee action completed. P&S Committee requested on Dec. 9, 2025 to keep this
item on the list to bring back)
2. Initial Discussion Regarding Potential New Procedure for Councilmembers Referrals to Staff
City of Palo Alto I 250 Hamilton Avenue, Palo Alto, CA. I www.cityofpaloalto.org
ATTACHMENT F
FINANCE COMMITTEE TENTATIVE TOPICS
CALENDAR 2026
As of January 30, 2026
The Municipal Code states that the role of the Council Finance Committee is to consider and
make recommendations on matters referred to it by the Council relating to finance, budget,
financial audits, capital planning and debt. (§2.04.210).
See the end of the document for information on the completed 2025 referrals as well as the
outstanding and on hold referrals to date.
January (6th) (Special Meeting)
Update and Adoption of the Investment Policy (to be done by June 30 per code)
Mayor appoints Committee and designates Chair; usually no FC meeting
February (3rd & 17th)
Feb 3 ‐‐ No Meeting, City Council meetings schedules for January impacts
March (3rd & 17th)
Utilities Advisory Commission Rate Forecasts and Five‐Year Financial Plans: Water,
Wastewater Collection
Storm Water Management Fee
April (7th & 21st)
Utilities Advisory Commission Rate Forecasts and Five‐Year Financial Plans: Gas, Electric.
Planning & Development Services ‐ Electrification State caps & fee subsidies
City Fee Updates (various)
Grid Mod Financing (Tentative)
May (5th, 6th, & 19th)
Annual Budget Review: Operating and Five‐year Capital Improvement Plan
Alternative meeting times (9:00am – 5:00pm) May 5 and May 6
Including Nonprofit Partnership Workplan Phase I funding
June (2nd & 16th)
Third Quarter Fiscal Year 2025 Financial Report
July
No meeting; Council Break
Finance Committee Tentative Topics, Calendar 2026
As of January 2026
August
Grid modernization financing
September
Accept California Public Employees’ Retirement System (CalPERS) Pension Annual
Valuation. Reports as of June 30, 2024.
Retiree Benefit Policy – review and update, if necessary.
October
November
Informational: Report out on Status of Committee Referrals
Discussion and Recommendation to the City Council to Accept the Macias Gini &
O'Connell's Audit of the City of Palo Alto's Financial Statements as of June 30, 2026 and
Management Letter
Discussion and Recommendation to Approve the Fiscal Year (FY) 2026 Annual
Comprehensive Financial Report (ACFR) and Approve Budget Amendments in Various
Funds
December
Review and Forward the FY 2028 ‐ FY 2037 Long Range Financial Forecast
First Quarter Fiscal Year 2026 Financial Report
Preliminary Utility Rate Forecast Review
Referred Topics:
A full report on the status of Finance Committee referrals and the status can be found on Item
2 on the November 18, 2025 agenda1.
Completed Referrals
1) Planning and Development Services Fee Study and Update
2) Parking Permits Pricing and Parking Permit Funds Financial Status. [scheduled for Council
consideration Spring 2026]
3) Ability Path financial support [addressed in FY 2025 Mid‐Year Report]
4) Fire Emergency Medical Response Fee Analysis and Update.
5) Fire Emergency Medical Reponses; Supplemental Resources – Approved 12‐Hour Peak
Ambulance with Single Role Staff (Implementation in 2026)
6) Active Recruitment Digital Marketing Services (Contract Services) – Staff discontinued
request due to financial situation, available workforce due to layoffs (federal level and local
tech) and limitations on digital marketing into the hard to recruit industries.
1 https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=16320
Finance Committee Tentative Topics, Calendar 2026
As of January 2026
7) Establish Organizational Development & Safety Division – Without adding headcount, Staff
created a merged division of organizational development and HRIS to support.
8) Explore financial, outreach, and policy processes for adding East Palo Alto to resident rates
for the golf course – East Palo Alto added to resident rates for golf course, effective July 1,
2025.
In Progress/Pending Referrals:
9) Review Parks Restroom Prioritization; Specifically, Pardee Park – Incorporated into FY22026
CIP that was approved by Council on June 16, 2025, CIP PG‐19000 anticipated to begin mid‐
2026.
10) Increasing Revenue‐ Generating CSD Programming to Meet Demand\Cost recovery policy
100% ‐‐ Further analysis and review in Spring 2026
11) Cost Recovery Policy – Update to include new 100% Category ‐ Spring 2026
12) Update Fee Cost Recovery Category for current fee cost categories – update fee categories
and fees as a part of budget development – Spring 2026
13) Risk Mgt, General Liability and Insurance – Update Council on risk management, safety
policies and risk transfer and claim analysis and mitigation strategies – going to Council
February 2026
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City of Palo Alto - 2026 City Council Priorities
At the January 24, 2026 meeting, the Palo Alto City Council reached consensus on
adopting a 2026 Economic Development priority titled, “Enhance Business Vibrancy.”
The City Council acknowledges the importance of Economic Development and the
intersection between a healthy local economy and the City’s long-term fiscal
sustainability. The City of Palo Alto continues to build from the current Economic
Development Strategy to achieve the City Council’s goals and priorities.
Economic Development is taking a proactive approach to advocating for Palo Alto’s
business and entrepreneurial ecosystem that is reflective of the population it serves.
Economic Development is a concerted effort by the City of Palo Alto’s City Council to
ensure that the business climate is healthy. As such, the Economic Development team
recommends that the Economic Development Ad Hoc Committee (formerly Retail Ad Hoc
Committee) and City Council proceed with a formal Business Retention, Expansion, and
Attraction (BRE/A) Strategy.
A Business Retention, Expansion, and Attraction (BRE/A) Strategy will formalize
Economic Development’s Work Plan for calendar year 2026. A BRE/A Strategy consists
of identifying key industries for retention, expansion, and attraction, proactive business
engagement to build strategic partnerships, determining areas where the City of Palo Alto
can gain a competitive advantage, and providing support for a favorable business
environment that can lead to increased employment opportunities and overall economic
prosperity. The BRE/A Strategy will result in preserving and enhancing the local business
climate to ensure the City is fiscally stable to provide essential services that the Palo Alto
community deserves.
The BRE/A Strategy includes two tactical categories: Enhance Business Vibrancy and
Engagement and Promotions. While two 2026 City Council priority objectives are included
in the BRE/A such as #29 to develop a formal business retention, expansion, and
attraction program and #34 focused on activation activities and events, other key
components include strengthening the tax base, developing a competitive advantage, real
estate assets, business and community engagement, and promotions and marketing.
Performance Metrics are specific, measurable, achievable, relevant, and timely.
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Business Retention, Expansion and Attraction (BRE/A) Strategy – Enhancing
Business Vibrancy is a 2026 City Council priority and includes priorities #29 and
#34.
Strengthening the Tax Base
o Sales tax, property tax, and transient occupancy tax revenue bases -
Establish a formal Corporate Visitation Program. Review quarterly data for
sales/transient occupancy tax revenues and bi-annually for property tax
revenues to identify and respond to changing trends. Performance Metric:
Convene up to five of the top twenty-five sales tax generators by the end of
2026 with the goal of retaining businesses that enhance the City’s long-term
fiscal sustainability on a quarterly basis.
o New Investment Opportunities - Encourage new investments that create
economic impact, multiplier effects and sales tax revenue. Performance
Metric: Staff will explore financial and non-financial incentives and develop
a list to support, retain, and grow business opportunities to drive economic
vitality by Quarter 3 2026, and present to the Economic Development Ad
Hoc Committee for review and feedback.
Competitive Advantage
o Venture Capital, Incubators, and Accelerators - IDA Ireland, Japan
Innovation Campus (JIC), Consulate General and Innovation Centre
Denmark, Nordic Innovation House, Flanders Investment and Trade (FIT),
The Hive, Archimedes Labs, StartX, Venture Dock, etc. Performance
Metric: Meet with at least four Venture Capital investment firms, incubators,
and accelerators to develop foreign direct investment (FDI) opportunities
and continue to cultivate the innovation and entrepreneurial ecosystem by
the end of calendar year 2026.
o Business Technical Assistance - Performance Metric: Partner with the
Silicon Valley Small Business Development Center (SV SBDC), Small
Business Administration (SBA), SCORE, Chamber of Commerce, etc. to
host two small business (live and virtual) training workshops in 2026.
Real Estate Assets
o Real Estate Network - Property Owners, Real Estate Brokerage, Property
Managers, and Development Community Network to foment relationships
to fill vacant spaces and attract a mix of retail, office, and industrial
businesses to enhance diversity of businesses for a broader customer base.
Performance Metric: Economic Development will host a Real Estate
Broker roundtable by Quarter 4 2026 to learn about new opportunities,
market trends, new uses, permit processes, and align development efforts
with market needs.
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o City Real Estate Assets – Leverage City’s real estate assets for revenue
generation. Performance Metric: Economic Development will execute a
lease with Nobu for the use of 20 valet services parking spaces in Parking
Lot Q by April 2026 to generate new revenues for the City.
Engagement and Promotions
Business and Community Engagement
o Public-Private Partnerships - Engagement fosters trust and collaboration,
allowing for effective partnerships that leverage resources for community
projects - Performance Metric: Economic Development will promote the
Retail Vibrancy Ordinance reflecting flexibility in land use/zoning to the real
estate network starting in Quarter 2, and establish two office hour events on
California Avenue and Downtown for additional business and community
engagement opportunities by Quarter 3 2026.
o Open Container Resolution and Entertainment Zone - Performance
Metric: Economic Development will present to the Economic Development
Ad Hoc Committee to obtain a recommendation for the City Council’s
consideration of a California Avenue Entertainment Zone Ordinance in
April/May 2026.
Promotions and Marketing
o 2026 Activities and Events - Performance Metric: Economic Development
will partner with businesses, Palo Alto Recreation Foundation, and
Chamber on at least 3 California Avenue activities (3rdThursday/FIFA World
Cup) and promote the hospitality sector (digital/print) during the 2026
sporting events (March Madness Tournament/FIFA World Cup) from March
through July 2026.
The BRE/A Strategy is bounded by two strategic categories: Enhance Business Vibrancy
and Engagement and Promotions. The two categories are supported by nine new
Economic Development focused implementation actions for calendar year 2026.
Economic Development staff will continue to lead, co-lead, and/or monitor 2025 City
Council priority projects currently underway including: #30 Retail Vibrancy Ordinance, #31
California Avenue Signage, and #33 California Avenue Outdoor Activation Guidelines.
Economic Development staff recommends suspending #35 Car-free street improvements
on Ramona Street. And, obtain City Council feedback on whether to proceed with #39
California Avenue Design and Funding given that lack of financial resources and to
directly focus on the aforementioned 2025 on-going projects and the new BRE/A
Strategy.
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The BRE/A Strategy lays a foundation for creating a vibrant, resilient, inclusive, and
diversified economic future. Notwithstanding, the BRE/A Strategy highlights the need for
a future Economic Development Strategy that serves as a policy document that will guide
the City of Palo Alto’s economic development activities for a designated period. Should
the City Council consider a new Economic Development Strategy, it would align with the
City’s Comprehensive Plan and the Economic Development Element, Sustainability and
Climate Action Plan (S/CAP), and other City policy documents. A new Economic
Development Strategy will serve as Palo Alto’s road map to grow and diversify the local
economy, support businesses and workers, and improve the quality of life for Palo Altans.
From:Jennifer Landesmann
To:Council, City
Subject:March 9 Agenda Item # 11 - What happens with items submerged “below the water line” in the City’s iceberg
metaphor
Date:Sunday, March 8, 2026 2:59:52 PM
CAUTION: This email originated from outside of the organization. Be cautiousof opening attachments and clicking on links.
Dear Mayor Veenker, Vice Mayor Stone, Councilmembers Lauing, Burt, Lu, Lythcott-
Haims, Reckdhal,
Thank you for all your efforts on the Council Priority Setting process.
It was however concerning to hear the iceberg metaphor used at the retreat for
annual priorities and resource allocation planning when Council and the public
currently lack a systematic way to track and measure what lies “below the water line.”
The City only recently adopted the workplan to track objectives and progress on
“above the water line” issues. This facilitated your discussions about what to elevate
as a 2026 priority, and – for the first time in these discussions –I commend that
Council is making the objectives in the priorities workplan more metrics-driven.
More alarming though- and repeatedly stated at the retreat - is the assumption that
items “below the water line” do not require Council involvement during the year.
Please clarify this point because in reality, many such items make the public agenda.
The implication appears to be that Council’s attention to resource allocation is
primarily (or only) about the annual priorities, treating everything else as mostly staff’s
domain. As I have written before, this poses problems when an issue lacks any other
formal direction or oversight - such as a commission or standing committee - that
provides transparency and ways for public input to be considered on a topic.
Understandably, Council cannot review every City issue annually. Councilmembers
are eager to advance their highest aspirations during their terms, and some issues
may not personally interest individual Council members. Nevertheless, every Council
has a responsibility to ensure that issues that are important to the community and
“below the water line” make the public agenda at least periodically. This would
improve public understanding of how resources are being allocated and enable more
seamless tracking of performance across all issues. Many items reached Council
priority lists through community input, so their treatment and follow up with Council
representation matters.
Aircraft noise serves as a clear example. Thanks to community involvement, it has
appeared on the priorities workplan for several years (including 2025) yet the topic
has not had a staff report or appeared on a public agenda in over six years. The
City’s efforts lack measurable goals, its recent strategy was developed without
considering other viewpoints or objectives, it has no commission or standing
committee oversight, and obtaining updates or answers to questions has been
extremely difficult. If an issue that has been “above the water line” exhibits this level
of limited attention, it is highly concerning that it could be further submerged. The
current state of aircraft noise is unclear: last year’s priorities were grouped into Group
1 or Group 2 visibility, except for 10 items explicitly set aside by staff. I could not find
aircraft noise – previously ranked on the 2025 Public Safety, Wellness and Belonging
objectives list – in either Group 1, Group 2, or among the ten issues set aside. As a
side note, in your discussions on January 24 some climate issues were qualified as
falling under the City’s “public health mantle;” it should be noted that SFO big-jet
particulate matter is possibly much more immediately serious to Palo Alto.
Frankly, the title of above or below the water line is not the core issue. What matters
is clarity on how any issue is handled from year to year and the ability to track results
and performance. Some issues are inherently more complex and long running,
involving multiple departments (e.g., aircraft noise includes a role for the City
Attorney’s office) and intergovernmental concerns. Pre-COVID, it was managed by an
Assistant City Manager and overseen by Policy & Services. In 2020 it was assigned
to Public Works, now often confused with Palo Alto Airport issues. Community
outreach and communications went dark after this unannounced and unexplained
shift. Potentially labeling it now as a City Council “value” only adds confusion. I
suggest using City Council's values as tests instead; Are issues managed with
transparency, innovation, community well-being and so forth? To track "below the
water line” issues more effectively, labels organized by department or line of
responsibility - and better threaded with the budget process - would be more
appropriate.
It is not surprising that the City finds itself in its current fiscal situation when neither
our elected representatives nor the public has a systematic way to track performance,
results, or transparency for the bulk of the CIty’s portfolio. As long as Council focuses
year-to-year only on trailing priorities or new ideas, it tends to expand the already
expansive portfolio further. There are many ways to approach the whole picture with
more disciplined practices. I hope the Government Efficiency priority (now “above the
water line” this year) will provide an opportunity to address these concerns.
Best regards,
Jennifer
March 9, 2026 www.cityofpaloalto.org
2026 City Council Values, Priority Objectives, Ad Hocs, and Workplans
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February 23, 2026
Recommended Council Action
Recommended Actions:
•Council approval of Council Values (as recommended by Policy & Services Committee)
•Council approval of 2026 Priority Objectives
•Council approval of Ad Hoc Purpose Statements and Committee Workplans
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February 23, 2026
REVISED Council Values
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1.Vibrant Community. Cultivate a dynamic community by fostering retail vibrancy, economic
development, engaging public spaces, and a high quality of life for all.
2.Fiscal Responsibility. Exercise disciplined financial management to ensure city revenues and expenses
remain balanced and sustainable, and are fiscally strategic and responsible.
3.Accountable Governance. Earn public trust through transparent leadership, inclusive engagement,
and open communication.
4.Strategic Innovation. As the birthplace of Silicon Valley, embrace innovation in the public and private
sectors to optimize efficiency and outcomes.
5.Equity and Shared Prosperity. Center equity in every decision, and advance housing, workforce, and
social policies that promote inclusion, socioeconomic diversity, and opportunity.
6.Climate Leadership and Environmental Stewardship. Lead with urgency on climate action and
adaptation, sustainability, and environmental protection for current and future generations.
7.Community Well-Being & Belonging. Foster a safe, healthy, and welcoming community where
everyone belongs and can thrive physically, mentally, and socially.
2026 Council Priorities & Objectives
(42 Group 1 Objectives)
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Achieve Near-Term Priority
Housing Milestones
15 priorities
Enhance Business Vibrancy
5 priorities
Cubberley Acquisition and
Renovation Funding
2 priorities
Government Efficiency
8 priorities
Council Values
12 priorities
February 23, 2026
Ad Hoc Purpose Statements and Committee Workplans
•Ad Hoc purpose statements reflect their intended
focus for the calendar year
•Standing committee workplans reflect annual
agenda items and current referrals from Council
•As work progresses on the 2026 Objectives, these
committees will be used for review and feedback as
appropriate to ensure continued progress
•Council may discuss and identify any adjustments to
the Committee Objectives and Standing Committee
Workplans including updates on the status of
Council referrals
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Policy & Services Committee 2026 Workplan
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January
•Nonprofit Workplan item
•Establish a frequency for joint City Council meetings or Policy & Services
meeting with Boards and Commissions, Youth Council, and meetings
with Boards and Commissions Chairs (referral)
February
•Update City Council Values & Consider Renaming them (referral)
•SB 707 Brown Act Updates
•Seismic Ordinance Follow up discussion
March
•Nonprofit Partnership Phase I Improvements
•Policy Tool Options to Encourage Multi-Family Development in Mixed-
Use Districts Auditor Qrtly Report
•Audit: Utilities Reserves
April
•Local Residential Rental Market Data & Rent Stabilization Program
•First-year Rental Registry Program Data Report
•Legislative Update
•Fair Chance in Housing Ordinance
•Incentives at Strategic Locations to Shift the Economic Benefit of
Redevelopment from Commercial Toward Home Building
•Auditor Reports: Junior Museum and Zoo & Auditor Report: Annual
Follow-up on Audit Recommendations
May
•Potential New Procedure for Councilmembers to Make Referrals to Staff
Besides Colleagues’ Memo (referral)
•Auditor Reports: Public Safety Overtime, Auditor Risk Assessment,
Quarterly Audit Status Report, Auditor Task Orders
June
•Review of Proposed Amendments to Seismic Risk Mitigation Ordinance
•Anti-rent Gouging Analysis
•Continuing items from April or May
July No meeting; Council break
August
•Tentative: Auditor Report
•Legislative Update (State and Federal)
September
•Tentative: Auditor Report
•Review draft RFI/P to issue solicitation for the development of 218
affordable or workforce housing units on City -owned surface parking
lots. (HE 1.4A)
October
•Tentative: Auditor Report
November
•Legislative Agenda and Guidelines; and Brief Legislative update
•Tentative: Nonprofit workplan
•2027 City Council Priorities Discussion (focused on process, the retreat
and submitted ideas)
December
•Tentative: Auditor report
•No Procedures & Protocols Handbook Discussion (this is an ‘off’ year)
•Informational: Report out on Status of Committee Referrals
Finance Committee 2026 Workplan
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January
•Update and Adoption of the Investment Policy
•Mayor appoints Committee and designates Chair
February – No Meeting
March
•Utilities Advisory Commission Rate Forecasts and Five -
Year Financial Plans: Water, Wastewater Collection
•Storm Water Management Fee
April
•Utilities Advisory Commission Rate Forecasts and Five -
Year Financial Plans: Gas, Electric.
•Planning & Development Services - Electrification State
caps & fee subsidies
•City Fee Updates (various)
•Grid Mod Financing (Tentative)
May
•Annual Budget Review: Operating and Five-year Capital
Improvement Plan
•Alternative meeting times (9:00am – 5:00pm) May
5 and May 6
•Including Nonprofit Partnership Workplan Phase I
funding
June
•Third Quarter Fiscal Year 2026 Financial Report
July- No Meeting
August
•Grid Modernization financing
September
•Accept California Public Employees’ Retirement System (CalPERS)
Pension Annual Valuation. Reports as of June 30, 2025.
•Retiree Benefit Policy – review and update, if necessary.
October
November
•Informational: Report out on Status of Committee Referrals
•Discussion and Recommendation to the City Council to Accept
the Macias Gini & O'Connell's Audit of the City of Palo Alto's
Financial Statements as of June 30, 2026 and Management
Letter
•Discussion and Recommendation to Approve the Fiscal Year (FY)
2026 Annual Comprehensive Financial Report (ACFR) and
Approve Budget Amendments in Various Funds
December
•Review and Forward the FY 2028 - FY 2037 Long Range Financial
Forecast
•First Quarter Fiscal Year 2027 Financial Report
•Preliminary Utility Rate Forecast Review
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February 23, 2026
Recommended Council Action
Recommended Actions:
•Council approval of Council Values (as recommended by Policy & Services Committee)
•Council approval of 2026 Priority Objectives
•Council approval of Ad Hoc Purpose Statements and Committee Workplans
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Lupita Alamos
Assistant to the City Manager
Kiely Nose
Assistant City Manager