HomeMy WebLinkAboutStaff Report 2604-6268CITY OF PALO ALTO
CITY COUNCIL
Special Meeting
Monday, April 20, 2026
Council Chambers & Hybrid
5:30 PM
Agenda Item
AA1.Amend the FY 2026 Budget Appropriation for the Capital Improvement Fund to
Establish the Embarcadero Road Improvement Project, Phase 1, and Authorize the City
Manager or Their Designee to Award a Construction Contract with a Qualified
Contractor for the Embarcadero Road Improvement Project, Phase 1; CEQA Status –
Exempt under CEQA Guidelines Section 15301(c) New Item Added, Supplemental At-
Places Report Added, Public Comment
9
8
3
5
City Council
Staff Report
From: City Clerk
Report Type: CONSENT CALENDAR
Lead Department: Public Works
Meeting Date: April 20, 2026
Report #:2604-6268
TITLE
Amend the FY 2026 Budget Appropriation for the Capital Improvement Fund to Establish the
Embarcadero Road Improvement Project, Phase 1, and Authorize the City Manager or Their
Designee to Award a Construction Contract with a Qualified Contractor for the Embarcadero
Road Improvement Project, Phase 1; CEQA Status – Exempt under CEQA Guidelines Section
15301(c)
This report will be published as an at-places memo on Monday, April 20, 2026.
Item No. AA1. Page 1 of 3
9
8
3
6
City Council
Supplemental At-Places Report
From: Brad Eggleston, Director Public Works/City Engineer
Meeting Date: April 20, 2026
Item Number: AA1
Report #:2604-6269
TITLE
Amend the FY 2026 Budget Appropriation for the Capital Improvement Fund to Establish the
Embarcadero Road Improvement Project, and Authorize the City Manager or Their Designee to
Award a Construction Contract with a Qualified Contractor for the Embarcadero Road
Improvement Project, Phase 1; CEQA Status – Exempt under CEQA Guidelines Section 15301(c)
RECOMMENDATION
Staff recommends that the City Council:
1. Authorize the City Manager or their designee to execute a construction contract with a
qualified contractor to implement the Embarcadero Road Improvement Project, Phase
1; and
2. Authorize the City Manager or their designee to negotiate and execute change orders
for related additional but unforeseen work that may develop during the project, the
total value of which shall not exceed 10% of the construction contract value; and
3. Amend the Fiscal Year Budget Appropriation for the Capital Improvement Fund
(requires a 2/3 vote) by:
a. Establishing the Embarcadero Road Improvements (Alma Street to Emerson
Avenue) Project (TR-26000) in the amount of $2,886,000;
b. Establishing revenue from Other Agencies (2016 Measure B Local Streets and
Roads for Congestion Relief Projects) in the amount of $2,886,000 in TR-26000;
c. Reducing expenditures in the Bicycle and Pedestrian Transportation Plan
Implementation Project (PL-04010) by $877,000; and
d. Reducing transfers from the General Fund of Measure K business tax revenue to
PL-04010 by $877,000.
Item No. AA1. Page 2 of 3
9
8
3
6
BACKGROUND/ANALYSIS
1 The agenda item was continued to Council’s May 11, 2026 meeting.
However, at the meeting, Councilmembers supported providing approvals for staff to proceed
with awarding the construction contract for the Embarcadero Road Improvement Project (TR-
26000) in order to complete the project prior to school starting in August 2026.
The Embarcadero Road Improvement Project, Phase 1 will reduce conflicts between vehicles
and pedestrians and bicyclists through several improvements on the north side of Embarcadero
Road. (The south side of Embarcadero Road will be addressed in Phase 2 of the Project.) The
Phase 1 improvements include squaring up the corners, eliminating the slip lane at Kingsley
Avenue on the north side of Embarcadero Road, and widening the existing sidewalk path on
Embarcadero Road from Emerson to High Street. The project will reconfigure High Street and
Emerson Street intersections to reduce conflicts, reduce the speed of turning vehicles, and
increase visibility for pedestrians and bicyclists. Staff recommends moving forward with
improvements on the north side of Embarcadero Road (Phase 1) at this time to ensure
completion of the project during summer 2026. The project will improve pedestrian and
bicyclist conditions and is needed whether or not Council decides to temporarily close Churchill
Avenue. The cost estimate for Embarcadero Road Improvement Project is approximately $3.2
million. However, the north side improvements (Phase 1) are estimated to cost approximately
$1.7 million. The remaining funding in Capital Improvement Program Project TR-26000 will be
used to construct the south side of the project (Phase 2) at a later date.
Staff recommends authorizing the City Manager to negotiate and execute a construction
contract with a responsible contractor selected by Public Works. Palo Alto Municipal Code
Sections 2.30.210 and 2.30.360 authorize the City Manager to award emergency contracts
without following the standard contract solicitation and award procedures. The City Manager
expects to provide additional reports to the Council on the project as it progresses.
FISCAL/RESOURCE IMPACT
To fund these improvements, staff recommends creating a new capital improvement project,
the Embarcadero Road Improvements Project (TR-26000), in the Capital Improvement Fund in
the amount of $2,886,000, offset by Measure B Local Streets and Roads (LSR) revenue in the
same amount. An additional $260,000 of appropriation and LSR revenue will be requested as
part of the Fiscal Year 2027 Amendment to Proposed Capital Budget. The Embarcadero Road
Improvement Project was previously budgeted in the Bicycle and Pedestrian Transportation
Plan Implementation Project (PL-04010) in FY 2026, but staff recommends creating the new
project for improved transparency and tracking. Expenditures and offsetting Measure K
1 City Council, April 15, 2026, Agenda Item #1 SR #2604-6209
Item No. AA1. Page 3 of 3
9
8
3
6
business tax revenues in the amount of $877,000 are recommended to be reduced in PL-04010
since they will no longer be used for Embarcadero Road improvements; they will instead be
applied towards Quiet Zone improvements in future years.
STAKEHOLDER ENGAGEMENT
Extensive community engagement occurred during the earlier concept planning and
engineering design phases of this project. Additional outreach will be conducted before and
during the construction phase to keep the community informed throughout the process,
including flyers sent to adjacent residences and business, and notices posted online on
Nextdoor.
ENVIRONMENTAL REVIEW
Given the nature of the proposed improvements for the project, the project qualifies for a Class
1 Categorical Exemption under California Environmental Quality Act (CEQA) Guidelines Section
15301. The Class 1 exemption covers minor alterations to existing facilities so long as they
involve no negligible expansion of use.
APPROVED BY:
From:herb
To:Council, City; Clerk, City
Subject:August 20, 2026 City Council Meeting , Agenda Item #AA1: Embarcadero Road Improvement Project, Phase I
Date:Friday, April 17, 2026 5:25:44 PM
CAUTION: This email originated from outside of the organization. Be cautiousof opening attachments and clicking on links.
AUGUST 20, 2026 CITY COUNCIL MEETING
AGENDA ITEM #AA1: EMBARCADERO ROAD IMPROVEMENT PROJECT, PHASE 1
I urge you to remove this item from the meeting's ConsentCalendar, and to direct staff to either (a) include the projectin your budget deliberations that will occur shortly for thefiscal year starting July 1, 2026, or (b) if starting beforeJuly 1, 2026 is justified, then include the proposed projectand staff report in the agenda packet for the next City Councilregular meeting.
This item was added to the meeting's agenda after thepublishing deadline for the public notice advertisements of themeeting's agenda.
The staff report for this agenda item will not be availableuntil the meeting.
The project has been pending for several years.
No harm will occur if you wait until the public and the presshave had an adequate time to review the staff report before youare asked to act, instead of you acting on an item that was notincluded in the public notice of meeting's agenda, and actingon a staff report that will not be available until the meetingoccurs.
Thank you for your consideration of these comments.
Herb Borock