HomeMy WebLinkAbout2026-05-04 City Council Agenda PacketCITY COUNCIL
Regular Meeting
Monday, May 04, 2026
Council Chambers & Hybrid
5:30 PM
Time Estimates Updated
Palo Alto City Council meetings will be held as “hybrid” meetings with the option to attend by
teleconference or in person. Information on how the public may observe and participate in the
meeting is located at the end of the agenda. The meeting will be broadcast on Cable TV Channel
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VIRTUAL PARTICIPATION CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/362027238)
Meeting ID: 362 027 238 Phone:1(669)900-6833
PUBLIC COMMENTS
General Public Comment for items not on the agenda will be accepted in person for up to three
minutes or an amount of time determined by the Chair. General public comment will be heard
for 30 minutes. Additional public comments, if any, will be heard at the end of the agenda.
Public comments for agendized items will be accepted both in person and via Zoom for up to
three minutes or an amount of time determined by the Chair. Requests to speak will be taken
until 5 minutes after the staff’s presentation or as determined by the Chair. Written public
comments can be submitted in advance to city.council@PaloAlto.gov and will be provided to
the Council and available for inspection on the City’s website. Please clearly indicate which
agenda item you are referencing in your subject line. Multiple individuals who wish to speak on
the same item may designate a spokesperson. Spokespersons must be representing five or more
verified individuals who are present either in person or via zoom. Spokespeople will be allowed
up to 10 minutes, at the discretion of the presiding officer. Speaking time may be reduced if the
presiding officer reduces the speaking time for individual speakers.
PowerPoints, videos, or other media to be presented during public comment are accepted only
by email to city.clerk@PaloAlto.gov at least 24 hours prior to the meeting. Once received, the
Clerk will have them shared at public comment for the specified item. To uphold strong
cybersecurity management practices, USB’s or other physical electronic storage devices are not
accepted. Signs and symbolic materials less than 2 feet by 3 feet are permitted provided that:
(1) sticks, posts, poles or similar/other type of handle objects are strictly prohibited; (2) the
items do not create a facility, fire, or safety hazard; and (3) persons with such items remain
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view or passage of other attendees, or otherwise disturb the business of the meeting.
TIME ESTIMATES
Listed times are estimates only and are subject to change at any time, including while the
meeting is in progress. The Council reserves the right to use more or less time on any item, to
change the order of items and/or to continue items to another meeting. Particular items may be
heard before or after the time estimated on the agenda. This may occur in order to best manage
the time at a meeting or to adapt to the participation of the public.
1 May 04, 2026
Materials submitted after distribution of the agenda packet are available for public inspection at www.paloalto.gov/agendas.
CALL TO ORDER
SPECIAL ORDERS OF THE DAY (5:30 - 5:35 PM)
1.Proclamation of May 2026 as Affordable Housing Month. CEQA Status: Not a project.
CLOSED SESSION (5:35 - 7:05 PM)
2.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
3.CONFERENCE WITH REAL PROPERTY NEGOTIATORS
Authority: Government Code Section 54956.8.
Property: 4000 Middlefield Road, Palo Alto (Informally known as the Cubberley Site)
Negotiating Party: Palo Alto Unified School District City Negotiators:
(Ed Shikada, Kiely Nose, Kristen O'Kane, Lauren Lai)
Subject of Negotiations: Purchase, Exchange, and/or Lease, Price and Terms of Payment
AGENDA CHANGES, ADDITIONS AND DELETIONS
PUBLIC COMMENT (7:05 - 7:35 PM)
Members of the public may speak in-person ONLY to any item NOT on the agenda. 1-3 minutes depending on number of
speakers. Public Comment is limited to 30 minutes. Additional public comments, if any, will be heard at the end of the agenda.
COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS (7:35 - 7:45 PM)
Members of the public may not speak to the item(s).
STUDY SESSION (7:45 - 8:45 PM)
4.City Manager Transmittal of the Fiscal Year 2027 Proposed Operating and Capital Budgets
CONSENT CALENDAR (8:45 - 8:50 PM)
Items will be voted in one motion unless removed from the calendar by three Council Members.
2 May 04, 2026
Materials submitted after distribution of the agenda packet are available for public inspection at www.paloalto.gov/agendas.
5.Approval of Minutes from April 13, April 15, and April 20, 2026 Meeting
6.Adopt a Resolution Making Required Findings in Support of the City’s Application for FY
2026/27 Transportation Development Act (TDA) Article 3 Funds in the Amount of
$326,590 for the South Palo Alto Bikeways Demonstration Project and Authorize Staff to
Submit the Application; CEQA status - not a project.
7.Approval of Contract Amendment Number 1 to Contract Number S23187797 with
Stephen Galloway Studio, LLC to Extend the Contract Term Through April 1, 2029, for
Concept Design Development, Fabrication and Delivery to the Site and Placement of
Artwork; CEQA Status – categorically exempt.
8.Approve Supplement No. 2 to Master Funding Agreement with the Metropolitan
Transportation Commission for the City to receive an Amount Not to Exceed $1 Million
for the Palo Alto Transit Center Quarry Road Connection; CEQA status - statutorily
exempt.
9.Approval of Professional Services Contract Number C26196239 with Triple HS, INC (dba
H. T. Harvey & Associates), in an Amount Not to Exceed of $399,239 Over a 5-year Term
for Annual Wetland Mitigation Monitoring, Reporting, and Improvements, and Approval
of a Budget Amendment in the Capital Improvement Fund; CEQA Status - This project is
part of the Mitigation Monitoring and Reporting Program approved on February 3, 2014
as part of the Golf Course Reconfiguration EIR.
10.Approval of Contract Amendment No. 3 to Contract Number C21179340 with Baker Tilly
US, LLP to Extend Term to June 30, 2028 with no increase to the not to exceed amount
based on CAO Committee Recommendation; CEQA Status – Not a Project.
11.Approval of Second Amendment to the Lease Between the City of Palo Alto and
Community Skating, Inc. for the Tennis Facility at 3005 Middlefield Road, Extending the
Term to January 1, 2040; CEQA Status – Categorically Exempt
12.SECOND READING: Ordinance of the Council of the City of Palo Alto Amending Chapter
9.73 (City Policy Against Arbitrary Discrimination) of Title 9 (Public Peace, Morals and
Safety) of the Palo Alto Municipal Code to Add Sections 9.73.050 (Local CEDAW
Principles) and 9.73.060 (Private Right of Action) and Amend Associated Sections (FIRST
READING: March 23, 2026, PASSED: 7-0)
13.SECOND READING: Ordinance of the Council of the City of Palo Alto Creating New PAMC
Chapter 9.05 (Entertainment Zones) and Establishing an Entertainment Zone on a
Portion of California Avenue (FIRST READING: April 20, 2026; PASSED: 7-0)
3 May 04, 2026
Materials submitted after distribution of the agenda packet are available for public inspection at www.paloalto.gov/agendas.
CITY MANAGER COMMENTS
BREAK (15 MINUTES)
ACTION ITEMS (Item 14: 9:05 - 10:20 PM, Item 15: 10:20 - 10:45 PM)
Include: Report of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Report of Officials, Unfinished
Business and Council Matters.
14.Receive Update and Provide Direction to Staff on the Implementation of Senate Bill 79
(SB 79) and Work Related to the Downtown Housing Plan. CEQA Status: Exempt Under
CEQA Guidelines Section 15262.
15.PUBLIC HEARING: Report on City Vacancies and Recruitment Efforts, Pursuant to
Assembly Bill 2561; CEQA Status – Not a Project.
ADJOURNMENT
INFORMATION REPORTS
Information reports are provided for informational purposes only to the Council and the public but are not listed for action or
discussion during this meeting’s agenda.
A.Q4 CY 2025 Sales Tax Digest (October - December 2025)
B.Electric Grid Modernization FY 2026 Update; CEQA Status – Not a Project
C.Update on Flock Automated License Plate Recognition Technology
OTHER INFORMATION
Standing Committee Meetings this week
Finance Committee May 5, 2026
Finance Committee May 6, 2026
Public Comment Letters
Schedule of Meetings
4 May 04, 2026
Materials submitted after distribution of the agenda packet are available for public inspection at www.paloalto.gov/agendas.
PUBLIC COMMENT INSTRUCTIONS
Members of the Public may provide public comments to teleconference meetings via email,
teleconference, or by phone.
1.Written public comments may be submitted by email to city.council@PaloAlto.gov.
2.For in person public comments please complete a speaker request card located on the
table at the entrance to the Council Chambers and deliver it to the Clerk prior to
discussion of the item.
3.Spoken public comments for agendized items using a computer or smart phone will be
accepted through the teleconference meeting. To address the Council, click on the link
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CLICK HERE TO JOIN Meeting ID: 362-027-238 Phone: 1-669-900-6833
Americans with Disability Act (ADA) It is the policy of the City of Palo Alto to offer its public
programs, services and meetings in a manner that is readily accessible to all. Persons with
disabilities who require materials in an appropriate alternative format or who require auxiliary
aids to access City meetings, programs, or services may contact the City’s ADA Coordinator at
(650) 329-2550 (voice) or by emailing ada@PaloAlto.gov. Requests for assistance or
accommodations must be submitted at least 24 hours in advance of the meeting, program, or
service.
5 May 04, 2026
Materials submitted after distribution of the agenda packet are available for public inspection at www.paloalto.gov/agendas.
California Government Code §84308, commonly referred to as the "Levine Act," prohibits an
elected official of a local government agency from participating in a proceeding involving a
license, permit, or other entitlement for use if the official received a campaign contribution
exceeding $500 from a party or participant, including their agents, to the proceeding within the
last 12 months. A “license, permit, or other entitlement for use” includes most land use and
planning approvals and the approval of contracts that are not subject to lowest responsible bid
procedures and have a value over $50,000. A “party” is a person who files an application for, or
is the subject of, a proceeding involving a license, permit, or other entitlement for use. A
“participant” is a person who actively supports or opposes a particular decision in a proceeding
involving a license, permit, or other entitlement for use, and has a financial interest in the
decision. The Levine Act incorporates the definition of “financial interest” in the Political Reform
Act, which encompasses interests in business entities, real property, sources of income, sources
of gifts, and personal finances that may be affected by the Council’s actions. If you qualify as a
“party” or “participant” to a proceeding, and you have made a campaign contribution to a
Council Member exceeding $500 made within the last 12 months, you must disclose the
campaign contribution before making your comments.
6 May 04, 2026
Materials submitted after distribution of the agenda packet are available for public inspection at www.paloalto.gov/agendas.
CITY COUNCIL
Staff Report
From: City Manager
Report Type: SPECIAL ORDERS OF THE DAY
Lead Department: Planning and Development Services
Meeting Date: May 4, 2026
Report #: 2603-6083
TITLE
Proclamation of May 2026 as Affordable Housing Month. CEQA Status: Not a project.
RECOMMENDATION
Staff recommend that the City Council proclaim the month of May as Affordable Housing
Month in the City of Palo Alto.
BACKGROUND
Affordable Housing Month is a national observance in the United States that is typically held
in the month of May each year. The event was established to raise awareness about the need
for affordable housing and to recognize the important role that affordable housing plays in
building strong, sustainable, and inclusive communities.
Affordable Housing Month typically includes a variety of activities and events, such as
workshops, rallies, and community outreach efforts. The focus of these events is to raise
awareness about the need for affordable housing, educate the public about the benefits of
affordable housing, and advocate for policies and programs that support the development of
more affordable housing options.
Silicon Valley at Home (SV@Home) has shared a list of events they are hosting in Santa Clara as
part of Affordable Housing Month, including a kickoff networking event on May 4, 2026, that
brings together local officials and housing advocates, followed by a Women in Housing Brunch
on May 8, 2026, and fair housing policy discussion on May 13, 2026. A full list of events can be
found on the SV@Home website: https://siliconvalleyathome.org/affordable-housing-month/.
ATTACHMENTS
Attachment A: Affordable Housing Month Proclamation 2026
APPROVED BY:
Jonathan Lait, Planning and Development Services Director
Item 1
Item 1 Staff Report
Item 1: Staff Report Pg. 1 Packet Pg. 7 of 172
Proclamation
AFFORDABLE HOUSING MONTH
WHEREAS, an affordable place to call home provides everyone an opportunity to thrive, making our
community stronger, healthier, more inclusive, and more prosperous; and,
WHEREAS, ensuring that people of all income levels have access to a home they can afford helps build
strong and resilient communities; and,
WHEREAS, affordable housing is a basic human right, and yet, each year, thousands of Silicon Valley
Families and individuals struggle to find an affordable home in one of the most expensive housing markets in the
nation; and,
WHEREAS, according to the most recent Census data, 23% of renter households in the City of Palo Alto are
cost-burdened, spending more than 30% of their income on housing, and another 19% are severely cost-burdened,
spending more than 50%; and,
WHEREAS, the Santa Clara County Community Plan to End Homelessness emphasizes expanding
homelessness prevention and housing programs as a critical strategy to address our region’s housing crisis and,
WHEREAS, the City of Palo Alto is actively working to reduce barriers to the production and preservation
of affordable housing by collaborating with a network of organizations to deliver essential services, strengthen
tenant protections, support innovative housing solutions, and advance efforts to end homelessness, and,
WHEREAS, more than 10,000 affordable homes are in the pipeline across Santa Clara County, and the City
of Palo Alto remains committed to partnering with local, regional, and state agencies to secure funding to support
the construction and preservation of high-quality, affordable homes that will serve as lasting community assets
for generations to come, and,
WHEREAS, partnering organizations in Santa Clara County are dedicated to furthering safe, stable,
permanent, and affordable housing to all members of the community and are collaboratively working to bring the
need for affordable housing to the forefront of discussion in our region; and,
WHEREAS, these organizations have partnered with local agencies and community members to organize
Affordable Housing Month to encourage the sharing of best practices, opportunities, and solutions to provide
affordable housing for all; and,
Item 1
Attachment A - Affordable
Housing Month
Proclamation
Item 1: Staff Report Pg. 2 Packet Pg. 8 of 172
WHEREAS, the City leverages state and federal resources, including the Community Development Block
Grant (CDBG), Permanent Local Housing Allocation (PLHA) and Local Housing Trust Fund (LHTF) programs,
to support affordable housing development, housing stability and essential services for zero-low-and moderate-
income residents; and,
WHEREAS, the City has implemented meaningful housing actions by identifying affordable housing
redevelopment opportunities on City parking lots to be developed for affordable housing, creating a permanent
source of affordable housing funding by dedicating a portion of the business tax revenue for affordable housing,
investing $57 million in affordable housing since 2018, crafting additional renter protections, and continued
support of fair housing services; and,
WHEREAS, the City has implemented meaningful actions to help those experiencing homelessness in Palo
Alto through making permanent its safe parking ordinance, expanding RV safe parking, piloting an outreach
worker program, providing an overnight warming location, and providing funding and partnering to build an
interim housing shelter on City-owned land; and,
WHEREAS, the City Council adopted the 6th Cycle Housing Element that outlines how 6,086 new housing
units can be accommodated within Palo Alto by 2031, and includes implementation programs to increase the
number affordable housing units.
THEREFORE, I, Vicki Veenker, Mayor of the City of Palo Alto, on behalf of the City Council, do hereby
proclaim the Month of May as Affordable Housing Month, inviting our residents to support affordable housing
solutions and to recognize the efforts of the City of Palo Alto and its dedicated community partners who seek to
improve access to affordable housing opportunities in the City of Palo Alto and our neighboring communities.
Presented: May 4, 2026
Vicki Veenker, Mayor
Item 1
Attachment A - Affordable
Housing Month
Proclamation
Item 1: Staff Report Pg. 3 Packet Pg. 9 of 172
City Council
Staff Report
From: City Manager
Report Type: STUDY SESSION
Lead Department: Administrative Services
Meeting Date: May 4, 2026
Report #:2604-6307
TITLE
City Manager Transmittal of the Fiscal Year 2027 Proposed Operating and Capital Budgets
Will be released on April 24, 2026 on the City’s Budget webpage:
https://www.paloalto.gov/Departments/Administrative-Services/City-Budget
APPROVED BY:
Lauren Lai, Administrative Services Director
Item 4
Item 4 Staff Report
Item 4: Staff Report Pg. 1 Packet Pg. 10 of 172
City Council
Staff Report
Report Type: CONSENT CALENDAR
Lead Department: City Clerk
Meeting Date: May 4, 2026
Report #:2604-6261
TITLE
Approval of Minutes from April 13, April 15, and April 20, 2026 Meeting
RECOMMENDATION
Staff recommends that the City Council review and approve the minutes.
ATTACHMENTS
Attachment A: April 13, 2026 Draft Action Minutes
Attachment B: April 15, 2026 Draft Action Minutes
Attachment C: April 20, 2026 Draft Action Minutes
APPROVED BY:
Mahealani Ah Yun, City Clerk
Item 5
Item 5 Staff Report
Item 5: Staff Report Pg. 1 Packet Pg. 11 of 172
CITY COUNCIL
DRAFT ACTION MINUTES
Page 1 of 6
Regular Meeting
April 13, 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
Councilmember Lauing Arrived at 8:36 P.M.
Present Remotely:
Absent:
Boards, Commissions, and Committees Appointments
1. Appointment of Candidates to the Human Relations Commission (HRC), Planning &
Transportation Commission (PTC), and Utilities Advisory Commission (UAC); CEQA Status
- Not a Project
Human Relations Commission
First Round Voting for One (1) partial-term vacancy (seat 4) on the Human Relations
Commission ending October 31, 2026
Elle Bob: Lauing, Reckdahl
Rona Hu: Burt
Raizel Rosenberg: Lu, Lythcott-Haims, Stone, Veenker
Candidate Raizel Rosenberg receiving four votes is appointed to the partial-term expiring
October 31, 2026 (seat 4).
Planning & Transportation Commission
First Round Voting for Two (2) full term vacancies (seats 1, 4) on the Planning & Transportation
Commission ending March 31, 2030
Daniel Phillip Benas:
Martin Blanchet:
Bryna Chang: Burt, Lauing, Lu, Lythcott-Haims, Reckdahl, Stone, Veenker
Item 5
Attachment A - April 13,
2026 Draft Action Minutes
Item 5: Staff Report Pg. 2 Packet Pg. 12 of 172
DRAFT ACTION MINUTES
Page 2 of 6
City Council Meeting
Draft Action Minutes: 04/13/2026
Forest Olaf Peterson: Lu, Lythcott-Haims, Stone, Veenker
Tom Siegal: Burt, Lauing, Reckdahl
Jeff Watt:
Candidate Bryna Chang receiving seven votes is appointed to the full term expiring March 31,
2030 (seat 1).
Candidate Forest Olaf Peterson receiving four votes is appointed to the full term expiring
March 31, 2030 (seat 4).
Utilities Advisory Commission
First Round Voting for Three (3) full term vacancies (seats 3, 5, 6) on the Utilities Advisory
Commission ending March 31, 2029
Meagan Mauter: Burt, Lauing, Lu, Lythcott-Haims, Reckdahl, Stone, Veenker
Robert Phillips: Burt, Lauing, Lu, Lythcott-Haims, Reckdahl, Stone, Veenker
Greg Scharff: Lauing, Lythcott-Haims, Reckdahl, Stone, Veenker
Olgu Tanriverdi:
Julia Zeitlin: Burt, Lu
Candidate Meagan Mauter receiving seven votes is appointed to the full term expiring March
31, 2029 (seat 3).
Candidate Robert Phillips receiving seven votes is appointed to the full term expiring March
31, 2029 (seat 6).
Candidate Greg Scharff receiving five votes is appointed to the full term expiring March 31,
2029 (seat 5).
Special Orders of the Day
2. Proclamation Honoring National Animal Control Officer Appreciation Week April 12-18,
2026
NO ACTION
3. Proclamation Honoring National Public Safety Telecommunicators Week April 12-18,
2026
NO ACTION
Item 5
Attachment A - April 13,
2026 Draft Action Minutes
Item 5: Staff Report Pg. 3 Packet Pg. 13 of 172
DRAFT ACTION MINUTES
Page 3 of 6
City Council Meeting
Draft Action Minutes: 04/13/2026
Agenda Changes, Additions and Deletions
Public Comment
Council Member Questions, Comments and Announcements
Consent Calendar
MOTION: Councilmember Reckdahl moved, seconded by Councilmember Burt to approve
Agenda Item Numbers 4-7.
MOTION PASSED: 6-0-1, Lauing absent
4. Adoption of a Resolution Vacating an Easement at 700 Hansen Way; CEQA Status –
Exempt under Cal. Code Regs. Title 14, Section 15305
5. Approval of Amendment Number 3 to Contract C21178333 with Black & Veatch, Inc., to
increase the Contract Amount by $963,160 for a revised total not-to-exceed amount of
$4,146,109, and to Extend the Contract Term to December 31, 2028, for the Local
Advanced Water Purification System Project (WQ-19003); CEQA Status - Notice of
Determination Adopted November 18, 2019
6. Authorize the City Manager to Execute Amendment No. 1 to Eight Professional Services
Contracts for SAP On-Call Services: Contract C26193272A with 360S2G, C26193272B
with Sage Group Technologies Inc, C26193272C with Avertra Corp, C26193272D with
Amick Brown LLC, C26193272E with 2iSolutions Inc, C26193272F with the Peloton
Group, C26193272G with Phoenix Business Inc, C26193272H with EPI-USE America, to
Increase the Not-to-Exceed Amount by $2,000,000 and Extend the Term for One Year;
CEQA Status – Not a Project
7. Appointment of 2026 Emergency Standby Council
City Manager Comments
Ed Shikada, City Manager
Item 5
Attachment A - April 13,
2026 Draft Action Minutes
Item 5: Staff Report Pg. 4 Packet Pg. 14 of 172
DRAFT ACTION MINUTES
Page 4 of 6
City Council Meeting
Draft Action Minutes: 04/13/2026
Action Items
8. PUBLIC HEARING / QUASI-JUDICIAL. 3606 El Camino Real [24PLN-00162 & 25PLN-
00243]: Request for Approval of Applications for Major Architectural Review and Vesting
Tentative Map to Merge Seven Existing Parcels to Create a 113,907-Square-Foot Parcel
and to Construct a Seven-Story, Multi-Family Residential Housing Development Project
with 321 Units, Thirteen Percent of Which Would be Provided at a Rate Affordable to
Low Income. The Project is Proposed in Accordance with Builder’s Remedy (California
Government Code Section 65589.5(d)(5)). A Senate Bill 330 Pre-Application was Filed on
February 15, 2024. CEQA Status: Exempt Pursuant to Assembly Bill 130 (Public
Resources Code Section 21080.66).
MOTION: Councilmember Stone moved, seconded by Councilmember Reckdahl to:
1. Consider the project exempt from California Environmental Quality Act (CEQA) in
accordance with Assembly Bill (AB) 130 (Public Resources Code Section 21080.66); and
2. Approve the Major Architectural Review and Vesting Tentative Map applications based
on findings and subject to conditions of approval in the Draft Record of Land Use Action
(RLUA) in Attachment B with the following amendments:
a. Condition of Approval # 33: Replace Mediation with Mitigation
b. Condition of Approval # 67: LOGISTICS PLAN: A construction logistics plan shall
be provided addressing all impacts to the public including, at a minimum: work
hours, noticing of affected businesses, bus stop relocations, construction
signage, dust control, noise control, storm water pollution prevention, job
trailer, contractors' parking, truck routes, staging, concrete pours, crane lifts,
scaffolding, materials storage, pedestrian safety, safe routes to school and
mitigation of construction impacts on Matadero and Kendell Avenues, and
traffic control. All truck routes shall conform to the City of Palo Alto's Trucks and
Truck Route Ordinance, Chapter 10.48, and the route map. The logistics plan
shall be reviewed and approved by Public Works Department, who shall
consult with the City's Chief Transportation Official and the Director of
Planning and Development Services prior to approval. NOTE: Some items/tasks
on the logistics plan may require an encroachment permit.
c. Newly Added Condition of Approval: EASEMENT EXTENSION. The public access
easement along Matadero Avenue will extend to the building facade, taking into
account any architectural projections and as-built construction tolerances
MOTION PASSED: 6-0-1, Lauing absent
Item 5
Attachment A - April 13,
2026 Draft Action Minutes
Item 5: Staff Report Pg. 5 Packet Pg. 15 of 172
DRAFT ACTION MINUTES
Page 5 of 6
City Council Meeting
Draft Action Minutes: 04/13/2026
9. Approval of City Council Values (as Recommended by Policy & Services Committee),
2026 Objectives, Ad Hoc Purpose Statements, and Committee Workplans (Continued
from 3/9/2026 - On March 9, 2026, the Council Received Presentations and Public
Testimony; the Item Will be Continued to April 13 for further Council Deliberation and
Action - No Public Testimony Will be Heard on April 13.)
MOTION: Councilmember Lythcott-Haims moved, seconded by Councilmember Reckdahl to
approve the Ad Hoc Purpose Statements with the following changes and additions:
a. Cubberley Ad Hoc Committee description as stated below;
The Cubberley Ad Hoc will facilitate City Council review and approval of:
1) The Cubberley master plan process,
2) Financial vehicles for acquiring 7 acres from Palo Alto Unified School District
(PAUSD);
3) Ballot measure language;
4) Public/private funding partnerships;
5) Space allocation in the transition and long-term; and
6) Future operating model.
The Ad Hoc will also serve as the Council ambassador for engagement with the
community and build community support for development of a new community
center at the Cubberley site. Coordination with PAUSD on Cubberley will occur
through this committee rather than the City Schools Liaison Committee.
b. Conform the name of the Rail Safety Committee to Rail Safety;
c. Climate and Sustainability Committee to recommend to Council any revisions of the
2026-2027 workplan and future SCAPs; and
d. Discontinue the Valley Water Shoreline Funding Allocation Ad Hoc.
MOTION PASSED: 6-0-1, Lauing abstain
MOTION: Mayor Veenker moved, seconded by Councilmember Lu to approve Committee
Workplans for the Policy & Services Committee and Finance Committee.
MOTION PASSED: 7-0
10. Colleagues Memo on Mitigating Impacts of Property Aggregation in Residential Districts
MOTION: Councilmember Burt moved, seconded by Councilmember Lu to refer to staff a
review workplan priority for 2027 and make recommendations to the Council to address:
Item 5
Attachment A - April 13,
2026 Draft Action Minutes
Item 5: Staff Report Pg. 6 Packet Pg. 16 of 172
DRAFT ACTION MINUTES
Page 6 of 6
City Council Meeting
Draft Action Minutes: 04/13/2026
a. Home vacancies (aka Ghost homes),
b. Impacts on neighbors from construction regulations to reduce construction impacts in
neighborhoods – inclusive of circumstances in cases of property aggregation,
c. Increase education for applicants on their obligations,
d. Review the legality of requiring hang tags for security services that are regulated by the
state, and
e. Planning and Development Services Department to update training and policies on code
enforcement.
MOTION PASSED: 7-0
AMENDMENTS INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND
SECONDER
SUBSTITUTE MOTION: Vice Mayor Stone moved, seconded by Councilmember Reckdahl to
refer this back to the makers of this colleague’s memo to revise and bring back to City Council
by the end of the year.
SUBSTITUTE MOTION FAILED: 2-5, Burt, Lu, Lythcott-Haims, Lauing, Veenker no
Adjournment: The meeting was adjourned at 10:42 P.M.
ATTEST: APPROVED:
____________________ ____________________
City Clerk Mayor
NOTE: Action minutes are prepared in accordance with Palo Alto Municipal Code (PAMC)
2.04.160(a) and (b). Summary minutes (sense) are prepared in accordance with PAMC Section
2.04.160(c). Beginning in January 2018, in accordance with Ordinance No. 5423, the City Council
found action minutes and the video/audio recordings of Council proceedings to be the official
records of both Council and committee proceedings. These recordings are available on the
City’s website.
Item 5
Attachment A - April 13,
2026 Draft Action Minutes
Item 5: Staff Report Pg. 7 Packet Pg. 17 of 172
CITY COUNCIL
DRAFT ACTION MINUTES
Page 1 of 2
Special Meeting
April 15, 2026
The City Council of the City of Palo Alto met on this date in the Council Chambers and by virtual
teleconference at 6:00 P.M.
Present In Person: Burt, Lauing, Lu, Lythcott-Haims, Reckdahl, Stone, Veenker
Present Remotely:
Absent:
Call to Order
Agenda Changes, Additions and Deletions
Action Items
1. Expedited Evaluation of the Potential Temporary Closure of the Churchill Avenue Rail
Crossing, Determination of Next Steps, and CEQA Status – Statutorily and Categorically
Exempt.
NO ACTION - ITEM CONTINUED TO MAY 11, 2026 CITY COUNCIL MEETING
Adjournment: The meeting was adjourned at 10:18 P.M.
Item 5
Attachment B - April 15,
2026 Draft Action Minutes
Item 5: Staff Report Pg. 8 Packet Pg. 18 of 172
DRAFT ACTION MINUTES
Page 2 of 2
Sp. City Council Meeting
Draft Action Minutes: 04/15/2026
ATTEST: APPROVED:
____________________ ____________________
City Clerk Mayor
NOTE: Action minutes are prepared in accordance with Palo Alto Municipal Code (PAMC)
2.04.160(a) and (b). Summary minutes (sense) are prepared in accordance with PAMC Section
2.04.160(c). Beginning in January 2018, in accordance with Ordinance No. 5423, the City Council
found action minutes and the video/audio recordings of Council proceedings to be the official
records of both Council and committee proceedings. These recordings are available on the
City’s website.
Item 5
Attachment B - April 15,
2026 Draft Action Minutes
Item 5: Staff Report Pg. 9 Packet Pg. 19 of 172
CITY COUNCIL
DRAFT ACTION MINUTES
Page 1 of 5
Regular Meeting
April 20, 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:
Absent:
Special Orders of the Day
1. Proclamation Recognizing Earth Day and the Palo Alto Youth Climate Advisory Board
NO ACTION
2. Proclamation Recognizing National Crime Victims' Rights Week April 19-25, 2026
NO ACTION
Agenda Changes, Additions and Deletions
Public Comment
Council Member Questions, Comments and Announcements
Study Session
3. Discussion of the Draft 2026-2030 Santa Clara County Community Plan to End
Homelessness; CEQA Status—Not a project.
NO ACTION
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Attachment C - April 20,
2026 Draft Action Minutes
Item 5: Staff Report Pg. 10 Packet Pg. 20 of 172
DRAFT ACTION MINUTES
Page 2 of 5
City Council Meeting
Draft Action Minutes: 04/20/2026
4. 910 Webster Street [26PLN-00026]. Request for Council Prescreening to Rezone the
Subject Property from RM-20 to Planned Community/Planned Home Zoning and to
Allow Construction of 70 Residential Units in a Seven-Story Structure. CEQA Status: Not
a Project.
NO ACTION
Consent Calendar
MOTION: Councilmember Lauing moved, seconded by Councilmember Reckdahl to approve
Agenda Item Numbers 5-10, AA1.
MOTION PASSED: 7-0
5. Approval of Minutes from April 6, 2026 Meeting
6. Adopt a Resolution Authorizing the Director of Planning and Development Services to
Make Minor Modifications to the 2023-2031 Housing Element Site Inventory. CEQA
Status: The City Council adopted a Revised Addendum to the Comprehensive Plan Final
Environmental Impact Report on December 18, 2023, that, in conjunction with the
Comprehensive Plan Final EIR, fully analyzes the impacts of the 6th Cycle Housing
Element, including minor modifications to the site inventory.
7. Approval of Amendment Number 1 to Contract C23187554 with Vox Network Solutions
to Increase Compensation by $212,819 and to Extend the Term to June 30, 2027, for
Maintenance of the City’s Enterprise Phone System; CEQA Status – exempt under
section 15061(b)(3).
8. FIRST READ: Adopt an Entertainment Zone Ordinance to Establish an Entertainment
Zone on California Avenue as Recommended by the Economic Development Ad Hoc
Committee; CEQA status – Categorically Exempt.
9. Approval of Contract Amendment No. 3 to Contract S25190354 with Larratt Brothers
Plumbing Inc. in the Amount of $950,000, for a Revised Total Not to Exceed $1,445,000
and to Extend the Contract Term for One Additional Year ending July 21, 2027, for the
Residential Emergency Water Heater Replacement Pilot Program Within Electrification
Programs; CEQA Status – Not a Project.
10. 4075 El Camino Way [23PLN-00202]: Recommendation to Decline Adoption on Second
Reading of an Ordinance Adopting an Amendment to a Planned Community Ordinance
(PC-5116) to Allow for Modifications to an Existing 121-Unit Assisted Living and Memory
Care Facility. First Reading Adoption was on March 16, 2026. CEQA Status: Exempt from
Item 5
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2026 Draft Action Minutes
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DRAFT ACTION MINUTES
Page 3 of 5
City Council Meeting
Draft Action Minutes: 04/20/2026
the Provisions of the California Environmental Quality Act (CEQA) in Accordance with
CEQA Guidelines Section 15301 (Modifications to Existing Facilities).
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)
City Manager Comments
Kiely Nose, Assistant City Manager
Action Items
11. Quasi-Judicial: Adoption of a Resolution Documenting the City Council’s Consideration
and Decision on an Appeal of the Chief Building Official’s Order to Demolish the
Buildings Located at 531 Stanford Avenue.
MOTION: Vice Mayor Stone moved, seconded by Councilmember Lauing to adopt a resolution
denying the appeal and upholding the Chief Building Official's Order to Demolish the buildings
on the subject property based on findings and conditions set forth in Attachment A.
MOTION PASSED: 7-0
12. Adoption of Recommendations by the Policy & Services Committee Implementing
Changes to Meeting Procedures Related to Teleconferencing, Remote Public
Participation, Translation and Interpretation Assistance, and Expanded Public Outreach;
CEQA Status – Not a Project.
MOTION: Vice Mayor Stone moved, seconded by Councilmember Lythcott-Haims to:
1. Decline the use of expanded alternative teleconferencing for Boards, Commissions, and
Committees (BCCs),
2. Adopt a default practice for all Council, Council Committee, and Boards and
Commissions meetings to take in-person general public comment near the beginning of
the agenda and remote general public comment at the end of the agenda, with the
Chair retaining discretion to arrange public comment on the agenda according to the
needs of the body.
Item 5
Attachment C - April 20,
2026 Draft Action Minutes
Item 5: Staff Report Pg. 12 Packet Pg. 22 of 172
DRAFT ACTION MINUTES
Page 4 of 5
City Council Meeting
Draft Action Minutes: 04/20/2026
a. Refer the Policy and Services Committee to reevaluate of this general public
comment practice when Council Procedures & Protocols handbook is reviewed;
3. Approve the Two-Way Remote Public Access Disruption Policy (Attachment A),
4. Approve the following practices as reasonable assistance for third party translation and
interpretation services, and
a. Arrange a space for interpreters at the meeting location, upon written request to
the City Clerk at least 24 hours before the meeting,
b. Provide public speakers using interpretation extra time. Staff recommends
providing twice as much time for individuals using interpretation, or an amount
of time determined by the presiding officer,
c. Allow the public to use their own devices to access translation or interpretation
devices, and
d. Loan city devices to the public to access translation or interpretation services
upon written request to the City Clerk at least 24 hours before the meeting.
5. Direct the City Clerk to implement the following outreach practices:
a. Share information about agenda notification newsletters with community groups
and organizations such as neighborhood associations, non-English news media,
service organizations,
b. Post informational resources in the King’s Plaza and Council Chambers posting
board and other public-facing City facilities with QR codes linking to the Agendas
webpage, newsletter sign-up page, meeting participation guide, and translation
services webpage, and
c. Translate the Meeting Participation Guide into the two most commonly spoken
non-English languages as reported by the American Community Survey.
MOTION PASSED: 7-0
Adjournment: The meeting was adjourned at 10:54 P.M.
Item 5
Attachment C - April 20,
2026 Draft Action Minutes
Item 5: Staff Report Pg. 13 Packet Pg. 23 of 172
DRAFT ACTION MINUTES
Page 5 of 5
City Council Meeting
Draft Action Minutes: 04/20/2026
ATTEST: APPROVED:
____________________ ____________________
City Clerk Mayor
NOTE: Action minutes are prepared in accordance with Palo Alto Municipal Code (PAMC)
2.04.160(a) and (b). Summary minutes (sense) are prepared in accordance with PAMC Section
2.04.160(c). Beginning in January 2018, in accordance with Ordinance No. 5423, the City Council
found action minutes and the video/audio recordings of Council proceedings to be the official
records of both Council and committee proceedings. These recordings are available on the
City’s website.
Item 5
Attachment C - April 20,
2026 Draft Action Minutes
Item 5: Staff Report Pg. 14 Packet Pg. 24 of 172
City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Transportation
Meeting Date: May 4, 2026
Report #:2602-5919
TITLE
Adopt a Resolution Making Required Findings in Support of the City’s Application for FY
2026/27 Transportation Development Act (TDA) Article 3 Funds in the Amount of $326,590 for
the South Palo Alto Bikeways Demonstration Project and Authorize Staff to Submit the
Application; CEQA status - not a project.
RECOMMENDATION
Staff recommends that the City Council:
1. Adopt a Resolution making required findings in support of the City’s application for FY
2026/27 Transportation Development Act (TDA) Article 3 funds in the amount of $326,590
for the South Palo Alto Bikeways Demonstration Project (Attachment A); and
2. Authorize staff to submit the City’s TDA Article 3 request to Santa Clara County for inclusion
in the countywide coordinated claim to the Metropolitan Transportation Commission.
EXECUTIVE SUMMARY
The City is requesting a TDA Article 3 grant allocation of $326,590 in 2026 to support the South
Palo Alto Bikeways Demonstration Project, a quick-build pilot on East Meadow Drive and Fabian
Way that will install temporary protected and/or buffered bike lanes and visibility
enhancements at existing crossings. The project is intended to reduce conflicts between road
users by separating modes and improving visibility and safety, particularly during peak school
commute periods.
The City was awarded a federal Safe Streets for All Planning and Demonstration Grant for this
project in FY 2025. Due to construction cost increases, the City is requesting TDA Article 3 funds
to supplement the federal grant and support timely implementation of the demonstration
elements.
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BACKGROUND
1 which
included changes to East Meadow Drive, Fabian Way, and the PAUSD-owned Waverly Multi-Use
Path. On December 16, 2024, Council authorized acceptance of the federal Safe Streets for All
grant agreement in order to implement a quick-build pilot of the project on East Meadow Drive
and Fabain Way only.2 This federally funded demonstration project omits the PAUSD-owned
Waverley Multi-Use Path that was included in the original project concept, since the Waverley
segment is not quick-build and therefore not eligible for the funding source.3
ANALYSIS
4 will install a temporary striping plan and
upgraded bikeway treatments to improve bicyclist visibility and reduce conflicts between road
users along East Meadow Drive and Fabian Way. These two corridors represent key current and
1 City Council, August 9, 2021: Agenda Item #12: SR #12323,
https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=2277&dbid=0&repo=PaloAlto&searchid=b35d8295-
7e28-4de8-a095-cac393662577
2 City Council, December 16, 2024: Agenda Item #9: SR #2411-3763,
https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=6532&page=1&dbid=0&repo=PaloAlto
3 South Palo Alto Bikeways Project website:
https://www.paloalto.gov/Departments/Transportation/Transportation-Projects/South-Palo-Alto-Bikeways-
Project
4 South Palo Alto Bikeways Demonstration Project website:
https://www.paloalto.gov/Departments/Transportation/Transportation-Projects/South-Palo-Alto-Bikeways-
Demonstration-Project
Item 6
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Item 6: Staff Report Pg. 2 Packet Pg. 26 of 172
future routes for students traveling from housing areas within the San Antonio Road Area and
their respective schools.
Temporary protected and/or buffered bike lanes along East Meadow Drive between
Alma and Middlefield to separate road users, accommodate peak school commute
traffic, and improve bicyclists’ visibility and safety
Lane conversion to install temporary protected and/or buffered bike lanes along Fabian
Way to separate road users, provide an improved school commute route, and improve
bicyclists’ visibility and safety
High-visibility enhancements to existing crosswalks using pavement markings and
related quick-build tools such as striping, flex posts, pavement markings
Community engagement and education, including a bike ride to help residents and
school communities understand how to use the new bike infrastructure
FISCAL/RESOURCE IMPACT
Table 1: South Palo Alto Bikeways Demonstration Project Funding Plan
Fund Source Amount
Federal SS4A Grant $888,000
Requested TDA3 Allocation $327,000
City SS4A Local Match (CIP #PL-00026)$222,000
BPTP Implementation CIP $749,000
Item 6
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Table 1: South Palo Alto Bikeways Demonstration Project Funding Plan
Fund Source Amount
Total Project Cost $2,186,000
STAKEHOLDER ENGAGEMENT
Community outreach occurred as part of the South Palo Alto Bikeways project in 2020 and
2021. Following Council approval, staff updated the City/School Transportation Safety
Committee (CSTSC) about efforts to acquire grant funds. Parent support for the project was
included in the 2024 Safe Streets for All application that was ultimately awarded. Staff continue
to inform the CSTSC about the status of the project.
The TDA3 allocation was reviewed through the City’s Pedestrian and Bicycle Advisory
Committee (PABAC) on March 3, 2026, consistent with the required findings included in the
attached resolution (Attachment A). An earlier draft of the attached MTC Complete Streets
Checklist was reviewed by PABAC, and the document now reflects PABAC’s review and
comments (Attachment B). The MTC Complete Streets Checklist is a mandatory documentation
tool used by project sponsors in the San Francisco Bay Area to ensure transportation projects
funded by the Metropolitan Transportation Commission (MTC) safely accommodate all users,
including pedestrians, cyclists, transit riders, and motorists. It requires cities to consider design
features like bike lanes, sidewalks, and traffic calming early in the planning phase to comply
with regional safety and equity goals.
The quick-build project will include outreach to residents and school communities as part of the
demonstration, including a City-hosted bike ride to educate the community about the new bike
facility configuration and safe bicycling behavior.
ENVIRONMENTAL REVIEW
Council action to adopt the resolution and submit a funding request is not a project under the
California Environmental Quality Act (CEQA) because it is a fiscal activity that does not, by itself,
commit the City to a specific project approval that may result in a potentially significant physical
impact on the environment, consistent with CEQA Guidelines section 15378(b)(4). Separate
CEQA compliance, as applicable, will be completed for project implementation.
ATTACHMENTS
Attachment A: Resolution Making Required Findings in Support of the City’s Application for FY
2026/27 TDA Article 3 Funds in the Amount of $326,590 for the South Palo Alto Bikeways
Demonstration Project
Attachment B: MTC Complete Streets Checklist
APPROVED BY:
Ria Hutabarat Lo, Chief Transportation Official
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*NOT YET APPROVED*
155_20260414_ts24
Resolution No.
Resolution of the Council of the City of Palo Alto Making Required Findings in Support of the
City’s Grant Application for FY2026/27 Transportation Development Act Article 3 Funds in the
Amount of $326,590 for the City’s South Palo Alto Bikeways Demonstration Project
R E C I T A L S
A. Article 3 of the Transportation Development Act (TDA), Public Utilities Code (PUC)
Section 99200 et seq., authorizes the submission of claims to a regional transportation
planning agency for the funding of projects exclusively for the benefit and/or use of
pedestrians and bicyclists; and
B. The Metropolitan Transportation Commission (MTC), as the regional transportation
planning agency for the San Francisco Bay region, has adopted MTC Resolution No.
4108, Revised, entitled “Transportation Development Act, Article 3, Pedestrian/Bicycle
Projects,” which delineates procedures and criteria for submission of requests for the
allocation of “TDA Article 3” funding; and
C. MTC Resolution No. 4108, Revised requires that requests for the allocation of TDA
Article 3 funding be submitted as part of a single, countywide coordinated claim from
each county in the San Francisco Bay region; and
D. The City of Palo Alto desires to submit a request to MTC for the allocation of TDA Article
3 funds to support the projects described in Attachment B to this resolution, which are
for the exclusive benefit and/or use of pedestrians and/or bicyclists.
NOW, THEREFORE, the Council of the City of Palo Alto RESOLVES as follows:
SECTION 1. The City of Palo Alto declares it is eligible to request an allocation of TDA
Article 3 funds pursuant to Section 99234 of the Public Utilities Code.
SECTION 2. There is no pending or threatened litigation that might adversely affect the
project or projects described in Attachment B to this resolution, or that might impair the ability
of the City of Palo Alto to carry out the project.
SECTION 3. The City of Palo Alto attests to the accuracy of and approves the statements
in Attachment A to this resolution.
//
//
Item 6
Attachment A - Resolution
Making Required Findings in
Support of the City’s
Application for FY 202627
TDA Article 3 Funds in the
Amount of $326,590 for the
South Palo Alto Bikeways
Demonstration Project
Item 6: Staff Report Pg. 5 Packet Pg. 29 of 172
*NOT YET APPROVED*
155_20260414_ts24
SECTION 4. A certified copy of this resolution and its attachments, and any
accompanying supporting materials shall be forwarded to the congestion management agency,
countywide transportation planning agency, or county association of governments, as the case
may be, of Santa Clara County for submission to MTC as part of the countywide coordinated
TDA Article 3 claim.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
_______________________________ _________________________
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
________________________________ _________________________
Assistant City Attorney City Manager
Item 6
Attachment A - Resolution
Making Required Findings in
Support of the City’s
Application for FY 202627
TDA Article 3 Funds in the
Amount of $326,590 for the
South Palo Alto Bikeways
Demonstration Project
Item 6: Staff Report Pg. 6 Packet Pg. 30 of 172
*NOT YET APPROVED*
155_20260414_ts24
ATTACHMENT A
Findings
1. That the City of Palo Alto is not legally impeded from submitting a request to the Metropolitan
Transportation Commission for the allocation of Transportation Development Act (TDA)
Article 3 funds, nor is the City of Palo Alto legally impeded from undertaking the project(s)
described in “Attachment B” of this resolution.
2. That the City of Palo Alto has committed adequate staffing resources to complete the
project(s) described in Attachment B.
3. A review of the project(s) described in Attachment B has resulted in the consideration of all
pertinent matters, including those related to environmental and right-of-way permits and
clearances, attendant to the successful completion of the project(s).
4. Issues attendant to securing environmental and right-of-way permits and clearances for the
projects described in Attachment B have been reviewed and will be concluded in a manner
and on a schedule that will not jeopardize the deadline for the use of the TDA funds being
requested.
5. That the project(s) described in Attachment B comply with the requirements of the California
Environmental Quality Act (CEQA, Public Resources Code Sections 21000 et seq.).
6. That as portrayed in the budgetary description(s) of the project(s) in Attachment B, the
sources of funding other than TDA are assured and adequate for completion of the project(s).
7. That the project(s) described in Attachment B are for capital construction and/or final design
and engineering or quick build project; and/or for the maintenance of a Class I bikeway which
is closed to motorized traffic and/or Class IV separated bikeway; and/or for the purposes of
restriping Class II bicycle lanes; and/or for the development or support of a bicycle safety
education program; and/or for the development of a comprehensive bicycle and/or
pedestrian facilities plan, and an allocation of TDA Article 3 funding for such a plan has not
been received by the City of Palo Alto within the prior five fiscal years.
8. That the project(s) described in Attachment B which are bicycle projects have been included
in a detailed bicycle circulation element included in an adopted general plan or included in
an adopted comprehensive bikeway plan (such as outlined in Section 2377 of the California
Bikeways Act, Streets and Highways Code section 2370 et seq.) or responds to an immediate
community need, such as a quick-build project.
9. That any project described in Attachment B as a bicycle project meets the mandatory
minimum safety design criteria published in the California Highway Design Manual or is in a
National Association of City and Transportation Officials (NACTO) guidance or similar best
practices document.
10. That the project(s) described in Attachment B will be completed in the allocated time (fiscal
year of allocation plus two additional fiscal years).
Item 6
Attachment A - Resolution
Making Required Findings in
Support of the City’s
Application for FY 202627
TDA Article 3 Funds in the
Amount of $326,590 for the
South Palo Alto Bikeways
Demonstration Project
Item 6: Staff Report Pg. 7 Packet Pg. 31 of 172
*NOT YET APPROVED*
155_20260414_ts24
11. That the City of Palo Alto agrees to maintain, or provide for the maintenance of, the project(s)
and facilities described in Attachment B, for the benefit of and use by the public.
Item 6
Attachment A - Resolution
Making Required Findings in
Support of the City’s
Application for FY 202627
TDA Article 3 Funds in the
Amount of $326,590 for the
South Palo Alto Bikeways
Demonstration Project
Item 6: Staff Report Pg. 8 Packet Pg. 32 of 172
*NOT YET APPROVED*
155_20260414_ts24
Attachment B
TDA Article 3 Project Application Form
1. Agency City of Palo Alto
Primary Contact
Mailing Address
Email Address Phone Number
Secondary Contact
the event primary is
not available)
Ria Hutabarat Lo
7. (if
different) N/A☒
Email Address Phone Number
Send allocation
instructions to (if
different from above):
Project Title
Amount requested Fiscal Year of
Claim
14. Description of Overall Project:
Item 6
Attachment A - Resolution
Making Required Findings in
Support of the City’s
Application for FY 202627
TDA Article 3 Funds in the
Amount of $326,590 for the
South Palo Alto Bikeways
Demonstration Project
Item 6: Staff Report Pg. 9 Packet Pg. 33 of 172
*NOT YET APPROVED*
155_20260414_ts24
15. Project Scope Proposed for Funding: (Project level environmental, preliminary
planning, and ROW are ineligible uses of TDA funds.)
16. Project Location: A map of the project location is attached or a link to a online
map of the project location is provided below:
Project Relation to Regional Policies (for information only)
17. Is the project in an Equity Priority Community? Yes☐
No☒
18. Is this project in a Priority Development Area or a Transit-Oriented Community? Yes☒
No☐
19. Project Budget and Schedule
Project Eligibility
A. Has the project been reviewed by the Bicycle and Pedestrian Advisory Committee? Yes
☒ No☐
(If “YES,” identify the date and provide a copy or link to the agenda. If "NO,"
provide an explanation). PABAC reviewed on March 3, 2026. Minutes can be
found here. https://www.paloalto.gov/Departments/Transportation/Bicycling-
Walking/Pedestrian-and-Bicycle-Advisory-Committee-PABAC
B. Has the project been approved by the claimant's governing body? Yes☒
No☐
Council concept approval on August 9, 2021
Project Phase TDA 3 Other Funds Total Cost Estimated Completion
(month/year)
Bike/Ped Plan
ENV 13,000 13,000 February 2027
PA&ED 487,000 487,000 April 2027
PS&E 100,000 100,000 May 2027
ROW
CON 227,000 1,359,000 1,586,000 March 2028
Total Cost 327,000 1,859,000 2,186,000 December 2029
Item 6
Attachment A - Resolution
Making Required Findings in
Support of the City’s
Application for FY 202627
TDA Article 3 Funds in the
Amount of $326,590 for the
South Palo Alto Bikeways
Demonstration Project
Item 6: Staff Report Pg. 10 Packet Pg. 34 of 172
*NOT YET APPROVED*
155_20260414_ts24
If "NO," provide expected date: _________________
C. Has this project previously received TDA Article 3 funding? Yes☐
No☒
(If "YES," provide an explanation on a separate page)
D. For "bikeways," does the project meet Caltrans minimum safety design criteria Yes☒
No☐
pursuant to Chapter 1000 of the California Highway Design Manual?
E. 1. Is the project categorically exempt from CEQA, pursuant to CCR Section 15301(c), Yes
☒ No☐
Existing Facility?
2. If “NO” above, is the project exempt from CEQA for another reason? Yes☐
No☐
Cite the basis for the exemption. __________________________
N/A☒
If the project is not exempt, please check “NO,” and provide environmental
documentation, as appropriate.
F. Estimated Completion Date of project (month and year): _12/31/29__________
G. Have provisions been made by the claimant to maintain the project or facility, or has
Yes☒ No☐
the claimant arranged for such maintenance by another agency? (If an agency other
than the Claimant is to maintain the facility, please identify below and provide the
agreement.
H. Is a Complete Streets Checklist required for this project ? Yes☒
No☐
If the amount requested is over $250,000 or if the total project phase or construction
phase is over $250,000, a Complete Streets checklist is likely required. Please attach
the Complete Streets checklist or record of review, as applicable. More information
and the form may be found here:
https://mtc.ca.gov/planning/transportation/complete-streets
Item 6
Attachment A - Resolution
Making Required Findings in
Support of the City’s
Application for FY 202627
TDA Article 3 Funds in the
Amount of $326,590 for the
South Palo Alto Bikeways
Demonstration Project
Item 6: Staff Report Pg. 11 Packet Pg. 35 of 172
MTC Checklist
Item 6
Attachment B - MTC
Complete Streets Checklist
Item 6: Staff Report Pg. 12 Packet Pg. 36 of 172
Item 6
Attachment B - MTC
Complete Streets Checklist
Item 6: Staff Report Pg. 13 Packet Pg. 37 of 172
Item 6
Attachment B - MTC
Complete Streets Checklist
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Item 6
Attachment B - MTC
Complete Streets Checklist
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Item 6
Attachment B - MTC
Complete Streets Checklist
Item 6: Staff Report Pg. 16 Packet Pg. 40 of 172
Item 6
Attachment B - MTC
Complete Streets Checklist
Item 6: Staff Report Pg. 17 Packet Pg. 41 of 172
YES
The Committee was overwhelmingly in support of the project and voted unanimously
to approve the TDA3 allocation. One comment on the MTC Checklist had to do with
the EPC question. Staff explained that there is no good way in the checklist to discuss
how this project will benefit the over 600 East Palo Alto students who commute into
Palo Alto each day. Staff noted that this Safe Routes to School project will reduce their
exposure to traffic risk, especially because they are coming from further away and are
therefore more exposed than others due to their longer commutes. One committee
member requested that the bike lanes be as wide as possible to accommodate
overtaking by faster bikes or devices within the lane.
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Complete Streets Checklist
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Community Services
Meeting Date: May 4, 2026
Report #:2603-6152
TITLE
Approval of Contract Amendment Number 1 to Contract Number S23187797 with Stephen
Galloway Studio, LLC to Extend the Contract Term Through April 1, 2029, for Concept Design
Development, Fabrication and Delivery to the Site and Placement of Artwork; CEQA Status –
categorically exempt.
RECOMMENDATION
Staff recommends that City Council approve and authorize the City Manager or their designee
to execute Amendment No. 1 to Contract No. S23187797 with Stephen Galloway Studio, LLC
(Attachment A) to extend the contract term through April 1, 2029 to provide professional
services for concept design development, fabrication and delivery to the site and placement of
artwork associated with the construction of a new Fire Station 4 in Palo Alto. This contract
amendment does not include any additions or changes to the scope of services or not-to-
exceed compensation in the original contract.
EXECUTIVE SUMMARY
Fire Station 4, located at 3600 Middlefield Road, is a Capital Improvement Program (CIP)
replacement project (PE-18004) and is included in the 2014 Council Infrastructure Plan1. The
original construction timeline for the new Fire Station 4 anticipated a start in 2024 and
completion in Winter 2026.
In Fall 2022, the Public Art Commission (PAC) approved $110,000, inclusive of a 10%
contingency, for public art associated with the Fire Station 4 replacement project2. In Spring
2023, Stephen Galloway Studio was selected and approved by the PAC3 to design and fabricate
1 City of Palo Alto 2014 Infrastructure Plan; https://www.infrastructure.cityofpaloalto.org/
2 Public Art Commission, October 20, 2022; Agenda Item #5
https://www.cityofpaloalto.org/files/assets/public/v/1/community-services/public-art-program/staff-reports-and-
docs-for-pac/fire-station-4-pac-staff-report-10.20.2022.pdf
3 Public Art Commission, March 16, 2023; Agenda Item #3
https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=9553&dbid=0&repo=PaloAlto
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permanent, site-specific public artwork for the new building. Under the terms of the artist
agreement S231877977, the artist is responsible for coordinating delivery and installation of the
completed artwork in alignment with the project construction schedule.
BACKGROUND
8 specifies
that the City will budget one percent (1%) of its construction costs to include public art for City
capital improvement projects that have a visual impact on the surrounding environment by
altering a site through new construction or reconstruction, at the initial stages of design,
thereby ensuring that art elements become an integral part of the overall design.
9 "Public
Art for Municipal Projects "to Chapter 2.26 (Visual Art in Public Places). The Ordinance
enhanced the funds available for public art and increased flexibility to provide art experiences
that are timely and relevant throughout the community. According to the Ordinance, one
percent (1%) of the City’s annual Capital Improvement Program (CIP) budget devoted to public
art is deposited into the Public Art Fund. Funds may be used at any appropriate site within Palo
Alto for permanent or temporary public art projects. Additionally, funds from two or more CIP
projects may be pooled to fund a single work of art.
ANALYSIS
7 Professional Services Agreement S23187797 with Stephen Galloway LLC;
https://www.paloalto.gov/files/assets/public/v/1/community-services/public-art-program/staff-reports-and-docs-
for-pac/s23187797-stephen-galloway-studio-llc.pdf
8 Public Art in City Capital Improvement Projects, Policy and Procedures 1-45
https://www.cityofpaloalto.org/files/assets/public/v/2/community-services/public-art-program/pap-policies-and-
docs/muni-policy-effective-march-2015.pdf
9 Ordinance No. 5301 of the Council of the City of Palo Alto Amending the Municipal Code to add Section 2.26.070
(Public Art for Municipal Projects) to Chapter 2.26 (Visual Art in Public Places)
https://www.cityofpaloalto.org/files/assets/public/v/2/community-services/public-art-program/pap-policies-and-
docs/muni-policy-effective-march-2015.pdf
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(Visual Art in Public Places). October 22, 2022, Public Art staff presented opportunities for
public art integration into Fire Station 4 to the Public Art Commission (PAC). The PAC was
supportive of the opportunities and integration of art and approved funds in the amount of
$110,000 inclusive of a ten percent contingency for the project. Staff then met with the project
design team including BRW Architects, Public Works, and the Fire Department to determine
opportunities for art integration. Public Art Staff utilized its pre-qualified artist roster. A
selection panel of seven stakeholders evaluated twenty artists and selected Stephen Galloway
for the commission in March 2023. The selection panel included: Chief Stephen Lindsey, Palo
Alto Fire Department; Julia Lee – Media Art Teacher/PALS Leadership Adviser, JL Stanford
Middle School; Sang-ah Choi – Artist, Cubberley Artist Studio Program; Lisa Waltuch – Public Art
Commissioner; Charlotta Hauksdottir - Artist, Cubberley Artist Studio Program / Community
Member; Valerie Tam - Project Engineer, Dept. of Public Works, City of Palo Alto; and Megan
Zhang – Assoc. AIA, BRW Architects.
13. Since then, he has met with lighting consultants
to refine this aspect of his design and worked on securing a fabricator for the enameled steel
panels, and an installer who can attach his work to the finished building, and who also has the
necessary licensing and insurance coverage to meet City requirements.
13 Public Art Commission; January 18, 2024; Agenda Item #2; SR #2401-2513
https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=9570&dbid=0&repo=PaloAlto
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building construction is finished, we estimate that this public art project will be finished in
Summer – Fall 2027.
FISCAL/RESOURCE IMPACT
STAKEHOLDER ENGAGEMENT
ENVIRONMENTAL REVIEW
ATTACHMENTS
APPROVED BY:
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Vers.: Aug. 5, 2019
Page 1 of 4
AMENDMENT NO. 1 TO CONTRACT NO. S23187797
BETWEEN THE CITY OF PALO ALTO AND
ARTIST STEPHEN GALLOWAY dba STEPHEN GALLOWAY STUDIO, LLC
This Amendment No. 1 (this “Amendment”) to Contract No. S23187797 (the “Contract” as
defined below) is entered into as of May 4, 2026, by and between the CITY OF PALO ALTO, a
California chartered municipal corporation (“CITY”), and STEPHEN GALLOWAY STUDIO, LLC a
Limited Liability Corporation, located at 46 6th Ave, San Francisco, CA 94118 (“ARTIST”). CITY and
ARTIST are referred to collectively as the “Parties” in this Amendment.
R E C I T A L S
A. The Contract (as defined below) was entered into by and between the Parties hereto for
the provision of work of art for Fire Station 4 located at 3600 Middlefield Road, Palo Alto, CA
94303 (“Art Work”) and desires to engage an ARTIST to provide research, concept and design
development, fabrication, delivery to the site, and placement onsite in connection with the Art
Work, as detailed therein.
B. The Parties now wish to amend the Contract in order to extend the term by three
years, from April 1, 2026, through April 1, 2029, with no increase in compensation.
NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of
this Amendment, the Parties agree:
SECTION 1. Definitions. The following definitions shall apply to this Amendment:
a. Contract. The term “Contract” shall mean Contract No. S23187797 between
CONSULTANT and CITY, dated April 5, 2023.
b. Other Terms. Capitalized terms used and not defined in this Amendment
shall have the meanings assigned to such terms in the Contract.
SECTION 2. Section 2, “TERM” of the Contract is hereby amended to read as follows:
The term of this Agreement shall be from the date of its full execution through April 1,
2029, unless terminated earlier pursuant to Section 23 of this Agreement.
Docusign Envelope ID: F113A896-FC8E-455C-9767-70DE6821F138
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SECTION 3. The following exhibit(s) to the Contract is/are hereby amended or added, as
indicated below, to read as set forth in the attachment(s) to this Amendment, which is/are hereby
incorporated in full into this Amendment and into the Contract by this reference:
a. Exhibit “B” entitled “SCHEDULE OF PERFOMANCE”, AMENDED, REPLACES
PREVIOUS.
SECTION 4. Legal Effect. Except as modified by this Amendment, all other provisions of the
Contract, including any exhibits thereto, shall remain in full force and effect.
SECTION 5. Incorporation of Recitals. The recitals set forth above are terms of this
Amendment and are fully incorporated herein by this reference.
(SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.)
Docusign Envelope ID: F113A896-FC8E-455C-9767-70DE6821F138
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SIGNATURES OF THE PARTIES
IN WITNESS WHEREOF, the Parties have by their duly authorized representatives executed
this Amendment effective as of the date first above written.
CITY OF PALO ALTO
City Manager
APPROVED AS TO FORM:
City Attorney or designee
ARTIST STEPHEN GALLOWAY dba
STEPHEN GALLOWAY STUDIO, LLC
By:
Name: Stephen Galloway
Title:
Attachments:
Exhibit “B” entitled “SCHEDULE OF PERFOMANCE, AMENDMENT NO. 1”, AMENDED,
REPLACES PREVIOUS.
Docusign Envelope ID: F113A896-FC8E-455C-9767-70DE6821F138
Artist
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EXHIBIT “B”
SCHEDULE OF PERFORMANCE
AMENDMENT NO. 1
AMEDNED, REPLACES PREVIOUS
ARTIST shall perform the Services so as to complete each milestone within the number of
days/weeks specified below. The time to complete each milestone may be increased or
decreased by mutual written agreement of the project managers for ARTIST and CITY so long as
all work is completed within the term of the Agreement. ARTIST shall provide a detailed
schedule of work consistent with the schedule below within 2 weeks of receipt of the notice to
proceed.
TIMELINE - TASK:
June, 2026 - Revise lighting specifications, coordinate lighting components installation plan with
Department of Public Works. Fabrication of artwork, delivery to Art Center for storage.
Fall/Winter, 2026/2027 - visit site to verify accurate locations of blocking and electrical junction boxes
needed for art installation.
June, 2027 – Coordination of installation needs and logistics with City staff, Installation onsite.
Exact timeline for the installation of artwork onsite will be coordinated with the Fire Station 4
construction schedule.
Docusign Envelope ID: F113A896-FC8E-455C-9767-70DE6821F138
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Transportation
Meeting Date: May 4, 2026
Report #:2603-6108
TITLE
Approve Supplement No. 2 to Master Funding Agreement with the Metropolitan
Transportation Commission for the City to receive an Amount Not to Exceed $1 Million for the
Palo Alto Transit Center Quarry Road Connection; CEQA status - statutorily exempt.
RECOMMENDATION
Staff recommends that City Council:
1. Approve and authorize the City Manager or designee to execute Supplement No. 2 to
the Master Funding Agreement between the Metropolitan Transportation Commission
(MTC) and the City of Palo Alto for the City to receive an amount not to exceed
$1,000,000 for the Quarry Road Improvements and Transit Center Access project (PL-
16000); and
2. Amend the Fiscal Year 2026 Budget Appropriation for the Capital Improvement Fund by
(requires 2/3 approval):
i. Increasing the estimate for revenue from the State of California by $1,000,000;
and
ii. Increasing the expense appropriation for the Quarry Road Improvements and
Transit Center Access project (PL-16000) in the amount of $1,000,000.
EXECUTIVE SUMMARY
City Council action is recommended to authorize execution of Supplement No. 2 to the Master
Funding Agreement with the Metropolitan Transportation Commission (MTC) to accept a not to
exceed amount of $1,000,000 in 2004 Regional Measure 2 (RM2) funds and transfer and
appropriate these funds to Quarry Road Improvements and Transit Center Access project (PL-
16000). The project will allow buses serving PATC to exit directly to El Camino Real at Quarry
Road (rather than circulating via University Avenue), reducing bus travel times and improving
reliability, while also delivering bicycle and pedestrian safety improvements at the Quarry
Road/El Camino Real intersection.
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The project cost is currently estimated at $5 million (subject to refinement as design advances)
and will be funded through a mix of sources including MTC RM2 bridge toll revenues, Stanford
University, and City funds from the Stanford University Medical Center (SUMC) Development
Agreement. MTC will provide up to $1.0 million in RM2 funds with required matching funds of
$500,000 from the City and $500,000 from Stanford. City match funds, in turn, would be
provided from SUMC Development Agreement fund. The project was the subject of Measure D,
which undedicated a portion of El Camino Park for this project, which passed in November 2024
with 74% voter approval.
BACKGROUND
On November 13, 2017, Council adopted the City’s Comprehensive Plan which included Policy
T-3.10 to “participate in the design and implementation of comprehensive solutions to traffic
problems near Stanford Shopping Center and Stanford Medical Center” and Program T3.10.4 to
“pursue extension of Quarry Road for transit, pedestrians and bicyclists to access the Palo Alto
Transit Center from El Camino Real.”
On April 22, 2024, Council reviewed a concept plan for a proposed project to implement
Program T3.10.4 and adopted a resolution of intention to undedicated a portion of El Camino
Park needed for the project. The project would allow buses that use the Palo Alto Transit
Center (PATC) to exit directly to El Camino Real at Quarry Road, rather than circling back via
University Avenue, thereby reducing bus travel times and enhancing bicycle and pedestrian
safety at the intersection of Quarry Road and El Camino Real.
On June 10, 2024, Council approved a Letter of Intent (LOI) with Stanford University to support
this project.1 The LOI outlined responsibilities and actions of each party, including:
Design and construction by the City, with funding to come from the SUMC Development
Agreement fund and Stanford University contributing up to $4 million for completion of
the project, as well as maintenance funding;
Extension of the Stanford lease to the City for the playing fields at El Camino Park for an
additional ten years through 2052; and,·
A commitment by Stanford and the City to work in collaboration with transit partners on
a longer-term visioning process for the Palo Alto Transit Center that addresses dynamic
public spaces, multi-modal transit needs, and community engagement.
In November 2024, Palo Alto voters passed Measure D, approving the use of a 0.33-acre portion
of El Camino Park to create a new transit roadway linking the Palo Alto Transit Center with El
Camino Real.
1 City Council, June 10, 2024; Agenda Item #12, SR # 2405-3041
https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=82889&dbid=0&repo=PaloAlto
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On November 3, 2025, Council approved a cost-sharing agreement with Stanford University and
authorized the allocation of $878,200 in SUMC Development Agreement funds for Quarry Road
Improvement and Transit Center Access project (PL-16000). This action provided funding for
Design and Environmental Review phases.3 Council also approved $35,000 in SUMC
Development Agreement funds to partner with the Urban Land Institute, VTA, and Stanford to
develop a longer-term vision for the wider transit center area.4
ANALYSIS
FISCAL/RESOURCE IMPACT
3 City Council, November 3, 2025; Agenda Item #12, SR #2507-4945
https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=83770&dbid=0&repo=PaloAlto&searchid=41bbb06
a-03c7-4820-99a1-dc7d56d0cfe1
4 See the webpage for the Palo Alto Transit Center for details on the ULI visit:
https://www.paloalto.gov/Departments/Transportation/Transportation-Projects/Palo-Alto-Transit-Center
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Intermodal Fund. With this commitment, the remaining available balance in the SUMC
Development Agreement Intermodal Fund is projected to be approximately $400,000.
STAKEHOLDER ENGAGEMENT
ENVIRONMENTAL REVIEW
ATTACHMENTS
APPROVED BY:
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SUPPLEMENT NO. 2
To MASTER FUNDING AGREEMENT
Between METROPOLITAN TRANSPORTATION COMMISSION
And CITY OF PALO ALTO
For PALO ALTO TRANSIT CENTER QUARRY ROAD CONNECTION
This Supplement No. 2 to Master Funding Agreement (“Supplement or “Agreement”) is entered
into this September 1, 2025, by and between the METROPOLITAN TRANSPORTATION
COMMISSION (hereafter “MTC”) and CITY OF PALO ALTO (hereafter “AGENCY”) and
supplements the Master Funding Agreement, dated February 17, 2022, by and between MTC and
AGENCY.
Pursuant to this Supplement, MTC agrees to reimburse an amount not to exceed one million
dollars ($1,000,000) in Regional Measure 2 (RM2) funds to AGENCY to fund the Palo Alto Transit
Center Quarry Road Connection (as more fully described in Annex I hereto, the “Supplement Project”).
The estimated budget and payment milestones for the Supplement Project scope of work is attached as
Annex II hereto.
The Supplement Project work will commence September 1, 2025, and be completed no later
than December 31, 2029.
The clauses selected below and attached as exhibits to the Master Funding Agreement shall
apply to AGENCY’s performance of the applicable Supplement Project scope of work hereunder:
☒ Exhibit B-1, Additional Terms and Conditions (General), Paragraph A
☒ Exhibit B-1, Additional Terms and Conditions (General), Paragraph B
☐ Exhibit B-2, Additional Terms and Conditions (Federally Required Clauses)*
☐ Exhibit B-3, Additional Terms and Conditions (State Required Clauses)
☐ Exhibit B-4, Additional Terms and Conditions (Prevailing Wage Rates, Apprenticeships,
and Payroll Records, Non-Federally-Funded Agreements)
☐ Exhibit B-5, Additional Terms and Conditions (Prevailing Wage Rates, Apprenticeships,
and Payroll Records, Federally-Funded Agreements)
☒ Exhibit B-6, Additional Terms and Conditions (Regional Toll Funds including RM1,
RM2, and AB1171)
☐ Exhibit B-7, Additional Terms and Conditions (Regional Discretionary Federal Funds
including STP and CMAQ)
The terms and conditions of this Supplement include the following and each is incorporated by
reference herein as if fully set forth herein.
Attachment A – MTC Resolution No. 4271 Approving Project Request(s)
Attachment B – MTC Resolution No. 3636, Revised
The MTC Project Manager for the Supplement Project is Michelle Go, (415) 778-6649,
mgo@bayareametro.gov. The AGENCY Project Manager for the Supplement Project is Sylvia Star-
Lack, (650) 329-2546, Sylvia.Star-Lack@paloalto.gov.
This Supplement is supplemental to the Master Funding Agreement; all terms and conditions of
the Master Funding Agreement, as may be amended, remain unchanged hereby.
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MTC/ City of Palo Alto
Master Funding Agreement
Supplement No. 2 – Palo Alto Transit Center Quarry Road Extension
Page 2
Capitalized terms used but not defined herein shall have the respective meanings assigned to
them in the Master Funding Agreement.
METROPOLITAN TRANSPORTATION
COMMISSION
CITY OF PALO ALTO
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Supplement No. 2 – Palo Alto Transit Center Quarry Road Extension
Page 3
ANNEX I
Project Description and Scope of Work
Palo Alto Transit Center Quarry Road Connection
Project Description:
As envisioned in the Palo Alto Comprehensive Plan as Program T3.10.4 (2017), the proposed Quarry
Road Connection Project will create a direct transit connection between the transit center bus bays and
El Camino Real at the Quarry Road traffic signal, through an underused, passive portion of El Camino
Park. The proposed project would allow buses that use the bus terminal to exit via Quarry Road to El
Camino Real rather than to circle back through University Avenue. The bus operators have estimated
savings of approximately 5-8 minutes per trip could be achieved by avoiding University Circle and
directly connecting with Quarry Road at El Camino Real.
The bus route reorganization would have secondary benefits to the University Avenue and University
Circle area by eliminating the need for some buses to make constrained turning movements in the
corridor. Articulated buses require additional turning radii to access the transit center from University
Avenue which regularly causes congestion and delays for vehicular traffic and creates additional conflict
points for bicycles and pedestrians at the gateway to Downtown Palo Alto.
The project will also include multiple pedestrian and bicycle improvements within El Camino Park
adjacent to or near the proposed transit connection and at the intersection of Quarry Road and El
Camino Real.
Specifically, the proposed project will:
• Upgrade the crossing of El Camino Real to accommodate pedestrians and cyclists on both sides
of Quarry Road, which would reduce crossing time; and
• Add safety and accessibility measures at the intersection of Quarry Road and El Camino Real
(e.g., curb extensions and tighter turning radii, new pedestrian/bicycle ramps, pedestrian and
bicycle refuge islands, and high visibility bicycle markings are currently being considered).
Through the above improvements, there would be enhanced visibility of the existing multi-modal path to
the transit center and its connections to the existing Class 1 multi-modal path that connects to El Camino
Park and into Menlo Park, through the PATC to the Embarcadero Bike Path, and to the Stanford
Perimeter Trail.
These connectivity improvements will also make the active park facilities in El Camino Park more
accessible for bikes, pedestrians and transit riders.
Designs for the transit connection are in the early stages, but all feasible options are under consideration,
ranging from a new connection providing full access to buses between the transit center and El Camino
Real to an outbound-only transit lane.
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The preliminary concept design includes 12.5 foot wide inbound and outbound transit travel lanes (188
feet and 163 feet in length, respectively), with six-inch curbs, separated by a landscaped median that
ranges in width between 18-33 feet that would house existing utilities.
Other modifications and improvements could include, but are not limited to, wayfinding signs,
additional striping and green bike lanes to help identify buffered lanes and highlight any potential
conflict areas between buses, transit and bicyclists in the corridor, crosswalk striping, and refuge islands.
Scope
The services to be performed by Palo Alto staff, in partnership with Stanford University, shall consist of
managing consultants/contractors to perform the services requested by the MTC Project Manager or a
designated representative including, but not limited to, the following tasks:
• Preliminary Engineering and Design
o Task 1: Project Management
o Task 2: Preliminary Engineering
o Task 3: Transit Service and Operations Study
o Task 4: Traffic Operations Analysis
o Task 5: Environmental Engineering and Clearance
o Task 6: Design Engineering Evaluation Report (DEER)
o Task 7: Plans, Specifications, and Estimates (PS&E)
o Optional Tasks
Task 4.3: Transit Signal Priority Technical Memorandum
Task 5.2 Preliminary Environmental Analysis Report (PEAR)
Task 8: Advertising and Bid Support (fee not included)
Task 9: Contingency and Other Supporting Tasks
• Construction
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Supplement No. 2 – Palo Alto Transit Center Quarry Road Extension
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ANNEX II
Project Schedule, Budget and Payment
COST REIMBURSEMENT
MTC will reimburse AGENCY for all expenses deemed reasonable and necessary by MTC incurred by
AGENCY in the performance of this Agreement. MTC will reimburse AGENCY at a rate not to exceed
50% of costs up to a maximum of one million dollars ($1,000,000) in Regional Measure 2 (RM2) funds.
AGENCY and Stanford University will match the funds with a 25% contribution each. Excess costs
beyond approved RM2 allocations will be resolved by AGENCY or Stanford University contributions,
or other sources identified by AGENCY. Reimbursement is subject to funding allocations approved in
Attachment A, MTC Resolution No. 4721 and future allocation approvals. Attachment A also includes
the project schedule which serves as an estimated schedule by which allocations would be made.
Reimbursement shall include travel and personal expenses incurred by employees or agents of
AGENCY in accordance with 48 Code of Federal Regulations Part 31 or 2 CFR Part 200, as applicable.
The estimated budget and RM2 cost share by Task for the Preliminary Engineering and Final Design
and the Construction phases are described below.
# Task Estimated
Budget Cost Share
Preliminary Engineering and Final Design Phase
Preliminary Engineering and Final Design Subtotal
Construction Phase Subtotal
Total
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Supplement No. 2 – Palo Alto Transit Center Quarry Road Extension
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AGENCY shall submit invoices for services rendered on a monthly basis covering fees and expenses for
a single calendar month, identifying the work for which payment is requested; the hours worked; any
authorized expenses, together with receipts for such expenses; the amount requested; and the cumulative
amount billed and paid under this Agreement. AGENCY shall also submit invoices through June 30th
by July 31st to align with fiscal year-end processing.
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Supplement No.2
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MTC/ City of Palo Alto
Master Funding Agreement
Supplement No. 2 – Palo Alto Transit Center Quarry Road Extension
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ANNEX III
Insurance Requirements
1. INSURANCE
A. Minimum Coverages. The insurance requirements specified in this section shall cover
AGENCY’s own liability and the liability arising out of work or services performed under this
Agreement by any subconsultants, subcontractors, suppliers, temporary workers, independent
contractors, leased employees, or any other persons, firms or corporations that AGENCY authorizes to
work under this Agreement (hereinafter referred to as “Agents.”) AGENCY shall, at its own expense,
obtain and maintain in effect at all times during the life of this Agreement the following types of
insurance against claims, damages and losses due to injuries to persons or damage to property or other
losses that may arise in connection with the performance of work under this Agreement.
AGENCY is also required to assess the risks associated with work to be performed by Agents
under subcontract and to include in every subcontract the requirement that the Agent maintain adequate
insurance coverage with appropriate limits and endorsements to cover such risks. To the extent that an
Agent does not procure and maintain such insurance coverage, AGENCY shall be responsible for said
coverage and assume any and all costs and expenses that may be incurred in securing said coverage or in
fulfilling AGENCY’s indemnity obligation as to itself or any of its Agents in the absence of coverage.
In the event AGENCY or its Agents procure excess or umbrella coverage to maintain certain
requirements outlined below, these policies shall also satisfy all specified endorsements and stipulations,
including provisions that AGENCY’s insurance be primary without right of contribution from MTC.
Prior to beginning work under this contract, AGENCY shall provide MTC with satisfactory evidence of
compliance with the insurance requirements of this section.
The insurance listed hereunder shall be considered minimum requirements and any and all
insurance proceeds in excess of the requirements shall be made available to MTC. If the AGENCY
maintains broader coverage and/or higher limits than the minimum limits shown hereunder, MTC shall
be entitled to the broader coverage and/or higher limits maintained by the AGENCY.
1. Workers' Compensation Insurance with Statutory limits, and Employer’s Liability
Insurance with a limit of not less than $1,000,000 per employee and $1,000,000 per accident, and any
and all other coverage of AGENCY’s employees as may be required by applicable law. Such policy
shall contain a Waiver of Subrogation in favor of MTC. Such Workers’ Compensation & Employer’s
Liability may be waived, if and only for as long as AGENCY is a sole proprietor or a corporation with
stock 100% owned by officers with no employees.
2. Commercial General Liability Insurance for Bodily Injury and Property Damage
liability, covering the premises and operations, and products and completed operations of AGENCY and
AGENCY’s officers, agents, and employees and with limits of liability which shall not be less than
$1,000,000 per occurrence with a general aggregate liability of not less than $2,000,000, a
products/completed operations aggregate liability limit of not less than $2,000,000 and Personal &
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Advertising Injury liability with a limit of not less than $1,000,000. Such policy shall contain a Waiver
of Subrogation or “Waiver of Transfer of Rights of Recovery Against Others to Us” provision included
in the policy language or by endorsement in favor of MTC.
Products and completed operations insurance shall be maintained for three (3) years following
termination of this Agreement.
MTC and those entities listed in Part 3 of this Attachment E (if any), and their
commissioners, directors, officers, representatives, and employees are to be named as additional
insureds for ongoing and completed operations. The additional insured endorsements shall be at least
as broad as Insurance Service Office (ISO) Form Number CG 20 38 04 13 for ongoing operations and
Insurance Service Office (ISO) Form Number CG 20 37 04 13 for completed operations. Such insurance
shall be primary and non-contributory, and contain a Separation of Insureds Clause as respects any
claims, losses or liability arising directly or indirectly from AGENCY’s operations.
3. Business Automobile Insurance for all automobiles owned (if any), used or
maintained by AGENCY and AGENCY’s officers, and employees, including but not limited to owned
(if any), leased (if any), non-owned and hired automobiles, with limits of liability which shall not be less
than $1,000,000 combined single limit per accident.
4. Excess or Umbrella Insurance in the amount of $9,000,000 providing excess limits
over Employer’s Liability, Automobile Liability, and Commercial General Liability Insurance. Such
umbrella coverage shall be following form to underlying coverage including all endorsements and
additional insured requirements.
5. Errors and Omissions Professional Liability Insurance for errors and omissions and
the resulting damages, including, but not limited to, economic loss to MTC and having minimum limits
of $5,000,000 per claim. The policy shall provide coverage for all work performed by AGENCY and
any work performed or conducted by any subcontractor/consultant working for or performing services
on behalf of AGENCY. No contract or agreement between AGENCY and any subcontractor/consultant
shall relieve AGENCY of the responsibility for providing this Errors & Omissions or Professional
Liability coverage for all work performed by AGENCY and any subcontractor/consultant working on
behalf of AGENCY on the project.
6. Property Insurance. Property Insurance covering AGENCY'S own business personal
property and equipment to be used in performance of this Agreement, materials or property to be
purchased and/or installed on behalf of MTC (if any), and builders risk for property in the course of
construction (if applicable). Coverage shall be written on a "Special Form" policy that includes theft, but
excludes earthquakes, with limits at least equal to the replacement cost of the property. Such policy shall
contain a Waiver of Subrogation or “Transfer of Rights of Recovery Against Others to Us” provision
included in the policy language or by endorsement in favor of MTC.
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7. Employee Dishonesty/Crime Insurance. An Employee Dishonesty insurance policy
covering AGENCY’s employees for loss of or damage to money, securities or other property resulting
from theft. The following limits of liability should apply: (a) Employee Dishonesty - $250,000; and (b)
Client Property Blanket Bond - $250,000. AGENCY shall reimburse MTC for any and all losses
within the deductible, for insured losses, the cost to prove the loss, accountants' fees, defense costs
including attorneys’ fees and any other fees associated with a claim. In lieu of a Client Property Blanket
Bond, the policy shall contain a Joint Loss Payee endorsement or other Third Party coverage naming
MTC.
B. Acceptable Insurers. All policies will be issued by insurers, generally with a Best’s Rating
of A- or better with a Financial Size Category of VII or better, or an A rating from a comparable rating
service.
C. Self-Insurance. AGENCY’s obligation hereunder may be satisfied in whole or in part by
adequately funded self-insurance, upon evidence of financial capacity satisfactory to MTC.
D. Deductibles and Retentions. AGENCY shall be responsible for payment of any deductible
or retention on AGENCY’s policies without right of contribution from MTC. Deductible and retention
provisions shall not contain any restrictions as to how or by whom the deductible or retention is paid.
Any deductible or retention provision limiting payment to the Named Insured is unacceptable.
In the event that MTC seeks coverage as an additional insured under any AGENCY insurance
policy that contains a deductible or self-insured retention, AGENCY shall satisfy such deductible or
self-insured retention to the extent of loss covered by such policy, for any lawsuit arising from or
connected with any alleged act of AGENCY, subconsultant, subcontractor, or any of their employees,
officers or directors, even if AGENCY or subconsultant is not a named defendant in the lawsuit.
E. Claims Made Coverage. If any insurance specified above is written on a “Claims-Made”
(rather than an “occurrence”) basis, then in addition to the coverage requirements above, AGENCY
shall:
(1) Ensure that the Retroactive Date is shown on the policy, and such date must be before the date of
this Agreement or the beginning of any work under this Agreement;
(2) Maintain and provide evidence of similar insurance for at least three (3) years following project
completion, including the requirement of adding all additional insureds; and
(3) If insurance is cancelled or non-renewed, and not replaced with another claims-made policy form
with a Retroactive Date prior to the Agreement effective date, AGENCY shall purchase “extended
reporting” coverage for a minimum of three (3) years after completion of the work.
F. Failure to Maintain Insurance. All insurance specified above shall remain in force until all
work or services to be performed are satisfactorily completed, all of AGENCY’s personnel,
subconsultants, subcontractors, and equipment have been removed from MTC’s property, and the work
or services have been formally accepted. AGENCY must notify MTC if any of the above required
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coverages are non-renewed or cancelled. The failure to procure or maintain required insurance and/or
an adequately funded self-insurance program will constitute a material breach of this Agreement.
G. Certificates of Insurance. Prior to commencement of any work hereunder, AGENCY shall
deliver to Ebix, MTC’s authorized insurance consultant, insurance documentation (including Certificates
of Liability Insurance, Evidences of Property Insurance, endorsements, etc.) verifying the
aforementioned coverages. Such evidence of insurance shall make reference to all provisions and
endorsements referred to above and shall be signed by the authorized representative of the Insurance
Company shown on the insurance documentation. The Project name shall be clearly stated on the
face of each Certificate of Liability Insurance and/or Evidence of Property Insurance.
AGENCY shall submit certificates of insurance to:
Metropolitan Transportation Commission
Insurance Compliance
P.O. Box 100085-M8
Duluth, GA 30096
or
Email to MTC@Ebix.com
or
Fax to 1-888-617-2309
MTC reserves the right to require copies of all required policy declarations pages or insurance
policies, including endorsements, required by these specifications, at any time.
3. ADDITIONAL INSUREDS
The following entities are to be named as Additional Insureds under applicable sections of this
Attachment E and as MTC Indemnified Parties, pursuant to Article 9 of the Agreement.
Metropolitan Transportation Commission (MTC)
Bay Area Toll Authority (BATA)
Alameda-Contra Costa Transit District (AC Transit)
Valley Transportation Authority (VTA)
San Mateo County Transit District (SamTrans)
Stanford University
California Department of Transportation
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ATTACHMENT A
MTC Resolution No. 4721
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ATTACHMENT B
MTC Resolution No. 3636, Revised
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Community Services
Meeting Date: May 4, 2026
Report #:2602-5998
TITLE
Approval of Professional Services Contract Number C26196239 with Triple HS, INC (dba H. T.
Harvey & Associates), in an Amount Not to Exceed of $399,239 Over a 5-year Term for Annual
Wetland Mitigation Monitoring, Reporting, and Improvements, and Approval of a Budget
Amendment in the Capital Improvement Fund; CEQA Status - This project is part of the
Mitigation Monitoring and Reporting Program approved on February 3, 2014 as part of the Golf
Course Reconfiguration EIR.
RECOMMENDATION
Staff recommends that City Council:
1. Approve and authorize the City Manager or their designee to execute Contract No.
C26196239 with Triple HS, INC (dba H. T. Harvey & Associates) to provide annual wetland
mitigation monitoring, reporting, and remedial improvements for a term of five years and a
total amount not to exceed $399,239, including $259,239 for basic services and $140,000
for additional services.
2. Amend the Fiscal Year 2026 Budget Appropriation for the Capital Improvement Fund
(requires a two-thirds approval by the City Council) by:
a) Increasing the contract services appropriation in PG-13003 (Golf Reconfiguration &
Baylands Athletic Center Improvements) by $14,869; and
b) Decreasing the contract services appropriation in OS-18000 (Foothills Nature Preserve
Boronda Lake Dock Replacement) by $14,869.
BACKGROUND
The Palo Alto Municipal Golf Course was reconstructed and re-opened as the Baylands Golf
Links in 2018. The course redesign impacted existing wetlands on course and required a
Mitigation and Monitoring Plan (MMP) of the onsite wetlands as a condition of regulatory
permitting for the construction project. The mitigation required 0.2 acres of wetlands to be
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enhanced, and 4.0 acres be expanded which were completed and exceeded as part of the
course’s reconstruction. The course re-design constructed a greater amount of wetland acreage
than required resulting in a total of 8.48 acres of wetlands. Full compliance with regulatory
requirements includes a five-year monitoring and reporting period of wetland habitat
conditions, which was not completed.
ANALYSIS
Table #1: Summary of Request for Proposal
olf Course Wetland Mitigation Monitoring
(RFP 196239)
plus $21,281 -
$140,000 for Additional Services
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their established relationship with a habitat restoration firm to provide additional services.
Their ecology staff has local knowledge of wetlands in the Baylands, inclusive of similar
monitoring and reporting for wetlands in the area. Their proposal focused not only on
performing the annual wetland monitoring and reporting but also making recommendations
based on monitoring results with an emphasis towards achieving success criteria for regulatory
sign off. This emphasis was reflected in their proposal’s work plan as well as with similar
projects they completed for other jurisdictions.
FISCAL/RESOURCE IMPACT
STAKEHOLDER ENGAGEMENT
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ENVIRONMENTAL REVIEW
The scope of this contract is part of the Mitigation Monitoring and Reporting Program as part of
the Golf Course Reconfiguration EIR, which was approved on February 3, 2014 in Resolution
93951.
ATTACHMENTS
Attachment A: Contract with H.T. Harvey & Associates; C26196239
APPROVED BY:
Kristen O'Kane, Community Services Director
1 City Council Resolution 9395; February 3, 2014; https://www.cityofpaloalto.org/files/assets/public/v/1/city-
clerk/resolutions/reso-9395.pdf
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Professional Services
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CITY OF PALO ALTO CONTRACT NO. C26196239
AGREEMENT FOR PROFESSIONAL SERVICES
BETWEEN THE CITY OF PALO ALTO AND TRIPLE HS, INC. dba H.T. HARVEY
AND ASSOCIATES
This Agreement for Professional Services (this “Agreement”) is entered into as of the 4th day of
May, 2026 (the “Effective Date”), by and between the CITY OF PALO ALTO, a California
chartered municipal corporation (“CITY”), and TRIPLE HS, INC. dba H.T. HARVEY AND
ASSOCIATES, a California corporation, located at 720 University Ave., Suite 200, Los Gatos
CA 95032 (“CONSULTANT”).
The following recitals are a substantive portion of this Agreement and are fully incorporated herein
by this reference:
RECITALS
A. CITY intends to monitor wetland mitigation (the “Project”) and desires to engage a
consultant to provide project management, wetland monitoring, annual reporting,
recommendations, and oversight and supervision of a subcontracted habitat restoration firm in
connection with the Project (the “Services”, as detailed more fully in Exhibit A).
B. CONSULTANT represents that it, its employees and subconsultants, if any, possess the
necessary professional expertise, qualifications, and capability, and all required licenses and/or
certifications to provide the Services.
C. CITY, in reliance on these representations, desires to engage CONSULTANT to provide
the Services as more fully described in Exhibit A, entitled “SCOPE OF SERVICES”.
NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions, in this
Agreement, the parties agree as follows:
SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perform the Services described
in Exhibit A in accordance with the terms and conditions contained in this Agreement. The
performance of all Services shall be to the reasonable satisfaction of CITY.
Optional On-Call Provision (This provision only applies if checked and only applies to
on-call agreements.)
CITY may elect to, but is not required to, authorize on-call Services up to the maximum
compensation amount set forth in Section 4 (Not to Exceed Compensation).
CONSULTANT shall provide on-call Services only by advanced, written authorization
from CITY as detailed in this Section. On-call Services, if any, shall be authorized by
CITY, as needed, with a Task Order assigned and approved by CITY’s Project Manager,
as identified in Section 13 (Project Management). Each Task Order shall be in substantially
the same form as Exhibit A-1 entitled “PROFESSIONAL SERVICES TASK ORDER”.
Each Task Order shall contain a specific scope of services, schedule of performance and
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maximum compensation amount, in accordance with the provisions of this Agreement.
Compensation for on-call Services shall be specified by CITY in the Task Order, based on
whichever is lowest: the compensation structure set forth in Exhibit C, the hourly rates set
forth in Exhibit C-1, or a negotiated lump sum.
To accept a Task Order, CONSULTANT shall sign the Task Order and return it to CITY’s
Project Manager within the time specified by the Project Manager, and upon authorization
by CITY (defined as counter-signature by the CITY Project Manager), the fully executed
Task Order shall become part of this Agreement. The cumulative total compensation due
to CONSULTANT for all Task Orders issued under this Agreement shall not exceed the
amount of compensation set forth in Section 4. CONSULTANT shall only be compensated
for on-call Services performed under an authorized Task Order and only up to the
maximum compensation amount set forth in Section 4. Performance of and payment for
any on-call Services are subject to all requirements and restrictions in this Agreement.
SECTION 2. TERM.
The term of this Agreement shall be for five years from the effective date of this agreement unless
terminated earlier pursuant to Section 19 (Termination) of this Agreement.
SECTION 3. SCHEDULE OF PERFORMANCE. Time is of the essence in the performance
of Services under this Agreement. CONSULTANT shall complete the Services within the term of
this Agreement and in accordance with the schedule set forth in Exhibit B, entitled “SCHEDULE
OF PERFORMANCE”. Any Services for which times for performance are not specified in this
Agreement shall be commenced and completed by CONSULTANT in a reasonably prompt and
timely manner based upon the circumstances and direction communicated to the CONSULTANT.
CITY’s agreement to extend the term or the schedule for performance shall not preclude recovery
of damages for delay if the extension is required due to the fault of CONSULTANT.
SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to
CONSULTANT for performance of the Services shall be based on the compensation structure
detailed in Exhibit C, entitled “COMPENSATION,” including any reimbursable expenses
specified therein, and the maximum total compensation shall not exceed Two Hundred Fifty-
Nine Thousand, Two Hundred Thirty-Nine Dollars ($259,239.). The hourly schedule of rates,
if applicable, is set out in Exhibit C-1, entitled “SCHEDULE OF RATES.” Any work performed
or expenses incurred for which payment would result in a total exceeding the maximum
compensation set forth in this Section 4 shall be at no cost to the CITY.
Optional Additional Services Provision (This provision applies only if checked and a
not-to-exceed compensation amount for Additional Services is allocated below under this
Section 4.)
In addition to the not-to-exceed compensation specified above, CITY has set aside the not-
to-exceed compensation amount of One Hundred Forty Thousand Dollars ($140,000)
for the performance of Additional Services (as defined below). The total compensation for
performance of the Services, Additional Services and any reimbursable expenses specified
in Exhibit C, shall not exceed Three Hundred Ninety-Nine Thousand, Two Hundred
Thirty-Nine Dollars ($399,239), as detailed in Exhibit C.
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“Additional Services” means any work that is determined by CITY to be necessary for the
proper completion of the Project, but which is not included within the Scope of Services
described at Exhibit A. CITY may elect to, but is not required to, authorize Additional
Services up to the maximum amount of compensation set forth for Additional Services in
this Section 4. CONSULTANT shall provide Additional Services only by advanced,
written authorization from CITY as detailed in this Section. Additional Services, if any,
shall be authorized by CITY with a Task Order assigned and authorized by CITY’s Project
Manager, as identified in Section 13 (Project Management). Each Task Order shall be in
substantially the same form as Exhibit A-1, entitled “PROFESSIONAL SERVICES TASK
ORDER”. Each Task Order shall contain a specific scope of services, schedule of
performance and maximum compensation amount, in accordance with the provisions of
this Agreement. Compensation for Additional Services shall be specified by CITY in the
Task Order, based on whichever is lowest: the compensation structure set forth in Exhibit
C, the hourly rates set forth in Exhibit C-1, or a negotiated lump sum.
To accept a Task Order, CONSULTANT shall sign the Task Order and return it to CITY’s
Project Manager within the time specified by the Project Manager, and upon authorization
by CITY (defined as counter-signature by the CITY Project Manager), the fully executed
Task Order shall become part of this Agreement. The cumulative total compensation to
CONSULTANT for all Task Orders authorized under this Agreement shall not exceed the
amount of compensation set forth for Additional Services in this Section 4.
CONSULTANT shall only be compensated for Additional Services performed under an
authorized Task Order and only up to the maximum amount of compensation set forth for
Additional Services in this Section 4. Performance of and payment for any Additional
Services are subject to all requirements and restrictions in this Agreement.
SECTION 5. INVOICES. In order to request payment, CONSULTANT shall submit monthly
invoices to the CITY describing the Services performed and the applicable charges (including, if
applicable, an identification of personnel who performed the Services, hours worked, hourly rates,
and reimbursable expenses), based upon Exhibit C or, as applicable, CONSULTANT’s schedule
of rates set forth in Exhibit C-1. If applicable, the invoice shall also describe the percentage of
completion of each task. The information in CONSULTANT’s invoices shall be subject to
verification by CITY. CONSULTANT shall send all invoices to CITY’s Project Manager at the
address specified in Section 13 (Project Management) below. CITY will generally process and
pay invoices within thirty (30) days of receipt of an acceptable invoice.
SECTION 6. QUALIFICATIONS/STANDARD OF CARE. All Services shall be performed
by CONSULTANT or under CONSULTANT’s supervision. CONSULTANT represents that it,
its employees and subcontractors, if any, possess the professional and technical personnel
necessary to perform the Services required by this Agreement and that the personnel have
sufficient skill and experience to perform the Services assigned to them. CONSULTANT
represents that it, its employees and subcontractors, if any, have and shall maintain during the term
of this Agreement all licenses, permits, qualifications, insurance and approvals of whatever nature
that are legally required to perform the Services. All Services to be furnished by CONSULTANT
under this Agreement shall meet the professional standard and quality that prevail among
professionals in the same discipline and of similar knowledge and skill engaged in related work
throughout California under the same or similar circumstances.
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SECTION 7. COMPLIANCE WITH LAWS. CONSULTANT shall keep itself informed of
and in compliance with all federal, state and local laws, ordinances, regulations, and orders that
may affect in any manner the Project or the performance of the Services or those engaged to
perform Services under this Agreement, as amended from time to time. CONSULTANT shall
procure all permits and licenses, pay all charges and fees, and give all notices required by law in
the performance of the Services.
SECTION 8. ERRORS/OMISSIONS. CONSULTANT is solely responsible for costs,
including, but not limited to, increases in the cost of Services, arising from or caused by
CONSULTANT’s errors and omissions, including, but not limited to, the costs of corrections such
errors and omissions, any change order markup costs, or costs arising from delay caused by the
errors and omissions or unreasonable delay in correcting the errors and omissions.
SECTION 9. COST ESTIMATES. If this Agreement pertains to the design of a public works
project, CONSULTANT shall submit estimates of probable construction costs at each phase of
design submittal. If the total estimated construction cost at any submittal exceeds the CITY’s
stated construction budget by ten percent (10%) or more, CONSULTANT shall make
recommendations to CITY for aligning the Project design with the budget, incorporate CITY
approved recommendations, and revise the design to meet the Project budget, at no additional cost
to CITY.
SECTION 10. INDEPENDENT CONTRACTOR. CONSULTANT acknowledges and agrees
that CONSULTANT and any agent or employee of CONSULTANT will act as and shall be
deemed at all times to be an independent contractor and shall be wholly responsible for the manner
in which CONSULTANT performs the Services requested by CITY under this Agreement.
CONSULTANT and any agent or employee of CONSULTANT will not have employee status
with CITY, nor be entitled to participate in any plans, arrangements, or distributions by CITY
pertaining to or in connection with any retirement, health or other benefits that CITY may offer its
employees. CONSULTANT will be responsible for all obligations and payments, whether
imposed by federal, state or local law, including, but not limited to, FICA, income tax
withholdings, workers’ compensation, unemployment compensation, insurance, and other similar
responsibilities related to CONSULTANT’s performance of the Services, or any agent or
employee of CONSULTANT providing same. Nothing in this Agreement shall be construed as
creating an employment or agency relationship between CITY and CONSULTANT or any agent
or employee of CONSULTANT. Any terms in this Agreement referring to direction from CITY
shall be construed as providing for direction as to policy and the result of CONSULTANT’s
provision of the Services only, and not as to the means by which such a result is obtained.
SECTION 11. ASSIGNMENT. The parties agree that the expertise and experience of
CONSULTANT are material considerations for this Agreement. CONSULTANT shall not assign
or transfer any interest in this Agreement nor the performance of any of CONSULTANT’s
obligations hereunder without the prior written approval of the City Manager. Any purported
assignment made without the prior written approval of the City Manager will be void and without
effect. Subject to the foregoing, the covenants, terms, conditions and provisions of this Agreement
will apply to, and will bind, the heirs, successors, executors, administrators and assignees of the
parties.
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SECTION 12. SUBCONTRACTING.
Option B: Subcontracts Authorized: Notwithstanding Section 11 (Assignment) above, CITY
agrees that subcontractors may be used to complete the Services. The subcontractors authorized
by CITY to perform work on this Project are:
CONFLUENCE RESTORATION, INC.
721 Seaside Street, Santa Cruz, CA 95060
831-621-8084
CONSULTANT shall be responsible for directing the work of any subcontractors and for any
compensation due to subcontractors. CITY assumes no responsibility whatsoever concerning
compensation of subcontractors. CONSULTANT shall be fully responsible to CITY for all acts
and omissions of subcontractors. CONSULTANT shall change or add subcontractors only with
the prior written approval of the City Manager or designee.
SECTION 13. PROJECT MANAGEMENT. CONSULTANT will assign Gavin Archbald,
garchbald@harveyecology.com, as the CONSULTANT’s Project Manager to have supervisory
responsibility for the performance, progress, and execution of the Services and represent
CONSULTANT during the day-to-day performance of the Services. If circumstances cause the
substitution of the CONSULTANT’s Project Manager or any other of CONSULTANT’s key
personnel for any reason, the appointment of a substitute Project Manager and the assignment of
any key new or replacement personnel will be subject to the prior written approval of the CITY’s
Project Manager. CONSULTANT, at CITY’s request, shall promptly remove CONSULTANT
personnel who CITY finds do not perform the Services in an acceptable manner, are uncooperative,
or present a threat to the adequate or timely completion of the Services or a threat to the safety of
persons or property.
CITY’s Project Manager is Lam Do, Community Services Department, Open Space, Parks and
Golf Division, 3201 E. Bayshore Rd. Palo Alto, CA,: 94303, Telephone: (650) 496-6997. CITY’s
Project Manager will be CONSULTANT’s point of contact with respect to performance,
progress and execution of the Services. CITY may designate an alternate Project Manager from
time to time.
SECTION 14. OWNERSHIP OF MATERIALS. All work product, including without
limitation, all writings, drawings, studies, sketches, photographs, plans, reports, specifications,
computations, models, recordings, data, documents, and other materials and copyright interests
developed under this Agreement, in any form or media, shall be and remain the exclusive property
of CITY without restriction or limitation upon their use. CONSULTANT agrees that all copyrights
which arise from creation of the work product pursuant to this Agreement are vested in CITY, and
CONSULTANT hereby waives and relinquishes all claims to copyright or other intellectual
property rights in favor of CITY. Neither CONSULTANT nor its subcontractors, if any, shall
make any of such work product available to any individual or organization without the prior written
approval of the City Manager or designee. CONSULTANT makes no representation of the
suitability of the work product for use in or application to circumstances not contemplated by the
Scope of Services.CONSULTANT may retain copies of all work products for Consultant’s internal
record keeping pursuant to the terms in this Section
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SECTION 15. AUDITS. CONSULTANT agrees to permit CITY and its authorized
representatives to audit, at any reasonable time during the term of this Agreement and for four (4)
years from the date of final payment, CONSULTANT’s records pertaining to matters covered by
this Agreement, including without limitation records demonstrating compliance with the
requirements of Section 10 (Independent Contractor). CONSULTANT further agrees to maintain
and retain accurate books and records in accordance with generally accepted accounting principles
for at least four (4) years after the expiration or earlier termination of this Agreement or the
completion of any audit hereunder, whichever is later.
SECTION 16. INDEMNITY.
16.1. To the fullest extent permitted by law, CONSULTANT shall indemnify,
defend and hold harmless CITY, its Council members, officers, employees and agents (each an
“Indemnified Party”) from and against any and all demands, claims, or liability of any nature,
including death or injury to any person, property damage or any other loss, including all costs and
expenses of whatever nature including attorney’s fees, experts fees, court costs and disbursements
(“Claims”) resulting from, arising out of or in any manner related to performance or
nonperformance by CONSULTANT, its officers, employees, agents or contractors under this
Agreement, regardless of whether or not it is caused in part by an Indemnified Party.
16.2. Notwithstanding the above, nothing in this Section 16 shall be construed to
require CONSULTANT to indemnify an Indemnified Party from a Claim arising from the active
negligence or willful misconduct of an Indemnified Party that is not contributed to by any act of,
or by any omission to perform a duty imposed by law or agreement by, CONSULTANT, its
officers, employees, agents or contractors under this Agreement.
16.3. The acceptance of CONSULTANT’s Services and duties by CITY shall not
operate as a waiver of the right of indemnification. The provisions of this Section 16 shall survive
the expiration or early termination of this Agreement.
SECTION 17. WAIVERS. No waiver of a condition or nonperformance of an obligation under
this Agreement is effective unless it is in writing in accordance with Section 29.4 of this
Agreement. No delay or failure to require performance of any provision of this Agreement shall
constitute a waiver of that provision as to that or any other instance. Any waiver granted shall
apply solely to the specific instance expressly stated. No single or partial exercise of any right or
remedy will preclude any other or further exercise of any right or remedy.
SECTION 18. INSURANCE.
18.1. CONSULTANT, at its sole cost and expense, shall obtain and maintain, in
full force and effect during the term of this Agreement, the insurance coverage described in Exhibit
D, entitled “INSURANCE REQUIREMENTS”. CONSULTANT and its contractors, if any, shall
obtain a policy endorsement naming CITY as an additional insured under any general liability or
automobile policy or policies.
18.2. All insurance coverage required hereunder shall be provided through
carriers with AM Best’s Key Rating Guide ratings of A-:VII or higher which are licensed or
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authorized to transact insurance business in the State of California. Any and all contractors of
CONSULTANT retained to perform Services under this Agreement will obtain and maintain, in
full force and effect during the term of this Agreement, identical insurance coverage, naming CITY
as an additional insured under such policies as required above.
18.3. Certificates evidencing such insurance shall be filed with CITY
concurrently with the execution of this Agreement. The certificates will be subject to the approval
of CITY’s Risk Manager and will contain an endorsement stating that the insurance is primary
coverage and will not be canceled, or materially reduced in coverage or limits, by the insurer except
after filing with the Purchasing Manager thirty (30) days’ prior written notice of the cancellation
or modification. If the insurer cancels or modifies the insurance and provides less than thirty (30)
days’ notice to CONSULTANT, CONSULTANT shall provide the Purchasing Manager written
notice of the cancellation or modification within two (2) business days of the CONSULTANT’s
receipt of such notice. CONSULTANT shall be responsible for ensuring that current certificates
evidencing the insurance are provided to CITY’s Chief Procurement Officer during the entire term
of this Agreement.
18.4. The procuring of such required policy or policies of insurance will not be
construed to limit CONSULTANT’s liability hereunder nor to fulfill the indemnification
provisions of this Agreement. Notwithstanding the policy or policies of insurance,
CONSULTANT will be obligated for the full and total amount of any damage, injury, or loss
caused by or directly arising as a result of the Services performed under this Agreement, including
such damage, injury, or loss arising after the Agreement is terminated or the term has expired.
SECTION 19. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES.
19.1. The City Manager may suspend the performance of the Services, in whole
or in part, or terminate this Agreement, with or without cause, by giving ten (10) days prior written
notice thereof to CONSULTANT. If CONSULTANT fails to perform any of its material
obligations under this Agreement, in addition to all other remedies provided under this Agreement
or at law, the City Manager may terminate this Agreement sooner upon written notice of
termination. Upon receipt of any notice of suspension or termination, CONSULTANT will
discontinue its performance of the Services on the effective date in the notice of suspension or
termination.
19.2. In event of suspension or termination, CONSULTANT will deliver to the
City Manager on or before the effective date in the notice of suspension or termination, any and
all work product, as detailed in Section 14 (Ownership of Materials), whether or not completed,
prepared by CONSULTANT or its contractors, if any, in the performance of this Agreement. Such
work product is the property of CITY, as detailed in Section 14 (Ownership of Materials).
19.3. In event of suspension or termination, CONSULTANT will be paid for the
Services rendered and work products delivered to CITY in accordance with the Scope of Services
up to the effective date in the notice of suspension or termination; provided, however, if this
Agreement is suspended or terminated on account of a default by CONSULTANT, CITY will be
obligated to compensate CONSULTANT only for that portion of CONSULTANT’s Services
provided in material conformity with this Agreement as such determination is made by the City
Manager acting in the reasonable exercise of his/her discretion. The following Sections will
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survive any expiration or termination of this Agreement: 14, 15, 16, 17, 19.2, 19.3, 19.4, 20, 25,
27, 28, 29 and 30.
19.4. No payment, partial payment, acceptance, or partial acceptance by CITY
will operate as a waiver on the part of CITY of any of its rights under this Agreement, unless made
in accordance with Section 17 (Waivers).
SECTION 20. NOTICES.
All notices hereunder will be given in writing and mailed, postage prepaid, by
certified mail, addressed as follows:
To CITY: Office of the City Clerk
City of Palo Alto
Post Office Box 10250
Palo Alto, CA 94303
With a copy to the Purchasing Manager
To CONSULTANT: Attention of the Project Manager at the address of
CONSULTANT recited on the first page of this Agreement.
CONSULTANT shall provide written notice to CITY of any change of address.
SECTION 21. CONFLICT OF INTEREST.
21.1. In executing this Agreement, CONSULTANT covenants that it presently
has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which
would conflict in any manner or degree with the performance of the Services.
21.2. CONSULTANT further covenants that, in the performance of this
Agreement, it will not employ subcontractors or other persons or parties having such an interest.
CONSULTANT certifies that no person who has or will have any financial interest under this
Agreement is an officer or employee of CITY; this provision will be interpreted in accordance
with the applicable provisions of the Palo Alto Municipal Code and the Government Code of the
State of California, as amended from time to time. CONSULTANT agrees to notify CITY if any
conflict arises.
21.3. If the CONSULTANT meets the definition of a “Consultant” as defined by
the Regulations of the Fair Political Practices Commission, CONSULTANT will file the
appropriate financial disclosure documents required by the Palo Alto Municipal Code and the
Political Reform Act of 1974, as amended from time to time.
SECTION 22. NONDISCRIMINATION; COMPLIANCE WITH ADA.
22.1. As set forth in Palo Alto Municipal Code Section 2.30.510, as amended
from time to time, CONSULTANT certifies that in the performance of this Agreement, it shall not
discriminate in the employment of any person due to that person’s race, skin color, gender, gender
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identity, age, religion, disability, national origin, ancestry, sexual orientation, pregnancy, genetic
information or condition, housing status, marital status, familial status, weight or height of such
person. CONSULTANT acknowledges that it has read and understands the provisions of Section
2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the
penalties for violation thereof, and agrees to meet all requirements of Section 2.30.510 pertaining
to nondiscrimination in employment.
22.2. CONSULTANT understands and agrees that pursuant to the Americans
Disabilities Act (“ADA”), programs, services and other activities provided by a public entity to
the public, whether directly or through a contractor or subcontractor, are required to be accessible
to the disabled public. CONSULTANT will provide the Services specified in this Agreement in a
manner that complies with the ADA and any other applicable federal, state and local disability
rights laws and regulations, as amended from time to time. CONSULTANT will not discriminate
against persons with disabilities in the provision of services, benefits or activities provided under
this Agreement.
SECTION 23. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO
WASTE REQUIREMENTS. CONSULTANT shall comply with the CITY’s Environmentally
Preferred Purchasing policies which are available at CITY’s Purchasing Department, hereby
incorporated by reference and as amended from time to time. CONSULTANT shall comply with
waste reduction, reuse, recycling and disposal requirements of CITY’s Zero Waste Program. Zero
Waste best practices include, first, minimizing and reducing waste; second, reusing waste; and,
third, recycling or composting waste. In particular, CONSULTANT shall comply with the
following Zero Waste requirements:
(a) All printed materials provided by CONSULTANT to CITY generated from a
personal computer and printer including but not limited to, proposals, quotes, invoices, reports,
and public education materials, shall be double-sided and printed on a minimum of 30% or greater
post-consumer content paper, unless otherwise approved by CITY’s Project Manager. Any
submitted materials printed by a professional printing company shall be a minimum of 30% or
greater post-consumer material and printed with vegetable-based inks.
(b) Goods purchased by CONSULTANT on behalf of CITY shall be purchased in
accordance with CITY’s Environmental Purchasing Policy including but not limited to Extended
Producer Responsibility requirements for products and packaging. A copy of this policy is on file
at the Purchasing Department’s office.
(c) Reusable/returnable pallets shall be taken back by CONSULTANT, at no
additional cost to CITY, for reuse or recycling. CONSULTANT shall provide documentation from
the facility accepting the pallets to verify that pallets are not being disposed.
SECTION 24. COMPLIANCE WITH PALO ALTO MINIMUM WAGE ORDINANCE.
CONSULTANT shall comply with all requirements of the Palo Alto Municipal Code Chapter 4.62
(Citywide Minimum Wage), as amended from time to time. In particular, for any employee
otherwise entitled to the State minimum wage, who performs at least two (2) hours of work in a
calendar week within the geographic boundaries of the City, CONSULTANT shall pay such
employees no less than the minimum wage set forth in Palo Alto Municipal Code Section 4.62.030
for each hour worked within the geographic boundaries of the City of Palo Alto. In addition,
CONSULTANT shall post notices regarding the Palo Alto Minimum Wage Ordinance in
accordance with Palo Alto Municipal Code Section 4.62.060.
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SECTION 25. NON-APPROPRIATION. This Agreement is subject to the fiscal provisions of
the Charter of the City of Palo Alto and the Palo Alto Municipal Code, as amended from time to
time. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the
event that funds are not appropriated for the following fiscal year, or (b) at any time within a fiscal
year in the event that funds are only appropriated for a portion of the fiscal year and funds for this
Agreement are no longer available. This Section shall take precedence in the event of a conflict
with any other covenant, term, condition, or provision of this Agreement.
SECTION 26. PREVAILING WAGES AND DIR REGISTRATION FOR PUBLIC
WORKS CONTRACTS.
26.1. This Project is subject to prevailing wages and related requirements as
a “public works” under California Labor Code Sections 1720 et seq. and related regulations.
CONSULTANT is required to pay general prevailing wages as defined in California Labor
Code Section 1773.1 and Subchapter 3, Title 8 of the California Code of Regulations Section
16000 et seq., as amended from time to time. Pursuant to Labor Code Section 1773, the CITY has
obtained the general prevailing rate of per diem wages and the general rate for holiday and
overtime work in this locality for each craft, classification, or type of worker needed to execute
the contract for this Project from the State of California Department of Industrial Relations
(“DIR”). Copies of these rates may be obtained at the CITY’s Purchasing Department office. The
general prevailing wage rates are also available at the DIR, Division of Labor Statistics and
Research, web site (see e.g. http://www.dir.ca.gov/DLSR/PWD/index.htm) as amended from time
to time. CONSULTANT shall post a copy of the general prevailing wage rates at all Project job
sites and shall pay the adopted prevailing wage rates as a minimum. CONSULTANT shall
comply with all applicable provisions of Division 2, Part 7, Chapter 1 of the California Labor Code
(Labor Code Section 1720 et seq.), including but not limited to Sections 1725.5, 1771, 1771.1,
1771.4, 1773.2, 1774, 1775, 1776, 1777.5, 1782, 1810, 1813 and 1815, and all applicable
implementing regulations, including but not limited to Subchapter 3, Title 8 of the California Code
of Regulations Section 16000 et seq. (8 CCR Section 16000 et seq.), as amended from time to
time. CONSULTANT shall comply with the requirements of Exhibit E, entitled “DIR
REGISTRATION FOR PUBLIC WORKS CONTRACTS”, for any contract for public works
construction, alteration, demolition, repair or maintenance, including but not limited to the
obligations to register with, and furnish certified payroll records directly to, DIR.
SECTION 27. CLAIMS PROCEDURE FOR “9204 PUBLIC WORKS PROJECTS”. For
purposes of this Section 27, a “9204 Public Works Project” means the erection, construction,
alteration, repair, or improvement of any public structure, building, road, or other public
improvement of any kind. (Cal. Pub. Cont. Code § 9204.) Per California Public Contract Code
Section 9204, for Public Works Projects, certain claims procedures shall apply, as set forth in
Exhibit F, entitled “Claims for Public Contract Code Section 9204 Public Works Projects”.
This Project is a 9204 Public Works Project and is required to comply with the
claims procedures set forth in Exhibit F, entitled “Claims for Public Contract Code Section 9204
Public Works Projects”.
SECTION 28. CONFIDENTIAL INFORMATION.
28.1. In the performance of this Agreement, CONSULTANT may have access to
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CITY’s Confidential Information (defined below). CONSULTANT will hold Confidential
Information in strict confidence, not disclose it to any third party, and will use it only for the
performance of its obligations to CITY under this Agreement and for no other purpose.
CONSULTANT will maintain reasonable and appropriate administrative, technical and physical
safeguards to ensure the security, confidentiality and integrity of the Confidential Information.
Notwithstanding the foregoing, CONSULTANT may disclose Confidential Information to its
employees, agents and subcontractors, if any, to the extent they have a need to know in order to
perform CONSULTANT’s obligations to CITY under this Agreement and for no other purpose,
provided that the CONSULTANT informs them of, and requires them to follow, the confidentiality
and security obligations of this Agreement.
28.2. “Confidential Information” means all data, information (including without
limitation “Personal Information” about a California resident as defined in Civil Code Section
1798 et seq., as amended from time to time) and materials, in any form or media, tangible or
intangible, provided or otherwise made available to CONSULTANT by CITY, directly or
indirectly, pursuant to this Agreement. Confidential Information excludes information that
CONSULTANT can show by appropriate documentation: (i) was publicly known at the time it
was provided or has subsequently become publicly known other than by a breach of this
Agreement; (ii) was rightfully in CONSULTANT’s possession free of any obligation of
confidence prior to receipt of Confidential Information; (iii) is rightfully obtained by
CONSULTANT from a third party without breach of any confidentiality obligation; (iv) is
independently developed by employees of CONSULTANT without any use of or access to the
Confidential Information; or (v) CONSULTANT has written consent to disclose signed by an
authorized representative of CITY.
28.3. Notwithstanding the foregoing, CONSULTANT may disclose Confidential
Information to the extent required by order of a court of competent jurisdiction or governmental
body, provided that CONSULTANT will notify CITY in writing of such order immediately upon
receipt and prior to any such disclosure (unless CONSULTANT is prohibited by law from doing
so), to give CITY an opportunity to oppose or otherwise respond to such order.
28.4. CONSULTANT will notify City promptly upon learning of any breach in
the security of its systems or unauthorized disclosure of, or access to, Confidential Information in
its possession or control, and if such Confidential Information consists of Personal Information,
CONSULTANT will provide information to CITY sufficient to meet the notice requirements of
Civil Code Section 1798 et seq., as applicable, as amended from time to time.
28.5. Prior to or upon termination or expiration of this Agreement,
CONSULTANT will honor any request from the CITY to return or securely destroy all copies of
Confidential Information. All Confidential Information is and will remain the property of the CITY
and nothing contained in this Agreement grants or confers any rights to such Confidential
Information on CONSULTANT.
28.6. If selected in Section 30 (Exhibits), this Agreement is also subject to the
terms and conditions of the Information Privacy Policy and Cybersecurity Terms and Conditions.
SECTION 29. MISCELLANEOUS PROVISIONS.
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29.1. This Agreement will be governed by California law, without regard to its
conflict of law provisions.
29.2. In the event that an action is brought, the parties agree that trial of such
action will be vested exclusively in the state courts of California in the County of Santa Clara,
State of California.
29.3. The prevailing party in any action brought to enforce the provisions of this
Agreement may recover its reasonable costs and attorneys’ fees expended in connection with that
action. The prevailing party shall be entitled to recover an amount equal to the fair market value
of legal services provided by attorneys employed by it as well as any attorneys’ fees paid to third
parties.
29.4. This Agreement, including all exhibits, constitutes the entire and integrated
agreement between the parties with respect to the subject matter of this Agreement, and supersedes
all prior agreements, negotiations, representations, statements and undertakings, either oral or
written. This Agreement may be amended only by a written instrument, which is signed by the
authorized representatives of the parties and approved as required under Palo Alto Municipal
Code, as amended from time to time.
29.5. If a court of competent jurisdiction finds or rules that any provision of this
Agreement is void or unenforceable, the unaffected provisions of this Agreement will remain in
full force and effect.
29.6. In the event of a conflict between the terms of this Agreement and the
exhibits hereto (per Section 30) or CONSULTANT’s proposal (if any), the Agreement shall
control. In the event of a conflict between the exhibits hereto and CONSULTANT’s proposal (if
any), the exhibits shall control.
29.7. The provisions of all checked boxes in this Agreement shall apply to this
Agreement; the provisions of any unchecked boxes shall not apply to this Agreement.
29.8. All section headings contained in this Agreement are for convenience and
reference only and are not intended to define or limit the scope of any provision of this Agreement.
29.9. This Agreement may be signed in multiple counterparts, which, when
executed by the authorized representatives of the parties, shall together constitute a single binding
agreement.
SECTION 30. EXHIBITS. Each of the following exhibits, if the check box for such exhibit is
selected below, is hereby attached and incorporated into this Agreement by reference as though
fully set forth herein:
EXHIBIT A: SCOPE OF SERVICES
EXHIBIT A-1 PROFESSIONAL SERVICES TASK ORDER
EXHIBIT B: SCHEDULE OF PERFORMANCE
EXHIBIT C: COMPENSATION
EXHIBIT C-1: SCHEDULE OF RATES
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EXHIBIT D: INSURANCE REQUIREMENTS
EXHIBIT E: DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS
EXHIBIT F: CLAIMS FOR PUBLIC CONTRACT CODE SECTION 9204
PUBLIC WORKS PROJECTS
THIS AGREEMENT IS NOT COMPLETE UNLESS ALL SELECTED EXHIBITS
ARE ATTACHED.
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CONTRACT NO. C26196239
SIGNATURE PAGE
IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives
executed this Agreement as of the date first above written.
CITY OF PALO ALTO
____________________________
City Manager
APPROVED AS TO FORM:
__________________________
City Attorney or designee
TRIPLE HS, INC. dba H.T. HARVEY
AND ASSOCIATES
By: ________________________________
Name: ______________________________
Title: _______________________________
By: ________________________________
Name: ______________________________
Title: _______________________________
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Principal Restoration Ecologist
Max Busnardo
Jon Duke
COO
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EXHIBIT A
SCOPE OF SERVICES
CONSULTANT shall provide the Services detailed in this Exhibit A, entitled “SCOPE OF
SERVICES”. Notwithstanding any provision herein to the contrary, CONSULTANT’s duties and
services described in this Scope of Services shall not include preparing or assisting CITY with any
portion of CITY’s preparation of a request for proposals, request for qualifications, or any other
solicitation regarding a subsequent or additional contract with CITY. CITY shall at all times retain
responsibility for public contracting, including with respect to any subsequent phase of this project.
CONSULTANT’s participation in the planning, discussions, or drawing of project plans or
specifications shall be limited to conceptual, preliminary, or initial plans or specifications.
CONSULTANT shall cooperate with CITY to ensure that all bidders for a subsequent contract on
any subsequent phase of this project have access to the same information, including all conceptual,
preliminary, or initial plans or specifications prepared by CONSULTANT pursuant to this Scope
of Services.
CONSULTANT to provide the City of Palo Alto (CITY) with professional ecological services
for the Palo Alto Golf Course Reconfiguration Project’s (project) wetland habitat mitigation areas
consisting of 8.48 acres. Services are to conduct annual mitigation monitoring and reporting for
the City of Palo Alto Golf Course Reconfiguration Project as required by regulatory permits.
CONSULTANT to provide project management, wetland monitoring, annual reporting,
recommendations, and oversight and supervision of a subcontracted habitat restoration landscape
contractor. The scope of services includes, but is not limited to, wetland mitigation monitoring
and annual reporting for a period of five years, or until success criteria are met and the RWQCB
has indicated in writing that the City’s mitigation obligations have been met. It is understood that
all monitoring and reporting services shall be conducted in compliance with applicable
environmental regulations and permit requirements, based on the project’s Mitigation and
Monitoring Plan (MMP; ICF International 2016) and revised monitoring methodology approved
for the project by RWQCB and as described in Section 4-Monitoring and Adaptive Management
of the Remedial Wetland Mitigation Plan.
CONSULTANT to also provide support, assist with coordination of communications, and attend
meetings with the RWQCB.
CONSULTANT to complete the following tasks:
Task 1: Project Management and Coordination
A. Project initiation meeting
B. Annual pre-monitoring kick-off meeting
C. Review meeting to discuss results of annual monitoring and recommendations
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Task 2: Monitoring of Mitigation Wetlands
Monitoring of the two different types of mitigation wetlands, expanded and enhanced, will be
monitored and analyzed separately. Monitoring for both types will occur in the spring of each
calendar year, in March through May, dependent on rainfall.
A. BIOLOGICAL – Successful establishment of wetland vegetation will be based on health
and vigor of native, hydrophytic wetland species, absolute percent cover of both native,
hydrophytic and invasive species, and native plant species richness. The methodology for
absolute cover, health and vigor, and species richness described in September 2025
Monitoring and Adaptive Management (Section 4) of the Remedial Wetland Mitigation
Plan shall be used.
B. NATURAL RECRUITMENT – Natural recruitment will be recorded each monitoring
year.
C. HYDROLOGIC MONITORING – The extent and duration of ponding will be
monitored for all five years of the monitoring period in wetland groups two and six. A
qualified restoration ecologist will provide guidance and recommendations to the City to
potentially adjust the drain modifications.
D. PASPALUM MONITORING – The distribution of Paspalum will be assessed by a
qualified restoration ecologists within the 10-foot buffer around the 8.48 ac wetlands. Any
location where Paspalum turf has invaded the 10-foot buffer will be mapped during annual
monitoring.
E. PHOTO DOCUMENTATION – Annual color photos will be taken from the photo-
documentation locations shown in Figure 2 and Appendix B of the Remedial Wetland
Mitigation Plan.
Task 3: Data Analysis
Data analysis will be conducted as soon as possible following monitoring and collection of field
data. Data analysis will be conducted using standard spreadsheet, database, and statistical
computer applications. Data input will be spot-checked and results reviewed by a restoration
ecologist or consultant project manager.
Annual monitoring results will be compared with results from previous years to evaluate site
progress.
Task 4: Annual Reporting
Consultant shall prepare an annual monitoring report that adheres to the monitoring and reporting
methods described in Task 2, and in Section 4 of the Remedial Wetland Mitigation Plan (H. T.
Harvey & Associates, September 2025) to the City by September 1 of each calendar year with the
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first report due September 1, 2026. Annual reporting will be for five years. The City will review
and the final report will be transmitted by the City to the Regional Water Quality Control Board
by December 31 of each year.
Annual monitoring reports will be prepared by the restoration ecologist responsible for monitoring.
Pursuant to the U.S. Army Corps of Engineers South Pacific Division Mitigation Guidelines, the
annual report will include the following components.
• A vicinity map and a compensatory mitigation map.
• A description of the restoration site's location and characteristics, including a summary of
the restoration effort.
• A discussion of the previous year's management efforts.
• A summary of the monitoring methods and discussion of any modifications made to the
monitoring methods since the previous year.
• A summary of the results of the biological performance criteria monitoring and supporting
data included as an appendix.
• A summary of the results of hydrologic and salinity monitoring.
• A summary of the Paspalum TE turf monitoring.
• A discussion of remedial measures identified and implemented during the previous year
and a summary of the effectiveness of the remedial measures that were implemented.
• Adaptive management recommendations, including discussion of any concerns or areas
of inadequate performance and recommendations for remedial actions.
• Mitigation treatments: photo and other monitoring locations.
Task 5: Additional Services
Additional services could include, but not limited to, implementation of additional remedial
actions recommended by Consultant’s Restoration Ecologist to increase likelihood of meeting
project success criteria at the end of the monitoring period. This could include invasive species
removal, seeding or planting native container plants, or hydrologic modifications.
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EXHIBIT A-1
PROFESSIONAL SERVICES TASK ORDER
CONSULTANT shall perform the Services detailed below in accordance with all the terms and conditions
of the Agreement referenced in Item 1A below. All exhibits referenced in Item 8 are incorporated into this
Task Order by this reference. CONSULTANT shall furnish the necessary facilities, professional, technical
and supporting personnel required by this Task Order as described below.
CONTRACT NO.
OR PURCHASE ORDER REQUISITION NO. (AS APPLICABLE)
1A. MASTER AGREEMENT NO. (MAY BE SAME AS CONTRACT / P.O. NO. ABOVE):
1B. TASK ORDER NO.:
2. CONSULTANT NAME:
3. PERIOD OF PERFORMANCE: START: COMPLETION:
4 TOTAL TASK ORDER PRICE: $__________________
BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT $_______________
5. BUDGET CODE_______________
COST CENTER________________
COST ELEMENT______________
WBS/CIP__________
PHASE__________
6. CITY PROJECT MANAGER’S NAME & DEPARTMENT: ___________________________________
7. DESCRIPTION OF SCOPE OF SERVICES (Attachment A)
MUST INCLUDE:
SERVICES AND DELIVERABLES TO BE PROVIDED
SCHEDULE OF PERFORMANCE
MAXIMUM COMPENSATION AMOUNT AND RATE SCHEDULE (as applicable)
REIMBURSABLE EXPENSES, if any (with “not to exceed” amount)
8. ATTACHMENTS: A: Task Order Scope of Services B (if any): _____________________________
I hereby authorize the performance of the
work described in this Task Order.
APPROVED:
CITY OF PALO ALTO
BY:____________________________________
Name __________________________________
Title___________________________________
Date ___________________________________
this Task Order and warrant that I have
authority to sign on behalf of Consultant.
APPROVED:
COMPANY NAME: ______________________
BY:____________________________________
Name __________________________________
Title___________________________________
Date ___________________________________
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EXHIBIT B
SCHEDULE OF PERFORMANCE
CONSULTANT shall perform the Services so as to complete each milestone within the number
of days/weeks specified below. The time to complete each milestone may be increased or
decreased by mutual written agreement of the Project Managers for CONSULTANT and CITY so
long as all work is completed within the term of the Agreement. CONSULTANT shall provide a
detailed schedule of work consistent with the schedule below within 2 weeks of receipt of the
notice to proceed (“NTP”) from the CITY.
Milestones time (as specified below)
Coordination
Task 2: Monitoring of Mitigation Wetlands
Task 3: Data Analysis
Task 4: Annual Reporting
Task 5: Additional Services
Optional Schedule of Performance Provision for On-Call or Additional Services Agreements.
(This provision only applies if checked and only applies to on-call agreements per Section 1 or
agreements with Additional Services per Section 4.)
The schedule of performance shall be as provided in the approved Task Order, as detailed in
Section 1 (Scope of Services) in the case of on-call Services, or as detailed in Section 4 in the case
of Additional Services, provided in all cases that the schedule of performance shall fall within the
term as provided in Section 2 (Term) of this Agreement.
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EXHIBIT C
COMPENSATION
CITY agrees to compensate CONSULTANT for Services performed in accordance with the terms
and conditions of this Agreement, and as set forth in the budget schedule below. Compensation
shall be calculated based on the rate schedule attached as Exhibit C-1 up to the not to exceed
budget amount for each task set forth below.
CITY’s Project Manager may approve in writing the transfer of budget amounts between any of
the tasks or categories listed below, provided that the total compensation for the Services,
including any specified reimbursable expenses, and the total compensation for Additional Services
(if any, per Section 4 of the Agreement) do not exceed the amounts set forth in Section 4 of this
Agreement.
CONSULTANT agrees to complete all Services, any specified reimbursable expenses, and
Additional Services (if any, per Section 4), within this/these amount(s). Any work performed or
expenses incurred for which payment would result in a total exceeding the maximum amount of
compensation set forth in this Agreement shall be at no cost to the CITY.
BUDGET SCHEDULE
$ 36,324
$ 123,613
$ 21,568
$ 77,734
Reimbursable Expenses (if any) $
(if any, per Section 4) $ 140,000
REIMBURSABLE EXPENSES
CONSULTANT’S ordinary business expenses, such as administrative, overhead,
administrative support time/overtime, information systems, software and hardware,
photocopying, telecommunications (telephone, internet), in-house printing, insurance and
other ordinary business expenses, are included within the scope of payment for Services and
are not reimbursable expenses hereunder.
Reimbursable expenses, if any are specified as reimbursable under this section, will be
reimbursed at actual cost. The expenses (by type, e.g. travel) for which CONSULTANT will
be reimbursed are to be included in compensation for Tasks 1 through 5 of Budget Schedule.
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A. Travel outside the San Francisco Bay Area, including transportation and meals, if
specified as reimbursable, will be reimbursed at actual cost subject to the City of Palo Alto’s
policy for reimbursement of travel and meal expenses.
B. Long-distance telephone service charges, cellular phone service charges, facsimile
transmission and postage charges, if specified as reimbursable, will be reimbursed at actual
cost.
All requests for reimbursement of expenses, if any are specified as reimbursable under this
section, shall be accompanied by appropriate backup documentation and information.
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EXHIBIT C-1
SCHEDULE OF RATES
CONSULTANT’s schedule of rates is as follows:
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EXHIBIT D
INSURANCE REQUIREMENTS
CONSULTANTS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE
CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW,
AFFORDED BY COMPANIES WITH AM BEST’S KEY RATING OF A-:VII, OR HIGHER, LICENSED OR
AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA.
AWARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS AS SPECIFIED HEREIN.
REQUIRED TYPE OF COVERAGE REQUIREMENT
MINIMUM LIMITS
EACH
OCCURRENCE AGGREGATE
YES
YES
WORKER’S COMPENSATION
EMPLOYER’S LIABILITY
STATUTORY
STATUTORY STATUTORY STATUTORY
YES
GENERAL LIABILITY, INCLUDING
PERSONAL INJURY, BROAD FORM
PROPERTY DAMAGE BLANKET
CONTRACTUAL, AND FIRE LEGAL
LIABILITY
BODILY INJURY
PROPERTY DAMAGE
BODILY INJURY & PROPERTY
DAMAGE COMBINED.
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
YES
AUTOMOBILE LIABILITY,
INCLUDING ALL OWNED, HIRED,
NON-OWNED
BODILY INJURY
- EACH PERSON
- EACH OCCURRENCE
PROPERTY DAMAGE
BODILY INJURY AND PROPERTY
DAMAGE, COMBINED
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
YES
PROFESSIONAL LIABILITY,
INCLUDING, ERRORS AND
OMISSIONS, MALPRACTICE (WHEN
APPLICABLE), AND NEGLIGENT
PERFORMANCE
ALL DAMAGES $1,000,000
YES
THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONSULTANT, AT ITS SOLE COST
AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM
OF ANY RESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY
CONSULTANT
COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL
INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES.
I. INSURANCE COVERAGE MUST INCLUDE:
A. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR
CONSULTANT’S AGREEMENT TO INDEMNIFY CITY.
II. THE CONSULTANT MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE
AT THE FOLLOWING EMAIL: PURCHASINGSUPPORT@PALOALTO.GOV
III. ENDORSEMENT PROVISIONS WITH RESPECT TO THE INSURANCE AFFORDED TO ADDITIONAL
INSUREDS:
A. PRIMARY COVERAGE
WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED,
INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR
CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE
ADDITIONAL INSUREDS.
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B. CROSS LIABILITY
THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER
THE POLICY SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE
INSURED AGAINST ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE
INSUREDS, SHALL NOT INCREASE THE TOTAL LIABILITY OF THE COMPANY UNDER THIS
POLICY.
C. NOTICE OF CANCELLATION
1. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON
OTHER THAN THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE
CITY AT LEAST A THIRTY (30) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE
OF CANCELLATION.
2. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON-PAYMENT
OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A TEN (10) DAY
WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION.
EVIDENCE OF INSURANCE AND OTHER RELATED NOTICES ARE REQUIRED TO BE
FILED WITH THE CITY OF PALO ALTO SENT TO THE FOLLOWING EMAIL:
PURCHASINGSUPPORT@PALOALTO.GOV
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EXHIBIT E
DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS
This Exhibit shall apply only to a contract for public works construction, alteration, demolition,
repair or maintenance work, CITY will not accept a bid proposal from or enter into this Agreement
with CONSULTANT without proof that CONSULTANT and its listed subcontractors are
registered with the California Department of Industrial Relations (“DIR”) to perform public work,
subject to limited exceptions. City requires CONSULTANT and its listed subcontractors, if any,
to comply with all applicable requirements of the California Labor Code including but not limited
to Labor Code Sections 1720 through 1861, and all applicable related regulations, including but
not limited to Subchapter 3, Title 8 of the California Code of Regulations Section 16000 et seq.,
as amended from time to time. This Exhibit E applies in addition to the provisions of Section 26
(Prevailing Wages and DIR Registration for Public Works Contracts) of the Agreement.
CITY provides notice to CONSULTANT of the requirements of California Labor Code Section
1771.1(a), which reads:
“A contractor or subcontractor shall not be qualified to bid on, be listed in a bid proposal, subject
to the requirements of Section 4104 of the Public Contract Code, or engage in the performance of
any contract for public work, as defined in this chapter, unless currently registered and qualified
to perform public work pursuant to Section 1725.5. It is not a violation of this section for an
unregistered contractor to submit a bid that is authorized by Section 7029.1 of the Business and
Professions Code or Section 10164 or 20103.5 of the Public Contract Code, provided the
contractor is registered to perform public work pursuant to Section 1725.5 at the time the contract
is awarded.”
This Project is subject to compliance monitoring and enforcement by DIR. All contractors must
be registered with DIR per Labor Code Section 1725.5 in order to submit a bid. All subcontractors
must also be registered with DIR. No contractor or subcontractor may be awarded a contract for
public work on a public works project unless registered with DIR. Additional information
regarding public works and prevailing wage requirements is available on the DIR web site (see
e.g. http://www.dir.ca.gov) as amended from time to time.
CITY gives notice to CONSULTANT and its listed subcontractors that CONSULTANT is
required to post all job site notices prescribed by law or regulation.
CONSULTANT shall furnish certified payroll records directly to the Labor Commissioner (DIR)
in accordance with Subchapter 3, Title 8 of the California Code of Regulations Section 16461 (8
CCR Section 16461).
CITY requires CONSULTANT and its listed subcontractors to comply with the requirements of
Labor Code Section 1776, including but not limited to:
Keep accurate payroll records, showing the name, address, social security number, work
classification, straight time and overtime hours worked each day and week, and the actual per diem
wages paid to each journeyman, apprentice, worker, or other employee employed by, respectively,
CONSULTANT and its listed subcontractors, in connection with the Project.
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The payroll records shall be verified as true and correct and shall be certified and made available
for inspection at all reasonable hours at the principal office of CONSULTANT and its listed
subcontractors, respectively.
At the request of CITY, acting by its Project Manager, CONSULTANT and its listed
subcontractors shall make the certified payroll records available for inspection or furnished upon
request to the CITY Project Manager within ten (10) days of receipt of CITY’s request.
CITY requests CONSULTANT and its listed subcontractors to submit the certified
payroll records to CITY’s Project Manager at the end of each week during the Project.
If the certified payroll records are not provided as required within the 10-day period, then
CONSULTANT and its listed subcontractors shall be subject to a penalty of one hundred dollars
($100.00) per calendar day, or portion thereof, for each worker, and CITY shall withhold the sum
total of penalties from the progress payment(s) then due and payable to CONSULTANT.
Inform CITY’s Project Manager of the location of CONSULTANT’s and its listed subcontractors’
payroll records (street address, city and county) at the commencement of the Project, and also
provide notice to CITY’s Project Manager within five (5) business days of any change of location
of those payroll records.
Eight (8) hours labor constitutes a legal day’s work. CONSULTANT shall forfeit as a penalty to
CITY, $25.00 for each worker employed in the execution of the Agreement by CONSULTANT
or any subcontractor for each calendar day during which such worker is required or permitted to
work more than eight (8) hours in any one calendar day or forty (40) hours in any one calendar
week in violation of the provisions of the Labor Code, and in particular, Sections 1810 through
1815 thereof, except that work performed by employees of CONSULTANT or any subcontractor
in excess of eight (8) hours per day, or forty (40) hours during any one week, shall be permitted
upon compensation for all hours worked in excess of eight (8) hours per day, or forty (40) hours
per week, at not less than one and one-half (1&1/2) times the basic rate of pay, as provided in
Section 1815.
CONSULTANT shall secure the payment of workers’ compensation to its employees as provided
in Labor Code Sections 1860 and 3700 (Labor Code 1861). CONSULTANT shall sign and file
with the CITY a statutorily prescribed statement acknowledging its obligation to secure the
payment of workers’ compensation to its employees before beginning work (Labor Code 1861).
CONSULTANT shall post job site notices per regulation (Labor Code 1771.4(a)(2)).
CONSULTANT shall comply with the statutory requirements regarding employment of
apprentices including without limitation Labor Code Section 1777.5. The statutory provisions will
be enforced for penalties for failure to pay prevailing wages and for failure to comply with wage
and hour laws.
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Human Resources
Meeting Date: May 4, 2026
Report #:2602-6015
TITLE
Approval of Contract Amendment No. 3 to Contract Number C21179340 with Baker Tilly US, LLP
to Extend Term to June 30, 2028 with no increase to the not to exceed amount based on CAO
Committee Recommendation; CEQA Status – Not a Project.
RECOMMENDATION
The Council Appointed Officers Committee recommends that the City Council approve and
authorize the City Manager or their designee to execute Amendment No. 3 to Contract No.
C21179340 (Attachment A) with Baker Tilly US, LLC to extend the contract term for internal
audit services to June 30, 2028.
BACKGROUND
The CAO Committee met in December 2025 to review and discuss the options available for the
internal audit services contract and make a recommendation to Council on next steps for the
future direction for these services.
The City Auditor is a City Council appointed position. The City Charter defines the City
Auditor’s important role and furthers the City Council’s commitment to internal auditing,
transparency, and accountability in government. Per City Council direction on February 10,
2020 to consider outsourcing the Auditor function, the Council Appointed Officers (CAO)
Committee completed a request for proposals (RFP) process for outsourced internal auditing
services, and through the extensive procurement process, the Council selected Baker Tilly US,
LLP (Baker Tilly) to lead the City’s internal audit services.
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On September 28, 20201, the Council approved a contract with Baker Tilly for internal auditor
services in an amount not to exceed $1.3 million for a term beginning October 1, 2020, through
June 30, 2022.
2 and unanimously recommended that the Council
authorize staff and the Council Appointed Officers Committee Chair to refine the terms of a
contract renewal with Baker Tilly through June 30, 2026, negotiate terms for an option to
renew for up to two additional years, and align the review of the City Auditor‘s performance
with other CAO reviews. These terms were then approved by Council action at the June 2,
20253 Council meeting.
4 to discuss the option
to extend the contract up to two years or, alternatively, to renegotiate terms, and/or to explore
alternative service providers. Some considerations reviewed were the performance of Baker
Tilly and the effectiveness of the current contract terms, the continuity of service, and progress
of the workplan. After discussion, the following motion passed (3-0):
1 City Council, September 28, 2020, Resolution #11624, Staff Report #14232:
https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=81861&dbid=0&repo=PaloAlto&searchid=f060c732
-f401-47bd-9a37-9b72da6e8bff
2 Council Appointed Officer Committee, November 13, 2024, Item #1, Staff Report #2410-3733:
https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=52941&dbid=0&repo=PaloAlto&searchid=fbe3ded7
-74ed-4bf0-bd56-acd4f0725271
3 City Council, June 2, 2025, Item #8, Staff Report #2503-4422:
https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=6279&dbid=0&repo=PaloAlto&searchid=047b84cc-
4920-4c98-afd4-4b27aa6ca4d5
4 Council Appointed Officers Committee, December 10, 2025, Item #2, Staff Report #2511-5567:
https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=84034&dbid=0&repo=PaloAlto&searchid=a0820794
-5f83-46c4-90d8-ea30ee00f2fe&cr=1
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ANALYSIS
The table below outlines the term and compensation of the third amendment (attached):
Term This amendment will extend the contract through June 30, 2028.
Compensation Target value of compensation during this extension is $1,417,500. Annual
compensation for services under the contract was held flat, as approved in
the second amendment:
Year 7 (FY 2027): $708,750
Year 8 (FY 2028): $708,750
The NTE of the overall contract over the full amended contract term of eight
years is $5,552,500.
Funding for annual internal audit services is budgeted in the Office of the City Auditor in the
operating budget. Funding for this contract extension will be included in the FY 2027 Proposed
Budget and funding for future years of the contract is subject to City Council approval though
the annual appropriation of funds.
The CAO Committee engaged in a public discussion of this item on December 10, 2025.
Council action on this item is not a project as defined by CEQA because adopting an
amendment to this contract is an organizational or administrative activity that will not result in
direct or indirect physical changes in the environment. CEQA Guidelines section 15378(b)(5).
Attachment A: Amendment No. 3 To Contract No. C21179340 Between the City of Palo Alto and
Baker Tilly Advisory Group, LLP
:
Sandra Blanch, Human Resources Director
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AMENDMENT NO. 3 TO CONTRACT NO. C21179340
BETWEEN THE CITY OF PALO ALTO AND
BAKER TILLY ADVISORY GROUP, LP
This Amendment No. 3 (this “Amendment”) to Contract No. C21179340 (the “Contract”
as defined below) is entered into as April 14, 2026, by and between the CITY OF PALO ALTO, a
California chartered municipal corporation (“CITY”), and BAKER TILLY ADVISORY GROUP, LP, a
Illinois Limited Liability Partnership, located at 205 Michigan Avenue, Suite 2800, Chicago, IL
60601 (“CONSULTANT”). CITY and CONSULTANT are referred to collectively as the “Parties” in
this Amendment.
R E C I T A L S
A. The Contract (as defined below) was entered into by and between the Parties
hereto for the provision of performing internal auditor services in accordance with City Charter
and Municipal Code requirements, as detailed therein.
B. The Parties now wish to amend the Contract in order to execute the option to
extend for an additional Two (2) years of the contract term from June 30, 2026 to June 30, 2028,
as detailed herein.
NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions
of this Amendment, the Parties agree:
SECTION 1. Definitions. The following definitions shall apply to this Amendment:
a. Contract. The term “Contract” shall mean Contract No. C21179340
between CONSULTANT and CITY, dated October 1, 2020, as amended by:
Amendment No.1, dated April 18, 2022
Amendment No.2, dated May 12, 2025
b. Other Terms. Capitalized terms used and not defined in this Amendment
shall have the meanings assigned to such terms in the Contract.
SECTION 2. Section 2, “TERM” of the Contract is hereby amended to read as follows:
“The term of this Agreement shall be from June 30, 2026 through June 30, 2028 unless
terminated earlier pursuant to Section 19 of this Agreement.”
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No. 3 To Contract No.
C21179340 Between the
City of Palo Alto and Baker
Tilly Advisory Group, LLP
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SECTION 3. Legal Effect. Except as modified by this Amendment, all other provisions of
the Contract, including any exhibits thereto, shall remain in full force and effect.
SECTION 4. Incorporation of Recitals. The recitals set forth above are terms of this
Amendment and are fully incorporated herein by this reference.
(SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.)
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SIGNATURES OF THE PARTIES
IN WITNESS WHEREOF, the Parties have by their duly authorized representatives
executed this Amendment effective as of the date first above written.
CITY OF PALO ALTO
_____________________________________
City Manager
APPROVED AS TO FORM:
_____________________________________
City Attorney or Designee
BAKER TILLY ADVISORY GROUP, LP
Officer 1
By: ____________________________
Name: _________________________
Title: __________________________
Officer 2
By: ____________________________
Name: _________________________
Title: __________________________
Attachments:
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Ashley Deihr
Principal
Chris Kalafatis
Principal
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City of Palo Alto and Baker
Tilly Advisory Group, LLP
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Administrative Services
Meeting Date: May 4, 2026
Report #:2509-5223
TITLE
Approval of Second Amendment to the Lease Between the City of Palo Alto and Community
Skating, Inc. for the Tennis Facility at 3005 Middlefield Road, Extending the Term to January 1,
2040; CEQA Status – Categorically Exempt
RECOMMENDATION
Staff and the Policy & Services Committee recommend that Council authorize the City Manager
to execute the Second Amendment (Attachment A) to the lease between the City of Palo Alto
and Community Skating, Inc. for the tennis facility at 3005 Middlefield Road, extending the term
until January 1, 2040.
BACKGROUND
Community Skating, Inc. (CSI) currently leases the City owned property at 3005 – 3009
Middlefield Road to operate a community ice skating and recreational tennis facility at no
financial cost to the City. The original ice-skating agreement is dated January 26, 1990 and the
tennis agreement was originally dated April 20, 2001. Both contracts require a $100 rent
payment for the entire term and require CSI to be responsible for all operating expenses. On
April 27, 2009, the City Council unanimously passed a motion to approve Amendment No. 1 to
the lease for the tennis facility at 3005 Middlefield Road through April 19, 2026 and
Amendment No. 2 to lease for the ice-skating facility at 3009 Middlefield Road through January
1, 2040.1
The Board of Directors of CSI wrote a letter to the City Manager, dated April 22, 2024,
requesting an extension to their tennis lease (Attachment B). On March 10, 2026, the Policy and
Services Committee unanimously passed a motion to recommend the City Council approve the
Winter Lodge tennis contract and align its term with the Winter Lodge skating lease. As part of
1 City Council, April 27, 2009; Agenda Item #6, CMR 219:09,
https://www.cityofpaloalto.org/files/assets/public/v/1/agendas-minutes-reports/reports/city-manager-reports-
cmrs/year-archive/2009/cmr-219-09-winter-lodge.pdf
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its review of the Nonprofit Partnership Workplan related to long-term leases, the Committee
evaluated the public benefit, financial relationship, and stability of the partnership. The
Committee recommended staff explore feasibility of mutually beneficial maintenance
agreements and engage Winter Lodge through the lease renewal negotiations to explore
opportunities to provide free access to the tennis courts when not in use.3
ANALYSIS
FISCAL/RESOURCE IMPACT
STAKEHOLDER ENGAGEMENT
ENVIRONMENTAL REVIEW
ATTACHMENTS
APPROVED BY: Lauren Lai, Administrative Services Director
3 Policy & Services, March 10, 2026; Agenda Item #1, Report #2601-5854,
https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=86702&dbid=0&repo=PaloAlto&searchid=78feffcc-
6f05-44f8-9cd9-df51640bc20e&cr=1
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SECOND AMENDMENT TO LEASE
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Tenant shall use the Premises to provide a public recreational tennis facility
including tennis instruction (group and private lessons) and/or scheduled public
use. Commencing September 15, 2026, and every first and third Tuesday of
every month thereafter, Tenant will make at minimum one court available to the
public to register and use at no cost from 12:00pm to 1:30pm. The parties shall
evaluate the demand for free public use and impact to Tenant’s operation by
April 1, 2027. If the parties reasonably determine that public use of the courts
should be adjusted, the parties will promptly work in good faith to make changes.
Any adjustments to free public use shall take effect immediately.
B. Optional Services and Uses. Subject to the prior written approval of the City
Manager, Tenant may also use the Premises to provide additional services, activities
and uses which are ancillary to and compatible with the required services and uses
stated above and not in conflict with the required uses. Approval of optional uses shall
be within the sole discretion of the City Manager and subject to any other required City
approval.
C. Prohibited Uses. The above-listed required, permitted and optional services,
activities and uses shall be the only services and uses permitted upon or from the
Premises. Tenant agrees not to use the Premises for any other purpose nor to engage
in, or permit, any other business activity within or from the Premises.
D. Required Program Services and Uses. In order to ensure that the use of the
Premises is keeping with the intended uses as set forth above, Tenant annually shall
present to City reporting in such form and detail as City may reasonably request,
including the annual budget of Tenant within thirty (30) days after the Tenant has
approved said budget. Tenant also will present to City for its information an annual
report of the operation of the program in the Form 990 as submitted to the State of
California as required for a tax-exempt organization within one hundred and eighty (180)
days of the end of each budget or operating year. Tenant shall perform the program
services described in Exhibit A of this Second Amendment (Scope of Services &
Program Services), which may be modified by Tenant, in collaboration with City, from
time to time in accordance with the terms and conditions contained in this Lease. The
performance of all program services shall be to the reasonable satisfaction of City.
Tenant shall provide annual activity reports relating to the Scope of Services & Program
Services for the period ending June 30 of each year, by July 31 of each year,
throughout the Term. The first annual activity report is due July 31, 2027.
The report shall cover performance measures in Attachment A and information on
program services for the entire year.
3. Miscellaneous.
3.1 This Second Amendment sets forth the entire agreement between the
parties with respect to the matters set forth herein. There have been no additional oral
or written representations or agreements.
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3.2 Except as herein modified or amended, the provisions, conditions and
terms of the Lease shall remain unchanged and in full force and effect. In the case of
any inconsistency between the provisions of the Lease and this Second Amendment,
the provisions of this Second Amendment shall govern and control. The capitalized
terms used in this Second Amendment shall have the same definitions as set forth in
the Lease to the extent that such capitalized terms are defined therein and not redefined
in this Second Amendment.
3.3 Submission of this Second Amendment by City is not an offer to enter into
this Second Amendment but rather is a solicitation for such an offer by Tenant. City
shall not be bound by this Second Amendment until City has executed and delivered the
same to Tenant.
3.4 Tenant hereby represents to City that Tenant has dealt with no broker in
connection with this Amendment. Tenant agrees to indemnify and hold City harmless
from all claims of any other brokers claiming to have represented Tenant in connection
with this Second Amendment.
3.5 Each signatory of this Second Amendment represents hereby that he or
she has the authority to execute and deliver the same on behalf of the party hereto for
which such signatory is acting.
3.6 The Premises have not undergone an inspection by a Certified Access
Specialist (CASp), and a disability access inspection certificate, as described in
subdivision (e) of Section 55.53 of the California Civil Code, has not been issued for the
Premises. In accordance with Section 1938 of the California Civil Code, Tenant is
advised of the following:
“A Certified Access Specialist (CASp) can inspect the subject premises and
determine whether the subject premises comply with all of the applicable
construction-related accessibility standards under state law. Although state law
does not require a CASp inspection of the subject premises, the commercial
property owner or lessor may not prohibit the lessee or tenant from obtaining a
CASp inspection of the subject premises for the occupancy or potential
occupancy of the lessee or tenant, if requested by the lessee or tenant. The
parties shall mutually agree on the arrangements for the time and manner of the
CASp inspection, the payment of the fee for the CASp inspection, and the cost of
making any repairs necessary to correct violations of construction-related
accessibility standards within the premises.”
Accordingly, the parties hereby agree that Tenant shall have the right, but not the
obligation, to have a CASp inspect the Premises and determine whether the
Premises complies with all of the applicable construction-related accessibility
standards under state law. If it is determined that the Premises do not meet all
applicable construction-related accessibility standards, then Tenant shall
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promptly make, as soon as reasonably possible, but subject to Section XIV of the
Lease, any repairs necessary to correct violations of construction-related
accessibility standards identified by such inspection, at Tenant’s sole cost and
expense.
[Signature Page Follows]
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CSI for the Tennis Facility
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CSI for the Tennis Facility
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IN WITNESS WHEREOF, City and Tenant have entered into and executed this
Second Amendment as of the date first written above.
CITY:
CITY OF PALO ALTO,
a California municipal corporation
By: ______________________________
Name: ____________________________
Title: _____________________________
Dated: ____________________________
Approved as to form:
By: ______________________________
Name: ____________________________
Title: _____________________________
Dated: ____________________________
TENANT:
Community Skating, Inc.,
a California non-profit corporation
By: ______________________________
Name: ____________________________
Title: _____________________________
Dated: ____________________________
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Exhibit A
The purpose of the Winter Lodge Tennis Program is to provide a safe, inclusive, and
community-centered experience that promotes active living, skill development,
connection and fun, through recreational activities. Operating seven days a week,
Winter Lodge Tennis is a bustling tennis school serving thousands of people per month
on four high-quality, well-maintained courts, making high-quality tennis instruction
readily available to Palo Alto residents. Winter Lodge Tennis is committed to offering a
diverse range of high-quality tennis instruction—including group classes for all ages and
levels including mini-tennis, special needs tennis, camps, private lessons and
enrichment programs —while maintaining transparent operations, accessible pricing
and clear communication with all participants. Through thoughtful program planning,
scheduling, growth, ongoing evaluation, and continuous improvement, Winter Lodge
Tennis seeks to meet the evolving needs of the community and ensure the facility
remains a welcoming and vibrant destination for residents of all ages and abilities.
To enhance and broaden equitable access to high-quality, healthy recreational activities
for all ages and abilities in the Palo Alto area, with a focus on safety, inclusivity,
community outreach and year-round engagement.
Provide a wide range of classes, lessons and camps throughout the calendar
year, offering high-quality tennis instruction on top-quality, well-maintained courts
with no membership required, making tennis offerings inclusive and accessible to
all.
Continue to grow group classes and skill development programs (from beginner
to advanced) for youth and adults, including family friendly and intergenerational
offerings.
Maintain and promote individual tennis lessons, group instruction, special needs
instruction and mini-tennis instruction opportunities. Develop more partnerships
with local schools to increase community awareness and participation.
1. Increase total public participation by promoting lower-attended times, for example
morning court time for adult programs
2. Enroll more students in tennis classes by offering targeted adult/family friendly
programs and outreach.
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3. Schedule tennis offerings in response to community availability to maximize
tennis facility usage, offering family discounts and early bird discounts to help
with affordability and inclusivity.
Outcomes:
More community members of all ages engage in active, healthy outdoor
recreation.
Participants report higher physical activity levels and increased satisfaction with
recreational options.
Winter Lodge strengthens its role as a year-round Palo Alto recreational hub
beyond traditional winter sports.
Goal 2:
To position Winter Lodge Tennis as a premier destination for youth engagement, sport-
skills development, structured mentorship and positive social interaction. This includes
long term participation and leadership development especially for local, underserved
youth.
Strategies:
Offer high-quality tennis instruction to thousands of students annually, with a
focus on local youth participation.
Incorporate peer leadership development by expanding the volunteer youth
assistant program, allowing participants to progress from student to assistant and
future junior coach.
Partner with local schools and youth organizations to increase awareness and
sustained participation.
Objectives (SMART):
1. Expand youth assistant roles to support younger learners and train young
leaders.
2. Collaborate with local organizations to offer healthy youth events.
Outcomes:
Increased youth physical activity, confidence, and leadership skills and sense of
belonging (the tennis family).
Stronger ties between Winter Lodge Tennis and local educational/community
youth partners.
Greater access to healthy, fun activities for youth who may lack other outlets.
Goal 3:
To cultivate Winter Lodge tennis as a welcoming community gathering place that
supports social connection and mental well-being for residents of all demographics.
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Strategies:
Provide inclusive group reservation opportunities and classes for schools, nonprofits,
families, and community organizations.
Increase awareness of Winter Lodge Tennis as an affordable event venue.
Continue developing enrichment programs for elementary, middle and
homeschooled youth
Continue to Assist annually with the USTA Senior Games in Palo Alto
Collaborate regularly with Palo Alto Tennis to offer Junior Tournaments.
Objectives (SMART):
1. Collect participant satisfaction feedback with the goal of positive growth around
overall health, inclusivity and enjoyment.
2. Increase participation for community groups, nonprofits and social organizations
through targeted outreach.
Outcomes:
A stronger sense of community connectedness through shared recreational
experiences.
Broader participation by community residents, nonprofit partners, and social
groups.
Winter Lodge Tennis becomes known not just for high-quality tennis instruction
but also as a social and wellness touchstone in the area.
Increase community love for the sport of tennis.
Goal 4:
To deepen Winter Lodge Tennis support for local schools, underserved community
members, especially youth, through targeted access and formalized partnerships and
measurable community impact.
Strategies:
Continue offering discounted options, including for scholarship students and
community partners.
Partner with local school districts, nonprofit agencies, and social services to
ensure access for all populations.
Continue recreation aimed at mental health and social inclusion, leveraging
Winter Lodge Tennis as a safe, active respite from stress and screens for youth.
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Objectives (SMART):
1.Establish formal partnerships with additional community service organizations
focused on serving vulnerable populations, specifically youth.
2.Track and report youth participation levels and program retention to measure
reach and effectiveness.
Continued high participation levels among youth and families.
Increased awareness of Winter Lodge Tennis as a supportive, trusted resource
in addressing community health and positive youth development.
Enhanced mental health and well-being among participants through increased
access to physical recreation and social engagement.
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April 22, 2024
Mr. Ed Shikada
City Manager
City of Palo Alto
250 Hamilton Avenue, 7th Floor
Palo Alto, CA 94301
Re: Winter Lodge Tennis and Ice SkaNng Facility Lease Extensions
Dear Mr. Shikada,
The Board of Directors of Community SkaNng Inc. (CSI) dba Winter Lodge is wriNng to you and
the City of Palo Alto regarding our current leases for the ice skaNng and tennis faciliNes on
Middlefield Road. Our tennis lease expires in 2026. Our ice skaNng lease expires in 2040.
CSI is parNcularly interested in requesNng a long-term extension on our tennis site lease #326
with the City of Palo Alto. CSI may also be interested in a long-term extension for the ice skaNng
site lease #247 (dependent upon feedback received from the City).
Winter Lodge is delighted to be a prime example of a successful Public Private Partnership (PPP)
that exemplifies how these partnerships can provide quality services for the community at no
cost to the city. CSI very much understands that these leases allow CSI to serve as stewards of
City-owned recreaNonal lands. We also are proud partners of the City of Palo Alto in providing
effecNve and needed recreaNonal opportuniNes for Palo Alto. CSI would like to discuss our
common objecNves related to the future use of these properNes with the City.
We respec^ully request your preliminary input and direcNon regarding what you might need in
order to ulNmately recommend approval of one or both of the lease extensions to the city
council. We also welcome your insights as to how we can best bring about the requested lease
extensions.
With this in mind we also respec^ully request a meeNng with you (and your staff) to discuss our
lease extensions. In anNcipaNon of a meeNng, we have provided some background informaNon
regarding our leases and our recreaNonal programs for your review.
With regards,
Caroline Bliss, MD Linda Stebbins Jensen, MPA
President, CSI Board of Directors ExecuNve Director, Winter Lodge
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WINTER LODGE RECREATIONAL ICE SKATING AND TENNIS PROGRAMS
Winter Lodge has successfully operated a seasonal outdoor ice skaNng school and facility on this
site for nearly 70 years. The last 40 of those years have been under the current management of
the community based 501(c)(3) non-profit organizaNon, Community SkaNng Inc. Winter Lodge
has won numerous awards for our outstanding, one-of-a-kind skaNng school and outdoor ice
skaNng experience. The awards include NaNonal recogniNon for being the #1 ranked ice skaNng
experience in the USA.
Winter Lodge’s purely recreaNonal skaNng school is the only one of its kind and has been
recognized as the largest in the country. (See afachment for parNal list of awards and
recogniNon.) We are proud to be a part of the City’s Parks and RecreaNon Mission to provide
quality recreaNon for the ciNzens of Palo Alto, serving over 70,000 people a year. Of those
70,000 people, over 50% are Palo Alto ciNzens. Our weekday, weekend and evening programs
afract a wide variety of people and organizaNons. People of all ages, genders, skill levels, and
ethniciNes, from individuals to whole families and even non-skaters are regulars at Winter
Lodge.
Winter Lodge’s tennis program, led by InternaNonally Ranked Pro Kim Grant, is also robust. The
program offers both group and individual lessons to the public for all ages and abiliNes also fun,
recreaNonal mini-tennis and special needs tennis. On the other end of the spectrum, a number
of our serious and dedicated students have been awarded college scholarships for tennis. Our
courts are kept in top condiNon and the site is welcoming, with shaded areas for waiNng family
members. Like our ice skaNng classes, tennis classes are offered through Palo Alto schools as
well as the Palo Alto RecreaNon Department.
Ice skaNng and tennis have co-existed on this property for almost 70 years. The seasonal nature
of the two sports has proven to be a perfect balance for the full use of the site. The shared
parking and shared use of the restroom faciliNes work well and are fully uNlized. Between the
two uses, the site usage is close to capacity for most months of the year.
Winter Lodge’s skaNng and tennis leases sit on 3.7 acres of dedicated parkland, and the enNre
property is zoned Public Facility. In 1985, ProposiNons A and B were wrifen to preserve Winter
Lodge and outdoor ice skaNng in Palo Alto. Those proposiNons passed with record-breaking
numbers in support of the “land swap” to acquire the land on Middlefield Road as permanently
dedicated park land. Winter Lodge has been an excellent steward of this park land. Between the
two lease holds, we have invested over 2.5 million dollars over the past two decades in both
major improvements and smaller improvements designed to enhance the guest experience.
(See afached financial informaNon.)
As a prime example of a successful Public Private Partnership, Winter Lodge has accomplished
all of this at no cost to the City of Palo Alto, with the excepNon of the use of the dedicated park
land. Winter Lodge is 100% operaNonally funded and has weathered the ongoing storms of
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CSI Requesting Lease
Extension
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several recessions, the decline of the Midtown business district, declining numbers of children
in town and COVID. Winter Lodge is the longest-operaNng business in Midtown and the oldest
ice skaNng rink in the Bay Area. Winter Lodge is a favorite party venue choice for individuals,
schools, families and businesses (see afachment). Our facility enhancements (such as
fireplaces, accent lighNng, seasonal decoraNons, covered party areas, an arNficial snow
machine, hot chocolate dispensers and ice bears) all make an ice skate ouNng feel extra special
to our guests. Our history is long and storied. We do our best to honor that history while also
ensuring that we run an up-to-date, successful, sustainable program so that generaNons of
future Palo Alto ciNzens will have the opportunity to enjoy our unique programs and facility.
Our established record of offering top quality faciliNes and programming comes with costs. We
anNcipate that we will conNnue to need to invest millions of dollars over the next few decades
to keep our faciliNes in top condiNon, keep the aestheNcs updated and make regular upgrades.
We have an upcoming plan for an enNre overhaul of the electrical systems across the enNre
skaNng and tennis site which will likely cost over a half-million dollars. This project will require
years of planning. That, along with other necessary upcoming projects like resurfacing the
tennis courts and parking lots and conNnuing to upgrade our facility aestheNcs, gives us the
need to have a long-term lease in effect for both sites in order to jusNfy the huge outlay of costs
for these long-range projects.
In conclusion, Winter Lodge desires to conNnue to run our award-winning recreaNonal programs
in ice skaNng and tennis and to serve the youth and families of Palo Alto for decades to come.
The Nming for this lease extension will be helpful in moving our upgrade projects and
fundraising efforts forward. It will also ensure the conNnued top-notch operaNon of this well-
loved public facility. We respec^ully request your direcNon regarding what you might need in
order to ulNmately recommend approval of the lease extensions to the city council and bring
about the requested lease extensions.
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CSI Requesting Lease
Extension
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City Council
Staff Report
Report Type: CONSENT CALENDAR
Lead Department: City Clerk
Meeting Date: May 4, 2026
Report #:2604-6234
TITLE
SECOND READING: Ordinance of the Council of the City of Palo Alto Amending Chapter 9.73 (City
Policy Against Arbitrary Discrimination) of Title 9 (Public Peace, Morals and Safety) of the Palo
Alto Municipal Code to Add Sections 9.73.050 (Local CEDAW Principles) and 9.73.060 (Private
Right of Action) and Amend Associated Sections (FIRST READING: March 23, 2026, PASSED: 7-0)
BACKGROUND
The City Council heard this item on March 23, 2026 for a first reading and approved it on a 7-0
vote. No changes were made to the ordinance, and it is now before the City Council for a second
reading.
ATTACHMENTS
Attachment A: Ordinance of the Council of the City of Palo Alto Amending Chapter 9.73 (City
Policy Against Arbitrary Discrimination) of Title 9 (Public Peace, Morals and Safety) of the Palo
Alto Municipal Code to Add Sections 9.73.050 (Local CEDAW Principles) and 9.73.060 (Private
Right of Action) and Amend Associated Sections
APPROVED BY:
Mahealani Ah Yun, City Clerk
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NOT YET APPROVED
1
Ordinance No. ____
Ordinance of the Council of the City of Palo Alto Amending Chapter 9.73 (City
Policy Against Arbitrary Discrimination) of Title 9 (Public Peace, Morals and
Safety) of the Palo Alto Municipal Code to Add Sections 9.73.050 (Local CEDAW
Principles) and 9.73.060 (Private Right of Action) and Amend Associated
Sections
The Council of the City of Palo Alto does ORDAIN as follows:
SECTION 1. Findings and Declarations. The City Council finds and declares as follows:
A) On October 15, 2002, Council passed Resolution #8217, in support of United States
ratification of the United Nations Convention on the Elimination of all forms of
Discrimination Against Women (CEDAW).
B) The human rights principles found in CEDAW serve as a vital reference point as we
join with cities and counties across California and the United States in supporting
fairness for all genders throughout city operations.
C) On February 8, 2018, in response to Council Resolution #9653, the Human Relations
Commission passed a series of recommendations for Council consideration,
including the consideration of a CEDAW ordinance.
D) On October 1, 2018, Council directed staff to return with options for a City ordinance
endorsing CEDAW and affirming the City’s commitment to the principles of CEDAW.
E) The City Council desires to continue working towards measures t hat positively
address gender fairness city operations by passing an Ordinance affirming the
principles of CEDAW, which will be integrated into the City’s Wellness and Belonging
Initiatives.
F) The Council finds it appropriate to amend Chapter 9.73 (City Policy Against Arbitrary
Discrimination) to institute the principles of CEDAW in the City’s ongoing work to
ensure fairness for all Palo Altans.
SECTION 2. Section 9.73.040 (Definitions) of Chapter 9.73 (City Policy Against Arbitrary
Discrimination) of Title 9 (Public Peace, Morals and Safety) of the Palo Alto Municipal Code is
hereby amended to read as follows:
9.73.040 Definitions
Item 12
Attachment A - Ordinance
of the Council of the City of
Palo Alto Amending Chapter
9.73 (City Policy Against
Arbitrary Discrimination) of
Title 9 (Public Peace, Morals
and Safety) of the Palo Alto
Municipal Code to Add
Sections 9.73.050 (Local
CEDAW Principles) and
9.73.060 (Private Right of
Action) and Amend
Associated Sections
Item 12: Staff Report Pg. 2 Packet Pg. 120 of 172
2
The following words and phrases whenever used in this chapter shall be construed as
defined in this section, unless the context indicates otherwise.
(a) "City property" means any real property or facilities owned or controlled by the
city of Palo Alto.
(b) "Lease" means any non-residential lease, license or other permitted use of city
property.
(c) "Person" means natural person, joint venture, joint stock company, partnership,
association, club, company, corporation, business trust, organization, or the
manager, lessee, agent, servant, officer or employee of any of them.
(d) “CEDAW” means the United Nations Convention on the Elimination of All Forms of
Discrimination Against Women.
SECTION 3. Section 9.73.050 (Local CEDAW Principles) of Chapter 9.73 (City Policy Against
Arbitrary Discrimination) of Title 9 (Public Peace, Morals and Safety) of the Palo Alto Municipal
Code is hereby added as follows:
9.73.050 Local CEDAW Principles
It is the goal of the City to implement the principles underlying CEDAW to eradicate
discrimination against women and girls. The following CEDAW principles will be integrated in
the City’s role as a service provider, employer, and community and business partner to the
maximum extent possible, and as permitted by law. The City will approach this work through
cultivating experiences and appreciation, fostering a welcoming environment, and assessing
impacts for all. In implementing the CEDAW principles, the City shall ensure that its actions
align with its continued work to end all forms of arbitrary discrimination, as described in this
Chapter.
a) Economic Development
1. The City shall take appropriate measures to support the economic development
of women and girls in the city of Palo Alto through the elimination of any known
identified barriers, such as lack of childcare, workplace harassment, and equal
pay, in the areas of employment; licenses, permits, and registrations; and public
contracting with vendors and others.
b) Housing and Homelessness
1. The City recognizes that the root causes of homelessness and housing insecurity
are different for women and girls, and they may include factors such as gender -
based violence, substance abuse, mental health, poverty, and the uneven
distribution of caregiving responsibilities. It is a priority of the City to support
policies and programs that understand the unique housing needs of women and
girls.
Item 12
Attachment A - Ordinance
of the Council of the City of
Palo Alto Amending Chapter
9.73 (City Policy Against
Arbitrary Discrimination) of
Title 9 (Public Peace, Morals
and Safety) of the Palo Alto
Municipal Code to Add
Sections 9.73.050 (Local
CEDAW Principles) and
9.73.060 (Private Right of
Action) and Amend
Associated Sections
Item 12: Staff Report Pg. 3 Packet Pg. 121 of 172
3
2. The City shall ensure equal access to the full range of affordable, permanent
housing options for women and girls and their families, and to help eliminate
discriminatory policies in the housing market, recognizing the even greater
adversity faced by those in poverty, released from incarceration, long -term care,
survivors of gender-based violence or aging out of the foster care system.
3. The City shall support homelessness prevention and homeless services that are
designed to be gender-responsive to the needs of women and girls.
c) Political and Civic Engagement
1. It is a priority of the City to educate all individuals, including women and girls,
about their voting rights and to encourage civic engagement.
2. The City shall encourage voter registration among all eligible voters, including
women.
3. The City shall encourage civic and political engagement among women, including
seeking and holding public office, membership in local commissions, boards, or
task forces, and participating in community service.
d) Community, Library, and Transportation Services
1. The City shall take appropriate and timely measures within the scope of its
authority to support women and girls' equal access to community, library, and
transportation services and support survivors of sexual and gender -based
violence.
2. To the extent it has authority over such services or systems, the City shall
remove identified barriers to equal access to community, library, and
transportation services whenever the City becomes aware of such barriers.
e) Climate Action and Sustainability
1. The City shall, when appropriate, take gender-responsive, culturally responsive
measures to address the specific vulnerabilities and needs of women and girls in
measures related to climate change adaptation and sustainability, including in
vulnerability assessments and other efforts to identify and meaningfully include
communities that bear disproportionate risks or other burdens from climate
change or other forms of environmental harm.
SECTION 4. Section 9.73.060 (Private Right of Action) of Chapter 9.73 (City Policy Against
Arbitrary Discrimination) of Title 9 (Public Peace, Morals and Safety) of the Palo Alto Municipal
Code is hereby added as follows:
9.73.060 Private Right of Action
No provision in this Chapter is intended to, and shall not be interpreted to, create a
private right of action for damages or equitable relief on behalf of any person or entity against
the City or any of its officers or employees.
Item 12
Attachment A - Ordinance
of the Council of the City of
Palo Alto Amending Chapter
9.73 (City Policy Against
Arbitrary Discrimination) of
Title 9 (Public Peace, Morals
and Safety) of the Palo Alto
Municipal Code to Add
Sections 9.73.050 (Local
CEDAW Principles) and
9.73.060 (Private Right of
Action) and Amend
Associated Sections
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4
SECTION 5. Severability. If any provision, clause, sentence or paragraph of this
ordinance, or the application to any person or circumstances, shall be held invalid, such
invalidity shall not affect the other provisions of this Ordinance which can be given effect
without the invalid provision or application and, to this end, the provisions of this Ordinance
are hereby declared to be severable.
SECTION 6. Effective Date. This ordinance shall be effective on the thirty-first date after
the date of its adoption.
SECTION 7. CEQA. The City Council finds and determines that this Ordinance is not a
project within the meaning of section 15378 of the California Environmental Quality Act
(“CEQA”) because it has no potential for resulting in physical change in the environment, either
directly or ultimately. In the event that this Ordinance is found to be a project under CEQA, it is
subject to the CEQA exemption contained in CEQA Guidelines section 15061(b)(3) because it
can be seen with certainty to have no possibility of a significant effect on the environment in
that this Ordinance simply clarifies existing local regulations.
INTRODUCED:
PASSED:
AYES:
NOES:
ABSTENTIONS:
ABSENT:
ATTEST:
APPROVED:
______________________________ ____________________________
City Clerk Mayor
APPROVED AS TO FORM: ____________________________
City Manager
______________________________
City Attorney
Item 12
Attachment A - Ordinance
of the Council of the City of
Palo Alto Amending Chapter
9.73 (City Policy Against
Arbitrary Discrimination) of
Title 9 (Public Peace, Morals
and Safety) of the Palo Alto
Municipal Code to Add
Sections 9.73.050 (Local
CEDAW Principles) and
9.73.060 (Private Right of
Action) and Amend
Associated Sections
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City Council
Staff Report
Report Type: CONSENT CALENDAR
Lead Department: City Clerk
Meeting Date: May 4, 2026
Report #:2604-6280
TITLE
SECOND READING: Ordinance of the Council of the City of Palo Alto Creating New PAMC
Chapter 9.05 (Entertainment Zones) and Establishing an Entertainment Zone on a Portion of
California Avenue (FIRST READING: April 20, 2026; PASSED: 7-0)
BACKGROUND
The City Council heard this item on April 20, 2026 for a first reading and approved it on a 7-0
vote. No changes were made to the ordinance, and it is not before the City Council for a second
reading.
ATTACHMENTS
Attachment A: Ordinance of the Council of the City of Palo Alto Creating New PAMC Chapter
9.05 (Entertainment Zones) and Establishing an Entertainment Zone on a Portion of California
Avenue
APPROVED BY:
Mahealani Ah Yun, City Clerk
Item 13
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NOT YET APPROVED
1
Ordinance No. ____
Ordinance of the Council of the City of Palo Alto Creating New PAMC Chapter 9.05 (Entertainment
Zones) and Establishing an Entertainment Zone on a Portion of California Avenue
The Council of the City of Palo Alto does ORDAIN as follows:
SECTION 1. Findings and Declarations. The City Council finds and declares as follows:
A. In 2025, the State of California authorized cities to create entertainment zones with the
passage of SB 969 (2025), as codified in various sections of the Business and Professions
Code (BPC).
B. In compliance with BPC section 25692, City staff have notified and received feedback from
the Palo Alto Police Department about (1) potential health and safety impacts that might
be generated by the entertainment zone and strategies to mitigate those impacts; and (2)
the zone’s proposed boundaries, days and hours of operation, types of alcoholic
beverages permitted, and approved nonglass and nonmetal containers.
C. The City Council now desires to adopt this ordinance to create new Chapter 9.05 in the
Palo Alto Municipal Code (PAMC) to implement entertainment zones in Palo Alto. This
ordinance will also establish one entertainment zone on the car-free section of California
Avenue.
SECTION 2. New Chapter 9.05 (Entertainment Zones) is hereby added to Title 9 (Public
Peace, Morals, and Safety) of the Palo Alto Municipal Code to read as follows:
9.05.010 Purpose
The purpose of this Chapter is to implement Senate Bill 969 (2025) as codified in various
sections of the Business and Professions Code through the establishment and regulation of
entertainment zones to allow the purchase of open container alcoholic beverages for
consumption outside in common spaces such as plazas, public streets, sidewalks or public
rights-of-way during certain hours.
9.05.020 Definitions.
The definitions set forth in this Section shall govern the application and interpretation of this
Chapter.
"ABC" means the California Department of Alcoholic Beverage Control.
"Entertainment Zone" has the meaning set forth in Section 23039.5 of the California Business
and Professions Code, as may be amended; and their locations are described under PAMC
Section 9.05.050.
Item 13
Attachment A - Ordinance
of the Council of the City of
Palo Alto Creating New
PAMC Chapter 9.05
(Entertainment Zones) and
Establishing an
Entertainment Zone on a
Portion of California Avenue
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"Entertainment Zone Event" means an event that occurs within the boundaries of an
Entertainment Zone in compliance with state law, local laws, and regulations, including this
Chapter 9.05, and subject to the requirements of a special event permit issued by the City.
9.05.030 Entertainment zone requirements.
(a) All persons and legal entities of any type (including businesses and non-profit
organizations) sponsoring an Entertainment Zone Event, or selling alcoholic beverages at an
Entertainment Zone Event shall comply with all applicable state and local laws and regulations,
including:
1. All applicable ABC license and permitting requirements;
2. Sections 23357, 23358, 23396 of the California Business and Professions Code, as may
be amended from time to time regulating licensed beer manufacturers, licensed
winegrowers, and on-sale licensees, respectively;
3. All other laws governing the sale and consumption of alcoholic beverages; and
4. All permit requirements for special events issued by the City.
(b) Open alcoholic beverages may only be consumed within an Entertainment Zone during
an Entertainment Zone Event, subject to any other restrictions imposed by state or local law,
regulations, and permits.
(c) All open alcoholic beverages consumed during an Entertainment Zone Event may only
be purchased from a premises located within the Entertainment Zone that is authorized under
California Business and Professions Code Section 23357, 23358, 23396, as may be amended, to
permit the consumers to leave the premises with open containers of alcoholic beverages for
consumption off the premises, or an organization that is authorized by an ABC special event
permit or license to make such sales within the Entertainment Zone.
(d) All types of beer, wine, spirits, and other alcoholic beverages that are allowed for sale
and consumption by the State of California are permitted within an Entertainment Zone,
subject to any further restrictions imposed by regulations, license, or permit conditions. This
subsection does not authorize any specific ABC licensee to sell or serve types of alcohol not
permitted by their license.
9.05.040 Entertainment zone hours.
Outdoor consumption of alcoholic beverages during an Entertainment Zone Event shall only
occur between the hours of 12 noon and 10 p.m., inclusive, and on Sundays from 10 a.m. to 10
p.m., inclusive, subject to more restrictive days or times imposed by state or local law,
regulations, or permits.
9.05.050 Entertainment zone locations.
(a) Car-Free California Avenue. All plazas, pedestrian malls, public streets, sidewalks and
public rights-of-way that are located on either side of California Avenue between El Camino
Real and Birch Street are hereby designated as the California Avenue Entertainment Zone under
Sections 23039.5 and 25690 of the California and Business and Professions Code.
Item 13
Attachment A - Ordinance
of the Council of the City of
Palo Alto Creating New
PAMC Chapter 9.05
(Entertainment Zones) and
Establishing an
Entertainment Zone on a
Portion of California Avenue
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9.05.060 Entertainment zone implementation.
(a) Within 90 days of the establishment or modification of an Entertainment Zone, the
City’s Office of Economic Development, following consultation with the Police Department,
shall provide the following information to ABC, pursuant to Section 25690 of the California
Business and Professions Code:
1. A copy of the ordinance establishing or modifying the Entertainment Zone;
2. Information as may be necessary to identify the boundaries of the Entertainment
Zone;
3. The days and hours of operation of the Entertainment Zone;
4. The types of alcoholic beverages permitted within the Entertainment Zone; and
5. The approved nonglass and nonmetal containers in which alcoholic beverages may be
authorized.
(b) The City Manager or designee is authorized to promulgate regulations under this
Chapter 9.05. The regulations shall include the following requirements:
1. Establish a process or procedure to readily identify individuals purchasing or
consuming alcoholic beverages within the Entertainment Zone as being 21 years of age
or older;
2. Any person or organization seeking a special events permit shall comply with the
insurance requirements applicable to that permit; and
3. Any additional requirements not otherwise imposed by state or local law, including
but not limited to additional requirements for approved beverage containers, additional
restrictions on hours and/or location of operation for the Entertainment Zone Events,
and other time, place and manner restrictions.
(c) Upon adoption or revision of the regulations, the Office of Economic Development shall
transmit a copy of the regulations to ABC as applicable under ABC requirements.
(d) Any holder of an ABC license or permit that wishes to allow customers to leave the
premises with open containers of alcoholic beverages for consumption off the premises during
an Entertainment Zone Event shall provide the City a copy of the notice provided to ABC under
Section 23357, 23358, 23396, or any other applicable section of the California Business and
Professions Code, as applicable, at the same time such notice is provided to ABC.
(e) In compliance with Section 25692(b) of the California Business and Professions Code,
the City Manager or designee shall review the operation of the entertainment zone every two
years following the adoption of the entertainment zone to ensure that the entertainment zone
is being maintained in a manner that protects the health and safety of the general public. This
review shall be conducted in consultation with the Palo Alto Police Department and any reports
produced during the review shall be made available to the Department upon request.
SECTION 3. Section 9.04.010 of Chapter 9.04 (Alcoholic Beverages) of Title 9 (Public
Peace, Morals, and Safety) of the Palo Alto Municipal Code is hereby amended to add
subsection (c) to read as follows (new text in underline):
Item 13
Attachment A - Ordinance
of the Council of the City of
Palo Alto Creating New
PAMC Chapter 9.05
(Entertainment Zones) and
Establishing an
Entertainment Zone on a
Portion of California Avenue
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9.04.010 Streets, sidewalks, highways, alleys - Consumption of alcoholic beverages
prohibited.
(a) It shall be unlawful for any person to consume any alcoholic beverage upon any street,
sidewalk, highway or alley except as may be authorized by City Council.
(b) Notwithstanding subsection (a) of this section, alcoholic beverages may be consumed in a
city-owned or controlled right-of-way by patrons within legally permitted eating establishment
seating areas in accordance with, and subject to a conditional use permit issued pursuant to
§ 18.76.010 of this code.
(c) Notwithstanding subsection (a) of this section, alcoholic beverages may be consumed in a
city-owned or controlled right-of-way when duly permitted within an Entertainment Zone and
in full compliance with Chapter 9.05 (Entertainment Zones) and all applicable regulations, and
permit and license conditions.
SECTION 4. Severability. If any provision, clause, sentence or paragraph of this
ordinance, or the application to any person or circumstances, shall be held invalid, such
invalidity shall not affect the other provisions of this Ordinance which can be given effect
without the invalid provision or application and, to this end, the provisions of this Ordinance
are hereby declared to be severable.
SECTION 5. Effective Date. This ordinance shall be effective on the 31st day after
adoption.
//
//
//
//
//
Item 13
Attachment A - Ordinance
of the Council of the City of
Palo Alto Creating New
PAMC Chapter 9.05
(Entertainment Zones) and
Establishing an
Entertainment Zone on a
Portion of California Avenue
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SECTION 6. CEQA. The City Council finds and determines that this Ordinance is
categorically exempt under CEQA regulation 15305 (minor alterations in land use limitations)
and 15323 (normal operations of facilities for public gatherings).
INTRODUCED:
PASSED:
AYES:
NOES:
ABSTENTIONS:
ABSENT:
ATTEST:
____________________________ ____________________________
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
____________________________ ____________________________
Assistant City Attorney City Manager
____________________________
Economic Development Manager
____________________________
Chief of Police
Item 13
Attachment A - Ordinance
of the Council of the City of
Palo Alto Creating New
PAMC Chapter 9.05
(Entertainment Zones) and
Establishing an
Entertainment Zone on a
Portion of California Avenue
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City Council
Staff Report
From: City Manager
Report Type: ACTION ITEMS
Lead Department: Planning and Development Services
Meeting Date: May 4, 2026
Report #:2603-6132
TITLE
Receive Update and Provide Direction to Staff on the Implementation of Senate Bill 79 (SB 79)
and Work Related to the Downtown Housing Plan. CEQA Status: Exempt Under CEQA
Guidelines Section 15262.
RECOMMENDATION
Staff and the SB 79 / Downtown Housing Plan Ad Hoc recommend that the City Council:
1. Direct staff to prepare an emergency ordinance, for adoption prior to July 1, 2026,
excluding from SB 79 development standards all sites containing historic resources
designated on the City's local register as of January 1, 2025, effective through one year
following adoption of the City's 7th cycle housing element (estimated January 31, 2032).
2. Direct staff to prepare an ordinance or emergency ordinance increasing allowable
development capacity on eligible sites within one-half mile of a qualifying transit stop to
at least fifty percent (50%) of SB 79's applicable density and FAR standards, and
simultaneously exempting those sites from SB 79 development standards, effective
through one year following adoption of the City's 7th cycle housing element (estimated
January 31, 2032); and,
3.Direct staff to continue work to advance and complete the Downtown Housing Plan and
amend the scope of work as appropriate to take into consideration implementation of
SB 79.
EXECUTIVE SUMMARY
This item was originally scheduled as an Action Item for the March 9, 2026, City Council
meeting and was rescheduled to the May 4, 2026, City Council meeting.
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SB 79 will take effect on July 1, 2026. The legislation is intended to facilitate the upzoning of
land located in proximity to qualifying transit stations, thereby promoting transit-oriented
development through the establishment of new minimum standards for building height,
residential density, and floor area.
BACKGROUND
1 staff provided the City Council an update on the Downtown Housing Plan
and an overview of SB 79 and requested direction on the implementation of the State law. The
classification of qualifying transit stops, and key statutory provisions discussed in that report
are highlighted below:
Distance from Pedestrian Access Point to a TOD Stop
Tier 1 TOD Stop (Caltrain)Development
Standard Up to ¼-mile Up to ½-mile
“Adjacent” (within
200’) Bonus Height,
Density, and
Residential FAR
Height2
Density
Residential Floor
Area Ratio (FAR)
1 October 22, 2025 City Council Staff Report
https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=18007
2 Note that a qualifying project may use the standards in SB 79 as its base density under state density bonus law;
however, if the project exceeds the City’s height limit due to the provisions of SB 79, the City is not required to
grant an additional height waiver.
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The City Council appointed a SB 79 / Downtown Housing Plan Ad Hoc (Councilmembers Burt
and Lauing) to further evaluate the implications of SB 79. Staff met with the Ad Hoc Committee
three times (January 27th, March 25th, and on April 21st) since it was formed and presented
information of areas affected by SB 79, projected residential development, and policy options
for Council consideration.
ANALYSIS
SB 79 implementation is limited to sites that meet specific statutory eligibility criteria, including
applicable zoning designations and proximity to qualifying transit stops (Attachment A).
Metropolitan Transportation Commission (MTC), the region’s designated Metropolitan Planning
Organization, is required to prepare and publish official maps identifying applicable TOD zone
boundaries. Staff has seen preliminary drafts5 that are generally aligned with staff expectations.
On March 20, 2026, HCD issued an advisory memorandum providing clarifications on key SB 79
definitions to assist the state's Metropolitan Planning Organizations in completing their
required transit stop mapping prior to the law's July 1, 2026, effective date. The advisory
establishes HCD's interpretive positions on critical terms including transit stop tiers, qualifying
service types, and distance measurement methodology, and confirms that SB 79 will take effect
in seven California counties, including Alameda, Los Angeles, Sacramento, San Francisco, San
Mateo, Santa Clara, and San Diego.
Attachment A of this report is staff’s analysis of SB 79 TOD zones and eligible parcels within the
City. These maps closely align with the draft maps available on MTC’s webpage and is subject to
revision upon release of the official maps by MTC. The analysis discussed was presented to the
City Council’s Ad Hoc Committee.
A summary of the key takeaways from the analysis is provided below.
Key Takeaways
SB 79 significantly reshapes development near transit:
SB 79 establishes state-mandated minimums for height, density, and FAR on qualifying
parcels near Caltrain stations, substantially limiting the City’s discretion under existing
zoning and adopted planning frameworks. Cities can adopt an Ordinance temporarily
exempting sites that are: within a Very High Fire Hazard Severity Zone, subject to Flooding,
are Historic Resources listed in the local register, or that are zoned for high density
residential use providing at least 50% of the capacity required by SB 79.
5 https://experience.arcgis.com/experience/934f95609d6b45c5be0f8f0030c01436?draft=true
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Downtown Housing Plan Scope Is Smaller Than SB 79 Impact Area:
While the University Avenue/Downtown Priority Development Area encompasses
approximately 206 acres, the Downtown Housing Plan covers only 76 acres. In contrast, SB
79 affects a much larger area; approximately 325.23 acres, around the
Downtown/University Avenue Caltrain Station. This includes the Downtown Housing Plan
area, South of Forest Avenue (SOFA) areas, the transit center, and Stanford Shopping
Center.
Historic resources require consideration:
Downtown Palo Alto and the San Antonio Road area contain a high concentration of historic
properties or properties within historic districts. SB 79 includes limited provisions for the
protection of historic resources. The City is allowed to adopt an ordinance to temporarily
ensure these resources are protected. Ongoing protection is achievable only by adopting,
prior to January 31, 2032, a TOD Alternative Plan; even then, protected historic resources
cannot exceed 10% of the area of a TOD zone. SB 79 currently does not provide express
guidance on the treatment of historic districts, but it appears that a local ordinance may
protect historic districts in addition to individual historic structures. This is subject to change
with additional guidance from HCD.
Small parcel sizes limit realistic redevelopment potential:
Feasibility analysis indicates that parcels smaller than approximately 5,200 square feet are
less likely to redevelop, unless multiple parcels are combined. This reduces development
potential particularly in the Downtown/University Avenue area, limiting the number of sites
that can realistically take advantage of SB 79 standards. Historically, there has been little
interest for lot consolidation in Palo Alto, even with development incentives.
Redevelopment is likely to occur on a limited subset of eligible land:
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Downtown/University Avenue Transit Station Area: Approximately 163 acres
California Avenue Transit Station Area: Approximately 222 acres
San Antonio Transit Station Area: Approximately 32 acres
Further discounting is necessary, however, because redevelopment is costly and carries risk
for developers. Many property owners will be satisfied leaving their properties as-is despite
the potential for increased housing development. Staff anticipates that the vast majority of
single-family homeowners are unlikely to pursue apartment buildings on their property,
though some may choose to do so. A review of development activity over the past 25 years
shows that only ten percent of all parcels were redeveloped, with exceedingly few single-
family zoned properties converting to multifamily housing. Applying a ten percent
redevelopment factor consistent with this historical activity, and a one percent factor for
single-family zoned property, staff can estimate a theoretical range of future housing
production from SB 79 for each transit station area over the next 25 years. These figures are
not a projection or formal estimate; they are simply a calculation based on screening
criteria and existing baseline data and are subject to numerous variables that cannot be
fully accounted for through this type of screening-level analysis.
Downtown/University Avenue Transit Station Area: Approximately 1600 units
California Avenue Transit Station Area: Approximately 900 units
San Antonio Transit Station Area: Approximately 200 units
The above analysis does not account for recent changes to state law that promote greater
development potential including exemptions to the California Environmental Quality Act,
allowances for taller buildings, greater floor area, reduced parking requirements, and state
density bonus concessions and waivers and application streamlining. These measures add
greater predictability to the development process and may encourage additional property
owners to consider redevelopment. During discussions with the Council Ad Hoc Committee,
it was recognized that the city can reasonably anticipate greater housing production over
the next 25 years than it has experienced historically, due in large part to state mandates
promoting increased housing production. In reviewing projected housing demand, the Ad
Hoc considered a realistic capacity up to 20% increase – a potential doubling of the initial
staff estimate.
California Avenue faces the greatest zoning shift:
The California Avenue SB 79 area contains a substantial proportion of single-family zoned
property, including larger 10,000 square foot lots in the Old Palo Alto neighborhood that
would not require land consolidation to support apartment development. New construction
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built to SB 79 standards may appear contextually inconsistent with the historic
development pattern northeast of the Caltrain station.
The commercial areas along and near California Avenue have seen little significant
redevelopment in recent years, due in part to small lot sizes and the former requirement for
on-site parking, both of which made redevelopment economically impractical. The
interaction of SB 79 with other state laws could catalyze future housing or mixed-use
development, with uncertain implications for the area's retail environment. New
development may also lack coordinated design or placemaking, with larger parcels likely
proving more attractive for redevelopment than smaller ones.
San Antonio Road area raises unique historic district uncertainties:
San Antonio Road area includes large concentrations of Eichler homes and a designated
historic district. SB 79’s treatment of historic districts, where individual properties are not
separately listed, may be the subject of additional guidance from HCD. Because exclusion of
historic sites is limited to 10% of TOD land area after January 31, 2032, not all historic sites
can be protected in the long term.
The Economic Feasibility Analysis prepared for the Downtown Housing Plan remains
relevant:
While SB 79 provides development opportunities to owners of qualifying properties, the
feasibility of such projects depends on market conditions, broader market trends, site
constraints, competing uses, impact fees, and inclusionary housing requirements. This is
outlined in the Economic Feasibility Analysis prepared for the Downtown Housing Plan,
which was included as Attachment A to the October 22, 2025, City Council Staff Report.7
State Density Bonus Law:
SB 79 projects are eligible to use State Density Bonus Law to seek a density bonus,
incentives or concessions, waivers or reductions for development standards and parking
ratios.8 The density allowed under SB 79 serves as the base density for calculating the
density bonus. However, a project proposing a height allowed by SB 79 that is more than
the local height limit is ineligible for a waiver for additional height beyond that specified in
SB 79. This does not apply for 100% affordable projects located within one-half mile of a
major transit stop.
7 October 22, 2025 City Council Staff Report:
https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=18007
8 https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?sectionNum=65915&lawCode=GOV
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Assembly Bill (AB) 130 (2025):
AB 130 (2025)11 significantly streamlines housing development approvals in urban
communities by creating a new statutory exemption from CEQA for qualifying infill
residential projects. This means that qualifying residential or mixed-use infill projects
(generally up to 20 acres) that are consistent with either applicable Comprehensive Plan or
zoning regulations (as modified by SB 79 and/or state density bonus law) could bypass CEQA
review entirely, with an accelerated permitting timeline. The exemption applies to projects
meeting minimum density thresholds, and site qualifications (i.e., not located in floodplains,
fault zones, wetlands, or very high fire severity zones, not a hazardous waste site, and not
demolishing a historic structure).
AB 130 amends the Permit Streamlining Act by imposing strict timelines for City review and
approval. If the City does not act within 30 days following its objective standards review and
the required tribal consultation, a project may be deemed automatically approved. This
substantially reduces staff’s ability to present projects for review by the ARB, PTC, or City
Council.
Developers must comply with the new labor standards for 100% affordable housing projects
and buildings over 85 feet in height, meet air quality requirements, and perform
contamination cleanup as appropriate. The law does not alter State Density Bonus Law
provisions, including waivers and parking reductions. This means that in addition to the
increased FAR permitted under SB 79, developers could seek to waive maximum lot size
limitations in residential zones, setbacks, open space requirements, site coverage, daylight
plane requirements, or even retail preservation requirements through the State Density
Bonus Law.
Assembly Bill (AB) 2576 (2026):
AB 2576 (Harabedian), currently under consideration in the California Legislature, proposes
amendments to the provisions of SB 79. As currently drafted, AB 2576 would expand the
definition of eligible historic resources to expressly include resources in the local and State
registers. Additionally, it would remove the existing limitation that restricts the exclusion of
historic resource sites to no more than 10 percent of the total TOD zone area. At the time of
this report, AB 2576 remains pending in the State Legislature and has not been enacted.
Other bills under consideration during this legislative session that would amend SB 79 do
not have any impact to Palo Alto at this time but could be further amended before this
session ends.
11 https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202520260AB130
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Assembly Bill (AB) 2097 (2022):
AB 2097 (2022)13 eliminates minimum parking requirements for new development
(residential, commercial, and most other uses) located within one-half mile of high-quality
transit service (i.e., major transit stops such as the Caltrain Station). This essentially
prohibits local governments from enforcing minimum parking requirements for qualifying
projects. In Palo Alto, the State law is applicable to all properties that lie within one-half
mile radius of the University Avenue, California Avenue, and San Antonio Road Caltrain
Stations.
SB 79 Implementation Options:
On January 27, 2026, staff presented four potential approaches to implementing SB 79 to the
Ad Hoc, each reflecting varying levels of effort and scope. These approaches considered:
Existing and ongoing planning initiatives;
Anticipated additional workload and its potential impact on City Council priorities for
the current year;
Expected near term planning initiatives;
Staff capacity and available resources;
Fiscal implications;
Opportunities for community engagement; and
Review and approval timeline established by HCD pursuant to the state law.
While all four approaches advance the State’s pro-housing objectives, they differ in the degree
to which the City exercises local control. The City may choose to allow SB 79 to preempt local
codes, adopt an ordinance clarifying how SB 79 applies locally, including exclusion of historic
properties, adopt an ordinance upzoning and temporarily exempting non-historic parcels in the
TOD zones, and/or prepare a Transit-Oriented Development (TOD) Alternative Plan, based on
the considerations outlined above. Both an upzoning ordinance and a TOD Alternative Plan may
require environmental assessment and are subject to HCD review.
In addition, the Ad Hoc reviewed options related to the Downtown Housing Plan and
consideration of whether this effort should continue in light of SB 79 broader reach over the
Downtown area. Discontinuing work on the Downtown Housing Plan would not require the City
to return MTC grant funds that have already been paid to the City.
Four SB 79 implementation approaches are listed below. The Ad Hoc recommends a
combination of Approach 2 and 3 below.
13 https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202120220AB2097
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Approach 1: No action on SB 79
Under this approach, the default development standards established by SB 79 would
take effect on July 1, 2026, for all qualifying TOD zones. This approach requires no action
by the City and no review by HCD, resulting in automatic compliance with State law.
However, it provides the least amount of local control and community input and does
not protect historic resources.
Approach 2: Adopt a Local Implementing Ordinance / Protect Historic Resources
Under this approach, the default SB 79 standards would still take effect on July 1, 2026,
but the City would adopt an ordinance clarifying the application of SB 79 locally and
identify sites that are exempt. This approach provides additional local control and
community input and allows for the temporary exemption of historic resources.
Adoption of the ordinance would be subject to HCD review. If this option were selected,
staff would return before July 1, 2026, with an emergency ordinance on the consent
calendar and follow up with formal adoption through the Planning and Transportation
Commission (PTC) and City Council later in the year.
Approach 3: Rezone all TOD eligible sites to allow 50 percent of the SB 79 development
potential
Pursuant to Government Code Section 65912.161(b), sites can be exempted from SB 79
default standards through January 31, 2032, if they allow at least 50 percent of SB 79
base density standards. Under this approach, the City would amend the zoning to allow
TOD-eligible sites to meet this 50% threshold standard and subsequently exempt those
sites from SB 79 until January 31, 2032. This option provides the city approximately six
years to consider advancing a TOD Alternative Plan to address future housing
production and plan for infrastructure upgrades in anticipation of future growth. The
cities of Los Angeles and San Francisco are both reportedly exploring this option.15
Staff is evaluating the environmental review needs for this approach, which may delay
ordinance adoption. Any ordinance exempting sites would also be subject to post-
adoption HCD review and approval. Given the uncertainty about the timeline, there may
be an interim period during which SB 79 default standards would apply until the
rezoning becomes effective.
Approach 4: Prepare a TOD Alternative Plan
Under this approach, the default SB 79 standards would take effect on July 1, 2026,
while the City concurrently prepares a TOD Alternative Plan applicable to all TOD zones.
The TOD Alternative Plan could include targeted development standards, infrastructure
15 Cal Matters article, dated April 15, 2026: https://calmatters.org/housing/2026/04/sb-79-implementation/
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planning, and a structured community outreach process. Adoption of a TOD Alternative
Plan would render planning efforts such as the Downtown Housing Plan redundant and
may overlap to some degree with other work related to Housing Element Program 3.7:
Objective Design Standards for the SOFA area. The approach, however, provides greater
local control and public input, but would require several hundred thousand dollars for
consultant work and significant staff resources, both of which are currently
unaccounted for and resourced. The TOD Alternative Plan would be subject to HCD
review and approval.
Options for the Downtown Housing Plan:
As noted above, continuing with the Downtown Housing Plan with SB 79 Implementation
Approach 4 is not recommended, but remains an option for the other approaches.
The Council Ad Hoc recommends Option B to continue work on the Downtown Housing Plan.
Option A: Refocus the Downtown Housing Plan on Development Standards: Redirect the
Downtown Housing Plan effort toward developing objective standards for the
downtown area and exploring lot consolidation opportunities. This option would
produce updated development standards but not a completed area plan policy
document. It utilizes existing grant funding productively; supports future objective
standards for SOFA II; allows for nuanced solutions addressing small lot sizes and other
downtown constraints.
Option B: Resume and Complete the Downtown Housing Plan: Resume the full
Downtown Housing Plan effort, modeling the plan on SB 79 standards while addressing
other local considerations. This option results in a completed area plan policy
document.
Option C: Discontinue the Downtown Housing Plan: Discontinue work on the Downtown
Housing Plan, recognizing that SB 79 largely establishes development potential for the
area. This approach recaptures approximately $378K to the General Fund. Not
recommended in part due to concerns expressed about San Antonio Area Plan and
increased housing production in that area but also has reputational considerations that
may impact future funding opportunities.
NEXT STEPS
The Ad Hoc Committee recommends that the City Council take a phased implementation
strategy that balances compliance with the State law and preservation of local planning
objectives, while allowing the city additional time to evaluate whether preparation of a TOD
Alternative Plan is warranted. Under this framework, the city would:
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Prepare an emergency ordinance, for adoption prior to July 1, 2026, excluding from
SB 79 development standards all sites containing historic resources designated on
the City's local register as of January 1, 2025, effective through one year following
adoption of the City's 7th cycle housing element (estimated January 31, 2032).
Prepare an ordinance increasing allowable development capacity on eligible sites
within one-half mile of a qualifying transit stop to at least fifty percent (50%) of SB
79's applicable density and FAR standards, and simultaneously exempting those sites
from SB 79 development standards, effective through one year following adoption
of the City's 7th cycle housing element (estimated January 31, 2032); and,
Continue work to advance and complete the Downtown Housing Plan and amend
the scope of work as appropriate to take into consideration implementation of SB
79.
Based on Council recommendation, staff will proceed with implementation efforts for SB 79
and the required environmental analysis. For Approach 4, staff would need to return to Council
with a scope of work and cost estimate before seeking consultant solicitation for the planning
and environmental work. For Approaches 1-3 staff will engage the Council Ad Hoc as necessary.
Based on guidance for the Downtown Housing Plan – if the initiative continues, staff will engage
the Council Ad Hoc throughout the remainder of the year to strategize on continued analysis
and community engagement and strive to complete the project, likely in 2027.
FISCAL/RESOURCE IMPACT
Fiscal and resource impacts will vary based on Council direction and the associated level of
effort. Approaches 1 and 2 would not result in additional fiscal nor resource impacts. Approach
3 may require preparation of an environmental analysis, necessitating consultant support and
associated costs. However, these costs are not expected to exceed existing funding available
within the department’s budget.
If Council directs staff to pursue Approach 4, staff will return with a detailed scope of work and
cost estimate. Preliminary estimates indicate that the effort would cost approximately
$500,000 in additional funds beyond those already allocated for the Downtown Housing Plan,
including the grant funding from MTC.
STAKEHOLDER ENGAGEMENT
Staff and the members of the Ad Hoc Committee met with Senator Josh Becker and
Assemblymember Marc Berman, to discuss the implications of SB 79 as it relates to the City of
Palo Alto.
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Notably, SB 79 is intended as a streamlining mechanism to accelerate housing production near
transit, its implementation includes requirements for broader community engagement and
public input, including public hearings, if a local agency chooses to prepare a TOD Alternative
Plan. While no public engagement is required if the city takes no action on SB 79 (Approach 1),
Approaches 2, 3, and 4 would each involve varying levels of public engagement.
ENVIRONMENTAL REVIEW
ATTACHMENTS
APPROVED BY:
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Attachment A - Caltrain
Stations and TOD Eligible
Areas
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Attachment A - Caltrain
Stations and TOD Eligible
Areas
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Attachment A - Caltrain
Stations and TOD Eligible
Areas
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City Council
Staff Report
From: City Manager
Report Type: ACTION ITEMS
Lead Department: Human Resources
Meeting Date: May 4, 2026
Report #:2603-6172
TITLE
PUBLIC HEARING: Report on City Vacancies and Recruitment Efforts, Pursuant to Assembly Bill
2561; CEQA Status – Not a Project.
RECOMMENDATION
Receive informational report on City of Palo Alto Vacancies and Recruitment Efforts, Pursuant
to Assembly Bill (AB) 2561, Government Code 3502.3.
BACKGROUND
Assembly Bill 2561 (Government Code § 2502.3) passed in 2024, requires public agencies to
present the status of vacancies and recruitment and retention efforts in a public hearing before
the governing body prior to the adoption of the final budget. AB 2561 also allows recognized
labor groups to make a presentation on this topic during the same hearing.
ANALYSIS
Assembly Bill 2561 passed in 2024, requires public agencies to hold a public hearing to address
the status of job vacancies and recruitment and retention efforts at least once per fiscal year.
Staff will present the following required information at the public hearing: the status of
vacancies at the City of Palo Alto; information on the City of Palo Alto’s recruitment and
retention efforts; and any changes to policies, procedures or recruitment activities that may
lead to obstacles in the hiring process.
Under AB 2561, local agencies are required to provide further details regarding recruitment
processes if there is a vacancy rate of greater than 20% within a single bargaining unit. As of the
April 1, 2026, no bargaining unit has a vacancy rate exceeding 20%.
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The City developed a Recruitment Strategic Plan1 in 2024 and since has led to substantial
reductions in vacancies city-wide. The comprehensive recruitment strategic plan developed an
overall strategy for elevating the City’s recruitment model to reduce the citywide vacancy rate.
Additionally, in 2024, the City Auditor conducted a review of recruitment practices and
succession planning focused on determining the efficiency and effectiveness of the Recruitment
Strategic Plan and overall process improvement.2
Key Highlights:
-Current vacancy rate (citywide): 10%
-Average time-to-fill (Position to Hire Date): 89 days
-Between July 1, 2025 through April 2026, the City filled approximately 140 positions.
Vacancies By Bargaining Unit
Bargaining Unit FTE Vacancies Percent (%)
SEIU 616.60 73.5 11.9%
UMPAPA 54 5 9%
IAFF 99 3 3%
FCA 4 0 0%
PAPOA 78 10 12.8%
PMA 7 0 0%
Bargaining Unit Description:
SEIU – Service Employees International Union, Local 521: Represents entry level to
senior level classifications throughout the City, examples include Librarians,
Maintenance Mechanics, Recreation Coordinators, Administrative Associates, Planners,
Engineers, and Customer Service representatives.
UMPAPA – Utilities Managers and Professional Employees of Palo Alto: Represents
Utilities Supervisors, Managers, and Assistant Directors.
IAFF – International Association of Fire Fighters, Local 1319: Represents Firefighters,
Apparatus Operators, Captains and Inspectors
FCA – Fire Chiefs Association of Palo Alto (associated with IAFF): Represents Battalion
Chiefs
PAPOA – Palo Alto Peace Officers Association: Represents Police Officers, Agents, and
Sergeants
PMA – Police Management Association: Represents Police Lieutenants and Captains
1 May 6, 2024 City Council Meeting, Staff Report 2404-2890:
2 December 10, 2024 Policy & Services Committee, Report #2410-3633:
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Some of the many initiatives and accomplishments completed to improve the city’s recruitment
and retention include:
FISCAL/RESOURCE IMPACT
STAKEHOLDER ENGAGEMENT
ENVIRONMENTAL REVIEW
APPROVED BY:
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City Council
Staff Report
From: City Manager
Report Type: INFORMATION REPORTS
Lead Department: Administrative Services
Meeting Date: May 4, 2026
Report #:2512-5679
TITLE
Q4 CY 2025 Sales Tax Digest (October - December 2025)
ANALYSIS
This report transmits information regarding the City of Palo Alto’s sales tax receipts for the fourth quarter
(October - December) of 2025. Highlights from the report are included below. Detailed discussion and
data can be found in the Sales Tax Digest (Attachment A).
Regional and statewide sales tax - Benchmark Year (Attachment A, pg. 2):
Palo Alto: decreased by 5.1%
San Francisco Bay Area: decreased by 2.3%
California statewide: decreased by 2.9%
City’s most significant activity – Benchmark Year (Attachment A, pg. 1):
Business to Business – Leasing: decreased by 82.2%; represents 3.6% of total sales tax
Transportation – New autos: decreased by 12.2%; represents 12.0% of total sales tax
These two segments account for over 15% of Palo Alto’s total sales tax for the period and were the
primary drivers of the overall decline.
County Pool – 2024Q4 compared to 2025Q4 (Attachment A, pg. 4)
Total County Pool: Increased by 23.1% or $7.2 million, from $31.3 million to $38.4 million
Total Jurisdiction Share:
o Percent of county pool increased by 80 basis points, from 5.9% to 6.7%
o Total share increased $0.7 million, from $1.8 million to $2.6 million
Over the most recent four quarters, the City received approximately $7.5 million from the County Pool,
representing about 22% of the City’s total sales tax revenue of $35.7 million during that period. Further
analysis is required to determine the factor(s) contributing to this increase and whether it’s an isolated
or ongoing increase.
ATTACHMENTS
Attachment A: 2025 Q4 Sales Tax Digest Summary
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City of Palo Alto
Sales Tax Digest Summary
Collections through December 2025
Sales October through December 2025 (2025Q4)
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California Overview
For the year ending in the fourth quarter of 2025, cash receipts increased 2.2% statewide and S.F. Bay
Area increased 3.6% in the same period. However, when adjusted for non-period-related payments, the
overall economic sales tax activity for the year ending in the fourth quarter of 2025 decreased by 2.9%
statewide and decreased by 2.3% in S.F. Bay Area.
City of Palo Alto
For the year ending in the fourth quarter of 2025, sales tax cash receipts for the city increased by 3.6%
from the prior year. However, when adjusted for non-period related payments, the overall economic sales
tax activity in Palo Alto for the year ending in the fourth quarter of 2025 decreased by 5.1%. The decrease
in Palo Alto's sales tax revenue was primarily driven by the leasing and new auto sales sectors. On an
economic basis, leasing sales tax revenue decreased by 82.2%, representing 3.6% of the city's total sales
tax for the year ending in the fourth quarter of 2025. New auto sales decreased by 12.2% over the same
period, contributing 12.0% to the total sales tax revenue for the same period.
Same quarter sales tax cash receipts increased by 2.5% in California from Q4 2024 to Q4 2025. Palo Alto
citywide sales tax cash receipts increased by 16.9% over the Q4 2024 to Q4 2025 period. In addition to
negative misallocations in Q4 2024, it should be noted that the primary reason for the 16.9% increase this
quarter was due to a significant increase in cash-related activities in the current period. Consequently, on
an economic basis (actual sales activity solely during the Q4 quarter) there was a 5.1% decline. The key
reason for the Palo Alto economic decrease this period was a significant decline in the leasing segment,
which decreased by 94.4% or $1,413,643 in sales tax compared to Q4 2024. According to the California
New Car Dealers Association (CNCDA), California’s new light vehicle registrations increased by 3.3% in
2025Q4.
Item A
Attachment A - 2025 Q4
Sales Tax Digest Summary
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Regional Overview
The chart on page two shows adjusted economic benchmark year amounts, which shows the year ended
fourth quarter of 2025 compared to the year ended fourth quarter of 2024 (benchmark years are rolling
annual comparisons through the current quarter). The divergence in growth rates between California and
Palo Alto is attributed to the stronger overall performance of sales tax generating businesses statewide
compared to those operating in Palo Alto.
Regional Overview Chart (Economic)
BENCHMARK YEAR 2025Q4 COMPARED TO BENCHMARK YEAR 2024Q4
32.7 / 12.0 29.9 / -0.8 27.2 / 2.6 31.2 / 2.0 38.1 / -15.3 28.0 / 2.0 36.4 / 0.5 27.8 / 0.1
Food Products 21.4 / 6.9 22.1 / -1.1 24.1 / 2.1 17.5 / -4.1 15.1 / -13.4 24.0 / -0.3 18.7 / 1.0 19.8 / 1.6
Transportation 15.7 / -10.8 21.6 / -6.2 18.2 / -3.7 24.9 / -10.7 21.2 / -15.2 22.2 / -4.7 22.0 / -3.8 27.1 / -5.1
Business to Business 23.0 / -30.9 15.7 / -4.2 19.1 / -14.1 14.3 / -3.2 15.6 / -7.7 15.9 / 0.2 10.5 / -0.1 10.5 / 0.5
Misc/Other 7.3 / 36.5 10.6 / -3.4 11.5 / 2.9 12.2 / 0.0 10.1 / -14.1 10.0 / -1.1 12.4 / -4.5 14.8 / -5.5
Total 100.0 / -5.1 100.0 / -2.9 100.0 / -2.3 100.0 / -5.2 100.0 / -13.8 100.0 / -0.7 100.0 / -1.1 100.0 / -1.9
% of Total / % Change
% of Total / % Change
% of Total / % Change
Item A
Attachment A - 2025 Q4
Sales Tax Digest Summary
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Leasing
3.7%
Restaurants
19.5%
Auto Sales -New
12.1%
Office Equipment
8.2%
Apparel Stores
8.0%All Other
48.5%
Net Pools & Adjustments
28.5%
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
Quarterly Benchmark Year
Gross Historical Sales Tax Cash Receipts by Benchmark Year and Quarter (Before Adjustments)
Net Cash Receipts for Benchmark Year Fourth Quarter 2025: $35,699,342
*Benchmark year (BMY) is the sum of the current and 3 previous quarters (2025Q4 BMY is sum of 2025 Q4, 2025 Q3, 2025 Q2, 2025 Q1)
Item A
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Sales Tax Digest Summary
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2023Q1 2023Q2 2023Q3 2023Q4 2024Q1 2024Q2 2024Q3 2024Q4 2025Q1 2025Q2 2025Q3 2025Q4
Quarter
Over
Quarter
Total County Pool 24,937,663 27,690,772 22,345,960 24,427,230 25,411,165 25,387,888 23,265,567 31,312,972 27,268,380 27,503,817 28,287,141 38,540,707 23.1%
Jurisdiction Share 1,499,631 1,755,562 1,489,193 1,638,965 1,523,986 1,611,681 1,377,891 1,834,044 1,673,551 1,685,234 1,595,260 2,571,498 40.2%
Jurisdiction % of Total 6.0% 6.3% 6.7% 6.7% 6.0% 6.3% 5.9% 5.9% 6.1% 6.1% 5.6% 6.7%
Anderson Honda Magnussen's Toyota Shreve & Co.
Apple Stores Mercedes Benz of Palo Alto Stanford Health Care
Audi Palo Alto Neiman Marcus Tesla
Hermes Nordstrom Tesla Lease Trust
HP Enterprise Services Restoration Hardware Tiffany & Company
JP Morgan Chase Bank Richemont Varian Medical Systems
Louis Vuitton Sephora Volvo Cars Palo Alto
Lucile Packard Children's Hospital Shell Service Stations Wilkes Bashford
Macy's Department Store
County Pool Results
The California sales tax system is known as a "sales and use tax" system. County Pool revenues primarily
reflect the use tax generated from transactions that do not involve a physical point of sale within
California. Businesses report their use tax quarterly, based on activity conducted throughout the county.
The County Pool is distributed each quarter based on a proportional formula. A jurisdiction's quarterly
percentage is determined by dividing its total gross sales tax receipts for the quarter by the total gross
sales tax receipts of all jurisdictions within the county. Consequently, if Palo Alto's gross sales tax receipts
increase relative to the rest of the county during a quarter, the city's share of the total County Pool will
also increase. This quarterly percentage is multiplied by the total countywide pool to determine the
jurisdiction's quarterly County pool revenue.
In the fourth quarter of 2025, cash receipts for the overall County Pool increased by 23.1% from the same
quarter in the prior year. The City’s share of the Countywide Pool decreased to 6.7%. The City’s revenues
from the County Pool increased from $1,834,044 in 2024Q4 to $2,571,498 in 2025Q4.
TOP 25 SALES/USE TAX CONTRIBUTORS
The following list identifies Palo Alto’s Top 25 Sales/Use Tax contributors. The list is in alphabetical order
and represents the year ended in the third quarter of 2025. The Top 25 Sales/Use Tax contributors
generate 52.8% of Palo Alto’s total sales and use tax revenue.
Item A
Attachment A - 2025 Q4
Sales Tax Digest Summary
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$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
Benchmark Year 2025Q4 Benchmark Year 2024Q4
Sales Tax from Largest Non-Confidential Sales Tax Segments (Economic)
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Sales Tax Digest Summary
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Economic Category % 2025Q4 2025Q3 2025Q2 2025Q1 2024Q4 2024Q3 2024Q2 2024Q1 2023Q4 2023Q3 2023Q2
Business To Business 17.4% 1,887,386 1,446,306 1,829,261 2,584,832 2,352,638 2,228,773 2,366,493 2,149,237 2,343,293 2,943,907 2,683,293
Miscellaneous/Other 14.4% 1,559,981 1,731,803 1,504,679 1,542,138 1,284,493 1,682,849 1,595,196 1,951,428 1,870,170 1,546,096 1,302,322
General Retail 26.4% 2,867,257 2,128,953 2,096,092 1,813,504 2,466,315 1,828,014 2,044,006 1,739,261 2,315,882 1,834,297 2,017,885
Food Products 14.3% 1,553,055 1,458,554 1,514,585 1,396,065 1,448,644 1,349,524 1,394,270 1,288,207 1,348,051 1,277,173 1,349,926
Subtotal Economic (Local Business)72.4% 7,867,679 6,765,615 6,944,617 7,336,539 7,552,090 7,089,160 7,399,964 7,128,134 7,877,395 7,601,473 7,353,426
Net Pools & Adjustments 27.6% 2,992,086 1,302,731 1,856,667 633,409 1,737,280 1,033,269 1,359,165 1,143,798 1,867,172 1,986,175 2,084,763
Total Cash Receipts 100.0% 10,859,764 8,068,346 8,801,284 7,969,948 9,289,370 8,122,429 8,759,129 8,271,932 9,744,567 9,587,647 9,438,189
Economic Segment % 2025Q4 2025Q3 2025Q2 2025Q1 2024Q4 2024Q3 2024Q2 2024Q1 2023Q4 2023Q3 2023Q2
Miscellaneous/Other 30.0% 3,256,544 3,034,581 3,294,198 4,175,255 3,939,826 4,070,462 4,102,841 4,114,784 4,409,850 4,635,983 4,197,978
Restaurants 13.0% 1,412,846 1,328,254 1,376,526 1,268,403 1,307,103 1,222,917 1,259,885 1,162,863 1,214,598 1,154,189 1,214,502
Miscellaneous Retail 8.8% 958,245 652,655 602,137 529,255 717,726 512,154 582,600 489,040 689,939 480,649 512,077
Apparel Stores 6.7% 725,551 517,728 534,216 455,466 633,554 480,138 531,926 440,402 586,863 478,973 509,894
Department Stores 5.4% 581,270 472,934 503,087 406,470 570,391 432,925 501,499 411,345 549,893 435,388 492,374
Service Stations 1.4% 156,885 183,776 183,941 187,356 187,487 201,591 226,411 198,584 214,900 229,911 222,029
Food Markets 1.1% 118,688 109,640 118,511 107,424 117,774 111,242 114,071 107,031 112,372 103,251 111,465
Business Services 6.1% 657,651 466,047 332,000 206,909 78,229 57,730 80,732 204,085 98,980 83,130 93,106
Subtotal Economic (Local Business)72.4% 7,867,679 6,765,615 6,944,617 7,336,539 7,552,090 7,089,160 7,399,964 7,128,134 7,877,395 7,601,473 7,353,426
Net Pools & Adjustments 27.6% 2,992,086 1,302,731 1,856,667 633,409 1,737,280 1,033,269 1,359,165 1,143,798 1,867,172 1,986,175 2,084,763
Total Cash Receipts 100.0% 10,859,764 8,068,346 8,801,284 7,969,948 9,289,370 8,122,429 8,759,129 8,271,932 9,744,567 9,587,647 9,438,189
Historical Analysis by Calendar Quarter
The chart above shows the categories and segments in quarterly economic-based amounts. The total amount is the net cash receipts, and it was obtained by
adding up the categories/segments with the “Net Pools & Adjustments” amount.
Item A
Attachment A - 2025 Q4 Sales Tax
Digest Summary
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Economic Category % 2025Q4 2024Q4 2023Q4 2022Q4 2021Q4 2020Q4 2019Q4 2018Q4 2017Q4 2016Q4
Business To Business 17.9% 6,401,386 9,267,252 10,258,589 9,251,173 7,429,378 7,792,163 8,546,122 6,445,906 5,549,122 4,687,305
Miscellaneous/Other 17.8% 6,356,019 6,312,253 6,972,238 6,272,149 6,433,165 5,647,574 7,305,249 7,675,779 5,478,604 6,310,428
General Retail 25.5% 9,094,934 8,123,524 7,695,642 7,690,668 6,886,905 4,457,264 7,708,392 8,243,260 8,105,421 8,679,714
Food Products 16.7% 5,946,873 5,562,100 5,233,335 4,809,224 3,668,040 2,792,282 4,939,660 4,839,275 5,549,122 4,687,305
Subtotal Economic (Local Business)77.9% 27,799,212 29,265,128 30,159,803 28,023,214 24,417,489 20,689,283 28,499,423 27,204,221 24,682,269 24,364,752
Net Pools & Adjustments 22.1% 7,900,131 5,177,732 6,686,812 6,020,425 5,612,325 4,668,143 6,361,699 6,244,760 5,295,766 4,084,050
Total 100.0% 35,699,342 34,442,860 36,846,615 34,043,639 30,029,814 25,357,425 34,861,122 33,448,980 29,978,035 28,448,802
Economic Segment % 2025Q4 2024Q4 2023Q4 2022Q4 2021Q4 2020Q4 2019Q4 2018Q4 2017Q4 2016Q4
Miscellaneous/Other 35.2% 12,582,752 16,313,250 17,989,753 16,507,494 14,581,954 14,129,286 16,847,766 15,326,141 12,962,210 11,731,829
Restaurants 15.2% 5,411,777 5,027,092 4,720,065 4,285,102 3,205,358 2,345,053 4,376,129 4,245,471 4,152,092 4,125,811
Miscellaneous Retail 7.8% 2,775,721 2,304,850 1,995,983 1,855,168 1,945,828 1,217,861 1,609,497 1,669,589 1,967,644 2,791,724
Apparel Stores 6.2% 2,210,778 2,096,219 2,005,484 1,863,457 1,610,038 1,007,654 1,912,796 1,979,854 1,852,621 1,769,711
Department Stores 5.5% 1,963,761 1,936,091 1,834,447 1,781,740 1,537,775 777,559 1,795,157 1,980,754 2,003,859 2,115,072
Service Stations 2.1% 735,984 817,672 864,329 892,331 645,586 436,265 700,254 697,083 602,264 551,829
Business Services 4.7% 1,663,123 316,947 314,007 424,716 527,001 418,514 814,625 835,259 665,486 813,964
Food Markets 1.3% 455,316 453,006 435,735 413,206 363,948 357,092 443,199 470,070 476,093 464,812
Subtotal Economic (Local Business)77.9% 27,799,212 29,265,128 30,159,803 28,023,214 24,417,489 20,689,283 28,499,423 27,204,221 24,682,269 24,364,752
Net Pools & Adjustments 22.1% 7,900,131 5,177,732 6,686,812 6,020,425 5,612,325 4,668,143 6,361,699 6,244,760 5,295,766 4,084,050
Total 100.0% 35,699,342 34,442,860 36,846,615 34,043,639 30,029,814 25,357,425 34,861,122 33,448,980 29,978,035 28,448,802
Historical Analysis by Calendar BMY from 2016Q4 to 2025Q4
The chart above shows the categories and segments in benchmark year economic basis amounts. The total amount is the net cash receipts, and it was obtained
by adding up the categories/segments with the “Net Pools & Adjustments” amount. Benchmark year (BMY) is the sum of the current and 3 previous quarters
(2025Q4 BMY is sum of 2025 Q4, 2025 Q3, 2025 Q2, 2025 Q1).
Item A
Attachment A - 2025 Q4 Sales Tax
Digest Summary
Item A: Staff Report Pg. 9 Packet Pg. 156 of 172
City of Palo Alto
neumo.com (800) 800-8181 Page 8
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Campbell 5.3% -0.3% -4.7% 1.4% 5.4% 2,573,104.04 2,623,758.41 -1.9%Miscellaneous Retail Bldg.Matls-Retail I.T. Infrastructure Misc. Vehicle Sales
Cupertino 5.2% 2.3% -11.5% -7.6% 0.8% 4,862,050 9,920,067 -51.0%Electronic Equipment I.T. Infrastructure Office Equipment Bldg.Matls-Whsle
Gilroy -1.1% 4.6% -8.0% 0.3% 3.6% 4,523,852 4,546,702 -0.5%Restaurants Business Services Auto Sales - New Apparel Stores
Los Altos 32.4% 3.8% -3.2% -35.5% 97.0% 724,842 678,779 6.8%Miscellaneous Retail Restaurants Electronic Equipment Recreation Products
Los Gatos 4.1% -5.0% -7.5% -29.3% -27.3% 1,396,763 1,503,556 -7.1%Miscellaneous Retail Furniture/Appliance Restaurants Business Services
Milpitas 27.1% 8.1% -6.8% 22.3% 63.1% 7,282,106 6,780,397 7.4%Miscellaneous Retail Bldg.Matls-Whsle Electronic Equipment Auto Sales - New
Morgan Hill -1.0% 3.9% -6.2% 3.4% 7.4% 2,495,591 2,527,387 -1.3%Restaurants Leasing Misc. Vehicle Sales Light Industry
Mountain View 2.1% 4.2% 13.6% -4.2% 14.6% 4,741,724 4,398,152 7.8%Restaurants Auto Sales - New Auto Sales - Used Service Stations
Palo Alto 8.8% 4.8% 19.3% 11.2% 8.9% 7,867,907 7,797,829 0.9%Business Services Auto Sales - New Leasing Service Stations
San Jose 7.3% 4.7% -3.9% -1.4% -1.3% 58,581,356 59,643,956 -1.8%Miscellaneous Retail Restaurants Office Equipment Auto Sales - New
Santa Clara 6.6% -3.4% 2.9% 42.0% 47.3% 15,900,018 16,526,981 -3.8%Bldg.Matls-Whsle Electronic Equipment I.T. Infrastructure Light Industry
County of Santa Clara 38.9% 0.9% -28.3% 6.4% 1.3% 1,298,121 1,224,869 6.0%Miscellaneous Retail Electronic Equipment Health & Government Auto Parts/Repair
Saratoga 18.9% 2.8% -3.7% -17.9% -26.5% 283,203 273,265 3.6%Restaurants Miscellaneous Retail Food Processing Eqp Food Markets
Sunnyvale -11.0% 0.9% -25.0% 28.4% -8.9% 8,323,811 9,138,359 -8.9%Light Industry Bldg.Matls-Whsle Auto Sales - New Business Services
Quarterly Analysis by Sales Tax Category: Change from 2024Q4 to 2025Q4 (Economic)
Unlike the chart on page one which showed a ‘benchmark year’ through the fourth quarter of 2025, the chart above shows a comparison of one quarter only –
fourth quarter of 2025 to fourth quarter of 2024. This chart is for local ‘brick and mortar’ businesses, and it excludes county pools and adjustments.
Item A
Attachment A - 2025 Q4 Sales Tax
Digest Summary
Item A: Staff Report Pg. 10 Packet Pg. 157 of 172
City of Palo Alto
neumo.com (800) 800-8181 Page 9
California Avenue % CHANGE QoQ 2025Q4 QE 2024Q4 QE 25Q4 % OF TOTAL 24Q4 % OF TOTAL
FOOD PRODUCTS 5.7% 114,060 107,871 68.7%65.6%
GENERAL RETAIL -11.2% 17,941 20,196 10.8%12.3%
ALL OTHER -6.4% 34,136 36,473 20.5%22.2%
TOTAL 1.0% 166,138 164,540 100.0% 100.0%
El Camino Real and Midtown % CHANGE QoQ 2025Q4 QE 2024Q4 QE 25Q4 % OF TOTAL 24Q4 % OF TOTAL
FOOD PRODUCTS -0.3% 168,476 168,965 32.6%37.1%
GENERAL RETAIL -5.6% 36,792 38,972 7.1%8.5%
ALL OTHER 25.7% 311,706 247,924 60.3%54.4%
TOTAL 13.4% 516,975 455,861 100.0% 100.0%
Greater Downtown % CHANGE QoQ 2025Q4 QE 2024Q4 QE 25Q4 % OF TOTAL 24Q4 % OF TOTAL
FOOD PRODUCTS 2.6% 590,037 574,839 58.2%61.6%
GENERAL RETAIL 17.8% 337,011 285,967 33.2%30.6%
BUSINESS TO BUSINESS 33.5% 67,354 50,462 6.6%5.4%
MISCELLANEOUS 15.4% 8,752 7,583 0.9%0.8%
CONSTRUCTION -29.8% 7,722 11,007 0.8%1.2%
TRANSPORTATION 0.0% 3,454 3,356 0.3%0.4%
TOTAL 8.7% 1,014,329 933,214 100.0% 100.0%
Stanford Shopping Center % CHANGE QoQ 2025Q4 QE 2024Q4 QE 25Q4 % OF TOTAL 24Q4 % OF TOTAL
GENERAL RETAIL 4.0% 1,720,207 1,653,612 87.3%88.4%
FOOD PRODUCTS -7.7% 151,804 164,506 7.7%8.8%
ALL OTHER 86.4% 97,558 52,328 5.0%2.8%
TOTAL 5.3% 1,969,569 1,870,447 100.0% 100.0%
City of Palo Alto Geo Areas & Citywide Chart Data: Change from 2024Q4 to 2025Q4 (Economic)
Item A
Attachment A - 2025 Q4 Sales Tax
Digest Summary
Item A: Staff Report Pg. 11 Packet Pg. 158 of 172
City of Palo Alto
neumo.com (800) 800-8181 Page 10
Town And Country Shopping Center % CHANGE QoQ 2025Q4 QE 2024Q4 QE 25Q4 % OF TOTAL 24Q4 % OF TOTAL
FOOD PRODUCTS 14.5% 122,936 107,394 55.4%54.6%
GENERAL RETAIL 10.0% 96,835 88,001 43.7%44.7%
ALL OTHER 56.6% 2,012 1,285 0.9%0.7%
TOTAL 12.8% 221,783 196,681 100.0% 100.0%
All Other Geos Combined % CHANGE QoQ 2025Q4 QE 2024Q4 QE 25Q4 % OF TOTAL 24Q4 % OF TOTAL
GENERAL RETAIL 5.8% 2,267,670 2,142,908 39.2%32.7%
FOOD PRODUCTS 4.1% 1,264,688 1,214,659 21.8%18.5%
BUSINESS TO BUSINESS -51.6% 1,078,237 2,225,704 18.6%33.9%
TRANSPORTATION 18.6% 1,030,293 868,714 17.8%13.2%
MISCELLANEOUS 26.8% 101,187 79,818 1.7%1.2%
CONSTRUCTION 80.9% 48,646 26,885 0.8%0.4%
TOTAL -11.7% 5,790,722 6,558,688 100.0% 100.0%
All Other Geo Area Totals with Balance of Jurisdiction
Comparison 25Q4 & 24Q4 % CHANGE QoQ 2025Q4 QE 2024Q4 QE 25Q4 % OF TOTAL 24Q4 % OF TOTAL
Stanford Shopping Center 5.3% 1,969,569 1,870,447 34.0%28.5%
Balance of Jurisdiction -36.0% 1,881,092 2,937,945 32.5%44.8%
Greater Downtown 8.7% 1,014,329 933,214 17.5%14.2%
Town And Country Shopping Center 18.0% 537,811 455,861 9.3%7.0%
El Camino Real and Midtown 12.8% 221,783 196,681 3.8%3.0%
California Avenue 1.0% 166,138 164,540 2.9%2.5%
TOTAL -11.7% 5,790,722 6,558,688 100.0% 100.0%
Palo Alto citywide QE 25Q4 & 24Q4 % CHANGE QoQ 2025Q4 QE 2024Q4 QE 25Q4 % OF TOTAL 24Q4 % OF TOTAL
GENERAL RETAIL 10.7% 2,867,257 2,589,613 36.4%33.2%
BUSINESS TO BUSINESS -20.6% 1,887,386 2,377,195 24.0%30.5%
FOOD PRODUCTS 4.8% 1,553,055 1,481,751 19.7%19.0%
TRANSPORTATION 19.3% 1,040,140 871,918 13.2%11.2%
MISCELLANEOUS 8.2% 383,594 354,610 4.9%4.5%
CONSTRUCTION 11.2% 136,474 122,742 1.7%1.6%
TOTAL 0.9% 7,867,907 7,797,829 100.0% 100.0%
City of Palo Alto Geo Areas & Citywide Chart Data: Change from 2024Q4 to 2025Q4 (Economic) Cont.
Item A
Attachment A - 2025 Q4 Sales Tax
Digest Summary
Item A: Staff Report Pg. 12 Packet Pg. 159 of 172
City of Palo Alto
neumo.com (800) 800-8181 Page 11
FOOD PRODUCTS, 5.7%
CHANGE, $114,060 ,
68.7%TOTAL
GENERAL RETAIL,
-11.2% CHANGE,
$17,941 ,
10.8%TOTAL
ALL OTHER,
-6.4% CHANGE, $34,136 ,
20.5%TOTAL
California Avenue 2025Q4 SALES TAX AMOUNTS
FOOD PRODUCTS,
$107,871 ,
65.6%TOTAL
GENERAL RETAIL,
$20,196 ,
12.3%TOTAL
ALL OTHER, $36,473 ,
22.2%TOTAL
California Avenue 2024Q4 SALES TAX AMOUNTS
FOOD PRODUCTS,
-0.3%CHANGE, $168,476 ,
32.6%TOTAL
GENERAL RETAIL,
-5.6% CHANGE, $36,792 ,
7.1%TOTALALL OTHER,
25.7% CHANGE,
$311,706 , 60.3%TOTAL
El Camino Real and Midtown 2025Q4 SALES TAX AMOUNTS
FOOD PRODUCTS, $168,965 ,
37.1%TOTAL
GENERAL RETAIL,
$38,972 , 8.5%TOTAL
ALL OTHER, $247,924 ,
54.4%TOTAL
El Camino Real and Midtown 2024Q4 SALES TAX AMOUNTS
City of Palo Alto Geo Area Pie Charts
Item A
Attachment A - 2025 Q4 Sales Tax
Digest Summary
Item A: Staff Report Pg. 13 Packet Pg. 160 of 172
City of Palo Alto
neumo.com (800) 800-8181 Page 12
FOOD PRODUCTS,
2.6%CHANGE, $590,037
58.2%TOTAL
GENERAL RETAIL,
17.8% CHANGE,
$337,011 ,
33.2%TOTAL
BUSINESS TO BUSINESS,
33.5% CHANGE, $67,354 ,
6.6%TOTAL
MISCELLANEOUS,
15.4% CHANGE, $8,752 ,
0.9%TOTAL
CONSTRUCTION,
-29.8% CHANGE, $7,722 ,
0.8%TOTAL
TRANSPORTATION
0.0% CHANGE, $3,454 ,
0.3%TOTAL
Greater Downtown 2025Q4 SALES TAX AMOUNTS
FOOD PRODUCTS,
$574,839 , 61.6%TOTAL
GENERAL RETAIL,
$285,967 , 30.6%TOTAL
BUSINESS TO BUSINESS,
$50,462 , 5.4%TOTAL
MISCELLANEOUS, $7,583
0.8%TOTAL
CONSTRUCTION, $11,007
1.2%TOTAL TRANSPORTATION
0.0% CHANGE, $3,356 , 0.4%
TOTAL
Greater Downtown 2024Q4 SALES TAX AMOUNTS
GENERAL RETAIL
$1,653,612 ,
88.4%TOTAL
FOOD PRODUCTS, $164,506 ,
8.8%TOTAL
ALL OTHER, $52,328 ,
2.8%TOTAL
Stanford Shopping Center 2024Q4 SALES TAX AMOUNTS
GENERAL RETAIL,
4.0% CHANGE, $1,720,207 ,
87.3%TOTALFOOD PRODUCTS,
-7.7% CHANGE
$151,804 ,
7.7%TOTAL
ALL OTHER, 86.4% CHANGE
$97,558 , 5.0%TOTAL
Stanford Shopping Center 2025Q4 SALES TAX AMOUNTS
City of Palo Alto Geo Area Pie Charts
Item A
Attachment A - 2025 Q4 Sales Tax
Digest Summary
Item A: Staff Report Pg. 14 Packet Pg. 161 of 172
City of Palo Alto
neumo.com (800) 800-8181 Page 13
FOOD PRODUCTS,
14.5%CHANGE, $122,936 ,
55.4%TOTAL
GENERAL RETAIL,
10.0% CHANGE, $96,835 ,
43.7%TOTAL
ALL OTHER, 56.6% CHANGE, $2,012 , 0.9%TOTAL
Town And Country Shopping Center 2025Q4 SALES TAX AMOUNTS
FOOD PRODUCTS,
$107,394 ,
54.6%TOTAL
GENERAL RETAIL,
$88,001 ,
44.7%TOTAL
ALL OTHER, $1,285 ,
0.7%TOTAL
Town And Country Shopping Center 2024Q4 SALES TAX AMOUNTS
GENERAL RETAIL,
5.8%CHANGE
$2,267,670 ,
39.2%TOTAL
FOOD PRODUCTS,
4.1% CHANGE, $1,264,688
21.8%TOTAL
BUSINESS TO
BUSINESS, -51.6%
CHANGE $1,078,237 ,
18.6%TOTAL
TRANSPORTATION,
18.6% CHANGE, $1,030,293
17.8%TOTAL
MISCELLANEOUS, 26.8% CHANGE,
$101,187 ,
1.7%TOTAL
CONSTRUCTION,
80.9% CHANGE, $48,646 ,
0.8%TOTAL
All Other Geos Combined 2025Q4 SALES TAX AMOUNTS
GENERAL RETAIL,
$2,142,908 ,
32.7%TOTAL
FOOD PRODUCTS, $1,214,659 ,
18.5%TOTAL
BUSINESS TO
BUSINESS, $2,225,704,
33.9%TOTAL
TRANSPORTATION,
$868,714 ,
13.2%TOTAL
MISCELLANEOUS,
$79,818 , 1.2%TOTAL
CONSTRUCTION,
$26,885 , 0.4%TOTAL
All Other Geos Combined 2024Q4 SALES TAX AMOUNTS
City of Palo Alto Geo Area Pie Charts
Item A
Attachment A - 2025 Q4 Sales Tax
Digest Summary
Item A: Staff Report Pg. 15 Packet Pg. 162 of 172
City of Palo Alto
neumo.com (800) 800-8181 Page 14
GENERAL RETAIL,
10.7% CHANGE, $2,867,257 ,
36.4%TOTAL
BUSINESS TO BUSINESS,
-20.6% CHANGE, $1,887,386 ,
24.0%TOTAL
FOOD PRODUCTS,
4.8% CHANGE,
$1,553,055 ,
19.7%TOTAL
TRANSPORTATION,
19.3% CHANGE,
$1,040,140 ,
13.2%TOTAL
MISCELLANEOUS,
8.2% CHANGE, $383,594 ,
CONSTRUCTION,
11.2% CHANGE, $136,474 ,
1.7%TOTAL
Palo Alto citywide 2025Q4 SALES TAX AMOUNTS
GENERAL RETAIL, $2,589,613 ,
33.2%TOTAL
BUSINESS TO BUSINESS,
$2,377,195 ,
30.5%TOTAL
FOOD PRODUCTS,
$1,481,751 ,
19.0%TOTAL
TRANSPORTATION,
$871,918 ,
11.2%TOTAL
MISCELLANEOUS, $354,610 ,
4.5%TOTAL
CONSTRUCTION, $122,742 ,
1.6%TOTAL
Palo Alto citywide 2024Q4 SALES TAX AMOUNTS
GENERAL RETAIL,
10.7% CHANGE, $2,867,257 ,
36.4%TOTAL
BUSINESS TO BUSINESS,
-20.6% CHANGE, $1,887,386 ,
24.0%TOTAL
FOOD PRODUCTS,
4.8% CHANGE,
$1,553,055 ,
19.7%TOTAL
TRANSPORTATION,
19.3% CHANGE,
$1,040,140 ,
13.2%TOTAL
MISCELLANEOUS,
8.2% CHANGE, $383,594 ,
CONSTRUCTION,
11.2% CHANGE, $136,474 ,
1.7%TOTAL
Palo Alto citywide 2025Q4 SALES TAX AMOUNTS
GENERAL RETAIL, $2,589,613 ,
33.2%TOTAL
BUSINESS TO BUSINESS,
$2,377,195 ,
30.5%TOTAL
FOOD PRODUCTS,
$1,481,751 ,
19.0%TOTAL
TRANSPORTATION,
$871,918 ,
11.2%TOTAL
MISCELLANEOUS, $354,610 ,
4.5%TOTAL
CONSTRUCTION, $122,742 ,
1.6%TOTAL
Palo Alto citywide 2024Q4 SALES TAX AMOUNTS
City of Palo Alto Geo Area & Citywide Pie Charts
Item A
Attachment A - 2025 Q4 Sales Tax
Digest Summary
Item A: Staff Report Pg. 16 Packet Pg. 163 of 172
City Council
Staff Report
From: City Manager
Report Type: INFORMATION REPORTS
Lead Department: Utilities
Meeting Date: May 4, 2026
Report #:2604-6219
TITLE
Electric Grid Modernization FY 2026 Update; CEQA Status – Not a Project
RECOMMENDATION
Informational report regarding the City’s grid modernization efforts, no Council action is
requested.
EXECUTIVE SUMMARY
Palo Alto Palo Alto’s Electric Grid Modernization Project (Grid-Mod) was developed to prepare
the City’s electric grid in anticipation of building and transportation electrification and to
improve system reliability. Palo Alto’s electric grid can be characterized as an efficient but aged
system that has, in large part, reached the end of its useful life. Some in-service equipment was
originally installed in the mid 1950’s and has served the City well over those 70+ years.
However, due to both the age of the electric system and electrification’s forecasted increased
energy demands, the City’s grid must be reconstructed and modernized to serve these higher
loads while maintaining system reliability.
To prepare for Palo Alto’s increased electric demands, it will be more cost effective to
incorporating newer technologies, implementing current utility best practices, and preparing
for higher adoption rates of self-generation, and energy storage at those system components
are replaced. However, the age and size of Palo Alto’s system requires a large financial
commitment, two to three times historical funding levels, over many years to replace aging
infrastructure and support electrification. The initial estimate for Grid-Mod was approximately
$300 million over a five-year period. Current staff estimates, with distribution upgrades (local
transformers and secondary) paced to match customer participation, reach $342 million
(present value) between FY 2026 and FY 2034. If all 12kV distribution upgrades are completed
before FY 2034 staff-estimated costs for Grid-Mod through FY 2034 are $443 million (present
value). Staff will need to integrate these estimates into strategic discussions regarding matching
the community’s pace for electrification, how costs could vary depending on faster or slower
rates of residential electrification, and how much aging infrastructure replacement is needed
regardless of new electrification loads. Staff does expect installation costs to follow forecasted
Item B
Item B Staff Report
Item B: Staff Report Pg. 1 Packet Pg. 164 of 172
inflation trends for construction costs. Additionally, as adoption rates ramp up staff expect to
rely more heavily on contracted services that come with a higher cost than internal staff
resources.
BACKGROUND
1 indicated that to meet the 80x30 goal, the City would need, among other
things, to electrify all single-family homes by replacing natural gas equipment with efficient
electric appliances and support electric vehicle charging. The 2020 study estimated peak
demands from single-family dwellings at 8.5kW without consideration of home EV charging.
When including a single, level-2 EV charger, customer peak demands could rise to 19.5kW.
Compared to historical average peak demands of 1 to 2kW per home, residential electrification
represents a significant new demand on CPAU’s distribution system. Due to the higher
expected demands, Palo Alto’s electric system requires extensive upgrades to increase capacity
while replacing aging equipment to improve system reliability.
ANALYSIS
1 City of Palo Alto (2020), Preliminary Analysis of the Utility Costs & Staffing Impact to Electrify All Single-Family
Item B
Item B Staff Report
Item B: Staff Report Pg. 2 Packet Pg. 165 of 172
Elimination of Legacy 4kV Systems While Increasing Capacity
Palo Alto currently serves roughly 2,900 customers through two separate legacy 4,000-volt
(4kV) systems. These two isolated systems (no ties to adjacent substations) rely on aging
facilities installed in the 1950s and 1960s. As this equipment ages, it has a higher likelihood of
in-service failures resulting in more frequent customer power outages. Due to the isolation of
the two 4kV systems, a major failure could result in a prolonged outage to many Palo Alto
electric customers.
Staff have refocused efforts to convert these remaining areas of 4kV distribution system to the
City’s standard voltage of 12,000volt (12kV). In upgrading these facilities, staff are building
additional capacity to allow for residential building electrification and future EV charging.
Building these upgrades at the time of 4kV conversions lowers costs and prepares the
distribution system for future efficient electric appliances and home EV charging.
During Grid-Mod’s pilot phase, the City’s initial plan was to complete system capacity upgrades
in a systematic way, crossing the City east to west. Early on, Staff found that this approach
either delayed residential projects or placed large improvement costs onto residents if their
electrification efforts didn’t align with Grid-Mod’s planned roll out. To address this, staff began
upgrading small but targeted sections of the distribution system to align with building permits
related to electrification. This approach creates a more strategic and surgical approach to
upgrading the distribution system. Adopting a “when and where” approach requires more
flexibility from CPAU engineering and construction but is customer focused and provides the
opportunity to delay costly system upgrades until electric customers are ready to replace gas
appliances or install EV chargers. Additionally, the “when and where” approach allows
engineering staff to improve reliability by advancing the replacement of existing distribution
transformers loaded beyond their design ratings under the Grid-Mod Project.
In completing distribution system upgrades for residential building permits, engineering staff
are re-evaluating expected residential peak demands and equipment that can help to limit or
reduce peak demands, ultimately lowering costs to electrify. Many homeowners seeking
electrification and EV charging are installing multiple charging ports (between 7kW to 11kW
each). Initial planning of Grid-Mod did not anticipate providing full Level-2 charging for multiple
EVs per dwelling. To allow residential customers multiple charging points while reducing system
demands, CPAU engineering is implementing port sharing technology to allow multiple cars to
be plugged in simultaneously but limiting aggregated charging demands to no more than 11kW
per dwelling. Implementing this technology provides cost savings to the Grid-Mod project and
limits the overall strain on CPAU’s grid.
Palo Alto owns and operates nine substations, some of which continue to rely on equipment
installed in the 1950s and 1960s. In recent years, the City has experienced increased failures,
and staff expects the rate of these failures to increase until the equipment is replaced. Both the
Item B
Item B Staff Report
Item B: Staff Report Pg. 3 Packet Pg. 166 of 172
Hopkins (installed 1967) and East Meadow (installed 1955) substations are beyond their
expected life and should be reconstructed to maintain system reliability. Additionally, the
Hopkins and East Meadow substations are 4kV stations and cannot be quickly restored
following a major equipment failure. Staff are beginning the design phase to replace both
Hopkins and East Meadow substations to mitigate the risk of failed equipment while increasing
system capacity to serve the higher demands of electrified homes. Due to four-to-five-year lead
times of substation power transformers, these projects will begin the design phase in FY 2026
but will not complete construction until FY 2030 or after. Once completed, the reconstructed
East Meadow and Hopkins substations allow offloading (transferring of customer loads to
adjacent substations) the Colorado substation to facilitate needed equipment replacements
within that substation.
Upgrading Sub-Transmission Systems to Improve Reliability
Item B
Item B Staff Report
Item B: Staff Report Pg. 4 Packet Pg. 167 of 172
Tentative Project Schedule
Table 1 below provides an illustrative timeline for key Grid-Mod projects on a shortened
timeline. The timelines shown in table 1 match Grid-Mod’s initial seven-year planned timeline
but are heavily dependent upon material delivery times. The largest schedule impact is
substation transformer delivery times estimated at four to five years from executed purchase
orders. Staff’s availability to design and manage reconstruction projects will also limit project
timelines.
Table 1: Timeline for Key Grid-Mod Projects
Table:1 – General timelines for key Grid-Mod Projects in support of electrification alongside estimated project costs
adjusted for inflation.
The illustrative schedule in Table 1 indicates the starting and finish dates of various projects and
work categories. Substation projects will require major material purchases in FY 2026 and FY
2027 to allow construction completion dates within FY 2031 or later. To fully implement a
“When and Where” approach to the 12kV distribution system, staff is recommending planning
for a longer reconstruction timeline. This approach allows CPAU electric engineering staff to
focus on accelerating critical system rebuilds, such as the 4kV system, sub-transmission, and the
Colorado substation which have a greater impact on overall system reliability. Additionally,
employing the “When and Where” approach to the 12kV distribution rebuild could allow
increased revenues from electrification to fund upgrades, softening future rate increases.
Below in Table 2, an illustrative timeline is presented for the key Grid-Mod projects along with
estimated spend rates. Under this option, timelines remain the same as shown in Table 1
except Grid-Mod’s 12kV distribution upgrades have been scaled back to reflecting spending
rates under a “When and Where” approach. Staff’s recommendation for 12kV distribution
rebuilds will transition from a planned advanced replacement of equipment to a process which
meets customer needs as they are ready to convert to efficient electric heating sources and
home EV charging. This will lower near term spending and the need to issue debt by building
the system as the load increases are occurring.
Project Description FY2026 FY2027 FY2028 FY2029 FY2030 FY2031 FY2032 FY2033 FY2034
Sub-Transmission Reconductor
4kV Substation Conversions
Colorado Substation Upgrades
Adobe Creek Substation Upgrades
Colorado 12kV Substation Upgrades
4kV Distribution Conversions
Grid-Mod 12kV Distribution Upgrades
Grid-Mod Estimate Costs w/ inflation
($ Millions)$32 $47 $78 $57 $59 $99 $92 $28 $30
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Table 2: Key Grid Mod Projects and Expected Spend Rates
Table:2 - General timelines for key Grid-Mod Projects with 12kV upgrades spread out over a longer period but tied
directly to residential customers speed to install efficient electric appliances. Estimated project costs adjusted for
inflation.
FISCAL/RESOURCE IMPACT
STAKEHOLDER ENGAGEMENT
3, and at the Climate Action & Sustainability Ad Hov Committee (CASC) on March 6th,
3 UAC Staff Report 2512-5638 Fiscal Year 2026 Mid-Year Electric Grid Modernization Update and Presentation
https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=85181&dbid=0&repo=PaloAlto
Project Description FY2026 FY2027 FY2028 FY2029 FY2030 FY2031 FY2032 FY2033 FY2034
Sub-Transmission Reconductor
4kV Substation Conversions
Colorado Substation Upgrades
Adobe Creek Substation Upgrades
Colorado 12kV Substation Upgrades
4kV Distribution Conversions
Grid-Mod 12kV Distribution Upgrades
Estimate Costs w/ inflation
($ Millions)$16 $37 $37 $25 $40 $60 $86 $59 $32
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20265. During these meetings the UAC & CASC indicated support to align the pace of
distribution system reconstruction with the pace of Palo Altans’ adoption of electrification. The
UAC Commissioners noted that the slower pace will help maintain lower electric rates which
ultimately supports fuel switching. The UAC further noted that it will be important to support
the implementation of S/CAP initiatives and any resulting programs that ramp up fuel
switching.
ENVIRONMENTAL REVIEW
APPROVED BY:
5 CASC Staff Report 2602-5990 Gird Modernization Update and Presentation
https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=86701&dbid=0&repo=PaloAlto
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City Council
Staff Report
From: City Manager
Report Type: INFORMATION REPORTS
Lead Department: Police
Meeting Date: May 4, 2026
Report #:2604-6298
TITLE
Update on Flock Automated License Plate Recognition Technology
BACKGROUND AND ANALYSIS
Recognizing public interest in this topic, the Palo Alto Police Department (PAPD) will begin
proactively posting on a monthly cadence partially redacted Flock search logs on the City’s
Automated License Plate Recognition (ALPR) webpage1. These logs include information
concerning ALPR queries performed by PAPD users, as well as queries performed by other
agencies, that has not previously been released pursuant to a legal exemption. The first logs,
covering July of 2023 (when the first Flock camera was installed in Palo Alto) thru March of
2026, were posted on April 21, 2026. Additionally, the City continues to use best practices to
secure Palo Alto ALPR data, including a 30-day limit on data retention, requiring MOUs with
other agencies for data sharing, and internal policy controls.
In 2023, unbeknownst to many users including PAPD, Flock added a new “Nationwide Lookup”
search feature. Using this feature, an out-of-state local law enforcement or federal agency
could perform a broad search of data from Flock’s entire nationwide network of over 6000
cameras, including the 20 cameras then-deployed in Palo Alto. The feature did not enable
targeted searches of any specific agency’s data. These searches could only be performed
system-wide when a full 7-digit license plate number was known and only based on the
articulation of a legitimate law enforcement purpose.
PAPD was first made aware of this issue in December 2025 and subsequently learned that Flock
had already disabled the feature for PAPD by late October 2024 and for all California law
enforcement agencies by March 2025.
1 City of Palo Alto’s Automated License Plate Recognition (ALPR) webpage;
https://www.paloalto.gov/Departments/Police/Public-Information-Portal/Automated-License-Plate-Recognition-
ALPR
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While its data was included in the “Nationwide Lookup” searchable dataset during this period,
PAPD has worked with Flock to confirm that no PAPD data (i.e., license plates captured by Palo
Alto cameras) was actually received by any out-of-state agency or federal agency as a result of
any “Nationwide Lookup” search. In other words, PAPD had no records that matched the
“Nationwide Lookup” searches performed by out of state or federal agencies.
3 Additionally, PAPD found that no searches
had been performed by ICE, Customs and Border Patrol, or the Department of Homeland
Security; keyword searches did not identify any searches that appeared to be associated with
immigration enforcement or reproductive rights enforcement.
FISCAL/RESOURCE IMPACT
ENVIRONMENTAL REVIEW
APPROVED BY:
3 Search logs capture the search reason provided by the user at the time of the search.
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