HomeMy WebLinkAboutStaff Report 2603-6081CITY OF PALO ALTO
CITY COUNCIL
Special Meeting
Monday, June 08, 2026
Council Chambers & Hybrid
5:30 PM
Agenda Item
14.Adopt an Ordinance and Resolution Calling an Election and Placing a ½ Cent (0.5%)
Transactions and Use Tax Measure on the November 3, 2026 Ballot; and a Resolution
Adopting Advisory Spending Guidelines for the Use of the Proceeds if the Measure
Passes to Support Improving the Cubberley Community Center; CEQA Status - Not a
Project. Late Packet Report Added, Staff Presentation, Public Comment
City Council
Staff Report
From: City Manager
Report Type: ACTION ITEMS
Lead Department: Community Services
Meeting Date: June 8, 2026
Report #:2603-6081
TITLE
Adopt an Ordinance and Resolution Calling an Election and Placing a ½ Cent (0.5%) Transactions
and Use Tax Measure on the November 3, 2026 Ballot; and a Resolution Adopting Advisory
Spending Guidelines for the Use of the Proceeds if the Measure Passes to Support Improving
the Cubberley Community Center; CEQA Status - Not a Project.
RECOMMENDATION
1. As directed by the City Council on May 18, 2026, staff recommend the City Council adopt an
ordinance and a companion resolution to place a ½ cent (0.5%) transactions and use tax
measure on the November 3, 2026 ballot (Attachments A and B). The ordinance designates the
members of the Cubberley Ad Hoc Committee (Councilmembers Burt, Lythcott-Haims, and
Reckdahl) to author the argument in support of the measure. (2/3 vote required).
2. The Cubberley Ad Hoc Committee recommends the City Council adopt a resolution approving
advisory spending guidelines in support of improving the Cubberley Community Center if the
measure passes. (Attachment C, to be published in late packet on June 4, 2026).
EXECUTIVE SUMMARY
As directed by the City Council, the attached ordinance formally places a 0.5% transactions and
use tax (commonly known as a sales tax) measure on the November 3, 2026 ballot. State law
requires a 2/3 vote by the City Council to place this measure on the ballot and a simple majority
of voters to pass in November.1 The ordinance sets the exact language of the ballot question
and designates City Council members to author the argument in support of the measure. If
passed, the revenue from the tax will go to the City’s general fund to be appropriated. A
1 Revenue and Taxation Code section 7285.9.
companion resolution makes required requests for the election to be consolidated with the
statewide election and to request the County’s services to conduct the election.3
Within the state cap, the City has capacity for a ¼ cent (0.25%) voter approved local sales tax;
staff is working on legislation that would increase the local sales tax cap by a ½ cent.
In addition, the Cubberley Ad Hoc Committee recommends the adoption of a resolution
approving advisory spending guidelines in support of improving Cubberley Community Center
with the new revenue if the measure passes.
BACKGROUND
The City of Palo Alto (City) is advancing a plan to redevelop a 15-acre portion of Cubberley,
building on previous community engagement and re-engaging residents to reimagine and
prioritize community uses of the campus. The City and the Palo Alto Unified School District
(PAUSD) have a memorandum of understanding that would enable the City to purchase seven
acres to support a reimagined community center and fund school improvements. The City
currently owns eight acres at Cubberley; acquiring an additional seven acres would create an
opportunity to update the ageing facility for the benefit of the community. Funding the land
purchase and site improvements could be made possible through different funding sources
including a ballot measure, nonprofit partnerships, philanthropy, grants, and development fees.
There has been extensive foundational work completed to support the advancement of the
Cubberley Project, including several actions by the City Council. Attachment D shares a
summary of actions to date and the history of the Cubberley site.
ANALYSIS
On May 18, 2026, the City Council directed staff to pursue a ballot measure for a ½ cent (0.5%)
transactions and use tax (commonly known as a sales tax) in the November 2026 election.
Within the state cap, the City current has capacity for a ¼ cent (0.25%) voter approved local
sales tax. The City would need to obtain authorization from the State before implementing the
½ cent increase. The City and its legislative consultants, Towsend Public Affairs, are preparing
legislation that would increase the local sales tax cap by ½ cent.
Placement of a measure on the ballot requires Council action to adopt an ordinance and a
companion resolution calling the election and specifying the ballot question. If approved by
voters, the resulting revenue would accrue to the City’s General Fund and would be available to
support general City services. This includes land acquisition and renovations at the Cubberley
3 An ordinance and a companion resolution to call the election for this ballot measure comes because of disparate
state law requirements. State law specifies that certain election matters shall be approved by ordinance, and
others can only be approved by resolution.
site as appropriated by the City Council. The Santa Clara County Registrar of Voters (ROV)
requires that measures be submitted no later than August 7, 2026. Key provisions include:
Summary of the Measure: If approved by a simple majority of voters, the ballot measure
would create a ½ cent (0.5%) transactions and use tax (commonly known as a sales tax).
Revenue generated by this increment will be deposited in the City’s General Fund and
be appropriated by the City Council.
Ballot Question: The exact ballot question is listed in the ordinance. The ballot question
is informed by the four polls conducted by the City from September 2025 through
March 2026 and refined by the Cubberley Ad Hoc Committee.
Ballot Arguments: The Cubberley Ad Hoc Committee members are designated to
provide the official ballot argument in favor of the measure. This argument will be
published in the County’s voter guide. If formal opposition is submitted, the Ad Hoc
Committee will also be responsible for authoring a rebuttal. Alternatively, a majority of
the authors of the argument in favor may choose a new slate of authors to submit a
rebuttal argument. The deadlines for the argument in favor of the measure, the
argument against, and the rebuttal are established in this ordinance in coordination
with the County’s deadlines.
Election Consolidation: The City requests and permits the County to consolidate the
election for this ballot measure with all the other races occurring on November 3, 2026,
including the election of three City Councilmembers, as well as other regional, state, and
federal races.
Ordinance Implementing the Measure: The ordinance implementing the ½ cent (0.5%)
tax is included as an attachment to the ordinance calling the election. The implementing
ordinance is written to ensure that this tax is assessed and collected uniformly with the
state sales tax. The California Department of Tax and Fee Administration will collect the
amount on the City’s behalf and deposit the revenue with the City. The implementing
ordinance will be published in the official voter guide for voter transparency. If
approved, the ordinance will be codified into the Palo Alto Municipal Code.
such as the new Public Safety Building, Bike & Pedestrian Plan, and the new parking garage in
the California Avenue district. Regarding the Business Tax, proceeds were intended and used
for transportation and safe train crossings, housing affordability and services for the unhoused,
and public safety.5
FISCAL/RESOURCE IMPACT
The revenue generated by a ½ cent sales tax measure contained in the attached Ordinance is
estimated to generate approximately $13-$15 million annually. This estimate can be impacted
by a variety of factors, including composition of the local economy, economic cycles, one-time
or other factors (i.e. sales volume, consumer behavior)
The Santa Clara County Registrar of Voters (ROV) estimates that placing a measure on the
November 2026 election ballot will cost $100,293. Funding for this expense will be provided by
the Cubberley Community Center Redevelopment CIP Project (CB-26000).
STAKEHOLDER ENGAGEMENT
In parallel with the development of the Cubberley Conceptual Master Plan process, staff
conducted four community polls between April 2025 and March 2026 to gauge community
priorities and voter appetite for a potential ballot measure to support land acquisition and
implementation costs associated with the Cubberley project. Polling results informed
development of the proposed ballot question and funding strategy.
Additional stakeholder engagement related to the proposed ballot measure and broader
Cubberley planning effort included discussions with the City Council Cubberley Ad Hoc
Committee, public City Council meetings, and presentations to the Parks and Recreation
Commission, Planning and Transportation Commission, and Architectural Review Board. These
discussions provided opportunities for public input, refinement of project priorities, and
feedback on funding considerations associated with the long-term vision for the Cubberley
campus.
ENVIRONMENTAL REVIEW
Adoption these pieces of legislation is not a project under CEQA because it involves the creation
of government funding mechanisms or other government fiscal activities which do not involve
any commitment to any specific project which may result in a potentially significant physical
impact on the environment. CEQA regulation 15378(b)(4).
5 See Resolution 10068, “Adopting Advisory Spending Guidelines for Proceeds of a Business Tax to be Submitted to
the Voters for Approval November 2022,” approved August 22, 2022, at
https://www.paloalto.gov/files/assets/public/v/1/city-clerk/election-info/2022/measure-k/reso-10068.pdf
ATTACHMENTS
(To be
released late packet on June 4, 2026)
APPROVED BY:
NOT YET APPROVED
158_20260527_ts24 1
Ordinance No. _____
Ordinance of the Council of the City of Palo Alto
Calling an Election for November 3, 2026 for Submittal to the Qualified Electors of the City a
Measure to Impose a Transactions and Use Tax at a Rate of 0.5%
R E C I T A L S
A. Section 2(b) of Article XIII C of the California Constitution states that “No local
government may impose, extend, or increase any general tax unless and until that tax is
submitted to the electorate and approved by a majority vote. A general tax shall not be deemed
to have been increased if it is imposed at a rate not higher than the maximum rate so approved.
The election required by this subdivision shall be consolidated with a regularly scheduled general
election for members of the governing body of the local government, except in cases of
emergency declared by a unanimous vote of the governing body.”
B. Revenue and Taxation Code section 7285.9 states that “The governing body of any
city may levy, increase, or extend a transactions and use tax for general purposes at a rate of
0.125 percent or a multiple thereof, if the ordinance proposing that tax is approved by a two-
thirds vote of all members of that governing body and the tax is approved by a majority vote of
the qualified voters of the city voting in an election on the issue. The governing body may levy,
increase, or extend more than one transaction and use tax under this section, if the adoption of
each tax is in the manner prescribed in this section. The transactions and use tax shall conform
to Part 1.6 (commencing with Section 7251).”
C. The City Council desires to call and fix an election to submit to the city electors the
question of imposing a general transactions and use tax at a rate of 0.5%.
D. A proposed ordinance attached hereto and incorporated herein by reference as
Attachment “A” (the “Ordinance”) would amend the Palo Alto Municipal Code to add a 0.5%
transactions and use tax imposed in the City. This tax would be a “general tax” as defined in
Article XIII C of the California Constitution.
E. By its Resolution No. _____ as adopted on June 1, 2026, the City Council called a
general municipal election for November 3, 2026 (“Election”).
F. Pursuant to Elections Code Sections 9222 and 10403, Government Code Section
53724, and Charter of the City of Palo Alto Article VI., Section 2, the City Council hereby submits
the Ordinance to the voters of the City.
The City Council of the City of Palo Alto ORDAINS as follows:
SECTION 1. Findings. The City Council finds and determines that each of the findings
set forth above are true and correct.
SECTION 2. Election. The City Council proposes to impose a transactions and use tax
at a rate of 0.5% as set forth in the Ordinance and to present this Ordinance to the voters on
November 3, 2026.
SECTION 3. Measure. The City Council hereby submits a measure for the enactment
of the Ordinance to the voters at the Election and orders the following question to be submitted
to the voters at the Election:
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provide general city services including repairing Cubberley
Community Center for current safety, earthquake,
accessibility standards; upgrading deteriorating electrical
systems, wiring, plumbing; acquiring outdoor space/sites;
maintaining streets, safe, clean downtown/commercial
cores; preparing for natural disasters; repairing
deteriorating community spaces, libraries, shall City of
Palo Alto’s measure enacting a 0.5% (1/2¢) sales tax,
providing approximately $15,600,000 annually until ended
by voters, with published financial audits, all funds used
YES
NO
This question requires the approval of a majority of those casting votes.
SECTION 4. Adoption of Measure. The measure to be submitted to the voters is
attached to this ordinance as Attachment A and incorporated herein by this reference. The City
requests that the full text of the measure be printed in the County’s Voter Information Guide.
SECTION 5. Notice of Election. Notice of the time and place of holding the Election is
hereby given, and the City Clerk is authorized, instructed and directed to give further or additional
notice of the Election, in time, form and manner as required by law.
SECTION 6. Impartial Analysis. Pursuant to Elections Code Section 9280, the City
Council hereby directs the City Clerk to transmit a copy of the measure to the City Attorney. The
City Attorney shall prepare an impartial analysis of the measure, not to exceed 500 words in
length, showing the effect of the measure on the existing law and the operation of the measure,
and transmit such impartial analysis to the City Clerk on or before August 18, 2026 at 4:00 p.m.
SECTION 7. Ballot Arguments. Pursuant to Elections Code Section 9286 et. seq.,
August 11, 2026 at 4:00 p.m. shall be the deadline for submission of arguments in favor of, and
arguments against, any local measures on the ballot. If more than one argument for and/or
against is received, the priorities established by Elections Code Section 9287 shall control.
SECTION 8. Rebuttal Arguments. The provisions of Elections Code Section 9285 shall
control the submission of any rebuttal arguments. The deadline for filing rebuttal arguments shall
be August 18, 2026 at 4:00 p.m.
SECTION 9. Authorization to File Arguments. Pursuant to Elections Code Section
9282(b), the City Council hereby authorizes the following Councilmembers to jointly author and
file a written argument in favor of this measure: (1) Councilmember Julie Lythcott-Haims, (2)
Councilmember Keith Reckdahl, and (3) Councilmember Pat Burt. These three Councilmembers
may alternatively join any grouping authorized by Elections Code 9282(b) to author an argument
in favor of this measure.
3
SECTION 10. Consolidation Request (Elections Code § 10403). The Council of the City
of Palo Alto requests that the Board of Supervisors of the County of Santa Clara permit the
Registrar of Voters to completely consolidate the City’s Municipal Elections for November 3, 2026
and the City Council consents to such consolidation. The Council requests the Board of
Supervisors of Santa Clara County to include on the ballots and sample ballots, all qualified
measures submitted by the City Council to be considered by the qualified electors of the City of
Palo Alto. The Council acknowledges that the Election will be held and conducted according to
procedures in the Elections Code, including Section 10418.
SECTION 11. Request for County Services (Elections Code § 10002 and 10400 et seq.).
Pursuant to Section 10002 of the Elections Code, the Council of the City of Palo Alto hereby
requests the Board of Supervisors of Santa Clara County to permit the Registrar of Voters to
render services to the City of Palo Alto relating to the conduct of Palo Alto’s Municipal Elections
which are called to be held on November 3, 2026, and shall reimburse the county for the costs
incurred by the County of Santa Clara Registrar of Voters in conducting the election for the City
of Palo Alto. The services shall be of the type normally performed by the Registrar of Voters in
assisting the clerks of municipalities in the conduct of elections including, but not limited to,
checking registrations, mailing ballots, hiring election officers and arranging for polling places,
receiving absentee voter ballot applications, mailing and receiving absent voter ballots and
opening and counting same, providing and distributing election supplies, and furnishing voting
machines, the canvassing of the returns of the election, the furnishing of the results of such
canvassing to the City Clerk, and, the performance of other election services as may be requested
by the City Clerk. The City requests the County of Santa Clara Board of Supervisors permit the
County of Santa Clara Registrar of Voters to prepare the City’s election materials.
SECTION 12. Transmittal of Ordinance. The City Clerk is hereby directed to submit
forthwith a certified copy of this ordinance to the Santa Clara County Board of Supervisors and
to the Registrar of Voters.
SECTION 13. Environmental Review. The Ordinance in Attachment A is not a project
under CEQA regulation 15378(b)(4) because it creates a government funding mechanism which
does not involve a commitment to any specific project which may result in a potentially significant
physical impact on the environment.
//
//
//
//
4
SECTION 14. Effective Date. This ordinance shall take effect upon adoption pursuant
to PAMC section 2.04.330(a)(1) as an ordinance calling or otherwise relating to an election.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSENTIONS:
ATTEST:
____________________________ ____________________________
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
____________________________ ____________________________
Assistant City Attorney City Manager
____________________________
Chief Financial Officer
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Attachment A
** START HERE **
ORDINANCE NO._________
AN ORDINANCE OF THE CITY OF PALO ALTO IMPOSING A TRANSACTIONS AND
USE TAX TO BE ADMINISTERED BY THE CALIFORNIA DEPARTMENT OF TAX AND
FEE ADMINISTRATION
THE PEOPLE OF THE CITY OF PALO ALTO DO ORDAIN AS FOLLOWS, which shall be
codified as Palo Alto Municipal Code Chapter 2.38:
Section 1. 2.38.010 TITLE. This chapter shall be known as the 2026 Transactions and Use
Tax Ordinance. The City of Palo Alto hereinafter shall be called “City.” This Chapter shall be
applicable in the incorporated territory of the City.
Section 2. 2.38.020 OPERATIVE DATE. “Operative Date” means the first day of the first
calendar quarter commencing more than 110 days after the adoption of this ordinance. For
purposes of Revenue and Taxation Code section 7265, this Chapter shall be considered adopted
on the date of the election in which it is approved by the qualified voters of the City.
Section 3. 2.38.030 PURPOSE. This Chapter is adopted to achieve the following, among
other purposes, and directs that the provisions hereof be interpreted in order to accomplish those
purposes:
A. To impose a retail transactions and use tax in accordance with the provisions of Part 1.6
(commencing with Section 7251) of Division 2 of the Revenue and Taxation Code and Section
7285.9 of Part 1.7 of Division 2 which authorizes the City to adopt this tax ordinance which shall
be operative if a majority of the electors voting on the measure vote to approve the imposition of
the tax at an election called for that purpose.
B. To adopt a retail transactions and use tax ordinance that incorporates provisions
identical to those of the Sales and Use Tax Law of the State of California insofar as those
provisions are not inconsistent with the requirements and limitations contained in Part 1.6 of
Division 2 of the Revenue and Taxation Code.
C. To adopt a retail transactions and use tax ordinance that imposes a tax and provides a
measure therefore that can be administered and collected by the California Department of Tax
and Fee Administration in a manner that adapts itself as fully as practicable to, and requires the
least possible deviation from, the existing statutory and administrative procedures followed by
the California Department of Tax and Fee Administration in administering and collecting the
California State Sales and Use Taxes.
D. To adopt a retail transactions and use tax ordinance that can be administered in a
manner that will be, to the greatest degree possible, consistent with the provisions of Part 1.6 of
Division 2 of the Revenue and Taxation Code, minimize the cost of collecting the transactions
and use taxes, and at the same time, minimize the burden of record keeping upon persons subject
to taxation under the provisions of this ordinance.
6
Section 4. 2.38.040 CONTRACT WITH STATE. Prior to the operative date, the City shall
contract with the California Department of Tax and Fee Administration to perform all functions
incident to the administration and operation of this Chapter; provided, that if the City shall not
have contracted with the California Department of Tax and Fee Administration prior to the
operative date, it shall nevertheless so contract and in such a case the operative date shall be the
first day of the first calendar quarter following the execution of such a contract.
Section 5. 2.38.050 TRANSACTIONS TAX RATE. For the privilege of selling tangible
personal property at retail, a tax is hereby imposed upon all retailers in the incorporated territory
of the City at the rate of 0.5% of the gross receipts of any retailer from the sale of all tangible
personal property sold at retail in said territory on and after the operative date of this Chapter. If
imposition of this tax at a rate of 0.5% of gross receipts would cause the limit established
in section 7251.1 of the Revenue and Taxation Code to be exceeded, then the tax shall be applied
at the maximum rate possible to comply with the limit established in section 7251.1 of the
Revenue and Taxation Code until such time that the tax can be applied at a rate of 0.5% of gross
receipts and comply with the limit established in section 7251.1 of the Revenue and Taxation
Code.
Section 6. 2.38.060 PLACE OF SALE. For the purposes of this Chapter, all retail sales are
consummated at the place of business of the retailer unless the tangible personal property sold is
delivered by the retailer or his agent to an out-of-state destination or to a common carrier for
delivery to an out-of-state destination. The gross receipts from such sales shall include delivery
charges, when such charges are subject to the state sales and use tax, regardless of the place to
which delivery is made. In the event a retailer has no permanent place of business in the State or
has more than one place of business, the place or places at which the retail sales are
consummated shall be determined under rules and regulations to be prescribed and adopted by
the California Department of Tax and Fee Administration.
Section 7. 2.38.070 USE TAX RATE. An excise tax is hereby imposed on the storage, use
or other consumption in the City of tangible personal property purchased from any retailer on
and after the operative date of this Chapter for storage, use or other consumption in said territory
at the rate of 0.5% of the sales price of the property. The sales price shall include delivery
charges when such charges are subject to state sales or use tax regardless of the place to which
delivery is made. If imposition of this tax at a rate of 0.5% of the sales price of property would
cause the limit established in section 7251.1 of the Revenue and Taxation Code to be exceeded,
then the tax shall be applied at the maximum rate possible to comply with the limit established
in section 7251.1 of the Revenue and Taxation Code until such time that the tax can be applied at
a rate of 0.5% of the sales price of property and comply with the limit established in section
7251.1 of the Revenue and Taxation Code.
Section 8. 2.38.080 ADOPTION OF PROVISIONS OF STATE LAW. Except as
otherwise provided in this Chapter and except insofar as they are inconsistent with the provisions
of Part 1.6 of Division 2 of the Revenue and Taxation Code, all of the provisions of Part 1
(commencing with Section 6001) of Division 2 of the Revenue and Taxation Code are hereby
adopted and made a part of this Chapter as though fully set forth herein.
Section 9. 2.38.090 LIMITATIONS ON ADOPTION OF STATE LAW AND
COLLECTION OF USE TAXES. In adopting the provisions of Part 1 of Division 2 of the
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Revenue and Taxation Code:
A. Wherever the State of California is named or referred to as the taxing agency,
the name of this City shall be substituted therefor. However, the substitution shall not be made
when:
1. The word “State” is used as a part of the title of the State Controller, State
Treasurer, State Treasury, or the Constitution of the State of California;
2. The result of that substitution would require action to be taken by or against
this City or any agency, officer, or employee thereof rather than by or against the California
Department of Tax and Fee Administration, in performing the functions incident to the
administration or operation of this Chapter.
3. In those sections, including, but not necessarily limited to sections referring
to the exterior boundaries of the State of California, where the result of the substitution would be
to:
a. Provide an exemption from this tax with respect to certain sales, storage,
use or other consumption of tangible personal property which would not otherwise be exempt
from this tax while such sales, storage, use or other consumption remain subject to tax by the
State under the provisions of Part 1 of Division 2 of the Revenue and Taxation Code, or;
b. Impose this tax with respect to certain sales, storage, use or other
consumption of tangible personal property which would not be subject to tax by the state under
the said provision of that code.
4. In Sections 6701, 6702 (except in the last sentence thereof), 6711, 6715,
6737, 6797 or 6828 of the Revenue and Taxation Code.
B. The word “City” shall be substituted for the word “State” in the phrase “retailer
engaged in business in this State” in Section 6203 and in the definition of that phrase in Section
6203.
1. “A retailer engaged in business in the District” shall also include any retailer
that, in the preceding calendar year or the current calendar year, has total combined sales of
tangible personal property in this state or for delivery in the State by the retailer and all persons
related to the retailer that exceeds five hundred thousand dollars ($500,000). For purposes of this
section, a person is related to another person if both persons are related to each other pursuant to
Section 267(b) of Title 26 of the United States Code and the regulations thereunder.
Section 10. 2.38.100 PERMIT NOT REQUIRED. If a seller’s permit has been issued to a
retailer under Section 6067 of the Revenue and Taxation Code, an additional transactor’s permit
shall not be required by this Chapter.
Section 11. 2.38.110 EXEMPTIONS AND EXCLUSIONS.
A. There shall be excluded from the measure of the transactions tax and the use tax
the amount of any sales tax or use tax imposed by the State of California or by any city, city and
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county, or county pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law or the
amount of any state-administered transactions or use tax.
B. There are exempted from the computation of the amount of transactions tax the
gross receipts from:
1. Sales of tangible personal property, other than fuel or petroleum products, to
operators of aircraft to be used or consumed principally outside the county in which the sale is
made and directly and exclusively in the use of such aircraft as common carriers of persons or
property under the authority of the laws of this State, the United States, or any foreign
government.
2. Sales of property to be used outside the City which is shipped to a point
outside the City, pursuant to the contract of sale, by delivery to such point by the retailer or his
agent, or by delivery by the retailer to a carrier for shipment to a consignee at such point. For the
purposes of this paragraph, delivery to a point outside the City shall be satisfied:
a. With respect to vehicles (other than commercial vehicles) subject to
registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle
Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, and
undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the
Vehicle Code by registration to an out-of-City address and by a declaration under penalty of
perjury, signed by the buyer, stating that such address is, in fact, his or her principal place of
residence; and
b. With respect to commercial vehicles, by registration to a place of
business out-of-City and declaration under penalty of perjury, signed by the buyer, that the
vehicle will be operated from that address.
3. The sale of tangible personal property if the seller is obligated to furnish the
property for a fixed price pursuant to a contract entered into prior to the operative date of this
Chapter.
4. A lease of tangible personal property which is a continuing sale of such
property, for any period of time for which the lessor is obligated to lease the property for an
amount fixed by the lease prior to the operative date of this Chapter.
5. For the purposes of subparagraphs (3) and (4) of this section, the sale or
lease of tangible personal property shall be deemed not to be obligated pursuant to a contract or
lease for any period of time for which any party to the contract or lease has the unconditional
right to terminate the contract or lease upon notice, whether or not such right is exercised.
C. There are exempted from the use tax imposed by this Chapter, the storage, use
or other consumption in this City of tangible personal property:
1. The gross receipts from the sale of which have been subject to a transactions
tax under any state-administered transactions and use tax ordinance.
2. Other than fuel or petroleum products purchased by operators of aircraft and
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used or consumed by such operators directly and exclusively in the use of such aircraft as
common carriers of persons or property for hire or compensation under a certificate of public
convenience and necessity issued pursuant to the laws of this State, the United States, or any
foreign government. This exemption is in addition to the exemptions provided in Sections 6366
and 6366.1 of the Revenue and Taxation Code of the State of California.
3. If the purchaser is obligated to purchase the property for a fixed price
pursuant to a contract entered into prior to the operative date of this Chapter.
4. If the possession of, or the exercise of any right or power over, the tangible
personal property arises under a lease which is a continuing purchase of such property for any
period of time for which the lessee is obligated to lease the property for an amount fixed by a
lease prior to the operative date of this Chapter.
5. For the purposes of subparagraphs (3) and (4) of this section, storage, use, or
other consumption, or possession of, or exercise of any right or power over, tangible personal
property shall be deemed not to be obligated pursuant to a contract or lease for any period of
time for which any party to the contract or lease has the unconditional right to terminate the
contract or lease upon notice, whether or not such right is exercised.
6. Except as provided in subparagraph (7), a retailer engaged in business in the
City shall not be required to collect use tax from the purchaser of tangible personal property,
unless the retailer ships or delivers the property into the City or participates within the City in
making the sale of the property, including, but not limited to, soliciting or receiving the order,
either directly or indirectly, at a place of business of the retailer in the City or through any
representative, agent, canvasser, solicitor, subsidiary, or person in the City under the authority of
the retailer.
7. “A retailer engaged in business in the City” shall also include any retailer of
any of the following: vehicles subject to registration pursuant to Chapter 1 (commencing with
Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section
21411 of the Public Utilities Code, or undocumented vessels registered under Division 3.5
(commencing with Section 9840) of the Vehicle Code. That retailer shall be required to collect
use tax from any purchaser who registers or licenses the vehicle, vessel, or aircraft at an address
in the City.
D. Any person subject to use tax under this Chapter may credit against that tax any
transactions tax or reimbursement for transactions tax paid to a district imposing, or retailer
liable for a transactions tax pursuant to Part 1.6 of Division 2 of the Revenue and Taxation Code
with respect to the sale to the person of the property the storage, use or other consumption of
which is subject to the use tax.
Section 12. 2.38.120 AMENDMENTS. All amendments subsequent to the effective date of
this Chapter to Part 1 of Division 2 of the Revenue and Taxation Code relating to sales and use
taxes and which are not inconsistent with Part 1.6 and Part 1.7 of Division 2 of the Revenue and
Taxation Code, and all amendments to Part 1.6 and Part 1.7 of Division 2 of the Revenue and
Taxation Code, shall automatically become a part of this Chapter, provided however, that no
such amendment shall operate so as to affect the rate of tax imposed by this Chapter.
10
Section 13. 2.38.130 ENJOINING COLLECTION FORBIDDEN. No injunction or writ of
mandate or other legal or equitable process shall issue in any suit, action or proceeding in any
court against the State or the City, or against any officer of the State or the City, to prevent or
enjoin the collection under this Chapter, or Part 1.6 of Division 2 of the Revenue and Taxation
Code, of any tax or any amount of tax required to be collected.
Section 14. 2.38.140 SEVERABILITY. If any provision of this Chapter or the application
thereof to any person or circumstance is held invalid, the remainder of the Chapter and the
application of such provision to other persons or circumstances shall not be affected thereby.
Section 15. 2.38.150 EFFECTIVE DATE. This Chapter relates to the levying and collecting
of the City transactions and use taxes and shall take effect immediately.
Section 16. 2.38.160 TERMINATION DATE. The authority to levy the tax imposed by this
Chapter shall expire when repealed by the voters of the City of Palo Alto.
Section 17 (to be uncodified). EXECUTION. The City Clerk and the Mayor are hereby
authorized to attest to the adoption of this Ordinance by the voters of the City by signing where
indicated below.
I hereby certify that the foregoing Ordinance was APPROVED by the People of the City of
Palo Alto voting in the election on November 3, 2026.
ATTEST:
__________________________ ___________________________
City Clerk Mayor
APPROVED AS TO FORM:
___________________________ ___________________________
City Attorney or designee City Manager
** END HERE **
NOT YET APPROVED
159_20250527_ts24 1
Resolution No. _____
Resolution of the Council of the City of Palo Alto
Requesting Election Consolidation and Election Services for a Ballot Measure to Impose a Local
Transactions and Use Tax at a Rate of 0.5%
R E C I T A L S
A.The City Council, by Ordinance No. ______, adopted at the same time as this
companion resolution, formally called an election for the submission of a ballot measure to the
voters of Palo Alto to impose a transactions and use tax at a rate of 0.5% for the November 3,
2026 election.
B.To the extent a resolution is required by Elections Code sections 10002 and 10403,
the City Council hereby requests consolidation of the ballot measure described above with the
statewide election on November 3, 2026 and related elections services from the County of Santa
Clara.
The City Council of the City of Palo Alto resolves as follows:
SECTION 1. Findings. The City Council adopts each of the findings set forth above.
SECTION 2. Measure. The exact form of the question shall be as follows:
provide general city services including repairing Cubberley
Community Center for current safety, earthquake,
accessibility standards; upgrading deteriorating electrical
systems, wiring, plumbing; acquiring outdoor space/sites;
maintaining streets, safe, clean downtown/commercial
cores; preparing for natural disasters; repairing
deteriorating community spaces, libraries, shall City of
Palo Alto’s measure enacting a 0.5% (1/2¢) sales tax,
providing approximately $15,600,000 annually until ended
by voters, with published financial audits, all funds used
YES
NO
This question requires the approval of a majority of those casting votes.
SECTION 3. Consolidation Request (Elections Code § 10403). The Council of the City
of Palo Alto requests that the Board of Supervisors of the County of Santa Clara permit the
Registrar of Voters to completely consolidate the City’s Municipal Elections for November 3, 2026
and the City Council consents to such consolidation. The Council requests the Board of
Supervisors of Santa Clara County to include on the ballots and sample ballots, all qualified
measures submitted by the City Council to be considered by the qualified electors of the City of
Palo Alto. The Council acknowledges that the Election will be held and conducted according to
2
procedures in the Elections Code, including Section 10418.
SECTION 4. Request for County Services (Elections Code § 10002 and 10400 et seq.).
Pursuant to Section 10002 of the Elections Code, the Council of the City of Palo Alto hereby
requests the Board of Supervisors of Santa Clara County to permit the Registrar of Voters to
render services to the City of Palo Alto relating to the conduct of Palo Alto’s Municipal Elections
which are called to be held on November 3, 2026, and shall reimburse the county for the costs
incurred by the County of Santa Clara Registrar of Voters in conducting the election for the City
of Palo Alto. The services shall be of the type normally performed by the Registrar of Voters in
assisting the clerks of municipalities in the conduct of elections including, but not limited to,
checking registrations, mailing ballots, hiring election officers and arranging for polling places,
receiving absentee voter ballot applications, mailing and receiving absent voter ballots and
opening and counting same, providing and distributing election supplies, and furnishing voting
machines, the canvassing of the returns of the election, the furnishing of the results of such
canvassing to the City Clerk, and, the performance of other election services as may be requested
by the City Clerk. The City requests the County of Santa Clara Board of Supervisors permit the
County of Santa Clara Registrar of Voters to prepare the City’s election materials.
SECTION 5. Environmental Review. This ballot measure is not a project under CEQA
regulation 15378(b)(4) because it creates a government funding mechanism which does not
involve a commitment to any specific project which may result in a potentially significant physical
impact on the environment.
SECTION 6. No Conflicting Interpretations. This Resolution is intended to be a
companion to Ordinance No. _______ to fulfill any legal requirement that the requests for
consolidation, for election services, and the ballot question be contained in a resolution. This
Resolution shall not be interpreted to conflict with Ordinance No. ______.
//
//
//
//
//
//
3
SECTION 7. Effective Date. This resolution shall take effect upon adoption.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSENTIONS:
ATTEST:
__________________________ _____________________________
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
__________________________ _____________________________
Assistant City Attorney City Manager
Attachment D
The Cubberley Site
1
2
3
Memorandum of Understanding with PAUSD
4 both the City Council and Palo Alto Unified School District (PAUSD or
District) Board of Education approved a Memorandum of Understanding (MOU) related
to the future of the Cubberley site. The MOU outlines key terms and conditions for the
purchase and future planning of Cubberley. The land purchase, which would transfer
ownership of seven acres from PAUSD to the City, is contingent on voter approval of a
bond measure in November 2026. This condensed timeframe requires development of
a master plan for the site by March 2026, conduct stakeholder and community
engagement and outreach, polling, financial analysis, CEQA analysis, and other critical
tasks. The addition of the seven acres, plus the eight acres already owned by the City of
1 City Council, December 2, 2024: https://portal.laserfiche.com/Portal/DocView.aspx?id=112707&repo=r-
704298fc&searchid=c3e3ed6f-6cda-4dd3-ba35-5d8d4be5579e
2 https://www.cityofpaloalto.org/files/assets/public/v/1/city-manager/communications-office/cubberley-
community-center_mappdf.pdf
3 Cubberley Concept Plan 2019: https://www.pausd.org/about-us/committees-task-forces/archived-
committees/cubberley-master-plan
4 City Council, October 7, 2024; Agenda Item AA1; SR #2409-3500,
https://portal.laserfiche.com/Portal/DocView.aspx?id=98415&repo=r-704298fc&searchid=e199f724-22ab-
472b8ad8-ca162c4dcf8a
Attachment D
Palo Alto provides an opportunity to develop a new community center and other
improvements on a combined 15 acres at the Cubberley site to provide a range of City
programs, including health, wellness, and recreational opportunities for residents.
Master Plan Update and Pursuit of a Local Ballot Measure
9 related to the future of the Cubberley site. These actions included
approval of a contract with Concordia, LLC, and associated budget actions for
development of a revised Master Plan for the Cubberley Community Center site,
building on the previous master plan completed in 2019 by Concordia and guided by
significant community input. Additionally, the Council approved a Letter of Intent with
the Friends of the Palo Alto Recreation Wellness Center for the purpose of fundraising
for a recreation wellness center (gymnasium) at the Cubberley site, and a workplan for
pursuit of a November 2026 local ballot measure to fund the purchase of land and
development of a new community center at the Cubberley site.
10 to
continue the current use of the property, including playing fields, approval of a
professional services agreement with Rincon for CEQA analysis,11 and approval of
professional service agreements with Lew Edwards Group and Fairbank, Maslin, Metz
& Associates12 for ballot measure strategy advisement and community polling.
Cubberley Ad Hoc Committee
9 City Council, December 2, 2024; Agenda Item 18, SR #2410-3634,
https://portal.laserfiche.com/Portal/DocView.aspx?id=112713&repo=r-704298fc
10 City Council, December 2, 2024; Agenda Item 12; SR #2410-3651,
https://portal.laserfiche.com/Portal/DocView.aspx?id=112707&repo=r-704298fc
11 City Council, December 16, 2024; Agenda Item 12; SR #2411-3813,
https://portal.laserfiche.com/Portal/DocView.aspx?id=117742&repo=r-704298fc&searchid=96e9506b-
f1bd-485e-a4cb-fc804b5893d1
12 City Council, February 24, 2025; Agenda Item 4; SR #2501-4039,
https://portal.laserfiche.com/Portal/DocView.aspx?id=143364&repo=r-704298fc&searchid=fef509a6-
4d34-4060-bc7a-6ab87db7a0ae
Attachment D
operating and financial models, and decisions on what should be placed on the
November 2026 ballot.
April 21, 2025 City Council Meeting
17 City Council meeting, staff presented outcomes from the first
community meeting held on March 19, an update on the Cubberley Master Plan Project
workplan and sought Council authorization to initiate the first community poll.
18 .
17 City Council, April 21, 2025; Agenda Item 11; SR #2503-4310,
https://portal.laserfiche.com/Portal/DocView.aspx?id=166428&repo=r-704298fc
18 Staff Presentation, April 21, 2025;
https://cityofpaloalto.primegov.com/Portal/viewer?id=0&type=7&uid=71ade3d7-a57a-4195-a59b-
c410d90832ea
Attachment D
Theater/Performance Space, Greenspace, Makerspace, and Senior/Multigenerational
Programs.
21. The poll themes and questions were developed
with input from the Cubberley Ad Hoc Committee and will inform critical upcoming
milestones in the project. The Council did not take an action but supported proceeding
with the poll.
April 22,2025 Parks & Recreation Commission Meeting
22 staff presented an informational update to the Parks and
Recreation Commission, offering a comprehensive overview of the project's overall
workplan and timeline. The presentation included a detailed summary of Community
Meeting #1, highlighting key themes and priorities that emerged from the community’s
feedback. Staff also introduced Poll #1, which was launched at the end of April, and
encouraged Commissioners to help promote the survey to ensure broad community
participation. In addition, the presentation outlined several ways the Commission can
remain engaged and support the project, including serving as ambassadors within the
community, helping to share information, and providing feedback. The creation of a
PRC Cubberley ad-hoc committee was discussed and it was decided that this topic will
be further considered during the upcoming workplan revisions scheduled for the coming
months.
June 9, 2025 City Council Meeting
23 staff presented to City Council the results of the first community poll,
community engagement milestones coming up and updates to the workplan. The focus
of the first poll was to survey voter input on the goals and future of the community
center and possible support for a tax or bond measure. Staff also shared community
engagement. Overall, the poll found broad majority support for improvement at the
Cubberley site. Surveyed voters place highest priority on bringing the facility up to
modern standards for electrical, plumbing, safety, and accessibility early childhood
21 FM3 Presentation, April 21, 2025;
https://cityofpaloalto.primegov.com/Portal/viewer?id=0&type=7&uid=83ec6422-b6e4-4e83-9ca3-
ca746a5971a0
22 Staff Presentation, April 22, 2025;
https://cityofpaloalto.primegov.com/Portal/viewer?id=0&type=7&uid=dae0543c-e007-4fc1-9a69-
fd08b156ee94
23 City Council, June 9, 2025, Agenda Item 2; SR#2503-4313,
https://portal.laserfiche.com/Portal/DocView.aspx?id=182790&repo=r-704298fc&searchid=57dac2b5-
5c42-4ef0-978a-be940766f395
Attachment D
education; affordability and efficient use of taxpayer dollars; and overall repairs for the
facility. Lastly, staff shared with the City Council the community revised Vision
Statement for the future of the Community Center.
June 12, 2025 Second Cubberley Master Plan Community Meeting
A vibrant, beloved,
and adaptable destination that promotes learning, connections, joy, and wellbeing
where all cultures and generations belong. Following this, staff provided an overview
presentation to orient attendees to the three 3-D concept plans being presented. Each
conceptual design includes an A, B, and C variations exploring different configurations
of building placement, new construction vs renovation, green space, bike and
pedestrian circulation, and parking—both above and below ground.
27.
27 Community Meeting #2 Summary, www.paloalto.gov/files/4280f185-ca1d-4965-940f-1e4fcaf6cb11/M2-
Summary-Report-Final.pdf
Attachment D
June 19, 2025 Public Art Commission Meeting
On June 19, 2025,29 City staff presented to the Public Art Commission and discussed
potential opportunities to support the City’s Strategic Activation Plan for the Cubberley
site, which was developed by staff in coordination with the City Council’s Cubberley Ad
Hoc Committee. The plan outlined phased enhancements and activations aligned with
the broader master planning process, community engagement efforts, and the
anticipated November 2026 ballot initiative. As part of the discussion, Commissioners
explored how the ArtLift grant program—previously identified at their January retreat as
a potential tool—could be leveraged to support temporary public art installations at
Cubberley and other key locations. Ideas included murals, ground art, freestanding
sculptures, and performance-based activations to help generate community excitement
and reinforce the role of the arts in creating vibrant, inclusive public spaces.
June 24, 2025 Parks & Recreation Commission Meeting
On June 24, 2025,30 City staff provided the Parks and Recreation Commission with an
informational update on the Cubberley Community Center Master Plan. The
presentation included a recap of the second community meeting held on June 12,
where Concordia unveiled three concept designs for the site and invited community
feedback. Staff also presented the results of the first community poll, released in late
April, and shared a list of proposed near-term activation ideas for the Cubberley site,
inviting the Commission’s input. In addition, staff sought feedback from the Commission
on the three concept designs. The newly formed PRC Cubberley Ad Hoc Committee will
continue to refine the activation plans in July.
July 9, 2025 Planning and Transportation Commission Meeting
On July 9, 2025,31 the Planning and Transportation Commission (PTC) received an
update on the Cubberley Master Plan and was asked to provide input to help inform the
next phase of the planning process. Staff requested feedback on several key aspects
recently reviewed by the community, including arrival and parking, pedestrian
circulation, building scale and space organization, greenspace layout, the balance of
29 Staff Presentation, June 19, 2025;
https://cityofpaloalto.primegov.com/Portal/viewer?id=0&type=7&uid=a036e199-31cd-4d94-8214-
7fb0170e39ac
30 Staff Presentation, June 24, 2025;
https://cityofpaloalto.primegov.com/Portal/viewer?id=0&type=7&uid=ac29aa36-1b3a-4403-b8b2-
cc403685865d
31 Staff Presentation, June 9, 2025;
https://cityofpaloalto.primegov.com/Portal/viewer?id=0&type=7&uid=49fc32cf-caa1-4dd9-97f9-
5d5d02150256
Attachment D
built and open space, and how the site can be a good neighbor. Additional PTC
feedback emphasized the importance of clear cost comparisons between renovation
and new construction, interest in public-private funding models, and support for a future
bond measure and donor engagement. Commissioners favored partial underground
parking and better integration with transit and surrounding neighborhoods. There was
broad interest in maintaining flexible green space for events, ensuring safe and
separate bike/pedestrian circulation, and preserving multigenerational, inclusive
programming. Suggestions also included clearer diagrams, more tangible use
examples, and consideration of impacts from surrounding development.
July 17, 2025 Architectural Review Board Meeting
35, the Architectural Review Board (ARB) received a presentation on
the Cubberley Master Plan and provided early feedback to help shape the next phase of
planning. The Board expressed strong support for phased development and
emphasized minimizing disruption to existing tenants and programs. Members praised
pedestrian and bike circulation, supported the proposed balance of buildings and green
space, and encouraged improvements to vehicle access and mobility hubs. There was
general support for new construction over renovation and interest in enhancing the site's
identity through public art and flexible community spaces. The ARB also encouraged a
welcoming design that reflects Cubberley’s civic and cultural significance while being a
good neighbor to the surrounding community.
September 17, 2025 Third Cubberley Master Plan Community Meeting
35 Staff Presentation, July 17, 2025;
https://cityofpaloalto.primegov.com/Portal/viewer?id=0&type=7&uid=2a9a7988-768f-465b-bcf9-
68166ff9af6f
Attachment D
Phase 1 consists of two parts: a Recreation Wellness Center and a Performing Arts
Center. Phase 1 also includes renovation of remaining buildings so the full site
continues to be operational until phases 2 and 3 can be completed. Community
members were invited to assess the Phase 1 concept designs for the recreation
wellness and performing arts area and were asked to reflect on three key questions:
37.
September 23, 2025 Parks and Recreation Commission Meeting
38, the Parks and Recreation Commission (PRC) received a
presentation on the refined Cubberley Community Center Master Plan concept following
the third and final community meeting held on September 17, 2025. Commissioners
reviewed updates on program placement, phasing, and site circulation, and were asked
37 Community Meeting #3 Summary; www.paloalto.gov/files/assets/public/v/1/community-
services/cubberley-project/2025.11.11_m3-summary.pdf
38 Staff Presentation, September 23, 2025;
https://cityofpaloalto.primegov.com/viewer/preview?id=0&type=8&uid=efbb1418-4bbe-49b2-b786-
165e29017ca3
Attachment D
to provide input on the same questions posed to the community: what is working well,
what could be improved, and what creative ideas could enhance the campus
experience.
October 20, 2025 City Council Meeting
41 with an emphasis on the first phase of site
development showing a combination of renovated and new building construction. The
focus on the first phase recognizes that funding will likely be a limiting factor in full site
redevelopment. At this meeting, staff shared objectives and themes for the second
community poll to determine voter support for a bond or tax measure to finance the land
purchase, and the extent of how much voters are willing to pay annually. Following the
October 20 meeting the second poll was conducted.
December 15, 2025 City Council Meeting
42,
including results from the second community poll and discussed next steps. Council
discussed key findings from Poll #2, which indicate broad voter support for the City
acquiring the Cubberley property and willingness to invest in limited funding focused on
basic repairs, safety upgrades, and accessibility improvements. Results showed
relatively higher support for parcel tax and sales tax funding mechanisms, with a $250
average annual parcel tax testing above 50% support and a 0.5% sales tax increase
capable of supporting significantly greater capital financing, pending state authorization.
41 City Council, October 20,2025; Agenda Item #1; SR #2503-4353,
https://portal.laserfiche.com/Portal/DocView.aspx?id=231071&repo=r-704298fc
42 City Council, December 15, 2025; Agenda Item #3; SR #2503-4355,
https://portal.laserfiche.com/Portal/DocView.aspx?id=246305&repo=r-704298fc
Attachment D
Council expressed alignment with staff and the Ad Hoc Committee’s recommendation to
continue refining ballot measure options and to launch a third poll in January 2026 to
further test potential parcel tax and sales tax scenarios.
February 9, 2026 City Council Meeting
45,
including results from the third community poll and progress on public-private
partnerships to advance key components of the project. Staff shared that, in anticipation
of possible Council consideration of a November 2026 ballot measure to fund the
purchase of seven acres from PAUSD and advance all or portions of the project, three
of four planned community polls have been completed. Results show both parcel tax
and sales tax funding options testing at approximately 48% support—an improvement
from the prior poll, though still below the thresholds required for approval (two-thirds for
a parcel tax and a simple majority for a general-purpose sales tax). Despite these
challenges, Councilmembers remained optimistic, noting that support levels are
approaching viability, particularly for a sales tax option, and that emerging public-private
partnerships could strengthen the overall funding strategy.
45 City Council, February 9, 2026; Agenda Item #11; SR#2512-5774,
https://cityofpaloalto.primegov.com/viewer/preview?id=0&type=8&uid=fd6f9939-83a3-4ea7-817a-
e7719c9194a4
Attachment D
expressed interest in exploring partnership opportunities with the City at the Cubberley
site.
March 11, 2026 Planning and Transportation Commission and Architectural
Review Board Special Joint Meeting
47 on the proposed
Cubberley Conceptual Master Plan and the Draft Initial Study/Mitigated Negative
Declaration (IS/MND) prepared under the California Environmental Quality Act (CEQA).
Staff presented the City’s long-term vision to redevelop approximately 15 acres of the
Cubberley campus, including the potential purchase of seven acres from the Palo Alto
Unified School District (PAUSD) for $65.5 million. Staff noted that the purchase and
implementation of the plan will depend on identifying funding sources, which may
include a potential sales tax ballot measure in November 2026, development impact
fees, grants, philanthropic contributions, and public-private partnerships.
47 Staff Presentation, March 11, 2026;
https://cityofpaloalto.primegov.com/viewer/preview?id=0&type=8&uid=c9289f37-122b-455b-959c-
febb294cc3c1
Attachment D
and staff to evaluate as the project moves forward into future phases of planning and
design. Below are the approved motions:
Attachment D
March 24, 2026 Parks and Recreation Commission Meeting
The Parks and Recreation Commission received a presentation from staff49 on the
proposed Cubberley Conceptual Master Plan and the Draft Initial Study/Mitigated
Negative Declaration (IS/MND) prepared under the California Environmental Quality Act
(CEQA), and results of the second and third community polls. Staff presented the City’s
long-term vision to redevelop approximately 15 acres of the Cubberley campus,
including the potential purchase of seven acres from the Palo Alto Unified School
District (PAUSD) for $65.5 million. Staff noted that the purchase and implementation of
the plan will depend on identifying funding sources, which may include a potential parcel
or sales tax ballot measure in November 2026, development impact fees, grants,
philanthropic contributions, and public-private partnerships.
Staff requested that the commission review and consider the Draft IS/MND and provide
a recommendation to the City Council regarding adoption of the Conceptual Master
Plan. City Council is scheduled to consider adoption of the plan in April 2026, while staff
continue advancing environmental review, partnership discussions, and funding and
financing strategies.
Commissioners expressed strong appreciation for the work completed to date and
shared overall excitement about the vision and direction of the project. Discussion
included the use of a Mitigated Negative Declaration under CEQA and the level of detail
at the conceptual stage, particularly related to architectural and landscape design,
including tree preservation and future planting strategies. The Commission also
considered key program elements such as recreation amenities and amphitheater
capacity, as well as project phasing, funding flexibility, and timelines tied to land
acquisition and partnership opportunities. Commissioners also discussed construction
impacts on existing operations and opportunities to support the project through grants,
partnerships, and continued community engagement and activation efforts. Following
discussion and public comment, Commissioner Smith made a motion to recommend the
City Council adopt the Cubberley Conceptual Master Plan, it was seconded by Vice
Chair Wei, and the vote passed (5–0) with 1 commissioner choosing to abstain.
Staff presented the Draft Conceptual Master Plan, Mitigated Negative Declaration, and
results of the fourth community poll to the City Council. Staff’s recommendation to
49 Staff Presentation, March 24, 2026;
https://cityofpaloalto.primegov.com/viewer/preview?id=0&type=8&uid=247caade-d1e4-47ca-b8e1-
bc3f8694739e
Attachment D
adopt a Resolution adopting the Mitigated Negative Declaration and the Cubberley
Conceptual Master Plan was approved by Council unanimously. Staff also
recommended the Council provide direction on next steps to advance the project.
Following a presentation on the fourth-round polling results, the Council directed staff to
pursue a ½ cent sales tax measure on the November 2026 ballot.
1
0
1
3
4
City Council
Staff Report
Report Type: ACTION ITEMS
Lead Department: Community Services
Meeting Date: June 8, 2026
Report #:2606-6447
TITLE
Adopt an Ordinance and Resolution Calling an Election and Placing a ½ Cent (0.5%) Transactions
and Use Tax Measure on the November 3, 2026 Ballot; and a Resolution Adopting Advisory
Spending Guidelines for the Use of the Proceeds if the Measure Passes to Support Improving the
Cubberley Community Center; CEQA Status - Not a Project.
BACKGROUND
As indicated in Staff Report #2603-6081, Attachment C of Item #8 is being published as a late
packet report on June 4, 2026.
ATTACHMENTS
Attachment C: Resolution Adopting Advisory Spending Guidelines for Proceeds of a Transactions
and Use Tax to be Submitted to the Voters for Approval in November 2026
APPROVED BY:
Mahealani Ah Yun, City Clerk
*NOT YET APPROVED*
1
161_20260603_ts24
Resolution No. _____
Resolution of the Council of the City of Palo Alto Adopting Advisory
Spending Guidelines for Proceeds of a Transactions and Use Tax to be
Submitted to the Voters for Approval in November 2026
R E C I T A L S
A. The City owns eight acres of the 35-acre Cubberley site, located at 4000 Middlefield Road,
and currently operates the areas it controls as a community center, using some of the spaces
for classes and activities in arts and culture, athletics, and leases additional space to various
non-profit and community serving groups. PAUSD owns the remaining 27 acres, most of
which are leased to the City. The areas that remain under PAUSD ownership and that are not
leased to the City are used for PAUSD’s education purposes, staff offices, or third-party
tenants.
B. On October 7, 2024 the City Council and Palo Alto Unified School District (PAUSD or District)
Board of Education approved a Memorandum of Understanding (MOU) outlining key terms
and conditions for the City’s purchase of seven additional acres of land from PAUSD,
contingent on voter approval of a bond measure in November 2026. The addition of the seven
acres, plus the eight acres already owned by the City of Palo Alto provides an opportunity to
develop a new community center and other improvements on a combined 15 acres at the
Cubberley site to provide a range of programs, including health, wellness, and recreational
opportunities for residents.
C. On May 18, 2026, the City Council approved the Cubberley Conceptual Master Plan. This plan
guides the next generation of development and use of the Cubberley site. The Conceptual
Master Plan assumes the City’s purchase of the seven acres contemplated to be purchased
by the City from PAUSD. The City Council also approved a mitigated negative declaration
under CEQA.
D. On May 18, 2026, the City Council directed City staff to return with legislation to place a ballot
measure proposing a local ½-cent (0.5%) transactions and use tax (commonly known as a
sales tax) before the voters on the November 3, 2026 election.
E. If approved by voters, proceeds from the transactions and use tax will be placed in the City’s
general fund for use on general government services. The City Council will determine the uses
of those proceeds that best serve the public interest.
F. With this Resolution, the City Council informs voters of its intentions regarding the uses that
would be supported by these proceeds.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALO ALTO RESOLVES AS FOLLOWS:
SECTION 1. The Council hereby adopts the above Recitals as findings of the Council.
*NOT YET APPROVED*
2
161_20260603_ts24
SECTION 2. It is the City Council’s intention to use the proceeds of the transactions and use
tax – a general tax for general government uses – to invest in the community’s vision to create a
vibrant, beloved, and adaptable destination that promotes learning, interconnectivity, joy and
wellbeing where all cultures and generations belong.
To that end, the City of Palo Alto is ready to revitalize the Cubberley Community Center,
beginning with the purchase of the seven acres of real property currently owned by PAUSD. With
ownership of the developed area under the full control of the City, the City would be able to
begin implementing the community’s vision for the site detailed in the Cubberley Conceptual
Master Plan. The Council plans to allocate the proceeds from the transactions and use tax to
purchase the seven acres and implement part of Phase 1 of the Cubberley Conceptual Master
Plan to modernize the aging buildings, grow the amount of green space for outdoor enjoyment,
invest in local public spaces that provide recreation and culture, and prevent Cubberley from
becoming even further obsolete. The City plans to also use other funding sources, including
investments from community partnerships and fees from new development, to leverage this new
revenue. The Cubberley Community Center will realize its potential as space that serves the
entire City in conjunction with the City’s constellation of other community spaces at Mitchell
Park, Lucie Stern, and the Bryant Street Community Center.
SECTION 3. The Council finds that adoption of this Resolution is not a project under CEQA,
and therefore no environmental impact assessment is necessary.
INTRODUCED:
PASSED:
AYES:
NOES:
ABSTENTIONS:
ABSENT:
ATTEST:
__________________________ __________________________
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
__________________________ __________________________
City Attorney City Manager
COUNCIL MEETING 146/8/26
Received Before Meeting✔
ADOPTION OF
BALLOT MEASURE &
ADVISORY SPENDING
GUIDELINES
JUNE 8, 2026 www.paloalto.gov/improvecubberley
OVERVIEW
Council Adoption of:
• As directed by City Council, an ordinance
• Advisory spending guidelines for use of proceeds if the measure
2
REMAINING MILESTONES
CUBBERLEY
STAKEHOLDER
ENGAGEMENT
June 8 August 11 November 3
Council decision on Arguments in favor of or Election Day
•Four community polls (April
Council decision on
August 7 August 18
Architectural Review Board.Ballot measure due to Impartial analysis due•Rebuttal arguments due
3
AUTHORS FOR ARGUMENT IN FAVO R & REBUTTALS
• Argument (for and against), due Aug. 11
• Council can designate up to three
• Cubberley Ad Hoc members (Burt, Lythcott-
Haims, and Reckdahl) are proposed authors
• Rebuttal arguments, due Aug. 18
• If needed, is drafted by the same slate, or a
majority can pick new authors
4
ADVISORY SPENDING RESOLUTION
• Resolution gives voters additional understanding and
transparency of the City's intentions
• The advisory spending resolution declares how
5
PROPOSED COUNCIL MOTION
Staff recommends that the City Council:
1. Adopt an ordinance and companion resolution to
• Designate argument authors, if not the ad hoc
2. Adopt a resolution to inform the public of
6
KRISTEN O’KANE CHRISTINE PARAS
Community Services Director
Kristen.O’Kane@paloalto.gov
(650) 463-4908
ASD Assistant Director
Christine.Paras@paloalto.gov
(650) 329-2486
From:Phyllis Brown
To:Council, City
Subject:May 8 City Council meeting, item 14
Date:Sunday, June 7, 2026 6:16:24 PM
CAUTION: This email originated from outside of the organization. Be cautiousof opening attachments and clicking on links.
Dear Mayor Veenker and City Council Members:
I look forward to hearing your thoughtful discussion of the Ordinance and two Resolutions
related to placing a 1/2 cent Transactions and Use Tax Measure on the November 3 election
ballot.
I am surprised that the ballot measure language does not include reference to the purchase of
the seven acres of property currently owned by the PAUSD--that it only refers to repairs. Is
the assumption that the property much be purchased in order for those repairs to happen? Is
there good reason not to include reference to the purchase in the ballot language?
I also recommend two minor edits of Section 2 in the Spending Guidelines Resolution
(Attachment C).
Why not delete "part of" in the sentence
The Council plans to allocate the proceeds from the transactions and use tax to purchase
the seven acres and implement part of Phase 1 of the Cubberley Conceptual Master
Plan to modernize the aging buildings, grow the amount of green space for outdoor
enjoyment, invest in local public spaces that provide recreation and culture, and prevent
Cubberley from becoming even further obsolete.
Since it is a conceptual master plan, we know there will be changes as implementation occurs,
so why not just say to implement phase 1?
The last sentence of that same paragraph lists community spaces at Mitchell Park, the Lucie
Stern Center, and the new Bryant Street Community Center (which I believe was built without
reliance on a ballot measure, perhaps because it is in the northern part of Palo Alto).
Cubberley will be a much needed addition. Perhaps add the Palo Alto Arts Center to the
existing valuable community spaces. The renovation of Cubberley will perhaps be essential
to residents of the northern parts of our city, given the probalby increase in demand on those
centers as the population of Palo Alto grows with the implementation of the Housing Element,
especially the San Antonio Road Area Plan.
Getting into the weeds a bit: is there a danger that the City might not receive authorization
from the State for a change in the state cap, as is described in the first paragraph of the
Analysis in the Staff Report? Was this possible impediment not recognized until after the May
18 City Council meeting?
I will be at the meeting, holding up my Palo Alto Needs Cubberley sign.
Phyllis Brown
From:Shantha Mohan
To:Council, City
Subject:6/8/26 Council Meeting Item 14: Sales Tax Measure for November 3, 2026 Election
Date:Sunday, June 7, 2026 1:38:14 PM
CAUTION: This email originated from outside of the organization. Be cautiousof opening attachments and clicking on links.
Dear Mayor Veenker, Vice Mayor Stone, Council Members, and City Manager:
The Friends of Palo Alto Library (FOPAL), founded in 1938 and housed at the
Cubberley Community Center since 2002, strongly desires to remain at this Center
throughout the planned redevelopment process. FOPAL's current presence at
Cubberley is sustained by hundreds of community volunteers like me who gather
throughout the year to help run the organization and its monthly sales. Thousands of
local residents of all ages attend these sales, in addition to a global following of our
online marketplace.
Since 2004, FOPAL has awarded over $3.6 million in grants to the City of Palo Alto
Library and, in fiscal year 2026, awarded $150,000. To effectively assist our book-
sales patrons and support dedicated volunteers like me, FOPAL's long-term vision is
to consolidate its footprint in the new Community Center, increase revenue, and
provide larger grants to the Palo Alto City Library for vital funding. I recognize the
immense value this redevelopment will bring to Palo Alto residents, and I am eager to
continue my volunteer work for FOPAL operations as a fixture of the revitalized site.
I urge the City Council to adopt an ordinance and a resolution calling for an election to
place a half-cent Transactions and Use Tax Measure on the November 3, 2026, ballot
to support improvements to the Cubberley Community Center.
Sincerely,
Shantha Mohan
Friends of the Palo Alto Library Volunteer
261 Parkside Drive
Palo Alto.
From:pennyellson12@gmail.com
To:Council, City
Subject:Comments on June 8 Cubberley Item 14 vote on the Ballot Measure and Advisory Resolution
Date:Sunday, June 7, 2026 12:54:55 PM
CAUTION: This email originated from outside of the organization. Be cautiousof opening attachments and clicking on links.
Honorable City Council,
As you know, I am enthusiastically in favor of moving badly needed Cubberley plans forward
expeditiously. Toward that end, I have a few comments and questions on Item 14 for Monday’s
City Council meeting agenda:
1). I see what seems to be an error in the Resolution language of Attachment B, Section 2.
The language of the ballot measure question makes no mention of the $65.5M Cubberley land
purchase from PAUSD. This seems to be a significant omission. Shouldn’t this be included?
(This omission appears in all packet documents in which the ballot measure question
appears.)
2. A tax rate of 0.5% is specifically mentioned in all of these documents, but the Staff
Report (Analysis section, page 2) says, “Within the state cap, the City has capacity for a ¼
cent (0.25%) voter approved local sales tax; staff is working on legislation that would increase
the local sales tax cap by a ½ cent.” Questions:
In case the effort to obtain state authorization to implement a ½-cent tax legislation
fails, is there a contingency plan in place to put forward a ¼-cent tax? Is that what
Section 7, Attachment A is about?
What is the contingency plan?
When does staff expect to receive a decision re: authorization to implement a ½-
cent tax?
3). In the Late Packet Attachment, Section 2 (page 2), the city lists a few community
spaces in the city but excludes Palo Alto Art Center, and the Junior Museum and Zoo.
Please add these two facilities and add language that acknowledges a need to provide
additional capacity to meet increased demand for community services.
Thank you for considering my comments. Please move Cubberley forward. The need is clear
and urgent.
Penny Ellson
Virus-free.www.avg.com
From:Henry Yu
To:Council, City
Subject:6/8/26 Council Meeting Item 14: Sales Tax Measure for November 3, 2026 Election
Date:Wednesday, June 3, 2026 9:41:50 PM
CAUTION: This email originated from outside of the organization. Be cautiousof opening attachments and clicking on links.
!
Dear Mayor Veenker, Vice Mayor Stone, Council Members, and City Manager:
Friends of the Palo Alto Library (FOPAL), founded in 1938 and residing at the Cubberley
Community Center since 2002, has a strong desire to remain housed within this Center
throughout its upcoming redevelopment process. FOPAL's current presence at Cubberley is
sustained by hundreds of volunteers from the community who gather throughout the year
to help run the organization and its monthly sales.Thousands of local residents of all ages
attend these sales, in addition to a global following of our online marketplace.
Since 2004, FOPAL has made grants over $3.6 million to the City of Palo Alto Library, and in
fiscal year 2026 provided a grant of $150,000. To effectively assist our book sales patrons,
and support our dedicated volunteers, FOPAL's long-term vision is to consolidate its
footprint within the new Community Center, increasing revenue and providing larger grants
to the Palo Alto City Library for vital funding. We recognize the immense value this
redevelopment will bring to our residents, and we are eager to continue our operations as a
fixture of the revitalized site.
We urge the City Council to adopt an ordinance and resolution calling for an election
placing a half-cent Transactions and Use Tax Measure on the November 3, 2026 ballot to
support improving the Cubberley Community Center.
Sincerely,
Henry Yu
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FOPAL President, and Chair of the FOPAL at Cubberley Committee
Friends of the Palo Alto Library
hyu@fopal.org
https://fopal.org