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HomeMy WebLinkAboutStaff Report 2606-6467CITY OF PALO ALTO CITY COUNCIL Special Meeting Monday, August 10, 2026 Council Chambers & Hybrid 5:30 PM     Agenda Item     1.Approval of Minutes from June 8 and June 15, 2026 Meetings City Council Staff Report Report Type: CONSENT CALENDAR Lead Department: City Clerk Meeting Date: August 10, 2026 Report #:2606-6467 TITLE Approval of Minutes from June 8 and June 15, 2026 Meetings RECOMMENDATION Staff recommends that the City Council review and approve the minutes. ATTACHMENTS Attachment A: June 8, 2026 Draft Action Minutes Attachment B: June 15, 2026 Draft Action Minutes APPROVED BY: Mahealani Ah Yun, City Clerk CITY COUNCIL DRAFT ACTION MINUTES Page 1 of 5 Regular Meeting June 08, 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 Expressing Appreciation to Daniel Bergen Upon Retirement NO ACTION 2.Proclamation Expressing Appreciation to Julie Weiss Upon Retirement NO ACTION Agenda Changes, Additions and Deletions Public Comment Council Member Questions, Comments and Announcements Consent Calendar MOTION: Councilmember Reckdahl moved, seconded by Councilmember Lu to approve Agenda Item Numbers 3-12. DRAFT ACTION MINUTES Page 2 of 5 City Council Meeting Draft Action Minutes: 6/8/2026 MOTION PASSED: 7-0 3.Adoption of a Resolution Calling for a General Municipal Election to be held on November 3, 2026; CEQA Status – Not a Project 4.Recommendation from the Council Appointed Officers Committee to City Council to approve the FY26 Council Appointed Officers annual evaluation process timeline, the modified CAO self-evaluation questions and Council interview questions for the annual evaluation process - CEQA: Not a Project 5.Accept the City of Palo Alto Utility Reserves Advisory Report and Public Safety Staffing and Overtime Audit as recommended by the Policy & Services Committee. CEQA Status: Not a Project. 6.Approval of the City of Palo Alto's Permanent Water Use Ordinance. CEQA Status: Exempt under CEQA Guidelines Sections 15307 and 15308. 7.Approval of Purchase Order C27197380 with Optiv Security, Utilizing a State of California Department of General Services Software Licensing Program (SLP) SLP-24-70- 0184Z Contract, to Procure Varonis Systems for a Three-Year Term with an Annual Amount of $154,043 for a Total Not-To-Exceed Amount of $462,129. CEQA Status - exempt under CEQA regulation § 15061(b)(3). 8.Approval of Construction Contract C26197221 with Valentine Corporation in an Amount Not-to-Exceed $503,990 and Authorization for the City Manager or Their Designee to Negotiate and Execute Change Orders for Related Additional but Unforeseen Work that May Develop During the Project up to a Not-to-Exceed Amount of $50,399, for the Guardrail Repair Project, Capital Improvement Program Project PE-86070; CEQA Status – Exempt under Section 15301(c) and 15301(d) 9.Approval of Professional Services Contract Number C27196575 with Presidio Systems, Inc. in the Amount Not-to-Exceed $938,452 for Closed-Circuit Television (CCTV) Sanitary Sewer Pipeline Inspection for a Period of Three Years; CEQA Status – Not a Project Under CEQA Guidelines Section 15378. 10.Approval of Amendment No. 1 with Eight Professional Services Contracts for IT On-Call Services: Contract C26193247A INSPYR Solutions, C26193247B with AgreeYa Solutions, C26193247C with TechLink Systems, C26193247D with Compunnel Software Group, C26193247E with Progile Tech Inc, C26193247F with Omm IT Solutions, C26193247G with Infojini Inc, and C26193247H with California Creative Solutions Inc., to Increase the Not-to-Exceed Amount by $1.5 Million and Extend the Term through June 30, 2027; CEQA Status – Not a Project 11.QUASI-JUDICIAL. 405 Kipling Street [25PLN-00322] Approval of a Record of Land Use Action to Upgrade the Property Located at 405 Kipling Street From a Category 4 DRAFT ACTION MINUTES Page 3 of 5 City Council Meeting Draft Action Minutes: 6/8/2026 Resource on the Local Historic Inventory to a Category 2 Resource. CEQA Status: Not a Project Pursuant to Public Resources Code Section 21065. 12.QUASI-JUDICIAL. 3980 El Camino Real (Buena Vista) [26PLN-00090]: Request for a Final Map to Subdivide a Single, 4.52-Acre Parcel into Two Parcels. The Subdivision would Facilitate Renovation of the Buena Vista Mobile Home Park as well as Future Construction of a 100% Affordable Apartment Building on the Resulting Parcels (24PLN- 00041). A Tentative Map was Previously Approved on August 12, 2024. CEQA Status: Not a Project. City Manager Comments Ed Shikada, City Manager Action Items 13.PUBLIC HEARING: Adopt a Resolution Adopting the 2025 Urban Water Management Plan and a Resolution Adopting the 2025 Water Shortage Contingency Plan. CEQA Status: Exempt under Water Code Sec. 10652. MOTION: Mayor Veenker moved, seconded by Vice Mayor Stone to adopt a resolution adopting the 2025 Urban Water Management Plan and a resolution adopting the 2025 Water Shortage Contingency Plan with the following caveat: “While our response is based on the SFPUC’s design drought and water supply reliability analysis, this is not an endorsement or concurrence in those analyses and the City reserves our right to object to those analyses in other fora.”, and to direct staff to return this back to Council for a Study Session after the Council break. MOTION PASSED: 7-0 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. MOTION: Councilmember Lythcott-Haims moved, seconded by Councilmember Burt to: 1.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 DRAFT ACTION MINUTES Page 4 of 5 City Council Meeting Draft Action Minutes: 6/8/2026 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.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). MOTION PASSED: 7-0 15. San Antonio Road Area Plan Core Scenario and Transportation Analysis Work Plan. CEQA Status: Exempt under CEQA Guidelines Section 15262. MOTION: Vice Mayor Stone moved, seconded by Mayor Veenker to: 1.Endorse the core scenario for the San Antonio Road Area Plan as the basis for Phase 3 analysis, modified as needed to reflect Council priorities; and 2.Direct staff to explore the replacement of commercial areas into the CTI (Commercial Street, Transport Street, Industrial Avenue) area and the replacement of jobs to jobs rather than square footage options; and 3.Authorize the transportation analysis described in Attachment A, to be completed and presented to Council in Q4 2026 alongside a recommended land use and transportation plan. MOTION PASSED: 6-1, Reckdahl no Closed Session 16. CONFERENCE WITH CITY ATTORNEY-POTENTIAL LITIGATION Subject: Potential exposure to litigation Authority: Government Code Section 54956.9(d)(2) Number of potential cases: 1, as Defendant. MOTION: Councilmember Lu moved, seconded by Councilmember Lauing to go into Closed Session. MOTION PASSED: 7-0 Council went into Closed Session at 10:28 P.M. DRAFT ACTION MINUTES Page 5 of 5 City Council Meeting Draft Action Minutes: 6/8/2026 Council returned from Closed Session at 11:27 P.M. Mayor Veenker announced no reportable action. Adjournment: The meeting was adjourned at 11:28 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. CITY COUNCIL DRAFT ACTION MINUTES Page 1 of 11 Regular Meeting June 15, 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 Expressing Appreciation to Bill Gutoff Upon His Retirement NO ACTION Agenda Changes, Additions and Deletions Public Comment Council Member Questions, Comments and Announcements Action Items 2. PUBLIC HEARING & PROPOSITION 218 HEARING: Finance Committee Recommends Adoption of Seven Resolutions: 1) Approving the Fiscal Year 2027 Water Utility Financial Forecast, Reserve Management Practices and Reserve Transfer, and Amending Water Rate Schedules W-1, W-2, W-3, W-4, and W-7; 2) Approving the Fiscal Year 2027 Wastewater Collection Utility Financial Forecast and Reserve Management Practices, and Amending Wastewater Collection Rate Schedules S-1, S-2, S-6 and S-7; 3) Amending Refuse Utility Rate Schedules R-1 and R-C; 4) Approving the Fiscal Year 2027 Electric Utility Financial Forecast and Reserve Transfer, Amending the Electric Reserve DRAFT ACTION MINUTES Page 2 of 11 City Council Meeting Draft Action Minutes: 06/15/2026 Management Practices and Electric Rate Schedules E-1, E-1 TOU, E-2, E-2-G, E-4, E-4-G, E-4 TOU, E-7, E-7-G, E-7 TOU, E-14, E-16, E-EEC-1, and E-NSE-1, and Directing the Use of Up To $225,000 in Renewable Energy Certificate Exchange Net Revenues in Fiscal Year 2027 to Reduce Electric Customers’ Photovoltaic Generation and Energy Storage System Installation Costs; 5) Approving the Fiscal Year 2027 Gas Utility Financial Forecast, Reserve Transfer, and General Fund Transfer, and Amending the Reserve Management Practices and Gas Rate Schedules G-1, G-2, and G-3; 6) Amending Utility Rate Schedules EDF-1, and EDF-2; 7) Amending Storm Water Utility Rate Schedule D-1; CEQA Status: Not a project under CEQA Guidelines Sections 15378(b)(4) and (5) and Exempt Under Section 15273(a) Note: Resolutions are included in the packet as Attachments A – G, Attachment H reflects the Table of URLs for the Exhibits to Attachments A – G. MOTION: Councilmember Lauing moved, seconded by Councilmember Burt to adopt the Water Utility Resolution (Attachment A): a. Approving the FY 2027 Water Utility Financial Forecast and Reserves Management Practices; and b. Approving the transfer of up to $5.5 million from the Operations Reserve to the CIP Reserve in FY 2026; and c. Amending the Water Utility Rate Schedules effective July 1, 2026 (FY 2027): i. W-1 (General Residential Water service), ii. W-2 (Water Service from Fire Hydrants), iii. W-3 (Fire Service Connections), iv. W-4 (Residential Master-Metered and General Non-Residential Water Service), and v. W-7 (Non-Residential Irrigation Water Service). MOTION PASSED: 7-0 MOTION: Councilmember Lauing moved, seconded by Councilmember Lu to adopt the Wastewater Collection Utility Resolution (Attachment B): a. Approving the Fiscal Year (FY) 2027 Wastewater Collection Utility Financial Forecast and Reserves Management Practices; and b. Amending the Wastewater Collection Utility Rate Schedules effective July 1, 2026 (FY 2027): i. S-1 (Residential Wastewater Collection and Disposal), ii. S-2 (Commercial Wastewater Collection and Disposal), iii. S-6 (Restaurant Wastewater Collection and Disposal), and iv. S-7 (Commercial Wastewater Collection and Disposal – Industrial Discharger). MOTION PASSED: 7-0 DRAFT ACTION MINUTES Page 3 of 11 City Council Meeting Draft Action Minutes: 06/15/2026 MOTION: Councilmember Burt moved, seconded by Councilmember Lu to adopt the Refuse Resolution (Attachment C): a. Amending the Refuse Rate Schedules effective July 1, 2026 (FY 2027): i. R-1 (Domestic Refuse Collection), and ii. R-C (Commercial Refuse Collection). MOTION PASSED: 7-0 MOTION: Councilmember Reckdahl moved, seconded by Vice Mayor Stone to approve: 1. The Electric Utility Resolution (Attachment D): a. Approving the FY 2027 Electric Utility Financial Forecast, and Amending the Electric Utility Reserves Management Practices; and b. Approving the transfer of up to $5 million from the Electric Utility Distribution Operations Reserve to the Electric Utility Capital Reserve in FY 2026; and c. Amending the Electric Utility Rate Schedules effective July 1, 2026 (FY 2027): i. E-1 (Residential Electric Service), ii. E-1 TOU (Residential Time of Use Electric Service) iii. E-2 (Small Non-Residential Electric Service), iv. E-2-G (Residential Master-Metered and Small Non-Residential Green Power Electric Service, v. E-4 (Medium Non-Residential Electric Service), vi. E-4-G (Medium Non-Residential Green Power Electric Service), vii. E-4 TOU (Medium Non-Residential Time of Use Electric Service), viii. E-7 (Large Non-Residential Electric Service), ix. E-7-G (Large Non-Residential Green Power Electric Service), x. E-7 TOU (Large Non-Residential Time of Use Electric Service), xi. E-14 (Street Lights), xii. E-16 (Unmetered Electric Service), xiii. E-EEC-1 (Export Electricity Compensation), xiv. E-NSE-1 (Net Surplus Electricity Compensation); and d. Directing the Use of Up To $225,000 in Renewable Energy Certificate Exchange Net Revenues in Fiscal Year 2027 to Reduce Electric Customers’ Photovoltaic Generation and Energy Storage System Installation Costs, as local decarbonization efforts, via: i. Changing the funding mechanism for the Cap-and-Invest Reserve to allocate up to $225,000 less in Cap-and-Invest auction revenues in FY 2027 to the City’s Cap-and-Invest Reserve and instead allocate these funds for other local decarbonization efforts; and, as a related matter: 1. Directing staff to review existing HVAC incentive levels including consideration of financial offsets to lower the cost of related work including panel upgrades, electric utility service upgrades, or the cost DRAFT ACTION MINUTES Page 4 of 11 City Council Meeting Draft Action Minutes: 06/15/2026 of building permit fees; and 2. Directing staff to return to City Council within FY 2027 to review the Electric Supply Portfolio Carbon Neutral Plan and use of revenues derived from the REC Exchange program. 2. The Gas Utility Resolution (Attachment E): a. Approving the FY 2027 Gas Utility Financial Forecast, and Amending the Gas Utility Reserves Management Practices; and b. Approving the transfer of up to $1.5 million from the Gas Utility Operations Reserve to the Distribution Rate Stabilization Reserve in FY 2026; and c. Transferring up to 18% of gas utility gross revenues received during FY 2025 to the General Fund in FY 2027; and d. Amending the Gas Utility Rate Schedules effective July 1, 2026 (FY 2027): i. G-1 Residential Gas Service, ii. G-2 Residential Master-Metered and Commercial Gas Service, and iii. G-3 Large Commercial Gas Service; and 3. The Fiber Optics Utility Resolution (Attachment F): a. Amending the Dark Fiber Optic Utility Rate Schedules, consistent with the applicable Consumer Price Index, effective July 1, 2026 (FY 2027): i. EDF-1 (Dark Fiber Licensing Services), and ii. EDF-2 (Dark Fiber Service Connection Fees); and 4. The Storm Water Management Resolution (Attachment G): a. Amending the Storm Water Management Fee Rate Schedule, consistent with the applicable Consumer Price Index, D-1 effective July 1, 2026 (FY 2027): i. D-1 (General Storm and Surface Water Drainage) MOTION PASSED: 7-0 3. PUBLIC HEARING: Adoption of an Ordinance Adopting the Operating and Capital Budgets, Revised Table of Organization, and Municipal Fee Schedule for Fiscal Year 2027; Adoption of a Resolution Proposing the Appropriations Limit for Fiscal Year 2027 - State Law/ City Charter; Accept the Bi-Annual Actuarial Valuation Report of Palo Alto's Retiree Healthcare and Other Post-Employment Benefits (OPEB) as of June 30, 2025 and Approve Annual Actuarially Determined Contribution for Fiscal Years 2027 and 2028; Authorize the City Manager or their Designee to Negotiate and Execute a Memorandum of Understanding and Funding Agreement (or Lease Agreement Amendment) with the Palo Alto Museum to Provide Cost Sharing for Repairs to the Basement and Waterproofing in the Roth Building and Improvements to Heritage Park Drainage Councilmembers Lu, Veenker and City Manager Shikada recuse from Stanford-related items for the Fiscal Year 2027 Budget (outlined in Attachment C). DRAFT ACTION MINUTES Page 5 of 11 City Council Meeting Draft Action Minutes: 06/15/2026 MOTION: Councilmember Lythcott-Haims moved, seconded by Councilmember Burt to approve the Stanford-related items for the Fiscal Year 2027 Budget. MOTION PASSED: 5-0-2, Veenker, Lu recused MOTION: Councilmember Burt moved, seconded by Councilmember Reckdahl to: 1. Adopt the Fiscal Year 2027 Budget Ordinance (Attachment A), which includes: • City Manager’s Fiscal Year 2027 Proposed Operating and Capital Budgets, previously distributed at the May 4th City Council Meeting (Attachment A, Exhibit 1) • Amendments to the City Manager’s Fiscal Year 2027 Proposed Operating Budget (Attachment A, Exhibit 2) • Amendments to the City Manager’s Fiscal Year 2027 Proposed Capital Budget (Attachment A, Exhibit 3) • Fiscal Year 2027 City Table of Organization (Attachment A, Exhibit 4) • Fiscal Year 2027 Municipal Fee Changes (Attachment A, Exhibit 5) 2. Accept the Fiscal Year 2027 – 2031 Capital Improvement Program (CIP) 3. Adopt a Resolution determining the Appropriations Limit for Fiscal Year 2027 (Attachment B) 4. Accept the June 30, 2025 actuarial valuation of Palo Alto's Retiree Healthcare Plan and fund the annual Actuarially Determine Contribution (ADC) for Fiscal Year 2027 and 2028 5. Authorize the City Manager or their designee to negotiate and execute a Memorandum of Understanding and Funding Agreement (or Lease Agreement Amendment) with the Palo Alto Museum to provide cost sharing for repairs to the basement and waterproofing in the Roth Building and improvements to Heritage Park drainage in an expedited efforts to try to make sure that accomplished before the next rain season. a) City to waive the permitting and inspection fees for the Museum. b) Direct staff to move forward with cashflow support for the museum toward repairs and to support the continued expedited process that staff is already pursuing. c) The City cover the expenses for the park repair to the extent that it can be determined that it is principally the city's responsibility, and the City Manager negotiate a cost-sharing on the building repairs. 6. Direct staff to return at mid-year or sooner to review whether there are any remaining Canopy budgetary requests or if resolved through donations. MOTION PASSED: 7-0 Consent Calendar Councilmember Lythcott-Haims requested to pull Agenda Item Number 23a, 23b. DRAFT ACTION MINUTES Page 6 of 11 City Council Meeting Draft Action Minutes: 06/15/2026 Councilmembers Stone, Lythcott-Haims, and Veenker requested to pull Agenda Item Number 23c. Councilmembers Lu and Veenker recused from Agenda Item Number 12. Councilmember Lu and Reckdahl recused from Agenda Item Number 23a-c. MOTION: Vice Mayor Stone moved, seconded by Mayor Veenker to approve Agenda Item Numbers 4-17 (Item Number 18 Removed Off Agenda), 19-23a-b, and to pull off the Consent Calendar Agenda Item Number 23c for Action. MOTION PASSED ITEMS 4-11, 13-17, 19-22: 7-0 MOTION PASSED ITEM 12: 5-0-2, Lu, Veenker recused MOTION PASSED ITEM 23a-b: 4-1-2, Lythcott-Haims no, Lu, Reckdahl recused 4. Approval of Minutes from June 1, 2026 Meeting 5. Approve Submittal of the 2026 Annual Water Shortage Assessment Report; CEQA status: exempt. 6. Approve Conceptual Design for Alma Street-Charleston Road Railroad Crossing Near- Term Section 130 Safety Improvement Project – Direct Staff to Complete Final Design, Environmental Analysis, Project Specifications, and Engineering Cost Estimates based off of the Conceptual Design as Recommended by Rail Committee; CEQA status: Categorically Exempt under Section 15301-Class 1 minor alternations to existing facilities. 7. Adoption of a Resolution Authorizing the City Manager to Submit the City’s Prohousing Designation Program Application to the California Department of Housing and Community Development. CEQA Status: Not a Project. 8. Adoption of Amended Salary Schedules for Service Employees‘ International Union, Utilities Management and Professional Association of Palo Alto, International Association of Fire Fighters, and Unrepresented Management and Professional Employees and Limited Hourly groups; and Adoption of Side letters for the International Association of Fire Fighters, Fire Chiefs‘ Association, and Palo Alto Police Officers‘ Association and Amendments to the FY 2027 Table of Organization to Reclassify 1.0 Economic Development Manager and 1.0 Treasury Manager - CEQA Status - Not A Project. 9. Approval of Construction Contract Number C26197272 with O’Grady Paving, Inc. in the Amount of $3,802,573 for the Fiscal Year 2026 Street Resurfacing Project, Capital Improvement Program Projects PE-86070, PO-12001, PG-06001, PO-11001, and OS- 09001; and Authorization for the City Manager or Their Designee to Execute Change DRAFT ACTION MINUTES Page 7 of 11 City Council Meeting Draft Action Minutes: 06/15/2026 Orders in an Amount Not-to-Exceed $910,258 for Related, Additional but Unforeseen Work Which May Develop During the Project; CEQA Status – Exempt under CEQA Guidelines Section 15301(c) 10. Approval of Amendment Number 1 to Purchase Order C26195416 with Carahsoft in the Amount of $375,246 for Additional SAP Business Data Cloud Capacity Units and Related Non-Productive Memory Extension; CEQA Status - Not a Project 11. Approval of a First Amendment to Lease With 1900 Embarcadero Property Owner, LP, to Continue Occupying an Approximate 5,469 Square Foot Portion of the Office Building at 1900 Embarcadero Road, Through June 30, 2031, at a Total Base Rent of $1,306,605; CEQA Status – Exempt under CEQA Guidelines Section 15301 12. Approval of Amendment No. 4 to Contract Number C23184827 with Nomad Transit, LLC (Via) in the Amount of $152,000 for a total not to exceed $5,053,550 to Extend the City of Palo Alto On-Demand Transit Service for Four Months through October 31, 2026; Approval of Amendment No. 3 to extend the Cost Sharing Agreement with Stanford University to Partially Fund Palo Alto Link Service up to $200,000 in FY 2027 through October 31, 2026; and Approval of a three-year Contract with the Palo Alto Transportation Management Association (PATMA), in the Amount of $500,000; CEQA status – not a project. 13. Approval of Contract Amendment Number 5 to Contract S20178065 with OIR Group, in the Amount of $40,000 and for a one-year extension to continue Independent Police Auditing Services in Palo Alto. CEQA Status – Not a Project. 14. Approval of Professional Services Contract Number C26195541 with HDA Architects, Inc. in an Amount Not-to-Exceed $221,650 to Provide Architectural Design Services for the Animal Shelter Renovation – Capital Improvement Program Project PE-19002; CEQA Status – Exempt under CEQA Guidelines Section 15301(e) 15. Approval of Professional Services Contract Number C26196545 with Michael Baker International (MBI) for $116,000 in FY 2027 and a Not-to Exceed Amount of $464,000 to Provide Administration and Consulting Services for the City’s Community Development Block Grant (CDBG) Program for a Term of Four-Years Through June 2030. CEQA Status: Exempt in Accordance with CEQA Guidelines Section 15061(b)(3). 16. PUBLIC HEARING / QUASI-JUDICIAL. 929 Laurel Glenn Dr [25PLN-00005]: Adoption of a Record of Land Use Action Approving a Major Site and Design Application for the Construction of a New 6,581-Square-Foot Single-Family Residence and Associated Site Improvements on a Vacant 4.23-Acre Site. CEQA Status: Exempt Per CEQA Guidelines Section 15303. Zoning District: Open Space (OS). 17. QUASI-JUDICIAL. Approval of a Record of Land Use Action to Add the Property Located at 855 Hamilton Avenue to the City’s Historic Resources Inventory as a Category 2 DRAFT ACTION MINUTES Page 8 of 11 City Council Meeting Draft Action Minutes: 06/15/2026 Resource Based on Owner Interest Identified Through the 2023 Reconnaissance Survey. CEQA Status: Not a Project. 18. QUASI-JUDICIAL. 3200 Park/340 Portage: Final Map and Street Naming [26PLN-00009]: Request for a Final Map to Subdivide One Existing 3.92-Acre Parcel for Condominium Purposes, Consistent with the Approved Development Agreement, and to Name the New Private Streets. Zone District: PC 5597. CEQA Status: Council Adopted Resolution 10123 Certifying the EIR for the Project on September 12, 2023 (SCH # 2021120444). Item Number 18 Removed Off Agenda 19. FIRST READ: Adopt an Ordinance to Amend College Terrace Residential Preferential Parking Program Fixed Permit Terms, Sale and Grace Periods in PAMC 10.46.060; CEQA status: categorically exempt. 20. FIRST READING: Adoption of an Ordinance to Amend Palo Alto Municipal Code Title 18 (Zoning) Section 18.18.120 (Noncomplying Uses and Facilities) to Allow Existing Floor Area to be Replaced in New Buildings Without Increasing the Degree of Existing Non- Compliance as Recommended by the Economic Development Committee. CEQA Status: Exempt from CEQA per Section 15061(b)(3) (Common Sense Exemption). 21. FIRST READING: Adoption of an Ordinance to Amend Various Sections of Title 16 (Building Regulations) and Title 18 (Zoning) of the Palo Alto Municipal Code to Implement Retail Vitality Policies in the Comprehensive Plan, Including Changes to the Zoning Map for Parcels Zoned CN(GF) as Recommended by the Economic Development Committee. CEQA Status: The Ordinance is Consistent with and Represents Implementation of Adopted Policies in the Comprehensive Plan, for Which an Environmental Impact Report (Comprehensive Plan EIR) was Certified on February 5, 2016. 22. SECOND READING: Ordinance of the Council of the City of Palo Alto Amending the Sign Code (PAMC section 16.20.160) to Allow Certain Signs in Conjunction with Parklets (FIRST READING: June 1, 2025; PASSED: 6-1, Lu no) 23. SECOND READING and Adoption of Temporary Ordinances Implementing Senate Bill (SB) 79, and Introduction and Adoption of Interim Urgency Ordinances Excluding Certain Historic Resource Sites and Transit-Oriented Development (TOD) Eligible Sites from Government Code Section 65912.157 and Authorizing Corresponding Zoning Map Updates. CEQA Status: Exempt Under Government Code Section 65912.160(c)(2). a. SECOND READING and Adoption of Temporary Ordinances Implementing SB 79 (Staff Recommendations 1 & 2) b. Introduction and Adoption of Interim Urgency Ordinances Excluding Certain Historic Resource Sites from Government Code Section 65912.157 (Staff Recommendation 3) c. Introduction and Adoption of Interim Urgency Ordinances Excluding Certain Transit- DRAFT ACTION MINUTES Page 9 of 11 City Council Meeting Draft Action Minutes: 06/15/2026 Oriented Development (TOD) Eligible Sites from Government Code Section 65912.157 (Staff Recommendation 4) Action Item 23c. Introduction and Adoption of Interim Urgency Ordinances Excluding Certain Transit- Oriented Development (TOD) Eligible Sites from Government Code Section 65912.157 MOTION: Mayor Veenker moved, seconded by Councilmember Lythcott-Haims to direct staff not to proceed with adopting the interim urgency ordinance of 23C. MOTION PASSED: 5-0-2, Lu, Reckdahl recused MOTION SPLIT FOR THE PURPOSE OF VOTING MOTION: Mayor Veenker moved, seconded by Councilmember Lythcott-Haims to direct staff to explore opportunities to accelerate housing production on California Avenue and adjacent areas of El Camino Real and bring back to Council a proposal for zoning revisions to effectuate such production within the next 6 to 12 months. MOTION PASSED: 4-1-2, Burt no, Lu, Reckdahl recused Closed Session AA1. CONFERENCE WITH LEGAL COUNSEL—POTENTIAL LITIGATION (one case) Subject: Initiation of litigation in one case Authority: Government Code Section 54956.9(d)(4) New Item Added MOTION: Councilmember Lu moved, seconded by Councilmember Reckdahl to go into Closed Session. MOTION PASSED: 5-0-2, Lauing, Stone absent for vote Council went into Closed Session at 9:46 P.M. Council returned from Closed Session at 10:18 P.M. Mayor Veenker announced that the City Council authorized the City Attorney to join an amicus brief in support of the plaintiff's position in County of Santa Clara versus U.S. Immigrations and Customs Enforcement, case number 26CV5604. DRAFT ACTION MINUTES Page 10 of 11 City Council Meeting Draft Action Minutes: 06/15/2026 City Manager Comments Ed Shikada, City Manager Action Items 24. Adopt a Resolution Approving the 2026 Bicycle and Pedestrian Transportation Plan (BPTP); CEQA Status: Exempt Pursuant to Public Resources Code Section 21080.20. MOTION: Councilmember Burt moved, seconded by Councilmember Reckdahl to adopt a Resolution Approving the Final 2026 Bicycle and Pedestrian Transportation Plan (BPTP) (Attachment A), including staff-recommended changes from the Pedestrian and Bicycle Advisory Committee (PABAC) (Attachment B) with the following amendments and additions: a) Evaluate extension of the two-way bike track on Middlefield between California Avenue and Garland, b) Look at safety improvements for Newell/Embarcadero intersection, c) Add language from public commenter on access to the San Antonio station, d) Add PABAC language or equivalent to it, that clarifies what staff is already embraced on the interpretation of T- 4.1 regarding filters not being closures, e) Evaluate stop signs or other protections when roadways cross bike boulevards and bike routes, f) Complete Streets policy within the bike plan including bicycle-friendly street design and the PABAC recommendation on bicycle-friendly street design, g) Refer staff the evaluation of reconciling bike access along car-free portion California Avenue particularly for school and other commutes with pedestrian safety during peak use hours including the possibility of time-of-day restrictions, h) Council supports PAUSD pursuing restrictions of class two and three e-bikes. MOTION PASSED: 7-0 Adjournment: The meeting was adjourned at 11:44 P.M. DRAFT ACTION MINUTES Page 11 of 11 City Council Meeting Draft Action Minutes: 06/15/2026 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.