Loading...
HomeMy WebLinkAboutStaff Report 2607-6586CITY OF PALO ALTO CITY COUNCIL Special Meeting Monday, August 10, 2026 Council Chambers & Hybrid 5:30 PM     Agenda Item     D.City Council Summer Recess Report City Council Staff Report From: City Manager Report Type: INFORMATION REPORTS Lead Department: City Manager Meeting Date: August 10, 2026 Report #:2607-6586 TITLE City Council Summer Recess Report RECOMMENDATION Informational Report Only. EXECUTIVE SUMMARY This informational report provides a brief update on notable activities and work throughout the City Council’s July 2026 recess. BACKGROUND The annual Summer Recess Report share updates, organized by department, on activities accomplished during the City Council recess. This report is not an exhaustive list of staff work. The updates are to inform the City Council and public about items completed since the last City Council meeting of the fiscal year and other efforts underway. ANALYSIS Administrative Service Department End of Fiscal Year and New Fiscal Year Activities Staff focused on transitioning into the next fiscal year. Closing FY 2026 is underway. The annual inventory of both warehouses, the Municipal Services Center and Regional Water Quality Control Plant, are complete. Revenue Collection Staff assisted permit customers with the transition to the new residential Parking Permit Program that launched in mid-June. Office of Management and Budget Staff kicked off the budget system upgrade project and worked towards publications in August of the FY 2027 Municipal Fee Schedule and both the FY 2027 Adopted Operating and Capital Budget books. Procurement Staff closed year-end purchase orders and began encumbrances for FY27. Staff continued efforts to update the Palo Alto Municipal Code, as recommended by the Policy and Services Committee, to increase the thresholds for solicitation of goods and services, increase contract approval and settlement authority and to make other technical changes. This will be considered by Council in August. Staff continued the inter-departmental partnership to advance the Cubberley Community Campus Project. In accordance with Council direction on November 17, 2025, Staff completed the acquisition of a 3.25-acre parcel from the Sobrato Organization by grant deed recorded on June 17. The site is adjacent to Matadero Creek, near the former Fry's building. Staff worked towards finalizing the Regional Water Quality Control Plant line of credit and refunding of the 2009 Water revenue bonds. Staff advocated to the State on behalf of the City for SB 762 to increase the sales tax cap by 0.5% or half-cent. Staff advocated to the State on behalf of the City to protect the parcel transfer tax revenues. Staff met with the Palo Alto Museum ("Museum") in June to continue addressing the water intrusion in the Roth Building. In addition, City staff collaborated with the Museum staff to review parameters that guide the planned basement repair work and address water flow from Heritage Park. Plans are being developed by the Museum for this work and the City will review plans once received. Staff made the $20 million disbursement from the Section 115 Trust to CalPERS for the pension ADP (additional discretionary payment), per Council FY 2027 Adopted Budget, which will reduce the City’s unfunded pension liability. Staff anticipate transmitting the June 30, 2025, CalPERS valuations of the City's pension plans to the Finance Committee this fall, along with a review of the Retiree Benefit Funding Policy. CalPERS completes valuations using member data two years in arrears and issues annual reporting each August. As of July 2026, CalPERS provided the following preliminary investment returns as compared to a 6.8% target: 14.8% for the period ending June 30, 2026 (impact in FY 2029) 11.6% for the period ending June 30, 2025 (impact in FY 2028) 9.3% for the period ending June 30, 2024 (impact in FY 2027) Consistent with past practice, staff will incorporate these results in financial planning, including the Long-Range Financial Forecast (LRFF) and annual budget development. Additionally, staff continue to use a lower discount rate than the 6.8% used by CalPERS to calculate the employer's normal cost and transmit the difference as an additional contribution to the City's Pension Trust. As part of the FY 2027 Adopted Budget, the City Council approved continuing to use a discount rate of 5.3% in FY 2027. City Manager’s Office Palo Alto Homekey Progress Palo Alto Homekey reached an important operational milestone with staff and clients completing the move from the Sunnyvale hotel bridge program to the Palo Alto site over a four- day period in late June/early July. Families are settling into the new location, and children are participating in summer camp activities, helping provide structure, stability and a positive transition during the summer months. LifeMoves shared that the move was meaningful for many families, and described the site as offering a renewed sense of peace and safety. Additionally, Homekey clients shared with LifeMoves that the setting provides peace of mind as they continue to seek permanent housing, with nearby nature and open space contributing to a therapeutic environment. LifeMoves staff observed a growing sense of community and rapport unfolding with shared meals and 4th of July celebrations together. Oversized Vehicles Discussion Planned for Council in August Staff continue regular street sweeping, enforcement and responding to constituent concerns regarding oversized vehicles. A City Council discussion is anticipated on August 24, presenting two pilot programs intended to address ongoing neighborhood, business, public health and safety impacts associated with OSVs used for habitation while balancing and providing a more structured and humane response for individuals living in those vehicles. Human Services Human Services staff continued supporting community needs this summer through the FY 2026 Emerging Needs Fund and direct service coordination. The City received 11 Emerging Needs Fund applications and made 8 awards totaling $50,000, fully allocating the available funding. Awards supported vision and health services, food assistance, senior nutrition, equipment needs, youth mental health programming, outreach and referral coordination, community event support, seasonal operating costs and early intervention services for students. Staff also supported a resource fair for unhoused residents, attended by approximately 32 unhoused neighbors and 16 service providers and community partners, creating opportunities for direct service connections, meals, resource sharing and continued coordination among local organizations. Nobu License Agreement Thursday Live/Entertainment Zone FIFA World Cup Destination Marketing Annual Community Survey Community Services Department Summer Camps This summer, Community Services offered 320 camps with $1,846,301 in total revenue generated as of July 21, 2026. A total of 3,747 campers enrolled with 2,108 on waitlists. Summer Camp 2026 season ends August 8. The highest demand camps this year include Zoo Camp, Woodworking Camp, Two-Week Theatre Academy, Jurassic Camp, Camp Kinetic and Camp Palo Alto. Recreation Special Events This year’s Family Movie Night series has been a great success, with each movie night welcoming 300–400 attendees. The summer series ends on August 14 with “The Super Mario Galaxy Movie.” The continued success and strong attendance highlight the community’s support of family-oriented events throughout the summer. Eleven teams competed in this year’s 4th of July Chili Cook Off & Summer Festival, including four returning and seven new teams. Chili teams vied for several prizes including People’s Choice, Best Vegetarian Chili, Best Decorations and Most Spirit. First place went to Veterinary Emergency Group (VEG) E.R. for Pets and the Klemens Family won the People’s Choice award. Attendance was estimated at around 3,000. Aquatics Rinconada Aquatics continues to provide opportunities for residents of all ages to learn how to swim, stay active, enjoy recreational swimming and pursue employment through lifeguard certification. Throughout the summer, the facility welcomed numerous families and offered day camps. From June through mid-July, aquatic camps hosted 502 campers, a 25% increase over the same period last year. Staff have certified 109 lifeguards year-to-date, helping support both facility operations and the broader aquatics community. Summer certification activity has been particularly strong, with 57 certifications completed June through mid-July, a 63% increase compared to the same period in 2025. Public Art Program The Public Art Program hosted nine ArtLift events activating Downtown, California Avenue and Cubberley, engaging over 200 residents and visitors. The Public Art Commission approved the final design for a temporary artwork at the Sherman Avenue Garage, which is planned for installation in August. Cubberley Artist Studio Program Four of the artists from the Cubberley Artist Studio Program (CASP) held free workshops and events at the Cubberley campus engaging dozens of residents of all ages in art making. Palo Alto Art Center The Art Center sold 772 summer camp sessions, generating $262,732 in revenue with 95 teens participating in as either our Counselor in Training or Ceramics Apprentice teen leadership programs, with a revenue increase of 21% over last year. There were 89 teens who supported summer camps as Counselors in Training (CIT) and Lead CITs, serving almost 1,600 hours. Members of the Art Center Teen Leadership group are planning the Open Call Teen Art Exhibition, which will take place in September, showcasing local teen artwork. A new glaze washing station was installed in the adult ceramics studio to reduce the volume of Rinsate produced by keeping clay waste and glaze waste separate. Using funds from the Ceramics Program CIP, a down payment was made on a custom kiln, which is currently being fabricated with installation scheduled for summer 2027. Summer quarter is usually the quietest season for Adult Studios, but there are currently 339 people enrolled in classes and workshops, generating $79,294 in revenue, an 11% increase over last year. The year-long series “Centering: Clay and Community” celebrating the Art Center’s role as a resource for ceramic art and education, concluded. The Art Center hosted over 7,500 people at the annual Clay and Glass festival on July 11 and 12. This summer the Children’s Theatre welcomed 246 campers, generating $151,000 in revenue. Assisted by 14 interns, the camps were at capacity with 344 waitlisted. The Children Theatre produced the annual Summer Hot Dog Season, featuring “Tales of the Arabian Nights” and “Wheels on the Bus.” Performed before sold out audiences, the productions were seen by more than 6,000 community members and included Magical Series Spectrum Friendly and ASL-Interpreted performances. This summer, the theatre launched a new audio play series, featuring a June 2026 summer intensive class that recorded The Wizard of Oz (an original Children’s Theatre adaptation for young actors), and in July, the theatre took up residence at Cubberley Theatre for two weeks to record an audio book of their upcoming publication of Monologues for Young Actors. The Teen Arts Council closed out the school year with WaveFest, an outdoor music and art festival for teens. This year’s festival included teen bands, dance companies, student vendors and clubs, local community groups, plus Palo Alto’s Teen Library Advisory Board (TLAB) and Art Center Teen Leadership. The Twilight Concert Series kicked off in June, with the first three concerts attracting more than 3,000 community members. The lineup included “Heartless,” “Summer Night City” and “Fleetwood Mask.” The concert series concluded on August 8 with blues band “Legally Blue.” Palo Alto Junior Museum & Zoo (JMZ) The Palo Alto Junior Museum & Zoo hosted 937 campers in nine science camps. Thanks to donations from the Friends of the Palo Alto Junior Museum & Zoo, 43 campers received a full scholarship to cover the cost of participation. Forty-two (42) middle and high school interns supported JMZ summer camps through the JMZ Science Camp Assistant Program. The search for the next Executive Director began in June, attracting a highly competitive pool of candidates. The City is in the final stages of the recruitment process. A new flamingo chick was born on June 22 to parents Ruby and Sal. Remarkably, the chick hatched on the same date as Rio, the Zoo's flamingo chick born in 2025. The new arrival brings the flamingo flock to 8 birds. Producing chicks in consecutive years is a significant achievement for a flock of this size and reflects the exceptional care provided by the animal care team, as well as the health and well-being of the colony. The JMZ also introduced two new public programs this summer: a Teen Night and a World Snake Day celebration. Staff established a new partnership with the Stanford Autism Center to support future inclusive community events, including a "Meet the First Responder" event for individuals with disabilities and their families planned for late August. In preparation for summer camp season, camp staff across CSD received specialized training on supporting campers with disabilities. Staff provided accommodations for 13 summer camp/class participants, helping ensure inclusive access across CSD programs. In June, we hosted a Downtown Hangout for young adults with disabilities. Additional fall offerings are planned for all ages including cooking classes, gym time and family socials. Accessibility continued expanding with the addition of a sensory tent at the Fourth of July Chili Cook-Off. Rangers have increased their frequency of patrols in the Baylands Nature Preserve following the attack and robbery in the Baylands on July 23. Midpeninsula Regional Open Space District has also increased patrols of the section of the Bay Trail in Ravenswood Preserve. The Pearson-Arastradero Preserve Gateway exhibits were refreshed for the first time in nearly 20 years, including interpretive panels, updated exhibit elements, new display models, and enhancements to the visitor center experience. The Rangers have been performing annual fire fuel mitigation work totaling over 400 acres of fuel breaks and ignition prevention mowing and maintaining clearance on 25 miles of fire roads and trails. Staff presented the financial feasibility study to the Parks and Recreation Commission and are evaluating their input and determining appropriate next steps. Greer Park Skate Bowl Maintenance Park Sign Replacement Parks Asset Management Community Gardens Workdays Cubberley Community Center Project Fire Department Vegetation Fire Response Palo Alto experienced three significant vegetation fires this summer at Pearson-Arastradero Preserve (~3.5 acres) on June 22, Coyote Hill/Page Mill (~6.7 acres) on July 1, and Byxbee Park (~ 3 acres) on July 11. All are suspected to have been caused by illegal fireworks. Fleet Update Fire Station 8 Activation & Wildfire Prevention and Wildland-Urban Interface (WUI) Inspections Human Resources Department Library Department Summer Reading Program The Library hosted its annual Summer Reading Program June 1 – August 1. The theme, Oceans of Possibilities, invited participants to dive into new adventures and explore the depths of their imagination by reading and/or listening daily, whether it’s books, articles, audiobooks or storytimes. All-ages events took place all summer long, and participants tracked their reading online or on a paper log. Prize pickups will be at Children’s, Mitchell Park, and Rinconada Libraries through August 31, while supplies last. The Library thanks the Friends of the Palo Alto Library and all other donors. The Library hosted a series of Pride events in June and July, including an exciting performance by the SF Pride Band and a karaoke night; a new Tech Class series for basic computing needs and interests; and a Juneteenth storytime and craft. Staff tabled at the unhoused resource fair at the Opportunity Center and issued library cards and promoted library services. During summer recess, the Vintage Media Lab (VML) – which provides community access to tools that help residents preserve, digitize and share personal and family history – booked a total of 194 hours at Mitchell Park and Rinconada Libraries in 97 appointments. The Mitchell Park Library wall repair project began in July and is scheduled for completion by fall 2026. The Library and Public Works Department are working closely together to oversee the repairs. During this time, the Teen Space will remain closed for safety. Library staff are coordinating limited access to Teen Collection materials upon request when it is safe to access the area. Starting July 20, the Library closed the Children’s Library on Mondays as part of the impacts of the FY27 reductions to Library’s budget and the loss of 4.0 FTE positions. Office of Emergency Services Staff conducted numerous trainings for City staff, community members and Emergency Services Volunteer (ESV) program participants. OES continued participating in regional emergency planning, particularly around the FIFA soccer matches in our area. The City lead a multi-agency coordination and deployment for the 4th of July to facilitate rapid response in the event of a wildfire, terrorist event or other threat to safety. Some partners included the Midpeninsula Regional Open Space District, CAL FIRE, CHP, San Mateo County, Santa Clara County, Valley Water and other allied agencies. OES also deployed Emergency Services Volunteers at various locations to spot fires and other potentially unsafe conditions. Office of Transportation East Bayshore Repaving, Bike Facilities & Transportation Funds for Clean Air TFCA Grant for Citywide Bike Parking One Bay Area Grant Cycle 4 (OBAG 4) Application Railroad Safety and Quiet Zones enforcement and evaluate additional design options to encourage drivers to refrain from illegally stopping on the tracks in advance of FRA issuing the Notice of Establishment. The City has implemented additional Police enforcement, and continues to work closely with Caltrain, the CPUC, and the FRA to address these requests and advance implementation of the Quiet Zone at this crossing. These additional reviews and evaluations have extended the implementation timeline for the Quiet Zone while the City works collaboratively with the regulatory agencies to address the requested safety enhancements. Automated Parking Guidance System (APGS) Installation and Testing Embarcadero Road Improvements Churchill Avenue Enhanced Bikeways Planning & Development Services Department Accessory Dwelling Unit (ADU) Plans Gallery Automated Permitting System Federal Grant In July, Planning and Development Services applied for a U.S. Department of Housing and Urban Development (HUD) funding opportunity supporting jurisdictions to evaluate and deploy automated permitting technology. If awarded, the $620,000 grant would fund a 12- to 18- month subscription to AI plan review software to assess its effectiveness. The 36-month project would proceed in stages: software proposal solicitation, selection, prototyping and implementation. The evaluation would measure the technology's impact on consistency in applying codes and standards, plan review timelines and reliance on outside contractors and consultants. HUD will notify applicants of awards by August 31, 2026. Senate Bill (SB) 79 Applications Received SB 330 Pre-Applications Received July 1-15, 2026 PLN Address Units Floor Area (Sq Ft) Zoning District Ground Floor Commercial Proposed Community Development Block Grant (CDBG) Annual Action Plan Local Housing Trust Fund (LHTF) Report and 3001 El Camino Real projects to support the development of affordable multi-family housing. Recent Housing Development Application Resubmittals Transit Oriented Communities (TOC) Policy Compliance Certified Local Government (CLG) Grant Police Department Recruitment National Night Out Another Rivian Patrol Vehicle The Police Department added a second all-electric Rivian patrol vehicle, which will be driven by field supervisors, to its fleet. Public Works Services Department Even though the Newell Road Bridge work started three weeks late due to nesting birds, the contractor made great progress on the bridge work including demolition of the old bridge and installation of the new bridge piles and abutments. The project remains on target to complete the work in the creek by October 15. Fire Station #4 construction continues with the completion of structural steel, relocated temporary power and ongoing installation of the exterior metal studs. This project remains on schedule with completion anticipated in June 2027. Work started on Embarcadero Road Improvement Project – Phase 1 on June 8. Grading and storm drain work was completed, widened sidewalk work is underway. Work is anticipated to be completed prior to school starting on August 13. The staff team welcomed a record seven interns, and is excited to provide them with meaningful, hands-on experiences. Staff hopes they will carry their positive experiences into their careers and help strengthen the wastewater industry. Staff completed several major plant shutdowns to accommodate the two largest construction projects currently underway at the plant, the Secondary Treatment Upgrades and Local Advanced Water Purification System projects, both of which are on track for 2028 completion. The work completed without any major compliance issues. The plant continued providing public and private tours, and received positive feedback from attendees. Staff safely managed an unusual sea foam event during King Tides in early July, which did not result in any major compliance concerns. Sea foam began billowing out of the final effluent box—the structure where treated water leaves the plant and flows to the Bay. Staff believes seawater carried organic material into the effluent box during a period of low plant flow in the middle of the night. A subsequent high tide from the Bay, combined with increased flow from the plant mixing within the relatively small area of the effluent box, appears to have created the sea foam. A new project to build a local workforce pipeline by creating awareness and generating enthusiasm for career pathways in the wastewater industry began this summer. Work completed by this year’s summer intern includes a new careers webpage with employee interviews, development of a Wastewater Treatment Plant Careers Tour for teens and research on existing programs to inform a 3-year workplan. Zero Waste City Facility Audit Household Hazardous Waste Station Outreach and Video Youth Climate Advisory Board (YCAB) and E-Bike Training Utilities Department Fiber-to-the-Premises (FTTP) and Palo Alto Fiber installation processes, service activation, customer service workflows and network support. Staff will return to the Utilities Advisory Commission and Council with pilot data, financials and customer metrics by the end of 2026. Gas Main Replacement Project Summer Progress Foothills Wildfire Mitigation Project Annual Water Quality Report California Renewables Portfolio Standard Program FISCAL/RESOURCE IMPACT STAKEHOLDER ENGAGEMENT Foundation: Community Postvention Conversation (August 11) and It’s OK to Say Suicide (August 12). The annual State of the City address is scheduled for Wednesday, August 19 at the Palo Alto High School Performing Arts Theater. Later in August, there are two community meetings on the grade separation project (August 24 and 25) and one on the South Palo Alto Bike / Ped Connectivity project (August 26). Website Statistics for January – July 27, 2026 o Home page o Careers o Content search landing page o MyCPAU Account Login o Utilities Department o Meeting Agendas and Minutes o Register for Activities & Classes o Palo Alto Children’s Theatre o Creek Monitor & Camera o Palo Alto Art Center ENVIRONMENTAL REVIEW ATTACHMENTS APPROVED BY: