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HomeMy WebLinkAbout2026-08-10 City Council Summary MinutesCITY COUNCIL SUMMARY MINUTES Page 1 of 27 Regular Meeting August 10, 2026 The City Council of the City of Palo Alto met on this date in the Council Chambers and via virtual teleconference at 5:30 p.m. Present In Person: Burt, Lauing, Lu, Lythcott-Haims, Stone, Veenker Present Remotely: Keith Reckdahl remote call-in teleconference location: Holiday Inn Huntsville Research Park, 5903 University Drive, Huntsville, Alabama 35806 Absent: None Call to Order Mayor Veenker called the meeting to order. Councilmember Reckdahl said he was participating remotely for just cause. City Clerk Mahealani Ah Yun read the remote participation statement. Councilmember Reckdahl stated that he met the posting requirement, that he is in the business center in the lobby of his hotel in Huntsville, and that his location is publicly accessible. Agenda Changes, Additions, and Deletions City Manager Ed Shikada noted the removal of Item AA1 from this evening’s agenda. The order of items on the agenda was changed to implement Senate Bill 707. In addition to in-person public comment, virtual public comment will be held at the end of this evening’s agenda. The printed agenda shows the Council’s break at 6:25 p.m.; however, consistent with Council practice, the break will likely occur later in the evening. As a result, the action items may occur earlier than the stated times. In-Person Public Comment 1. Manpreet S. commented on 20-foot-wide Cypress Lane in Barron Park. A few years ago, residents called the police about abandoned vehicles on Cypress Lane, which led to the vehicles being towed. More recently, when the same complaint arose, police said they could not act because Cypress Lane is designated as private. The City’s GIS maps label Cypress Lane as private; however, Santa Clara County’s maps do not classify it as private, and it appears on no property tax roll. The City issued a conditional use permit to Happy Donut that directs public traffic through Cypress Lane. Competing ownership claims cause confusion and hardship for neighbors living next to the lane. Palo Alto Online covered this issue in 1993, 2002, 2008, and 2010. In 2022, the Finance SUMMARY MINUTES Page 2 of 27 City Council Meeting Summary Minutes: 08/10/2026 Committee directed staff to research the ownership of Cypress Lane, and staff proposed a 3-step plan to determine ownership, establish a path for the City to take over the lane, and repair and maintain it. Staff has not carried out that plan. Manpreet S. urged the Council to resolve this issue, direct staff to determine the ownership of Cypress Lane, and provide residents with clear, consistent answers regarding the services and protections they can expect on this street. The City wastes resources each time this issue resurfaces without a resolution. 2. Matt Schlegel requested that the Council order the covering of Flock cameras and terminate the contract with Flock. He is a member of several groups deeply concerned about City-sponsored mass surveillance, which he believes violates the Fourth Amendment right to privacy. This surveillance may inhibit residents from exercising their First Amendment right to publicly express grievances. A Flock camera was installed at the intersection of Maybell and El Camino, pointed directly at a location where a group regularly meets to protest. Additionally, a LiDAR surveillance device was installed at the same site 2 weeks ago. Matt S. could not find any information about the LiDAR device on the City’s website. He asked the Council to direct staff to disclose the following details to the public: Why was this device installed? What data is being collected? Where is that data stored? Who has access to the data? What measures are in place to prevent unauthorized access to the data? Next week marks the National Week of Action, which aims to raise awareness about the dangers of mass surveillance, with 342 locations across the country holding rallies. Matt S. encouraged Council Members to meet their constituents at Palo Alto’s rally on Thursday, August 20, at King Plaza at 5:30 p.m. He thanked Councilmembers Lu and Reckdahl for recently attending a democracy forum on the risks associated with Flock cameras. Matt S. urged the City to cover the Flock cameras as soon as possible, similar to Stanford's recent action. 3. Raymond Goins spoke on behalf of the Coalition for Justice and Accountability regarding the recent discovery of swastikas and anti-Black racial slurs in public restrooms across Palo Alto. Raymond G. believed that solely punitive measures or physical cleanup will not address the underlying issues. A racist mural in the hallway of the Palo Alto branch of the Santa Clara County Court, between Departments 84 and 85, depicted the colonization and subjugation of Native Californians, including the Muwekma Ohlone people, portraying them as subservient beings kneeling before their oppressors. Following intense advocacy by the NAACP, the Coalition for Justice and Accountability, and the Muwekma Ohlone Tribe, the mural was recently covered with a curtain. The urgency of needed systemic change is underscored by disturbing reports within the Palo Alto Unified School District, including the horrific abuse and neglect of a 10-year-old African American student at Escondido Elementary, where staff reportedly failed to intervene during physical assaults; and an incident at Greene Middle School where a Black student was reportedly auctioned off, demonstrating a dehumanizing culture within our schools. These incidents reflect institutional neglect and a systemic gap. Such behaviors are tolerated or met with insufficient responses, creating a permissive atmosphere that emboldens youth to exhibit more extreme and public forms of hate SUMMARY MINUTES Page 3 of 27 City Council Meeting Summary Minutes: 08/10/2026 and bigotry. Raymond G. believed that public education must also equip students to navigate and sustain a diverse democratic society. Mr. Goins will submit a letter with his full comments. Council Member Questions, Comments, and Announcements Councilmember Burt announced that Caltrain received the 2026 Outstanding Public Transportation System Award from the American Public Transportation Association (APTA). Caltrain continues to see increased ridership, now at 80 percent of pre-pandemic levels. Councilmember Burt met with representatives from the Palo Alto Museum and learned they are planning an outdoor community event on October 11 as part of their rolling opening. The event is expected to draw 300 to 500 attendees and will include music, a history trivia contest, and ice cream in the park space immediately behind the museum. However, because construction is anticipated in that area to repair water leakage issues, the Palo Alto Museum is uncertain whether it can proceed with the event. Given that we had fewer than our standard 6 summer concerts this year, Councilmember Burt proposed that the City partner with the museum for an event on the other half of the park, where large music events are held. Councilmember Burt suggested dedicating up to $10,000 from the Council Contingency Fund, either in cash or through in-kind contributions, to support the event. Councilmember Burt noted that Item AA1 would have addressed the potential removal of Mr. Peterson from the Planning Commission and whether to release an appropriately redacted investigation. Since Item AA1 was no longer on the agenda, Councilmember Burt asked when the colleagues’ memo could be agendized. The press reported that Mr. Peterson supported releasing the investigation. Given the urgency with which this item was previously placed on the agenda, Councilmember Burt hopes the colleagues’ memo will be addressed promptly. Councilmember Lythcott-Haims supported using Council contingency funds or City in-kind efforts to assist with the museum's planned opening event in the park. Councilmember Lauing believed that partnering with the museum was a great idea, with the funding sources as suggested or perhaps there was a budget leftover from concerts. Councilmember Reckdahl thought it would be a great community event and help kick off the museum's opening. Mayor Veenker wanted to speak with the museum to learn more about the upcoming event and its needs. Mayor Veenker echoed Mr. Goins's concerns about the disappointing racist incidents observed over the summer, which must be condemned. Mayor Veenker hoped to gather youth to speak out and unite against such incidents and planned to follow up in the next couple of weeks. Mayor Veenker had not seen the colleagues’ memo and wanted to review the draft. Given the changed circumstances, Mayor Veenker thought the commissioners might want to revise or adapt the colleagues’ memo to reflect the current situation. If the Council addressed this, Mayor Veenker suggested taking a broader approach to consider parameters and decision points going forward, rather than addressing only this specific issue. Mayor SUMMARY MINUTES Page 4 of 27 City Council Meeting Summary Minutes: 08/10/2026 Veenker will review this with the City Attorney and the City Manager during agenda planning. Mayor Veenker reminded everyone that the State of the City will take place next Wednesday at Palo Alto High School’s Performing Arts Center, with a special guest performance at the end. The theme is "One Community," in recognition of the collaboration, interdependence, and common values of our community. Councilmember Burt emphasized that the procedures and protocols clearly outline the process for colleagues’ memos submitted to the Council. Colleagues’ memos must come at the earliest feasible date, not at the mayor’s discretion. Councilmember Burt stated that there was no need to change the colleagues’ memo. Consent Calendar Public Comment: 1. Avram Finkelstein commented via Zoom on Item 8. The Daily Post reported that the Council may allow City Manager Ed Shikada to sign larger contracts without the Council's approval. Avram F. expressed concern about the millions of dollars in consulting fees City Manager Shikada has approved without Council approval, which have negatively impacted the City’s budget, and felt it would be irresponsible for the Council to grant City Manager Shikada the authority to approve larger contracts. Avram F. thought contracts should be approved individually, not on the Consent Calendar. Avram F. urged the Council not to grant City Manager Shikada approval for larger contracts and suggested that the Council approve contracts above $100,000 or establish a reasonable cap. MOTION: Councilmember Lythcott-Haims moved, seconded by Councilmember Lauing to approve Agenda Item Numbers 1 to 18. MOTION PASSED: 7-0 1. Approval of Minutes from June 8 and June 15, 2026 Meetings 2. Recommend City Council Approval to Extend Certain FY 2026 City Auditor Task Orders with No Impact to Task Order Budgets 3. Recommend City Council Approval of the City Auditor Annual Risk Assessment and FY 2027 Audit Plan and Corresponding Task Orders. CEQA Status: Not a Project. 4. Approve Program Guidelines for a Public Agency Electric Vehicle Charging Hub Grant Program; CEQA Status - Under CEQA Guidelines Section 15183, Projects Consistent with an Existing General or Comprehensive Plan do not Require Additional CEQA Review 5. Adoption of a Resolution Establishing the FY 2027 Property Tax Levy for City of Palo Alto General Obligation Bonds (2008 Measure N Library Projects); CEQA Status: Not a Project SUMMARY MINUTES Page 5 of 27 City Council Meeting Summary Minutes: 08/10/2026 6. Adopt a Resolution Making Required Findings in Support of Acceptance of Funding from Vehicle Registration Fee-Intelligent Transportation Systems (VRF-ITS) Cycle 5 Grant Program; and amendment of the FY 2027 Budget in the Capital Improvement Fund. CEQA Status – Categorically Exempt (CEQA Guidelines section 15301b Existing Facilities). 7. Adoption of a Resolution Approving a NAESB Base Contract for Sale and Purchase of Natural Gas with JPMorgan Chase Bank, N.A. and Authorizing the City Manager or Their Designee to Transact Under the Contract for a Portion of the City’s Natural Gas Requirements; CEQA Status: Not a Project, CEQA Guidelines 15378(b)(5) 8. Adoption of an Ordinance Amending Section 2.38.240 [Settlement of Claims and Actions] and Chapter 2.30 [Contracts and Purchasing Procedures] of the Palo Alto Municipal Code, as accepted 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. 9. Approval of Purchase Order with JAM Services, Inc. for the purchase of Traffic Signal Network Switches for a Total Not-To-Exceed Amount of $714,639 for 2 years; and amendment of the FY 2027 Budget in the Capital Improvement Fund. CEQA Status – Categorically Exempt (CEQA Guidelines section 15301). 10. Approval of Contract C27197195 with High Point Power Systems in the Amount of $286,660 for the Repair and Refurbishment of a Load Tap Changer Located at Adobe Creek Substation; and Authorization for the City Manager or Their Designee to Execute Change Orders in an Amount Not-to-Exceed $28,666, for a Total Contract Not-to-Exceed Amount of $315,326. CEQA Status – Categorically Exempt Under CEQA Guidelines Sections 15301 and 51302. 11. Approval of Contract No. C27196740 with Blackhawk Painting Inc. in the Amount of $735,500 Over a Period of 18 Months for Electric Substations Equipment and Mechanical Structures Painting Services; Authorization for the City Manager or Their Designee to Execute Change Orders in an Amount Not-to-Exceed of $73,550, for a Total Not-to-Exceed Contract Amount of $809,050; and Approval of a Budget Amendment in the Electric Fund; CEQA Status: Categorically Exempt Under CEQA Guidelines Section 15301. 12. Authorization to Execute Amendment to Legal Services Contract S25194587 with Atkinson Andelson Loya Ruud & Romo to Increase Amount by $100,000 for Total Not-to- Exceed Amount of $285,000; CEQA Status – Not a Project. 13. Approval of Amendment No. 1 to Contract No. C24189086 with Carollo Engineers, Inc., to Increase the Contract Amount by $551,755 for a Revised Total Not-to-Exceed Amount of $3,294,529, and to Extend the Contract Term by Six Months through December 2027, for the Long Range Facilities Plan Update for the Regional Water Quality Control Plant (WQ-19002); CEQA Status – Not a Project SUMMARY MINUTES Page 6 of 27 City Council Meeting Summary Minutes: 08/10/2026 14. Approval of Contract Amendment No. 1 to Contract No. C25191297 with Kittelson & Associates to Extend the Term through September 9, 2028, and Update the Scope of Services and Schedule of Rates for the South Palo Alto Bike/Ped Connectivity Project (Southern Palo Alto Bicycle and Pedestrian Railroad Crossing Study), with No Increase to the Previously Approved Not-to-Exceed Compensation; CEQA Status – Categorically Exempt 15. SECOND READING: Ordinance of the Council of the City of Palo Alto Amending Section 18.18.120 of Title 18 (Zoning) of the Palo Alto Municipal Code to Allow Greater Flexibility for Noncomplying Facilities in the Commercial Downtown District (FIRST READING: June 15, 2026; PASSED: 7-0) 16. SECOND READING: Ordinance of the Council of the City of Palo Alto Amending Various Chapters of Title 18 (Zoning) and Chapter 16.59 (Citywide Transportation Impact Fee of the Palo Alto Municipal Code, and the Zoning Map, to Implement Retail Vitality Measures (FIRST READING: June 15, 2026; PASSED: 7-0) 17. SECOND READING: Ordinance of the Council of the City of Palo Alto Amending Chapter 12.32 (Water Use Regulations) of the Palo Alto Municipal Code to Incorporate Additional Water Use Regulations (FIRST READING: June 8, 2026; PASSED: 7-0) 18. SECOND READING: Ordinance of the Council of the City of Palo Alto Amending the College Terrace Residential Parking Program (RPP) at PAMC Section 10.46.060 to Remove Fixed Permit Terms, Sale and Grace Periods (FIRST READING: June 15, 2026; PASSED: 7-0) City Manager Comments City Manager Ed Shikada announced that the Public Safety Building received its final temporary certificate of occupancy last week, enabling full move-in. The next phase includes relocating police patrol and other units, except 911 dispatch, which is planned for the next few weeks, once all other operations are in place. Staff will announce the date for the transition of the police counter and records service from City Hall to the new Public Safety Building. City Manager Shikada noted various construction activities underway around town. The major storm drainage infrastructure project on East and West Bayshore Road is causing disruptions, particularly on East Bayshore Road. Improvements to Embarcadero Road for bicycle and pedestrian access will include Saturday work, with completion expected this week. PG&E’s major construction project at the intersection of El Camino Real and Arastradero will continue through September. Utility work on Alma Street between Colorado Avenue and El Carmelo will continue through October. As this is the first week of school for the Palo Alto Unified School District, City Manager Shikada urged community members to be patient and allow extra travel time. SUMMARY MINUTES Page 7 of 27 City Council Meeting Summary Minutes: 08/10/2026 The Jed Foundation will host “Community Response to Suicide” tomorrow evening and “It’s OK to Say Suicide” on Wednesday. August is Wellness Month, and City Manager Shikada encourages community members to explore local offerings throughout the month. Community members can attend the State of the City next Wednesday in person or watch it live on YouTube. Community meetings for the Grade Separation Project on Churchill Avenue, Meadow Drive, and Charleston Road are scheduled for Tuesday, August 25, and Wednesday, August 26. A workshop on the South Palo Alto Bike and Pedestrian Rail Crossing will be held on Thursday, August 27. The Transportation Management Association is sponsoring events every Tuesday throughout the month to help community members become familiar with the El Camino Real bike lanes. More information on these events is available on the City website. Upcoming City Council meeting agendas include: On August 17, a public hearing on the proposed development at 762 San Antonio Road and proposed ordinance amendments for accessory dwelling units and junior accessory dwelling units. On August 24, a semiannual study session with the independent police auditor and a discussion of the ALPR (automated license plate reader) review, along with action items addressing oversized vehicle parking and the Buena Vista regulatory agreement. There will be no meeting on September 7 due to Labor Day. The City Council will instead meet on Wednesday, September 9, for an approximately 2-hour closed session regarding the CAO evaluation, a study session on consultant contract management, an action item related to the grand jury report on VTA oversight of the BART project, and a public hearing on the proposed development at 470 Olive Avenue. Action Items 19. PUBLIC HEARING: Consideration of Objections for Weed Abatement Assessments; and Adoption of Resolution Confirming the Weed Abatement Report and Ordering Abatement Costs to be a Special Assessment on the Properties Specified in the Report; CEQA Status – Categorically Exempt. The special assessment list included a Stanford-owned property at 3500 Deer Creek Road. Mayor Veenker has performed legal work for Stanford University. Councilmember Lu is employed by SLAC National Accelerator Laboratory. City Manager Ed Shikada’s wife is employed by Stanford Medical Center. Mayor Veenker, Councilmember Lu, and City Manager Shikada recused themselves from Stanford-related portions of this item. Vice Mayor Stone invited the public to comment on 3500 Deer Creek Road. Public Comment: None. MOTION: Councilmember Burt moved, seconded by Councilmember Lythcott-Haims, to: 1. Hold a public hearing to consider objections from affected property owners regarding proposed assessments for completed weed abatement work at 3500 Deer Creek Rd., and SUMMARY MINUTES Page 8 of 27 City Council Meeting Summary Minutes: 08/10/2026 2. Adopt a resolution confirming the report and ordering that abatement costs be assessed as a special assessment on the 3500 Deer Creek Rd. property specified in the report (Attachment A). MOTION PASSED: 5-0, Lu and Veenker recused Mayor Veenker and Councilmember Lu returned to the meeting. Mayor Veenker opened public comment on properties other than 3500 Deer Creek Road. Public Comment: None. Mayor Veenker closed the public hearing. Councilmember Reckdahl noted that the City staff spent a lot of time on this and asked whether the revenue was sufficient, whether the City was losing money, or whether this effort was revenue-neutral. City Manager Shikada considered this service provided by the County to be revenue-neutral. Fire Marshal Tami Jasso explained that the City has a contract with the County. The County charges a fee for conducting property inspections. If property owners do not complete the necessary mitigation in time, the County hires a company to perform weed abatement, and the associated costs are billed to the property owner. The City does not receive weed abatement bills. The contract includes a clause stating that the City could have to pay for excess charges incurred by the County; however, this has not occurred in recent years. Overall, the program is cost-neutral. County representatives, including an inspector and the program supervisor, were present to answer questions. MOTION: Vice Mayor Stone moved, seconded by Councilmember Lauing, to: 1. Hold a public hearing to consider objections from affected property owners regarding proposed assessments for completed weed abatement work, and 2. Adopt a resolution confirming the report and ordering that abatement costs be assessed as a special assessment on the properties specified in the report (Attachment A) MOTION PASSED: 7-0 20. Approval to Proceed with Final Design for the Permanent Installation of the Crescent Park Traffic Calming Project including a Bulb-out on Southwood Drive and East Crescent Drive; CEQA Status – Categorically Exempt. Ripon Bhatia, Senior Engineer with the Office of Transportation, presented the final concept plans for the Crescent Park traffic calming project. On November 6, 2023, the Council approved these concepts on consent. Staff sought the Council's direction to proceed with the final design. Staff gathered feedback from the community and adjacent property owners on the revised SUMMARY MINUTES Page 9 of 27 City Council Meeting Summary Minutes: 08/10/2026 concepts. At its September 2025 meeting, the PTC expressed concerns about the proposed recommendations. The project goals and objectives were to improve safety and quality of life for neighborhood residents, minimize cut-through traffic, and reduce speeds. Neighborhood community meetings identified 2 locations: the 5-point intersection of Center, Southwood, and Hamilton Drive, and the intersection of Southwood and East Crescent Park. Photos illustrated the pilot traffic circle at the intersection of Center, Southwood, and Hamilton, as well as the curb extension and realignment with stop signs at Southwood and East Crescent. Staff first addressed this issue in 2017. Residents' concerns about cut-through traffic were evaluated and analyzed. Recommended solutions were discussed with the community in 2019 and 2020. In 2020, the PTC and the Council reviewed proposed pilot improvements at those intersections, and the installations were completed in August 2021. Staff collected post-installation data to assess the effectiveness of the pilot improvements, and the PTC and Council reviewed the data in June 2023. At that time, the recommendations were to proceed with the pilot improvements and obtain input and community feedback. Staff gathered feedback from the community and adjacent property owners, revised the concepts, and brought this item back to the PTC in 2024 and 2025. The community has generally supported the 5-point intersection with a traffic circle. Today's discussion focused on the curb extension and realignment at the Southwood/East Crescent Park intersection. Property owners and community members raised concerns about aesthetics, parking loss, accessibility, and landscaping. The existing curb ramp will be converted to a concrete path to enhance accessibility and increase parking. Crosswalk realignment will reduce pedestrian travel distances, improve safety, and increase visibility. Option 1 included a reduced bulb-out, a pedestrian crossing with ADA-compliant ramps, a concrete platform for fronting property access, three-way stop signs, and a crosswalk. Option 2 removed the bulb-out but kept the three-way stop signs. Parking will be restricted near the crosswalk in accordance with AB 413. Staff evaluated 3 options, considering goals and objectives related to accessibility, traffic calming, aesthetics, and on-street parking. Staff recommended Option 1 as a balanced solution that enhances safety, reduces cut-through traffic and speeds, incorporates most design elements, adheres to engineering and planning principles, and addresses ADA compliance and property access concerns along Crescent Drive. The proposed bulb-out will feature low-height, aesthetically pleasing, drought-resistant plants. Staff is seeking Council direction on moving forward with the final design. Councilmember Lu asked about the purpose of the 2 yellow lines on Slide 10 for Option 1 and requested the turning radius before and after Option 1. Senior Engineer Bhatia explained that the yellow line marks the 15-foot distance from the crosswalk to the concrete platform area. AB 413 restricts parking in the area approaching the crosswalk. The orange line indicates where vehicles may park. The concrete platform will be accessible from the frontage and will connect to the sidewalk. The existing turning radius is estimated at more than 60 or 70 feet, while the new design will have a turning radius of about 25 to 30 feet. SUMMARY MINUTES Page 10 of 27 City Council Meeting Summary Minutes: 08/10/2026 Mayor Veenker noted that the road was narrow and asked whether the orange line on the slide indicated parking or a drop-off area. Senior Engineer Bhatia said the resident had been accessing the fronting ramp for parking. Chief Transportation Official Ria Hutabarat Lo added that parking is available along the side of the street farther up toward University Avenue, which functions as a yield street and requires drivers to slow down as they approach. Councilmember Burt asked whether the orange line addressed the resident’s disability-access needs, whether the resident wanted parking in the area designated for a larger landscaped section, and whether staff had considered reducing the landscaped area so the bulb-out would extend just beyond the new entrance to the sidewalk. Councilmember Burt sought clarification on the purpose of extending the bulb-out beyond the intersection corner and occupying parking space in front of a home, especially if it does not contribute to traffic calming. The Council packet included a 2-page letter from the Planning Commission Chair and Vice Chair noting that the PTC’s enthusiastic support for the 5-point intersection in June 2023 was not accurately reflected in the materials presented to the Council on consent. The staff report to the Council in November 2023 stated that the PTC unanimously endorsed the project and recommended that staff gather input from adjacent property owners. Chief Transportation Official Hutabarat Lo stated that staff was focused on providing ADA access to the pedestrian routes, including the sidewalk and crossing. The resident wanted vehicle access, so staff proposed a concrete pad, similar to those at bus stops but narrower, to allow stepping into the vehicle from the curb. Without the bulb-out, parking in the orange area would not be permitted under AB 413. Option 1 was a smaller bulb-out than the existing one on the street. The bulb-out is intended to better align with the other side of the street and create a continuous sidewalk line on both sides of Southwood Drive. If a pedestrian is heading west on Southwood Drive and Crescent Drive is on their right, the goal is to make the crossing at this intersection as short and aligned as possible. The PTC commissioners discussed this extensively at their meeting, so staff focused on the PTC motion and actionable descriptions of the design concerns. Senior Engineer Bhatia said aligning the curbs on the west and east sides facilitated the continuity of vehicular traffic flow straight on Southwood. The curb on Southwood would be aligned on both sides of Crescent, making it appear as a straight road. On June 14, the PTC approved a motion reflected as follows: To make permanent traffic calming improvements at Location 1, the intersection of University Avenue and West Crescent Drive; Location 3, the intersection of Southwood, Center, and Hamilton; and Location 2, Southwood and East Crescent, with the condition that it be landscaped. The PTC recommended further work on Location 2, suggesting that the bulb-out design be made more suitable with direct input from the adjacent property owners. SUMMARY MINUTES Page 11 of 27 City Council Meeting Summary Minutes: 08/10/2026 None of the corners in Councilmember Reckdahl’s neighborhood have crosswalks, which led him to question why we were adding marked crosswalks in a residential area, as shown on Slides 10 and 11, thereby triggering AB 413. According to Packet Page 344, a survey indicated that 74 percent of neighbors wanted the pilot improvements made permanent. Councilmember Reckdahl inquired about the wording of the survey question and whether respondents preferred the bulb-out design and might be disappointed if we replaced it with something else, such as a stop sign. Residents are frustrated with cut-through traffic and may have been desperate for any form of traffic calming. Chief Transportation Official Hutabarat Lo explained that AB 413 applies to both marked and unmarked crosswalks. Parking is prohibited within 20 feet of a crosswalk in all residential areas. Senior Engineer Bhatia reported that a survey was conducted across the entire neighborhood to determine whether residents wanted the pilot improvements to be made permanent at each location. The survey showed that 74 percent of the neighborhood favored moving forward with the bulb-out at the intersection of East Crescent and Southwood. Additionally, we surveyed 5 to 7 homes adjacent to this location in each direction. That subset showed about 75 percent in favor of proceeding with the bulb-out design. The pilot bulb-out was installed after various alternatives were considered during community meetings and the community feedback process in 2018 and 2019. Staff made the final selection of curb extension realignment after neighborhood input and feedback. Public Comment: 1. Dan Goggins spoke on behalf of his father-in-law, Jim Girand, who was unable to attend tonight but requested that his statement be read. Jim G. can no longer drive but he desires to remain as independent as possible while living with disabilities. The City installed a 900-square- foot traffic bulb-out directly in front of his home, which he learned about only after construction began in 2021. Jim G. is the homeowner most directly affected, yet no one asked for his input or notified him about the project. The bulb-out has made it more difficult and, at times, unsafe for Jim G. to get in and out of vehicles and reach his front door. With his limited mobility, additional curbs, obstacles, and distance threaten his independence. According to the City, East Crescent and Southwood were among the safest intersections in Crescent Park. Vehicle speeds were at or below the posted limit before the bulb-out and remain so afterward. The City’s consultant found no reduction in traffic attributable to the bulb-out and no measurable safety benefit. If the intersection was already safe and the project did not improve safety, Jim G. questioned why the bulb-out should be made permanent. It felt less safe after the pilot was installed, with drivers squeezing through the narrowed roadway and cyclists having little room to safely pass moving vehicles. Jim Girand’s concern was whether decisions that permanently affect people’s homes were grounded in evidence, made transparently, and carried out with respect for the residents who must live with the consequences. Jim G. asked the City to restore this intersection to its original condition. SUMMARY MINUTES Page 12 of 27 City Council Meeting Summary Minutes: 08/10/2026 2. Juanita Girand Goggins is the co-owner of 590 East Crescent. She submitted a letter to the Council highlighting significant misstatements of fact and evidence in today’s staff report. Juanita G. believed staff should provide objective evidence that this project is necessary and effective. Before the pilot was installed, the City’s records show that the intersection of East Crescent and Southwood was among the safest in Crescent Park, based on citations and collisions. According to the City’s consultant, Fehr & Peers, vehicle speeds were at or below the posted speed limit before and after the project. Fehr & Peers concluded that changes in traffic volume at the intersection were consistent with broader post-pandemic trends across Palo Alto, rather than the bulb-out. The City failed to demonstrate that this pilot produced any improvements in speed, volume, cut-through traffic, or safety. Eleven residents living closest to the project signed a petition requesting removal of the bulb-out. This petition was delivered to the Office of Transportation but was never presented to the PTC or Council. Emergency vehicles were never tested on the sharp hairpin turn from East Crescent onto Southwood; testing was limited to the easier route through the intersection. The intersection now appears less safe, as moving vehicles heading in opposite directions on East Crescent struggle to pass each other. Bicycles have no safe path when moving vehicles are present. Juanita G. asked the Council to consider the impact of this bulb-out on her elderly, disabled father, who is forced to take a longer, more difficult route between his home and a vehicle. Juanita G. urged the Council to vote for Option 3 and restore the intersection to its original condition. 3. Laurie Girand, co-owner of 590 East Crescent, commented on the bulb-out at East Crescent and Southwood. A recent article inaccurately portrayed the Girand family as the cause of many delays in approving the overall traffic calming project. As early as 2023, the Transportation Department had the authority to separate the intersection's approval from the rest of the project but staff chose not to. Her family has been open to alternatives for years, yet staff proposed none. An unexplored and unproven option is now presented that does not meet the goals, shows no substantiated improvement, and has not received PTC approval. Bulb-outs and stop signs do not always make intersections safer or improve traffic flow, especially when drivers roll through stop signs as they currently do. Transportation emailed volunteer Greg Welch and asked him to notify her father about the pilot installation. In 2023, Transportation presented a proposal to the Council that the PTC had not approved, implying it had been approved. Transportation is now proposing another alternative that has not received PTC approval. If the Council approves Option 1 or 2, it sends a clear message to Transportation that substantiation and PTC review are not important. Laurie G. urged the Council not to reward Transportation for circumventing formal processes, causing unnecessary delays, and failing to complete the homework the PTC explicitly requested. Laurie G. asked the Council to return the intersection as closely as possible to its original state, as decades of evidence show it is no more dangerous or safer than most residential intersections throughout Palo Alto. 4. Sheryl Klein displayed a picture taken in front of her house at 576 East Crescent Drive, next door to the Girands. Her street is very narrow and serves as a cut-through for traffic getting on and off Highway 101 seeking a quick passage downtown. The bulb-out has significantly slowed traffic in her neighborhood, making her street feel much safer. Cars can see the stop sign from about 25 to 30 feet away, which helps ensure they slow down and creates a SUMMARY MINUTES Page 13 of 27 City Council Meeting Summary Minutes: 08/10/2026 safer environment for cyclists and pedestrians crossing the street. Sheryl K. supports modified Option 1, and would be disappointed if there were no stop sign and measures to slow traffic cutting through. 5. Harlan Pinto lives at 1845 University Avenue, around the corner from the location in question. In 2017, Greg Welch organized this effort. Harlan P. drives and walks through the area daily and supports the project, urging the Council to approve Option 1. However, he expressed disappointment with some staff-related issues. Plastic bollards were installed at West Crescent and University but not at Center and East Crescent, even though it was part of the original plan. In tonight's presentation, staff did not mention plastic bollards. These bollards are inexpensive, very effective, and help discourage cut-through traffic. Harlan P. believed that the bulb-out could become an amenity for the neighborhood, similar to the beautiful circles on Ross Road. The bulb-out has successfully slowed traffic that used to speed around the corner from University into the neighborhood. Harlan P. urged the Council to approve this important project and to ask staff to reconsider installing bollards. 6. Keith Raffel lives at 275 Southwood, at the end of the cul-de-sac. Traffic at the intersection of Southwood and East Crescent has been worsening. They feel stranded at home during rush hour as traffic backs up for 2 blocks. If average traffic speed has slowed, it is because traffic does not move at all for a couple of hours a day. Keith R. favors keeping the existing structures with proposed improvements, noting that conditions have improved significantly and it is safer since their installation; however, adjustments could address other problems that have arisen. Keith R. preferred making East Crescent a one-way street, as it is very narrow, especially with parked cars. Keith R. urged the Commission to avoid making the situation worse. 7. Greg Welch provided comments via Zoom. Nearly 9 years ago, he met with neighbors from Crescent Park who were increasingly frustrated by safety hazards caused by cut-through traffic that led to gridlock in their neighborhood. When it was not gridlocked, commuters sped through the residential streets. They held many public meetings, publicized to the neighborhood in collaboration with the Transportation Department. The test installation was completed. The City collected extensive data before and after the temporary installations. The data showed traffic calming in the neighborhood, with reductions in speeding, overall traffic volume, and gridlock. The temporary structures have been in place for over 5 years; however, they were not designed for permanent installation and are an eyesore. A City survey indicated that the neighborhood's general sentiment is that the temporary installations have been an improvement, and removing them would be seen as a step backward. Greg W. acknowledged homeowners' concerns at the apex of the turn from Southwood into East Crescent but emphasized that this is a public thoroughfare and that most residents in the neighborhood favor this project. 8. Doria Summa served on the Planning Commission when this issue was discussed and sought to convey the Commission’s sentiments on the matter at that time. It was always clear that the PTC believed the 5-point oval traffic circle was a great idea but it was not worth SUMMARY MINUTES Page 14 of 27 City Council Meeting Summary Minutes: 08/10/2026 implementing because the Girand family, who were primarily affected, did not find it desirable. Traffic patterns have changed over the last decade, likely improving conditions on this street. It has not been proven that these changes were due to the traffic calming device. Doria S. felt that the traffic calming device was unnecessary, an extra expense, and a potential harm to Mr. Girand’s well-being. Doria S. did not think the traffic at that time required calming; perhaps a decade ago it was a different situation. Doria S. urged the Council to proceed with the 5-point oval traffic circle. Councilmember Lauing noted that a PTC representative was present and that the Council could seek their input. Mayor Veenker stated that the Council typically did not request input from the PTC unless someone asked for it. Councilmember Lu noted that a quorum of former PTC members was present, including Commissioners Summa, Templeton, Reckdahl, and himself. Councilmember Lu emphasized that the Council would need to make an executive decision at some point. Councilmember Lu thought Crescent Park required more attention for traffic calming. There was a fatal hit-and-run incident last year, and a car crashed into a house at Newell and Channing last weekend. With the recently passed BPTP plan, much work remains in all neighborhoods. A photo from a public commenter showed the stop sign's visibility; otherwise, it would be hard to see until you were very close to the corner. The intersection is now safer. Without a bulb-out or some form of traffic calming, drivers could easily and quickly maneuver around that corner. Best practice is to install a bulb-out at turns with a very large turning radius. A public commenter and the staff report referenced a standard from NACTO (National Association of City Transportation Officials). Caltrans, the Institute of Transportation Engineers, the American Association of State Highway and Transportation Officials, and our Bike and Pedestrian Plan define bulb-outs as a best practice. During his internet search, Councilmember Lu came across a recent peer- reviewed study that examined 94 intersections in Philadelphia with curb extensions. The bulb- outs were implemented for storm drain purposes. These intersections were not on arterial roads, and 18 percent were signalized. The findings revealed a 13 percent reduction in crashes at intersections with bulb-outs. Councilmember Lu expressed significant concern about the neighbor’s access; however, he believed there were reasonable solutions. Under Option 1, the unobstructed options for a car to pull up to pick up or drop off someone were the curb ramp, the closest access point to the front door, and the driveway, which provides the nearest route to the side door and the garage. Continuing to delay this process risks setting a negative precedent for traffic calming measures throughout the city. We will encounter other streets where we may want to remove parking, add bulb-outs, or implement other interventions that are likely safer overall but may disrupt certain neighbors. Councilmember Lu believed that moving forward with Option 1 was the best decision for both the neighborhood and the community at large. Councilmember Burt agreed that the 8-year timeframe for this project is excessively long. The Planning Commission's concerns about balancing the issues at Crescent have not been adequately addressed. Initially, Crescent Park had significant problems with traffic speeds, SUMMARY MINUTES Page 15 of 27 City Council Meeting Summary Minutes: 08/10/2026 volumes, and safety, particularly the horrendous overflow of traffic from downtown. Although traffic levels have decreased since COVID, they could return to previous levels. Councilmember Burt generally supports bulb-outs; however, he believes this proposed bulb-out is much larger than necessary for traffic calming and safety. Councilmember Burt questioned the reasoning behind aligning Southwood, as it was not identified as one of the issues we aimed to address and created an unnecessary problem with an oversized bulb-out. The PTC asked to minimize the bulb-out's impacts without compromising traffic safety. Councilmember Burt proposed keeping the bulb-out to the corner and just past the new crosswalk entrance but not including the additional landscaped area that obstructs the frontage of 590 East Crescent up to the driveway, unless staff can provide a compelling reason for a larger bulb-out. When driving westbound on University and turning left onto Crescent, the bike lane has a dashed line that allows cars to pass vehicles backed up in the middle continuing along University. Without a dashed line, that maneuver is illegal, which encourages drivers to turn at Crescent instead of at Center. Chief Transportation Official Hutabarat Lo said staff could review Councilmember Burt’s suggestion and that she believed slicing the end of the bulb-out would be acceptable. Councilmember Lauing served on the PTC when the pilot phase was discussed. Councilmember Lauing agreed that projects should not take 8 years to complete; instead, they must be finished within a year, regardless of priority. Councilmember Lauing asked whether any analyses had been conducted on using speed bumps as an alternative to construction and why this option was ruled out. Councilmember Lauing suggested that placing a speed bump just before a stop sign could slow drivers effectively. Councilmember Lauing asked how close a speed bump could be to an intersection before it would be undesirable. Councilmember Lauing suggested that staff consider converting Crescent to a one-way street, given the traffic conditions and the road's narrowness. Councilmember Lauing recalled that the PTC discussed various bulb-out sizes and settings in 2017. Councilmember Lauing believed the study cited by Councilmember Lu was statistically flawed because it failed to report the size of the bulb-outs at each intersection where it reported a 13 percent reduction in collisions. Drawing on his almost daily experience with the bulb-out at Kellogg and Middlefield on Packet Page 346, Councilmember Lauing considered it less safe than before, emphasizing that not all bulb-outs are beneficial. To turn south on Middlefield from Kellogg, you must wait for northbound traffic to clear, and even in a small car you cannot move because the road is so narrow. The bulb-out at Kellogg and Middlefield is smaller than the one proposed for Crescent Park. Councilmember Lauing found Option 2 appealing and wanted to hear staff’s perspective on its drawbacks. Stop signs are effective, faster and cheaper than the proposed bulb-out with landscaping, and any needed changes could be made in the future, possibly adding speed bumps. Senior Engineer Bhatia replied that, given the larger radius and speeding occurring at the intersection itself, realignment would be much more effective than a speed bump. Senior Engineer Bhatia did not have the exact figures but noted that you usually want at least 100 feet before a speed bump. Bulb-outs force people to reduce speed. Drivers may roll through, ignore, speed through, or may not yield at stop signs. Bulb-outs reduce pedestrian travel distance, so SUMMARY MINUTES Page 16 of 27 City Council Meeting Summary Minutes: 08/10/2026 pedestrians spend less time in the street with a large radius. At the intersection and prior to the crossing, there will be no parking. Councilmember Lythcott-Haims referred to Slide 7 and expressed concern about the timeline’s length, noting that community members have been affected by these issues for a long time. It is also unfortunate that the PTC found that its recommendations to the Council were not accurately recorded or reported. Councilmember Lythcott-Haims was inclined to support the proposed motion to significantly reduce the bulb-out to restore the frontage to Jim Girand’s home. Councilmember Lythcott-Haims asked Commissioner Templeton or former PTC Chair Summa to provide additional insight into what was miscommunicated and what procedural changes are needed to prevent similar errors in conveying information. Councilmember Lythcott-Haims wondered how staff might use this situation as a case study to analyze what went wrong, how they can learn from it, and what they will do differently moving forward. Given the small neighborhood and the project's length, it was not handled efficiently. During this project, Planning and Transportation Commissioner Cari Templeton noted personnel changes within the PTC and the Office of Transportation, as well as changes in the community due to COVID-19. The proposal was intended as a pilot project, which was uncommon at that time and was under different leadership. It was not thoroughly vetted or prepared as a permanent installation typically would be. Other options were not considered, which should have been part of the process. Commissioner Templeton did not know whether the survey questions were broad or designed to elicit the most meaningful responses rather than a default assumption. Chief Transportation Official Hutabarat Lo stated that staff is using this as a case study. Staff will present an item on the traffic calming policy to the Council, allowing review of the process, performance, and options for improvement. Vice Mayor Stone heard conflicting anecdotal accounts. While most residents believe the changes make their street safer, some feel they make it less safe. Since this is a multi-year pilot program, we should have collected data to definitively determine whether the intersection has become safer. An appearance of safety does not necessarily mean it is safer. Vice Mayor Stone asked staff to discuss the data. Ensuring ADA access to on-street parking adjacent to 590 East Crescent is necessary. Although the property owners do not like Option 1, it appears to offer better accessibility. The resident wants more direct, street-level access, but reverting to the pre-pilot access is not an option under state law AB 413. Senior Engineer Bhatia said an analysis of pre-pilot installation collision data revealed 1 serious injury collision at this intersection. After the pilot installation, no collisions have been recorded. Traffic volumes in Crescent Park decreased significantly after the pilot installation, while speeds remained similar. Average speed stayed within posted limits, ranging from 25 to 27 miles per hour pre- and post-pilot, with a slight 0.5-mile-per-hour increase in one direction and a decrease in the opposite direction, within the data-collection margin of error. University Avenue returned to its pre-pilot traffic conditions. SUMMARY MINUTES Page 17 of 27 City Council Meeting Summary Minutes: 08/10/2026 City Attorney Chris Jensen explained that the City did not receive a formal request for an ADA accommodation; however, this did not prevent Transportation staff from assessing the resident’s mobility needs. The resident has vehicular access to the property via a driveway with a curb cut. Therefore, it is difficult to argue that there is any legal obligation to provide additional access. Chief Transportation Official Hutabarat Lo confirmed that the resident at 590 East Crescent cannot have the same access as before the pilot due to the change in state law. Mayor Veenker drove by this location yesterday to view the bulb-out and believed it could effectively slow drivers. Although she did not take any measurements, the bulb-out seemed to overcorrect, bringing the driver back past a perpendicular position. The combination of vehicular speed and the previously long crossing distance scared pedestrians. With the bulb-out in place, the crossing distance for pedestrians decreases, making the crossing quicker and safer, as pedestrians can now see oncoming cars better when entering the walkway. Mayor Veenker liked staff's suggestion to incorporate a permeable surface and improve aesthetics by adding landscaping to be more consistent with the neighborhood character. Mayor Veenker also liked the parking spot depicted in orange. Three-quarters of the neighbors appear to like Option 1. Mayor Veenker was intrigued by Councilmember Burt's idea of reducing the bulb-out on the west or left side when viewing the slide, although it was difficult to gauge the proportion of the space relative to the nearby home and whether it is large enough to accommodate a car. If some of the area to the left of the bulb-out were eliminated, Mayor Veenker asked how long the sidewalk is and how to measure the 20 feet, as she wondered whether a car could fit in the curb space to the west or left side of the sidewalk up against the street. Mayor Veenker wanted to explore keeping the traffic calming and the shortened walkway while further reducing the bulb-out size. Chief Transportation Official Hutabarat Lo explained that the west or left side of the sidewalk is considered inside the intersection, and parking is not allowed in an intersection. Staff could explore keeping the traffic calming and the shortened walkway while reducing the bulb-out size. Councilmember Reckdahl encouraged staff to consider installing bollards, which he believed would improve safety and traffic. Action is necessary because the narrow roads in Crescent Park were not designed for cut-through traffic, leading to impatient drivers. Councilmember Reckdahl visited the site during rush hour while on the PTC and observed that drivers coming off University Avenue would accelerate, slam on their brakes, and coast through the stop sign at the intersection. Councilmember Reckdahl suggested placing a speed bump halfway between University and Southwood to prevent this pattern of acceleration and braking. In general, Councilmember Reckdahl liked bulb-outs; they reduce the distance pedestrians have to walk and improve safety, but he did not think they were necessary given the small streets and low traffic. Councilmember Reckdahl believed that a speed bump halfway between University and Southwood, along with a stop sign, was a simpler and maybe more effective solution. With a bulb-out, drivers would continue to accelerate on that road to reach Southwood. SUMMARY MINUTES Page 18 of 27 City Council Meeting Summary Minutes: 08/10/2026 Councilmember Lu commented on the challenge of obtaining precise data in a context like Palo Alto. In his review of various papers and guidelines, the turning radius is one of the most important factors to consider when deciding whether to add a bulb-out. If the turning radius is already tight, as in the Lucie Stern example, drivers tend to slow down significantly and must look both ways carefully. A long turning radius can make an intersection exceptionally dangerous. The guidelines indicate that the larger the intersection, the more necessary it is to prioritize bulb-outs. Given the stop sign's obscurity due to the road's curve, Councilmember Lu believes this bulb-out will be safer than the average bulb-out in the city. Speed remained similar before and after installing this bulb-out, suggesting this intervention may have a positive impact because cars tend to speed up when there are fewer vehicles. Regarding Option 2, Slide 11, Councilmember Lu raised questions about line of sight and the effectiveness of the stop sign on Crescent, as the bushes could obstruct visibility. The foliage and positioning make it difficult for drivers turning from Crescent onto Southwood to see cars on the eastern side of Southwood heading west, creating a potential risk that drivers may not notice the intersection or each other. For Option 1, Councilmember Lu suggested that it might be beneficial to shorten the leftmost, or western, side of the bulb-out. Senior Engineer Bhatia acknowledged a sight-distance challenge at the proposed location for the stop sign in Option 2. Because it is a three-way stop, some bushes may need trimming to ensure a clear line of sight. An ordinance allows Cities to enforce sight lines at intersections. Typically, after stopping at the sign, vehicles must roll forward to ensure clear visibility before proceeding through the intersection. Residents block their own driveways or back up and obstruct a corner of their driveways to provide extra parking, but this could conflict with the sidewalk. Trimming the left side of the bulb-out could provide more street parking and access without any obvious safety detriment. Councilmember Burt did not want the consideration of speed bumps or plastic bollards to delay action tonight but he encouraged exploring those options in the future. Councilmember Lauing asked whether it would be acceptable for a car to briefly stop in the curb lane to pick up a passenger at 590 East Crescent. Chief Transportation Official Hutabarat Lo confirmed that the orange location is a valid area for vehicle parking or pickup. Councilmember Reckdahl inquired whether staff had confirmed that the orange parking location provided sufficient access for the resident of 590 East Crescent. City Manager Ed Shikada replied that the resident at 590 East Crescent was dissatisfied with this concept. Chief Transportation Official Hutabarat Lo has not received confirmation that the resident at 590 East Crescent is satisfied with this concept. SUMMARY MINUTES Page 19 of 27 City Council Meeting Summary Minutes: 08/10/2026 Mayor Veenker asked the owners of 590 East Crescent whether the orange parking area would provide the resident with adequate access. The co-owner of 590 East Crescent stated that 60 feet of space in front of the house was removed for the 900-square-foot bulb-out. One parking space did not reflect the square footage and access her father has been denied. Previously, cars could pull up in front of the house but they will now need to pull up to 1 specific spot. MOTION: Councilmember Burt moved, seconded by Councilmember Lythcott-Haims, to approve the final concept design and proceed with Option 1: Permanent Traffic Calming, which includes the permanent installation of the bulb-out at Southwood Drive and East Crescent Drive as part of the Crescent Park Traffic Calming Project, with the modification that the bulb-out at Crescent and Southwood be reduced to the minimum size necessary to support the turning radius. Councilmember Lu sought clarification on whether the motion required additional language regarding buffers to ensure that when a car backs out from the parking spot along Southwood, it does not enter the sidewalk or pedestrian path. Chief Transportation Official Hutabarat Lo confirmed that the motion was acceptable and did not require any additional language. MOTION PASSED: 5-2, Lauing, Reckdahl no. The Council took a 15-minute break and returned at 8 p.m. 21. Adoption of a Resolution Authorizing the Borrowing of Funds on an Interim Basis for Improvements to the City's Regional Water Quality Control Plant and Authorizing the Execution and Delivery of a Revolving Credit Agreement, Fee Letter and Related Note; CEQA Status - Not a Project Christine Paras, the Assistant Director of Administrative Services, delivered a presentation on the line of credit (LOC) agreement, following the City Council's direction to execute a $31M facility in June 2024 after significant reimbursement delays from the State Revolving Fund (SRF). Since then, cash flow in the wastewater treatment fund has stabilized but the need for interim financing for larger capital projects remains. This line of credit is part of a broader initiative to advance over $500M in essential capital improvements at the plant to modernize infrastructure and improve regulatory compliance and operational resilience. To guide future capital investments, staff initiated a comprehensive update of the Long-Range Facilities Plan in 2024, which will be further refined in 2027 to address long-term capital needs. In November 2025, the Finance Committee reviewed funding strategies to support the plant’s near-term project delivery and long-term capital plan. Strategies included SRF loans, Water Infrastructure Finance and Innovation Act (WIFIA) loans, utility revenue bonds, LOC, and pay-as-you-go funding. The LOC serves as a temporary emergency capital reserve, providing short-term liquidity to support project cash flow and keep projects on schedule. It allows staff to draw funds only as needed rather than borrowing a large amount upfront, offering flexibility while long-term borrowing strategies are finalized. Since 2023, City staff and representatives from all SUMMARY MINUTES Page 20 of 27 City Council Meeting Summary Minutes: 08/10/2026 partner agencies have discussed the LOC concept during quarterly meetings to ensure partners understand the financing needs, the rationale for considering an LOC, and cost sharing. If the Council approves it, the initial draw on the LOC is expected later this month to cover closing costs, as required by the agreement with U.S. Bank. Clients commonly use their initial draw for closing costs. Staff plans to agendize partner agency contract amendments in the fall, after their respective City Councils approve them. This will enable Palo Alto to charge partners for their share of the LOC costs. The City sent an RFP for the LOC to 19 banks and received 2 proposals. Staff evaluated and discussed the proposals and recommends a 5-year LOC with U.S. Bank, based on the fee structure and U.S. Bank’s experience with water utilities. The City may draw funds either as taxable or tax-exempt, depending on project eligibility. Staff expects to use primarily tax- exempt drawdowns, priced at 80% of the 1-month SOFR rate plus 1.19 percentage points. The facility has a 125% rate covenant, which the City is already subject to under the existing SRF loan obligations. The annual cost to the partner agencies is expected to range from $0.8M to $1M, lower than the previous estimate of $1.3M to $1.5M that staff communicated to the Finance Committee last November. This reduction reflects more favorable rates from U.S. Bank than initially anticipated. As of today, the 1-month SOFR rate is 3.63%, meaning the rate on a tax-exempt draw would be 4.1%. A 0.25% undrawn fee applies to the unutilized amount, which covers the bank's cost of keeping these funds available to the City at any time. Staff’s recommendation was for the Council to adopt the resolution authorizing interim borrowing for the plant’s improvements and to approve the execution and delivery of a revolving credit agreement and note, not-to-exceed $31M for 5 years, and a fee letter. Given that only 2 banks responded to the RFP, Councilmember Burt asked whether staff believed we received good terms. Assistant Director Paras believed we had received favorable terms. When staff reviewed the RFPs, U.S. Bank's LOC rates were in line with the market at the time. Regarding the RFP being sent to 19 banks and only 2 responded, Assistant Director Paras found that banks preferred to propose LOCs in the hundreds of millions of dollars rather than the much smaller facility requested by Palo Alto. Mayor Veenker questioned why Mountain View can pay cash as they go while Palo Alto cannot, and what the advantages and disadvantages are for Mountain View and the group as a whole from 1 partner not participating in this LOC. The staff explained that, as the lead agency, we are advancing projects important to our operations, and this LOC serves as a vehicle to achieve that. As we review the cash flow and debt service, Palo Alto will allocate the appropriate costs to all participating partners. It would be great if all partners chose to participate in the LOC but staff can navigate nonparticipation as we go through this process. SUMMARY MINUTES Page 21 of 27 City Council Meeting Summary Minutes: 08/10/2026 Lauren Lai, Director of Administrative Services/Chief Financial Officer, stated that the debt covenants required a 1.25 percent reserve, based on the Utility’s revenues and ability to repay. Councilmember Lu asked what changes occurred at the state level, how significant that was when initially considering the LOC, and when the bond was expected to close. We have reserves with year-end balances totaling tens of millions of dollars, so Councilmember Lu inquired whether staff examined the feasibility of loans from different reserves for the $31M line item. Assistant Director Paras noted a change in 2022 or 2023. The City has several SRF loans. Reimbursements were delayed for a few months, which was the primary focus when the LOC was presented to the Council in 2024. Since then, the state’s reimbursement timing has improved. Staff reassessed the capital needs and funding strategy and still believed that the LOC could be an effective tool for funding near-term projects. Director/CFO Lai said staff is moving forward with finalizing the capital project plans, which will provide more clarity on debt financing as staff determines the appropriate bond size to provide the cash flow needed to advance design work for key projects while aiming to avoid substantial financing costs. The capital plan is nearly $0.5B, so some design work exceeds the capacity of interfund loans. Staff presented comprehensive financing solutions to the Finance Committee in 2024. The most effective option is the SRF loan, which we use substantially. A short-term loan is significantly less flexible than a line of credit. This enterprise did not have the capacity to carry a 5-year loan. Loans from other enterprises complicate matters further, and we could encounter issues related to Proposition 218 regarding the use of reserves. Staff’s current recommendation for a sustainable solution is an LOC. When staff presented this to Finance, the estimated upfront cost was $200,000. Councilmember Reckdahl posed the following questions: Which expenses are not eligible for funding at tax-exempt rates? Are there any additional upfront costs beyond the $50,000 in legal fees mentioned in the staff report? Given the 0.25% undrawn fee, did staff plan to withdraw smaller amounts or cash out the LOC all at once and deposit it into a revolving fund? Who will take out the line of credit, the wastewater fund or the water control plant? Attorney Chris Lynch from Jones Hall, the City’s bond counsel, explained that federal tax- exempt bonds are considered a subsidy by the federal government, which limits the types of projects these bonds can finance. For instance, no more than 10 percent of the proceeds from any tax-exempt obligation can be used to finance unique rights of a private business user, such as Stanford University. Additionally, there are limitations on reimbursing costs incurred before the issuance date of a tax-exempt obligation. The City is assessing whether it can reimburse prior expenses; it can make such reimbursements only within a specific timeframe using tax- exempt obligations. SUMMARY MINUTES Page 22 of 27 City Council Meeting Summary Minutes: 08/10/2026 Assistant Director Paras replied that the costs in U.S. Bank’s proposal came in differently than staff anticipated, so those represent part of the closing costs. The wastewater treatment fund is taking out the line of credit. Director/CFO Lai noted additional closing costs, including approximately $137,000 for bond counsel and municipal fiscal advisory services, bringing the total to under $200,000. The LOC has a 5-year term. Regarding the planned drawdown schedule or strategy, Director/CFO Lai invited the Public Works department to discuss project needs, which will guide cash flow. Karin North, Assistant Director of Public Works, anticipated quarterly draws based on project expenditures. For instance, once the Council approves the headworks design project and design work begins, staff will estimate quarterly expenses and withdraw those funds. Once the design is complete and construction expenses are known, staff will likely finance the design costs through a bond, WIFIA, or another method, depending on how they plan to cover the full construction cost of that project. Staff will move forward with various projects funded through the LOC. The City has no capital projects on the SRF list. The SRF is now capped at $50M, which has been depleted. This cap makes it challenging for the City’s projects to get on the SRF fundable list, which is why they are considering WIFIA and bonds. Staff was hopeful the political climate would improve and more funding would become available in the future. The LOC buys time while staff investigates alternative funding options to move the capital program forward. Director/CFO Lai stated that the fee is significantly lower for unused capacity. Therefore, the plan is to draw on the LOC as needed, as departments proceed with projects, contingent on the Council's approval of capital spending. The $31M will not be drawn immediately. Assistant Director Paras mentioned that utility revenue bonds are one strategy; however, the bond proceeds must be spent within 3 years. For large projects, the design phase can take several years. Therefore, an LOC provides immediate funding while staff determines the best long-term strategy, whether it is WIFIA or utility revenue bonds. Public Comment: None. Councilmember Lu noted that the wastewater treatment fund rate stabilization reserves were projected to be $28M at the end of FY27. If there were an additional $10M in the wastewater reserves, Councilmember Lu asked whether staff would use those reserves instead of the LOC, whether that would make it more complicated to charge our partners, and under what conditions we would not pay off the loan even if we had extra cash. Assistant Director Paras stated that staff had begun a reserve policy for the wastewater treatment fund. Before using reserves to pay off the LOC, staff wanted to pause and review best practices for determining appropriate reserve levels for the fund. Director/CFO Lai said that the decision to pay off the LOC, if resources become available, would be guided by the Council’s budget process for the 5-year capital project plan and by project timeliness. SUMMARY MINUTES Page 23 of 27 City Council Meeting Summary Minutes: 08/10/2026 Mayor Veenker has seen LOCs work well at other entities, and she was in favor of keeping the LOC balance low while maintaining flexibility to keep projects moving. Public Comment: None. MOTION: Mayor Veenker moved, seconded by Vice Mayor Stone, to adopt the attached resolution (Attachment A) authorizing the borrowing of funds on an interim basis for improvements to the City's Regional Water Quality Control Plant and authorizing the execution and delivery of a Revolving Credit Agreement, a Fee Letter, and related Notes for a total not to exceed $31M for 5 years. MOTION PASSED: 7-0 22. Adoption of a Resolution to Reduce the Membership of the Stormwater Management Oversight Committee and Direction Related to an Amendment to the Palo Alto Municipal Code to Streamline the Functions of the Historic Resources Board; CEQA Status - Not a Project City Clerk Mahealani Ah Yun stated that this item addresses ongoing operational challenges with the Stormwater Management Oversight Committee and the Historic Resources Board (HRB). Vacancies, recusals, and absences have made it difficult for these bodies to consistently achieve a quorum and conduct business, despite ongoing recruitment efforts. Staff recommends that the Council adopt a resolution to reduce the Stormwater Management Oversight Committee from 7 to 5 members. This change would better align the committee with current recruitment realities and improve its ability to maintain a quorum, without altering the committee’s responsibilities, authority, or role. Additionally, staff seeks the Council’s direction on a potential amendment to the municipal code to allow the Planning and Development Services Director to designate a historic preservation officer to handle certain routine administrative functions that currently require action by the HRB. This change aims to minimize project delays when the board cannot establish a quorum, while still maintaining the HRB’s important policy and advisory responsibilities. These administrative changes are intended to improve continuity and efficiency while ensuring meaningful community oversight. Public Comment: None. Vice Mayor Stone asked what outreach had been conducted and whether the Stormwater Management Oversight Committee and the HRB had been consulted about the proposed changes. City Clerk Mahealani Yun responded that they had not. Vice Mayor Stone expressed concern about the lack of outreach and wanted to hear the opinions of both affected bodies before he could support either change. Delaying the Council’s decision by a few months to allow staff to gather feedback would be worthwhile. While reducing the Stormwater Management Oversight Committee seemed reasonable, it was important to gather feedback from that committee first. Vice Mayor Stone wanted to hear the HRB’s perspective on the historic preservation officer's role. Vice Mayor Stone asked who would determine what constitutes minor changes to a historic structure. Vice Mayor Stone was concerned that the SUMMARY MINUTES Page 24 of 27 City Council Meeting Summary Minutes: 08/10/2026 historic preservation officer, rather than the HRB, would decide on exterior remodeling and the removal of alterations to historic structures, as changing the exterior can significantly alter the structure's character and might strip away the very elements that make it worth preserving. Vice Mayor Stone wanted detailed clarity on “removal of an alteration to a historic structure” and whether it includes changes made at any time after the original structure was built. The staff report did not include a proposed ordinance or specific language. Vice Mayor Stone wanted a recommendation from the HRB on whether they endorse the idea of a historic preservation officer. Vice Mayor Stone concluded that this matter was not ready for a Council decision at this time. City Manager Ed Shikada explained that the reason for bringing this matter forward now is the ongoing recruitment challenges for both bodies in finding eligible candidates. Staff wanted to address this issue as quickly as possible. The state reviews any changes to the proposed process. City Manager Shikada emphasized that staff is seeking general direction from the Council. If the Council decides to move forward with the HRB changes, staff will return with specific language for consideration. Senior Planner Steven Switzer noted that the City’s historic preservation ordinance has undergone minor updates but, for the most part, remains from the 1980s. A provision allows staff review of most projects but it is limited to minor revisions, which our ordinance does not define. This update would clarify the circumstances and better align with our architectural review process, allowing both staff-level reviews and board involvement. It would also align our historic preservation ordinance with those in other jurisdictions across the state and define what constitutes a staff-level review versus a board review. Councilmember Lauing stated that if staff is seeking only direction on potential changes, not a final ordinance, staff can do so with the board. Councilmember Lauing recalled that 2 years ago, the Library Commission came to the Council with a suggestion to dissolve itself, and it was ideal for the commission to take the initiative. Seeking input from the board was a quick process through a poll and the right thing to do. Councilmember Burt thought that reducing the Stormwater Management Oversight Committee from 7 to 5 members was reasonable, as its functions are mostly perfunctory. Councilmember Burt heard from 1 committee member about irregular meeting dates and times, so establishing a more consistent schedule could help committee members plan to attend meetings. Regarding the HRB, Councilmember Burt asked whether the staff person handling administrative functions would perform those duties only when there is no quorum or whether those functions would always be handled by the staff member. Councilmember Burt believed the 2 issues should be considered separately: whether a project requires HRB review under current rules but there is a lack of quorum due to vacancies, recusals, or other absences, and whether to streamline the process. Councilmember Burt felt it was appropriate for the Council to hear the HRB’s feedback on the process and weigh input from the HRB, staff, and Council Members. SUMMARY MINUTES Page 25 of 27 City Council Meeting Summary Minutes: 08/10/2026 Jennifer Armer, Assistant Director of Planning and Development Services, explained that staff reviewed the Architectural Review Board’s processes and examples from other cities to reduce the number of times items are delayed for review because the HRB lacks a quorum. The staff report described an adjustment clarifying what the HRB would review versus what an expert historian consultant would review. Councilmember Lythcott-Haims noted that government efficiency was among the Council's priorities this year. The staff report was a plea for assistance, as the HRB often struggles to achieve a quorum, causing delays. Councilmember Lythcott-Haims did not want the HRB feedback process to take too long and was inclined to support staff's recommendation to move things forward more quickly. City Clerk Ah Yun stated that the HRB consists of 5 members. There is 1 completely vacant position. Two members were termed out as of March 31, 2026, but they agreed to remain for an additional 6 months while recruitment continued; otherwise, the board would have only 2 members. Mayor Veenker acknowledged the City Clerk’s hard work on recruitment. Mayor Veenker was inclined to support a 5-member body but asked for the proportion of the City’s boards, commissions, and committees that have 5 members rather than 7. Regarding the effort to align with other cities in the state that have created similar positions for a historic preservation officer, Mayor Veenker expressed interest in reviewing a few job descriptions from those cities. Mayor Veenker requested quick feedback from the HRB on the scope of routine administrative functions the historic preservation officer would handle. Mayor Veenker generally supports having a historic preservation officer to move things along, since it is unsustainable to have vacant positions on the HRB and for members to continue serving for 6 months beyond the end of their terms. Given the HRB's requirements, Mayor Veenker questioned whether term limits should be eliminated or extended. City Clerk Ah Yun said that the ARB and HRB are 5-member bodies. Councilmember Lu was comfortable with both sets of staff’s proposed changes, though he believed the HRB-related changes would require a follow-up ordinance for Council consideration and that the HRB should provide feedback before that ordinance was presented. Councilmember Lu felt comfortable moving forward with a historic preservation officer as a fallback option when a deadline must be met or when it may take several months to reach a quorum but obtaining HRB feedback and clarifying staff’s role would be beneficial. Councilmember Lu suggested that the Stormwater Commission should dissolve, as the Library Commission did. Councilmember Lu enjoyed serving as an HRB liaison and noted members' engagement and enthusiasm. Many HRB meetings are very quick, involving decisions on 1 or 2 small items, as applicants typically conduct extensive research in preparation for the HRB. To better support the HRB's success, Councilmember Lu suggested eliminating term limits or refreshing aspects of the historic preservation ordinance to encourage more interesting and relevant projects and decisions that better preserve history, while also providing a more SUMMARY MINUTES Page 26 of 27 City Council Meeting Summary Minutes: 08/10/2026 cohesive set of historic preservation incentives. Councilmember Lu expressed interest in working on a colleague's memo to address these suggestions. Senior Planner Steven Switzer clarified that the voter initiative requires a Stormwater Management Oversight Committee, although the Council has some discretion over its membership and composition. Councilmember Reckdahl agreed that the 2 issues raised, streamlining and quorum concerns, should be debated separately. Councilmember Reckdahl asked: Does CLG status require us to have an HRB? If we streamline the responsibilities, at what point would the state no longer recognize it as an HRB? Are there specific responsibilities that must remain with the HRB? Senior Planner Steven Switzer said state law requires a board or commission to make decisions at the local level regarding historic preservation. Other jurisdictions have faced quorum issues and have assigned those responsibilities to other boards but such changes require state approval. Streamlining efforts have helped reduce the frequency of these board meetings. We have already adjusted the composition, reducing the number of members from 7 to 5 to minimally meet the state standards for a certified local government (CLG). The state weighs in on any ordinance changes. At least 4 meetings a year are required to be considered a functioning commission. A significant part of the HRB’s responsibilities includes designating historic resources, with the City Council having the final authority on what is listed in the inventory. Compliance with the Secretary of the Interior's Standards is also necessary. Some jurisdictions have implemented streamlining efforts to reduce the frequency of commission meetings but there has been debate about which responsibilities can be handled at the staff level. Councilmember Burt asked whether the HRB members who extended their terms are leaving only because of term limits or whether they would be interested in continuing. City Clerk Ah Yun stated that 2 HRB members were leaving due to term limits; however, she is unsure whether 1 board member has indicated she is ready to step down. MOTION: Council Member Burt moved, seconded by Mayor Veenker, to: 1. Adopt a Resolution to reduce the membership of the Stormwater Management Oversight Committee (SWMOC) from seven (7) members to five (5) members. 2. Direct staff to receive input on the proposed changes from the Historic Resources Board (HRB), along with staff input for future Council consideration. Direct staff to explore what other jurisdictions have done relating to the HRB concerns. Return to Council with an evaluation of relaxing term limits for the HRB and SWMOC. Mayor Veenker seconded the motion and requested that the Council be informed about what other jurisdictions have done with a historic preservation officer. Councilmember Burt agreed with Mayor Veenker’s request. SUMMARY MINUTES Page 27 of 27 City Council Meeting Summary Minutes: 08/10/2026 MOTION PASSED: 7-0 Agenda Item Number AA1 not heard. Virtual Public Comment 1. Avram F. noted increasing pushback against Zionists and expressed his disapproval of having them on our City Council. Avram F. was dismayed that Councilmember Lauing and Mayor Veenker were seeking reelection. Avram F. was concerned that Councilmember Reckdahl may be prosecutable under international law as a war criminal due to his work on weapon systems for Lockheed that have reportedly been used in Palestine. Avram F. sent Councilmember Reckdahl the re Weller case he litigated many years ago and asked what his position is on the first-strike weapon mentioned in that case. 2. Star T. thanked our emergency services for participating in the recent National Night Out, as well as the neighbors and Council Members who attended. Recent survey responses from high school students indicate they often feel as if they do not matter. She encouraged families to cultivate a sense of belonging by building relationships with people at local businesses, attending local events and classes, and appreciating the work of local government. She emphasized the importance of Council communicating effectively with constituents and of fostering care for our city. Palo Alto’s communication system may contribute to commission vacancies. Many residents are unaware of what is happening in the city, which leads to apathy. She recently received an email about park sign upgrades. The sign at Bol Park was replaced in the past few years. Although it is beautiful, she prefers something handmade from real wood that is compatible with its surroundings. She asked the City to pause the upgrades of wooden park signs and explain why uniformity is essential. She indicated strong support for the Cubberley Community Center project and emphasized the importance of the community receiving a clear message about the current and projected needs this project aims to address. Withholding the appraisal value prior to Measure J is a deal-breaker for some residents, as they want to assess whether the $65.5M was a good negotiation. Star T. suggested the City address some of the concerns Diana Diamond raised in the August 1 article in the Palo Alto Weekly. Star T. will send her ideas on improving the City’s website, including direct notifications of the City’s monthly calendar and the City Manager's Uplift! local newsletter. 3. Ravi S. submitted 3 slides on SB 79 implementation issues in Palo Alto. The ordinance created a 15-day window that created substantial economic opportunities for some. However, for those who could not get through that window, including his daughter’s location, it led to significant economic impacts. The state law allows for much more than the ordinance. He asked the Council to review his suggestions and take steps to mitigate economic disparities in lot values on the market. For example, 340 Palo Alto Avenue was listed at approximately $6.3M, while homes in that area typically sell for around $3.2M to $3.3M. Ravi S. urged the Council to reconsider the ordinance with livability and flexibility in mind. Adjournment: The meeting was adjourned at 9:10 p.m.