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HomeMy WebLinkAbout2026-09-14 City Council Summary MinutesCITY COUNCIL SUMMARY MINUTES Page 1 of 18 Regular Meeting September 14, 2026 The City Council of the City of Palo Alto met on this date in the Council Chambers and by virtual teleconference at 5:30 p.m. Present In Person: Burt, Lauing, Lu, Lythcott-Haims, Reckdahl, Stone, Veenker Present Remotely: None Absent: None Call to Order Mayor Veenker called the meeting to order. The city clerk called the roll. Special Orders of the Day 1. Northern California Power Agency General Manager Tony Zimmer Mayor Veenker shared that she is the City's commissioner to NCPA where Tony Zimmer is general manager and outlined the hiring process and the importance of NCPA to Palo Alto. Tony Zimmer, NCPA General Manager, provided a slide presentation on the NCPA, its mission, services, accomplishments, and goals looking forward. NCPA's mission is to provide its members with safe, reliable, affordable, and sustainable energy solutions and innovative services and effective advocacy to strengthen the communities they serve. NCPA is a joint powers agency serving 16 members throughout Northern and Central California. NCPA works to generate and distribute power services and represents members before legislative and regulatory bodies. The City Council took a photo with Tony Zimmer. NO ACTION Mayor Veenker invited Council members to ask questions of General Manager Zimmer. Councilmember Burt noted the geothermal project and asked whether NCPA is exploring or pursuing enhanced geothermal as it is emerging as a technology. SUMMARY MINUTES Page 2 of 18 City Council Meeting Summary Minutes: 09/14/2026 Tony Zimmer, NCPA General Manager, responded that part of the strategic plan is to speak to expected load growth in a way that supports environmental policies. The industry recently activated the extended day-ahead market, which extends the energy market across the entire Western United States. As part of that, they are looking at new geothermal investment opportunities including California and beyond, looking into Nevada and Utah where there are some exploratory projects that have achieved commercial operations. Councilmember Reckdahl said that a benefit of geothermal is the baseline hour compared to solar, which does not work at night. Councilmember Reckdahl asked what other power options the future holds and whether geothermal is the best option. General Manager Zimmer stated that geothermal is a well-proven technology. NCPA operates geothermal within their portfolio and works closely with other entities exploring new technologies. NCPA is looking at developing a diversified portfolio with many different tools, which can include wind, solar, battery energy storage, and long-duration energy storage. Councilmember Reckdahl asked about power trends going forward. General Manager Zimmer shared that a lot of wind resources are being developed in New Mexico and Idaho. One challenge is when solar comes off the system, other systems have to respond and pick up that load. Because it is in advance of California's sunset, there is a natural correlation and synergy between New Mexico wind production and solar falloff in California. Mayor Veenker asked about opportunities for Council members ask further questions. General Manager Zimmer shared his availability the following day and recommended Council members send other questions on through Director Kurotori. 2. Review Applications and Select Candidates to Interview for the Parks and Recreation Commission (PRC) and Public Art Commission (PAC) Vacancies; CEQA Status – Not a Project NO ACTION Christine Prior, Assistant City Clerk, provided a slide overview of open positions, timeline for fall recruitment, and the process of Council voting on candidates to interview. Assistant City Clerk Prior shared the totals from Council's electronically submitted votes and announced the candidates to be interviewed for the Parks and Recreation Commission and Public Art Commission. For Parks and Recreation, two candidates had a tie vote, so a second round of voting was required and ballots sent by email to the Council members. SUMMARY MINUTES Page 3 of 18 City Council Meeting Summary Minutes: 09/14/2026 Boards, Commissions, and Committees Appointment 3. Appointment of Candidates to the Historic Resources Board (HRB); CEQA Status – Not a Project Public Comment: 1. Henry E. commented that these nominations need people who can protect the artistic, cultural, and social heritage of Palo Alto, and who understand the importance of sites like Quonset huts. Henry E. commented that orchards should be restored, apricots grown again, and the cannery reopened. Henry E. said there should be a buffer between Mountain View and Palo Alto and stated the Council are handmaidens of the developers and destroying Palo Alto. Henry E. called for The Fish Market restaurant to reopen and expressed dislike for the corridor of 5-story buildings going up on El Camino. Nicole Bissell, Deputy City Clerk, provided a brief overview of the voting process and noted that digital ballots were sent to each member of the Council. Council votes were tabulated and Deputy City Clerk Bissell announced the results. Historic Resources Board Aleksandar Patrick Dusan Rakicevic More: Burt, Lauing, Lu, Lythcott-Haims, Reckdahl, Stone, Veenker Alisa Eagleston-Cieslewicz: Burt, Lauing, Lu, Lythcott-Haims, Reckdahl, Stone, Veenker Nandini Ramamurthi: Burt, Lauing, Lu, Lythcott-Haims, Reckdahl, Stone, Veenker Candidate Aleksandar Patrick Dusan Rakicevic More, receiving seven votes, is appointed to the full term expiring March 31, 2029 (seat 1). Candidate Alisa Eagleston-Cieslewicz, receiving seven votes, is appointed to the full term expiring March 31, 2029 (seat 2). Candidate Nandini Ramamurthi, receiving seven votes, is appointed to the full term expiring March 31, 2029 (seat 3). Agenda Changes, Additions and Deletions Ed Shikada, City Manager, shared previous changes made to the published agenda. The selection of candidates for interviews was added the previous Thursday. The selection of candidates for the Human Relations Commission (HRC), Planning and Transportation Commission (PTC), and Stormwater Management Oversight Committee (SWMOC) vacancies will occur on September 28. The other previous change was an addition to the consent calendar, Item AA1, related to increasing the construction contingency with Swinerton Builders. SUMMARY MINUTES Page 4 of 18 City Council Meeting Summary Minutes: 09/14/2026 In-Person Public Comments 1. Fred B. speaking on behalf of (9): Herb B., Doria S., Jeff L., Annette R., Annette G., Star T., Jo Ann M., Chuck K., said the handling Forest Olaf Peterson matter is a disturbing instance of how the City deals with charges of corruption. On January 8, a tow-yard owner in an email to the city manager and city attorney filed a complaint after Mr. Peterson's vehicle was towed at the direction of the Palo Alto Police Department. The report says Mr. Peterson referenced his position on the Planning & Transportation Commission and requested special treatment or a discount. Fred B. asserted this was solicitation of bribery and noted Mr. Peterson's negative review of the tow company. Fred B. pointed out that the City waited 2 months after receiving the complaint to contract with Oppenheimer Investigations Group, suggesting the City hoped Mr. Peterson would not reapply for PTC, which would end the matter. Fred B. said the report was thin and unconvincing and urged the City not to hide bad news or protect political affiliates but treat reports of corruption seriously and with immediate investigative support. 2. Edward J. Jr. spoke in support of Palo Alto Link and shared that he uses the service for transportation to medical appointments, shopping, attending activities on Stanford University campus, and going out to eat. Edward J. Jr. said Palo Alto Link is invaluable and preferable to services like Lyft, Uber, and the city buses, which are expensive. Edward J. Jr. asked the City Council to consider Link seriously. 3. David R. of 1144 Greenwood spoke about issues with GreenWaste collection at his home. For more than 40 years, garbage was picked up in the alley behind the house. They built a completely accessible new house 20 years ago and this fact was important in the design. GreenWaste's recent route rebalancing initiative has made collection from the alley completely unreliable and it was not collected on the assigned Monday on July 27, August 3, 24, 31, and September 7. David R. noted that calling GreenWaste can result in scheduling a special collection, which is sometimes made and sometimes not. All he has from GreenWaste is repeated apologies and a promise that they have escalated the matter and he is at a loss for how to get reliable collection. 4. Dave M. shared his experience with chronic illness and financial difficulty, which made Palo Alto Link the only service available to him. Dave M. recalled living in Duveneck neighborhood where there is no service other than Bus 21, which he could not walk to because of his health. Dave M. urged Council to do whatever it takes to keep the service running. 5. Alex V.-R. has lived in the community for 28 years with his wife and 3 kids, one of whom has special needs. Alex V.-R. expressed understanding of the budget pressure and said the projected savings of $176,000 from moving to Uber and Lyft vouchers is a legitimate SUMMARY MINUTES Page 5 of 18 City Council Meeting Summary Minutes: 09/14/2026 number but is not a like-for-like swap. Link was built for the riders who stand to lose the most: seniors, people with disabilities, low-income residents, and people whose lives are burdened by physical ailments and inability to get around. Uber and Lyft aren't reliably wheelchair accessible and riders without a smartphone or who aren't comfortable managing a rideshare account lose access entirely. Link has been providing 3,000 to 6,000 rides per month with 1,400 unique riders in a single period; people have built their routines around this service. Alex V.-R. shared that his son volunteers at the VA 3 time a week and uses Link to get there. Alex V.-R. urged Council not to end Link in October and suggested running Link and the new PATMA program in parallel for a year to help transition and measure whether vouchers serve the same riders well. 6. David C. shared about Bike Palo Alto on October 4, 2026, from 1 to 3 at Fair Meadow School. Bike Palo Alto is an event that shows all the fun ways to get around the City. There are 3 routes, all less than 10 miles, with treed stops on each route. David C. thanked Councilmember Burt for volunteering. More information on this free event is available at bikepaloalto.org. 7. Henry E. commented that the author of doing squat, 5-story buildings along El Camino is Steven Levy, who he interviewed for a study sponsored by Oxford-Brookes University. Henry E. shared that he uses Link, has found it to be an inadequate service, and Palo Alto can do better. Henry E. suggested extending the Marguerite service around Palo Alto and into neighboring cities and said 40 minutes between buses is too long. Henry E. suggested Stanford and Palo Alto together can do a better service to crisscross the town, making allowance for special pickups and the immobile. Henry E. concluded that Palo Alto needs a universal system of local, last-mile transportation. 8. Ian I., 40-year resident of Palo Alto, shared that he and his wife parents to a 56-year-old disabled daughter who lives at Alma Place. Ian I. said Palo Alto public transportation is poor with large, under-occupied buses with very limited service and routes. Link is a lifesaver for many parts of the community and his family has used it to get to appointments, shopping, religious services, and social activities, including volunteering at the YMCA and Friends of the Palo Alto Library. None are well served by public transport, some requiring walks of up to 2 miles. Ian I. learned that the loss of Link will be compensated for by Palo Alto TMA, which appears to be designed to subsidize transportation for out-of-city commuters who earn under $117,000 per year. Ian I. asked how that is going to replace Link for disabled and low-income Palo Alto residents and asserted that loss of Link will create hardship for many while the Flock cameras cost about $500,000 per year. 9. Carol K. pointed out inadequacies in the City's public transport and that Link is not a luxury. Carol K. urged the Council to prioritize improving the transportation system in the long run but in the short run, keep Link available to people who need it. Carol K. asked the Council to reverse the decision to close Link and ensure it continues as long as SUMMARY MINUTES Page 6 of 18 City Council Meeting Summary Minutes: 09/14/2026 it is needed, until public transit works for everyone. Carol K. Suggested Palo Alto join up with the Stanford system and extend that out into Palo Alto. 10. Dwayne G., Palo Alto resident, has been a carrier technician for the City of Palo Alto for 18 months. The job includes walking about 20 to 30 miles a day, which Link helps to alleviate. Dwayne G. said it is very disheartening when Link operates from 7 a.m. to 7 p.m. and he is the first and last patron of the service. For his 5-day commute to and from work, the monthly out-of-pocket cost for San Trans is about $176 while Link is $160. That $16 difference means an extra hour of time, starting his day at 6 a.m. instead of 7. Dwayne G. does not want to pay $500 a month to Uber and Lyft but to continue using Link. Dwayne G. requested further training for the drivers. Ed Shikada, City Manager commented that the contact information for community members who spoke about Link will be passed along to Transportation staff. In the case of GreenWaste, Public Works staff will follow up individually. The winddown of Palo Alto Link and ramp up of Palo Alto TMA is expected to occur in the month of October. Council Member Questions, Comments and Announcements In regard to Link, Councilmember Burt highlighted other available services like the VTA Paratransit System and Marguerite Shuttle System, which serves far beyond the campus and is open to public for use and available on the VTA website. It is not a complete replacement for Link but is a helpful resource. Councilmember Burt spoke to the passing of Byron Sher, who passed away at 98 years old. Byron Sher was a former Palo Alto councilmember and mayor, state assembly member, and senator and has been described as the most important environmental legislator in California history. Councilmember Burt outlined Byron's incredible achievements and asked that the meeting be adjourned in his name. Mayor Veenker agreed to adjourn the meeting in Byron's name and expressed admiration for Byron Sher's many achievements. Mayor Veenker added that before Council break, this Council voted to join in the amicus brief filed to oppose building the ICE detention facility in Gilroy. On Friday, the federal judge issued a preliminary injunction in that case and one of the primary grounds was NEPA. Mayor Veenker noted that Representative Liccardo has an initiative to solicit cities to consider adopting zoning rules that would deter the siting of an ICE facility and that is something Council is working to get on the agenda. Consent Calendar 4. Approval of Contract Number C27197641 with A3 Pipeline in the Amount Not-to-Exceed $2,466,255 for the Sewer Lateral Replacement Project (WC-99013) at various locations across the City; Authorization for the City Manager or Designee to Negotiate and SUMMARY MINUTES Page 7 of 18 City Council Meeting Summary Minutes: 09/14/2026 Execute Related Change Orders Not-to-Exceed $246,626 for a Total Not-to-Exceed Amount of $2,712,881 for a Three-Year Term. CEQA Status: Exempt under CEQA Guidelines 15302 (Replacement or Reconstruction of Existing Facilities). 5. Adopt a Resolution approving the City of Palo Alto Utilities Electric Utility Physical Security Plan Update: CEQA Status – Not a Project 6. SECOND READING: Ordinance of the Council of the City of Palo Alto Adding Chapter 10.49 (OSV Parking Permit Districts) to the Palo Alto Municipal Code and Amending PAMC Section 10.60.010 (FIRST READING: August 24, 2026; PASSED: 7-0) AA1. Approval of Increase of Construction Contingency for Contract No. C211781123B with Swinerton Builders in the Amount Not-to-Exceed $7,374,367 and Amendment to the Fiscal Year 2027 Budget Appropriation for the Capital Improvement Fund for the New Public Safety Building Capital Improvement Program Project (PE-15001), to Support a Settlement Agreement With Swinerton Builders; CEQA Status – Environmental Impact Report for the New Public Safety Building and New California Avenue Area Parking Garage (Resolution No. 9772) Public Comments: 1. Henry E. said the City's priorities are misplaced and a new agenda is needed for Palo Alto. To a quesiton from Mayor Veenker, City Attorney Christopher Jensen clarified that public comments should focus on specific consent calendar items. Henry E. stated he is addressing the notion that the City has to rework its priorities, which has to do with every item on the consent calendar. Mayor Veenker noted the agenda is available in the back and requested that Henry E. in future read the agenda and speak to specific items. 2. Aram J. stated Council is pretty fair with public comments but needs to be consistent about cutting off speakers regardless of their ethnicity. Aram J. spoke to Item 6, ordinance for RVs, and said the city does not need more ordinances but more safe parking spots. Aram J. noted there are 37 spaces between Coyote Road and the Baylands but 133 vehicles. Aram J. asked if the other 96 will go to less resourced cities or if Palo Alto will finally decide to work regionally. At the debate on housing, Aram J. was taken aback at Bryna Chang's response that poor and bad people living in RVs should just move along. Aram J. said that was racist and elitist and disqualifies her from office. Aram J. asked why the no parking signs in the Ventura Neighborhood are hideously large, 3 or 4 times the size of no parking signs in the rest of the city, and a stain on those neighborhoods. MOTION: Vice Mayor Stone moved, seconded by Councilmember Reckdahl to approve Agenda Item Numbers 4-6, AA1. MOTION PASSED: 7-0 SUMMARY MINUTES Page 8 of 18 City Council Meeting Summary Minutes: 09/14/2026 City Manager Comments Ed Shikada, City Manager, highlighted upcoming volunteer opportunities and provided an overview of wildfire prevention/vegetation management planned. Vegetation removal starts Monday, September 21, and the work will take place in phases through summer 2027. September is National Preparedness Month and there are training opportunities related to that. City Manager Shikada provided an overview of notable tentative council items. Due to holidays, there will be no Council meeting on September 21 or October 12. Action Items 7. PUBLIC HEARING / QUASI-JUDICIAL. 375 Hamilton Avenue [26PLN-00050]: Request for Major Architectural Review Approval for the Construction of a New Six-Story Parking Garage with a Total of 265 Parking Spaces on the Existing Surface-Level Parking Lot D. CEQA Status: Prior Environmental Impact Report Certified (Council Resolution No. 9818, February 11, 2019). An Addendum to the Previously Certified Environmental Impact Report (SCH# 2017052040) has Been Prepared in Accordance with CEQA Guidelines Section 15164. Zoning District: PF (Public Facilities). Kristine Dobkevicius, Associate Planner provided a slide presentation on the proposed parking garage, including location, background, plans and elevations, plaza design, key considerations, and staff recommendation to Council. The project is a Capital Improvement Project intended to increase parking capacity in the downtown area and is currently occupied by Lot D, a surface lot with 86 parking spaces. The proposed project is 6 stories tall, has 265 parking spaces, and includes a plaza for a future affordable housing site with 15 units. Ken Hayes, Founder & Principal at Hayes Group Architects, provided the applicant presentation on behalf of the design team. The prime architect from Watry Designs was present to help answer questions from Council. Ken Hayes overviewed neighboring historic resources and businesses and the project's public open space, paseo and bike parking, site and design constraints, elevations, materials, views along the pedestrian paseo, entrances, feature stair, and landscape plan. Public Comments: 1. Henry E. asserted that block by block, the Council is destroying Palo Alto. Henry E. charged the Council to state clearly what agenda items are about and not hide them behind arcane words, which is the tactic of policy wonks who do not want people to know what is going on. Henry E. spoke against the big, blocky design of the parking garage and said it has no place in Palo Alto or any contemporary city on the globe. Henry E. emphasized that parking should be reduced overall by having a better transportation system to reduce car usage, such as moving the Stanford system around the city. Henry E. pointed out that garages should be built underground so spaces can SUMMARY MINUTES Page 9 of 18 City Council Meeting Summary Minutes: 09/14/2026 be left as open gardens and forestlands. Henry E. compared the City's actions to Robert Moses destroying New York City. 2. Herb B. urged the Council not to approve the project because the California Environmental Quality Act prohibits segmenting of projects and treating each segment like a separate project subject to environmental law. Herb B. noted that because this parking structure includes replacement for parking lost at 450 Lytton, the projects should be analyzed together. Herb B. highlighted the removal of a free public restroom on the site. Herb B. noted a potential conflict of interest due to Mr. Hayes being hired by a contractor that works for the City, so he in a sense works for the City and is being reviewed by the PTC, Council, ARB, and staff who review his private projects. 3. Becky W. explained that she use to live at the Opportunity Center at 33 Encina where engineering reports and city ordinances all required monitoring. When mold and other events occurred, it was discovered the Center went 10 years without permits, which means no monitoring occurred. Regarding this project and proposed supportive housing development, Becky W. noted the original EIR evaluated substantial excavation for a basement while the new project eliminates the basement. Becky W. asked what geotechnical and environmental analysis was performed for the new foundation design, what soil disturbance monitoring will occur, who will do monitoring, and whether the City conduct another EIR before supportive housing is built. 4. Mike A. expressed gratitude for the presentations about the project. Mike A. said additional parking downtown is helpful but expressed shock at how ugly the blocky structure is and encouraged rethinking the design. Mike A.'s family lives on Hamilton Avenue on the other side of Middlefield and he expressed concern about high traffic on Middlefield where there are a lot of aggressive drivers getting to and from 101. Should the project proceed, Mike A. encouraged speed bumps or something to slow traffic after Middlefield on Hamilton. Ken Hayes responded to a few of the public comments. Regarding height, the AT&T building is 68 feet tall. In terms of design, the team tried to work with local context in terms of materials and color. Ken Hayes emphasized how the team used various elements to create depth and soften the façade's appearance. Mayor Veenker asked the applicant or staff to comment on geotechnical analyses, who would perform it, and who would monitor it. Gordon Knowles, Structure Engineer at Watry Design, Inc., said the previous project had a basement, which was removed for geotechnical reasons. A geotechnical report was done on the site and various design choices were done in response to the geotechnical report and the geotech has full monitoring of that through the design process. When they get the building permit, there will be a letter from the geotech saying the design conforms with their requirements and then the geotech is observed throughout the whole construction process. SUMMARY MINUTES Page 10 of 18 City Council Meeting Summary Minutes: 09/14/2026 Mayor Veenker asked the city attorney to speak to Herb B.'s comments on a potential conflict of interest. Chris Jensen, City Attorney, was not aware of any basis for a conflict of interest in relation to the architect's retention in this matter. Vice Mayor Stone opined that the design is nice and highlighted how Palo Alto takes pride in its public parking garages and spaces and seeks to ensure they are beautiful and fit the surrounding neighborhood context. Vice Mayor Stone applauded the architect's efforts and liked the idea of creating the public plaza while waiting for the affordable housing project rather than having an abandoned dirt plot. Vice Mayor Stone noted the 265 parking spots and 44 future housing units and asked if part of the garage will become designated to future residents. Associate Planner Dobkevicius clarified that the proposed number of housing units is 15 and 25 parking spaces are accounted for those residential units. Jonathan Lait, Planning and Development Services Director, explained that the 44 units is a reference to the Housing Element capacity, not what is envisioned for the project. Vice Mayor Stone asked about EV parking. Associate Planner Dobkevicius replied that the planned EV parking is all on the ground floor, as shown on Page 2.1 of the site plan. Gordon Knowles said the EV parking spots follow City standards, so 45 percent (120 stalls) are EV capable and 50 percent of those (60 stalls) will be installed on Day 1. Vice Mayor Stone noted that in parking garages where there are EV ADA spots, often those are vacant. Vice Mayor Stone asked how flexible that is and whether a study was done to make sure the number of spots provided is not too few or too many. Director Lait explained that typically, the number of ADA spaces are set forth by state law and most projects meet that standard. Those ADA spaces are not flexible and cannot be shared with non-ADA, which Gordon Knowles confirmed. Vice Mayor Stone pointed out that parking garages are sometimes target for various levels of crime and asked about design best practices to make the garage safer and mitigate those threats and whether they are implemented in this design. Gordon Knowles highlighted careful design choices around lighting levels, view lines, security cameras, and emergency phones. The transparency of the garage helps with ventilation and provides visibility. The positioning of the elevator and stair core were very central to make travel distance shorter and reduce dead ends. They sought to increase line of sight into remaining dead ends. SUMMARY MINUTES Page 11 of 18 City Council Meeting Summary Minutes: 09/14/2026 Relating to the project's budget and finance, Councilmember Lu asked about timing for construction and parking funds. Holly Boyd, Public Works Assistant Director, explained that the Fiscal Year '27 CIP budget has $34 million. Approximately $15 million of that is parking in-lieu fees and $17 million is anticipated certificates of participation issuance. Assistant Director Boyd was unsure whether the certificates of participation issuance is backed by future funds going into the University Ave. parking fund or generally from capital funds. Ed Shikada, City Manager, believed it was through the general capital funds. Councilmember Lu asked about the construction timeline. Assistant Director Boyd said the start of construction is planned for fall of 2027 and is estimated to take 18 to 24 months. Councilmember Lu asked about any value engineering considered for the project. Assistant Director Boyd shared that the 100 percent design development plans and cost estimate were received last week. Staff will look at that with the project team to evaluate any potential to remove anything from the project. That will continue on each level of the design. Councilmember Lu asked for an update on the cost, whether $41 million or a different number. Assistant Director Boyd responded that $41 million was the estimate received in May. They have total cost estimate for construction but not for actual project cost. Staff can share that when it comes back for the award of construction manager contract and Watry amendment for the joint trench design, anticipated for next month. Councilmember Reckdahl said parking garages are usually boring but this one has a nice story because it enables some affordable housing. Councilmember Reckdahl asked if the street width reducing from 50 feet to 43.5 feet was necessary. Gordon Knowles explained that the project extends the geometry of the sidewalk in front of the AT&T building and progresses that through to the Waverley Junction. A transit specialist is doing turn studies around that corner of Waverley and they were completed in the previous stage of the project. There are going to be developments of the roadway on Hamilton to incorporate the bicycle lanes and remove the mailbox dropoff area that creates a pinch point at that location. Regarding whether the width reduction was necessary, Gordon Knowles said the site itself determined that reduction. Councilmember Reckdahl pointed out that the bike plan assumes a Class IV bike lane and asked how this extra 6.5 feet is going to impact that. Councilmember Reckdahl asked if a Class IV bike lane and bus stop will fit in that same street. SUMMARY MINUTES Page 12 of 18 City Council Meeting Summary Minutes: 09/14/2026 City Manager Shikada stated Chief Transportation Official Ria Hutabarat Lo was joining via Zoom to help answer this and any other Transportation-related questions. Councilmember Burt expressed similar questions to Reckdahl's and asked about renderings or sketches that give a visual of how this all fits with the bus stop and Class IV bike lane. Associate Planner Dobkevicius confirmed nothing like that has been sketched of the current plans. Councilmember Lu said the staff motion, updating the IR, and approving the ARB findings makes sense but expressed dislike for spending $41 million or more for 265 parking spaces. Councilmember Lu said there is a surplus of parking spaces downtown, which may change in coming years and it is important to keep the project moving to show the City is actively planning and using University Ave. parking funds. Councilmember Lu wanted to understanding the financials more clearly. Councilmember Lu wondered if there is a way the certificate of participation can be paid back by the University Ave. parking fund rather than the capital fund and if there a way to stage construction so that general capital fund costs are lower and shift it more into parking funds. Councilmember Lu was happy about the plaza because of the need for public space and flexibility. Councilmember Lu suggested not rushing to put housing there if there is a prospect that in several years, when building codes change, a better housing plan could be put there. Regarding Applicant Packet Slide 16, Councilmember Reckdahl asked for more information about the interaction between the parking garage and its neighbors. Ken Hayes explained that if a future restaurant goes where Tai Pan Restaurant was, they will be able to use the new trash facility shown in the upper righthand corner. Adjacent to that is a grease bin room specifically for a restaurant to separate grease from other waste and recycling. The fence behind that building would continue behind the adjacent building, which is the old Prolific Oven. They have their own refuse facilities behind their building and the fence is intended to screen it. The waste of other neighboring buildings is not addressed by this project. Councilmember Reckdahl noted the alley needs to fit trash and traffic like garbage trucks and asked if the use of the alley will be affected by this project. Ken Hayes said this project does not affect the use of the alley and suggested that because the project removes the current loop, there should be less traffic there. Councilmember Reckdahl asked about the 1-foot setback to the AT&T building. Ken Hayes explained that the 1-foot setback is for building drift for earthquake sway. Councilmember Reckdahl asked whether the windows at the back of the AT&T are used for egress or purely ornamental. Ken Hayes believed the rear windows on the AT&T building were not egress, since it is a commercial building. SUMMARY MINUTES Page 13 of 18 City Council Meeting Summary Minutes: 09/14/2026 Councilmember Reckdahl asked about the bike locker at the bottom right. Ken Hayes said the bike locker room next to the paseo and public open space is a locked room open to the public and screened so you can see into it. Councilmember Reckdahl asked if this project prepares utilities or foundation for the future housing project. Gordon Knowles said the foundation for the garage is asymmetrical and separate from any future housing foundation. There is an extra pad being put in for a transformer to the north of the garage by CVS. There will be a conduit for any future electricity connections, so any future building would not require excavation for electrical services. Ria Hutabarat Lo, Chief Transportation Official, joined by Zoom to comment on the street width and configuration. The Office of Transportation reviewed the plans and there are a number of different options they would consider, including bicycle facilities on both sides of the street. They want to implement the changes not parcel by parcel but time it to align with the rest of the project along that roadway. Ria Lo confirmed they are looking at adding a Class IV bike lane to both sides of the street and the 2 lanes of traffic, 2 bike lanes, and bus stop will fit once the post office box is removed. Ria Lo confirmed there are no applicant drawings of possible configurations but staff put together a few sketches. Mayor Veenker looked forward to potential living units adjacent to the parking garage and asked how vehicle exhaust from the garage is managed so it is not going into adjacent housing. Ken Hayes explained that having parking in a mixed-use building with residential is very common. The housing will be a distinct building and would not experience anything different from other nearby buildings. The housing project would be designed so windows can be closed and ventilation would be provided artificially and the wall will be solid top to bottom. Ken Hayes thought the ground floor of the housing building should be something other than housing, perhaps support services to the housing. Mayor Veenker wondered if the EV spaces should be adjacent to the housing to reduce potential for exhaust issues. Ken Hayes said there will be cross-ventilation through the garage because it is open on both sides. The housing units could have windows facing the paseo, Waverley, or Hamilton, but windows facing the garage are not allowed. Councilmember Burt expressed concern about whether there is room to fit the Class IV bike lane on both sides of the street. Ria Lo reiterated that there is room to fit the Class IV bike lane on both sides and noted that parking further up the street would need to be removed. Transportation has not done detailed designs but their sketch indicates there is enough space. SUMMARY MINUTES Page 14 of 18 City Council Meeting Summary Minutes: 09/14/2026 MOTION: Vice Mayor Stone moved, seconded by Councilmember Lythcott-Haims to: 1. Consider the Addendum to the previously certified Environmental Impact Report (EIR) (Council Resolution No. 9818, February 11, 2019); and 2. Approve the Major Architectural Review (AR) application based on findings and subject to conditions of approval in the Record of Land Use Action (RLUA) in Attachment B. MOTION PASSED: 7-0 8. Refinancing of the 2009A Water Revenue Bonds, Series A; Adoption of a Resolution Authorizing the Issuance and Sale of Tax-Exempt Water Revenue Refunding Bonds in a Principal Amount Not-to-Exceed $20,000,000, Approval of the Official Notice of Sale, Indenture of Trust, Official Statement, Irrevocable Refunding Instructions, and Related Documents; CEQA Status - Not a Project Christine Paras, Assistant Administrative Services Director, introduced the slide presentation on refinancing the 2009A Water Revenue Bonds. This refinancing supports long-term financial strategy for the Utilities Department while removing federal interest rate sequestration risk. Chris Lynch, Jones Hall Law Firm, presented an overview of federal securities laws. The City's debt policy requires that the Council receive training on federal securities laws as they apply to the issuance of bonds. Assistant Director Paras described the 3 benefits of the recommended refinancing: 1) remove the 2009 Bonds' Available Reserve requirement, 2) provide flexibility for the Electric Fund to issue future revenue bonds, and 3) eliminate the City's exposure to federal sequestration. Assistant Director Paras provided background on the water revenue bonds; an overview of the debt structure, policy, and administration; the mechanics of the refinancing process; and recommended Council action. Councilmember Reckdahl asked about the difference between calling and refunding bonds, whether the City pays par or has call premium, whether the bonds are above par right now, and if they are buying back an asset at a lower price than the market. Frederick Dilley, PFM Financial Advisors, said refunding and calling are synonymous. The 2009A bonds have a call option. Refunding is issuing new bonds to exercise the call option and refinance the outstanding ones. Frederick Dilley said City pays par. They were premium bonds when issued and the refunding bonds being issued are premium bonds. Frederick Dilley did not know what it was actively trading at but confirmed they are buying it back at principal. Regarding Slide 16, Councilmember Reckdahl asked for clarification on what true interest cost means. SUMMARY MINUTES Page 15 of 18 City Council Meeting Summary Minutes: 09/14/2026 Frederick Dilley explained that true interest cost is the interest rate you are paying while taking into account your cost of issuance rolled into that. Councilmember Reckdahl asked for clarification on the 1.46 percent savings shown. Darren Hodge, Consultant, PFM Financial Advisors, explained that the 1.46 represents the net present value savings as a percentage of the growth funded par. It is a measurement used to calculate how much of the refunded par they are generating as savings. They are generating a net present value savings of about $255,000, which is 1.46 percent of the $17.54 million refunded par. Lauren Lai, CFO, said the policy calls for a 3 percent savings, which is typical. This is still favorable refunding, so there is still a savings here, though less than it was a month ago. Councilmember Reckdahl asked how much of this is driven by the economics of saving the interest and how much is it to get rid of the overheads shown on Slide 12. CFO Lai explained that the largest constraint is the reserve requirement, which is 5x the debt service outstanding. That is on water, gas, and electric. When the City issues future debt for grid mod, which could be almost $300 million, that goes from a $13 million obligation to about a $75 million obligation just to meet that covenant for this outstanding reserve. This outstanding reserve is $17 million, so the City wants to get out from under that legal obligation to the extent these terms still exist. The City is trying to align the timing of this refunding with the anticipated debt issuance for grid mod. In the next couple months, that will come before Council or at least Finance Committee's consideration and an issuance in early 2027. Councilmember Reckdahl asked if seeing interest is gravy on top of this, which CFO Lai confirmed. Councilmember Reckdahl asked for clarification around the policies for this. CFO Lai responded that policy states there is a 3 percent threshold but that may be waived by the CFO. The CFO would not do any of that without having first taken the items through Finance Committee and then to Council. There would be full transparency but there is flexibility. Councilmember Reckdahl returned to Slide 16 and asked about first and final maturity dates. CFO Lai clarified that those dates are for the refunding bonds the City would be issuing, so there are a variety of maturity lengths while maintaining the final maturity date of 2035. Public Comment: 1. Henry E. commented that this is one more step to destroying the fabric of an iconic town. He said Council has voted for housing on Baylands that will never be built and there is a lawsuit against the City to stop that from happening. Mayor Veenker pointed out that the parking garage matter ended and asked Henry E. for comments focused on the current item. Henry E. said his comments apply to all items and asked under what SUMMARY MINUTES Page 16 of 18 City Council Meeting Summary Minutes: 09/14/2026 circumstances Councilmember Lauing received a golf membership from Stanford University. Mayor Veenker asked for Henry E. to focus his comments to the item currently on the agenda. Henry E. said the meeting should be more general and residents are being ignored. Henry E. stated the Council is not protecting Palo Alto's water supply and described Elon Musk polluting the City's water. Councilmember Lauing expressed appreciation to staff for their proactive approach. Mayor Veenker said the presentation was very thorough and the idea very sensible. MOTION: Mayor Veenker moved, seconded by Councilmember Lu to: 1. Authorize staff to refinance the outstanding City of Palo Alto Water Revenue Bonds, 2009 Series A through the issuance of Water Revenue Refunding Bonds in a principal amount not to exceed $20,000,000; and 2. Approve the Official Notice of Sale, Indenture of Trust, Official Statement, Irrevocable Refunding Instructions, and authorize official actions and related documents thereto. MOTION PASSED: 7-0 Closed Session 9. CONFERENCE WITH CITY ATTORNEY-EXISTING LITIGATION Subject: Diego Velasquez v. City of Palo Alto et al. Santa Clara County Superior Court, Case No. 24-CV-450636 Authority: Government Code Section 54956.9(d)(1) One Case, as Defendant 10. CONFERENCE WITH CITY ATTORNEY – EXISTING LITIGATION Subject: City of Palo Alto v. Gary Wetzel, et al. Santa Clara County Superior Court Case No. 26CV484552 One Case, as Defendant Authority: Government Code Section 54956.9(d)(1) 11. CONFERENCE WITH REAL PROPERTY NEGOTIATORS Authority: Government Code Section 54956.8 Property: 4000 Middlefield Road, Palo Alto (Informally known as the Cubberley Site) Negotiating Party: Palo Alto Unified School District City Negotiators: Ed Shikada, Kristen O'Kane, Sunny Tong Subject of Negotiations: Purchase, Exchange, and/or Lease Price and Terms of Payment SUMMARY MINUTES Page 17 of 18 City Council Meeting Summary Minutes: 09/14/2026 Public Comment: 1. Henry E. expressed interest in comments on litigation against the City on the Baylands housing and the Tesla litigation. Mayor Veenker invited Henry E. to speak to litigations on the agenda. Christopher Jensen, City Attorney, emphasized the rules that are part of this public forum's structure for First Amendment purposes and noted those rules need enforcing to allow everyone an equal opportunity to participate and allow the Council to get its business done. Mayor Veenker gave Henry E. one more opportunity to speak to the litigations listed on the agenda. Henry E. called the City to open files on all litigations on and off the agenda. City Attorney Jensen and Mayor Veenker agreed this is beyond the scope and moved on. MOTION: Councilmember Lauing moved, seconded by Councilmember Lu to go into Closed Session. MOTION PASSED: 7-0 Council went into Closed Session at 8:43 p.m. Council returned from Closed Session at 10:10 p.m. Mayor Veenker announced the following reportable actions from Closed Session: Regarding Swinerton v. City of Palo Alto (JAMS Reference # 5100003409), a matter previously heard in Closed Session on August 17, 2026, the City entered into a settlement agreement to resolve claims by Swinerton and its subcontractors arising from construction of the recently opened Public Safety Building. The settlement provides for the City to pay $8 million to resolve the claims. The City Council approved the settlement by a 7-0 vote on August 17, 2026, and the settlement agreement was finalized on September 10, 2026. Regarding Diego Velasquez v. City of Palo Alto et al., Santa Clara County Superior Court, Case No. 24-CV-450636, the City Council authorized the City Attorney’s Office to file a cross- complaint in the action against Cleary Brothers Landscape, Inc., Bastion Construction Services, and any successors in interest to those entities. The City Council approved the action by a 7-0 vote. Virtual Public Comment 1. Randy M.-R. shared that Palo Alto has taken her for many rides to worship, the clinic, pharmacies, groceries, and near enough to Stanford Hospital but Palo Alto Link is not perfect and is a work in progress. Randy M.-R. said that it needs patience, nurturance, and support. Randy M.-R. was glad the Council is addressing energy and feasibility and expressed hope that funds could be coaxed to develop and improve the Link program. SUMMARY MINUTES Page 18 of 18 City Council Meeting Summary Minutes: 09/14/2026 Randy M.-R. expressed kudos to Link drivers for navigating safely in various conditions. Randy M.-R. said safety is a real priority and Link makes aging in place feasible. Randy M.-R. asked the Council if there is any way to allocate funds to expand Link. 2. Aram J. said he has been accused by councilmembers of being antisemitic and wanted to set the record straight and say he is anti-Zionist, which means he is anti-Ed Lauing. Aram J. spoke about Mamdani's pro-Palestinian message that outraged many Zionists in New York City. Aram J. called for Ed Lauing to announce his Zionist position so residents can vote on all of the facts. Aram J. said doing great things for the City doesn't override supporting genocide. Adjournment: The meeting was adjourned at 10:18 p.m. in memory of Byron Sher, Former Palo Alto Mayor.