CITY COUNCIL
Regular Meeting
Monday, October 20, 2025
Council Chambers & Hybrid
5:30 PM
Amended Agenda
Amended agenda items appear below in RED (Time Estimates Updated)
Palo Alto City Council meetings will be held as “hybrid” meetings with the option to attend by teleconference or in person. Information on how the public may observe and participate in the meeting is located at the end of the agenda.
The meeting will be broadcast on Cable TV Channel
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Meeting ID: 362 027 238 Phone:1(669)900-6833
PUBLIC COMMENTS
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TIME ESTIMATES
Listed
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1 October 20, 2025
Materials submitted after distribution of the agenda packet are available for public inspection at www.paloalto.gov/agendas
.
CALL TO ORDER
SPECIAL ORDERS OF THE DAY: BOARDS, COMMISSIONS, AND COMMITTEES INTERVIEWS (5:35 - 5:45 PM)
AA1.
Interview Candidate for Vacancies on the Parks and Recreation Commission; CEQA Status - Not a Project
New Item Added
AGENDA CHANGES, ADDITIONS AND DELETIONS
PUBLIC COMMENT (5:45 - 6:15 PM)
Members of the public may speak in-person ONLY to any item NOT on the agenda. 1-3 minutes depending on number of speakers. Public Comment is limited to 30 minutes. Additional public comments, if any, will be heard at the end of the agenda.
COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS (6:15 - 6:30 PM) Members of the public may not speak to the item(s).
STUDY SESSION (6:30 - 8:00 PM)
1. Cubberley Project: Receive an Update on Development of a Master Concept Plan and Phasing; Review and Provide Feedback on Themes for the Second Poll; Receive an Update on Strategic Activation Plan and Review an Update on the Workplan for the Cubberley Master Plan in Consideration of a November 2026 Ballot Measure; CEQA Status – the Master Plan will undergo CEQA review.
CONSENT CALENDAR (8:00 - 8:05 PM)
Items will be voted in one motion unless removed from the calendar by three Council Members.
2. Approval of Minutes from September 29 and October 6, 2025 Meetings
3. PUBLIC HEARING / QUASI-JUDICIAL. 70 Encina Avenue [25PLN-00034]: Request for Approval of a Tentative Map to Merge Two Lots and Allow for a Condominium Subdivision to Create 10 Units on the Resulting 12,119-Square-Foot Parcel. The Subdivision Map Would Facilitate Construction of Ten New Residential Units in One Building, which was previously approved on April 14, 2025 (24PLN-00095). CEQA Status:
Exempt from the Provisions of the California Environmental Quality Act (CEQA) in Accordance with CEQA Guidelines Section 15183 (Comprehensive Plan Consistency).
Zoning District: PC-5654.
2 October 20, 2025
Materials submitted after distribution of the agenda packet are available for public inspection at www.paloalto.gov/agendas
.
4. PUBLIC HEARING: Finance Committee Recommends Adoption of Resolution Amending Five Rate Schedules Setting Forth Utility Connection Fees and Other Charges: Utilities Rate Schedule E-15 (Electric Service Connections), W-5 (Water Service Connections), G-5 (Gas Service Connections), S-5 (Sewer Service Connections) and C-1 (Utility Miscellaneous Charges); CEQA Status: Not a Project Under CEQA Guidelines Sections 15378(b)(4) and (5) and Exempt Under Section 15273(a)
5. Approval of an Increase of Construction Contingency for Contract No. C24189237 with SAK Construction, LLC in the amount of $1,000,000, funded by the Wastewater Treatment Enterprise Fund for the Joint Intercepting Sewer Rehabilitation (Phase 1) Project (WQ-24000), and Approval of Addendum 13 to the Basic Agreement Between Mountain View, Los Altos, and Palo Alto for the Acquisition, Construction, and Maintenance of a Joint Sewer System to Increase the Maximum Authorized Project Funding of $8.9 million to $12.6 million; CEQA Status – Exempt under CEQA Guidelines Section 15301 (Repairs to Existing Facilities)
6. Approval of Contract Amendment No. 1 to Contract No. C23187298C with Hinderliter, de Llamas, and Associates (HdL) for Business Tax and Business Registry Certificate Fee Administration Services in the Amount of $750,000 for Additional Administrative and Operational Services and $2,120,000 Contingent Fees for a Revised Total Not-To-Exceed Amount of $2,870,000, to Extend the Term by Two Years to June 30, 2028, and Approve a Budget Amendment in the General Fund (Requires 2/3 vote); CEQA Status – Not a Project
7. Approve Contract Amendment No. 1 to Contract No. C25193598 with Fairbank, Maslin, Maullin, Metz, and Associates (FM3) in the Amount of $26,775 for one Additional Poll (Four Polls, Total) for the Potential November 2026 Ballot Measure for a Total Not to Exceed Amount of $153,000 and Approve Budget Amendments in the General Fund and the Cubberley Property Infrastructure Fund; CEQA Status: Not a Project
8. Approval of Five Items to Support the Fire Station 4 Replacement Project PE-18004: 1) Construction Contract Number No. C26194287 with Beals Martin and Associates, Inc. in an Amount Not to Exceed $11,530,676 and Authorization for the City Manager or Their Designee to Negotiate and Execute Change Orders to the Contract up to a Not-to-Exceed Amount $1,153,067; 2) Contract Amendment No. 1 to Contract No. S24188865 with Schaaf & Wheeler Consulting Civil Engineers to Extend the Contract Term Through April 30, 2027; 3) Contract Amendment No. 1 to Contract No. S23185811 with Earth Systems Pacific, Inc. to Extend the Contract Term Through February 28, 2027; 4) Amendment No. 1 to Contract C21179569 with Brown Reynolds Watford Architects, Inc. to Add $41,366, Increasing the Not-to-Exceed Amount to $838,514 and Extend the Contract Term Through June 30, 2027 for Construction Support Services; and (5) Amendment No. 1 to Contract C24189293A with Cumming Management Group, Inc. to Extend the Contract
3 October 20, 2025
Materials submitted after distribution of the agenda packet are available for public inspection at www.paloalto.gov/agendas
.
Term Through August 31, 2027; CEQA Status - Exempt under CEQA Guidelines Sections 15302 and 15303
9. Approval of Construction Contract C26195058 with JJR Construction, Inc. in an Amount Not to-Exceed $1,281,689 and Authorization for the City Manager or Their Designee to Negotiate and Execute Change Orders for Related Additional but Unforeseen Work that May Develop During the Project Up to a Not-to-Exceed Amount of $128,169 for the Fiscal Year 2026 Sidewalk, Curb & Gutter Project, Capital Improvement Program Projects PO- 89003 and PO-12001; CEQA Status – Exempt under Section 15301(c)
10. Approval of a 10 Year License Agreement with La Comida de California for Operation of a Senior Nutrition Program and Meal Service in a Portion of the City-owned Building Located at 445 Bryant Street; CEQA Status – Exempt under CEQA Guidelines sections 15301 and 15303
11. Adoption of a Resolution to Extend the City’s Participation in the Northern California Power Agency’s Support Services Program for Another 10 Years to 2037, Designating Authorized Signatories, and Updating Contracting Authority to Align with the Municipal Code; CEQA Status – Not a Project
12. Approval of the Dispatch Center Assessment Report as Recommended by the Policy & Services Committee.
13. Approval of Professional Services Contract Number C26194598 with Thomas Sarsfield in the Amount Not to Exceed $660,000 for Providing Tennis Instruction Services for Seasonal Classes and Summer Camp Sessions for a Period of Five Years; CEQA Status - Not a Project.
14. Approval of Contract Number C25194217 with Veteran Pipeline Construction in the Amount of $8,962,204 for the Gas Main Replacement Project 25 (GS-15000) in the Duveneck/St. Francis, Leland Manor, Midtown, and Palo Verde neighborhoods; Authorization for the City Manager to Negotiate and Execute Related Change Orders Not-to-Exceed of $896,221 for a Total Not-to-Exceed Amount of $9,858,425; NEPA status - B5.4 categorical exclusion; CEQA status — Exempt under CEQA Guidelines 15302 (Replacement or Reconstruction of Existing Facilities).
15. SECOND READING: Adoption of Eight Ordinances Amending Various Sections of the Palo Alto Municipal Code (PAMC) Related to the 2025 California Building Standards Code (CA Code of Regulations Title 24) Update, including: (1) Chapter 16.04 Incorporating the 2025 CA Building Code With Local Amendments; (2) Chapter 16.05 Incorporating the
4 October 20, 2025
Materials submitted after distribution of the agenda packet are available for public inspection at www.paloalto.gov/agendas
.
2025 CA Mechanical Code With Local Amendments; (3) Chapter 16.06 Incorporating the 2025 CA Residential Code With Local Amendments; (4) Chapter 16.08 Incorporating the 2025 CA Plumbing Code With Local Amendments; (5) Chapter 16.14 Incorporating the 2025 CA Green Building Standards Code with Local Amendments; (6) Chapter 16.16 Incorporating the 2022 CA Electrical Code With Local Amendments; (7) Chapter 16.18 Incorporating the 2024 International Swimming Pool and Spa Code With Local Amendments; (8) Chapter 16.17 Incorporating the 2025 CA Energy Code With Local Amendments; CEQA Status: Exempt Under CEQA Guidelines Sections 15061(b)(3) and 15308. (FIRST READING: October 6, 2025, PASSED: 6-0-1, Lauing absent) AA2.
Approval of Appointment and Employment Agreement with Stephen Lindsey as Fire Chief; CEQA Status – Not a Project
New Item Added
CITY MANAGER COMMENTS (8:05 - 8:20 PM)
BREAK (15 MINUTES)
ACTION ITEMS (8:35 - 10:35 PM)
Include: Report of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Report of Officials, Unfinished Business and Council Matters.
16. Policy and Services Committee Recommendation to the City Council to Approve a Phased Approach to Address Oversized Vehicle (Including Recreational Vehicle) Impacts, Particularly Relating to Individuals Living in Vehicles and Approve Budget Amendments in various funds; CEQA status – categorically exempt.
ADJOURNMENT
5 October 20, 2025
Materials submitted after distribution of the agenda packet are available for public inspection at www.paloalto.gov/agendas
.
INFORMATION REPORTS
Information reports are provided for informational purposes only to the Council and the public but are not listed for action or discussion during this meeting’s agenda.
A.
Informational Report on the City of Palo Alto One Water Plan and Associated Letter from the Utilities Advisory Commission for Future Water Supply and Conservation Planning Purposes; CEQA Status – Not a Project
B.
Semiannual Update on 2000 Geng Road Recreational Vehicle Safe Parking Expansion C.
Monthly Investment Report - September 2025 (Unaudited)
OTHER INFORMATION
Standing Committee Meetings this week
Finance Committee October 21, 2025
Public Comment Letters
Schedule of Meetings
AMENDED AGENDA ITEMS
AA1.
Interview Candidate for Vacancies on the Parks and Recreation Commission; CEQA Status - Not a Project
New Item Added
AA2.
Approval of Appointment and Employment Agreement with Stephen Lindsey as Fire Chief; CEQA Status – Not a Project
New Item Added
6 October 20, 2025
Materials submitted after distribution of the agenda packet are available for public inspection at www.paloalto.gov/agendas
.
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7 October 20, 2025
Materials submitted after distribution of the agenda packet are available for public inspection at www.paloalto.gov/agendas
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8 October 20, 2025
Materials submitted after distribution of the agenda packet are available for public inspection at www.paloalto.gov/agendas
.
City Council
Staff Report
From: City Manager
Report Type: STUDY SESSION
Lead Department: Community Services
Meeting Date: October 20, 2025
Report #:2503-4353
TITLE
Cubberley Project: Receive an Update on Development of a Master Concept Plan and Phasing; Review and Provide Feedback on Themes for the Second Poll; Receive an Update on Strategic Activation Plan and Review an Update on the Workplan for the Cubberley Master Plan in Consideration of a November 2026 Ballot Measure; CEQA Status – the Master Plan will undergo CEQA review.
RECOMMENDATION
Staff recommends the City Council receive an update on development of the Cubberley master concept and phasing plan; review and provide feedback on themes for the second poll; receive an update on the Strategic Activation Plan; and receive work plan progress to date.
EXECUTIVE SUMMARY
The City of Palo Alto (City) is advancing a master planning effort for a 15-acre portion of the Cubberley site, including seven acres proposed to be purchased from the Palo Alto Unified School District (PAUSD). The purchase and improvements are pending voter approval of a November 2026 ballot measure. The master plan will be presented to the City Council in December with a recommendation to adopt the plan and associated California Environmental Quality Act (CEQA) document in March 2026 in anticipation of Council consideration of placement of a November 2026 ballot measure to fund the purchase of the seven acres, and the project or a portion of the project. This staff report provides updates on:
Development of a draft concept plan, including program placement and phasing plan following the second and third Cubberley community meetings. Development of second community poll, including themes and topics expected to be tested.
Phase I of the Strategic Activation Plan and next steps expected in Phase II. Overall Workplan schedule.
Item 1
Item 1 Staff Report
Item 1: Staff Report
Pg.
1 Packet Pg. 9 of 607
The second and third community meetings occurred on June 12 and September 17. The meetings shared progress on the iterative process of developing the master plan and engaged the community in co-design activities related to building layouts, placement and amount of green space, parking structures, and preferences between above- and below-ground concepts, ultimately leading to discussion of program placement, phasing, and site circulation. The meetings reinforced the important elements of preserving some existing buildings, phasing the construction based on available funding, and ensuring programming spaces remain flexible.
The draft concept plan (Attachment B) is intended to be developed as three phases with a combination of new construction and building renovation. The site layout considers appropriate program adjacencies by grouping similar activities together, balances building space with outdoor space and site circulation, and accommodates phasing of construction over time. The phased approach recognizes that funding may be a limiting factor in full site redevelopment and allows the opportunity for program and activity continuity during project construction.
In a parallel process, development of the second poll to be launched in early November 2025 is underway to determine voter support of a bond or tax measure to fund the proposed Cubberley project to inform Council’s consideration of placing a measure on the November 2026 ballot. Voters will be asked whether they are in support of packaging additional projects with the bond measure and measure willingness to pay the associated cost of new construction, renovation, and phasing of the project.
BACKGROUND
There has been extensive foundational work completed to support the advancement of the Cubberley Project, including several actions by the City Council. Attachment A shares a summary of actions and progress to date and the history of the Cubberley site. Since staff last presented and provided an informational update on the Cubberley Community Center Project to the City Council on June 9,1 completed milestones include:
1 City Council, June 9, 2025; Agenda Item 2; SR #2503-4313, https://portal.laserfiche.com/Portal/DocView.aspx?id=182790&repo=r-704298fc&searchid=b8466c78-a59e-41dc- a6cd-52e7bc5d8005
Item 1
Item 1 Staff Report
Item 1: Staff Report
Pg.
2 Packet Pg. 10 of 607
Community Meeting #2 on June 12,
Public Art Commission Meeting on June 19,
Parks and Recreation Commission Meeting on June 24,
Planning and Transportation Commission Meeting on July 9, Architectural Review Board Meeting on July 17,
Community Meeting #3 on September 17, and
Parks and Recreation Commission on September 23.
Work completed to date can be found on the City’s website at www.paloalto.gov/improvecubberley. Staff reports related to this project can be found under the “Archived Work on Cubberley” section of the webpage.
ANALYSIS
Milestones that are covered in this report include the status of the master plan concept development including a plan for phasing, development of the second poll, and buildout of a Strategic Activation Plan.
Master Plan Concept Development
Since the last time Council received an update on the Cubberley master plan project, progress has been made on the development of a conceptual design for the site. Building on the 2019 co-design plan, the phased concept is the culmination of feedback received during three community meetings, online input, and from Board, Commission, and Council study sessions. At the community meetings, participants engaged in co-design activities related to building layouts, placement and amount of outdoor space, arrival and parking, and preferences between above- and below-ground parking, ultimately leading to discussion of program placement, phasing, and site circulation. Community preferences were received during the community meetings and continue to be used to inform the planning process and the concept designs in Attachment B. Summaries of that feedback, including the activities and comments received, can be found in Attachment B.
The meetings reinforced the important elements of preserving some existing buildings, phasing the construction based on available funding, and ensuring programming spaces remain flexible.
Attachment B is the most current master plan iteration to date and highlights a phased approach to site development that includes a combination of new construction and building renovation. The site layout identifies and considers appropriate program adjacencies by grouping similar activities together, balances building space with outdoor space and site circulation, and accommodates phasing of construction over time. The phased approach is intentional. Available funding may be a limiting factor in full site redevelopment, and phasing also allows the opportunity for some program and activity continuity during project construction.
Item 1
Item 1 Staff Report
Item 1: Staff Report
Pg.
3 Packet Pg. 11 of 607
The vision outlined in the master plan would be implemented in three phases.
Phase I: Phase I of the Cubberley Master Plan would focus on constructing a new Recreation and Wellness Center, a two-story facility designed to serve multiple community needs. The building would include four multipurpose gymnasiums that could accommodate basketball, volleyball, indoor pickleball, and other recreational uses, along with fitness studio spaces, locker rooms, offices, and dedicated health and wellness areas. The facility would also incorporate storage space for emergency services and sheltering supplies such as cots and equipment, supporting the City’s emergency preparedness efforts. As part of this phase, the current tennis courts would be elevated, with a surface-level parking lot constructed underneath and the tennis courts reestablished on top. Additionally, Phase I would include the construction of a new outdoor swimming pool to expand aquatics programming and community recreation opportunities.
In addition to the Recreation and Wellness Center, Phase I would also include the construction of a new Education Building to support a range of educational and community programs. This facility would house early education offerings, after-school programs, and other lifelong learning opportunities, creating a dedicated space for youth and family enrichment. The existing two-story “I” building would be renovated to improve functionality and extend its useful life.
Within the Performing Arts section of the campus, both the Pavilion and Cubberley Theatre would be renovated to enhance the space as a community cultural hub. These improvements would create flexible spaces for performing arts, dance, martial arts, music, rehearsals, and related activities. Renovations would also include upgraded lobby areas to provide a more welcoming and functional gathering space for audiences and performers.
Phase 1 also includes renovation of remaining buildings, so the full site continues to be operational until funding for phases 2 and 3 is secured. Buildings and rooms currently used and occupied by PAUSD would become available for programming, visual arts, makerspace and workshops and flexible rental spaces.
Phase II: Phase 2 focuses on the construction of visual arts and technology buildings, which includes makerspace and workshop areas for hands-on projects, as well as gallery space for city curated and community exhibitions. This area will also include artist creative studios, expanding opportunities for artists and community members to create, learn, and showcase their work.
Phase III: Phase 3 will complete the Community Services section and provide a café and lounge gathering space, a popular request from the community, along with new community service and flexible spaces. The flexible space is especially valuable, as it provides the ability to adapt to changing program needs and future community priorities. It is designed to be future-proof, multi-purpose, and nimble—supporting staff-led programs, hourly rentals, office space, and Item 1
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potentially accommodating additional tenants. This intentional flexibility will ensure the campus continues to meet evolving needs long after construction is complete.
Overall, the master plan proposes to increase the amount of indoor space from the current 184,000 square feet to 247,000 square feet after phase one, and ultimately to 284,000 square feet after phases two and three. The increase in indoor square footage was informed by feedback received from the community and existing tenants during the 2019 co-design process and current master planning process, and opportunities to build upon existing public private partnerships for expanded community space. Examples where square footage increases are notable include:
Recreational space, including gyms and programmable spaces for health and wellness classes and activities;
Expanded theater and performing arts spaces with improved accessibility; Visual arts spaces for art programs, classes, and exhibits to the community, including a makerspace and creative workshops; and
Flexible spaces for city programming of classes and camps, and rental space.
Outdoor space also increases with the proposed plan from 250,000 square feet to 390,000 square feet after phase one, and to 415,000 square feet after phases two and three. This provides an opportunity to improve the quality of outdoor spaces at Cubberley and provide for more diverse uses, such as events, performances, outdoor programs, unstructured play and casual gathering spaces.
Development of Second Community Poll
Staff engaged with Fairbank, Maslin, Metz & Associates (FM3) to develop and conduct polling on public opinion to place a measure on the November 2026 ballot. Staff’s updated workplan presented to the City Council on June 10, 20253 included three rounds of polling: the first poll released in April 2025, the second to be released in November 2025, and the third and final to be released in April 2026. On August 5, 2025, staff met with the Cubberley Ad Hoc Committee and recommended that an additional poll be added to the workplan, for a total of four.
The second poll has three main objectives and is expected to be conducted in November. First, to determine voter support of a bond or tax measure to finance the land purchase and the extent of how much voters are willing to pay annually for range of visions and scopes under these scenarios:
3 City Council, June 10, 2025: https://portal.laserfiche.com/Portal/DocView.aspx?id=182790&repo=r- 704298fc&searchid=57dac2b5-5c42-4ef0-978a-be940766f395
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Results from these scenarios will be an indicator of whether a phased approach to build out and/or renovation is a viable path forward, given the amount that voters are willing to pay.
Second, the poll will evaluate voter opinion testing components in the Cubberley Vision Statement and provide insight on voter support of relatable elements.
Finally, potential voters will be asked whether they are in support of packaging additional projects with the bond measure and weigh willingness to pay the associated cost of new construction, renovation, and phasing of the project. Additional details on the poll outline are anticipated to be released in a supplemental memorandum upon final review with the City Council Adhoc and polling consultant prior to the Council discussion.
Staff anticipate the third poll will be launched in February/March 2026, and the final poll launched in May 2026 and both set to test potential ballot measure language and related messaging.
As a reminder, the City Council reviewed the results of the first poll on June 9, 20255. In the first poll, voters ranked three messages as very convincing in support of a bond measure:
1. Building Standards: Palo Alto residents deserve a community center that is modern, safe, and accessible to the entire community,
2. Early Childhood Education: this project will create a dedicated space for childcare and early childhood education for families from all walks of life, and 5 City Council, June 9, 2025: https://portal.laserfiche.com/Portal/DocView.aspx?id=182790&repo=r-704298fc Land Purchase
Recreation &
Wellness
Performing
Arts
Vistual Arts,
Technology &
Sciences
Community
Services &
Flex Space
Scenario 5
(Phases I, II, &
III)
Land Purchase
Recreation &
Wellness
Performing
Arts
Visual Arts,
Technology &
Sciences
Scenario 4
(Phase I & II)
Land Purchase
Recreation &
Wellness
Performing
Arts
Scenario 3
(Complete
Phase I)
Land Purchase
Recreation &
Wellness
Scenario 2
(Partial Phase I)
Land Purchase
Renovations
to maintain
base building
standards
Scenario 1
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3. Affordability: Palo Alto should invest in creating an affordable, accessible place where people can gather to learn, play, read, enjoy the arts, experience joy, and connect with one another.
Strategic Activation Plan
Staff, in coordination with the City Council Cubberley Ad Hoc Committee, developed a Strategic Activation Plan to guide near-term enhancements and activations at the Cubberley site. This plan builds upon the many events and activities already taking place daily at the Cubberley campus, including City-run programs, tenant-led offerings, rentals, special events, artist studio workshops and open studios. It is intended to complement and enhance the existing vibrancy of the site.
This plan is intentionally aligned with the broader workplan. By timing short-term improvements to complement key milestones, the plan is designed to engage the community, enhance public interest, and demonstrate visible progress when it is most impactful. Balancing existing resources and staff capacity the Strategic Activation Plan enhances engagement activities in 2025 to create a strong foundation, while 2026 focuses on increasing public visibility and the workplan underway.
To ensure the plan is comprehensive and inclusive of key stakeholders, staff met with several groups over the summer to refine the plan, which included the Parks and Recreation Commission, the Parks and Recreation Commission Ad Hoc Committee, the Public Art Commission, and Cubberley tenants. These meetings provided valuable opportunities to share updates, invite input, and incorporate feedback into the final plan (Attachment C). The document outlines a range of potential ideas to build community excitement and momentum for the project including a mix of short-term physical enhancements, community events, and temporary art installations and performances that will be facilitated through the City’s Public Art 2026 ArtLift Community Grant program.
Phase I Activation Status Report
Staff have been actively working to bring forward the ideas in Phase I of the Cubberley Master Plan. We are pleased to provide the following update on current initiatives:
Tenant Door Painting Program – Enhancing the campus environment with tenant-led, colorful door designs. Program plans are currently being finalized and nearing launch. Community Canvas – 10-foot banner was presented at the third community meeting, inviting the community to share “what excites you about the new community center,” with words, phrases or drawings. The banner is now hung at Cubberley for the community to continue adding contributions.
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Movie Nights – Hosting a three-part series of family-friendly movies at the Cubberley Theater to activate the site and build excitement. Movies will occur in November, December, and January.
Wayfinding / Information Sharing Implementation – Update current directory signs on- site to improve navigation and enhance the visitor experience, as well as share project information to keep the community informed and excited. Directory signage is currently being designed and will be updated soon.
Next Steps – Phase II Strategic Activation (January – March 2026) With the Master Plan anticipated for completion in December 2025 and City Council approval targeted for March 2026, the next phase of the Strategic Activation Plan will focus on awareness and buzz-building. The primary goal of Phase II is to generate broad public excitement of the Master Plan.
To achieve this, the Cubberley site will be further activated through pop-up events and physical enhancements that showcase the future vision while building on Phase I successes. Planned initiatives include:
Launching the Public Art ArtLift Grants to bring temporary, community-focused projects to the site.
Ongoing Cubberley Artist Studio Workshops to invite residents into the creative process. Continuing Phase I activities such as Movie Nights and Tenant Door Painting. Leveraging the existing energy of the campus with its daily events and tenant programming to highlight Cubberley as a lively, active community hub.
Phase II will serve as the bridge between the completed Master Plan and the City Council’s approval process, ensuring the community remains engaged and energized around the future of Cubberley.
Workplan Updates
As the various project elements advance it is important to recognize the interdependencies that exist and are necessary to meet the timeline. Each workplan step is intentionally designed to inform the next – input and data received during the previous and current master planning efforts inform the polling themes and questions, while poll results will inform the concept plans for a new community center at the Cubberley site. Given the constrained timeline and resources needed to complete multiple and complex bodies of work, it is important to maintain focus on the critical path to ensure milestones are met. The milestones listed below are Item 1
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necessary to complete the master plan and draft a potential ordinance by Spring 2026 to reach the November 2026 ballot
Project Milestones (current step is bold)
Feb 18, 2025 – City Council Visioning Session
March 19, 2025 – First Cubberley Master Planning Community Meeting April 21, 2025 – City Council direction on Poll #1 themes April 22, 2025 – Presentation to Parks and Recreation Commission April 28, 2025 –Poll #1 released to Palo Alto community June 9, 2025 – City Council review of Poll #1 results
June 12, 2025 – Second Cubberley Master Planning Community Meeting June 19, 2025 – Public Art Commission Meeting
June 24, 2025 – Presentation to Parks and Recreation Commission July 9, 2025 – Presentation to Planning & Transportation Commission July 17, 2025 – Presentation to Architectural Review Board September 17, 2025 – Third Cubberley Master Planning Community Meeting September 23, 2025 – Parks and Recreation Commission Meeting October 2025 – City Council review of third community meeting and second poll November 2025 – Release Poll #2
November 2025 – Presentation to Parks & Recreation Commission December 2025 – Final Cubberley Master Plan Presentation to City Council February 2026 – Release Poll #3 (newly added)
March 2026 – Adopt Master Plan and CEQA
April 2026 – Release Poll #4
June 2026 – Council approval to place a measure on the November ballot August 2026 – Deadline to submit Final Ballot Language for November Election November 2026 – Election and placement of a ballot measure Other work ongoing and underway includes beginning California Environmental Quality Act (CEQA) analysis of the master plan, developing future financial and operating models to ensure long-term fiscal sustainability, coordinating with the Friends of the Palo Alto Recreation Wellness Center and continuing community outreach and stakeholder engagement.
Next Steps
The next steps in the Cubberley Master Plan process are to continue refining the master plan and finalize cost estimates by phase. Staff are also analyzing current and proposed space usage on the site by area and type, developing financial models and possible management structures for future operations for the purpose of long-term forecasting and to guide decision-making.
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Concurrently, results from the second community poll, expected in mid-November, will further shape the plan and guide phasing by testing potential bond measure funding levels. Staff will continue to work closely with the Cubberley Ad Hoc as progress continues. These efforts will culminate in a presentation of the proposed master plan, cost estimates, phasing scenarios, and results of the second poll to the City Council and community in December 2025.
FISCAL/RESOURCE IMPACT
In FY 2025, $1.0 million was approved by the City Council to be transferred from the Real Property Reserve to CB-26000. Approximately $919,000 in costs associated with these transfers were realized in FY 2025 as shown in Table 1 below. The remaining $81,000 was moved into FY 2026 to support legal counsel services.
In addition to the funding remaining from FY 2025, $0.7 million will be recommended to be transferred from the Real Property Reserve to CB-26000 and will be used to support the items listed in Table 1. Staff will still need to return to Council to amend and award contracts above the $85,000 contract authority level.
Table 1: Estimated Cubberley Costs
FY 2025 FY 2026 Council Status Total Costs
Master Plan Update
(Concordia)
$631,966 Approved
ed
$631,966
CEQA Environmental
Review (Rincon)
202,322 Approved 202,322
Ballot Measure Polling
(FM3)
43,988 $109,012 $26,775 Contract
Amendment Pending
153,000
Strategy Consultant (Lew
Edwards Group)
27,000 81,000 Approved 108,000
Municipal Advisor (PFM) 20,000 Approved 20,000
Legal Counsel 85,000 Below Authority Level 85,000
Geotech and Surveying 17,545 Below Authority Level 17,545 Engagement & Outreach
Materials
13,795 51,000 Below Authority Level 64,795
Limited Term
Staff Augmentation
100,000 Pending 100,000
General Expenses 100,000 Pending 100,000
Contractual Services 217,372 Pending 217,372
Total Estimated Costs $919,071 $780,929 $1,700,000
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STAKEHOLDER ENGAGEMENT
Community outreach and stakeholder engagement efforts for the project have been extensive and remain a central component of the overall process. Following the second and third community meetings, recordings of the presentations were uploaded to the project website to ensure broader access. Community members who could not attend in person were invited to share their input through an online public comment card, providing additional opportunities for feedback to the broader community.
Following the adoption of a new master plan, staff will initiate broader community outreach and engagement strategies aimed at generating excitement and awareness about the transformative potential of the future facility and campus. In the interim, staff are actively developing strategies and solutions to keep the community well-informed, engaged, and enthusiastic about the project's progress and long-term vision.
In addition to community meetings and updates to the City Council, Project updates and ways to stay involved and informed are shared through:
Project website (www.paloalto.gov/cubberleyproject),
Online comment card asking for priorities and open field to share vision and service needs,
City updates via medium.com blog space,
Project updates sent via email newsletter to the project distribution list and project updates shared through City channels including Nextdoor and digital newsletters, and videos
Utility bill inserts,
Resident mailers, and
Tabling at key City events.
ENVIRONMENTAL REVIEW
California Environmental Quality Act (CEQA) review is underway for the Cubberley Master Plan Project and will be brought to the City Council at a future date.
ATTACHMENTS
Attachment A: Cubberley Project Background
Attachment B: Cubberley Draft Concept Plan and Phasing
Attachment C: Strategic Activation Plan
APPROVED BY:
Kristen O'Kane, Community Services Director
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Attachment A
The Cubberley Site
The 35-acre Cubberley site, located at 4000 Middlefield Road in Palo Alto, operated as Cubberley High School from 1956 to 1979. Beginning in the late 1980’s, the City began leasing portions of the facilities from the Palo Alto Unified School District (PAUSD) at the site. Today, the City operates the areas of Cubberley it controls as a community center, using some of the space for classes and activities in arts, culture, athletics, and sub-leasing additional space at City-subsidized rates to various non-profit and community serving groups. The current lease agreement expires December 31, 2029.1 Today, the City owns eight acres of the 35-acre site. PAUSD owns the remaining 27 acres, most of which are leased to the City. There are currently 23 tenants and 24 artists leasing space at Cubberley from the City and dozens of groups renting the theater, pavilion, classrooms, and athletic fields from the City. Combined, these groups provide the community with programs that support health and wellness, childcare, education, and visual and performing arts. PAUSD uses its retained space for educational purposes and staff offices and has leases with some third-party tenants.
The parking lot in the southeast corner of the property houses portable trailers as a temporary site for Hoover Elementary School during construction at the school’s site. A current site map can be found on the City’s website.2
Several master planning efforts have been completed over the years to reimagine and improve the Cubberley site, with the most recent being completed in 2019.3 Memorandum of Understanding with PAUSD
In October 2024,4 both the City Council and Palo Alto Unified School District (PAUSD or District) Board of Education approved a Memorandum of Understanding (MOU) related to the future of the Cubberley site. The MOU outlines key terms and conditions for the purchase and future planning of Cubberley. The land purchase, which would transfer ownership of seven acres from PAUSD to the City, is contingent on voter approval of a bond measure in November 2026. This condensed timeframe requires development of a master plan for the site by March 2026, conduct stakeholder and community engagement and outreach, polling, financial analysis, CEQA analysis, and other critical tasks. The addition of the seven acres, plus the eight acres already owned by the City of 1 City Council, December 2, 2024: https://portal.laserfiche.com/Portal/DocView.aspx?id=112707&repo=r- 704298fc&searchid=c3e3ed6f-6cda-4dd3-ba35-5d8d4be5579e
2 https://www.cityofpaloalto.org/files/assets/public/v/1/city-manager/communications-office/cubberley- community-center_mappdf.pdf
3 Cubberley Concept Plan 2019: https://www.pausd.org/about-us/committees-task-forces/archived- committees/cubberley-master-plan
4 City Council, October 7, 2024; Agenda Item AA1; SR #2409-3500, https://portal.laserfiche.com/Portal/DocView.aspx?id=98415&repo=r-704298fc&searchid=e199f724-22ab- 472b8ad8-ca162c4dcf8a
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Attachment A
Palo Alto provides an opportunity to develop a new community center and other improvements on a combined 15 acres at the Cubberley site to provide a range of City programs, including health, wellness, and recreational opportunities for residents.
Master Plan Update and Pursuit of a Local Ballot Measure To advance the master planning effort the City Council took several actions on December 2, 20249 related to the future of the Cubberley site. These actions included approval of a contract with Concordia, LLC, and associated budget actions for development of a revised Master Plan for the Cubberley Community Center site, building on the previous master plan completed in 2019 by Concordia and guided by significant community input. Additionally, the Council approved a Letter of Intent with the Friends of the Palo Alto Recreation Wellness Center for the purpose of fundraising for a recreation wellness center (gymnasium) at the Cubberley site, and a workplan for pursuit of a November 2026 local ballot measure to fund the purchase of land and development of a new community center at the Cubberley site.
Subsequent Council actions included approving a five-year lease with PAUSD10 to continue the current use of the property, including playing fields, approval of a professional services agreement with Rincon for CEQA analysis,11 and approval of professional service agreements with Lew Edwards Group and Fairbank, Maslin, Metz & Associates12 for ballot measure strategy advisement and community polling.
Cubberley Ad Hoc Committee
The Council established the Cubberley Ad Hoc Committee (as a non-Brown Act body) to review and advise staff on efforts related to polling and development of a ballot measure that will successfully receive voter support in 2026. Efforts include polling, financial and revenue modeling for the community center, master planning, and community outreach to complete the Master Plan and place a measure on the November 2026 ballot.
The City Council will serve as the governing body for policy direction at key decision points. This includes direction to conduct polling, review of concept designs, direction on 9 City Council, December 2, 2024; Agenda Item 18, SR #2410-3634, https://portal.laserfiche.com/Portal/DocView.aspx?id=112713&repo=r-704298fc 10 City Council, December 2, 2024; Agenda Item 12; SR #2410-3651, https://portal.laserfiche.com/Portal/DocView.aspx?id=112707&repo=r-704298fc 11 City Council, December 16, 2024; Agenda Item 12; SR #2411-3813, https://portal.laserfiche.com/Portal/DocView.aspx?id=117742&repo=r-704298fc&searchid=96e9506b- f1bd-485e-a4cb-fc804b5893d1
12 City Council, February 24, 2025; Agenda Item 4; SR #2501-4039, https://portal.laserfiche.com/Portal/DocView.aspx?id=143364&repo=r-704298fc&searchid=fef509a6- 4d34-4060-bc7a-6ab87db7a0ae
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operating and financial models, and decisions on what should be placed on the November 2026 ballot.
April 21 City Council Meeting
At the April 21, 2025 City Council meeting,17 staff presented outcomes from the first community meeting held on March 19, an update on the Cubberley Master Plan Project workplan and sought Council authorization to initiate the first community poll.
First Cubberley Master Plan Community Meeting
The first community meeting for the Cubberley Master Plan Project was held on March 19, 2025, and was attended by over 120 community members and stakeholders.
Participants completed two activities in table groups of up to eight people with guided facilitation, focusing on the vision for the community center, programming, and place making. The first meeting goals included a review of the Vision from the City Council session and then using a list from the previous community engagement process, participants were asked to review and confirm desired programming and adjacencies for the future Community Center. The outcomes of the March 19 meeting were presented18 to the City Council on April 21, 2025.
The first activity focused on a review of the Council Vision statement and participants were asked to expand the Vision statement with additional values and ideas.
Community members valued: Multipurpose, adaptable spaces to accommodate diverse uses over time; Gathering hubs for interconnectivity and communication between diverse social, cultural and generational groups; Accessibility for all ages, cultures and abilities to access holistic wellness resources; Integration of green space and sustainability features in experiential and infrastructural planning; and Affordability for local Palo Altans and for tenants who have a community focus. Overall, participants focused on flexibility, inclusivity, sustainability, and long-term community engagement as high-level themes.
The second activity focused on programming and adjacencies of indoor and outdoor spaces. The most selected indoor programs were Theater/Performance Space, Dance Classes, Art Studio, Art Classes, followed by Gym Facility, Flexible Rental Space, and a Café. For outdoor programs, Open Greenspace was the most selected program followed by Playground, Amphitheater, and Pool/Water Area. Compared to 2019, the most mentioned programs then (indoor and outdoor) were Adult Education, 17 City Council, April 21, 2025; Agenda Item 11; SR #2503-4310, https://portal.laserfiche.com/Portal/DocView.aspx?id=166428&repo=r-704298fc 18 Staff Presentation, April 21, 2025;
https://cityofpaloalto.primegov.com/Portal/viewer?id=0&type=7&uid=71ade3d7-a57a-4195-a59b- c410d90832ea
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Theater/Performance Space, Greenspace, Makerspace, and Senior/Multigenerational Programs.
Feedback on First Community Poll
Polling experts, FM3 presented21 themes for the first community poll designed to test voter opinions on the community center’s goals, preferred uses, and willingness to support funding through a tax or bond. The poll themes and questions were developed with input from the Cubberley Ad Hoc Committee and will inform critical upcoming milestones in the project. The Council did not take an action but supported proceeding with the poll.
April 22 Parks & Recreation Commission Meeting
On April 22, 2025,22 staff presented an informational update to the Parks and Recreation Commission, offering a comprehensive overview of the project's overall workplan and timeline. The presentation included a detailed summary of Community Meeting #1, highlighting key themes and priorities that emerged from the community’s feedback. Staff also introduced Poll #1, which was launched at the end of April, and encouraged Commissioners to help promote the survey to ensure broad community participation. In addition, the presentation outlined several ways the Commission can remain engaged and support the project, including serving as ambassadors within the community, helping to share information, and providing feedback. The creation of a PRC Cubberley ad-hoc committee was discussed and it was decided that this topic will be further considered during the upcoming workplan revisions scheduled for the coming months.
June 9 City Council Meeting
On June 9, 2025,23 staff presented to City Council the results of the first community poll, community engagement milestones coming up and updates to the workplan. The focus of the first poll was to survey voter input on the goals and future of the community center and possible support for a tax or bond measure. Staff also shared community engagement. Overall, the poll found broad majority support for improvement at the Cubberley site. Surveyed voters place highest priority on bringing the facility up to modern standards for electrical, plumbing, safety, and accessibility early childhood 21 FM3 Presentation, April 21, 2025;
https://cityofpaloalto.primegov.com/Portal/viewer?id=0&type=7&uid=83ec6422-b6e4-4e83-9ca3- ca746a5971a0
22 Staff Presentation, April 22, 2025;
https://cityofpaloalto.primegov.com/Portal/viewer?id=0&type=7&uid=dae0543c-e007-4fc1-9a69- fd08b156ee94
23 City Council, June 9, 2025, Agenda Item 2; SR#2503-4313, https://portal.laserfiche.com/Portal/DocView.aspx?id=182790&repo=r-704298fc&searchid=57dac2b5- 5c42-4ef0-978a-be940766f395
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education; affordability and efficient use of taxpayer dollars; and overall repairs for the facility. Lastly, staff shared with the City Council the community revised Vision Statement for the future of the Community Center.
June 12 Second Cubberley Master Plan Community Meeting
On June 12, 2025, the City held the second community meeting for the Cubberley Community Center Master Plan, facilitated by Concordia. At the outset of the meeting, Concordia shared a revised Vision Statement based on community input gathered at the March 19 community meeting. The revised Vision Statement is, A vibrant, beloved, and adaptable destination that promotes learning, connections, joy, and wellbeing where all cultures and generations belong. Following this, staff provided an overview presentation to orient attendees to the three 3-D concept plans being presented. Each conceptual design includes an A, B, and C variations exploring different configurations of building placement, new construction vs renovation, green space, bike and pedestrian circulation, and parking—both above and below ground.
In the first activity community members were invited as a group to share their feedback on what aspects from all nine designs they liked and wanted “keep” and did not like and wanted to “leave behind”. They indicated aspects they liked with green dot stickers and aspects they did not like with red dot stickers. They were then asked to expand on their choices by writing explanations on the activity sheet provided for the table.
In the second activity, following the group discussion of the three concept designs—The Promenade, The Grid, and The Plaza—participants individually reviewed key design elements using a provided handout. They were asked to evaluate each concept’s primary layout across six categories: arrival & parking, pedestrian circulation, building scale & physical space organization, landscape & greenspace organization, balance of building & greenspace, and being a good neighbor. Each category was rated on a scale from 1 (not successful at all) to 5 (very successful).
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Approximately 130 community members attended the second Cubberley Community Meeting and were highly engaged in providing feedback on the three presented concept designs. Attendees shared a wide range of reactions to various aspects of the designs, particularly discussing building layouts, the placement and amount of green space, parking structures, and preferences between above- and below-ground concepts. While perspectives varied, there was clear consensus around the excitement for the project’s progress and enthusiasm to see the plans taking shape. Community members expressed eagerness to continue the conversation, particularly around program placement, at the next meeting.
June 19 Public Art Commission Meeting
On June 19, 2025,27 City staff presented to the Public Art Commission and discussed potential opportunities to support the City’s Strategic Activation Plan for the Cubberley site, which was developed by staff in coordination with the City Council’s Cubberley Ad Hoc Committee. The plan outlined phased enhancements and activations aligned with the broader master planning process, community engagement efforts, and the anticipated November 2026 ballot initiative. As part of the discussion, Commissioners explored how the ArtLift grant program—previously identified at their January retreat as a potential tool—could be leveraged to support temporary public art installations at Cubberley and other key locations. Ideas included murals, ground art, freestanding sculptures, and performance-based activations to help generate community excitement and reinforce the role of the arts in creating vibrant, inclusive public spaces.
June 24 Parks & Recreation Commission Meeting
On June 24, 2025,28 City staff provided the Parks and Recreation Commission with an informational update on the Cubberley Community Center Master Plan. The presentation included a recap of the second community meeting held on June 12, where Concordia unveiled three concept designs for the site and invited community feedback. Staff also presented the results of the first community poll, released in late April, and shared a list of proposed near-term activation ideas for the Cubberley site, inviting the Commission’s input. In addition, staff sought feedback from the Commission on the three concept designs. The newly formed PRC Cubberley Ad Hoc Committee will continue to refine the activation plans in July.
27 Staff Presentation, June 19, 2025;
https://cityofpaloalto.primegov.com/Portal/viewer?id=0&type=7&uid=a036e199-31cd-4d94-8214- 7fb0170e39ac
28 Staff Presentation, June 24, 2025;
https://cityofpaloalto.primegov.com/Portal/viewer?id=0&type=7&uid=ac29aa36-1b3a-4403-b8b2- cc403685865d
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Attachment A
July 9 Planning and Transportation Commission Meeting
On July 9, 2025,31 the Planning and Transportation Commission (PTC) received an update on the Cubberley Master Plan and was asked to provide input to help inform the next phase of the planning process. Staff requested feedback on several key aspects recently reviewed by the community, including arrival and parking, pedestrian circulation, building scale and space organization, greenspace layout, the balance of built and open space, and how the site can be a good neighbor. Additional PTC feedback emphasized the importance of clear cost comparisons between renovation and new construction, interest in public-private funding models, and support for a future bond measure and donor engagement. Commissioners favored partial underground parking and better integration with transit and surrounding neighborhoods. There was broad interest in maintaining flexible green space for events, ensuring safe and separate bike/pedestrian circulation, and preserving multigenerational, inclusive programming. Suggestions also included clearer diagrams, more tangible use examples, and consideration of impacts from surrounding development.
July 17 Architectural Review Board Meeting
On July 17,32 2025, the Architectural Review Board (ARB) received a presentation on the Cubberley Master Plan and provided early feedback to help shape the next phase of planning. The Board expressed strong support for phased development and emphasized minimizing disruption to existing tenants and programs. Members praised pedestrian and bike circulation, supported the proposed balance of buildings and green space, and encouraged improvements to vehicle access and mobility hubs. There was general support for new construction over renovation and interest in enhancing the site's identity through public art and flexible community spaces. The ARB also encouraged a welcoming design that reflects Cubberley’s civic and cultural significance while being a good neighbor to the surrounding community.
September 17 Third Cubberley Master Plan Community Meeting On September 17, 2025, the City held the third and final community meeting for the Cubberley Master Plan, facilitated by Concordia. Approximately 150 community 31 Staff Presentation, June 9, 2025;
https://cityofpaloalto.primegov.com/Portal/viewer?id=0&type=7&uid=49fc32cf-caa1-4dd9-97f9- 5d5d02150256
32 Staff Presentation, July 17, 2025;
https://cityofpaloalto.primegov.com/Portal/viewer?id=0&type=7&uid=2a9a7988-768f-465b-bcf9- 68166ff9af6f
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members attended and were highly engaged in reviewing the refined concept design. At the outset, City staff and Concordia recapped the first two community meetings, provided a project overview, and highlighted updates to the concept plan, including phasing strategies. Following this presentation, participants engaged in two interactive activities to provide focused feedback.
The concept design shared at the meeting is included in Attachment B. The concept design is presented in phases to demonstrate that the project will need to be constructed over a period of time based on available funding, and to ensure that programs and services are not disrupted during construction. Phase 1 includes a mix of constructing new buildings and renovation of existing buildings to reflect likely timing needed between phases while additional funding is secured.
Activity 1- Phase 1 Concept Design: Recreation Wellness and Performing Arts Phase 1 consists of two parts: a Recreation Wellness Center and a Performing Arts Center. Phase 1 also includes renovation of remaining buildings so the full site continues to be operational until phases 2 and 3 can be completed. Community members were invited to assess the Phase 1 concept designs for the recreation wellness and performing arts area and were asked to reflect on three key questions:
1. What is working well and excites you?
2. What is not working well or could be improved?
3. What creative ideas do you have to make the space exciting? Activity 2- Phase 2 and 3 Concept Design: Visual Arts & Technology and Community Services
In the second activity, community members were asked to provide feedback on Phase 2 and Phase 3, which includes the Visual Arts & Technology (Phase 2) and Community Services spaces (Phase 3). Participants responded to the same guiding questions as in the first activity: what is working well and is exciting about the proposed designs, what aspects are not working or could be improved, and what creative ideas, such as new events, programs, or installations—could make these areas more vibrant and impactful.
This exercise allowed the community to reflect on future phases of development and share ideas that will help shape a cohesive, dynamic, and inclusive vision for the campus.
Overall, the meeting reflected strong community engagement and generated valuable input on both programming and site circulation. Community members expressed enthusiasm about seeing program placement within the proposed buildings and noted their appreciation for the phased approach, which allows for continuity of programs during construction. The discussion was lively and engaging, with particular interest around the café, the outdoor amphitheater, parking access, and pedestrian and bicycle Item 1
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Project Background
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circulation pathways. The feedback gathered will directly inform refinement of the preferred concept plan. The full meeting summary will be finalized in the coming weeks and shared with the community through the project webpage and via City communication channels. Concordia and staff will incorporate this input as they prepare for the final presentation of the proposed master plan, cost estimates, and phasing scenarios to the community and City Council on December 8, 2025.
September 23 Parks and Recreation Commission Meeting
On September 23,35 2025, the Parks and Recreation Commission (PRC) received a presentation on the refined Cubberley Community Center Master Plan concept following the third and final community meeting held on September 17, 2025. Commissioners reviewed updates on program placement, phasing, and site circulation, and were asked to provide input on the same questions posed to the community: what is working well, what could be improved, and what creative ideas could enhance the campus experience.
Commissioners engaged in a thoughtful discussion that highlighted both enthusiasm for the project and areas for refinement. They praised Phase I improvements—especially the café, amphitheater, and integration with existing buildings—and noted strong community excitement about program continuity during construction. Key suggestions included lighting for the tennis courts, enhancing pedestrian and bicycle circulation, and incorporating creative placemaking features such as gardens and artistic infrastructure.
Concerns focused on the cost and feasibility of large-scale facilities (e.g., the partial underground parking), potential displacement impacts in Phase I, and how to communicate a phased plan if bond funding only covers the first phase. Commissioners also stressed sustainable design choices and raised questions about circulation, office space, gym design, and pool impacts.
Overall, the PRC expressed appreciation for the progress made and reinforced the importance of balancing community goals, funding realities, and long-term sustainability as the preferred concept moves toward presentation to Council in December. 35 Staff Presentation, September 23, 2025;
https://cityofpaloalto.primegov.com/viewer/preview?id=0&type=8&uid=efbb1418-4bbe-49b2-b786- 165e29017ca3
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PHASING THE MASTER PLAN
CUBBERLEY
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and Phasing
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Phase 1 Demo
Greendell School
Charleston
Shopping Center
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Phase 1 Wellness & Performing Arts
Recreation &
Wellness
T ennis
Courts/Parking
Greendell School
Charleston
Shopping Center
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Renovate existing
buildings
P erforming Arts
Education
Renovate existing
Building I
Renovate existing
Pavilion and
Theatre
Recreation &
Wellness
T ennis
Courts/Parking
Phase 1 Wellness & Performing Arts
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Phase 1 – First Floor Programming
P erforming Arts Space
(11,800sf)
Theatre
(3,000sf)
Lobby
(3,000sf)
Dance/Martial
Arts (5,000sf)
Music/Rehearsal
(8,000sf)
Preschool/Daycare
(12,000sf)
Health and Wellness
Programs (15,000sf)
Lockers, Lobby, Office (4,000sf)
Y oga/Pilates
(4,000sf)
Maintenance, Service,
Emergency Services,
Sports Clubs (16,000sf)
Parking at grade
Studios/Workshops/
Makerspace
(18,000sf)
Basketball (19,000sf)
Flex/Rental
(12,000sf)
Gallery
(5,000sf)
Admin/T enant
(5,000sf)
Visual Arts
(10,000sf)
Dance/Martial Arts
(6,000sf)
Flex/Rental
(21,000sf)
Rec and Wellness
Arts
Flex/Rental
Education
LEGEND
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Phase 1 – Second Floor Programming
Dance/Martial Arts
(6,000sf)
Enrichment
(12,000sf)
Lockers, Lobby, Office
(4,000sf)
Basketball
(19,000sf)
T ennis Courts at roof deckHealth and Wellness
(15,000sf)
Y oga/Pilates
(4,000sf)
Music/Rehearsal
(7,000sf)
Rec and Wellness
Arts
Flex/Rental
Education
LEGEND
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Phase 1 – Third Floor Programming
Dance/Martial Arts
(9,000sf)
Rec and Wellness
Arts
Flex/Rental
Education
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Phase 2 Demolition
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Phase 2 Visual Arts and Technology
Visual Arts
and
T echnology
Greendell School
Charleston
Shopping Center
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Phase 3 Community Services
Community
Service/Flexible Space
Café/ Lounge
Greendell School
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Phasing Plan – Complete
Greendell School
Charleston
Shopping Center
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Phase 3 – First Floor Programming
Small/Medium Rental/Flex space
(12,000sf)
Admin/T enant space
(15,000sf)Makerspace and
Workshops (7,000sf)
Visual Arts
(10,000sf)
Café/
Lounge/
Commercial
Kitchen
(5,000sf)
Gallery (5,000sf)
Partially Underground
Parking
P erforming Arts Space
(11,800sf)
Theatre
(3,000sf)
Lobby
(3,000sf)
Dance/Martial
Arts (5,000sf)
Music/Rehearsal
(8,000sf)
Preschool/Daycare
(12,000sf)
Health and Wellness
Programs (15,000sf)
Lockers, Lobby, Office (4,000sf)
Y oga/Pilates
(4,000sf)
Maintenance, Service,
Emergency Services,
Sports Clubs (16,000sf)
Parking at grade
Basketball (19,000sf)
Dance/Martial Arts
(6,000sf)
Rec and Wellness
Arts
Flex/Rental
Education
LEGEND
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Phase 3 – Second Floor Programming
Admin/T enant space
(12,000sf)
Studios
(9,000sf)
Dance/Martial Arts
(6,000sf)
Enrichment
(12,000sf)
Lockers, Lobby, Office
(4,000sf)
Basketball
(19,000sf)
T ennis Courts at roof deckHealth and Wellness
(15,000sf)
Y oga/Pilates
(4,000sf)
Music/Rehearsal
(7,000sf)
Rec and Wellness
Arts
Flex/Rental
Education
LEGEND
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Phase 3 – Third Floor Programming
Dance/Martial Arts
(9,000sf)
Rec and Wellness
Arts
Flex/Rental
Education
LEGEND
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Site Plan - Phase 3 - Outdoor Uses
P ool
T o Nelson Dr
Placemarker
Cultural Plaza/
Outdoor Flex
Space
Amphitheater
Marketplace
Basketball Deck (roof)
Outdoor Flex Space
Playground
Native Gardens
Food T ruck area
Playground
Greendell School
Learning Garden
Placemarker
Volunteer P ollinator
Garden
T ennis Courts
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Circulation Diagram
Vehicle circulation
Bicycle oriented circulation
P edestrian oriented circulation
Surface parking
Greendell School
Nelson Dr
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Parking Diagram
Entry to
underground
parking
Entry to
underground
parking
Parking
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Flexible Timeline: Flexible Design
PHASE 1 PHASE 2 AND 3
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INDOOR & OUTDOOR SPACES & PARKING - PROPOSED
EXISTING SITE
Outdoor Space
250,000 SF
PHASE 1
Outdoor Space
390,000 SF
PHASE 2 AND 3
Outdoor Space
415,000 SF
Indoor
184,000 SF
Indoor
247,000SF
Indoor
284,000SF
520
Parking
Spots
580
Parking
Spots
840 Parking
Spots
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Attachment C
Cubberley Strategic Activation Plan
Stakeholder additions in italics: Public Art Commission, Parks & Recreation Commission, Cubberley Tenants, PRC Ad Hoc
Initiative Overview:
This timeline guides the strategic rollout of activations and enhancements at the Cubberley site in alignment with the overall project phases—master planning, community polling, and the November 2026 ballot initiative. By timing improvements thoughtfully, the project maintains public interest, reinforces key messages, and showcases progress when it matters most. This phased approach also helps balance staff capacity, ensuring efforts are focused and aligned with broader priorities at each stage.
Why Timing Matters:
Each phase builds on the last—deep engagement in 2025 lays the foundation, early 2026 focuses on visibility and council adoption, and the final phase ramps up public excitement and turnout ahead of the vote. Strategic timing ensures sustained interest and maximizes impact at key decision points.
PHASE I: Master Planning & Community Engagement
(December 2024- December 2025)
Goal: Build a community-driven, inclusive, and visionary Master Plan through robust engagement and feedback. The focus during this time period is for the community to participate in the Master Planning community meetings and polls. While staff capacity is limited due to the intensive work during this time period, some activation may occur, including:
CASP Open Studios + tenants
CASP Workshops (FY25= 18 workshops, 710 participants)
Tenant door painting, project information / QR code
Community canvases to be displayed on-site
Concert(s)
Movie Night(s)
Implement Wayfinding / Information Sharing Focal Points (bulletin board, display case, etc)
PHASE II: Awareness & Buzz Building
(January 2026 – March 2026)
Goal: As the Master Plan is now complete (December) and anticipated for Council approval in March, at this time it’s important to build public excitement and political will to support adoption by City Council. The focus during this time is to share the final Master Plan and build broad awareness, excitement and awareness. This can be done by activating the Cubberley site with pop-up events and appropriate physical enhancements that support the above goal.
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Ideas include:
Launch call for ArtLift grant projects which may total $20,000 - $40,000 in grants awarded by the Public Art Program across Palo Alto, including commercial corridors and the Cubberley site.
oLaunch early 2026, work to be completed in Spring/Summer in Phase III oProjects could be temporarily mounted on walls, fences, ground, freestanding works, or performance based etc.
CASP Workshops
Tenant door painting, project information / QR code
PHASE III: Voter Education & Site Activation
(April 2026 – November 2026)
Goal: Anticipating approval of the Master Plan by City Council in March 2026, staff will then move focus on launching voter education, community partners may activate to champion the ballot measure, and City will continue hosting activation events to maintain momentum and excitement.
Ideas include:
Cubberley Day (historically March)
CASP Open Studios+ tenants (April)
New Halloween Event 2026 (Oct)
Tenant showcase events (multiple)
Display enlarged concept plans
CASP Workshops
ArtLift Grants (walls, fences, ground, freestanding projects, or performance-based projects. etc) (have existing funded)
Concerts
Movie Nights
Teaser spaces (pop-ups of things that will be in new buildings) New outdoor furniture
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City Council
Staff Report
Report Type: CONSENT CALENDAR
Lead Department: City Clerk
Meeting Date: October 20, 2025
Report #:2510-5267
TITLE
Approval of Minutes from September 29 and October 6, 2025 Meetings
RECOMMENDATION
Staff recommends that the City Council review and approve the minutes.
ATTACHMENTS
Attachment A: September 29, 2025 Draft Action Minutes
Attachment B: October 6, 2025 Draft Action Minutes
APPROVED BY:
Mahealani Ah Yun, City Clerk
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CITY COUNCIL
DRAFT ACTION MINUTES
Special Meeting
September 29, 2025
The City Council of the City of Palo Alto met on this date in the Council Chambers and by virtual teleconference at 5:30 P.M.
Present In Person: Burt, Lauing, Lu, Lythcott-Haims, Reckdahl, Stone, Veenker Present Remotely:
Absent:
Special Orders of the Day
1. Proclamation Honoring Nara Cammack for her effort in proposing and advancing a Bike Safety Park project in the City of Palo Alto
NO ACTION
2. Proclamation Recognizing September 2025 as Suicide Prevention Awareness Month
NO ACTION
Agenda Changes, Additions and Deletions
Public Comment
Council Member Questions, Comments and Announcements
Study Session
3. Impacts of H.R.1 on Santa Clara County Region
NO ACTION
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DRAFT ACTION MINUTES
Sp. City Council Meeting
Draft Action Minutes: 09/29/2025
Consent Calendar
Councilmember Burt, Reckdahl, and Lu requested to pull Agenda Item Number 6.
MOTION: Councilmember Stone moved, seconded by Mayor Lauing to approve Agenda Item Numbers 4, 7-16, AA1 (Agenda Item Number 5 Removed from Agenda ) and to pull Agenda Item Number 6 off of the Consent Calendar.
MOTION PASSED ITEMS 4, 7-16, AA1: 7-0
4. Approval of Minutes from September 8 and September 15, 2025 Meetings
5. PUBLIC HEARING / QUASI -JUDICIAL. 70 Encina Avenue [25PLN -00034]: Request for Approval of a Tentative Map to Merge Two Lots and Allow for a Condominium Subdivision to Create 10 Units on the Resulting 12,119 -Square-Foot Parcel. The Subdivision Map Would Facilitate Construction of Ten New Residential Units in One Building, which was previously approved on April 14, 2025 (24PLN -00095). CEQA Status:
Exempt from the Provisions of the California Environmental Quality Act (CEQA) in Accordance with CEQA Guidelines Section 15183 (Comprehensive Plan Consistency).
Zoning District: PC-5654. Agenda Item Number 5 Removed from Agenda
6. Approval of FY 2026 Architectural Review Board, Historic Resources Board, Planning and Transportation Commission, and Utilities Advisory Commission Work Plans; CEQA status – not a project
7. Adoption of a Resolution for the County of Santa Clara Historic Heritage Grant Application for the Restoration of the Roth Building Frescoes (Phase II); CEQA Status - categorically exempt.
8. Authorization to Execute an 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 $185,000; CEQA Status – Not a Project.
9. Approval of General Service Contract No. C26194249 with Orion Security for Security Services at the Municipal Service Center and the Regional Water Quality Control Plant in an Amount Not- To-Exceed $1,448,260 for a Period of Five Years; CEQA Status – Categorically Exempt under Section 15301
10. Approval of Professional Services Agreement C26195459 with Project Safety Net, Inc. in an amount not -to-exceed $300,000 to Provide Youth Mental Health and Suicide Prevention Support for a term ending June 30, 2028; CEQA Status – Not a Project.
11. Authorization to Execute Amendment to Legal Services Contract S24190674 with Jeffrey Oneal dba Rankin Oneal to Increase Amount by $85,000 for Total Not-to-Exceed Amount of $170,000; CEQA Status – Not a Project.
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DRAFT ACTION MINUTES
Sp. City Council Meeting
Draft Action Minutes: 09/29/2025
12. The City Schools Liaison Committee Recommends Approval of Professional Services Contract Number C26195844 with the JED Foundation for a Not -to-Exceed Amount of $149,000 for Technical Assistance, Evaluation, and Support Regarding Youth and Young Adult Mental Health Programs for a Period of Two Years; CEQA Status - Not a Project
13. SECOND READING: Ordinance of the Council of the City of Palo Alto Amending the Fiscal Year 2026 Municipal Fee Schedule to Amend and Remove Various Fees (FIRST READING:
September 8,2025 PASSED: 7-0)
14. SECOND READING: Ordinance Amending PAMC Chapter 10.56 (Special Speed Zones) to Update Speed Limit Studies for 22 Streets and Decrease the Speed Limit for a Portion of Deer Creek Road (FIRST READING: September 8,2025 PASSED: 7-0)
15. SECOND READING: Ordinance Amending Chapter 16.64 (Development Fee and In- Lieu Payment Administration) of Title 16 (Building Regulations) of the Palo Alto Municipal Code to Reflect Changes in Law (FIRST READING: September 8,2025 PASSED: 7-0)
16. SECOND READING: Adoption of Four Ordinances, as Recommended by the Retails Committee to Amend and Reorganize Stormwater and Wastewater Management Requirements by Amending PAMC Chapter 16.09 (Sewer Use Ordinance), Amending Chapter 16.11 (Stormwater Pollution Prevention), Adding New Chapter 16.13 (Requirements for Food Facilities Related to Water Pollution Prevention and Management of Fats, Oils, and Grease), and Adding New Chapter 16.66 (Hauled Liquid Waste). (FIRST READING: September 8, 2025, PASSED 7-0)
AA1. Approve Purchase Order C26195416 with Carahsoft, Utilizing a General Services Administration Blanket Purchase Agreement, to Procure SAP S/4 HANA Suite of Products and Corresponding Software and Hosting Services for a 5-Year Term for a Not-To-Exceed Amount of $6,640,429; and Approve a Budget Amendment in the Technology Fund as Recommended by Finance Committee; CEQA Status - Not a Project
City Manager Comments
Ed Shikada, City Manager
Closed Session
17. CONFERENCE WITH CITY ATTORNEY-POTENTIAL LITIGATION
Subject: Potential litigation regarding 156 North California Avenue, as set forth in letter(s) from Holland & Knight LLP dated September 3, 2025 Authority: Government Code Section 54956.9(d)(2); One case, as Defendant.
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DRAFT ACTION MINUTES
Sp. City Council Meeting
Draft Action Minutes: 09/29/2025
AA2. CONFERENCE WITH CITY ATTORNEY-POTENTIAL LITIGATION Subject: Petition for Redistribution of Local Tax with California Department of Tax and Fee Administration
Authority: Government Code Section 54956.9(d)(2)
One Case, as Petitioner
AA3. CONFERENCE WITH CITY ATTORNEY-POTENTIAL LITIGATION Subject: Initiation of Litigation in three Cases:
A. City of Fresno et al. v. Turner et al., United States District Court, Northern District of California, Case No. 3:25-cv-07070; and
B. King County et al. v. Turner et al., United States District Court, Western District of Washington, Case No. 2:25-cv-00814; and
C. Anticipated litigation not yet filed against Federal Government Authority: Government Code Section 54956.9(d)(4)
Three Cases, as Plaintiff
18. Public Employee Performance Evaluations
Cal. Gov. Code section 54957 (b)1
City Manager, City Attorney, City Clerk, City Auditor
MOTION: Vice Mayor Veenker moved, seconded by Council Member Lythcott-Haims to go into Closed Session.
MOTION PASSED: 7-0
Council went into Closed Session at 7:50 P.M.
Council returned from Closed Session at 12:08 A.M.
Mayor Lauing announced no reportable action on Agenda Item Numbers 17, AA2, 18. Mayor Lauing announced that Agenda Item Number AA3, Council voted 7- 0 to authorize the C ity Attorney to file papers to join King County et al. v. Turner at al., United States District Court, Western District of Washington, Case No. 2:25-cv-00814.
Adjournment: The meeting was adjourned at 12:10 A.M.
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DRAFT ACTION MINUTES
Sp. City Council Meeting
Draft Action Minutes: 09/29/2025
ATTEST: APPROVED:
____________________ ____________________
City Clerk Mayor NOTE: Action minutes are prepared in accordance with Palo Alto Municipal Code (PAMC)
2.04.160(a) and (b). Summary minutes (sense) are prepared in accordance with PAMC Section
2.04.160(c). Beginning in January 2018, in accordance with Ordinance No. 5423, the City Council found action minutes and the video/audio recordings of Council proceedings to be the official records of both Council and committee proceedings. These recordings are available on the City’s website.
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CITY COUNCIL
DRAFT ACTION MINUTES
Regular Meeting
October 6, 2025
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, Lu, Lythcott-Haims, Reckdahl, Stone, Veenker Present Remotely:
Absent: Lauing
Special Orders of the Day
1. Proclamation Recognizing Fire Prevention Week – October 5-11, 2025
NO ACTION
2. Review Applications and Select Candidates to Interview for the Human Relations Commission (HRC), Parks and Recreation Commission (PRC), and Public Art Commission (PAC) Vacancies; CEQA Status: Not a Project
MOTION: Councilmember Burt moved, seconded by Councilmember Reckdahl to:
1. Interview all candidates for the Public Art Commission (PAC) that received two or more votes;
2. Council to take a vote to select the 8
th candidate to interview for the Human Relations
Commission (HRC).
MOTION PASSED: 6-0-1, Lauing absent
MOTION: Vice Mayor Veenker moved, seconded by Councilmember Burt to add to the Council- approved Interview Selection Process that Boards, Commissions, & Committee candidates must receive a threshold of 2 votes to receive an interview.
MOTION PASSED: 6-0-1, Lauing absent
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DRAFT ACTION MINUTES
City Council Meeting
Draft Action Minutes: 10/06/2025
Agenda Changes, Additions and Deletions
Public Comment
Council Member Questions, Comments and Announcements
Study Session
3. San Antonio Road Area Plan: Provide Feedback on Existing Conditions Analysis and Land Use and Mobility Priorities. CEQA Status: Exempt under CEQA Guidelines Section 15262.
NO ACTION
Consent Calendar
MOTION: Council member Reckdahl moved, seconded by Council member Lythcott-Haims to approve Agenda Item Numbers 4-9, AA1.
MOTION PASSED: 6-0-1, Lauing absent
4. Approval of FY 2025 Reappropriation Requests to FY 2026 Operating and Capital Improvement Budgets and Additional Technical Clean- Up Actions and Corresponding Amendments to the FY 2026 Budget Appropriation for Various Funds. CEQA Status: Not a Project
5. Approval of Construction Contract No. C25195264 with Precision Engineering, Inc. in the Amount Not -to-Exceed $6,842,121 and Authorization for the City Manager or Their Designee to Negotiate and Execute Change Orders for Related Additional but Unforeseen Work that May Develop During the Project Up to a Not -to-Exceed Amount of $684,212 for the Hamilton Avenue Capacity Upgrades Project (SD -25000), and Approval of a Budget Amendment in the Stormwater Management Fund; CEQA Status – Exempt under CEQA Guidelines Section 15301(c)
6. Approval of Professional Service Contract No. C26194618 with SCS Field Services in an Amount Not- to-Exceed $1,513,890, to Provide Landfill Gas Monitoring, Reporting, and Well Installation Services for the City’s Closed Landfill for a Period of Five Years, and Approval of a Budget Amendment in the Refuse Fund; CEQA Status – Exempt under CEQA Guidelines Section 15301
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DRAFT ACTION MINUTES
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7. Approval of Construction Contract No. C26193446 with MP Nexlevel of California, Inc., in the Amount Not -to-Exceed $13,600,187 and Authorization for the City Manager or Their Designee to Negotiate and Execute Changes Orders Up to a Not-to-Exceed Amount of $1,060,018 for a Total Not to Exceed Amount of $14,660,205 Over Three Years to Provide Utility Trench and Substructure Installations; CEQA status: Exempt, CEQA Guidelines Section 15301, 15302, and/or 15303; for Fiber -to-the-Premises work, Council Action on This Item is Within the Scope of the Final Initial Study and Mitigated Negative Declaration (IS/MND) for the Fiber-to-the-Premises Project, adopted on June 17, 2024.
8. Approval of Construction Contract C25194006 with SCC Electric, Inc. in the Not- to- Exceed Amount of $997,500, and Authorization for the City Manager or Their Designee to Negotiate and Execute Change Orders Up to a Not -to-Exceed Amount of $99,750 for the Utilities Control Center Generator Replacement Project as part of the Building Systems Improvements Project (PF -01003); and Approve Amendment to the FY 2026 Budget in the Capital Improvement and Electric Funds; CEQA Status - Exempt under CEQA Guideline Sections 15301 and 15302
9. Approval of Amendment No. 2 to Contract Number S23185432 with Koffler Electrical Mechanical Apparatus Repair, Inc. in the Amount of $230,000 for a New Not -to Exceed Amount of $460,000, and Extending the Term through September 29, 2027, for Electric Motors and Submersible Pump Service at the Regional Water Quality Control Plant; CEQA Status – Exempt under Section 15301(b)
AA1. Approve the selection of Teri Black & Company as the executive recruitment firm for the recruitment of the City Attorney and Approve the Recruitment General Timeline as Recommended by the Council Appointed Officers (CAO) Committee. CEQA status – not a project.
City Manager Comments
Ed Shikada, City Manager
Action Items
10. Adoption of Eight Ordinances Amending Various Sections of the Palo Alto Municipal Code (PAMC) Related to the 2025 California Building Standards Code (CA Code of Regulations Title 24) Update, including: (1) Chapter 16.04 Incorporating the 2025 CA Building Code With Local Amendments; (2) Chapter 16.05 Incorporating the 2025 CA Mechanical Code With Local Amendments; (3) Chapter 16.06 Incorporating the 2025 CA Residential Code With Local Amendments; (4) Chapter 16.08 Incorporating the 2025 CA Plumbing Code With Local Amendments; (5) Chapter 16.14 Incorporating the 2025 CA Item 2
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Green Building Standards Code with Local Amendments; (6) Chapter 16.16 Incorporating the 2022 CA Electrical Code With Local Amendments; (7) Chapter 16.18 Incorporating the 2024 International Swimming Pool and Spa Code With Local Amendments; (8) Chapter 16.17 Incorporating the 2025 CA Energy Code With Local Amendments; Direction to Staff to Return to Council on the Consent Calendar with Ordinances Adopting the 2025 Editions of the California Wildlands -Urban Interface Code and California Fire Code with Local Amendments; Approve a Budget Amendment in the General Fund . CEQA Status: Exempt Under CEQA Guidelines Sections 15061(b)(3) and 15308.
MOTION: Councilmember Burt moved, seconded by Councilmember Reckdahl to:
1. Adopt the ordinances in Attachments A through H that amend chapters of the Palo Alto Municipal Code (PAMC) related to the 2025 California Building Standards Codes (Cal.
Code of Regulations Title 24) and proposed local amendments; and
2. Direct staff to return to Council on the Consent Calendar with ordinances adopting the 2025 editions of the California Wildlands -Urban Interface Code and California Fire Code and local amendments thereto; and
3. Approve an amendment to the Fiscal Year 2026 Budget appropriation in the General Fund (requires a 2/3 majority vote) by:
a. Increasing the Planning and Development Services expenditure appropriation by $96,000; and
b. Decreasing the Budget Stabilization Reserve by $96,000.
MOTION PASSED: 6-0-1, Lauing absent
11. Review of State and Local Ballot Measures Appearing on the November 4, 2025 Ballot and Consideration of Possible City Council Positions
MOTION: Vice Mayor Veenker moved, seconded by Council member Stone to issue support positions for Santa Clara County Measure A and Proposition 50.
MOTION PASSED: 6-0-1, Lauing absent
Adjournment: The meeting was adjourned at 8:58 P.M.
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DRAFT ACTION MINUTES
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ATTEST: APPROVED:
____________________ ____________________
City Clerk Mayor NOTE: Action minutes are prepared in accordance with Palo Alto Municipal Code (PAMC)
2.04.160(a) and (b). Summary minutes (sense) are prepared in accordance with PAMC Section
2.04.160(c). Beginning in January 2018, in accordance with Ordinance No. 5423, the City Council found action minutes and the video/audio recordings of Council proceedings to be the official records of both Council and committee proceedings. These recordings are available on the City’s website.
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Planning and Development Services
Meeting Date: October 20, 2025
Report #:2510-5278
TITLE
PUBLIC HEARING / QUASI-JUDICIAL. 70 Encina Avenue [25PLN-00034]: Request for Approval of a Tentative Map to Merge Two Lots and Allow for a Condominium Subdivision to Create 10 Units on the Resulting 12,119-Square-Foot Parcel. The Subdivision Map Would Facilitate Construction of Ten New Residential Units in One Building, which was previously approved on April 14, 2025 (24PLN-00095). CEQA Status: Exempt from the Provisions of the California Environmental Quality Act (CEQA) in Accordance with CEQA Guidelines Section 15183 (Comprehensive Plan Consistency). Zoning District: PC-5654.
RECOMMENDATION
Staff recommends the City Council take the following actions:
1. Consider the project exempt from CEQA in accordance with CEQA Guidelines Section 15183 (Comprehensive Plan Consistency) as documented in Attachment C; and
2. Approve the Tentative Map based on findings and subject to conditions of approval in the Draft Record of Land Use Action (RLUA) in Attachment B.
EXECUTIVE SUMMARY
The applicant requests approval of a Tentative Map1 to merge two contiguous parcels, located at 70 Encina Avenue (APN 120-34-006) and on an adjacent unaddressed parcel (APN 120-34- 007), and for a condominium subdivision to allow 10 residential condominium units on the resulting, 12,119-square-foot parcel. The Planning and Transportation Commission (PTC) unanimously recommended approval on August 27, 2025.
Council previously approved rezoning of the two parcels and construction of a 10-unit residential condominium project through the Planned Home Zoning/Planned Community process set forth in Palo Alto Municipal Code (PAMC) Chapter 18.38.2 Two of the approved 1 Tentative Map: https://www.paloalto.gov/files/assets/public/v/1/planning-amp-development- services/newdevelopment-projects/70-encina/september-29-2025-council-tentative-map.pdf 2 Ordinance 5645 and Record of Land Use Action 2025-03 is available online at:
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units will be provided at below market rate and made affordable to households making 80% of Area Median Income or below.
BACKGROUND
The project includes a request for a Tentative Map to merge two contiguous parcels located at 70 Encina Avenue (APN 120-34-006) and on an adjacent unaddressed parcel (APN 120-34-007), and for a condominium subdivision to allow ten residential condominium units on the resulting, 12,119-square-foot parcel.
Requested Entitlements, Findings and Purview
The applicant requests approval of a tentative map, which is subject to City Council approval.
The process for evaluating this type of application is set forth in Title 21 of the Palo Alto Municipal Code (PAMC) and California Government Code 66474, and application approval is outlined PAMC Sections 21.12.010 and 21.13.020. Tentative maps require PTC and Council review. The PTC reviews whether the amended subdivision is consistent with the Subdivision Map Act (in particular, Government Code 66474), Title 21 of the Palo Alto Municipal Code, the Palo Alto Comprehensive Plan, and other applicable provisions of the PAMC and State Law. The PTC’s recommendation is forwarded to the City Council for final approval. The Council decision is final.
Prior City Reviews & Action
The proposed subdivision map was reviewed and unanimously recommended for approval by the PTC on August 27, 2025, with minor modifications that were incorporated into the Record of Land Use Action.5 Additionally, the proposed site improvements associated with the map were approved by City Council on April 14, 2025.6
ANALYSIS
The proposed project and relevant discussion and findings herein reflect the Tentative Map.
The City Council previously approved the proposed site improvements associated with this condominium subdivision.
Neighborhood Setting and Character
This property consists of two parcels located within the Town and County Village Shopping Center (Town & Country), but that are not owned or leased by Town & Country. The sites were previously leased by Ellis Partners, the owner of Town & Country, and provided parking for that site. Adjacent zoning and uses include Town & Country and its associated parking areas to the south, east, and west. The portion of Town & Country adjacent to the site is mostly developed 5 Planning and Transportation Commission Staff Report, August 27, 2025, Item 2:
https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=16575 6 City Council Staff Report, April 14, 2025, Item 12:
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with one-story structures, though the building height increases to two stories towards the eastern side of the building. To the north, across Encina Avenue, are CS zoned office buildings and further down the street is the LifeMoves Opportunity Center. The offices are one- and two- story buildings. The Opportunity Center is five stories.
Consistency with the Comprehensive Plan, Area Plans, and Guidelines9 The proposed Tentative Map is consistent with the Comprehensive Plan. The site is designated as the “Regional/Community Commercial” land use designation, which allows for multi-family residential uses. The site is also identified as a Housing Inventory Site in the Housing Element; therefore, development of the site with multi-family residential use is appropriate and consistent with the Housing Element, as discussed further below. The map facilitates the redevelopment of a parcel within the City’s urban service area which is consistent Policy L-1.2 of the Comprehensive Plan. The associated development to be constructed on the lot would add new residential units that contribute to the housing inventory including two affordable housing units, consistent with Goal 2 of the Housing Element, which states “assist in the provision of safe, attainable, and sustainable housing, especially affordable housing, to meet the needs of all economic segments of the community.” Consistencies with other Comprehensive Plan policies are included in Attachment B.
Housing Element
70 Encina Avenue is a Housing Inventory Site (HIS) in the City’s adopted Housing Element. This parcel has a projected capacity of five units where five units is effectively proposed, as it is one half of the total site. The proposed 10 units exceeds the anticipated capacity and therefore contributes more than what was planned toward the City’s Regional Housing Needs Allocation.
Zoning Compliance10
The site is zoned PC-5654 (Planned Community, Ordinance 5654) and is zoned specifically for the proposed project. The size of the project site would not change and is consistent with code requirements for the zoning district, which has no minimum lot size requirements. The proposed density is also the same as approved for the PC zoning. Therefore, staff finds that the proposed Tentative Map complies with the code requirements.
Consistency with Application Findings
As detailed in Attachment B, this project meets all required findings for a Tentative Map and facilitates development of a housing development project that is consistent with the City’s regulations, goals, and policies.
9 The Palo Alto Comprehensive Plan is available online: bit.ly/PACompPlan2030 10 The Palo Alto Zoning Code is available online: bit.ly/PAZoningCode Item 3
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FISCAL/RESOURCE IMPACT
The developer would be required to pay all applicable development impact fees estimated to total $764,578.5 for the proposed improvements, plus the applicable public art fees, as documented in Condition of Approval #6 in Attachment B and detailed further in Condition of Approval #16 in Record of Land Use Action 2025-03.
STAKEHOLDER ENGAGEMENT
The Palo Alto Municipal Code requires notice of this public hearing be published in a local paper and mailed to owners and occupants of property within 600 feet of the subject property at least ten days in advance. Notice of a public hearing for this project was published in the Daily Post on October 10, 2025, which is 10 days in advance of the meeting. Postcard mailing occurred on October 8, 2025, which is 12 days in advance of the meeting.
Public Comments
As of the writing of this report, no project-related, written public comments were received related to the Tentative Map. Three members of the public spoke at the PTC meeting, including identifying a minor discrepancy in the draft RLUA that was incorporated into the corrections recommended in the PTC motion. Additionally, Ellis Partners provided numerous comments on the Planned Community Rezoning application, particularly related to the relationship of the project in the context of the shopping center. Council considered those comments in making a determination on approval of the proposed development application.
ENVIRONMENTAL REVIEW
The subject project has been assessed in accordance with the authority and criteria contained in the California Environmental Quality Act (CEQA), the State CEQA Guidelines, and the environmental regulations of the City. Specifically, the proposed Tentative Map is exempt from CEQA in accordance with CEQA Guidelines Section 15183 (Comprehensive Plan Consistency). A link to the exemption documentation is available in Attachment D.
ATTACHMENTS
Attachment A: 70 Encina Location Map
Attachment B: Draft Record of Land Use Action
Attachment C: Project Plans and Environmental Analysis
APPROVED BY:
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ACTION NO. 2025-XX
RECORD OF THE COUNCIL OF THE CITY OF PALO ALTO LAND USE ACTION FOR 70 ENCINA AVENUE: TENTATIVE MAP, 25PLN-00034
At its meeting on September 29, 2025, the City Council of the City of Palo Alto (“City Council”) approved the Vesting Tentative Map to merge two existing lots for the development of a one-lot subdivision to create 10 residential condominium units, making the following findings, determinations and declarations:
SECTION 1. Background.
A. On February 11, 2025, Sandis, on behalf of Town & Country Development Company, LLC, applied for a Tentative Map for the development of a one (1) parcel, 10-unit condominium subdivision at 70 Encina Avenue (“The Project”).
The project site is comprised of two existing lots: APN No. 120-34-006, approximately 6,059.5 square feet, contains a vacant surface parking lot. APN No. 120-34-007, approximately 6,059.5 square feet, contains a vacant surface parking lot. Uses abutting the site include a one-story shopping center (Town and Country Shopping Center). Across Encina Avenue are one-to-three story office buildings, and the five-story LifeMoves Opportunity Center.
B. Following staff review, the Planning and Transportation Commission reviewed the project and recommended approval on August 27, 2025, subject to conditions of approval.
C. Hayes Group Architects, on behalf of Town & Country Development Company, LLC, also submitted a related Planned Community/Planned Home Zoning application, which the City Council approved on April 14, 2025 pursuant to the City’s Planned Community Rezoning Process, to permit a 10-unit multi-family building, two of which would be provided at a rate affordable to low income tenants (50-80% AMI).
D. On September 29, 2025 the City Council held a duly noticed public hearing, at which evidence was considered and all persons were afforded an opportunity to be heard in accordance with the City Council’s policies and procedures.
SECTION 2. Environmental Review. The City, as the lead agency for the Project, has determined that the project is exempt from the California Environmental Quality Act (CEQA) in accordance with CEQA Guideline section 15183, which provides an exemption for projects deemed consistent with the Comprehensive Plan. Documentation to support the exemption is available as part of the public record on file with the Planning and Development Services Division.
SECTION 3. Tentative Map Findings. A legislative body of a city shall deny approval of a Parcel Map, if it makes any of the following findings (California Government Code Section 66474). The City Council cannot make these findings for the following reasons:
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1.That the proposed map is not consistent with applicable general and specific plans as specified in Section 65451:
The site is consistent with the Comprehensive Plan as described below. There is no adopted specific plan for this project site.
2.That the design or improvement of the proposed subdivision is not consistent with applicable general and specific plans:
There is no adopted specific plan for this project site. The proposed tentative map and related improvements is consistent with the Comprehensive Plan in that it facilitates housing development on a site designated for multi-family use within the urban services area, consistent with Goal 2 of the Housing Element and Goal L1.2 of the Land Use Element. The project does not replace existing housing. The project includes two units that will be offered at a rate affordable to low income, 80% AMI. The project improves the city’s jobs housing imbalance consistent with the Transportation Element’s goals and policies.
3. That the site is not physically suitable for the type of development:
The Project site is suitable for multi-family residential development in that it’s identified as a Housing Inventory Site in the Housing Element. The existing parcel meets the minimum code requirements for the CC zone district with respect to lot area, width and depth. The parcel would not change with approval of this condominium subdivision. The proposed number of condominium units complies with the applicable densities set forth in the land use element and zoning code.
4.That the site is not physically suitable for the proposed density of development:
The project would create a total of 10 multi-family residential units, which is 27.8 dwelling units (DU) per acre for the site. This density is allowed as a part of the Planned Community rezoning entitlement. Therefore, it is physically suitable.
5. That the design of the subdivision or the proposed improvements are likely to cause substantial environmental damage or substantially and avoidably injure fish or wildlife or their habitat:
The project is located within the built environment that does not contain quality habitat for fish or other wildlife on the site or within the vicinity of the site. There are no streams within 1,000 feet of the project site. The adopted Palo Alto 2030 Comprehensive Plan includes Map N-1, which identified sensitive animal and plant species within the Palo Alto quadrangle, a large geographic area that includes the urban portions along the bay and within the foothills, based on information in the California natural Diversity Database (CNDDB). Based on this map, and the urban nature of the site, the subject property does not contain any habitat for endangered, rare, or threatened species and has not historically supported any of these species.
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6. That the design of the subdivision or type of improvements is likely to cause serious public health problems:
The subdivision of this parcel and associated improvements would not have the potential to result in serious health problems. The proposed multi-family use would not include use or storage of hazardous materials and the use is located within the urban environment adjacent to other residential uses. The site is not located on a hazardous waste site pursuant to government code 65962.5.
7. That the design of the subdivision or the type of improvements will conflict with easements, acquired by the public at large, for access through or use of, property within the proposed subdivision. In this connection, the governing body may approve a map if it finds that alternate easements, for access or for use, will be provided, and that these will be substantially equivalent to ones previously acquired by the public. This subsection shall apply only to easements of record or to easements established by judgment of a court of competent jurisdiction and no authority is hereby granted to a legislative body to determine that the public at large has acquired easements for access through or use of property within the proposed subdivision.
There are no public access easements over the property currently. Therefore, the design of the subdivision will not conflict with any public easements for access through, or use of, the property. New public utility easements will be provided to existing and proposed electrical utilities as part of this subdivision map as required in accordance with City of Palo Alto Utilities standards. New public access easements will be provided to provide access to the new units.
SECTION 4. Tentative Map Approval Granted. Tentative Map Approval is filed and processed in accordance to PAMC Section 21.13.020 and granted by the City Council under PAMC Sections
21.12 and 21.20 and the California Government Code Section 66474, subject to the conditions of approval in Section 6 of this Record of Land Use Action.
SECTION 5. Final Map. The Final Map submitted for review and approval by the City Council shall be in substantial conformance with the Tentative Map prepared by Sandis titled “70 ENCINA AVENUE TENTATIVE MAP” consisting of 1 page, dated and submitted September 11, 2025, except as modified to incorporate the conditions of approval in Section 6. A copy of the Vesting Tentative Map is on file in the Department of Planning and Development Services, Current Planning Division. Prior to the expiration of the Tentative Map approval, the subdivider shall cause the subdivision or any part thereof to be surveyed, and a Final Map, as specified in Chapter 21.08, to be prepared in conformance with the Tentative Map as conditionally approved, and in compliance with the provisions of the Subdivision Map Act and PAMC Title 21 and submitted to the City Engineer (PAMC Section 21.16.010[a]).
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SECTION 6. Conditions of Approval.
Planning
1. PROJECT PLANS. The Tentative Map submitted for review and approval by the City Council shall be in substantial conformance with the Tentative Map titled “70 ENCINA AVENUE TENTATIVE MAP FOR CONDOMINIUM PURPOSES”, prepared by Sandis and submitted September 11, 2025, except as modified to incorporate the conditions of this approval.
2. FINAL MAP COVER PAGE. At such time as the Final Map is filed, the cover page shall include the name and title of the Director of Planning and Development Services.
3. FINAL MAP SUBMITTAL: The Final Map submittal shall incorporate the following changes:
a. Submit a filled out and signed Subdividers’ Statement.
4. STANDARD CC&R REQUIREMENTS. Section 16.38 of Palo Alto’s Municipal Code provides that all condominium and other “community housing projects” shall submit Covenants, Conditions and Restrictions (CC&R’s) to the City Attorney for approval before issuance of the Final Map. The City Attorney has developed the following standard covenants which shall be included in all CC&R’s.
a. PROPERTY SHALL COMPLY WITH CITY ZONING ORDINANCES. The property, including all common areas, private streets and, parks within the property, shall at all times comply with the City’s Zoning Code and shall not be used for any purpose other than as permitted in the City Zoning Code. b. MODIFICATIONS TO PROPERTY. Any alterations, modifications, or other improvements to the property shall comply with all applicable City Codes. c. MAINTENANACE AND LANDSCAPING OF COMMON AREAS. The Association is responsible for maintenance and landscaping of all parts of the community housing project which are held in common and such maintenance shall be performed to the standard of maintenance prevalent in the neighborhood. (See PAMC Section 16.38.030(a)).
d. TERMINATION OF MANAGER OR MAINTENANCE CONTRACTS. The association may terminate the contract of any person or organization engaged by the developer to perform management or maintenance duties three months after the association assumes control of the community housing project or any time thereafter. (See PAMC Section 16.38.030(b).) e. PROTECTION OF STORM WATER FACILITIES. Neither the association, its residents, nor their agents, employees, representatives, invitees, licensees, Item 3
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customers, or contractors shall alter or modify any storm water facilities in any way including but not limited to placing, maintaining, constructing, or planting any improvements, landscaping or other items, including without limitation decks, stairs, walls, irrigation systems, trees, or any vegetation on any storm water facilities.
f. TRASH DISPOSAL AND RECYCLING AREAS SHALL COMPLY WITH CITY ORDINANCES. All trash disposal and recycling areas shall be kept in a clean and sanitary condition and shall comply with all applicable City Ordinances. g. PROHIBITION AGAINST AIR AND WATER POLLUTION. Neither the association, its residents, nor their agents, employees, representatives, invitees, licensees, customers, or contractors shall use the property in any way which emits pollution into the atmosphere in excess of environmental standards set forth by City, State, and Federal laws, ordinances, and regulations. Neither the association, its residents, nor their agents, employees, representatives, invitees, licensees, customers, or contractors shall discharge garbage, trash, waste, or any other substance or materials of any kind into any private or public sewer or waterway on the property in violation of any regulations of any private or public body having jurisdiction over such matters. h. AMENDMENTS TO ORGANIZATION DOCUMENTS REQUIRE CITY APPROVAL.
Any amendments or modifications to the organizational documents shall be submitted to the city attorney for approval. No amendment or modification to the organizational documents shall be effective without prior written consent of the city attorney.
i. CITY’S RIGHT TO ENFORCE COVENANTS AND RESTRICTIONS. The City is hereby granted the right, but in no event the duty, to enforce the covenants and restrictions set forth in this section of the organizational documents. The association shall recognize that it has the primary responsibility for enforcement of the organizational documents and unequivocally guarantees to institute and expeditiously prosecute any required legal action to obtain compliance with all provisions set forth in the organizational documents. j. NO WAIVER OF CITY’S RIGHTS. No failure of the City to enforce any of the covenants or restrictions contained in the organizational documents will in any event render them ineffective.
k. CITY’S REMEDIES TO CURE A BREACH OR VIOLATION. Remedies available to the City to cure any breach or violation of the organizational documents shall be cumulative to any other provisions of law. The City’s failure to exercise any remedy provided for in the organizational documents shall not, under any circumstances, be construed as a waiver of the remedy.
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l. SEVERABILITY. Invalidation of any one of the City’s required covenants or restrictions by judgment or court order shall in no way affect any other provisions which shall remain in full force and effect.
4. DEVELOPMENT IMPACT FEES. The Property Owner or their designee shall pay all applicable development impact fees associated with the proposed development and subdivision prior to issuance of the building permit(s), as detailed in the PHZ Approval, RLUA 2025-03.
5. INDEMNITY. To the extent permitted by law, the Applicant shall indemnify and hold harmless the City, its City Council, its officers, employees and agents (the “indemnified parties”) from and against any claim, action, or proceeding brought by a third party against the indemnified parties and the applicant to attack, set aside or void, any permit or approval authorized hereby for the Project, including (without limitation) reimbursing the City for its actual attorneys’ fees and costs incurred in defense of the litigation. The City may, in its sole discretion, elect to defend any such action with attorneys of its own choice.
Public Works Engineering
6. PUBLIC WORKS APPLICATIONS, FORMS, AND DOCUMENTS: Applicant shall be advised that most forms, applications, and informational documents related to Public Works Engineering conditions can be found at the following link:
https://www.cityofpaloalto.org/Departments/Public-Works/Engineering- Services/Forms-and-Permits
7. SUBDIVISION IMPROVEMENT AGREEMENT: The applicant shall execute a Subdivision Improvement Agreement and provide improvement securities (Bonds) for all proposed public improvements. THE AGREEMENT SHALL BE EXECUTED PRIOR TO MAP
RECORDATION OR ISSUANCE OF ANY PERMITS FOR CONSTRUCTION, ONSITE AND OFFSITE. ADVISORY -- The applicant shall provide a detailed itemized stamped and signed engineer's estimate for all off-site public improvements which will be reviewed to determine the security amount.
8. FINAL MAP: This project is subject to, and contingent upon the approval and recordation of a Final Map. The submittal, approval and recordation of the Map shall be in accordance with the provisions of the California Subdivision Map Act and Palo Alto Municipal Code Title 21 Subdivision requirements. All existing and proposed property lines, easements, dedications shown on the map are subject to the City’s technical review and approval prior to issuance of any construction permits.
9. MAP THIRD-PARTY REVIEW: The City contracts with a third-party surveyor that will review and provide approval of the map’s technical correctness as the City Surveyor, as permitted by the Subdivision Map Act. The Public Works Department will forward a Item 3
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Scope & Fee Letter from the third-party surveyor and the applicant will be responsible for payment of the fee’s indicated therein, which is based on the complexity of the map.
SECTION 7. Term of Approval. Tentative Map. All conditions of approval of the Tentative Map shall be fulfilled prior to approval of a Final Map (PAMC Section 21.16.010[c]). Unless a Final Map is filed, and all conditions of approval are fulfilled within a two-year period from the date of Tentative Map approval, the Tentative Map shall expire and all proceedings shall terminate.
An extension of time may be granted by the city council after recommendation of the planning commission, upon the written application of the subdivider, with an extension request submitted prior to the expiration of the Tentative Map approval, or any previous extension granted. Such extension(s) shall be subject to the maximum limitations set forth in the Subdivision Map Act.
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INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
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ATTEST: APPROVED:
_________________________ ____________________________
City Clerk Mayor
APPROVED AS TO FORM: APPROVED AS TO CONTENT:
___________________________ ___________________________ Assistant City Attorney City Manager
___________________________
Director of Planning and
Development Services
PLANS AND DRAWINGS REFERENCED:
Those plans prepared by Sandis titled prepared by Sandis titled “70 ENCINA AVENUE TENTATIVE MAP” consisting of 1 page, dated and submitted September 11, 2025.
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If you need assistance reviewing the above documents, please contact the Project Planner or call the Planner-on-Duty at 650-617-3117 or email [email protected]
Project Plans
In order to reduce paper consumption, a limited number of hard copy project plans are provided to commissioners for their review. The same plans are available to the public, at all hours of the day, via the following online resources.
Directions to review Project plans and environmental documents online:
1. Go to: bit.ly/PApendingprojects
2. Scroll down to find “70 Encina” and click the address link
3. On this project-specific webpage you will find a link to the project plans and other important information
Direct Link to Project Webpage:
https://www.cityofpaloalto.org/Departments/Planning-Development-Services/Current- Planning/Projects/70-Encina-Ave
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Utilities
Meeting Date: October 20, 2025
Report #:2505-4736
TITLE
PUBLIC HEARING: Finance Committee Recommends Adoption of Resolution Amending Five Rate Schedules Setting Forth Utility Connection Fees and Other Charges: Utilities Rate Schedule E-15 (Electric Service Connections), W-5 (Water Service Connections), G-5 (Gas Service Connections), S-5 (Sewer Service Connections) and C-1 (Utility Miscellaneous Charges); CEQA Status: Not a Project Under CEQA Guidelines Sections 15378(b)(4) and (5) and Exempt Under Section 15273(a)
RECOMMENDATION
The Finance Committee and staff recommend the City Council adopt a resolution (Attachment A) amending five utilities rate schedules that set forth charges for utility connection charges and service call fees, effective January 1, 2026, including an annual increase based on the California Construction Cost Index (CCCI) in fiscal years when a cost-of-service study is not performed:
a. E-15 (Electric Service Connection Charges),
b. W-5 (Water Service Connection Charges),
c. G-5 (Gas Service Connection Charges),
d. S-5 (Wastewater Service Connection Charges), and
a. C-1 (Utility Miscellaneous Charges).
EXECUTIVE SUMMARY
The Utilities Department has completed a comprehensive update of its service connection fees and service call charges for electric, gas, water, and wastewater services. The Finance Committee reviewed the revised fee schedules at its September 16, 2025 meeting and unanimously recommended City Council approval. These revised fees are designed to recover the full cost of installation, engineering, inspection, equipment, and labor for standard projects—including new installations, upgrades, relocations, and abandonments. Non-standard projects will continue requiring a customized work estimate prepared by the Engineering Divisions.
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The last full cost-of-service study for electric and gas services was conducted in 2019 (Staff Report #103131), rates have not been changed since that time. Material costs, labor rates, off-hauling costs, and job complexity have increased substantially. As part of the 2025 update, staff modernized the cost model to improve accuracy and ensure scalability for future fee adjustments. Beginning in FY 2027, utility connection and service-related fees will be incorporated into the City’s municipal fee schedule for annual updates. In years without a formal cost-of-service study, adjustments will follow the California Construction Cost Index (CCCI) as published by the California Department of General Services (DGS) 2. These actions are intended to alleviate future large increases like the six-year updates recommended in this report.
While staff consistently seek out and implement cost-saving measures for electric, water, gas, and wastewater utility, the proposed increases to connection and service fees are essential to ensure proper cost recovery, uphold quality service, and promote fairness by aligning fees with the required work for customer utility services. Key drivers of the fee updates:
Increased labor costs and updated time estimates based on actual field data; Rising material costs and disposal expenses, particularly for sand, concrete, rock, and landfill haul-away;
Updated construction standards and regulatory compliance requirements; Addition of previously unaccounted services
BACKGROUND
Staff determines connection charges based on the costs of labor, materials, equipment, changes that impact the utility’s system requirements, street paving needs, meter costs (where applicable), and landfill disposal charges.
Connection and service-related costs are recovered via a single charge based on standard conditions, or a project-specific estimated charge based on unusual, non-standard field conditions. The standard connection fee is based on the typical engineering and construction labor costs, and material requirements for a standard utility service connection or upgrade.
Projects that do not qualify for a single charge are larger projects that may require modifications to the electric, water, gas, or wastewater distribution and collection system, and therefore involve more staff analysis of design, capacity and construction requirements. These non- standard projects require a customized cost estimate, prepared by engineering staff and approved by engineering managers.
ANALYSIS
The proposed connection and service call charges reflect changes in labor rates, material costs, and time required to complete the work. New items and services were also added to the rate 1 Council Meeting June 24, 2019, Item 34: https://www.cityofpaloalto.org/files/assets/public/v/1/agendas- minutes-reports/reports/city-manager-reports-cmrs/year-archive/2019/id-10313-mini-packet-61319.pdf 2 California Construction Cost Index by DGS website: https://www.dgs.ca.gov/RESD/Resources/Page-Content/Real- Estate-Services-Division-Resources-List-Folder/DGS-California-Construction-Cost-Index-CCCI Item 4
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schedule to cover additional scenarios, new standards, and changing conditions. A few services which are not common or have not been requested in the past several years are proposed to be removed from the rate schedule. If these instances arise, staff will prepare customized engineering estimates for non-standard projects to determine the appropriate charges for special requirements as needed.
Whenever possible, staff seek to implement cost-saving measures to mitigate the cost for the provision of these services. Examples include training in-house staff to perform minor saw- cutting and minor traffic control services instead of hiring contractors. Staff applies boring or drilling methods whenever possible instead of open trench, which is significantly more costly and disruptive. For electric, customers are allowed to contract for and install substructures which can help control project costs. For water, gas, and wastewater, the City reduces costs and disruption due to economies of scale by consolidating new services, laterals, meters, and abandonment under a single project.
Full description of connection fee changes can be found in attachments B-F. Outlined below are revisions to the new connection fees and to the more frequently utilized existing fees.
Rate Schedule E-15 (Electric Service Connection Charge) - (Table 1 and Attachment B): The updated electric connection fees reflect increased labor hours—particularly for underground installations and larger service panels—along with higher material costs and inflationary changes since 2019. Schedule E-15’s fees recover the cost of labor and material necessary to affect the customer’s request for new or upgraded electric services. Electric service connection charges increased ranging from -10.9% to 278.8% . Temporary power fees decreased due to fewer hours being required of typical5 temporary power services.
Table 1 - Summary of Electric Common Connection Fee Changes Type of Service Current Proposed Changes (%)
Underground 200 Amps, Single-Phase $1,040 $3,940 278.8% Underground 400 Amps, Single-Phase N/A $4,360 NEW
Overhead 200 Amps, Single-Phase $1,040 $2,910 179.8%
Overhead 400 Amps, Single-Phase N/A $3,540 NEW
Temporary Power - Overhead 200A or less $1,190 $1,040 -12.6% Temporary Power - Underground 200A or less $1,190 $1,060 -10.9% Rate Schedule G-5 (Gas Service Connection Charges) - (Table 2 and Attachment C): Revised gas service fees account for higher labor rates, longer installation times, traffic control requirements, and increased material costs such as concrete, pipe fittings, and imported backfill. New charges have been added for service abandonments and plan reviews for non- 5 The updated fee is applicable to 200 amp single-phase temporary power services within 50-feet of a suitable secondary system (having adequate size and capacity to serve the temporary load). Larger temporary services, a specific engineering estimate will be developed to recover the City’s cost to provide these services.
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electrification projects. On average, gas fees increased 35% over the past six years, or an average of 5.3% annually. For qualified electrification projects, customers may receive a refund for their gas service demolition from Gas Cap and Trade funds.
Table 2 – Summary of Common Gas Service Connection Fees Type of Service Current Proposed Changes
(%)
Plan review for new/remodel commercial building $2,557 $3,536 38% Install 1" PE gas service connection (directionally bored) $5,892 $8,636 47% Additional pipe for new gas svc 1"-2" $52/ft $69/ft 34% Gas service pe riser relocation $1,920 $2,791 45%
Additional gas meter (up to 630) with existing svc $1,412 $1,585 12% 400 cfh gas meter charge installation $1,191 $1,457 22% 630 cfh gas meter charge installation $1,602 $1,969 23% Demolition of gas services 1”-2” N/A $6,092 New
Rate Schedule W-5 (Water Service Connection Charges) - (Table 3 and Attachment D): The revised water connection and meter installation fees reflect increased labor and material costs, extended installation durations, and enhanced engineering requirements and updated construction standards. New commercial and residential utility installation and abandonment fees are being added, including commercial 3” water meter installation, 1” and 2” copper water service installation, and plan review for new or remodel single family residence.
Table 3 – Summary of Common Water Service Connection Fees Type of Service Current Proposed Changes (%)
Plan review for new /remodel single family residence N/A $635 NEW Plan review for new/remodel commercial building $3,369 $4,653 38% 1” Copper water service N/A $10,773 NEW
2” Copper water service N/A $11,965 NEW
Install 2" water service connection $7,671 $12,236 60%
Install 8" water service connection $13,170 $19,482 48% 1" water meter installation charge $1,002 $1,318 32%
2" water meter installation charge $1,945 $2,726 40%
3” water meter installation charge N/A $4,478 NEW
Additional 2 water meter manifold 1"-2" service $868 $1,037 19% Abandonment of 3/4"-2" water service $3,341 $6,593 97%
Abandonment of 3"-8" water service $4,439 $8,991 103%
Rate Schedule S-5 (Wastewater Service Connection Charges) - (Table 4 and Attachment E):
Wastewater connection fees have increased more than the other utilities due to deeper excavation needs, additional labor hours, and higher haul-away costs. New fees have been introduced for core drilling and manhole connections, along with updated inspection charges. A Item 4
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new core drilling and manhole connection fee is added to ensure the City’s manholes are not damaged when new connections are needed.
Table 4 - Summary of Common Wastewater Service Connection Fees Type of Service Current Proposed Changes (%)
Plan review for new/remodel commercial building $2,547 $3,520 38% Install 4" sewer lateral depth at6' and below $8,559 $15,615 82% Install 6" sewer lateral depth at 6' and below $9,846 $17,478 78% Rehabilitate existing 4" to 6" sewer lateral $5,861 $9,694 65% Abandonment of 4" or 6" lateral $3,261 $5,142 58%
Eng/inspection sewer lateral installation by other $2,564 $3,508 37% Eng/inspection abandon sewer lateral by other $1,603 $2,192 37% Core drill and manhole connection 8” shallow N/A $5,488 NEW Core drill and manhole connection 8” deep N/A $6,435 NEW Utility Miscellaneous Charges (Utility Rate Schedule C-1) - (Attachment F)” Updates to Service charges: Utility Rate Schedule C-1 covers flat rate charges for service calls related to service disconnection and restoration for non-payment, plus standalone engineering and inspection services. Utility hourly labor rates have been revised to reflect updated labor, benefits and overhead costs. The proposed C-1 hourly labor rate is increasing by 36% (an average increase of 6% annually) from $152 to $207 for miscellaneous services during regular business hours.
Equipment charges: These charges recover costs associated with vehicles and equipment used during the repair resulting from third-party damage, or other work performed at the request of the customer. Staff recommends applying the Caltrans Equipment Rental Rates and Labor Surcharge schedule7 for equal or comparable City equipment. These equipment rental fees would help offset the expenses for service and maintenance, which have not been previously billed.
Commonly used equipment involved includes the FSR Van, Service Truck, Backhoe, Dump Truck, and Hydro Excavator.
New cross-connection fees (Table 5): Staff recommends implementing non-compliance, inspection, and testing charges related to the City's Cross-Connection Control Program 8. This program is mandated by the California Health and Safety Code and the State's newly adopted Cross-Connection Control Policy. The proposed fees are intended to offset the labor and administrative costs associated with managing non-compliance, including field inspections, 7 Caltrans Equipment Rental Rates website: https://dot.ca.gov/programs/construction/equipment-rental-rates- and-labor-surcharge
8 Currently, the City oversees over 4,674 backflow prevention devices, which increases monthly. There are 334 non-compliant units, including 68 that have been out of compliance for over three years.
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testing, reporting, scheduling, and collections. These charges would apply only when the City must take additional action due to a customer’s failure to meet program requirements—such as missing testing deadlines, failing to submit passing test results, or not responding to official notices. In cases where customers fail to respond to multiple notices, requiring site inspections, City-initiated testing, and internal coordination, the total labor cost can reach approximately $735.56 per incident. The proposed fees aim to recover a portion of these costs while balancing fiscal responsibility and affordability for customers. The City's approach reflects a cost-of-service model that aligns with regulatory expectations and industry standards while prioritizing equity for compliant customers and supporting the long-term viability of the Cross-Connection Control Program.
Table 5 – Summary of proposed cross-connection non-compliance fees New Cross-Connection Control Non-Compliance Fees Per Unit
1. Delinquency Backflow Non-compliance Administration & Processing Fee $57.00
2. Test/certify 1/2”- 16" Reduced Pressure Principal Assemblies (RPPA); Double Check Valve Assemblies (DC); and Pressure Vacuum Breaker Assemblies (PVB) $310.00
3. Test/certify 2"- 16” Fire Service Reduced Pressure Principal Detector Assemblies (RPDA); Double Check Detector Assemblies (DCDA) $517.50
FISCAL/RESOURCE IMPACT
Based on the proposed connection fee and service charge changes and average number of customer service orders in prior years, below is a table of estimated annual (12 month) cost recovery and percentage increase of total connection fee revenues per rate schedule. Staff will monitor activity and bring forward budget adjustments as necessary.
Annual increases to applicable fees and charges will be based on the California Construction Cost Index (CCCI) as published by Department of General Services (DGS), in years without a formal cost-of-service study. CCCI-based automatic increases for applicable fees and charges will be effective annually on July 1st. Staff anticipates adding all utilities connection fees to the municipal fee schedule beginning in FY 2027.
Staff was unable to identify comparable connection fee charges from other publicly owned utilities and investor- owned utilities. Most of the agencies did not list standard connection fees Rate Schedules Number of fees
Expected Cost
Recovery
Percentage Increase of
Total Customer
Connection Revenue
E-15 (Electric) 6 $190,000 8%
G-5 (Gas) 42 $196,000 31%
W-5 (Water) 40 $668,000 45%
S-5 (Sewer) 20 $169,000 29%
2019 Hourly Rate Proposed Hourly Rate
C-1 (Misc.) 14 $152 $207
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because they charge individually for each connection. Some agencies provided standard connection fees but those fees were for material only. The fees and charges set by the Utilities Department includes labor, materials, off-hauling, and overhead charges. Setting these fees for standard activities provides greater transparency for customers planning infrastructure changes compared with relying on individual charge calculations per project.
STAKEHOLDER ENGAGEMENT
Public Noticing
Staff developed the proposed charges in accordance with the Mitigation Fee Act (California Government Code Section 66000 – 66008), which governs water and wastewater utility connection and capacity charges. The Act sets forth notice and hearing procedures and requires that charges be cost-based. Although the City’s gas and electric connection fees and service call charges are not covered by the Act, the City has followed its procedural and substantive requirements with respect to these cost-based fees, for transparency and ease of administration.
Government Code 66016 requires that prior to levying a new or increased fee or service charge; the City Council must hold at least one public meeting to listen to any oral or written presentations of the charges. Following the Finance Committee’s review and recommendation to Council, Council will consider approval of these revised utilities connection charges and service fees. The requested effective date of January 1, 2026 will be more than 60 days after any Council action.
The Finance Committee reviewed staff’s proposals for the Utilities connections fee and service charge changes at its September 1, 2025 meeting and the Finance Committee unanimously approved the five rate schedules. The Finance Committee asked for further details of the large percentage increases in the electric connection fee schedule. Staff performed a detailed cost analysis of the rate structure and realized there were functions such as permit review and inspection services which were unaccounted for in the prior rate schedule. The increase in the number of labor hours for existing and unaccounted staff functions plus the increase in the C-1 hourly rate of $152 to $207 were the primary reasons for the electric connection fee increases.
Staff also noted the standard connection fees for the electric utility represents a smaller subset or 8% of total connection fee revenues compared to water-gas-wastewater connection fees. The majority of the electric connection fees are based on engineering estimates. The Finance Committee asked about the risk of the 402 non-compliant cross connections throughout the City.
Staff is monitoring these non-compliant cases and acknowledged the risk is minimal. The new cross connection fees will enable staff and customer to bring some of these cases into compliance.
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ENVIRONMENTAL REVIEW
The adoption of a resolution amending charges set forth in Utility Rate Schedule E-15, W-5, S-5, and G-5 to meet operating expenses and provide service is not subject to the California Environmental Quality Act (CEQA), pursuant to California Public Resources Code Sec. 21080(b)(8) and Title 14 of the California Code of Regulations Sec. 15273(a). After reviewing the staff report and all attachments presented to Council, the Council incorporates these documents herein and finds that sufficient evidence has been presented setting forth with specificity the basis for this claim of CEQA exemption.
ATTACHMENTS
Attachment A: Resolution
Attachment B: Rate Schedule E-15_effective_2026-01-01_redline Attachment C: Rate Schedule G-5_effective_2026-01-01_redline Attachment D: Rate Schedule W-5_effective_2065-01-01_redline Attachment E: Rate Schedule S-5_effective_2026-01-01_redline Attachment F: Rate Schedule C-1_effective_2026-01-01_redline APPROVED BY:
Alan Kurotori, Utilities Director
Staff: Anna Vuong, Senior Business Analyst
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NOT YET APPROVED Attachment A
1 027091025
Resolution No. _________
Resolution of the Council of the City of Palo Alto Amending Connection and Capacity Fees for the Electric, Water, Gas, and Wastewater Utilities, and Amending Miscellaneous Utility Charges (Utility Rate Schedules E-15, G-5, W-5, S-5, And C-1)
R E C I T A L S
A. Pursuant to Chapter 12.20.010 of the Palo Alto Municipal Code, the Council of the City of Palo Alto may by resolution adopt rules and regulations governing utility services, fees and charges.
B. On September 29, 2025, at a noticed public hearing, the City Council heard and approved the proposed amendments to utility connection and capacity fees, and miscellaneous utility charges.
The Council of the City of Palo Alto does hereby RESOLVE as follows:
SECTION 1. Pursuant to S ection 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule E-15 (Electric Service Connection Charges ) is hereby amended to read as attached and incorporated. Utility Rate Schedule E -15, as amended, shall become effective January 1, 2026.
SECTION 2. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule G-5 (Gas Service Connection Charges ) is hereby amended to read as attached and incorporated. Utility Rate Schedule G -5, as amended, shall become effective January 1, 2026.
SECTION 3. Pursuant to section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule W -5 ( Water Service Connection Charges) is hereby amended to read as attached and incorporated . Utility Rate Schedule W- 5, as amended, shall become effective January 1, 2026.
SECTION 4. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule S-5 (Wastewater Service Connection Charges ) is hereby amended to read as attached and incorporated. Utility Rate Schedule S -5, as amended, shall become effective January 1, 2026.
SECTION 5. Pursuant to S ection 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule C-1 (Utility Miscellaneous Charges ) is hereby amended to read as attached and incorporated. Utility Rate Schedule C -1, as amended, shall become effective January 1, 2026.
SECTION 6. The Council finds that the revenue derived from the adoption of this resolution shall be used only for the purpose set forth in Article VII, Section 2, of the Charter of the City of Palo Alto.
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SECTION 7. The Council finds that the fees and charges adopted by this resolution are charges imposed for a specific government service or product provided directly to the payor that are not provided to those not charged, and do not exceed the reasonable costs to the City of providing the service or product.
SECTION 8. Council finds that the adoption of this resolution is statutorily exempt from the California Environmental Quality Act (CEQA), pursuant to California Code of Regulations Title 14, Chapter 3, Section 15273(a), because the fees and charges proposed are necessary to recover the cost of providing utility service and meet operating expenses. After reviewing the report presented, the Council incorporates these documents herein and finds that sufficient evidence has been presented setting forth with specificity the basis for this claim of CEQA exemption.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
City Clerk
Mayor
APPROVED AS TO FORM: APPROVED:
Assistant City Attorney
City Manager
Director of Utilities
Director of Administrative Services
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Attachments:
Utility Rate Schedule E-15
Utility Rate Schedule G-5
Utility Rate Schedule W-5
Utility Rate Schedule S-5
Utility Rate Schedule C-1
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ELECTRIC SERVICE CONNECTION CHARGES
UTILITY RATE SCHEDULE E-15
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 0101-01-260
Supersedes Sheet No. E-15-1 dated 01-01-209-01-19 Sheet No.E-15-1 8 4
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A. APPLICABILITY:
This Rate Schedule applies to all connections, interconnections, expansions, and upgrades to the City's Electric Distribution System, except connections that serve street lighting or traffic signals.
B. TERRITORY:
This Rate Schedule applies anywhere the City of Palo Alto provides Electric Service.
C. CHARGES:
All Charges must be pre-paid by the Applicant prior to the scheduling of any construction or connections to the City's Electrical Distribution System.
1. ADVANCE ENGINEERING FEES
The Applicant must pay all Advance Engineering Fees to start the engineering process which are non-refundable. The Advance Engineering Fees will be credited against the estimated job cost prior to the collection of construction fees. For Service connections that do not require a job estimateapplicable to fixed electric service connection fees, CPAU will not require Advance Engineering Fees.
2. UNDERGROUND SYSTEMS
(A) Service Connection Charges:
Service Connection Charges are required when the City connects any Customer to the City’s electrical Distribution System. A one-time waiver of this fee may be granted for Services connected during the construction of an underground conversion utility district.
(1) Residential or Small Commercial - Single Familyservice, single phase, 200 (or less) and 400 amp services that do not require customer contribution for transformer upgrades or replacement.
These fees apply to a development in which Electric Metering will be on a single- family dwellings, with or without an ADU, and small commercial businesses basis..
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ELECTRIC SERVICE CONNECTION CHARGES
UTILITY RATE SCHEDULE E-15
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 0101-01-260
Supersedes Sheet No. E-15-2 dated 01-01-209-01-19 Sheet No.E-15-2 8 4
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(a) For a 250 volt maximum, 200 amp or less underground service $1,0403,940.00
(b) For a 250 volt maximum, 400 amp underground service ………………… $4,360.00 any connection requiring greater
capacity the fee shall be CPAU’s estimate of the installation cost or $1040, whichever is greater.
(c) For a 250 volt maximum, 200 amp max service from a rear easement..............................................................................................$2,330 (d)(c) For any rear easement connection requiring greater capacity or system upgrades, the fee shall be CPAU’s estimate of the installation cost or $2330, whichever is greater.
(2) Commercial/Industrial
These fees apply to commercial, industrial, and multi-family residential services. (a) For a 250 volt maximum, 200 amp or less service ...........................$1,420 (b) For any connection requiring greater capacity, the fee shall be CPAU’s estimate of the installation costs or $1420, whichever is greater. (B) On-site Distribution System Charges:
Where the customer is financially responsible for CPAU installations or will installof the underground conductors (primary or secondary), switches or transformers in and on facilities provided by the developer within the boundaries of a sub-division or other development, an on-site distribution system fee shall be charged, based on CPAU’s estimate of all applicable installation costs.
(C) Off-Site Distribution System Charges:
Where the customer is financially responsible for CPAU installations or will installof an Electric Distribution system, system extension, or system reinforcement outside the boundaries of a sub-division or other development to be served, an off-site distribution system fee shall apply, based on CPAU’s estimate of all applicable installation costs.
3. OVERHEAD SYSTEMS
Connection Charges shall apply for all new single-phase Services or Service upgrades exceeding 2400 amps or less.
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ELECTRIC SERVICE CONNECTION CHARGES
UTILITY RATE SCHEDULE E-15
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 0101-01-260
Supersedes Sheet No. E-15-3 dated 01-01-209-01-19 Sheet No.E-15-3 8 4
7 9
(A) Overhead Service Connection Replacement Charges:
(1) Residential or Commercial – Single Familyservice, single phase, for 200 amps (or less) and 400 amps services that do not require customer contribution to transformer upgrades or replacement.
These fees apply to single-family dwellings, with or without ADU, or small commercial businesses. development in which Electric Metering will be on a single-family service basis.
(a) For a 250 volt maximum, 200 amp or less, 3 and 4 wire services, single phase overhead service of
(a) 80 feet in length maximum services $1,0402,910.00
(b) For a 250 volt maximum, 4200 amp or less, 3 and 4 wire single phase overhead services,
(c) 80 feet in length maximum services, mid-span connection ……………….. $2,3703,540.00
(b)
(d)(c) For all other connections, the fee
shall be CPAU’s estimate of the installation cost or $1040, whichever is greater.
(a) For a 250 volt maximum, 200 amp or less, 3 and 4 wire services, 100 feet in length maximum service ..............................................$1,440 (b) For all others the fee shall be CPAU’s estimate of the installation cost or $1440, whichever is greater.
(2) Charges for replacement or upgraded Overhead Services not described above, shall be based on CPAU’s estimate of applicable costs.
4. TEMPORARY SERVICE
(A) Overhead Temporary Service Charges:
(1) For a 250 volt, 200 amp or less, 3 wire service, within 50 feet if a suitable secondary system ……………………………………………..
$1,1901,040.00
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ELECTRIC SERVICE CONNECTION CHARGES
UTILITY RATE SCHEDULE E-15
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 0101-01-260
Supersedes Sheet No. E-15-4 dated 01-01-209-01-19 Sheet No.E-15-4 8 4
7 9
(2) Fees for a Temporary Service of greater length and capacity or voltage shall be based on CPAU’s estimate of all applicable installation and removal costs, or $1,040.001,190, whichever is greater.
(B) Underground Temporary Service Charges:
(1) For a 250 volt, 200 amp or less, 3-wire maximum service, within 100 feet of suitable secondary system and service box. Customer is responsible for all substructure. …………………………………………………$1,1901,060.00
(2) If a suitable secondary system and/or service box is not available at the property, the Customer will be responsible for all cost necessary to extend or rearrange the system to allow for the temporary electric service. (3) Fees for a Temporary Service of greater length and capacity or Voltage shall be based on CPAU’s estimate of the installation and removal costs, or $11901,060.00, whichever is greater.
5. GENERATOR INTERCONNECTION
CPAU shall charge a fee for evaluation of Generator (Photo Voltaic (PV), Energy Storage System (ESS)) Interconnection Applications performed pursuant to Rule and Regulation
27. (A) Advance Engineering Fees:
(1) Net Energy Metering p or pProjects with a size less than or equal to 10kW in capacity……………………………………………………………..$520.00
(1) Net Energy Metering projects or projects with a size less than or equal to 10 kW taking Service under the Net Energy Metering Successor Program.........$0 (2) All Projects which are greater than 10 kW and less than 100 kW in capacity .......................................................................................................$8401,140.00 (3) All Projects which are greater than or equal to 100 kW and less than 500 kW in capacity .....................................................................................$5,5507,560.00 (4) All Projects which are 500 kW or greater in capacity ..........$10,70014,500.00 (B) Supplemental and Detailed Studies:
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ELECTRIC SERVICE CONNECTION CHARGES
UTILITY RATE SCHEDULE E-15
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 0101-01-260
Supersedes Sheet No. E-15-5 dated 01-01-209-01-19 Sheet No.E-15-5 8 4
7 9
Net Energy Metering projects or projects with a size less than or equal to 10 kW taking Service under the Net Energy Metering Successor Program)$0(1) Supplemental and Detailed Study fees for all Net Energy Metering Projects requiring additional study per Rule and Regulation 27 not covered under section 4(B)(1) shall be based on CPAU’s estimate of applicable costs. (C) Interconnection Review Charges:
Net Energy Metering projects or projects taking Service under the Net Energy Metering Successor Program) .........................................................................$0 (1) All projects less than or equal to 10 kW not under section 4(C)(1)…. ..........................................................................................................$152520.00 (2) Interconnection fees for all Projects not covered under section 4(C)(1) or 4(C)(2) will be based on CPAU’s estimate of applicable costs.
6. PALO ALTO CLEAN LOCAL ENERGY ACCESSIBLE NOW PROGRAM
Meter maintenance and administrative service Charge for Generators participating in the Palo Alto Clean Local Energy Accessible Now (CLEAN) Program ..............$34.73207.00 DG. CREDITS:
For single family or multi-family Service Connections only, if the installation of Electric Vehicle Supply Equipment will require a capacity upgrade of Electric Distribution System Equipment, a connection fee credit may be available under the City’s Low Carbon Fuel Standard (“LCFS”) Program. The credit shall be equal to the estimated cost of the upgrade of electric distribution system equipment, and may not exceed $3,000 per connection. When Service Connection is triggered by EVSE installation, the connection fee shall be the greater of a) the estimate of the installation costs minus the LCFS credit, or b) the minimum fee shown in section C.2(A)(1) (for single family Service Connections) or C.2(A)(2) (for multi-family Service Connections). The availability of the credit is subject to LCFS Program rules and funding availability.
Rebates or credits may be available to defray electric service connection chargers, if the service upgrade is a result of higher electrical loads caused by electric vehicle charging. For additional information visit: https://www.paloalto.gov/Departments/Utilities or call 650-329-2241 Item 4
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ELECTRIC SERVICE CONNECTION CHARGES
UTILITY RATE SCHEDULE E-15
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 0101-01-260
Supersedes Sheet No. E-15-6 dated 01-01-209-01-19 Sheet No.E-15-6 8 4
7 9
EH. NOTES:
1. These Charges apply to all vacant land except where the Charges are recorded as previously paid.
2. CPAU can generally provide service availability from 30 to 45 days after all Charges are paid except when long lead-time equipment or materials are required. Consult the City for estimated lead-times.
3. All fees and minimum charges are subject to DGS California Construction Cost Index (CCCI) adjustments, to be applied annually effective on July 1.
3.4. CPAU is not responsible for delays in Service connection caused by conditions beyond its control, including, but not limited to, delays in the arrival of equipment such as transformers, switches and cable.
{End}
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GAS SERVICE CONNECTION CHARGES
UTILITY RATE SCHEDULE G-5
Sheet No. G-5-1
Effective 09-01-201901-01-2026
Supersedes Sheet No.G-5-1
dated 05-01-201509-01-2019
CITY OF PALO ALTO UTILITIES
Issued by the City Council
A. TERRITORY:
This Rate Schedule applies everywhere the City of Palo Alto provides Gas Service.
B. CHARGES:
Customer must pay plan review and connection fees in full prior to scheduling any Utility construction work or inspections. CPAU will mail send invoices to the responsible party listed on the Service application. All invoices are valid for 90 days from date of issuance. Once CPAU receives full payment, determines that all applicable Service requirements are met, and the Utilities Inspector determines that the project is ready for utility installation, CPAU Water , - Gas, and - Wastewater Utilities Operations (WGW Operations) staff will schedule the project for construction.
Depending on material availability and scheduling constraints, Utility Services are generally installed 60 to 90 days later. While CPAU staff makes best efforts to install Services as planned, construction delays may occur as a result of unforeseen conditions. Contact WGW Operations for scheduling lead-time.
Regular CPAU work hours are 8 AM to 5 PM, Monday through Friday, excluding legal City holidays. Any work the City deems necessary to be performed during non- regular work hours shall be charged at the overtime rate per Utility Rate Schedule Rate C -1. Conditions in which work may need to be performed during non- regular work hours may include, but are not limited to, performing work on arterial streets, in business districts, in front of major commercial establishments, and near schools.
1. COMMERCIAL PLAN REVIEW:
New commercial building or remodeling permit valuation greater than $200,000 ............................................................................................................................................$2,557.003 ,536.00
New subdivision residential unit
....................................................................................................................................... $379.00520.0 0/unit
System extension of 2-inch polyethylene (PE) Gas main
............................................................................................................................................. $13.0020. 00/ft
2. RESIDENTIAL PLAN REVIEW:
New single-family residential (SFR) building or SFR remodeling permit valuation greater than $100,000
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GAS SERVICE CONNECTION CHARGES
UTILITY RATE SCHEDULE G-5
Sheet No. G-5-2
Effective 09-01-201901-01-2026
Supersedes Sheet No.G-5-2
dated 05-01-201509-01-2019
CITY OF PALO ALTO UTILITIES
Issued by the City Council
...............................................................................................................................................$924.001 ,270.00
3. DISTRIBUTION SYSTEM EXTENSIONDESIGN:
Charge per linear footGas system design ......................................................................... $205.00 /ftUtility Estimate
4. DISTRIBUTION SYSTEM EXTENSION:
Charge per linear foot ....................................................................................................... $350.00/ft
4.5. CONNECTION FOR SERVICE INSTALLED ON EXISTING MAIN:
Service connection Charges include up to 40 feet of Service Line installation inside the property line. Service Lines will be installed along the shortest most practical route, as determined by the Utilities Department (perpendicular from the Gas main in the adjoining street, alley, lane road, or easement to the nearest suitable Meter location at the building or structure).
Size
1- inch directionally bored connection
........................................................................................................................................$5,892.008 ,636.00
2- inch directionally bored connection
........................................................................................................................................$6,999.001 3,439.00
Excess length Charge for directionally bored connection .......................................................................................................................................... $52.0069.0 0 /ft*
1- or 2-inch trenched connection
.......................................................................................................................................$7,126.008 ,500.00
2- inch main installation in contractor-provided trench ...................................................... $68.00245 /ft
Connections above 2-inches ..................................................................................... Utility Estimate 1- or 2-inch excess flow valve (EFV) installation on PE service ..................................................................................................................................... $2,740.006 ,713.00
*Excess Length Charge: An additional Charge ($52.0069.00 /foot) will apply to an extension Item 4
Attachment C - Rate
Schedule G-
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GAS SERVICE CONNECTION CHARGES
UTILITY RATE SCHEDULE G-5
Sheet No. G-5-3
Effective 09-01-201901-01-2026
Supersedes Sheet No.G-5-3
dated 05-01-201509-01-2019
CITY OF PALO ALTO UTILITIES
Issued by the City Council
greater than 40 feet from the property line closest to the street, to the Gas Meter location, measured along a line perpendicular to the street property line.
Replacement of Service connections made necessary because of ordinary wear and deterioration will be made without Charge. However, if the need for replacement arises due to meeting an increase in load or relocation of a non- polyethylene (PE) pipe Service, the installation of the Service will be charged as a new Service.
5.6.METERS:
250 Cubic Foot Per Hour (CFH) House Meter
............................................................................................................................................$1,012.001 ,097.00
250 CFH Curb Meter
............................................................................................................................................$2,124.002 ,601.00
400 CFH House Meter
............................................................................................................................................$1,191.001 ,457.00
400 CFH Curb Meter
............................................................................................................................................$2,331.002 ,782.00
630 CFH House Meter
............................................................................................................................................$1,602.001 ,969.00
630 CFH Curb Meter
............................................................................................................................................$2,657.002 ,796.00
800 CFH Diaphragm – Commercial House Meter
............................................................................................................................................$1,772.002 ,782.00
1000 CFH Diaphragm - Commercial House Meter
............................................................................................................................................$2,213.003 ,217.00
1500 CFH Rotary-Commercial House Meter
............................................................................................................................................$2,894.003 ,202.00
2000 CFH Rotary-Commercial
............................................................................................................................................$3,924.004 ,165.00
Item 4
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Schedule G-
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GAS SERVICE CONNECTION CHARGES
UTILITY RATE SCHEDULE G-5
Sheet No. G-5-4
Effective 09-01-201901-01-2026
Supersedes Sheet No.G-5-4
dated 05-01-201509-01-2019
CITY OF PALO ALTO UTILITIES
Issued by the City Council
3000 CFH Rotary-Commercial
............................................................................................................................................$3,966.004 ,278.00
5000 CFH Rotary-Commercial
............................................................................................................................................$4,469.004 ,827.00
7000 CFH Rotary-Commercial
............................................................................................................................................$5,174.005 ,594.00
11000 CFH Rotary-Commercial
..........................................................................................................................................$12,639.001 5,898.00
16000 CFH Rotary-Commercial
..........................................................................................................................................$13,980.001 8,314.00
23000 CFH Rotary-Commercial
..........................................................................................................................................$16,628.00 Utility Estimate
Electronic Volume Corrector System ................................................................................Utility Estimate$5,808.00
Automatic Meter Reading (AMR) Encoder Receiver Transmitter – Diaphragm Meter ...............................................................................................................................................$205.002
32.00 AMR Encoder Receiver Transmitter – Rotary Meter
...............................................................................................................................................$269.003
24.00 Vent line for Gas Regulator
...............................................................................................................................................$385.004
54.00 2- inch bollard (to protect Gas Meter) installation fee ...........................................................................................................................................$394.005
25.00 4-inch bollard (to protect Gas Meter) installation fee ...............................................................................................................................................$564.008
23.00 Other Meter sizes ..................................................................................................... Utility Estimate
6.7.ADDITIONAL METERS ON CONNECTION:
These Charges apply to Meters up to 630 CFH. Charges for Meters above 630 CFH will be Item 4
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GAS SERVICE CONNECTION CHARGES
UTILITY RATE SCHEDULE G-5
Sheet No. G-5-5
Effective 09-01-201901-01-2026
Supersedes Sheet No.G-5-5
dated 05-01-201509-01-2019
CITY OF PALO ALTO UTILITIES
Issued by the City Council
based on the Utilities Department’s estimate.
Per Meter
With new connection
...............................................................................................................................................$578.006
48.00 On existing Metered connection
............................................................................................................................................$1,412.001 ,585.00
7.8.SERVICE RELOCATION:
Service riser relocation
............................................................................................................................................$1,920.002 ,791.00
Service riser relocations will only be performed on 1- inch and larger polyethylene (PE) pipe Service Lines that have been approved by Utilities Department. All Service Lines made of non- PE materials must be replaced from the main to the Meter at the Charges listed in Section B(64) of this Rate Schedule.
Curb Meter- Riser relocation on existing 1- inch PE pipe ............................................................................................................................................$1,026.001 ,337.00
Curb Meter- New Service from main to house
............................................................................................................................................$2,946.003 ,887.00
8.9.RELOCATION OF FACILITIES:
Approved relocation of Service Lines and other facilities will be done at the cost of the Applicant. Payment of estimated costs is required before relocation work begins.
9.10. TAPPING THE GAS MAIN FOR CONTRACTOR-INSTALLED SERVICES:
Tap Gas main for 1- to 2-inch Service
............................................................................................................................................$1,799.002 ,290.00
Tap Gas main for 4- to 6-inch Service
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Schedule G-
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GAS SERVICE CONNECTION CHARGES
UTILITY RATE SCHEDULE G-5
Sheet No. G-5-6
Effective 09-01-201901-01-2026
Supersedes Sheet No.G-5-6
dated 05-01-201509-01-2019
CITY OF PALO ALTO UTILITIES
Issued by the City Council
............................................................................................................................................$2,505.002 ,864.00
11. ABANDONMENT OF GAS SERVICES:
1-inch to 2-inch Gas service abandonment ………………………………………………… $6,092
10.12. WORK PERFORMED BY OUTSIDE CONTRACTORS:
Engineering and inspection service Charges per Utility Rate Schedule C -1 will apply to utility work performed by outside contractors, which may be done only with the prior written approval of the Utilities Department.
C. NON-STANDARD CONDITIONS:
1. Any condition which, in the opinion of the Engineering Manager, Water -Gas-Wastewater, will result in a cost higher than the Charges set forth in Section B will be classified as non-standard.
The Charge for a non -standard installation will be based on the Engineering Manager's estimate of the total costs of all materials, labor, and other costs required to complete the installation.
2. In the event Gas Service to a Premise is requested and insufficient capacity exists to provide such Service, the Applicant shall bear the total cost for designing and enlarging the Distribution System to accommodate serving the Applicant. The Engineering Manager, Water -Gas- Wastewater, may require the Applicant to make arrangements for the design and construction of said expansion in accordance with applicable CPAU Rules and Regulations, standards and specifications. Alternatively, CPAU may elect for City staff or contractors to design and install such facilities at the Applicant's expense. Credit to the Applicant will be provided for any over sizing or extra facilities installed to meet Service demands above the specific capacity needs of the Applicant.
D. SPECIAL NOTES:
1. All fees and minimum charges are subject to DGS California Construction Cost Index (CCCI) adjustments, to be applied annually effective on July 1.
{End}
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WATER SERVICE CONNECTION CHARGES
UTILITY RATE SCHEDULE W-5
Sheet No. W-5-1
Effective 09-01-201901-01-2026
Supersedes Sheet No. W-5-1
dated 09-01-201905-01-2015
CITY OF PALO ALTO UTILITIES
Issued by the City Council
A. TERRITORY:
This Rate Schedule applies anywhere the City of Palo Alto provides Water Service.
B. CHARGES:
Customer must pay plan review and connection fees in full prior to scheduling any Utility construction work or inspections. The invoice will be mailed sent to the responsible party listed on the Service application. All Invoices are valid for 90 days from date of issuance. Once CPAU receives full payment, determines that all applicable Service requirements are met, and the Utilities Inspector determines that the project is ready for utility installation, CPAU Water, Gas, and Wastewater Utilities Operations (WGW Operations) staff will schedule the project for construction. Depending on material availability and scheduling constraints, Utility Services will be installed between 60 and 90 days.
While CPAU staff makes best efforts to install Services as planned, construction delays may occur as a result of unforeseen conditions. Contact WGW Operations for scheduling lead-time.
Regular CPAU work hours are 8 AM to 5 PM, Monday through Friday, excluding legal City holidays.
Any work the City deems necessary to be performed during non-regular work hours shall be charged at the overtime rate per Utility Rate Schedule Rate C-1. These conditions include but are not limited to performing work on arterial streets, in business districts, in front of major commercial establishments, and near schools.
1. PLAN REVIEW:
New single family residence or residential remodel ………………………………………… $635.00
New commercial building or remodeling permit valuation greater than $200,000 ...........… $3,369.004,653.00
New subdivision residential unit
……………………………………………………...$378.00526.00/unit
System extension of 8-inch high-density polyethylene (HDPE) Water main ............................................................................................................................................. $13.0019. 00/ft
2. DESIGN:
Water System Design ………………………………………………………………Utility Estimate
2.3. DISTRIBUTION SYSTEM EXTENSION:
City standard 8-inch main, Charge per linear foot
...............................................................................................................................................$252.003
83.00 Item 4
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WATER SERVICE CONNECTION CHARGES
UTILITY RATE SCHEDULE W-5
Sheet No. W-5-2
Effective 09-01-201901-01-2026
Supersedes Sheet No. W-5-2
dated 09-01-201905-01-2015
CITY OF PALO ALTO UTILITIES
Issued by the City Council
3.4. SERVICE CONNECTIONS:
Water Service: Domestic, Irrigation, and Fire
Size Amount
1-inch copper connection ………………………………………………………………$10,773.00 2-inch copper connection ………………………………………………………………$11,965.00
2-inch connection
........................................................................................................................................... $7,671.001 2,236.00
4-inch connection
........................................................................................................................................... $9,932.001 5,030.00
6-inch connection
..........................................................................................................................................$11,274.001 7,.920.00
8-inch connection
..........................................................................................................................................$13,170.001 9,482.00
10-inch connection
..........................................................................................................................................$14,669.002 1,826.00
Replacement of Service connection made necessary because of ordinary wear and deterioration will be made without Charge. Replacement due to inadequacy because of additional demand or load will be charged as a new Service connection.
Additional Domestic or Irrigation Services
For Service installations connecting to a pre-existing Service or installations of a new, larger Service.
2-inch connection
............................................................................................................................................$3,523.005 ,626.00
4-inch connection
............................................................................................................................................$4,663.007 ,956.00
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Schedule W-
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WATER SERVICE CONNECTION CHARGES
UTILITY RATE SCHEDULE W-5
Sheet No. W-5-3
Effective 09-01-201901-01-2026
Supersedes Sheet No. W-5-3
dated 09-01-201905-01-2015
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Combination Domestic or Irrigation Water Service and Fire Service
Combination Water Service connections require CPAU approval. If approved, connection Charges for both the fire Service and the domestic or irrigation Service connection will apply.
Master Water Service
Connections that serve domestic Water Service and fire protection through a detector Meter require CPAU approval. Applicable Charges for master Water Service connections will be based on CPAU’s estimate of the total costs, including materials, labor, metering, and all other costs required for the installation.
4.5. METERS:
5/8-inch x 3/4-inch Meter
...............................................................................................................................................$795.001 ,193.00
1- inch Meter
........................................................................................................................................$1,002.001 ,318.00
1 ½-inch Meter
............................................................................................................................................$1,593.002 ,509.00
2- inch Meter
........................................................................................................................................$1,945.002 ,726.00
3-inch Meter
…………………………………………………………………………………$4,478.00
4-inch Meter
............................................................................................................................................$6,561.007 ,259.00
6-inch Meter
............................................................................................................................................$9,324.009 ,805.00
Automatic Meter Reading - AMR Encoder Receiver Transmitter ............................................................................................................................................... $108.002
16.00 Item 4
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WATER SERVICE CONNECTION CHARGES
UTILITY RATE SCHEDULE W-5
Sheet No. W-5-4
Effective 09-01-201901-01-2026
Supersedes Sheet No. W-5-4
dated 09-01-201905-01-2015
CITY OF PALO ALTO UTILITIES
Issued by the City Council
5.6. CAPACITY CHARGES:
Capacity Charges apply to new Utility Services and added demand on existing Services.
Domestic:
5/8-inch x 3/4-inch Meter ...................................................................................................$3,750.00 1- inch Meter .......................................................................................................................$6,250.00 1 ½-inch Meter .................................................................................................................$18,850.00 2- inch Meter .....................................................................................................................$31,250.00 4-inch Meter and larger ........................................................ By estimate at $125/fixture unit (FU)*
*These charges vary and are based on the total number of fixture units (FU) estimated for the water supply demand. Water supply fixture units are estimated per California Uniform Plumbing Code.
Fire Service Capacity Charges:
2-inch .....................................................................................................................................$750.00 4-inch ..................................................................................................................................$8,425.00 6-inch ................................................................................................................................$18,250.00 8-inch ................................................................................................................................$30,950.00 10-inch ..............................................................................................................................$48,110.00
If a Customer is upgrading the capacity of an existing Service, then the capacity Charge will be the difference between the new Service size and the existing Service size.
6.7. ADDITIONAL METERS:
With new connection, up to 2 -inch
............................................................................................................................................$1,381.001 ,823.00
With existing connection, up to 2-inch …………………………………………………….2,463 2 Meter Manifold on 2” PE or 1” CU service
...............................................................................................................................................$868.001 ,037.00
7.8. RELOCATION OF FACILITIES:
The costs of CPAU -approved relocation of Services, hydrants, or other facilities will be the responsibility of the Applicant. Payment of estimated cost is required before relocation work begins.
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WATER SERVICE CONNECTION CHARGES
UTILITY RATE SCHEDULE W-5
Sheet No. W-5-5
Effective 09-01-201901-01-2026
Supersedes Sheet No. W-5-5
dated 09-01-201905-01-2015
CITY OF PALO ALTO UTILITIES
Issued by the City Council
8.9. FIRE HYDRANT:
(A) Install new hydrant without lateral
...................................................................................................................................$3,542.005 ,135.00
(B) Install new hydrant with lateral
.................................................................................................................................$15,285.002 4,341.00
(C) Relocation behind curb (up to 5 feet)
...................................................................................................................................$8,585.001 3,518.00
Relocations more than 5 feet will require a new lateral and the existing lateral will be disconnected and abandoned at the main.
9.10. TAPPING THE WATER MAIN FOR CONTRACTOR-INSTALLED SERVICES:
(A) Tap Water main for 2-inch Service
...................................................................................................................................$1,929.002 ,435.00
(B) Tap Water main for 4-inch Service
...................................................................................................................................$2,539.003 ,137.00
(C) Tap Water main for 6-inch Service
...................................................................................................................................$3,852.005 ,170.00
(D) Tap Water main for 8-inch Service
...................................................................................................................................$5,244.006 ,959.00
10.11. ABANDONMENT:
(A) Small Service 2-inch and less
...................................................................................................................................$3,341.006 ,593.00
(B) Large Service more than 2-inch
...................................................................................................................................$4,439.008 ,991.00
11.12. WORK PERFORMED BY OUTSIDE CONTRACTORS:
Engineering and inspection service Charges per Utility Rate Schedule C -1 will apply to utility work performed by outside contractors, which may be done only with the prior written approval Item 4
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WATER SERVICE CONNECTION CHARGES
UTILITY RATE SCHEDULE W-5
Sheet No. W-5-6
Effective 09-01-201901-01-2026
Supersedes Sheet No. W-5-6
dated 09-01-201905-01-2015
CITY OF PALO ALTO UTILITIES
Issued by the City Council
of the Utilities Department.
(A) Engineering and inspection for new 2-inch Service
...................................................................................................................................$1,923.002 ,631.00
(B) Engineering and inspection for new 2-inch Service connected to larger Service ...................................................................................................................................$1,282.001 ,754.00
(C) Engineering and inspection for new 4-inch to 8-inch Service ...................................................................................................................................$2,885.003 ,946.00
(D) Engineering and inspection for new hydrant and Service ...................................................................................................................................$2,885.003 ,946.00
(E) Engineering and inspection for abandonment of 2-inch and smaller Service ......................................................................................................................................$962.001 ,315.00
(F) Engineering and inspection for abandonment of 3-inch and larger Service ...................................................................................................................................$1,282.001 ,754.00
(G) Engineering and inspection for new 8-inch main (per linear foot) ........................................................................................................................................$32.004
4.00 C. NON-STANDARD CONDITIONS:
1. Any condition which, in the opinion of the Engineering Manager, Water -Gas-Wastewater, will result in a cost higher than the Charges set forth in Section B will be classified as non-standard.
The Charge for a non- standard installation will be based on the E ngineering Manager’s estimate of the total costs of all materials, labor, and other costs required to complete the installation.
2. If CPAU determines that insufficient capacity exists to provide Water Service to an Applicant, Applicant will be responsible for the CPAU’s costs to complete a hydraulic system capacity study to determine whether Distribution System upgrades will be required to serve the Applicant, as well the costs of completing the upgrades deemed necessary by CPAU.
D. SPECIAL NOTES:
1. All fees and minimum charges are subject to DGS California Construction Cost Index (CCCI) adjustments, to be applied annually effective on July 1.
{End}
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Schedule W-
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WASTEWATER SERVICE CONNECTION CHARGES
UTILITY RATE SCHEDULE S-5
Sheet No. S-5-1
Effective 09-01-2019 01-01-2026
Supersedes Sheet No. S-5-1 dated
05-01-201509-01-2019
CITY OF PALO ALTO UTILITIES
Issued by the City Council
A. TERRITORY:
This Rate Schedule applies anywhere the City of Palo Alto provides Wastewater Service.
B. CHARGES:
Customer must pay plan review and connection fees in full prior to scheduling any Utility construction work or inspections. CPAU will mail send invoices to the responsible party listed on the Service application. All Invoices are valid for 90 days from date of issuance. Once CPAU receives full payment, determines that all applicable Service requirements are met, and the Utilities Inspector determines that the project is ready for utility installation. CPAU Water, Gas, and Wastewater Utilities Operations (WGW Operations) staff will schedule the project for construction. Depending on material availability and scheduling constraints, Utility Services are generally installed between 60 and 90 days later. While CPAU staff makes best efforts to install Services as planned, construction delays may occur as a result of unforeseen conditions. Contact WGW Operations for scheduling lead- time.
Regular CPAU work hours are 8 AM to 5 PM, Monday through Friday, excluding legal City holidays.
Any work the City deems necessary to be performed during non-regular work hours shall be charged at the overtime rate per Utility Rate Schedule Rate C -1. Conditions in which work may need to be performed during non- regular work hours may include, but are not limited to, performing work on arterial streets, in business districts, in front of major commercial establishments, and near schools.
1. PLAN REVIEW:
New single family residential building or remodel ………………………………………... $635.00
New commercial building or remodeling permit valuation greater than $200,000 .........................................................................................................................................$2,547.003 ,520.00
New subdivision residential unit
.................................................................................................................................... $172.00232.0 0/unit
System extension 8-inch HDPE Wastewater main
.......................................................................................................................................... $24.0034. 00/ft
2. DESIGN:
Wastewater system design fee …………………………………………………… Utility Estimate
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WASTEWATER SERVICE CONNECTION CHARGES
UTILITY RATE SCHEDULE S-5
Sheet No. S-5-2
Effective 09-01-2019 01-01-2026
Supersedes Sheet No. S-5-2 dated
05-01-201509-01-2019
CITY OF PALO ALTO UTILITIES
Issued by the City Council
2.3. COLLECTION SYSTEM EXTENSIONS:
City standard 8-inch main, Charge per linear foot
....................................................................................................................................... $248.00479 .00/ft
3.4. CONNECTIONS:
4-inch connection, depth at 6 feet and below
.........................................................................................................................................$8,559.001 5,615.00
6-inch connection, depth at 6 feet and below
.........................................................................................................................................$9,846.001 7,478.00
4-inch lateral, depth between 6 feet and 10 feet
.......................................................................................................................................$11,456.002 1,858.00
6-inch lateral, depth between 6 feet and 10 feet
.......................................................................................................................................$12,186.002 2,938.00
Rehabilitation of existing 4” to 6” lateral by pipe bursting .........................................................................................................................................$5,861.009 ,694.00
Connections of sewer laterals over 25 feet in length will be charged for the additional footage at a rate of $ 106206/linear foot for 4 -inch connections and $110213/linear foot for 6 -inch connections.
Special arrangements must be made for connections larger than 6-inch. CPAU will estimate the cost which will serve as the basis for a Customer deposit. Upon receipt of this deposit CPAU will install the connection and the Customer will be responsible for the actual costs that exceed the deposit amount.
4.5. REPLACEMENT OR RELOCATION OF FACILITIES:
Replacement of Lateral connections made necessary because of ordinary wear and deterioration will be made without Charge. Replacement due to inadequacy because of increased demand or load, relocation due to location will be charged as a new connection.
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WASTEWATER SERVICE CONNECTION CHARGES
UTILITY RATE SCHEDULE S-5
Sheet No. S-5-3
Effective 09-01-2019 01-01-2026
Supersedes Sheet No. S-5-3 dated
05-01-201509-01-2019
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Costs associated with CPAU -approved relocation of lateral, and other facilities are the responsibility of the Applicant. Payment of estimated costs is required before relocation work begins.
5.6. CAPACITY CHARGES:
4-inch connection with 5/8-inch Water Meter (WM) .....................................................$5,250.00 4-inch connection with 1-inch WM ..............................................................................$10,500.00 4- or 6-inch connection with 1-1/2-inch WM ...............................................................$31,668.00 6-inch connection with 2-inch WM ..............................................................................$52,500.00 6-inch and larger connection with 4-inch or larger WM ........................ By estimate at $210/FU*
* FU = fixture unit (1 FU = 15 gallons per day).
Capacity upgrades to an existing Lateral will be calculated as the difference between the new Lateral size and the existing Lateral size.
6.7. INSTALL AND CORE DRILL MANHOLE:
(A) Depth, 6 feet or less
..............................................................................................................................$12,952.001 8,404.00
(B) Depth, greater than 6 feet
..............................................................................................................................$16,346.002 4,812.00
(C) Core Drill and Connection Tap to Manhole (Shallow) ……………………………... $5,488.00
(D) Core Drill and Connection Tap to Manhole (Deep) ………………………………… $6,435.00
7.8. ABANDONMENT AND DEMOLITION:
(A) Sewer Lateral
................................................................................................................................$3,261.005 ,142.00
8.9. INSTALL SEWER CLEANOUT
........................................................................................................................................$2,523.004 ,240.00
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WASTEWATER SERVICE CONNECTION CHARGES
UTILITY RATE SCHEDULE S-5
Sheet No. S-5-4
Effective 09-01-2019 01-01-2026
Supersedes Sheet No. S-5-4 dated
05-01-201509-01-2019
CITY OF PALO ALTO UTILITIES
Issued by the City Council
9.10. WORK PERFORMED BY OUTSIDE CONTRACTORS:
Engineering and inspection service Charges per Utility Rate Schedule C -1 will apply to utility work performed by outside contractors, which may be done only with the prior written approval of the Utilities Department.
(A) Engineering and inspection for new lateral
................................................................................................................................$2,564.003 ,508.00
(B) Engineering and inspection for new main (per lineal foot) .....................................................................................................................................$40.005
5.00 (C) Engineering and inspection for new manhole
................................................................................................................................$3,205.004 ,385.00
(D) Engineering and inspection for lateral abandonment
................................................................................................................................$1,603.002 ,192.00
C. NON-STANDARD CONDITIONS
1. Any condition which, in the opinion of the Engineering Manager, Water -Gas-Wastewater, will result in a cost higher than the Charges set forth in Section B will be classified as non - standard. The Charge for a non -standard installation will be based on the Engineering Manager’s estimate of the total costs of all materials, labor, and other costs required to complete the installation.
2. In the event Wastewater Service to a Premise is requested and insufficient capacity exists to provide such Service, the Applicant shall bear the total cost for flow monitoring the existing main to determine remaining capacity, design of new sewer main and construction cost for enlarging the collection system to accommodate serving the Applicant. The Engineering Manager, Water-Gas-Wastewater may require the Applicant to make arrangements for the design and construction of said expansion in accordance with applicable CPAU Rules and Regulations, standards and specifications. Alternatively, CPAU may elect for City staff or contractors to design and install such facilities at the Applicant’s expense.
3. PUMPING PLANTS:
If the development requires a pumping facility to drain into the City’s Wastewater collection system, the developer is responsible for the cost of construction of the pumping plant and the on- going plant operation and maintenance costs.
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WASTEWATER SERVICE CONNECTION CHARGES
UTILITY RATE SCHEDULE S-5
Sheet No. S-5-5
Effective 09-01-2019 01-01-2026
Supersedes Sheet No. S-5-5 dated
05-01-201509-01-2019
CITY OF PALO ALTO UTILITIES
Issued by the City Council
D. SPECIAL NOTES:
1. All fees and minimum charges are subject to DGS California Construction Cost Index (CCCI) adjustments, to be applied annually effective on July 1.
{End}
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TYPE OF SERVICE SIZE WORK DESCRIPTION UNITS UNIT MEASURE
EXISTING CONNECTION
CHARGE 2019
RECOMMENDED CONNECTION
CHARGE
PERCENT
INCREASE
PLAN REV FEES DESIGN WATER SYSTEM DESIGN 1 HR $195.00 By Estimate By Estimate PLAN REV FEES NEW SUBDIVISION EACH SFR WATER ONLY 1 EA $378.00 $516 31% PLAN REV FEES NEW SFR OR RES REMODEL 1 EA NEW $635 NEW
PLAN REV FEES NEW COMMERCIAL BLDG OR COMM REMODEL WATER, GAS, SEWER1 EA $3,369.00 $4,653 32% PLAN REV FEES SYSTEM EXTENSION 8" HDPE WATER MAIN 1 FT $13.00 $19 38%
EXISTING RECOMMENDED
TYPE OF SERVICE SIZE WORK UNITS UNIT CONNECTION CONNECTION PERCENT
DESCRIPTION MEASURE CHARGES CHARGE INCREASE
Includes Wages, Materials and
Trenching
MAIN 8" SYSTEM EXTENSION 8" HDPE WATER MAIN 1 FT $252.00 $383 52% DOMESTIC, IRR OR FIRE 2" NEW SERVICE CONNECTION (TRENCH) 1 EA $7,671.00 $12,236 60% DOMESTIC, IRR 1" 1" Non-Plastic Water Service 1 EA NEW $10,773 NEW DOMESTIC, IRR 2" 2" Non-Plastic Water Service 1 EA NEW $11,965 NEW DOMESTIC, IRR 4" NEW SERVICE CONNECTION 1 EA $9,932.00 $15,030 51% DOMESTIC, IRR 6" NEW SERVICE CONNECTION 1 EA $11,274.00 $17,920 59% DOMESTIC, IRR 8" NEW SERVICE CONNECTION 1 EA $13,170.00 $19,482 48% DOMESTIC, IRR 10" NEW SERVICE CONNECTION 1 EA $14,669.00 $21,826 49% FIRE INSTALL FIRE HYDRANT ONLY 1 EA $3,542.00 $5,135 45% FIRE 6" INSTALL FIRE HYDRANT & LATERAL 1 EA $15,285.00 $24,341 59% FIRE 6" FIRE HYDRANT RELOCATION 1 EA $8,585.00 $13,518 57% DOMESTIC/ IRRIGATION 2" ADD NEW SERVICE CONNECTING TO A LARGER SERVICE 1 EA $3,523.00 $5,626 60% DOMESTIC/IRRIGATION 4" ADD NEW SERVICE CONNECTING TO A LARGER SERVICE 1 EA $4,663.00 $7,956 71% DOMESTIC/ IRRIGATION 6" ADD NEW SERVICE CONNECTING TO A LARGER SERVICE 1 EA $6,462.00 $0 DELETE TAP WATER MAIN 2" TAP WATER MAIN FOR 2" SERVICE 1 EA $1,929.00 $2,435 26% TAP WATER MAIN 4" TAP WATER MAIN FOR 4" SERVICE 1 EA $2,539.00 $3,137 24% TAP WATER MAIN 6" TAP WATER MAIN FOR 6" SERVICE 1 EA $3,852.00 $5,170 34% TAP WATER MAIN 8" TAP WATER MAIN FOR 8" SERVICE 1 EA $5,244.00 $6,959 33% ADD METER 5/8" - 2" ADDITIONAL METER ON NEW CONNECTION 1 EA $1,381.00 $1,823 32% ADD METER 5/8" - 2" ADDITIONAL METER ON EXISTING CONNECTION 1 EA $2,117.00 $2,463 16% DOMESTIC 5/8"x3/4" METER CHARGE INSTALLATION 1 EA $795.00 $1,193 50% DOMESTIC 1" METER CHARGE INSTALLATION 1 EA $1,002.00 $1,318 32% DOMESTIC 1-1/2" METER CHARGE INSTALLATION 1 EA $1,593.00 $2,509 57% DOMESTIC 2" METER CHARGE INSTALLATION 1 EA $1,945.00 $2,726 40% DOMESTIC 3" METER CHARGE INSTALLATION 1 EA NEW $4,478 NEW DOMESTIC 4" METER CHARGE INSTALLATION 1 EA $6,561.00 $7,259 11% DOMESTIC 6" METER CHARGE INSTALLATION 1 EA $9,324.00 $9,805 5% DOMESTIC 2" 2 METER MANIFOLD INSTALLATION FOR 2" PE & 1" CU SERVICE1 EA $868.00 $1,037 19% ANY TYPE 8"-12" INSPECT & ENG FOR METERS PURCH & INSTALL BY OTHERS 24 MANHR $3,847.00 $5,261 37% ANY TYPE 3/4" - 2" SERVICE DEMOLITION 1 EA $3,341.00 $6,593 97% ANY TYPE 3" - 8" SERVICE DEMOLITION 1 EA $4,439.00 $8,991 103% ENGINEER & INSPECT 2" INSPECT & ENG NEW 2" DOM/IRR SVC INSTALLED BY OTHERS 12 MANHR $1,923.00 $2,631 37% ENGINEER & INSPECT 2" INSPECT & ENG 2" DOM/IRR SVC TO FIRE SVC INSTALLED BY OTHERS8 MANHR $1,282.00 $1,754 37% ENGINEER & INSPECT 4"-8" INSPECT & ENG FOR 4" OR LARGER SVC INSTALLED BY OTHERS18 MANHR $2,885.00 $3,946 37% ENGINEER & INSPECT 6" INSPECT & ENG NEW FIRE HYDRANT & LAT INSTALLED BY OTHERS18 MANHR $2,885.00 $3,946 37% ENGINEER & INSPECT 3/4" - 2" INSPECT & ENG ABAND UP TO 2" WATER SVC BY OTHERS 6 MANHR $962.00 $1,315 37% ENGINEER & INSPECT 3" - 8" INSPECT & ENG ABAND 3" & LARGER WATER SVC BY OTHERS 8 MANHR $1,282.00 $1,754 37% ENGINEER & INSPECT 8" INSPECT & ENGINEERING FOR NEW 8" MAIN INSTALLED BY OTHERS0.2 MANHR/FT $32.00 $44 37% ERT 5/8" - 2" AMI/ERT 1 EA $108.00 $216 100%
WATER SERVICE STANDARD CONNECTION FEES - UTILITY RATE SCHEDULE W-5 Item 4
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PLAN REV FEES DESIGN GAS SYSTEM DESIGN 1 HR $195.00 By Estimate NEW PLAN REV FEES NEW SFR OR RES REMODEL 1 EA $924.00 $1,270 37% PLAN REV FEES NEW SUBDIVISION EACH SFR GAS ONLY 1 EA $379.00 $520 37% PLAN REV FEES NEW COMMERCIAL BLDG OR COMM REMODEL WATER, GAS, SEWER1 EA $2,557.00 $3,536 38% PLAN REV FEES SYSTEM EXTENSION 2" PE GAS MAIN 1 FT $13.00 $20 51%
TYPE OF SERVICE SIZE WORK UNITS UNIT EXISTING CONNECTION RECOMMENDED PERCENT
DESCRIPTION MEASURE CHARGE CONNECTION INCREASE
CHARGE
Includes Wages, Materials and
Trenching
MAIN 2" GAS SYSTEM EXTENSION 1 FT $205.00 $350 71%
SERVICE BORING 1" NEW 1" SERVICE CONNECTION 1 EA $5,892.00 $8,636 47% SERVICE BORING 2" NEW 2" SERVICE CONNECTION 1 EA $6,999.00 $13,439 92% SERVICE BORING 1" or 2" ADDITIONAL PIPE INSTALLATION FOR NEW SERVICE 1 FT $52.00 $69 34% SERVICE INSTALL 2" 2" PE PIPE INSTALLATION IN CONTRACTOR PROVIDED TRENCH 1 FT $68.00 $245 260% SERVICE TRENCHING 1" OR 2" NEW SERVICE CONNECTION 1 EA $7,126.00 $8,500 19% SERVICE PE PIPE RISER RELOCATION 1 EA $1,920.00 $2,791 45% CURB METER SERVICE 1" CURB RISER RELOCATION ON EXIST. 1" PE PIPE 1 EA $1,026.00 $1,337 30% CURB METER SERVICE ½" - 1" CURB RISER RELOCATION ON SAME ALIGNMENT 1 EA $1,539.00 - DELETE CURB METER SERVICE ½" - 1" CURB RISER RELOCATION NEW SERVICE AND ALIGNMENT 1 EA $2,946.00 $3,887 32% TAP MAIN 1"-2" TAP MAIN FOR CONTRACTOR INSTALLED SERVICE 1 EA $1,799.00 $2,290 27% TAP MAIN 4"-6" TAP MAIN FOR CONTRACTOR INSTALLED SERVICE 1 EA $2,505.00 $2,864 14% ADD METER UP TO 630 ADDITIONAL METER WITH NEW SERVICE CONNECTION 1 EA $578.00 $648 12% ADD METER UP TO 630 ADDITIONAL METER ON EXISTING SERVICE CONNECTION 1 EA $1,412.00 $1,585 12% METER - REGULATOR 250 CFH METER CHARGE INSTALLATION 1 EA $1,012.00 $1,097 8% METER - REGULATOR 400 CFH METER CHARGE INSTALLATION 1 EA $1,191.00 $1,457 22% METER - REGULATOR 630 CFH METER CHARGE INSTALLATION 1 EA $1,602.00 $1,969 23% METER - REGULATOR 800 CFH METER CHARGE INSTALLATION 1 EA $1,772.00 $2,782 57% METER - REGULATOR 1000 CFH METER CHARGE INSTALLATION 1 EA $2,213.00 $3,217 45% CURB METER 250 CFH METER CHARGE CURB INSTALLATION 1 EA $2,124.00 $2,601 22% CURB METER 400 CFH METER CHARGE CURB INSTALLATION 1 EA $2,331.00 $2,796 20% CURB METER 630 CFH METER CHARGE CURB INSTALLATION 1 EA $2,657.00 $3,151 19% METER - COMMERCIAL 1500 CFH METER CHARGE INSTALLATION 1 EA $2,894.00 $3,220 11% METER - COMMERCIAL 2000 CFH METER CHARGE INSTALLATION 1 EA $3,924.00 $4,182 7% METER - COMMERCIAL 3000 CFH METER CHARGE INSTALLATION 1 EA $3,966.00 $4,295 8% METER - COMMERCIAL 5000 CFH METER CHARGE INSTALLATION 1 EA $4,469.00 $4,844 8% METER - COMMERCIAL 7000 CFH METER CHARGE INSTALLATION 1 EA $5,174.00 $5,594 8% METER - COMMERCIAL 11,000 CFH METER CHARGE INSTALLATION 1 EA $12,639.00 $15,898 26% METER - COMMERCIAL 16,000 CFH METER CHARGE INSTALLATION 1 EA $13,980.00 $18,314 31% METER - COMMERCIAL 23,000 CFH METER CHARGE INSTALLATION 1 EA $16,628.00 By Estimate By Estimate EVC COMMERCIAL ELECTRONIC VOLUME CORRECTOR SYSTEM 1 EA $5,808.00 By Estimate By Estimate AMR ERT DIAPHR METERUP TO 1000 ERT AMI INSTALLATION 1 EA $205.00 $232 13% AMR ERT ROTARY METEROVER 1500 ERT AMI INSTALLATION 1 EA $269.00 $324 21% VENT LINE FOR REG 3/4" VENT LINE INSTALLATION 1 EA $385.00 $454 18% 2" BOLLARD 2" BOLLARD INSTALLATION 1 EA $394.00 $525 33% 4" BOLLARD 4" BOLLARD INSTALLATION 1 EA $564.00 $823 46% EFV INSTALLATION 1"-2" EFV INSTALLATION ON PE SERVICE 1 EA $2,740.00 $6,713 145% SERVICE REMOVAL 1"-2" 1"-2" GAS SERIVCE DEMOLITION 1 EA NEW $6,533 NEW GAS SERVICE STANDARD CONNECTION FEES - UTILITY RATE SCHEDULE G-5 Item 4
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PLAN REV FEES DESIGN SEWER SYSTEM DESIGN 1 HR $195.00 By Estimate By Estimate PLAN REV FEES NEW SFR OR RES REMODEL 1 EA NEW $635 NEW
PLAN REV FEES NEW SUBDIVISION EACH SFR SEWER ONLY 1 EA $172.00 $232 35% PLAN REV FEES NEW COMMERCIAL BLDG OR COMM REMODEL WATER, GAS, SEWER 1 EA $2,547.00 $3,520 38% PLAN REV FEES SYSTEM EXTENSION 8" HDPE WASTEWATER MAIN 1 FT $24.00 $34 43%
TYPE OF SERVICE SIZE WORK UNITS UNIT RECOMMENDED PERCENT
DESCRIPTION MEASURE CONNECTION INCREASE
CHARGE
Includes Wages, Materials and
Trenching
MAIN < 8' 8" COLLECTION SYSTEM EXTENSION 1 FT $248.00 $479 93% LATERAL DEPTH < 6' 4" Shallow NEW LATERAL CONNECTION 1 EA $8,559.00 $15,615 82% LATERAL DEPTH < 6' 6" Shallow NEW LATERAL CONNECTION 1 EA $9,846.00 $17,478 78% LATERAL DEPTH > 6' 4" Deep NEW LATERAL CONNECTION 1 EA $11,456.00 $21,858 91% LATERAL DEPTH > 6' 6" Deep NEW LATERAL CONNECTION 1 EA $12,186.00 $22,938 88% LATERAL PIPE BURST 4" OR 6" PB REHABILITATE EXISTING LATERAL 1 EA $5,861.00 $9,694 65% MANHOLE DEPTH < 6' Shallow NEW MANHOLE INSTALLATION 1 EA $12,952.00 $18,404 42% MANHOLE DEPTH > 6' Deep NEW MANHOLE INSTALLATION 1 EA $16,346.00 $24,812 52% NEW CLEANOUT 4" OR 6" NEW CLEANOUT INSTALLATION 1 EA $2,523.00 $4,240 68% DEMO LATERAL 4" OR 6" DEMOLITION AND ABANDONMENT 1 EA $3,261.00 $5,142 58% ENGINEER & INSPECT 4" OR 6" INSPECT & ENG FOR NEW WASTEWATER LATERAL 16 MANHR $2,564.00 $3,508 37% ENGINEER & INSPECT 8" INSPECT & ENG FOR NEW 8" WASTEWATER MAIN 0.25 MH/FT $40.00 $55 37% ENGINEER & INSPECT INSPECT & ENG FOR NEW WASTEWATER MANHOLE 20 MANHR $3,205.00 $4,385 37% ENGINEER & INSPECT 4" OR 6" INSPECT & ENG FOR ABANDONMENT OF WASTEWATER SERVICE10 MANHR $1,603.00 $2,192 37% MANHOLE CONNECTION 8" Shallow CORE DRILL AND CONNECTION TAP TO MANHOLE 1 EA NEW $5,488 NEW MANHOLE CONNECTION 8" Deep CORE DRILL AND CONNECTION TAP TO MANHOLE 1 EA NEW $6,435 NEW additional footage 4" additional lateral footage of 4" Pipe 1 EA $106.00 $206 94% additional footage 6" additional lateral footage of 6" Pipe 1 EA $110.00 $213 94% SEWER SERVICE STANDARD CONNECTION FEES - UTILITY RATE SCHEDULE S-5
EXISTING CONNECTION
CHARGES
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CHARGED BY
WORK
PERFORMED
BY
WORK DESCRIPTION QTY UNIT OF
MEASURE
EXIST CHARGE DURING
BUSINESS HOURS
RECOMMENDED CHARGE
DURING BUSINESS HOURS
PERCENT
INCREASE
EXISTING CHARGE
AFTER BUSINESS
HOURS
RECOMMENDED
CHARGE AFTER
BUSINESS HOURS
PERCENNT
INCREASE
UTIL CUSTOMER SERVICEELECTRIC OPERATIONS SETTING METER 1 MANHR NO CHARGE NO CHARGE NO CHARGE $204.00 $261.70 28% UTIL CUSTOMER SERVICEELECTRIC OPERATIONSDISPATCH OF SERVICE PERSON TO DISCONNECT SERVICE AT METERS FOR NON-PAYMENT1 MANHR $152.00 $195.00 28% NOT APPLICABLE NOT APPLICABLE NOT APPLICABLE UTIL CUSTOMER SERVICEELECTRIC OPERATIONSRESTORATION OF SERVICE AT METERS FOLLOWING DISCONNECTION FOR NON-PAYMENT1 MANHR $152.00 $195.00 28% $204.00 $261.70 28%
UTIL CUSTOMER SERVICEELECTRIC OPERATIONSRESTORATION OF ELECTRIC SERVICE AT POWER POLE FOLLOWING DISCONNECTION FOR NON-PAYMENT 2 MANHR $304.00 $390.00 28% $408.00 $523.38 28%
CHARGED BY
WORK
PERFORMED
BY
WORK DESCRIPTION QTY UNIT OF
MEASURE EXISTING RATE RECOMMENDED RATE PERCENT
INCREASE
ELECTRIC/WGW OPERATIONSELECTRIC/WG
W OPERATIONS SERVICE PROVIDED DURING NORMAL BUSINESS HOURS 1 RATE/HR/PERSO N $152.00 $195.00
28%
ELECTRIC/WGW OPERATIONSELECTRIC/WG
W OPERATIONS SERVICE PROVIDED ON OVERTIME BASIS (CITY'S CONVENIENCE) 1RATE/HR/PERSO N $178.00 $229.00
29%
ELECTRIC/WGW OPERATIONSELECTRIC/WG
W OPERATIONS SERVICE PROVIDED ON OVERTIME BASIS (CUSTOMER'S CONVENIENCE)1 RATE/HR/PERSO N $204.00 $263.00
29%
NOTE: SEE 'C-1 RATES' FOR CALCULATIONS OF LABOR RATES.
EQUIPMENT RENTAL RATES TO BE ADDED TO THE C-1 FEE SCHEDULE SEE CALTRANS EQUIPMENT RENTAL RATES https://dot.ca.gov/programs/construction/equipment-rental-rates-and-labor-surcharge LABOR RATES PER HOUR PER PERSON - UTILITY RATE SCHEDULE C-1 UTILITY MISCELLANEOUS CHARGES - UTILITY RATE SCHEDULE C-1 Item 4
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Public Works
Meeting Date: October 20, 2025
Report #:2508-5114
TITLE
Approval of an Increase of Construction Contingency for Contract No. C24189237 with SAK Construction, LLC in the amount of $1,000,000, funded by the Wastewater Treatment Enterprise Fund for the Joint Intercepting Sewer Rehabilitation (Phase 1) Project (WQ-24000), and Approval of Addendum 13 to the Basic Agreement Between Mountain View, Los Altos, and Palo Alto for the Acquisition, Construction, and Maintenance of a Joint Sewer System to Increase the Maximum Authorized Project Funding of $8.9 million to $12.6 million; CEQA Status – Exempt under CEQA Guidelines Section 15301 (Repairs to Existing Facilities)
RECOMMENDATION
Staff recommends that the City Council:
1. Approve an increase in construction contingency for Contract No. C24189237 with SAK Construction, LLC in an amount not to exceed $1,000,000, for a total contract contingency amount not to exceed $3,534,770 for the Joint Intercepting Sewer Rehabilitation (Phase 1) Project (WQ-24000); and
2. Authorize the City Manager, or their designee, to execute Addendum No. 13 to the Basic Agreement between the City of Palo Alto, the City of Mountain View, and the City of Los Altos for the Acquisition, Construction, and Maintenance of a Joint Sewer System to increase the maximum authorized funding for the Joint Intercepting Sewer Rehabilitation (Phase 1) Project (WQ-24000) from $8.9 million to $12.6 million.
EXECUTIVE SUMMARY
Since 1968, the Cities of Palo Alto, Mountain View, Los Altos, and Los Altos Hills have shared rights to the Palo Alto Regional Water Quality Control Plant’s (RWQCP) treatment capacity and costs under a longstanding Basic Agreement. Under this framework, the City of Palo Alto manages capital projects including the Joint Intercepting Sewer Rehabilitation (Phase 1) Project, which addresses critical structural deterioration in a 72-inch trunk sewer that conveys Item 5
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wastewater flows from Mountain View, Los Altos, Los Altos Hills and a portion of Palo Alto, which together comprise more than half of the influent to the RWQCP.
In December 2023, City Council approved Addendum No. 12 to the Basic Agreement, which established a maximum authorized project funding of $8.9 million, and concurrently awarded a $7,347,700 construction contract with SAK Construction, LLC. and approved a 10% construction contingency of $734,770.
During construction, unforeseen site conditions, contractor sequencing challenges, and necessary design clarifications required multiple change orders that exhausted the original contingency. In August 2025, City Council approved an increase of $1.8 million in contingency to allow isolation and evaluation of a major junction structure at the RWQCP.1 After evaluation and testing, two of the gates used to control wastewater flows to the RWQCP were corroded beyond repair and required full replacement. Based on the construction schedule associated with these gate replacements, staff anticipates additional costs of approximately $1,000,000 for extended time and contract close-out. Staff recommends increasing the contingency for Contract No. C24189237 with SAK Construction, LLC. by $1,000,000, bringing the total authorized contingency to $3,534,770 and the total potential contract not-to-exceed amount to $10,882,470.
The total project costs, including project delivery costs, are now projected to reach up to $12.6 million. Addendum No. 13 is required to increase the maximum authorized project funding accordingly and update partner funding obligations. This project is critical to RWQCP operations, as this junction structure conveys flows from all six partner agencies, and staff must retain the ability to isolate influent flows to ensure the integrity and reliability of plant infrastructure.
BACKGROUND
The Joint Intercepting Sewer (JIS) is a 72-inch diameter reinforced concrete trunk sewer constructed in 1972 that conveys wastewater from Mountain View, Los Altos, Los Altos Hills, and a portion of Palo Alto, representing more than half of the influent flow to the RWQCP. The JIS extends approximately 9,000 feet parallel to Highway 101, through the Baylands Nature Preserve and along the closed City landfill, before discharging into the RWQCP. Other sewer trunklines conveying wastewater to the RWQCP are maintained separately by the City of Palo Alto Utilities Department, Stanford University, and the East Palo Alto Sanitary District, and are not included within the scope of this Project.
A 2020 field investigation, which included closed-circuit television, sonar, and visual inspection, revealed corrosion, cracks, exposed rebar, and other structural defects. Based on those 1 City Council, August 11, 2025; Agenda Item #10; SR #2505-4733 https://portal.laserfiche.com/Portal/DocView.aspx?id=212556&repo=r-704298fc&searchid=04bc1591-7a68-4621- 94d3-b6f203e01141
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findings, the highest-priority 2,364-foot section of pipe was selected for rehabilitation as Phase 1 of the JIS Rehabilitation Project.
On May 16, 2022, Council approved a contract with Jacobs Engineering Group for design services.3 On December 11, 2023, City Council approved Addendum No. 12 to the Basic Agreement between Palo Alto, Mountain View, and Los Altos, which set a maximum authorized project funding of $8.9 million, authorized execution of a construction contract with SAK Construction, LLC in the amount of $7,347,700 with a 10% contingency of $734,770, and amended the construction management contract with Tanner Pacific, Inc.4 Construction began in winter 2024 using cured-in-place (CIPP) lining to rehabilitate the designated section of pipe. During construction, the contractor encountered unforeseen site conditions, including difficult access, bypass pumping complications, obstructions not identified during pre-construction investigations, as well as contractor schedule and sequencing challenges. These issues caused delays, required multiple change orders, and pushed field activities into the 2025 dry season. On June 9, 2025, City Council approved amendments to related contracts with Jacobs Engineering Group, Inc., Tanner Pacific, Inc., and Carollo Engineers, Inc. to support continued engineering and construction management services through the extended schedule.5
To complete the final portion of the rehabilitation, the contractor installed a partition plate to isolate wastewater flow at Junction Box No. 0 (JB-0), a 25-foot-deep concrete structure that receives the 72-inch and 42-inch sewer pipelines before discharging into the RWQCP. After installation of the partition plate, a suspected bottom slab failure at JB-0 was discovered, preventing completion of the remaining pipelining segment. At that time, additional unforeseen work at JB-0, including deteriorated gates that isolate influent flows to the RWQCP’s pump stations, required extended bypass operations, structural evaluation, and design of corrective measures. To address these conditions, on August 11, 2025, City Council approved an increase to the construction contingency in the amount of $1,800,000, for a total contingency not-to- exceed $2,534,770.6
ANALYSIS
C24189237 Construction Contract with SAK, LCC Additional Contingency 3 City Council, May 16, 2022; Agenda Item #7; SR #14164, https://portal.laserfiche.com/Portal/DocView.aspx?id=59483&repo=r-704298fc&searchid=a6f7c657-de00-4160- 95a6-a70fb8afcd04
4 City Council, December 11, 2023; Agenda Item #2; SR #2308-1879, https://portal.laserfiche.com/Portal/DocView.aspx?id=69362&repo=r-704298fc 5 City Council, June 9, 2025; Agenda Item #11; SR #2504-4519, https://portal.laserfiche.com/Portal/DocView.aspx?id=182832&repo=r-704298fc&searchid=57c29364-e791- 4ebab05b-a0b2abdf9b23
6 City Council, August 11, 2025; Agenda Item #10; SR #2505-4733, https://portal.laserfiche.com/Portal/DocView.aspx?id=212556&repo=r-704298fc&searchid=b483acf8-dc35-49c9- a95a-79d5f754ddd1
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During the initial inspection and testing at JB-0, staff determined that interior concrete coating had deteriorated, particularly in the upper half of the box where surfaces are exposed to a corrosive atmosphere. Further inspection and testing of concrete cores revealed that the coating had failed in most areas throughout JB-0 and that upper concrete surfaces have experienced acid attack typical of wastewater conveyance systems. Additionally, these inspections identified that two existing gates that control the flow into the RWQCP’s influent pump stations were severely corroded and required replacement. The RWQCP’s On-Call Emergency Construction contractor mobilized to enter JB-0 to determine if any repair work could be done to salvage the gates, but corrosion was so advanced that further work risked rendering the gates inoperable. Although the additional contingency authorized on August 11, 2025 anticipated the cost of inspections and recoating, subsequent investigation confirmed that full gate replacement was necessary.11
Procurement and installation of the new gates will be performed under the RWQCP’s On-Call Emergency Construction contract. However, associated work inside JB-0, including gate manufacturing and installation, requires that a section of the temporary bypass system used during the main relining phase of the Project remain in operation to keep JB-0 isolated. Because the bypass system is already installed under the SAK contract, staff recommends extending bypass operations under SAK’s existing contract. This approach reduces contractor mobilization costs and avoids duplicative future expenses associated with reinstalling temporary bypass facilities.
Based on the construction schedule for the installation of these new gates, staff anticipates that continued operation of the bypass system and related contract close-out will cost approximately $1,000,000, consisting of a $800,000 estimate to run the bypass system and $200,000 to cover any additional unforeseen work to be completed during the installation of the gates.
Staff recommends increasing the total authorized contingency for Contract No. C24189237 with SAK Construction, LLC by $1,000,000 to $3,534,770, resulting in a revised total potential not-to- exceed contract amount of $10,882,470. Funding is available in the Wastewater Treatment Fund Adjusted Capital Budget Joint Intercepting Sewer Rehabilitation (Phase 1) project (WQ- 24000). This additional contingency amount of $1,000,000 will cover the repair work of JB-0 and the operation of the temporary bypass within the RWQCP.
Addendum 13 to Basic Agreement Between Palo Alto, Mountain View and Los Altos Addendum No. 13 (Attachment A) is necessary to increase the maximum authorized project funding from $8.9 million, as established in Addendum No. 12 (approved December 2023), to a new total of $12.6 million, reflecting the updated estimated cost to complete the project.
The revised maximum authorized project funding amount incorporates:
11 City Council, August 11, 2025; Agenda Item #10; SR #2505-4733, https://portal.laserfiche.com/Portal/DocView.aspx?id=212556&repo=r-704298fc&searchid=b483acf8-dc35-49c9- a95a-79d5f754ddd1
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The previously approved $1.8 million increase in construction contingency (August 2025);
The previously approved $0.8 million increase in project delivery costs for engineering and construction management services by Jacobs Engineering Group, Tanner Pacific, and Carollo Engineers (June 2025); and
The currently recommended $1.0 million increase in contingency to support continued bypass operations and contract close-out.
Staff from the partner agencies have coordinated regarding the increased costs and are recommending approval of Addendum No. 13. The cities of Mountain View and Los Altos have Addendum No. 13 scheduled for approval by their city councils on October 14, 2025. The City’s agreement with Los Altos Hills does not require separate approval for capital improvement projects. Once approved, Addendum No. 13 will formalize the updated project budget and funding obligations under the Basic Agreement. Without this addendum, the three cities would lack the necessary budget authority to complete the Project.
FISCAL/RESOURCE IMPACT
The Joint Intercepting Sewer Rehabilitation (Phase 1) Project is a cost-shared capital improvement project among the four primary partner agencies—Palo Alto, Mountain View, Los Altos, and Los Altos Hills—based on previously approved cost-sharing percentages as shown in Table B-1 of Attachment B. Certain project expenses, including bypass pumping required inside the RWQCP to complete the rehabilitation and subsequent work at JB-0, are allocated across all six partner agencies—Palo Alto, Mountain View, Los Altos, Los Altos Hills, Stanford University, and East Palo Alto Sanitary District—because the RWQCP uses the JIS to convey plant-wide internal return flows to the headworks (Table B-2 of Attachment B).
Palo Alto’s share of these expenses inside the RWQCP is estimated to be approximately 37%, and the other five agencies’ share is approximately 63%. Therefore, Palo Alto’s share of the recommended increase in construction contingency is approximately $367,000 (37%) of the $1,000,000.
Palo Alto’s overall share of the entire Project—including work both inside and outside the RWQCP—is approximately $3,141,000, or 22%, reflecting the combination of cost allocation methodologies applied to different components of the Project. Tables B-2 and B-3 in Attachment B provide detailed breakdowns of the bypass expenses inside the RWQCP and the updated not-to-exceed project costs by partner agency.
In addition, the Joint Intercepting Sewer Rehabilitation project is one of the projects that receives funding from the Cost-Sharing Agreement with Santa Clara Valley Water District Item 5
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Guiding Principle 5 Program funding and the increased costs to Palo Alto are therefore covered under the cost-sharing agreement.13
STAKEHOLDER ENGAGEMENT
This Project is part of the RWQCP’s major capital improvement program funded by the City of Palo Alto and its five partner agencies. The partner agencies are regularly consulted regarding both the need for and progress of wastewater treatment capital work. With respect to Palo Alto itself, the open meetings on the budget process serves as the principal vehicle for community engagement regarding new projects and associated rate impacts.
In addition, staff has coordinated with the Community Services Department and other Public Works Department staff to manage construction activities, bypass pumping, site access, and trail detours in parkland and at the closed landfill. Staff provided formal briefings to the Parks and Recreation Commission (PRC), including a February 25, 2025, presentation on construction progress and the planned closure of the Byxbee Park Western Trail between March 30, 2025, and November 30, 2025.14 On July 22, 2025, staff provided an update to the PRC via a Departmental Report.
Public communications included on-site signage and detour maps for trail closures in Byxbee Park, along with updates posted to the City’s Joint Intercepting Sewer Rehabilitation – Phase 1 Project webpage. Environmental coordination ensured wildlife-friendly fencing and related mitigations during construction. Staff also responded to public inquiries throughout the Project’s duration.
ENVIRONMENTAL REVIEW
Council action on this item is exempt from review under the California Environmental Quality Act (CEQA) under CEQA Guidelines Section 15301, subsection (b) as it involves the repair and maintenance of an existing publicly-owned utility used to provide sewerage treatment services with no expansion on the existing facility.
ATTACHMENTS
Attachment A: Addendum No. 13 to the Basic Agreement between the City of Palo Alto, the City of Mountain View, and the City of Los Altos
Attachment B: Partner Agencies Cost Share Summary for Construction (Revised October 2025) APPROVED BY:
Brad Eggleston, Director Public Works/City Engineer
13 City Council, June 3, 2024; Agenda Item #6; SR 2404-2877, https://portal.laserfiche.com/Portal/DocView.aspx?id=72164&repo=r-704298fc&searchid=5ab6f737-3e27-4d88- bfbc-4c2ecb4ad5e5
14 Parks and Recreation Commission, February 25, 2025; Agenda Item #3; SR# 2502-4115, https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=16875 Item 5
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ADDENDUM NO. THIRTEEN TO THE BASIC AGREEMENT BETWEEN THE CITY
OF PALO ALTO, THE CITY OF MOUNTAIN VIEW, AND THE CITY OF LOS ALTOS
FOR THE ACQUISITION, CONSTRUCTION AND MAINTENANCE OF A JOINT
SEWER SYSTEM
This Addendum No. Thirteen (13) to the Basic Agreement for the Acquisition, Construction and Maintenance of a Joint Sewer System is made and entered into on _________, 2025, by and among the CITY OF PALO ALTO (“Palo Alto”), the CITY OF MOUNTAIN VIEW (“Mountain View”), and the CITY OF LOS ALTOS (“Los Altos”) (individually, a “Party”, collectively, the “Parties”), all municipal corporations under the laws of the State of California.
RECITALS
A. The Parties have entered into that certain Basic Agreement Between the City of Palo Alto, the City of Mountain View and the City of Los Altos for the Acquisition, Construction, and Maintenance of a Joint Sewer System, executed on October 10, 1968, as amended by the Addenda described below (collectively, the “Basic Agreement”). The Basic Agreement has been amended twelve times by addenda, as follows:
1. Addendum No. One (1) to Basic Agreement Between the Cities of Palo Alto, Mountain View, and Los Altos for Acquisition, Construction and Maintenance of a Joint Sewer System, dated as of December 5, 1977;
2. Addendum No. Two (2) to Basic Agreement Between the Cities of Palo Alto, Mountain View, and Los Altos for Acquisition, Construction and Maintenance of a Joint Sewer System dated as of January 14, 1980;
3. Addendum No. Three (3) to an Agreement By and Between the Cities of Palo Alto, Mountain View, and Los Altos for Acquisition, Construction and Maintenance of a Joint Sewer System, dated as of April 9, 1985;
4. Addendum No. Four (4) to the Agreement By and Between the Cities of Mountain View, Los Altos, and Palo Alto as further amended and dated May 30, 1991;
5. Addendum No. Five (5) to Basic Agreement Between the Cities of Palo Alto, Mountain View, and Los Altos for Acquisition, Construction and Maintenance of a Joint Sewer System, dated as of July 31, 1992;
6. Addendum No. Six (6) to Basic Agreement Between the City of Palo Alto, the City of Mountain View, and the City of Los Altos for Acquisition, Construction and Maintenance of a Joint Sewer System dated as of March 16, 1998;
7. Addendum No. Seven (7) to Basic Agreement Between the City of Palo Alto, the City of Mountain View, and the City of Los Altos for Acquisition, Construction and Maintenance of a Joint Sewer System dated as of April 15, 2009;
8. Addendum No. Eight (8) to the Basic Agreement between the City of Palo Alto, the City of Mountain View and the City of Los Altos for the Acquisition, Construction, and Maintenance of a Joint Sewer System dated as of October 17, 2016;
9. Addendum No. Nine (9) to the Basic Agreement between the City of Palo Alto, the City of Mountain View and the City of Los Altos for the Acquisition, Construction and Maintenance of a Joint Sewer System dated March 4, 2019; Item 5
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10. Addendum No. Ten (10) to the Basic Agreement between the City of Palo Alto, the City of Mountain View, and the City of Los Altos for the Acquisition, Construction and Maintenance of a Joint Sewer System dated May 17, 2021;
11. Addendum No. Eleven (11) to the Basic Agreement between the City of Palo Alto, the City of Mountain View, and the City of Los Altos for the Acquisition, Construction and Maintenance of a Joint Sewer System dated December 5, 2022;
12. Addendum No. Twelve (12) to the Basic Agreement between the City of Palo Alto, the City of Mountain View, and the City of Los Altos for the Acquisition, Construction and Maintenance of a Joint Sewer System dated December 11, 2023 (collectively, the “Addenda”).
B. Palo Alto owns and operates the sanitary sewage treatment and disposal works and system (the “Joint System”) pursuant to the Basic Agreement and is responsible for making capital additions to the Joint System. Under the Basic Agreement, any major capital additions for the replacement of obsolete or worn-out units require an agreement by the Parties amending the Basic Agreement.
C. Pursuant to Addendum No. Twelve (12), the Parties approved the construction of the Joint Interceptor Sewer Rehabilitation Phase 1 Project. Since then, the estimated costs of the Project have increased due to factors including design engineering, construction management, program management, and construction expenses.
D. The Parties now desire to increase the amount authorized for the construction of the Joint Interceptor Sewer Rehabilitation Phase 1 Project to reflect increases in Project Costs as defined in Paragraph 43 of the Basic Agreement.
AGREEMENT
NOW, THEREFORE, in consideration of the terms, conditions and covenants set forth in this Addendum No. Thirteen (13), the Basic Agreement is hereby amended, as follows:
Section 1. Paragraph 44 is hereby added to the Basic Agreement to read, as follows:
“44. INCREASED PROJECT COSTS FOR THE JOINT INTERCEPTOR SEWER REHABILTIATION PHASE 1 PROJECT. The maximum amount of the Project Costs for the Joint Interceptor Sewer Rehabilitation Phase 1 Project described in paragraph 43 is increased from $8.9 million to $12.6 million.
Each Party shall pay its share of the Project Costs for the Project, excluding bypass pumping costs inside the Plant, in the proportion to the capacity rights in the Joint System with an increased not-to-exceed amount from $7.0 million to $7.7 million as previously established and presented herein:
•Mountain View 62.50%
•Palo Alto 18.24%
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•Los Altos 15.00%
•Los Altos Hills 4.26%
Bypass pumping costs within the Plant shall continue to be allocated based on the annual flow share calculated at the end of each fiscal year, in accordance with Paragraph 43.
Section 2. Except as modified herein, the Basic Agreement shall remain unchanged, and is hereby ratified and confirmed.
[SIGNATURE PAGE FOLLOWS]
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IN WITNESS WHEREOF, the parties have by their duly authorized representatives executed this Addendum as of the date first written above.
SIGNATURE PAGE:
CITY OF PALO ALTO CITY OF MOUNTAIN VIEW
APPROVED:
__________________________ __________________________
Mayor Kimbra McCarthy, City Manager
__________________________ __________________________
Date Date
____________________________ ATTEST:
City Manager
__________________________
ATTEST: Heather Glaser, City Clerk
____________________________ APPROVED AS TO CONTENT:
City Clerk
__________________________
Jennifer Ng, Public Works Director
____________________________
APPROVED AS TO FORM: ____________________________
Date
____________________________
City Attorney or Designee FINANCIAL APPROVAL:
____________________________
Date ____________________________
Derek Rampone
Finance and Administrative Services Director
APPROVED AS TO FORM:
____________________________
Mitesh Bhakta
Senior Assistant City Attorney
____________________________
Date
//
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//
//
CITY OF LOS ALTOS
BY:
____________________________
City Manager
Gabriel Engeland
____________________________
Date
ATTEST:
__________________________
City Clerk
Melissa Thurman, MMC
____________________________
Date
APPROVED AS TO FORM:
____________________________
City Attorney
Jolie Houston
____________________________
Date
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Attachment B - Partner Agencies Cost Share Summary for Construction Phase (Revised October 2025) Agency Fixed Cost Share %Initial Estimated Project
Cost (2023)
Estimated Cost
Aug 2025
Current Project
Increase Cost
Estimated Cost
Oct 2025
City of Mountain View 62.50% $4,398,734 $4,808,985 $0 $4,808,985 City of Palo Alto 18.24% $1,283,727 $1,403,454 $0 $1,403,454 City of Los Altos 15.00% $1,055,696 $1,154,156 $0 $1,154,156 Town of Los Altos Hills 4.26% $299,818 $327,780 $0 $327,780 Subtotal: 100.00% $7,037,975 $7,694,376 $0 $7,694,376
Agency Estimated Cost
Share %
Initial Estimated Project
Cost in (2023)
Estimated Cost
Aug, 2025
Current Project
Increase Cost
Estimated Cost
Oct 2025
City of Mountain View 40.11% $760,885 $1,524,000 $393,000 $1,917,000 City of Palo Alto 34.97% $663,379 $1,371,000 $367,000 $1,738,000 City of Los Altos 10.88% $206,393 $404,000 $100,000 $504,000 Town of Los Altos Hills 2.04% $38,699 $77,000 $20,000 $97,000 East Palo Alto Sanitary District 5.53% $104,904 $212,000 $56,000 $268,000 Stanford University 6.47% $122,736 $246,000 $64,000 $310,000 Subtotal: 100.00% $1,896,995 $3,833,000 $1,000,000 $4,834,000 Agency Overall Project Cost
Share %
Initial Estimated Project
Cost (2023)
Estimated Cost
Aug, 2025
Current Project
Increase Cost
Estimated Cost
Oct 2025
City of Mountain View 57.75% $5,159,619 $6,333,000 $393,000 $6,726,000 City of Palo Alto 21.79% $1,947,106 $2,774,000 $367,000 $3,141,000 City of Los Altos 14.13% $1,262,089 $1,558,000 $100,000 $1,658,000 Town of Los Altos Hills 3.79% $338,516 $405,000 $20,000 $425,000 East Palo Alto Sanitary District 1.17% $104,904 $212,000 $56,000 $268,000 Stanford University 1.37% $122,736 $246,000 $64,000 $310,000 Total, Not-to-Exceed: 100.00% $8,934,970 $11,528,000 $1,000,000 $12,528,000 Table B-3: Not-to-Exceed Cost for Partners during Construction (Sum of Table B-1 and B-2) Table B-1: Project Costs during Construction (Less Bypass Pumping Inside The Plant) Table B-2: Cost for Bypass Pumping during Construction inside The Plant Item 5
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Share Summary for Construction
(Revised October 2025)
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Administrative Services
Meeting Date: October 20, 2025
Report #:2507-4964
TITLE
Approval of Contract Amendment No. 1 to Contract No. C23187298C with Hinderliter, de Llamas, and Associates (HdL) for Business Tax and Business Registry Certificate Fee Administration Services in the Amount of $750,000 for Additional Administrative and Operational Services and $2,120,000 Contingent Fees for a Revised Total Not-To-Exceed Amount of $2,870,000, to Extend the Term by Two Years to June 30, 2028, and Approve a Budget Amendment in the General Fund (Requires 2/3 vote); CEQA Status – Not a Project
RECOMMENDATION
Staff recommends that the City Council:
1. Approve and authorize the City Manager or their designee to execute Amendment No. 1 to Contract No. C23187298C with Hinderliter, de Llamas, and Associates (HdL) (Attachment A) for business tax and business registry certificate fee administration services in the amount of $750,000 for Additional Administrative and Operational Services and $2,120,000 Contingent Fees for a revised not-to-exceed amount of $2,870,000, and extend the term by two years, through June 30, 2028; and
2. Amend the Fiscal Year 2026 Budget Appropriation Ordinance in the General Fund by:
a. Increasing estimate for Business Tax revenue by $250,000; and, b. Increasing Administrative Services Department contract expense appropriation by $250,000.
EXECUTIVE SUMMARY
Hinderliter, de Llamas, and Associates (HdL) provides tax and fee administration services for the City’s Business Tax and Business Registry Certificate programs, including annual registration and renewal, compliance, payment processing, and reporting.
Since launching in 2023, the Business Tax has generated $5 million to $6 million annually as rates have increased from 3.75 cents to the full 7.5 cents per square foot. FY 2026 will be the first fiscal year with fully phased-in tax rates. Consultant costs to administer the program have remained less than 10% of total revenue, keeping most program dollars focused on voter- Item 6
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approved priorities for transportation, affordable housing, and public safety. The Business Registry Program continues to generate approximately $150,000 per year.
The proposed amendment increases the not-to-exceed amount by $2.0 million and extends the contract term by two years, from June 2026 to June 2028 for a total term of five years. Almost 90% of this increase represents contingency-based compliance costs, meaning such fees would only be incurred if compliance collections are necessary and successful. This includes prior year discovery and collections that recovered previously unpaid revenue, as well as future compliance phases such as targeted audits. About 10% of the contract increase represents flat- rate administrative services, including new and recurring registrations, expanded outreach to register a broader group of exempt businesses, and enhanced reporting.
Key Changes
Increase not-to-exceed by $2.0 million to reflect early implementation work and future phases, especially compliance and audit
Extend contract two years to ensure service continuity and support program stabilization
No added fixed costs; compliance services are funded by recovered revenue
BACKGROUND
In November 2022, voters approved a Business Tax on office space, with revenues designated for transportation, affordable housing, and public safety1. The tax applies to businesses occupying office space in the City and is assessed based on square footage. The Business Registry Certificate (BRC) program has been in place since 2015 and requires all businesses operating in the City to register annually2.
In early 2023, the City issued a Request for Proposals for tax and fee administration services and received two bids. Following operational challenges with the initially selected vendor, the City entered into a new agreement with HdL in August 20233. The contract includes fee administration, compliance, payment processing, and reporting for both the Business Tax and the existing BRC programs. HdL uses a mix of fixed-fee billing for operations and revenue-based billing for compliance. While HdL provides day-to-day support for both programs and ensures compliance with the Palo Alto Municipal Code, the City retains oversight and guides key decisions on program implementation, interpretation, and policies.
Their scope of work includes:
Administration and Operations: Maintaining the business database, processing new registrations and renewals, generating notices, and managing access to an online 1 The Business Tax is codified in Chapter 2.37 of the Palo Alto Municipal Code 2 The Business Registry is codified in Chapter 4.60 of the Palo Alto Municipal Code 3 City Council, February 5, 2024, Staff Report#: 2401-2481 Item 6
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taxpayer portal. Billed as a flat rate of $17.00 per account, adjusted annually based on the Bay Area CPI.
Contingent Fee for Compliance: Discovery of unregistered businesses, collections, resolving incomplete or unpaid filings, and audit services. Billed as a percentage of revenue collected (25-35%).
Additional Services and Contingency: Handling of credit/echeck payments, other reimbursable expenses for travel, and additional contingency services billed at flat rates.
The Business Tax portal opened in October 2023 to support businesses in filing for calendar year 2023, marking the start of the City’s business tax program. Businesses submitted their first filings in early 2024, and quarterly payments will continue as part of the program (currently authorized through December 31, 2057).
For more information about the Business Tax and Business Registry programs, visit:
https://www.paloalto.gov/Business/Business-Registry-and-Tax
ANALYSIS
HdL provides comprehensive support for the City’s Business Tax and Business Registry programs, including account registration, payment processing, quarterly filings, compliance activities (such as discovery and collections), and customer service. The Business Registry Certificate program continues under the same contract, with HdL maintaining account renewals.
Since launching in 2023, the Business Tax has generated between $5 million and $6 million annually as rates have phased in from 3.75 cents to 7.5 cents per square foot. In FY 2025, revenues totaled $5.7 million, reflecting higher program compliance by businesses and a partial year at the fully phased-in rate.
Collections began in January 2024 at 50% of the voter-approved rates as part of a phased implementation, with full rates taking effect on January 1, 2025. FY 2026 will be the full fiscal year in which all revenues reflect the fully phased-in rates. The Business Registry program remains consistent, generating approximately $150,000 annually.
In the first two years of the Business Tax program, much of the work focused on establishing core operations, registering active businesses, and resolving outstanding accounts to bring them into compliance. The proposed amendment increases the not-to-exceed amount by $2.0 million and extends the contract term by two years, from June 2026 to June 2028. Most of this increase is tied to contingency-based compliance costs. This includes prior-year discovery and collections that successfully recovered previously unpaid revenue, as well as continued compliance efforts and upcoming phases, such as targeted audits. A smaller share of funds supports administrative services, including new and recurring registrations, expanded outreach to a broader base of exempt businesses, and enhanced reporting.
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Table # 1: Proposed Changes to Contract Scope by Task
Incurred
Costs FY24-25
Current
Agreement
Amendment
No. 1
Net
Change
Scope of Services
1) Administrative and Operational
Services
$170,000 $424,320 $640,000 $215,680
2) Contingent Fee for Compliance
Services*
$760,000 $352,275 $2,120,000 $1,767,725
3) Additional Services and
Contingency
$- $83,960 $110,000 $26,040
Total Scope of Service NTE $930,000 $860,555 $2,870,000 $2,009,445
Term of Service 3 Years 5 Years 2 Years
Expiration Date June 30, 2026 June 30, 2028
*Compliance Services include discovery and collections as well as planned audits for later phases. Costs are incurred only when revenue is recovered.
1) Administrative and Operational Services
Administrative services fees are billed at a flat rate per account for annual registrations and renewals. To date, routine filings have remained under the not-to-exceed limit and represent a smaller share of the overall contract cost. The proposed increase in this category supports ongoing annual registration work, renewals, and expanded outreach to exempt businesses. In the initial years, work centered on registering businesses that were required to pay the tax, with some outreach to exempt businesses. In future years, a greater share of activity will shift toward registering exempt businesses to ensure comprehensive participation.
Staff and HdL are also working to enhance internal reporting capabilities, including geo-tagging business locations, tracking square footage, and monitoring exemption status and filing trends.
These enhancements will provide better data to assess business activity, compliance trends, and inform future planning and policy decisions.
2) Contingent Fee for Compliance Services
Compliance services, which account for a majority of the proposed $2.0 million increase, are billed on a contingent fee basis, meaning costs are incurred only if revenue is successfully recovered. This increase reflects time consuming discovery and collections work that successfully recovered unpaid revenue during program launch, as well as anticipated future activities such as planned audits and continued account resolution. This structure enables compliance-related expenses to scale directly with activity rather than adding ongoing fixed costs.
Since program launch, discovery and collection services have generated approximately $2.5 million in additional revenue as part of efforts to establish the program and bring accounts current. The majority of this revenue reflects the base tax payments, while penalties and interest represent a small and declining share as on-time filing and payment continue to improve.
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Near-term activity remains focused on continued discovery and collections, which include identifying unregistered businesses, conducting outreach, resolving accounts, and collecting unpaid tax from both the current and prior years. This outreach can be time consuming requiring multiple attempts and discussions to on board unregistered and past due business. In FY 2025, these compliance costs were approximately $510,000, or less than 10% of total Business Tax revenue. Overall, these efforts have generated a return of nearly $4.00 in previously unpaid taxes for every $1.00 spent. As the program matures, the volume of discovery and collections is expected to decline as unregistered businesses are on boarded, and compliance resources will shift toward audit services, which are more targeted and typically lower in overall cost. This evolution is expected to gradually reduce ongoing compliance expenses while maintaining a strong level of revenue recovery. 3) Additional Services or Contingency
There are no significant changes in this category from the original agreement. Costs remain minimal and primarily reflect payment processing support, reimbursable travel expenses, and other contingency services, which are incurred only when needed.
Outlook and Next Steps
The Business Tax program is still in its early stages and will continue to evolve as rates are fully phased in and participation stabilizes. Staff will continue to monitor filing patterns, compliance activity, and overall program performance, and will provide updated analysis and recommendations in future financial updates as more data becomes available.
FISCAL/RESOURCE IMPACT
Funding for administration of the Business Tax and Business Registry Programs is included in the FY 2026 Adopted Operating Budget and offset by a portion of the collected business tax revenues. Staff recommends increasing both revenues and expenditures by $250,000 to align budget authority with projected activity levels. With this adjustment, the FY 2026 budget for administrative services for the Business Tax and Business Registry Programs will be increased to approximately $600,000, inclusive of the estimated contingent fees for compliance services.
This amount reflects a period of elevated activity as the program prepares to transition from its initial implementation phase to a steady operating level. Costs are expected to decline in future years as on-time filing continues to improve, and compliance work shifts from discovery and collections towards more targeted audits. The business tax revenue in FY 2026 is estimated to be $6,700,000 after this adjustment and the balance after administrative costs will be used to support City priorities for transportation, affordable housing, and public safety services.
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STAKEHOLDER ENGAGEMENT
The City, in partnership with HdL, has taken a proactive approach to outreach, providing FAQs, information sessions, dedicated City webpages7, and the ability to schedule one-on-one consultations. These efforts have continued through the quarterly renewal process, where staff and HdL actively engage with businesses, provide guidance on filing requirements, and offer support to facilitate timely filings and ongoing compliance.
ENVIRONMENTAL REVIEW
This activity is not a project under California Environmental Quality Act (CEQA) as defined in CEQA Guidelines, section 15378(b)(4) (government fiscal activities which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment).
ATTACHMENTS
Attachment A: HdL Contract, C23187298C Amendment No.1
APPROVED BY:
Lauren Lai, Administrative Services Director
7 1) City of Palo Alto Business Tax Implementation
https://www.paloalto.gov/Business/Business-Registry-and-Tax/Business-Tax-Implementation-2023 2) City of Palo Alto Business Registry and Tax Program
https://www.paloalto.gov/Business/Business-Registry-and-Tax.
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AMENDMENT NO. 1 TO CONTRACT NO. C23187298C
BETWEEN THE CITY OF PALO ALTO AND
HINDERLITER DE LLAMAS & ASSOCIATES (HDL)
This Amendment No. 1 (this “Amendment”) to Contract No. C23187298C (the “Contract” as defined below) is entered into as of September 29, 2025, by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and HINDERLITER DE LLAMAS & ASSOCIATES (HDL), a California corporation, located at 120 S. State College Blvd. Suite 200, Brea, California 92821 (“CONSULTANT”). CITY and [CONSULTANT or CONTRACTOR] are referred to collectively as the “Parties” in this Amendment.
R E C I T A L S
A. The Contract (as defined below) was entered into by and between the Parties hereto for the provision of administration, collection, enforcement, compliance, and audit activities for the City’s business tax and business registry certificate program, as detailed therein.
B. The Parties now wish to amend the Contract in order to extend the term for an additional two (2) years, changing expiration date from June 30, 2026 to June 30, 2028 and increase the compensation value by Two Million Nine Thousand Four Hundred Forty Five Dollars ($2,009,445); changing total not to exceed compensation value from Eight Hundred Sixty Thousand Five Hundred Fifty Five Dollars ($860,555) to Two Million Eight Hundred Seventy Thousand Dollars ($2,870,000).
NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of this Amendment, the Parties agree:
SECTION 1. Definitions. The following definitions shall apply to this Amendment:
a. Contract. The term “Contract” shall mean Contract No. C23187298C between CONSULTANT and CITY, dated October 1, 2023, as amended by:
b. Other Terms. Capitalized terms used and not defined in this Amendment shall have the meanings assigned to such terms in the Contract.
SECTION 2. Section 2. “TERM” of the Contract is hereby amended to read as follows:
“The term of this Agreement shall be from the date of its full execution through June 30, 202 8 unless terminated earlier pursuant to Section 19 (Termination) of this Agreement.”
SECTION 3. Section 4. “COMPENSATION” of the Contract is hereby amended to read as follows:
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“The compensation to be paid to CONSULTANT for performance of the Services shall be based on the compensation structure detailed in Exhibit C, entitled “COMPENSATION,” including any reimbursable expenses specified therein, and the maximum total compensation shall not exceed Two Million Seven Hundred Seventy Thousand Dollars ($2,770,000). The hourly schedule of rates, if applicable, is set out in Exhibit C-1, entitled “SCHEDULE OF RATES.” Any work performed or expenses incurred for which payment would result in a total exceeding the maximum compensation set forth in this Section 4 shall be at no cost to the CITY.
Optional Additional Services Provision (This provision applies only if checked and a not -to- exceed compensation amount for Additional Services is allocated below under this Section 4.)
In addition to the not -to-exceed compensation specified above, CITY has set aside the not -to- exceed compensation amount of One Hundred Thousand Dollars ($100,000.00) for the performance of Additional Services (as defined below). The total compensation for performance of the Services, Additional Services and any reimbursable expenses specified in Exhibit C, shall Two Million Eight Hundred Seventy Thousand Dollars ($2,870,000), as detailed in Exhibit C.
“Additional Services” means any work that is determined by CITY to be necessary for the proper completion of the Project, but which is not included within the Scope of Services described at Exhibit A. CITY may elect to, but is not required to, authorize A dditional Services up to the maximum amount of compensation set forth for Additional Services in this Section 4.
CONSULTANT shall provide Additional Services only by advanced, written authorization from CITY as detailed in this Section. Additional Servic es, if any, shall be authorized by CITY with a Task Order assigned and authorized by CITY’s Project Manager, as identified in Section 13 (Project Management). Each Task Order shall be in substantially the same form as Exhibit A -1, entitled “PROFESSIONAL S ERVICES TASK ORDER”. Each Task Order shall contain a specific scope of services, schedule of performance and maximum compensation amount, in accordance with the provisions of this Agreement. Compensation for Additional Services shall be specified by CITY in the Task Order, based on whichever is lowest: the compensation structure set forth in Exhibit C, the hourly rates set forth in Exhibit C-1, or a negotiated lump sum.
To accept a Task Order, CONSULTANT shall sign the Task Order and return it to CITY’s Project Manager within the time specified by the Project Manager, and upon authorization by CITY (defined as counter-signature by the CITY Project Manager), the fully exec uted Task Order shall become part of this Agreement. The cumulative total compensation to CONSULTANT for all Task Orders authorized under this Agreement shall not exceed the amount of compensation set forth for Additional Services in this Section 4. CONSULTANT shall only be compensated for Additional Services performed under an authorized Task Order and only up to the maximum amount of compensation set forth for Additional Services in this Section 4. Performance of and payment for any Additional Services are subject to all requirements and restrictions in this Agreement.”
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SECTION 4. The following exhibit(s) to the Contract is/are hereby amended or added, as indicated below, to read as set forth in the attachment(s) to this Amendment, which is/are hereby incorporated in full into this Amendment and into the Contract by this reference:
a. Exhibit “A” entitled “SCOPE OF SERVICES ”, AMENDED, REPLACES PREVIOUS.
b. Exhibit “B” entitled “SCHEDULE OF PERFORMANCE”, AMENDED, REPLACES PREVIOUS.
c. Exhibit “C” entitled “COMPENSATION”, AMENDED, REPLACES PREVIOUS.
d. Exhibit “C -1” entitled “ SCHEDULE OF RATES ”, AMENDED, REPLACES PREVIOUS.
SECTION 5. Legal Effect. Except as modified by this Amendment, all other provisions of the Contract, including any exhibits thereto, shall remain in full force and effect.
SECTION 6 . Incorporation of Recitals . The recitals set forth above are terms of this Amendment and are fully incorporated herein by this reference.
(SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.)
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SIGNATURES OF THE PARTIES
IN WITNESS WHEREOF, the Parties have by their duly authorized representatives executed this Amendment effective as of the date first above written.
CITY OF PALO ALTO
City Manager
APPROVED AS TO FORM:
City Attorney or Designee
(Contract over $25k)
HINDERLITER DE LLAMAS &
ASSOCIATES (HDL)
Officer 1
By:
Name:
Title:
Officer 2 (Required for Corp. or LLC)
By:
Name:
Title:
Attachments:
- EXHIBIT A – SCOPE OF SERVICES, AMENDMENT NO.1 (AMENDED, REPLACES PREVIOUS) - EXHIBIT B – SCHEDULE OF PERFORMANCE, AMENDMENT NO.1 (AMENDED, REPLACES
PREVIOUS)
- EXHIBIT C – COMPENSATION, AMENDMENT NO.1 (AMENDED, REPLACES PREVIOUS) - EXHIBIT C-1 – SCHEDULE OF RATES, AMENDMENT NO.1 (AMENDED, REPLACES
PREVIOUS)
Docusign Envelope ID: 57BCB9CE-AD42-4F27-A3F8-6069FD6EC900 Vice President
Robert Gray
CFO
Richard Park
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EXHIBIT A
SCOPE OF SERVICES, AMENDMENT NO.1
(AMENDED, REPLACES PREVIOUS)
CONSULTANT shall provide the Services detailed in this Exhibit A, entitled “SCOPE OF SERVICES”. CONSULTANT shall provide the Services detailed in this Exhibit A, entitled “SCOPE OF SERVICES”. Notwithstanding any provision herein to the contrary, CONSULTANT’s duties and services described in this Scope of Services shall not include preparing or assisting CITY with any portion of CITY’s preparation of a request for proposals, request for qualifications, or any other solicitation regarding a subsequent or addi tional contract with CITY. CITY shall at all times retain responsibility for public contracting, including with respect to any subsequent phase of this project. CONSULTANT’s participation in the planning, discussions, or drawing of project plans or specifi cations shall be limited to conceptual, preliminary, or initial plans or specifications. CONSULTANT shall cooperate with CITY to ensure that all bidders for a subsequent contract on any subsequent phase of this project have access to the same information, including all conceptual, preliminary, or initial plans or specifications prepared by CONSULTANT pursuant to this Scope of Services
CONSULTANT (HdL) will provide the following monthly recurring services relative to the administration, collection, enforcement, compliance, and audit activities for the City’s business tax and business registry certificate program:
Task 1:
1. Operations Management Services
1.1. Establish and maintain database of businesses for the business registry certificate program and business tax.
1.2. Receive and process, in a timely fashion:
1.2.1. Business registry applications, renewals and payments, and.
1.2.2. Business tax filings, amended returns, and payments.
1.3. Renewal and payment notices:
1.3.1. Business registry renewal notices will be sent renewal notices to active businesses within 30 days of the renewal period end date or at another interval specified by CITY.
1.3.2. Business tax payment reminder notices will be sent within 30 days of the tax payment due date or at another interval specified by CITY.
1.4. Provide businesses multiple options for submitting applications, renewals, tax filing, payments, or support requests (including via website, email, mail, phone, and fax).
1.4.1. Have experience and capabilities to process business payments, renewals, delinquent payments and ongoing monitoring and administration of CITY’s business registry certificate program and business tax, as described in the CITY’s municipal code, ordinances, policies and program procedure manuals.
1.4.2. Consultant specialists will be available for live interactions Monday through Friday, 8:00am to 5:00pm Pacific).
1.4.3. Respond to business correspondence via return phone call or written correspondence within 24 hours.
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applications, business tax filings, and any additional documentation.
1.6. Provide CITY staff access to website portal offering business registry inquiry, reporting, and electronic department approval capabilities.
Task 2:
2. Compliance Services: 1) Identify and register businesses which are subject to business registry certificate program and/or business tax, 2) collect known debt as pertains to business registry certificate and/or business tax, and 3) identify under-reported registration fee and/or tax liability.
2.1. Discovery Services
2.1.1. Develop a list of businesses subject to CITY business registry certificate or taxation.
2.1.2. Notify non-compliant businesses of their options to comply or dispute their non- compliant status. Notification and support to businesses will be facilitated through the website, mail, email, phone and/or fax.
2.1.3. Review information and forms submitted by the business for completion and accuracy, inclusive of any additional required documentation (i.e. home occupation permit). All submissions are filed and stored electronically and made available to CITY upon request.
2.1.4. Provide businesses with detailed invoicing and options to pay via website, mail, and phone.
2.1.5. Remit revenue to CITY no less than monthly, along with detail of business registry applications, business tax filings, and any additional documentation.
2.2. Collection Services
2.2.1. Identify businesses subject to CITY business registry certificate or taxation which have known debt to CITY and have failed to pay within an appropriate time frame.
2.2.2. Notify businesses of their options to comply or dispute their non-compliant status.
2.2.3. Provide businesses with detailed invoicing and options to pay via website, mail and phone.
2.2.4. Remit revenue to CITY no less than monthly, along with detail of business registry applications, business tax filings, and any additional documentation.
2.3. Audit Services
2.3.1. Identify potential under-reporting and/or misclassified businesses.
2.3.2. Audit businesses mutually agreed to by CITY and CONSULTANT that are identified as potential under-reporting businesses.
2.3.3. Submit audit summaries to CITY and discuss further actions.
2.3.4. Educate businesses on proper reporting practices.
2.3.5. Invoice and collect identified delinquencies.
3. Payment Processing – services include PCI compliant payment processing services powered by FIS Global, which supports both credit card (taxpayer funded) and eCheck (CITY funded) transactions.
Task 3:
3.1. CITY Responsibilities
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3.1.1. As a condition to its receipt of the Service, CITY shall execute and deliver any and all applications, agreements, certifications or other documents required by FIS Global, Networks or other third parties whose consent or approval is necessary for the processing of Transactions by FIS Global. “Network” is an entity or association that operates, under a common service mark, a system which permits participants to authorize, route, and settle Transactions among themselves, including, for example, networks operated by VISA USA and Mastercard, Inc., NYCE Corporation, American Express, and Discover.
3.1.2. CITY hereby grants CONSULTANT the full right, power and authority to request, receive and review any Data or records reflected in a Transaction report. CITY represents and warrants that it has the full right and authority to grant these rights.
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EXHIBIT B
SCHEDULE OF PERFORMANCE
CONSULTANT shall perform the Services so as to complete each milestone within the number of days/weeks specified below. The time to complete each milestone may be increased or decreased by mutual written agreement of the Project Managers for CONSULTANT and CITY so long as all work is completed within the term of the Agreement. CONSULTANT shall provide a detailed schedule of work consistent with the schedule below within 2 weeks of receipt of the notice to proceed (“NTP”) from the CITY.
Milestones
Completion
Number of Days/Weeks (as specified below)
from NTP
1. Task 1: Operations Management Services Recurring monthly service within term of Agreement, with first collection cycle beginning
October 2023; filing and collection occurring
quarter beginning January 2024.
2. Task 2: Compliance Services
a. Discovery
b. Collection
c. Audit
Recurring monthly service within term of
Agreement.
3. Task 3: Payment Processing Recurring monthly service within term of Agreement.
Optional Schedule of Performance Provision for On-Call or Additional Services Agreements. (This provision only applies if checked and only applies to on -call agreements per Section 1 or agreements with Additional Services per Section 4.)
The schedule of performance shall be as provided in the approved Task Order, as detailed in Section 1 (Scope of Services) in the case of on-call Services, or as detailed in Section 4 in the case of Additional Services, provided in all cases that the schedule of performance shall fall within the term as provided in Section 2 (Term) of this Agreement.
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EXHIBIT C
COMPENSATION, AMENDMENT NO.1
(AMENDED, REPLACES PREVIOUS)
AMENDMENT
NO.1
AMENDMENT
NO.1
BUDGET SCHEDULE RATE EST. UNIT
NOT TO
EXCEED
AMOUNT
(5 YEARS)
YEAR 1
FY 2024
(10/1/2023-
6/30/2024)
YEAR 2
FY 2025
YEAR 3
FY 2026
YEAR 4
FY 2027
YEAR 5
FY 2028
TASK 1: Operations Management Services
Includes all sub-tasks under Task 1 of Scope of
Services. Fees are increase as of July 1 of each year
based on the 12-month Bay Area Consumer Price
Index (Urban Wage Earners and Clerical Workers, San
Francisco-Oakland-San Jose) as of March 31, not to
exceed 5%
Max.
Annual
CPI Adj 4% 4%
Per processed account fee - any account for which an
application or renewal/return was processed, or active
account which was sent a renewal notice $17.00
8,000 $640,000.00 $85,000.00 $85,000.00 $130,000.00 $170,000.00 $170,000.00
TASK 2: Compliance Services
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2.1: Discovery Services
Contingency percentage applies to all monies received
for the current tax/license period and any other period collected (including monies received for taxes,
penalties, interest, and fees).
In the event that CITY discovers a non-compliant
business and report to CONSULTANT, activity will be
categorized as a collection service effort rather than
discover effort. 35%
170,000 $260,000.00 $60,000.00 $60,000.00 $60,000.00 $40,000.00 $40,000.00
2.2: Collection Services
Contingency percentage applies to revenues received
as a result of compliance services. 25%
1,600,000 $1,700,000.00 $200,000.00 $450,000.00 $400,000.00 $350,000.00 $300,000.00
2.3: Audit Services
Contingency percentage applies to revenues received
as a result of audit services. 35%
115,000 $160,000.00 N/A N/A $40,000.00 $60,000.00 $60,000.00
Sub-Total Compliance Services $2,120,000.00 $260,000.00 $510,000.00 $500,000.00 $450,000.00 $400,000.00
TASK 3: Payment Processing
Taxpayer Funded:
Credit and debit card processing CITY authorizes
CONSULTANT to collect convenience fee from
taxpayer at the time of payment. 2.90% N/A N/A N/A N/A N/A N/A N/A
Taxpayer Funded:
Returned payment/NSF fee, each occurrence. 25% N/A N/A N/A N/A N/A N/A N/A
City Funded:
ACH/eCheck processing per transaction fee. $0.50
2,000 $5,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00
TOTAL BASIC SERVICES
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REIMBURSEABLE EXPENSES $5,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00
ADDITIONAL SERVICES OR CONTINGENCY $100,000.00 $20,000.00 $20,000.00 $20,000.00 $20,000.00 $20,000.00
TOTAL NOT-TO-EXCEED $2,870,000.00 $367,000.00 $617,000.00 $652,000.00 $642,000.00 $592,000.00 Docusign Envelope ID: 57BCB9CE-AD42-4F27-A3F8-6069FD6EC900 Item 6
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EXHIBIT C-1
COMPENSATION, AMENDMENT NO.1
(AMENDED, REPLACES PREVIOUS)
YEAR 1 through 5, ADDITIONAL SERVICES
Title
Hourly Rate
Principal $325
Programmer $295
Senior Analyst $245
Analyst $195
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Administrative Services
Meeting Date: October 20, 2025
Report #:2509-5196
TITLE
Approve Contract Amendment No. 1 to Contract No. C25193598 with Fairbank, Maslin, Maullin, Metz, and Associates (FM3) in the Amount of $26,775 for one Additional Poll (Four Polls, Total) for the Potential November 2026 Ballot Measure for a Total Not to Exceed Amount of $153,000 and Approve Budget Amendments in the General Fund and the Cubberley Property Infrastructure Fund; CEQA Status: Not a Project
RECOMMENDATION
Staff recommends that the City Council:
1. Approve and authorize the City Manager or designee to execute Amendment No. 1 to Contract No. C25193598 with Fairbank, Maslin, Maullin, Metz, and Associates (FM3) (Attachment A) for one additional poll in an amount not-to-exceed $26,775 for consultant services related to the November 2026 ballot measure for the Cubberley Project. This amendment results in a revised total contract not-to-exceed amount of $153,000 and
2. Amend the FY 2026 Budget Appropriation (requires 2/3 approval) for the :
a. General Fund by:
i. Increasing the transfer to the Cubberley Property Infrastructure Fund by $700,000, and
ii. Decreasing the Real Property Investment Reserve by $700,000 b. Cubberley Property Infrastructure Fund by:
i. Increasing the transfer from the General Fund by $700,000, and ii. Increasing the Cubberley Community Center Redevelopment Capital Improvement Project (CB-26000) by $700,000.
BACKGROUND
Fairbank, Maslin, Maullin, Metz, and Associates (FM3) is engaged to conduct public opinion research on the November 2026 ballot measure for the Cubberley Project. Staff’s updated Item 7
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workplan presented to the City Council on June 10, 20251 included three rounds of polling: the first poll released in April 2025, the second released November 2025, and the third and final released in April 2026. The contract with FM3 was approved by the City Council on February 24, 20242 and totaled $126,225. These services were exempted from solicitation under the City Manger’s authority (PAMC 2.30.360(b)(2) based on timelines established in the Cubberley workplan and known expertise of FM3 with the City and other surrounding areas. As the Cubberley project has advanced a fourth poll is now recommended. Adding a fourth poll increases the total not-to-exceed amount of the contract from $126,225 to $153,000.
The original FM3 contract was one of several contracts funded by the General Fund Real Property Reserve that was established to support real property acquisition activities. The FY 2025 Adopted Operating Budget included $1.0 million and the FY 2026 Adopted Operating Budget includes $0.7 million for this reserve. Various Council actions in FY 2025 transferred the $1.0 million reserve to the Cubberley Community Center Redevelopment CIP Project (CB- 26000)2,3,4. Funding is to be used for the Cubberley Master Plan, CEQA environmental review, public opinion research activities, ballot measure strategy consulting services and other associated costs.
ANALYSIS
On August 5, 2025, staff met with the Cubberley Ad Hoc Committee and recommended that an additional poll be added to the workplan. In the first poll, likely voters communicated three priorities in support of a bond measure:
1. Building Standards: Palo Alto residents deserve a community center that is modern, safe, and accessible to the entire community,
2. Early Childhood Education: this project will create a dedicated space for childcare and early childhood education for families from all walks of life, and
3. Affordability: Palo Alto should invest in creating an affordable, accessible place where people can gather to learn, play, read, enjoy the arts, experience joy, and connect with one another.
The additional poll will assist with narrowing concepts and priorities to help inform the Cubberley master planning process and develop the ballot measure question. Staff will discuss the next and second round of polling during the October 20, 2025 Cubberley Project Study Session. The next, or second poll, will be launched in early November 2025. The third poll will 1 City Council, June 10, 2025: https://portal.laserfiche.com/Portal/DocView.aspx?id=182790&repo=r- 704298fc&searchid=57dac2b5-5c42-4ef0-978a-be940766f395
2 City Council, February 24, 2025: https://portal.laserfiche.com/Portal/DocView.aspx?id=143364&repo=r-704298fc 3 City Council, December 2, 2024: https://portal.laserfiche.com/Portal/DocView.aspx?id=112713&repo=r- 704298fc&searchid=648becf4-afbf-4fe9-b851-3d58440560a9
4 City Council, December 16, 2024: https://portal.laserfiche.com/Portal/DocView.aspx?id=117742&repo=r- 704298fc&searchid=7464f532-849e-4708-84ca-1ac2f16d7dd6
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be launched in February/March 2026, and the final round launched in May 2026. The third and the final rounds of polling will test potential ballot measure language.
In addition to funding the additional round of polling, staff recommends appropriating the full $0.7 million Real Property Investment Reserve and transferring the funds into the Cubberley Community Center Redevelopment Capital Project (CB-26000) as part of this report. As noted in the Fiscal/Resource Impact section below, CB-26000 has anticipated costs of at least $0.7M in FY 2026, and this will streamline the funding appropriation for this priority project. Staff will still need to return to Council to amend and award contracts above the $85,000 contract authority level; however, fully appropriating the reserve in CB-26000 will also allow staff to be more responsive on this urgent and priority project through FY 2026.
FISCAL/RESOURCE IMPACT
As described in the Background section above, $1.0 million was approved by the City Council in FY 2025 to be transferred from the Real Property Reserve to CB-26000. Approximately $919,000 the costs associated with these transfers were realized in FY 2025 as shown in Table 1 below. The remaining $81,000 was moved into FY 2026 to support legal counsel services.
In addition to the funding remaining from FY 2025, the $0.7 million recommended to be transferred from the Real Property Reserve to CB-26000 will be used to support the items listed in Table 1. Staff will still need to return to Council to amend and award contracts above the $85,000 contract authority level.
Table 1: Estimated Cubberley Costs
FY 2025 FY 2026 Council Status Total Costs
Master Plan Update
(Concordia)
$631,966 Approved $631,966
CEQA Environmental Review
(Rincon)
202,322 Approved 202,322
Ballot Measure Polling (FM3) 43,988 $109,012 $26,775 Contract Amendment
Pending
153,000
Strategy Consultant (Lew
Edwards Group)
27,000 81,000 Approved 108,000
Municipal Advisor (PFM) 20,000 Below Authority
Level
20,000
Legal Counsel 85,000 Below Authority
Level
85,000
Geotech and Surveying 17,545 Below Authority
Level
17,545
Engagement & Outreach
Materials
13,795 51,000 Below Authority
Level
64,795
Limited Term
Staff Augmentation
100,000 Pending 100,000
General Expenses 100,000 Pending 100,000
Contractual Services 217,372 Pending 217,372
Total Estimated Costs $919,071 $780,929 $1,700,000
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STAKEHOLDER ENGAGEMENT
Community outreach and stakeholder engagement efforts for the project have been extensive and remain a central component of the overall process. The current focus is to encourage robust community participation through master planning meetings and associated polling activities.
ENVIRONMENTAL REVIEW
California Environmental Quality Control Act (CEQA) review is underway for the Cubberley Master Plan Project and will be brought to the City Council at a future date. Council action on this item is not a project defined by CEQA because voter polling is organizational administrative activity that will not result in a direct or indirect physical change in the environment. CEQA Guidelines section 15378(b)(5).
ATTACHMENTS
Attachment A: Amendment No 1 to Contract No. C25193598 with FM3 APPROVED BY:
Lauren Lai, Administrative Services Director
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Vers.: Aug. 5, 2019