Agenda packet — Palo Alto City Council, December 15, 2025 (part 1 of 4)

CITY COUNCIL
Special Meeting
Monday, December 15, 2025
Council Chambers & Hybrid
4:30 PM
Amended Agenda
Amended agenda items appear below in RED

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
26, live on YouTube
https://www.youtube.com/c/cityofpaloalto
, and streamed to Midpen Media
Center
https://midpenmedia.org
.

VIRTUAL PARTICIPATION

CLICK HERE TO JOIN

(
https://cityofpaloalto.zoom.us/j/362027238
)
Meeting ID: 362 027 238 Phone:1(669)900-6833

PUBLIC COMMENTS
General

Public

Comment

for

items

not

the

agenda

will

accepted

person

for

three
minutes

amount

time

determined

the

Chair.

General

public

comment

will

heard
for

30 minutes.

Additional

public

comments,

any,

will

heard

the

end

the

agenda.

Public

comments

for

agendized

items

will

accepted

both

person

and

via

Zoom

for

to
three

minutes

amount

time

determined

the

Chair.

Requests

speak

will

taken
until

5 minutes

after

the

staff’s

presentation

determined

the

Chair.

Written

public
comments

can

submitted

advance

[email protected]

and

will

provided

to
the

Council

and

available

for

inspection

the

City’s

website.

Please

clearly

indicate

which
agenda item you are referencing in your subject line.

PowerPoints,

videos,

other

media

presented

during

public

comment

are

accepted

only
by

[email protected]

least

24 hours

prior

the

meeting.

Once

received,

the

Clerk

will

have

them

shared

public

comment

for

the

specified

item.

uphold

strong
cybersecurity

management

practices,

USB’s

other

physical

electronic

storage

devices

are

not
accepted.

Signs

and

symbolic

materials

less

than

2 feet

3 feet

are

permitted

provided

that:

(1)

sticks,
posts,

poles

similar/other

type

handle

objects

are

strictly

prohibited;

(2)

the

items

not
create

facility,

fire,

safety

hazard;

and

(3)

persons

with

such

items

remain

seated

when
displaying

them

and

must

not

raise

the

items

above

shoulder

level,

obstruct

the

view

passage
of other attendees, or otherwise disturb the business of the meeting.

TIME ESTIMATES
Listed

times

are

estimates

only

and

are

subject

change

any

time,

including

while

the
meeting

progress.

The

Council

reserves

the

right

use

less

time

any

item,

to
change

the

order

items

and/or

continue

items

another

meeting.

Particular

items

may

be
heard

before

after

the

time

estimated

the

agenda.

This

may

occur

order

best
manage the time at a meeting or to adapt to the participation of the public.

1 December 15, 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 (4:35 - 4:45 PM)

1. Proclamation Expressing Appreciation to Molly S. Stump Upon Completion of Her Public Service as City Attorney.

CLOSED SESSION (4:45 - 5:30 PM)

2. CONFERENCE WITH CITY ATTORNEY-POTENTIAL LITIGATION
Subject: Initiation of litigation in one case
Authority: Potential Exposure to Litigation Under Government Code Section 54956.9(d) (4)
Number of potential cases: 1, as Plaintiff.

AGENDA CHANGES, ADDITIONS AND DELETIONS

PUBLIC COMMENT (5:30 - 6:00 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 (6:00 - 6:15 PM) Members of the public may not speak to the item(s).

STUDY SESSION (6:15 - 7:15 PM)

3. Receive an update on the Cubberley project and second polling results, and discuss next steps.

Late Packet Report added

CONSENT CALENDAR (7:15 - 7:20 PM)
Items will be voted in one motion unless removed from the calendar by three Council Members.

4. Approval of Minutes from December 1, 2025 Meeting

5. Adoption of a Resolution appointing Caio Arellano as Interim City Attorney

2 December 15, 2025
Materials submitted after distribution of the agenda packet are available for public inspection at www.paloalto.gov/agendas
.

6. Adoption of a Resolution Approving and Attesting to the Veracity of the City's 2024 Power Source Disclosure and Power Content Label Reports. CEQA Status: Not a project

7. Approval of a Surveillance Use Policy for Security Cameras at the Palo Alto Museum at the Roth Building (300 Homer Avenue); CEQA Status - Not a Project

8. Approve
Policy & Services Committee Recommendation to Continue
the Nonprofit
Partnership Workplan Phase I funding process for FY 2027 Budget Cycle, with Additional
Refinements to be Developed by the
and refer refinement of the program to the

Policy &
Services Committee
in January 2026 and Return to Council for Approval
per their
recommendation

Title Updated, Late Packet Report added

9. Policy and Services Committee Recommends Council Amend the Procedures and Protocols Handbook to Allow January Committee Meetings and Schedule Procedures and Protocols Handbook Review Every Other Year: CEQA - Not a Project

10. Reaffirmation of the Carbon Neutral Plan and the Renewable Energy Credit Exchange Program as Recommended by the Utilities Advisory Commission; CEQA Status: Not a project

11. QUASI-JUDICIAL. 3150 El Camino Real [25PLN-00273]: Request for a Final Map to Merge Three Contiguous Parcels to Create a 111,030-Square-Foot Parcel. The Final Map Would Facilitate Construction of a 368-Unit Rental Development Project (24PLN-00230) Previously Approved on July 11, 2025. Zone District: CS (Commercial Services). CEQA Status: Exempt in Accordance with CEQA Guidelines Section 15183.

12. Approval of Partnership Agreement with Metropolitan Transportation Commission, in an Amount Not to Exceed $108,888 to Provide Unlimited Transit Access Available Through the Clipper BayPass Pilot Program for City of Palo Alto Employees Through December 31, 2026; CEQA Status - Not a Project.

13. Accept the City of Palo Alto’s Audited Financial Statements as of June 30, 2025, and the Macias, Gini & O’Connell Management Letter; Approve the FY 2025 Annual Comprehensive Financial Report (ACFR)and Amendments to the FY 2025 Budget in Various Funds; CEQA Status – Not a Project.

14. Approval for the City Manager or Designee to Execute Purchase Order with Zoll Medical Corporation, utilizing a Sourcewell Cooperative Contract to Procure Replacement Pre- hospital Monitors/Defibrillators and ancillary equipment for Emergency Responses for a Total Not-To-Exceed amount of $1,129,138. CEQA Status – Not a Project.

3 December 15, 2025
Materials submitted after distribution of the agenda packet are available for public inspection at www.paloalto.gov/agendas
.

15. Approval of Professional Services Agreement No. C26193655 with Canopy to Support the City of Palo Alto's Urban Forestry Programs for a Term of Three Years and a Not-To- Exceed Amount of $1,236,366, and Approval of a Budget Amendment in the General Fund; CEQA Status - Not a Project

16. Adoption of a Resolution Approving Conduit Financing for Charities Housing Development Corporation, on behalf of El Camino PA, L.P ., for the 130-Unit Affordable Multifamily Housing Rental Project Located at 3001 El Camino Real, and Approving the Issuance of Revenue Bonds not to exceed $80 Million by the California Municipal Finance Authority (CMFA) for the Purpose of Financing and Refinancing the Acquisition, Development, Construction and Equipping of Project; CEQA Status: Not a Project

17. Approval of General Services Contract No. C26195803 with Genuine Parts Company dba Napa Auto Parts for an Amount Not-to-Exceed $6,238,832 for an On-Site Fleet Parts and Inventory Program for a Six-Year Term Utilizing Pricing Set by Cooperative Sourcewell Contract No. 090624-GPC, and Approval of a Budget Amendment in the Vehicle Replacement and Maintenance Fund; CEQA Status - Not a Project

18. Approval of Professional Services Contract Number C26194283 with Keyser Marston Associates, Inc. in the Amount Not-to-Exceed $371,415 to Conduct Development Impact and In-Lieu Fee Study. CEQA Status: Exempt Under CEQA Guidelines Sections 15061(b) (2) and (b)(3).

19. Approval of a Professional Services Contract Number C26196324 with Santa Clara County Communications in an Amount Not to Exceed $100,000 for Public Safety Radio Maintenance and Support for a Period of Five (5) Years; CEQA Status - Not a Project

20. Approval of Professional Services Contract No. C26190778A with Turbo Data LLC, in an Amount Not to Exceed $989,138 to Provide Development, Implementation, Support and Maintenance of a Comprehensive Parking Permit and Citation Management System for five years; CEQA status - not a project.

21. Approval of a Purchase Order with Golden State Fire Apparatus in an Amount Not to Exceed $3,378,458, for the Purchase of One Hybrid Electric Pierce Enforcer Volterra 1500 GPM Pumper and One Diesel Pierce Enforcer 1500 GPM Pumper, Utilizing a Cooperative Purchase Agreement, as Part of the Scheduled Vehicle and Equipment Replacement Capital Improvement Fiscal Year 2025 and 2026 Projects (VR-25000 and VR-26000); CEQA Status – Not a Project

Item Removed Off Agenda

4 December 15, 2025
Materials submitted after distribution of the agenda packet are available for public inspection at www.paloalto.gov/agendas
.

22. Approval of Amendment #1 for Professional Services Contract No. C26195143 in the Amount of $101,292 with Peninsula Healthcare Connection to continue the Downtown Food Closet Operations for a Revised Total Amount Not-to-Exceed $268,521 including the Provision of Outreach, Mental and Physical healthcare to Unhoused and Low- Income Members of the Community for a Period of Two Years; CEQA status – not a project.

23. Approval of Amendment No. 2 to Contract S20176706 with FolgerGraphics, Inc. to Reduce the Scope of Services for Professional Printing and Distribution Services of the Enjoy! Activity Guide through March 2026; CEQA Status – not a project.

24. Adoption of an Ordinance Amending the Fiscal Year 2026 Municipal Fee Schedule to Implement Technical Corrections. CEQA Status: Not a Project CITY MANAGER COMMENTS (7:20 - 7:35 PM)

BREAK (15 MINUTES)

ACTION ITEMS (Item 25: 7:50 - 9:05 PM, Item 26: 9:05 - 10:20 PM) Include: Report of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Report of Officials, Unfinished Business and Council Matters.

25. PUBLIC HEARING/QUASI-JUDICIAL. 1680 Bryant Street [25PLN-00204]. Approval of a Record of Land Use Action to Reclassify the Historic Building Located at 1680 Bryant Street From a Category 2 Resource on the Local Historic Inventory to a Category 3 Resource.

26. Review and Selection of the Locally Preferred Alternative (LPA) to proceed with 15% design and Prepare CEQA and NEPA Documentation for the Grade Separations at Churchill Avenue, Meadow Drive, and Charleston Road Crossings; CEQA status – CEQA and NEPA will be conducted on this project as part of the upcoming scope of work.

This item is a continuation of Agenda Item Number 1 on the City Council December 10, 2025 agenda. The report for this item can be found here under Agenda Item Number 1 here:
https://cityofpaloalto.primegov.com/Portal/Meeting?
meetingTemplateId=18178

On December 10, 2025, Council will receive staff presentation(s) and Public Testimony; this item continued to the December 15, 2025 City Council meeting is for, as needed, Council discussion, deliberation and action – No Public Testimony will be

5 December 15, 2025
Materials submitted after distribution of the agenda packet are available for public inspection at www.paloalto.gov/agendas
.

heard on December 15, 2025.

ADJOURNMENT

INFORMATION REPORTS
Information reports are provided for informational purposes only to the Council and the public but are not listed for action and discussion during this meeting’s agenda.

Feasibility of Marketing Different Housing Typologies without On-Site Parking (2023-2031 Housing Element Program 3.9(B)). CEQA Status: Exempt under CEQA Guidelines Section 15378.

Informational Report on the Annual Review of the City’s Renewable Procurement Plan, Renewable Portfolio Standard Compliance, and Carbon Neutral Electric Supplies for 2024 C.

Surveillance Technology Report for Fiscal Year 2025; CEQA Status – Not a Project D.

Semiannual Update on the Status of Capital Improvement Program Projects; CEQA Status – Not a Project

OTHER INFORMATION
Standing Committee Meetings this week

Finance Committee December 16, 2025 CANCELED
Retail Committee December 17, 2025 CANCELED
Public Comment Letters
Schedule of Meetings

AMENDED AGENDA ITEMS

3. Receive an update on the Cubberley project and second polling results, and discuss next steps.

Late Packet Report added

6 December 15, 2025
Materials submitted after distribution of the agenda packet are available for public inspection at www.paloalto.gov/agendas
.

Policy &
Services Committee
in January 2026 and Return to Council for Approval
per their
recommendation

Title Updated, Late Packet Report added

Item Removed Off Agenda

PUBLIC COMMENT INSTRUCTIONS
Members

the

Public

may

provide

public

comments

teleconference

meetings

via

email,
teleconference, or by phone.

1. Written public comments
may be submitted by email to
[email protected]
.

2. For

person

public

comments

please

complete

speaker

request

card

located

the
table

the

entrance

the

Council

Chambers

and

deliver

the

Clerk

prior

to
discussion of the item.

3. Spoken

public

comments

for

agendized

items

using

computer

smart

phone

will

be
accepted

through

the

teleconference

meeting.

address

the

Council,

click

the

link
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timer

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4. Spoken

public

comments

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use

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listed

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agenda

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know

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last

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You

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advised

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When

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7 December 15, 2025
Materials submitted after distribution of the agenda packet are available for public inspection at www.paloalto.gov/agendas
.

please limit your remarks to the agenda item and time limit allotted.

CLICK HERE TO JOIN
Meeting ID: 362-027-238 Phone: 1-669-900-6833
Americans

with

Disability

Act

(ADA)

the

policy

the

City

Palo

Alto

offer

its

public
programs,

services

and

meetings

manner

that

readily

accessible

all.

Persons

with
disabilities

who

require

materials

appropriate

alternative

format

who

require

auxiliary
aids

access

City

meetings,

programs,

services

may

contact

the

City’s

ADA

Coordinator

at
(650)

329-2550

(voice)

emailing

[email protected]
.

Requests

for

assistance

or
accommodations

must

submitted

least

24 hours

advance

the

meeting,

program,

or
service.

California

Government

Code

§84308
,

commonly

referred

the

"Levine

Act,"

prohibits

an
elected

official

local

government

agency

from

participating

proceeding

involving

a
license,

permit,

other

entitlement

for

use

the

official

received

campaign

contribution
exceeding

$500

from

party

participant,

including

their

agents,

the

proceeding

within

the
last

12 months.

“license,

permit,

other

entitlement

for

use”

includes

most

land

use

and
planning

approvals

and

the

approval

contracts

that

are

not

subject

lowest

responsible

bid
procedures

and

have

value

over

$50,000.

“party”

person

who

files

application

for,

or
is

the

subject

of,

proceeding

involving

license,

permit,

other

entitlement

for

use.

A
“participant”

person

who

actively

supports

opposes

particular

decision

proceeding
involving

license,

permit,

other

entitlement

for

use,

and

has

financial

interest

the
decision.

The

Levine

Act

incorporates

the

definition

“financial

interest”

the

Political

Reform
Act,

which

encompasses

interests

business

entities,

real

property,

sources

income,

sources
of

gifts,

and

personal

finances

that

may

affected

the

Council’s

actions.

you

qualify

a
“party”

“participant”

proceeding,

and

you

have

made

campaign

contribution

a
Council

Member

exceeding

$500

made

within

the

last

12 months,

you

must

disclose

the
campaign contribution before making your comments.

8 December 15, 2025
Materials submitted after distribution of the agenda packet are available for public inspection at www.paloalto.gov/agendas
.

City Council
Staff Report
Report Type: SPECIAL ORDERS OF THE DAY
Lead Department: City Clerk
Meeting Date: December 15, 2025
Report #:2511-5428
TITLE
Proclamation Expressing Appreciation to Molly S. Stump Upon Completion of Her Public Service as City Attorney.

ATTACHMENTS
Attachment A: Proclamation Expressing Appreciation to Molly S. Stump Upon Completion of Her Public Service as City Attorney
APPROVED BY:

Mahealani Ah Yun, City Clerk
Item 1
Item 1 Staff Report

Item 1: Staff Report
Pg.
1 Packet Pg. 9 of 637

EXPRESSING APPRECIATION TO MOLLY S. STUMP

UPON COMLPETION OF HER PUBLIC SERVICE AS CITY ATTORNEY

WHEREAS, Molly S. Stump has dedicated her professional career to public service, leading a generation of public-law attorneys and staff with her intelligence, integrity, and empathy; and
WHEREAS, Molly first served as a Law Clerk to the Honorable Marilyn Hall Patel of the U.S. District Court in San Francisco after graduating Order of the Coif from UC Berkeley Law; and

WHEREAS, Molly exhibited her legal skill and leadership ability in the San Francisco City Attorney’s Office, eventually ascending to General Counsel for the San Francisco International Airport; and

WHEREAS, Molly has served the City of Palo Alto as its City Attorney since her appointment in 2011 as one of four Council-appointed officers; and

WHEREAS, after nearly 15 years of service to Palo Alto, Molly leaves behind a legacy of sound advice, calm judgement, a commitment to public service, and a department of nine attorneys and three professional staff who embody these same qualities; and

NOW, THEREFORE, BE IT RESOLVED, that I, Ed Lauing, Mayor of the City of Palo Alto on behalf of the entire City Council do hereby recognize Molly S. Stump upon completion of her public service as City Attorney.

APPROVED AND PRESENTED: December 15, 2025

______________________
Mayor Ed Lauing

______________________ ______________________
Vice Mayor Vicki Veenker
Councilmember Pat Burt

______________________ ______________________
Councilmember George Lu
Councilmember Julie Lythcott-Haims

______________________ ______________________
Councilmember Keith Reckdahl Councilmember Greer Stone

cÜÉvÄtÅtà|ÉÇ
Item 1
Attachment A - Proclamation
Expressing Appreciation to Molly S.

Stump Upon Completion of Her Public
Service as City Attorney

Item 1: Staff Report
Pg.
2 Packet Pg. 10 of 637

City Council
Staff Report
From: City Manager
Report Type: STUDY SESSION
Lead Department: Community Services
Meeting Date: December 15, 2025
Report #:2512-5636
TITLE
Receive an update on the Cubberley project and second polling results, and discuss next steps.

This report will be a late packet report published on December 11, 2025.

Item 3
Item 3 Staff Report

Item 3: Staff Report
Pg.
1 Packet Pg. 11 of 637

City Council
Staff Report
Report Type: CONSENT CALENDAR
Lead Department: City Clerk
Meeting Date: December 15, 2025
Report #:2512-5632
TITLE
Approval of Minutes from December 1, 2025 Meeting

RECOMMENDATION
Staff recommends that the City Council review and approve the minutes.

ATTACHMENTS
Attachment A: December 1, 2025 Draft Action Minutes
APPROVED BY:

Mahealani Ah Yun, City Clerk
Item 4
Item 4 Staff Report

Item 4: Staff Report
Pg.
1 Packet Pg. 12 of 637

CITY COUNCIL

DRAFT ACTION MINUTES

Page 1 of 5 ends

Regular Meeting
December 1, 2025
The City Council of the City of Palo Alto met on this date in the Council Chambers and by virtual teleconference at 5:32 P.M.

Present In Person: Burt, Lauing, Lythcott-Haims, Reckdahl, Stone, Veenker Present Remotely:

Absent: Lu

Agenda Changes, Additions and Deletions

Public Comment

Council Member Questions, Comments and Announcements

Study Session

1. Receive an update and provide feedback on the City Council’s priority Implementing Neighborhood Town Halls.

NO ACTION

2. Bicycle and Pedestrian Transportation Plan (BPTP) Update: Draft Plan and Near -Term Projects. CEQA Status: Exempt Pursuant to Public Resources Code Section 21080.20.

NO ACTION

Item 4
Attachment A - December
1, 2025 Draft Action
Minutes

Item 4: Staff Report
Pg.
2 Packet Pg. 13 of 637

DRAFT ACTION MINUTES

Page 2 of 5 ends

City Council Meeting
Draft Action Minutes: 12/01/2025
Consent Calendar
Councilmember Stone requested to pull Agenda Item Number 12.

MOTION: Council member Burt moved, seconded by Council member Reckdahl to approve Agenda Item Numbers 3-13, 15-17 (Agenda Item Number 14 Removed Off Agenda).

MOTION PASSED ITEMS 3-11, 13, 15-17: 6-0-1, Lu absent
MOTION PASSED ITEM 12: 5-1-1, Stone abstain, Lu absent

3. Approval of Minutes from November 10 and November 17, 2025 Meetings

4. Policy & Services Committee Recommendation to Adopt Updates to the Advocacy Process Manual; CEQA Status - Not a Project

5. PUBLIC HEARING: Finance Committee Recommends City Council Adopt a Resolution Approving the 2026 Natural Gas Cost of Service Analysis Report, Amending Rate Schedules G -1 (Residential Gas Service), G -2 (Residential Master- Metered and Commercial Gas Service), G -3 (Large Commercial Gas Service) and repealing G -10 (Compressed Natural Gas Service). CEQA Status: Not a Project under Public Resources Code Section 21065.

6. Approval of Purchase Order C26196043 with Carahsoft, Utilizing a General Services Administration Cooperative Agreement, to Procure S/4 Hana Implementation Services, for a term of Twelve Months and a Total Amount Not- To-Exceed of $5,839,230, including $4,399,300 for Basic Services and $439,930 for Additional Services, and Approval of Budget Amendments to the Information Technology; CEQA Status – Not a Project.

7. Approval of Two Contracts: 1) Blanket Purchase Order with Minsait Advanced Control Systems (ACS) in an Amount Not -to-Exceed $1,000,000 to Purchase As -Needed Hardware and Software Components, 2) Professional Services Contract No. C26195119 with Minsait ACS in an Amount Not -to-Exceed $439,450 for SCADA System Software Licensing and Support for a Period of Five Years in an Combined Contracts Amount Not - to-Exceed $1,439,450; CEQA Status – Not a Project

8. Approval of Two Blanket Purchase Orders with S&S Trucking in the Amount of $2,543,677 and with Zanker Road Resource Management LLC in the Amount of $1,090,753 for On -Call Off Hauling Services for a Total Amount Not -to-Exceed of $3,634,430 for a Five Year Term. CEQA Status: Exempt. Pursuant to CEQA Guideline 15302(c) – Maintenance of Existing Utility Systems.

9. Approval of Amendment No. 1 to Contract No. C22181106 with Universal Site Services Inc., to Provide Additional High Pressure Steam Cleaning Services for Downtown Item 4
Attachment A - December
1, 2025 Draft Action
Minutes

Item 4: Staff Report
Pg.
3 Packet Pg. 14 of 637

DRAFT ACTION MINUTES

Page 3 of 5 ends

City Council Meeting
Draft Action Minutes: 12/01/2025
University and California Ave Business Districts, and to Extend the Contract for Six Months for an Additional Amount Not-to-Exceed $239,832; CEQA Status - Not a Project

10. Adoption of (Corrected) 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).

11. Approval of Amendment No. 2 to Contract C09124501A with GreenWaste of Palo Alto to Extend the Term for an Additional Four Years Through June 30, 2030, for an Estimated Average Annual Compensation of $24,840,211, including an Estimated $1,400,589 in Additional Expenses; Approval of Replacement of Aging Collection Vehicles for an Estimated $5,900,000 in Additional Expenses; Approval of a Budget Amendment in the Refuse Fund; and Approval of Amendment No. 1 to the Revocable Non-Exclusive License For Use of a Portion of the Former Los Altos Treatment Plant Located at 1237 San Antonio Road by GreenWaste of Palo Alto Through June 30, 2030; CEQA Status - Not a Project

12. Approval of Seven Items to Support the Automated Weather Observation System Project, AP -19000, at Palo Alto Airport: 1) Approval of Construction Contract No.

C26194026 with Vellutini Corporation DBA Royal Electric Company, in an Amount Not to Exceed $1,699,810; 2) Authorization for the City Manager or Designee to Negotiate Change Orders Up to a Not -to-Exceed Amount of $254,971; 3) Approval and Authorization for the City Manager or Designee to Execute Contract Amendment 3 to Contract No. C21178372C with C&S Engineers, Inc. for a Not -to-Exceed Amount of $464,613 and a Contract Extension Through December 31, 2026; 4) Authorization and Approval for the City Manager or Designee to Execute Contract Amendment 1 to Contract No. C21178372B with Burns & McDonnell for a Contract Extension Through December 31, 2026; 5) Approval and Authorization for the City Manager or Designee to Execute Contract Amendment 1 to Contract No. C211783782A with Centurion Planning & Design LLC to extend the contract term through December 31, 2027; 6) Adoption of a Resolution Authorizing the Submittal of Applications and Execution of Grant Agreements with the California Department of Transportation for Airport Improvement Program Matching Grants; and 7) Approval of a Budget Amendment in the Airport Enterprise Fund; CEQA Status - Exempt Under CEQA Guidelines Section 15302

13. Approval for the City Manager or their Designee to Execute Contract No. C26195084 with SCA of CA, LLC, to Procure Services for the Sweeping of City Parking Garages, Parking Lots and an Underpass for a Period of Five Years for a Total Not to Exceed Amount of $581,852; CEQA Status – Not a Project
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1, 2025 Draft Action
Minutes

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DRAFT ACTION MINUTES

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City Council Meeting
Draft Action Minutes: 12/01/2025

14. FIRST READING: Adoption of an ordinance to Amend Chapters 4.54 and 4.56 of the Palo Alto Municipal Code to Amend the Regulation of Massage Establishments and Hot Tub/Sauna Establishments as Recommended by the Policy & Services Committee; and Adoption of a Resolution to Amend the Administrative Penalty Schedule to Amend Related Penalties; CEQA status - not a project. Item Removed Off Agenda

15. SECOND READING: Ordinance Repealing Chapter 15.04 of the Palo Alto Municipal Code and Adopting a New Chapter 15.04, the California Fire Code (2025 Edition) With Local Amendments and Related Findings (FIRST READING: 11/3/2025, PASSED 6 -0-1, Veenker absent)

16. SECOND READING: Ordinance of the Council of the City of Palo Alto Amending Sections of Chapter 10.56 (“Special Speed Zones”) of Title 10 (Vehicles and Traffic) to Reflect the 2025 Traffic Survey (FIRST READING: November 10, 2025, PASSED 5 -0-2, Stone, Veenker absent)

17. SECOND READING: Ordinance of the Council of the City of Palo Alto Amending Section

18.08.040 of the Palo Alto Municipal Code (The Zoning Map) to Change the Classification of Property Located at 511 Byron St, 660 University Ave, and 680 University Ave/500 Middlefield Rd from RM-20 Low Density Multiple-Family Residential (RM-20) to Planned Community (PC) (FIRST READING: November 10, 2025, PASSED: 4 -1-2, Lu no, Stone, Veenker absent)

City Manager Comments
Ed Shikada, City Manager

Action Items

18. Recommendation from Rail Committee for City Council on the South Palo Alto Bike/Ped Connectivity: Initial Review of Conceptual Design Alternatives and Elimination of Alternatives from Further Consideration; CEQA Status - Not a Project as Defined by CEQA Guidelines Section 15378(b)(4)
MOTION: Councilmember Burt moved, seconded by Vice Mayor Veenker to direct staff to continue to focus evaluations on option A, with a preference for A2.

MOTION PASSED: 5-1-1 Reckdahl recused, Lu absent

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Minutes

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DRAFT ACTION MINUTES

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City Council Meeting
Draft Action Minutes: 12/01/2025

19. Approval of Amendments to the Employment Agreements between the City of Palo Alto and Council Appointed Officers, specifically the City Manager, City Attorney, and City Clerk. CEQA Status - Not a Project
MOTION: Vice Mayor Veenker moved, seconded by Council member Burt to approve and authorize the Mayor to execute the following contract amendments for Council Appointed Officers:

1. Amendment No. 13 to Employment Agreement between the City of Palo Alto and Molly S. Stump (Attachment A);

2. Amendment No. 7 to Employment Agreement between the City of Palo Alto and Ed Shikada (Attachment B); and

3. Amendment No. 2 to Employment Agreement between the City of Palo Alto and Mahealani Ah Yun (Attachment C).

MOTION PASSED: 6-0-1, Lu absent

Adjournment: The meeting was adjourned at 10:12 P.M.

ATTEST: APPROVED:
____________________ ____________________
City Clerk Mayor NOTE: Action minutes are prepared in accordance with Palo Alto Municipal Code (PAMC)

2.04.160(a) and (b). Summary minutes (sense) are prepared in accordance with PAMC Section

2.04.160(c). Beginning in January 2018, in accordance with Ordinance No. 5423, the City Council found action minutes and the video/audio recordings of Council proceedings to be the official records of both Council and committee proceedings. These recordings are available on the City’s website.

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City Council
Staff Report
Report Type: CONSENT CALENDAR
Lead Department: Human Resources
Meeting Date: December 15, 2025
Report #:2511-5573
TITLE
Adoption of a Resolution appointing Caio Arellano as Interim City Attorney

RECOMMENDATION
The Chair of the Council Appointed Officers Committee recommends that the City Council adopt a resolution appointing Caio Arellano as Interim City Attorney until Council completes its active and ongoing recruitment process and appoints a new City Attorney, and the new City Attorney begins service in Palo Alto.

BACKGROUND
City Attorney Molly Stump Informed Council earlier this year of her intention to retire at the end of the 2025 calendar year1. Stump’s advance notice to the Council allowed for an ample planning process which included review and selection of an executive recruitment firm, one on one stakeholder engagement meetings, as well as input from the public through the meetings of the Council Appointed Officers Committee2.

The application period for the City’s next City Attorney opened on Friday November 14, 2025, and will close on Sunday December 14, 2025. After the application period closes, Council will be presented with candidates for consideration and is expected to invite highly qualified applicants to interview in January 2026.

ANALYSIS
Executive recruitments of this level and nature routinely take 6 months to complete. This timeframe includes the initial planning phase, active recruitment and selection, as well as onboarding. Even with the ample noticed provided and the head start achieved, Council likely will not appoint a new City Attorney until the end of February or early March of 2026, with the new appointee beginning their service several weeks after that. This gap requires Council to appoint a qualified attorney to serve as City Attorney on an interim basis. 1 Stump’s service will formally conclude on January 9, 2026, but she will be on leave beginning December 27, 2025. 2 Sept. 9 meeting: https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=17948 and Sept. 22 https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=18033 Item 5
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Caio Arellano joined the City of Palo Alto in February of 2022, serving as an Assistant City Attorney for 10 months before being promoted to Chief Assistant City Attorney in December of 2022. The Chief Assistant City Attorney is a practicing attorney who also assists the City Attorney in managing and directing the operations of the City Attorney’s Office. The Chief Assistant handles complex and high-consequence matters, and also acts as the designee and representative of the City Attorney as needed and in the City Attorney’s absence. Arellano has practiced municipal law for 17 years. Before joining the Palo Alto City Attorney’s Office, he served as an Assistant City Attorney in the cities of Santa Clara and San Mateo. Prior to that, as an Associate in the firm of Atchison, Barisone, Condotti and Kovacevich, Arellano provided legal services to Half Moon Bay and a number of other Northern California cities and special districts.

Arellano has experience and expertise in a wide variety of areas, including planning and development, municipal finance, utilities, and public works/construction.

The resolution before Council will appoint Arellano as City Attorney on an interim basis, effective December 27, 2025, consistent with the last in-office day of retiring City Attorney Stump. Consistent with standard City practice as outlined in the Management and Professional Compensation Plan, the Interim appointment will provide Arellano with working out of classification pay of 10% above his Chief Assistant salary for the duration of the working out of classification assignment. This assignment/pay is within the current salary range of the Chief Assistant City Attorney approved by City Council and the assignment/pay will be in effective from December 27, 2025 through and until the first day of employment of the City’s next City Attorney, or future action by Council specific to this interim assignment.

FISCAL/RESOURCE IMPACT
Costs associated with this temporary increase in pay will be accommodated within the City Attorney Office’s existing FY 2026 Adopted Operating Budget. No adjustment or action by Council is needed.

STAKEHOLDER ENGAGEMENT
As outlined in this memo the Council and the public have been engaged in the City Attorney recruitment process.

ENVIRONMENTAL REVIEW
Council action on this item is not a project as defined by the California Environmental Quality Act (CEQA) in that the amendments to the employment agreements are personnel-related actions. CEQA Guidelines Section 15378(b)(2).

ATTACHMENTS
Attachment A: Resolution Interim Appointment Arellano
APPROVED BY:

Sandra Blanch, Human Resources Director
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NOT YET APPROVED
Resolution No.

A Resolution of the City Council for the City of Palo Alto Appointing Caio Arellano as the Palo Alto Interim City Attorney.

R E C I T A L S
A. The Palo Alto City Charter specifies the duties and functions of the City Attorney for the City of Palo Alto;
B. The Charter further specifies that the City Council shall appoint the City Attorney; C. The Council received notification that City Attorney Molly Stump is retiring effective January 9, 2026;
D. The Council approved the Council Appointed Officers Committee recommendation to direct staff to initiate an executive recruitment for City Attorney;
E. The recruitment is in progress and will not be completed prior to Stump’s first day of leave and subsequent last day of employment with the City.

F. Caio Arellano is currently serving as Chief Assistant in the Palo Alto City Attorney’s Office.

NOW, THEREFORE, the Council of the City of Palo Alto RESOLVES as follows:

SECTION 1. The Council hereby appoints Caio Arellano as interim City Attorney for the City of Palo Alto;
SECTION 2. Caio Arellano shall serve as interim City Attorney at the will of the Council as provided by the Charter, and shall further serve according to all of the terms and provisions
of the Charter and the Municipal Code; and
SECTION 3. Caio Arellano’s appointment will be in effect from December 27, 2025, through and until the first day of employment of the City’s next City Attorney, or future action by Council specific to this interim assignment.

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Attachment A - Resolution
Interim Appointment
C.Arellano

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Introduced and passed:

Ayes:

Noes:

Absent:

Abstentions:

Attest:

City Clerk Mayor
Approved as to form:

Assistant City Attorney City Manager
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Utilities
Meeting Date: December 15, 2025
Report #:2509-5220
TITLE
Adoption of a Resolution Approving and Attesting to the Veracity of the City's 2024 Power Source Disclosure and Power Content Label Reports. CEQA Status: Not a project

RECOMMENDATION
Staff recommends that the City Council adopt a resolution (Attachment A) approving and attesting to the veracity of the City’s Power Source Disclosure reports and Power Content Labels for 2024.

BACKGROUND
Senate Bill 13051 was approved in 1997 to ensure that all retail suppliers of electricity disclose to consumers the sources of energy used to provide the electric service in an accurate, consistent, and easy to understand manner. The SB 1305 Report is commonly referred to as the Power Source Disclosure (PSD) report. The City of Palo Alto is required to submit an annual PSD report to the California Energy Commission (CEC) by June 1st of each year. The information contained in this report is used to prepare the annual Power Content Label (PCL), which is mailed to City of Palo Alto Utilities customers and posted on the City’s website each year at www.cityofpaloalto.org/powercontentlabel and on the CEC’s website at energy.ca.gov/power- content-label.

ANALYSIS
CEC regulations governing the Power Source Disclosure Program2 require retail electricity sellers to engage a third-party certified public accountant to perform an audit to verify the specific purchases, resales, and self-consumption of energy by fuel type.3 However, publicly owned 1 Senate Bill 1305: http://www.leginfo.ca.gov/pub/97-98/bill/sen/sb_1301- 1350/sb_1305_bill_19971009_chaptered.html
2 California Code of Regulations, Title 20, Sections 1391-1394. 3 California Code of Regulations Title 20, Section 1394(a)(2).

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electric utilities are exempt from the audit requirement if the governing board of the utility “submits to the Energy Commission an attestation of the veracity of each annual resource report for the previous year.”7
In Palo Alto’s case, this means that the PSD reports and PCLs for the City’s two retail electricity products (the “standard rate” carbon neutral product and the voluntary PaloAltoGreen product, which is available to all commercial customers and allows them to pay a small premium in order to receive a power supply comprising only wind generation) can both be approved by the City Council, as described above.

In 2024, CPAU’s hydroelectric generation was about 30% greater than long-term average levels, largely due to the record levels of precipitation the state received during the winter of 2022- 2023. Also in 2024, CPAU continued its REC Exchange Program, which involves taking a regional approach to fulfilling its Carbon Neutral Electric Portfolio goals by selling renewable energy from the City’s long-term renewable contracts and using the most cost-effective renewable energy from outside the state to fulfill carbon neutrality requirements. 8 Although the power sourced out-of-state remains renewable and carbon-neutral, the CEC categorizes such power as “unspecified power” on the PSD and PCL documents.

Under the City’s REC Exchange Program and Carbon Neutral Plan, the City sold a total of 160,000 MWh of in-state renewable generation in 2024 and purchased the same volume of out-of-state renewable generation, yielding $10.86 million in net revenue9. Of this amount, $2.83 million was attributable to the REC Exchange Program, and per Council’s direction in 2022, an amount equivalent to this level of net revenue will be set aside in the City’s Cap and Trade Program Reserve and used to fund investments in local decarbonization initiatives (Staff Report 14735).

As a result of these renewable energy sales—and the fact that the CEC’s regulations do not recognize out-of-state renewable generation as an “eligible renewable” energy source—the share of the City’s standard power mix that is attributed to eligible renewables sources on the PSD reports and PCLs was lower in 2024 (38%) than in many previous years, such as 2018 (65%).

However, as noted earlier, the City’s power supply remained carbon neutral in 2024 in accordance with the Council-adopted Carbon Neutral Plan (Staff Report 11556 10), and the City remained in compliance with the state’s Renewable Portfolio Standard (RPS) mandate.

Utilities Department staff submitted the City’s annual PSD reports for calendar year 2024 (Exhibit 7 California Code of Regulations Title 20, Section 1394(a)(2). 8 The City Council approved the REC Exchange Program in August 2020 (Staff Report 11556):
https://www.paloalto.gov/files/assets/public/v/1/agendas-minutes-reports/reports/city-manager-reports- cmrs/year-archive/2020-2/id-11566.pdf.
9 There is typically a lag of up to 12 months before the City receives the funds from these transactions, due to the time required for the RECs to be registered and transferred, as well as the time required for the billing and settlements process to transpire.
10 Staff Report 11556: https://www.paloalto.gov/files/assets/public/v/1/agendas-minutes-reports/reports/city- manager-reports-cmrs/year-archive/2020-2/id-11566.pdf
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A to Attachment A) to the CEC in May 2025, along with the associated attestation form. The City’s 2024 PCLs (Exhibit B to Attachment A) were mailed to each electric utility customer as a bill insert in November 2025, in accordance with the Power Source Disclosure Program regulations.15 They are also posted on the City’s website. The attached resolution (Attachment A) approves the annual PSD reports and PCLs for both the standard power mix and the PaloAltoGreen product and provides for Council’s attestation to the veracity of these four documents as required for exemption from the third-party audit requirement.

Staff anticipates submitting the City’s annual PSD reports for calendar year 2025 to the CEC by June 1, 2026 and providing the 2025 PCLs to electric customers by October 1, 2026.

FISCAL/RESOURCE IMPACT
Adoption of the attached resolution will not result in a financial impact to the City.

STAKEHOLDER ENGAGEMENT
Staff has mailed a copy of the City’s 2024 PCLs to each electric utility customer as a bill insert.

This year’s PCLs have also been posted on the City’s website.

ENVIRONMENTAL REVIEW
Adoption of the attached resolution is not subject to California Environmental Quality Act (CEQA) review as an administrative government activity that will not result in any direct or indirect physical change to the environment as a result (CEQA Guidelines section 15378(b)(5)).

ATTACHMENTS
Attachment A: Resolution Approving 2024 Annual PSD and PCL Reports APPROVED BY:

Alan Kurotori, Director of Utilities
Staff: Jim Stack, PhD, Senior Resource Planner
15 California Code of Regulations Title 20, Section 1393.1: “The power content label shall be provided to customers in written promotional materials by the end of the first complete billing cycle for the fourth quarter of the year.” Item 6
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*NOT YET APPROVED* Attachment A
Resolution No. ____
Resolution of the Council of the City of Palo Alto Approving and Attesting to the Veracity of the City’s 2024 Power Source Disclosure and Power Content Label Reports

R E C I T A L S
A. The California Legislature adopted Senate Bill 1305 in 1997 to ensure that all retail suppliers of electricity, including the City of Palo Alto, disclose to consumers the sources of energy used to provide electric service in an accurate, reliable and easy to understand manner.

B. The SB 1305 Report is commonly referred to as the Power Source Disclosure (PSD) report, which shows the City’s electric portfolio purchases for the prior calendar year, as well as the fuel mix for the City’s retail electricity sales for the prior calendar year.

C. The information contained in the PSD report is used to prepare the City’s annual Power Content Label (PCL), which discloses the fuel mix of the City’s retail electricity sales during the prior calendar year, as well as the fuel mix for the state as a whole, and which is mailed to the City’s electric utility customers via a bill insert every year.

D. California Code of Regs., title 20, section 1394(a)(2) allows the City Council to approve and attest to the veracity of each PSD report for the previous year, including the reports for Palo Alto’s voluntary PaloAltoGreen product, which is provided to commercial customers who participate in the PaloAltoGreen program.

E. The PSD report submissions for both the City’s standard carbon neutral power portfolio, and the City’s PaloAltoGreen product are prepared by the Northern California Power Agency (NCPA), a joint powers agency of which Palo Alto is a member. The draft PSD reports are then checked by City staff against the City’s account in the Western Renewable Energy Generation Information System (WREGIS), where the City tracks its renewable and carbon-free energy. The PaloAltoGreen renewable energy supplies are then verified by a third-party verifier, in order to achieve Green-e certification for that program.

F. In May 2025, Utilities Department staff submitted the 2024 Annual PSD reports for both the City’s standard carbon neutral portfolio and the PaloAltoGreen program, to the Energy Commission in accordance with the applicable regulations.

G. California Code of Regs., title 20, section 139 3.1(b)(2) states that the power content label shall be provided to customers in written promotional materials by the end of the first complete billing cycle for the fourth quarter of the year. For the City, this means the October billing cycle, which is provided to customers in November.

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Approving 2024 Annual PSD
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*NOT YET APPROVED* Attachment A
The Council of the City of Palo Alto RESOLVES as follows:

SECTION 1. The City Council approves the submission and attests to the veracity of the 2024 Annual Power Source Disclosure reports for the City’s standard carbon neutral portfolio and the City’s voluntary PaloAltoGreen program (attached as Exhibit A to this resolution), which staff submitted to the California Energy Commission in May 2025.

SECTION 2. The City Council approves and attests to the veracity of the 2024 Annual Power Content Label reports for the City’s standard carbon neutral portfolio and the City’s voluntary PaloAltoGreen program (attached as Exhibit B to this resolution) , which staff distribute d to Utilities customers as an insert in their November Utilities bills.

S
ECTION 3. The Council finds that the adoption of this resolution is not subject to California Environmental Quality Act (CEQA) review because it is an administrative government activity that will not result in any direct or indirect physical change to the environment (CEQA Guidelines section 15378(b)(5)).

INTRODUCED AND PASSED:

AYES:

NOES:

ABSENT:

ABSTENTIONS:

ATTEST:

City Clerk Mayor
APPROVED AS TO FORM: APPROVED:

City Attorney or Designee City Manager
Director of Utilities

Director of Administrative Services
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Submit the Annual Report and signed Attestation in PDF format with the Excel version of the Annual Report to [email protected]. Remember to complete the Retail Supplier Name and contact information above.

NOTE: Information submitted in this report is not automatically held confidential.

If your company wishes the information submitted to be considered confidential an authorized representative must submit an application for confidential designation California Energy Commission's website.

If you have questions, contact Power Source Disclosure (PSD) staff at [email protected] or (916) 639-0573.

WEBSITE URL

FOR PCL

POSTING
www.paloalto.gov/powercontentlabel
CITY, STATE, ZIP Palo Alto, CA 94301
PHONE (650) 329-2314
EMAIL [email protected]

CONTACT INFORMATION
NAME James Stack
TITLE Senior Resource Planner
MAILING 250 Hamilton Ave.
2024 POWER SOURCE DISCLOSURE ANNUAL REPORT
For the Year Ending December 31, 2024
Retail suppliers are required to use the posted template and are not allowed to make edits to this format. Please complete all requested information.

GENERAL INSTRUCTIONS

RETAIL SUPPLIER NAME
City of Palo Alto Utilities
Exhibit A
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Annual Data
Instructions:

1. Enter the electricity portfolio name in cell O25 and additional electricity portfolio names as needed in cells P25-V25.

2. Enter information about all power procurements and retail sales. Insert additional rows as needed. All fields in white should be filled out. Fields in grey auto-populate as needed and should not be filled out.

3. For all specified purchases, enter the facility name, fuel type, state or province, WREGIS ID of REC source, RPS ID of REC source, EIA ID of delivered energy, gross MWhs procured, and specified resales MWhs.

4. For firmed-&-shaped procurements specifically, enter all fields from step 3. Additionally, enter the EIA ID of the substitute power in the "EIA ID of delivered energy" field and select "Yes" in the "Firmed-&-Shaped Resource?" field. If the associated GHG emissions are eligible for firmed-&-shaped grandfathering, select "Yes" in the relevant field.

5. Proxy EIA IDs for unspecified power and specified system mixes from asset-controlling suppliers have been provided. Enter "Unspecified Power", "BPA", or "Tacoma Power" as applicable.

6. Proxy EIA IDs for aggregated reporting of WAPA CVP or PCIA resoures; Enter "CVP", "PCIA Solar", "PCIA Wind", "PCIA Eligible Hydro", or "PCIA Large Hydro" as applicable.

7. Procurements of unspecified power must not be entered as line items below; unspecified power will be calculated automatically in the individual electricity portfolio tables to the right after all specified resources have been allocated.

8. Allocate net MWhs procured to each electricity portfolio until the loads are balanced across each portfolio. If the total Net MWhs Procured exceeds the total retail sales of all portfolios, allocate only enough MWh to meet the retail sales of each portfolio.

Facility Name Fuel Type State or
Province
WREGIS
ID of REC
source
RPS ID
of REC
source
EIA ID of
delivered
energy
Gross
MWhs
Procured
Specified
Resales
MWhs
GOLDEN FIELDS SOLAR III Solar CA W10886 64555 63859 66476 WAPA - NIMBUS Eligible Hydroelectric CA W1161 61045 444 8176 WAPA - STAMPEDE Eligible Hydroelectric CA W1177 61046 7066 452 NEW SPICER MEADOWS Eligible Hydroelectric CA W1260 61580 54554 762 HIGH WINDS WIND CA W229 60726 56075 5408
KETTLEMAN SOLAR Solar CA W4695 62422 59633 36702
HAYWORTH SOLAR Solar CA W4719 62744 59009 42003
FRONTIER SOLAR - CROW CREEK SOLAR I Solar CA W4962 62248 60039 34253 ELEVATION SOLAR Solar CA W5298 63192 59964 92129
WESTERN ANTELOPE BLUE SKY RANCH B Solar CA W5300 61518 59961 40708 UNITARIAN UNIVERSALIST CHURCH OF PALO ALTO Solar CA W7382 63983 P232 132 HP INC. Solar CA W7686 64036 62732 2002
445 BRYANT ST. PARKING GARAGE Solar CA W5647 63610 P229 327 520 Webster St. Parking Garage Solar CA W5648 63611 P231 560 275 CAMBRIDGE AVE. PARKING GARAGE Solar CA W5649 63982 P228 322 475 CAMBRIDGE AVE. PARKING GARAGE Solar CA W5650 63981 P230 461 WAPA - FOLSOM Large Hydroelectric CA 441 47865
WAPA - GIANELLI Large Hydroelectric CA 448 9592
WAPA - J.F. CARR Large Hydroelectric CA 442 20318
WAPA - KESWICK Large Hydroelectric CA 443 28373
WAPA - NEW MELONES Large Hydroelectric CA 6158 43083
WAPA - O'NEILL Large Hydroelectric CA 446 120
WAPA - SHASTA Large Hydroelectric CA 445 184106
WAPA - SPRING CREEK Large Hydroelectric CA 450 26242
WAPA - TRINITY Large Hydroelectric CA 451 31879
COLLIERVILLE Large Hydroelectric CA 54555 121008
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5. Proxy EIA IDs for unspecified power and specified system mixes from asset-controlling suppliers have been provided. Enter "Unspecified Power", "BPA", or "Tacoma Power" as applicable.

6. Proxy EIA IDs for aggregated reporting of WAPA CVP or PCIA resoures; Enter "CVP", "PCIA Solar", "PCIA Wind", "PCIA Eligible Hydro", or "PCIA Large Hydro" as applicable.

Over allocation
check ✓
Under allocation
check
✓
Coal check ✓
Negative
oversupply check ✓
Retail
Sales 29142 863115
Unmet
Load 29142 19656
Net MWhs
Procured
Firmed &
Shaped
Resource?
Eligible for
Firmed &
Shaped
Grandfath
ering?
Total EF
(MT
CO2e/MWh)
Total
GHGs
PCL EF
(MT
CO2e/MW
h)
Palo Alto Green Standard Rate
Remain
der/Ove
rsupply
66476 0.0000 0.0000 66476
8176 0.0000 0.0000 8176
452 0.0000 0.0000 452
762 0.0000 0.0000 762
5408 0.0000 0.0000 5408
36702 0.0000 0.0000 36702
42003 0.0000 0.0000 42003
34253 0.0000 0.0000 34253
92129 0.0000 0.0000 92129
40708 0.0000 0.0000 40708
132 0.0000 0.0000 132
2002 0.0000 0.0000 2002
327 0.0000 0.0000 327
560 0.0000 0.0000 560
322 0.0000 0.0000 322
461 0.0000 0.0000 461
47865 0.0000 0.0000 47865
9592 0.0000 0.0000 9592
20318 0.0000 0.0000 20318
28373 0.0000 0.0000 28373
43083 0.0000 0.0000 43083
120 0.0000 0.0000 120
184106 0.0000 0.0000 184106
26242 0.0000 0.0000 26242
31879 0.0000 0.0000 31879
121008 0.0000 0.0000 121008
#N/A #N/A #N/A
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Palo Alto Green Portfolio Totals PCL Data
Retail Sales 29142
Total Specified 0
Biomass & Biogas 0 0%
Geothermal 0 0%
Eligible Hydroelectric 0 0%
Solar 0 0%
Wind 0 0%
Large Hydroelectric 0 0%
Nuclear 0 0%
Emerging Technologies 0 0%
Other 0 0%
Natural Gas 0 0%
Coal & Petroleum 0 0%
Unspecified Power - ACS 0
Unspecified Power - Spot Market 29142
Unspecified Power - Total 29142 100%
Total PCL GHGs (MT CO2e) 12472.8
Emissions intensity (MT CO2e/MWh) 0.428
PCL GHG Intensity (lbs CO2e/MWh) 944
Unbundled REC % 96%
Palo Alto Green
Facility Name Fuel Type Net Procurement
Annual PCL
GHGs (MT
CO2e)
- - - 0
- - - 0
- - - 0
- - - 0
- - - 0
- - - 0
- - - 0
- - - 0
- - - 0
- - - 0
- - - 0
- - - 0
- - - 0
- - - 0
- - - 0
- - - 0
- - - 0
- - - 0
- - - 0
- - - 0
- - - 0
- - - 0
- - - 0
- - - 0
- - - 0
- - - 0
- - - 0
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Standard Rate Portfolio Totals PCL Data
Retail Sales 863115
Total Specified 843459
Biomass & Biogas 0 0%
Geothermal 0 0%
Eligible Hydroelectric 9390 1%
Solar 316075 37%
Wind 5408 1%
Large Hydroelectric 512586 59%
Nuclear 0 0%
Emerging Technologies 0 0%
Other 0 0%
Natural Gas 0 0%
Coal & Petroleum 0 0%
Unspecified Power - ACS 0
Unspecified Power - Spot Market 19656
Unspecified Power - Total 19656 2%
Total PCL GHGs (MT CO2e) 8412.8
Emissions intensity (MT CO2e/MWh) 0.010
PCL GHG Intensity (lbs CO2e/MWh) 21
Unbundled REC % 15%
Standard Rate
Facility Name Fuel Type Net Procurement
Annual PCL
GHGs (MT
CO2e)
GOLDEN FIELDS SOLAR III Solar 66476 0
WAPA - NIMBUS Eligible Hydroelectric 8176 0
WAPA - STAMPEDE Eligible Hydroelectric 452 0
NEW SPICER MEADOWS Eligible Hydroelectric 762 0
HIGH WINDS WIND 5408 0
KETTLEMAN SOLAR Solar 36702 0
HAYWORTH SOLAR Solar 42003 0
FRONTIER SOLAR - CROW CREEK SOLAR ISolar 34253 0
ELEVATION SOLAR Solar 92129 0
WESTERN ANTELOPE BLUE SKY RANCH BSolar 40708 0
UNITARIAN UNIVERSALIST CHURCH OF PALO ALTOSolar 132 0
HP INC. Solar 2002 0
445 BRYANT ST. PARKING GARAGE Solar 327 0
520 Webster St. Parking Garage Solar 560 0
275 CAMBRIDGE AVE. PARKING GARAGESolar 322 0
475 CAMBRIDGE AVE. PARKING GARAGESolar 461 0
WAPA - FOLSOM Large Hydroelectric 47865 0
WAPA - GIANELLI Large Hydroelectric 9592 0
WAPA - J.F. CARR Large Hydroelectric 20318 0
WAPA - KESWICK Large Hydroelectric 28373 0
WAPA - NEW MELONES Large Hydroelectric 43083 0
WAPA - O'NEILL Large Hydroelectric 120 0
WAPA - SHASTA Large Hydroelectric 184106 0
WAPA - SPRING CREEK Large Hydroelectric 26242 0
WAPA - TRINITY Large Hydroelectric 31879 0
COLLIERVILLE Large Hydroelectric 121008 0
- - - 0
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28,014

RETIRED UNBUNDLED RECS
Facility Name
Fuel
Type
State or
Province RPS ID
Total
Retired
(in MWh)
TB Flats Wind II Wind WY 64941 28014
Palo Alto Green
Unbundled RECs
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130,000

RETIRED UNBUNDLED RECS
Facility Name
Fuel
Type
State or
Province RPS ID
Total
Retired
(in MWh)
Crossing Trails Wind CO 65038 35000
Dunlap I Wind WY 61188 19100
Elkhorn Valley Wind Farm Wind OR 61034 5880
Goodnoe Hills Wind WA 60819 6600
Cedar Creek Wind CO 60822 18000
Grand View 2 West Solar ID 61595 3312
Granite Mountain Solar East, LLC Solar UT 63670 21300
Project 10a Solar CA 64788 188
Project 3 Solar CA 64785 180
Townsite Project Solar NV 64813 20440
Standard Rate
Unbundled RECs
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2024 POWER SOURCE DISCLOSURE ANNUAL REPORT

ATTESTATION FORM
For the Year Ending December 31, 2024
City of Palo Alto Utilities
I, James Stack, Senior Resource Planner, declare under penalty of perjury, that the information provided in this report is true and correct and that I, as an authorized agent of City of Palo Alto Utilities, have authority to submit this report on the retail supplier's behalf. I further declare that all of the electricity claimed as specified purchases as shown in this report was sold once and only once to retail customers.Name: James StackRepresenting: City of Palo Alto UtilitiesSignature: __________________Dated: 5/28/2025Executed at: Palo Alto, CA Item 6
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COMMERCIAL POWER CONTENT LABEL 2024
Persons with disabilities who require materials in an appropriate alternative format, auxiliary aids, or modifications to policies or procedures to access City meetings, programs, or services should contact the City’s ADA Coordinator George Hoyt at (650) 329-2550 or by emailing [email protected].
12/25
Printed on 100% post-consumer recycled paper, bleached without chlorine.

WHERE DOES OUR
ELECTRICITY COME FROM?
POWER SOURCES IN 2024 CPAU power sources include: six solar PV projects, one wind project, five landfill gas-fired projects, the Calaveras hydroelectric project, and the Western Area Power Administration contract, which is sourced from Central Valley Project hydroelectric facilities. All of these resources are located in California. Power supply percentages vary annually based on the available output from our contracted generators. In 2024, CPAU’s hydroelectric generation was significantly higher than long-term average levels due to favorable weather conditions, so CPAU had a large surplus of renewable generation that it was able to sell to other utilities, which helped lower CPAU’s rates.
100% CARBON NEUTRAL ELECTRICITY SINCE 2013 Carbon neutral electricity comes from a variety of sources, including renewable resources like solar, wind and small hydroelectric plants. Large hydroelectric sources are also carbon-free, but the state of California doesn’t consider them renewable.

PaloAltoGreen’sa Prospective Product Content
Labelb for 2025 Consists of 100% Wind Energyc
a PaloAltoGreen is a voluntary renewable energy
program from City of Palo Alto Utilities that matches up to 100% of your estimated monthly electricity usage with
Green-e
® certified Renewable Energy Credits (RECs)
from new renewable energy resources, specifically
from generation facilities that first began commercial
operation in the last 15 years.
b Prospective Product Content Label: These figures reflect the renewables that we have contracted to provide.

Actual figures may vary according to resource availability.

We will annually report to you before October 1st of next year in the form of a Historical Product Content Label the actual resource mix of the electricity you purchased.
c Sourced from wind energy RECs located in the western
U.S. (CA, OR, WA, ID, NV, UT, AZ, MT, WY, CO, or NM) or Canada (BC or AB).

Green-e
Energy

CERTIFIED
PaloAltoGreen™
PaloAltoGreen is Green-e®
Energy certified and meets the
environmental and consumer-
protection standards set forth
by the nonprofit Center for
Resource Solutions.

For more information
on Green-e®
Certified Energy, call
1-888-63-GREEN or
visit green-e.org
PaloAltoGreen 2024 Historical Product Content
Label (reflected in the “Palo Alto Green” column of
the table on page 2): These figures reflect the power
delivered to PaloAltoGreen’s customers in 2024.
‘Unspecified Power’ was sourced from wind energy
facilities in Montana and Wyoming.

Find more details at paloalto.gov/PowerContentLabel and paloalto.gov/CarbonNeutral ● LARGE HYDROELECTRIC—59%
● SOLAR—37%
● WIND—1%
● ELIGIBLE HYDROELECTRIC—1%
● UNSPECIFIED POWER—2%
Like a nutrition facts label that shows the ingredients in food, the Power Content Label shows the sources of electricity purchased by City of Palo Alto Utilities to power local homes and businesses.

Exhibit B
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Resolution Approving
2024 Annual PSD and
PCL Reports

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Resolution Approving
2024 Annual PSD and
PCL Reports

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CHECK OUT PALO ALTO’S POWER CONTENT LABEL FOR 2024

WHERE DOES OUR
ELECTRICITY COME FROM?
Find more details at
paloalto.gov.org/PowerContentLabel
and paloalto.gov/CarbonNeutral
Persons with disabilities who require materials in an appropriate alternative format, auxiliary aids, or modifications to policies or procedures to access City meetings, programs, or services should contact the City’s ADA Coordinator George Hoyt at (650) 329-2550 or by emailing [email protected].
12/25 Printed on 100% post-consumer recycled paper, bleached without chlorine. ● LARGE HYDROELECTRIC—59%
● SOLAR—37%
● WIND—1%
● ELIGIBLE HYDROELECTRIC—1%
● UNSPECIFIED POWER—2%
Like a nutrition facts label that shows the ingredients in food, the Power Content Label shows the sources of electricity purchased by City of Palo Alto Utilities to power local homes and businesses.

POWER SOURCES IN 2024
CPAU power sources include: six solar PV projects, one wind project, five landfill gas-fired projects, the Calaveras hydroelectric project, and the Western Area Power Administration contract, which is sourced from Central Valley Project hydroelectric facilities. All of these resources are located in California.

Power supply percentages vary annually based on the available output from our contracted generators. In 2024, CPAU’s hydroelectric generation was significantly higher than long-term average levels due to favorable weather conditions, so CPAU had a large surplus of renewable generation that it was able to sell to other utilities, which helped lower CPAU’s rates. 100% CARBON NEUTRAL ELECTRICITY SINCE 2013
Carbon neutral electricity comes from a variety of sources, including renewable resources like solar, wind and small hydroelectric plants. Large hydroelectric sources are also carbon-free, but the state of California doesn’t consider them renewable.

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2024 Annual PSD and
PCL Reports

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Resolution Approving
2024 Annual PSD and
PCL Reports

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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Administrative Services
Meeting Date: December 15, 2025
Report #:2510-5378
TITLE
Approval of a Surveillance Use Policy for Security Cameras at the Palo Alto Museum at the Roth Building (300 Homer Avenue); CEQA Status - Not a Project

RECOMMENDATION
Staff recommend that the City Council approve the attached surveillance use policy (Attachment A) for the use of security cameras to enhance security and safety and deter unauthorized or criminal activity at the Palo Alto Museum at the Roth Building located at 300 Homer Avenue.

BACKGROUND
The Palo Alto Museum leases space from the City of Palo Alto to operate at the Roth Building.

To prevent incidents of vandalism or theft in or around the property, security cameras have been installed on the exterior and in the interior of the building. The resulting footage will provide evidence to the Palo Alto Police Department (PAPD) and other relevant law enforcement personnel, if an incident should occur.

ANALYSIS
Palo Alto’s Surveillance Technology Ordinance, codified PAMC § 2.30.620, et seq., sets criteria and procedures to protect personal privacy in the acquisition and use of surveillance technology and provide for ongoing oversight. Security camera technology is “surveillance technology” as defined by the ordinance. The ordinance requires City Council approval of the acquisition of new surveillance technology and of a Surveillance Use Policy specific to each new approved technology. In approving new surveillance technology, the Council must determine that its benefits outweigh the associated costs and concerns.

The ordinance sets forth specific elements that must be present in a Surveillance Use Policy, including limitations on use, access, and retention, as well as a description of compliance procedures. In coordination with the Palo Alto Museum, staff has prepared and attached a Item 7
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surveillance Use Policy, which addresses each of these elements.

Prior to approval of a new surveillance activity by the Council, the ordinance requires the completion of a Surveillance Evaluation, consisting of five specific elements below.

Surveillance Evaluation
1) A description of the surveillance technology, including how it works and what information is captured;
The surveillance technology will include security cameras and monitoring systems designed to capture real-time video and audio footage. These devices will record activities in and outside of the building. The technology may also include motion detectors and alarm systems that notify designated personnel of suspicious activities.
2)Information on the proposed purpose, use and benefits of the surveillance technology; The primary purpose of implementing surveillance technology is to enhance the safety and security of the Roth Building and its contents. It will also provide evidence to the Palo Alto Police Department (PAPD) if an incident should occur inside or outside the building.
3)The location or locations where the surveillance technology may be used; Surveillance technology is located inside and outside of the Roth Building. This will provide comprehensive coverage of high-risk areas prone to vandalism, theft or other criminal activity.
4)Existing federal, state and local laws and regulations application to the surveillance technology and the information it captures; the potential impacts on civil liberties and privacy; and proposals to mitigate and manage any impacts; Surveillance technology will comply with applicable laws related to video and audio recording. This includes Labor Code section 435, which forbids employers from recording in a restroom, locker room, or changing room; and Penal Code section 632, which prohibits recording audio of “confidential communication,” subject to exceptions such as for public meetings under Penal Code section 632(c).

Mitigation Actions:
• Access to surveillance footage will be limited to authorized Palo Alto Museum management, Assistant Directors or Directors overseeing City staff who manage shared spaces, and law enforcement personnel for law enforcement purposes. • Encryption and access control mechanisms will safeguard the footage.

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5)The costs of the surveillance technology, including acquisition, maintenance, personnel and other costs, and current or potential sources of funding.

All costs to purchase, install, and maintain the cameras and the data collected will be the responsibility of the Palo Alto Museum.

FISCAL/RESOURCE IMPACT
There is no cost to the city. The Palo Alto Museum will maintain all security cameras at the Roth Building.

STAKEHOLDER ENGAGEMENT
The Administrative Services Department coordinated with the Palo Alto Museum to develop the policy.

ENVIRONMENTAL REVIEW
Council action on this item is not a project as defined by CEQA because approval of this surveillance policy is an administrative activity that will not result in direct or indirect physical changes in the environment. CEQA Guidelines section 15378(b)(5).

ATTACHMENTS
Attachment A: Surveillance Use Policy for the Palo Alto Museum at the Roth Building APPROVED BY:

Lauren Lai, Administrative Services Director
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NOT YET APPROVED

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Surveillance Use Policy for Security Cameras
at the Palo Alto Museum at the Roth Building

The Palo Alto Museum (“Museum”) leases space from the City of Palo Alto (“City”) at the Roth Building. Security cameras have been installed to deter vandalism, theft, and capture other incidents of criminal activities. The Palo Alto Museum is responsible for all costs associated with the use and maintenance of the cameras and will be responsible for complying with this policy.

In accordance with the Palo Alto Municipal Code Section PAMC § 2.30.680(d), the Surveillance Use Policy for the use of security cameras by the Palo Alto Museum within and on City-owned property is as follows:

1. Intended Purpose. The intent of secu rity cameras is to enhance the security and safety of Palo Alto Museum personnel and the public and deter and capture incidents of vandalism, theft, and other criminal activity at the Roth Building.

2. Authorized Uses. Authorized Museum staff (see list below) may only access surveillance video (“footage”) for official and legitimate security, safety, and law enforcement purposes consistent with this Policy. Upon request, the Museum shall disclose footage to Assistant Directors or Directors overseeing City staff who manage shared spaces within the Roth Building.

The following uses of security cameras are specifically prohibited:

a. Harssament or intimidation. It is a violation of this Policy to use the system to harass and/or intimidate any individual or group. b. Personal Use. It is a violation of this Policy to use the system for any personal purpose.
c. First Amendment Rights. It is a vi olation of this Policy to use the system or data for the purpose or known effect of infringing upon First Amendment rights of any person.
d. Invasion of Privacy. It is a violatio n of this Policy to use the system or data in any manner contrary to local, state, and federal privacy laws.

3. Information Collected. Security cameras will record video and audio (if permitted by law). Depending on the specific technology used, metadata such as time, date, and location of the cameras may be documented with the video.

4. Safeguards. All footage will be clos ely safeguarded and protected by both procedural and technological means. Persons with the Palo Alto Museum will observe the following safeguards regarding access to and use of stored data:

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Attachment A - Surveillance
Use Policy for the Palo Alto
Museum at the Roth
Building

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NOT YET APPROVED

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a. All footage shall be accessibl e only through a login/password- protected system with multi-factor authentication (MFA). b. The following individuals from t he Palo Alto Museum shall have access to the footage: Marguerite Gong Hancock (President and CEO), Nelson Ng (Board Chair), Diane Moon (COO), and Kitzi Tanner (Facilities Manager). Footage may be forwarded to relevant law enforcement personnel, including Palo Alto Police Department (PAPD), for investigation. Once forwarded, PAPD shall control footage under their own Department policies.
c. Persons approved to access footage under this policy are permitted to access the data for legitimate safety, security, and law enforcement purposes only, such as when the footage relates to a specific incident or criminal investigation.

5. Retention. The Palo Alto Museum shall retain footage on a looping basis for thirty days. Footage will be retained longer than the retention period if it is reasonably believed it will become evidence in a specific criminal investigation or is subject to a discovery request or other lawful action to produce records.

6. Access by non-City Entities. The footage may be shared with law enforcement or prosecutorial agencies for official law enforcement purposes or as required by law or court order.

7. Compliance Procedures. Marguerite Gong Hancock (President and CEO), Nelson Ng (Board Chair), Diane Moon (COO), and Kitzi Tanner (Facilities Manager) are responsible for ensuring compliance with procedures, including, but not limited to:

a. Ensuring only designated individua ls are allowed access to footage when authorized by this policy.
b. Ensuring the security and re tention of the footage collected and compliance with applicable laws.
c. Give written notice to the City if an y of the persons listed in this policy are changed to other staff.

Item 7
Attachment A - Surveillance
Use Policy for the Palo Alto
Museum at the Roth
Building

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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: City Manager
Meeting Date: December 15, 2025
Report #:2511-5587
TITLE
Approve the Nonprofit Partnership Workplan Phase I funding process for FY 2027 Budget Cycle, and refer refinement of the program to the Policy & Services Committee per their recommendation
This report will be a late packet report published on December 11, 2025.

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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: City Manager
Meeting Date: December 15, 2025
Report #:2511-5554
TITLE
Policy and Services Committee Recommends Council Amend the Procedures and Protocols Handbook to Allow January Committee Meetings and Schedule Procedures and Protocols Handbook Review Every Other Year: CEQA - Not a Project

RECOMMENDATION
The Policy and Services Committee recommends that the City Council amend the Procedures and Protocols Handbook to reflect two changes:
- In Procedures Section 1.2, update the language to allow for City Council committees to meet in January at the discretion of the committee chair, and - In Procedures Section 8.1, update the language to state that regular review of the City Council Procedures and Protocols Handbook will occur every other year with the process starting in the odd years.

BACKGROUND AND ANALYSIS
The City Council referred a discussion to the Policy and Services Committee focused on recurring items that regularly come to the City Council. The referral was intended to help assess how the City Council can best smooth agenda items throughout the calendar year to reduce the number of items coming to City Council and committees near the end of the calendar year and fiscal year. The Policy and Services Committee discussed this item at their September 9 meeting1 and their November 19 meeting.2 The discussion included a list of ‘recurring items’ that happen annually with the estimated time of year that those items come to City Council and where on the agenda the items are placed. The Committee noted the volume of recurring items and that those items are spaced out throughout the year. The Committee requested staff to 1 September 9, 2025 Policy and Services Meeting; Item #3. Link:
https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=16216 2 November 19, 2025 Policy and Services Committee Meeting, Item #5. Link:
https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=16308 Item 9
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continue to try to spread out the non-recurring items that come to Council (for example items related to Council priority objectives, review of development applications, and other time sensitive items) throughout the year.

After considering the scheduling of recurring items, the Committee considered ways to help with the Council agendas and recommended the following for full Council consideration as amendments to the Handbook:

1. Amend Procedures Section 1.2 of the Procedures and Protocols Handbook to allow for a Council committee to meet in January if desired. This would be at the discretion of the outgoing chairperson and it would be a meeting of the existing committee members before the new committee is formed. This is intended to allow the committees, if needed, to continue to advance items and help with Council agendas in the early part of the calendar year. The change would not obligate committees to meet in January but would allow the Committee Chair to schedule a meeting if needed.

2. Amend Procedures Section 8.1 of the Procedures and Protocols Handbook to set the regular review cycle for the Procedures and Protocols Handbook to be every other year instead of an annual review. This recommendation was made because of the extensive work done on the Procedures and Protocols Handbook in recent years. The Committee motion intends for the Committee to review the Handbook in the odd years and for Council to address any changes early the next year. This would include solicitation of ideas from Council members and staff in the fall and then full Council discussion in early the following year. Such a change would allow for any new Council members to have completed most of their first year on Council before going through the Handbook update.

The Committee also discussed the concept of using a consent agenda for committee meetings.

Staff did not recommend a committee consent agenda as there is some tension between a consent agenda and the Council’s intent for committees. In addition, a consent agenda would require clear guidelines on when items should be included on consent rather than action. The Committee decided that no change is needed because members have the discretion to dispense efficiently with items that do not require extensive discussion, especially if there is general consensus on the topic.

FISCAL/RESOURCE IMPACT
The potential for additional committee meetings in January will require staff resources to prepare the agenda reports and attend the meeting.

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STAKEHOLDER ENGAGEMENT
During these discussions at Policy and Services Committee, there were no public commenters on this topic.

ENVIRONMENTAL REVIEW
Approval of these recommendations are not a project under the California Environmental Quality Act (CEQA), as it is an administrative activity that will not result in direct or indirect changes in the environment (CEQA Guidelines 15378(b)(5).).

APPROVED BY:

Ed Shikada, City Manager
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Utilities
Meeting Date: December 15, 2025
Report #:2510-5281
TITLE
Reaffirmation of the Carbon Neutral Plan and the Renewable Energy Credit Exchange Program as Recommended by the Utilities Advisory Commission; CEQA Status: Not a project

RECOMMENDATION
Staff and the Utilities Advisory Commission (UAC) recommend that the City Council:
1) Reaffirm the Carbon Neutral Plan, including the use of Renewable Portfolio Standard (RPS) eligible, unbundled RECs (Bucket 3 RECs) to neutralize any residual emissions resulting from the use of an hourly emissions accounting methodology; 2) Reaffirm the continuation of the “REC Exchange Program,” whereby the City exchanges bundled RECs from its long-term renewable resources (Bucket 1 RECs) for Bucket 3 RECs, to the maximum extent possible, while maintaining compliance with the state’s RPS regulations, in order to allocate additional revenues toward local decarbonization efforts; and
3) Direct staff to return to the UAC and City Council in 2028 to provide another review of the program’s impacts.

EXECUTIVE SUMMARY
In August 2020, the City Council approved amendments to the electric utility’s Carbon Neutral Plan that clarified and modified policies regarding the sales and exchanges of renewable energy credits (RECs) ( Staff Report 11556 1). The amendments permitted the exchange of Bucket 1 (primarily in-state) RECs for Bucket 3 (primarily out-of-state) RECs, provided the City maintains compliance with State Renewable Portfolio Standard (RPS) regulations. A portion of the earnings from the program were directed to be used to offset electric operational costs and mitigate the economic impacts of the coronavirus pandemic, and the remainder were reserved for local decarbonization programs. Since then, staff has purchased and sold RECs for Calendar Years (CYs) 1 Staff Report 11556: https://www.paloalto.gov/files/assets/public/v/1/agendas-minutes-reports/reports/city- manager-reports-cmrs/year-archive/2020-2/id-11566.pdf
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2020 through 2025 in accordance with the Carbon Neutral Plan amendments, resulting in net earnings of $27.3 million, or about $4.5 million per year.

If the REC Exchange Program authorization is continued, staff projects that it will yield net earnings of about $1.9 million per year over the next five years (CYs 2026-2030). Over time, the REC Exchange program net revenue is projected to gradually decline, due to: (a) the gradual ramping up of RPS requirement levels combined with the City’s increasing load, which together reduce the volume of supplies the City can sell, and (b) some of the City’s older renewable energy contracts expiring. Since the program’s inception it has generated approximately $12.7 million in net revenues3, of which about $10.1 million have been allocated toward local decarbonization efforts,4 while the remainder have been used to offset operational costs and provide for general customer rate reduction.

BACKGROUND
In order to achieve its aggressive greenhouse gas (GHG) emissions reduction goals, in March 2013 the City adopted a Carbon Neutral Plan for the electric supply portfolio, with a goal of achieving carbon neutrality by 2013 ( Resolution 9322 5). The City has achieved its Carbon Neutral Plan objectives each year starting in 2013, primarily via purchases made through its long-term renewable energy contracts, which all provide the City with energy and Bucket 1 RECs. Due to its pursuit of these objectives, the City’s electric supply portfolio currently easily exceeds the state’s Renewable Portfolio Standard (RPS) procurement requirements.

In August 2020, the City Council adopted a resolution allowing for REC Exchanges 6 to take advantage of the significant cost difference between Bucket 1 and Bucket 3 RECs 7 to generate additional revenue for the City’s electric utility and to fund local decarbonization initiatives (Resolution 99138, Staff Report 115569). The Council directed that for 2020 and 2021, two-thirds of the proceeds from this program would go to electric operating cost reductions and one-third toward local GHG emission reduction programs, and that for 2022 onward all of the earnings, up 3 The remainder of the $27.3 million in net revenue from all REC transactions over this period was the result of sales of Bucket 1 RECs that exceeded the City’s total retail sales volumes, rather than for REC Exchange purposes. 4 These funds have been set aside for future local decarbonization spending, but to date the funding for these efforts has come solely from Public Benefits funds, Low Carbon Fuel Standard revenues, and Gas Cap & Trade allowance revenues.
5 Resolution 9322: https://www.paloalto.gov/files/assets/public/v/1/city-clerk/resolutions/reso-9322-33835.pdf 6 The exchange of bundled RECs from the City’s in-state, long-term renewable resources (Bucket 1 RECs) for RPS- eligible, unbundled RECs (Bucket 3 RECs), which usually come from out of state sources. 7 Due to limitations on the use of Bucket 3 RECs for compliance with the state’s RPS mandate (only 10% of a utility’s RPS procurement may consist of Bucket 3 RECs), a significant financial premium currently exists for in-state bundled renewable energy resources (Bucket 1 RECs).
8 Resolution 9913: https://www.paloalto.gov/files/assets/public/v/1/city-clerk/resolutions/reso- 9913.pdf?t=40151.26
9 Staff Report 11556: https://www.paloalto.gov/files/assets/public/v/1/agendas-minutes-reports/reports/city- manager-reports-cmrs/year-archive/2020-2/id-11566.pdf
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to the amount of funds available in the Cap and Trade Reserve, would be devoted to emission reduction programs17.

In December 2022, the City Council also reviewed the results of the REC Exchange Program and voted to reauthorize it. They also directed staff to return to the UAC and City Council in 2025 to provide another review of the program’s impacts, which is the subject of this report.

ANALYSIS
Carbon Neutral Plan Review
In the 2013 Carbon Neutral Plan, the City defined carbon neutrality based on an annual accounting of the City’s load and its carbon neutral electric resources: an electric supply portfolio with “annual net zero greenhouse gas (GHG) emissions, measured at the Citygate, in accordance with The Climate Registry’s Electric Power Sector protocol for GHG emissions measurement and reporting.” At the time this definition was adopted, this was the most granular accounting approach feasible (given the lack of hourly grid emissions data) or necessary (given the small amount of solar capacity installed at that point, and the resulting emissions profile of grid electricity).

In 2020, the City Council voted to update the Carbon Neutral Plan, adopting a definition of carbon neutrality based on an hourly carbon emissions accounting standard. This modification was made because: (a) hourly grid emissions data had recently become available, and (b) the large volume of solar generation on the grid at that point had yielded a wide variation in grid emissions intensities over the course of the year and any given day.

As described in the annual informational reports on the Carbon Neutral Plan to the City Council, the City has achieved its Carbon Neutral Plan objectives each year starting in 2013, primarily through its long-term contracts for in-state hydroelectric and RPS-eligible resources. Since the adoption of the hourly carbon accounting methodology in 2020, the City has purchased approximately 30,000 additional Bucket 3 RECs each year to neutralize the “residual emissions” that result from the use of the more stringent hourly accounting approach, at an average annual cost of $150,000.

REC Exchange Program Results (2020-2025) and Projections (2026-2030) Since approving the REC Exchange Program in August 2020, staff has sold a total of about 835,000 Bucket 1 RECs and purchased an equal number of Bucket 3 RECs, as summarized in Table 1 below.18 These REC Exchange transactions have yielded a total of $12.7 million in net revenue, or about $2.1 million per year.
17 The exact funding mechanism for the local decarbonization spending allocates all net revenues earned from the REC Exchanges to local decarbonization, up to the amount available in the City’s Cap and Trade Reserve. 18 The analysis in this report includes only the REC transactions that were the direct result of Council’s approval of the REC Exchange Program. Staff purchased additional Bucket 3 RECs and sold additional Bucket 1 RECs during this time period (96,198 additional RECs purchased and 49,814 additional sold); however, these transactions were Item 10
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Table 1: Summary of REC Exchange Transactions and Revenue, CY 2020-202521 2020 2021 2022 2023 2024 2025
REC Exchange Volume22 (MWh) 177,494 287,210 179,290 44,062 31,824 115,000 Bucket 1 REC Sales Revenue ($M) 1.96 4.01 2.68 1.78 2.28 3.87 Bucket 3 REC Purchase Cost ($M) 0.60 1.47 0.91 0.26 0.15 0.45 Net Revenue ($M) 1.36 2.54 1.77 1.52 2.13 3.42
RPS Level (%) 33.0% 35.0% 38.9% 39.1% 41.0% 46.0%
When presenting the REC Exchange Program to Council for approval in 2020, staff estimated that it would generate roughly $3.0 million per year in net revenue for CY 2021-2025, with a significant tapering off thereafter due to the steady increases in the statewide RPS requirement level. Actual net revenues from all REC transactions have thus far come in significantly higher than this initial estimate (largely due to a huge spike in Bucket 1 REC prices that occurred in 2024), although many of these REC sales were related to Bucket 1 RECs that exceeded the City’s retail sales totals, and thus are not counted in the REC Exchange Program totals.

Over the next five years, staff estimates that the program will yield approximately $9.5 million in total net revenue, or $1.9 million per year, as shown in Table 2 below. The REC Exchange Program’s earnings are projected to decline sharply in future years, primarily due to the ramping up of the state’s RPS requirement levels, which reduces the volume of Bucket 1 supplies the City is able to sell. In addition, the City has begun to experience load growth in recent years (including a 12% increase from 2022 to 2024), and some of the City’s older renewable energy contracts are set to expire in the coming years; both factors further reduce the volume of Bucket 1 supplies available to exchange.

Table 2: Projected REC Exchange Transactions and Revenue, CY 2026-2030 2026 2027 2028 2029 2030
REC Exchange Volume (MWh) 155,000 177,000 130,000 48,000 8,000 Bucket 1 REC Sales Revenue ($M) 3.87 4.43 3.25 1.20 0.19 Bucket 3 REC Purchase Cost ($M) 0.93 1.15 0.91 0.36 0.06 Net Revenue ($M) 2.94 3.28 2.34 0.84 0.13
RPS Level (%) 50% 52% 55% 57% 60%
necessary, either to satisfy the City’s Carbon Neutral Plan goals during a drought period (Bucket 3 REC purchases in 2021 and 2022), or because the City had an overall surplus of such supplies relative to its RPS procurement requirements (Bucket 1 REC sales).
22 The volume of PCC1 RECs that are sold and the volume of PCC3 RECs that are purchased, pursuant to the REC Exchange Program.

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Impact on Palo Alto’s Supply Portfolio
As discussed in Staff Report 1155624, although exchanging in-state RECs for out-of-state RECs has no real impact on the City’s total electricity-related carbon emissions, the downside of this strategy is that it has a negative impact on the City’s reported portfolio make-up and carbon emissions. California’s RPS law gives preferential treatment to in-state renewable resources over out-of-state resources, and the same is true of how such resources are reported to customers on the annual Power Content Label (PCL). The California Energy Commission’s (CEC’s) PCL regulations require that utilities report their out-of-state (Bucket 3) REC purchases as “unspecified sources of power” rather than under the appropriate renewable energy technology category. Furthermore, utilities are now required to report the annual average GHG emissions intensity of their electric supply on their PCLs—and again, rather than being treated as carbon- free resources like other forms of renewable energy, Bucket 3 RECs are treated as having an emissions intensity equivalent to generic market power purchases (944 lbs of CO2 per MWh, which is almost 20% greater than the average emissions intensity of natural gas generation).

As a result, rather than reporting a supply mix that is over 60% renewable and nearly carbon-free,25 under the REC Exchange Program the City must report a portfolio mix that is less than 40% renewable and is responsible for a moderate amount of carbon emissions. Figure 1 below depicts the City’s projected electric supply portfolio mix in CY 2025, before and after accounting for the REC Exchange Program transactions. Meanwhile, the estimated annual average GHG emissions intensities that the City would report on its PCL for these two portfolios are 45 and 159 lbs CO2 per MWh, respectively.26
24 Staff Report 11556: https://www.paloalto.gov/files/assets/public/v/1/agendas-minutes-reports/reports/city- manager-reports-cmrs/year-archive/2020-2/id-11566.pdf
25 Although the City’s baseline portfolio mix is entirely comprised of renewables and hydroelectric resources, the CEC’s PCL regulations assign a small emission intensity to all biomass generation such as landfill gas generation, which currently accounts for about 9% of the City’s baseline electric supply mix. 26 For reference, the statewide average GHG emissions intensity for CY 2024 was 359 lbs CO2 per MWh, while the City’s average GHG emissions intensity as reported on its PCL (and accounting for the REC Exchange Program transactions) was 21 lbs CO2 per MWh. The City’s emissions intensity is projected to be higher for CY 2025 than for CY 2024 because of a significant decline in hydroelectric generation this year.

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Figure 1: Projected Electric Supplies in CY 2025, with and without REC Exchange Transactions Use of REC Exchange Funds
Of the $12.7 million in net revenue that the REC Exchange Program has yielded since 2020, approximately $2.6 million of it has been directed towards general electric operating cost reductions and the remaining $10.1 million has been set aside for future spending on local decarbonization programs. 30 This split of the overall program funds reflects Council’s original direction that two-thirds of the net proceeds would be used to offset electric supply costs and the remainder would be used to fund local decarbonization efforts; then, when Council reauthorized the program in 2022, it directed that all of the net proceeds (up to the amount of funds available in the Cap and Trade Reserve) be used for local decarbonization.

If the recommendation to continue the REC Exchange Program is approved, all of the net revenue from the program (whose estimates are shown in Table 2) would continue to be available for these decarbonization efforts. The programs that this funding is intended to support include the advanced heat-pump water heater (HPWH) pilot, the Home Efficiency Genie program, and multi- family building electrification efforts. However, to date the funding for these programs has been provided through other sources (e.g., Public Benefits funds, Low Carbon Fuel Standard credits, 30 Again, the mechanism for funding the local decarbonization programs is that an amount equivalent to the net revenues earned from the REC Exchanges would be allocated from the City’s Cap and Trade Reserve to local decarbonization efforts. Although, if the REC Exchange Program’s net revenues exceed the revenues from selling the electric utility’s Cap and Trade allowances in a given year, the local decarbonization funding allocation would be limited by the Cap and Trade allowance revenue amount.

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and natural gas carbon allowances), leaving all of the REC Exchange Program funding that has been earmarked for local decarbonization efforts available to fund these programs in the future.

Staff anticipates returning to the UAC and City Council in 2026 to discuss whether to continue or modify these rules around the use and tracking of the REC Exchange Program’s future net revenues.

Next Steps
Upon the approval of the recommendation, staff will continue to execute transactions to sell the City’s in-state renewable resources and purchase out-of-state renewables for 2026 and beyond.

In addition, staff will continue to report on the portfolio’s total GHG emissions under both an hourly and an annual carbon accounting framework in the annual report to the City Council on the City’s Renewable Procurement Plan, Renewable Portfolio Standard Compliance, and Carbon Neutral Electric Supplies (usually presented in Q4 of each year).

FISCAL/RESOURCE IMPACT
Staff estimates that continuing the REC Exchange Program will generate an average of approximately $1.9 million in additional revenue per year for the next five fiscal years, which can be used to support the City’s decarbonization efforts.

STAKEHOLDER ENGAGEMENT
Staff has discussed the Carbon Neutral Plan update and the REC Exchange Program with the Utilities Advisory Commission in 2020 and 2022. Staff presented the recommendation to reaffirm the continuation of the Carbon Neutral Plan and the REC Exchange Program to the UAC at its meeting on October 1, 2025. Commissioners questioned staff about their REC price and REC Exchange net revenue projections, and whether any customers had commented on the change to the City’s Power Content Label since the start of the REC Exchange Program. (Staff indicated that no customers had commented on the change to date.) Following this discussion, the UAC voted unanimously (4-0) to support the staff recommendation.

If the recommendation is approved, staff will return to the UAC and Council in 2026 to discuss the allocation of REC Exchange Program net revenues, and in 2028 for another review of both programs.

ENVIRONMENTAL REVIEW
The City Council’s review of the Carbon Neutral Plan and the REC Exchange Program is not subject to California Environmental Quality Act (CEQA) review because it is an administrative government activity that will not result in any direct or indirect physical change to the environment (CEQA Guidelines section 15378(b)(5)).

ATTACHMENTS: None
APPROVED BY:

Alan Kurotori, Director of Utilities
Staff: Jim Stack, Senior Resource Planner
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Planning and Development Services
Meeting Date: December 15, 2025
Report #:2511-5419
TITLE
QUASI-JUDICIAL. 3150 El Camino Real [25PLN-00273]: Request for a Final Map to Merge Three Contiguous Parcels to Create a 111,030-Square-Foot Parcel. The Final Map Would Facilitate Construction of a 368-Unit Rental Development Project (24PLN-00230) Previously Approved on July 11, 2025. Zone District: CS (Commercial Services). CEQA Status: Exempt in Accordance with CEQA Guidelines Section 15183.

RECOMMENDATION
Staff recommends that City Council:

1. Approve the Final Map (Attachment A), which follows the approved Vesting Tentative Map, for the previously approved residential project at 3150 El Camino Real pursuant to Palo Alto Municipal Code Chapter 21.16 and the Subdivision Map Act.

BACKGROUND
On August 27, 2024, Acclaim Companies filed a Vesting Tentative Map application (24PLN- 00231) concurrently with a Streamlined Housing Development review application (24PLN- 00230). In accordance with the Vesting Tentative Map Code Chapter 21.13, the map application was deferred until all other entitlements were approved. The Planning and Transportation Commission (PTC) reviewed and recommended approval of the Vesting Tentative Map on May 14, 2025, and City Council approved the Vesting Tentative Map on August 11, 2025. The Record of Land Use Action (RLUA 2025-05) is included in Attachment A.

On October 21, 2025, Acclaim Properties filed a Final Map application. The Final Map application is the second of a two-phased process to merge the three existing parcels into one 111,030-square-foot parcel. The Final Map is the official, legal document that is recorded with the County that establishes the property lines, streets, and easements within the subdivision.

The Final Map must be prepared under the direction of a registered civil engineer or a licensed land surveyor and be based on a survey. Approval of a Final Map is ministerial if the Final Map is in substantive compliance with the approved Vesting Tentative Map and the subdivider has satisfied the conditions of approval attached to the Tentative Map. While many cities delegate Item 11
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approval of the Final Map to the City Engineer, under Palo Alto Municipal Code (PAMC) Section

21.16.240, the City Council is responsible for the approval.

The approved Streamlined Housing Development Review application allows the resulting lot to be redeveloped with a seven-story, 443,522-square-foot residential rental building with 368 units.

ANALYSIS
The Final Map is the document containing the statements, acknowledgements, and agreements from the property owner, surveyor, City officials and beneficiaries that the Final Map is in conformance with all applicable regulations and the approved Vesting Tentative Map.

POLICY IMPLICATIONS
There are no policy implications related to the approval of the Final Map, since the map is consistent with the approved Vesting Tentative Map.

FISCAL/RESOURCE IMPACT
There are no fiscal impacts related to the processing of a final map. The applicant has paid the required processing fees pursuant to the fiscal year 2026 fee schedule. Development impact fees of $14,048,757.25, as well as the applicable public art in-lieu fees, will be required for the proposed improvements and shall be paid prior to final or temporary occupancy. It is anticipated that property tax revenue will increase upon the completion of the project.

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 November 28, 2025, which is 10 days in advance of the meeting. Postcard mailing occurred on November 24, 2025, which is 14 days in advance of the meeting.

ENVIRONMENTAL REVIEW
The proposed action is ministerial and CEQA does not apply. However, the City evaluated the Vesting Tentative Map and Streamlined Housing Development Review applications in accordance with the California Environmental Quality Act and prepared a documented exemption showing the project’s consistency with CEQA Guidelines Section 15183 (Consistency with the Comprehensive Plan). A link to the documentation supporting the exemption is included in Attachment B.

ATTACHMENTS
Attachment A: Record of Land Use Action for the Vesting Tentative Map Attachment B: Final Map and Link to Environmental Documents APPROVED BY:

Jonathan Lait, Planning and Development Services Director Item 11
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ACTION NO. 2025-04

RECORD OF THE COUNCIL OF THE CITY OF PALO ALTO LAND USE ACTION FOR 3150 EL CAMINO REAL: VESTING TENTATIVE MAP, 24PLN-00231

At its meeting on August 11, 2025, the City Council of the City of Palo Alto (“City Council”) approved the Vesting Tentative Map to merge five existing parcels to create one resulting parcel for a 368-unit apartment building, making the following findings, determinations and declarations:

SECTION 1. Background.

A. On August 27, 2024, Acclaim Properties submitted a subdivision map application for a Vesting Tentative Map to merge five parcels into one resulting parcel for 3150 El Camino Real (“The Project”).

The project site is comprised of five existing lots: APN No. 148-20-079, approximately 8,250 square feet, an undeveloped parcel; APN No. 148-20-080, approximately 4,950 square feet, an undeveloped parcel; APN No. 148-20-035, approximately 52,250 square feet, developed with a commercial eating and drinking use; APN No. 148-20-054, approximately 27,225 square feet, developed with a commercial eating and drinking use; APN No. 148-20-055, approximately 18,425 square feet, developed with a commercial eating and drinking use. Uses abutting the site include a ten-story office building to the north, a two-story hotel to the west, various one and two-story commercial uses to the east across El Camino Real, and a two-story hotel to the south.

B. Following staff review, the Planning and Transportation Commission reviewed the project and recommended approval on May 14, 2025, subject to conditions of approval.

C. On August 11, 2025 the City Council held a public meeting in accordance with the City Council’s policies and procedures and approved the project subject to conditions of approval.

SECTION 2. Environmental Review. The City, as the lead agency for the Project, has determined the project is eligible for a Streamlined review for consistency with the Comprehensive Plan and Comprehensive Plan EIR in accordance with California Environmental Quality Act (CEQA) Guidelines section 15183. Documentation to support the streamlined review is available as part of the public record on file with the Planning and Development Services Division.

SECTION 3. Vesting Tentative Map Findings. A legislative body of a city shall deny approval of a Subdivision 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:

There is no adopted specific plan for this project site. The site is consistent with the Comprehensive Plan as described below.

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 Vesting 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 74 units that will be offered at a rate affordable to low-income households at 50%-80% area median income (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 and is located within the City’s El Camino Real Focus Area, an area identified for high density housing within the City. The proposed parcel meets the minimum code requirements for the CS zone district with respect to lot area, width, and depth. The proposed number of apartment units created on the resulting parcel complies with the applicable densities set forth in the land use element and zoning code, consistent with the focus area standards.

4. That the site is not physically suitable for the proposed density of development:

The proposed improvements include a total of 368 multi-family residential units and results in 144 dwelling units (DU) per acre across the resulting parcel. There is no maximum density for projects on El Camino Real and the improvements are consistent with the floor area and height allowances for the site as set forth in the zoning. The improvements also fall within the identified unit capacity of the site set forth in the adopted Housing Element. Therefore, it is physically suitable for the parcel.

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. The nearest stream is a portion of Adobe Creek approximately 1,000 feet southeast from the project site. The adopted Palo Alto Docusign Envelope ID: 982B71CF-15D1-4AB4-B33A-E91D5417FECF Item 11
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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.

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 commercial 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 the 12-foot effective sidewalk width along El Camino Real, consistent with approved plans and policies.

SECTION 4. Vesting Tentative Map Approval Granted. Vesting 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 Vesting Tentative Map prepared by CBG titled “VESTING TENTATIVE PARCEL MAP FOR LOT MERGER” consisting of five pages, dated April 16, 2025 and submitted April 17, 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 Docusign Envelope ID: 982B71CF-15D1-4AB4-B33A-E91D5417FECF Item 11
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Vesting 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 Vesting 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]).

SECTION 6. Conditions of Approval.

Planning

1. PROJECT PLANS. The Vesting Tentative Map submitted for review and approval by the City Council shall be in substantial conformance with the Vesting Tentative Map titled “VESTING TENTATIVE PARCEL MAP FOR LOT MERGER – 3150 EL CAMINO REAL (24PLN- 00231)”, prepared by TALUS and submitted April 17, 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. 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 Streamlined Housing Development Review Approval. Impact fees may be paid at occupancy in accordance with the requirements under PAMC 16.64.030.

4. 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

5. 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

6. OVERVIEW AND GUIDELINES FOR THE REVIEW OF SUBDIVISION PROJECTS: Developer shall familiarize themselves with the guidelines described in the November 2007 Docusign Envelope ID: 982B71CF-15D1-4AB4-B33A-E91D5417FECF Item 11
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revision of the document titled “Overview and Guidelines for the Review of Subdivision Projects”. Particularly Section II (items 5 through 12) and Section V (items A through C). https://www.cityofpaloalto.org/files/assets/public/planning-amp-development- services/file-migration/current-planning/forms-and-guidelines/overview-and- guidelines-for-the-review-of-subdivision-projects.pdf

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 of a tentative map 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 tentative map are subject to City’s technical review and staff approval during the map process 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 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.

10. STREETWORK PERMIT: The applicant shall obtain a Streetwork Permit from the Department of Public Works for all public improvements.

11. GRADING AND EXCAVATION PERMIT: A Grading Permit is required per PAMC Chapter

16.28. The permit application and all applicable documents (see Section H of application) shall be submitted to Public Works Engineering. Add the following note:
“THIS GRADING PERMIT WILL ONLY AUTHORIZE GENERAL GRADING AND INSTALLATION OF THE STORM DRAIN SYSTEM. OTHER BUILDING AND UTILITY IMPROVEMENTS ARE

SHOWN FOR REFERENCE INFORMATION ONLY AND ARE SUBJECT TO SEPARATE BUILDING PERMIT APPROVAL.”

12. ROUGH GRADING: provide a Rough Grading Plan for the work proposed as part of the Grading and Excavation Permit application. The Rough Grading Plans shall including the following: pad elevation, elevator pit elevation, ground monitoring wells, limits of over excavation, stockpile area of material, overall earthwork volumes (cut and fill), temporary shoring for any existing facilities, ramps for access, crane locations (if any), Docusign Envelope ID: 982B71CF-15D1-4AB4-B33A-E91D5417FECF Item 11
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tree protection measures, etc.

13. CIVIL ENGINEER CERTIFICATION: Upon completion of the rough grading work and at the final completion of the work, applicant shall provide an as-graded grading plan prepared by the civil engineer that includes original ground surface elevations, as-graded ground surface elevations, lot drainage patterns and locations and elevations of all surface and subsurface drainage facilities. The civil engineer shall certify that the work was done in accordance with the final approved grading plan.

14. SOILS ENGINEER CERTIFICATION: Upon completion of the rough grading work and at the final completion of the work, applicant shall provide a soil grading report prepared by the soils engineer, including locations and elevation of field density tests, summaries of field and laboratory tests and other substantiating data, and comments on any changes made during grading and their effect on the recommendations made in the soils engineering investigation report. The soils engineer shall certify as to the adequacy of the site for the intended use.

15. SHORING & TIEBACKS: Provide a shoring plan showing the existing utilities (if needed), to clearly indicate how the new structures will be constructed while protecting the existing utilities (if any). If tiebacks are proposed they shall not extend onto adjacent private property, existing easements or into the City’s right-of-way without having first obtained written permission from the private property owners and/or an encroachment permit from Public Works.

16. HYDRAULICS AND HYDROLOGY REPORT: This report compares the site’s pre-project and post-project conditions. Include a description of the existing site and how the proposed project works in terms of drainage. The report shall include calculations per the Santa Clara County Drainage Manual (2007) comparing 10-year versus 100-year storms (6 duration).

17. DIRECT CONNECTIONS TO STORM DRAIN SYSTEM: If the project proposes to replace and/or add connections to the City maintained storm drain system, then the applicant may be responsible for improvements to the system. These improvements may include, but not limited to, upsizing the storm drain facility, replacing or adding City standard catch basins, pipes and manholes. THIS MAY INCLUDE REPLACING BRICK AND MORTAR MANHOLES. The extent of required improvements will be at the public works staff discretion and shall be consistent with Storm Drain Master Plan and Public Works Construction Standards. Any work on the city's storm drain systems requires permits and inspection by Public Works inspectors.

18. CCTV OF STORM DRAIN SYSTEM: Post construction the applicant may be required to provide CCTV inspection of the City’s storm drain facilities to verify that any lines were not broken, cracked or damaged during construction. The video shall be high resolution and done by professional who is familiar with the process and meticulous. A CCTV Docusign Envelope ID: 982B71CF-15D1-4AB4-B33A-E91D5417FECF Item 11
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inspection video is required for new storm drain connection (s) to verify proper connections were made into the City’s system and that no construction material was left behind. Videos of storm drain system may also be required where construction occurred less than 5-ft from the city’s storm drain system. Videos shall be provided from structure to structure, such as manhole to manhole. Contractor may want to conduct their own inspection in advance of construction to verify the existing pipe integrity. If existing damages are located, they shall be reported to Public Works inspectors prior to the start of construction. If not reported, the contractor may be responsible to restore the pipe segment as determined by Public Works prior to final.

19. GEOTECHNICAL ENGINEER STATEMENT: The grading plans shall include the following statement signed and sealed by the Geotechnical Engineer of Record: “THIS PLAN HAS

BEEN REVIEWED AND FOUND TO BE IN GENERAL CONFORMANCE WITH THE INTENT AND PURPOSE OF THE GEOTECHNICAL REPORT”.

20. CONSTRUCTION DEWATERING: This project may require a dewatering permit during construction due to the groundwater level relative to the depth of excavation.

21. SWPPP: This proposed development will disturb more than one acre of land.

Accordingly, the applicant shall apply for coverage under the State Water Resources Control Board’s (SWRCB) NPDES general permit for storm water discharge associated with construction activity. A Notice of Intent (NOI) shall be filed for this project with the SWRCB in order to obtain coverage under the permit. The General Permit requires the applicant to prepare and implement a Storm Water Pollution Prevention Plan (SWPPP).

The applicant is required to submit two copies of the NOI and the draft SWPPP to the Public Works Department for review and approval prior to issuance of the building permit. The SWPPP should include both permanent, post-development project design features and temporary measures employed during construction.

22. ENCROACHMENT PERMIT: Prior to any work in the public right-of-way, the applicant shall obtain an encroachment permit from the Public Works Department for any work that encroaches onto the City right-of-way.

23. LOGISTICS PLAN: A construction logistics plan shall be provided addressing all impacts to the public including, at a minimum: work hours, noticing of affected businesses, bus stop relocations, construction signage, dust control, noise control, storm water pollution prevention, job trailer, contractors’ parking, truck routes, staging, concrete pours, crane lifts, scaffolding, materials storage, pedestrian safety, and traffic control. All truck routes shall conform to the City of Palo Alto’s Trucks and Truck Route Ordinance, Chapter 10.48, and the route map. NOTE: Some items/tasks on the logistics plan may require an encroachment permit.

24. STORMWATER POLLUTION PREVENTION: All improvement plan sets shall include the “Pollution Prevention – It’s Part of the Plan” sheet.

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25. C.3 THIRD-PARTY CERTIFICATION: Applicant shall provide certification from a qualified third-party reviewer that the proposed permanent storm water pollution prevention measures comply with the requirements of Provision C.3 and Palo Alto Municipal Code Chapter 16.11.

26. Submit the following:
a. Provide a stamped and signed C.3 data form (April 2024 version) from SCVURPPP. https://scvurppp.org/2024/09/19/provision-c-3-data-form-2024/ b. Final stamped and signed letter confirming which documents were reviewed and that the project complies with Provision C.3 and PAMC 16.11.

27. C.3 STORMWATER AGREEMENT: The applicant shall enter into a Stormwater Maintenance Agreement with the City to guarantee the ongoing maintenance of the permanent storm water pollution prevention measures. The City will inspect the treatment measures yearly and charge an inspection fee. The agreement shall be executed by the applicant team prior to building permit final.

28. C.3 FINAL THIRD PARTY CERTIFICATION PRIOR TO OCCUPANCY: Within 45 days of the installation of the required storm water treatment measures and prior to the issuance of an occupancy permit for the building, the third-party reviewer shall submit to the City a certification verifying that all the permanent storm water pollution prevention measures were installed in accordance with the approved plans.

29. OUTSIDE AGENCY APPROVAL: A portion of the proposed work is within Caltrans right-of- way. Evidence of encroachment permit approval shall be submitted prior to issuance of City permits.

30. PRIOR TO PUBLIC WORKS FINAL/ACCEPTANCE (STORM DRAIN LOGO): The applicant is required to paint “No Dumping/Flows to Matadero Creek” in blue on a white background adjacent to all onsite storm drain inlets. The name of the creek to which the proposed development drains can be obtained from Public Works Engineering.

Stencils of the logo are available from the Public Works Environmental Compliance Division, which may be contacted at (650) 329-2598. Include the instruction to paint the logos on the construction grading and drainage plan.

SECTION 7. Term of Approval. Vesting Tentative Map. All conditions of approval of the Vesting 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 Vesting Tentative Map approval, the Vesting Tentative Map shall expire and all proceedings shall terminate. A request for an extension of time may be granted by the city council after recommendation of the planning commission, after the written extension request of the subdivider is submitted, prior to the expiration of the Vesting Tentative Map approval, or Docusign Envelope ID: 982B71CF-15D1-4AB4-B33A-E91D5417FECF Item 11
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any previous extension granted. Such extension(s) shall be subject to the maximum limitations set forth in the Subdivision Map Act.

INTRODUCED AND PASSED: AUGUST 11, 2025

AYES: Burt, Lauing, Stone, Reckdahl
NOES:

ABSENT: Lythcott-Haims
ABSTENTIONS: Lu, Veenker

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 TALUS titled “VESTING TENTATIVE PARCEL MAP FOR LOT MERGER – 3150 EL CAMINO REAL (24PLN-00231)” consisting of five pages, dated April 16, 2025 and submitted April 17, 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 Councilmembers 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 “3150 El Camino Real” 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/3150-El-Camino-Real
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Human Resources
Meeting Date: December 15, 2025
Report #:2511-5412
TITLE
Approval of Partnership Agreement with Metropolitan Transportation Commission, in an Amount Not to Exceed $108,888 to Provide Unlimited Transit Access Available Through the Clipper BayPass Pilot Program for City of Palo Alto Employees Through December 31, 2026; CEQA Status - Not a Project.

RECOMMENDATION
Staff recommends that Council approve and authorize the City Manager or their designee to execute the Partnership Agreement (Attachment B) with Metropolitan Transportation Commission to provide unlimited transit access available through the Clipper BayPass Pilot Program for eligible City of Palo Alto employees through December 31, 2026 and total not-to- exceed $108,888.

BACKGROUND
The City supports sustainable transportation efforts to meet Palo Alto’s environmental goals and reduce traffic. For decades, the City has provided commuter benefits for its employees who voluntarily use commute alternatives to and from work. As part of its employee benefits package, the City of Palo Alto offers a range of commuter benefits to support a variety of sustainable transportation options. These benefits include carpooling ($30/month), biking ($20/month), and a 25% discount on monthly vanpool, parking, and transit costs. In the past, the City also offered the Caltrain GO Pass. This benefit allowed employees to ride CalTrain unlimited times and in all zones at no cost. However, the GO Pass benefit was limited to City employees located in downtown Palo Alto at City Hall, the Development Center, and the Downtown Library. In order to expand and enhance commuter benefits for City employees working in facilities outside of Downtown Palo Alto, effective May 1, 2025, the City entered into Item 12
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a partnership agreement with Metropolitan Transportation Commission (MTC) to provide a pilot Clipper BayPass program to all City benefited employees1.

The Clipper BayPass provides participants with unlimited travel on Bay Area transit services.

Attachment A provides list of all eligible Bay Area transit services under this program. Palo Alto and Menlo Park are the only two Bay Area cities participating in this pilot program.

ANALYSIS
In an effort to support the City’s commitment to environmental sustainability and emission reduction, and in addition expand and enhance the accessibility of commuter benefits, City staff engaged with representatives from the Metropolitan Transportation Commission (MTC) and launched the pilot Clipper BayPass program on May 1, 2025. The Clipper BayPass provides eligible participants with unlimited travel on Bay Area transit services, including bus, rail, and ferry routes such as Caltrain, BART, VTA, MUNI, Dumbarton Express, and other transit operators.

Since the launch of Clipper BayPass seven months ago, the program has received positive reception. Approximately 50% of eligible participants have signed up for the Clipper BayPass benefit and approximately 32% of the eligible participants have used at least one of the transit services provided under the program to travel in calendar year 2025. An enhanced benefit of Clipper Baypass is the ability for participants to use multiple Bay Area transit services, which was not available under the GO Pass benefit as it limited travel to CalTrain only. Participants continue to use CalTrain, however they are also using BART, SF Muni and VTA. The availability of various transit options has provided employees who do not reside along the Caltrain corridor an opportunity to consider using public transportation for their commute. This more expansive offering creates more equity within our commute incentives program by expanding to the East Bay and by including bus systems which help shrink the “last mile gap.” Following a review of the Clipper BayPass program and its usage for a portion (7 months) of calendar year 2025, staff recommends that the City continue participating in the pilot Clipper BayPass program. The Clipper BayPass program has helped enhance the accessibility and equity of our commuter benefit and provides usage reports such as active participants, types of transits used for travel, and also the number of trips taken by participants. Employees outside of the downtown locations now have an option to use transit services to commute to work.

Additionally, participants are also utilizing a key benefit of this program, the ability to ride various transit services to commute.

1 City Council, April 7, 2025; Agenda Item # 5; SR #2503-4369, https://portal.laserfiche.com/Portal/DocView.aspx?id=160387&repo=r-704298fc&searchid=904d0535-bc5b-4a7b- 95ac-4a52acad5f55
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FISCAL/RESOURCE IMPACT
The contract period will be from January 1 through December 31, 2026 and will cost $108,888.

Effective March 1, 2026, participants enrolled in the BayPass Program will be required to pay a pretax fee of $5 per month. Ongoing costs are estimated to be $110,000 annually, which will be partially offset with the new participant fee. Funding for this contract is available in the FY 2026 Adopted Operating Budget of the General Benefits Fund. The General Benefits Fund is an internal service pass-through fund that allocates the costs of benefits for current City employees out citywide to all departments. The General Fund represents approximately 52% of General Benefit Fund cost allocation. Funding for future fiscal years will be subject to Council appropriation as part of the annual budget process. Staff will analyze usage data to assess the continuation of the program prior to the conclusion of the December 2026 term.

STAKEHOLDER ENGAGEMENT
Human Resources will implement a communication plan to continue promoting this commuter benefit to city employees, and information is readily available on the City intranet site.

Additional outreach will be conducted as needed to ensure the Clipper BayPass program grows.

All participants will be informed of any cost sharing prior to implementation.

ENVIRONMENTAL REVIEW
Council action on this item is not a project as defined by CEQA because approval of this contract to provide a public transportation benefit is an organizational or administrative activity that will not result in direct or indirect physical changes in the environment. CEQA Guidelines section 15378(b)(5).

ATTACHMENTS
Attachment A: List of Transit Operators Included with Clipper BayPass Attachment B: Partnership Agreement Between MTC and City of Palo Alto APPROVED BY:

Sandra Blanch, Human Resources Director
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Atachment A: List of Transit Operators Included with Clipper BayPass

• BART
• SFMTA (Muni)
• AC Transit
• VTA
• Caltrain
• SamTrans
• Golden Gate Transit
• Golden Gate Ferry
• San Francisco Bay Ferry
• County Connec�on
• Dumbarton Express
• FAST
• Marin Transit
• Petaluma Transit
• Santa Rosa CityBus
• SMART
• Soltrans
• Sonoma County Transit
• Tri Delta Transit
• Union City Transit
• Vacaville City Coach
• VINE
• WestCAT
• Wheels
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PARTNERSHIP AGREEMENT
Between CITY OF PALO ALTO
And METROPOLITAN TRANSPORTATION COMMISSION
For CLIPPER BAYPASS PILOT PROGRAM

THIS AGREEMENT is made and entered into as of the January 1, 2026, by and between the CITY OF PALO ALTO (herein called "Palo Alto"), and the METROPOLITAN TRANSPORTATION COMMISSION, a regional transportation planning agency established pursuant to California Government Code § 66500 et seq., (herein called “MTC”) (“Agreement”), both individually referred to as a “Party” and collectively referred to as “the Parties.”

W I T N E S S E T H
WHEREAS, MTC seeks to increase transit usage by reducing fare barriers and improving coordination of fare policies across Bay Area transit operators; and WHEREAS, MTC and Bay Area transit operators convened the Fare Integration Task Force as a special committee of the Clipper Executive Board to assess methods to improve coordination across transit fare policies; and
WHEREAS, on November 15, 2021, the Fare Integration Task Force adopted a Bay Area Transit Fare Policy Vision Statement which called for the “deployment of an all-transit agency institutional/employer pass demonstration pilot in 2022, with a focus on educational institutions, affordable housing properties, and employers of various sizes, pending available resources/technical considerations;” and
WHEREAS, MTC created the Clipper BayPass Pilot Program in 2022 under the direction of the Fare Integration Task Force in order to deliver on the commitment to establish an institutional/employer pass pilot; and
WHEREAS, the Clipper BayPass Pilot Program is inviting employers/institutions to purchase the Clipper BayPass public transportation pass, which provides unlimited access to Bay Area transit services that accept Clipper, with the exception of cable car services operated by SFMTA; and
WHEREAS, Palo Alto is interested in providing the Clipper BayPass public transportation pass to its eligible member employees. Eligible member employees are defined as 1) those employees to whom Palo Alto provides the Caltrain Go Pass (Pilot Group A), and 2) all other eligible employees at defined worksite locations (Pilot Group B);

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NOW, THEREFORE, the Parties hereto agree as follows:

1. SCOPE OF WORK
MTC agrees to provide the Clipper BayPass public transportation pass, as described and in quantities specified in Attachments A and B, to Palo Alto at the price of $12 per month per eligible employee for Pilot Group A, and at the price of $10 per month per eligible employee for Pilot Group B. Palo Alto shall perform the activities described in Attachments A and B.

2. TIME OF PERFORMANCE
The services described by this Agreement shall commence on or after January 1, 2026 and terminate on December 31, 2026, unless the Agreement is extended by duly executed amendment or earlier terminated, as hereinafter provided.

3. FUNDING AND METHOD OF PAYMENT
A. In order to participate in the Clipper BayPass program pilot, Palo Alto agrees to pay MTC in accordance with the amounts and processes specified in Attachments A and B.

All payment shall be submitted to MTC at:

Attn: Accounting Section
Metropolitan Transportation Commission
Bay Area Metro Center
375 Beale Street, Suite 800
San Francisco, CA 94105

4. AMENDMENTS
Any changes in the activities to be performed under this Agreement shall be incorporated in written amendments, which shall specify the changes in Attachments A and B and any adjustments in the schedule and Payment amounts. All amendments shall be executed by the Palo Alto Project Manager, or a designated representative and MTC Executive Director, or a designated representative. No claim for additional compensation or extension of time shall be recognized unless contained in a duly executed amendment.

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5. TERMINATION
Either party may terminate this Agreement due to the other party’s substantial failure to perform as specified in this agreement upon thirty (30) days prior written notice. Either party may terminate this Agreement without cause upon ninety (90) days prior written notice. In the event of such termination, all Passes shall be deactivated immediately after the termination date.

If either party terminates the agreement, MTC shall either invoice or refund Palo Alto as per the terms of termination specified in Attachments A and B.

6. RETENTION OF RECORDS
Palo Alto agrees to keep all records pertaining to the project being funded for audit purposes in accordance with generally accepted accounting practices for a minimum of four (4) years following the fiscal year of the last expenditure under this Agreement.

7. INDEMNIFICATION
Palo Alto shall indemnify and hold harmless MTC and its commissioners, directors, officers, agents and employees (each an “Indemnified Party”) from any and all claims, demands, suits, loss, damages, injury and/or liability (including any and all costs and expenses in connection therewith), incurred by reason of breach of this Agreement by Palo Alto or by any negligent or otherwise wrongful act or omission of Palo Alto, its officers, commissioners, directors, employees, agents, contractors and subcontractors, or any of them, under or in connection with this Agreement; and Palo Alto agrees at its own cost, expense and risk to defend any and all claims, actions, suits, or other legal proceedings brought or instituted against MTC, its commissioners, directors, officers, agents, and employees, or any of them, arising out of such act or omission, and to pay and satisfy any resulting judgments.

8. NOTICES
Except for invoices submitted by Palo Alto pursuant to Article 3, all notices or other communications to either party by the other shall be deemed given when made in writing and delivered, mailed, or emailed to such party at their respective addresses as follows:

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To MTC: Attention: Thalia Leng
Metropolitan Transportation Commission
Bay Area Metro Center
375 Beale Street, Suite 800
San Francisco, CA 94105
Email: [email protected]

To Palo Alto: Maria Patino
City of Palo Alto
Office of the City Clerk: City Hall, 7th Floor
250 Hamilton Avenue
Palo Alto, CA 94301
Email: [email protected]

9. ASSIGNMENT
Neither party shall assign, transfer or otherwise substitute its interest or obligations in this Agreement without the prior written consent of the other party.

10. CONFIDENTIALITY

10.1 In this Article 10, Confidentiality, the Party disclosing information shall be referred to as the “Disclosing Party” and the Party receiving information shall be referred to as the “Receiving Party”. As used herein, “Confidential Information” shall mean any non-public, confidential or proprietary information disclosed by a Party in discussions between the Parties relating to the purpose, whether disclosed orally or in written, electronic or other form or media, and whether or not marked, designated or otherwise identified as “confidential” or “proprietary” including, without limitation: data, notes, drafts, assessments, analyses, evaluations, and reports related to the travel patterns, home and work locations, commute mode choices, and parking activities of Palo Alto employees.

10.2 Exclusions.
“Confidential Information” shall not include information that: (a) is or becomes known or available to the public, other than through a breach of an obligation hereunder by the Receiving Party; (b) is lawfully acquired by the Receiving Party from a third party without breach of a confidentiality restriction; (c) the Receiving Party can demonstrate by written proof was (i) already in its possession at the time it was disclosed hereunder by the Disclosing Party or (ii) was independently developed by the Receiving Party without use of the Disclosing Party’s Confidential Information; (d) has been approved for disclosure by the Disclosing Party; or (e) Docusign Envelope ID: 3FF3DB95-A791-43BE-8EF1-B658BCE096ED Item 12
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has been provided by Disclosing Party pursuant to the required deliverables referenced in Attachments A, Scope of Work.

10.3 Confidentiality Obligation.

Receiving Party will hold and maintain Disclosing Party’s Confidential Information in confidence, exercising at least the same degree of care as Receiving Party customarily exercises to protect its own like information, but no less than reasonable care. Without the prior written consent of Disclosing Party, Receiving Party will not: (a) disclose any portion of the Confidential Information to any person or entity other than its directors, officers, employees, agents or consultants (each a “Representative”) who reasonably need access to the Confidential Information to fulfill the purpose and is bound to protect its confidentiality including, with respect to agents and consultants, by written agreement on terms substantially similar to this Agreement; or (b) use Confidential Information except as reasonably required in furtherance of the purpose. Receiving Party shall take reasonable steps to ensure compliance with this Agreement by its Representatives, and agrees that it is responsible to Disclosing Party for any action or failure to act by any Representative that would constitute a breach of this Agreement.

Notwithstanding the foregoing, disclosure of Confidential Information by a Receiving Party shall not be precluded if such disclosure is required by a valid law, including the California Public Records Act, regulation, subpoena, demand, order or other process of a court or government entity, provided that Receiving Party provides prompt written notice to the Disclosing Party sufficiently in advance to permit the Disclosing Party to contest the disclosure or seek an appropriate protective order.

10.4 Remedies.

Without prejudice to the rights and remedies otherwise available to Disclosing Party, Disclosing Party may be entitled to equitable relief by way of injunction if there is a breach or threat of breach of any of the provisions of this Agreement by the Receiving Party. The Parties acknowledge and agree that damages may not be an adequate remedy in the event of a breach of this Agreement.

11. LAWS AND REGULATIONS
Palo Alto shall comply with any and all applicable laws, statutes, ordinances, rules, regulations, and procedural requirements of any national, state, or local government, and of any agency of any such government, including but not limited to MTC, that relate to or in any Docusign Envelope ID: 3FF3DB95-A791-43BE-8EF1-B658BCE096ED Item 12
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manner affect the performance of the Agreement, which shall include, but not be limited to California Streets & Highways Code Section 31490 and any others relating to the handling of private and/or personally identifiable information.

12. ENTIRE AGREEMENT: MODIFICATION
This Agreement, including any attachments, constitutes the complete agreement between the parties and supersedes any prior written or oral communications. Palo Alto represents that in entering into the Agreement it has not relied on any previous representations, inducements, or understandings of any kind or nature. This Agreement may be modified or amended only by written instrument signed by both Palo Alto and MTC. In the event of a conflict between the terms and conditions of this Agreement and the attachments, the terms of this Agreement will prevail.

IN WITNESS WHEREOF, this Agreement has been executed by the parties hereto as of the day and year first written above.

METROPOLITAN TRANSPORTATION

COMMISSION

CITY OF PALO ALTO

Andrew B. Fremier, Executive Director Ed Shikada, City Manager

APPROVED AS TO FORM:

Jennifer Fine, Deputy City Attorney
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ATTACHMENT A
PROGRAM SCOPE – PILOT GROUP A

CLIPPER BAYPASS PILOT PROGRAM

Program Duration
The services provided under this contract for Palo Alto’s participation in Clipper BayPass Pilot Program will be in force for a duration of 365 days. Options to extend services under the contract beyond the 365 days may be discussed prior to the end of the current contract.

Clipper BayPass Capabilities

The Clipper BayPass Pilot Program utilizes the Clipper fare payment system product known as the “Events Pass”. The Clipper BayPass Pilot Program provides individual participants with a transit pass good for unlimited travel on all transit services operated by the Operators that accept Clipper, except for Cable Car service operated by the SFMTA. The “Events Pass” can be activated on any existing physical or mobile Clipper Card.

Program Payment Components

Payment for Public Transportation Services
Palo Alto agrees to pay MTC a minimum total amount of $55,728 to participate in the Clipper BayPass Program for 365 days. This minimum total payment amount is based on a price of $12.00 per pass per month for a total of 387 passes. MTC will make available to Palo Alto one Clipper BayPass (“Pass”) per eligible employee to whom Palo Alto provides the Caltrain Go Pass. The group of employees to whom Palo Alto provides the Caltrain Go Pass constitutes the minimum eligible pool (the “Pool”) for the for the duration of the present contract period. Palo Alto and MTC have determined the minimum Pool for Pilot Group A for the duration of the present contract to be 387 employees as of September 2, 2025.

Additional Passes
Palo Alto will add eligible employees to whom Palo Alto provides the Caltrain Go Pass to the Clipper BayPass program Pool during the agreement. Passes shall be activated and valid from January 1, 2026 (or date of issue, if later) through December 31, 2026.

Palo Alto shall pay MTC a total of $144 per Clipper BayPass for each member of the Pool from January 1, 2026 through December 31, 2026. If additional eligible Participants enter the Pool exceeding the 387 in the minimum Pool, then MTC shall issue additional Passes at the same annual price per pass of $144 unless entry into the program occurs after July 1, 2026, in which case 50% of the annual per Pass price (i.e., $72) shall be charged per additional Pass. There shall be no pro-rating of pricing beyond the mid-year 50% price.

Invoicing
MTC shall invoice Palo Alto for $27,864 (i.e., 50% of the minimum total amount of $55,728) to participate in the Clipper BayPass program upon execution of this Agreement. This payment will be referred to as the “Initial Payment – Pilot Group A”. MTC will invoice Palo Alto for the remaining 50% of the minimum total amount on July 1, 2026. By no later than January 31, 2027, MTC shall invoice Palo Alto for any “Additional Passes” as defined herein.

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Palo Alto shall remit all payments within thirty (30) days of receipt of invoice, including invoices for additional physical Clipper Cards. All payments shall be directed to:

Attn: Accounting Section
Metropolitan Transportation Commission
Bay Area Metro Center
375 Beale Street, Suite 800
San Francisco, CA 94105

Roles and Responsibilities

MTC will be responsible for:
• Providing within 30 days of the start of the program, educational and promotional materials in a digital and physical format to help individuals understand the Clipper BayPass product. • Making every reasonable effort to provide Palo Alto, within 15 days of a request, with the requested number of physical Clipper Cards at a cost to Palo Alto of $3.00 per card. • Providing aggregated reports of travel activity with the Clipper BayPass to Palo Alto. • Managing evaluation activities including up to four, brief (~5 minute) participant surveys to be deployed electronically.

Palo Alto will be responsible for:
• Using the Clipper Portal to ensure that the Clipper BayPass product is active on all eligible employee Clipper Cards.
• Ensuring that BayPass is removed simultaneously from all employee Clipper Cards from which Go Pass is being removed. In other words, aligning Clipper BayPass deactivation processes with Caltrain Go Pass deactivation processes. • Working with MTC to disseminate at least one brief (~5 minute) participant survey to be deployed electronically
• Communicating to employees to promote the Clipper BayPass and educating them regarding its use. In its communications, including the materials that MTC will provide, Palo Alto clarifies the following program nuances to its employees:
o The Clipper BayPass cannot be used on SFMTA Cable Cars; o The Clipper BayPass will become inactive if it is not used (i.e., tapped on Clipper Card reader on transit or at a transit stop) within 180 days of initial activation. o The Clipper BayPass is non-transferable, is only a valid fare when used by an eligible Palo Alto employee.
o Ensuring that BayPass is removed from an employee’s Clipper card within three business days after their date of separation.
o Communicating to employees that Caltrain Go Pass Terms and Conditions for use of the pass on public transportation also apply to their use of Clipper BayPass because BayPass is an add-on to, not a replacement for, the existing Caltrain Go Pass. • Coordinating on a regular basis with the Clipper BayPass program team via virtual meetings.

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Attachment B - Partnership
Agreement Between MTC
and City of Palo Alto

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MTC/ City of Palo Alto
Year 2 Clipper BayPass Program

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ATTACHMENT B
PROGRAM SCOPE – PILOT GROUP B

CLIPPER BAYPASS PILOT PROGRAM

Clipper BayPass Capabilities

Program Payment Components

Payment for Public Transportation Services
Palo Alto agrees to pay MTC a minimum total amount of $53,160 to participate in the Clipper BayPass Program for 365 days. This minimum total payment amount is based on a price of $10.00 per pass per month, for a total of 443 passes. MTC will make available to Palo Alto one Clipper BayPass (“Pass”) per eligible employee at defined worksite locations. The group of employees to at these defined worksite locations constitutes the minimum eligible pool (the “Pool”) for the duration of the present contract period. Palo Alto and MTC have determined the minimum Pool for Pilot Group B for the duration of the present contract to be 443 employees as of September 2, 2025.

Additional Passes
Palo Alto will add eligible employees to the Clipper BayPass program Pool during the agreement. Passes shall be activated and valid from January 1, 2026 (or date of issue, if later) through December 31, 2026.

Palo Alto shall pay MTC a total of $120 per Clipper BayPass for each member of the Pool from January 1, 2026, through December 31, 2026. If additional eligible Participants enter the Pool exceeding the 443 in the minimum Pool, then MTC shall issue additional Passes at the same annual price per pass of $120 unless entry into the program occurs after July 1, 2026, in which case 50% of the annual per Pass price (i.e., $60) shall be charged per additional Pass. There shall be no pro-rating of pricing beyond the mid-year 50% price.

Invoicing
MTC shall invoice Palo Alto for $26,580 (i.e., 50% of the minimum total amount of $53,160) to participate in the Clipper BayPass program upon execution of this Agreement. This payment will be referred to as the “Initial Payment – Pilot Group B”. MTC will invoice Palo Alto for the Docusign Envelope ID: 3FF3DB95-A791-43BE-8EF1-B658BCE096ED Item 12
Attachment B - Partnership
Agreement Between MTC
and City of Palo Alto

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MTC/ City of Palo Alto
Year 2 Clipper BayPass Program

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remaining 50% of the minimum total amount on July 1, 2026. By no later than January 31, 2027, MTC shall invoice Palo Alto for any “Additional Passes” as defined herein.

Palo Alto shall remit all payments within thirty (30) days of receipt of invoice, including invoices for additional physical Clipper Cards. All payments shall be directed to:

Attn: Accounting Section
Metropolitan Transportation Commission
Bay Area Metro Center
375 Beale Street, Suite 800
San Francisco, CA 94105

Roles and Responsibilities

Palo Alto will be responsible for:
• Using the Clipper Portal to ensure that the Clipper BayPass product is active on all eligible employee Clipper Cards.
• Activating and deactivating the Clipper BayPass product on employee Clipper Cards and any cards ordered by Palo Alto from MTC (if requested by Palo Alto). • Deactivating the Clipper BayPass product from employee Clipper Cards within 30 days of the separation of an eligible employee from employment at Palo Alto or within 30 days of the transition of an eligible employee to an ineligible status. • Deactivating the Clipper BayPass product on employee Clipper Cards within 10 days of the card being reported lost or stolen.
• Tracking which Clipper BayPass serial number is associated with which employee, including in cases when employees require a replacement Clipper Card. • Providing a total count of employees who are eligible for Clipper BayPass to MTC on at least a quarterly basis (i.e., three months from program start, six months from program start, nine months from program start and at the end of the annual contract period). • Working with MTC to disseminate at least one brief (~5 minute) participant survey to be deployed electronically.
• Communicating to employees to promote the Clipper BayPass and educating them regarding its use. In its communications, including the materials that MTC will provide, Palo Alto clarifies the following program nuances to its employees:
o The Clipper BayPass cannot be used on SFMTA Cable Cars; o The Clipper BayPass will become inactive if it is not used (i.e., tapped on Clipper Card reader on transit or at a transit stop) within 180 days of initial activation.

Docusign Envelope ID: 3FF3DB95-A791-43BE-8EF1-B658BCE096ED Item 12
Attachment B - Partnership
Agreement Between MTC
and City of Palo Alto

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MTC/ City of Palo Alto
Year 2 Clipper BayPass Program

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o The Clipper BayPass is non-transferable, is only a valid fare when used by an eligible Palo Alto employee.
• Coordinating on a regular basis with the Clipper BayPass program team via virtual meetings.

Docusign Envelope ID: 3FF3DB95-A791-43BE-8EF1-B658BCE096ED Item 12
Attachment B - Partnership
Agreement Between MTC
and City of Palo Alto

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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Administrative Services
Meeting Date: December 15, 2025
Report #:2511-5452
TITLE
Accept the City of Palo Alto’s Audited Financial Statements as of June 30, 2025, and the Macias, Gini & O’Connell Management Letter; Approve the FY 2025 Annual Comprehensive Financial Report (ACFR)and Amendments to the FY 2025 Budget in Various Funds; CEQA Status – Not a Project.

RECOMMENDATION
Finance Committee and Staff recommend the City Council:

1. Accept the City of Palo Alto’s audited financial statements for the fiscal year ended June 30, 2025, and the accompanying reports prepared by Macias Gini & O’Connell LLP (“MGO”)1 . Reports include:
a. Report to the City Council the “Management Letter”,
b. Cable TV Franchise, Independent Auditor’s Report and Statements of Franchise Revenues and Expenses for the years ended December 31, 2023, and 2024, c. Palo Alto Public Improvement Corporation (a component unit of the City of Palo Alto) Annual Financial Report for the year ended June 30, 2025, d. Regional Water Quality Control Plant, Independent Auditor’s Report and Financial Statements for the year ended June 30, 2025,
e. Independent Accountant’s Report on Applying Agreed-Upon Procedures related to Article XIII-B Appropriations (GANN) Limit for the year ended June 30, 2025, and
f. Pedestrian/Bicycles Facilities Grant Metropolitan Transportation Commission Transportation Development Act Funds, Article III, Independent Auditor’s Report and Financial Statements, and Supplementary Information for the year ended June 30, 2025
1 Finance Committee, December 2, 2025; Agenda Item #1; CMR #2510-5389, https://portal.laserfiche.com/Portal/DocView.aspx?id=239318&repo=r-704298fc Item 13
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2. Approve the Fiscal Year (FY) 2025 Annual Comprehensive Financial Report (ACFR). An electronic copy is available on the City’s website3.

3. Amend the Fiscal Year 2025 Budget Appropriation Ordinance for various funds as identified Recommended Amendments to the City Manager’s FY 2025 Budget; referenced as “Attachment B – Exhibit 1 and various capital projects as identified in Attachment B – Exhibit 2”(Attachment I) in CMR #2508-50364 (Effective on first reading; five votes required).

Hard copies of these reports were provided to the City Council. If any member of the public would like, printed copies of the City’s Annual Comprehensive Financial Report (ACFR) are available from the Administrative Services Department at the rate established in the City’s Municipal Fee Schedule. Electronic copies are available on the City’s website at no cost.

BACKGROUND
Every year, the fiscal year is closed out, and the City Council publishes the City’s financial report (Palo Alto Municipal Code 2.28.200). At the December 2, 2025, Finance Committee meeting, the Committee reviewed two staff reports: one transmitted by the City Auditor’s Office and one by the City Manager’s Office via the Administrative Services Department and unanimously approved both reports for City Council consideration. The Committee also recommends further review of the formula and process for use of excess Budget Stabilization Reserve (BSR) funds5.

This referral will be considered by Council in January 2026 as a part of the Long Range Financial Forecast (LRFF) and if approved, will be affirmed in Committee Workplan. Office of the City Auditor: Discussion and Recommendation to the City Council to Accept the MGO Audit of the City of Palo Alto’s Financial Statements as of June 30, 20251. Administrative Services Department: Recommendation to Approve the Fiscal Year (FY) 2025 ACFR, Approve FY 2025 Budget Amendments in Various Funds. 3 Annual Comprehensive Financial Report, 2025; https://www.paloalto.gov/files/assets/public/v/1/administrative- services/financial-reporting/annual-comprehensive-financial-reports-acfr/current-2011-acfrs/city-of-palo-alto-acfr- fye-06.30.2025-final-secured.pdf
4 Finance Committee, December 2, 2025; Agenda Item #2 Attachment B; CMR# 2508-5036, https://portal.laserfiche.com/Portal/DocView.aspx?id=237456&repo=r-704298fc 4 December 2, 2025, Finance Committee Action Minutes:
https://cityofpaloalto.primegov.com/meetings/ItemWithTemplateType?id=8961&meetingTemplateType=2&comp iledMeetingDocumentId=17668
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MGO issued a clean opinion on each audit report. The City also received the Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association (GFOA) for its FY 2024 ACFR.

ANALYSIS
Government-wide
As outlined in the staff report to the Finance Committee, at the close of FY 2025, the City’s total Net Position was $1.6 billion, an increase of $112.2 million (7.7%) over the prior fiscal year. This growth primarily reflects progress on major capital projects and increases in restricted funds and investment values. Notable projects include the Public Safety Building, Roth Building Rehabilitation, Fire Station No. 4 Replacement, Boulevard Park Improvements, and Electric Distribution System Upgrades. Citywide, 83% of net position represents investment in capital assets ($1.3 billion), 10% is restricted ($155.6 million), and 7% is unrestricted ($116.9 million).

General Fund
Overall, at the end of the current fiscal year, the General Fund’s fund balance was $103.8 million, The General Fund unassigned fund balance is $53.1 million (ACFR, p.33). Staff have reconciled the accounting basis of this presentation (where non-cash activity is recorded) against budgetary activity. The main difference between the BSR balance ($58.9 million) and unassigned fund balance ($53.1 million) is the investment unrealized loss adjustment, as required by GASB 31 and discussed previously in this report.

By policy, the City maintains a General Fund Budget Stabilization Reserve (BSR) balance of 15%- 20% of the annual operating expense, with a target level of 18.5%. The BSR ended FY 2025 at $58.9 million, but after adjusting the BSR for FY 2026 additions approved by Council3, the net BSR balance is $58.8 million or $2.0 million above Council’s 18.5% BSR target level. The FY 2025 savings in salary & benefit, contracts services and other expenses contributed to this higher BSR. Staff recommend that the $2.0 million above the 18.5% BSR target level be kept in BSR for future budget balancing strategy and projected FY2027 budget shortfall and ensure the City maintains high quality service level. Consistent with current practice, any budget actions to allocate the BSR funds above the 18.5% target level will be included in the FY 2026 Mid-Year Review (February 2026).

Other Funds: Enterprise and Internal Service Activities The City’s Enterprise Funds ended FY 2025 with a net position of $987.1 million, up $86.4 million (9.6%), from the prior fiscal year. The increase in net position reflects continued investment in capital assets, along with higher unrestricted funds set aside for Council directed reserves by policy such as the utility reserve. Discussion can be found in the staff’s December 2, 2025, report to the Finance Committee4.

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FISCAL/RESOURCE IMPACT
The actions recommended in CMR 2508-50363 Attachment B, Exhibits 1 and 2, recommend adjustments to the FY 2025 appropriated level of funds to align budgeted levels with year-end activities.

STAKEHOLDER ENGAGEMENT
This report has been prepared by the Administrative Service Department Accounting division and coordinated with the Office of the City Auditor and the Office of Management and Budget.

ENVIRONMENTAL REVIEW
Council action on this item is not a project as defined by CEQA because the acceptance of the audited financial reports for the fiscal year ending June 30, 2025 , approval of the ACFR for Fiscal Year 2025, and the amendment to the Fiscal Year 2025 Budget Appropriation Ordinance are fiscal activities which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. CEQA Guidelines section 15378(b)(4).

ATTACHMENTS
Attachment A: FY 2025 Budget Amendments, Exhibit 1 and 2 APPROVED BY:

Lauren Lai, Administrative Services Director
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Department Adjustment Adjustment
GENERAL FUND (102)
Non-
Departmental
Transient Occupancy Tax Revenue/Transfer to Capital Improvement Fund This action increases the transfer to the Capital Improvement Fund as it relates to Transient Occupancy Tax (TOT) revenues earmarked for city-wide infrastructure improvements due to higher than anticipated TOT collections in FY 2025.
409,000$ 409,000$
Non-
Departmental
Transfer to Capital Improvement Fund (PL-24000 and PL-24001) This action reduces a transfer of Business Tax funds to support capital projects PL-24000 and PL- 24001, because work was not done on these projects in FY 2025. $270,702 of the funding that will be reappropriated to FY 2026 and was completed through report: 2506-4900 and $973,506 will be returned to the Business Tax Reserve: Transportation in the General Fund to be used for future Transportation projects.
-$ (1,244,208)$
Police Salaries and Benefits
This action increases the allocation for Salaries and Benefits and Allocated Charges in the Police Department by $0.2 million, and includes $0.4 million to cover the reduction of funding for the PERT Program described below. A portion of the increased allocation is due to higher than anticipated fleet services charges which were impacted by the Department piloting an electric patrol vehicle. The remaining increase is due to the Department experiencing higher than anticipated salary and benefit expenses, specifically in overtime costs. This is primarily due to an above average amount of employee leave for illness and training and the need to maintain minimum staffing levels in dispatch and patrol operations which requires the use of overtime for backfill.
-$ 212,000$
Police Transfer from Stanford University Medical Center (SUMC) Fund/Psychiatric Emergency Response Team (PERT) Program
This action reduces the transfer of funds related to the Council-authorized contract with the Santa Clara County Behavioral Health (Staff Report 2305-1410) and recognized in the FY 2025 Adopted Budget for a mental health clinician to support the PERT Program. The funds were unspent due to the inability to source and supply a clinician, so the funds will be returned to the SUMC Fund and recommended to be used in the future to support the PERT Program when the County can provide a clinician.
(366,000)$ (366,000)$
Public Works Departmental Expense Savings
This action reallocates departmental savings within the General Fund in order to offset departments with higher than anticipated expenses in FY 2025. The Public Works Department realized a net savings, primarily in Salary and Benefits due to vacancies and in Contract Services due to delays in several contracts. Key vacancies include Manager of Maintenance Operations, Facilities Technician, Traffic Control Maintainer, and Cement Finisher. Contracts delays include the Security Guard contract for the MSC, airplane noise reduction, Foothills fire mitigation, fire alarm testing and maintenance, and S/CAP implementation. -$ (212,000)$
Fund Balance Adjustment to Business Tax Reserve: Transportation This action returns $1,244,208 of unused funding allocated to capital projects PL-24000 and PL- 240001 to the Business Tax Reserve: Transportation in the General Fund to be used for future Transportation projects.
-$ 1,244,208$
GENERAL FUND (102) SUBTOTAL 43,000$ 43,000$

CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2025 BUDGET Revenues Expenses
ATTACHMENT A, EXHIBIT 1
Item 13
Attachment A - FY 2025 Budget
Amendments, Exhibit 1 and 2

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Department Adjustment Adjustment

CAPITAL IMPROVEMENT FUNDS
GENERAL FUND CAPITAL IMPROVEMENT FUND (471)
Capital Capital Improvement Project Adjustments
This action reflects the net zero budget impact from adjustments to projects as outlined in Attachment B, Exhibit 2.
-$ 0$
Capital Transfer from California Avenue Parking Fund/California Avenue Parking District Parking Improvements Project (PF-25000)
This action reduces the transfer of funds to support capital project PF-25000, because work was not done on this project in FY 2025. The transfer of funds for PF-25000 was reappropriated to FY 2026 in order to align funding with anticipated project expenses. (100,000)$ (100,000)$
Capital Transfer from Gas Tax Fund/Streets Maintenance (PE-86070) This action increases the transfer from the Gas Tax Fund as a result of SB1 Gas Tax revenue from the State of California that came in higher than budgeted levels. SB1 funding is designated for street improvment projects, so it will be added to the Streets Maintenance capital project (PE-86070).
139,226$ 139,226$
Capital Transfer from General Fund
This action increases the transfer from the General Fund related to TOT revenue Council earmarked to use for city-wide infrastructure improvements due to actual revenue collected being higher than budgeted in FY 2025.
409,000$ -$
Capital Transfer from General Fund/Meadow Drive and Charleston Road (PL-24000) and Churchill Avenue (PL-24001) Rail Grade Separation and Safety Improvements This action reduces the transfer of Business Tax funds to support capital projects PL-24000 and PL-24001, because work was not done on these projects in FY 2025. $270,702 of the funding will be reappropriated to FY 2026 and $973,506 will returned to the Business Tax Reserve:

Transportation in the General Fund to be used for future Transportation projects. (1,244,208)$ (1,244,208)$
Capital Transfer from Parkland Dedication Fund/Byxbee Park Completion Project (PG-18006) This action reduces the transfer of funds to support capital project PG-18006, because work was not done on this project in FY 2025. The transfer of funds for PG-86006 was reallocated to FY 2027 in order to align funding with anticipated project expenses. (450,000)$ (450,000)$
Capital Transfer from Utilities Administration Fund/Rinconada Pool Family Changing Room Project (PE-24004)
This action reduces the transfer of funds to support capital project PE-24004, because work was not done on this project in FY 2025. The transfer of funds for PE-24004 was reappropriated to FY 2026 in order to align funding with anticipated project expenses. (371,165)$ (371,165)$
Capital Transfer from Parks Impact Fee Fund/Park Restroom Installation Project (PG-19000) This action reduces the transfer of funds to support capital project PG-19000, because work was not done on this project in FY 2025. The transfer of funds for PG-19000 was reappropriated to FY 2026 in order to align funding with anticipated project expenses. (353,770)$ (353,770)$
Capital Transfer from University Avenue Parking in Lieu Fee Fund/Downtown Parking Garage Project (PE-15007)
This action reduces the transfer of funds to support capital project PE-15007, because work was not done on this project in FY 2025. The transfer of funds for PE-15007 was reappropriated to FY 2026 in order to align funding with anticipated project expenses. (13,106,958)$ (13,106,958)$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. -$ 409,000$
GENERAL FUND CAPITAL IMPROVEMENT FUND (471) SUBTOTAL (15,077,875)$ (15,077,875)$

CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2025 BUDGET Revenues Expenses
ATTACHMENT A, EXHIBIT 1
Item 13
Attachment A - FY 2025 Budget
Amendments, Exhibit 1 and 2

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CAPITAL IMPROVEMENT FUNDS

CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2025 BUDGET Revenues Expenses
ATTACHMENT A, EXHIBIT 1
CUBBERLEY PROPERTY INFRASTRUCTURE FUND (472)
Capital Capital Improvement Project Adjustments
This action reflects the combined impact from adjustments to projects as outlined in Attachment A, Exhibit 2.
-$ 98,690$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. -$ (98,690)$
CUBBERLEY PROPERTY INFRASTRUCTURE FUND (472) SUBTOTAL -$ -$

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Attachment A - FY 2025 Budget
Amendments, Exhibit 1 and 2

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Department Adjustment Adjustment

ENTERPRISE FUNDS
AIRPORT ENTERPRISE FUND (530)
Capital Capital Improvement Project Adjustments
This action reflects the combined impact from adjustments to projects as outlined in Attachment B, Exhibit 2.
-$ 31,497$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. -$ (31,497)$
AIRPORT ENTERPRISE FUND (530) SUBTOTAL -$ -$
REFUSE FUND (525)
Capital Transfer to the Technology Fund for Utilities Customer Bill System Improvements (TE-10001) This action reduces the transfer of funds to support capital project TE-10001 because the project is closing.
-$ (11,500)$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. -$ 11,500$
REFUSE FUND (525) SUBTOTAL -$ -$
STORMWATER MANGEMENT FUND (528)
Capital Capital Improvement Project Adjustments
This action reflects the combined impact from adjustments to projects as outlined in Attachment B, Exhibit 2.
-$ 153,388$
Capital Transfer to the Technology Fund for Utilities Customer Bill System Improvements (TE-10001) This action reduces the transfer of funds to support capital project TE-10001 because the project is closing.
-$ (2,600)$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. -$ (150,788)$
STORMWATER MANGEMENT FUND (528) SUBTOTAL -$ -$

CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2025 BUDGET Revenues Expenses
ATTACHMENT A, EXHIBIT 1
Item 13
Attachment A - FY 2025 Budget
Amendments, Exhibit 1 and 2

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ENTERPRISE FUNDS

CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2025 BUDGET Revenues Expenses
ATTACHMENT A, EXHIBIT 1
UTILITIES ADMINISTRATION FUND (521)
Capital Transfer to the Technology Fund for Utilities Customer Bill System Improvements (TE-10001) This action reduces the transfer of funds to support capital project TE-10001 because the project is closing.
-$ (185,900)$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. -$ 185,900$
UTILITIES ADMINISTRATION FUND (521) SUBTOTAL -$ -$
WASTEWATER COLLECTION FUND (527)
Capital Capital Improvement Project Adjustments
This action reflects the combined impact from adjustments to projects as outlined in Attachment B, Exhibit 2.
40,361$ 40,361$
Utilities Customer Sales Revenue/Charges from Wastewater Treatment Fund This action reflects an increase in the cost of Treatment Fund charges allocated to the Wastewater Collection Fund in FY 2024. The variance is primarily attributable to expenditures associated with the Joint Intercepting Sewer project, increased minor capital activity, and operating budget components such as staffing, indirect charges, and electricity, which contributed to higher than anticipated year-end charges. 917,300$ 917,300$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. -$ -$
WASTEWATER COLLECTION FUND (527) SUBTOTAL 957,661$ 957,661$ WASTEWATER TREATMENT FUND (526)
Capital Capital Improvement Project Adjustments
This action reflects the combined impact from adjustments to projects as outlined in Attachment B, Exhibit 2.
-$ 2,099,618$
Public Works Charges to the Wastewater Collection Fund
This action reflects an increase in the cost of Treatment Fund charges allocated to the Wastewater Collection Fund in FY 2024. The variance is primarily attributable to expenditures associated with the Joint Intercepting Sewer project, increased minor capital activity, and operating budget components such as staffing, indirect charges, and electricity, which contributed to higher than anticipated year-end charges. 917,300$ -$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. -$ (1,182,318)$
WASTEWATER TREATMENT FUND (526) SUBTOTAL 917,300$ 917,300$ Item 13
Attachment A - FY 2025 Budget
Amendments, Exhibit 1 and 2

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ENTERPRISE FUNDS

CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2025 BUDGET Revenues Expenses
ATTACHMENT A, EXHIBIT 1
WATER FUND (522)
Capital Capital Improvement Project Adjustments
This action reflects the combined impact from adjustments to projects as outlined in Attachment B, Exhibit 2.
450,004$ 450,004$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. -$ -$
WATER FUND (522) SUBTOTAL 450,004$ 450,004$
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Attachment A - FY 2025 Budget
Amendments, Exhibit 1 and 2

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Department Adjustment Adjustment

INTERNAL SERVICE FUNDS
GENERAL BENEFITS FUND (687)
Non-
Departmental
Adjust Transfer from General Benefits Fund to Retiree Healthcare Fund This technical action reduces the Implied Subsidy transfer to the Retiree Healthcare Fund to align with best Accounting practices. The funds will now reflect the full value of the Implied Subsidy from the June 30, 2023 Other Post Employment Benefits (OPEB) actuarial valuation. -$ (254,500)$
Non-
Departmental
Adjust Cost of Implied Subsidy
This technical action reduces the Implied Subsidy expense within the General Benefits Fund to align with best Accounting practices. The fund will now reflect the full value of the Implied Subsidy from the June 30, 2023 Other Post Employment Benefits (OPEB) actuarial valuation. -$ 254,500$
Fund Balance Adjustment to Fund Balance
This action increases/decreases the fund balance to offset adjustments recommended in this report.
-$ -$
GENERAL BENEFITS FUND (687) SUBTOTAL -$ -$
RETIREE HEALTHCARE FUND (694)
Non-
Departmental
Adjust Transfer from General Benefits Fund to Retiree Healthcare Fund This technical action reduces the Implied Subsidy transfer to the Retiree Healthcare Fund to align with best Accounting practices. The funds will now reflect the full value of the Implied Subsidy from the June 30, 2023 Other Post Employment Benefits (OPEB) actuarial valuation. (254,500)$ -$
Fund Balance Adjustment to Fund Balance
This action increases/decreases the fund balance to offset adjustments recommended in this report.
-$ (254,500)$
RETIREE HEALTHCARE FUND (694) SUBTOTAL (254,500)$ (254,500)$ GENERAL LIABILITIES INSURANCE FUND (689)
Non-
Departmental
Charges to Other Funds/Liability Insurance and IBNR Adjustment This action recognizes expense impacts of FY 2025 increased incurred but not realized (IBNR) and FY 2026 liability insurance premiums and offsetting revenue from allocated charge adjustments to maintain General Liability Fund solvency. 539,900$ 539,900$
Fund Balance Adjustment to Fund Balance
This action increases/decreases the fund balance to offset adjustments recommended in this report.
-$ -$
GENERAL LIABILITIES INSURANCE FUND (689) SUBTOTAL 539,900$ 539,900$ INFORMATION TECHNOLOGY FUND (682)
Capital Transfer from the Refuse Fund for Utilities Customer Bill System Improvements (TE-10001) This action reduces the transfer of funds to support capital project TE-10001 because the project is closing.
(11,500)$ (11,500)$
Capital Transfer from the Stormwater Management Fund for Utilities Customer Bill System Improvements (TE-10001)
This action reduces the transfer of funds to support capital project TE-10001 because the project is closing.
(2,600)$ (2,600)$
Capital Transfer from the Utilities Administration Fund for Utilities Customer Bill System Improvements (TE-10001)
This action reduces the transfer of funds to support capital project TE-10001 because the project is closing.
(185,900)$ (185,900)$

CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2025 BUDGET Revenues Expenses
ATTACHMENT A, EXHIBIT 1
Item 13
Attachment A - FY 2025 Budget
Amendments, Exhibit 1 and 2

Item 13: Staff Report
Pg.
11 Packet Pg. 92 of 637

Department Adjustment Adjustment

INTERNAL SERVICE FUNDS

CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2025 BUDGET Revenues Expenses
ATTACHMENT A, EXHIBIT 1
Fund Balance Adjustment to Fund Balance
This action increases/decreases the fund balance to offset adjustments recommended in this report.
-$ -$
INFORMATION TECHNOLOGY FUND (682) SUBTOTAL (200,000)$ (200,000)$ VEHICLE REPLACEMENT & MAINTENANCE FUND (681)
Capital Capital Improvement Project Adjustments
This action reflects the combined impact from adjustments to projects as outlined in Attachment B, Exhibit 2.
-$ 60,507$
Public Works Transfer from Supplemental Law Enforcement Services Fund/ Police Vehicle Purchase (VR- 25000)
This action transfers funds from the SLES Fund to the Vehicle fund to record the purchase of a trailer in capital project VR-25000. The purchase was made in the SLES Fund but needs to be recorded in the Vehicle Fund in order to be recognized as an asset. 40,670$ 40,670$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. -$ (60,507)$
VEHICLE REPLACEMENT & MAINTENANCE FUND (681) SUBTOTAL 40,670$ 40,670$

Item 13
Attachment A - FY 2025 Budget
Amendments, Exhibit 1 and 2

Item 13: Staff Report
Pg.
12 Packet Pg. 93 of 637

Department Adjustment Adjustment

SPECIAL REVENUE FUNDS
ASSETS SEIZURE FUND (292)
Police Supplies and Materials
This action increases the allocation in the Assets Seizure Equity Fund due to the Department using the funds for training expenses.
-$ 4,200$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. -$ (4,200)$
ASSETS SEIZURE FUND (292) SUBTOTAL -$
-$

CALIFORNIA AVENUE PARKING FUND (237)
Office of
Transportation
Transfer to the Capital Improvement Fund for California Avenue Parking District Parking Improvements Project (PF-25000)
This action reduces the transfer of funds to support capital project PF-25000, because work was not done on this project in FY 2025. The transfer of funds for PF-25000 was reappropriated to FY 2026 in order to align funding with anticipated project expenses. -$ (100,000)$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. -$ 100,000$
CALIFORNIA AVENUE PARKING FUND (237) SUBTOTAL -$
-$

GAS TAX FUND (231)
Administrative
Services
Revenue from the State of California/Transfer to Capital Improvement Fund for Streets Repair Project (PE-86070)
This action recognizes SB1 Gas Tax revenue from the State of California that came in higher than budgeted levels and appropriates funding to increase the transfer to the Capital Improvement Fund. SB1 funding is designated for street improvment projects, so it will be added to the Streets Maintenance capital project (PE-86070). This action also reduces HUTA Gas Tax revenue by $13,042 and Gas Tax interest income by $7,251 because those sources came in lower than budgeted.
118,933$ 139,226$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. -$ (20,293)$
GAS TAX FUND (231) SUBTOTAL 118,933$ 118,933$ HAMILTON AVENUE-PUBLIC BENFIT FUND (235)
Planning and
Development
Services
Investment Income/Grants & Subsidies
This action recognizes higher unit resale revenue and increases the appropriation for Grants and Subsidies to Avenidas within the fund to align budget levels with actual expenditures in FY 2025.
34,300$ 34,300$
HAMILTON AVENUE-PUBLIC BENFIT FUND (235) SUBTOTAL 34,300$ 34,300$

CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2025 BUDGET Revenues Expenses
ATTACHMENT A, EXHIBIT 1
Item 13
Attachment A - FY 2025 Budget
Amendments, Exhibit 1 and 2

Item 13: Staff Report
Pg.
13 Packet Pg. 94 of 637

Department Adjustment Adjustment

SPECIAL REVENUE FUNDS

CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2025 BUDGET Revenues Expenses
ATTACHMENT A, EXHIBIT 1
PARKLAND DEDICATION FUND (209)
Community
Services
Transfer to the Capital Improvement Fund for Byxbee Park Completion Project (PG-18006) This action reduces the transfer of funds to support capital project PG-18006, because work was not done on this project in FY 2025. The transfer of funds for PG-18006 was reappropriated to FY 2027 in order to align funding with anticipated project expenses. -$ (450,000)$
Community
Services
Transfer to the Capital Improvement Fund for Rinconada Pool Family Changing Room Project (PE-24004)
This action reduces the transfer of funds to support capital project PE-24004, because work was not done on this project in FY 2025. The transfer of funds for PE-24004 was reappropriated to FY 2026 in order to align funding with anticipated project expenses. -$ (371,165)$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. -$ 821,165$
PARKLAND DEDICATION FUND (209) SUBTOTAL -$
-$

PARKS IMPACT FEE FUND (210)
Community
Services
Transfer to the Capital Improvement Fund for Park Restroom Installation Project (PG-19000) This action reduces the transfer of funds to support capital project PG-19000, because work was not done on this project in FY 2025. The transfer of funds for PG-19000 was reappropriated to FY 2026 in order to align funding with anticipated project expenses. -$ (353,770)$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. -$ 353,770$
PARKS IMPACT FEE FUND (210) SUBTOTAL -$
-$

PUBLIC ART FUND (207)
Community
Services
Salaries and Benefits
This action increases appropriation for salaries and benefits to offset a minor overage. -$ 3,800$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. -$ (3,800)$
PUBLIC ART FUND (207) SUBTOTAL -$
-$

STANFORD UNIVERSITY MEDICAL CENTER FUND (260)
Planning and
Development
Services
Transfer from Stanford University Medical Center (SUMC) Fund/Psychiatric Emergency Response Team (PERT) Program
This action reduces the transfer of funds related to the Council-authorized contract with the Santa Clara County Behavioral Health (Staff Report 2305-1410) and recognized in the FY 2025 Adopted Budget for a mental health clinician to support the PERT Program. The funds were unspent due to the inability to source and supply a clinician, so the funds will be returned to the SUMC Fund and recommended to be used in the future to support the PERT Program when the County can provide a clinician.
-$ (366,000)$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. -$ 366,000$
STANFORD UNIVERSITY MEDICAL CENTER FUND (260) SUBTOTAL -$ -$

Item 13
Attachment A - FY 2025 Budget
Amendments, Exhibit 1 and 2

Item 13: Staff Report
Pg.
14 Packet Pg. 95 of 637

Department Adjustment Adjustment

SPECIAL REVENUE FUNDS

CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2025 BUDGET Revenues Expenses
ATTACHMENT A, EXHIBIT 1
SUPPLEMENTAL LAW ENFORCEMENT SERVICES (SLES) FUND (248) Police Transfer to the Vehicle Replacement and Maintenance Fund for Vehicle Purchase (VR-25000) This action transfers funds from the SLES Fund to the Vehicle fund to record the purchase of a trailer in capital project VR-25000. The purchase was made in the SLES Fund but needs to be recorded in the Vehicle Fund in order to be recognized as an asset. The action nets to zero in the SLES Fund because it moves $40,670 from one expenditure account (allocated charges) to another expenditure account (transfers out).
-$ -$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. -$ -$
SUPPLEMENTAL LAW ENFORCEMENT SERVICES (SLES) FUND (248) SUBTOTAL -$ -$

UNIVERSITY AVENUE IN-LIEU PARKING FUND (247)
Planning and
Development
Services
Transfer to the Capital Improvement Fund for Downtown Parking Garage Project (PE-15007) This action reduces the transfer of funds to support capital project PE-15007, because work was not done on this project in FY 2025. The transfer of funds for PE-15007 was reappropriated to FY 2065 in order to align funding with anticipated project expenses. -$ (13,106,958)$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. -$ 13,106,958$
UNIVERSITY AVENUE IN-LIEU PARKING FUND (247) SUBTOTAL -$ -$

Item 13
Attachment A - FY 2025 Budget
Amendments, Exhibit 1 and 2

Item 13: Staff Report
Pg.
15 Packet Pg. 96 of 637

Revenues Expenses
Department Adjustment Adjustment

DEBT SERVICE & AGENCY TRUST FUNDS
EYERLY TRUST FUND (774)
Administrative
Services
Investment Income/General Expenses
This action recognizes higher investment returns and increases the appropriation for General Expenses within the fund for interest income distribution to designated recipients to align budget levels with actual expenditures in FY 2025.
2,700$ 8,700$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. -$ (6,000)$
EYERLY TRUST FUND (774) SUBTOTAL 2,700$ 2,700$

CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2025 BUDGET ATTACHMENT A, EXHIBIT 1
Item 13
Attachment A - FY 2025 Budget
Amendments, Exhibit 1 and 2

Item 13: Staff Report
Pg.
16 Packet Pg. 97 of 637

Project
Number Title Revenue Expense Comments
AS-10000 Capital Improvement Fund Administration $ (1,025,460) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PE-12011 Newell Road/San Francisquito Creek
Bridge Replacement
$ (1,199,061) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PF-16006 Municipal Service Center Lighting,
Mechanical, and Electrical Improvements
$ (615,058) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PL-24000 Meadow Drive and Charleston Road Rail
Grade Separation and Safety
Improvements
$ (470,595) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PE-24005 Homekey Facilities $ (415,134) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PL-16000 Quarry Road Improvements and Transit
Center Access
$ (400,023) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PL-24001 Churchill Avenue Rail Grade Separation
and Safety Improvements
$ (279,869) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PE-15007 New Downtown Parking Garage $ (258,974) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PG-26000 Stanford Palo Alto Community Playing
Fields Turf Replacement
$ (248,432) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PE-19002 Animal Shelter Renovation $ (245,092) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PE-24002 Lucie Stern Community Theater
Mechanical Equipment Replacement
$ (190,014) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PL-17001 Railroad Grade Separation and Safety
Improvements
$ (101,025) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PE-24004 Rinconada Pool Family Changing Room $ (86,632) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PF-93009 Americans With Disabilities Act
Compliance
$ (80,820) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PG-18000 Golf Course Net and Artificial Turf
Replacement
$ (77,789) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PL-05030 Traffic Signal and Intelligent
Transportation Systems
$ (73,055) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PF-00006 Roofing Replacement $ (67,434) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

AC-18001 JMZ Renovation $ (53,707) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

ATTACHMENT A, EXHIBIT 2

CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2025 CAPITAL IMPROVEMENT PROGRAM

CAPITAL IMPROVEMENT FUND
Item 13
Attachment A - FY 2025 Budget
Amendments, Exhibit 1 and 2

Item 13: Staff Report
Pg.
17 Packet Pg. 98 of 637

Project
Number Title Revenue Expense Comments
ATTACHMENT A, EXHIBIT 2

CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2025 CAPITAL IMPROVEMENT PROGRAM PL-25001 Traffic Intersection Accessibility
Improvement Project
$ (50,513) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PL-25002 Charleston Road/Alma Street Railroad
Crossing Safety Improvements
$ (48,805) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PE-15020 Civic Center Waterproofing Study and
Repairs
$ (43,002) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PE-17010 Civic Center Electrical Upgrade & EV
Charger Installation
$ (41,539) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PD-25000 City Radio Replacement Program $ (29,500) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PE-19000 City Hall Space Planning $ (26,952) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

OS-09001 Off-Road Pathway Resurfacing And Repair $ (24,724) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PE-13014 Street Lights Condition Assessment $ (22,226) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PG-06001 Athletic Courts Resurfacing $ (20,472) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

AC-24001 Lucie Stern Community Theatre Fire
Curtain
$ (20,205) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PD-20000 Police Video Recording Systems
Replacement
$ (18,672) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PO-05054 Street Lights Improvements $ (18,564) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PE-21000 Foothills Nature Preserve Improvements $ (17,599) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PE-22000 San Francisquito Creek Joint Powers
Authority Ongoing Creek Projects
$ (17,048) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PL-15003 Parking District Implementation $ (16,496) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PE-09003 City Facility Parking Lot Maintenance $ (15,587) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

OS-24001 Baylands Interpretive Signage Program $ (12,821) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PL-12000 Transportation and Parking Improvements $ (12,522) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PE-17004 California Avenue District Gateway Signs $ (12,465) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

Item 13
Attachment A - FY 2025 Budget
Amendments, Exhibit 1 and 2

Item 13: Staff Report
Pg.
18 Packet Pg. 99 of 637

Project
Number Title Revenue Expense Comments
ATTACHMENT A, EXHIBIT 2

CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2025 CAPITAL IMPROVEMENT PROGRAM OS-24000 Baylands Nature Preserve Entrance Gate $ (11,298) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PL-14000 Churchill Avenue Enhanced Bikeway $ (10,891) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

FD-25000 Fire Equipment Replacement $ (10,406) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PL-00026 Safe Routes To School $ (10,103) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PF-25000 California Avenue Parking District Parking
Improvements
$ (10,103) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PF-23000 Electric Charger Infrastructure Installation $ (9,208) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

AC-28002 Children's Theatre Facility Upgrade/Repair $ (8,754) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PE-24003 Lucie Stern Community Theatre Theatrical
and House Lighting System Replacement
$ (8,116) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

AC-28003 Palo Alto Art Center Ceramics Equipment $ (7,880) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PE-24006 Mitchell Park Library Repair $ (5,728) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PO-11000 Sign Reflectivity Upgrade $ (5,051) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

OS-00002 Open Space Lakes And Pond Maintenance $ (4,668) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PG-17000 Baylands Comprehensive Conservation
Plan
$ (4,354) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

OS-18000 Foothills Nature Preserve Boronda Lake
Dock Replacement
$ (4,243) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PG-25002 Eucalyptus Tree Removal $ (4,243) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PG-21000 Heritage Park Site Amenities Replacement $ (3,022) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

FD-24000 Fire Training Facility Replacement $ 28 Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PE-19001 Water, Gas, Wastewater Office Remodel $ 43 Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PE-20002 City Facilities Assessment $ 56 Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

Item 13
Attachment A - FY 2025 Budget
Amendments, Exhibit 1 and 2

Item 13: Staff Report
Pg.
19 Packet Pg. 100 of 637

Project
Number Title Revenue Expense Comments
ATTACHMENT A, EXHIBIT 2

CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2025 CAPITAL IMPROVEMENT PROGRAM PL-16002 Parking Management and System
Implementation
$ 931 Adjustment to allocate Salaries and Benefits
across capital projects based on actual
expenditures.

PG-18001 Dog Park Installation and Renovation $ 2,605 Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PE-20001 City Bridge Improvements $ 5,160 Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PG-14002 Cameron Park Improvements $ 5,637 Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PE-15003 Fire Station 3 Replacement $ 6,097 Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PE-24000 Baylands Boardwalk Piling Repair $ 6,466 Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PF-14003 University Avenue Parking Improvements $ 12,000 Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PE-20000 Foothills Nature Preserve Dam Seepage
Investigation and Repairs
$ 12,798 Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PL-04010 Bicycle and Pedestrian Transportation
Plan Implementation
$ 13,483 Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PL-23000 California Avenue Streetscape Update $ 16,068 Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PE-18000 New California Avenue Area Parking
Garage
$ 17,417 Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PE-24001 Electrification of City Facilities $ 23,467 Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PE-18015 Robles Park Improvements $ 29,476 Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

OS-00001 Open Space Trails and Amenities $ 33,373 Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PE-21004 University Avenue Streetscape Update $ 43,417 Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

LB-21000 Library Automated Material Handling $ 45,779 Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PG-14000 Ramos Park Improvements $ 53,792 Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PF-01003 Building Systems Improvements $ 60,680 Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PG-19000 Park Restroom Installation $ 63,094 Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

Item 13
Attachment A - FY 2025 Budget
Amendments, Exhibit 1 and 2

Item 13: Staff Report
Pg.
20 Packet Pg. 101 of 637

Project
Number Title Revenue Expense Comments
ATTACHMENT A, EXHIBIT 2

CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2025 CAPITAL IMPROVEMENT PROGRAM AC-18000 Performing Arts Venues Seat Replacement $ 74,393 Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PF-02022 Facility Interior Finishes Replacement $ 77,844 Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PO-12001 Curb and Gutter Repairs $ 85,656 Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PF-23001 Roth Building Rehabilitation Phase 1 $ 93,724 Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PE-18016 Civic Center Fire Life Safety Upgrades $ 94,682 Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PE-08001 Rinconada Park Improvements $ 100,477 Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PG-09002 Park and Open Space Emergency Repairs $ 116,262 Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PG-06003 Benches, Signage, Walkways, Perimeter
Landscaping, and Site Amenities
$ 138,324 Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PE-18004 Fire Station 4 Replacement $ 237,741 Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PL-20000 Churchill Avenue/Alma Street Railroad
Crossing Safety Improvements
$ 252,538 Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PL-15002 Downtown Automated Parking Guidance
Systems, Access Controls & Revenue
Collection Equip.
$ 310,764 Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PE-17005 Boulware Park Improvements $ 446,455 Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PE-13011 Charleston/Arastradero Corridor Project $ 490,964 Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PO-89003 Sidewalk Repairs $ 985,206 Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PE-86070 Street Maintenance $ 1,259,252 Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PE-15001 New Public Safety Building $ 1,259,805 Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

Total $ - $ 0
Item 13
Attachment A - FY 2025 Budget
Amendments, Exhibit 1 and 2

Item 13: Staff Report
Pg.
21 Packet Pg. 102 of 637

Project
Number Title Revenue Expense Comments
ATTACHMENT A, EXHIBIT 2

CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2025 CAPITAL IMPROVEMENT PROGRAM CB-17002 Cubberley Field Restroom $ 98,690 Increase to project due to higher than anticipated expenditures.

Total $ - $ 98,690
AP-21000 Airport Layout Plan $ 31,497 Increase to project due to higher than anticipated expenditures.

Total $ - $ 31,497
GS-80017 Gas System, Customer Connections $ 11,239 $ 11,239 Increase to project due to higher than anticipated expenditures offset by revenue.

Total $ 11,239 $ 11,239
SD-19000 Loma Verde Ave Trunkline Improvement $ 446 Increase to project due to higher than anticipated expenditures.

SD-25000 Hamilton System Upgrades $ 152,942 Increase to project due to higher than anticipated expenditures.

Total $ - $ 153,388

CUBBERLEY PROPERTY INFRASTRUCTURE FUND

AIRPORT FUND

GAS FUND

STORMWATER MANAGEMENT FUND
Item 13
Attachment A - FY 2025 Budget
Amendments, Exhibit 1 and 2

Item 13: Staff Report
Pg.
22 Packet Pg. 103 of 637

Project
Number Title Revenue Expense Comments
ATTACHMENT A, EXHIBIT 2

CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2025 CAPITAL IMPROVEMENT PROGRAM VR-22000 Vehicle Replacement FY 2022 $ 60,507 Increase to project due to higher than anticipated expenditures.

Total $ - $ 60,507
WC-80020 Sewer System, Customer Connections $ 40,361 $ 40,361 Increase to project due to higher than anticipated expenditures offset by revenue.

Total $ 40,361 $ 40,361
WQ-22001 Horizontal Levee Pilot $ 67,441 Increase to project due to higher than anticipated expenditures.

WQ-19002 Plant Repair, Retrofit & Eqpt Replacement $ 2,032,177 Increase to project due to higher than anticipated expenditures.

Total $ - $ 2,099,618
WS-80013 Water System, Customer Connections $ 450,004 $ 450,004 Increase to project due to higher than anticipated expenditures offset by revenue.

Total $ 450,004 $ 450,004
TOTAL CIP ADJUSTMENTS $ 501,604 $ 2,913,807

WASTEWATER TREATMENT FUND

WATER FUND

VEHICLE FUND

WASTEWATER COLLECTION FUND
Item 13
Attachment A - FY 2025 Budget
Amendments, Exhibit 1 and 2

Item 13: Staff Report
Pg.
23 Packet Pg. 104 of 637

City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Fire
Meeting Date: December 15, 2025
Report #:2509-5200
TITLE
Approval for the City Manager or Designee to Execute Purchase Order with Zoll Medical Corporation, utilizing a Sourcewell Cooperative Contract to Procure Replacement Pre-hospital Monitors/Defibrillators and ancillary equipment for Emergency Responses for a Total Not-To- Exceed amount of $1,129,138. CEQA Status – Not a Project.

RECOMMENDATION
Staff recommends that City Council authorize the City Manager or their designee to execute a purchase order with Zoll Medical Corporation, utilizing the cooperative purchasing agreement through Sourcewell Solicitation #41823-ZLL to procure fifteen (15) Zenix Monitor/Defibrillator, EMS, Fire Configuration units for the Fire Department for a total not to exceed amount of $1,129,138 in one-time costs for an expected equipment lifetime of 7-10 years.

BACKGROUND
The Fire Department currently operates twenty (20) LifePak 15 cardiac monitor/defibrillators purchased in 2020. By the time the new monitors are implemented, those units will have provided six years of service and are approaching the end of manufacturer support, with limited availability of replacement parts and software updates. Advancements in cardiac monitoring technology now provide enhanced patient care capabilities and improved integration with electronic patient care reports (ePCR), warranting replacement to maintain reliable operations and clinical effectiveness.

ANALYSIS
Cardiac monitor/defibrillators are critical to EMS operations, enabling:
12lead ECG acquisition and transmission to support early STEMI recognition and hospital notification.
Defibrillation, synchronized cardioversion, and external pacing for time-sensitive cardiac events.

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Advanced monitoring functions including end-tidal CO₂, SpO₂, noninvasive blood pressure (NIBP), invasive blood pressure (IBP), real-time CPR feedback, and ventilation support.
Data connectivity with receiving hospitals and ePCR systems to improve continuity of care and post-incident quality improvement.

Following evaluation of available options, vendor demonstrations, and field personnel feedback, staff recommends the Zenix Monitor/Defibrillator, EMS, Fire Configuration. Key improvements include enhanced screen visibility and durability; wireless 12lead transmission with updated algorithms and trending; real-time CPR and ventilation feedback; extended battery life and reliability in high-call environments; and software upgrade capacity to support future capabilities and enhanced post-case analysis.

Procurement Process
Palo Alto Municipal Code section 2.30.360 (j) allows the use of cooperative purchasing agreements in lieu of conducting a separate competitive solicitation, provided the services were solicited using methods substantially similar to the City’s requirements, and the contract is consistent with the City’s municipal code requirements. Sourcewell, a cooperative purchasing agency serving governmental, higher education, K-12 education, not-for-profit, tribal government, and other public agencies, conducted a Request for Proposal (RFP). Sourcewell RFP # 41823 procurement for Critical Care and EMS Equipment is on the Sourcewell Procurement Portal on February 28, 2023, with ZOLL Medical Corporation being awarded the contract on June 2, 2023. The City requested a quote (Attachment A) from ZOLL Medical Corporation to complete procurement via cooperative purchasing through Sourcewell Solicitation #041823 (see Attachment B, Sourcewell ZOLL Contract 041823-ZLL), consistent with City procurement practices. This approach streamlines acquisition, leverages competitively awarded pricing, and supports timely deployment.

FISCAL/RESOURCE IMPACT
Attachment A provides the ZOLL Medical quote reflecting Sourcewell cooperative agreement pricing. The quote includes a trade-in of fifteen (15) existing LifePak 15 monitors for a total value of $90,000. The quote expires on 12/31/2025. Staff recommends Council approval and processing of the purchase order prior to the expiration date to retain quoted pricing and trade-in value. Implementation is planned for calendar year (CY) 2026, Quarter 2, including delivery, configuration, training, and go-live across frontline apparatus. Warranty and service coverage are included as set forth in the contract’s warranty provisions (Attachment B, pgs. 18- 21). Ongoing maintenance costs are expected to remain consistent with current expenditures.

Funds for this purchase are available in the Fire Equipment Replacement project (FD-25000) in the FY 2026 Adjusted Capital Budget.

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STAKEHOLDER ENGAGEMENT
Stakeholder engagement for this project included market research, vendor demonstrations, and end-user evaluation by Fire Department field personnel, in coordination with Purchasing and Information Technology. Cooperative purchasing is via Sourcewell as described above. No public engagement was deemed necessary since the request is for purchase of equipment only.

ENVIRONMENTAL REVIEW
This purchase of equipment does not meet the definition of a project under Section 21065 of the California Public Resources Code since it will not result in a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.

ATTACHMENTS
Attachment A: Sourcewell Quote (include trade-in and pricing; expiration 12/31/2025) Attachment B: Sourcewell ZOLL Contract 041823 / Solicitation #41823ZLL APPROVED BY:

Stephen Lindsey, Fire Chief
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Quote No: Q-124410 Version: 1

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ZOLL Medical Corporation
269 Mill Road
Chelmsford, MA 01824-4105
Federal ID# 04-2711626
Phone: (800) 348-9011
Fax: (978) 421-0015
Email: [email protected]
Palo Alto Fire Department
250 Hamilton Ave
Palo Alto, CA 94301
ZOLL Customer No: 105665
Jim Duren
6503292184
[email protected]
Quote No: Q-124410
Version: 1
Issued Date: October 30, 2025
Expiration Date: December 31, 2025
Terms: Net due in 30 days

FOB: Destination
Freight: Free Freight
Prepared by: Jess Bustamante
EMS Territory Manager
[email protected]
Item Contract
Reference
Part Number Description Qty List Price Adj. Price Total Price 1 CH-19879 8116-11-41-23101-10-
USA
Zenix Monitor/Defibrillator, EMS, Fire
Configuration
12-lead, Pacing, SpO2, SpCO, EtCO2, NIBP, Real
BVM Help, Real CPR Help
<br>Includes: SurePower 4 Battery, Zenix Power
Cord (NA), Zenix MFC Cable, Zenix 12-lead ECG
Cable (AAMI), Masimo RD Rainbow SET Patient
Cable (4 ft, EMS), Zenix AC-DC External Power
Supply, Zenix Accuvent Z-Link Cable, Zenix NIBP
Patient Hose, Zenix NIBP Cuff (Reusable, Adult
Plus), Zenix Z-Fold Paper, Zenix MFC Self Test Plug
Kit, and One (1)-year EMS warranty.

Parameter Details: Real CPR Help - Dashboard
display of CPR Depth and Rate for Adult and
Pediatric patients, Visual and audio prompts to coach
CPR depth (Adult patient only), Release bar to
ensure adequate release off the chest, Metronome to
coach rate for Adult and Pediatric patients. See-Thru
® CPR artifact filtering • ZOLL Noninvasive Pacing
Technology • Real BVM Help: Dashboard provides
real-time ventilation feedback on both volume and
rate for intubated and non-intubated patients.

AccuVent Z-Link Cable included. (Accuvent
disposable sensors sold separately) • SunTech NIBP
technology. 10 foot single lumen hose and SunTech
Reusable Adult Plus Cuff included • Masimo SpO2 &
SpCO with Signal Extraction Technology (SET),
Rainbow SET® •
15 $65,250.00 $53,450.00 $801,750.00
2 CH-19879 8016-000111-01 SurePower 4 Battery 30 $1,180.00 $1,040.00 $31,200.00 3 CH-19879 8016-001000 SurePower 4 Charger Adapter 40 $450.00 $395.00 $15,800.00 Item 14
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ZOLL Medical Corporation
269 Mill Road
Chelmsford, MA 01824-4105
Federal ID# 04-2711626
Phone: (800) 348-9011
Fax: (978) 421-0015
Email: [email protected]
Item Contract
Reference
Part Number Description Qty List Price Adj. Price Total Price 4 CH-19879 8050-0030-01 SurePower Charging Station
4 Charging bays, Multiple chemistry compatible, 200
watt capacity, Graphic driven user interface, RS-232
Communication port, Standard one (1) year warranty
10 $3,131.00 $2,385.38 $23,853.80
5 CH-19879 98-0599-4C Zenix NIBP Cuff, Large Adult Plus 15 $30.00 $26.50 $397.50 6 CH-19879 98-0599-4K Zenix NIBP Cuff, Small Adult Plus 15 $30.00 $26.50 $397.50 7 CH-19879 98-0599-41 Zenix NIBP Cuff, Child 15 $20.00 $17.65 $264.75 8 CH-19879 8000-000862 Masimo LNCS-II Rainbow DCI 8λ SpCO Adult Sensor, 3ft
15 $900.00 $885.60 $13,284.00
9 CH-19879 8016-000860-01 Zenix Carry Case, Large 15 $490.00 $430.00 $6,450.00 10 CH-19879 8900-000398-01 Zenix CPR AA Training Kit 5 $320.00 $288.00 $1,440.00 11 CH-19879 8000-001128 AccuVent Sensors, Box of 10 10 $821.00 $624.84 $6,248.40 12 CH-19879 8000-000878-01 Zenix Fan Folder Paper, Grid, Box of 10 100 $49.00 $43.00 $4,300.00 13 8400-110045 CaseReview Premium Subscription, X Series / Zenix, 5 Year- Hosted
Provides detailed post-case information, including
CPR quality on compression depth, rate, pause time
and release velocity, as well as ECG, shocks, EtCO2
and SpO2 vital signs.
15 $2,616.00 $2,616.00 $39,240.00
14 8778-890055-WF-ZNX Zenix Worry-Free Service Plan - 5 Years - On-Site - At Time of Sale
Includes: Annual preventive maintenance, battery
charger repairs per ZOLL Limited Product Warranty,
SurePower 4 Battery replacement upon verified
failure, accidental damage coverage, on-site service,
and pod replacement upon verified failure. Shipping
and use of a Service Loaner upon request, during
device service, no charge shipping. Service Plan is a
continuation of ZOLL Limited Product Warranty.

Battery replacement and accidental damage
guidelines can be found in the ExpertCare Service
Plan Terms and Conditions on the ZOLL website.
15 $12,190.00 $10,971.00 $164,565.00
15 CH-19879 8012-0206 12-lead ECG Simulator 5 $1,468.00 $1,117.66 $5,588.30 16 8900-000396-01 Zenix CPR AP Training Kit 5 $380.00 $342.00 $1,710.00 Item 14
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ZOLL Medical Corporation
269 Mill Road
Chelmsford, MA 01824-4105
Federal ID# 04-2711626
Phone: (800) 348-9011
Fax: (978) 421-0015
Email: [email protected]
Item Contract
Reference
Part Number Description Qty List Price Adj. Price Total Price 17 7800-0414-61 LP 15 12-Lead Version 4 Trade In Allowance See Trade Unit Considerations.
15 ($6,000.00) ($90,000.00)
Subtotal: $1,026,489.25
Total: $1,026,489.25
Contract Reference Description
CH-19879 Reflects Sourcewell 2023 041823-ZLL Contract Pricing. Notwithstanding anything to the contrary herein, the terms and conditions set forth in Sourcewell 2023 041823-ZLL shall apply to the customer's purchase of the products set forth on this quote.

Trade Unit Considerations
Trade-In values valid through December 31, 2025 if all equipment purchased is in good operational and cosmetic condition and includes all standard accessories. Trade-In values are dependent on the quantity and configuration of the ZOLL devices listed on this quotation. Customer assumes responsibility for shipping trade-in equipment at the quantities listed on the trade line items in this quotation to ZOLL's Chelmsford Headquarters within 60 days of receipt of new equipment. Customer agrees to pay cash value for trade-in equipment not shipped to ZOLL on a timely basis.

To the extent that ZOLL and Customer, or Customer’s Representative have negotiated and executed overriding terms and conditions (“Overriding T’s & C’s”), those terms and conditions would apply to this quotation. In all other cases, this quote is made subject to ZOLL’s Standard Commercial Terms and Conditions (“ZOLL T’s & C’s”) which for capital equipment, accessories and consumables can be found at https://www.zoll.com/terms-and-conditions-of-sale, for software products can be found at https://www.zoll.com/software-legal, and for ExpertCare Service Plans can be found at https://www.zoll.com/ExpertCare-Service-Terms. Except in the case of overriding T’s and C’s, any Purchase Order (“PO”) issued in response to this quotation will be deemed to incorporate ZOLL T’s & C’s, and any other terms and conditions presented shall have no force or effect except to the extent agreed in writing by ZOLL.

1. Delivery will be made upon availability.

2. This Quote expires on December 31, 2025. Pricing is subject to change after this date.

3. Applicable tax, shipping & handling will be added at the time of invoicing.

4. All purchase orders are subject to credit approval before being accepted by ZOLL.

5. To place an order, please forward the purchase order with a copy of this quotation to [email protected] or via fax to 978-421-0015.

6. All discounts from list price are contingent upon payment within the agreed upon terms.

7. Place your future accessory orders online by visiting the ZOLL web store.

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ZOLL Medical Corporation
269 Mill Road
Chelmsford, MA 01824-4105
Federal ID# 04-2711626
Phone: (800) 348-9011
Fax: (978) 421-0015
Email: [email protected]
Order Information (to be completed by the customer)
[ ] Tax Exempt Entity (Tax Exempt Certificate must be provided to ZOLL) [ ] Taxable Entity (Applicable tax will be applied at time of invoice)

BILL TO ADDRESS SHIP TO ADDRESS
Name/Department: Name/Department:

Address: Address:

City / State / Zip Code: City / State / Zip Code:

Is a Purchase Order (PO) required for the purchase and/or payment of the products listed on this quotation? [ ] Yes PO Number: ____________ PO Amount: ____________ (A copy of the Purchase Order must be included with this Quote when returned to ZOLL) [ ] No (Please complete the below section when submitting this order) For organizations that do not require a PO, ZOLL requires written execution of this order. The person signing below represents and warrants that she or he has the authority to bind the party for which he or she is signing to the terms and prices in this quotation.

Palo Alto Fire Department
Authorized Signature: _1\
\s1\
Name: \n1\
Title: \t1\
Date: \d1\
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ALS/BLS Software Solutions Master Software, SaaS and Services Agreement and Addenda Acknowledgement Form
The terms and conditions applicable to ZOLL Medical Corporation’s Software Solutions products can be found at https://www.zoll.com/en/about-zoll/legal. By signing below, the Customer acknowledges and agrees to those terms and conditions. The person signing below represents and warrants that she or he has the authority to bind the Customer to those terms and conditions.

Customer
Signature:
_________________________________________________
Name: ___________________________________________
Title: ____________________________________________
Company: _________________________________________
Company Address: ___________________________________
Date: ____________________________________________
Palo Alto Fire Department
Quote No: Q-124410 Version: 1
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Sourcewell Contract # 041823-ZLL | Amendment #1

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AMENDMENT #1
TO
CONTRACT # 041823-ZLL

THIS AMENDMENT is effective upon the date of the last signature below by and between Sourcewell and ZOLL Medical Corporation (Supplier).

Sourcewell awarded a contract to Supplier to provide Critical Care and EMS Equipment to Sourcewell and its Participating Entities, effective October 26, 2023, through June 30, 2027 (Contract).

The parties wish to amend the Proposal to ensure compliance with Sourcewell’s Procurement Policy and standard government procurement practices.

NOW, THEREFORE, the parties amend the Contract as follows:

1. Line item 7 of “Table 1: Proposer Identity & Authorized Representative” of the Proposal is deleted in its entirety and replaced with the following:

Roger Perez, Vice President/General Manager, Public Safety Email: [email protected]

Kurt Sandstrom, Vice President/General Manager, EMS
Email: [email protected]

2. Line item 8 of “Table 1: Proposer Identity & Authorized Representative” of the Proposal is deleted in its entirety and replaced with the following:

Ann Asselin, Manager, GPO and State Contracts
Email: [email protected] or [email protected] ph: +1 978-421-9285

Except as amended by this Amendment, the Contract remains in full force and effect.

Sourcewell ZOLL Medical Corporation

B y : B y :

Jeremy Schwartz Roger Perez
Chief Operating & Procurement Officer VP/General Manager, Public Safety

D a t e : D a t e :

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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Public Works
Meeting Date: December 15, 2025
Report #:2508-5130
TITLE
Approval of Professional Services Agreement No. C26193655 with Canopy to Support the City of Palo Alto's Urban Forestry Programs for a Term of Three Years and a Not-To-Exceed Amount of $1,236,366, and Approval of a Budget Amendment in the General Fund; CEQA Status - Not a Project

RECOMMENDATION
Staff recommends that the City Council:

1. Approve and authorize the City Manager or their designee to execute Professional Services Agreement No. C26193655 with Canopy to support Palo Alto's Urban Forestry programs and assist with the implementation of the Urban Forest Master Plan for a term of three years and a not-to-exceed amount of $1,236,366; and

2. Amend the Fiscal Year 2026 Budget Appropriation for the General Fund (requires a 2/3 vote) by:
a. Increasing the Public Works Department Public Services Division Operating Expenditure Budget by $150,000; and
b. Increasing the Public Works Department Public Services Division Operating Revenue Budget by $150,000 (use of funds in the Tree Preservation Non- Refundable Deposits Account).

EXECUTIVE SUMMARY
Palo Alto’s Urban Forest is an essential economic, community, environmental, and ecological asset for the City. Since the early 2000s, the City has contracted with the non-profit organization Canopy to assist in the protection, creation, restoration, and enhancement of this forest. The recent City Council-approved contract with Canopy expired on June 30, 2025.

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On April 2, 2025, a Request for Proposals for Urban and Community Forestry Services (RFP193655)1 was released. One responsive proposal was received from Canopy before the RFP deadline. Canopy’s proposal was reviewed, accepted, and a draft contract was created and has been partially executed.

BACKGROUND
Canopy was created in 1996 to support Palo Alto’s Urban Forestry Section and engage residents through its tree and tree care education activities. Since becoming an independent 501(c)(3) non-profit corporation in 2002, Canopy has greatly expanded its programs of tree planning and planting, stewardship, hands-on learning, and environmental education. Since the early 2000s, the City has contracted with Canopy, with a primary focus on assisting the City with projects and outreach to support and expand a healthy and sustainable urban forest.

In 2020, City Council approved a one-year, sole source contract2 with Canopy to support Palo Alto’s urban forestry programs by serving as a comprehensive information source on trees, educating and motivating Palo Alto residents to plant, care for, and celebrate trees, and assisting the City with special projects associated with the Urban Forest Master Plan (UFMP).

In 2021, the contract’s term expiration was extended via Amendment No. 13 to June 7, 2022. In 2022, City Council approved Amendment No. 24, extending the contract term to June 30, 2024, as well as adding additional projects to the scope of services.

At the end of the Amendment No. 2 term, staff had anticipated conducting a solicitation to obtain proposals for the next contract for these services as recommended by the best practices included in the 2022 Baker Tilly Non-Profit Audit.5
However, new data became available in early 2024 that required further analysis and possible updates to the long-term planning for the City’s Urban Forestry program. Specifically, the City obtained updated urban tree canopy coverage numbers for 2020 and 2022 and learned of the presence of Invasive Shothole Borers (ISHB) in the City of San Jose. A review of the tree canopy 1 RFP#193655 for Urban and Community Forestry Services, https://www.paloalto.gov/files/assets/public/v/1/public-works/public- services/contracts/urban_and_community_forestry_services-2025-11-13-22-56-29.pdf 2 City Council, December 7, 2020; Agenda Item #5; SR#10882, https://portal.laserfiche.com/Portal/DocView.aspx?id=49786&page=3&repo=r-704298fc&searchid=ec11fb42- 95af-49ab-883d-d2da53d586bc
3 Canopy Contract C21180324, Amendment 1, https://www.cityofpaloalto.org/files/assets/public/v/1/public- works/tree-section/new-folder/contracts/c21180324-canopy_amendment-1_fully-executed.pdf 4 City Council, June 21, 2022; Agenda Item #1; SR#14389, https://portal.laserfiche.com/Portal/DocView.aspx?id=59544&repo=r-704298fc&searchid=ec11fb42-95af-49ab- 883d-d2da53d586bc
5 Policy and Services Committee, June 14, 2022; Agenda Item #1; SR#13910 https://portal.laserfiche.com/Portal/DocView.aspx?id=64761&repo=r-704298fc&searchid=e01e4a30-b7df-448a- baaa-9d811b692039
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data showed a decrease in canopy coverage in every Palo Alto neighborhood between 2020 and 2022. ISHB has yet to be found outside of San Jose, but staff is participating in regional meetings and coordinated response planning sessions regarding ISHB. Staff has also begun preparations to deal with ISHB when it arrives within the city limits of Palo Alto. Initial analysis of both areas of concern was used to help inform the types of programs and services that are included in the scope of services for this new contract.

In 2024, City Council approved Amendment No. 311, adding to the scope of services and extending the contract term through June 30, 2025.

ANALYSIS
Canopy is well-established with the residents of Palo Alto and has the expertise, experience, professional stature, and key personnel to provide the City with urban and community forestry services. Canopy is highly qualified as a non-profit organization to connect projects and programs with cooperating agencies and organizations to leverage funding and increase the effectiveness of projects and outreach. Canopy’s combination of deep arboricultural background, robust educational framework, and strong local volunteer base make it uniquely qualified to provide these services to the City.

Procurement Details
On April 2, 2025, a Request for Proposals for Urban and Community Forestry Services (RFP193655) was released. The RFP was open for a total of 21 days, closing on April 25, 2025.

More than 3,500 vendors and portal users were notified of the RFP, approximately 20 vendors downloaded or followed the RFP, and the RFP was viewed 409 times. One responsive proposal was received from Canopy before the RFP deadline.

Canopy’s proposal was reviewed and evaluated by a panel of three Public Works Public Services staff. Canopy was chosen as the vendor for this contract (Attachment A) based on past performance when working with the city and the firm’s unique combination of arboricultural background, educational framework, and existing volunteer base.

Contract Comparison
The scope of work presented in the RFP as well as the solutions included in Canopy’s proposal are organized differently than previous contracts for Urban and Community Forestry Servies.

These changes serve to better align the contract with the current goals of the Urban Forestry Program. Services to be provided by Canopy have been divided into four categories. These categories and some of the major tasks are:
Community Education, Outreach, and Advocacy
11 City Council, June 18, 2024; Agenda Item #3; SR#2403- 2749;https://portal.laserfiche.com/Portal/DocView.aspx?id=73858&repo=r-704298fc&searchid=ec11fb42-95af- 49ab-883d-d2da53d586bc
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oArbor Day Events, Community Tree Walks, Website and Communication, Mayor’s Tree Planting
Tree Planting
oOrganize Volunteers to Plant Trees, Replace Trees (if needed), Community Planting Events, Canopy Disparity Strategy
Tree Assessment and Tree Care
oYoung Tree Care Survey, Digital Tree Health Survey
Urban Forestry Program Assistance
oUFMP Goal D.i: Maintain and Manage Open Data Portal
oUFMP Goal D.ii: Administer Utilities funded Right Tree, Right Place Program The previous four contracts with Canopy were completed without undergoing the formal RFP process as it was determined there was no other source available to provide the services included in the contract scope. The new contract’s scope of work format allows for improved tracking of individual deliverables and aligns contract costs with the scope for improved contract management.

The overall cost of the first year of the new contract increased by 6.2% over the final year of the previous contract. Some of the increase can be attributed to standard annual 3% cost escalation (as is shown in Table 2 in the “Fiscal/Resource Impact” section). New contract scope of work components such as specific line items for certain tasks have contributed to a portion of the remaining 3.2% increase. An example would be “Maintain and Manage Open Data Portal”. This was an UFMP goal that has ongoing maintenance costs that were not accounted for in the previous contracts. Canopy also provided an updated “Schedule of Rates” for each job title in their organization. The full schedule is included in Exhibit C-1 of the contract and includes changes to job titles and hourly rates from previous contracts. This updated schedule captures changes to Canopy’s organization over the course of the previous contract terms and accounts for the remaining cost increase between the two contracts.

FISCAL/RESOURCE IMPACT
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Partial funding for Year 1 of this contract is available in the Public Works Department General Fund, Community Services Department General Fund, and Utilities Department Electric Fund Fiscal Year 2026 Adopted Operating Budgets.

Additionally, $150,000 in costs can be offset by the revenue recognized from the non- refundable Forestry Fund Deposits account (also known as the Tree Preservation Deposits Account). Funding for this account comes from in-lieu payments from development projects in the City that cannot plant all the required trees on site. These funds can only be used for tree planting projects throughout the City. The fund balance as of October 31, 2025 is $241,422. To account for this offset, staff recommends two budget amendments to the Fiscal Year 2026 General Fund Appropriations: an Operating Expenditure Appropriation increase of $150,000 and an Operating Revenue Appropriation increase in the same amount.

However, $11,200 in unbudgeted cost increases remain, as these services do not fall under the usage guidelines of the Tree Preservation Deposits Account. The department is expecting to absorb these costs in FY 2026. The department contributions and funding sources proposed in this staff report for Year 1 of this contract are outlined in Table 1 below.

Table #1: Department and Funding Sources for Year 1 of Canopy Contract Department / Funding Source New Contract
Proposed Fiscal Year
2026
Public Works Department
General Fund (Tree Preservations Deposits Account)
$150,000
Public Works Department
General Fund (Amount Included in Fiscal Year 2026 Operating Budget) $217,800
Public Works Department
General Fund (From Public Works Public Services Fiscal Year 2026 Operating Budget)
$11,200
Community Services Department
General Fund (Amount Included in Fiscal Year 2026 Operating Budget) $6,000
Utilities Department
Electric Fund (Amount Included in Fiscal Year 2026 Operating Budget) $15,000
Totals $400,000
Subsequent years of the contract are subject to Council approval of annual operating budgets.

In the context of budget reductions needed in FY 2027, staff is evaluating potential reductions to this contract. If the City Manager’s proposed budget includes such reduction proposals, they would be considered during the FY 2027 budget process and, if approved by City Council, implemented via a subsequent contract amendment. The table below shows each year of the three-year contract and the associated amounts for each task item.

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Table #2: Contract Costs and Services
TASK DESCRIPTION FY26 FY27 FY28 CATEGORY

SUBTOTAL

GOAL NOT

TO EXCEED
Goal A: Community Education and Outreach $100,000 $103,000 $106,093 $309,093 Goal A.i: Mayor’s Tree Planting $10,000 $10,300 $10,609 $30,909 Goal A.ii: Arbor Day Events $15,000 $15,450 $15,914 $46,364 Goal A.vii: Community Tree Walks, Website and
Communication
$25,000 $25,750 $26,523 $77,273
Goal A: Other Basic Services Related to Community
Education and Outreach
$50,000 $51,500 $53,047 $154,547
Goal B: Tree Planting $135,000 $139,050 $143,223 $417,273 Goal B.i: Plant Trees (includes Volunteers) $100,000 $103,000 $106,090 $309,090 Goal B.i.1: Tree Replacement (if needed) $5,000 $5,150 $5,305 $15,455 Goal B.ii: Community Planting Events $5,000 $5,150 $5,305 $15,455 Item 15
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Table #2: Contract Costs and Services
TASK DESCRIPTION FY26 FY27 FY28 CATEGORY

SUBTOTAL

GOAL NOT

TO EXCEED
Goal B.iii: Canopy Disparity Strategy $25,000 $25,750 $26,523 $77,273 Goal C: Tree Assessment and Tree Care $130,000 $133,900 $137,918 $401,818 Goal C.i: Young Tree Care Survey $50,000 $51,500 $53,045 $154,545 Goal C.ii: Digital Tree Health Survey $25,000 $25,750 $26,523 $77,273 Goal C: Other Service Related to Tree Assessment
and Tree Care
$55,000 $56,650 $58,350 $170,000
Goal D: Urban Forestry Program Assistance $35,000 $36,050 $37,132 $108,182 Goal D.i: Maintain and Manage Open Data Portal $20,000 $20,600 $21,218 $61,818 Goal D.ii: Administer Right Tree, Right Place Program $15,000 $15,450 $15,914 $46,364 Total Contract All Tasks Not to Exceed: $400,000 $412,000 $424,366 $1,236,366

STAKEHOLDER ENGAGEMENT
Stakeholder engagement is an ongoing component of this contract. Many programs included in this contract (South Palo Alto Tree Planting, Mayor’s Tree Planting, Arbor Day celebrations, general Urban Forestry Education and Outreach) have an outreach/engagement component included as part of the implementation process. This allows Canopy and the City to inform stakeholders of projects and programs, incorporate stakeholder feedback into implementation plans, and engage stakeholders directly as volunteers and participants in growing and maintaining the City’s Urban Forest.

ENVIRONMENTAL REVIEW
The recommended action is exempt from review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15301(h) (maintenance of existing landscape).

ATTACHMENTS
Attachment A: Canopy Contract C26193655
APPROVED BY:

Brad Eggleston, Director Public Works/City Engineer
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CITY OF PALO ALTO CONTRACT NO. C26193655

AGREEMENT FOR PROFESSIONAL SERVICES

BETWEEN THE CITY OF PALO ALTO AND CANOPY

This Agreement for Professional Services (this “Agreement”) is entered into as of the 6th day of October, 2025 (the “Effective Date”), by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and CANOPY, a California nonprofit corporation, located at 3921 E. Bayshore, Palo Alto, CA 94303 (“CONSULTANT”).

The following recitals are a substantive portion of this Agreement and are fully incorporated herein by this reference:

RECITALS

A. CITY intends to execute its Urban Forest Master Plan (the “Project”) and desires to engage a consultant to help support Palo Alto's urban forestry programs, to assist with implementation of programs within the Urban Forest Master Plan, to improve tree canopy cover in priority areas, and to educate the public about trees in connection with the Project ( the “Services”, as detailed more fully in Exhibit A).

B. CONSULTANT represents that it, its employees and subconsultants, if any, possess the necessary professional expertise, qualifications, and capability, and all required licenses and/or certifications to provide the Services.

C. CITY, in reliance on these representations , desires to engage CONSULTANT to provide the Services as more fully described in Exhibit A, entitled “SCOPE OF SERVICES”.

NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions, in this Agreement, the parties agree as follows:

SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perform the Services described in Exhibit A in accordance with the terms and conditions contained in this Agreement. The performance of all Services shall be to the reasonable satisfaction of CITY.

SECTION 2. TERM. The term of this Agreement shall be from the effective date of this agreement through October 6, 2028 unless terminated earlier pursuant to Section 19 (Termination) of this Agreement.

SECTION 3. SCHEDULE OF PERFORMANCE. Time is of the essence in the performance of Services under this Agreement. CONSULTANT shall complete the Services within the term of this Agreement and in accordance with the schedule set forth in Exhibit B, entitled “SCHEDULE OF PERFORMANCE”. Any Services for which times for performance are not specified in this Agreement shall be commenced and completed by CONSULTANT in a reasonably prompt and timely manner based upon the circumstances and direction communicated to the CONSULTANT.

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of damages for delay if the extension is required due to the fault of CONSULTANT.

SECTION 4. NOT TO EXCEED COMPENSATION . 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 One Million Two Hundred Thirty-Six Thousand Three Hundred Sixty -Six Dollars ($1,236,366). 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.

SECTION 5. INVOICES. In order to request payment, CONSULTANT shall submit monthly invoices to the CITY describing the Services performed and the applicable charges (including , if applicable, an identification of personnel who performed the Services, hours worked, hourly rates, and reimbursable expenses), based upon Exhibit C or, as applicable, CONSULTANT’s schedule of rates set forth in Exhibit C-1. If applicable, the invoice shall also describe the percentage of completion of each task. The information in CONSULTANT’s invoices shall be subject to verification by CITY. CONSULTANT shall send all invoices to CITY’s Project Manager at the address specified in Section 1 3 (Project Management) below. CITY will generally process and pay invoices within thirty (30) days of receipt of an acceptable invoice.

SECTION 6. QUALIFICATIONS/STANDARD OF CARE. All Services shall be performed by CONSULTANT or under CONSULTANT’s supervision. CONSULTANT represents that it , its employees and subcontractors, if any, possess the professional and technical personnel necessary to perform the Services required by this Agreement and that the personnel have sufficient skill and experience to perform the Services assigned to them. CONSULTANT represents that it, its employees and subcontractors, if any, have and shall maintain during the term of this Agreement all licenses, permits, qualifications, insurance and approvals of whatever nature that are legally required to perform the Services. All Services to be furnished by CONSULTANT under this Agreement shall meet the professional standard and quality that prevail among professionals in the same discipline and of similar knowledge and skill engaged in related work throughout California under the same or similar circumstances.

SECTION 7. COMPLIANCE WITH LAWS . CONSULTANT shall keep itself informed of and in compliance with all federal, state and local laws, ordinances, regulations, and orders that may affect in any manner the Project or the performance of the Services or those engaged to perform Services under this Agreement, as amended from time to time . CONSULTANT shall procure all permits and licenses, pay all charges and fees, and give all notices required by law in the performance of the Services.

SECTION 8. ERRORS/OMISSIONS. CONSULTANT is solely responsible for costs, including, but not limited to, increases in the cost of Services , arising from or caused by CONSULTANT’s errors and omissions, including, but not limited to, the costs of corrections such errors and omissions, any change order markup costs, or costs arising from delay caused by the errors and omissions or unreasonable delay in correcting the errors and omissions.

SECTION 9. COST ESTIMATES. If this Agreement pertains to the design of a public works project, CONSULTANT shall submit estimates of probable construction costs at each phase of Docusign Envelope ID: 65FB9527-8355-4D29-84F3-6CE49122734C Item 15
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design submittal. If the total estimated construction cost at any submittal exceeds the CITY’s stated construction budget by ten percent (10%) or more , CONSULTANT shall make recommendations to CITY for aligning the P roject design with the budget, incorporate CITY approved recommendations, and revise the design to meet the Project budget, at no additional cost to CITY.

SECTION 10. INDEPENDENT CONTRACTOR. CONSULTANT acknowledges and agrees that CONSULTANT and any agent or employee of CONSULTANT will act as and shall be deemed at all times to be an independent contractor and shall be wholly responsible for the manner in which CONSULTANT performs the Services requested by CITY under this Agreement.

CONSULTANT and any agent or employee of CONSULTANT will not have employee status with CITY, nor be entitled to participate in any plans, arrangements, or distributions by CITY pertaining to or in connection with any retirement, health or other benefits that CITY may offer its employees. CONSULTANT wi ll be responsible for all obligations and payments, whether imposed by federal, state or local law, including, but not limited to, FICA, income tax withholdings, workers’ compensation, unemployment compensation, insurance, and other similar responsibilities re lated to CONSULTANT’s performance of the Services, or any agent or employee of CONSULTANT providing same. Nothing in this Agreement shall be construed as creating an employment or agency relationship between CITY and CONSULTANT or any agent or employee of CONSULTANT. Any terms in this Agreement referring to direction from CITY shall be construed as providing for direction as to policy and the result of CONSULTANT’s provision of the Services only, and not as to the means by which such a result is obtained.

SECTION 11. ASSIGNMENT . The parties agree that the expertise and experience of CONSULTANT are material considerations for this Agreement. CONSULTANT shall not assign or transfer any interest in this Agreement nor the performance of any of CONSULTANT’s obligations hereunder wit hout the prior written approval of the City Manager. Any purported assignment made without the prior written approval of the City Manager will be void and without effect. Subject to the foregoing, the covenants, terms, conditions and provisions of this Agreement will apply to, and will bind, the heirs, succes sors, executors, administrators and assignees of the parties.

SECTION 12. SUBCONTRACTING.

Option A: No Subcontractor: CONSULTANT shall not subcontract any portion of the Services to be performed under this Agreement without the prior written authorization of the City Manager or designee. In the event CONSULTANT does subcontract any portion of the work to be performed under this Agreement, CONSULTANT shall be fully responsible for all acts and omissions of subcontractors.

Option B: Subcontracts Authorized: Notwithstanding Section 11 (Assignment) above, CITY agrees that subcontractors may be used to complete the Services. The subcon tractors authorized by CITY to perform work on this Project are:

CONSULTANT shall be responsible for directing the work of any subcon tractors and for any compensation due to subcon tractors. CITY assumes no responsibility whatsoever concerning compensation of subcontractors. CONSULTANT shall be fully responsible to CITY for all acts Docusign Envelope ID: 65FB9527-8355-4D29-84F3-6CE49122734C Item 15
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and omissions of subcon tractors. CONSULTANT shall change or add subcon tractors only with the prior written approval of the City Manager or designee.

SECTION 13. PROJECT MANAGEMENT . CONSULTANT will assign Aubrey Knier, Community Forestry Manager, Telephone: (650) 204 -1369 as the CONSULTANT’s Project Manager to have supervisory responsibility for the performance, progress, and execution of the Services and represent CONSULTANT during the day -to-day performance of the Services. If circumstances cause the substitution of the CONSULTANT’s Project Manager or any other of CONSULTANT’s key personnel for any reason, the appointment of a substitute Project Manager and the assignment of any key new or replacement personnel will be subject to the prior written approval of the CITY’s Project Manager. CONSULTANT, at CITY’s request, shall promptly remove CONSULTANT personnel who CITY finds do not perform the Services in an acceptable manner, are uncooperative, or present a threat to the adequate or timely completion of the Services or a threat to the safety of persons or property.

CITY’s Project Manager is Paul Faklis, Public Works Department, Public Services Division, 3201 East Bayshore Rd Palo Alto, CA,: 94303, Telephone: (650) 496-6953. CITY’s Project Manager will be CONSULTANT’s point of contact with respect to performance, progress and execution of the Services. CITY may designate an alternate Project Manager from time to time.

SECTION 1 4. OWNERSHIP OF MATERIALS . All work product, including without limitation, all writings, drawings, studies, sketches, photographs, plans, reports, specifications, computations, models, recordings, data, documents, and other materials and copyright interests developed under this Agreement, in any form or media, shall be and remain the exclusive property of CITY without restriction or limitation upon their use. CONSULTANT agrees that all copyrights which arise from creation of the work product pursuant to this Agreement are vested in CITY, and CONSULTANT hereby waives and relinquishes all claims to copyright or other intellectual property rights in favor of CITY. Neither CONSULTANT nor its subcontractors, if any, shall make any of such work product available to any individual or organization without the prior written approval of the City Manager or designee. CONSULTANT makes no representation of the suitability of the work product for use in or application to circumstances not contemplated by the Scope of Services.

SECTION 15. AUDITS . CONSULTANT agrees to permit CITY and its authorized representatives to audit, at any reasonable time during the term of this Agreement and for four (4) years from the date of final payment, CONSULTANT’s records pertaining to matters covered by this Agreement, including without limitation records demonstrating compliance with the requirements of Section 10 (Independent Contractor). CONSULTANT further agrees to maintain and retain accurate books and records in accordance with generally accepted accounting principles for at least four (4) years after the expiration or earlier termination of this Agreement or the completion of any audit hereunder, whichever is later.

SECTION 16. INDEMNITY.

[Option A applies to the following design professionals pursuant to Civil Code Section 2782.8: architects; landscape architects; registered professional engineers and licensed professional land surveyors.] 16.1. To the fullest extent permitted by law, CONSULTANT shall indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents Docusign Envelope ID: 65FB9527-8355-4D29-84F3-6CE49122734C Item 15
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(each an “Indemnified Party”) from and against any and all third party demands, claims, or liability of any nature, including death or injury to any person, property damage or any other loss, including all costs and expenses of whatever nature including attorney ’s fees, experts fees, court costs and disbursements (“Claims”) to the extent that such Claims arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of CONSULTANT, its officers, employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an Indemnified Party. CITY will reimburse CONSULTANT for the proportionate percentage of defense costs exceeding CONSULTANT’s proportionate percentage of fault as determined by the final judgment of a court of competent jurisdiction.

[Option B applies to any consultant who does not qualify as a design professional as defined in Civil Code Section 2782.8.] 16.1. To the fullest extent permitted by law, CONSULTANT shall indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents (each an “Indemnified Party”) from and against any and all demands, claims, or liability of any nature, i ncluding death or injury to any person, property damage or any other loss, including all costs and expenses of whatever nature including attorney ’s fees, experts fees, court costs and disbursements (“Claims”) resulting from, arising out of or in any manner related to performance or nonperformance by CONSULTANT, its officers, employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an Indemnified Party.

16.2. Notwithstanding the above, nothing in this Section 16 shall be construed to require CONSULTANT to indemnify an Indemnified Party from a Claim arising from the active negligence or willful misconduct of an Indemnified Party that is not contributed to by any act of, or by any omission to perform a duty imposed by law or agreement by, CONSULTANT, its officers, employees, agents or contractors under this Agreement.

16.3. The acceptance of CONSULTANT’s Services and duties by CITY shall not operate as a waiver of the right of indemnification. The provisions of this Section 16 shall survive the expiration or early termination of this Agreement.

SECTION 17. WAIVERS. No waiver of a condition or nonperformance of an obligation under this Agreement is effective unless it is in writing in accordance with Section 2 9.4 of this Agreement. No delay or failure to require performance of any provision of this Agreement shall constitute a waiver of that provision as to that or any other instance. Any waiver granted shall apply solely to the specific instance expressly stated. No single or parti al exercise of any right or remedy will preclude any other or further exercise of any right or remedy.

SECTION 18. INSURANCE.

18.1. CONSULTANT, at its sole cost and expense, shall obtain and maintain, in full force and effect during the term of this Agreement, the insurance coverage described in Exhibit D, entitled “INSURANCE REQUIREMENTS”. CONSULTANT and its contractors, if any, shall obtain a policy endorsement naming CITY as an additional insured under any general liability or automobile policy or policies.

18.2. All insurance coverage required hereunder shall be provided through carriers with AM Best’s Key Rating Guide ratings of A -:VII or higher which are licensed or Docusign Envelope ID: 65FB9527-8355-4D29-84F3-6CE49122734C Item 15
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authorized to transact insurance business in the State of California. Any and all contractors of CONSULTANT retained to perform Services under this Agreement will obtain and maintain, in full force and effect during the term of this Agreement, identical insurance coverage, naming CITY as an additional insured under such policies as required above.

18.3. Certificates evidencing such insurance shall be filed with CITY concurrently with the execution of this Agreement. The certificates will be subject to the approval of CITY’s Risk Manager and will contain an endorsement stating that the insurance is primar y coverage and will not be canceled, or materially reduced in coverage or limits, by the insurer except after filing with the Purchasing Manager thirty (30) days ’ prior written notice of the cancellation or modification. If the insurer cancels or modifies the insurance and provides less than thirty (30) days’ notice to CONSULTANT, CONSULTANT shall provide the Purchasing Manager written notice of the cancellation or modification within two (2) business days of the CONSULTANT’s receipt of such notice. CONSULTANT shall be responsible for ensuring that current certificates evidencing the insurance are provided to CITY’s Chief Procurement Officer during the entire term of this Agreement.

18.4. The procuring of such required policy or policies of insurance will not be construed to limit CONSULTANT ’s liability hereunder nor to fulfill the indemnification provisions of this Agreement. Notwithstanding the policy or policies of insurance, CONSULTANT will be obligated for the full and total amount of any damage, injury, or loss caused by or directly arising as a result of the Services performed under this Agreement, including such damage, injury, or loss arising after the Agreement is terminated or the term has expired.

SECTION 19. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES.

19.1. The City Manager may suspend the performance of the Services, in whole or in part, or terminate this Agreement, with or without cause, by giving ten (10) days prior written notice thereof to CONSULTANT. If CONSULTANT fails to perform any of its material obligations under this Agreement, in addition to all other remedies provided under this Agreement or at law, the City Manager may terminate this Agreement sooner upon written notice of termination. Upon receipt of any notice of suspension or termination, CONSULTANT will discontinue its performance of the Services on the effective date in the notice of suspension or termination.

19.2. In event of suspension or termination, CONSULTANT will deliver to the City Manager on or before the effective date in the notice of suspension or termination, any and all work product, as detailed in Section 14 (Ownership of Materials), whether or not completed, prepared by CONSULTANT or its contractors, if any, in the performance of this Agreement. Such work product is the property of CITY, as detailed in Section 14 (Ownership of Materials).

19.3. In event of suspension or termination, CONSULTANT will be paid for the Services rendered and work products delivered to CITY in accordance with the Scope of Services up to the effective date in the notice of suspension or termination; provided, however, if this Agreement is suspended or terminated on account of a default by CONSULTANT, CITY will be obligated to compensate CONSULTANT only for that portion of CONSULTANT’s Services provided in material conformity with this Agreement as such determination is made by the City Manager acting in the reasonable exercise of his/her discretion . The following Sections will Docusign Envelope ID: 65FB9527-8355-4D29-84F3-6CE49122734C Item 15
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Palo Alto City CouncilDecember 15, 2025

Palo Alto City Council
December 15, 2025