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Item 7 Staff Report

Palo Alto City Council
January 20, 2026

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Item 7 Staff Report
Meeting
January 20, 2026
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Palo Alto City Council
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Text extracted from the city's file for reading and search. Open the original on cityofpaloalto.primegov.com. That file is the official record.

City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: City Manager
Meeting Date: January 20, 2026
Report #:2512-5780
TITLE
Adopt a Resolution to Allow Consumption of Alcohol under PAMC section 9.04.010 on Certain Days and Times through May 31, 2026, on California Avenue.

RECOMMENDATION
Staff recommends that the City Council Adopt a Resolution to Allow Consumption of Alcohol under PAMC section 9.04.010 on California Avenue from El Camino Real to Birch Street through May 31, 2026.

BACKGROUND
The Resolution was initially approved as a pilot to operate during 3rdThursdays only, from June 2024 through December 2024, within the car-free portion of California Avenue between 4:00 p.m. and 10:00 p.m. The City Council approved the Resolution via consent calendar on June 17, 20241. After the Resolution expired, it was reintroduced and approved by the City Council on the consent calendar at the June 17, 2025, meeting2, under similar conditions, with a new sunset date of December 31, 2025. Stakeholders have indicated support for continuing the program, and staff has conducted outreach to extend it through the 2026 Super Bowl and future California Avenue activations.

ANALYSIS
Staff has identified a path forward to support California Avenue Merchants for the Super Bowl schedule for February 8, 2026, while an Entertainment Zone Ordinance is worked through for the 2026 FIFA World Cup
A Resolution to allow open containers during the Superbowl and California Avenue Activations on the car-free street portion of California Avenue from El Camino Real to Birch Street is incorporated under Attachment A for the City Council’s consideration. The 1 June 17, 2024 Meeting Staff Report:
https://cityofpaloalto.primegov.com/viewer/preview?id=0&type=8&uid=7b643945-3828-4941-8858-ff95939f6fb3 2 June 17, 2025 Meeting Staff Report:
https://cityofpaloalto.primegov.com/viewer/preview?id=0&type=8&uid=9f372ac5-64eb-401e-9b78-429af7f3e632

Resolution goes into effect immediately, and would only allow open containers Wednesday to Sunday, only from 5 PM – 10 PM, and only on the car-free street portion of California Avenue from El Camino Real to Birch Street. The Resolution authorizes the City Manager to further limit the days and times to protect public safety, health, and welfare. The Resolution will sunset on May 31, 2026. It is anticipated that the City Council would consider approval of an Entertainment Zone Ordinance on California Avenue, which would be in effect prior to the 2026 FIFA World Cup games.

The Resolution does not replace any requirements imposed by the California Department of Alcohol Beverage Control (ABC) and the City of Palo Alto permits for the sale of alcohol and all vendors must still comply with the terms of their ABC and City permits. Staff will work with local providers to ensure awareness as well as pass along reminders from ABC and City, representatives to ensure businesses understand it is their responsibility to remain in compliance with their ABC and City permits.

It should be noted that while the Resolution addresses enforcement of alcoholic beverage consumption within a defined geographic location and timeframe, it does not address alcohol sales or transport.

Staff will monitor the status of this effort through its implementation and will assess any additional program needs or alterations for future discussion with the City Council.

FISCAL/RESOURCE IMPACT
No additional resources are necessary if the Resolution is adopted.

STAKEHOLDER ENGAGEMENT
Staff has engaged in discussions with California’s ABC representatives and business stakeholders along California Avenue during monthly Merchant Meetings and site visits.

ENVIRONMENTAL REVIEW
This Resolution is categorically exempt under CEQA Guidelines Sections 15301 (existing facilities); 15304(e) (minor temporary use of land having negligible or no permanent effects on the environment); 15305 (minor alterations in land use limitations); and 15323 (normal operations of facilities for public gatherings).

ATTACHMENTS
Attachment A: Resolution Authorizing Consumption of Alcoholic Beverages under PAMC

9.04.010.

APPROVED BY:

Ed Shikada, City Manager

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