CITY COUNCIL
DRAFT ACTION MINUTES
Special Meeting
January 20, 2026
The City Council of the City of Palo Alto met on this date in the Council Chambers and by virtual teleconference at 5:30 P.M.
Present In Person: Burt, Lauing, Lu, Lythcott-Haims, Reckdahl, Stone, Veenker Present Remotely:
Absent:
Special Orders of the Day
1. Proclamation honoring Aaron (Bunk) Miller for 34 Years of Service to the Palo Alto Regional Water Quality Control Plant and its partner agencies.
NO ACTION
Agenda Changes, Additions and Deletions
Public Comment
Council Member Questions, Comments and Announcements
Study Session
2. Presentation of the 2025 Annual Community Survey Results. CEQA Status -- Not a project.
NO ACTION
DRAFT ACTION MINUTES
Sp. City Council Meeting
Draft Action Minutes: 01/20/2026
Consent Calendar
Councilmember Lythcott-Haims registered a no vote on Agenda Item Number 10.
MOTION: Vice Mayor Stone moved, seconded by Councilmember Reckdahl to approve Agenda Item Numbers 3-10.
MOTION PASSED ITEMS 3-9: 7-0
MOTION PASSED ITEM 10: 6-1, Lythcott-Haims
3. Approval of Minutes from January 5, 2026 Meeting
4. Accept CalPERS Pension Annual Valuation Report as of June 30, 2024; CEQA Status – Not a project.
5. Approval of the Advisory Report: Contract Solicitation & Authority Levels and Subsequent Management Response as recommended by the Policy & Services Committee. CEQA Status – Not a Project.
6. Approval of the City of Palo Alto’s Updated 2026 Water, Gas, and Wastewater Utility Standards (Design and Construction); CEQA Status- Not a Project.
7. 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.
8. Approve Recommended Changes that will Align Increased General Liability Insurance Costs in the General Liability Fund to be Included in the Mid -Year Budget Report as Recommended by the Finance Committee. CEQA Status—Not a project.
9. Approval of Contract Amendment Number 3 to Contract C23183770 with Townsend Public Affairs, Inc. in the amount of $186,000 to Revise the Not -to-Exceed Total to $744,000 and to Extend the Term for an Additional Year of Service (the third of four one-year options to renew) for State and Federal Legislative Advocacy and Grant Consulting and Compliance Services; CEQA Status - Not a Project
10. SECOND READING: Ordinance of the Council of the City of Palo Alto Repealing and Replacing Section 18.40.250 (Lighting) of Chapter 18.40 (General Standards and Exceptions) and Amending Chapters 18.10, 18.12, 18.28 and Section 18.40.230 of Title 18 (Zoning) of the Palo Alto Municipal Code to Adopt New Outdoor Lighting Regulations (REINTRODUCED FIRST READING: December 8, 2025; PASSED:6-1, Lythcott-Haims, no)
DRAFT ACTION MINUTES
Sp. City Council Meeting
Draft Action Minutes: 01/20/2026
City Manager Comments
Ed Shikada, City Manager
Action Items
11. Policy and Services Committee Recommendation to Adopt the 2026 State and Federal State Legislative Guidelines and 2026 Utility Policy Guidelines, and Receive an Update on State and Federal Legislative Advocacy; CEQA Status – Not a Project MOTION: Mayor Veenker moved, seconded by Councilmember Reckdahl to:
1. Adopt the 2026 State and Federal Legislative Guidelines and 2026 Utility Policy Guidelines and receive an update on State and Federal Legislative Advocacy and add the following amendments to the Housing Section of Guidelines:
a. Clarify and streamline the process for developing affordable housing on city - owned land
b. Advocate for additional state and federal funding in support of affordable housing
c. Advocacy for reevaluations to the RHNA requirements for mid- cycle mandates on cities
d. Support changes to the legislative guidelines that align with Council’s recommended reforms to SB79, if any.
2. Direct staff to next year review and revise, as appropriate, the Utilities Legislative Guidelines and the Climate and Environment Section Guidelines to be consistent with each other and mutually supportive.
MOTION PASSED: 7-0
PORTION OF MOTION REMOVED WITH THE CONSENT OF THE MAKER AND SECONDER
MOTION SPLIT FOR THE PURPOSE OF VOTING
MOTION: Mayor Veenker moved, seconded by Councilmember Reckdahl to:
3. Adopt a support position for SB63 advocacy (Connect Bay Area Transit Committee) and follow up accordingly.
MOTION PASSED/FAILED: X-X
DRAFT ACTION MINUTES
Sp. City Council Meeting
Draft Action Minutes: 01/20/2026
12. Review the FY 2027 -FY 2036 Long Range Financial Forecast (LRFF) and FY 2027 Budget Development Guidelines using the LRFF as the Baseline for Developing the FY 2027 Budget as Recommended by the Finance Committee, CEQA Status – Not a Project MOTION: Councilmember Lauing moved, seconded by Council member Reckdahl to accept the Long Range Financial Forecast (LRFF) for Fiscal Year 2027 -2036 (Attachment A) and the FY 2027 annual Budget Development Guidelines (Attachment B) and direct staff to use this forecast as the baseline for developing the FY 2027 budget.
MOTION PASSED: 7-0
Adjournment: The meeting was adjourned at 10:42 P.M.
ATTEST: APPROVED:
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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.