ATTACHMENT A
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3 4
5 6
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9 10
11 BCDE F G H IJ K L M
2026 DRAFT CITY COUNCIL PRIORITIES AND OBJECTIVES
ANPHM
CA&RF
EBV
GE $'s
Achieve Near‐Term Priority Housing Milestones (ANTPHM)‐ 15 Total x
Adopt an updated Accessory Dwelling Unit (ADU) ordinance to comply with State law and implement additional policy alternatives, including increased allowable square footage and condominium conversions, consistent with City Council direction (05.15.23). Milestone: Planning and Transportation Commission recommendation and City Council consideration of draft ordinance. x 1
x
Evaluate opportunities that make multi‐family housing an attractive alternative to commercial office development, consistent with Housing Element Program 3.9A.
Milestones: Feedback from Policy & Services Committee in Q1 and advance ordinance to Council in Q2. x 1
x
Partner with Santa Clara County Housing Authority to achieve construction timeline milestones for the Palo Alto Homekey project (which will provide transitional housing and services for unhoused residents). Milestone: Formal opening of the Palo Alto Homekey facility at 1237 San Antonio Rd. x 1
x
Receive a Prohousing Designation from the California Department of Housing and Community Development in order to enhance the City's competitive advantage for qualifying grants. Milestone: Apply to HCD in Q1; receive approval in Q2. x x
Select a preferred alternative for the San Antonio Road Area Plan land use and transportation alternatives based on community input and City Council direction.
Milestones : Stakeholder input for alternatives (PTC, community, and advisory bodies') in Q1, Council selection of preferred alternative(s) in Q2, Environmental Impact Review in Q3, and Council review of policy recommendations in Q4. x 1 x
Develop and adopt Objective Development Standards for the South of Forest Area Coordinated Area Plan (SOFA), and present plan amendment options to replace subjective standards with objective standards for Planning and Transportation Commission and City Council consideration, consistent with Housing Element Program 3.7. Explore alignment opportunities with SB 79 work and Downtown Housing Plan. Milestones: Planning and Transportation Commission recommendation and City Council consideration of amended SOFA CAP and/or municipal code amendments by end of 2026. x 1
x
Codify the R1/SB 9 interim ordinance by establishing objective development standards and increasing the maximum floor area for SB 9 units from 800 to 1,200 square feet, consistent with Housing Element Program 6.3A, and evaluate implications for R1 and SB 9 projects within the City’s Individual Review Program.
Milestones: Planning and Transportation consideration of draft ordinance in Q3; Council consideration in Q4. x 1
Priority
CC Value #
OBJECTIVES (42 Total)
Sorted by:
Council Priority, Group #, estimated completion date, and finally by additional resource needs.
Q1
Q2
Q3
Q4
Group #
Attachment A - Page 1 of 6
ATTACHMENT A
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3 BCDE F G H IJ K L M
2026 DRAFT CITY COUNCIL PRIORITIES AND OBJECTIVES
ANPHM
CA&RF
EBV
GE $'s
Priority
CC Value #
OBJECTIVES (42 Total)
Sorted by:
Council Priority, Group #, estimated completion date, and finally by additional resource needs.
Q1
Q2
Q3
Q4
Group #
12 13
14 15
16 17
x
Conduct and complete a study of short‐term rentals and adopt housing and neighborhood preservation regulations that prioritize long‐term occupancy, consistent with Housing Element Programs 4.2D–E (anticipates ordinance adoption by July, 2027). Milestones: report to City Council in Q3; prepare alternatives for Council and Planning and Transportation Commission review in Q4, 2026 or Q1, 2027, if request
ed. x 1
x
Receive Council direction on optional SB 79 implementation strategies and, as appropriate, present scenario Downtown Housing Plan scenarios to Council and initiate environmental review. Milestones: Work with SB 79 and Downtown Housing Plan City Council Ad‐Hoc Committee on next steps in Q1 and Q2 based on SB 79 imp
lementation approach; advance Downtown Housing Plan based on direction received from City Council through Q4. x 1
x
Adopt zoning incentives and development standards that support innovative housing typologies, including micro‐units, intergenerational housing, housing for aging adults, students, and lower‐income households, consistent with Housing Element Program
6. 5B. Milestones : Study session with Planning and Transportation Commission in Q1; recommendations for Architectural Review Board consideration in Q2; Planning and Transportation Commission recommendation and City Council consideration of draft ordinance in Q4. x 1
x
Update and adopt development impact fees for public safety, government facilities, housing, transportation, parks, and community services, including comp letion of nexus and feasibility studies and establishment of fee waivers for low‐income inclusionary units. (Housing Element Programs 2.1B; 3.1B & C). Milestone: Present development scenarios and growth assumptions to Council for feedback by Q2.
Adopt Parks, Library & Community Facility Fee Updates by Q3. Adopt additional fee update
s by Q1 2027. x 1
x
Issue Requests for Information or Requests for Proposals (RFI/P) to develop approximately 218 affordable or workforce housing units on City‐owned surface parking lots. (Housing Element Program 1.4A). Milestone: Review draft RFI/P with Policy & Services Committee by Q3 2026 to issue the solicitation process by year end. x 1 x
Identify and designate additional Housing Element site capacity to maintain RHNA compliance and buffer by evaluating new opportunity sites to address anticipated capacity shortfalls in 2026, including impacts from development on faith‐based sites and downtown parking lots. Milestones : Select consultant to provide technical analysis in Q1; Planning and Tran sportation Commission recommendation and City Council consideration of replacement Housing Element sites in Q3. x 1 $‐$$ Attachment A - Page 2 of 6
ATTACHMENT A
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3 BCDE F G H IJ K L M
2026 DRAFT CITY COUNCIL PRIORITIES AND OBJECTIVES
ANPHM
CA&RF
EBV
GE $'s
Priority
CC Value #
OBJECTIVES (42 Total)
Sorted by:
Council Priority, Group #, estimated completion date, and finally by additional resource needs.
Q1
Q2
Q3
Q4
Group #
18 19
20 21
22 23
24 25
26 x
Implement Oversized Vehicles (OSV) Phase 1 work, including options for RV buyback and storage, new recruiting safe parking and enforcement/signage relating to detached/inoperable vehicles prohibition. Milestones: In coordination with the OSV Ad hoc, seek Council direction on preferred option(s) on RV buyback and storage in Q2. Implement signage and enforce detached/inoperable vehicl es prohibition in Q2.
Work with OSV Ad Hoc on recruiting new safe parking and bring any potential projects to Council for consideration in Q3. (related to 2025 Objective 3.3.4). x 1 $$‐
$$$
x
Initiate and advance Oversized Vehicles Phase 2 work, including oversized vehicle permit pilot (e.g., collecting count data, designing permit process & terms, conducting informal RFI/Q to operate pilot). Milestone : Develop OSV permit pilot, including enhanced services and bring to Council for consideration. (related to 2025 Objective
3.3.4). x 1
$$‐
$$$
Cubberley Acquisition and Renovation Funding (CA&RF)‐ 2 Total Continue to advance the Cubberley Project focusing on anticipated purchase of 7 acres from PAUSD and community polling for potential placement of a measure on the November 2026 ballot and other funding source(s). x 1 Continue to explore and develop partnership opportunities with community nonprofit organizations to advance certain elements of the master concept plan throu
gh a combination of city and private investments. x 1
Enhance Business Vibrancy (EBV)‐ 5 Total
x
Develop a formal business retention/expansion/attraction program focused on supporting existing Palo Alto businesses seeking to diversify the local economy, increase the tax base that pays for essential public services, job creation, support placemaking and special events, and branding opportunities. Milestone: With the Economic Development Ad Hoc Committee, review and solidify for Council approv al a Business Retention, Expansion, and Attraction (BRE/A) Strategy with various implementation actions; an initial draft is attached to this staff report. x 1 x
Adopt an ordinance expanding retail opportunities and strengthening retail resiliency, including refining retail and retail‐like definitions and updating the retail preservation ordinance. Milestone: PTC review and recommendation in Q2; City Co uncil review and action in Q3. Continued engagement with stakeholders prior to implementation. X 1 x
Implement the California Avenue near‐term signage plan replacing the El Camino Real (October 2026) and Oregon Expressway (August 2026) signs—by completing their procurement and installation. x 1
Attachment A - Page 3 of 6
ATTACHMENT A
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3 BCDE F G H IJ K L M
2026 DRAFT CITY COUNCIL PRIORITIES AND OBJECTIVES
ANPHM
CA&RF
EBV
GE $'s
Priority
CC Value #
OBJECTIVES (42 Total)
Sorted by:
Council Priority, Group #, estimated completion date, and finally by additional resource needs.
Q1
Q2
Q3
Q4
Group #
27 28
29 30
31 32
33 34
35 x
Continue design work on new parking structure in Downtown core (Lot D).
Milestone: Complete entitlement process and design development phase by the end of 2026. x 1
x
Secure City Council approval for the California Avenue Outdoor Activation Guidelines.
These guidelines will be finalized through continued stakeholder engagement that includes a representative mix of busines s owners and residents and a formal Architectural Review Board (ARB) review. x 1 $
Government Efficiency (GE)‐ 8 Total
x
Develop and balance FY 2027 budget by June 30 prioritizing government efficiency, ongoing solutions and balancing fiscal impacts of policies and practices including consultant contracts, downtown parking and general fund subsidies, nonprofit partnerships and revenue enhancements. x1
x
Implement a standardized Citywide Consultant Stewardship Framework—covering the lifecycle from the decision to outsource and scope drafti ng to contract close‐ out—to develop and manage scope of services and enhanced reporting on use of professional services. x1
x
Improve City processes by streamlining approval of revised procurement thresholds and contract authority. x1
xx
Improve and streamline staff work on homelessness, housing and services for vulnerable residents. Milestones: Centralize in City Manager's Office, Identify and imp
lement ways to improve processes and reporting (e.g., consolidating contracts, standardizing reporting, HSRAP). x1
x
Leverage the Palo Alto 311 staff working group workplan, vendor support and City Auditor benchmarking advice to improve clarity and timing of constituent response and satisfaction, and enhance staff efficiencies by aligning report categories with cons
tituent expectations, and implementing vendor‐proposed 2026 system upgrades—including integrating AI tools. x1
x
Modify the municipal code to remove the requirement for planning entitlement approval (such as architectural review) or compliance with zoning regulations and procedures for capital improvement or other city‐initiated projects on publicly owned right of way and land. x1
Attachment A - Page 4 of 6
ATTACHMENT A
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3 BCDE F G H IJ K L M
2026 DRAFT CITY COUNCIL PRIORITIES AND OBJECTIVES
ANPHM
CA&RF
EBV
GE $'s
Priority
CC Value #
OBJECTIVES (42 Total)
Sorted by:
Council Priority, Group #, estimated completion date, and finally by additional resource needs.
Q1
Q2
Q3
Q4
Group #
36 37
38 39
40 41
42 43
44 45
x
Explore options to streamline delivery of low‐cost, high‐value (aka quick build) traffic safety improvements and update the City’s Traffic Calming Policy to align with Safety Action Plan, Bicycle/Pedestrian Transportation Plan (BPTP) and Safe Routes to School.
Milestone: Council review of existing program, policy needs and approaches. x1 x
Relocate City operations in Utilities and th e Development Center back to City Hall in order to reduce rent expense to third party landlords, maximizing revenue to the General Fund, and consolidating property and facility management within City owned land. x 1
Council Values‐ 12 Total
3,4
Open 429 Bryant Street Community Center. Complete construction and any necessary partnership agreements to begin La Comida Senior Lunch Program at the facility by end of July, 2026; plan further work for general community center operations concurrently. x 1
3,4
Execute MOU with Santa Clara County for assignment of clinician to PD Psychiatric Emergency Response Team (PERT) in Jan 2026. x 1
2 Adopt ordinance updates establishing additional Green Building Standards and Energy Reach Codes. Milestone: City Council consideration of ordinance for adoption by June 2026. x 1
2 Complete 2026 Bicycle and Pedestrian Transportation Plan (BPTP) with City Council adoption of the plan. x 1
2 Advance recommendations for the Regional Water Quality Control Plant Biosolids Facility Plan. Milestone: Conduct community engagement, refine and review recommendations with Council Committee in 2026, and further develop implementation strategies in preparation for Council acceptance of the Biosolids Facility Plan in 2027. x 1
2 Advance design of Grade Separation projects at Charleston Road, Meadow Drive and Churchill Avenue. Milestone: Complete 15% design and select Locally Preferred Alternative for 35% design at each crossing. x 1
4 Update the Safety Element and develop an Evacuation Plan pursuant to SB 99, AB 747, and AB 1409. Milestones: contract with consultant to develop evacuation plan, present draft Safety Element amendments to Planning and Transportation Commission and City Council consideration with final submittal to state for review in Q3. x 1
Attachment A - Page 5 of 6
ATTACHMENT A
1 2
3 BCDE F G H IJ K L M
2026 DRAFT CITY COUNCIL PRIORITIES AND OBJECTIVES
ANPHM
CA&RF
EBV
GE $'s
Priority
CC Value #
OBJECTIVES (42 Total)
Sorted by:
Council Priority, Group #, estimated completion date, and finally by additional resource needs.
Q1
Q2
Q3
Q4
Group #
46 47
48 49
50 51
3,4
Support Community Mental Health through provision of support for all ages through community partnerships, programs, and initiatives. Milestone: continue work with the Jed Foundation engagement to support youth mental health and suicide prevention efforts. x 1
2 Implement the strategies contained in the 2026‐2027 Sustainability and Climate Action Plan Work Plan. Milestone: Complete progress on strategies implementation in substantial alignment with the Target Completion Dates contained in the Work Plan. x 1
4 Pursue a natural grass athletic field pilot project to determine the best management practices to enhance playability and durability. Milestones : Q1 work with the Parks and Recreation Commission (PRC) to develop a workplan for the Turf Pilot. Q2 seek Council approval of work plan and funding. Q3 Conduct enhanced maintenance pilot and feasibility study at two locatio
ns. Q4 Conduct stakeholder engagement on
conceptual designs and present to PRC. Funding and construction of high performing grass fields to be completed in 2027‐28 pending Council review and approval. x 1 $$‐
$$$
2 Develop and recommend for Council approval a multi‐year grid modernization capital improvement plan focused on improving reliability and facilitating city‐wide customer electrification by upgrading sub‐transmission, substation, and distribution infrastructure. Issue the first tranche of debt financing in 2026. x1 $$$$ 4 Advance Quiet Zones at Palo Alto Avenue, Churchill Avenue, Meadow Drive, and Charleston Road Rail Crossings. Milestone: Council approval of Notice of Establishment and Quiet Zone implementation at Palo Alto Avenue; and identification of funding and procurement of professional services for design of required improvements to establish Quiet Zones at Churchill, Meadow and Charleston . x 1 $$$$ $ = up to 50K; $$ = 51‐499K, $$$ = 500K‐999k, $$$$ = 1M + Attachment A - Page 6 of 6