CITY COUNCIL
ACTION MINUTES
Special Meeting
February 23, 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:
Call to Order
C
losed Session
1. CONFERENCE WITH CITY ATTORNEY-POTENTIAL LITIGATION
Subject: Potential litigation regarding 156 North California Avenue, as set forth in letter(s) from Holland & Knight LLP dated September 3, 2025 Authority: Government Code Section 54956.9(d)(2)
Number of potential cases: 1, as Defendant
MOTION: Vice Mayor Stone moved, seconded by Council member Lauing to go into Closed Session.
MOTION PASSED: 7-0
Council went into Closed Session at 5:37 P.M.
Council returned from Closed Session at 7:23 P.M.
Mayor Veenker announced no reportable action.
A
genda Changes, Additions and Deletions
P
ublic Comment
Docusign Envelope ID: 14EC0BD4-4632-4680-AE32-D09342F2518E
ACTION MINUTES
Sp. City Council Meeting
Action Minutes: 02/23/2026
Council Member Questions, Comments and Announcements
St
udy Session
2. Status Report from the Oversized Vehicles (OSV) Ad Hoc Committee CEQA Status: Not a Project.
NO ACTION
C
onsent Calendar
MOTION: Council member Reckdahl moved, seconded by Council member Lythcott-Haims to approve Agenda Item Numbers 3-7.
MOTION PASSED: 7-0
3. Approval of Minutes from January 31, February 1, February 2, and February 9, 2026 Meeting
4. Approval of a Purchase Order with ABB Inc. for a Not -to-Exceed Amount of $389,862 to Procure Equipment and Services to Retrofit Ten (10) Existing VHK, Circuit Breakers for the Maybell Electric Substation. CEQA Status: Exempt Under CEQA Guideline 15302(c), Reconstruction of Existing Utility Facilities.
5. Approval of Professional Services Contract Number C26194078 with M.E. Simpson Co., Inc. in the Amount Not- to-Exceed $642,609 Water System Leak Detection Survey Services for a Period of Three Years. CEQA Status – Exempt under CEQA Guidelines Sections 15061(b)(2) and (b)(3).
6. Approval of Amendment No. 2 to Contract No. C25193187 with Universal Security Company for Fire Watch Services at City Hall in the Amount of $80,915 for a New Total Not-to-Exceed Amount of $301,667, and Approval of a Fiscal Year 2026 Operating Budget Amendment in the General Fund; CEQA status - Categorically Exempt under Sections 15301 and 15302
7. Approval of Amendment No. 1 to Contract No. S26196996 for One Year with Yosh Enterprises Inc. dba Orion Security for Track Watch Services at Four Grade Crossings in the Amount of $1,623,314 for a New Total Not -to-Exceed Amount of $1,708,314; Authorize the Negotiation and Execution of a Cost Sharing Agreement with Palo Alto Unified School District for $854,157; and Approval of a Fiscal Year 2026 Operating Budget Amendment in the General Fund; CEQA status - Not a project.
Docusign Envelope ID: 14EC0BD4-4632-4680-AE32-D09342F2518E
ACTION MINUTES
Sp. City Council Meeting
Action Minutes: 02/23/2026
City Manager Comments
Ed Shikada, City Manager
Ac
tion Items
8. FY 2026 Mid-Year Budget Review and Approve 1) Budget Amendments in Various Funds, and 2) a $10.0 Million Additional Discretionary Payment (ADP) from the PARS Pension Trust
MOTION: Councilmember Reckdahl moved, seconded by Mayor Veenker to:
1. Approve amendments to the Fiscal Year 2026 Budget Appropriation for the funds and capital projects identified in revised Attachment A, Exhibits 1 and 2 (requires 2/3 approval);
2. Consolidate the remaining $6.0 million in the Uncertainty Reserve with the Budget Stabilization Reserve (BSR) to streamline reserve administration, closing the Uncertainty Reserve; and
3. Authorize the City Manager or their designee to transmit $10.0 million from the City’s PARS Pension Trust to CalPERS as an Additional Discretionary Payment (ADP) MOTION PASSED: 7-0
9. Ap
proval of City Council Values (as Recommended by Policy & Services Committee), 2026 Objectives, Ad Hoc Purpose Statements, and Committee Workplans Agenda Item Number 9 not heard and deferred to a date uncertain.
Ad
journment: The meeting was adjourned at 10:45 P.M.
Docusign Envelope ID: 14EC0BD4-4632-4680-AE32-D09342F2518E
ACTION MINUTES
Sp. City Council Meeting
Action Minutes: 02/23/2026
ATTE
ST: 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.
Docusign Envelope ID: 14EC0BD4-4632-4680-AE32-D09342F2518E
Certificate Of Completion
Envelope Id: 14EC0BD4-4632-4680-AE32-D09342F2518E
Status: Completed
Subject: February 23, 2026 Action Minutes
Source Envelope:
Document Pages: 4
Signatures: 2
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Certificate Pages: 2
Initials: 0
Christine Prior
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Time Zone: (UTC-08:00) Pacific Time (US & Canada)
250 Hamilton Ave
Palo Alto , CA 94301
[email protected]
IP Address: 170.85.155.40
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3/18/2026 5:29:25 PM
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Vicki Veenker
[email protected]
City of Palo Alto
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Mahealani Ah Yun
[email protected]
City Clerk
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