City Council
Staff Report
From: City Manager
Report Type: ACTION ITEMS
Lead Department: City Manager
Meeting Date: March 9, 2026
Report #:2602-6021
TITLE
Approval of City Council Values (as Recommended by Policy & Services Committee), 2026 Objectives, Ad Hoc Purpose Statements, and Committee Workplans
RECOMMENDATION
Staff recommends that the City Council approve: (a) Revised Council Values, as recommended by the Policy & Services Committee, (b) 2026 City Council Group 1 Objectives, and (c) Ad Hoc Purpose Statements and Committee Workplans.
EXECUTIVE SUMMARY
At its January 24, 2026 annual retreat, the City Council adopted a refined framework for establishing priorities and objectives that emphasizes clarity, focus, and implementation. Under this approach, City Council Values represent enduring policy commitments; Priorities identify a limited number of areas requiring heightened focus; and Objectives define specific, measurable actions to advance both values and priorities. This structure is intended to strengthen accountability, align resources with Council direction, and ensure meaningful progress within the year.
This report presents: (a) recommended revised City Council Values as recommended by the Policy & Services Committee; (b) the proposed 2026 Group 1 Objectives aligned with the adopted Priorities; and (c) Ad Hoc Purpose Statements and Committee Workplans for City Council consideration and adoption. Objectives are organized into three categories: Group 1 (mission-critical and requiring City Council engagement), Group 2 (value-adding initiatives with flexible timing), and Staff Not Recommended. While all Group 1 and Group 2 objectives will be tracked for progress, quarterly reporting will focus on Group 1 objectives to align with City Council’s highest priorities. The Policy & Services Committee reviewed and consolidated proposed revisions to the City Council Values and unanimously recommends adoption of an updated set of values.
It should be noted that the objectives and timeframes described here were developed prior to the identification of potential near-term changes being considered at railroad grade crossings.
The effort required to address this issue may impact timelines of other priority objectives.
BACKGROUND
At its January 24, 2026 annual retreat, the City Council articulated a refined approach to identifying priorities that emphasizes clarity, focus, and implementation1. City Council distinguished between enduring Council Values, time-bound priorities, and actionable objectives, noting that values should reflect long-standing policy commitments, while priorities should represent a limited number of areas requiring heightened Council attention in the near term. Several policy areas previously treated as annual priorities were recognized as ongoing in nature and more appropriately reflected as values, allowing annual priorities to be more targeted and strategic. This refined approach remains consistent with the Council’s Policies and Protocols Handbook.
Under this approach, the Council seeks to limit the number of priorities to those initiatives where focused effort can realistically result in meaningful progress within the year, taking into account staff capacity, fiscal considerations, and operational complexity. Objectives will be used to capture the full scope of ongoing work and define specific milestones, while priorities will signal areas requiring elevated focus or resource alignment. City Council expressed interest in further refining the City Council Values framework through the Policy & Services Committee to ensure priorities clearly guide implementation and support accountability throughout the year.
The 2026 City Council Priorities are:
Achieve Near-Term Priority Housing Milestones
Cubberley Acquisition and Renovation Funding
Enhance Business Vibrancy
Government Efficiency
The original City Council Values referred to Policy & Services Committee to revise are:
The Palo Alto City Council has universally shared values that help guide our decision and the work we do. These values include:
1. We will make decisions that balance revenues and expenses, now and in the future.
2. We will make decisions that are environmentally sustainable, now and in the future.
3. We will integrate equity into our decisions, considering how decisions affect people differently based on their identity or circumstances.
4. We will make decisions that create a healthy, safe and welcoming community for all.
5. We will safeguard public trust through transparent practices and open communication. 1 January 24, 2026 City Council Retreat:
https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=18520
6. We embrace innovation.
This report outlines the reorganized proposed 2026 Objectives within the adopted Priorities and City Council Values, incorporating City Council feedback and the refined priority framework. It also includes ad hoc purpose statements and committee workplans for City Council consideration and adoption, as well as the recommended City Council Values refined by the Policy & Services Committee for City Council consideration.
ANALYSIS
City Council Values
On February 10, 2026, the Policy & Services Committee discussed the City Council referral to refine the City Council Values and considered proposed revisions submitted by City Councilmembers Burt, Reckdahl, and Mayor Veenker.3 The Committee noted that the proposals were mostly aligned, with differences primarily related to wording, organization and level of specificity. The Committee emphasized readability, clarity, succinctness, and ensuring that the final values incorporated key themes raised in all the suggested drafts, including economic development, fiscal stewardship, equity, belonging, innovation, climate action and adaptation, transparency, and community well-being. Following revisions and consensus on language, the Committee agreed on a consolidated set of seven City Council Values and voted unanimously to recommend that the City Council adopt the updated values:
1.Vibrant Community. Cultivate a dynamic community by fostering retail vibrancy, economic development, engaging public spaces, and a high quality of life for all.
2.Fiscal Responsibility. Exercise disciplined financial management to ensure city revenues and expenses remain balanced and sustainable, and are fiscally strategic and responsible.
3.Accountable Governance. Earn public trust through transparent leadership, inclusive engagement, and open communication.
4.Strategic Innovation. As the birthplace of Silicon Valley, embrace innovation in the public and private sectors to optimize efficiency and outcomes.
5.Equity and Shared Prosperity. Center equity in every decision, and advance housing, workforce, and social policies that promote inclusion, socioeconomic diversity, and opportunity.
6.Climate Leadership and Environmental Stewardship. Lead with urgency on climate action and adaptation, sustainability, and environmental protection for current and future generations.
7.Community Well-Being & Belonging. Foster a safe, healthy, and welcoming community where everyone belongs and can thrive physically, mentally, and socially. 3 February 10, 2026 Policy & Services Meeting:
https://cityofpaloalto.primegov.com/meetings/ItemWithTemplateType?id=10899&meetingTemplateType=2&com piledMeetingDocumentId=18478
Proposed 2026 Objectives
At its retreat, the City Council reviewed and provided feedback on a preliminary list of objectives which included continuing projects from the 2025 objectives list, existing City Council referrals, as well as newly proposed objectives. As proposed, the objectives were presented under three groups, Group 1, Group 2, and Staff Not Recommended. All are intended to reflect SMARTIE (Specific, Measurable, Realistic, Time-bound, Inclusive, and Equitable) framing.
Group 1 objectives are categorized as mission-critical, and must be achieved to meet legal, operational, safety, or strategic requirements. Objectives in this group will require City Council engagement. These are captured in Attachment A.
Group 2 objectives are value-adding initiatives that are important, improve quality of life or advance longer-term goals, but flexible in timing and dependent on capacity or completion of Group 1 priorities. These do not create immediate risk if delayed. Many of the objectives captured in this category are already underway and will not require Council action to be completed. These are captured in Attachment B.
Staff Not Recommended objectives include projects that are not recommended to be part of the 2026 list of objectives, for a variety of reasons including feasibility challenges, or work is already underway as part of a greater effort, such as the draft proposed Business Retention, Expansion, and Attraction (BRE/A) strategy in Attachment G. A narrative for each objective not being recommended is summarized in Attachment C.
In total, a total of 42 objectives are in Group 1. A total of 24 objectives are in Group 2. Lastly, a total of 14 objectives are in the Staff Not Recommended group. While progress will be tracked for all objectives in Groups 1 and 2, quarterly reporting will focus on Group 1 objectives to align with City Council’s highest priorities.
Priority Group
1 Group
2 Staff Not
Recommended
Achieve Near Term Priority Housing Milestones 15 6 6
Cubberley Acquisition and Renovation Funding 2 0 0
Enhance Business Vibrancy 5 7 4
Government Efficiency 8 0 0
Council Values 12 11 4
Total 42 24 14
Objectives in the City Council Values sections refer to the original values as outlined in the Handbook since the Policy & Services Committee recommended edits have not yet been adopted. Staff will made administrative corrections to corresponding values after Council approval.
Ad Hoc Purpose Statements and Committee Workplans
Achieving progress on Priorities and Objectives is a partnership between City Council and staff.
City Council engagement is reflected through their strategic and focused work on standing and ad hoc committees; this year there are eight (8) ad hoc committees in addition to the City Council’s Standing Committees (Finance, Policy & Services, Council Appointed Officers, and City/Schools Liaison):
Rail Committee (Brown Act)
Rail Safety/Youth Mental Health Ad Hoc
Cubberley Ad Hoc
Economic Development Ad Hoc (Brown Act)
Climate Action & Sustainability Ad Hoc (Brown Act)
Oversized Vehicles Impacts & Services Ad Hoc
Downtown Housing Plan and SB79 Ad Hoc
Valley Water Shoreline Funding Allocation Ad Hoc- the purpose of this ad hoc was fulfilled in 2025.
The City Council Handbook defines ad hoc committees as a temporary advisory committee limited to a single purpose and is not intended to be perpetual but rather to be dissolved in a finite period of time, once its specific task is completed. The Handbook also states that if an ad hoc does not complete its task by the end of the calendar year, it shall not continue unless reappointed by the new Mayor in the following year. A summary of the ad hoc purpose statements for the year is included in Attachment D.
Recommended workplans for the Standing Policy & Services and Finance Committees are included in Attachments E and F, respectively. As work proceeds over the year, it is likely that changes to committee workplans may be desired. Staff or Committees may recommend such changes for City Council approval at any point during the year.
FISCAL/RESOURCE IMPACT
City Council approval of Priority Objectives does not have an immediate fiscal impact; however, resources will need to be allocated to implement City Council Priorities. Opportunities to allocate resources to projects include the FY 2027 annual budget process, with adoption scheduled for June 2026. In addition, the City Council may amend the budget throughout the year.
STAKEHOLDER ENGAGEMENT
City Council, community and stakeholder engagement is a key area of focus that is woven into the workplans to implement the proposed City Council objectives contained in this report.
The City uses the International Association for Public Participation (IAP2) as a guide to structure community participation and align that participation with the type of input or feedback needed based on the project/issue. Workplan engagement typically fit within these general focus areas:
Inform: Fact sheets, webpages, blog posts, information sessions, open houses, frequently asked questions, community briefings, and website feedback forms Consult & Involve: Surveys, focus groups, questions and answer sessions, office hours, public meetings like community meetings, town halls, panel discussions, workshops, and polling Collaborate & Empower: Working groups, ad hoc groups, feedback groups, boards, commissions and committee meetings, community advisory panels, advisory groups, digital engagement platforms, and voter ballot measures.
ENVIRONMENTAL REVIEW
City Council action on this item is not a project as defined by CEQA because the City Council discussion on 2026 Priority and Objectives, Ad Hoc Purpose Statements, and Committee Workplans are a continuing administrative or maintenance activity. CEQA Guidelines section 15378 (b)(2).
ATTACHMENTS
Attachment A: City Council 2026 Priorities & Objectives- Group 1 Attachment B: City Council 2026 Priorities & Objectives- Group 2 Attachment C: Staff Not Recommended Objectives
Attachment D: 2026 Ad Hoc Committee Purpose Statements
Attachment E: Policy & Services Committee Workplan
Attachment F: Finance Committee Workplan
Attachment G: Draft Business Retention, Expansion, and Attraction (BRE/A) Strategy
APPROVED BY:
Ed Shikada, City Manager