All requests for payment of expenses shall be accompanied by appropriate backup information. Any expense shall be approved in advance by the CITY’s project manager.
ADDITIONAL SERVICES
The CONSULTANT shall provide additional services only by advanced, written authorization from the CITY. The CONSULTANT, at the CITY’s project manager’s request, shall submit a detailed written proposal including a description of the scope of services, sch edule, level of effort, and CONSULTANT’s proposed maximum compensation, including reimbursable expenses, for such services based on the rates set forth in Exhibit C-1. The additional services scope, schedule and maximum compensation shall be negotiated a nd agreed to in writing by the CITY’s Project Manager and CONSULTANT prior to commencement of the services. Payment for additional services is subject to all requirements and restrictions in this Agreement.
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EXHIBIT “C-1”
SCHEDULE OF RATES, AMENDMENT NO. 3
(AMENDED REPLACES PREVIOUS)
CONSULTANT shall be paid hourly for each officer and project manager that maintains a parking facility.
The tables below include the payment compensation schedule for the program including pre-defined pricing for implementation of the program. The compensation tables shall remain fixed for term of the contract.
Compensation Terms – Year 1
Labor Categories Est
Hours
Hourly
Rate
Extended
Rate
Project Manager – Direct Labor Rate 1,920 $49.67 $95,355 Overhead Rate (including Fridge, G&A and Fee) 1,920 $38.43 $73,791 Project Manager (fully burdened) 1,920 $88.10 $169,146
Parking Enforcement Officers – Direct Labor Rate 15,360 $19.00 $291,840 Overhead Rate (including Fringe, G&A and Fee) 15,360 $14.70 $225,844 Parking Enforcement Officer (fully burdened) 15,360 $33.70 $517,684 ODCs/Materials to include: bicycles/vehicles,
uniforms, fuel, cellphones, and other misc.
supplies
N/A $51,750
Burdens and Fee G&A N/A $10,092
ODCs and Materials (fully burdened) N/A $61,842
Project Manager (1), Parking Enforcement
Officers (7 FT PEOs + 1 FT Supervisor) and
ODCs/Materials (all fully burdened)
N/A $748,672
Compensation Terms – Year 2*
Labor Categories Est
Hours
Hourly
Rate
Extended
Rate
Project Manager – Direct Labor Rate 1,920 $51.15 $98,215 Overhead Rate (including Fridge, G&A and Fee) 1,920 $39.59 $76,005 Project Manager (fully burdened) 1,920 $90.74 $174,220
Parking Enforcement Officers – Direct Labor Rate 15,360 $19.57 $300,595 Overhead Rate (including Fringe, G&A and Fee) 15,360 $15.14 $232,619 Parking Enforcement Officer (fully burdened) 15,360 $34.71 $533,214 ODCs/Materials to include: bicycles/vehicles,
uniforms, fuel, cellphones, and other misc.
supplies
N/A $53,303
Burdens and Fee G&A N/A $10,395
ODCs and Materials (fully burdened) N/A $63,397
Project Manager (1), Parking Enforcement
Officers (7 FT PEOs + 1 FT Supervisor) and
ODCs/Materials (all fully burdened)
N/A $771,132
* 3% cost of living increase
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Compensation Terms – Year 3**
Labor Categories Est
Hours
Hourly
Rate
Extended
Rate
Project Manager – Direct Labor Rate 1,920 $52.18 $100,179 Overhead Rate (including Fridge, G&A and Fee) 1,920 $40.35 $77,477 Project Manager (fully burdened) 1,920 $92.53 $177,657
Parking Enforcement Officers – Direct Labor Rate 15,360 $20.60 $316,416 Overhead Rate (including Fringe, G&A and Fee) 15,360 $15.93 $244,711 Parking Enforcement Officer (fully burdened) 15,360 $36.53 $561,127 ODCs/Materials to include: bicycles/vehicles,
uniforms, fuel, cellphones, and other misc.
supplies
N/A $53,303
Burdens and Fee G&A N/A $10,395
ODCs and Materials (fully burdened) N/A $63,697
Project Manager (1), Parking Enforcement
Officers (7 FT PEOs + 1 FT Supervisor) and
ODCs/Materials (all fully burdened)
N/A $802,481
**3% cost of living increase
Compensation Terms – Year 4***
Labor Categories Est
Hours
Hourly
Rate
Extended
Rate
Project Manager – Direct Labor Rate 1,920 $54.79 $105,195 Overhead Rate (including Fridge, G&A and Fee) 1,920 $42.37 $81,346 Project Manager (fully burdened) 1,920 $97.16 $186,540
Parking Enforcement Officers – Direct Labor Rate 15,360 $21.63 $332,237 Overhead Rate (including Fringe, G&A and Fee) 15,360 $16.73 $256,919 Parking Enforcement Officer (fully burdened) 15,360 $38.36 $589,156 ODCs/Materials to include: bicycles/vehicles,
uniforms, fuel, cellphones, and other misc.
supplies
N/A
$55,968
Burdens and Fee G&A N/A $10,915
ODCs and Materials (fully burdened) N/A $66,883
Project Manager (1), Parking Enforcement
Officers (7 FT PEOs + 1 FT Supervisor) and
ODCs/Materials (all fully burdened)
N/A
$842,579
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Compensation Terms – Year 5
Labor Categories Est
Hours
Hourly
Rate
Extended
Rate
Project Manager – Direct Labor Rate 1,920 $57.53 $110,455 Overhead Rate (including Fridge, G&A and Fee) 1,920 $44.49 $85,413 Project Manager (fully burdened) 1,920 $102.01 $195,868 Parking Enforcement Officers – Direct Labor Rate 15,360 $22.71 $348,849 Overhead Rate (including Fringe, G&A and Fee) 15,360 $17.56 $269,765 Parking Enforcement Officer (fully burdened) 15,360 $40.27 $618,614 ODCs/Materials to include: bicycles/vehicles,
uniforms, fuel, cellphones, and other misc.
supplies
N/A
$58,767
Burdens and Fee G&A N/A $11,460
ODCs and Materials (fully burdened) N/A $70,227
Project Manager (1), Parking Enforcement
Officers (7 FT PEOs + 1 FT Supervisor) and
ODCs/Materials (all fully burdened)
N/A
$884,708
***5% cost of living increase (based on Bay Area CPI 12/22)
Year 5 shall not exceed $884,708.00 or the remaining balance of the maximum total compensation under this Agreement, whichever is lower.
Compensation Terms – Year 6 through Year 7
Labor Categories Rate
Project Manager – Direct Labor Rate $57.53/hr
Overhead Rate (including Fridge, G&A and Fee) $44.49/hr Project Manager (fully burdened) $102.01/hr
Parking Enforcement Officers – Direct Labor Rate $22.71/hr Overhead Rate (including Fringe, G&A and Fee) $17.56/hr Parking Enforcement Officer (fully burdened) $40.27/hr
ODCs/Materials to include: bicycles/vehicles,
uniforms, fuel, cellphones, and other misc.
supplies
$0.00
Burdens and Fee G&A $0.00
ODCs and Materials (fully burdened) $0.00
Project Manager (1), Parking Enforcement
Officers (7 FT PEOs + 1 FT Supervisor) and
ODCs/Materials (all fully burdened)
To be determined based
on actual use and hourly
rates above.
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: IT Department
Meeting Date: June 1, 2026
Report #:2511-5458
TITLE
Approval of Amendment No. 1 to 14 Professional Services Contracts for GIS On-Call Services:
C26193271A with Lynx Technologies Inc, C26193271B with Seven Tablets Inc, C26193271C with iSpatial Techno Solutions Inc, C26193271D with Geodesy, C26193271E with UDC, C26193271F with NV5 Geospatial Inc, C26193271G with SSP Innovations, C26193271H with Timmons Group, C26193271I with Infojini Inc, C26193271J with Sybyte Technologies Inc, C26193271K with 360S2G, C26193271L with Enterprise Maps, C26193271M with Farallon Geographics, C26193271N with Arini Geographics, to increase the Not-to-Exceed Compensation by $2,000,000 and Extend the Term for One Year; CEQA Status – Not a Project.
RECOMMENDATION
Staff recommends that the City Council authorize the City Manager or their designee to execute Amendment No. 1 to 14 GIS on-call professional services contracts with each of the vendors listed above, to increase the not-to-exceed compensation by $2,000,000 annually and extend the term for one year. This amendment results in a revised total contract Not-to-Exceed amount of $4,000,000.
EXECUTIVE SUMMARY
Staff recommends that the City Council authorize the City Manager or their designee to approve Year 2 for 14 existing on-call professional services contracts for GIS support, supplemental staffing, and programming services. The total spending across all 14 contracts combined will not exceed $2,000,000 per year. No vendor is guaranteed work; services will be used only as needed and issued through task orders with defined scope, schedule, and price.
These on-call contracts provide specialized GIS expertise to support the City’s ongoing transition to an enterprise ArcGIS platform and several multi-year initiatives, including utility network migrations (electric, water, gas, wastewater), electric grid modernization, public works asset management, and key integrations with systems such as SAP, Accela, Laserfiche, and outage management tools. This work enables more reliable operations, better data for Item 12
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decision-making, and improved public-facing and internal applications without adding permanent staff.
BACKGROUND
On June 17, 2025, the City Council approved 14 on-call GIS professional services contracts for a one-year term from July 1, 2025, through June 30, 2026, in a total amount not-to-exceed $2,000,000, with four optional one-year extensions1. Year 1 is nearing completion, and the City continues to require GIS on-call support. Staff is now requesting approval for Year 2, from July 1, 2026, through June 30, 2027, and an additional $2,000,000 for a new not-to-exceed amount of $4,000,000.
In total, $1.5 million has been authorized via task orders in year 1; the table below represents some of the major accomplishments from FY26 utilizing these on-call contracts.
Table 1. FY26 GIS On-Call Projects by Funding Source (see further details below table) Funding Source /
Department Amount Task Orders
Utilities
Department
$253,000 Electric Service Order System
Electric Utility – Utility Network Model (UNM)
Migration & Integration
Modernizing Legacy Utility Applications
Electric Grid Modernization Support
New Utility GIS Tools in Development
Information
Technology
Department (ITD)
$957,500 Citywide IT operations and technology improvements Upgrades and maintenance of City’s GIS platform
Automation of routine GIS workflows across
Utilities, Planning, Public Works, and other City
departments to improve efficiency and reduce
errors
Integration of GIS with enterprise systems such as
ERP, Permitting System, customer service, utility
management, and permitting tools
Planning $85,000 Replacement of a cloud-based civic technology platform
Public Works $180,00 ArcGIS Integrations
1 June 17, 2025 City Council Staff Report:
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Table 1. FY26 GIS On-Call Projects by Funding Source (see further details below table) Funding Source /
Department Amount Task Orders
Transition to an in-house ArcGIS-based tree
maintenance system
To support the City’s transition to a modern, enterprise-level GIS architecture centered on ArcGIS Enterprise, the Information Technology Department (ITD) issued a Request for Proposals (RFP) in early 20253. The intent was to establish a pool of qualified vendors capable of providing GIS on-call services from July 1, 2025, through June 30, 2030. Each on-call contract is based on hourly rates that vary by role and expertise, reflecting vendor specialization across the scope of work. The on-call structure allows departments to access GIS expertise as needed, without adding full-time staff positions, while maintaining flexibility as project priorities evolve.
ANALYSIS
These on-call contracts are recommended to continue in Year 2 because multiple complex, multi-year GIS initiatives are already underway or scheduled to begin in FY27. The contracts provide the staffing flexibility and specialized expertise needed to keep these projects on schedule and support technology and utility modernization goals.
Major GIS initiatives expected to be supported by these on-call contracts in FY 2027:
1. Electric Service Order System (ESOS – New Project)
oReplace manual workflows and multiple SharePoint sites with a centralized, GIS- integrated portal to manage electric service orders from planning through construction.
oESOS is expected to reduce delays, improve coordination, and automate currently fragmented processes.
2. Electric Utility – Utility Network Model (UNM) Migration & Integration oMigration from legacy CAD-based mapping to Esri’s Utility Network Model has begun.
oRemaining work includes multi-year integrations with ERP, Permitting System, the Outage Management System (OMS), and Automated Utility Design (AUD).
3.Future UNM Migrations – Water, Gas, and Wastewater: Similar migrations and integrations are planned for water, gas, and wastewater utilities, mirroring the electric utility roadmap.
4.Modernizing Legacy Utility Applications: Replace outdated, custom tools with modern ArcGIS-based systems across utilities to improve maintainability, integration, and functionality.
3 2025 RFP: https://procurement.opengov.com/portal/palo-alto-ca/projects/140924 Item 12
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5.Electric Grid Modernization Support: Provide GIS support for smart grid initiatives such as Advanced Metering Infrastructure (AMI), Distribution Management System (DMS), FLISR (Fault Location, Isolation, and Service Restoration), EV load forecasting, and related analytics.
6.New Utility GIS Tools in Development: Continue development of tools for water sampling, hydrant maintenance, backflow prevention, and main replacement tracking.
7.ArcGIS Integrations: Documentation Management System: Department-specific integrations began in FY 2026. Replacement of a cloud-based civic technology platform that manages zoning, construction and planning information, projected to save approximately $60,000 per year in license costs.
8.Public Works Asset Management: Transition from a commercial tree maintenance system to an in-house ArcGIS-based system, improving integration with SAP and Accela and reducing external licensing costs.
9.Rapid GIS Infrastructure Growth: The City’s ArcGIS platform has quadrupled in size in two years due to increased demand for internal and public-facing applications, requiring scalable support, performance tuning, and ongoing maintenance.
Under these on-call contracts, consultants may provide:
Upgrades and maintenance of the City’s GIS platform, data migration from legacy systems to modern GIS platforms
Development and enhancement of web maps, dashboards, and mobile apps for staff and public use
Support for asset and infrastructure management (e.g., electric lines, water pipes, street trees)
Automation of routine GIS workflows to improve efficiency and reduce errors Integration of GIS with enterprise systems such as ERP, Permitting System, customer service, utility management, and permitting tools
Maintenance of foundational spatial datasets (e.g., parcels, utilities, maintenance records)
Technical support to ensure systems are secure, highly available, and high-performing Real-time mapping and data solutions for operations such as outage tracking and field inspections
Utility GIS consultants to support Water, Gas, and Wastewater UNM migrations and system integration experts to connect UNM with SAP, Accela, OMS, AUD, and other systems
Electric utility consultants with smart grid and GIS alignment expertise GIS integration specialists for AMI, DMS, OMS, and FLISR Item 12
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Data scientists and machine learning engineers to develop forecasting and optimization tools (e.g., load prediction, EV planning)
Specialists to integrate CAD drawings into GIS for utilities and public works projects Services under these on-call contracts will be assigned via task orders. Before issuing a task order, staff will assess whether work can be performed internally or requires specialized consultant support. Task orders will include documentation and knowledge transfer requirements to ensure the City retains institutional knowledge.
Contractors will be selected based on availability, relevant expertise, and alignment with project requirements. Staff will evaluate each task order’s scope, contractor qualifications, and billing rates to ensure appropriateness and cost-effectiveness. Department directors or their designees will approve all task orders, including contractor selection and budget adherence.
City Manager or designee will approve any task order over $100,000. Project managers will oversee deliverables and budgets and will approve invoices only after confirming that billed hours match work performed and that deliverables meet City standards.
These on-call contracts use the City’s standard professional services template, which allows the City to: Terminate for convenience with written notice, terminate due to non-appropriation of funds, temporarily suspend work by written notice, and elect not to issue additional task orders.
FISCAL/RESOURCE IMPACT
Funding for these on-call contracts in FY 2027 ($450,000) is within proposed budgeted levels within the Information Technology Fund. The Not-to-exceed amount is higher than the budgeted amount to allow for other departments to be able to utilize these on-call contracts with their contract services or capital budgets.
Funding for subsequent years of the contract will be subject to approval through the annual budget development process. ITD is funded by an internal service fund. Approximately 49% of the department is General Fund funded with the remaining 51% funded by enterprise and special revenue funds.
STAKEHOLDER ENGAGEMENT
ITD collaborated with other departments to identify GIS needs, prioritize projects, and confirm that the proposed on-call contracts and Year 2 extension will support key operational, regulatory, and modernization objectives.
ENVIRONMENTAL REVIEW
The approval of this contract is exempt from review under the California Environmental Quality Act (CEQA) under CEQA Guidelines section 15061(c)(3) because it can be seen that there is no possibility that the activity in question may have a significant effect on the environment.
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ATTACHMENTS
Attachment A: Amendment No. 1 to 14 GIS On-Call Project Support Services Contracts:
Lynx Technologies Inc, Contact Number C26193271A5
Seven Tablets Inc, Contract Number C26193271B6
iSpatial Techno Solutions Inc, Contract Number C26193271C7 Geodesy, Contract Number C26193271D8
Utility Data Contractors, LLC, Contract Number C26193271E9 NV5 Geospatial Inc, Contract Number C26193271F10
SSP Innovations, Contract Number C2619327G11
Timmons Group, Contract Number C26193271H12
Infojini Inc, Contract Number C26193271I13
Sybyte Technologies Inc, Contract Number C26193271J14 360S2G, Contract Number C26193271K
Enterprise Maps, Contract Number C26193271L
Farallon Geographics Contract Number C26193271M
Arini Geographics, Contract Number C26193271N
APPROVED BY:
Darren Numoto, Chief Information Officer; Lisa Bolger, Assistant Director Information Technology/CTO
5 https://www.paloalto.gov/files/assets/public/v/1/it-department/cmr-attachments/gis-on- call/2026/c26193271a.pdf
6 https://www.paloalto.gov/files/assets/public/v/1/it-department/cmr-attachments/gis-on- call/2026/c26193271b.pdf
7 https://www.paloalto.gov/files/assets/public/v/1/it-department/cmr-attachments/gis-on- call/2026/c26193271c.pdf
8 https://www.paloalto.gov/files/assets/public/v/1/it-department/cmr-attachments/gis-on- call/2026/c26193271d.pdf
9 https://www.paloalto.gov/files/assets/public/v/1/it-department/cmr-attachments/gis-on- call/2026/c26193271e.pdf
10 https://www.paloalto.gov/files/assets/public/v/1/it-department/cmr-attachments/gis-on- call/2026/c26193271f.pdf
11 https://www.paloalto.gov/files/assets/public/v/1/it-department/cmr-attachments/gis-on- call/2026/c26193271g.pdf
12 https://www.paloalto.gov/files/assets/public/v/1/it-department/cmr-attachments/gis-on- call/2026/c26193271h.pdf
13 https://www.paloalto.gov/files/assets/public/v/1/it-department/cmr-attachments/gis-on- call/2026/c26193271i.pdf
14 https://www.paloalto.gov/files/assets/public/v/1/it-department/cmr-attachments/gis-on- call/2026/c26193271j.pdf
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Public Works
Meeting Date: June 1, 2026
Report #:2603-6129
TITLE
Approval of Contract Change Order No. 2 in the Amount of $1,000,000 to Contract No.
C23186274 with Monterey Mechanical Company for On-Call Emergency and Critical Construction Services at the Regional Water Quality Control Plant, for a Revised Not-To-Exceed Amount of $4,000,000, and Approval of Contract Amendment No. 1 to Contract No. S24190553 with Carollo Engineers Inc. for On-call Engineering Services at the Regional Water Quality Control Plant to Increase Compensation by $995,000 for a Revised Total Not-to-Exceed Amount of $1,250,000, and to Extend the Contract Term Through December 31, 2028; CEQA Status – Exempt Under CEQA Guidelines Section 15301
RECOMMENDATION
Staff recommends that the City Council:
1. Approve and authorize the City Manager or their designee to execute Change Order No. 2, adding $1,000,000 to Contract No. C23186274 with Monterey Mechanical Company for on-call emergency and critical construction services at the Regional Water Quality Control Plant, for a revised total not-to-exceed amount of $4,000,000 over a five year term; and
2. Approve and authorize the City Manager or their designee to execute Contract Amendment No. 1 to Contract No. S24190553 with Carollo Engineers Inc. for on-call engineering services at the Regional Water Quality Control Plant, increasing compensation by $995,000 for a revised total not-to-exceed amount of $1,250,000 and extending the contract term through December 31, 2028 for a total contract term of four and a half years.
EXECUTIVE SUMMARY
The Regional Water Quality Control Plant (RWQCP) is an essential wastewater treatment facility undergoing significant and complex rehabilitation to modernize aging infrastructure and ensure continued regulatory compliance and service reliability. RWQCP treats wastewater from six regional partner agencies, including the City of Palo Alto.
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The City relies on two on-call contracts to address urgent construction needs and critical engineering support. These on-call contracts enable the efficient execution of required work, avoiding the delay and processing of individual contracts and the need to familiarize new contractors with each project.
The City’s on-call construction contract with Monterey Mechanical Company (MMC), originally approved for $1.5 million in 2023 and increased by $1.5 million in 2025, has been heavily utilized to respond to equipment failures, infrastructure deterioration, and emergency repair needs. MMC has completed four work orders and is actively completing two more, with total expenditure and commitments of approximately $2.8 million to date. Similarly, the on-call engineering services contract with Carollo Engineers, approved in 2024 with a maximum of $85,000 per year and a total not-to-exceed of $255,000, has been used for essential structural and process design work. Carollo has completed or is performing three task orders totaling $143,000, with an additional task order under way and a forthcoming Phase 2 effort estimated at $400,000. Together, current and anticipated engineering needs total approximately $540,000, exceeding the existing contract limits. Additional contract authority is required to ensure continuity of critical construction and engineering support for RWQCP operations.
BACKGROUND
The RWQCP is a wastewater treatment facility serving Palo Alto, Mountain View, Los Altos, East Palo Alto Sanitary District, Stanford, and Los Altos Hills. Much of the plant’s infrastructure is aging and requires ongoing repairs and rehabilitation to maintain reliable operations and regulatory compliance.
On-Call Emergency and Critical Construction Services
Following a competitive bid, the City executed a $1.5 million on-call construction contract with Monterey Mechanical Company (MMC) in March 2023, with an additional $1.5 million approved in May 2025 due to significant emergency repair needs.1 MMC has completed four work orders and is currently performing two additional work orders addressing high-priority failures and deteriorated infrastructure.2,3 Total expenditures and commitments under this contract are approximately $2.8 million to date.
1 City Council, March 6, 2023; Agenda Item #5; SR #2212-0703 https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=2302&dbid=0&repo=PaloAlto&searchid=4614e017- 4da3-4c55-8250-863be8f1606c
2 City Council, May 5, 2025; Agenda Item #9; SR #2502-4128 https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=6085&dbid=0&repo=PaloAlto&searchid=5faafc3b- 72e0-4c8c-8f8c-ec4c514e442c
3 City Council, October 20, 2025; Agenda Item #5; SR #2508-5114 https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=83645&dbid=0&repo=PaloAlto Item 13
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On-Call Engineering Services
Following a Request for Proposal process conducted in June 2024, the City executed an on-call engineering services contract with Carollo Engineers with a maximum of $85,000 per year and a total not-to-exceed amount of $255,000 through 2027. Carollo has completed or is performing three task orders totaling $143,000, with an additional task order underway and a forthcoming Phase 2 design effort estimated at $400,000. Including anticipated work, total engineering needs are approximately $540,000, exceeding the current contract limits.
ANALYSIS
System failures at the RWQCP require immediate, specialized response due to the complexity and critical nature of the operations. Some failures require the use of heavy construction equipment and the resources of a licensed contractor. In these cases, licensed contractors are required to provide on-call emergency and critical construction services. As part of its ongoing maintenance strategy, the City has relied on on-call emergency contracts since 1997. Along with ongoing capital improvements to replace aging infrastructure, this type of contract has been a vital component of keeping the RWQCP in compliance with federal, state, and local regulations.
To prepare for another critical or emergency situation and because there are still approximately two years remaining on this current on-call construction contract, staff recommends that City Council approve $1,000,000 in additional funds to be available through the contract end date of March 15, 2028, for a new contract total of $4,000,000. A new contract for on-call construction services will be solicited in late 2027.
Additionally, to support a streamlined process for implementing specialized studies and in- house process improvement projects, the RWQCP has used on-call engineering services for over a decade. The RWQCP has five in-house engineers who support various capital improvement projects, planning efforts, and operations and maintenance, as needed. Typically, the RWQCP utilizes an engineering firm with technical expertise and capabilities to provide design services for these projects, while plant engineers serve as project managers. Additionally, the contract may support specialized HVAC repair and replacement design services necessary to maintain regulatory compliance and operational continuity within critical facilities such as the laboratory.
Since there is over a year remaining on this current on-call engineering services contract, staff recommends that City Council approve additional funds totaling $955,000 be available through the contract end date of June 30, 2027. The $995,000 is added to the existing contract of $255,000, for a new contract total of $1,250,000, and eliminating the yearly cap of $85,000 per contract year that restricts the amount of design work completed in a fiscal year. Furthermore, the contract is recommended to be extended for an additional year and a half through December 31, 2028, at the anticipated construction completion for Task Order 3. This will allow the RWQCP to leverage the existing on-call engineer’s knowledge to support project consistency and efficiency. A new, three-year contract for on-call engineering services will be solicited in early 2027.
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For context, the Sunnyvale Water Pollution Control Plant utilizes four on-call engineering services contracts totaling $1,900,000 over four years (2022 - 2026) with an option to extend an additional year.7 This equates to a yearly average of $475,000 over four years or $380,000 over five years, if the contract is extended. Sunnyvale’s on-call engineering services agreements are utilized in the same manner as the RWQCP; however, the higher contract amount enhances their ability to perform the design services needed. Increasing the on-call engineering contract value will align the RWQCP with nearby treatment plants and funding authorization, while improving the efficiency of related projects.
FISCAL/RESOURCE IMPACT
The recommendations in this staff report will approve a change order increasing the authorized contract amount with MMC and will also amend Carollo’s contract. Sufficient funding is available within the Wastewater Treatment Fund Adopted Fiscal Year 2026 Capital Budget Plant Repair, Retrofit, and Equipment Replacement capital project (WQ-19002).
This project utilizes a multi-year, multi-contract funding approach. Projected expenditures are incorporated into the RWQCP’s long-range financial forecast to determine the revenue requirements for partner agencies in future fiscal years. RWQCP treats combined wastewater from Palo Alto, Los Altos, Los Altos Hills, Mountain View, Stanford University, and East Palo Alto Sanitary District (collectively, the partners). Palo Alto’s share of this project is approximately 37%, and the other five agencies’ share is approximately 63%, based on the volume and strength of wastewater contributions of each partner.
The Fiscal Year 2026 budget for WQ-19002 approved by Council is $7.9 million. The contracts listed in Table 1 represent some major components of the project and are encumbered across multiple fiscal years, with the expenditures billed in accordance with partner agreements.
Table 1: Examples of Major Projects funded from WQ-19002 Project Description Total Cost Palo Alto Share Estimated Time 12 kV Electrical Distribution8 $12.3 million $4.6 million* FY2025 – FY2027 Long Range Facilities Plan9 $2.7 million $1.0 million FY2025 – FY2027 On-call Emergency and Critical
Construction
$3.0 million
($4.0 million)
$1.1 million
($1.48 million)
FY2024 – FY2028
7 Sunnyvale City Council, May 6, 2025; Agenda Item #1.E; File #25-0423 https://sunnyvaleca.legistar.com/LegislationDetail.aspx?ID=7361254&GUID=5023E7FC-C29C-4450-8CC2- 7F9BFB7750AC&Options=&Search=
8 City Council, October 28, 2024; Agenda Item #5; SR #2408-3389 https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=6505&dbid=0&repo=PaloAlto 9 City Council, June 10, 2024; Agenda Item #6; SR #2405-2993 https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=6487&dbid=0&repo=PaloAlto Item 13
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Table 1: Examples of Major Projects funded from WQ-19002 Project Description Total Cost Palo Alto Share Estimated Time On-call Engineering Services
$0.26 million
($1.25 million)
$0.09 million
($0.46 million)
FY2025 – FY2027
(2028)
*Palo Alto’s share of the project is being reimbursed by Valley Water by the Guiding Principle Five (GP5) grant.13 If additional funds are required, they will be subject to Council approval through the City’s standard appropriation process.
Recommendations included in this staff report are shown in parentheses for reference.
STAKEHOLDER ENGAGEMENT
This project is part of the RWQCP’s minor capital improvement program funded by the City of Palo Alto and its five partner agencies who use the RWQCP for wastewater treatment. The five partner agencies are regularly updated on both the need for and progress of wastewater treatment capital work. Updates are provided annually and at other periodic meetings to inform partner agency staff on the major capital improvement program. With respect to Palo Alto, public meetings associated with the City’s budget process serve as the primary venue for engaging the community on new projects and associated rate impacts.
ENVIRONMENTAL REVIEW
Council action on this is exempt from review under the California Environmental Quality Act pursuant to CEQA Guidelines Section 15301 (b), which includes maintenance of existing publicly owned wastewater facilities involving negligible or no expansion in use.
ATTACHMENTS
Attachment A: Contract C23186274, Change Order No. 2 with Monterey Mechanical Company Attachment B: Contract S24190553, Amendment No. 1 with Carollo Engineers Inc.
APPROVED BY:
Brad Eggleston, Director Public Works/City Engineer
13 City Council. June 3, 2024; Agenda Item #6; SR #2404- 2877 https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=6462&dbid=0&repo=PaloAlto Item 13
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Contract Change Order
City of Palo Alto
Department: Public Works WQCP
Contract Number: C23186274
CONTRACT CHANGE ORDER PAGE 1 OF 3
Contract Change Order #02
Project Title: On-Call Emergency Construction ServicesProject No.: WQ - 19002 Contract Number:C23186274 Date: 3/11/2026
Contractor: Monterey Mechanical Company Change Order: 02 Description of Change Order
Background Information: The 5-year contract runs from March 21, 2023 to March 15, 2028 for $1,500,000 ($300,000 / year) to cover the cost of immediate mobilization and construction costs by the on-call contractor for handling emergency and urgent construction services at the Palo Alto Regional Water Quality Control Plant. Change Order No. 1 was signed on July 15, 2025 for $1,500,000 being added to the original contract amount, bringing the revised contract amount to $3,000,000.
Change Order Justification: The three completed work orders (2301, 2303, 2307) and the three ongoing work orders (2302, 2304, 2305) amount to approximately $2.8 million to date for emergency and urgent construction services. This leaves approximately $200,000 for the remainder of the contract.
Another $1,000,000 is requested to replenish the contract with funds to cover future unforeseen urgent and emergency work over the next two years. This C/O will be subject to approval by the Palo Alto City Council.
Description of Work to be Performed:Unexpected breakdowns or failures of equipment, piping, electrical, concrete, etc., requiring use of the funds in this contract for urgent, critical repair work.
Incorporates Field Order Number(s):N / A
Cost Time
This change order will:
No cost change: N/A
Increase cost by $ 1,000,000
Decrease cost by $ N/A
G/L account number (s):31651
This change order will:
No change in time
Increase time by days
Decrease time by days
The date of completion as of this change order
remains as:
March 15, 2028
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CONTRACT CHANGE ORDER PAGE 2 OF 3
Basis for change in cost:
Unit price(s)
Lump sum
Cost plus
Other:
Contract Change Order – continued
CONTRACTOR CERTIFICATION: The undersigned Contractor approves this Change Order as to the changes, if any, in the contract price specified for each Line Item and as to the extension of time allowed, if any, for completion of the entire work on account of each Line Item, and agrees to furnish all labor and materials and perform all work necessary to complete any additional work specified therein, for the consideration stated therein. It is understood that the time and cost adjustments set forth in this Change Order include full compensation for any impacts or delays associated with the Line Items addressed in this Change Order.
CLAIM PROCEDURE: Any items in Contractor’s Change Order Request that are not included in this Change Order are hereby deemed rejected as of the date of this letter. If Contractor wishes to dispute this rejection, it may submit a Claim pursuant to Section 4.2 of the Contract General Conditions within thirty (30) days of the date of this Change Order.
Accepted for Contractor: Accepted for City of Palo Alto:
By: By:
Title: Monterey Mechanical Co. Project ManagerTitle: Public Works Department - Project Manager Date: Date:
PCO No.
ASI
EWA
COR
CO Description Amount Reason for Change
-02 Unexpected emergency repairs $1,000,000Replenishment of contract funds for unforeseen work.
Total for this change
order $1,000,000
Scope of Work
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Contract Change Order
City of Palo Alto
Department: Public Works WQCP
Contract Number: C23186274
CONTRACT CHANGE ORDER PAGE 3 OF 3
Document Preparation City Approval – WQCP Head
By: By:
Title: Tom Kapushinski
Sr. Project Engineer Title: Aaron Gilbert
Plant Manager, Water Quality Control Plant
Date: Date:
City Approval – Division Head
Signature required on all change orders
By:
Title: Karin North
Asistant Director, Public Works, ESD
Date:
City Approval – Department Head
Signature required when any individual Change Order exceeds $10,000.
By:
Title: Brad Eggleston
Director of Public Works
Date:
Contract Change Order – continued
Summary of Amounts Payable Under Contract (For Internal Purposes Only) Original Contract Amount:$ 1,500,000.00
Previous Change Orders$ 1,500,000.00
This Change Order $ 1,000,000.00
Revised Contract Amount:$ 4,000,000.00
Compare to:
Original Contract
Authorization: $ 1,500,000.00 Contingency:0.00
Contract Amendment
Authorizations $ 1,500,000.00 Contingency added:0.00
Contingency
Authorizations: $ 0.00 Used to date0.00
Total Authorized Funding:$ 4,000,000.00 Balance remaining0.00 Change orders shall not be initiated for Council-approved contracts if the revised contract total exceeds the total authorized funding amount.
Commented [RG1]: Pending Council approval.
Commented [RG2]: Pending Council approval.
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Contract Change Order
City of Palo Alto
Department: Public Works WQCP
Contract Number: C23186274
CONTRACT CHANGE ORDER PAGE 3 OF 3
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AMENDMENT NO. 1 TO CONTRACT NO. S24190553
BETWEEN THE CITY OF PALO ALTO AND
CAROLLO ENGINEERS, INC.
This Amendment No. 1 (this “Amendment”) to Contract No. C24190553 (the “Contract” as defined below) is entered into as of June 1, 2026, by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and Carollo Engineers, Inc ., a corporation, located at 2795 Mitchell Drive, Walnut Creek, CA 94598 (“CONSUNTANT”). CITY and CONSULTANT are referred to collectively as the “Parties” in this Amendment.
R E C I T A L S
A. The Contract (as defined below) was entered into by and between the Parties hereto for the provision to supplement engineering services for the Regional Water Quality Control Plant (the “Project”) and to provide engineering consulting services on an as-needed basis in connection with the Project (the “Services”), as detailed therein.
B. An ongoing task order as part of the Contract is focused on the structural, mechanical, and electrical rehabilitation of the existing four gravity thickeners. The estimated construction completion is at the end of 2028. Additional time for contract performance is required to leverage the existing engineering consulting knowledge to promote project consistency and efficiency. The project is being designed and will be eventually constructed such that phasing is incorporated to facilitate plant operation during construction
C. The Parties now wish to amend the Contract in order to extend the time for performance by 78 weeks (from 156 weeks to 234 weeks) and increase the maximum compensation by Nine Hundred Ninety-Five Thousand ($995,000) from Two Hundred Fifty -Five Thousand Dollars ($255,00) to One Million Two Hundred Fifty Thousand Dollars ($1,250,000).
NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of this Amendment, the Parties agree:
SECTION 1. Definitions. The following definitions shall apply to this Amendment:
a. Contract. The term “Contract” shall mean Contract No. C24190553 between CONSULTANT and CITY, dated June 13, 2024, as amended by:
This Amendment No.1, dated June 1, 2026
b. Other Terms. Capitalized terms used and not defined in this Amendment shall have the meanings assigned to such terms in the Contract.
SECTION 2. Section 2 “TERM” of the Contract is hereby amended to read as follows:
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“The term of this Agreement shall be from the date of its full execution through December 31, 2028.”
SECTION 3. Section 4 “NOT TO EXCEED COMPENSATION” of the Contract is hereby amended to read as follows:
“The compensation to be paid to CONSULTANT for performance of the Services shall be based on the compensation structure detailed in Exhibit C, entitled “COMPENSATION,” including any reimbursable expenses specified therein, with a total Not to Exceed Compensation of One Million Two Hundred Fifty Thousand Dollars ($1, 250,000). The hourly schedule of rates, if applicable, is set out in Exhibit C -1, entitled “SCHEDULE OF RATES.” Any work performed or expenses incurred for which payment would result in a total exceeding the maximum compensation set forth in this Section 4 shall be at no cost to the CITY.”
SECTION 4. The following exhibit(s) to the Contract is/are hereby amended or added, as indicated below, to read as set forth in the attachment(s) to this Amendment, which is/are hereby incorporated in full into this Amendment and into the Contract by this reference:
a. Exhibit “B” entitled “SCHEDULE OF PERFORMANCE”, AMENDED, REPLACES PREVIOUS.
b. Exhibit “C-1” entitled “SCHEDULE OF RATES”, ADDED / AMENDED, REPLACES PREVIOUS.
SECTION 5. Legal Effect. Except as modified by this Amendment, all other provisions of the Contract, including any exhibits thereto, shall remain in full force and effect.
SECTION 6 . Incorporation of Recitals . The recitals set forth above are terms of this Amendment and are fully incorporated herein by this reference.
(SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.)
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SIGNATURES OF THE PARTIES
IN WITNESS WHEREOF, the Parties have by their duly authorized representatives executed this Amendment effective as of the date first above written.
CITY OF PALO ALTO
City Manager
APPROVED AS TO FORM:
City Attorney or designee
COROLLO ENGINEERS, INC.
Officer 1
By:
Name:
Title:
Officer 2 (Required for Corp. or LLC)
By:
Name:
Title:
Attachments:
Exhibit “B” entitled “SCHEDULE OF PERFORMANCE”, AMENDED, REPLACES PREVIOUS Exhibit “C-1” entitled “SCHEDULE OF RATES”, AMENDED, REPLACES PREVIOUS
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Senior Vice President
Katy Solem
Client Services Director
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EXHIBIT B
SCHEDULE OF PERFORMANCE
AMENDMENT NO. 1
(AMENDED-REPLACED PREVIOUS)
CONSULTANT shall perform the Services so as to complete each milestone within the number of days/weeks specified below. The time to complete each milestone may be increased or decreased by mutual written agreement of the Project Managers for CONSULTANT and CITY so long as all work is completed within the term of the Agreement. CONSULTANT shall provide a detailed schedule of work consistent with the schedule below within 2 weeks of receipt of the notice to proceed (“NTP”) from the CITY.
Milestones
Completion
Number of Weeks (as specified below)
from NTP
1. Year One Services 52
2. Year Two Services 104
3. Year Three Services 156
4. Year Four Services 208
5. Year Five Services 234
Optional Schedule of Performance Provision for On-Call or Additional Services Agreements. (This provision only applies if checked and only applies to on-call agreements per Section 1 or agreements with Additional Services per Section 4.)
The schedule of performance shall be as provided in the approved Task Order, as detailed in Section 1 (Scope of Services) in the case of on-call Services, or as detailed in Section 4 in the case of Additional Services, provided in all cases that the schedule of performance shall fall within the term as provided in Section 2 (Term) of this Agreement.
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EXHIBIT “C-1”
SCHEDULE OF RATES
AMENDMENT NO. 1
(AMENDED-REPLACED PREVIOUS)
CONSULTANT’s schedule of rates is as follows:
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Utilities
Meeting Date: June 1, 2026
Report #:2501-4065
TITLE
Adoption of a Resolution Amending Utilities Rules and Regulations Numbers 02 (Definitions and Abbreviations), 03 (Description of Utility Services), 04 (Application for Service), 05 (Service Contracts), 09 (Disconnection, Termination and Restoration of Service), 10 (Meter Reading), 11 (Billing, Adjustments and Payment of Bills), 18 (Utility Service and Facilities on Customer Premises, 20 (Special Electric Utility Regulations), 21 (Special Water Utility Regulations), 22 (Special Gas Utility Regulations), 23 (Special Wastewater Utility Regulations), and Utility Rate Schedule C-4 (Residential Rate Assistance Program), and Repealing Rule 15 (Metering Equipment); CEQA Status – Not a Project
RECOMMENDATION
Staff recommends that Council adopt the attached Resolution (Attachment A) amending Utilities Rules and Regulations 02, 03, 04, 05, 09, 10, 11, 15, 18, 20, 21, 22, 23, and Utility Rate Schedule C-4, and Repealing Rule 15 (Metering Equipment); as attached.
EXECUTIVE SUMMARY
Utilities Rules and Regulations (Rules) are updated as needed to ensure current procedures are in place to continue City of Palo Alto Utilities (CPAU) operations. The recommended changes to the various Rules and Regulations add new provisions, remove outdated sections, update language for clarity, and reflect changes to applicable regulations, business practices and procedures. The proposed expansion of the City’s Rate Assistance Program of increasing the number of eligible participants and changing the residential discount rate from 25% to 35% for electric services (under Utility Rate Schedule C-4 - Residential Rate Assistance Program) was vetted and approved by the Utilities Advisory Committee and Finance Committee as part of the FY 2027 budget meetings. The new gas fees (under Rule and Regulation 22 – Special Gas Utility Regulations) for unauthorized and unscheduled gas disconnection which requires staff time was approved by Finance Committee during the Municipal Fee section of the budget hearing.
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In addition, the staff has updated the Rules to align with the State of California’s new laws on Accessory Dwelling Units (ADU) and the State Water Resources Control Board Cross-Connection Handbook on customer responsibilities, testing requirements, and enforcement actions to safeguard the public drinking water system.
BACKGROUND
Utilities update the Rules and Regulations on a periodic basis to reflect current operational procedures and provide language clarification. The Rules and Regulations were last updated in April 2023. The proposed changes do not impact long range planning, policies, or programs. The changes mainly reflect daily operational changes and procedures that are currently in place.
ANALYSIS
Twenty-nine Utilities Rules and Regulations (Rules) set forth the conditions under which the City provides utility services from both the Utilities Department (electric, natural gas, water, wastewater, fiber optic) and the Public Works Department (refuse, storm drain). The Rules are updated on as-needed basis to reflect current standards and business practices, to streamline language to make the rules more user-friendly and provide for ease of administration. Each of the Rules below includes changes reflecting this approach; key edits are described below and redlined copies showing each individual edit are available online, with links provided on the last page of this report.
Utilities Rules and Regulations (02, 03, 04, 05, 09, 10, 11, 15, 18, 20, 21, 22, and 23) Senate Bill (SB) 1211, Assembly Bill (AB) 2533, and Senate Bill 1077 The recommended amendments to Rules 05, 10, 20, 21, 22, and 23 are to provide clarification on when additional electric, gas, water, wastewater, and stormwater services are required for accessory dwellings units and junior accessory dwelling units. California‘s Housing and Community Development added Senate Bill (SB) 1211, Assembly Bill (AB) 2533, and SB 1077 passed on January 1, 2025. These bills contain new requirements that apply to all local ADU ordinances. The proposed changes require separate electric, gas, water, wastewater, and stormwater services to be constructed once the ADU is sold or separated from the primary residence.
Utilities Rule and Regulation 02 (Definitions and Abbreviations) Rule and Regulation 02 describe commonly used industry acronyms and the definitions of various terms used throughout Rules. Terms not previously defined are now included, and definitions for accessory dwelling unit, cross connections, fiber-to-the-premises, and rate assistance programs have been added.
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Utilities Rule and Regulation 03 (Description of Utility Services) Revisions to the Electric section improve clarity and ensure consistency with current operational practices. The recommended amendments require transformers above 75 kVA to be pad-mounted, removes references to reflect the discontinuation of the City‘s 4kV distribution system and aligns the primary service thresholds, updating the lowest three phase service to 480V. In the Water section, outdated narrative about water quality reporting was removed and replaced with a reference directing customers to the Annual Water Quality Report. Terminology within the Cross-Connection Control and Backflow Prevention requirements was standardized, and the Rule clarifies that customers are responsible for installing, testing, and maintaining required assemblies in accordance with state regulations.
The update also aligns with the State Water Resources Control Board's Cross-Connection Control Policy Handbook.
Utilities Rule and Regulation 04 (Application for Service) The revisions to Rule 04 clarify the scope of services covered by the application process and provide more detailed requirements for both residential and commercial applicants. The updated Rule explicitly distinguishes between metered and unmetered Utility Services and adds new language acknowledging services such as Dark Fiber licensing and Fiber Broadband Internet subscriptions. Several application information requirements have been expanded, including clearer identification of customer contact information, account security identifiers, and responsible parties authorized to manage an account. For residential customers, the Rule more clearly outlines how spouses, domestic partners, or designated responsible parties may be added to an account, as well as the steps required in cases of incapacity or death. For commercial customers, the revisions expand the list of required business information and reinforce compliance with backflow protection standards by incorporating the Hazard Survey into the Water Service application process. The rule also refines provisions related to Submetering and Master-Metering by reaffirming the prohibition on utility resale while allowing cost allocation under specified conditions.
Utilities Rule and Regulation 05 (Service Contracts)
The edits to Rule 05 clarify that CPAU may require written contracts for customer-requested installations, relocations, upgrades, or modifications involving CPAU-owned or maintained infrastructure, expanding the language for consistency and broader applicability. The list of services that may require contracts is updated, described as illustrative and non-exclusive, and expanded to include long-term service agreements, loans or leases for efficiency or reliability improvements, distributed generation and Energy Storage Facility projects, dark fiber services, reservation of electric capacity, installation of additional service or lateral connections, and fiber internet services.
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Utilities Rule and Regulation 09 (Disconnection, Termination and Restoration of Service) The proposed changes clarify that customers must provide written notice at least three days before the requested termination date and confirm that CPAU will prorate final bills. Language describing internal tracking processes was removed, and wording was adjusted to ensure consistency—such as specifying that a forwarding address requirement belongs only in the subsection addressing service cancellation rather than service transfer.
For CPAU-initiated termination or disconnection, revisions focus on accurately distinguishing procedures that apply to non-payment from those that apply to other violations. The document clarifies that 10-day and 48-hour notices are specific to non-payment cases and removes extraneous or duplicative clauses. Additional edits refine the list of violations that may lead to termination or disconnection and strengthen language describing unsafe conditions, improper equipment, and customer impacts on the electric distribution system. Several operational clarifications were added, including processing timelines for mailed or third-party payments and emphasizing the need for customers facing imminent disconnection to use methods that post payments immediately.
The section on remote disconnect/reconnect was updated to improve readability and to reflect CPAU’s deployment of AMI-enabled meters. Criteria for selecting locations for these meters were clarified, as well as the customer’s responsibility to ensure equipment safety upon reconnection. The restoration-of-service section preserves the distinction between disconnection for non-payment and termination for other causes, and it outlines the conditions under which service will be restored once financial, physical, or safety issues have been resolved.
Utilities Rule and Regulation 10 (Meters and Meter Reading) Rule 15 (Metering Equipment) has been consolidated with Rule 10 (Meters) and staff proposes repealing Rule 15. Consolidating the rules together into Rule 10 reduces potential conflicts between the two rules and presents related information in a more concise format. Proposed changes include updated language for master metering requirements and the “Customer Reads Own Meter” program. The update provides requirements for Customers who may elect to opt out of the Advanced Metering Infrastructure (AMI) program for electric and gas meters, including self-reporting of monthly meter readings to CPAU Customer Service. Water meters are not eligible for opt-out because water meters are generally located in the public-right-of- way.
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Utilities Rule and Regulation 11 (Billing, Adjustments and Payments of Bills) The proposed edits streamline language, standardize terminology, and clarify billing and payment procedures. Mandatory wording was unified, defined terms were consistently capitalized, and descriptions of payment methods were updated for accuracy, including hours, payment types, and rules for third-party payments and credit card limits. Several sections were reorganized for clarity, including delinquency rules, dispute processes, and the Budget Billing Payment Program. Customers served with AMI water meters are not eligible for water leak adjustments because such Customers can receive email notifications based on City-set thresholds to alert them of unusually high water flows and/or potential leaks. The edits removed the maximum credit card payment of $5,000 per account and cost recovery fee for credit card payments over $5,000, since the City will be implementing a new credit card service fee for cost recovery. Billing adjustments for water leaks remain capped at $2,500. Maximum billing for undercharges will no longer be subject to the $500 dollar per Account, per incident, for cost recovery. The retroactive billing adjustment (back bill or refund) shall not exceed three years. If requested, CPAU will offer payment arrangement or budget billing for retroactive back bill adjustments.
Utilities Rule and Regulation 15 (Metering Equipment) Repeal Rule 15 (Metering) is proposed to be repealed, with relevant sections consolidated in Rule 10 (Meters).
Utilities Rule and Regulation 18 (Utility Service and Facilities on Customer Premises) Service connection requirements language covering property access has been updated for consistency with the other Rules.
Utilities Rule and Regulation 20 (Special Electric Utility Regulations) The recommended edits consolidate requirements for new developments, existing services, and relocations, clarifying that Customer/Applicant and CPAU responsibilities are the same across these scenarios. Requirements for service configurations are updated to specify that single-family residential services in wildfire-risk areas must be underground whenever CPAU determines elevated threat levels. Rules governing number of services reinforce the “one Point-of-Service per lot” standard, while retaining CPAU discretion to allow additional service points and clarifying cost responsibility. Edits across protective device and equipment sections reaffirm Customer/Applicant responsibility for installation, maintenance, and compliance with CPAU standards, including protective coordination, short-circuit rating alignment, and safe operation of generation equipment. CPAU retains discretion to require agreements and conditions under which CPAU will install and maintain such facilities.
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Utilities Rule and Regulation 21 (Special Water Utility Regulations) Proposed edits in Rule 21 further clarify and strengthen the City’s requirements for maintaining reliable backflow protection across the water system. The revisions reinforce that Customers are responsible for installing, testing, and maintaining approved backflow prevention assemblies in accordance with State Water Resources Control Board requirements and the City’s Cross Connection Control Program, which is administered under the California Health and Safety Code. The Program documents and tracks all Customer-owned devices to ensure they meet annual inspection and testing standards that safeguard the potable water supply from cross-contamination. If a Customer fails to submit the required annual test report within 90 days, the City may arrange for inspection and testing at the Customer’s expense, and may curtail or terminate water service if compliance is not achieved. A new section was added for development that impact the City’s water infrastructure. Developers may be required to provide a fire flow test to quantify fire flow and domestic water demands as part of a capacity study. All costs associated with the capacity study and Applicant’s share of necessary water system improvements are the full responsibility of the Applicant.
Utilities Rule and Regulation 22 (Special Gas Utility Regulations) The revisions to Rule 22 add a new section barring unauthorized construction activity near service lines, adding a defined 10-foot buffer and clearer consequences for proceeding without CPAU permission, including potential service disconnection and responsibility for related fees.
The proposed fee will be included in the Municipal Fee Schedule as discussed during the FY 2027 Proposed Budget meetings with the Finance Committee. A new section was added for development that impacts the City’s gas infrastructure. Developers may be required to provide a capacity report to quantify the project’s demands as part of a capacity study. All costs associated with the capacity study and Applicant’s share of necessary gas system improvements are the full responsibility of the Applicant.
Utilities Rule and Regulation 23 (Special Wastewater Utility Regulations) In addition to adding new ADU language, a new section was added to address development that impact the City’s wastewater infrastructure. Developers may be required to provide a sewer capacity and flow monitoring report to quantify the project’s demands. All costs associated with the capacity study and Applicant’s share of necessary wastewater system improvements are the full responsibility of the Applicant.
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Utility Rate Schedule C-4 (Residential Rate Assistance Program) Staff is recommending changes to the Rate Assistance Program (RAP) to improve the affordability of Utilities service to low-income households and increase consistency with other California public and private electric utilities. Both the Finance Committee and Utilities Advisory Committee were supportive of the RAP changes.
Changes include a) increasing the residential electric rate discount from 25% to 35%; and b) increasing the qualifying income level from 50% (Very Low Income) to 80% (Low Income) of the Santa Clara County Area Median Income (AMI); and c) including the Homekey facility. There were 850 program participants at the end of 2025. The proposed changes are estimated to increase the number of program participants by 25%.
The residential natural gas rate discount will remain at 25%. The 25% residential water discount and 20% Storm Drain discount were discontinued due to passings of California’s Proposition 218 and Stormwater ballot measure.
FISCAL/RESOURCE IMPACT
Approval of changes to Utilities Rules and Regulation 2, 3, 4, 5, 9, 10, 11, 15, 18, 20, 21, 22, and 23, will not result in a significant change in net operating revenues or expenses. Changes to Utility Rate Schedule C-4 of increasing the electric rate discount rate from 25% to 35% and expanding the number of eligible participants for the rate assistance program will cost approximately $300,000 and $80,000 from the electric and gas public benefit funds respectively.
STAKEHOLDER ENGAGEMENT
On May 6, 20261, staff presented the FY 2027 Utilities Budget to the Utilities Advisory Committee (UAC), recommending two changes in the City’s residential rate assistance program. The changes include a) increasing the residential electric rate discount from 25% to 35%; and b) increasing the qualifying income level from 50% (Very Low Income) to 80% (Low Income) of the Santa Clara County Area Median Income (AMI). On March 25, 2026, staff presented the changes of the rate assistance program to the UAC Budget Subcommittee. Given rising affordability concerns, both the UAC and subcommittee were supportive of the proposed changes to the rate assistance program.
1 Utilities Advisory Committee Meeting on May 6, 2026:
https://cityofpaloalto.primegov.com/viewer/preview?id=0&type=8&uid=7833047e-6411-4548-8b9e- c22862b8bd11
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On May 5, 2026 3, staff presented the FY 2027 Utilities Budget to the UAC, recommending two changes in the City’s residential rate assistance program. The changes include a) increasing the residential electric rate discount from 25% to 35%; and b) increasing the qualifying income level by approximately 50% for entire rate assistance program. Finance Committee expressed support for the proposed expansion of utility assistance programs for lower-income residents and emphasized the importance of communicating those benefits to the public. Additional comments noted that the revised income thresholds would also apply to S/CAP-related assistance programs.
On May, 20264, staff introduced the new gas disconnection fees for non-scheduled gas service or disconnection call during after-hours and weekends. These fees reflect the Utility’s cost to disconnect gas service prior to construction to discourage unsafe or hazardous construction activities within 10 feet of a live gas service or meter. The responsible party will be responsible for the disconnection and/or removal fees and penalties. Finance Committee tentatively approved of the proposed FY 2027 municipal fees including the new gas fees.
ENVIRONMENTAL REVIEW
The adoption of the resolution amending Utility Rules and Regulations does not meet the definition of a “project” under Public Resources Code 21065 or CEQA Guidelines Section 15378(b)(2), thus no CEQA review of this action is required.
ATTACHMENTS
Attachment A: Resolution
Attachment B: Table of URLs
APPROVED BY:
Alan Kurotori, Director of Utilities
3 Finance Committee Meeting on May 5, 2026:
https://cityofpaloalto.primegov.com/viewer/preview?id=0&type=8&uid=1c90c2b7-8128-4dab-8581- e7d87c08a1c7
4 Finance Committee Meeting on May 6, 2026:
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ATTACHMENT A
RESOLUTION NO. _____________________
RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING AMENDMENTS TO UTILITIES RULE AND REGULATION 2 (DEFINITIONS AND ABBREVIATIONS), UTILITIES RULE AND REGULATION 3 (DESCRIPTION OF UTILITY SERVICES), UTILITIES RULE AND REGULATION 4 (APPLICATION FOR SERVICE), UTILITIES RULE AND REGULATION 5 (SERVICE
CONTRACTS), UTILITIES RULE AND REGULATION 9 (DISCONNECTION,
TERMINATION AND RESTORATION OF SERVICE), UTILITIES RULE AND REGULATION 10 (METER READING), UTILITIES RULE AND REGULATION 11 (BILLING, ADJUSTMENTS AND PAYMENT OF BILLS), UTILITIES RULE AND REGULATION 18 (UTILITY SERVICE AND FACILITIES ON CUSTOMER PREMISES), UTILITIES RULE AND REGULATION 20 (SPECIAL ELECTRIC UTILITY REGULATIONS), UTILITIES RULE AND REGULATION 21 (SPECIAL WATER UTILITY REGULATIONS), UTILITIES RULE AND REGULATION 22 (SPECIAL GAS UTILITY REGULATIONS), UTILITIES RULE AND REGULATION 23 (SPECIAL WASTEWATER UTILITY REGULATIONS), AND APPROVING AMENDMENTS TO UTILITY RATE SCHEDULE C-4 (RESIDENTIAL RATE
ASSISTANCE PROGRAM), AND REPEALING UTILITIES RULE AND
REGULATION 15 (METERING)
The Council of the City of Palo Alto does hereby RESOLVE as follows:
Section 1. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rule and Regulation 02 (Definitions and Abbreviations) is hereby amended as attached and incorporated. Utility Rule and Regulation 02, as amended, shall become effective June 1, 2026.
Section 2. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rule and Regulation 03 (Description of Utility Services) is hereby amended as attached and incorporated. Utility Rule and Regulation 03, as amended, shall become effective June 1, 2026.
Section 3. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utilities Rule and Regulation 04 (Application for Service) is hereby amended as attached and incorporated. Utility Rule and Regulation 04, as amended, shall become effective June 1, 2026.
Section 4. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utilities Rule and Regulation 05 (Service Contracts) is hereby amended as attached and incorporated. Utility Rule and Regulation 05, as amended, shall become effective June 1, 2026.
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ATTACHMENT A
Section 5. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utilities Rule and Regulation 09 (Disconnection, Termination and Restoration of Service) is hereby amended as attached and incorporated. Utility Rule and Regulation 09, as amended, shall become effective June 1, 2026.
Section 6. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utilities Rule and Regulation 10 (Meter Reading) is hereby amended as attached and incorporated. Utility Rule and Regulation 10, as amended, shall become effective June 1, 2026.
Section 7. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utilities Rule and Regulation 11 (Billing, Adjustments and Payment of Bills) is hereby amended as attached and incorporated. Utility Rule and Regulation 11, as amended, shall become effective July 1, 2026.
Section 8. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utilities Rule and Regulation 18 (Utility Service and Facilities on Customers Premises) is hereby amended as attached and incorporated. Utility Rule and Regulation 18, as amended, shall become effective June 1, 2026.
Section 9. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utilities Rule and Regulation 20 (Special Electric Utility Regulations) is hereby amended as attached and incorporated. Utility Rule and Regulation 20, as amended, shall become effective June 1,2026.
Section 10. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utilities Rule and Regulation 21 (Special Water Utility Regulations) is hereby amended as attached and incorporated. Utility Rule and Regulation 21, as amended, shall become effective June 1, 2026.
Section 11. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utilities Rule and Regulation 22 (Special Gas Utility Regulations) is hereby amended as attached and incorporated. Utility Rule and Regulation 22, as amended, shall become effective June 1, 2026.
Section 12. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utilities Rule and Regulation 23 (Special Wastewater Utility Regulations) is hereby amended as attached and incorporated. Utility Rule and Regulation 23, as amended, shall become effective June 1, 2026.
Section 13. Pursuant to section 12.20.010 of the Palo Alto Municipal Code, Schedule C-4 (Residential Rate Assistance Program) of the Palo Alto Utilities Rates and Charges is hereby amended to read as attached and incorporated. The foregoing Utility Rate Schedule, as amended, shall become effective July 1, 2026.
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ATTACHMENT A
Section 14. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utilities Rule and Regulation 15 (Metering Equipment) is hereby repealed as attached and incorporated. Utility Rule and Regulation 15, as repealed, shall become effective June 1, 2026.
Section 15. The Council finds that the fees and charges adopted by this resolution are charges imposed for a specific government service or product provided directly to the payor that are not provided to those not charged, and do not exceed the reasonable costs to the City of providing the service or product.
Section 16. Council finds that the adoption of this resolution is statutorily exempt from the California Environmental Quality Act (CEQA), pursuant to California Code of Regulations Title 14, Chapter 3, Section 15273(a), because the fees and charges proposed are necessary to recover the cost of providing utility service and meet operating expenses.
After reviewing the reports presented, the Council incorporates these documents herein and finds that sufficient evidence has been presented setting forth with specificity the basis for this claim of CEQA exemption.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST: APPROVED:
____________________________ _________________________________ City Clerk Mayor
APPROVED AS TO FORM: _________________________________ City Manager
____________________________
Senior Deputy City Attorney
_________________________________
Director of Utilities
_________________________________
Director of Administrative Services
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Attachment B: Table of URLs
Definitions and
Abbreviations
Rule and
Regulation 2
https://www.paloalto.gov/files/assets/public/v/1/agendas-minutes- reports/agendas-minutes/city-council-agendas-
minutes/2026/june/rules-and-regulations/rr-02-definitions-and- abbreviations.pdf
Description of Utility
Services
Rule and
Regulation 3
https://www.paloalto.gov/files/assets/public/v/1/agendas-minutes- reports/agendas-minutes/city-council-agendas-
minutes/2026/june/rules-and-regulations/rr-03-description-of- utility-services.pdf
Application for Service Rule and
Regulation 4
https://www.paloalto.gov/files/assets/public/v/1/agendas-minutes- reports/agendas-minutes/city-council-agendas-
minutes/2026/june/rules-and-regulations/rr-04-application-of- utility-services.pdf
Service Contracts Rule and
Regulation 5
https://www.paloalto.gov/files/assets/public/v/1/agendas-minutes- reports/agendas-minutes/city-council-agendas-
minutes/2026/june/rules-and-regulations/rr-05-service-
contracts.pdf
Disconnection,
Termination and
Restoration of Services
Rule and
Regulation 9
https://www.paloalto.gov/files/assets/public/v/2/agendas-minutes- reports/agendas-minutes/city-council-agendas-
minutes/2026/june/rules-and-regulations/rr-09-disconnection- termination-and-restoration-of-service.pdf
Meters and Meter
Reading
Rule and
Regulation 10
https://www.paloalto.gov/files/assets/public/v/1/agendas-minutes- reports/agendas-minutes/city-council-agendas-
minutes/2026/june/rules-and-regulations/rr-10-meter-reading.pdf Billing, Adjustments and
Payment of Bills
Rule and
Regulation 11
https://www.paloalto.gov/files/assets/public/v/1/agendas-minutes- reports/agendas-minutes/city-council-agendas-
minutes/2026/june/rules-and-regulations/rr-11-billing-adjustments- and-payments-of-bills.pdf
Utility Service and
Facilities on Customer
Premises
Rule and
Regulation 18
https://www.paloalto.gov/files/assets/public/v/2/agendas-minutes- reports/agendas-minutes/city-council-agendas-
minutes/2026/june/rules-and-regulations/rr-18-utility-service- connections-and-facilities-on-customer-premis.pdf
Special Electric Utility
Regulations
Rule and
Regulation 20
https://www.paloalto.gov/files/assets/public/v/1/agendas-minutes- reports/agendas-minutes/city-council-agendas-
minutes/2026/june/rules-and-regulations/rr-20-special-electric- utility-regulations.pdf
Special Water Utility
Regulations
Rule and
Regulation 21
https://www.paloalto.gov/files/assets/public/v/1/agendas-minutes- reports/agendas-minutes/city-council-agendas-
minutes/2026/june/rules-and-regulations/rr-21-special-water- utility-regulations.pdf
Special Gas Utility
Regulations
Rule and
Regulation 22
https://www.paloalto.gov/files/assets/public/v/1/agendas-minutes- reports/agendas-minutes/city-council-agendas-
minutes/2026/june/rules-and-regulations/rr-22-special-gas-utility- regulations.pdf
Special Wastewater
Utility Regulations
Rule and
Regulation 23
https://www.paloalto.gov/files/assets/public/v/1/agendas-minutes- reports/agendas-minutes/city-council-agendas-
minutes/2026/june/rules-and-regulations/rr-23-special-
wastewater-utility-regulations.pdf
Residential Rate
Assistance Program
Utility Rate
Schedule C-4
https://www.paloalto.gov/files/assets/public/v/1/agendas-minutes- reports/agendas-minutes/city-council-agendas-
minutes/2026/june/rules-and-regulations/utility-rate-schedule-c-4- residential-rate-assistance-program.pdf
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CITY COUNCIL
Staff Report
From: City Manager
Report Type: ACTION ITEMS
Lead Department: Planning and Development Services
Meeting Date: June 1, 2026
Report #: 2603-6082
TITLE
Adoption of the Community Development Block Grant (CDBG) Fiscal Year (FY) 2026-2027 Annual Action Plan; and Approving Use of CDBG Funds for FY 2026-2027 as Recommended by the Human Relations Commission. CEQA Status: Exempt under CEQA Guidelines Section 15378(b)(4).
RECOMMENDATION
The Human Relations Commission (HRC) and staff recommend City Council take the following actions:
1. Adopt the draft Fiscal Year (FY) 2026-2027 Annual Action Plan (Attachment A) and the associated resolution (Attachment B) allocating Community Development Block Grant (CDBG) funding for FY 2026-2027;
2. Authorize the City Manager to execute the FY 2026-2027 CDBG application to fund the FY 2026-2027 Annual Action Plan (AAP) and any other necessary documents concerning the application, and to otherwise bind the City with respect to the applications and commitment of funds;
3. Authorize staff to submit the FY 2026-2027 AAP to U.S. Department of Housing and Urban Development (HUD) by the extended deadline of August 16, 2026.
EXECUTIVE SUMMARY
The CDBG Entitlement Program provides grants to entitled cities and counties to develop viable urban communities by providing decent housing and a suitable living environment, and by expanding economic opportunities. HUD requires entitlement jurisdictions to prepare an Annual Action Plan (AAP) to allocate funding to specific projects within the fiscal year timeframe (FY 2026-27). The City released a Notice of Funding Availability (NOFA) in November 2025, requesting applications for the FY2026-27 funding cycle. The City received a total of eleven (11) CDBG applications.
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On April 9, 2026, the HRC provided funding recommendations for the CDBG FY 2026-2027 funding cycle.1
It is not possible to fund all applications at the requested amounts due to the limitations of available funds. However, the proposed recommendations:
Allocate all available CDBG program funds;
Are consistent with the City’s CDBG Consolidated Plan (ConPlan); Are consistent with the City’s 6 th Cycle Housing Element goals and programs as they pertain to CDBG; and
Will result in funding key services and projects that benefit many low- and very-low-income Palo Alto residents.
Staff recommends that City Council review and approve the 2026-2027 AAP (Attachment A), the associated Resolution (Attachment B), and authorize staff to submit and execute associated documents necessary to implement the FY 2026-2027 AAP.
BACKGROUND
The CDBG program, administered by HUD, provides annual grants on a formula basis to states, cities, and counties to develop viable urban communities by providing decent housing, a suitable living environment and by expanding economic opportunities, principally for low- and moderate-income persons. The HUD regulations require all CDBG- funded activities meet one of the three national objectives:
1. Benefit low- and very-low-income persons;
2. Aid in the prevention or elimination of slums or blight; or
3. Meet other community development needs having a particular urgency or posing a serious and immediate threat to the health or welfare of the community.
The City’s CDBG program has primarily been focused on meeting the first objective of benefiting low- and very-low-income persons.
Consolidated Plan & Annual Action Plan
HUD requires preparation of a five-year strategic plan, referred to as a ConPlan, which must address priority housing and community development needs and set goals related to those needs. The CDBG program is currently guided by the FY 2025-29 ConPlan adopted by Council on June 9, 2025. HUD also requires the submittal of an AAP, which must identify the specific projects to be funded to implement strategies identified in the ConPlan.
The FY 2026–2027 AAP builds on a comprehensive assessment of affordable housing and community development needs, shaped by public participation. Staff presented the draft 1 https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=18927 Item 15
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AAP to the HRC on April 9, 2026. It was also made available for a public review period beginning May 1, 2026, through May 31, 2026, which constitutes the required 30-day public review and comment period. Once adopted by City Council, the FY 2026-2027 AAP will be effective July 1, 2026, through June 30, 2027.
Projects funded through the City by the CDBG program must be consistent with the goals outlined in the adopted 2025-2029 ConPlan. The projects identified for funding in the draft FY 2026-2027 AAP are consistent with these goals and, following the City Council's final approval of funding allocations, will be reported to HUD via the submittal of the FY 2026- 2027 AAP.
Citizen Participation for the Annual Action Plan and Consolidated Plan HUD's regulations and the City's adopted Citizen Participation Plan ensure adequate citizen participation in the CDBG funding process.
Per the City’s Citizen Participation Plan, the HRC supports the preparation of the draft AAP by facilitating public input and providing advisory recommendations. On March 12, 2026, the HRC Selection Committee reviewed the CDBG NOFA applications received for FY 2026- 2027. The HRC Selection Committee’s recommendations were then presented at a public hearing to the full HRC on April 9, 2026. The HRC approved motions, including a recommendation that Council approve the draft FY 2026-2027 AAP.
Prior to the submission of the FY 2026-2027 AAP to HUD, the City must hold two public hearings. The HRC meeting served as the first public hearing, and the June 1, 2026, City Council meeting, serves as the second public hearing.
Annual Action Plan Allocation ProcessCDBG funding applications were made available in November 2025, with completed applications due January 7, 2026. The City hosted a pre- proposal conference on November 14, 2025. Additionally, staff provided technical assistance to applicants during the application period regarding questions related to program regulations and project eligibility.
ANALYSIS
This section provides a description of the CDBG funds available for allocation and recommendations for the FY 2026-2027 funding cycle.
Funds Available for Allocation in FY 2026-2027
CDBG funds available for allocation in FY 2026-2027 total $612,139, including the City’s entitlement grant of $512,139 and $100,000 in estimated program income to be received.
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Program Income (PI) comes from loan repayments on specific properties acquired or rehabilitated with CDBG funds. Cities are required to estimate anticipated program income for the activity budget for the upcoming year. Based on past years, PI for FY 2026-2027 is estimated to be $100,000.
Table 1. FY 2026-2027 CDBG Estimated Funds Available
CDBG Funds Available Available for Funding
FY 2026-2027 Entitlement Grant $512,139
Program Income in FY 2026-2027 (Estimated) $100,000
Estimated Total CDBG Funds Available for Allocation $612,139 CDBG Funding Categories and Funding Caps
The CDBG program has five primary activity areas in which to allocate funds: Public Services, Economic Development, Housing Rehabilitation, Public Facilities & Improvement, and Planning & Administration.
Federal regulations cap the amount that can be spent on Public Services and Planning & Administration as follows (Table 2):
Public Services (15% Cap) — The amount of any CDBG funds that may be obligated toward Public Services during a program year is capped at 15 percent of the sum of the grant allocation plus the total amount of prior year program income. Planning & Administration (20% Cap) — The amount of any CDBG funds that may be obligated toward Planning & Administration during a program year is capped at 20 percent of the sum of the grant allocation plus the total amount of prior year program income.
Table 2. FY 2026-2027 Breakdown of Capped/Un-Capped Funds CDBG Amount
Public Services 15% Maximum
15% x [Grant allocation ($512,139) + program income ($100,000)] $91,821
Estimated Planning and Administration 20% Maximum
20% x [Grant allocation ($512,139) + program income ($100,000)] $122,428
Un-capped Funds $397,890
Estimated Total Available for CDBG Allocation $612,139
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CDBG 2026-27 Funding Allocations
Eleven (11) applicants are recommended for CDBG FY 2026-2027 funding allocations (Table 3) in the draft AAP. It is not possible to fully fund all applications at the levels requested in the Public Services category. However, the City is able to fully fund projects in the Economic Development and Housing Rehabilitation categories. The draft FY 2026-2027 AAP reflects the HRC’s funding recommendations and the FY 2025-2029 ConPlan goals and priorities.
Table 3: Fiscal Year 2026-2027 CDBG Budget
Applicant Agency Requested Funding Recommended
Allocation
CDBG Applicants
Public Services (15% Cap = $91,821)
LifeMoves – Case Management at Opportunity
Center $75,000 $30,500
Silicon Valley Independent Living Center (SVILC) –
Case Management Services $21,419 $15,750
Project Sentinel – Fair Housing Services $25,000 $16,250 Next Door Solutions to Domestic Violence $10,000 $6,500 Catholic Charities – Long Term Ombudsmen
Program $14,910 $6,500
La Comida – Food Assistance Program $28,000 $6,321
RotaCare Bay Area – Mobile Clinic $16,000 $4,500
YWCA – Services for Victims of Domestic Violence $24,500 $5,500 Subtotal $91,821
Economic Development (No Cap)
Upwards – Training for Family Child Care Home $72,000 $72,000 Subtotal $72,000
Housing Rehabilitation (No Cap)
Rebuilding Together Peninsula – Safe at Home $73,585 $73,585 Subtotal $73,585
Public Facilities & Improvements (No Cap)
Public Works – ADA Curb Improvements N/A* $172,335
Peninsula Healthcare – Facility Rehabilitation $79,970 $79,970 Subtotal $252,305
Planning & Administration (20% Cap = $122,428)
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Planning and Development Services – Program
Administration
N/A* $122,428
Subtotal $122,428
Grand Total for CDBG Budget $612,139
*“N/A” indicates that no formal application was submitted. These uncapped projects were previously awarded funds, and additional funding was determined to be necessary through staff and HRC review based on identified need.
FISCAL/RESOURCE IMPACT
There is no fiscal impact to the General Fund associated with this action as CDBG funding is provided by HUD. The Community Development Block Grant Fund is a Special Revenue Fund that recognizes revenue provided by Housing and Urban Development (HUD) and disburses that revenue through grants to eligible recipients. These are restricted funds that can only be used for eligible purposes as discussed above. Associated grant funding is also used to support program administration for consultant services and liability insurance. If approved, corresponding appropriation actions will be taken with, or following, the adoption of the FY 2026-FY 2027 budget.
STAKEHOLDER ENGAGEMENT
Prior to the submission of the FY 2026-2027 AAP to HUD, the City must hold two public hearings on the draft FY 2026-2027 AAP and post the FY 2026-2027 AAP for a 30-day public review and comment period.
The HRC meeting on April 9, 2026, served as the first public hearing.
The 30-day public review and comment period on the draft AAP began on May 1, 2026, and ended on May 31, 2026. At the time of this report staff did not receive public comment on the 2026-2027 AAP.
The City Council meeting on June 1, 2026, serves as the second public hearing for review and approval of the FY 2026-2027 AAP.
To inform the public of the two public hearings and 30-day public review and comment period, a public notice was published in the Palo Alto Daily Post on March 27, 2026.
ENVIRONMENTAL REVIEW
For the purposes of the National Environmental Policy Act (NEPA) and the California Environmental Quality Act (CEQA), budgeting by itself is not a project. Prior to the commitment or release of funds for each of the proposed programs, projects, and activities, staff will carry out the required environmental reviews or assessments and certify that the review procedures under HUD, NEPA, and CEQA regulations have been satisfied for each activity.
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ATTACHMENTS
Attachment A: FY 2026-2027 Draft Annual Action Plan
Attachment B: Draft Resolution to Adopt FY 2026-2027 Annual Action Plan APPROVED BY:
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City of Palo Alto
Draft FY 2026–2027 Annual
Action Plan
Community Development Block Grant (CDBG) Program
Prepared by:
City of Palo Alto
Planning & Development Services Department
Draft for Public Review
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Annual Action Plan
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E
xecutive Summary
AP-05 Executive Summary - 91.200(c), 91.220(b)
1. Introduction
The City of Palo Alto (City) Fiscal Year (FY) 2026-27 draft Annual Action Plan (AAP) contains the City’s plan to carry out housing and community development activities funded by Federal formula grant funds received from the U.S. Department of Housing and Urban Development (HUD), Community Development Block Grant (CDBG) program. This AAP covers the second year of the City’s five-year 2025-2029 Consolidated Plan, which was adopted by the Palo Alto City Council on June 9, 2025. The Planning and Development Services Department is the lead agency for the Consolidated Plan and subsequent 5 Annual Action Plans for the City’s CDBG program.
The City’s FY 2026-27 AAP covers the time-period from July 1, 2026, to June 30, 2027. The FY 2026-27 AAP contains the accomplishments the City expects to achieve in FY 2026-27. All the projects, programs, and activities in FY 2026-27 AAP reflect the 2025-2029 Consolidated Plan goals. CDBG-funded programs and activities principally benefit City residents that have extremely low, low, and moderate- incomes and/or populations that have special needs, such as the elderly, disabled, and homeless.
Entitlement community grantees may use CDBG funds for a range of eligible activities, including public services, public facility and infrastructure improvements, housing rehabilitation, downpayment assistance, tenant -based rental assistance, and job creati on or retention efforts. These activities are primarily intended to benefit HUD-defined low- and moderate-income (LMI) households. LMI households are those with incomes at or below 80% of the Area Median Income (AMI), adjusted for household size.
Census block groups are generally considered eligible when at least 51% of households are LMI.
Primary Needs
The City of Palo Alto is a small Bay Area community known as the birthplace of Silicon Valley’s high -tech industry. It is home to major companies and research institutions such as VMware and Hewlett-Packard, and it also hosts Stanford University. According to the 2024 American Community Survey (ACS) 5 -year estimates, the City has a population of approximately 67,237 and covers roughly 25 square miles, making it less densely populated than many peer entitlement jurisdictions.
Palo Alto is lo cated within a region c haracterized by significant income diversity, including some of the highest-earning households in the nation. The regional economy relies on a broad workforce that spans a Item 15
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Annual Action Plan
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wide range of income levels, including many lower- wage earners who support essential services and industries. Lower-income residents face substantial challenges related to housing affordability, driven by a highly competitive market and strong demand from higher -income households. Of the City’s 25,486 households, 43% of renters and 24% of homeowners experience housing cost burden—defined as paying more than 30% of gross income toward housing—with some paying more than 50%.
T
hroughout the consultation process for this plan, stakeholders consistently emphasized the negative impacts of high housing costs on the ability to recruit and retain workers in critical roles, including public safety, education, and essential service positions across the region.
2. Summarize the objectives and outcomes identified in the Plan This could be a restatement of items or a table listed elsewhere in the plan or a reference to another location. It may also contain any essential items from the housing and homeless needs assessment, the housing market analysis or the strategic plan.
Priority needs identified in this Annual Action Plan (AAP) include:
• Ho
using: Increasing the supply of affordable housing and improving the condition of existing units. • Homelessness: Stabilizing people at -risk of and experiencing homelessness through housing solutions, and facilitation of supportive services including mental health and addiction recovery services.
• Community development: Enhance neighborhood safety and quality through cleanups, improved street lighting and park improvements, bolster/create public space for senior activities, and food pantries.
• Economic Development: Provide more opportunities for resident workforce development and/or build outreach campaign for existing programs, create community partnerships to address childcare access as a component of workforce participation. • Fair Housing: Improve navigation and case management services for residents needing housing, legal services (related to housing), and basic services documentation assistance.
P
alo Alto has therefore identified the following goals for the FY2026 -27 AAP through extensive data analysis and community outreach:
1. I
ncrease the supply and improve the condition of affordable housing for households with incomes ranging from 0-80% AMI.
2. Respond to homelessness and risk of homelessness through housing stabilization, supportive services, mental health services, and economic resiliency programs.
3. Strengthen neighborhoods through investing in infrastructure and public facility improvements that prioritize safety, accessibility, and community building.
4. Support projects that increase opportunities for workforce development.
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5. Provide supportive services to low-income households through bolstering case management and navigation of services including legal assistance and tenant/landlord resolution.
3. Evaluation of past performance
The City is responsible for ensuring full compliance with all rules and regulations governing the CDBG entitlement grant program. The City’s Annual Action Plans and CAPERs have documented the goals, projects, and programs completed over the past five years. A review of past CAPERs demonstrates a robust performance record in the use of CDBG funds. Palo Alto has been strategic in leveraging federal dollars and cultivating community partnerships to maximize program impact. For example, an analysis of the 2020–2024 CAPERs show:
• LMI e
lderly assisted: 711
• R
esidents who received counseling services: 672
• Homeless individuals who received shelter or assistance: 863 • Individuals that received housing complaint services: 82 • Persons with disabilities that received assistance: 6,771 • LMI homeowners that received home improvements: 19
• Workforce development program assistance: 51
4. Summary of Citizen Participation Process and consultation process [Palo Alto held a Human Relations Commission public meeting on 4/9/26 to review proposed CDBG awardees in FY2026-27. The 30-day comment period notice was posted in the Daily Post on 3/27/26 to inform residents of the AAP public comment period that will run from 5/1 to 5/31. City Council will hold a public hearing to adopt the FY2026-27 AAP on 6/1/26.]
5. Summary of public comments
[Any comments received during 30-day comment period will be summarized here]
6. Summary of comments or views not accepted and the reasons for not accepting them [Not applicable. All comments were accepted. The City attempted to incorporate feedback received from outreach efforts throughout the process.]
7. Summary
This 2026–2027 AAP reflects resident feedback, demographic analysis, community stakeholder input, and an assessment of City resources, goals, and relevant plans and policies.
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PR-05 Lead & Responsible Agencies - 91.200(b)
1. Agency/entity responsible for preparing/administering the Consolidated Plan The following are the agencies/entities responsible for preparing the Consolidated Plan and those responsible for administration of each grant program and funding source.
Agency Role Name Department / Agency
Lead Agency Palo Alto
CDBG Administrator Palo Alto Department of Planning &
Development Services
Table 1 – Responsible Agencies
Narrative
The City of Palo Alto serves as the Lead and Responsible Agency for the U.S. Department of Housing and Urban Development’s (HUD) entitlement programs within the City.
The Department of Planning and Development Services administers the City’s Community Development Block Grant (CDBG) program. In addition, the City joined the HOME Consortium in 2015 and receives federal HOME Investment Partnerships Program (HOME) funds through Santa Clara County.
Consolidated Plan Public Contact Information
Leif Christiansen, Senior Housing Specialist
City of Palo Alto Department of Planning and Development Services 250 Hamilton Avenue, 5th Floor
Palo Alto, CA 94301
Phone: (650) 329-2195
Email: [email protected]
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AP-10 Consultation - 91.100, 91.200(b), 91.215(l)
1. 1. Introduction
Public participation plays a vital role in the development of the Consolidated Plan and Annual Action Plans.
Palo Alto coordinated closely with Santa Clara County and other entitlement jurisdictions in stakeholder consultation and resident engagement to leverage opportunities and minimize duplication. Community outreach for this planning period included the following:
• A Consolidated Plan website—www.letstalkhousingscc.org—with information about the Planning process including a short video and presentation; a link to the resident survey and activities to prioritize housing and community development needs; and community resources. The website contains a translation feature for easy conversion into multiple languages. • A community survey, available between October and December 2024, and promoted through supportive service and public agencies that work with low - and moderate-income residents, city social media, and the Consolidated Plan website. A summary of survey findings is below. • Two virtual regional workshops open for all residents living in and stakeholders serving residents in the county. The workshops included a brief overview about the Planning process, simple activities to express priority needs, and in -depth discussions about needs in breakout rooms.
Interpretation was available in Spanish, Vietnamese, and Mandarin. • Three focus groups with stakeholders in housing, supportive services, and community development serving residents throughout the county. After a brief presentation about the Consolidated Plan process —including information on how to circulate the survey and letstalkhousingscc.org website to client -stakeholders participated in in -depth discussion about priority needs and solutions to needs. Attendees represented affordable housing developers, nonprofit housing rehabilitation providers, unhoused service providers, community organizations and advocates for special needs populations, people with lived experience, legal advocates, childcare service providers, and public housing staff.
• One-on-one interviews with the Continuum of Care and coordination with the City of San Jose, who receives HOPWA and ESG funding and distributes that funding to the County’s public service departments.
• A complete survey analysis and overview of engagement is provided in the appendix of this plan.
Engagement Promotion.
City Staff promoted the Consolidated Plan engagement opportunities through a multi -channel outreach strategy. This included targeted email announcements, updates posted on the City’s website and official social media platforms, and in-person outreach at community events such as local festivals and farmers’ markets.
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Provide a concise summary of the jurisdiction’s activities to enhance coordination between public and assisted housing providers and private and governmental health, mental health and service agencies (91.215(l)).
During the development of its Consolidated Plan and Annual Action Plans —and as part of its ongoing practices—the City coordinated with a wide range of housing, public health, mental health, and social service agencies to discuss community needs. These disc ussions provided opportunities for agencies to network, share information about their programs, and identify areas of collaboration. Their collective feedback was especially valuable in shaping the priorities of this Plan, particularly regarding special needs populations and general and mental health services within the City and Santa Clara County.
The City also participates in the County’s quarterly CDBG Coordinators Group meetings, where entitlement jurisdictions across the region convene to discuss proposed uses of federal funds for the upcoming program year.
In addition, the City takes part in the County’s Regional Housing Working Group, a forum for both entitlement and non-entitlement jurisdictions to coordinate responses to regional housing challenges.
The City is represented on the Continuum of Care (CoC) by its Human Services Manager. The CoC is a broad coalition of stakeholders committed to preventing and ending homelessness in Santa Clara County.
Its key responsibilities include ensuring community -wide implementation of strategies to address homelessness and monitoring both programmatic and system-level effectiveness.
Describe coordination with the Continuum of Care and efforts to address the needs of homeless people (particularly chronically homeless individuals and families, families with children, veterans, and unaccompanied youth) and people at risk of homelessness.
The Santa Clara County Office of Supportive Housing serves as the administrator of the regional Continuum of Care (CoC). The City maintains ongoing coordination with the County CoC to support efforts to prevent and end homelessness, and City staff participate in monthly CoC meetings. The Santa Clara County CoC includes a broad range of stakeholders, including governmental agencies, homeless service and shelter providers, individuals with lived experience of homelessness, housing advocates, affordable housing developers, and representatives from the private and philanthropic sectors.
The City’s Human Services Manager represents Palo Alto on the CoC Board. The CoC meets monthly to plan programs, identify gaps in the homeless services system, establish funding priorities, and advance a coordinated, systems -level approach to addressing homelessness. City staff also meet and consult regularly with County CoC staff and peers from other jurisdictions through the quarterly countywide CDBG Coordinators Group meetings, with additional communication occurring as needed by email or phone.
The CoC is governed by the CoC Board, which uses a system-change framework to guide regional strategies to prevent and end homelessness. The Board is composed of the same members who serve on the Destination: Home Leadership Board. Destination: Home, a public -private partnership focused on collective-impact strategies to end chronic homelessness, serves as the governing body for the CoC and is responsible for implementing its bylaws and operational protocols.
Regional CoC efforts include the development of the Community Plan to End Homelessness, which outlines strategies to address the needs of individuals and families experiencing homelessness—including chronically homeless households, families with children, veterans, and unaccompanied youths as well as Item 15
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those at risk of homelessness. The CoC is currently updating its five-year strategic plan, and the City will participate in this regional planning process.
During the development of the Consolidated Plan, the City consulted with the CoC and the County Office of Supportive Housing to help identify community needs. The City also invited service providers and organizations serving people experiencing or at risk of homelessness to participate in Consolidated Plan and Annual Action Plan engagement meetings. These organizations included Abode Services, which administers tenant -based rental assistance; Destination: Home, which leads regional homelessness prevention and policy efforts; and LifeMoves, a shelter and homeless services provider operating in San José and Palo Alto. Destination: Home also provided input through a phone interview to help identify needs among homeless and at-risk populations.
Describe consultation with the Continuum(s) of Care that serves the jurisdiction’s area in determining how to allocate ESG funds, develop performance standards for and evaluate outcomes of projects and activities assisted by ESG funds, and develop funding, policies and procedures for the operation and administration of HMIS The Santa Clara County Office of Supportive Housing serves as the administrator of the regional Homeless Management Information System (HMIS). The County and its consultant, Bitfocus, jointly operate and oversee the HMIS, with Bitfocus providing both the software platform and system administration. HMIS in Santa Clara County is funded by HUD, the County of Santa Clara, and the City of San José. The system is used by many service providers throughout the region, including those serving Palo Alto, to record client information and report program outcomes.
2. Agencies, groups, organizations and others who participated in the process and consultations
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1 Agency/Group/Organization Catholic Charities of Santa Clara County Agency/Group/Organization Type Services - Housing
Services-Children
Services-Elderly Persons
Services-Persons with Disabilities
Services-homeless
Services-Health
Services-Employment
Services-Food
What section of the Plan was addressed by Consultation? Housing Need Assessment Non-Homeless Special Needs
How was the Agency/Group/Organization consulted and
what are the anticipated outcomes of the consultation or areas for improved coordination?
A representative from Catholic Charities of Santa Clara County participated in the November 14, 2025 NOFA Kickoff meeting.
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2 Agency/Group/Organization LifeMoves
Agency/Group/Organization Type Housing
Services - Housing
Services-Children
Services-Health
Services-Employment
What section of the Plan was addressed by Consultation? Housing Need Assessment Homeless Needs - Families with children
How was the Agency/Group/Organization consulted and
what are the anticipated outcomes of the consultation or areas for improved coordination?
A representative from LifeMoves participated in the November 14, 2025 NOFA Kickoff meeting
3 Agency/Group/Organization Next Door Solutions to Domestic Violence Agency/Group/Organization Type Services - Housing
Services-Victims of Domestic Violence
Services-Education
What section of the Plan was addressed by Consultation? Housing Need Assessment Non-Homeless Special Needs
How was the Agency/Group/Organization consulted and
what are the anticipated outcomes of the consultation or areas for improved coordination?
A representative from Next Door Solutions to Domestic Violence participated in the November 14, 2025 NOFA Kickoff meeting 4 Agency/Group/Organization Project Sentinel
Agency/Group/Organization Type Services - Housing
Service-Fair Housing
Legal Services
What section of the Plan was addressed by Consultation? Housing Need Assessment Non-Homeless Special Needs
How was the Agency/Group/Organization consulted and
what are the anticipated outcomes of the consultation or areas for improved coordination?
A representative from Project Sentinel participated in the November 14, 2025 NOFA Kickoff meeting
5 Agency/Group/Organization Silicon Valley Independent Living Center Agency/Group/Organization Type Services - Housing
Services-Elderly Persons
Services-Persons with Disabilities
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What section of the Plan was addressed by Consultation? Housing Need Assessment Non-Homeless Special Needs
Market Analysis
How was the Agency/Group/Organization consulted and
what are the anticipated outcomes of the consultation or areas for improved coordination?
A Silicon Valley Independent Living Center representative attended the November 14, 2025 NOFA Kickoff meeting
6 Agency/Group/Organization Upwards WeeCare Inc.
Agency/Group/Organization Type Services-Children
What section of the Plan was addressed by Consultation? Housing Need Assessment How was the Agency/Group/Organization consulted and
what are the anticipated outcomes of the consultation or areas for improved coordination?
A representative from Upwards attended the December 11th, 2024 Stakeholder Workshop.
7 Agency/Group/Organization Rebuilding Together Peninsula Agency/Group/Organization Type Home Rehabilitation
What section of the Plan was addressed by Consultation? Housing Need Assessment How was the Agency/Group/Organization consulted and
what are the anticipated outcomes of the consultation or areas for improved coordination?
A representative from Rebuilding Together participated in the November 14, 2025 NOFA Kickoff meeting
Table 2 – Agencies, groups, organizations who participated Identify any Agency Types not consulted and provide rationale for not consulting Not applicable. No agency types were intentionally left out of the consultation process. Over 40 agency types were contacted during the consultation process. Details of these efforts are within the Consolidated Plan.
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Other local/regional/state/federal planning efforts considered when preparing the Plan Name of Plan Lead Organization How do the goals of your Strategic Plan overlap with the goals of each plan? Continuum of Care Regional Continuum of
Care Council,
Destination: Home
Identifies housing inventory counts to facilitate the provision of housing services to those experiencing homelessness.
Community Plan to
End Homelessness
Destination: Home The Community Plan to End Homelessness in the County is a five-year plan to guide governmental actors, nonprofits, and other community members as they make decisions about funding, programs, priorities and needs. This effort aligns with the Strategic Plan's goal to support activities to end homelessness.
SCCHA Moving to
Work Annual Plan
Santa Clara County
Housing Authority
Addresses housing authority updates and strategies pertaining to public housing and vouchers.
Table 3 - Other local / regional / federal planning efforts Describe cooperation and coordination with other public entities, including the State and any adjacent units of general local government, in the implementation of the Consolidated Plan (91.215(l)) The Consolidated Plan was developed in close coordination with jurisdictional partners throughout Santa Clara County. The Santa Clara County Office of Supportive Housing (OSH) initiated this collaborative effort in spring 2024 by convening all entitlement jurisdictions. Together, the jurisdictions issued a joint RFP to select a consultant team to prepare the plans. Participating in entitlement jurisdictions included Cupertino, Gilroy, Milpitas, Mountain View, Palo Alto, the City of Santa Clara, Sunnyvale, and the Urban County.
Collaboration on stakeholder engagement and resident participation began with a joint meeting to review the proposed engageme nt strategy.
Each jurisdiction contributed lists of priority stakeholders and organizations to streamline outreach and avoid duplic ation. Regional engagement activities included two virtual evening open houses for residents and stakeholders, three stakeholder consultation workshops held on different days and times in December, and a joint community survey that was widely promoted across jurisdictions.
The jurisdictions also collaborated on a regional housing market assessment, which included jurisdiction -level data to support consistent comparisons of housing needs and ensure uniform market information across all plans.
The Association of Bay Area Governments (ABAG) was invited to participate in a meeting focused on regional housing and community development needs. ABAG provided relevant reports and data for incorporation into the Consolidated Plans.
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In addition, the County hosts regular CDBG Coordinators Group and Regional Housing Working Group meetings, which jurisdictions attend. These meetings provide a forum to discuss projects serving homeless and special -needs populations, pending legislation, and local initiatives affecting affordable housing and services for lower- income households. Jurisdiction staff also support the countywide biennial Homeless Census, which identifies homeless populations across the region and informs strategies and service priorities to address their needs.
Narrative
N/A
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AP-12 Participation - 91.401, 91.105, 91.200(c)
1. 1. Summary of citizen participation process/Efforts made to broaden citizen participation Summarize citizen participation process and how it impacted goal setting Engagement that was done in coordination with the County and was targeted to residents included:
• A C
onsolidated Plan website—www.letstalkhousingscc.org—with information about the Planning process including a short video and presentation; a link to the resident survey and activities to prioritize housing and community development needs; and community re
sources. The website contains a translation feature for easy conversion into multiple languages. • A community survey, available between October and December 2024, and promoted through supportive service and public agencies that work with low- and moderate-income residents, city social media, and the Consolidated Plan website. • Two virtual regional workshops open to all residents living in Santa Clara County and stakeholders serving residents in the county. The w
orkshops included a brief overview about the Planning process, simple activities to express priority needs, and in-depth discussions about needs in breakout rooms. Interpretation was available in Spanish, Vietnamese, and Mandarin. • Public hearings: Two public hearings were held to solicit community feedback and review funding recommendations and plan content.
One hearing was conducted with the City’s Human Relations Commission, and the second with the Palo Alto City Council. • Public comment on the 2025-2029 Consolidated Plan was open from May 5, 2025 through June 4, 2025. A link to the Consolidated Plan draft document was provided on the Letstalkhousingscc.org website and on the City of Palo Alto website.
A fu
ll survey analysis and summary of resident engagement activities is included in the appendix of this plan. The survey was distributed by all participating entitlement jurisdictions and made available on the Let’s Talk Housing website, individual city websites, and in printed form— offered in both English and Spanish—at community events.
Fr
om the North County area, 876 residents completed the survey, including 79 respondents who also identified as stakeholders working in various housing and community development roles.
S
urvey respondents were asked to identify their priority housing, community development, and economic development outcomes. The results below reflect responses from Palo Alto residents only, ranked by frequency of selection:
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• The top housing outcomes were more affordable rental housing and supportive housing for the unhoused (both at 35%), followed by more affordable homeownership (29%), increased shelter capacity (26%), and security deposit assistance for low to moderate income renter households (24%);
• The top community development outcome in Palo Alto was affordable childcare (41%), followed by supportive services for the unhoused (38%), access to reliable public transit (35%), supportive services for low-income residents, people living with disabilities (32%), and mental health services (26%);
• The top economic development outcome selected by respondents in Palo Alto was job training programs (62%), followed by revitalization of neighborhood businesses/commercial areas (47%), improved transportation to areas with job opportunities (41%), more opportunities for small or start-up businesses 41%), and center for seasonal and day laborers (35%).
Citizen Participation Outreach
1 Public
Meeting
Non-
targeted/broad
community
4/9 public meeting
of Human Relations
Commission to
review proposed
awardees
[no comments
received]
[no comments
received]
N/A
2 Newspaper
Ad
Non-
targeted/broad
community
30-day comment
period notice posts
5/
1, for 5/1 to 5/31
comment period
[no comments
received]
[no comments
received]
N/A
3 Internet
Outreach
Non-
targeted/broad
community
Draft 26-27 Annual
Action Plan available
for public review
and comments
[no comments
received]
[no comments
received]
N/A
4 Other:
Public
Hearing
Non-
targeted/broad
community
On 6/1/26, City
Council held a public
hearing to adopt 26-
27 Annual Action
Plan.
[no comments
received]
[no comments
received]
N/A
Table 4 – Citizen Participation Outreach
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Expected Resources
AP-15 Expected Resources - 91.420(b), 91.220(c)(1,2)
Introduction
In FY 2026-27, the City will allocate a total of $612,139 CDBG funds to eligible activities that address the needs identified in the Consolidated Plan. These CDBG funds reflect the sum of a $512,139 FY2026-27 Entitlement Grant and $100,000 Program Income (estimated) to be receipted in FY 2025-26. The City acknowledges that program income receipts may vary and endeavors to forecast future income while implementing necessary adjustments to the ongoing program budget. It should be noted that while the HUD CDBG allocations are critical, the allocations are not sufficient to overcome barriers and address all needs that low- income individuals and families face in attaining self- sufficiency. The City efforts include leveraging local county, regional, state, and federal funds estimating $5.3 million, that align with goals Item 15
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outlined in the Consolidated Plan.
Anticipated Resources
Program Source Uses of Funds Expected Amount Available Year 1 Expected Narrative Description of Annual Program Prior Year Total: Amount
Funds Allocation: Income: $ Resources: $ Available
$ $ Remainder
of ConPlan
$
CDBG public -
federal
Acquisition
Admin and
Planning
Economic
Development
Housing
Public
Improvements
Public Services 512,139.00 100,000.00 0.00 612,
139.00 1, 500,000.00
CDBG funds will be used for the
creation and preservation of
affordable rental units,
improvements in low-income
neighborhoods, and public
services that benefit low-income
and special needs households.
Table 5 - Expected Resources – Priority Table
Explain how federal funds will leverage those additional resources (private, state and local funds), including a description of how matching requirements will be satisfied
Other State and Federal Grant Programs
A
dditional federal programs that fund community development and affordable housing activities include:
• S
ection 8 Housing Choice Voucher Program;
• Section 202;
• Section 811; and
• Affordable Housing Program (AHP) through the Federal Home Loan Bank.
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These programs would not be provided to the City but rather to the Santa Clara County Housing Authority (SCCHA) and affordable housing developers.
C
ounty and Local Housing and Community Development Sources H
OME funds can be used to fund eligible affordable housing projects for acquisition, construction, and rehabilitation. The City joined the Santa Clara County HOME Consortium in 2015 and does not receive federal HOME funds on an entitlement basis from HUD. The HOME Consortia consists of the cities of Cupertino, Gilroy, Palo Alto, and the Urban County. Developers of affordable housing projects are eligible to competitively apply through an annual request for proposal process directly to the County for HOME funds to help subsidize affordable housing projects in Palo Alto. If the City receives HOME dollars from this process, the City is required to provide a 25 percent match, which will be provided by the City’s Affordable Housing Fund. Certain non-profit organizations known as Community Housing Development Organizations (CHDOs) may also apply for funding from the State Department of Housing and Community Development for housing projects located within Palo Alto.
O
ther local resources that support housing and community development programs include:
• P
alo Alto Commercial Housing Fund, which is for the development of workforce units and paid by mitigation fees on commercial and industrial projects; and
• Palo Alto Residential Housing Fund, which is for the development of below market rate (BMR) housing units and paid by miscellaneous funding sources.
T
he City will continue to seek opportunities for projects that meet local bond requirements in order to bring additional resources to help the City’s affordable housing shortage.
If appropriate, describe publicly owned land or property located within the jurisdiction that may be used to address the needs identified in the plan
The City of Palo Alto's 2023–2031 Housing Element includes a strategic initiative to redevelop city-owned surface parking lots, particularly in the downtown area, to support affordable housing development. This approach aims to utilize underutilized public land to meet the city's housing goals. The City plans to issue requests for information (RFIs) to explore public-private partnerships for redevelopment, conduct parking studies Item 15
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to assess current usage, and evaluate opportunities for reconfiguring or replacing parking as needed. A schedule of actions will be developed to guide implementation, with clear milestones to ensure accountability and progress toward the City's RHNA goals.
Discussion
HUD allocations are critical to overcoming barriers; however, they are not sufficient to address all the needs of LMI households. Therefore, the City will continue to leverage other funding sources to provide services to populations in need.
C
urrently, the City is not eligible to receive direct funding under the HOME Investment Partnership Act, Emergency Solutions Grant, or Housing Opportunities for Persons with AIDS.
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Annual Goals and Objectives
AP-20 Annual Goals and Objectives - 91.420, 91.220(c)(3)&(e) Goals Summary Information
Sort
Order
Goal Name Start
Year
End
Year
Category Geographic
Area
Needs Addressed Funding Goal Outcome Indicator
1 Affordable housing
supply and
condition
2025 2029 Affordable
Housing
Citywide Affordable
Housing
CDBG:
$73,585.00
Homeowner units
rehabilitated: 5 units
2 Respond to
Homelessness and
Risk of
Homelessness
2025 2029 Homeless Citywide Homelessness CDBG:
$35,000.00
Public service activities
other than Low/Moderate
Income Housing Benefit:
450 Persons Assisted
3 Strengthen
Neighborhoods
2025 2029 Non-Homeless
Special Needs
Non-Housing
Community
Development
Citywide Community
Services and
Public
Improvements
CDBG:
$396,983.15
Public service activities
other than Low/Moderate
Income Housing Benefit: 74
Persons Assisted
Public Facility or
Infrastructure Activities
other than Low/Moderate
Income Housing Benefit:
6,681 Persons Assisted
Other: 2 Other
4 Increase
Opportunities for
Workforce
Development
2025 2029 Non-Housing
Community
Development
Citywide Economic
Development
CDBG:
$72,000.00
Businesses Assisted: 9
businesses
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Sort
Order
Goal Name Start
Year
End
Year
Category Geographic
Area
Needs Addressed Funding Goal Outcome Indicator
5 Supportive Services
for Low Income
Households
2025 2029 Non-Homeless
Special Needs
Non-Housing
Community
Development
Citywide Community
Services and
Public
Improvements
Tenant Assistance
Services
CDBG:
$34,570.85
Public service activities
other than Low/Moderate
Income Housing Benefit:
112 Persons Assisted
Table 6 – Goals Summary
Goal Descriptions
1 Goal Name Affordable housing supply and condition
Goal
Description
Assist in the creation and preservation of affordable housing for low-income and special needs households. 2 Goal Name Respond to Homelessness and Risk of Homelessness Goal
Description
Prevent and end homelessness, such as funding affordable housing opportunities, resource centers for homeless individuals, and support for tenants of single-room occupancy units. 3 Goal Name Strengthen Neighborhoods
Goal
Description
Provide community services and public improvements to benefit low-income and special needs households. This includes assisting those with disabilities to transition from unstable housing to permanent housing, supporting residents of long- term care facilities, and supporting individuals experiencing domestic violence. 4 Goal Name Increase Opportunities for Workforce Development Goal
Description
Support economic development activities that promote employment growth and help lower-income people secure and maintain jobs. This includes funding nonprofits working toward developing the skills of low-income and homeless individuals.
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5 Goal Name Supportive Services for Low Income Households Goal
Description
Provide supportive services to low-income households through bolstering case management and navigation of services including legal assistance and tenant/landlord resolution.
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AP-35 Projects - 91.420, 91.220(d)
Introduction
The Consolidated Plan goals represent high priority needs for the City of Palo Alto and serve as the basis for the strategic actions the City undertakes to meet these needs.
# Project Name
1 2026 Project Sentinel - Fair Housing Services
2 2026 Upwards
3 2026 Rebuilding Together Peninsula - Safe at Home
4 2026 SVILC Case Management
5 2026 Next Door Solutions to Domestic Violence
6 2026 Catholic Charities Long Term Care Ombudsman Program 7 2026 LifeMoves Case Management
8 2026 Rotacare Bay Area Mobile Clinic
9 2026 YWCA
10 2026 Planning and Administration
11 2026 ADA Curbs Ramps
12 2026 Peninsula Healthcare Connection Rehabilitation
13 2026 La Comida Food Assistance
T
able 7 – Project Information
Describe the reasons for allocation priorities and any obstacles to addressing underserved needs The City awards CDBG funding to projects and programs that primarily benefit low-income, homeless, and special needs households. Projects Item 15
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are only considered for funding within the Consolidated Plan period if they address the goals cited in the plan.
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AP-38 Project Summary
Project Summary Information
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1 Project Name 2026 Project Sentinel - Fair Housing Services Target Area Citywide
Goals Supported Supportive Services for Low Income Households Needs Addressed Community Services and Public Improvements Funding CDBG: $16,250.00
Description Fair Housing Services. Eligible Activity (Matrix Code): O5J, Fair Housing Activities CDBG National Objective: LMC 24 CFR 570.208(a)(2)
Target Date 6/30/2027
Estimate the number and
type of families that will
benefit from the proposed
activities
12 unduplicated low and moderate income individuals will be provided with fair housing services of complaint counseling, investigation, and where appropriate enforcement referral.
Location Description Citywide
Planned Activities Project Sentinel will provide comprehensive fair housing services of investigation, counseling, and legal referrals for victims of housing discrimination; community education and outreach regarding fair housing law; and analyses for City staff and officials regarding fair housing practices and trends. We provide proactive fair housing education to housing providers to avoid costly violations and reactive enforcement investigations when violations are alleged. 2 Project Name 2026 Upwards
Target Area Citywide
Goals Supported Increase Opportunities for Workforce Development Needs Addressed Economic Development
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Funding CDBG: $72,000.00
Description WeeCare/Upwards assists Family Childcare Home microenterprise businesses and will provide business improvement services to such businesses in the City. Eligible Activity (Matrix Code): 18C Economic Development: Micro-Enterprise Assistance. CDBG National Objective LMC Target Date 6/30/2027
Estimate the number and
type of families that will
benefit from the proposed
activities
9 daycare microenterprises will benefit from this project.
Location Description Citywide
Planned Activities WeeCare/Upwards is a for-profit organization. Project activities would support their specific BOOST program for low-income Family Child Care Home (FCCH) providers in Palo Alto. The BOOST program provides specialized technical assistance and business support for income qualifying FCCH’s. Training includes the utilization of the Child Management System (CCMS), aimed at helping providers create work plans, set goals, enhance capacity, and generate revenue to achieve service and operational objectives. The BOOST program addresses various aspects such as family matching, children's program enrollment, tuition collection, weekly curriculum, licensing regulations, program expansion, and staff recruitment. The intent is to assist small businesses in implementing best practices for organizational growth and sustainability, ultimately supporting low to moderate-income families served by FCCH. 3 Project Name 2026 Rebuilding Together Peninsula - Safe at Home Target Area Citywide
Goals Supported Affordable housing supply and condition Needs Addressed Affordable Housing
Funding CDBG: $73,585.00
Description Eligible Activity (Matrix Code): 14A, Objective LMH Item 15
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Estimate the number and
type of families that will
benefit from the proposed
activities
5 LMI households will benefit from home improvements.
Location Description Citywide
Planned Activities RTP project activities preserve affordable housing by transforming homes at no cost to the service recipient. The majority of the low-income homeowners served will be elderly seniors and/or people with disabilities, who are physically and/or financially unable to maintain safe living conditions for themselves and their families. Funding covers the costs of home repair, such as construction materials and payment of subcontractors.
4 Project Name 2026 SVILC Case Management
Target Area Citywide
Goals Supported Strengthen Neighborhoods
Needs Addressed Community Services and Public Improvements Funding CDBG: $15,750.00
Description Case Management. Eligible Activity (Matrix Code): 05B, Handicapped Service, Objective LMC Target Date 6/30/2027
Estimate the number and
type of families that will
benefit from the proposed
activities
24 unduplicated Palo Alto residents will benefit from one-on-one housing assistance.
Location Description Citywide
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Planned Activities The Housing Assistance and Emergency Services for Persons with Disabilities program assists very low- income Palo Alto residents with disabilities or chronic health conditions and their families in their housing search for affordable, accessible housing. The program provides education and training on all aspects of how to conduct a housing search to transition from homelessness, health care facilities, or unstable, temporary housing into safe, long-term community-based housing. It includes group workshops, one-on-one service training, and access to IL (Independent Living) services, including emergency food assistance, security deposits/rent (as available funding allows), information, and referral, to ensure long-term sustainability of housing. 5 Project Name 2026 Next Door Solutions to Domestic Violence Target Area Citywide
Goals Supported Supportive Services for Low Income Households Needs Addressed Community Services and Public Improvements Funding CDBG: $6,500.00
Description Eligible Activity (Matrix Code): 05G, Services for victims of domestic violence, Objective LMC Target Date 6/30/2027
Estimate the number and
type of families that will
benefit from the proposed
activities
20 unduplicated Palo Alto residents will benefit from client centered services.
Location Description Citywide
Planned Activities Assist Palo Alto residents identifying as victims/survivors of domestic/intimate partner violence (DV) will receive client-centered services through Community Support Advocacy: crisis intervention counseling, risk assessment, safety planning, legal advocacy and attorneys, restraining order assistance, case management, other support services through walk-in or virtual; Support Groups; Emergency Shelter and 24/7 Crisis Hotline.
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6 Project Name 2026 Catholic Charities Long Term Care Ombudsman Program Target Area Citywide
Goals Supported Strengthen Neighborhoods
Needs Addressed Community Services and Public Improvements Funding CDBG: $6,500.00
Description Eligible Activity (Matrix Code): 05A, Senior Services, Objective: LMC Target Date 6/30/2027
Estimate the number and
type of families that will
benefit from the proposed
activities
The program will provide advocacy and complaint investigation for 50 elderly residents of long-term care facilities in Palo Alto.
Location Description Citywide
Planned Activities Catholic Charities’ Long-Term Care Ombudsman Program (LTCOP) project activities include regular contact with Palo Alto Residential Care Facilities to observe and monitor conditions of care and handle and resolve issues regarding residents’ rights, unmet needs, allegations of abuse, and complaints effectively, thus promoting resident well-being.
7 Project Name 2026 LifeMoves Case Management
Target Area Citywide
Goals Supported Respond to Homelessness and Risk of Homelessness Needs Addressed Homelessness
Funding CDBG: $30,500.00
Description Eligible Activity (Matrix Code): 03T, Operating Costs of Homeless/AIDS Patients Programs, Objective LMC
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Target Date 6/30/2027
Estimate the number and
type of families that will
benefit from the proposed
activities
350 unduplicated individuals (homeless and/or very low-income individuals per year) will receive case management services, including assistance with housing/job searches, referrals, and mentoring Location Description Citywide
Planned Activities LifeMoves project activities include continuing and expand case management and supportive day services for individuals experiencing homelessness in Palo Alto at the Opportunity Services Center (OSC), in alignment with the City of Palo Alto’s Consolidated Plan and funding priorities. The project will provide intensive, client-centered case management to support participants in accessing permanent housing, increasing income and benefits, and achieving long-term self-sufficiency. In addition, the OSC will offer essential day services including food, clothing, shower(s), and laundry (dryer) that address immediate basic needs, reduce barriers to engagement, and provide a stable point of access to housing- focused services for unsheltered and highly vulnerable residents. 8 Project Name 2026 RotaCare Bay Area Mobile Clinic
Target Area Citywide
Goals Supported Respond to Homelessness and Risk of Homelessness Needs Addressed Homelessness
Funding CDBG: $4,500.00
Description Eligible Activity (Matrix Code): 03T: Homeless Programs, Objective LMC Target Date 6/30/2027
Estimate the number and
type of families that will
benefit from the proposed
activities
100 individuals assisted
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Location Description Citywide
Planned Activities This project provides free, accessible medical services to under and uninsured individuals to reduce barriers to essential care. Services will be delivered through our RotaCare Rotary Mobile Medical Clinic, with follow up care available at our San Jose clinic when the unit is not deployed within the Palo Alto area to ensure continuity of care. Project activities include adult primary care such as evaluation of acute medical concerns and preventative health services, along with prescription refills and laboratory testing at Quest Diagnostics. The project will also provide referrals for imaging studies, specialist consultations, diabetic retinal screening, and connections to additional community resources. Diabetic patients will have access to diabetic self-management classes to support long term health outcomes. 9 Project Name 2026 YWCA
Target Area Citywide
Goals Supported Supportive Services for Low Income Households Needs Addressed Community Services and Public Improvements Funding CDBG: $5,500.00
Description Eligible Activity (Matrix Code): 05G, Services for Victims of Domestic Violence, Objective LMC Target Date 6/30/2027
Estimate the number and
type of families that will
benefit from the proposed
activities
40 individuals assisted
Location Description Citywide
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Planned Activities YWCA Golden Gate Silicon Valley (YWCA GGSV) provides essential domestic violence (DV) services, including a 24-hour English & Spanish Support Line (250+ additional languages through interpretation service), crisis counseling and support groups for adults and children, emergency shelter and housing services, over the phone response to law enforcement calls, personal advocacy, individual therapy, transportation, criminal justice and social services advocacy, temporary restraining orders, court accompaniment, household establishment assistance, children’s programming, and workforce development services. Our services are survivor-centered, trauma-informed, culturally responsive, and coordinated.
10 Project Name 2026 Planning and Administration
Target Area Citywide
Goals Supported Strengthen Neighborhoods
Needs Addressed Affordable Housing
Homelessness
Community Services and Public Improvements
Tenant Assistance Services
Economic Development
Funding CDBG: $122,427.80
Description Eligible Activity (Matrix Code): 21A, General Program Administration Planning and Administration Target Date 6/30/2027
Estimate the number and
type of families that will
benefit from the proposed
activities
The City will provide general administrative support to the CDBG program.
Location Description Citywide
Planned Activities CDBG program administration
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11 Project Name 2026 ADA Curb Ramps
Target Area Citywide
Goals Supported Strengthen Neighborhoods
Needs Addressed Community Services and Public Improvements Funding CDBG: $172,335.35
Description Eligible Activity (Matrix Code): 03L, Sidewalks, Objective LMC Target Date 6/30/2027
Estimate the number and
type of families that will
benefit from the proposed
activities
6,681 severely disabled adults assisted
Location Description Citywide
Planned Activities This Public Works project will provide ADA curb ramps within the City for the benefit of severely disabled adult residents.
12 Project Name 2026 Peninsula Healthcare Connection Rehabilitation Target Area Citywide
Goals Supported Strengthen Neighborhoods
Needs Addressed Community Services and Public Improvements Funding CDBG: $79,970.00
Description Eligible Activity (Matrix Code): 03E, Neighborhood Facilities, Objective LMC Target Date 6/30/2027
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Estimate the number and
type of families that will
benefit from the proposed
activities
TBD once completed
Location Description Citywide
Planned Activities This project will refurbish and transform PHC’s newly acquired house at 51 Encina Avenue into a dedicated facility for behavioral health, therapy, and addiction treatment services. This historic property, located in the heart of Palo Alto, presents an opportunity to expand essential healthcare services for our unhoused, low-income, and undocumented neighbors. Funding requested here is focused on pre-construction phase activities.
13 Project Name 2026 La Comida Food Assistance
Target Area Citywide
Goals Supported Supportive Services for Low Income Households Needs Addressed Community Services and Public Improvements Funding CDBG: $6,320.85
Description Eligible Activity (Matrix Code): 05W, Food Banks, Objective LMC Target Date 6/30/2027
Estimate the number and
type of families that will
benefit from the proposed
activities
40 individuals assisted
Location Description Citywide
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Planned Activities La Comida provides healthy meals, resources, and a warm environment each weekday. We will also engage and energize Palo Alto residents to support and volunteer for senior needs, causes, and projects. This project will support the needs of the growing population of seniors who are now accessing the services of La Comida.
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AP-50 Geographic Distribution - 91.420, 91.220(f)
Description of the geographic areas of the entitlement (including areas of low-income and minority concentration) where assistance will be directed
The City allocates CDBG funds to benefit low-moderate income (LMI) households and does not have any designated target areas. Instead, the City focuses CDBG funds on public services, housing preservation, economic development-business assistance, and capital improvements across the City as a whole.
Geographic Distribution
Target Area Percentage of Funds
Citywide 100
Table 8 - Geographic Distribution
Rationale for the priorities for allocating investments geographically N/A
Discussion
N/A
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AP-75 Barriers to affordable housing -91.420, 91.220(j) Introduction
The City of Palo Alto is committed to providing equitable opportunities to all residents of Palo Alto in order to expand access to housing and increase housing mobility. The City will take action to overcome patterns of segregation, address disparities in housing needs and access to opportunity, and foster inclusive communities. The City’s Housing Element contains a list of actions established to reduce the barriers to affordable housing, including but not limited to racial inequities, high housing and land costs, regulatory constraints, and public resistance.
Currently the City is experiencing a constrained housing supply market, so when housing developments produce housing units that are considered “relatively” affordable, higher-income buyers and renters outbid lower-income households. Subsequently, a home’s final sale or rental price may exceed the projected sales or rental costs. Public subsidies are often needed to guarantee affordable homes for low- and moderate-income households.
T
he City wants to ensure adequate planning is undertaken to provide its “fair share” of affordable and market-rate housing, demonstrating a strategy for removing barriers to increase housing production that addresses today’s housing shortage.
To address the requirements of AB 686, the City participated in the 2025-30 Santa Clara County Consolidated Plan (ConPlan). The County’s ConPlan identifies five goals for the County and each of its participating jurisdictions, including Palo Alto. Additionally, the ConPlan identifies regional and local barriers to fair housing around the region, with heavy emphasis on racial and economic disparity, land use and zoning, and lack of assistance and resources. Programs were identified to reduce barriers in the City, including adjusting zoning amendments to expand affordable and alternative housing opportunities and increasing accessibility to information.
Actions it planned to remove or ameliorate the negative effects of public policies that serve as barriers to affordable housing such as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charges, growth limitations, and policies affecting the return on residential investment Palo Alto is addressing the barriers to affordable housing through:- Density Bonus Ordinance: City lowered eligibility requirements, allowing up to an 80% density bonus and provided more exceptions to applicable zoning and development standards. Notably, if 100% affordable development is within half a mile of a major transit stop, City cannot impose any density limits and is entitled to a maximum height increase of Item 15
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three additional stories or 33 feet.
-R
emove Density requirements in certain zoning districts. -Be
low Market Rate (BMR) Housing Program: 1974 Developers must allocate a percentage of units as BMR housing in approved project of 3 units or more. The program originally required that for developments on sites of less than 5 acres, the developer must provide 15% of the total housing units as BMR housing units. If the site was larger than 5 acres, the developer was required to provide 20% of the units as BMR housing.
The City of Palo Alto has historically used in-lieu fees & development impact fees charged on new, market-rate housing and/or commercial d
evelopment to finance 100% affordable developments. Updated Commercial and Residential Impact Fee Nexus Studies and adopted two ordinances making changes to its BMR program and adopted a new fee structure, effective 06/19/2017. -F
air Housing: Protect tenants from displacement through more robust tenant protections and better access to legal services. City provides CDBG funding to Project Sentinel, a non-profit entity that provides expertise in fair housing law and tenant-landlord disputes. Program services include information, referrals, community outreach, and education. Project Sentinel resolves fair housing complaints via investigation, mediation, education, and outreach to both property owners and tenants about fair housing policies. Increase access to lending opportunities for residents of historically low-income communities of color. -H
ousing Incentive Program (HIP): Effective 05/02/2019, an alternative to the State Density Bonus law and provides development incentives including no housing density restrictions, increased floor area ratios, and increased lot coverage. HIP is available to specific areas of the City where higher-density development is encouraged. - Affordable Housing (AH): 2018, City Council adopted Affordable Housing Combining District to provide flexible development standards beyond the State Density Bonus Law to allow 100% affordable housing projects located in a commercially zoned area.
-W
orkforce Housing (WH): 2018, Encourages housing near rail transit by modifying development standards by modifying flexible development s
tandards for the public facilities (PF) zoning district. The average Palo Alto home, as of 02/01/2023, costs about 8 times the national average home price, and the monthly rent is about 2.5 times the national average. -A
ccessory Dwelling Units and Junior Accessory Dwelling Units: City amended its Ordinance Title 18, which included “the development of a single-family home, ADU, and/or a JADU on a lot that allows for single-family development shall not be considered a multifamily development, Item 15
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nor shall they require Architectural Review pursuant to other sections of Chapter 18. -C
ity Amended Chapter 9.68 (Rental Housing Stabilization) of the Municipal Code to expand just cause eviction protections to renters, including r
educing the minimum time period required for renters to qualify for just cause eviction protections.
Discussion
NA
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AP-85 Other Actions - 91.420, 91.220(k)
Introduction
The following provides a description of today's obstacles and or barriers to meeting LMI or underserved populations, including vulnerable populations, housing preservation needs, lead -paint issues, increased earning capacity for LMI households, city delivery structure for supporting needed services, and regional approaches to serving and helping the homeless populations.
Actions planned to address obstacles to meeting underserved needs The City collaborative works with social service providers, affordable housing developers, housing preservation entities, fair housing, and homeless assistance agencies to address obstacles to permanent housing for all residents. To address this, the City supplements its CDBG funding with other resources and funds, such as: To address this, the City supplements its CDBG funding with other resources and funds, such as:
• S
upport social services entities including RotaCare and Catholic Charities that provide needed supportive services for extremely low-income and or elderly residents. • In FY 2025-26, the City’s Human Service Resource Allocation Process (HSRAP) provided about $600,000 from the General Fund in support of human services. The HSRAP funds, in conjunction with the CDBG public service funds, are distributed to local non-profit agencies. • Support low income persons with disabilities. Provide CDBG funds to Silicon Valley Independent Living Center (SVILC) with case management needs.
• Support the city’s homeless population through CDBG awards and other funding sources to LifeMoves Shelter
• The Housing Authority of the County of Santa Clara (HACSC) administers the federal Section 8 p
rogram countywide. The program provides rental subsidies and develops affordable housing for low-income households, seniors and persons with disabilities living within the County.
Actions planned to foster and maintain affordable housing The City will foster and maintain affordable housing by continuing the following programs and ordinances:
• S
upport low income homeowners through annual CDBG allocations for housing rehabilitation.
Provide CDBG funds to Rebuilding Together Peninsula to preserve existing affordable housing stock. The City is also planning an affordable housing rehabilitation and replacement project, Buena Vista Mobile Home Park that will benefit approximately 270 residents. • A
nnual CDBG allocations to Rebuilding Together Peninsula to preserve existing affordable Item 15
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housing stock.
• The Below Market Rate Emergency Fund, which provides funding on an ongoing basis for loans to BMR owners for special assessment loans and for rehabilitation and preservation of the City’s stock of BMR ownership units.
• Apply to both the State of California HOME program, and the County’s HOME Consortium to fund supported affordable housing projects.
• The Commercial Housing Fund and Residential Housing Fund are used by the City to assist new housing development or the acquisition, rehabilitation, or the preservation of existing housing for affordable housing.
• The Density Bonus Ordinance regulations allow for bonuses of 20 to 35 percent, depending on the amount and type of affordable housing provided.
• The City is collaborated with Santa Clara County and Eden Housing in the development of Michell Park Place, a new affordable housing development project providing 50 affordable units located in one of the City’s LMI census tracts. This development opened in winter of 2025. • The City awarded $5M to Charities Housing in 2025 to support the development of a 100% affordable housing development (130-units) serving low-income households. • The City’s participation in the County's HOME Consortium will allow developers of affordable housing projects to be eligible to competitively apply through an annual RFP process directly to the County for HOME funds to help subsidize affordable housing projects in Palo Alto, including ac
quisition, construction, and rehabilitation.
Actions planned to reduce lead-based paint hazards
The City’s housing and CDBG staff provides technical assistance, information, and referrals to property owners, developers, and non-profit organizations rehabilitating older housing about lead-based paint (LBP) hazards. Any house to be rehabilitated with City financial assistance is required to be inspected for the existence of LBP and LBP hazards. The City will provide financial assistance for the abatement of LBP hazards in units rehabilitated with City funding. The City also requires that contractors be trained and certified in an effort to decrease the risk of potential use of LBP in new units. All development and rehabilitation projects must be evaluated according to HUD’s Lead Safe Housing Rule 24 CFR Part 35.
Rebuilding Together Peninsula, through its housing rehabilitation program, ensures each rehab includes lead-based paint assessment and mitigation on impacted areas for each housing case.
Actions planned to reduce the number of poverty-level families The City, in its continuing effort to reduce poverty, will prioritize funding agencies that provide direct assistance to the homeless and those in danger of becoming homeless. In FY 2026-27, all CDBG Item 15
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programs will work at reducing the number of poverty-level families in Palo Alto.
Actions planned to develop institutional structure
The administration of the City’s CDBG program requires collaboration between several departments including the finance department, administration, Human Services, and Planning and Development Services Department staff. The Planning and Development Services Department assigns critical staff to manage project development, subrecipient contracting and technical assistance, consultant management, collaboration with public works department staff, and fund draws and activity spending.
The Finance Department assists in the process by reconciling CDBG and City budget accounts and drawdown approvals. The Human Relations Commission and Council hold public hearings and recommend recommendations and final approvals of annual CDBG project activities and projects.
T
he City strives to improve intergovernmental and private sector cooperation to synergize efforts and resources and develop new revenues for community service needs and affordable housing production.
Collaborative efforts include:
• R
egular meetings between entitlement jurisdictions at the CDBG Housing Coordinators meetings and Regional Housing Working Group.
• Joint jurisdiction Request for Proposals and project review committees. • Collaborations between the City’s housing and public works departments. • Coordination on project management for projects funded by multiple jurisdictions. • HOME Consortium meetings between member jurisdictions for affordable housing projects.
Actions planned to enhance coordination between public and private housing and social service agencies
City will continue participation in HOME consortium meetings with County, consortium members, and other local service and housing providers to discuss housing and community development topics.
Discussion
NA
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Program Specific Requirements
AP-90 Program Specific Requirements - 91.420, 91.220(l)(1,2,4) Introduction
Community Development Block Grant Program (CDBG) Reference 24 CFR 91.220(l)(1) P
rojects planned with all CDBG funds expected to be available during the year are identified in the Projects Table. The following identifies program income that is available for use that is included in projects to be completed.
Community Development Block Grant Program (CDBG)
Reference 24 CFR 91.220(l)(1)
Projects planned with all CDBG funds expected to be available during the year are identified in the Projects Table. The following identifies program income that is available for use that is included in projects to be carried out.
1. The total amount of program income that will have been received before the start of the next program year and that has not yet been reprogrammed 0
2. The amount of proceeds from section 108 loan guarantees that will be used during the year to address the priority needs and specific objectives identified in the grantee's strategic plan. 0
3. The amount of surplus funds from urban renewal settlements 0
4. The amount of any grant funds returned to the line of credit for which the planned use has not been included in a prior statement or plan 0
5. The amount of income from float-funded activities 0
Total Program Income: 0
O
ther CDBG Requirements
1. The amount of urgent need activities 0
2. The estimated percentage of CDBG funds that will be used for activities that benefit persons of low and moderate income. Overall Benefit - A consecutive period of one, two or three years may be used to determine that a minimum overall benefit of 70% of CDBG funds is used to benefit persons of low and moderate income. Specify the years covered that include this Annual Action Plan. 100.00% D
iscussion
NA
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Resolution No. _______________
Resolution of the City Council of the City of Palo Alto Approving The Use of Community Development Block Grant Funds for
Fiscal Year 2026-2027
A. On June 9, 2025, the Palo Alto City Council approved and adopted a document entitled “Consolidated Plan” which identified and established the Palo Alto housing an d non-housing community development needs, objectives and priorities for the period July 1, 2025, to June 30, 2030.
B. The Fiscal Year 2026-2027 Annual Action Plan, the annual funding update to the Consolidated Plan, was subjected to public review and commentary during the period from May 1, 2026, through May 31, 2026.
C. The potential uses of Community Development Block Grant (CDBG) funds were evaluated in light of the needs and objectives identified in the Consolidated Plan and reflected in the recommendations and comments of the Human Relations Commission Selection Committee, Human Relations Commission, and other interested citizens.
D. Under the CDBG program, the highest priority is given to activities which will benefit persons with low and moderate incomes.
E. The City Council and the Human Relations Commission have held publicly noticed public hearings on the proposed uses of the CDBG funds for Fiscal Year 2026-2027.
F. CDBG funds allocated to the City for Fiscal Year 2026-2027 are proposed to implement the programs described in this resolution.
NOW, THEREFORE, the Council of the City of Palo Alto does RESOLVE as follows:
SECTION 1. The uses of CDBG funds for Fiscal Year 2026-2027 are hereby approved and authorized for the following programs:
Name of Program Amount
1. Catholic Charities of Santa Clara County – Long Term Care Ombudsman Program. Advocate for the rights of seniors and disabled residents in long term care facilities.
$6,500
2. LifeMoves – Opportunity Services Center. Provide case management services to Opportunity Services Cente r clients, specifically with locating housing and/or employment and benefits counseling.
$30,500
3. Silicon Valley Independent Living Center – Housing and Emergency Services.
Provide case management services to low-income individuals with disabilities to secure affordable and accessible housing.
$15,750
4. Project Sentinel – Fair Housing Services. Provide fair housing services including complaint investigation, counseling, advocacy and community education
$16,250
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5. La Comida – provide food assistance, resources and social engagement opportunities for the older adult community. $6,320.85
6. Next Door Solutions to Domestic Violence – assist residents identifying as victims of domestic violence by providing crisis intervention counseling and other critical services.
$6,500
7. YWCA – provide essential domestic violence services, including crisis counseling and emergency shelter and housing services. $5,500
8. RotaCare Bay Area Mobile Clinic – provide case management services for individuals experiencing homelessness. $4,500
9. Peninsula Healthcare Connection Rehabilitation – funds will refurbish a facility dedicated to providing behavioral health, therapy and addiction treatment services.
$79,970
10. ADA curb cut-City of Palo Alto – major curb ramp improvement project that will bring many ramps up to current ADA accessibility standards. $172,335.35
11. WeeCare/Upwards - a micro-enterprise project that will provide Palo Alto home childcare business improvement services. $72,000
12. Rebuilding Together Peninsula – Safe at Home. Provision of critical health and safety related home repair needs for low-income Palo Alto homeowners.
$73,585
13. CDBG Program Planning and Administration. $122,427.80 $612,139
SECTION 2. The total amount set forth under Section 1 of this resolution represents the proposed allocation of $512,139, in CDBG funds from the United States Department of Housing and Urban Development (HUD) for Fiscal Year 2026-2027, and $100,000, in anticipated program income for Fiscal Year 2025-2026 from Alta Housing.
SECTION 3. The City staff is hereby authorized to submit the Fiscal Year 2026-2027 Annual Action Plan, update and appropriate funding to HUD for the Fiscal Year 2026-2027 CDBG funds, and such money shall be spent as set forth in this resolution. The Mayor, City Manager, and any other designated City staff or officials are hereby authorized to execute such application forms and any other necessary documents to secure these funds. The City Manager or designee is authorized to sign all necessary grant agreements with the program providers set forth in Section 1.
SECTION 4. The funding amounts set forth in Section 1 of this resolution are based on final allocation amounts from the Federal Fiscal Year 2026-27 HUD appropriations; City Staff is authorized to adjust increasing or decreasing the funding amounts set forth herein as consistent with the adopted Citizen Participation Plan.
SECTION 5. The City Council hereby fi nds that the Fiscal Year 20 26-2027 CDBG program authorized under Section 1 of this resolution is not a project under the California Environmental Quality Item 15
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Act (CEQA). However, the Council further authorizes and directs City staff to prepare certifications that may be required, under CEQA and the National Env ironmental Policy Act (NEPA), for each project under the Fiscal Year 2026-2027 CDBG program prior to the release of funds for any such project.
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INTRODUCED AND PASSED:
AYES:
NOES:
ABSTENTIONS:
ABSENT:
ATTEST: APPROVED:
City Clerk Mayor
APPROVED AS TO FORM:
City Manager
Sr. Assistant City Attorney Director of Planning and
Development Services
APPROVED AS TO CONTENT:
Director of Administrative Services
CDBG Program Manager
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City Council
Staff Report
From: City Manager
Report Type: ACTION ITEMS
Lead Department: City Manager
Meeting Date: June 1, 2026
Report #:2602-6010
TITLE
Outdoor Activation Standards, Pre-Approved Parklet Plans and Public Space Design Concept for the Car-Free Portion of California Avenue; and FIRST READ: Adopt an Ordinance Amending the Sign Code to Streamline Permitting of Signs in Conjunction with a Parklet; CEQA Status - Exempt pursuant to CEQA Guidelines Section 15303.
RECOMMENDATION
Staff recommends that the City Council:
1. Approve the Outdoor Activation Standards and encroachment permit requirements for the car-free portion of California Avenue as documented in Attachment A.
2. Approve the Pre-approved Parklet Plans with standardized parklet designs for California Avenue summarized in Attachment B.
3. FIRST READ: An ordinance amending the Sign Code (PAMC section 16.20.160) to allow parklet permittees to post certain types of parklet signs in compliance with the Outdoor Activation permit standards in lieu of the Sign Code’s default review process; see Attachment C.
4. Approve the proposed public space design concept outlined in Attachment D.
EXECUTIVE SUMMARY
This Staff Report presents for City Council consideration the Proposed Outdoor Activation Standards, Pre-Approved Parklet Plans, a Sign Code amendment to streamline parklet signage permits, and a pedestrian-priority public space design concept for the car-free portion of California Avenue.
On April 16, 2026, the ARB recommended the approval of the Outdoor Activation Standards and Pre-approved Parklet Plans by a 5-0 vote and expressed strong support for the public space design concept.
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The proposed Outdoor Activation Standards, Attachment A, enhance the commercial district’s vibrancy and economic vitality by enabling outdoor dining, retail display and related activation while ensuring spaces remain accessible, safe, equitable, and well-designed. Compared to the City’s existing parklet program, the proposed program expands beyond parklets to include a broader range of outdoor activation types, including parklets, café seating, and retail displays, and establishes California Avenue specific design standards and pre-approved parklet plan set (Attachment B) to reduce design costs, expedite permitting, and support year-round use.
The proposed Sign Code amendment, Attachment C, streamlines approval of parklet-related signage through the parklet encroachment permit process, rather than requiring a separate sign permit and potential Architectural Review Board approval. The amendment would exclude parklet signage from a business’s approved sign area and number limits.
Based on the Economic Development Committee’s discussion and feedback (Attachment E), staff revised the a pedestrian-priority public space concept (Attachment D) where bicycles are allowed for the car-free portion of California Avenue, as an innovative means of implementing City Council direction to incorporate a two-way slow bike lane on the street.
The revised concept has received positive feedback from the ARB, merchants and community members as an improvement from the previously designed two-way slow bike lane design. The public space concept prioritizes space for pedestrians, eliminates standard bicycle pavement markings, and uses ground plane texture as ‘traffic calming’ to reduce cyclists speeds, and maintains a through bicycle route for commuters and safe routes to school users.
Staff has conducted outreach with merchants and community members regarding Outdoor Activation, Pre-Approved Parklet Plans and public space design, generally receiving positive feedback, refer to the Stakeholder Engagement section for details.
BACKGROUND
The following background summarizes prior City Council actions, Economic Development Committee direction, Architectural Review Board recommendations and outreach that informed the actions before City Council.
On March 10, 2025, the City Council permanently closed the car-free portions of California Avenue (and Ramona Street), amending the Comprehensive Plan to create a new “community street” classification for California Avenue.
On June 17, 2025, the City Council considered the Outdoor Activation Program, expressed a desire for changes, and directed staff to:
Develop revised standards for outdoor activation, specifically permitting parklet structures for California Avenue.
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• Utilize the ARB for design recommendations and review process for standard and custom designs (to support year-round outdoor dining).
• Pursue edge materials in addition to planters.
• Look at a street design that would allow for outdoor seating amounts and square footage at or close to the current amount that exists on California Avenue.
At its March 18, 2026 meeting, the Economic Development Committee directed staff to develop a pedestrian-priority public space concept that allows bike access, rather than a two- way slow bike lane, see Attachment F. Committee members noted that dedicated bike lanes could encourage higher speeds and decrease pedestrian discomfort and safety. They acknowledged that cyclists would use California Avenue, even if bike lanes did not exist.
On April 16, the ARB recommended via a 5-0 vote that City Council approve the Outdoor Activation Standards and Pre-approved Parklet Plans. The ARB expressed strong support for the public space design concept.
Since September 2025, staff has conducted on-going outreach with California Avenue merchants, community members, and other stakeholders on Outdoor Activation and accommodating bicycles on the car free portion of California Avenue. Feedback is supportive of permanent outdoor activation, pre-approved parklets and a pedestrian priority public space design that accommodates bicycle access and addresses safety concerns regarding bicycle speeds. See Stakeholder Engagement section below for details on outreach.
ANALYSIS
Outdoor Activation Program Supports Economic Vitality
Well-designed outdoor activation programs can transform underutilized spaces into valuable placemaking opportunities that increase a commercial district's attractiveness which drives economic vitality. The Outdoor Activation Standards, Attachment A, advance California Avenue’s economic development in the following ways:
1. Expands options for commercial use of the public right-of-way:
• Allows a broad range of investment levels and outdoor dining configurations. • Allows parklets through either pre-approved plans or custom designs. • Supports restaurants and retailers with options to use the sidewalk and roadway.
2. Streamlines permitting:
• Shifts from ARB to staff-level review using objective design standards to streamline approvals.
• Limits Architectural Review Board (ARB) involvement to special/exception cases. • Reduces design and permit review time with pre-approved parklets.
3. Identifies options to improve customer comfort for year-round dining.
4. Maintains storefront visibility to support leasing of retail space.
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5. Provides design guidance on the aesthetics of improvements to support the commercial district as an outdoor dining destination.
6. Prohibits large-format tents, residential fencing, and temporary improvements.
7. Enables equal or greater outdoor dining area (subject to permit requirements and obtaining letters of consent to extend beyond the establishment’s street frontage).
Improvements to the On-going Parklet Program
The proposed Outdoor Activation Standards adapt the City’s Ongoing Parklet Program and update pre-approved parklet plans to encourage commercial activation of car-free California Avenue in the following ways:
1. Supports a wider range of activities with standards and guidance for the layout of parklets, café seating, and retail displays.
2. Activates both roadway and sidewalk.
3. Enables transparent and weather adaptable parklets, rather than requirements for traffic safety, which can obstruct views to storefronts from the roadway.
ARB Ad Hoc Committee
Between October 2025 and March 2026 staff met frequently with an ARB ad hoc committee, consisting of Mousam Adcock and Marton Jojarth, to refine design standards and pre-approved parklet designs. ARB Ad Hoc input focused on:
1. Limiting ARB Review to special cases - rely on staff discretion and reserve full ARB review for special cases.
2. Designing light, airy, and transparent parklets.
3. Reducing the size and appearance of roofs.
4. Enabling three-season weather comfort, that maintains visual openness.
5. Restricting planter heights that maintain visibility.
6. Ensuring high quality, commercial grade materials and finishes.
Pre-Approved Parklet Plans
Proposed pre-approved parklet plans offer businesses a ready-to-use option to reduce design costs, shorten review time, and improve predictability. The plan set includes three base models, with options for enclosure and weather protection:
(1) Cabana, with a sloped roof and overhangs
(2) Pergola, with flat roof, no overhangs and use of steel brackets (3) A roofless parklet, with no area limits
Design adaptations for a car-free environment include lighter, more transparent structures, options for year-round weather, and structural solutions to avoid pavement and sidewalk attachments. The plan set reflects lessons learned from the implementation of the on-going parklet program. For narrow parklets, which are only five feet wide due to the setback for the Item 16
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gas main, the roof can overhang the sidewalk by three feet, effectively creating an eight-foot deep parklet.
A structural innovation - to avoid foundations and attachments to the roadway or sidewalk - is the use of a flat base plate with column connection.
The proposed illustrative plan for outdoor activation (Attachment E) shows a hypothetical build-out where 19 of 20 existing restaurants can locate a pre-approved parklet in front or adjacent to their storefront. The actual buildout of custom and pre-approved parklets will vary in location and size.
Parklet Signage
The purpose of Attachment C, Sign Code Amendment, is to streamline the permitting process by allowing signs of a limited area, number and height to be approved through an encroachment permit, rather than requiring a separate sign permit and potential Architectural Review Board approval. The amendment allows one parklet wall sign and one free standing sandwich board sign, subject the Outdoor Activation Standards and staff review and approval through the parklet permit application process. This avoids a separate sign permit and counting parklet signs towards the area and number limits of the Sign Code in PAMC Chapter 16.20.
Outdoor Dining Area
A key policy objective is to maintain outdoor dining opportunities on California Avenue at levels comparable to or greater than existing conditions.
In 2024, outdoor dining on the car-free portion of California Avenue totaled 12,620 square feet across 20 establishments. In 2025, the total footprint decreased to 10,650 square feet across 19 establishments, reflecting adjustments from post-pandemic levels and the closure of Local Kitchen.
Based on staff analysis, assuming 22 establishments with outdoor dining, the standards will permit 11,746 square feet of outdoor dining area.
When encroachments are included (i.e., for use extending in front of adjacent businesses with consent), the total increases to 13,699 square feet, which exceeds existing conditions both in 2024 and 2025.
Because seating layouts vary by operator, square footage does not directly translate into a seat count. For example, staff estimates - based on 15 square feet per seat as the average on California Avenue - that 22 establishments would generate up to 913 seats, which significantly exceeds the 702 seats from 19 establishments in 2025. It should be noted this additional capacity does not require any building improvements by the permittee to accommodate additional wastewater, restrooms, or fats, oils and grease dispensing – typically significantly costly improvements to support this volume of additional capacity.
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Outdoor Dining / Proposed
Activation
Sidewalks
(SF)
Roadway
(SF)
Total Area
(SF)
# of Dining
Establishments
Outdoor Dining Area in 2024 5,106 7,514 12,620 20
Outdoor Dining Area in 2025 5,168 5,482 10,650 19
Activation Standards 4,801 6,946 11,746 22
Activation Standards with
Encroachments 5,741 7,958 13,699 22
2026 Vacant Space (California
Hotel & 414 California Avenue) 1,945 2,812 4,757 NA Potential Outdoor Activation
All Areas and Uses 12,839 17,940 30,779 NA
Permits
The Outdoor Activation Standards establish that applicants must obtain an Encroachment Permit prior to construction, which is issued by Public Works. The installation must be inspected prior to operation. The City retains discretion to approve, conditionally approve, modify, deny, revoke, or modify permits as needed for public health, safety, welfare, and utility access. The fee structure mirrors the existing parklet program, with an application fee, deposit, renewal fee, and annual license fee charged per square foot.
Public Space Concept for Bikes on California Avenue
At the March 18, 2026, Economic Development Committee meeting, the Committee directed staff to redesign the car-free portion of California Avenue as a pedestrian prioritized public space, where bikes are allowed, rather than a two-way slow bike lane. In response, staff developed the updated concept shown as Attachment D.
The revised concept maintains the shared central accessway for pedestrians, bicyclists, emergency access and service vehicles, while prioritizing the experience of California Avenue as a pedestrian oriented space and outdoor dining destination. The concept relies on changes in direction, surface color and texture to naturally encourage slow bike speeds. Colored thermoplastic bands create a bicycle ‘traffic calming’ texture to the roadway, extending from sidewalk to sidewalk to define the pedestrian zone. The opening between the bands is a smooth paved area that will naturally attract cyclists to ride to avoid the texture bumps. A center line of white dots divides this area for east and west bound cyclists. The center line takes a meandering route to encourage slow cycling speeds.
This updated concept represents a significant departure from the earlier, two-way bicycle lane concept down the center of the street. Feeback from the ARB, merchants and community members has been well supported, particularly in response to concerns that the previous bike Item 16
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lane concept would encourage speeding. This alternative is viewed as a placemaking solution aligned with California Avenue’s role as a pedestrian-oriented commercial destination.
FISCAL/RESOURCE IMPACT
As previously noted, nominal permit and monthly fees will apply to California Avenue's outdoor spaces. If the City Council approves staff's recommendations on June 1, the City will invest an estimated $300,000 to repave the car-free zone and remove traffic markings before new parklets are built. To expedite this project and meet a strict October 2026 weather deadline— after which paving must pause until April 2027—staff are exploring expedited procurement options, including seeking City Council authorization for summer recess contract execution by the City Manager.
Because resurfacing requires the temporary removal of existing outdoor dining, staff will coordinate closely with business owners to schedule parklet disassembly and minimize operational disruptions. While this causes temporary inconvenience, prioritizing the pavement work now creates a durable, high-quality foundation for ongoing parklets, ensuring the shortest possible downtime for outdoor street activation.
Once the street is repaved, a second phase of work could address pedestrian and bicycle improvements, such as a revised bike lane design, expanded sidewalk dining space (via tree grates and realigned bike and newspaper racks), and pedestrian safety signage. Because funding for Phase 2 is not yet appropriated, staff will review the scope and budget during FY 2027. This phased approach allows merchants to safely rebuild and reopen their outdoor spaces with minimal delay. Modifications in this subsequent phase of work can be made in large part with managed impact to the broader use. These improvements could range from $200,000 to $900,000 based on preliminary orders of magnitude cost estimates and ultimately would depend on the final scope of work.
STAKEHOLDER ENGAGEMENT
Since September 2025 staff has conducted on-going outreach with California Avenue merchants, both collectively and individually, to refine the Outdoor Activation Program with operator needs. Key themes heard from merchants included support for a range of investment options; desire for permanent solutions, interest in pre-approved parklets designs, importance of weather protection and customer experience, and safety concerns regarding speeding bikes impacting pedestrian safety.
From September 2025 through April 2026, staff conducted on-going meetings with California Avenue merchants collectively and individually to align the Outdoor Activation Program with Item 16
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merchant desires and concerns. Staff has incorporated merchant feedback along the following themes:
Request to permit a range of investment options.
Interest to invest in permanent solutions when the City Council approves the permanent parklet program.
There is interest in pre-approved parklets.
Desire for additional parklet options where the sidewalk and roadway are level to maximize all weather outdoor dining and minimize impact of gas lines. Intention for best possible customer experience if paying for use of street. Strong concerns regarding speeding bikes impacting pedestrian safety.
Staff met with the California Avenue Farmers’ Market representatives on February 24, 2026, who expressed support for outdoor activation and the importance of maintaining the current number of market stalls. They indicated interest in shared-use parklets that can also support Farmers’ Market artisans.
Staff met with the Pedestrian and Bicycle Advisory Committee (PABAC) on March 3, where Attachment C: California Avenue Potential Pre-Approved Parklet Buildout Illustrative Plan, was presented. There was overall support for the proposal to have an accessway of sufficient width, and to separate two-way slow bike lanes and a pedestrian promenade. PABAC comments included how to encourage cyclists’ use of Cambridge Avenue, location of bike parking, prohibiting e-bikes, and managing bike speeds.
Staff met with Stanford Research Park representatives on March 5, 2026, who affirmed their support for events on California Avenue and enabling outdoor dining on the street.
On March 29, staff tabled the California Avenue Farmers’ Market, to engage with residents on proposed outdoor activation program, and bicycle lanes on California Avenue. Staff met with over 70 community members who expressed strong support for permitting parklets and the need for the safe co-existence of pedestrians and bicyclists on California Ave.
On April 19, staff met with representatives from the Evergreen Park Neighborhood Association and with community members at the City’s Earth Day celebration. There is firm endorsement on the plan to permit parklets and permanent dining on California Avenue as well as positive feedback on the updated public space design concept.
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ENVIRONMENTAL REVIEW
The subject project has been assessed in accordance with the authority and criteria contained in the California Environmental Quality Act (CEQA), the State CEQA Guidelines, and the City’s environmental regulations. Specifically, Council approved an Addendum to the previously adopted Comprehensive Plan EIR on March 10, 2025, which analyzed the closure of the street to cars and associated improvements to activate the car free street. A link to the previously adopted Addendum is available online1.
Adoption of the outdoor activation standards would potentially result in 1,096 square feet of additional outdoor dining area beyond existing conditions, or 3,049 square feet of additional area when including existing encroachments. The impacts of that maximum increase, if it were fully implemented, would be negligible and exempt from CEQA in accordance with CEQA Guidelines Section 15303 for small structures.
ATTACHMENTS
Attachment A: California Avenue Outdoor Activation Standards Attachment B: California Avenue Pre-Approved Parklet Plans Attachment C: Ordinance Amending the Sign Code (PMAC section 16.20.160) Attachment D: Pedestrian Priority Public Space with Bikes Allowed Concept Attachment E: Car Free California Avenue Activation Setback Plan Attachment F: User Guide and Applicant Checklist for Cal Ave Preapproved Parklets APPROVED BY:
Ed Shikada, City Manager
1 Previous Adopted Addendum: https://www.paloalto.gov/files/assets/public/v/1/city-manager/car- free-streets/car-free-ca-and-ramona-eir-addendum-02-2025.pdf Item 16
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OUTDOOR ACTIVATION STANDARDS
City of Palo Alto June 1, 2026
CAR FREE CALIFORNIA AVENUE
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2 Table of Contents CHAPTER 1 — PROGRAM OVERVIEW ...................................................................................... 3 1.1 Introduc-on ......................................................................................................................... 3 1.2 Vision .................................................................................................................................... 3 1.3 Purpose ................................................................................................................................ 3 1.4 Objec-ves ............................................................................................................................. 3 1.5 Outdoor Ac-va-on Types ..................................................................................................... 4 1.6 Defini-ons ............................................................................................................................ 4 CHAPTER 2 — LOCATION, SIZE, SETBACK, USE & OPERATOR REQUIREMENTS .......................... 5 2.1 Loca-on ................................................................................................................................ 5 2.2 Size ....................................................................................................................................... 6 2.3 Setbacks and Clearances ...................................................................................................... 6 2.4 PermiIed Ac-vi-es .............................................................................................................. 7 2.5 Opera-ons and Maintenance Responsibili-es ..................................................................... 8 CHAPTER 3 — DESIGN STANDARDS ........................................................................................ 10 3.1 Accessibility ....................................................................................................................... 10 3.2 Parklets .............................................................................................................................. 11 3.3 Café Sea-ng Areas .............................................................................................................. 19 3.4 Retail Displays .................................................................................................................... 22 3.5 Planters .............................................................................................................................. 23 3.6 Umbrellas ........................................................................................................................... 23 3.7 Branding and Signage ......................................................................................................... 25 3.8 Waste Management ........................................................................................................... 26 3.9 Electrical ............................................................................................................................. 26 3.10 Ligh-ng ............................................................................................................................. 27 3.11 Hea-ng ............................................................................................................................. 28 CHAPTER 4 — ENCROACHMENT PERMITS .............................................................................. 30 4.1 Permit Process .................................................................................................................... 30 4.2 SubmiIal Requirements ..................................................................................................... 30 4.3 Failure to Maintain ............................................................................................................. 32 4.4 U-lity Maintenance and Public Safety ............................................................................... 32 4.5 Removing an Outdoor Ac-va-on Area ............................................................................... 33 4.6 Extension Beyond Establishment ....................................................................................... 33 4.7 Outdoor Ac-va-on Area Fees ............................................................................................ 34 4.8 Sharing Parklets .................................................................................................................. 34 Item 16
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3 CHAPTER 1 — PROGRAM OVERVIEW 1.1 Introduction The California Avenue Outdoor Activation Standards (Standards) set forth design, operational and submittal requirements for commercial use of the public right-of-way within the car-free portion of California Avenue extending from El Camino Real to Birch Street. The Standards apply to applications seeking an encroachment permit for outdoor activation areas and provide the basis for City review and approval of proposed improvements, furnishing and operations. 1.2 Vision Car Free California Avenue is a community-oriented main street that is a visually open, walkable and vibrant community destination for outdoor dining, shopping and events. Commercial activation of the street strengthens economic vitality, supports social connection, and enhances placemaking for residents, merchants and visitors. 1.3 Purpose The purpose of the Standards is to allow local businesses to extend commercial activity onto the public sidewalk and roadway for outdoor dining, retail, entertainment and related uses, while ensuring spaces remain accessible, safe, equitable, and well-designed. 1.4 Objectives Outdoor Activation advances the following objectives: • Boost economic vitality by enabling year-round outdoor dining, retail, entertainment, and services that improve customer experience and support business investment. • Ensure accessibility and safety with universally accessible, ADA-compliant, well-designed outdoor spaces. • Enhance the street environment by improving the function, appearance, and overall experience of a car-free community destination. • Provide a clear, consistent and efficient process that supports local businesses with a flexible and streamlined permitting process.
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4 1.5 Outdoor Activation Types Outdoor Activation consists of two types of space: • Parklets: Constructed outdoor areas with improvements for year-round outdoor dining, retail, entertainment, or services. • Café Seating/Retail Display Areas: Outdoor areas on the existing sidewalk or roadway that primarily use removable furnishings such as tables, chairs, umbrellas, heaters and retail displays. 1.6 Definitions Outdoor Activation Zones on California Avenue are as shown in Figure 1. Figure 1. Cross Sec-on of California Avenue with Street Space Zones Frontage Zone — The por-on of the sidewalk adjacent to buildings, including entryways, recessed doors, windows, awnings, and overhangs, that func-ons as an extension of the building frontage. Pedestrian Zone — The clear sidewalk path used for pedestrian movement, ADA access, and emergency access to buildings. Street Furniture Zone — The por-on of the sidewalk containing public ameni-es such as street trees, landscaping, ligh-ng, benches, bike parking, and other streetscape elements. AcOvity Zone — The roadway space designated for outdoor dining, retail merchandising, public sea-ng, Farmers’ Market opera-ons, events, and other community uses that ac-vate the street. Accessway — The roadway area for pedestrian and bicycle circula-on, as well as emergency and authorized service vehicle access. Outdoor AcOvaOon Area – The permiIed area of the public right-of-way within the car-free por-on of California Avenue that is authorized for commercial use by an adjacent business subject to these Standards.
Frontage Pedestrian Furniture Ac1vity Accessway Ac1vity Furniture Pedestrian Frontage Item 16
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5 CHAPTER 2 — LOCATION, SIZE, SETBACK, USE & OPERATOR REQUIREMENTS This section describes requirements for the location, size, setback, permitted activities, operator requirements for parklets and café seating/retail display areas. 2.1 Location Businesses are allowed to locate outdoor activation space directly in front of the operator’s storefront. Commercial outdoor activation is permitted within the setbacks on Figure 2. and Figure 3. which contain the following street space zones in Figure 1: • Frontage Zone • Street Furniture Zone • Activity Zone Figure 2. Setback Map – El Camino to Ash Street
Figure 3. Setback Map – Mimosa Lane to Birch Street
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H-043-2-13 DEPTH 3.86'12"SD10+00
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SCALE: 1" = 20'Story (4)
0’20’40’60’80’100’1”=20’
LegendPedestrian CrossingPedestrian PavementMarkingsCafe SeatingParkletSetbackGas Main RetailRestaurant
Commercial Service/Office VacantBike RacksFarmers Market TentTactile DirectionalIndicator Car Free California Avenue - Activation Setback Plan Commercial Use Setbacks and Illustrative Build-out of Pre-Approved Parklets & Cafe Seating City of Palo Alto5/14/26 El Camino Real
Birch Street
Ash Street
Mimosa Lane
12’17’8’
34’34’22’
34’34’22’
30’27.5’
12’
12’
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T TT TTTT T
TT T81'
MH-043-2-21
H-043-2-13 DEPTH 3.86'12"SD10+00
10+50
11+00
11+50
10+00
10+50
11+00
B-48CV B-16 B-9
B-16 M
B-16M B-9
B-16M
M
SCALE: 1" = 20'Story (4)
0’20’40’60’80’100’1”=20’
LegendPedestrian CrossingPedestrian PavementMarkingsCafe SeatingParkletSetbackGas Main RetailRestaurant
Commercial Service/Office VacantBike RacksFarmers Market TentTactile DirectionalIndicator Car Free California Avenue - Activation Setback Plan Commercial Use Setbacks and Illustrative Build-out of Pre-Approved Parklets & Cafe Seating City of Palo Alto5/14/26 El Camino Real
Birch Street
Ash Street
Mimosa Lane
12’17’8’
34’34’22’
34’34’22’
30’27.5’
12’
12’
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6 2.2 Size The maximum size of a covered parklet is 350 square feet. A single business may have no more than two covered parklets, for a maximum covered area of 700 square feet, provided the covered area does not exceed area limits as permitted by these standards. 2.3 Setbacks and Clearances Setbacks apply to all design elements including platforms, railings, screens, planters, cantilevered awnings, and umbrellas. Outdoor activation areas shall not obstruct or encroach upon: • A required 8-foot pedestrian path of travel on sidewalks • 20-foot emergency vehicle access (where applicable) • Designated pedestrian zones • Emergency egress • Designated bike lanes Fire Safety • Two means of emergency access to and from buildings to the street right-of-way are required. • Minimum 4 feet from each property line, creating an 8-foot emergency accessway between adjacent properties. • Minimum 4 feet between structures to allow for emergency access. • For multi-tenant buildings, enclosures may adjoin, provided building setback requirements are met. Utilities Improvements within an outdoor activation area must not obstruct: • Public utilities (e.g., water, gas, wastewater, electricity, fiber, streetlight, telecommunication vaults) • Gas mains or services. o Parklets and outdoor dining improvements must maintain a 2-foot setback from gas mains. o Any improvement within 2 feet of a gas lateral (service line) is required to install a gas shut-off valve and maintain access to the valve from the street. Installation of the valve is at the sole expense of the applicant. o Installation is required to be completed by the city or a qualified contractor, per the current Utility Standards and approved by the city prior to final parklet approval or issuance of occupancy permit. o Each parklet shall have a remote methane gas detector installed. The device must have an audible alarm to alert when methane gas is detected. The device should be installed in accordance with the manufacturer’s recommendation and Item 16
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7 with consideration of where methane gas is likely to accumulate. In certain conditions, it may require the installation of multiple devices to provide adequate coverage. o See Section 4.4 Utility Maintenance and Public Safety for additional requirements • Fire hydrants: minimum 15-foot clearance • Manhole cover: maintain a 5-foot radius for access • Storm drain catch basin: minimum 5-foot clearance; designs must allow maintenance access • Streetlight poles and luminaires will require maintenance or replacement. Parklets and outdoor dining improvements cannot block access. Access and replacement typically require a utility boom truck. • Streetlight underground boxes: minimum 5-foot radius for access. • Electric – Existing primary electric (12,470V) circuits cross Cal Ave along Birch Street. Minimum horizontal clearance is 12-48” and vertical clearance is 12”. • CPA inspectors must be present when potholing. No repairs can be made without CPA Engineering approval nor without the inspector present. Street Trees • Maintain a 3-foot clearance from tree trunks or major branches. • Closer encroachment requires urban forestry approval. • To protect tree roots, enclosures may be installed adjacent to tree wells to direct foot traffic away from roots. If proposed improvements conflict with public infrastructure (e.g., signage, benches), applicants must consult Public Works for potential relocation. If relocation is not feasible, design must accommodate existing infrastructure. 2.4 Permitted Activities Parklets and café seating/retail areas are permitted in conjunction with a legally existing and permitted eating, drinking establishment and retail uses. All activities must be contained within the applicant’s permitted outdoor activation space. Non-commercial activities, such as a community or special event, may require a Special Event permit, please contact the City of Palo Alto for requirements.
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8 2.5 Operations and Maintenance Responsibilities 1. Private Control a. Parklets are deemed to be under the control of the permit holder. The permit holder is responsible for securing the parklet and any fixtures and furnishings contained within it at all -mes, including during hours when the associated business is not in opera-on. b. Businesses owners must abide by the guidelines set forth in this document and the terms of their permit. c. If a business does not comply with these guidelines, the city reserves the right to enforce, modify or revoke a permit based on public safety, accessibility, opera-onal conflicts, or other concerns. d. Business owners are responsible for staying up to date with permit fees, renewing their license and complying with stands/guidelines that may be implemented in the future. 2. Alcohol Service a. All parklets and café sea-ng areas in which alcoholic beverages are served shall comply with standards of the Department of Alcoholic Beverage Control, including having clearly discernable boundaries and signage, including adjacent and non-con-guous areas to the ABC licensed establishment, as required. b. All physical requirements of ABC should be reflected in the design submiIed for review. c. Businesses are to have an exis-ng CUP to serve alcohol at their main place of business in order to serve alcohol at an outdoor parklet or cafe sea-ng. d. Boundaries shall not be temporary construc-on such as rope and stanchion systems, plas-c stanchions and chains, belts or weighted fabric systems, or residen-al fencing. e. If boundaries are provided, they are to be constructed of commercial grade materials, finished natural materials, finished metal railings or planters i. Boundary elements are to be securely weighted or aIached per requirements sec-on 3.2.4(1)a, iii ii. Provide clarity of separa-on between licensed and unlicensed areas iii. Comply with ADA Accessibility and emergency egress and access codes and standards iv. Maintain openness and transparency, such as use of modular railings spaced 2-3 feet apart v. Shall not exceed 36 inches in height, vi. Businesses are responsible for maintaining barriers and compliance with ABC condi-ons. 3. Maintenance a. Businesses owners must maintain and upkeep outdoor ac-va-on space. This includes cleaning furnishings daily, removing trash and recycling, replacing damaged ligh-ng or heaters if applicable, and maintaining landscaping.
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9 b. Businesses must comply with the city requests to temporarily remove furnishings for city maintenance or special events. c. Maintaining furniture/enclosures in good condi-on, required accessibility and clearances and removing/storing movable elements when not in use, if required 4. Hours of Opera-on a. Hours of opera-on are the same as approved hours for the establishment. 5. Dining a. For outdoor dining, businesses are required to provide all furnishings. 6. Retail a. For retail, sales businesses are required to maintain a minimum of 8’ of unobstructed walkway space for pedestrians. b. All displays must be removed daily. Nothing is permiIed overnight. c. Electrical equipment, including light fixtures or generators is not allowed. 7. Entertainment a. For live entertainment, business ac-vity is not to spill outside of permiIed ac-va-on space. b. Businesses must comply with the Palo Alto Municipal Code for noise limits.
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10 CHAPTER 3 — DESIGN STANDARDS 3.1 Accessibility All outdoor ac-va-on areas are required to be accessible and useable by people with disabili-es. All accessibility features shall be designed and constructed to conform to ADA accessibility guidelines and standards. 1. Path of Travel a. The sidewalk, parklet and cafe sea-ng area path of travel must comply with the appropriate Americans with Disabili-es Act (ADA), Public Right-of-Way Accessibility Guidelines and California Building Code (CBC) chapter 11B accessibility provisions. b. The parklet path of travel must comply with CBC chapter 10 egress requirements. 2. Grade Changes a. The surface of the parklet plalorm must be flush with the adjacent sidewalk with a maximum gap of 0.25 inches and 0.25 inches ver-cal tolerance. b. Any abrupt changes in eleva-on exceeding 4 inches along an accessible path of travel shall be iden-fied by 6-inch-tall warning curbs. c. Parklets shall u-lize outdoor grade reflec-ve tape to mark changes in grade. 3. Ramps a. If a ramp is required for access to the outdoor ac-va-on area or a por-on thereof, it shall comply with all path of travel requirements above. 4. Outdoor Sea-ng a. At least 5 percent of the sea-ng spaces and 5 percent of the standing spaces shall be accessible. Accessible space shall meet the following requirements: i. Interna-onal Symbol of Accessibility displayed at the table. ii. Table surface between 28 to 34 inches. iii. Minimum 27 inches of space from the floor to the boIom of the table. iv. Knee clearance extends at least 19 inches under the table. v. Total clear floor area of 30 inches by 48 inches per seat vi. Maintain a minimum 4-foot-wide accessible path of travel to the accessible tables, and a 5-foot-diameter (60 inches) turnaround space on the accessible path of travel. vii. ADA accessible sea-ng shall be of the same size and appearance as the establishment’s other outdoor sea-ng.
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11 3.2 Parklets Parklets are constructed outdoor ac-va-on areas in the public-right-of-way that support social and commercial vitality of the street. Design Guidance The following design guidance establishes the intended design character for parklets on Car Free California Avenue and shall be used together with the specific requirements in Sec-on 3.2. 1. Maintain visibility: Preserve views to storefronts, building façades, and across the street. 2. Light and transparent structure: Use slender support posts and wide spacing to maximize visual transparency. 3. Minimal enclosure: Use open railings, low planters and walls, and limited sidewalls to balance comfort and safety while maintaining sightlines and the open character of the street. 4. Minimize massing: Use flat or low-pitch roof forms that do not block views. 5. Open to the sidewalk: Enable easy access between the sidewalk, parklet, and storefronts (e.g., modular railings with spaced openings). 6. Operable weather protec-on: Support year-round dining while preserving an open-air character during fair weather using transparent, easily retractable systems that are integrated into the parklet design. See Figure 4. For an example of setbacks and ac-va-on zones, and Figure 5. For an illustra-ve example parklet and sea-ng plan.
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12 Figure 4. Example Parklet and Cafe Sea-ng Setbacks
Figure 5. Illustra-ve Parklet and Cafe Sea-ng Plan
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13 3.2.1 Parklet Types & Locations The following four parklet types are permiIed: • Narrow Parklet on roadway (former parallel parking spaces) • Wide Parklet on roadway (former angled parking spaces) • Combined roadway and sidewalk Parklet: permitted on sidewalks 22 feet or wider, maybe up to 10-foot wide, with no more than 5 feet located on the sidewalk. • Sidewalk Parklet: permitted on sidewalks 30 feet wide; maybe up to 12-foot wide on the sidewalk, provided a minimum of 8 feet clear sky is maintained from any building awning or projection. Any parklet located on a sidewalk requires additional Public Works review for utilities, sidewalk structural integrity, path of travel and other applicable requirements. 3.2.2 Platforms Platforms are a level, horizontal surface extending from the sidewalk into the roadway, providing a stable, accessible floor surface and protecting patrons from street runoff. 1. Structural a. Parklets shall be constructed with quality materials and shall be of natural durable wood (such as redwood, cedar, etc.), preserva-ve treated wood, light-gauge steel, or other engineered material suitable for exterior condi-ons. b. The parklet plalorm must support 100 pounds per square foot of live load. c. All fastening hardware and fasteners adjacent to and into preserva-ve treated wood must be made of one of the following: hot-dipped zinc coated galvanized steel, stainless steel, silicon bronze, or copper. 2. Drainage & Ventilation a. The underside of the plalorm shall be constructed to allow for drainage. b. Adequate cross ven-la-on shall be installed to allow for the surface to dry within 24 hours. c. Parklets shall not impede the flow of curbside drainage. The parklet design shall include a minimum 6.5-inch-wide clearance from sidewalk curb along the en-re length of the parklet. An ADA -compliant con-nuous gra-ng flushed with the sidewalk and decking shall cover the clearance between the sidewalk curb and the parklet floor. See Figure 6. for preferred plalorm aIachment at curb detail and Figure 7. for alterna-ve plalorm aIachment. d. Openings at either end of the parklet shall be screened with the permanent aIachment of corrosion-resistant material (e.g. galvanized welded wire mesh) having a maximum 0.25-inch mesh to prevent debris buildup beneath the parklet and in the guIer. Any other gaps or openings in the plalorm or between the plalorm and the substrate larger than .25 inch shall be screened with the permanent aIachment of corrosion-resistant material (e.g., galvanized welded Item 16
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14 wire mesh) having a maximum 0.25-inch mesh. e. If the parklet is uncovered, the parklet floor shall be sloped a minimum 1/8 inch / linear foot and a maximum ¼ inch / linear foot towards the sidewalk. The closure decking shall be removable for easy access for under plalorm inspec-on as needed.
Figure 6. Preferred Plalorm AIachment at Curb
Figure 7. Alterna-ve Plalorm AIachment to Curb 3. Plalorm Attachment a. The parklet is to be level with the sidewalk where there is a curb. b. The City of Palo Alto strongly prefers free-standing plalorms that are not anchored or aIached to the roadway or sidewalk. Anchored plalorms may be considered through the encroachment permit review process where a free-standing design is not feasible or would not meet safety, stability or code requirements. Example circumstances would be a hybrid parklet that is located on both the sidewalk and roadway where the transi-ons in surfaces are uneven, or the crown of the road, cross slope or other pavement irregularity requires minor anchoring for stability, or other site-specific Item 16
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15 condi-ons. Staff will review as part of the encroachment permit process. Anchoring cannot exceed a maximum depth of 6 inches. Any anchoring proposed into the public street will require Underground Service Alert (USA) markings and addi-onal staff review. c. The preferred grate support along the curb face shall be installed perpendicular to the curb (per the detail provided in Figure 6). d. Figure 7 is an acceptable alterna-ve where Figure 6 cannot be implemented. The manner of anchoring shall employ concrete anchor bolts inserted into pre-drilled holes in the curb. Anchor embedment into the curb shall be between 3” and 4” in depth. e. Parklet floor shall be made of exterior-rated material. They shall not be made of metal, glass, or interior materials. The floor shall have slip resistance ra-ng greater than R11 or a coefficient of fric-on greater than .5. Parklet floor shall be designed for removal to allow immediate access to below grade u-li-es in the event of maintenance, emergency (gas leak) or other circumstances. Removable floor sec-ons shall be sized such that the weight of a removable floor panel shall not exceed 30 pound to accommodate removal by one person. 3.2.3 Roofs 1. Structural a. Complete roof framing plan, which includes horizontal and ver-cal bracing and support posts, is required to be submiIed with structural calcula-ons that meet the standards in the currently adopted California Building Code as amended by PAMC 16.04, and current version of the American Society of Civil Engineer's ASCE 7 Chapter 15: Seismic design requirements for non-building structures. A licensed civil and/or structural engineer who is registered in the State of California shall stamp and sign the plan and associated calcula-ons, as well as conduct an onsite structural observa-on to ensure the roof structural system and its suppor-ng elements were built according to the plans prior to occupancy. b. All connector hardware and fasteners shall be resistant to corrosion and listed as compa-ble with the framing material. c. Roofs may be a solid uniform material or open construc-on (i.e., trellis, pergola, etc.). d. Roofs shall not be aIached or connected to a building. e. Roofs can be flat or sloped no greater than 1:12, and shall slope toward the street to ensure rainwater drains into the street, with a minimum slope of ¼” drop / linear t. f. The roof’s outer edge along the accessway and sidewalk may extend no greater than 12 inches into a gas main setback above 8 feet. Roofs may can-lever up to four feet over the sidewalk area where sidewalks are 22 feet and wider to ensure that at least one third of the sidewalk width is open to the sky. g. The roof shall not extend more than 12 inches over the sides of the parklet into the setbacks for emergency access at adjacent parklets.
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16 2. Height/loca-on a. The roof shall have a minimum head clearance of 8 feet. b. A parklet roof shall measure no taller than 11 feet, as measured from the plalorm grade. 3. Materials a. Rootops may be open or solid. PermiIed open trellis roofs are flame-retardant fabric, pressure-treated wood, exterior grade wood (redwood, cedar or similar) or light gauge steel. b. PermiIed roof coverings are treated, exterior grade plywood, asphalt -les (on sheathing and underlayment such as bituthene), transparent panels (UV resistant), steel (sheets or standing seam) or corrugated metal panels or sheets. Metal roof coverings to have durable commercial grade pre-finished metal panels; corrosion resistant and low glare. Prohibited roof coverings are OSB, unfinished lumber or wood surfaces, corrugated acrylic or plas-c panels, heavy materials, such as clay or stone -les, vinyl, sot plas-cs, tarps or non-flame-retardant fabrics c. All wood and metal must be sealed and finished, including all exposed surfaces of plywood sheathing. Wood finishes can be stained, painted or sealed with exterior grade products for weather protec-on. d. If fabric shade sails or similar tension fabric coverings are proposed, the fabric cover shall be limited to the top por-on of the parklet and not extend to addi-onal sides perpendicular to the street or sidewalk. All fabrics and all interior decora-ve fabrics or materials shall be flame-retardant in accordance with the provisions set forth in CCR, Title 19, Division 1, chapter 8. The applicant shall provide cer-fica-on that the fabric covering is flame resistant with any of the following: i. NFPA 701 cer-fica-on ii. ASTM E84 or UL 723 3.2.4 Enclosures 1. Railings Railings shall be provided where a parklet includes a raised plalorm edge adjacent to the sidewalk or roadway. In limited cases, a parklet without a plalorm may be considered through permit review, subject to approval of edge treatment, ADA access and other applicable safety requirements. Railings are also permiIed on sidewalks subject to staff review. a. Requirements i. Height: up to 36 inches, measured from the surface of the plalorm. ii. Stability: railings shall resist a 200-pound load at top and side of railing iii. Anchoring: fasten railings to framing or structural elements. Railings can be anchored to the sidewalk and roadway subject to staff review, provided that the anchoring does not exceed a maximum depth of 3 inches.
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17 iv. Clearance: must not encroach on the 8-foot pedestrian path or ADA accessible routes; must not obstruct hydrants, vaults, or emergency zones. v. Gripping surface: con-nuous and smooth. vi. Cables: must be taut and spaced to prevent 4" sphere passing through vii. Materials: commercial grade, powder-coated metal, treated hardwood, composite/engineered wood, painted steel cable systems. viii. Avoid: corrugated plas-c, fabric barriers, chain link, unpainted raw wood. Residen-al fencing is prohibited. ix. Finish: maIe or sa-n; neutral/coordinated colors (branded colors allowed if aligned with Cal Ave design paleIe). x. Openness: Architectural screens or laser cut metal panels more than 50% open are acceptable. xi. Excep-ons to the standard 36" railing height are permiIed up to 48" in height for street facing bar sea-ng 2. Low Walls a. Low walls may be used where wind protec-on is desired and to support windows and operable panels above. b. Requirements i. Maximum height: 36 inches. ii. Substan-ally solid from plalorm to top of wall. iii. Constructed of durable materials capable of suppor-ng operable panels above (e.g., sealed/stained wood, composite/fiber-cement, metal panel systems, or planter-walls). iv. All wood must be stained, painted or sealed with exterior grade products. v. No opaque extensions above 36 inches. vi. Excep-ons to the standard 36" wall height are permiIed up to 48" in height for (1) street facing bar sea-ng and (2) ABC required boundaries constructed of high-quality, commercial-grade materials in ac-ve use prior to June 2026. 3. Sidewalls a. A parklet sidewall is a ver-cal enclosure installed along the edges of a parklet plalorm that provides privacy and/or weather protec-on to parklet occupants. b. Requirements i. Maximum height of six feet measured from the top of plalorm. ii. Sidewalls may be provided using either of the following approaches: 1. Visually permeable sidewalls (e.g., louvers or architectural screens). 2. Transparent panels which are encouraged to be operable (e.g., sliding, folding, or lit-up panels) to be open during fair weather. iii. Total enclosure and ven-la-on: 1. Where located adjacent to a gas main, and to provide adequate natural cross ven-la-on the combined open area of the four sides Item 16
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18 of the parklet must achieve a minimum 50% net open area to allow for natural ven-la-on to prevent entrapment of gas vapors. 2. The side facing the sidewalk shall remain 100% open and unobstructed with a minimum ver-cal clearance of 8 feet. iv. Storefront visibility: sidewalls are to preserve openness and transparency between the street and storefronts. v. Materials: commercial grade, durable composite systems, powder-coated metal, treated hardwood, composite/engineered wood, tempered glass or plexi-glass. All wood must be stained, painted or sealed with exterior grade products. vi. Visual transparency: areas above 36 inches must be visually transparent and not -nted glass. vii. Anchoring: secured to framing and structure, wind-rated for outdoor use. c. Not Allowed i. Fully opaque walls or panels over 36 inches that block air flow and visual transparency ii. Temporary fencing/crowd-control barricades iii. Plas-c shee-ng/tarps iv. DIY structures from mixed salvage materials 4. Operable Weather Protec-on a. An operable weather screen is a movable weather protec-on system integrated into a parklet that can be deployed when needed for comfort and retracted to an open-air condi-on. Operable weather screens are to improve customer comfort during wind, sun, glare, or light rain. b. Requirements i. Retractable or operable systems shall remain fully retracted and open during fair weather to maximize ven-la-on, visual openness and sight lines to storefronts. ii. Preferred operable types: 1. Retractable roll-down screens 2. sliding/folding/hinged panels 3. adjustable-height wind screens 4. retractable awnings/canopies designed to be fully stowed when not in use. iii. Operable weather screens are required to meet the 50% total net open air for fully deployed weather protec-on on three sides and a completely open side facing the sidewalk. 1. Op-ons for how retractable roll-down screens can meet this performance requirement are: a. A minimum screen openness factor of 40% when deployed; or b. A permanent open gap at the top with minimum 12-18 inches clear height measured from the top of the opening Item 16
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19 (can include openings in roof blocking) combined with shades with a minimum 10% openness factor; c. Permeable fixed elements (louvers or architectural screens) with at least 50% open area; or d. Other designs provided manufacturer’s specifica-ons, openness data and calcula-ons can demonstrate performance. iv. Applicants must provide manufacturer specifica-ons for flame retardancy (NFPA 701 or equivalent). v. Materials and appearance: Use commercial-grade, outdoor-rated materials; priori-ze transparent or visually permeable systems and coordinated finishes. vi. Securing and stowage: Use built tracks/guides and fastening when deployed to prevent flapping and maintain alignment; provide a clean, integrated stowed condi-on. vii. AIachment: Integrate aIachment points into the parklet framing/plalorm where feasible. Any aIachment to the ground plane/sidewalk/roadway should be minimized, durable, and subject to staff review. 3.3 Café Seating Areas Café Sea-ng Areas are flexible, open-air spaces in the public right-of-way that extend dining ac-vity from the establishment onto the sidewalk or roadway. Types Café seating may be located in one or both of the following areas, subject to Chapter 2 location and setback requirements: • Sidewalk Seating/ Display Areas: on sidewalk adjacent to the operating business. • Roadway Seating/Display Areas: within designated roadway activity zone in front of operating business. Applicants proposing both sidewalk and roadway café seating shall demonstrate how the two areas function together as a single ADA accessible outdoor environment. Design Guidance The following design guidance establishes the intended design character for café sea-ng areas on Car Free California Avenue and shall be used together with the specific requirements of Sec-on 3.3. 1. Layout café sea-ng to feel like an extension of the business and contribute to the vitality of the street.
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20 2. Design for comfort and lingering with a mix of sea-ng op-ons that support different group sizes and lengths of stay, such as: a. Standard table sea-ng (two- and four-top) b. Communal tables and benches c. Lounge sea-ng with low-profile tables d. Bar-height counters with stools e. Include shade where feasible to improve comfort and usability. 3. Design for seasonal varia-on and year-round use by incorpora-ng elements such as: a. Varied shade strategies (umbrellas, canopies, etc., as allowed) b. Fes-ve/ambient ligh-ng c. Warmth through radiant hea-ng (where permiIed) 4. Support social interac-on and street engagement: orient sea-ng to encourage people-watching, casual conversa-on, and connec-on to street ac-vity, while maintaining required clear paths of travel. 5. Strengthen connec-ons to storefronts: keep the area visually open so that storefronts, entrances, and sidewalk ac-vity remain visible from the street, suppor-ng both safety and a cohesive main-street experience. 6. Connect to nature: use planters, trellises, and plan-ngs (annuals and perennials) to create a garden-like outdoor environment that enhances placemaking and comfort. 7. Support aIrac-ve and comfortable nighyme dining: provide ligh-ng appropriate for dusk and evening use and consider comfort measures such as radiant hea-ng. 8. Allow flexibility for small-scale, occasional pop-up ac-vi-es (e.g., live music) without compromising accessibility, safety, or circula-on. Requirements 1. Accessibility a. All café sea-ng and retail display areas shall comply with ADA accessibility requirements. Applicants shall provide: i. A con-nuous accessible route from business entrance, sidewalk and café sea-ng area ii. Accessible sea-ng integrated into the layout iii. Required clearances around tables, chairs, and circula-on paths iv. Accessibility informa-on shown on the furniture plan and maintained at all -mes 2. Furniture a. All applica-ons shall include a furniture layout plan iden-fying type, quan-ty, and configura-on. b. PermiIed furniture may include: i. Movable tables and chairs ii. Counters and sea-ng elements iii. Benches iv. Umbrellas or shade devices Item 16
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21 c. Furniture shall: i. Be commercial-grade and designed for outdoor use ii. Be safe, sturdy, and durable iii. Not include inexpensive, monoblock or injec-on-molded plas-c chairs, tables, or similar light weight residen-al furniture iv. Maintain required clearances for circula-on and accessibility v. Fixed furniture may require addi-onal staff review and approval 3. Enclosure a. Where provided, enclosure elements shall be consistent with Sec-on 2.5 for alcohol service. Enclosures are otherwise op-onal and may be used to spa-ally define a café sea-ng area. b. PermiIed enclosure types include: i. Railings ii. Planters iii. Stanchions with rope or chain iv. Low walls v. Removable wind screens c. Enclosures shall not exceed 36 inches in height except: i. low wall height is permiIed up to 48" for street facing bar sea-ng; and ii. Removable wind screens are permiIed up to 6 feet in height, provided they are: 1. Primarily transparent above 36" 2. Not permanently aIached to the sidewalk or roadway 3. Readily and easily removable 4. Maintaining an open air outdoor cafe environment with no roof 5. Constructed of commercial-grade, outdoor-rated materials, such as powder-coated metal, treated hardwood, composite or engineered wood, tempered glass or plexi-glass. No -nted, mirrored or shaded glass. All wood must be stained, painted or sealed with exterior grade products. 6. Not obstruc-ng pedestrian or ADA accessibility in and out of the sea-ng area d. Planters and plan-ngs shall not exceed 36 inches in height e. Include at least one clear point of entry f. Exis-ng enclosure elements permiIed and installed prior to June 1, 2026, may be permiIed to remain subject to City approval, provided these elements are constructed of durable, commercial-grade materials, maintained in good condi-on, and substan-ally comply with the design intent of these standards. g. All enclosure elements must be shown on the site plan and are subject to City approval.
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22 3.4 Retail Displays Retail Display Areas are outdoor ac-va-on areas—small, curated extensions of retail shopping into the public right-of-way that support browsing and retail sales. The following design guidance establishes the design character for retail display areas on Car Free California Avenue and shall be used together with the specific requirements of Sec-on 3.4. Design Guidance 1. Merchandise as placemaking: a. Retail displays contribute to street vitality and are to create storefront areas that aIract customers, are easy to navigate, and well maintained. b. Use selected items to create visual interest without appearing cluIered. Requirements 1. Storefront rela-onship: Displays shall be arranged as an extension of the business frontage so it is clear which business they belong to and can be easily supervised and maintained. 2. Maintain a visually open environment: Use low-profile, visually permeable display fixtures (e.g., tables, racks, stands) and avoid tall, opaque walls of merchandise that block views to storefronts, building façades, or pedestrian ac-vity. 3. Create an orderly edge and predictable circula-on: Set displays in a consistent line and alignment so pedestrians can easily understand where to walk and where to browse. Avoid protruding into the 8-foot pedestrian zone. 4. Design for everyday setup, removal, and maintenance: Use sturdy, removable fixtures that can be placed and removed efficiently each day. Displays should be stable, wind-resistant, and maintained in a clean, commercial quality condi-on. 5. Priori-ze safety and accessibility: Keep walking surfaces clear of tripping hazards (cords, loose mats, protruding supports). Ensure displays do not create obstruc-ons for people using mobility devices or for people with low vision. 6. Use weather protec-on that supports the street: If umbrellas, canopies, or awnings are used, size and place to support browsing comfort while remaining visually light and compa-ble with the open character of the street. 7. Avoid spillover impacts: Display ac-vity should animate the frontage while avoiding noise, glare, or opera-onal impacts that conflict with adjacent businesses, or the overall pedestrian experience.
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23 3.5 Planters Planters are op-onal and not required. Planters and plan-ngs can serve as buffers between pedestrian and bicycle accessways. Planters are encouraged; they introduce nature and color, enhancing customer experience and the street environment. Design Guidance 1. Define ac-va-on edges without blocking pedestrian access, emergency access, or visibility between storefronts. 2. Dining areas: define a clear, con-nuous border; Use one planter shape and vary sizes. 3. Merchandising: allow more flexible, clustered groupings; cluster sizes and layer plan-ngs. 4. Coordinate plant paleIes along a frontage; use seasonal color to enliven areas. Requirements When provided, planters shall meet the following: 1. Plan-ng: Contain live plants; support seasonal plan-ng or drought-tolerant species. 2. Plant maintenance: Be maintained in good condi-on; be promptly replanted or removed if plants fail. 3. Planter materials: planters shall be made of durable, aIrac-ve materials such as powder-coated metal, fiberglass, reinforced concrete, finished wood with weatherproof seal. 4. Height: Planters shall not exceed 30 inches when used to create the boundary of an outdoor dining area. Combined height of planters and plants shall exceed 36 inches and not obstruct visibility into/out of the sea-ng area. 5. Avoid: bright plas-c, untreated wood, mismatched DIY containers. 3.6 Umbrellas Umbrellas may be used to provide effec-ve weather protec-on from sun, rain, and moderate wind. Requirements 1. PermiIed Types a. Can-lever umbrellas b. Center-pole (market-style) umbrellas c. Mul--canopy umbrella systems 2. Material Specifica-ons a. Canopy Fabric: i. High-grade, solu-on-dyed acrylic ii. UV-resistant, waterproof, mildew-resistant b. Frame Material: i. Corrosion-resistant frames (marine-grade aluminum, stainless steel, or fiberglass).
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24 3. Wind and Stability a. All umbrellas placed in the public right-of-way must be commercial grade, intended for outdoor public and commercial use. b. Umbrellas are not allowed to be anchored on the roadway or sidewalk. c. Wind Performance i. Umbrellas must be secured in a free standing, weighted base per manufacturer recommenda-ons. ii. Umbrellas must be rated by the manufacturer to remain stable in wind condi-ons while open when installed according to the manufacturer’s instruc-ons iii. Umbrellas must be closed and secured during wind condi-ons per manufacturer’s recommenda-ons. d. Applicants must submit product specifica-ons and describe base and weight. 4. Size and Coverage a. Clearance Height: minimum 7 clear feet from ground to canopy edge when fully opened. 5. Wind and Stability a. Wind Vents and Reinforced Seams: double-vented designs encouraged. 6. Weather and UV Protec-on a. Waterproof coa-ngs and reinforced seams. b. UPF 50+ ra-ng for UV protec-on. c. Light or reflec-ve canopy colors are recommended for heat reduc-on. 7. Func-onality and Flexibility a. Tilt and Rota-on Adjustments: i. For can-lever umbrellas: 360-degree rota-on and adjustable -lt preferred. b. Retractability: i. Retractable awnings are encouraged for year-round flexibility. c. Ligh-ng Integra-on: i. Ambient or task ligh-ng within umbrellas/awnings (compliant with ligh-ng requirements). 8. Maintenance and Compliance a. Condi-on: Canopies must be kept clean and replaced if they become faded, ripped, or moldy. b. Storage: Umbrellas must be stored in a closed posi-on or moved indoors during non-opera-ng hours to prevent thet or wind damage. 9. Pop-up tents for events only, no permanent use of pop-up tents.
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25 3.7 Branding and Signage Branding and signage on Cal Ave activation areas help define district identity, support business visibility, and contribute to a cohesive and welcoming public realm. Design Guidance Businesses are encouraged to: • Use high-quality materials such as metal, wood, or weatherproof composite panels. • Use signage to reflect the unique identity of the establishment while contributing to an overall cohesive streetscape. • Integrate signage into planters, railings, or low screening to reduce visual clutter. Requirements The following standards apply to all signage in outdoor activation areas: 1. Parklet Sign Size: Parklet signage is limited to 6 square feet and shall be limited to the name of the business. LeIers can be no taller than 15 inches. 2. Sign Type: Parklet signs are wall signs and shall be non-illuminated and non-reflec-ve. 3. Number of Signs: Businesses are permiIed one business sign on their parklet, and one temporary sandwich board sign in their ac-va-on area. 4. Height: Any signage shall be affixed to the outermost por-on of the parklet enclosure no higher than 36 inches from the street grade. 5. No Adver-sing: No form of adver-sing is permiIed to be painted or mounted on any surface or area of the parklet or ac-va-on area. 6. Post Reloca-on: If a signage post is in conflict with the proposed parklet, the applicant shall contact Public Works to evaluate reloca-ng the post. If reloca-on is not possible, the applicant must redesign the parklet to fit with the exis-ng post. 7. Parking Signs: Any exis-ng parking signs installed adjacent to the parklet shall be removed by the applicant and returned to the Public Works Department. 8. Construc-on: Signs shall be constructed wholly of metal, incombus-ble plas-c or other approved fire-resistant material. 9. Accessibility: All signs are to meet ADA accessibility standards for sec-on 307.2 Protrusion Limits hIps://www.access-board.gov/ada/#ada-307_2 and sec-on 307.3 Post-Mounted Objects hIps://www.access-board.gov/ada/#ada-307_3. 10. Sandwich Boards a. Size: Sandwich board signs are limited to no larger than 2 feet wide by 3 feet wide. b. Loca-on: Sandwich board signs are not permiIed to obstruct the 8-foot wide pedestrian path on sidewalks or ADA access. c. Opera-ng Hours: Sandwich board signs must be removed when business is closed and on display only during regular business hours. d. Appearance: Sandwich board signs are to be professional in appearance, no hand-painted signs. (Reference: City of Palo Alto Sign Code) Item 16
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26 3.8 Waste Management Clean and well-managed outdoor spaces are essential to public health, sustainability, and street character. All businesses are responsible for proper waste management in compliance with Palo Alto’s Zero Waste Ordinance and local sorting requirements. Requirements 1. Keep parklets, cafe seating areas and adjacent sidewalks free of litter, food waste, and stains 2. Clean surfaces daily and power-wash at least once per month 3. Prevent debris and liquids from entering storm drains or accumulating near planters 4. Maintain clear access to drainage grates and public infrastructure 5. Provide clearly labeled, color-coded containers for: o Recycling (blue-tinted liners) o Compost (green compostable liners) o Landfill (clear liners) 6. Containers must be accessible, routinely emptied/cleaned, and located so they do not obstruct pedestrian paths 3.9 Electrical Requirements All outdoor hea-ng and ligh-ng systems must be powered safely and in compliance with the California Electrical Code and City of Palo Alto requirements. Electrical infrastructure must be reviewed as part of the permit process when installing fixed ligh-ng, overhead hea-ng, or building-mounted outlets. 1. Power Source a. A weatherproof GFCI electrical outlet may be installed (with applicable permits) on the exterior of the building at a minimum of 10 feet above the walking surface. i. Electrical power supply to the parklet, including the outlet(s), shall comply with permanent wiring methods as outlined by the adopted California Electrical code. b. Electrical power supply cables between the building and the parklet shall be secured to one (1) single overhead guide wire between the building and the parklet structure. i. No extension cords shall be permiIed for fixed ligh-ng or heaters. c. No electrical power supply cables or conduits are allowed on or under the sidewalk. d. Parklet power sources shall not be pulled from the city sidewalk ligh-ng or supported by trees. e. Generators are not allowed in associa-on with parklets.
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27 2. All equipment must be: a. UL or ETL cer-fied b. Rated for outdoor commercial use 3. Not allowed a. Televisions are not permiIed in parklets b. Amplified sound is not permiIed on parklets. Any ambient sound may only originate from the interior of the business’s occupied building. c. Extension cords or power strips 3.10 Lighting Design Guidance Thoughtful, human-scale lighting improves comfort, safety, and appearance and contributes significantly to street attractiveness. Businesses are encouraged to: • Use ambient ligh-ng for general glow, task ligh-ng for tables, and accent ligh-ng for architectural features or planters • Select fixtures that complement storefront architecture and minimize visual cluIer • Maintain consistent spacing of ligh-ng to reduce dark spots Requirements Businesses shall comply with the following standards, consistent with the City of Palo Alto Lighting Ordinance at Lighting Ordinance Update – City of Palo Alto, CA and the California Electrical Code: 1. Requirements a. Rated for wet loca-on exterior use, listed and carry a product cer-ficate for its intended use by a recognized electrical tes-ng laboratory. b. Ligh-ng shall be the lowest intensity and energy use adequate for its purpose and be designed to focus illumina-on downward to avoid excessive illumina-on above the light fixture with a maximum of 100 waIs or 1600 lumens, whichever is greater, per fixture. c. Aim downward and be fully shielded to reduce glare and light spill (except string lights). d. Use warm-colored lights (2,700 Kelvin or less). e. Turn off or use mo-on controls by 11 p.m., two hours ater business closing, or one hour ater when exterior areas are no longer in use, whichever is later. f. String lights, lanterns and other suspended decora-ve features spanning between a building and a parklet are not permiIed. 2. Allowed Fixture Types: a. LED-only ligh-ng Item 16
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28 b. String lights, wall-mounted downlights, solar or rechargeable table lamps or other shielded, glare reducing fixtures 3. Electrical Power & Installa-on: a. Power supply can come from a weatherproof GFCI outlet mounted on the building (minimum 10 feet above ground) or solar powered illumina-on b. Wiring must follow permanent wiring methods per the California Electrical Code and run via a single overhead guide wire c. No extension cords, power strips, or generator use d. If installing permanent ligh-ng on the parklet or adding the exterior GFCI receptacle at the building per Sec-on 3.8 Electrical, an electrical permit shall be obtained and shall comply with permanent wiring methods per adopted California Electrical Code. e. Electrical equipment must be UL or ETL cer-fied for outdoor commercial use 4. Permits: a. An electrical permit is required for all wiring and associated outlets. 3.11 Heating Requirements Outdoor heating may be used to enhance comfort in colder weather. Electric and propane (LPG) heaters that meet City safety and permitting requirements are permitted. All heaters must be weather rated, certified for outdoor commercial use, and installed per manufacturer instructions and applicable fire/electrical codes. Electric Radiant or Infrared Heaters 1. Suitable for wet locations and labeled for outdoor commercial use. 2. Any electrical equipment must be listed and carry a product cer-ficate for its intended use by a recognized electrical tes-ng laboratory. 3. Located and installed per manufacturer requirements. 4. Meet City installation requirements, including: a. Comply with power supply requirements in Section Electrical b. Placed a minimum of 3 feet from combustibles or as required by Manufacturer’s installa-on instruc-on, whichever is more restric-ve. The backside of radiant heaters can be closer than three feet as long as installed per manufacturer’s specifica-ons. c. Mounted securely d. Ensure adequate airflow, and avoid installa-on in exposed, high-wind areas e. Electrical cords must be rated for outdoor use, protected, and must not pose a trip hazard f. Do not place heaters on pedestrian paths of travel, including on sidewalks or in any required accessible clearance zones Item 16
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29 5. A fire ex-nguisher is required to be mounted within sight and have appropriate signage per the Fire Code. Propane Heaters 1. PermiIed with an approved HAZMAT permit and CERS submiIal. 2. HAZMAT permit is required for storage and use of liquid propane gas. A site plan with the desired loca-on of each heater is required at -me of the hazmat permit applica-on. All storage loca-ons and use areas must be noted in the HAZMAT permit applica-on and approved during fire inspec-on. A final onsite hazmat inspec-on will be conducted to ensure the proper spacing of heaters from combus-bles and emergency access/egress and storage of LPG. a. Proposed outdoor storage of 20-pound containers requires plan review and inspec-on. b. On-site storage of 20-pound propane containers (5 gal) is prohibited indoors. c. Propane storage is not allowed in the public right-of-way. d. If businesses do not have an approved private outdoor storage area, all propane containers must be removed from the premises at the close of business every day. e. LPG Heaters are not permiIed on the sidewalk in the pedestrian path of travel f. LPG heaters cannot be placed underneath overhead canopies, awnings, inside buildings or tents and they must have 5-feet clearance from any flammable materials g. Any use of a portable heater, portable generator, candles, open flame, or any ac-vity regulated by the Fire code must be approved and permiIed by the Palo Alto Fire Department separately from the outdoor ac-va-on encroachment permit. 3. A fire ex-nguisher is required to be mounted within sight and have appropriate signage per the Fire Code. A minimum 2-A:10-B:C rated fire ex-nguisher is required, to be mounted 5 feet above the floor. Must be located in conspicuous loca-ons along normal paths of travel and must not be obstructed or obscured from view with appropriate signage. CFC 906 Item 16
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30 CHAPTER 4 — ENCROACHMENT PERMITS 4.1 Permit Process The Outdoor Activation permit process is as follows: 1. Any applicant seeking to install an Outdoor Ac-va-on space in the public right-of-way in the City of Palo Alto must apply for and receive a valid Encroachment Permit before beginning construc-on of the Outdoor Ac-va-on space. The permit applica-on will be reviewed by the Department of Public Works and other relevant City departments, prior to approval. Businesses are encouraged to reach out to Public Works in advance to discuss parklet sizing and design. 2. The Department of Public Works shall be an applicant’s primary point of contact. 3. Construc-on of an Outdoor Ac-va-on space cannot begin un-l a permit applica-on has been approved, and the permit issued to the applicant. If work begins prior to approved applica-on, the Outdoor Ac-va-on space materials will be removed, and the applicant will be fined. 4. Prior to serving patrons and otherwise opera-ng the Outdoor Ac-va-on space, the Outdoor Ac-va-on space must be inspected by the Department of Public Works and approved for use. 5. An eligible establishment with a valid Encroachment Permit may construct and operate an Outdoor Ac-va-on space subject to the standards and requirements contained in this document, applicable sec-ons of the Palo Alto Municipal Code (PAMC), other documents associated by reference, and other documents declared relevant by the Director of Public Works and his or her designee. 6. The city reserves the right to approve, condi-onally approve, modify or deny any parklet applica-on as its sole discre-on, including based on input from u-li-es staff and public safety considera-ons. Submission of an applica-on does not guarantee approval, and the city may revoke or modify a permit at any -me if deemed necessary for public health, safety, welfare or u-lity access. 4.2 Submittal Requirements 1. Drawing Set a. Site Plan i. Site plan shall be drawn to scale on 11 x17 tabloid paper, including all per-nent dimensions and the following informa-on: ii. Loca-on of the business frontage iii. Dimensions of the outdoor ac-va-on area iv. ADA accessibility measurements v. Setbacks from adjacent property lines and the accessway Item 16
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31 vi. Loca-on of public u-li-es including any manhole covers, guIer drains, fire hydrants, and FDCs, light poles, etc. and their distances to the outdoor ac-va-on area and proposed improvements vii. Any adjacent installa-ons on the sidewalk including u-lity boxes, street signs, bike racks, street furniture, street trees, tree wells, etc. and their distances to the outdoor ac-va-on area and proposed improvements viii. Crosswalks, bus stops, driveways and their distances to the outdoor ac-va-on area and proposed improvements ix. Width of sidewalk x. Planters xi. Loca-ons and extent of affected neighbors and their adjacent businesses xii. Storm water drainage b. Floor Plan i. Floor Plan for the proposed outdoor ac-va-on area showing the following informa-on: ii. Total number and loca-on of tables and seats and/or benches iii. Dimensions of tables, seats, and benches and other furniture c. Eleva-ons i. Eleva-on drawing showing the following information: ii. Height and design of plalorm railings/enclosure iii. Height and design of roof (if applicable) iv. Hea-ng, ligh-ng, other electrical equipment v. Electric power supply connec-on (show distance from ground to overhead wire) vi. Signage (if applicable) vii. Storm water drainage viii. Cross-sec-on drawing of parklet d. Architect/Engineer/Construc-on firm contact (if applicable) e. Construc-on Drawings showing the following informa-on: i. Structural drawings ii. Structural calcula-ons for the enclosure iii. Complete roof framing plan (for parklets with roofs), including the following: 1. Horizontal and ver-cal bracing, 2. Structural calcula-ons that meet the standards in the current 2025 California Building Code. 3. Stamp and signature from a licensed civil and/or structural engineer who is registered in the State of California i. Hea-ng, ligh-ng, other electrical equipment ii. Electrical power connec-on/source 2. Pictures of Exis-ng Condi-ons a. The applica-on should include at least three photos showing exis-ng public right-of-way for the proposed outdoor ac-va-on area, including the proposed Item 16
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32 sidewalk and roadway area to be converted into an outdoor ac-va-on area, adjacent sidewalk and store frontage of the proposed business and adjacent store frontages 3. List of Materials and Equipment a. Materials paleIe showing the following informa-on: b. Proposed materials for plalorm c. Proposed materials for railings/enclosures d. Roof material (if applicable) e. Equipment sheet including image of equipment and any manufacturer instruc-ons 4. Outdoor Ac-va-on Informa-on a. Proposed use b. Business hours of opera-on c. Use of Parallel or angled parking spaces 5. Business Informa-on a. Address 6. Business Owner Informa-on 7. Property Owner Informa-on (if different from applicant) 8. Insurance Documents 9. LeIer(s) of Consent – A parklet applicant must get a leIer of consent from the neighboring ground-floor tenant(s) if the applicant’s parklet extends beyond their own storefront (see Appendix A). If the neighboring ground-floor property is vacant, then a leIer of consent is not required for the dura-on of the permit. a. Parklet sponsor must obtain an up-to-date leIer of consent for any future license renewals as requested by Public Works during future permit renewal processes. i. If a parklet sponsor cannot obtain an up-to-date leIer of consent, or if parklet occupancy is not in accordance with the terms of any applicable law, these regula-ons, and/or any permit requirement, the parklet sponsor is responsible for the removal of any structure of the parklet permit extending into a neighboring frontage within 90-days. 10. Indemnity Acknowledgement 4.3 Failure to Maintain Failure to Maintain an Outdoor Ac-va-on: Sponsor who fails to properly and sufficiently maintain the cleanliness, safety, and accessibility of their space may be subject to viola-ons and fines. If maintenance issues are not resolved, the City may revoke the encroachment permit, and the sponsor may be required by the City to remove the Outdoor Ac-va-on space at their own expense. 4.4 Utility Maintenance and Public Safety Because an Outdoor Ac-va-on space may sit atop buried u-li-es, there may be instances where it will need to be removed to access, clean, maintain, repair or other ac-on to the Item 16
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33 u-li-es beneath it. In the event of necessary u-lity maintenance or the unlikely event of a u-lity failure such as a gas leak or water main break that threatens public safety, the City may request the sponsor to move a plalorm or other improvement, or the City or u-lity owner may remove improvements with liIle or no no-ce. The sponsors are responsible for the cost of reinstalling and restoring any damage to the Outdoor Ac-va-on space. In instances of advanced no-ce (such as street repaving, planned maintenance, etc.), the sponsor may need to remove and reinstall the Outdoor Ac-va-on space at their sole expense. If the sponsor cannot remove the space, the City will remove it at the sponsor’s expense. Sponsor accepts street repairs may occur at any -me and may involve heavy construc-on work, noise, dust, vibra-on, traffic disrup-ons and temporary or extended loss of use of the outdoor ac-va-on space, without compensa-on from the city, and for which the City or u-lity owner is not responsible for any impact of inconvenience. Fire hydrants are rou-nely flushed for removing sediments and tes-ng the hydraulic capacity of the drinking water system. The sponsor will be responsible for removing any items within the drainage path of a hydrant being flushed. 6.5" of guIer space is insufficient for adequate drainage for any flushing of fire hydrants. Sponsors accept fire hydrants may be flushed at any -me. The sponsors will allow hosing and bypasses to be installed across plalorms and through the ac-va-on space. Sponsors accept that plalorms may cause flooding. The sponsors are responsible for the cost of reinstalling and restoring any damage to the outdoor ac-va-on space, caused during any ac-vity to flow a fire hydrant flow. 4.5 Removing an Outdoor Activation Area If the Outdoor Ac-va-on sponsor decides they no longer want to maintain an Outdoor Ac-va-on space, the sponsor is responsible for no-fying the City and removing it at the sponsors’ own expense. Immediately upon removal the Outdoor Ac-va-on area shall be cleaned and restored to its previous condi-on to the sa-sfac-on of the City. 4.6 Extension Beyond Establishment Outdoor Ac-va-on areas may extend beyond the applicant’s store front with a leIer of consent from neighboring ground-floor tenants. If an outdoor ac-va-on area extends in front of neighboring storefront(s) or proposes to extend in front of neighboring storefront(s), wriIen no-ce will be sent to the affected neighbor(s) at the -me of permit applica-on and annual renewal. The business adjacent to the affected neighbor(s) will also receive no-ces. • If the neighboring ground-floor property is vacant, then the leIer of consent is not required for the dura-on of the permit. Outdoor ac-va-on sponsors must obtain an up-to-date leIer of consent for any future license renewals as requested by Public Works during future permit renewal processes. • If Outdoor ac-va-on sponsor cannot obtain an up-to-date leIer of consent, or if the outdoor ac-va-on space occupancy in not in accordance with the terms of any applicable law, these regula-ons, and/or any permit requirement, the outdoor ac-va-on sponsor is Item 16
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34 responsible for the removal of any structure on the outdoor ac-va-on permit extending into a neighboring frontage within 90-days. • If the affected neighbor(s) or adjacent business wish to claim the same space for their own outdoor ac-va-on area, they must no-fy the city in wri-ng within 30 days of the no-ce. • If a compe-ng claim for the space from the adjacent business is confirmed, the affected neighbor has priority over the space. However, an outdoor ac-va-on area permit applica-on must be submiIed by the affected neighbor within 60 days of the first no-ce to claim the space. • If a compe-ng claim for the space from the adjacent business is confirmed, and the affected business does not claim the space, the adjacent business and original outdoor ac-va-on area permiIee shall split the space. • The space shall be split from the centerline. • If applicable, an outdoor ac-va-on area sponsor must remove and/or alter their outdoor ac-va-on area (applying for applicable permits) within 90 days of receiving no-ce of a compe-ng claim for the space(s). • related disrup-ons, for which the City or u-lity owner is not responsible for any impact of inconvenience. 4.7 Outdoor Activation Area Fees Outdoor Ac-va-on spaces are subject to the following fees outlined in the City’s Fee Schedule. 1. Permit Applica-on Fee 2. Deposit Fee (refundable). This deposit will be used to cover the cost of restoring the right-of-way to its original condi-on if not done so by the permiIee. This includes, but is not limited to, the following: a. Removing the Outdoor Ac-va-on space structure b. Removing bolts in the curb and the right-of-way and filling in holes c. Removing exposed wiring d. Repairing damage to the sidewalk e. Removing construc-on debris and/or garbage f. Parking or traffic control striping g. Wheel stop removal or reinstalla-on 3. Permit Renewal Fee 4. Annual License Fee a. This fee will be charged per square foot based on the total Outdoor Ac-va-on space plalorm area 4.8 Sharing Parklets Businesses are allowed to share a parklet under these rules: 1. The parklet must be owned and operated by a single business and the City will issue a permit only to a single business. If an applicant desires to allow other businesses to share the parklet, the permiIee of record will remain the responsible party for all requirements, Item 16
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35 including fees, insurance, and compliance with all laws, regula-ons, and permits. The permiIee will also be responsible for all penal-es. Businesses must agree amongst themselves how to share these responsibili-es and risks. 2. Applicants must comply with the LeIer of Consent requirements if they desire to use adjacent space, even if they intend to share the parklet with that neighboring business. 3. The City is not a party to any contract between the businesses sharing the parklet and will not mediate such issues between businesses.
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Attachment B - Car Free California Avenue Pre-Approved Parket Plans
Item 16: Staff Report
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Item 16
Attachment B - Car Free California Avenue Pre-Approved Parket Plans
Item 16: Staff Report
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Item 16
Attachment B - Car Free California Avenue Pre-Approved Parket Plans
Item 16: Staff Report
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Item 16
Attachment B - Car Free California Avenue Pre-Approved Parket Plans
Item 16: Staff Report
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Item 16
Attachment B - Car Free California Avenue Pre-Approved Parket Plans
Item 16: Staff Report
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Item 16
Attachment B - Car Free California Avenue Pre-Approved Parket Plans
Item 16: Staff Report
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Item 16
Attachment B - Car Free California Avenue Pre-Approved Parket Plans
Item 16: Staff Report
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“
CONTACT:SCALE:
05-18-2026DATESET ISSUE
phone: 415.637.2460email: [email protected] Cross Rd, Oakland, CA 94618REI Build Up Designstructural engineer:
City StampsALIARASIAFORPDERETSIGEREENIGNELANOISSRSTRUCTURALESTATOEFLACFIORAINExp.IFB
AS NOTED
PERMIT SET
S1.0GENERALSTRUCTURAL NOTES
Item 16
Attachment B - Car Free California Avenue Pre-Approved Parket Plans
Item 16: Staff Report
Pg.
53 Packet Pg. 389 of 441
CONTACT:SCALE:
05-18-2026DATESET ISSUE
phone: 415.637.2460email: [email protected] Cross Rd, Oakland, CA 94618REI Build Up Designstructural engineer:
City StampsALIARASIAFORPDERETSIGEREENIGNELANOISSRSTRUCTURALESTATOEFLACFIORAINExp.IFB
AS NOTED
PERMIT SET
S2.0FLOOR & ROOFFRAMING PLANS(CABANA)
3/4" THICK PLYWOOD SHEATHING w/ 10d NAIL @ 6" OC AT
PERIMETER EDGE NAILING @12" OC AT INTERIOR NAILING.
PROVIDE 2x BLKG AT ALL PERIMETER AND EDGES, TYP
Item 16
Attachment B - Car Free California Avenue Pre-Approved Parket Plans
Item 16: Staff Report
Pg.
54 Packet Pg. 390 of 441
CONTACT:SCALE:
05-18-2026DATESET ISSUE
phone: 415.637.2460email: [email protected] Cross Rd, Oakland, CA 94618REI Build Up Designstructural engineer:
City StampsALIARASIAFORPDERETSIGEREENIGNELANOISSRSTRUCTURALESTATOEFLACFIORAINExp.IFB
AS NOTED
PERMIT SET
S2.1FLOOR & ROOFFRAMING PLANS(PERGOLA)
3/4" THICK PLYWOOD SHEATHING w/ 10d NAIL @ 6" OC AT
PERIMETER EDGE NAILING @12" OC AT INTERIOR NAILING.
PROVIDE 2x BLKG AT ALL PERIMETER AND EDGES, TYP
Item 16
Attachment B - Car Free California Avenue Pre-Approved Parket Plans
Item 16: Staff Report
Pg.
55 Packet Pg. 391 of 441
CONTACT:SCALE:
05-18-2026DATESET ISSUE
phone: 415.637.2460email: [email protected] Cross Rd, Oakland, CA 94618REI Build Up Designstructural engineer:
City StampsALIARASIAFORPDERETSIGEREENIGNELANOISSRSTRUCTURALESTATOEFLACFIORAINExp.IFB
AS NOTED
PERMIT SET
S2.2CABANAELEVATIONS
NOTE:
ELEVATION ONLY SHOWS NO FLOOR JOIST
OPTION. REFER TO PERGOLA ELEVATION FOR
FLOOR JOIST OPTION, SMILAR.
S.A.D. WHERE CURB OCCUER
NOTE:
ELEVATION ONLY SHOWS NO FLOOR JOIST
OPTION. REFER TO PERGOLA ELEVATION FOR
FLOOR JOIST OPTION, SMILAR.
S.A.D. WHERE CURB OCCUER
NOTE:
ELEVATION ONLY SHOWS NO FLOOR JOIST
OPTION. REFER TO PERGOLA ELEVATION FOR
FLOOR JOIST OPTION, SMILAR.
S.A.D. WHERE CURB OCCUER
NOTE:
ELEVATION ONLY SHOWS NO FLOOR JOIST
OPTION. REFER TO PERGOLA ELEVATION FOR
FLOOR JOIST OPTION, SMILAR.
S.A.D. WHERE CURB OCCUER
Item 16
Attachment B - Car Free California Avenue Pre-Approved Parket Plans
Item 16: Staff Report
Pg.
56 Packet Pg. 392 of 441
CONTACT:SCALE:
05-18-2026DATESET ISSUE
phone: 415.637.2460email: [email protected] Cross Rd, Oakland, CA 94618REI Build Up Designstructural engineer:
City StampsALIARASIAFORPDERETSIGEREENIGNELANOISSRSTRUCTURALESTATOEFLACFIORAINExp.IFB
AS NOTED
PERMIT SET
S2.3CABANAELEVATIONS
NOTE:
ELEVATION ONLY SHOWS NO FLOOR JOIST
OPTION. REFER TO PERGOLA ELEVATION FOR
FLOOR JOIST OPTION, SMILAR.
S.A.D. WHERE CURB OCCUER
NOTE:
ELEVATION ONLY SHOWS NO FLOOR JOIST
OPTION. REFER TO PERGOLA ELEVATION FOR
FLOOR JOIST OPTION, SMILAR.
S.A.D. WHERE CURB OCCUER
NOTE:
ELEVATION ONLY SHOWS NO FLOOR JOIST
OPTION. REFER TO PERGOLA ELEVATION FOR
FLOOR JOIST OPTION, SMILAR.
S.A.D. WHERE CURB OCCUER
Item 16
Attachment B - Car Free California Avenue Pre-Approved Parket Plans
Item 16: Staff Report
Pg.
57 Packet Pg. 393 of 441
CONTACT:SCALE:
05-18-2026DATESET ISSUE
phone: 415.637.2460email: [email protected] Cross Rd, Oakland, CA 94618REI Build Up Designstructural engineer:
City StampsALIARASIAFORPDERETSIGEREENIGNELANOISSRSTRUCTURALESTATOEFLACFIORAINExp.IFB
AS NOTED
PERMIT SET
S2.4PERGOLAELEVATIONS
Item 16
Attachment B - Car Free California Avenue Pre-Approved Parket Plans
Item 16: Staff Report
Pg.
58 Packet Pg. 394 of 441
CONTACT:SCALE:
05-18-2026DATESET ISSUE
phone: 415.637.2460email: [email protected] Cross Rd, Oakland, CA 94618REI Build Up Designstructural engineer:
City StampsALIARASIAFORPDERETSIGEREENIGNELANOISSRSTRUCTURALESTATOEFLACFIORAINExp.IFB
AS NOTED
PERMIT SET
S3.0STRUCTURALDETAILS
Item 16
Attachment B - Car Free California Avenue Pre-Approved Parket Plans
Item 16: Staff Report
Pg.
59 Packet Pg. 395 of 441
NOT YET APPROVED
1 Ordinance No. ____
Ordinance of the Council of the City of Palo Alto Amending the Sign Code (PAMC section 16.20.160) to Allow Certain Signs in Conjunction with Parklets The Council of the City of Palo Alto does ORDAIN as follows:
SECTION 1. Findings and Declarations. The City Council finds and declares as follows:
A. The City authorizes parklets for outdoor dining and other uses in PAMC Chapter 12.11.
B. The City Council now desires to allow duly permitted parklet permittees to post certain kinds of signs in conjunction with a parklet without certain design reviews or toward counting toward maximum sign area or number limits.
SECTION 2. Subsection (c) is hereby added to section 16.20.160 (Special Purpose Signs) of Chapter 16.20 (Signs) of Title 16 (Building Regulations) of the Palo Alto Municipal Code to read as follows:
(c) Parklet Permit Required for Certain Parklet Signs. Signs for the special purposes set forth in this subsection (c) are permitted as provided herein without design review or permit issued under this Chapter as long as: (1) the applicable regulations for the parklet allow for one or more types of the signs below; (2) the sign(s) meet all requirements under PAMC Chapter 12.11 and its applicable regulations; and (3) the sign(s) (including design, placement, size, and any other requirements) are approved by valid parklet permit issued under PAMC Chapter 12.11. (1) One wall sign affixed to or painted on the parklet. A sign in compliance with this subsection shall not be in violation of PAMC section 16.20.130 and shall not count toward any limits on number or area of signs in section 16.20.130 (Wall signs) or 16.20.170 (Combinations of signs).
(2) One freestanding sign. A sign in compliance with this subsection shall not be in violation of PAMC section 16.20.100(a) and shall not count toward any limits on number or area of signs in section 16.20.120 (Freestanding signs) or 16.20.170 (Combinations of signs).
SECTION 3. Severability. If any provision, clause, sentence or paragraph of this ordinance, or the application to any person or circumstances, shall be held invalid, such invalidity shall not affect the other provisions of this Ordinance which can be given effect without the invalid provision or application and, to this end, the provisions of this Ordinance are hereby declared to be severable.
SECTION 4. Effective Date. This ordinance shall be effective on the 31st day after adoption.
SECTION 5. CEQA. The City Council finds and determines that this categorically exempt under CEQA regulation 15303 (new construction or conversion of small structures).
Item 16
Attachment C- Ordinance
Amending the Sign Code
(PMAC section 16.20.160)
Item 16: Staff Report
Pg.
60 Packet Pg. 396 of 441
2 INTRODUCED:
PASSED:
AYES:
NOES:
ABSTENTIONS:
ABSENT:
ATTEST:
____________________________ ____________________________ City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
____________________________ ____________________________ Assistant City Attorney City Manager
____________________________
Director, Public Works
____________________________
Director, Planning & Development Services
Item 16
Attachment C- Ordinance
Amending the Sign Code
(PMAC section 16.20.160)
Item 16: Staff Report
Pg.
61 Packet Pg. 397 of 441
1 2345678 9
10111213
20 2122
23 2524
26 27
T T T T
TTT
T
T
T T
81'
MH-043-2-21
MH
-043-2-13
DEPTH 3.86'
12"SD
1. EXISTING UTILITY FILE PROVIDED BY THE CITY
H:\PDATA\35101144\CADD\TransPW\CADD-In\City\2011-08-17 Utility Maps and Contact Info
2. REVISED BY RBF (TO MATCH SURVEY AND POTHOLE DATA)
3. REVISED BY RBF TO MATCH NEW UTILITY DRAWING PROVIDED BY THE CITY H:\PDATA\35101144\CADD\TransPW\CADD-In\City\2013-08-14 Autocad file for the Cal Ave Water repalcement Project 10+00
10+50
11+00
11+50
10+00
10+50
11+00
EXISTING GAS LINES EXR=TRACTED ROM THE EXISTING UTILITY FILE PROVIDED BY THE CITY SHIFTED/ROTATED TO MATCH RBF COORDINATE SYSTEM.
ORIGINAL FILES IN 2013-08-14 Autocad file for the Cal Ave Water replacement Project B-48
CV
B-16 B-9
B-16 M
B-16
M
B-9
B-16
M
M
EXISTING WATER LINES EXTRACTED FROM THE EXISTING UTILITY FILE PROVIDED BY THE CITY SHIFTED/ROTATED TO MATCH RBF COORDINATE SYSTEM.
ORIGINAL FILES IN 2013-08-14 Autocad file for the Cal Ave Water replacement Project SCALE: 1" = 20'
Story (4)
0’ 20’ 40’ 60’ 80’ 100’
1”=20’
Legend
Pedestrian Crossing
Pedestrian Pavement
Markings
Cafe Seating
Parklet
Setback
Gas Main
Retail
Restaurant
Commercial
Service/Office
VacantBike Racks
Farmers Market Tent
Tactile Directional
Indicator
Car Free California Avenue - Illustrative Plan Pedestrian Priority Public Space, Commercial Setbacks and Build-out of Pre-Approved Parklets & Cafe Seating
City of Palo Alto
5/14/26
El Camino Real
Birch Street
Ash Street
Mimosa Lane
Joanie’s CafeLa BohemeSekoyaUmeLotusMediterranean
Wrap
Kowa
Ramen
NamasteKali Greek
Bistro
La Bodeguita del MedioIzzy Eye Works Christian
Science
Reading
Room
Hairshaper’s
Club
Leaf & Petal Vin Vino Wine Mini Cat Town Casual
Chic
Salon
Square Pie
Guys
Zareen’sCalifornia Hotel Italico Croissant
California
Cafe
Anatolian
Kitchen
Zombie
Runner
Coffee
Palo
Alto
Sol
Sun of
WolfCountry Sun
Natural FoodsTerun PizzaJin Sho
The
Cobblery414 California Avenue Summit Bikes
California
Paint
Company
Spoke & Weal Performance GainesTerun
Omomi
Lash &
PMU
Abbey
Neuro-
psychology
Clinic
Massage
Therapy
CenterTechCU
Citibank
California Avenue
Optometry
Lee
Aldinger
Insurance
La Jolie
Nails
Salon
Item 16
Attachment D - Pedestrian Priority Public Space with Bikes Allowed Concept
Item 16: Staff Report
Pg.
62 Packet Pg. 398 of 441
1 2345678 9
10111213
20 2122
23 2524
26 27
T T T T
TTT
T
T
T T
81'
MH-043-2-21
MH
-043-2-13
DEPTH 3.86'
12"SD
1. EXISTING UTILITY FILE PROVIDED BY THE CITY
H:\PDATA\35101144\CADD\TransPW\CADD-In\City\2011-08-17 Utility Maps and Contact Info
2. REVISED BY RBF (TO MATCH SURVEY AND POTHOLE DATA)
3. REVISED BY RBF TO MATCH NEW UTILITY DRAWING PROVIDED BY THE CITY H:\PDATA\35101144\CADD\TransPW\CADD-In\City\2013-08-14 Autocad file for the Cal Ave Water repalcement Project 10+00
10+50
11+00
11+50
10+00
10+50
11+00
EXISTING GAS LINES EXR=TRACTED ROM THE EXISTING UTILITY FILE PROVIDED BY THE CITY SHIFTED/ROTATED TO MATCH RBF COORDINATE SYSTEM.
ORIGINAL FILES IN 2013-08-14 Autocad file for the Cal Ave Water replacement Project B-48
CV
B-16 B-9
B-16 M
B-16
M
B-9
B-16
M
M
EXISTING WATER LINES EXTRACTED FROM THE EXISTING UTILITY FILE PROVIDED BY THE CITY SHIFTED/ROTATED TO MATCH RBF COORDINATE SYSTEM.
ORIGINAL FILES IN 2013-08-14 Autocad file for the Cal Ave Water replacement Project SCALE: 1" = 20'
Story (4)
0’ 20’ 40’ 60’ 80’ 100’
1”=20’
Legend
Pedestrian Crossing
Pedestrian Pavement
Markings
Cafe Seating
Parklet
Setback
Gas Main
Retail
Restaurant
Commercial
Service/Office
VacantBike Racks
Farmers Market Tent
Tactile Directional
Indicator
Car Free California Avenue - Activation Setback Plan Commercial Use Setbacks and Illustrative Build-out of Pre-Approved Parklets & Cafe Seating City of Palo Alto
5/14/26
El Camino Real
Birch Street
Ash Street
Mimosa Lane
12’17’ 8’
34’34’ 22’
34’34’ 22’
30’27.5’
12’
12’
Joanie’s CafeLa BohemeSekoyaUmeLotusMediterranean
Wrap
Kowa
Ramen
NamasteKali Greek
Bistro
La Bodeguita del MedioIzzy Eye Works Christian
Science
Reading
Room
Hairshaper’s
Club
Leaf & Petal Vin Vino Wine Mini Cat Town Casual
Chic
Salon
Square Pie
Guys
Zareen’sCalifornia Hotel Italico Croissant
California
Cafe
Anatolian
Kitchen
Zombie
Runner
Coffee
Palo
Alto
Sol
Sun of
WolfCountry Sun
Natural FoodsTerun PizzaJin Sho
The
Cobblery414 California Avenue Summit Bikes
California
Paint
Company
Spoke & Weal Performance GainesTerun
Omomi
Lash &
PMU
Abbey
Neuro-
psychology
Clinic
Massage
Therapy
CenterTechCU
Citibank
California Avenue
Optometry
Lee
Aldinger
Insurance
La Jolie
Nails
Salon
Item 16
Attachment E- Car Free California Avenue Setback Plan
Item 16: Staff Report
Pg.
63 Packet Pg. 399 of 441
Item 16
Attachment F - User Guide
and Applicant Checklist for
Cal Ave Preapproved
Parklets
Item 16: Staff Report
Pg.
64 Packet Pg. 400 of 441
HOW TO PREPARE YOUR APPLICATION
3 PRE-APPROVED PLAN SET
The Pre-approved parklet plans for Cal Ave are available for download on the City's website here. After reviewing this guide, confirming your eligibility and beginning to plan your parklet design, work with your contractor to finalize your parklet design and prepare your plan set. You or or contractor will indicate your parklet information, site plan, and design selections directly on the pre-approvced plan set in the marked areas. Please fill out ALL applicable marked areas on the plan set to streamline your permit review process.
DOWNLOAD THE PRE-APPROVED PLAN SET
Go to the City's website to download the
plan set.
www.CityofPaloAlto.org/Parklets
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3 Cr<Nte Pre-AppUc;atioo
,.,. __ _ ·-·------,_, _ _,.,,,,,_ .. _ ........ _________ __ --
WORK WITH YOUR CONTRACTOR TO PREPARE THE PLAN SET
The green shaded areas of
the plan set indicate the areas
that you and your contractor
must fill out, including:
• Selecting your design
features and parkelt type.
• Filling in the required
parklet information.
• Indicating your materials
choices
• Planning your site and
parklet configuration.
CITY OF PALO ALTO PREAPPROVED PARKLETSFORCALAVE- 2026
Item 16
Attachment F - User Guide
and Applicant Checklist for
Cal Ave Preapproved
Parklets
Item 16: Staff Report
Pg.
65 Packet Pg. 401 of 441
HOW TO PREPARE YOU APPLICATION
4 APPLICATION PROCESS & CHECKLIST
The pre-approved parklet process is outlined below, including the Application Checklist.
Ensure you submit ALL the required checklist items for review.
PREPARE
• Review the Checklist below
• Plan your parklet
• Determine if you need a letter of consent (see Appendix A) • Consult your contractor and finalize parklet design
APPLICATION CHECKLIST
D Permit Application (See appendix for application)
D Certificate of Insurance (See appendix for guidelines) D Letter(s) of Consent (if applicable) (See appendix for sample letter of consent) D Electric Permit (if applicable)
□ HAZMAT Permit (if applicable)
D Completed Pre-Approved Plan Set
D All product specification sheets
MINISTERIAL REVIEW
PLAN APPROVAL, PERMIT PAYMENT & PERMIT ISSUANCE
( CONSTRUCTION & INSTALLATION
INSPECTIONS
( ONGOING MAINTENANCE
( PARKLET PERMIT RENEWAL (every year)
PARKLET REMOVAL (as needed)
CITY OF PALO ALTO PREAPPROVED PARKLETSFORCALAVE- 2026
)
)
)
Item 16
Attachment F - User Guide
and Applicant Checklist for
Cal Ave Preapproved
Parklets
Item 16: Staff Report
Pg.
66 Packet Pg. 402 of 441
Item 16
Attachment F - User Guide
and Applicant Checklist for
Cal Ave Preapproved
Parklets
Item 16: Staff Report
Pg.
67 Packet Pg. 403 of 441
Item 16
Attachment F - User Guide
and Applicant Checklist for
Cal Ave Preapproved
Parklets
Item 16: Staff Report
Pg.
68 Packet Pg. 404 of 441
‐‐‐PW STAFF USE ONLY‐‐‐
SPECIAL PROVISIONS
1. Permittee shall provide the City evidence of Personal Injury and Property Damage insurance in a form acceptable to the City’s Risk Manager, in the minimum amounts of $2,000,000 each for personal injury and property damage or else as indicated below. Said insurance shall name the City of Palo Alto, its officers and employees as an additional insured and sh all be primary insurance with any City insurance being excess only. Said insurance shall be maintained so long as this permit remains in force, and evidence of said current insurance and subsequent renewals shall be submitted to the City of Palo Alto, Public Works Engineering Division.
2. Encroachment, construction or use shall not extend beyond the area identified and specified as part of this permit.
3. Encroachment shall not restrict visibility to any traffic control devices or signs.
4. No encroachment is permitted in exclusive bike lanes (where parking is not permitted); bus stops, or "no parking zones" unless specifically authorized within this permit.
5. Encroachment shall not block or cover access to any utility pole, manhole, vault, cleanout, valve, junction or meter box.
6. Permittee shall maintain encroaching or constructed facility and/or the property in a good and safe condition. Construction shall be in conformance with plans approved by the City.
7. Parklet requires Public Works Inspection prior to the start of construction.
8. Whenever construction, reconstruction or maintenance work to City facilities requires relocation or modification of the encroachment, construction or use, such relocation or modification work shall be done by Permittee at Permittee's sole expense.
9. Permittee shall assure adequate visibility of encroachment, construction or use during daytime and nighttime hours.
10. Permittee shall conform to all requirements of the Palo Alto Traffic Control Manual, as applicable.
11. Any public and/or private improvements damaged by the encroaching activities must be repaired or replaced in‐kind to the satisfaction of the improvement owner and at Permittee expense.
12. Permittee shall comply with all applicable law including the Palo Alto Municipal Code, State and County Health Orders in effect, and City ordinances, resolutions and regulations/guidelines (including the Parklet Standards, Requirements for parklets and Weatherization Standards).
13. Permittee shall maintain the site in accordance with the parklet cleanliness standards.
14. See Attachment(s) A B C D E F for addition al permit conditions.
15. OTHER:X
(A) This permit does not authorize the use of electric and propane devices.
Such uses require the approval of a separate electrical and hazmat permit.
(B) Expiration provisions: Applicant shall renew this permit within 4 weeks of expiration. Expiration date is 1 year from date of permit issuance.
(C) Insurance Provisions: See Item 1 above. Applicant shall maintain valid insurance for the life of the permit.
Item 16
Attachment F - User Guide
and Applicant Checklist for
Cal Ave Preapproved
Parklets
Item 16: Staff Report
Pg.
69 Packet Pg. 405 of 441
S:\PWD\ENG\FORMS\Insurance\Insurance Certificate Submission Requirements.docx Rev 3/9/15 To obtain a permit for working or placing a private facility in the public right- of-way or public property, it is necessary to file with the Public Works Engineering Services Division an approved insurance certificate prior to permit issuance. See reverse page for sample certificate.
COVERAGE REQUIREMENTS
Coverage Type Requirement Minimum Limits*
EACH OCCURRENCE AGGREGATE
Comprehensive General Liability:
INCLUDING:
Occurrence-based Coverage
Personal Injury
Broad Form Property Damage
Blanket Contractual
Bodily Injury
Property Damage
Bodily Injury & Property
Damage Combined
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
Comprehensive Automobile Liability**:
INCLUDING:
Owned
Hired
Non-Hired
Bodily Injury (Each Person)
Bodily Injury (Each Occurrence)
Property Damage
Bodily Injury & Property
Damage Combined
$1,000,000
$1,000,000
$1,000,000
$1,000,000
* These minimums may be raised for some permits based on the evaluation by the City Risk Manager. ** Automobile liability insurance is required for a Street Work Permit only. (A) BEST’S KEY RATING GUIDE Required insurance coverage shall be provided through carriers with a Best’s Key Rating of A:VII or higher and are admitted to do business in the State of California. The certificate of insurance must be completed and executed by an authorized representative of the company providing insurance. This required insurance must be maintained for the life of the permit. (B) ADDITIONAL INSURED For the Comprehensive General Liability policy, provide an endorsement that explicitly names the city as additional insured with the following statement: “The City of Palo Alto, its Officers, Officials, Employees, Agents and Volunteers are named additional insured ”. This statement must be placed on a CG 20 12 (Additional Insured - State or Political Subdivision - Permits) . The form must state the policy number(s) to which it applies and be certified by an authorized insurance agent. Reference to this attachment must be provided on the face of the certificate.
(C) PRIMARY COVERAGE An included endorsement and statement on the certificate specifying the following: “This insurance is primary coverage and that any city insurance is excess coverage only ”. (D) CERTIFICATE HOLDER The City of Palo Alto, Public Works Engineering Services Division, 285 Hamilton Avenue Palo Alto CA 94301, must be named as Certificate Holder.
(E) CRANE WORK Where work involves a crane, riggers coverage shall be provided in the amounts above. (F) POLICY NUMBERS Relevant policy numbers must be shown on the face of the certificate and all attachments. (G) INSURED NAME The insured shall be the same party as the applicant. If the application is made for a "d.b.a." name, that name must also appear on the certificate as an insured. (H) CANCELLATION The provision for 30 day notice to the City of Palo Alto for cancellation or change of coverage. (I) EFFECTIVE PERIOD There must be a definite period of applicability. "Open" or "continuous" are not acceptable expiration dates.
(J) INDEMNIFICATION The liability insurance policy shall include a contractual liability endorsement providing insurance coverage for the Permittee’s agreement to indemnify the City. -- Please see reverse for sample certificate –
Insurance Certificate Submission Guide
PUBLIC WORKS
Engineering Services Division
[email protected] – 650.329.2151
Item 16
Attachment F - User Guide
and Applicant Checklist for
Cal Ave Preapproved
Parklets
Item 16: Staff Report
Pg.
70 Packet Pg. 406 of 441
Item 16
Attachment F - User Guide
and Applicant Checklist for
Cal Ave Preapproved
Parklets
Item 16: Staff Report
Pg.
71 Packet Pg. 407 of 441
Item 16
Attachment F - User Guide
and Applicant Checklist for
Cal Ave Preapproved
Parklets
Item 16: Staff Report
Pg.
72 Packet Pg. 408 of 441
CITY COUNCIL
Staff Report
From: City Manager
Report Type: ACTION ITEMS
Lead Department: Planning and Development Services
Meeting Date: June 1, 2026
Report #: 2605-6397
TITLE
Receive Update and Provide Direction to Staff on the Implementation of Senate Bill 79 (SB 79) and the Work Related to the Downtown Housing Plan. Adoption of Two Temporary Ordinances Implementing SB 79, Adopting a Transit Oriented Development Combining District, Excluding Certain Sites from Government Code Section 65912.157, and Authorizing the Planning and Development Services Director to Make Corresponding Updates to the Zone Map. CEQA Status:
Exempt Under Government Code section 65912.161(c)(2).
RECOMMENDATION
Staff and the SB 79 / Downtown Housing Plan Ad Hoc recommend that the City Council:
1. Receive an update on the approaches for the implementation of Senate Bill (SB) 79 (2025) and work related to the Downtown Housing Plan;
2. Introduce a temporary ordinance (Attachment B) excluding historic resources designated on the City’s local register as of January 1, 2025, from the development standards otherwise applicable under SB 79, through one year following adoption of the City’s 7th Housing Element;
3. Introduce a temporary ordinance (Attachment C) establishing development standards for all transit-oriented development (TOD) eligible parcels subject to SB 79 at 50 percent of the otherwise allowable development capacity authorized under State law, and simultaneously exempting those properties from default SB 79 standards through one year following adoption of the City’s 7th Cycle Housing Element;
4. Direct staff to return with interim urgency versions of the above ordinances to be introduced and adopted on June 15, 2026, when the above ordinances are agendized for second reading.
5. Direct staff to prepare permanent ordinances to be presented to the Planning and Transportation Commission, incorporating the provisions of the interim ordinances and any additional provisions necessary and beneficial in implementation of SB 79.
Item 17
Item 17 Staff Report
Item 17: Staff Report
Pg.
1 Packet Pg. 409 of 441
6. Direct staff to continue work to advance and complete the Downtown Housing Plan and amend the scope of work as appropriate to take into consideration implementation of SB 79.
EXECUTIVE SUMMARY
This item was originally scheduled for the March 9, 2026, City Council meeting and was rescheduled to the May 4, 2026, City Council meeting, and subsequently to the June 1, 2026, City Council meeting.
SB 79 will take effect on July 1, 2026. The legislation is intended to facilitate the development of multi-family housing on land located in proximity to qualifying transit stations, thereby promoting transit-oriented development through the establishment of new minimum standards for building height, residential density, and floor area. In the City of Palo Alto, numerous parcels are located within the influence areas of three qualifying transit stations: two Caltrain stations within the City of Palo Alto and one Caltrain station in the City of Mountain View adjacent to Palo Alto.
This report provides an overview of the implications of SB 79, outlines the next potential steps for the citywide implementation of state law through ordinances and policy options for City Council consideration and direction.
BACKGROUND
SB 79, codified in Government Code Section 65912.155, et seq., supersedes locally adopted standards for density, floor area ratio (FAR), and height in TOD zones. These new standards are for housing projects proposed on qualifying sites located within one-half mile of a TOD stop, provided the development meets specified statutory requirements. Local jurisdictions may adopt an ordinance to exempt historic properties or may prepare a TOD Alternative Plan that modifies applicable development standards, subject to review and approval by the California Department of Housing and Community Development (HCD). Sites within the SB 79 influence areas zoned at 50 percent of the standards in State law may also be exempted until one year after the adoption of the 7th cycle Housing Element amendment (January 31, 2032).
On October 22, 20251, staff provided the City Council an update on the Downtown Housing Plan and an overview of SB 79 and requested direction on the implementation of the State law. The classification of qualifying transit stops, and key statutory provisions discussed in that report are highlighted below:
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Distance from Pedestrian Access Point to a TOD Stop
Tier 1 TOD Stop (Caltrain)Development
Standard Up to ¼-mile Up to ½-mile
“Adjacent”
(within 200’)
Bonus Height,
Density, and
Residential FAR
Height3 75' 65' 95'
Density 120 du/ac 100 du/ac 160 du/ac
Residential
Floor Area
Ratio (FAR)
3.5 3.0 4.5
The City Council appointed a SB 79 / Downtown Housing Plan Ad hoc Committee (Councilmembers Burt and Lauing) to further evaluate the implications of SB 79. Staff met with the Ad hoc Committee three times (January 27th, March 25th, and April 21st) since it was formed and presented information on areas affected by SB 79, projected residential development, and policy options for Council consideration.
Staff prepared the May 4, 20264, staff report outlining potential approaches for implementing State law and identifying options available for the Downtown Housing Plan based on direction from the Ad hoc Committee. The staff report also presented the Ad hoc Committee’s recommendations for Council consideration. The discussion was rescheduled at the Council’s direction. Staff now advise that the Council should select one of the options for addressing SB 79, which requires a local ordinance, that the Council adopt both the urgency and non-urgency ordinances prior to July 1, 2026. Delaying adoption of the ordinances would create a gap between the implementation date of SB 79 and the adoption of a local exclusion authorized in the law.
ANALYSIS
SB 79 implementation is limited to sites that meet specific statutory eligibility criteria, including applicable zoning designations and proximity to qualifying transit stops (Attachment A).
Metropolitan Transportation Commission (MTC), the region’s designated Metropolitan Planning 3 Note that a qualifying project may use the standards in SB 79 as its base density under state density bonus law; however, if the project exceeds the City’s height limit due to the provisions of SB 79, the City is not required to grant an additional height waiver.
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Organization, is required to prepare and publish official maps identifying applicable TOD zone boundaries. Staff has seen preliminary drafts that are generally aligned with staff expectation.7 On March 20, 2026, HCD issued an advisory memorandum providing clarifications on key SB 79 definitions to assist the state's Metropolitan Planning Organizations in completing their required transit stops mapping prior to the law's July 1, 2026, effective date. The advisory establishes HCD's interpretive positions on critical terms including transit stop tiers, qualifying service types, and distance measurement methodology, and confirms that SB 79 will take effect in seven California counties, including Alameda, Los Angeles, Sacramento, San Diego, San Francisco, San Mateo, and Santa Clara.
Attachment A of this report is staff’s analysis of SB 79 TOD zones and eligible parcels within the City. These maps closely align with the draft maps available on MTC’s webpage and are subject to revision upon release of the official maps by MTC. The analysis discussed was presented to the City Council’s Ad Hoc Committee.
A summary of the key takeaways from the analysis is provided below:
SB 79 significantly reshapes development near transit:
SB 79 establishes state-mandated maximums for height, density, and FAR on qualifying parcels near Caltrain stations, substantially limiting the City’s discretion under existing zoning and adopted planning frameworks. Cities can adopt an Ordinance temporarily exempting sites that are: within a Very High Fire Hazard Severity Zone, subject to Flooding, are Historic Resources listed in the local register, or that are zoned for high density residential use providing at least 50% of the capacity required by SB 79. Downtown Housing Plan Scope Is Smaller Than SB 79 Impact Area:
While the University Avenue/Downtown Priority Development Area encompasses approximately 206 acres, the Downtown Housing Plan covers only 76 acres. In contrast, SB 79 affects a much larger area; approximately 325.23 acres, around the Downtown/University Avenue Caltrain Station. This includes the Downtown Housing Plan area, South of Forest Avenue (SOFA) areas, the transit center, and Stanford Shopping Center.
Historic resources require consideration:
Downtown Palo Alto and the San Antonio Road area contain a high concentration of historic properties or properties within historic districts. SB 79 includes limited provisions for the protection of historic resources on the local register. The City is allowed to adopt an ordinance to temporarily ensure these resources are protected.
Ongoing protection is achievable only by adopting, prior to January 31, 2032, a TOD Alternative Plan; even then, protected historic resources cannot exceed 10% of the area 7 https://experience.arcgis.com/experience/934f95609d6b45c5be0f8f0030c01436?draft=true Item 17
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of a TOD zone under the current law. SB 79 currently does not provide express guidance on the treatment of historic districts on the State or the National registers, but it appears that a local ordinance may protect historic districts in addition to individual historic structures. This is subject to change with additional guidance from HCD. Small parcel sizes limit realistic redevelopment potential:
Feasibility analysis indicates that parcels smaller than approximately 5,200 square feet are less likely to redevelop, unless multiple parcels are combined. This reduces development potential particularly in the Downtown/University Avenue area, limiting the number of sites that can realistically take advantage of SB 79 standards. Historically, there has been little interest for lot consolidation in Palo Alto, even with development incentives.
Redevelopment is likely to occur on a limited subset of eligible land:
Although SB 79 enables substantial theoretical housing capacity across all three station areas, the realistic capacity is substantially lower and difficult to translate into future unit production. To illustrate potential housing growth over the next 25 years within these TOD areas, staff conducted a screening-level analysis that excluded parcels less likely to redevelop, including those with historic resource designations, properties redeveloped within the last 25 years, small lots that would not support feasible redevelopment or meet SB 79 unit density standards, public facility and planned community zoned properties, transit-owned land, sites with condominium subdivision maps, and properties with office development exceeding 1.5 times the parcel area.
After applying these filters, staff estimates a more realistic picture of developable property as follows:
oDowntown/University Avenue Transit Station Area: Approximately 163 acres oCalifornia Avenue Transit Station Area: Approximately 222 acres oSan Antonio Transit Station Area: Approximately 32 acres Further discounting is necessary, however, because redevelopment is costly and carries risk for developers. Many property owners will be satisfied leaving their properties as-is despite the potential for increased housing development. Staff anticipates that the vast majority of single-family homeowners are unlikely to pursue apartment buildings on their property, although some may choose to do so. A review of development activity over the past 25 years shows that only ten percent of all parcels were redeveloped, with exceedingly few single-family zoned properties converting to multifamily housing.
Applying a ten percent redevelopment factor consistent with this historical activity, and a one percent factor for single-family zoned property, staff can estimate a theoretical range of future housing production from SB 79 for each transit station area over the Item 17
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next 25 years. These figures are not a projection or formal estimate; they are simply a calculation based on screening criteria and existing baseline data and are subject to numerous variables that cannot be fully accounted for through this type of screening- level analysis.
oDowntown/University Avenue Transit Station Area: Approximately 1600 units oCalifornia Avenue Transit Station Area: Approximately 900 units oSan Antonio Transit Station Area: Approximately 200 units The above analysis does not account for recent changes to state law that promote greater development potential including exemptions to the California Environmental Quality Act, allowances for taller buildings, greater floor area, reduced parking requirements, and state density bonus concessions and waivers and application streamlining. These measures add greater predictability to the development process and may encourage additional property owners to consider redevelopment. During discussions with the Council Ad hoc Committee, it was recognized that the city can reasonably anticipate greater housing production over the next 25 years than it has experienced historically, due in large part to state mandates promoting increased housing production. In reviewing projected housing demand, the Ad Hoc considered a realistic capacity up to 20% increase – a potential doubling of the initial staff estimate. California Avenue faces the greatest zoning shift:
The California Avenue SB 79 area contains a substantial proportion of single-family zoned property, including larger 10,000 square foot lots in the Old Palo Alto neighborhood that would not require land consolidation to support apartment development. New construction built to SB 79 standards may appear contextually inconsistent with the historic development pattern northeast of the Caltrain station.
The commercial areas along and near California Avenue have seen little significant redevelopment in recent years, due in part to small lot sizes and the former requirement for on-site parking, both of which made redevelopment economically impractical. The interaction of SB 79 with other state laws could catalyze future housing or mixed-use development, with uncertain implications for the area's retail environment. New development may also lack coordinated design or placemaking, with larger parcels likely proving more attractive for redevelopment than smaller ones. San Antonio Road area raises unique historic district uncertainties:
San Antonio Road area includes large concentrations of Eichler homes and a designated historic district listed on the National Register. SB 79’s treatment of historic districts, where individual properties are not separately listed, may be the subject of additional Item 17
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guidance from HCD. Because exclusion of historic sites is limited to 10% of TOD land area after January 31, 2032, not all historic sites can be protected in the long term. The Economic Feasibility Analysis prepared for the Downtown Housing Plan remains rele vant:
While SB 79 provides development opportunities to owners of qualifying properties, the feasibility of such projects depends on market conditions, broader market trends, site constraints, competing uses, impact fees, and inclusionary housing requirements. This is outlined in the Economic Feasibility Analysis prepared for the Downtown Housing Plan, which was included as Attachment A to the October 22, 2025, City Council Staff Report9. State Density Bonus Law:
SB 79 projects are eligible to use State Density Bonus Law to seek a density bonus, incentives or concessions, waivers or reductions for development standards and parking ratios10. The density allowed under SB 79 serves as the base density for calculating the density bonus. However, a project proposing a height allowed by SB 79 that is more than the local height limit is ineligible for a waiver for additional height beyond that specified in SB 79. This does not apply for 100% affordable projects located within one- half mile of a major transit stop.
Assembly Bill (AB) 130 (2025):
AB 130 (2025)11 significantly streamlines housing development approvals in urban communities by creating a new statutory exemption from CEQA for qualifying infill residential projects. This means that qualifying residential or mixed-use infill projects (generally up to 20 acres) that are consistent with either applicable Comprehensive Plan or zoning regulations (as modified by SB 79 and/or state density bonus law) could bypass CEQA review entirely, with an accelerated permitting timeline. The exemption applies to projects meeting minimum density thresholds, and site qualifications (i.e., not located in floodplains, fault zones, wetlands, or very high fire severity zones, not a hazardous waste site, and not demolishing a historic structure).
AB 130 amends the Permit Streamlining Act by imposing strict timelines for City review and approval. If the City does not act within 30 days following its objective standards review and the required tribal consultation, a project may be deemed automatically approved. This substantially reduces staff’s ability to present projects for review by the ARB, PTC, or City Council.
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Developers must comply with the new labor standards for 100% affordable housing projects and buildings over 85 feet in height, meet air quality requirements, and perform contamination cleanup as appropriate. The law does not alter State Density Bonus Law provisions, including waivers and parking reductions. This means that in addition to the increased FAR permitted under SB 79, developers could seek to waive maximum lot size limitations in residential zones, setbacks, open space requirements, site coverage, daylight plane requirements, or even retail preservation requirements through the State Density Bonus Law.
Assembly Bill (AB) 2097 (2022): AB 2097 (2022) 15:
Eliminates minimum parking requirements for new development (residential, commercial, and most other uses) located within one-half mile of high-quality transit service (i.e., major transit stops such as the Caltrain Station). This essentially prohibits local governments from enforcing minimum parking requirements for qualifying projects. In Palo Alto, the State law is applicable to all properties that lie within one-half mile radius of the University Avenue, California Avenue, and San Antonio Road Caltrain Stations.
Assembly Bill (AB) 2576 (2026): AB 2576 (Harabedian):
Currently under consideration in the California Legislature, proposes amendments to the provisions of SB 79. As currently drafted, AB 2576 would expand the definition of eligible historic resources to expressly include resources in the local and State registers.
Additionally, it would remove the existing limitation that restricts the exclusion of historic resource sites to no more than 10 percent of the total TOD zone area. At the time of this report, AB 2576 remains pending in the State Legislature and has not been enacted.
Other bills under consideration during this legislative session that would amend SB 79 do not have any impact to Palo Alto at this time but could be further amended before this session ends.
SB 79 Implementation Options:
On January 27, 2026, staff presented four potential approaches to implementing SB 79 based on what the State law permits to the Ad hoc, each reflecting varying levels of effort and scope.
These approaches considered:
Existing and ongoing planning initiatives;
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Anticipated additional workload and its potential impact on City Council priorities for the current year;
Expected near term planning initiatives;
Staff capacity and available resources;
Fiscal implications;
Opportunities for community engagement; and
Review and approval timeline established by HCD pursuant to the state law.
While all four approaches advance the State’s pro-housing objectives, they differ in the degree to which the City exercises local control. The City may choose to allow SB 79 to preempt local codes, adopt an ordinance clarifying how SB 79 applies locally, including exclusion of historic properties, adopt an ordinance upzoning and temporarily exempting non-historic parcels in the TOD zones, and/or prepare a Transit-Oriented Development (TOD) Alternative Plan, based on the considerations outlined above. A TOD Alternative Plan requires environmental assessment and is subject to HCD review.
In addition, the Ad Hoc reviewed options related to the Downtown Housing Plan and consideration of whether this effort should continue in light of SB 79 broader reach over the Downtown area. Discontinuing work on the Downtown Housing Plan would not require the City to return MTC grant funds that have already been paid to the City.
Four SB 79 implementation approaches are listed below. The Ad Hoc recommends a combination of Approach 2 and 3 below.
Approach 1: No action on SB 79
Under this approach, the default development standards established by SB 79 would take effect on July 1, 2026, for all qualifying TOD zones. This approach requires no action by the City and no review by HCD, resulting in automatic compliance with State law.
However, it provides the least amount of local control and community input and does not protect historic resources.
Approach 2: Adopt a Local Implementing Ordinance / Protect Historic Resources Under this approach, the default SB 79 standards would still take effect on July 1, 2026, but the City would adopt an ordinance clarifying the application of SB 79 locally and identify sites that are exempt. This approach provides additional local control and community input and allows for the temporary exemption of historic resources.
Adoption of the ordinance would be subject to HCD review; however, prior approval is not required. If this option were selected, staff recommend adoption of both a temporary ordinance and an interim urgency ordinance, with the first reading of the Item 17
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temporary ordinance at tonight’s meeting, followed by a second reading on the consent calendar on June 15, 2026, at which time the interim urgency measure would also be introduced and adopted. This approach ensures that there is no “gap,” after July 1, 2026 and before the temporary ordinance becomes effective, where historic resources are not protected. The permanent ordinance adoption through the Planning and Transportation Commission (PTC) and City Council will happen later in the year. SB 79 includes a statutory exemption from CEQA review for ordinances that implement the new state law. All ordinances implementing SB 79 are subject to review and approval by HCD.
Approach 3: Rezone all TOD eligible sites to allow 50 percent of the SB 79 development p otential
Pursuant to Government Code Section 65912.161(b), sites can be exempted from SB 79 default standards through January 31, 2032, if they allow at least 50 percent of SB 79 base density standards. Under this approach, the City would amend the zoning to allow TOD-eligible sites to meet this 50% threshold standard and subsequently exempt those sites from SB 79 until January 31, 2032. This option provides the city approximately six years to consider advancing a TOD Alternative Plan to address future housing production and plan for infrastructure upgrades in anticipation of future growth. The cities of Los Angeles and San Francisco are both reportedly exploring this option17.
Should the Council select this approach, staff recommend adoption of both a temporary ordinance and an interim urgency ordinance as explained for Approach 2 above. Approach 4: Prepare a TOD Alternative Plan
Under this approach, the default SB 79 standards would take effect on July 1, 2026, while the City concurrently prepares a TOD Alternative Plan applicable to all TOD zones.
The TOD Alternative Plan could include targeted development standards, infrastructure planning, and a structured community outreach process. Adoption of a TOD Alternative Plan would render planning efforts such as the Downtown Housing Plan redundant and may overlap to some degree with other work related to Housing Element Program 3.7:
Objective Design Standards for the SOFA area. The approach, however, provides greater local control and public input, but would require several hundred thousand dollars for consultant work and significant staff resources, both of which are currently unaccounted for and resourced. The TOD Alternative Plan would be subject to HCD review and approval. The other options do not preclude the Council from adopting a TOD Alternative Plan in the future, however, selecting Approach 4 without combining it with Approach 2 and/or 3 would allow for development under the state standards until 17 Cal Matters article, dated April 15, 2026: https://calmatters.org/housing/2026/04/sb-79-implementation/ Item 17
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the TOD Alternative Plan is adopted, potentially creating inconsistencies in development patterns.
Options for the Downtown Housing Plan:
As noted above, continuing with the Downtown Housing Plan with SB 79 Implementation Approach 4 is not recommended, but remains an option for the other approaches.
The Council Ad Hoc recommends Option B to continue work on the Downtown Housing Plan. Option A: Refocus the Downtown Housing Plan on Development Standards:
Redirect the Downtown Housing Plan effort toward developing objective standards for the downtown area and exploring lot consolidation opportunities. This option would produce updated development standards but not a completed area plan policy document. It utilizes existing grant funding productively; supports future objective standards for SOFA II; allows for nuanced solutions addressing small lot sizes and other downtown constraints.
Option B: Resume and Complete the Downtown Housing Plan:
Resume the full Downtown Housing Plan effort, modeling the plan on SB 79 standards while addressing other local considerations. This option results in a completed area plan policy document.
Option C: Discontinue the Downtown Housing Plan:
Discontinue work on the Downtown Housing Plan, recognizing that SB 79 largely establishes development potential for the area. This approach recaptures approximately $378K to the General Fund. Not recommended in part due to concerns expressed about San Antonio Area Plan and increased housing production in that area but also has reputational considerations that may impact future funding opportunities.
Proposed Ordinances
Since the May 4, 2026, City Council discussion of this item was continued to a later date. Staff has identified a potential timing issue associated with implementation of the proposed local ordinances prior to SB 79’s July 1, 2026, effective date. Specifically, because ordinances are generally subject to two readings and a 30-day referendum period, an ordinance introduced at this hearing would not be effective until July 16, 2026, approximately two weeks after SB 79 goes into effect. To address this issue, staff recommends that the City Council adopt interim, urgency ordinances, which go into effect immediately, on June 15, 2026, as well as the temporary ordinances provided with this report.
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Historic Resource Exemption Ordinance
Under Government Code Section 65912.161, local jurisdictions may adopt an ordinance temporarily exempting qualifying historic resources from the default development standards established under SB 79. The draft ordinance (Attachment B) includes detailed findings and declarations regarding the need to adopt the ordinance on an interim basis without first obtaining a recommendation from the Planning and Transportation Commission.
The urgency version of the ordinance would additionally contain the City Council’s findings that the default SB 79 standards would create development pressure that could lead to the loss of historic resources within TOD areas, which represents a current and immediate threat to the public health, safety, or welfare.
The ordinance excludes all historic resources designated in the Palo Alto Historic Resources Inventory from the default standards under SB 79. It also authorizes and directs the Planning Director to update the Zoning Map to indicate which sites and TOD areas are and are not subject to SB 79 default standards.
50 percent SB 79 Development Standards Ordinance
Government Code Section 65912.161(b) authorizes local jurisdictions to exempt TOD eligible parcels from the default SB 79 standards where local zoning allows development capacity equal to at least 50 percent of the applicable SB 79 density and floor area ratio standards.
Staff has prepared a draft ordinance (Attachment C) establishing a TOD Combining District to implement SB 79 using the 50 percent capacity framework. The ordinance includes findings similar to those made in the proposed historic resources exemption ordinance. The urgency version of the ordinance would additionally contain the City Council’s findings that the default SB 79 standards would create development pressure that would result in increased demands on public infrastructure, transportation facilities, and bicycle and pedestrian circulation systems within TOD areas, which represents a current and immediate threat to the public health, safety, or welfare.
The proposed ordinance would:
Add Section 18.14.070 to the PAMC establishing a TOD Combining District; Apply the TOD Combining District to all sites within a TOD zone except sites excluded from SB 79 as local historic resources;
Establish development standards for sites subject to the TOD Combining District that permit development capacity equal to at least 50 percent of the default SB 79 standards;
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Temporarily exclude TOD eligible parcels subject to the TOD Combining District from application of the Government Code Section 65912.157 through one year following adoption of the City’s seventh cycle Housing Element; and, Authorize corresponding zoning map updates identifying sites subject to the standards of the TOD Combining District and sites excluded from SB 79.
The proposed development standards for the TOD combining district are as follows, unless the underlying zoning is more permissive:
For sites within one-quarter mile of a TOD stop, a maximum floor area ratio of 1.75:1; For sites located between one-quarter mile and one-half mile of a TOD stop, a maximum floor area ratio of 1.5:1;
For sites adjacent to a TOD stop, a maximum floor area ratio equal to the greater of
2.25:1;
Minimum setbacks consisting of ten-foot front and rear setbacks and four-foot side setbacks; and,
Daylight plane standards starting at a height of 16 feet at the property line and extending at a 45-degree angle.
The TOD Combining District would generally retain underlying zoning district standards except where modified by the interim TOD development standards.
Relationship Between Temporary/Urgency Ordinances and Future Permanent Zoning Ordinances
Staff anticipates that the temporary and interim urgency ordinances and companion zoning ordinances would operate together as a phased implementation framework. The temporary and urgency ordinances would provide immediate interim protections and development standards necessary as of July 1, 2026, while the permanent zoning ordinances could allow more nuanced standards if warranted, and review by the Planning and Transportation Commission.
This phased approach is intended to:
Avoid a regulatory gap between SB 79’s effective date and completion of local zoning amendments;
Preserve local planning authority to the maximum extent permitted under State law; Provide certainty to property owners, residents, and the development community; Maintain consistency with the City’s ongoing Downtown Housing Plan work program; and,
Allow additional time for evaluation of whether preparation of a TOD Alternative Plan is warranted.
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NEXT STEPS
If the City Council proceeds with the phased implementation strategy, staff will:
Return for second reading of the temporary ordinances for historic sites and 50% SB 79 capacity on June 15, 2026, as well as interim urgency ordinances covering the same subject matter;
Prepare permanent ordinances for review by the Planning and Transportation Commission;
Continue work on the Downtown Housing Plan and coordinate future public engagement and Planning and Transportation Commission review processes.
Staff will continue coordinating with the SB 79 / Downtown Housing Plan Ad Hoc Committee through the balance of 2026 and monitor additional guidance from HCD and any future amendments to SB 79.
FISCAL/RESOURCE IMPACT
Fiscal and resource impacts will vary based on Council direction and the associated level of effort. Approaches 1, 2, and 3 would not result in additional fiscal nor resource impacts.
If Council directs staff to pursue Approach 4, staff will return with a detailed scope of work and cost estimate. Preliminary estimates indicate that the effort would cost approximately $500,000 in additional funds beyond those already allocated for the Downtown Housing Plan, including the grant funding from MTC.
STAKEHOLDER ENGAGEMENT
Staff and the members of the Ad Hoc Committee met with Senator Josh Becker and Assemblymember Marc Berman, to discuss the implications of SB 79 as it relates to the City of Palo Alto.
Notably, SB 79 is intended as a streamlining mechanism to accelerate housing production near transit, its implementation includes requirements for broader community engagement and public input, including public hearings, if a local agency chooses to prepare a TOD Alternative Plan. While no public engagement is required if the city takes no action on SB 79 (Approach 1), Approaches 2, 3, and 4 would each involve varying levels of public engagement.
Additionally, if Council directs staff to complete the Downtown Housing Plan, the project team will build upon outreach activities already conducted and will ensure the planning process remains transparent, inclusive, and responsive to the perspectives of residents, businesses, and other key stakeholders.
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ENVIRONMENTAL REVIEW
The actions recommended in this report are exempt from review under the California Environmental Quality Act (CEQA) pursuant to Government Code section 65912.160(c)(2) because they involve ordinances that make the City’s zoning code consistent with the provisions of SB 79 by implementing Government Code Section 65912.161(b) and by amending the zoning map to indicate sites that are not subject to Government Code Section 65912.157.
Staff, however, will prepare an environmental analysis for a TOD Alternative Plan, if the City Council determines Approach 4 as the preferred approach.
ATTACHMENTS
Attachment A: Caltrain Stations and TOD Eligible Areas.
Attachment B: Draft Ordinance: Historic Resource Exemption.
Attachment C: Draft Ordinance: 50 Percent SB 79 Development Standards.
APPROVED BY:
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***NOT YET APPROVED***
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Ordinance No. _____
Interim, Urgency Ordinance of the Council of the City of Palo Alto Excluding from the Effect of Government Code Section 65912.157 Those Properties Designated as Local Historic Resources Pursuant to Palo Alto Municipal Code Chapter 16.49 and Amending the Zoning Map (Palo Alto Municipal Code Section 18.08.040) The Council of the City of Palo Alto ORDAINS as follows:
SECTION 1. Findings and Declarations. The City Council finds and declares as follows:
A. On October 10, 2025, the Governor of the State of California signed Senate Bill 79 (SB 79), which adopted California Government Code sections 65912.155 through 65912.162 and requires local agencies, effective July 1, 2026, to permit high density residential development in designated transit-oriented development (TOD) zones within one-half mile of certain TOD stops.
B. There are three TOD zones in Palo Alto, centered on the Palo Alto, California Avenue, and San Antonio Road Caltrain stations.
C. California Government Code section 65912.157 sets forth residential development standards that apply to housing development projects within TOD zones, such as a height of 75 feet, density of 120 dwelling units per acre, and floor area ratio of 3.5 for projects within one-quarter mile of a Caltrain station.
D. Government Code section 65912.161, subdivision (b), permits local agencies to exclude certain properties from compliance with Government Code section 65912.157 by adopting an ordinance implementing SB 79, including:
a. A site that permits density and residential floor area ratio at no less than 50 percent of the standards specified under Government Code section 65912.157. b. Sites with a historic resource designated as of January 1, 2025, on a local register.
E. The City Council desire to adopt an ordinance pursuant to Government Code section 65912.161, excluding sites designated as local historic resources on the Palo Alto Historic Resources Inventory pursuant to Palo Alto Municipal Code (PAMC) Chapter 16.49.
F. SB 79 charges the California Department of Housing and Community Development (HCD) with promulgating regulations relating to the bill by July 1, 2026. SB 79 further chargers metropolitan planning organizations with creating maps of TOD stops and zones in accordance with HCD guidance.
G. HCD issued a set of “advisory clarifications on definitions for Metropolitan Planning Organizations” on March 23, 2026. The Metropolitan Transportation Commission (MTC), Item 17
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the metropolitan planning organization for the San Francisco Bay Area, released preliminary draft maps on April 8, 2026.
H. Due to the short time between the issuance of guidance from HCD and MTC and the July 1, 2026 effective date of Government Code section 65912.157, there is insufficient time for the amendments to the zoning map proposed in this ordinance to be presented for review by the Planning and Transportation Commission. Accordingly, pursuant to PAMC section 18.80.090, the City Council adopts this ordinance as a temporary measure to preserve the public health, safety, or welfare.
I. The City Council finds and declares that the implementation of Government Code section 65912.157 on July 1, 2026 will create significant incentive for redevelopment of properties in the TOD zones, including historic resources. Accordingly, this ordinance is necessary as an emergency measure pursuant to PAMC section 2.04.270 to prevent the loss of historic resources listed in the Palo Alto Historic Inventory and thereby preserve the public peace, health, or safety.
J. Additionally, for the reasons provided herein, the City Council finds and declares that the potential loss of historic resources in TOD zones presents a current and immediate threat to the public health, safety, or welfare that would be realized by approval of projects under the standards set forth in Government Code section 65912.157. There are no pending project applications that would be impacted by this ordinance and this ordinance would not have the effect of denying any approvals needed for the development of projects containing multifamily housing. Accordingly, this ordinance is necessary as an interim, urgency measure pursuant to Government Code section 65858 to protect the public health, safety, or welfare.
SECTION 2. Pursuant to Government Code section 65912.161, subdivision (b)(1), sites designated as local historic resources on the Palo Alto Historic Resources Inventory as of January 1, 2025 are hereby temporarily excluded from the application of Government Code section 65912.157. These sites shall be excluded until one year following the adoption of the City’s seventh cycle Housing Element.
SECTION 3. The Director of Planning and Development Services is hereby authorized and directed to update Section 18.08.040 (the Zoning Map) of Title 18 (Zoning) of the Palo Alto Municipal Code to indicate which sites within the TOD zones are and are not covered by Government Code section 65912.157, including sites excluded pursuant to this Ordinance.
SECTION 4. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the Ordinance would be subsequently declared invalid or unconstitutional.
Commented [AY1]: Only for urgency.
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Exemption.
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SECTION 5. The Council finds that the Ordinance is not a project under the California Environmental Quality Act (CEQA) pursuant to Government Code section 65912.160, subdivision (c)(2), because it makes the City’s zoning code consistent with the provisions of SB 79 by implementing Government Code section 65912.161, subdivision (b) and amending the zoning map to indicate which sites are and are not subject to Government Code section 65912.157.
SECTION 6. This Ordinance shall be effective upon adoption by a four-fifths vote of the City Council and shall expire 45 days thereafter.
OR
This Ordinance shall be effective on the thirty-first date after the date of its adoption.
INTRODUCED and PASSED:
PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
____________________________ ____________________________ City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
____________________________ ____________________________ Assistant City Attorney City Manager
____________________________
Director of Planning and
Development Services
Item 17
Attachment B - Draft
Ordinance Historic Resource
Exemption.
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EXHIBIT A – ZONING MAP
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Ordinance No. _____
Interim, Urgency Ordinance of the Council of the City of Palo Alto Excluding from the Effect of Government Code Section 65912.157 Those Properties Designated as Local Historic Resources Pursuant to Palo Alto Municipal Code Chapter 16.49 and Amending the Zoning Map (Palo Alto Municipal Code Section 18.08.040) The Council of the City of Palo Alto ORDAINS as follows:
SECTION 1. Findings and Declarations. The City Council finds and declares as follows:
A. On October 10, 2025, the Governor of the State of California signed Senate Bill 79 (SB 79), which adopted California Government Code sections 65912.155 through 65912.162 and requires local agencies, effective July 1, 2026, to permit high density residential development in designated transit-oriented development (TOD) zones within one-half mile of certain TOD stops.
B. There are three TOD zones in Palo Alto, centered on the Palo Alto, California Avenue, and San Antonio Road Caltrain stations.
C. California Government Code section 65912.157 sets forth residential development standards that apply to housing development projects within TOD zones, such as a height of 75 feet, density of 120 dwelling units per acre, and floor area ratio of 3.5 for projects within one-quarter mile of a Caltrain station.
D. Government Code section 65912.161, subdivision (b), permits local agencies to exclude certain properties from compliance with Government Code section 65912.157 by adopting an ordinance implementing SB 79, including:
a. A site that permits density and residential floor area ratio at no less than 50 percent of the standards specified under Government Code section 65912.157. b. Sites with a historic resource designated as of January 1, 2025, on a local register.
E. The City Council desire to adopt an ordinance pursuant to Government Code section 65912.161, excluding sites designated as local historic resources on the Palo Alto Historic Resources Inventory pursuant to Palo Alto Municipal Code (PAMC) Chapter 16.49.
F. SB 79 charges the California Department of Housing and Community Development (HCD) with promulgating regulations relating to the bill by July 1, 2026. SB 79 further chargers metropolitan planning organizations with creating maps of TOD stops and zones in accordance with HCD guidance.
G. HCD issued a set of “advisory clarifications on definitions for Metropolitan Planning Organizations” on March 23, 2026. The Metropolitan Transportation Commission (MTC), Item 17
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the metropolitan planning organization for the San Francisco Bay Area, released preliminary draft maps on April 8, 2026.
H. Due to the short time between the issuance of guidance from HCD and MTC and the July 1, 2026 effective date of Government Code section 65912.157, there is insufficient time for the amendments to the zoning map proposed in this ordinance to be presented for review by the Planning and Transportation Commission. Accordingly, pursuant to PAMC section 18.80.090, the City Council adopts this ordinance as a temporary measure to preserve the public health, safety, or welfare.
I. The City Council finds and declares that the implementation of Government Code section 65912.157 on July 1, 2026 will create significant incentive for redevelopment of properties in the TOD zones at densities that would create unanticipated strain on public infrastructure and cause additional points of conflict between vehicles and bicycles or pedestrians in the effected areas. The rezoning and exclusion actions set forth in this ordinance would reduce these impacts for a temporary period, during which the City may plan for increased demands on infrastructure and transportation resources. Accordingly, this ordinance is necessary as an emergency measure pursuant to PAMC section 2.04.270 to preserve the public peace, health, or safety.
J. Additionally, the City Council finds and declares that the impacts described above present a current and immediate threat to the public health, safety, or welfare that would be realized by approval of projects under the standards set forth in Government Code section 65912.157. There are no pending project applications that would be impacted by this ordinance and this ordinance would not have the effect of denying any approvals needed for the development of projects containing multifamily housing. Accordingly, for the reasons set forth above, this ordinance is necessary as an interim, urgency measure pursuant to Government Code section 65858 to protect the public health, safety, or welfare.
SECTION 2. Section 18.14.070 (Transit Oriented Development (TOD) Combining District) of Chapter 18.14 (Housing Incentives) of Title 18 (Zoning) of the Palo Alto Municipal Code is hereby added to read:
18.14.070 Transit Oriented Development (TOD) Combining District (a) Purpose. The purpose of the TOD Combining District is to implement Senate Bill 79 (2025), California Government Code sections 65912.155 through 65912.162. For purposes of this section, definitions in California Government Code section 65912.156 shall apply. (b) Applicability. The TOD Combining District shall apply to all sites within a TOD zone, except sites designated as local historic resources on the Palo Alto Historic Resources Inventory as of January 1, 2025.
(c) Development Standards. The development standards set forth in the underlying district shall apply, except as follows:
Commented [AY1]: Only for urgency.
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Ordinance 50 Percent SB 79
Development Standards.
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(1) For sites within ¼ mile of a TOD stop, unless the underlying district is more permissive:
Maximum Floor Area Ratio 1.75:1
Minimum setbacks (feet)
Front and rear 10
Side 4
Daylight Plane for lot lines
abutting a low density
residential district (RE, R1,
NV-R1, R2, NV-R2, RMD)
Initial height: 16 feet,
measured at the property line
Slope: 45 degrees
Maximum density None
(2) For sites further than ¼ mile but within ½ mile of a TOD stop, unless the underlying district is more permissive:
Maximum Floor Area Ratio 1.5:1
Minimum setbacks (feet)
Front and rear 10
Side 4
Daylight Plane for lot lines
abutting a low density
residential district (RE, R1,
NV-R1, R2, NV-R2, RMD)
Initial height: 16 feet,
measured at the property line
Slope: 45 degrees
Maximum density None
(3) For sites adjacent to a TOD stop, Maximum Floor Area Ratio shall be the greater of 2.25 or the FAR provided in the underlying zone.
SECTION 3. Pursuant to Government Code section 65912.161, subdivision (b)(1), sites subject to the TOD Combining District are hereby temporarily excluded from the application of Government Code section 65912.157. These sites shall be excluded until one year following the adoption of the City’s seventh cycle Housing Element.
SECTION 4. The Director of Planning and Development Services is hereby authorized and directed to update Section 18.08.040 (the Zoning Map) of Title 18 (Zoning) of the Palo Alto Municipal Code to indicate which sites within the TOD zones are and are not covered by Government Code section 65912.157, including sites excluded pursuant to this Ordinance.
SECTION 5. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance and each and every section, subsection, sentence, clause, or phrase not declared invalid or Item 17
Attachment C - Draft
Ordinance 50 Percent SB 79
Development Standards.
Item 17: Staff Report
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unconstitutional without regard to whether any portion of the Ordinance would be subsequently declared invalid or unconstitutional.
SECTION 6. The Council finds that the Ordinance is not a project under the California Environmental Quality Act (CEQA) pursuant to Government Code section 65912.160, subdivision (c)(2), because it makes the City’s zoning code consistent with the provisions of SB 79 as set forth in Government Code section 65912.161, subdivision (b), and by amending the zoning map to indicate which sites are and are not subject to Government Code section 65912.157.
SECTION 7. This Ordinance shall be effective upon adoption by a four-fifths vote of the City Council and shall expire 45 days thereafter.
OR
This Ordinance shall be effective on the thirty-first date after the date of its adoption.
INTRODUCED and PASSED:
PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
____________________________ ____________________________ City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
____________________________ ____________________________ Assistant City Attorney City Manager
____________________________
Director of Planning and
Development Services
Item 17
Attachment C - Draft
Ordinance 50 Percent SB 79
Development Standards.
Item 17: Staff Report
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Item 17
Attachment C - Draft
Ordinance 50 Percent SB 79
Development Standards.
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Attachment
Fee Category and Fee Title FY 2026 Recommended Fee Unit Note:
Building Permit Fees
Alternative Fee Arrangement If project is out of scope from a traditional building structure and/or additional services are required, then an alternative fee arrangement may be established by the Chief Building Official to achieve cost recovery. This exception may apply in cases when construction valuation (commercial), square footage (residential), or stand-alone fees are not practicable for the project.
Construction and Demolition
Demolition Permit 1,195 per permit Price does not include C&D Fees Noise Exception 211 each
Electrical Permits
Energy Storage System - Single-Family System450 per permit Energy Storage System - Multi-Family / Commercial System1,000 per permit Electrical Service - New or Replacement: 400 amp and Greater 958 each Electrical Service - New or Replacement: Less than 400 amp 621 each SolarAPP+PV and ESS 450 per permit Available as instant permit SolarAPP+PV 450 per permit Available as instant permit Electrical Permits - Electrical Vehicle Charging Stations Single-Family (Level 1 and 2) 1,327 per station
Single-Family (Level 3) 1,527 per station
Multi-Family / Commercial (Level 1 and 2): 1-6 Stations 4,326 for 1-6 stations Multi-Family / Commercial (Level 1 and 2): Each addl 6 stations 1,134 for each additional station Multi-Family / Commercial (Level 3 and 4): 1-6 Stations 5,238 for 1-6 stations Multi-Family / Commercial (Level 3 and 4): Each addl 6 stations 1,134 for each additional station Electrical Permits - Photovoltaic Systems
Multi-Family / Commercial System (10kW or less) 1,000 per permit Multi-Family / Commercial System (11kW-49kW) 1,000 per permit Multi-Family Commercial System (50kW or greater) 1,000 per permit Plus an additional $7 per kw>51k but less than 250k, $5 per kw>250k. Single-Family Systems (10kW or less) 450 per permit
Single-Family Systems (greater than 10kW) 450 per permit Plus an additional $15/kw > 15. Single-Family Systems (Reinstallation) 450 per permit
Mechanical Permits
HVAC Systems (i.e., Air Conditioners, Heat Pumps, Air Handling Unit): Multi-Family / Commercial (Groups of 5): Direct replacements 902 per permit
HVAC Systems (i.e., Air Conditioners, Heat Pumps, Air Handling Unit): Multi-Family / Commercial (Groups of 5): New - with curb 1,539 per permit
HVAC Systems (i.e., Air Conditioners, Heat Pumps, Air Handling Unit): Multi-Family / Commercial (Groups of 5): New - without curb 1,232 per permit
HVAC Systems (i.e., Air Conditioners, Heat Pumps, Air Handling Unit): Single-Family
714 per permit
Plumbing Permits
Solar Hot Water System 450 per permit
Subdivision - Four or Less Parcels
Conditional Use Permit - Day Care Center 219 each
Item 17
Attachment C - Draft Ordinance 50
Percent SB 79 Development Standards.
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Item 17
Attachment C - Draft Ordinance 50
Percent SB 79 Development Standards.
Item 17: Staff Report
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Item 17
Attachment C - Draft
Ordinance 50 Percent SB 79
Development Standards.
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City Council
Staff Report
Report Type: SPECIAL ORDERS OF THE DAY
Lead Department: City Clerk
Meeting Date: June 1, 2026
Report #:2605-6414
TITLE
Proclamation Honoring June 2026 as LGBTQIA+ Pride Month
ATTACHMENTS
Attachment A: Honoring June 2026 as LGBTQIA+ Pride Month APPROVED BY:
Mahealani Ah Yun, City Clerk
Item 1
Item 1 Late Packet Report
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HONORING JUNE 2026 AS LGBTQIA+ PRIDE MONTH
WHEREAS, the first Pride Parade took place in New York City on June 28, 1970 on the one -year anniversary of the Stonewall Uprising inspiring similar parades and events across the country during the month of June; and
WHEREAS, in 1999, June was declared as Gay and Lesbian Pride Month by President Clinton, formalizing a decades long tradition of honoring and celebrating the LGBTQ+ community; and WHEREAS, the City Council of the City of Palo Alto recognizes and proclaims the month of June 2026 as Pride Month to affirm that people who identify as LGBTQ+ are welcome in Palo Alto to live, work and play, and to commit to supporting visibility, dignity and equality for LGBTQ+ people in our diverse community; and
WHEREAS, Palo Alto will observe Pride Month with its first Pride event on June 7, 2026 to honor the history of the LGBTQ+ movement and to support the rights of LGBTQ+ citizens to experience equality and freedom from discrimination; and
WHEREAS, the Intersex-Inclusive Progress Pride Flag builds on previous designs to maximize intersectional representation and is currently the most accepted standard as a symbol of pride, inclusion, and support for LGBTQ+ people; and
WHEREAS, all people are born equal in dignity, rights and worth, and the City of Palo Alto calls upon the people of this community to embrace this principle and work to eliminate prejudice toward LGBTQ+ people everywhere it exists; and
WHEREAS, LGBTQ+ individuals have had immeasurable impact on the cultural, civic and economic successes of our great city; and celebrating Pride Month enhances awareness, support and advocacy for both Palo Alto’s and the broader LGBTQ+ community, and is an opportunity to take action, engage in dialogue, and strengthen alliances to build acceptance and advance equal rights.
NOW, THEREFORE I, Vicki Veenker, Mayor of the City of Palo Alto, on behalf of the entire City Council, do hereby proclaim the month of June 2026 as Pride Month in support of the LGBTQ+ community.
BE IT FURTHER RESOLVED, that the Intersex-Inclusive Progress Pride Flag will be raised in the Council Chambers on this day, June 1, 2026, and i n King Plaza on June 7, 2026, to celebrate Palo Alto’s LGBTQ+ community and to affirm Palo Alto’s commitment to ensuring that all LGBTQ+ persons feel safe and welcome here, whether they live in, work in, or are visiting Palo Alto.
Presented: June 1, 2026
______________________________
Vicki Veenker
Mayor
Proclamation
Item 1
Attachment A - Honoring
June 2026 as LGBTQIA+
Pride Month
Item 1: Staff Report
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