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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. 9 4
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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 9 4
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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. 9 4
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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 9 4
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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 9 4
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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