Palo Alto City Council
June 8, 2026

CITY OF PALO ALTO CONTRACT NO. C27196575

AGREEMENT FOR PROFESSIONAL SERVICES

BETWEEN THE CITY OF PALO ALTO AND PRESIDIO SYSTEMS INC.

This Agreement for Professional Services (this “Agreement”) is entered into as of the 1st day of July, 2026 (the “Effective Date”) , by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and PRESIDIO SYSTEMS INC. , a California corporation, located at 159 Wright Brothers Ave., Livermore, CA 94551 (“CONSULTANT”).

The following recitals are a substantive portion of this Agreement and are fully incorporated herein by this reference:

RECITALS

A. CITY intends to inspect its sanitary sewer mains(the “Project”) and desires to engage a consultant to provide CCTV Sanitary Sewer Main inspections and condition assessment services in connection with the Project (the “Services”, as detailed more fully in Exhibit A).

B. CONSULTANT represents that it, its employees and subconsultants, if any, possess the necessary professional expertise, qualifications, and capability, and all required licenses and/or certifications to provide the Services.

C. CITY, in reliance on these representations, desires to engage CONSULTANT to provide the Services as more fully described in Exhibit A, entitled “SCOPE OF SERVICES”.

NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions, in this Agreement, the parties agree as follows:

SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perform the Services described in Exhibit A in accordance with the terms and conditions contained in this Agreement. The performance of all Services shall be to the reasonable satisfaction of CITY.

Optional On-Call Provision (This provision only applies if checked and only applies to on-call agreements.)

CITY may elect to, but is not required to, authorize on- call Services up to the maximum compensation amount set forth in Section 4 (Not to Exceed Compensation).

CONSULTANT shall provide on -call Services only by advanced, written authorization from CITY as detailed in this Section. On -call Services, if any, s hall be authorized by CITY, as needed, with a Task Order assigned and approved by CITY’s Project Manager, as identified in Section 13 (Project Management). Each Task Order shall be in substantially the same form as Exhibit A -1 entitled “PROFESSIONAL SERVICES TASK ORDER”.

Each Task Order shall contain a specific scope of s ervices, schedule of performance and maximum compensation amount, in accordance with the provisions of this Agreement.

Compensation for on-call Services shall be specified by CITY in the Task Order, based on whichever is lowest: the compensation structure set forth in Exhibit C, the hourly rates set Docusign Envelope ID: CE5CFB09-C0CD-8D71-81FD-29F4BA479588 Item 9
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forth in Exhibit C-1, or a negotiated lump sum.

To accept a Task Order, CONSULTANT shall sign the Task Order and return it to CITY’s Project Manager within the time specified by the Project Manager, and upon authorization by CITY (defined as counter-signature by the CITY Project Manager), the fully exec uted Task Order shall become part of this Agreement. The cumulative total compensation due to CONSULTANT for all Task Orders issued under this Agreement shall not exceed the amount of compensation set forth in Section 4. CONSULTANT shall only be compensated for on- call Services performed under an authorized Task Order and only up to the maximum compensation amount set forth in Section 4. Performance of and payment for any on-call Services are subject to all requirements and restrictions in this Agreement.

SECTION 2. TERM.

The term of this Agreement shall be from the effective date of this agreement through June 30, 2029, unless terminated earlier pursuant to Section 19 (Termination) of this Agreement.

SECTION 3. SCHEDULE OF PERFORMANCE. Time is of the essence in the performance of Services under this Agreement. CONSULTANT shall complete the Services within the term of this Agreement and in accordance with the schedule set forth in Exhibit B, entitled “SCHEDULE OF PERFORMANCE”. Any Services for which times for performance are not specified in this Agreement shall be commenced and completed by CONSULTANT in a reasonably prompt and timely manner based upon the circumstances and direction communicated to the CONSULTANT.

CITY’s agreement to extend the term or the schedule for performance shall not preclude recovery of damages for delay if the extension is required due to the fault of CONSULTANT.

SECTION 4. NOT TO EXCEED COMPENSATION. 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, and the maximum total compensation shall not exceed Eight Hundred Fifty - Three Thousand One Hundred Thirty -Eight Dollars and Sixty Cents ($853,138.60). 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.

Optional Additional Services Provision (This provision applies only if checked and a not-to-exceed compensation amount for Additional Services is allocated below under this Section 4.)

In addition to the not-to-exceed compensation specified above, CITY has set aside the not- to-exceed compensation amount of Eighty-Five Thousand Three Hundred Thirteen Dollars and Zero Cents ($85,313.00) for the performance of Additional Services (as defined below). The total compensation for performance of the Services, Additional Services and any reimbursable expenses specified in Exhibit C , shall not exceed Nine Hundred Thirty-Eight Thousand Four Hundred Fifty-One Dollars and Sixty Cents ($938,451.60), as detailed in Exhibit C.

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“Additional Services” means any work that is determined by CITY to be necessary for the proper completion of the Project, but which is not included within the Scope of Services described at Exhibit A . CITY may elect to, but is not required to, authorize Additional Services up to the maximum amount of compensation set forth for Additional S ervices in this Section 4. CONSULTANT shall provide Additional Services only by advanced, written authorization from CITY as detailed in this Section . Additional Services, if any, shall be authorized by CITY with a Task Order assigned and authorized by CITY’s Project Manager, as identified in Section 13 (Project Management). Each Task Order shall be in substantially the same form as Exhibit A-1, entitled “PROFESSIONAL SERVICES TASK ORDER”. Each Task Order shall contain a specific scope of services, schedule of performance and maximum compensation amount, in accordance with the provisions of this Agreement. Compensation for Additional Services shall be specified by CITY in the Task Order, based on whichever is lowest: the compensation structure set forth in Exhibit C, the hourly rates set forth in Exhibit C-1, or a negotiated lump sum.

To accept a Task Order, CONSULTANT shall sign the Task Order and return it to CITY’s Project Manager within the time specified by the Project Manager, and upon authorization by CITY (defined as counter-signature by the CITY Project Manager), the fully exec uted Task Order shall become part of this Agreement. The cumulative total compensation to CONSULTANT for all Task Orders authorized under this Agreement shall not exceed the amount of compensation set forth for Additional Services in this Section 4 .

CONSULTANT shall only be compensated for Additional Services performed under an authorized Task Order and only up to the maximum amount of compensation set forth for Additional Services in this Section 4 . Performance of and payment for any Additional Services are subject to all requirements and restrictions in this Agreement.

SECTION 5. INVOICES. In order to request payment, CONSULTANT shall submit monthly invoices to the CITY describing the Services performed and the applicable charges (including, if applicable, an identification of personnel who performed the Services, hours worked, hourly rates, and reimbursable expenses), based upon Exhibit C or, as applicable, CONSULTANT’s schedule of rates set forth in Exhibit C-1. If applicable, the invoice shall also describe the percentage of completion of each task. The information in CONSULTANT’s invoices shall be subject to verification by CITY. CONSULTANT shall send all invoices to CITY’s Project Manager at the address specified in Section 1 3 (Project Management) below. CITY will generally process and pay invoices within thirty (30) days of receipt of an acceptable invoice.

SECTION 6. QUALIFICATIONS/STANDARD OF CARE. All Services shall be performed by CONSULTANT or under CONSULTANT’s supervision. CONSULTANT represents that it , its employees and subcontractors, if any, possess the professional and technical personnel necessary to perform the Services required by this Agreement and that the personnel have sufficient skill and experience to perform the Services assigned to them. CONSULTANT represents that it, its employees and subcontractors, if any, have and shall maintain during the term of this Agreement all licenses, permits, qualifications, insurance and approvals of whatever nature that are legally required to perform the Services. All Services to be furnished by CONSULTANT under this Agreement shall meet the professional standard and quality that prevail among professionals in the same discipline and of similar knowledge and skill engaged in related work throughout California under the same or similar circumstances.

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SECTION 7. COMPLIANCE WITH LAWS . CONSULTANT shall keep itself informed of and in compliance with all federal, state and local laws, ordinances, regulations, and orders that may affect in any manner the Project or the performance of the Services or those engaged to perform Services under this Agreement, as amended from time to time . CONSULTANT shall procure all permits and licenses, pay all charges and fees, and give all notices required by law in the performance of the Services.

SECTION 8. ERRORS/OMISSIONS. CONSULTANT is solely responsible for costs, including, but not limited to, increases in the cost of Services, arising from or caused by CONSULTANT’s errors and omissions, including, but not limited to, the costs of corrections such errors and omissions, any change order markup costs, or costs arising from delay caused by the errors and omissions or unreasonable delay in correcting the errors and omissions.

SECTION 9. COST ESTIMATES. If this Agreement pertains to the design of a public works project, CONSULTANT shall submit estimates of probable construction costs at each phase of design submittal. If the total estimated construction cost at any submittal exceeds the CITY’s stated construction budget by ten percent (10%) or more , CONSULTANT shall make recommendations to CITY for aligning the P roject design with the budget, incorporate CITY approved recommendations, and revise the design to meet the Project budget, at no additional cost to CITY.

SECTION 10. INDEPENDENT CONTRACTOR. CONSULTANT acknowledges and agrees that CONSULTANT and any agent or employee of CONSULTANT will act as and shall be deemed at all times to be an independent contractor and shall be wholly responsible for the manner in which CONSULTANT performs the S ervices requested by CITY under this Agreement.

CONSULTANT and any agent or employee of CONSULTANT will not have employee status with CITY, nor be entitled to participate in any plans, arrangements, or distributions by CITY pertaining to or in connection with any retirement, health or other benefits that CITY may offer its employees. CONSULTANT wi ll be responsible for all obligations and payments, whether imposed by federal, state or local law, including, but not limited to, FICA, income tax withholdings, workers’ compensation, unemployment compensation, insurance, and other similar responsibilities related to CONSULTANT’s performance of the S ervices, or any agent or employee of CONSULTANT providing same. Nothing in this Agreement shall be construed as creating an employment or agency relationship between CITY and CONSULTANT or any agent or employee of CONSULTANT. Any terms in this Agreement referring to direction from CITY shall be construed as providing for direction as to policy and the result of CONSULTANT ’s provision of the Services only, and not as to the means by which such a result is obtained.

SECTION 11. ASSIGNMENT. The parties agree that the expertise and experience of CONSULTANT are material considerations for this Agreement. CONSULTANT shall not assign or transfer any interest in this Agreement nor the performance of any of CONSULTANT’s obligations hereunder wit hout the prior written approval of the City Manager. Any purported assignment made without the prior written approval of the City Manager will be void and without effect. Subject to the foregoing, the covenants, terms, conditions and provisions of this Agreement will apply to, and will bind, the heirs, succes sors, executors, administrators and assignees of the parties.

SECTION 12. SUBCONTRACTING.

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Option A: No Subcontractor: CONSULTANT shall not subcontract any portion of the Services to be performed under this Agreement without the prior written authorization of the City Manager or designee. In the event CONSULTANT does subcontract any portion of the work to be performed under this Agreement, CONSULTANT shall be fully responsible for all acts and omissions of subcontractors.

Option B: Subcontracts Authorized: Notwithstanding Section 11 (Assignment) above, CITY agrees that subcontractors may be used to complete the Services. The subcon tractors authorized by CITY to perform work on this Project are:

CONSULTANT shall be responsible for directing the work of any subcontractors and for any compensation due to subcontractors . CITY assumes no responsibility whatsoever concerning compensation of subcontractors . CONSULTANT shall be fully responsible to CITY for all acts and omissions of subcontractors . CONSULTANT shall change or add subcontractors only with the prior written approval of the City Manager or designee.

SECTION 13. PROJECT MANAGEMENT. CONSULTANT will assign Mike Schratz as the CONSULTANT’s Project Manager to have supervisory responsibility for the performance, progress, and execution of the Services and represent CONSULTANT during the day- to-day performance of the Services. If circumstances cause the substitution of the CONSULTANT’s Project Manager or any other of CONSULTANT’s key personnel for any reason, the appointment of a substitute Project Manager and the assignment of any key new or replacement personnel will be subject to the prior written approval of the CITY’s P roject Manager. CONSULTANT, at CITY’s request, shall promptly remove CONSULTANT personnel who CITY finds do not perform the Services in an acceptable manner, are uncooperative, or present a threat to the adequate or timely completion of the Services or a threat to the safety of persons or property.

CITY’s Project Manager is Darija Borkovic, Utilities Department, WGW Engineering Division, 1007 Elwell Court, Palo Alto, CA 94303, Telephone: 650-566-4507. CITY’s Project Manager will be CONSULTANT’s point of contact with respect to performance, progress and execution of the Services. CITY may designate an alternate Project Manager from time to time.

SECTION 1 4. OWNERSHIP OF MATERIALS . A ll work product, including without limitation, all writings, drawings, studies, sketches, photographs, plans, reports, specifications, computations, models, recordings, data, documents, and other materials and copyright interests developed under this Agreement, in any form or media, shall be and remain the exclusive property of CITY without restriction or limitation upon their use. CONSULTANT agrees that all copyrights which arise from creation of the work product pursuant to this Agreement are vested in CITY, and CONSULTANT hereby waives and relinquishes all claims to copyright or other intellectual property rights in favor of CITY. Neither CONSULTANT nor its sub contractors, if any, shall make any of such work product available to any individual or organization without the prior written approval of the C ity Manager or designee. CONSULTANT makes no representation of the suitability of the work product for use in or application to circumstances not contemplated by the Scope of Services.

SECTION 15. AUDITS . CONSULTANT agrees to permit CITY and its authorized Docusign Envelope ID: CE5CFB09-C0CD-8D71-81FD-29F4BA479588 Item 9
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representatives to audit, at any reasonable time during the term of this Agreement and for four (4) years from the date of final payment, CONSULTANT’s records pertaining to matters covered by this Agreement, including without limitation records demonstrating compliance with the requirements of Section 10 (Independent Contractor). CONSULTANT further agrees to maintain and retain accurate books and records in accordance with generally accepted accounting principles for at least four (4 ) years after the expiration or earlier termination of this Agreement or the completion of any audit hereunder, whichever is later.

SECTION 16. INDEMNITY.

16.1. To the fullest extent permitted by law, CONSULTANT shall indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents (each an “Indemnified Party”) from and against any and all demands, claims, or liability of any nature, including death or injury to any person, property damage or any other loss, including all costs and expenses of whatever nature including attorney’s fees, experts fees, court costs and disbursements (“Claims”) resulting from, arising out of or in any manner related to performance or nonperformance by CONSULTANT, its officers, employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an Indemnified Party.

16.2. Notwithstanding the above, nothing in this Section 16 shall be construed to require CONSULTANT to indemnify an Indemnified Party from a Claim arising from the active negligence or willful misconduct of an Indemnified Party that is not contributed to by any act of, or by any omission to perform a duty imposed by law or agreement by, CONSULTANT, its officers, employees, agents or contractors under this Agreement.

16.3. The acceptance of CONSULTANT’s Services and duties by CITY shall not operate as a waiver of the right of indemnification. The provisions of this Section 16 shall survive the expiration or early termination of this Agreement.

SECTION 17. WAIVERS. No waiver of a condition or nonperformance of an obligation under this Agreement is effective unless it is in writing in accordance with Section 29.4 of this Agreement. No delay or failure to require performance of any provision of this Agreement shall constitute a waiver of that provision as to that or any other instance. Any waiver granted shall apply solely to the specific instance expressly stated. No single or parti al exercise of any right or remedy will preclude any other or further exercise of any right or remedy.

SECTION 18. INSURANCE.

18.1. CONSULTANT, at its sole cost and expense, shall obtain and maintain, in full force and effect during the term of this Agreement, the insurance coverage described in Exhibit D, entitled “INSURANCE REQUIREMENTS”. CONSULTANT and its contractors, if any, shall obtain a policy endorsement naming CITY as an additional insured under any general liability or automobile policy or policies.

18.2. All insurance coverage required hereunder shall be provided through carriers with AM Best’s Key Rating Guide ratings of A -:VII or higher which are licensed or authorized to transact insurance business in the State of California. Any and all contractors of CONSULTANT retained to perform Services under this Agreement will obtain and maintain, in Docusign Envelope ID: CE5CFB09-C0CD-8D71-81FD-29F4BA479588 Item 9
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full force and effect during the term of this Agreement, identical insurance coverage, naming CITY as an additional insured under such policies as required above.

18.3. Certificates evidencing such insurance shall be filed with CITY concurrently with the execution of this Agreement. The certificates will be subject to the approval of CITY’s Risk Manager and will contain an endorsement stating that the insurance is primar y coverage and will not be canceled, or materially reduced in coverage or limits, by the insurer except after filing with the Purchasing Manager thirty (30) days ’ prior written notice of the cancellation or modification. If the insurer cancels or modifies the insurance and provides less than thirty (30) days’ notice to CONSULTANT , CONSULTANT shall provide the Purchasing Manager written notice of the cancellation or modification within two (2) business days of the CONSULTANT’s receipt of such notice. CONSULTANT shall be responsible for ensuring that current certificates evidencing the insurance are provided to CITY’s Chief Procurement Officer during the entire term of this Agreement.

18.4. The procuring of such required policy or policies of insurance will not be construed to limit CONSULTANT ’s liability hereunder nor to fulfill the indemnification provisions of this Agreement. Notwithstanding the policy or policies of insurance, CONSULTANT will be obligated for the full and total amount of any damage, injury, or loss caused by or directly arising as a result of the Services performed under this Agreement, including such damage, injury, or loss arising after the Agreement is terminated or the term has expired.

SECTION 19. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES.

19.1. The City Manager may suspend the performance of the Services, in whole or in part, or terminate this Agreement, with or without cause, by giving ten (10) days prior written notice thereof to CONSULTANT. If CONSULTANT fails to perform any of its material obligations under this Agreement, in addition to all other remedies provided under this Agreement or at law, the City Manager may terminate this Agreement sooner upon written notice of termination. Upon receipt of any notice of suspension or termination , CONSULTANT will discontinue its performance of the Services on the effective date in the notice of suspension or termination.

19.2. In event of suspension or termination, CONSULTANT will deliver to the City Manager on or before the effective date in the notice of suspension or termination, any and all work product, as detailed in Section 14 (Ownership of Materials), whether or not completed, prepared by CONSULTANT or its contractors, if any, in the performance of this Agreement. Such work product is the property of CITY, as detailed in Section 14 (Ownership of Materials).

19.3. In event of suspension or termination, CONSULTANT will be paid for the Services rendered and work products delivered to CITY in accordance with the Scope of Services up to the effective date in the notice of suspension or termination; provided, however, if this Agreement is suspended or terminated on account of a default by CONSULTANT, CITY will be obligated to compensate CONSULTANT only for that portion of CONSULTANT’s S ervices provided in material conformity with this Agreement as such determination is made by the City Manager acting in the reasonable exercise of his/her discretion . The following Sections will survive any expiration or termination of this Agreement: 14, 15, 16, 17, 19.2, 19.3, 19.4, 20, 25, 27, 28, 29 and 30.

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19.4. No payment, partial payment, acceptance, or partial acceptance by CITY will operate as a waiver on the part of CITY of any of its rights under this Agreement, unless made in accordance with Section 17 (Waivers).

SECTION 20. NOTICES.

All notices hereunder will be given in writing and mailed, postage prepaid, by certified mail, addressed as follows:

To CITY: Office of the City Clerk
City of Palo Alto
Post Office Box 10250
Palo Alto, CA 94303

With a copy to the Purchasing Manager

To CONSULTANT: Attention of the P roject Manager at the address of CONSULTANT recited on the first page of this Agreement.

CONSULTANT shall provide written notice to CITY of any change of address.

SECTION 21. CONFLICT OF INTEREST.

21.1. In executing this Agreement, CONSULTANT covenants that it presently has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of the Services.

21.2. CONSULTANT further covenants that, in the performance of this Agreement, it will not employ subcontractors or other persons or parties having such an interest.

CONSULTANT certifies that no person who has or will have any financial interest under this Agreement is an officer or employee of CITY; this provision will be interpreted in accordance with the applicable provisions of the Palo Alto Municipal Code and the Government Code of the State of California, as amended from time to time . CONSULTANT agrees to notify CITY if any conflict arises.

21.3. If the CONSULTANT meets the definition of a “Consultant” as defined by the Regulations of the Fair Political Practices Commission, CONSULTANT will file the appropriate financial disclosure documents required by the Palo Alto Municipal Code and the Political Reform Act of 1974, as amended from time to time.

SECTION 22. NONDISCRIMINATION; COMPLIANCE WITH ADA.

22.1. As set forth in Palo Alto Municipal Code S ection 2.30.510, as amended from time to time, CONSULTANT certifies that in the performance of this Agreement, it shall not discriminate in the employment of any person due to that person’s race, skin color, gender, gender identity, age, religion, disability, national origin, ancestry, sexual orientation, pregnancy, genetic information or condition, housing status, marital status, familial status, weight or height of such Docusign Envelope ID: CE5CFB09-C0CD-8D71-81FD-29F4BA479588 Item 9
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person. CONSULTANT acknowledges that it has read and understands the provisions of Section

2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and agrees to meet all requirements of Section 2.30.510 pertaining to nondiscrimination in employment.

22.2. CONSULTANT understands and agrees that pursuant to the Americans Disabilities Act (“ADA”), programs, services and other activities provided by a public entity to the public, whether directly or through a contractor or subcontractor, are required to be accessible to the disabled public. CONSULTANT will provide the Services specified in this Agreement in a manner that complies with the ADA and any other applicable federal, state and local disability rights laws and regulations, as amended from time to time. CONSULTANT will not discriminate against persons with disabilities in the provision of services, benefits or activities provided under this Agreement.

SECTION 23. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE REQUIREMENTS. CONSULTANT shall comply with t he CITY’s Environmentally Preferred Purchasing policies which are available at CITY ’s Purchasing Department , hereby incorporated by reference and as amended from time to time. CONSULTANT shall comply with waste reduction, reuse, recycling and disposal requirements of CITY’s Zero Waste Program. Zero Waste best practices include, first, minimizing and reducing waste; second, reusing waste ; and, third, recycling or composting waste. In particular, C ONSULTANT shall comply with the following Zero Waste requirements:
(a) All printed materials provided by CONSULTANT to C ITY generated from a personal computer and printer including but not limited to, proposals, quotes, invoices, reports, and public education materials, shall be double-sided and printed on a minimum of 30% or greater post-consumer content paper, unless otherwi se approved by CITY’s Project Manager. Any submitted materials printed by a professional printing company shall be a minimum of 30% or greater post-consumer material and printed with vegetable-based inks. (b) Goods purchased by C ONSULTANT on behalf of CITY shall be purchased in accordance with CITY’s Environmental Purchasing Policy including but not limited to Extended Producer Responsibility requirements for products and packaging. A copy of this policy is on file at the Purchasing Department’s office.
(c) Reusable/returnable pallets shall be taken back by CONSULTANT , at no additional cost to CITY, for reuse or recycling. CONSULTANT shall provide documentation from the facility accepting the pallets to verify that pallets are not being disposed.

SECTION 24. COMPLIANCE WITH PALO ALTO MINIMUM WAGE ORDINANCE.

CONSULTANT shall comply with all requirements of the Palo Alto Municipal Code Chapter 4.62 (Citywide Minimum Wage), as amended from time to time. In particular, for any employee otherwise entitled to the State minimum wage, who performs at least two (2) h ours of work in a calendar week within the geographic boundaries of the City, CONSULTANT shall pay such employees no less than the minimum wage set forth in Palo Alto Municipal Code Section 4.62.030 for each hour worked within the geographic boundaries of the City of Palo Alto. In addition, CONSULTANT shall post notices regarding the Palo Alto Minimum Wage Ordinance in accordance with Palo Alto Municipal Code Section 4.62.060.

SECTION 25. NON-APPROPRIATION. This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code , as amended from time to Docusign Envelope ID: CE5CFB09-C0CD-8D71-81FD-29F4BA479588 Item 9
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time. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that funds are not appropriated for the following fiscal year, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Agreement are no longer available. This S ection shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement.

SECTION 2 6. PREVAILING WAGES AND DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS.

26.1. This Project is not subject to prevailing wages and related requirements. CONSULTANT is not required to pay prevailing wages and meet related requirements under the California Labor Code and California Code of Regulations in the performance and implementation of the Project if the contract:
(1) is not a public works contract;
(2) is for a public works construction project of $25,000 or less, per California Labor Code Sections 1782(d)(1), 1725.5(f) and 1773.3(j); or (3) is for a public works alteration, demolition, repair, or maintenance project of $15,000 or less, per California Labor Code Sections 1782(d)(1), 1725.5(f) and 1773.3(j).

SECTION 27. CLAIMS PROCEDURE FOR “9204 PUBLIC WORKS PROJECTS” . For purposes of this Section 27, a “9204 Public Works Project” means the erection, construction, alteration, repair, or improvement of any public structure, building, road, or other public improvement of any kind. ( Cal. Pub. Cont. Code § 9204.) Per California Public Contract Code Section 9204, for Public Works Projects , certain claims procedures shall apply, as set forth in Exhibit F, entitled “Claims for Public Contract Code Section 9204 Public Works Projects”.

This Project is not a 9204 Public Works Project.

SECTION 28. CONFIDENTIAL INFORMATION.

28.1. In the performance of this Agreement, CONSULTANT may have access to CITY’s Confidential Information (defined below). CONSULTANT will hold Confidential Information in strict confidence, not disclose it to any third party, and will use it only for the performance of its obligations to CITY under this Agreement and for no other purpose.

CONSULTANT will maintain reasonable and appropriate administrative, technical and physical safeguards to ensure the security, confidentiality and integrity of the Confidential Information.

Notwithstanding the foregoing, CONSULTANT may disclose Confidential Information to its employees, agents and subcontractors, if any, to the extent they have a need to know in order to perform CONSULTANT’s obligations to CITY under this Agreeme nt and for no other purpose, provided that the CONSULTANT informs them of, and requires them to follow, the confidentiality and security obligations of this Agreement.

28.2. “Confidential Information” means all data, information (including without limitation “Personal Information” about a California resident as defined in Civil Code S ection 1798 et seq., as amended from time to time) and materials, in any form or media, tangible or intangible, provided or otherwise made available to CONSULTANT by CITY, directly or indirectly, pursuant to this Agreement. Confidential Information excludes information that Docusign Envelope ID: CE5CFB09-C0CD-8D71-81FD-29F4BA479588 Item 9
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CONSULTANT can show by appropriate documentation: (i) was publicly known at the time it was provided or has subsequently become publicly known other than by a breach of this Agreement; (ii) was rightfully in CONSULTANT’s possession free of any obligation of confidence prior to receipt of Confidential Information; (iii) is rightfully obtained by CONSULTANT from a third party without breach of any confidentiality obligation; (iv) is independently developed by employees of CONSULTANT without any use of or access to the Confidential Information; or (v) CONSULTANT has written consent to disclose signed by an authorized representative of CITY.

28.3. Notwithstanding the foregoing, CONSULTANT may disclose Confidential Information to the extent required by order of a court of competent jurisdiction or governmental body, provided that CONSULTANT will notify CITY in writing of such order immediately upon receipt and prior to any such disclosure (unless CONSULTANT is prohibited by law from doing so), to give CITY an opportunity to oppose or otherwise respond to such order.

28.4. CONSULTANT will notify City promptly upon learning of any breach in the security of its systems or unauthorized disclosure of, or access to, Confidential Information in its possession or control, and if such Confidential Information consists of Personal In formation, CONSULTANT will provide information to CITY sufficient to meet the notice requirements of Civil Code Section 1798 et seq., as applicable, as amended from time to time.

28.5. Prior to or upon termination or expiration of this Agreement, CONSULTANT will honor any request from the CITY to return or securely destroy all copies of Confidential Information. All Confidential Information is and will remain the property of the CITY and nothing contained in this Agreement grants or confers any rights to such Confidential Information on CONSULTANT.

28.6. If selected in Section 30 (Exhibits), this Agreement is also subject to the terms and conditions of the Information Privacy Policy and Cybersecurity Terms and Conditions.

SECTION 29. MISCELLANEOUS PROVISIONS.

29.1. This Agreement will be governed by California law, without regard to its conflict of law provisions.

29.2. In the event that an action is brought, the parties agree that trial of such action will be vested exclusively in the state courts of California in the County of Santa Clara, State of California.

29.3. The prevailing party in any action brought to enforce the provisions of this Agreement may recover its reasonable costs and attorneys’ fees expended in connection with that action. The prevailing party shall be entitled to recover an amount equal to the fair market value of legal services provided by attorneys employed by it as well as any attorneys’ fees paid to third parties.

29.4. This Agreement, including all exhibits, constitutes the entire and integrated agreement between the parties with respect to the subject matter of this Agreement, and supersedes all prior agreements, negotiations, representations, statements and undertakings , either oral or Docusign Envelope ID: CE5CFB09-C0CD-8D71-81FD-29F4BA479588 Item 9
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written. This Agreement may be amended only by a written instrument, which is signed by the authorized representatives of the parties and approved as required under Palo Alto Municipal Code, as amended from time to time.

29.5. If a court of competent jurisdiction finds or rules that any provision of this Agreement is void or unenforceable, the unaffected provisions of this Agreement will remain in full force and effect.

29.6. In the event of a conflict between the terms of this Agreement and the exhibits hereto (per Section 30 ) or CONSULTANT’s proposal (if any), the Agreement shall control. In the event of a conflict between the exhibits hereto and CONSULTANT’s proposal (if any), the exhibits shall control.

29.7. The provisions of all checked boxes in this Agreement shall apply to this Agreement; the provisions of any unchecked boxes shall not apply to this Agreement.

29.8. All section headings contained in this Agreement are for convenience and reference only and are not intended to define or limit the scope of any provision of this Agreement.

29.9. This Agreement may be signed in multiple counterparts, which, when executed by the authorized representatives of the parties, shall together constitute a single binding agreement.

SECTION 30. EXHIBITS. Each of the following exhibits, if the check box for such exhibit is selected below, is hereby attached and incorporated into this Agreement by reference as though fully set forth herein:

EXHIBIT A: SCOPE OF SERVICES
EXHIBIT A-1 PROFESSIONAL SERVICES TASK ORDER
EXHIBIT B: SCHEDULE OF PERFORMANCE
EXHIBIT C: COMPENSATION
EXHIBIT C-1: SCHEDULE OF RATES
EXHIBIT D: INSURANCE REQUIREMENTS

THIS AGREEMENT IS NOT COMPLETE UNLESS ALL SELECTED EXHIBITS ARE ATTACHED.

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CONTRACT NO. C27196575

SIGNATURE PAGE

IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives executed this Agreement as of the date first above written.

CITY OF PALO ALTO

____________________________
City Manager

APPROVED AS TO FORM:

__________________________
City Attorney or designee

PRESIDIO SYSTEMS, INC.

Officer 1

By: ________________________________

Name: ______________________________

Title: _______________________________

Officer 2 (Required for Corp. or LLC)

By: ________________________________

Name: ______________________________

Title: _______________________________

Docusign Envelope ID: CE5CFB09-C0CD-8D71-81FD-29F4BA479588 Joe Schratz
President
Kris Schratz
CEO
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EXHIBIT A

SCOPE OF SERVICES

CONSULTANT shall provide the Services detailed in this Exh ibit A , entitled “SCOPE OF SERVICES”. Notwithstanding any provision herein to the contrary, CONSULTANT’s duties and services described in this Scope of Services shall not include preparing or assisting CITY with any portion of CITY’s preparation of a request for proposals, request for qualific ations, or any other solicitation regarding a subsequent or additional contract with CITY. CITY shall at all times retain responsibility for public contracting, including with respect to any subsequent phase of this project.

CONSULTANT’s participation in the planning, discussions, or drawing of project plans or specifications shall be limited to conceptual, preliminary, or initial plans or specifications.

CONSULTANT shall cooperate with CITY to ensure that all bidders for a subsequent contract on any subsequent phase of this project have access to the same information, including all conceptual, preliminary, or initial plans or specifications prepared by CONSULTANT pursuant to this Scope of Services.

Each Task Shall be performed by CONSULTANT on an annual basis for a three (3) year duration, for a total of six (6) total tasks.

Task 1: Year 1 – Project Initiation, Planning, Closed-Circuit Television (CCTV) Inspection
A) Conduct a kickoff meeting with CITY staff within 1 week after Notice to Proceed has been issued.

B) Weekly progress meetings.

C) Provide all required traffic control devices based on the latest version of the Manual Uniform Traffic Control Devices (MUTCD).

D) Establish safety, reporting, and communication protocols.

E) All staff carrying out CCTV inspection work must have currently active National Association of Sewer Service Companies (NASSCO) certification credentials.

F) Clean sewer mains & perform CCTV inspection and provide Pipe Assessment and Certification Program (PACP) pipe rating report for each individual pipe segment, based on latest NASSCO standards.

G) Clean and inspect a total of 78,929 linear feet (LF) total in Year 1, from the list of pipeline segments designated by CITY, broken down as follows:
a. Size 6”-8” = 54,540 LF;
b. Size 10”-12” = 12,793 LF,
c. Size > 12” and <= 18” = 11,596 LF

Task 2: Year 2 – Project Planning and CCTV Inspection
A) Weekly progress meetings.

B) Provide all required traffic control devices based on the latest version of the MUTCD.

C) Establish safety, reporting, and communication protocols.

D) All staff carrying out CCTV inspection work must have currently active NASSCO certification credentials.

E) Clean sewer mains & perform CCTV inspection and provide PACP pipe rating report for each individual pipe segment, based on latest NASSCO standards.

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segments designated by CITY, broken down as follows:
a. Size 6”-8” = 55,591 LF
b. Size 10”-12” = 8,513 LF
c. Size > 12” and <= 18” = 9,441 LF

Task 3: Year 3 – Project Planning, Closed-Circuit Television (CCTV) Inspection A) Weekly progress meetings.

B) Provide all required traffic control devices based on the latest version of the MUTCD.

C) Establish safety, reporting, and communication protocols.

D) All staff carrying out CCTV inspection work must have currently active NASSCO certification credentials.

E) Cleaning sewer mains & CCTV inspection with overall Pipe Assessment and Certification Program (PACP) pipe rating reports, based on latest National Association of Sewer Service Companies (NASSCO) standards.

F) Clean and inspect a total of 77,744 LF total in Year 3, from the list of pipeline segments designated by CITY, broken down as follows:
a. Size 6”-8” = 45,858 LF
b. Size 10”-12” = 12,887 LF
c. Size > 12” and <= 18” = 18,999 LF

Deliverables:

A) Submittals
B) Daily progress updates.

C) Monthly completed CCTV video footage file for each inspected sewer main pipeline segment saved with approved naming convention, to be delivered via cloud services or thumb-drive.

D) Complete pipeline inspection reports.

E) Weekly Excel spreadsheet log of showing completed CCTV pipeline segments.

F) Monthly progress payment invoices.

G) Final report (annually) including overall pipe rating of each pipe segment per latest NASSCO standards.

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EXHIBIT A-1

PROFESSIONAL SERVICES TASK ORDER

CONSULTANT shall perform the Services detailed below in accordance with all the terms and conditions of the Agreement referenced in Item 1A below. All exhibits referenced in Item 8 are incorporated into this Task Order by this reference. CONSULTANT shall furnish the necessary facilities, professional, technical and supporting personnel required by this Task Order as described below.

CONTRACT NO.

OR PURCHASE ORDER REQUISITION NO. (AS APPLICABLE)

1A. MASTER AGREEMENT NO. (MAY BE SAME AS CONTRACT / P.O. NO. ABOVE):
1B. TASK ORDER NO.:

2. CONSULTANT NAME:

3. PERIOD OF PERFORMANCE: START: COMPLETION:
4 TOTAL TASK ORDER PRICE: $__________________
BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT $_______________

5. BUDGET CODE_______________
COST CENTER________________
COST ELEMENT______________
WBS/CIP__________
PHASE__________

6. CITY PROJECT MANAGER’S NAME & DEPARTMENT:

7. DESCRIPTION OF SCOPE OF SERVICES (Attachment A)
MUST INCLUDE:
 SERVICES AND DELIVERABLES TO BE PROVIDED
 SCHEDULE OF PERFORMANCE
 MAXIMUM COMPENSATION AMOUNT AND RATE SCHEDULE (as applicable)  REIMBURSABLE EXPENSES, if any (with “not to exceed” amount)

8. ATTACHMENTS: A: Task Order Scope of Services B (if any): _____________________________

I hereby authorize the performance of the
work described in this Task Order.

APPROVED:

CITY OF PALO ALTO

BY:____________________________________
Name __________________________________
Title___________________________________
Date ___________________________________

I hereby acknowledge receipt and acceptance of
this Task Order and warrant that I have
authority to sign on behalf of Consultant.

APPROVED:

COMPANY NAME: ______________________

BY:____________________________________
Name __________________________________
Title___________________________________
Date ___________________________________

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EXHIBIT B

SCHEDULE OF PERFORMANCE

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 Days/Weeks (as specified below)
from NTP

1. Year 1 (FY 2027) 50 working days between September to November

2. Year 1 (FY 2027) Kick off meeting 5 working days after issuance of Notice to Proceed

3. Year 1 (FY 2027) Submittals 5 working days after issuance of Notice to Proceed

4. Year 2 (FY 2028) 105 working days between April to November

5. Year 3 (FY 2029) 105 working days between April to November

6. Year 3 (FY 2029) Final Report
showcasing all 3 years of sewer main
inspection work completed
5 working days after submitting final progress
payment invoice

7. 8.

9. 10.

11. 12.

13. 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 p erformance 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

COMPENSATION

CITY agrees to compensate CONSULTANT for Services performed in accordance with the terms and conditions of this Agreement, and as set forth in the budget schedule below. Compensation shall be calculated based on the number of linear feet (LF) of pipelines cleaned and inspected shown on the Scope of Services attached as Exhibit A, multiplied by the cost per LF shown on the rate schedule attached as Exhibit C-1, up to the not to exceed budget amount for each task set forth below.

CITY’s Project Manager may approve in writing the transfer of budget amounts between any of the tasks or categories listed below , provided that the total compensation for the Services, including any specified reimbursable expenses, and the total compensation for Additional Services (if any, per Section 4 of the Agreement) do not exceed the amounts set forth in Section 4 of this Agreement.

CONSULTANT agrees to complete all Services, any specified reimbursable expenses, and Additional Services (if any, per Section 4), within this /these amount(s). Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth in this Agreement shall be at no cost to the CITY.

BUDGET SCHEDULE

TASK NOT TO EXCEED AMOUNT
Task 1 (Year 1 (Clean, Inspect, Report) $292,037.30
Task 2 (Year 2 (Clean, Inspect, Report)) $273,448.50
Task 3 (Year 3 (Clean, Inspect, Report)) $287,652.80
Task 4
( )
$
Task 5
( )
$
Sub-total for Services $853,138.60
Reimbursable Expenses (if any) $0
Total for Services and Reimbursable Expenses $853,138.60 Additional Services (if any, per Section 4) $85,313.00
Maximum Total Compensation $938,451.60

REIMBURSABLE EXPENSES

CONSULTANT’S ordinary business expenses , such as administrative, overhead, administrative support time /overtime, information systems, software and hardware, photocopying, telecommunications (telephone, internet), in -house printing, insurance and other ordinary business expenses, are included within the scope of payment for Services and are not reimbursable expenses hereunder.

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Reimbursable expenses, if any are specified as reimbursable under this section , will be reimbursed at actual cost. The expenses (by type, e.g. travel) for which CONSULTANT will be reimbursed are: NONE up to the not-to-exceed amount of: $0.00.

A. Travel outside the San Francisco Bay A rea, including transportation and meals , if specified as reimbursable, will be reimbursed at actual cost subject to the City of Palo Alto’s policy for reimbursement of travel and meal expenses.

B. Long distance telephone service charges, cellular phone service charges, facsimile transmission and postage charges, if specified as reimbursable, will be reimbursed at actual cost.

All requests for reimbursement of expenses, if any are specified as reimbursable under this section, shall be accompanied by appropriate backup documentation and information.

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EXHIBIT C-1

SCHEDULE OF RATES

CONSULTANT’s schedule of rates is as follows:

Year 1 CCTV Inspection:

Cleaning $2.00 per LF
Inspection $1.70 per LF

Year 2 CCTV Inspection:

Cleaning $2.00 per LF
Inspection $1.70 per LF

Year 3 CCTV Inspection:

Cleaning $2.00 per LF
Inspection $1.70 per LF

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EXHIBIT D

INSURANCE REQUIREMENTS

CONSULTANTS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE

CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES WITH AM BEST’S KEY RATING OF A-:VII, OR HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA.

AWARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS AS SPECIFIED HEREIN.

REQUIRED TYPE OF COVERAGE REQUIREMENT

MINIMUM LIMITS
EACH

OCCURRENCE AGGREGATE
YES
YES
WORKER’S COMPENSATION
EMPLOYER’S LIABILITY

STATUTORY

STATUTORY STATUTORY STATUTORY
YES

GENERAL LIABILITY, INCLUDING

PERSONAL INJURY, BROAD FORM

PROPERTY DAMAGE BLANKET

CONTRACTUAL, AND FIRE LEGAL

LIABILITY

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

YES

AUTOMOBILE LIABILITY,

INCLUDING ALL OWNED, HIRED,

NON-OWNED

BODILY INJURY
- EACH PERSON
- EACH OCCURRENCE

PROPERTY DAMAGE

BODILY INJURY AND PROPERTY

DAMAGE, COMBINED
$1,000,000
$1,000,000
$1,000,000

$1,000,000

$1,000,000

$1,000,000
$1,000,000
$1,000,000

$1,000,000

$1,000,000

YES

PROFESSIONAL LIABILITY,

INCLUDING, ERRORS AND

OMISSIONS, MALPRACTICE (WHEN

APPLICABLE), AND NEGLIGENT

PERFORMANCE
ALL DAMAGES $1,000,000
YES

THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONSULTANT, AT ITS SOLE COST

AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM

OF ANY RESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY

CONSULTANT
AND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS’ COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES.

I. INSURANCE COVERAGE MUST INCLUDE:

A. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONSULTANT’S AGREEMENT TO INDEMNIFY CITY.

II. THE CONSULTANT MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE AT THE FOLLOWING EMAIL: [email protected]

III. ENDORSEMENT PROVISIONS WITH RESPECT TO THE INSURANCE AFFORDED TO ADDITIONAL INSUREDS:

A. PRIMARY COVERAGE

WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED,

INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR

CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS.

B. CROSS LIABILITY
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THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER

THE POLICY SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE

INSURED AGAINST ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE

INSUREDS, SHALL NOT INCREASE THE TOTAL LIABILITY OF THE COMPANY UNDER THIS POLICY.

C. NOTICE OF CANCELLATION

1. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON

OTHER THAN THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A THIRTY (30) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION.

2. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION.

EVIDENCE OF INSURANCE AND OTHER RELATED NOTICES ARE REQUIRED TO BE FILED WITH THE CITY OF PALO ALTO SENT TO THE FOLLOWING EMAIL:

[email protected]

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Bid Summary: 3 year CCTV Inspection project; WC-26 001; RFP#26196575 Bid date: 4/14/2026
Year Current Budget Engineer's
Estimate
Selected
Vendor's Total
Base bid
Bid / Budget
difference AIMS Ceterra Pipe and Plant Summit Pipelines Murgreen Enviromental National Plant
Presidio
Systems
Video
Inspection
Specialist
Sewer Tech
FY'27 $360,000.00 $300,000.00 $292,037.30 $67,962.70 $73 5,618.28 $690,628.75 $493,306.25 $464,102.52 $442,7 91.69 $348,076.89 $292,037.30 $207,583.27 $197,322. 50 FY'28 $380,000.00 $300,000.00 $273,448.50 $106,551.50 $6 94,707.00 $646,668.75 $484,816.80 $434,561.40 $414, 607.05 $328,138.20 $273,448.50 $194,370.15 $184,762 .50 FY'29 $400,000.00 $300,000.00 $287,652.80 $112,347.20 $8 39,635.20 $880,260.00 $536,433.60 $592,714.38 $436, 143.84 $445,609.48 $287,652.80 $204,466.72 $194,360 .00 TOTAL $1,140,000.00 $900,000.00 $853,138.60 $286,861.40 $2,269,960.48 $2,217,557.50 $1,514,556.65 $1,491,37 8.30 $1,293,542.58 $1,121,824.57 $853,138.60 $606,4 20.14 $576,445.00

LIST OF VENDORS
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: IT Department
Meeting Date: June 8, 2026
Report #:2511-5465
TITLE
Approval of Amendment No. 1 with Eight Professional Services Contracts for IT On-Call Services:

Contract C26193247A INSPYR Solutions, C26193247B with AgreeYa Solutions, C26193247C with TechLink Systems, C26193247D with Compunnel Software Group, C26193247E with Progile Tech Inc, C26193247F with Omm IT Solutions, C26193247G with Infojini Inc, and C26193247H with California Creative Solutions Inc., to Increase the Not-to-Exceed Amount by $1.5 Million and Extend the Term through June 30, 2027; 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 eight on-call professional services contracts for IT on-call services with the vendors listed above, for a one-year term, in an amount Not-to-Exceed $1,500,000 annually.

The revised total contract not-to-exceed amount of $3.0 million.

BACKGROUND
On June 17, 2025, the City Council approved eight on-call IT professional services contracts for an initial one-year term from July 1, 2025, through June 30, 2026, with four optional one-year extensions1. These four optional one-year extensions allow the City to regularly review service levels and resource needs. Year 1 is nearing completion and staff recommends approval of Amendment No. 1 to extend the contracts for a second-year from July 1, 2026, through June 30, 2027.

In total, $0.8 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. 1 June 17, 2025 City Council Staff Report:
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Table 1. FY26 IT On-Call Projects by Funding Source
Funding Source /
Department Amount Task Orders
Utilities
Department
$374,436 Fiber to the Premises (FTTP) support and project delivery FTTP Phase 1 Pilot project management, systems and
process workflows, fiber work orders, field
investigations, and 3GIS support
Fiber project coordination, including engineering,
construction oversight, permitting, regulatory
compliance, make-ready coordination, testing,
acceptance, and asset documentation
Information
Technology
Department (ITD)
$343,000 Citywide IT operations and technology improvements Interactive dashboards and API/webservices
integrations to support cross-functional business needs Technician support for City laptop replacement /
upgrade project augmenting City staff as needed
Coordination of cross-department technology
initiatives and related reporting tools
Planning &
Development
Services
$20,000 Development of Power BI dashboards that provide interactive, performance-focused monitoring and reporting Recognizing the continuing and evolving need for specialized IT support across multiple departments, the Information Technology Department (ITD) issued a Request for Proposals (RFP) in early 2025 to establish a pool of qualified vendors capable of providing IT on-call services from July 1, 2025, through June 30, 20303. The on-call structure allows the City to access skilled IT resources on an as-needed, limited-term basis while maintaining flexibility to scale work up or down based on City needs and budget.

The total combined spending across all 8 contracts shall not exceed $1,500,000 annually. No vendor is guaranteed a minimum amount of work. Services will be issued through task orders with defined scope, schedule, and price.

ANALYSIS
Continuation of on-call IT contracts are critical, as demand for support is increasing for enhanced capabilities such as infrastructure support, disaster recovery, application development, compliance, workflow automation, interactive dashboards, SharePoint and collaboration improvements, and stronger data management and governance. These on-call 3 2025 RFP: https://procurement.opengov.com/portal/palo-alto-ca/projects/141382/addenda Item 10
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contracts are planned to support multiple initiatives underway or scheduled to begin in FY 2027. Estimated needs for FY 2027 include:
Citywide IT operations and technology improvements (funded in the Information Technology fund; estimated cost is $400K for cybersecurity, power platform development, and deployment of device replacement cycle) Data analytics and dashboard development funded by the Information Technology fund as well as other city departmental funds as requested (utilities and development center; estimated cost is $200K for BI development)
Fiber to the premises project customer onboarding, installation, and customer interface funded by the Fiber Fund (estimated cost is $500K for broadband and project coordinators)
Scope of services may include project coordination for Fiber, computer rollout, governance, data analytics, database and/or network administration and computer programming.

Services under each contract is assigned through individual task orders:
Contractors will be selected for each task order based on resource availability, relevant expertise, and alignment with project requirements.
Staff will evaluate each task order’s scope of work, contractor experience, and billing rates to ensure they are appropriate and cost-effective. 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 manage deliverables and budgets, review work products, and approve invoices only after confirming that billed hours match work performed and that deliverables meet City standards.

Before issuing a task order, staff will determine whether the work can be performed internally or requires specialized consultant support. Task orders will include requirements for documentation and knowledge transfer so that the City retains institutional knowledge and can support systems over the long term.

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.

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FISCAL/RESOURCE IMPACT
$500,000 is allocated from the Technology Fund for these on-call contracts in FY 2027; no additional funding is requested. The Not-to-exceed amount is higher than the budgeted amount to allow for all City departments to be able to utilize these on-call contracts with their contract services or capital budgets, as in the case with the Planning department and the Fiber Fund in the Utilities department.

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 IT 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.

LINKS
IT On-Call Project Support Services Contracts:
 INSPYR Solutions, Contract Number C26193247A5
 AgreeYa Solutions, Contract Number C26193247B6
 TechLink Systems, Contract Number C26193247C7
 Compunnel Software Group, Contract Number C26193247D8  Progile Tech, Contract Number C26193247E9
 Omm IT Solutions, Contract Number C26193247F10
5 https://www.paloalto.gov/files/assets/public/v/1/it-department/cmr-attachments/it-on- call/2026/c26193247a.pdf
6 AgreeYa Solutions, Contract Number C26193247B
7 TechLink Systems, Contract Number C26193247C
8 Compunnel Software Group, Contract Number C26193247D
9 Progile Tech, Contract Number C26193247E
10 https://www.paloalto.gov/files/assets/public/v/1/it-department/cmr-attachments/it-on- call/2026/c26193247f.pdf
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 Infojini, Contract Number C26193247G17
 California Creative Solutions, Contract Number C26193247H18 APPROVED BY:

Darren Numoto, Chief Information Officer; Lisa Bolger, Assistant Director Information Technology/CTO
17 https://www.paloalto.gov/files/assets/public/v/1/it-department/cmr-attachments/it-on- call/2026/c26193247g.pdf
18 https://www.paloalto.gov/files/assets/public/v/1/it-department/cmr-attachments/it-on- call/2026/c26193247h.pdf
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CITY COUNCIL
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Planning and Development Services
Meeting Date: June 8, 2026
Report #: 2604-6292
TITLE
QUASI-JUDICIAL. 405 Kipling Street [25PLN-00322] Approval of a Record of Land Use Action to Upgrade the Property Located at 405 Kipling Street From a Category 4 Resource on the Local Historic Inventory to a Category 2 Resource. CEQA Status: Not a Project Pursuant to Public Resources Code Section 21065.

RECOMMENDATION
Staff and the Historic Resources Board (HRB) recommend that City Council reclassify the building from a Category 4 resource to a Category 2 resource on the Palo Alto Historic Resources Inventory.

BACKGROUND
This report and Record of Land Use Action (Attachment B) provide background and support for the HRB’s April 9, 2026, recommendation to upgrade the two-story residential building, located at 405 Kipling Street, from Historic Inventory Category 4 to Category 2. The HRB staff report1 included the consultant’s assessment and inventory form. These documents are also available on the project webpage (Attachment C).

The property at 405 Kipling Street is situated on a flat rectangular corner parcel that is 112 feet deep and 53 feet wide in the Downtown North Neighborhood. The two-story residential building was built by H.L. Upham in 1897 and exemplifies the early Palo Alto Two-Story Square Box building type with stylistic elements of Queen Anne. The property appears to have been minimally altered from its original style, form, and massing.

The building at 405 Kipling Street, was first evaluated and added to the local historic inventory in 1985 as a Category 4 resource for its architecture. While originally constructed as a single- family residence, the property has undergone several changes in use. By 1901, rooms were rented to lodgers and Stanford University students. Around 1955, William P. Wreden converted 1 Link to April 9, 2026 HRB staff report with consultant assessment and inventory form:
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the property to commercial use for his antiquarian bookstore, though it is unclear whether the entire building was used or if any residential use remained. By 1970, Chimaera Books and Music occupied both floors. In 1999, Chimaera relocated to Redwood City. Since that time the building has been used for residential use.

ANALYSIS
On April 9, 2026, the HRB reviewed the applicant’s proposal to reclassify the subject building from the current Category 4 designation on the Historic Inventory to Category 2. A Category 2 resource is a building or group of buildings of major regional importance, meritorious works of the best architects or an outstanding example of an architectural style or the stylistic development of architecture in the state or region. A major building may have some exterior modifications, but the original character is retained. The HRB voted unanimously to recommend that the City Council reclassify 405 Kipling Street to Category 2.

The analysis concluded that the qualities and values of 405 Kipling Street are considerably more significant than the Municipal Code’s definition of the qualities of a Category 4 building. The HRB staff report included three detailed findings for the consistency of the qualities of 405 Kipling Street with the Municipal Code definition of a Category 2 building. The analysis found the building retains its historic integrity and represents outstanding and regionally important architecture consistent with the definition of a Category 2 resource in the Municipal Code Chapter 16.49.

The HRB discussed its support for the reclassification to a Category 2 resource. The applicant and the property owner participated in the review of the proposed reclassification and support this recommendation. The language of the three findings for reclassification that HRB adopted are provided in the attached draft Record of Land Use Action (Attachment B). Each of the three findings reflect the language of the Municipal Code’s definition of Category 2.

Reclassification from a Category 4 to a Category 2 resource at the local level could allow for participation in the Floor Area Bonus/Transfer of Development Rights (TDR) program for qualifying rehabilitation projects. The Floor Area Bonus/TDR program is available for qualifying rehabilitation projects for local inventory Category 1 and 2 resources that are zoned CD (Commercial Downtown) or other criteria. The property owner has submitted a proposed historic and seismic rehabilitation project that, contingent upon reclassification of the property to Category 2, could allow bonus floor area to be transferred and sold for use in the Downtown area rather than utilized on-site.

FISCAL/RESOURCE IMPACT
There is no significant fiscal or resource impact associated with this application. The City’s consultant costs and staff time to process this application were paid for by the property owner.

There is potential incremental value from property redevelopment at this location or through Item 11
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the transfer of development rights to another site, reflected in reassessed property tax revenues; however, that value cannot be quantified at present.

PUBLIC COMMENTS
As of the writing of this report, no written project-related, public comments were received. One member of the public spoke in support of the redesignation at the HRB hearing.

ENVIRONMENTAL REVIEW
Maintenance of historic designation of a property or reclassification of historic designation of a property is not a project under the California Environmental Quality Act and CEQA Guidelines Section 21065 because it will not cause a direct change to the physical environment nor a reasonably foreseeable indirect physical change in the environment.

ATTACHMENTS
Attachment A: Location Map
Attachment B: Draft Record of Land Use Action
Attachment C: Project Plans
APPROVED BY:

Jonathan Lait, Planning and Development Services Director Item 11
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7 7-11

93.0' 37.5'105.5'37.5'105.5'37.5'105.5'37.5'105.5'93.0'105.5'93.0'105.5' 168.0'112.5'168.0'112.5'50.0'57.0'71.5'43.0'50.0'88.0'125.0'93.0'30.0'75.0' 40.0'112.5'40.0'112.5'50.0'112.5'50.0'112.5'50.0'112.5'50.0'112.5'36.0'95.0'36.0'95.0'39.0'37.5'18.0'75.0'57.0'112.5'107.0'107.0'50.0'107.0'107.0'25.0'125.0'37.5'25.0'112.5'50.0'112.5'14.0'17.5'36.0'130.0'50.0'218.0'218.0' 45.0'112.5'45.0'112.5'45.0'105.5' 110.0'100.0'25.0'

37.5'37.5'112.5'30.0'75.0'30.0'75.0'50.0'112.5'112.5'40.0'112.5'40.0'112.5'60.0'112.5'60.0'112.5'60.0'112.5'60.0'112.5'60.0'112.5'60.0'112.5'50.0'35.0'62.5'35.0'62.5'83.0'62.5'83.0'62.5'118.0'62.5'118.0'62.5' 118.0'100.0'118.0'100.0'112.5'100.0' 130.5'93.0'112.5'93.0'112.5' 100.0'112.5'100.0'112.5'53.0'112.5'53.0'112.5'65.0'112.5'100.0'112.5'100.0'112.5'100.0'112.5'100.0'112.5'100.0'112.5'100.0' 130.5'130.5'130.5' 405437463480530405431433437440
336360
425
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411411421340344348325327333335337
425419405401450407423443451463440430431444
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KIPLING STREETLYTTON AVENUE

WAVERLEY STREET
COWPER STREETKIPLING STREETUNIVERSITY AVENUELANE 30Lot T This map is a product of the
City of Palo Alto GIS
This document is a graphic representation only of best available sources.

Legend
Project Site
0' 70'
Attachment A Location Map 405 Kipling Street

CITY OF PALO ALTOINCORPORATEDCALIFORNIA
P a l o A l t o
T h e C i t y o f
APRIL 16 1894
The City of Palo Alto assumes no responsibility for any errors ©1989 to 2016 City of Palo Alto sswitze, 2026-04-01 08:32:10
(\\cc-maps\Encompass\Admin\Personal\Planning.mdb)
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1 APPROVAL NO. 2025-
RECORD OF THE COUNCIL OF THE CITY OF PALO ALTO LAND USE APPROVAL FOR 405 KIPLING STREET: HISTORIC RESOURCES INVENTORY CATEGORY 4 TO CATEGORY 2 UPGRADE (25PLN-00322)
On June 8, 2026, the Council held a duly noticed public hearing and, after considering all of the evidence presented, approved the property owner’s request to reclassify the residential building at 405 Kipling Street currently a Local Category 4 Historic Resource. The Council approved the Historic Resources Board (HRB) recommendation to an upgraded level, Category 2 Historic Resource on the City of Palo Alto Historic Resources Inventory. In approving the application, the Council made the following findings, determination, and declarations:

SECTION 1. Background.

A. On December 2, 2025, the property owner contacted staff to request a reclassification of a two-story residential building at 405 Kipling Street, built by H.L. Upham in 1897 and exemplifies the early Palo Alto Two-Story Square Box building type with stylistic elements of Queen Anne, from a ‘Contributing Building’ Category 4 resource to a ‘Major Building’ Category 2 resource on the Palo Alto Historic Inventory. With the owner’s request and funding, staff obtained a historic resource evaluation from the City’s consultant, Page & Turnbull, including an integrity evaluation to understand building’s eligibility for a classification upgrade.

The historic resource evaluation supports a classification upgrade to a Category 2 historic resource. The consultant describes the building’s eligibility in a report dated June 10, 2025, noting its eligibility under local criteria 2, 5, and 6:
Criterion 2 (The structure or is particularly representative of an architectural style or way of life important to the city, state or nation)
405 Kipling Street is an early example of the Two-Story Square Box house type in Palo Alto’s Downtown North neighborhood. The Two-Story Square Box is a Palo Alto residential house type that mixed familiar forms and finishes of the Colonial Revival, Queen Anne Free Classic, and sometimes Craftsman styles in later examples. 405 Kipling Street does meet the requirements of Criterion 2. Criterion 5 (The architect or building was important)
H.L. Upham was a builder of merit who made important contributions to the early built environment of Palo Alto. Upham designed and built numerous larger high- style residences in Palo Alto, including many TwoStory Box house types. The subject building is a minimally altered example of H.L. Upham’s contributions to the high-quality housing stock during Palo Alto’s early period of development. 405 Kipling Street does meet the requirements of Criterion 5. Criterion 6 (The structure or site contains elements demonstrating outstanding attention to architectural design, detail, materials or craftsmanship) Item 11
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2 The building’s wood windows and shiplap siding are common in buildings constructed in the late 19th and early 20th centuries, elements such as the molded cornice and eave returns, decorative carved corbels, fish scale cladding, Tuscan columns, and multi-lite porch window are examples of attention to architectural design, detail, materials, and craftsmanship implemented by builder-of-merit H.L. Upham. 405 Kipling Street does meet the requirements of Criterion 6.

B. On April 9, 2026, the HRB received a staff report (ID #2603-6180), conducted a public hearing, and concurred with the consultant’s evaluation regarding the building’s eligibility for category upgrade from the current local historic inventory Category 4 to Category

2. SECTION 2. Environmental Review.

Pursuant to Section 21065 of the California Environmental Quality Act (CEQA) Guidelines, the maintenance or reclassification of a property’s historic designation does not constitute a project under CEQA.

SECTION 3. Designation Findings.

A. The following criteria, as specified in Municipal Code Section 16.49.040 (b), shall be used as criteria for designating historic structures/sites to the historic inventory:

1. The structure or site is identified with the lives of historic people or with important events in the city, state or nation;

2. The structure or site is particularly representative of an architectural style or way of life important to the city, state or nation;

3. The structure or site is an example of a type of building which was once common, but is now rare;

4. The structure or site is connected with a business or use which was once common, but is now rare;

5. The architect or building was important;

6. The structure or site contains elements demonstrating outstanding attention to architectural design, detail, materials or craftsmanship.

The building at 405 Kipling Street met many of the above criteria when it was first listed on Palo Alto’s Historic Resource Inventory in 1985. With the historic assessment in 2025, the building’s status as a historic resource has remained per Page & Turnbull’s conclusion.

B. The definition of Category 2 in Municipal Code Section 16.49.020 (b) must be met to allow the upgrade to the structure’s category designation:

Category 2 Definition: "Major building" means any building or group of buildings of major regional importance, meritorious works of the best architects or an outstanding Item 11
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3 example of an architectural style or the stylistic development of architecture in the state or region. A major building may have some exterior modifications, but the original character is retained. The applicant requested and the consultant found Category 2 appropriate for this building.

Page & Turnbull historic consultant supported applicant’s request. The City’s consultant found the building at 405 Kipling Street meets the Palo Alto Inventory Category 2 Definition. The integrity evaluation found that the building at 405 Kipling Street retains all seven aspects of integrity (location, setting, design, materials, workmanship, feeling, and association). The minor exterior modifications cited in the consultant’s report have not caused the building to lose its original character.

National Register of Historic Places and California Register of Historical Resources listing: 405 Kipling Street is currently listed in the City of Palo Alto Historic Inventory as a Category 4: “Contributing Building.” It was surveyed for the Historic Resources Inventory and added to the local register in 1985.

SECTION 4. Category Upgrade Approved.

The City Council approves the property owner’s request for re-classification of 405 Kipling Street to a Category 2 historic resource on the City’s Historic Resources Inventory. //
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4 INTRODUCED AND PASSED: June 8, 2026
AYES:

NOES:

ABSENT:

ABSTENTIONS:

ATTEST:
_________________________ ____________________________
City Clerk Mayor
APPROVED AS TO FORM: APPROVED AS TO CONTENT:
_________________________ ____________________________
Assistant City Attorney City Manager

____________________________
Director of Planning and
Development Services
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ATTACHMENT C
Project Plans
In order to reduce paper consumption, a limited number of hard copy project plans are provided to Councilmembers for their review. The same plans are available to the public, at all hours of the day, via the following online resources.

Directions to review Project plans online:

1. Go to: https://www.paloalto.gov/Departments/Planning-Development- Services/Development-Services/Palo-Alto-Permit-View

2. Scroll down to find “405 Kipling Street” and click the address link.

3. On this project specific webpage, you will find a link to the project plans and other important information.

Project Website:
https://www.paloalto.gov/Departments/Planning-Development-Services/Current- Planning/Projects/405-Kipling-Street
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CITY COUNCIL
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Planning and Development Services
Meeting Date: June 8, 2026
Report #: 2604-6277
TITLE
QUASI-JUDICIAL. 3980 El Camino Real (Buena Vista) [26PLN-00090]: Request for a Final Map to Subdivide a Single, 4.52-Acre Parcel into Two Parcels. The Subdivision would Facilitate Renovation of the Buena Vista Mobile Home Park as well as Future Construction of a 100% Affordable Apartment Building on the Resulting Parcels (24PLN-00041). A Tentative Map was Previously Approved on August 12, 2024. CEQA Status: Not a Project.

RECOMMENDATION
Staff recommends that the City Council approve the Final Map (Attachment B), which is in Substantial Compliance with the Vesting Tentative Map Approved on August 12, 2024, pursuant to Palo Alto Municipal Code (PAMC) Section 21.16 and the Subdivision Map Act.

BACKGROUND
On April 30, 2024, the Santa Clara County Housing Authority (SCCHA), filed a Vesting Tentative Map application (24PLN-00129) concurrently with a Streamlined Housing Development review application (24PLN-00041) in relation to the Buena Vista Mobile Home Park. In accordance with the PAMC Section 21.13 Vesting Tentative Map, the map application was deferred until all other entitlements were approved. The Planning and Transportation Commission reviewed and recommended approval of the Vesting Tentative Map on July 10, 2024, and City Council approved the Vesting Tentative Map on August 12, 2024, along with the associated entitlements for the proposed improvements. The Record of Land Use Action (RLUA 2024-13) is included in Attachment A.

On April 21, 2026, SCCHA filed a Final Map application. The Final Map application is the second of a two-phased process to subdivide the existing 196,918-square-foot (4.52 acre) parcel into two resulting parcels. The Final Map is the official legal document recorded with Santa Clara County that establishes the property lines and easements within the subdivision. The Final Map must be prepared under the direction of a registered civil engineer or a licensed land surveyor and be based on a survey. Approval of a Final Map is ministerial if the Final Map is in substantive compliance with the approved Vesting Tentative Map and the subdivider has satisfied the conditions of approval attached to the Tentative Map. While many cities delegate Item 12
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approval of the Final Map to the City Engineer, under PAMC Section 21.16.240, the City Council is responsible for the approval in Palo Alto.

The Final Map facilitates financing for the SCCHA to conduct necessary utility upgrades to one of the parcels. It also facilitates the future redevelopment of the property with a multi-family apartment building and a mobile home park on the resulting 1.69-acre and 2.82-acre parcels, respectively. More information about the current status of improvements at the Buena Vista Mobile Home Park can be found on the project website:
https://www.paloalto.gov/Departments/Planning-Development-Services/Current- Planning/Projects/3980-El-Camino-Real-Buena-Vista.

ANALYSIS
The Final Map is the document containing the statements, acknowledgements, and agreements from the property owner, surveyor, City officials, and beneficiaries that the Final Map is in conformance with all applicable regulations and the approved Vesting Tentative Map. The map also includes dedication of emergency vehicle access easements needed for the site. The sidewalk and utilities easement shown on the Vesting Tentative Map are not shown on the Final Map as the exact location of these is still being refined in coordination with Valley Water, HCD, the County Housing Authority, and City of Palo Alto Utilities. These will be recorded through separate instrument prior to issuance of required street work permits and/or prior to operation of the electrical equipment.

FISCAL/RESOURCE IMPACT
There are no fiscal impacts related to the recommended action. The proposed subdivision facilitates redevelopment of the resulting parcels with affordable housing pursuant to the approved Buena Vista redevelopment Project previously approved. Affordable housing projects are exempt from development impact fees. It is anticipated that property tax revenue will increase upon the completion of the project as a result of the assessment of a higher property value.

HCD is providing SCCHA with an approximately $24 million forgivable loan to implement infrastructure improvements at Buena Vista. Recordation of the Final Map is necessary prior to closing of the forgivable loan this month so that SCCHA can expend the funds in advance of the June 2027 statutory deadline for use of these funds.

STAKEHOLDER ENGAGEMENT
The Palo Alto Municipal Code requires notice of this public hearing be published in a local paper and mailed to owners and occupants of property within 600 feet of the subject property at least ten days in advance. Notice of a public hearing for this project was published in the Daily Post on May 29, 2026, which is 10 days in advance of the meeting. Postcard mailing occurred on May 27, 2026, which is 12 days in advance of the meeting.

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ENVIRONMENTAL REVIEW
The proposed action is ministerial and CEQA does not apply. The project was previously evaluated in accordance with the California Environmental Quality Act and found to be exempt in accordance with CEQA Guidelines Section 15332.

ATTACHMENTS
Attachment A: Approved Record of Land Use Action for the Vesting Tentative Map Attachment B: Final Map
APPROVED BY:

Jonathan Lait, Planning and Development Services Director Item 12
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ACTION NO. 2024-13

RECORD OF THE COUNCIL OF THE CITY OF PALO ALTO LAND USE ACTION FOR 3980 El CAMINO REAL: STREAMLINED HOUSING DEVELOPMENT AND VESTING TENTATIVE MAP [24PLN-00041; 24PLN-00129]

At its meeting on August 12, 2024, the City Council of the City of Palo Alto (“City Council”) approved the Streamlined Housing Development Review for a 61-unit residential rental development and Vesting Tentative Map for the development of a subdivision to create two lots, making the following findings, determinations and declarations:

SECTION 1. Background.

A. On February 15, 2024, Santa Clara County Housing Authority (SCCHA) applied for a Streamlined Housing Development Review application for a 61-unit residential rental development, including the following density bonus waivers and concessions in accordance with state density bonus law:
• Density Bonus: 80% increase in density from 20 du/ac to 36 du/ac • Concession 1: Façade Breaks
• Concession 2: Ground Floor Unit Direct Connection to Path or Common Open Space
• Concession 3: Percentage of Frontage Dedicated to Utilities and Parking • Concession 4: Private Open Space (None where 50 sf per unit is required) • Waiver 1: Floor Area Ratio (1.01:1 where 0.5:1 is allowed) • Waiver 2: Height (37 feet where 30 feet is allowed)
• Waiver 3: Site Open Space (24% where 35% is required) • Waiver 4: Tree Canopy Cover in Parking Lot (future coverage of 47% where 50% is required)
• Waiver 5: Reduction in Street Trees (none provided along the mobile home project frontage [due to Valley Water easement restrictions] where one per every 30 feet is required.

B. On April 30, 2024, SCCHA applied for a Vesting Tentative Map for the development to subdivide one (1) existing 4.5-acre lot into two parcels (1.69-acres and 2.81 acres). The 61-unit apartment complex would be developed on the resulting 1.69-acre parcel; the 2.81-acre parcel would be redeveloped with 44 mobile home units, which would be processed through the state (“The Project”).

C. The project site is comprised of one existing lot (APN No. 127-11-103) of approximately 4.5 Acres (196,020 sf). The site contains a multi-family development with seventy-nine (79) residential units, seventy-five (75) of which are occupied. Single family Docusign Envelope ID: D23A29AF-406C-4115-A772-B183D5D611CC Item 12
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Record of Land Use Action
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residential uses abut the site to the north. Multi-family residential units abut the site to the west, and across Los Robles Avenue to the South. Commercial uses abut the site to the east along El Camino Real.

D. Following submittal of the application, Council held a study session on March 4, 2024 to provide early input on the proposed development and to provide an opportunity to hear comments from the public.

E. Following staff review, the Architectural Review Board reviewed the project at a study session on May 2, 2024, to provide feedback on the design for the streamlined housing development review application.

F. Following the Architectural Review Board hearing, the applicant resubmitted revised plans for the streamlined housing development review application on May 29, 2024.

G. Following staff review of the Vesting Tentative Map, the Planning and Transportation Commission reviewed the project and recommended approval on July 10, 2024, subject to conditions of approval.

H. On June 18, 2024 the City Council held a duly noticed public hearing, at which evidence was considered and all persons were afforded an opportunity to be heard in accordance with the City Council’s policies and procedures.

I. On August 12, 2024 the City Council held a duly noticed public meeting at which evidence was considered and all persons were afforded an opportunity to be heard in accordance with the City Council’s policies and procedures

SECTION 2. Environmental Review. The City, acting as the lead agency for the Project, has determined that the project is exempt from the California Environmental Quality Act (CEQA) in accordance with CEQA Guideline section 15332, which provides an exemption for infill development projects. Documentation to support the exemption is available as part of the public record on file with the Planning and Development Services Division.

SECTION 3. Streamlined Housing Development Review. The design and architecture of the proposed improvements, as conditioned, complies with the Streamlined Housing Development Project Review Process Findings as required in Chapter 18.77.073 of the PAMC. Neither the Director, nor the City Council on appeal, shall approve an application unless it is found that:

Finding #1: The application complies with all applicable and objective standards in the Comprehensive Plan, the Palo Alto Municipal Code, and other City plans or policies.

The proposed project complies with all applicable and objective standards in the Comprehensive Plan and the Palo Alto Municipal Code as detailed in the Council staff report Docusign Envelope ID: D23A29AF-406C-4115-A772-B183D5D611CC Item 12
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(Staff report ID #2248-3347) except where waivers or concessions are requested pursuant to state density bonus law. In accordance with The Housing Accountability Act as set forth in California Government Code 65589.5(j)(3), the receipt of a density bonus, incentive, concession, waiver, or reduction of development standards pursuant to Section 65915 shall not constitute a valid basis on which to find a proposed housing development project is inconsistent, not in compliance, or not in conformity, with an applicable plan, program, policy, ordinance, standard, requirement, or other similar provision. Therefore, for the project is compliant with the objective standards.

A summary of the project’s consistency with the Comprehensive Plan is provided in this table.

The project is required to comply with the Comprehensive Plan to the extent that the requirements are objective.

Comp Plan Goals and Policies How project adheres or does not adhere to Comp Plan
The Comprehensive Plan land use
designation for the site is Multi-family
Residential which allows for densities ranging
from 8 to 40 units per acre
The project adheres to the Comprehensive
Plan by providing multi-family housing on a
multi-family use site. The proposed density is
36 units per acre which is consistent with this
comprehensive plan land use designation.

Housing Element
Policy 4.3 Implement development
standards, objective design standards, and
architectural and green building standards
that encourage new high-quality rental and
ownership housing.

The project complies with the implemented
standards except where requests for waivers
or concessions in accordance with state
density bonus law is provided. The project
provides the necessary upgrades to
deteriorating infrastructure on the site and
updates to the units to provide new high-
quality rental and ownership units while
maintaining the affordability level.

Land Use and Community Design Element
Policy L-2.8: When considering infill
development, work to minimize the
displacement of existing residents
The project is an infill project. A full
relocation plan has been presented to all
tenants and creates options for ownership or
rental. The project replaces more units than
it removes.

Policy L-9.2 Encourage development that
creatively integrates parking into the project,
including by locating it behind buildings or
underground wherever possible, or by
providing for shared use of parking areas.

Encourage other alternatives to surface
parking lots that minimize the amount of
While the project proposes surface parking,
the parking is located at the side of the
building and is not located between the
building and the street. The frontage is still
provides a sidewalk and bike lane and
provides street trees and other greenery
along the frontage.

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land devoted to parking while still
maintaining safe streets, street trees, a
vibrant local economy and sufficient parking
to meet demand.

Policy L-9.4 Treat residential streets as both
public ways and neighborhood amenities.

Provide and maintain continuous sidewalks,
healthy street trees, benches and other
amenities that promote walking and “active”
transportation.

The project includes a new sidewalk and
street trees as well as new bicycle parking
within the project setback area that
promotes active transportation. This
improves the current design, which provides
parking along the project frontage and does
not include a sidewalk.

Transportation Element
Policy T-3.7 Encourage pedestrian-friendly
design features such as sidewalks, street
trees, on-street parking, gathering spaces,
gardens, outdoor furniture, art and
interesting architectural details.

The project includes direct connections to
the sidewalk that help to activate the
frontage along Los Robles Avenue in addition
to new street trees and plantings.

Policy T-3.9 Support citywide sustainability
efforts by preserving and enhancing the tree
canopy where feasible within the public
right-of-way, consistent with the Urban
Forest Management Plan, as amended.

The project meets the tree canopy
replacement requirements through on site
planting. The project includes removal of two
trees and replaces with 24 new trees where 7
24-inch box trees are required in accordance
with the canopy replacement requirements.

Finding #2: Approving the application will not result in a specific, adverse, impact upon the public health or safety, which cannot feasibly be mitigated or avoided in a satisfactory manner.

As used in this Section, a "specific, adverse impact" means a significant, quantifiable, direct, and unavoidable impact, based on objective, identified written public health or safety standards, policies, or conditions as they existed on the date the application was deemed complete.

The proposed project would not result in a specific, adverse, impact upon public health or safety. The project complies with all applicable safety requirements with respect to fire safety for the building itself (e.g. ladder access, sprinklers) as well as emergency vehicle access to the site. The project also does not introduce any new changes to streets (e.g. new curves in a roadway) or impacts to line-of-sight that would create a safety hazard.

SECTION 4. Vesting Tentative Map Findings. A legislative body of a city shall deny approval of a Parcel Map, if it makes any of the following findings (California Government Code Section 66474). The City Council cannot make these findings for the following reasons:

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1. That the proposed map is not consistent with applicable general and specific plans as specified in Section 65451:

The site is consistent with the Comprehensive Plan as described below.

2. That the design or improvement of the proposed subdivision is not consistent with applicable general and specific plans:

There is no adopted specific plan for this project site. The proposed vesting tentative map and related improvements is consistent with the Comprehensive Plan in that it facilitates housing development on a site designated for multi-family use within the urban services area, consistent with Goal 2 of the Housing Element and Goal L1.2 of the Land Use Element. The proposed density (36 DU/AC) is consistent with the allowable density (20 to 40 DU/AC) in the multi-family land use designation as outlined in the Land Use Element. The project replaces 79 existing residential ownership and rental units with 61-residential rental units and 44 residential ownership units. The project would be 100% affordable with 40% of units provided at a rate affordable to households earning 30% of Area Median Income (AMI), 40% of the units provided at a rate affordable to households earning 50% AMI and the remaining 20% provided at a rate affordable to households earning 80% AMI. The project improves the city’s jobs housing imbalance consistent with the Transportation Element’s goals and policies.

3. That the site is not physically suitable for the type of development:

The Project site is suitable for multi-family residential development in that it’s located within the multi-family zone district on a site designated on the City’s Land Use Map for multi-family use. The proposed resulting parcels meet the minimum code requirements for the RM-20 zone district with respect to lot area, width and depth. The proposed number of condominium units for one of the two parcels complies with the applicable densities set forth in the land use element.

4. That the site is not physically suitable for the proposed density of development:

The proposed development of both parcels would create a total of one-hundred and five (105) multi-family residential units which is 23 dwelling units (DU) per acre (total project site is 4.5 acres). This density complies with the minimum and maximum allowable residential density as calculated for the total site area under the comprehensive plan (20-40 DU/acre = 90-180 DU).

The newly created parcel for the rental units would have a density that exceeds the maximum allowable density for the zoning (20 DU/AC) in accordance with state density bonus law (Assembly Bill 1763) which allows for increased density based on the percentage of BMR units (80% of the base project) and their affordability level. Building, Palo Alto Fire Department, Planning, Transportation, Zero Waste, and Public Works Engineering have reviewed the requested density bonus waiver to permit a minimum 28-foot street width to ensure that all necessary requirements for safety, including but not limited to, fire safety and traffic safety Docusign Envelope ID: D23A29AF-406C-4115-A772-B183D5D611CC Item 12
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(e.g. curb cut location, turning radius, etc.) have been met as well as to ensure that the street allows for proper function of the site (e.g. trash pickup).

5. That the design of the subdivision or the proposed improvements are likely to cause substantial environmental damage or substantially and avoidably injure fish or wildlife or their habitat:

The project is located within the built environment that does not contain quality habitat for fish or other wildlife on the site or within the vicinity of the site. An easement along the project frontage contains Barron Creek within an existing underground culvert pipe. An encroachment permit from Valley Water is required as a condition of approval of the project to ensure that the proposed work does not impact the existing infrastructure. The adopted Palo Alto 2030 Comprehensive Plan includes Map N-1, which identified sensitive animal and plant species within the Palo Alto quadrangle, a large geographic area that includes the urban portions along the bay and within the foothills, based on information in the California natural Diversity Database (CNDDB). Based on this map, and the urban nature of the site, the subject property does not contain any habitat for endangered, rare, or threatened species and has not historically supported any of these species.

6. That the design of the subdivision or type of improvements is likely to cause serious public health problems:

The subdivision of this parcel and associated improvements would not have the potential to result in serious health problems. The proposed multi-family use would not include use or storage of hazardous materials and the use is located within the urban environment adjacent to other residential uses. The site is not located on a hazardous waste site pursuant to government code 65962.5.

7. That the design of the subdivision or the type of improvements will conflict with easements, acquired by the public at large, for access through or use of, property within the proposed subdivision. In this connection, the governing body may approve a map if it finds that alternate easements, for access or for use, will be provided, and that these will be substantially equivalent to ones previously acquired by the public. This subsection shall apply only to easements of record or to easements established by judgment of a court of competent jurisdiction and no authority is hereby granted to a legislative body to determine that the public at large has acquired easements for access through or use of property within the proposed subdivision:

There are no public access easements over the property currently. Therefore, the design of the subdivision will not conflict with any public easements for access through, or use of, the property. Existing public utility easements would be vacated and new public utility easements created as part of the mapping process to reflect modifications to the location of utility infrastructure. A new public access easement would be granted over a portion of the frontage for public access on the proposed new sidewalk. An existing Valley Water easement would be Docusign Envelope ID: D23A29AF-406C-4115-A772-B183D5D611CC Item 12
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maintained along the frontage and any temporary or permanent improvements within that area requires an encroachment permit from valley water prior to building permit issuance.

SECTION 5. Vesting Tentative Map Approval Granted. Vesting Tentative Map Approval is filed and processed in accordance to PAMC Section 21.13.020 and granted by the City Council under PAMC Sections 21.12 and 21.20 and the California Government Code Section 66474, subject to the conditions of approval in Section 8 of this Record of Land Use Action.

SECTION 6. Final Map. The Final Map submitted for review and approval by the City Council shall be in substantial conformance with the Vesting Tentative Map prepared by Sandis Engineering titled “Vesting Tentative Map For a Two Lot Subdivision,” consisting of three pages, stamped as received July 1, 2024, except as modified to incorporate the conditions of approval in Section 8. A copy of the Vesting Tentative Map is on file in the Department of Planning and Development Services, Current Planning Division. Prior to the expiration of the Vesting Tentative Map approval, the subdivider shall cause the subdivision or any part thereof to be surveyed, and a Final Map, as specified in Chapter 21.08, to be prepared in conformance with the Vesting Tentative Map as conditionally approved, and in compliance with the provisions of the Subdivision Map Act and PAMC Title 21 and submitted to the City Engineer (PAMC Section

21.16.010[a]).

SECTION 7. Conditions of Approval Streamlined Housing Development Review.

PLANNING DIVISION

1. CONFORMANCE WITH PLANS. Construction and development shall conform to the approved plans entitled, "Buena Vista Commons 3980 El Camino Real, Palo Alto, CA 94306” stamped as received by the City on July 19, 2024 on file with the Planning Department, 250 Hamilton Avenue, Palo Alto, California except as modified by these conditions of approval.

2. BUILDING PERMIT. Apply for a building permit and meet any and all condi tions of the Planning, Fire, Public Works, and Building Departments.

3. BUILDING PERMIT PLAN SET. A copy of this cover letter and conditions of approval shall be printed on the second page of the plans submitted for building permit.

4. PROJECT MODIFICATIONS. All modifications to the approved project shall be submitted for review and approval prior to construction. If during the Building Permit review and construction phase, the project is modified by the applicant, it is the responsibility of the applicant to contact the Planning Division/project planner directly to obtain approval of the project modification. It is the applicant’s responsibility to highlight any proposed changes to the project and to bring it to the project planner’s attention.

5. LANDSCAPE PLAN. Plantings shall be installed in accordance with the approved plan set and shall be permanently maintained and replaced as necessary. Landscaping along the rear lot Docusign Envelope ID: D23A29AF-406C-4115-A772-B183D5D611CC Item 12
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line between the project and single-family residential uses shall be planted at a minimum height of 8 feet and maintained as a landscape screen for the life of the project in accordance with the code requirements for objective standards.

6. NOISE THRESHOLDS ON RESIDENTIAL PROPERTY. In accordance with PAMC Section

9.10.030, No person shall produce, suffer or allow to be produced by any machine, animal or device, or any combination of same, on residential property, a noise level more than six dB above the local ambient at any point outside of the property plane.

7. OPEN AIR LOUDSPEAKERS (AMPLIFIED MUSIC). In accordance with PAMC Section 9.12, no amplified music shall be used for producing sound in or upon any open area, to which the public has access, between the hours of 11:00pm and one hour after sunrise.

8. NOISE REPORT AT BUILDING STAGE. An analysis of the proposed project’s compliance with the City’s noise requirements for the proposed HVAC was prepared as part of the documentation to support a Class 32 categorical exemption. At the time of building permit issuance for new construction or for installation of any such mechanical equipment, if the proposed equipment exceeds the anticipated noise level that was analyzed or is proposed in a location that is closer to the property line, the applicant shall submit an acoustical analysis by an acoustical engineer demonstrating projected compliance with the Noise Ordinance. The analysis shall be based on acoustical readings, equipment specifications and any proposed sound reduction measures, such as equipment enclosures or insulation, which demonstrate a sufficient degree of sound attenuation to assure that the prescribed noise levels will not be exceeded.

9. VALLEY WATER ENCROACHMENT PERMIT. An encroachment permit is required prior to any temporary work or permanent improvements within Valley Water’s easement. The project shall comply with any and all requirements of the encroachment permit.

10. PUBLIC ACCESS EASEMENT. A public access easement shall be required for the proposed sidewalk on private property. This may be dedicated through separate instrument and documented on the tentative map and final map or it may be recorded through the subdivision map process.

11. SIGN APPROVAL NEEDED. No signs are approved at this time. All signs, if proposed, shall conform to the requirements of Title 16.20 of the Palo Alto Municipal Code (Sign Code) and shall be subject to approval by the Director of Planning.

12. STANDARD REQUIREMENTS FOR UNANTICIPATED DISCOVERY OF BURIED ARCHEOLOGICAL RESOURCES. No known archeological resources are present on or within the immediate vicinity of the site. However, as noted in the project description and per the City’s standard conditions, in the unlikely event that an archeological resource is unearthed during ground disturbing activities, work in the immediate area should be halted and an archaeologist meeting the Secretary of the Interior’s Professional Qualifications Standards for archeology Docusign Envelope ID: D23A29AF-406C-4115-A772-B183D5D611CC Item 12
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(National Park Service 1983) shall be contacted immediately to evaluate the find. If the find is Native American in origin, then a Native American representative should also be contacted to participate in the evaluation of the find. The qualified archaeologist, and, if applicable, the Native American representative, shall examine the find and make recommendations regarding additional work necessary to evaluate the significance of the find and the appropriate treatment of the resource. Recommendations could include, but are not limited to, invasive or non-invasive testing, sampling, laboratory analysis, preservation in place, or data recovery. A report of findings documenting any data recovered during monitoring shall be prepared by a qualified archaeologist and submitted to the Director of Planning.

13. STANDARD REQUIREMENTS FOR THE PROTECTION OF NESTING BIRDS. As detailed in the project description and per the City’s standard conditions, vegetation or tree removal shall be prohibited during the general avian nesting season (February 1 – August 31), if feasible.

If nesting season avoidance is not feasible, the applicant shall retain a qualified biologist, as approved by the City of Palo Alto, to conduct a preconstruction nesting bird survey to determine the presence/absence, location, and activity status of any active nests on or adjacent to the project site no more than 14 days prior to scheduled vegetation clearance and/or demolition activities. If nesting birds are found to be present, a suitable buffer (typically a minimum buffer of 50 feet for passerines and a minimum buffer of 250 feet for raptors) as determined appropriate by the biologist, shall be established around such active nests and no construction shall be allowed within the buffer areas until a qualified biologist has determined that the nest is no longer active (i.e., the nestlings have fledged and are no longer reliant on the nest).

14. STANDARD REQUIREMENTS FOR PM10 AND PM2.5 EMISSIONS. The following conditions shall be implemented during all phases of construction to control dust and exhaust at the project site in compliance with the Comprehensive Plan Policy N-5.5:

• Water all exposed surfaces (e.g., parking areas, staging areas, soil piles, graded areas, and unpaved access roads) two times per day.
• Cover all haul trucks transporting soil, sand, and other loose material off-site. • Remove all visible mud or dirt track out onto adjacent public roads at least once per day using wet power vacuum street sweepers. The use of dry power sweeping is prohibited.
• Limit all vehicle speeds on unpaved roads to 15 miles per hour. • Pave all new roadways, driveways, and sidewalks as soon as possible. • Lay building pads as soon as possible after grading unless seeding or soil binders are used.
• Suspend all excavation, grading, and/or demolition activities when average wind speeds exceed 20 miles per hour.

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• Wash off all trucks and equipment, including their tires, prior to leaving the site. • Post a publicly visible sign with the name and phone number of an on-site construction coordinator to contact regarding dust complaints. The on-site construction coordinator shall respond and take corrective action within 48 hours. The sign shall also provide the City’s Code Enforcement Complaints email and number and the Air District’s General Air Pollution Complaints number to ensure compliance with applicable regulations.

15. CONSTRUCTION EQUIPMENT. All construction equipment larger than 25 horsepower used at the site for more than two continuous days or 20 hours total shall meet U.S. EPA Tier 4 Final emission standards for particulate matter (PM10 and PM2.5), if feasible. If Tier 4 Final equipment is not available for a particular piece of equipment, then use equipment that meets U.S. EPA emission standards for Tier 3 engines and include PM emissions control equivalent to CARB Level 3 verifiable diesel emission control devices that altogether achieve an 80 percent reduction in PM exhaust in comparison to uncontrolled equipment.

16. VIBRATION ANALYSIS. Prior to issuance of a demolition permit, a list of all heavy construction equipment to be used for this project known to produce high vibration levels (e.g., tracked vehicles, vibratory compaction, jackhammers, hoe rams, clam shovel drop, and vibratory roller, etc.) shall be submitted to the City by the contractor. This list shall be used to identify equipment and activities that would potentially generate substantial vibration and to define the level of effort for reducing vibration levels below the thresholds. • Smaller equipment (less than 18,000 pounds) shall be used near the property lines adjacent to sensitive buildings to minimize vibration levels to 0.3 in/sec PPV or less. For example, a smaller vibratory roller similar to a Caterpillar model CP433E vibratory compactor could be used when compacting materials within 20 feet of the adjacent conventional building. The smaller equipment intended to implement this requirement shall be individually identified among the list of equipment required under the above condition as the subset of equipment allowed for use at the property lines.
• Select demolition methods that do not involve large impact tools such as hoe- rams within 20 feet of the adjacent conventional building. Portable jackhammers, saws, or grinders shall be used to minimize impacts to the ground. • Avoid dropping heavy equipment and use alternative methods for breaking up existing pavement, such as a pavement grinder, instead of dropping heavy objects, within 20 feet of the adjacent conventional building. • Designate a Disturbance Coordinator responsible for registering and investigating claims of excessive vibration. The contact information for the responsible party shall be clearly posted on the construction site.

17. TREE CANOPY REPLACEMENT. Replacement of the tree canopy for the 44 trees proposed Docusign Envelope ID: D23A29AF-406C-4115-A772-B183D5D611CC Item 12
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to be removed is required in accordance with Chapter 8 of the municipal code and the City’s Tree Technical Manual.

18. REFUSE. All trash areas shall be covered and maintained in an orderly state within the proposed covered areas to prevent water from enterin g into the garbage container. No outdoor storage is allowed/permitted except when brought out to the street for pickup as shown in the plan set. Trash areas shall be maintained in a manner to discourage illegal dumping.

19. REVISED REGULATORY AGREEMENT. The property is currently subject to a tri-party regulatory agreement among the City of Palo Alto, County of Santa Clara, and Santa Clara County Housing Authority that requires maintenance of at least 100 residential units or mobilehome spaces on the property. This regulatory agreement will need to be revised or replaced in order to permit construction and operation of the project.

20. BELOW MARKET RATE (BMR) HOUSING. This project is proposed as a state density bonus project and will be subject to a revised tri-party regulatory agreement between the City of Palo Alto, County of Santa Clara, and Santa Clara County Housing Authority. The project shall conform to the revsed regulatory agreement, which shall be approved and recorded prior to issuance of building permit or final map, whichever occurs first. All BMR units constructed under this condition shall be in conformance with the City’s BMR Program rules and regulations. Failure to comply with the timing of this condition and any adopted BMR Program rules and regulations shall not waive its later enforcement.

21. RENTER PROTECTIONS. The project is subject to the renter protection requirements set forth in PAMC Section 9.68.050. The applicant shall implement the relocation for existing residents in accordance with the proposed relocation plan as guaranteed in Section 5 of the revised regulatory agreement, which meets or exceeds these City requirements.

22. ESTIMATED IMPACT FEE. Because the housing is a 100% affordable housing project, development impact fees, citywide transportation impacts fees, and public art in private development fees, do not apply.

23. ENTITLEMENT EXPIRATION. The project approval shall be valid for a period of two years from the date of issuance of the entitlement. If within such two-year period, the proposed use of the site or the construction of buildings has not commenced, the Planning entitlement shall expire. Application for a one -year extension of this entitlement may be made prior to expiration.

24. FINAL INSPECTION. A Planning Division Final inspection will be required to determine substantial compliance with the approved plans prior to the scheduling of a Building Division final. Any revisions during the building process must be appr oved by Planning, including but not limited to; materials, landscaping and hard surface locations. Contact your Project Planner, Claire Raybould at [email protected] to schedule Docusign Envelope ID: D23A29AF-406C-4115-A772-B183D5D611CC Item 12
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this inspection.

25. INDEMNITY. To the extent permitted by law, the Applicant shall indemnify and hold harmless the City, its City Council, its officers, employees and agents (the “indemnified parties”) from and against any claim, action, or proceeding brought by a third party against the indemnified parties and the applicant to attack, set aside or void, any permit or approval authorized hereby for the Project, including (without limitation) reimbursing the City for its actual attorneys’ fees and costs incurred in defense of the litigation. The City may, in its sole discretion, elect to defend any such action with attorneys of its own choice.

PUBLIC WORKS ENGINEERING

26. PUBLIC WORKS APPLICATIONS, FORMS, AND DOCUMENTS. Applicant shall be advised that most forms, applications, and informational documents related to Public Works Engineering conditions can be found at the following link:
https://www.cityofpaloalto.org/Departments/Public-Works/Engineering-Services/Forms- and-Permits

27. MAP THIRD-PARTY REVIEW. The City contracts with a third-party surveyor that will review and provide approval of the map’s technical correctness as the City Surveyor, as permitted by the Subdivision Map Act. The Public Works Department will forward a Scope & Fee Letter from the third-party surveyor and the applicant will be responsible for payment of the fee’s indicated therein, which is based on the complexity of the map.

28. STREETWORK PERMIT. The applicant shall obtain a Streetwork Permit from the Department of Public Works for all public improvements.

29. GRADING AND EXCAVATION PERMIT. A Grading Permit is required per PAMC Chapter 16.28.

The permit application and all applicable documents (see Section H of application) shall be submitted to Public Works Engineering. Add the following note or similar: “THIS GRADING

PERMIT WILL ONLY AUTHORIZE GENERAL GRADING AND INSTALLATION OF THE STORM DRAIN SYSTEM. OTHER BUILDING AND UTILITY IMPROVEMENTS ARE SHOWN FOR

REFERENCE INFORMATION ONLY AND ARE SUBJECT TO SEPARATE BUILDING PERMIT APPROVAL.”

30. ROUGH GRADING. provide a Rough Grading Plan for the work proposed as part of the Grading and Excavation Permit application. The Rough Grading Plans shall including the following: pad elevation, elevator pit elevation, ground monitoring wells, limits of over excavation, stockpile area of material, overall earthwork volumes (cut and fill), temporary shoring for any existing facilities, ramps for access, crane locations (if any), tree protection measures, etc.

31. CIVIL ENGINEER CERTIFICATION. Upon completion of the rough grading work and at the final completion of the work, applicant shall provide an as-graded grading plan prepared by Docusign Envelope ID: D23A29AF-406C-4115-A772-B183D5D611CC Item 12
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the civil engineer that includes original ground surface elevations, as-graded ground surface elevations, lot drainage patterns and locations and elevations of all surface and subsurface drainage facilities. The civil engineer shall certify that the work was done in accordance with the final approved grading plan.

32. SOILS ENGINEER CERTIFICATION. Upon completion of the rough grading work and at the final completion of the work, applicant shall provide a soil grading report prepared by the soils engineer, including locations and elevation of field density tests, summaries of field and laboratory tests and other substantiating data, and comments on any changes made during grading and their effect on the recommendations made in the soils engineering investigation report. The soils engineer shall certify as to the adequacy of the site for the intended use.

33. GEOTECHNICAL ENGINEER STATEMENT. The grading plans shall include the following statement signed and sealed by the Geotechnical Engineer of Record: “THIS PLAN HAS BEEN

REVIEWED AND FOUND TO BE IN GENERAL CONFORMANCE WITH THE INTENT AND PURPOSE OF THE GEOTECHNICAL REPORT”.

34. SWPPP. This proposed development will disturb more than one acre of land. Accordingly, the applicant shall apply for coverage under the State Water Resources Control Board’s (SWRCB) NPDES general permit for storm water discharge associated with construction activity. A Notice of Intent (NOI) shall be filed for this project with the SWRCB in order to obtain coverage under the permit. The General Permit requires the applicant to prepare and implement a Storm Water Pollution Prevention Plan (SWPPP). The applicant is required to submit two copies of the NOI and the draft SWPPP to the Public Works Department for review and approval prior to issuance of the building permit. The SWPPP should include both permanent, post-development project design features and temporary measures employed during construction.

35. ENCROACHMENT PERMIT. Prior to any work in the public right-of-way, the applicant shall obtain an encroachment permit from the Public Works Department for any work that encroaches onto the City right-of-way.

36. LOGISTICS PLAN. A construction logistics plan shall be provided addressing all impacts to the public including, at a minimum: work hours, noticing of affected businesses, bus stop relocations, construction signage, dust control, noise control, storm water pollution prevention, job trailer, contractors’ parking, truck routes, staging, concrete pours, crane lifts, scaffolding, materials storage, pedestrian safety, and traffic control. All truck routes shall conform to the City of Palo Alto’s Trucks and Truck Route Ordinance, Chapter 10.48, and the route map. NOTE: Some items/tasks on the logistics plan may require an encroachment permit.

37. STORMWATER POLLUTION PREVENTION. All improvement plan sets shall include the “Pollution Prevention – It’s Part of the Plan” sheet.

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38. C.3 THIRD-PARTY CERTIFICATION. Applicant shall provide certification from a qualified third- party reviewer that the proposed permanent storm water pollution prevention measures comply with the requirements of Provision C.3 and Palo Alto Municipal Code Chapter 16.11.

39. SUBMIT THE FOLLOWING:
a. Stamped and signed C.3 data form (April 2023 version) from SCVURPPP. https://scvurppp.org/wp-content/uploads/2023/04/SCVURPPP-C.3-Data-Form-_- updated__4-12-2023_clean_fillable.pdf
b. Final stamped and signed letter confirming which documents were reviewed and that the project complies with Provision C.3 and PAMC 16.11.

40. C.3 STORMWATER AGREEMENT. The applicant shall enter into a Stormwater Maintenance Agreement with the City to guarantee the ongoing maintenance of the permanent storm water pollution prevention measures. The City will inspect the treatment measures yearly and charge an inspection fee. The agreement shall be executed by the applicant team prior to building permit final.

41. C.3 FINAL THIRD-PARTY CERTIFICATION PRIOR TO OCCUPANCY. Within 45 days of the installation of the required storm water treatment measures and prior to the issuance of an occupancy permit for the building, the third-party reviewer shall submit to the City a certification verifying that all the permanent storm water pollution prevention measures were installed in accordance with the approved plans.16.

42. EXISTING EASEMENTS: Provide documentation showing approval from the entities affected by the onsite easements to verify that the work within said easements is permitted.

43. PRIOR TO PUBLIC WORKS FINAL/ACCEPTANCE (STORM DRAIN LOGO): The applicant is required to paint “No Dumping/Flows to Barron Creek” in blue on a white background adjacent to all onsite storm drain inlets. The name of the creek to which the proposed development drains can be obtained from Public Works Engineering. Stencils of the logo are available from the Public Works Environmental Compliance Division, which may be contacted at (650) 329-2598. Include the instruction to paint the logos on the construction grading and drainage plan.

WASTE-GAS-WATER UTILITIES

The following comments are required to be addressed prior to any future related permit application such as a Building Permit, Excavation and Grading Permit, Certificate of Compliance, Street Work Permit, or Encroachment Permit:

44. The applicant must pothole and submit profiles of the water & fire services and wastewater lateral installations crossing the existing 66” storm line meeting the California Plumbing Code, CPAU WGW design standards, and Santa Clara Valley Water District (SCVWD) design Docusign Envelope ID: D23A29AF-406C-4115-A772-B183D5D611CC Item 12
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standards to SCVWD for review and approval. SCVWD approved design must be provided to CPAU WGW Engineering prior to submittal for any building, grading, or street permits (except permits for exploratory potholing).

Design changes to the proposed city water/fire/ irrigation services and/or sewer laterals and/or the onsite water and sewer system and/or off -site/on-site grading may be required based on the in-field, as built conditions of Valley Water infrastructure.

PRIOR TO ISSUANCE OF DEMOLITION PERMIT (if required)

45. The applicant shall submit a request to disconnect utility services and remove meters. The utilities demo to be processed within 10 working days after receipt of request. The demolition permit will be issued by the building inspection division after all utility services and/or meters have been disconnected and removed. The existing water meter boxes and boxes for city clean-outs must be protected in place until the services are disconnected at the mains during the new service installations.

FOR BUILDING PERMIT

46. The applicant shall submit a completed water-gas-wastewater service connection application - load sheet for City of Palo Alto Utilities. The applicant must provide all the information requested for utility service demands (water in fixture units/g.p.m., gas in b.t.u.h, and sewer in fixture units/g.p.d.). The applicant shall provide the existing (prior) loads, the new loads, and the combined/total loads (the new loads plus any existing loads to remain).

47. The applicant shall submit improvement pl ans for utility construction. The plans must show the size and location of all underground utilities within the development and the public right of way including meters, backflow preventers, fire service requirements, sewer mains, sewer cleanouts, sewer li ft stations and any other required utilities. Plans for new wastewater laterals and mains need to include new wastewater pipe profiles showing existing potentially conflicting utilities especially storm drain pipes, electric and communication duct banks.

Existing duct banks need to be daylighted by potholing to the bottom of the ductbank to verify cross section prior to plan approval and starting lateral installation. Plans for new storm drain mains and laterals need to include profiles showing existing pot ential conflicts with sewer, water and gas.

48. The applicant must show on the site plan the existence of any auxiliary water supply, (i.e. water well, gray water, recycled water, rain catchment, water storage tank, etc).

49. The applicant shall be responsible f or installing and upgrading the existing utility mains and/or services, laterals as necessary to handle anticipated peak loads. This responsibility includes all costs associated with the design and construction for the installation/upgrade of the utility mains and/or services/laterals

50. An approved reduced pressure principle assembly (RPPA backflow preventer device) is required for all existing and new water connections from Palo Alto Utilities to comply with Docusign Envelope ID: D23A29AF-406C-4115-A772-B183D5D611CC Item 12
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requirements of California administrative code, title 17, sections 7583 through 7605 inclusive.

The RPPA shall be installed on the owner's property and directly behind the water meter within 5 feet of the property line. RPPA’s for domestic service shall be lead free. Show the location of the RPPA on the plans.

51. An approved reduced pressure detector assembly (RPDA backflow preventer device, STD.

WD-12A or STD. WD -12B) is required for all existing and new fire water connections from Palo Alto Utilities to comply with requirements of California administrative code, title 17, sections 7583 through 7605 inclusive. The RPDA shall be installed on the owner's property and directly behind the City owned meter, within 5’ (feet) of the property line or City Right of Way.

52. All backflow preventer devices s hall be approved by the WGW engineering division.

Inspection by the city inspector is required for the supply pipe between the meter and the assembly.

53. The applicant shall pay the capacity fees and connection fees associated with new utility service/s or added demand on existing services. The approved relocation of services, meters, hydrants, or other facilities will be performed at the cost of the person/entity requesting the relocation.

54. All existing water, gas. and wastewater services/laterals that will not be reused shall be abandoned at the main per the latest WGW utilities standards.

55. Utility vaults, transformers, utility cabinets, concrete bases, or other structures cannot be placed over existing water, gas, or wastewater mains/services. Maintain 1’ horizontal clear separation from the vault/cabinet/concrete base to existing utilities as found in the field. If there is a conflict with existing utilities, Cabinets/vaults/bases shall be relocated from the plan location as needed to meet field conditions. Trees may not be planted within 10 feet of existing water, gas, and wastewater mains/laterals/water services/or meters. New water or wastewater services/laterals/meters may not be installed within 10’ of existing trees unless otherwise approved by wa ste-gas-water utilities and urban forestry . Maintain 10’ between new trees and new water and wastewater services/laterals/meters unless otherwise approved by waste-gas-water utilities and urban forestry.

56. The applicant shall provide to the WGW Utility Engi neering department a copy of the plans for fire system including all fire department's requirements prior to the actual service installation.

57. All utility installations shall be in accordance with the City of Palo Alto utility standards for water, gas, & wastewater.

PUBLIC WORKS ELECTRIC UTILITIES

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58. UTILITY EASEMENT REQUIRED. Prior to energization, a public utility easement is required to provide access to the proposed transformer s. This can either be provided through separate instrument and documented on t he tentative and final map or dedicated through the tentative and final map process.

59. UTILITIES APPLICATION. Changes to existing electric utilities equipment on site, such as the transformer, will require a utilities application. Submit a utilities application and obtain City of Palo Alto Utilities Electrical Engineering approval for the mo difications to the electrical system.

60. UTILITY DISCONNECT. The applicant shall submit a request to disconnect all existing utility services proposed for removal, including a signed affidavit of vacancy, on the form provided by the Building Inspection Divi sion. Utilities will be disconnected or removed within 10 working days after receipt of request. The demolition permit will be issued after all utility services and/or meters have been disconnected and, as applicable, removed.

61. UTILITIES SHOWN ON LANDSCAP E PLANS. All utility meters, lines, transformers, backflow preventers, and any other required equipment shall be shown on the landscape and irrigation plans and shall show that no conflict will occur between the utilities and landscape materials.

In addition, all aboveground equipment shall be screened in a manner that is consistent with the building design and setback requirements.

62. PERMIT. Contractors and developers shall obtain permit from the Department of Public Works before digging in the street righ t-of-way. This includes sidewalks, driveways and planter strips.

63. UNDERGROUND SERVICES ALERT. At least 48 hours prior to starting any excavation, the customer must call Underground Service Alert (USA) at 1 -800-227-2600 to have existing underground utilities located and marked. The areas to be checked for underground faci lity marking shall be delineated with white paint. All USA markings shall be removed by the customer or contractor when construction is complete.

64. CITY STANDARDS. All new underground conduits and substructures shall be installed per City standards and shall be inspected by the Electrical Underground Inspector before backfilling.

PUBLIC WORKS ZERO WASTE

65. REQUIRED DECONSTRUCTION. In conformance with PAMC 5.24, deconstruction and source separation are required for all residential and commercial projects whe re structures (other than a garage or ADU) are being completely removed, demolition is no longer allowed.

Deconstruction takes longer than traditional demolition, it is important to plan ahead. For more information, visit www.cityofpaloalto.org/deconstruction.

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66. SALVAGE SURVEY FOR REUSE. A Salvage Survey is required for deconstruction permit applications. The survey shall be conducted by a City approved reuse vendor. The survey submittal shall incl ude an itemized list of materials that are salvageable for reuse from the project. The applicant shall source separate and deliver materials for reuse. Certification is required indicating that all materials identified in the survey are properly salvaged. Contact The ReUse People to schedule this FREE survey by phone (888) 588 -9490 or e -mail [email protected]. More information can be found at www.TheReusePeople.org.

Please upload a completed copy to the deconstruction permit.

67. SOURCE SEPARATION FOR RE CYCLING. The applicant shall source separate deconstruction materials into specific categories for recycling. Additional staging areas for source separated materials will need to be considered. All materials shall be delivered to one of the City approved materials recovery facilities listed in Green Halo, all records shall be uploaded to www.greenhalosystems.com. For more information, refer to www.cityofpaloalto.org/deconstruction.

PUBLIC WORKS WATER QUALITY

68. Stormwater Best Management Practices (BMPs) associated with refuse management (including actions related to refuse pick -up and the enclosure itself) shall be followed to ensure pollution prevent ion and preventing potential discharges to the City’s storm drain system. Stormwater BMPS include, but are not limited to, power washing the pavement on both the private property and in the right -of-way and sidewalk a minimum of once per year before the wet season begins on October 1st; utilizing a power washing contractor that is a Recognized Surface Cleaner by the Bay Area Stormwater Management Agencies Association (BASMAA); disposing of wash water according to the Recognized Surface Cleaner certification requirements; and removing any potential trash build-up on a regular basis.

PUBLIC WORKS URBAN FORESTRY

69. PLAN SET REQUIREMENTS. The final Plans submitted for building permit shall be revised to reflect the following:

a. Include quantities of each tree species in the planting schedule with a corresponding abbreviation of the species which can be found on the planting plan.

70. MWELO COMPLIANCE. As part of the building permit, provide the proposed square footage of the rehabilitated landscape to determine if the project requires a MWELO compliance review. Please see the document titled “Model Water Efficient Landscape Ordinance (MWELO) Compliance Submittals and Guidelines”
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qualifies for MWELO Review. If a MWELO review is required, please follow the instructions in the above document when submitting your permit application and plan set.

DURING CONSTRUCTION

63. EXCAVATION RESTRICTIONS APPLY (TTM, Sec. 2.20 C & D). Any approved grading, digging or trenching beneath a tree canopy shall be performed using ‘air-spade’ method as a preference, with manual hand shovel as a backup. For utility trenching, including sewer line, roots exposed with diameter of 1.5 inches and greater shall remain intact and not be damaged. If directional boring method is used to tunnel beneath roots, then Table 2-1, Trenching and Tunneling Distance, shall be printed on the final plans to be implemented by Contractor.

64. TREE PROTECTION COMPLIANCE. The owner and contractor shall implement all protection and inspection schedule measures, design recommendations and construction scheduling as stated in the TPR & Sheet T-1, and is subject to code compliance action pursuant to PAMC

8.10.080. The required protective fencing shall remain in place until final landscaping and inspection of the project. Project arborist approval must be obtained and documented in the monthly activity report sent to the City. The mandatory Contractor and Arborist Monthly Tree Activity Report shall be sent monthly to the City ([email protected]) beginning with the initial verification approval, using the template in the Tree Technical Manual, Addendum 11.

65. TREE DAMAGE. Tree Damage, Injury Mitigation and Inspections apply to Contractor.

Reporting, injury mitigation measures and arborist inspection schedule (1-5) apply pursuant to TTM, Section 2.20-2.30. Contractor shall be responsible for the repair or replacement of any publicly owned or protected trees that are damaged during the course of construction, pursuant to Title 8 of the Palo Alto Municipal Code, and city Tree Technical Manual, Section

2.25. 66. GENERAL. The following general tree preservation measures apply to all trees to be retained: No storage of material, topsoil, vehicles or equipment shall be permitted within the tree enclosure area. The ground under and around the tree canopy area shall not be altered. Trees to be retained shall be irrigated, aerated and maintained as necessary to ensure survival.

67. NO NET LOSS OF CANOPY. In order to comply with the city’s no net loss of canopy policy (Urban Forest Master Plan: Goals 6.A, 6.B & 6.C & Comprehensive Plan Natural Environment Chapter: Goal N-2 and others) all trees 4” DBH and larger are subject to replacement to avoid a loss of canopy at the neighborhood level. Replacement ratios are determined by table 3-1 in the Tree Technical Manual (Section 3.20.C). New landscape tree plantings (24” box or larger) count towards the replacement total. Screening trees may also count toward the total depending on size and species selected. If unable to plant the required number of Docusign Envelope ID: D23A29AF-406C-4115-A772-B183D5D611CC Item 12
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trees on site (our preferred solution) there is the option of paying in-lieu fees of $650 per each 24” box tree into the forestry fund.

POST CONSTRUCTION

68. MAINTENANCE. All landscape and trees shall be maintained, watered, fertilized, and pruned according to Best Management Practices-Pruning (ANSI A300-2008 or current version) and the City Tree Technical Manual, Section 5.00. Any vegetation that dies shall be replaced or failed automatic irrigation repaired by the current property owner within 30 days of discovery.

SECTION 8. Conditions of Approval Vesting Tentative Map.

PLANNING

1. PROJECT PLANS. The Vesting Tentative Map submitted for review and approval by the City Council shall be in substantial conformance with the Vesting Tentative Map titled “Vesting Tentative Map for a Two Lot Subdivision ”, prepared by Sandis Engineers and submitted July 1, 2024, except as modified to incorporate the conditions of this approval.

2. FINAL MAP COVER PAGE. At such time as the Final Map is filed, the cover page shall include the name and title of the Director of Planning and Development Services.

6. FINAL MAP EXPIRATION. A Final Map, in conformance with the approved Vesting Tentative Map, all requirements of the Subdivision Ordinance (PAMC Section 21.16), and to the satisfaction of the City of Palo Alto and its representatives, shall be filed with the Planning Division and the Public Works Engineering Division within two years of the Vesting Tentative Map approval date or this approval will expire. A one-year extension may be granted in accordance with the allowances set forth in the municipal code.

7. DEVELOPMENT IMPACT FEES. The Property Owner or their designee shall pay all applicable development impact fees associated with the proposed development and subdivision prior to issuance of the building permit(s), as detailed in the Streamlined Housing Development Review Approval.

8. INDEMNITY. To the extent permitted by law, the Applicant shall indemnify and hold harmless the City, its City Council, its officers, employees and agents (the “indemnified parties”) from and against any claim, action, or proceeding brought by a third party against the indemnified parties and the applicant to attack, set aside or void, any permit or approval authorized hereby for the Project, including (without limitation) reimbursing the City for its actual attorneys’ fees and costs incurred in defense of the litigation. The City may, in its sole discretion, elect to defend any such action with attorneys of its own choice.

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PUBLIC WORKS ENGINEERING

9. PUBLIC WORKS APPLICATIONS, FORMS, AND DOCUMENTS. Applicant shall be advised that most forms, applications, and informational documents related to Public Works Engineering conditions can be found at the following link:
https://www.cityofpaloalto.org/Departments/Public-Works/Engineering-Services/Forms- and-Permits

10. MAP THIRD-PARTY REVIEW. The City contracts with a third-party surveyor that will review and provide approval of the map’s technical correctness as the City Surveyor, as permitted by the Subdivision Map Act. The Public Works Department will forward a Scope & Fee Letter from the third-party surveyor and the applicant will be responsible for payment of the fee’s indicated therein, which is based on the complexity of the map.

11. STREETWORK PERMIT. The applicant shall obtain a Streetwork Permit from the Department of Public Works for all public improvements.

12. GRADING AND EXCAVATION PERMIT. A Grading Permit is required per PAMC Chapter 16.28.

The permit application and all applicable documents (see Section H of application) shall be submitted to Public Works Engineering. Add the following note: “THIS GRADING PERMIT

WILL ONLY AUTHORIZE GENERAL GRADING AND INSTALLATION OF THE STORM DRAIN SYSTEM. OTHER BUILDING AND UTILITY IMPROVEMENTS ARE SHOWN FOR REFERENCE INFORMATION ONLY AND ARE SUBJECT TO SEPARATE BUILDING PERMIT APPROVAL.”

13. GEOTECHNICAL ENGINEER STATEMENT. The grading plans shall include the following statement signed and sealed by the Geotechnical Engineer of Record: “THIS PLAN HAS BEEN

REVIEWED AND FOUND TO BE IN GENERAL CONFORMANCE WITH THE INTENT AND PURPOSE OF THE GEOTECHNICAL REPORT”.

14. SWPPP. If the proposed development will disturb more than one acre of land. The applicant shall apply for coverage under the State Water Resources Control Board’s (SWRCB) NPDES general permit for storm water discharge associated with construction activity. A Notice of Intent (NOI) shall be filed for this project with the SWRCB in order to obtain coverage under the permit. The General Permit requires the applicant to prepare and implement a Storm Water Pollution Prevention Plan (SWPPP). The applicant is required to submit two copies of the NOI and the draft SWPPP to the Public Works Department for review and approval prior to issuance of the building permit. The SWPPP should include both permanent, post- development project design features and temporary measures employed during construction.

15. ENCROACHMENT PERMIT. Prior to any work in the public right-of-way, the applicant shall obtain an encroachment permit from the Public Works Department for any work that encroaches onto the City right-of-way.

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16. LOGISTICS PLAN. A construction logistics plan shall be provided addressing all impacts to the public including, at a minimum: work hours, noticing of affected businesses, bus stop relocations, construction signage, dust control, noise control, storm water pollution prevention, job trailer, contractors’ parking, truck routes, staging, concrete pours, crane lifts, scaffolding, materials storage, pedestrian safety, and traffic control. All truck routes shall conform to the City of Palo Alto’s Trucks and Truck Route Ordinance, Chapter 10.48, and the route map. NOTE: Some items/tasks on the logistics plan may require an encroachment permit.

17. STORMWATER POLLUTION PREVENTION. All improvement plan sets shall include the “Pollution Prevention – It’s Part of the Plan” sheet.

18. C.3 THIRD-PARTY CERTIFICATION. Applicant shall provide certification from a qualified third- party reviewer that the proposed permanent storm water pollution prevention measures comply with the requirements of Provision C.3 and Palo Alto Municipal Code Chapter 16.11.

Submit the following:
a. Stamped and signed C.3 data form (April 2023 version) from SCVURPPP. https://scvurppp.org/wp-content/uploads/2023/04/SCVURPPP-C.3-Data-Form- _-updated__4-12-2023_clean_fillable.pdf
b. Final stamped and signed letter confirming which documents were reviewed and that the project complies with Provision C.3 and PAMC 16.11.

19. C.3 STORMWATER AGREEMENT. The applicant shall enter into a Stormwater Maintenance Agreement with the City to guarantee the ongoing maintenance of the permanent storm water pollution prevention measures. The City will inspect the treatment measures yearly and charge an inspection fee. The agreement shall be executed by the applicant team prior to building permit final.

20. C.3 FINAL THIRD-PARTY CERTIFICATION PRIOR TO OCCUPANCY. Within 45 days of the installation of the required storm water treatment measures and prior to the issuance of an occupancy permit for the building, the third-party reviewer shall submit to the City a certification verifying that all the permanent storm water pollution prevention measures were installed in accordance with the approved plans.

21. IMPERVIOUS SURFACE AREA. The project will be creating or replacing 500 square feet or more of impervious surface. Accordingly, the applicant shall provide calculations of the existing and proposed impervious surface areas with the building permit application. The Impervious Area Worksheet for Land Developments form and instructions are available at the Development Center or on our website. To determine the impervious surface area that is being disturbed, provide the quantity on the site plan.

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easements is permitted.

23. PRIOR TO PUBLIC WORKS FINAL/ACCEPTANCE (STORM DRAIN LOGO). The applicant is required to paint “No Dumping/Flows _________Creek” in blue on a white background adjacent to all onsite storm drain inlets. The name of the creek to which the proposed development drains can be obtained from Public Works Engineering. Stencils of the logo are available from the Public Works Environmental Compliance Division, which may be contacted at (650) 329-2598. Include the instruction to paint the logos on the construction grading and drainage plan.

24. PRIOR TO PUBLIC WORKS FINAL/ACCEPTANCE (RECORD DRAWINGS). At the conclusion of the project applicant shall provide digital as-built/record drawings of all improvements constructed in the public right-of-way or easements in which the City owns an interest.

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SECTION 9. Terms of Approval.

1. Streamlined Housing Development Review. In the event actual construction of the project is not commenced within two years of the date of council approval, the approval shall expire and be of no further force or effect.

2. Vesting Tentative Map. All conditions of approval of the Vesting Tentative Map shall be fulfilled prior to approval of a Final Map (PAMC Section 21.16.010[c]). Unless a Final Map is filed, and all conditions of approval are fulfilled within a two-year period from the date of Vesting Tentative Map approval, the Vesting Tentative Map shall expire and all proceedings shall terminate. An extension of time may be granted by the city council after recommendation of the planning commission, upon the written application of the subdivider, prior to the expiration of the Vesting Tentative Map approval, or any previous extension granted. Such extension(s) shall be subject to the maximum limitations set forth in the Subdivision Map Act.

INTRODUCED: August 5, 2024

PASSED: August 12, 2024

AYES: Burt, Kou, Lauing, Lythcott-Haims, Stone, Tanaka, Veenker

NOES:

ABSENT:

ABSTENTIONS:

ATTEST: APPROVED:

_________________________ ____________________________ City Clerk Mayor

APPROVED AS TO FORM: APPROVED AS TO CONTENT:

___________________________ ___________________________ Assistant City Attorney City Manager

____________________________
Director of Planning and
Development Services
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PLANS AND DRAWINGS REFERENCED:

Those plans prepared by Van Meter Williams Architects titled “Buena Vista Commons 3980 El Camino Real, Palo Alto, CA 94306” consisting of 94 pages, dated and submitted July 19, 2024.

Those plans prepared by Sandis Engineers titled “Vesting Tentative Map for a Two Lot Subdivision” consisting of three pages, dated July 2024 and submitted July 1, 2024.

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Project Plans
The Final Map is available to the public online. Hardcopies of the Final Map have been provided to Councilmembers.

Directions to review project plans and environmental documents online:

1. Go to: bit.ly/PApendingprojects

2. Scroll down to find “3980 El Camino Real” and click the address link

3. On this project specific webpage you will find a link to the project plans and previously approved environmental documents
Direct Link to Project Webpage:
https://www.paloalto.gov/Departments/Planning-Development-Services/Current- Planning/Projects/3980-El-Camino-Real-Buena-Vista
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City Council
Staff Report
From: City Manager
Report Type: ACTION ITEMS
Lead Department: Utilities
Meeting Date: June 8, 2026
Report #:2512-5656
TITLE
PUBLIC HEARING: Adopt a Resolution Adopting the 2025 Urban Water Management Plan and a Resolution Adopting the 2025 Water Shortage Contingency Plan. CEQA Status: Exempt under Water Code Sec. 10652.

RECOMMENDATION
The Utilities Advisory Commission (UAC) and staff recommend the City Council adopt a resolution adopting the 2025 Urban Water Management Plan and a resolution adopting the 2025 Water Shortage Contingency Plan. The UAC recommends that the UAC submit Commissioner Gupta’s May 2, 2026 Companion Memo (Public Comment Letter submitted to the UAC, shown in Attachment C) to the City Council as additional information (passed 4-1-1-1 Croft no, Mauter abstain, Scharff absent).

EXECUTIVE SUMMARY
The Urban Water Management Planning Act (codified in the California Water Code (§10610- 10656 and §10608) requires urban water suppliers to submit an Urban Water Management Plan (UWMP), which includes a Water Shortage Contingency Plan (WSCP), every five years.

UWMPs must include information about water demand, water supply, demand management activities, alternative water supplies, anticipated shortages during dry periods, and contingency plans for addressing those shortages. The actions recommended in this report satisfy a regulatory compliance activity, it can be amended at a later date and adoption is not a sign of endorsement of the assumptions used to complete the required regulation. The 2025 UWMP must be adopted by City Council and submitted to the Department of Water Resources (DWR) to meet the state-required deadline of July 1, 2026.

The City’s demand for water is expected to decrease by about 5% over the next 25 years, inclusive of savings from passive and active conservation. Potable water supply from the City’s supplier, the San Francisco Public Utilities Commission (SFPUC), is projected to be adequate during normal years, but significant shortfalls are expected during droughts.

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Palo Alto, in collaboration with its partners, continues to seek to maximize water conservation to reduce the impact of dry years. When water supply shortages do occur, Palo Alto’s WSCP provides for increasingly stringent steps to reduce water use including public outreach and education, rebate programs, water use restrictions, and water allocations.

BACKGROUND
The Urban Water Management Planning Act (California Water Code, §10610- 10656 and §10608) requires an urban water supplier, providing water for municipal purposes to more than 3,000 customers or serving more than 3,000 acre-feet annually, to adopt an UWMP every five years demonstrating water supply reliability in normal, single dry, and multiple dry water years.

An UWMP must also describe the City’s current water reliability, foreseeable future needs, strategy for meeting those needs, and any challenges. The information collected from UWMPs is useful for local, regional, and statewide water planning. In order for the City, as an urban water supplier, to be eligible for any water grant or loan administered by DWR, the City must have a current UWMP on file that DWR determined addresses the requirements of the California Water Code. A current UWMP must also be maintained by the City throughout the term of any grant or loan administered by DWR. This requirement also applies to the City’s outstanding loans administered by the State Water Resources Control Board (SWRCB). As of fiscal year 2025, the City had $153.8 million in SWRCB loans outstanding, and the City is drawing up to an additional $81.2 million on a reimbursement basis to finance the Secondary Treatment Upgrades project at the Regional Water Quality Control Plant, which is still under construction. There are several other State Revolving Fund loans that the City’s Regional Water Quality Control Plan is currently paying back or will pay back including the Advanced Water Purification System, Solids Dewatering, Ultraviolet Treatment and Recycled Water Pipeline.

On May 6, 2026 the Utilities Advisory Commission (UAC) met and discussed this item1 and made the following recommendations to the City Council: to recommend that the City Council adopt a resolution adopting the 2025 UWMP, a resolution adopting the 2025 WSCP, and an Ordinance Amending Municipal Code Chapter 12.32 (Water Use Regulations) and that the UAC submit Commissioner Gupta’s May 2, 2026 Companion Memo (Public Comment letter submitted to the UAC shown in Attachment C) to the City Council as additional information2 (passed 4-1-1-1 Croft no, Mauter abstain, Scharff absent).3 Staff recommends that the City adopt the UWMP and WSCP concurrently with staff’s proposed amendments to Municipal Code section 12.32.010, Water Use Restrictions (See Staff Report 2512-5653 on Council’s agenda for June 8, 2026). The 2025 UWMP includes a description of the City’s water use restrictions ordinance, and the WSCP identifies response actions to be 1 Agenda item #4: https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=19031 2 On May 5, 2026, Commission Gupta submitted a memo to the UAC, proposing seven in-context edits for inclusion in the City’s 2025 UWMP.
3 Draft Action Minutes of May 6, 2026 Regular Meeting of the Utilities Advisory Commission.

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implemented during a water shortage. These actions include enforcement of the City’s permanent water use restrictions, along with increasingly stringent water-use prohibitions for each shortage level.

ANALYSIS
The key elements of the UWMP and WSCP are summarized below.

1. Water Demand

2. Water Supply Adequacy

3. Water Conservation

4. Alternative Water Supplies

5. Water Supply Reliability

6. Water Shortage Contingency Plans

1. Water Demand
The demand projections in the City’s 2025 UWMP are based on the 2025 Water Demand and Conservation Projections (2025 Demand Study) prepared in coordination with Bay Area Water Supply & Conservation Agency (BAWSCA). BAWSCA’s technical consultant, Hazen and Sawyer, developed individual models for each BAWSCA member agency, utilizing information provided by agencies on projected population, jobs, and housing growth to project water demand through 2050. City staff worked with Hazen and Sawyer to develop and refine the underlying assumptions for Palo Alto’s demand forecasts by using sources such as the City’s Housing Element and the City’s current and planned participation in water conservation programs. More information about the inputs and methodology for the 2025 Demand Study can be found in the 2025 Regional Demand Study Report7.

The City’s baseline demand forecast reflects a 5% total decline in water demand over the 25- year forecast period, inclusive of savings from passive and active conservation. Though the forecast assumes the City meets its Regional Housing Needs Allocation (RHNA) requirement of 6,086 units by 2031, this planned residential growth is assumed to be almost entirely high- density multifamily housing developments with relatively low per-account water use.

Moreover, this growth is offset in part by passive and active water conservation savings and price-elasticity of demand. Figure 1 below shows the City’s potable water use since 1988 and a projection of water supplies through 2050.
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Figure 1: Palo Alto’s Annual Purchases from SFPUC - Actual and Forecast Table 1 shows projected population in Palo Alto based on the population assumptions for the 2025 Demand Study. Consistent with the City’s 2023-2031 Housing Element, the projections use population data from the Association of Bay Area Governments (ABAG) Plan Bay Area 2040 projections, together with the assumption that the City will meet its RHNA targets by 2031.

Under this assumption, all population growth occurs through 2031 as those units are added, and population levels remain flat after 2031.

Table 1: Population - Current and Projected
Water demand and population are described in “Section 4 – Water Demand” and “Section 2 – Service Area” of the UWMP.
2025 2030 2035 2040 2045 2050
Service Area Population 67,231 88,509 91,532 91,532 91,532 91,532 Item 13
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2. Water Supply Adequacy
The City receives 100% of its potable water from the SFPUC through the Regional Water System (RWS). The City also uses some recycled water produced at the Palo Alto-operated Regional Water Quality Control Plant (RWQCP) for irrigation of the municipal golf course, a park, and some other minor applications. A system of local groundwater wells and storage provide emergency water supply service.

The SFPUC has a perpetual commitment (Supply Assurance) to deliver 184 MGD to the 24 permanent Wholesale Customers collectively. Palo Alto’s allocation, or Individual Supply Guarantee, is 16.575 MGD, or approximately 18,579 acre feet per year. In normal years, Palo Alto’s potable water demand is not expected to exceed supply as shown in Table 2.

Table 2: Palo Alto Potable Water Supply and Demand Balance - normal years

3. Water Conservation
The 2025 UWMP highlights the water conservation programs and the important role they play in the City’s water supply planning. The City partners with the Santa Clara Valley Water District (Valley Water) to offer a wide range of water conservation programs to residential and commercial customers. The City pursues innovative technologies and cost-effective programs to implement and best utilize the annual water conservation operating budget. These programs include free outdoor water audits, rebates for upgrading landscapes to drought-tolerant plants, irrigation equipment, and commercial equipment. Water conservation resources available to Palo Alto customers can be found on the City’s website9 and Valley Water’s website10. Water conservation is described in “Section 5 – Demand Management Measures” of the UWMP.

4. Recycled Water and Alternative Water Supplies
The 2025 UWMP is required to describe planned recycled water use and alternative water supply projects. The 2025 UWMP does not identify any recycled water or alternative water supply projects planned by the City. It does include descriptions of regional projects and supply planning projects by the SFPUC and BAWSCA.
9 City Website, Ways to Save https://www.paloalto.gov/Departments/Utilities/Ways-to-Save 10 Valley Water’s Website, Water Savings https://www.valleywater.org/watersavingsorg 2025 2030 2035 2040 2045 2050
Palo Alto Demand for SFPUC Water 10,431 9,783 9,677 9,634 9,635 9,680 Individual Supply Guarantee 18,579 18,579 18,579 18,579 18,579 18,579 Difference 8,148 8,796 8,902 8,945 8,944 8,899
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The City’s 2025 UWMP provides background on its recent efforts to evaluate alternative water supply options. The Northwest County Recycled Water Strategic Plan, completed in collaboration with Valley Water, identified and evaluated a number of potable and non-potable water reuse concept options using effluent from the RWQCP in Palo Alto. The City’s One Water Plan, completed in 2024, is a framework for evaluating water supply and water conservation alternative portfolios that may mitigate the impact of future water supply uncertainties such as severe multi-year drought, changes in climate, water demand, and regulations. The One Water Plan included concept options identified in the Northwest County Recycled Water Strategic Plan. Further project-specific studies and analyses will be required to assess the need for additional supplies or conservation, as well as to evaluate project feasibility, including detailed cost estimates and potential funding sources. This is described in “Section 3 – System Supplies” of the UWMP.

5. Water Supply Reliability
When preparing the 2025 UWMP, staff followed California Water Code and populated the required water supply reliability using information provided by the SFPUC. Since the City relies on the SFPUC RWS for its potable water supplies, the City’s water supply reliability mirrors that of the Wholesale RWS. During a water supply shortage, contractually agreed upon allocation methods apply in limited circumstances13. The amount of water available to San Francisco’s Retail Customers (the residential and commercial customers in the City of San Francisco) and Wholesale Customers (the 26 agencies, including Palo Alto, that purchase water from the SFPUC) will be impacted by the outcome of the Water Quality Control Plan for the San Francisco Bay/Sacramento-San Joaquin Delta Estuary (Bay-Delta Plan Amendment or Bay Delta Plan). This 2025 UWMP assumes implementation of the Bay Delta Plan and associated unimpaired flow requirements for the Tuolumne River. In August 2018, City Council voted to support the Bay Delta Plan14.

Table 3 shows Palo Alto’s 5-year Drought Assessment, the amount of water projected to be available to the City if the next five years are dry. It does not assume implementation of the Bay-Delta Plan Amendment because the start of implementation remains uncertain, and therefore reflects 100% supply for both RWS Wholesale Customers and the City. 13 The Tier 2 Drought Response Implementation Plan, which allocates the collective wholesale customers’ share of available RWS supplies among each of the 26 wholesale customers during dry years, only applies during system- wide shortages of 20% or less. Because the projected wholesale cutbacks range from 31% to 48%, the Tier 2 Plan cannot be applied. Therefore, the 2025 UWMP cutback projections are assumed to apply to each wholesale customer equally.
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Table 3: Projected RWS Supply Available to Palo Alto for 5-year Drought Assessment (AFY) The potable water supply shortfall for Palo Alto for multiple dry years is shown below in Table

4. The Multiple Dry Year projections assume implementation of the Bay Delta Plan in 2030.

Under these conditions, Palo Altans will be asked to reduce water usage by up to 48%.

Table 4: Potable Water Cutbacks in Future Multiple Dry Years See “Section 8 – Supply and Demand Comparison Provisions” in the UWMP for more details.

Climate change was considered as part of SFPUC’s water supply reliability assessment, and as required by Water Code. The City’s 2025 UWMP includes a description of actions the SFPUC has taken to assess the effects of climate change, including its partnership with the Water Research Foundation to develop the Long-Term Vulnerability Assessment (LTVA) of the RWS17. See UWMP “Section 6 – Water Supply Reliability – SFPUC Climate Change Studies”.

The 2025 UWMP also includes descriptions of regional efforts facilitated by BAWSCA to address water supply reliability, including the development of its Long-Term Reliable Water Supply Strategy 2050 (Strategy 2050), a regional assessment of Member Agencies’ water supply needs.

See “Section 6 – Water Supply Reliability – Regional Plans to Ensure a Reliable Water Supply”.

6. Water Shortage Contingency Planning
During the most recent drought, the City was able to reduce water use by 15% in response to voluntary reduction measures and during the 2015 drought the City reduced water use by 31%.

The City’s proposed Water Shortage Contingency Plan (WSCP) includes actions to achieve water use reductions above 40% and above 50%, but the City does not have actual experience in implementing such drastic measures. With each progressive stage, enforcement, rate 17 Long Term Vulnerability Assessment: https://www.sfpuc.gov/about-us/reports/long-term-vulnerability- assessment
2030 2035 2040 2045 2050
First Year 31.1% 33.0% 35.2% 36.8% 38.4%
Second Year 42.2% 42.9% 45.1% 46.8% 48.4%
Third Year 42.2% 42.9% 45.1% 46.8% 48.4%
Fourth Year 42.2% 42.9% 45.1% 46.8% 48.4%
Fifth Year 42.2% 42.9% 45.1% 46.8% 48.4%
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strategies, and water use restrictions will be increased while putting in place mitigation measures to maintain the health of the City’s tree canopy.

Short-term emergency water needs will be met with the City’s groundwater wells and storage system. The system was designed to provide adequate fire protection following a disaster such as a major earthquake. Groundwater may also be available during drought periods although pumping restrictions may be in place, and the City’s wells are currently restricted to 1,500 AFY, 5 consecutive days of pumping, and 15 days of pumping per year.

Table 5: Summary of Proposed Water Shortage Contingency Plan Stage I Stage II Stage III Stage IV Stage V Stage VI
Target Water
Savings Up to 10% 10% -20% 20% -30% 30% - 40% 40%- 50% Above 50% Information
Outreach
and Audit
Program
Low level
outreach
Increase advertising, social media
campaigns and direct communication with
customers targeting highest users and
increasing water use auditing
Escalate
outreach
efforts and
media
campaign
with focus
on water use
prioritization
Highest
outreach
effort level
with focus
on health
and safety
Demand-Side
Management
Programs
Continuation
of existing
programs,
evaluation of
new programs
Augment programs and incentive levels as necessary to achieve reduction targets
Rate
Structures
Standard
rates already
encourage
conservation
Drought rate
structures may be
implemented to
secure needed
revenue
Water allocations or allotments may be
implemented
Water Use
Restrictions
Water use restrictions become more severe with each stage and enforcement is enacted more strongly with each stage. With each stage, efforts made to ensure tree canopy is protected as much as possible.

Recycled
Water Use
Business as
usual use
Water use restrictions require use of recycled water for specific purposes, advertise availability of recycled water for trucked delivery, use recycled water for City facilities and street trees as much as possible.

See “Section 7 – Water Shortage Contingency Plan” of the UWMP plan.

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Changes to the Draft 2025 UWMP since the May 6, 2026 UAC Meeting Since the May 6, 2026 UAC Meeting, Staff has made several formatting edits and minor revisions to the DRAFT 2025 UWMP, which include:
Revision to Table 2: Coordination with Appropriate Agencies to reflect that the Draft 2025 UWMP was sent to other agencies.
Update to the plan’s description of the City’s Green Building Ordinance. Revision to Table 21: WSCP Summary to reflect that implementation of progressive water restrictions begins in Stage 1 of a water shortage, rather than Stage 2 as reflected in Table 21 of the May 2026 UAC version.

FISCAL/RESOURCE IMPACT
Adoption of the 2025 UWMP and WSCP do not have an associated resource impact. Actions to execute this plan will require allocation of resources, especially should implementation of contingency planning be necessary.

STAKEHOLDER ENGAGEMENT
On March 31, 2026, staff presented key updates on the 2025 UWMP at the UAC meeting.

During public comment, a speaker recommended that the City of Palo Alto use alternative water supply reliability projections rather than those provided by its supplier. In response, Commissioners asked whether that would be possible and about the significance of those projections in the UWMP. The City is required to use information provided by the SFPUC, though alternative projections could potentially be explored in the future if first vetted by staff and brought to SFPUC for consideration. Staff noted that such work would need to be presented in a separate document, could not be completed within the UWMP timeline, and would require additional funding and likely consultant support. Commissioners discussed whether the City should hire a consultant or rely on staff and existing resources to evaluate alternatives to SFPUC’s design drought. Two Commissioners asked staff to consider the SFPUC Long-Term Vulnerability Assessment and Adaptation Plan and explain its relevance to the UWMP, and one Commissioner supported approaching SFPUC with alternative projections.

Commissioners also discussed several other issues related to the UWMP. Two Commissioners stated that the City’s demand forecast appears reasonable, while others asked why some agencies project increased demand and how factors such as temperature, snowmelt, and other assumptions are incorporated into forecasts. One Commissioner suggested revising the UWMP language to reflect the City’s view of SFPUC’s water supply reliability projections and design drought, while another noted that the staff report did not mention the City Council’s support Item 13
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for the Bay Delta Plan19. A Commissioner also noted that UWMPs should be viewed not only as a regulatory requirement but also as an opportunity to improve processes and methodologies each cycle and to support regional coordination.

On May 6, 2026, staff recommended that the Utilities Advisory Commission (UAC) recommend that the City Council adopt resolutions approving the 2025 Urban Water Management Plan (UWMP) and the 2025 Water Shortage Contingency Plan, and adopt an ordinance amending Chapter 12.32 of the Municipal Code (Water Use Regulations). Public comments raised concerns regarding the SFPUC’s water supply reliability analysis, inflated demand projections for the Regional Water System, and ratepayer affordability. Commissioners asked several clarifying questions. One commissioner asked whether the projected dry-year cutbacks were based on the City’s Individual Supply Guarantee (ISG). Staff explained that ISGs do not apply during water shortage conditions and that projected dry-year cutbacks are measured relative to projected demand. One commissioner expressed an interest in moving some of the water shortage response actions - such as requiring operators of hotels and motels to provide guests with the option of choosing not to have towels and linens laundered daily - to earlier water shortage stages in the WSCP.

One commissioner requested additional information from the SFPUC regarding its design drought and water supply reliability analysis. Specifically, the commissioner requested information on estimated water storage levels for each year of the design drought and whether the analysis prepared by the Yosemite Rivers Alliance, referenced in public comment letters, was accurate. Staff responded that it would work through BAWSCA and the City’s BAWSCA representative, Vice Mayor Stone, to request information from the SFPUC. A commissioner also asked whether the City’s 2025 UWMP would still meet state requirements if it included the language proposed in Commissioner Gupta’s memo (Attachment C). Staff explained that the UWMP would still contain all required components but that the proposed language should first be reviewed and vetted by staff. Commissioners also noted shared concerns regarding the SFPUC and BAWSCA and asked whether there is another mechanism, separate from the UWMP, to communicate those concerns effectively. Staff recommended working with the City’s BAWSCA Representative Vice Mayor Stone to build on collaborative relationships through BAWSCA. One commissioner suggested forming an ad hoc committee to address the UAC’s concerns regarding the SFPUC and its design drought analysis and to explore options for coordination, including working with Vice Mayor Stone. The Chair recommended adding this topic to the UAC’s annual work plan.

Chair Mauter moved the staff recommendation and Commissioner Gupta moved a substitute motion recommending that the UAC direct staff to incorporate, prior to transmittal of the 2025 UWMP to the City Council, the seven context-specific edits set forth in Commissioner Gupta’s 19 See Section 1, page 12 of the 2025 Urban Water Management Plan https://www.paloalto.gov/files/assets/public/v/1/agendas-minutes-reports/agendas-minutes/city-council- agendas-minutes/2026/june/draft-city-of-palo-alto-urban-water-management-plan.pdf Item 13
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companion memo (see Attachment C). The substitute motion failed on a 2-4-1 vote (Phillips, Croft, Mauter, Metz no, Scharff absent. One commissioner stated that they did not agree with each of the edits in the memo and that the UAC would need to discuss each proposed edit.

Another commissioner noted that UWMP is a regulatory requirement and so it is not the appropriate place to address the UAC’s concerns. Another commissioner asked what document could be more important than the UWMP with respect to water supply and stated that they could not support the UWMP as recommended by staff. Commissioner Gupta then moved a substitute motion recommending that the City Council adopt the proposed resolutions and ordinance, and that the UAC submit Commissioner Gupta’s May 2, 2026 Companion Memo (Public Comment Letter submitted to the UAC) to the City Council as additional information.

Commissioner Gupta said that he believes the memo reflects the UAC’s discussion and commentary on the topic and that it provides City Council with options for consideration. That motion passed on a 4-1-1-1 vote (Croft no, Mauter abstain, Scharff absent). The Chair clarified that under the motion the memo is not from the UAC to City Council but rather a memo from Commissioner Gupta to City Council for their consideration. The UAC appointed Commission Gupta to represent the views of the UAC at the June 8, 2026 City Council meeting.

ENVIRONMENTAL REVIEW
Council’s adoption of the 2025 Urban Water Management Plan and the 2025 Water Shortage Contingency Plan is not subject to the California Environmental Quality Act (CEQA) under Water Code Section 10652, and no environmental assessment is necessary.

ATTACHMENTS/LINKS
LINK: Draft 2025 Urban Water Management Plan and 2025 Water Shortage Contingency Plan21 Attachment A: Resolution Adopting the 2025 Urban Water Management Plan Attachment B: Resolution Adopting the 2025 Water Shortage Contingency Plan Attachment C: Commissioner Gupta’s Proposed Edits to the Palo Alto UWMP APPROVED BY:

Alan Kurotori, Director of Utilities
Staff: Adriana Artola, Senior Resources Planner
21 Draft 2025 Urban Water Management Plan and 2025 Water Shortage Contingency Plan https://www.paloalto.gov/files/assets/public/v/1/agendas-minutes-reports/agendas-minutes/city-council- agendas-minutes/2026/june/draft-city-of-palo-alto-urban-water-management-plan.pdf Item 13
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*NOT YET APPROVED*
1 6055503
Resolution No. XXXX
Resolution of the Council of the City of Palo Alto Adopting the 2025 Urban Water Management Plan to be Submitted to the California Department of Water Resources

R E C I T A L S
A. The California Legislature has enacted the Urban Water Management Planning Act, California Water Code Sections 10610 -10656 and 10608, as amended, which requires every urban water supplier providing water to more than 3,000 customers or supplying more than 3,000 acre -feet of water annually to prepare an urban water management plan ("Plan") that has as its primary objective the conservation and efficient use of water.

B. The City of Palo Alto ("City"), a municipal utility and chartered city, is an urban water supplier providing water to a population over 60,000.

C. The Plan must be reviewed at least once every five years by the City, which must amend the Plan, as necessary, after it has conducted a review.

D. The preparation of the updated Plan has been coordinated with other public agencies to the extent practicable, and staff has encouraged the active involvement of diverse social, cultural and economic sectors of the population within the City's retail water service area during preparation of the Plan.

E. The Plan must be adopted by July 1, 2026, after it is first made available for public inspection and a public hearing is noticed and held, and it must be filed with the California Department of Water Resources within thirty days of adoption.

F. After reviewing a draft Plan at their May 6, 2026 meeting, the Utilities Advisory Commission recommended that the Council adopt the Plan as presented; and G. A noticed public hearing on the draft Plan was held by the City Council on June 8, 2026, at which time public comments were heard and considered.

NOW, THEREFORE, the Council of the City of Palo Alto RESOLVES as follows:

SECTION 1. The Council hereby adopts the 2025 Urban Water Management Plan of the City of Palo Alto, which shall be filed with the City Clerk. The City Manager is hereby authorized and directed to file the 2025 Urban Water Management Plan of the City of Palo Alto with the California Department of Water Resources and the State Library. //
//
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Attachment A - Resolution
Adopting the 2025 Urban
Water Management Plan

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2 6055503
//
SECTION 2. The Council finds and determines that, under the California Water Code Section 10652, the adoption of the Plan and the WSCP and this resolution does not constitute a project under the California Environmental Quality Act, and no environmental assessment is required.

INTRODUCED AND PASSED: June X, 2026
AYES:

NOES:

ABSENT:

ABSTENTIONS:

ATTEST:

City Clerk
APPROVED AS TO FORM:

Mayor
APPROVED:

City Attorney or designee City Manager
Director of Utilities
Director of Administrative Services
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Water Management Plan

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1 6055504
Resolution No. XXXX
Resolution of the Council of the City of Palo Alto Adopting the 2025 Water Shortage Contingency Plan Included in the Urban Water Management Plan to be Submitted to the California Department of Water Resources

R E C I T A L S
A. The California Legislature has enacted the Urban Water Management Planning Act, California Water Code Sections 10610 -10656 and 10608, as amended, which requires every urban water supplier providing water to more than 3,000 customers or supplying more than 3,000 acre -feet of water annually to prepare an urban water management plan ("UWMP") that has as its primary objective the conservation and efficient use of water.

B. The California Water Code requires urban water suppliers to prepare a Water Shortage Contingency Plan (WSCP) to be included in its UWMP.

C. The WSCP must be adopted, along with the UWMP, by July 1, 2026, after it is first made available for public inspection and a public hearing is noticed and held, and it must be filed with the California Department of Water Resources within thirty days of adoption.

D. After reviewing a draft WSCP, which is included in the UWMP, at their May 6, 2026 meeting, the Utilities Advisory Commission recommended that the Council adopt the WSCP as presented; and
E. A noticed public hearing on the WSCP, included in the UWMP, was held by the City Council on June 8, 2026, at which time public comments were heard and considered.

NOW, THEREFORE, the Council of the City of Palo Alto RESOLVES as follows:

SECTION 1. The Council hereby adopts the 2025 Water Shortage Contingency Plan of the City of Palo Alto, included in its UWMP, which shall be filed with the City Clerk. The City Manager is hereby authorized and directed to file the 2025 Water Shortage Contingency Plan of the City of Palo Alto, included in the UWMP, with the California Department of Water Resources and the State Library.
//
//
//
//
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Attachment B - Resolution
Adopting the 2025 Water
Shortage Contingency Plan

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*NOT YET APPROVED*
2 6055504
SECTION 2. The Council finds and determines that, under the California Water Code Section 10652, the adoption of the Plan and the WSCP and this resolution does not constitute a project under the California Environmental Quality Act, and no environmental assessment is required.

INTRODUCED AND PASSED: June X, 2026
AYES:

NOES:

ABSENT:

ABSTENTIONS:

ATTEST:

City Clerk
APPROVED AS TO FORM:

Mayor
APPROVED:

City Attorney or designee City Manager
Director of Utilities
Director of Administrative Services
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Adopting the 2025 Water
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Proposed Edits to the Palo Alto UWMP
Based on the YRA letter of April 30, 2026
Prepared for: Palo Alto Utilities Advisory Commission · Meeting of May 6, 2026 · Item 4 Utsav Gupta, Commissioner
How to read this document
Each section below reproduces the actual draft 2025 UWMP language verbatim and shows proposed edits inline. Color and formatting are used as follows:

Marker Meaning
black, plain Existing UWMP draft text — unchanged.
blue, bold Proposed insertion (added language).
red, strikethrough Proposed deletion (removed language).

Scope and posture. This memo does not propose replacing SFPUC's water-supply reliability numbers with non-SFPUC numbers. Staff has stated that the City is required to use SFPUC's information in the UWMP itself (May 6 Item 4 staff report, p. 9). The edits below instead (i) clarify the provenance of those numbers (they are SFPUC modeling outputs, not Palo Alto-adopted planning standards), (ii) add a transparent sensitivity using SFPUC's own Finance Bureau projections, (iii) disclose the SFPUC's end-of-year storage levels under its Design Drought, (iv) add a 2021–2023 Water Shortage Emergency lookback to the financial-impact discussion, (v) record Palo Alto's reservation of contractual rights regarding >20% allocations, and (vi) note Palo Alto's potential cost exposure under the AWS Program. All proposed insertions are additive; no SFPUC figure is removed.
────────────────────────────────────────────────────────────────────────────────────────── Edit 1 — Section 1, Lay Description (p. 12)
Subject: framing the 48% rationing figure as an SFPUC scenario, not a Palo Alto-adopted standard.

Existing draft text (verbatim, UWMP p. 12):

Given the City's forecasted water demand and projections of water supply availability provided by the SFPUC, the City anticipates the need to implement water use reductions of up to 48% in consecutive dry year scenarios post implementation of the Bay Delta Plan Amendment. During the drought that occurred in 2012– 2016 (2015 drought), the City was able to reduce water use by 31% by restricting landscape irrigation to two times per week as well as a number of other measures. This was followed by the drought that occurred in 2020–2023 (2021 drought) during which the City reduced water use by 15% in response to voluntary water reductions measures.

Proposed revision (edits shown inline):

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Commissioner Gupta’s
Proposed Edits to the Palo
Alto UWMP

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Given the City's forecasted water demand and projections of water supply availability provided by the SFPUC, the City anticipates the need to implement water use reductions of up to 48% in consecutive dry year scenarios post implementation of the Bay Delta Plan Amendment. , as projected by the SFPUC under its 8.5- year Design Drought planning model. The Design Drought is a hypothetical drought sequence developed by the SFPUC for system-modeling purposes; the SFPUC's own Long-Term Vulnerability Assessment, which incorporated 100 years of observed data, 1,100 years of tree-ring reconstructions, and 25,000 simulated runs, did not produce a drought of equivalent severity. Other large California water agencies, including Valley Water and EBMUD, plan against the drought of record (1987–1992); under that planning standard the City would not anticipate mandatory rationing in a five consecutive dry-year sequence. Staff presents the SFPUC figure for regulatory completeness and the comparative context for transparency. During the drought that occurred in 2012–2016 (2015 drought), the City was able to reduce water use by 31% by restricting landscape irrigation to two times per week as well as a number of other measures. This was followed by the drought that occurred in 2020–2023 (2021 drought) during which the City reduced water use by 15% in response to voluntary water reductions measures.

Editor's note — The current paragraph presents "up to 48%" as a single planning figure without telling the reader that it derives from one SFPUC modeling scenario (the Design Drought). Staff itself has noted (Item 4 staff report, p. 6, fn. 7) that the projected 31–48% wholesale cutbacks exceed the 20% threshold under which the Tier 2 Drought Response Implementation Plan applies, so the Tier 2 Plan cannot govern allocation in the scenario the UWMP describes. Adding the proposed sentence keeps SFPUC's number in place while making clear it is one scenario among several. This also responds to the Commissioner request, recorded on p. 9 of the staff report, to alter the UWMP language to indicate the City's view of SFPUC's reliability projections and Design Drought. ────────────────────────────────────────────────────────────────────────────────────────── Edit 2 — Section 6, Table 20 (p. 93)
Subject: add a Finance Bureau sensitivity row beneath the Water Enterprise (UWMP) projections.

Existing draft text and table (verbatim, UWMP pp. 92–93):

Table 19 shows the availability of RWS supplies for the SFPUC's retail Customers and wholesale customers in normal years. Table 20 shows the current and projected RWS supply needs to meet retail and wholesale customer demands based on information and projections presented in the SFPUC's 2025 UWMP.

Table 20 (existing, unchanged in the proposal):

RWS Supply
Allocation
2030 2035 2040 2045 2050
Retail
Customers
(a)(b)

62.7 61.2 61.9 64.0 66.7
Wholesale
Customers
(c)(d)
133.92 136.32 140.53 144.12 148.36
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Total RWS
Supplies
196.62 197.52 202.43 208.12 215.10
Proposed addition: insert the following sensitivity table immediately after Table 20, with new note (e):

Sensitivity
(proposed
addition)
2030 2035 2040 2045 2050
Total RWS —
SFPUC Finance
Bureau (e)
— 182.1 185.2 190.2 193.9
Total RWS —
Water
Enterprise
(Table 20)
196.62 197.52 202.43 208.12 215.10
Difference
(mgd)
— 15.4 17.2 17.9 21.2
(e) The SFPUC publishes two sets of RWS demand/sales projections: the Water Enterprise projections, presented in the SFPUC's UWMP and reproduced in Table 20 above; and the Finance Bureau projections, prepared annually for budgeting and rate-setting and published in the SFPUC Water Enterprise Financial Plan.

The SFPUC has stated that the Water Enterprise projections "represent an outside bound of whatever demand will occur" and "will likely always be greater than actual demands," while the Finance Bureau projections are "as close to actual as we can make them." Both are presented above so that the UWMP records both the SFPUC's regulatory-planning view (Water Enterprise) and its budgetary view (Finance Bureau), reflecting the ~21 mgd gap at the 2050 planning horizon.

Editor's note — Adding a Finance Bureau row beneath Table 20 does not replace SFPUC's regulatory numbers; it discloses a second SFPUC-published number set that the SFPUC itself uses for budgeting. Both are SFPUC products, addressing staff's stated concern that the UWMP must rely on SFPUC information. A 21.2 mgd gap at 2050 is material to any downstream investment decision (AWS cost-share, rate setting, conservation budgets), and recording it in the UWMP itself prevents staff and Council from being asked to reconcile the two figures only later, in a separate document. ────────────────────────────────────────────────────────────────────────────────────────── Edit 3 — Section 6, Alternative Water Supply Program (p. 76) Subject: quantify Palo Alto's potential cost exposure and condition the City's support.

Existing draft text (verbatim, UWMP p. 76, abridged at "…"):

In 2019, the SFPUC established the Alternative Water Supply (AWS) Program to identify and plan water supply and storage projects and actions that increase the dry-year reliability of the RWS. Based on the 2045 planning horizon that the SFPUC applied in its February 2024 AWS Plan, the SFPUC anticipates a water supply gap will occur in future dry years. … Since the development of that plan, three projects have been deferred (Daly City Recycled Water Expansion, Alameda County Water District-Union Sanitary District Purified Water, Item 13
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and Calaveras Reservoir Expansion) and one project has been canceled (Los Vaqueros Reservoir Expansion).

The AWS Program is continuing to pursue the following two projects: PureWater Peninsula and South Bay Purified Water.

Proposed addition: append the following paragraph to the AWS Program subsection.

Cost exposure to Palo Alto and conditional position. PureWater Peninsula is currently budgeted at $747 million for 6 mgd of yield (SFPUC Water Enterprise FY 2027–2036 Ten-Year CIP, January 13, 2026, p. 94).

Assuming a two-thirds BAWSCA cost share and Palo Alto's allocation share within BAWSCA of approximately 7%, Palo Alto's potential capital exposure is on the order of $35 million, plus operating costs. The City supports continued AWS planning, but conditions any cost-share commitment on the SFPUC and BAWSCA demonstrating a supply gap that persists under (i) Finance-Bureau-class demand projections (see Table 20 sensitivity, page 93) and (ii) a drought-of-record (1987–1992) planning methodology comparable to that used by Valley Water and EBMUD. The City notes that, since the February 2024 AWS Plan, three of six identified regional projects have been deferred and one has been canceled, indicating that the underlying supply-gap analysis remains unsettled.

Editor's note — The current paragraph names the AWS projects but does not quantify what those projects could cost Palo Alto. Three of six projects deferred and one canceled within ~24 months is itself evidence that the supply-gap analysis is volatile. Recording Palo Alto's evaluative criteria in the UWMP — rather than only in correspondence — gives staff a principled basis on which to engage future BAWSCA cost-share votes. ────────────────────────────────────────────────────────────────────────────────────────── Edit 4 — Section 7, WSCP Financial Impacts (pp. 97 and 111) Subject: add a 2021–2023 Water Shortage Emergency lookback to the financial-impact discussion.

Existing draft text — UWMP p. 97 (Palo Alto's Drought Experience):

During the 2021 drought, City water use declined by 15% in response to SFPUC's system-wide voluntary water reduction measure.

Existing draft text — UWMP pp. 111–112 (Revenue Reductions):

As a retail provider, the City's fixed costs primarily relate to the cost of operating and maintaining the City's distribution system. Due to the City's volumetric rate structure, decline in sales revenue will exceed the decline in expenses. For each stage in the WSCP and assuming 2025 rate schedules, the revenue shortfall, net of the decline in expenses and based on FY 2025 costs and revenues, is calculated to be:

Stage 1: Up to 10% target water savings results in $1.8 million shortfall Stage 2: 10% – 20% target water savings results in $3.5 million shortfall Stage 3: 20% – 30% target water savings results in $5.3 million shortfall Item 13
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Stage 4: 30% – 40% target water savings results in $7.0 million shortfall Stage 5: 40% – 50% target water savings results in $8.8 million shortfall Stage 6: Greater than 50% target water savings results in greater than $8.8 million shortfall Proposed addition: insert the following "Lookback" paragraph at the end of the Revenue Reductions subsection (after the stage list, before "Mitigation Actions"):

Lookback — Financial Consequences of the 2021–2023 Water Shortage Emergency. In November 2021, the SFPUC declared a Water Shortage Emergency and called for system-wide voluntary water-use reductions.

At the time of the declaration, SFPUC system storage was at approximately 4.5 years of supply; storage never fell below approximately 4 years of supply during the entire 2020–2023 drought. The City's response — the 15% voluntary reduction described on p. 97 — produced an estimated $2.5 million revenue shortfall for the City and contributed to a long-term ~10% per-account reduction in water use that persisted through FY 2025 (see p. 53). The SFPUC itself experienced an FY 2023–24 revenue shortfall of approximately $25 million in retail sales and $5 million in wholesale sales after declining to lift the drought surcharge until May 2023, despite SFPUC system storage reaching 92% of capacity by mid-January 2023.

Going forward, the City should weigh these revenue and rate-stability consequences when responding to future voluntary or mandatory conservation calls and should request from the SFPUC the supply-storage data underlying any future Water Shortage Emergency declaration before the City implements corresponding WSCP stages.

Editor's note — The current paragraph quantifies revenue shortfalls per WSCP stage but provides no historical context on whether the conditions that triggered prior shortages were warranted. The 2021–23 episode is the most relevant, recent case study and is directly responsive to the Water Code §10632(a)(8)(A) requirement to describe potential revenue reductions associated with shortage response actions. The lookback is factual, sourced to SFPUC's own drought- conditions updates and budget reports, and it provides Council and staff a basis for setting more deliberate triggers for future WSCP activations.
────────────────────────────────────────────────────────────────────────────────────────── Edit 5 — Section 8, Dry Year Scenarios (p. 116)
Subject: add a one-sentence reservation of rights regarding >20% allocations.

Existing draft text (verbatim, UWMP p. 116):

For water shortages up to 20%, the Tier One water shortage plan will be applied. The Tier One plan does not apply to system-wide shortages greater than 20%. Implementing water use reduction greater than 20% requires the SFPUC to meet and discuss with Wholesale Customers a strategy for meeting incremental reductions above the Tier One plan. The SFPUC has the authority to make final allocation decision for the portion above 20%, though the Wholesale Customers have the contractual right to challenge the proposed approach. This analysis assumes the relative split of available water between SFPUC Retail and Wholesale Customers will be the same for shortages greater than 20% as shortages of 20%.

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Proposed revision (edits shown inline):

For water shortages up to 20%, the Tier One water shortage plan will be applied. The Tier One plan does not apply to system-wide shortages greater than 20%. Implementing water use reduction greater than 20% requires the SFPUC to meet and discuss with Wholesale Customers a strategy for meeting incremental reductions above the Tier One plan. The SFPUC has the authority to make final allocation decision for the portion above 20%, though the Wholesale Customers have the contractual right to challenge the proposed approach. The Tier 2 Drought Response Implementation Plan, which allocates the wholesale share during dry years, applies only to system-wide shortages of 20% or less; because the projected wholesale cutbacks in this UWMP range from 31% to 48%, the Tier 2 Plan cannot be applied. The City will exercise its contractual right to challenge any proposed allocation greater than 20% that is not supported by reservoir- storage and supply-availability data at the time the allocation is contemplated, and reserves all rights and remedies available under the Water Supply Agreement, Section 3.11(c)(3). This analysis assumes the relative split of available water between SFPUC Retail and Wholesale Customers will be the same for shortages greater than 20% as shortages of 20%.

Editor's note — The Tier 2 acknowledgment is staff's own (Item 4 staff report p. 6, fn. 7); putting it in the UWMP body, rather than only in the staff report, makes the limitation visible to Council and to ratepayers. The reservation-of-rights sentence does not reject SFPUC's analysis; it records that any future >20% allocation will be evaluated against then- current physical supply, consistent with the WSA contractual right that the existing paragraph already references. This is the textual change a Commissioner suggested at the March 31, 2026 UAC meeting (per staff report, p. 9). ────────────────────────────────────────────────────────────────────────────────────────── Edit 6 — New Appendix: SFPUC End-of-Year Storage Under the Design Drought Subject: add an appendix table so readers can see SFPUC system storage at the end of each Design Drought year.

There is no existing UWMP text to replace; this is a proposed new appendix entry, to be referenced from p. 92 (where the UWMP describes the Design Drought as an 8.5-year sequence) and from p. 116 (where the multiple-dry-year cutbacks are presented).

Proposed appendix entry (full text shown as insertion):

Appendix [X]: SFPUC System Storage Under the Design Drought. The table below presents SFPUC end-of- year system storage under the SFPUC's 8.5-year Design Drought sequence, assuming the Bay Delta Plan is in effect and using SFPUC 2050 demand projections. The table is included for transparency: it shows that, even under the SFPUC's own most-severe planning scenario, system storage remains above 600 thousand acre-feet (TAF) at the end of year 5 and does not approach the RWS "dead pool" of approximately 96.8 TAF until the end of year 8. The cutback percentages presented in Table 27 (UWMP p. 117) are therefore a function of SFPUC storage-management rules under the Design Drought model, not a function of physical absence of water in the system.

Proposed Appendix Table:

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Design
Drought
Year
86–87 87–88 88–89 89–90 90–91 91–92 92–76 76–77
Annual
storage
impact
(TAF)
-469 -263 +41 -206 -14 -159 -208 -192
Total
SFPUC
end-of-
year
storage
(TAF)
1,048 785 826 620 606 447 239 47
Source: derived from data provided by the SFPUC; presentation by Yosemite Rivers Alliance, Table YRA-1.

Editor's note — The current UWMP describes the Design Drought as an 8.5-year sequence (p. 92) and presents the resulting cutback percentages (Table 27, p. 117), but does not show the intermediate storage values. Disclosing the storage trajectory in an appendix lets Council and ratepayers see that physical supply is not exhausted until very late in the modeled sequence — a fact that is material to evaluating the >20% rationing scenario discussed in Edit 5. ────────────────────────────────────────────────────────────────────────────────────────── Edit 7 — Section 6, Climate Change / SFPUC Climate Studies (pp. 78–80) Subject: respond to Commissioner request for an LTVA-applicability discussion in the UWMP.

The May 6 Item 4 staff report (p. 9) records that two Commissioners requested staff "take into consideration the Long- Term Vulnerability Assessment (LTVA) and Adaptation Plan for the SFPUC and be prepared to explain how this work applies to the UWMP." The current UWMP refers to the LTVA but does not explain its relationship to the Design Drought figures used elsewhere in the document. Recommended addition:

Proposed insertion in the SFPUC Climate Change Studies subsection (Section 6):

Relationship of the LTVA to the Design Drought used in this UWMP. The SFPUC's Long-Term Vulnerability Assessment, completed in partnership with the Water Research Foundation, evaluated regional water- supply reliability using 100 years of observed hydrologic data, 1,100 years of tree-ring–based reconstructions, and approximately 25,000 simulated stochastic model runs. None of the stochastic runs produced a drought sequence as severe as the SFPUC's Design Drought (described on p. 92). The Design Drought, rather than the LTVA's stochastic ensemble, is the planning input for the multiple-dry-year cutback percentages presented in Table 27 (p. 117) and for the SFPUC's Alternative Water Supply Program.

This UWMP presents the SFPUC-derived Design Drought figures for regulatory completeness; the LTVA is included to give Council and ratepayers a fuller picture of the range of plausible future hydrologic conditions.

Editor's note — This edit responds directly to the Commissioner request recorded on p. 9 of the staff report. It does not modify any SFPUC figure; it explains the relationship between two SFPUC products (the LTVA and the Design Drought) so that the UWMP itself answers the question Commissioners raised at the March 31 meeting.

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────────────────────────────────────────────────────────────────────────────────────────── Suggested UAC Motion
"The Utilities Advisory Commission recommends that staff incorporate, prior to City Council transmittal of the 2025 Urban Water Management Plan, the seven in-context edits set out in the May 2, 2026 companion memo: (1) the Section 1 framing edit at p. 12; (2) the Table 20 Finance Bureau sensitivity at p. 93 with new note (e); (3) the AWS Program cost-exposure and conditional-support paragraph at p. 76; (4) the 2021–2023 Water Shortage Emergency lookback at pp. 97 and 111; (5) the >20% allocation reservation-of-rights at p. 116; (6) a new appendix presenting SFPUC end-of-year system storage under the Design Drought; and (7) an LTVA-applicability paragraph in Section 6. None of these edits alters or replaces an SFPUC-provided number; all are additive and use only SFPUC-published or publicly-sourced data." Sources
• Item 4 Staff Report, UAC packet, May 6, 2026, including Attachment A (Draft 2025 Palo Alto UWMP). • Yosemite Rivers Alliance letter to PAUAC dated April 30, 2026, with Attachments A–D. • SFPUC Water Enterprise Financial Plan Dashboard (Projected Wholesale Sales FYE 2036–2050). • SFPUC Water Enterprise FY 2027–2036 Ten-Year CIP, January 13, 2026, p. 94 (PureWater Peninsula). • SFPUC Drought Conditions Updates, December 2021 – January 2023; SFPUC FY 2023-24 4th Quarter Budget Report. • SFPUC Long-Term Vulnerability Assessment.

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City Council
Staff Report
From: City Manager
Report Type: ACTION ITEMS
Lead Department: Community Services
Meeting Date: June 8, 2026
Report #:2603-6081
TITLE
Adopt an Ordinance and Resolution Calling an Election and Placing a ½ Cent (0.5%) Transactions and Use Tax Measure on the November 3, 2026 Ballot; and a Resolution Adopting Advisory Spending Guidelines for the Use of the Proceeds if the Measure Passes to Support Improving the Cubberley Community Center; CEQA Status - Not a Project.

RECOMMENDATION

1. As directed by the City Council on May 18, 2026, staff recommend the City Council adopt an ordinance and a companion resolution to place a ½ cent (0.5%) transactions and use tax measure on the November 3, 2026 ballot (Attachments A and B). The ordinance designates the members of the Cubberley Ad Hoc Committee (Councilmembers Burt, Lythcott-Haims, and Reckdahl) to author the argument in support of the measure. (2/3 vote required).

2. The Cubberley Ad Hoc Committee recommends the City Council adopt a resolution approving advisory spending guidelines in support of improving the Cubberley Community Center if the measure passes. (Attachment C, to be published in late packet on June 4, 2026).

EXECUTIVE SUMMARY
As directed by the City Council, the attached ordinance formally places a 0.5% transactions and use tax (commonly known as a sales tax) measure on the November 3, 2026 ballot. State law requires a 2/3 vote by the City Council to place this measure on the ballot and a simple majority of voters to pass in November.1 The ordinance sets the exact language of the ballot question and designates City Council members to author the argument in support of the measure. If passed, the revenue from the tax will go to the City’s general fund to be appropriated. A 1 Revenue and Taxation Code section 7285.9.

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companion resolution makes required requests for the election to be consolidated with the statewide election and to request the County’s services to conduct the election.3 Within the state cap, the City has capacity for a ¼ cent (0.25%) voter approved local sales tax; staff is working on legislation that would increase the local sales tax cap by a ½ cent.

In addition, the Cubberley Ad Hoc Committee recommends the adoption of a resolution approving advisory spending guidelines in support of improving Cubberley Community Center with the new revenue if the measure passes.

BACKGROUND
The City of Palo Alto (City) is advancing a plan to redevelop a 15-acre portion of Cubberley, building on previous community engagement and re-engaging residents to reimagine and prioritize community uses of the campus. The City and the Palo Alto Unified School District (PAUSD) have a memorandum of understanding that would enable the City to purchase seven acres to support a reimagined community center and fund school improvements. The City currently owns eight acres at Cubberley; acquiring an additional seven acres would create an opportunity to update the ageing facility for the benefit of the community. Funding the land purchase and site improvements could be made possible through different funding sources including a ballot measure, nonprofit partnerships, philanthropy, grants, and development fees.

There has been extensive foundational work completed to support the advancement of the Cubberley Project, including several actions by the City Council. Attachment D shares a summary of actions to date and the history of the Cubberley site.

ANALYSIS
On May 18, 2026, the City Council directed staff to pursue a ballot measure for a ½ cent (0.5%) transactions and use tax (commonly known as a sales tax) in the November 2026 election.

Within the state cap, the City current has capacity for a ¼ cent (0.25%) voter approved local sales tax. The City would need to obtain authorization from the State before implementing the ½ cent increase. The City and its legislative consultants, Towsend Public Affairs, are preparing legislation that would increase the local sales tax cap by ½ cent.

Placement of a measure on the ballot requires Council action to adopt an ordinance and a companion resolution calling the election and specifying the ballot question. If approved by voters, the resulting revenue would accrue to the City’s General Fund and would be available to support general City services. This includes land acquisition and renovations at the Cubberley 3 An ordinance and a companion resolution to call the election for this ballot measure comes because of disparate state law requirements. State law specifies that certain election matters shall be approved by ordinance, and others can only be approved by resolution.

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site as appropriated by the City Council. The Santa Clara County Registrar of Voters (ROV) requires that measures be submitted no later than August 7, 2026. Key provisions include:
Summary of the Measure: If approved by a simple majority of voters, the ballot measure would create a ½ cent (0.5%) transactions and use tax (commonly known as a sales tax).

Revenue generated by this increment will be deposited in the City’s General Fund and be appropriated by the City Council.
Ballot Question: The exact ballot question is listed in the ordinance. The ballot question is informed by the four polls conducted by the City from September 2025 through March 2026 and refined by the Cubberley Ad Hoc Committee. Ballot Arguments: The Cubberley Ad Hoc Committee members are designated to provide the official ballot argument in favor of the measure. This argument will be published in the County’s voter guide. If formal opposition is submitted, the Ad Hoc Committee will also be responsible for authoring a rebuttal. Alternatively, a majority of the authors of the argument in favor may choose a new slate of authors to submit a rebuttal argument. The deadlines for the argument in favor of the measure, the argument against, and the rebuttal are established in this ordinance in coordination with the County’s deadlines.
Election Consolidation: The City requests and permits the County to consolidate the election for this ballot measure with all the other races occurring on November 3, 2026, including the election of three City Councilmembers, as well as other regional, state, and federal races.
Ordinance Implementing the Measure: The ordinance implementing the ½ cent (0.5%) tax is included as an attachment to the ordinance calling the election. The implementing ordinance is written to ensure that this tax is assessed and collected uniformly with the state sales tax. The California Department of Tax and Fee Administration will collect the amount on the City’s behalf and deposit the revenue with the City. The implementing ordinance will be published in the official voter guide for voter transparency. If approved, the ordinance will be codified into the Palo Alto Municipal Code.

The Cubberley Ad Hoc has prepared a Resolution of Advisory Spending Guidelines that the City Council may may choose to adopt in parallel with the placement of the tax measure on the November 2026 ballot (Attachment C). While the revenue from the measure will flow to the City’s general fund to be appropriated, this resolution states the City Council’s intention of using the new revenue for improving Cubberley through the land acquisition from PAUSD and capital improvements. This attachment will be released late packet on June 4, 2026.

The City Council has successfully honored similar statements setting advisory spending guidelines with respect to the change in the Transient Occupancy Tax rate (TOT, or hotel tax) and with the establishment of the Business Tax. For TOT, all proceeds from a rate change approved in 2014 and another in 2018 were intended and used for investment and completion of the City Council 2014 approved Infrastructure Plan. TOT receipts have funded major projects Item 14
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such as the new Public Safety Building, Bike & Pedestrian Plan, and the new parking garage in the California Avenue district. Regarding the Business Tax, proceeds were intended and used for transportation and safe train crossings, housing affordability and services for the unhoused, and public safety.5

FISCAL/RESOURCE IMPACT
The revenue generated by a ½ cent sales tax measure contained in the attached Ordinance is estimated to generate approximately $13-$15 million annually. This estimate can be impacted by a variety of factors, including composition of the local economy, economic cycles, one-time or other factors (i.e. sales volume, consumer behavior) The Santa Clara County Registrar of Voters (ROV) estimates that placing a measure on the November 2026 election ballot will cost $100,293. Funding for this expense will be provided by the Cubberley Community Center Redevelopment CIP Project (CB-26000).

STAKEHOLDER ENGAGEMENT
In parallel with the development of the Cubberley Conceptual Master Plan process, staff conducted four community polls between April 2025 and March 2026 to gauge community priorities and voter appetite for a potential ballot measure to support land acquisition and implementation costs associated with the Cubberley project. Polling results informed development of the proposed ballot question and funding strategy.

Additional stakeholder engagement related to the proposed ballot measure and broader Cubberley planning effort included discussions with the City Council Cubberley Ad Hoc Committee, public City Council meetings, and presentations to the Parks and Recreation Commission, Planning and Transportation Commission, and Architectural Review Board. These discussions provided opportunities for public input, refinement of project priorities, and feedback on funding considerations associated with the long-term vision for the Cubberley campus.

ENVIRONMENTAL REVIEW
Adoption these pieces of legislation is not a project under CEQA because it involves the creation of government funding mechanisms or other government fiscal activities which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. CEQA regulation 15378(b)(4). 5 See Resolution 10068, “Adopting Advisory Spending Guidelines for Proceeds of a Business Tax to be Submitted to the Voters for Approval November 2022,” approved August 22, 2022, at https://www.paloalto.gov/files/assets/public/v/1/city-clerk/election-info/2022/measure-k/reso-10068.pdf Item 14
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ATTACHMENTS
Attachment A: Ordinance Calling an Election for November 3, 2026 for Submittal to the Qualified Electors of the City a Measure to Impose a Transactions and Use Tax at a Rate of 0.5% Attachment B: Companion Resolution Requesting Election Consolidation and Related Election Services
Attachment C: Resolution Adopting Advisory Spending Guidelines for Proceeds of a Transactions and Use Tax to be Submitted to the Voters for Approval in November 2026 (To be released late packet on June 4, 2026)
Attachment D: Summary of Actions to Date and the History of the Cubberley site APPROVED BY:

Kristen O'Kane, Community Services Director
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NOT YET APPROVED

158_20260527_ts24 1
Ordinance No. _____
Ordinance of the Council of the City of Palo Alto
Calling an Election for November 3, 2026 for Submittal to the Qualified Electors of the City a Measure to Impose a Transactions and Use Tax at a Rate of 0.5%

R E C I T A L S

A. Section 2(b) of Article XIII C of the California Constitution states that “ No local government may impose, extend, or increase any general tax unless and until that tax is submitted to the electorate and approved by a majority vote. A general tax shall not be deemed to have been increased if it is imposed at a rate not higher than the maximum rate so approved.

The election required by this subdivision shall be consolidated with a regularly scheduled general election for members of the governing body of the local government, except in cases of emergency declared by a unanimous vote of the governing body.” B. Revenue and Taxation Code section 7285.9 states that “ The governing body of any city may levy, increase, or extend a transactions and use tax for general purposes at a rate of

0.125 percent or a multiple thereof, if the ordinance proposing that tax is approved by a two - thirds vote of all members of that gover ning body and the tax is approved by a majority vote of the qualified voters of the city voting in an election on the issue. The governing body may levy, increase, or extend more than one transaction and use tax under this section, if the adoption of each tax is in the manner prescribed in this section. The transactions and use tax shall conform to Part 1.6 (commencing with Section 7251).”
C. The City Council desires to call and fix an election to submit to the city electors the question of imposing a general transactions and use tax at a rate of 0.5%.

D. A proposed ordinance attached hereto and incorporated herein by reference as Attachment “A” (the “Ordinance”) would amend the Palo Alto Municipal Code to add a 0.5% transactions and use tax imposed in the City. This tax would be a “general tax” as defined in Article XIII C of the California Constitution.

E. By its Resolution No. _____ as adopted on June 1, 2026, the City Council called a general municipal election for November 3, 2026 (“Election”).

F. Pursuant to Elections Code Section s 9222 and 10403, Government Code Section 53724, and Charter of the City of Palo Alto Article VI., Section 2, the City Council hereby submits the Ordinance to the voters of the City.

The City Council of the City of Palo Alto ORDAINS as follows:

SECTION 1. Findings. The City Council finds and determines that each of the findings set forth above are true and correct.

SECTION 2. Election. The City Council proposes to impose a transactions and use tax at a rate of 0.5% as set forth in the Ordinance and to present this O rdinance to the voters on November 3, 2026.

SECTION 3. Measure. The City Council hereby submits a measure for the enactment of the Ordinance to the voters at the Election and orders the following question to be submitted to the voters at the Election:

Item 14
Attachment A - Ordinance
Calling an Election for
November 3, 2026 for
Submittal to the Qualified
Electors of the City a
Measure to Impose a
Transactions and Use Tax at
a Rate of 0.5%

Item 14: Staff Report
Pg.
6 Packet Pg. 232 of 320

2 City of Palo Alto Community Safety/Services Measure. To provide general city services including repairing Cubberley Community Center for current safety, earthquake,
accessibility standards; upgrading deteriorating electrical systems, wiring, plumbing; acquiring outdoor space/sites; maintaining streets, safe, clean downtown/commercial
cores; preparing for natural disasters; repairing
deteriorating community spaces, libraries, shall City of Palo Alto’s measure enacting a 0.5% (1/2¢) sales tax,
providing approximately $15,600,000 annually until ended by voters, with published financial audits, all funds used locally, be adopted?
YES
NO
T
his question requires the approval of a majority of those casting votes.

S
ECTION 4 . Adoption of Measure. The measure to be submitted to the voters is attached to this ordinance as Attachment A and incorporated herein by this reference. The City requests that the full text of the measure be printed in the County’s Voter Information Guide.

SECTION 5. Notice of Election. Notice of the time and place of holding the Election is hereby given, and the City Clerk is authorized, instructed and directed to give further or additional notice of the Election, in time, form and manner as required by law.

SECTION 6 . Impartial Analysis. Pursuant to Elections Code Section 9280, the City Council hereby directs the City Clerk to transmit a copy of the measure to the City Attorney. The City Attorney shall prepare an impartial analysis of the measure, not to exceed 500 words in length, showing the effect of the measure on the existing law and the operation of the measure, and transmit such impartial analysis to the City Clerk on or before August 18, 2026 at 4:00 p.m.

S
ECTION 7 . Ballot Arguments . Pursuant to Elections Code Section 9286 et. seq. , August 11, 2026 at 4:00 p.m. shall be the deadline for submission of arguments in favor of, and arguments against, any local measures on the ballot. If more than one argument for and/or against is received, the priorities established by Elections Code Section 9287 shall control.

SECTION 8. Rebuttal Arguments. The provisions of Elections Code Section 9285 shall control the submission of any rebuttal arguments. The deadline for filing rebuttal arguments shall be August 18, 2026 at 4:00 p.m.

S
ECTION 9 . Authorization to File Arguments. Pursuant to Elections Code Section 9282(b), the City Council hereby authorizes the following Councilmembers to jointly author and file a written argument in favor of this measure : (1) Councilmember Julie Lythcott- Haims, (2) Councilmember Keith Reckdahl, and (3) Councilmember Pat Burt. These three Councilmembers may alternatively join any grouping authorized by Elections Code 9282(b) to author an argument in favor of this measure.

Item 14
Attachment A - Ordinance
Calling an Election for
November 3, 2026 for
Submittal to the Qualified
Electors of the City a
Measure to Impose a
Transactions and Use Tax at
a Rate of 0.5%

Item 14: Staff Report
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7 Packet Pg. 233 of 320

3 SECTION 10. Consolidation Request (Elections Code § 10403). The Council of the City of Palo Alto requests that the Board of Supervisors of the County of Santa Clara permit the Registrar of Voters to completely consolidate the City’s Municipal Elections for November 3, 2026 and the City Council consents to such consolidation. The Council requests the Board of Supervisors of Santa Clara County to include on the ballots and sample ballots, all qualified measures submitted by the City Council to be considered by the qualified electors of the City of Palo Alto. The Council acknowledges that the E lection will be held and conducted according to procedures in the Elections Code, including Section 10418.

SECTION 11. Request for County Services (Elections Code § 10002 and 10400 et seq.).

Pursuant to Section 10002 of the Elections Code, the Council of the City of Palo Alto hereby requests the Board of Supervisors of Santa Clara County to permit the Registrar of Voters to render services to the City of Palo Alto relating to the conduct of P alo Alto’s Municipal Elections which are called to be held on November 3 , 2026, and shall reimburse the county for the costs incurred by the County of Santa Clara Registrar of Voters in conducting the election for the City of Palo Alto. The services shall be of the type normally performed by the Registrar of Voters in assisting the clerks of municipalities in the conduct of elections including, but not limited to, checking registrations, mailing ballots, hiring election officers an d arranging for polling places, receiving absentee voter ballot applications, mailing and receiving absent voter ballots and opening and counting same, providing and distributing election supplies, and furnishing voting machines, the canvassing of the returns of the election, the furnishing of the results of such canvassing to the City Clerk, and, the performance of other election services as may be requested by the City Clerk. The City requests the County of Santa Clara Board of Supervisors permit the County of Santa Clara Registrar of Voters to prepare the City’s election materials.

SECTION 12. Transmittal of Ordinance . The City Clerk is hereby directed to submit forthwith a certified copy of this ordinance to the Santa Clara County Board of Supervisors and to the Registrar of Voters.

SECTION 13. Environmental Review. The Ordinance in Attachment A is not a project under CEQA regulation 15378(b)(4) because it creates a government funding mechanism which does not involve a commitment to any specific project which may result in a potentially significant physical impact on the environment.

//

//

//

//

Item 14
Attachment A - Ordinance
Calling an Election for
November 3, 2026 for
Submittal to the Qualified
Electors of the City a
Measure to Impose a
Transactions and Use Tax at
a Rate of 0.5%

Item 14: Staff Report
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8 Packet Pg. 234 of 320

4 SECTION 14. Effective Date. This ordinance shall take effect upon adoption pursuant to PAMC section 2.04.330(a)(1) as an ordinance calling or otherwise relating to an election.

INTRODUCED AND PASSED:

AYES:

NOES:

ABSENT:

ABSENTIONS:

ATTEST:

____________________________ ____________________________ City Clerk Mayor

APPROVED AS TO FORM: APPROVED:

____________________________ ____________________________ Assistant City Attorney City Manager

____________________________
Chief Financial Officer

Item 14
Attachment A - Ordinance
Calling an Election for
November 3, 2026 for
Submittal to the Qualified
Electors of the City a
Measure to Impose a
Transactions and Use Tax at
a Rate of 0.5%

Item 14: Staff Report
Pg.
9 Packet Pg. 235 of 320

5 Attachment A
** START HERE **

ORDINANCE NO._________

AN ORDINANCE OF THE CITY OF PALO ALTO IMPOSING A TRANSACTIONS AND

USE TAX TO BE ADMINISTERED BY THE CALIFORNIA DEPARTMENT OF TAX AND

FEE ADMINISTRATION

THE PEOPLE OF THE CITY OF PALO ALTO DO ORDAIN AS FOLLOWS, which shall be codified as Palo Alto Municipal Code Chapter 2.38:

Section 1. 2.38.010 TITLE. This chapter shall be known as the 2026 Transactions and Use Tax Ordinance. The City of Palo Alto hereinafter shall be called “City.” This Chapter shall be applicable in the incorporated territory of the City.

Section 2. 2.38.020 OPERATIVE DATE. “Operative Date” means the first day of the first calendar quarter commencing more than 110 days after the adoption of this ordinance. For purposes of Revenue and Taxation Code section 7265, this Chapter shall be considered adopted on the date of the election in which it is approved by the qualified voters of the City.

Section 3. 2.38.030 PURPOSE. This Chapter is adopted to achieve the following, among other purposes, and directs that the provisions hereof be interpreted in order to accomplish those purposes:

A. To impose a retail transactions and use tax in accordance with the provisions of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code and Section 7285.9 of Part 1.7 of Division 2 which authorizes the City to adopt this tax ordinance which shall be operative if a majority of the electors voting on the measure vote to approve the imposition of the tax at an election called for that purpose.

B. To adopt a retail transactions and use tax ordinance that incorporates provisions identical to those of the Sales and Use Tax Law of the State of California insofar as those provisions are not inconsistent with the requirements and limitations contained in Part 1.6 of Division 2 of the Revenue and Taxation Code.

C. To adopt a retail transactions and use tax ordinance that imposes a tax and provides a measure therefore that can be administered and collected by the California Department of Tax and Fee Administration in a manner that adapts itself as fully as practicable to, and requires the least possible deviation from, the existing statutory and administrative procedures followed by the California Department of Tax and Fee Administration in administering and collecting the California State Sales and Use Taxes.

D. To adopt a retail transactions and use tax ordinance that can be administered in a manner that will be, to the greatest degree possible, consistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, minimize the cost of collecting the transactions and use taxes, and at the same time, minimize the burden of record keeping upon persons subject to taxation under the provisions of this ordinance.

Item 14
Attachment A - Ordinance
Calling an Election for
November 3, 2026 for
Submittal to the Qualified
Electors of the City a
Measure to Impose a
Transactions and Use Tax at
a Rate of 0.5%

Item 14: Staff Report
Pg.
10 Packet Pg. 236 of 320

6 Section 4. 2.38.040 CONTRACT WITH STATE. Prior to the operative date, the City shall contract with the California Department of Tax and Fee Administration to perform all functions incident to the administration and operation of this Chapter; provided, that if the City shall not have contracted with the California Department of Tax and Fee Administration prior to the operative date, it shall nevertheless so contract and in such a case the operative date shall be the first day of the first calendar quarter following the execution of such a contract.

Section 5. 2.38.050 TRANSACTIONS TAX RATE. For the privilege of selling tangible personal property at retail, a tax is hereby imposed upon all retailers in the incorporated territory of the City at the rate of 0.5% of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in said territory on and after the operative date of this Chapter. If imposition of this tax at a rate of 0.5% of gross receipts would cause the limit established in section 7251.1 of the Revenue and Taxation Code to be exceeded, then the tax shall be applied at the maximum rate possible to comply with the limit established in section 7251.1 of the Revenue and Taxation Code until such time that the tax can be applied at a rate of 0.5% of gross receipts and comply with the limit established in section 7251.1 of the Revenue and Taxation Code.

Section 6. 2.38.060 PLACE OF SALE. For the purposes of this Chapter, all retail sales are consummated at the place of business of the retailer unless the tangible personal property sold is delivered by the retailer or his agent to an out-of-state destination or to a common carrier for delivery to an out-of-state destination. The gross receipts from such sales shall include delivery charges, when such charges are subject to the state sales and use tax, regardless of the place to which delivery is made. In the event a retailer has no permanent place of business in the State or has more than one place of business, the place or places at which the retail sales are consummated shall be determined under rules and regulations to be prescribed and adopted by the California Department of Tax and Fee Administration.

Section 7. 2.38.070 USE TAX RATE. An excise tax is hereby imposed on the storage, use or other consumption in the City of tangible personal property purchased from any retailer on and after the operative date of this Chapter for storage, use or other consumption in said territory at the rate of 0.5% of the sales price of the property. The sales price shall include delivery charges when such charges are subject to state sales or use tax regardless of the place to which delivery is made. If imposition of this tax at a rate of 0.5% of the sales price of property would cause the limit established in section 7251.1 of the Revenue and Taxation Code to be exceeded, then the tax shall be applied at the maximum rate possible to comply with the limit established in section 7251.1 of the Revenue and Taxation Code until such time that the tax can be applied at a rate of 0.5% of the sales price of property and comply with the limit established in section 7251.1 of the Revenue and Taxation Code.

Section 8. 2.38.080 ADOPTION OF PROVISIONS OF STATE LAW. Except as otherwise provided in this Chapter and except insofar as they are inconsistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, all of the provisions of Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code are hereby adopted and made a part of this Chapter as though fully set forth herein.

Section 9. 2.38.090 LIMITATIONS ON ADOPTION OF STATE LAW AND COLLECTION OF USE TAXES. In adopting the provisions of Part 1 of Division 2 of the Item 14
Attachment A - Ordinance
Calling an Election for
November 3, 2026 for
Submittal to the Qualified
Electors of the City a
Measure to Impose a
Transactions and Use Tax at
a Rate of 0.5%

Item 14: Staff Report
Pg.
11 Packet Pg. 237 of 320

7 Revenue and Taxation Code:

A. Wherever the State of California is named or referred to as the taxing agency, the name of this City shall be substituted therefor. However, the substitution shall not be made when:

1. The word “State” is used as a part of the title of the State Controller, State Treasurer, State Treasury, or the Constitution of the State of California;

2. The result of that substitution would require action to be taken by or against this City or any agency, officer, or employee thereof rather than by or against the California Department of Tax and Fee Administration, in performing the functions incident to the administration or operation of this Chapter.

3. In those sections, including, but not necessarily limited to sections referring to the exterior boundaries of the State of California, where the result of the substitution would be to:

a. Provide an exemption from this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not otherwise be exempt from this tax while such sales, storage, use or other consumption remain subject to tax by the State under the provisions of Part 1 of Division 2 of the Revenue and Taxation Code, or;

b. Impose this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not be subject to tax by the state under the said provision of that code.

4. In Sections 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 or 6828 of the Revenue and Taxation Code.

B. The word “City” shall be substituted for the word “State” in the phrase “retailer engaged in business in this State” in Section 6203 and in the definition of that phrase in Section 6203.

1. “A retailer engaged in business in the District” shall also include any retailer that, in the preceding calendar year or the current calendar year, has total combined sales of tangible personal property in this state or for delivery in the State by the retailer and all persons related to the retailer that exceeds five hundred thousand dollars ($500,000). For purposes of this section, a person is related to another person if both persons are related to each other pursuant to Section 267(b) of Title 26 of the United States Code and the regulations thereunder.

Section 10. 2.38.100 PERMIT NOT REQUIRED. If a seller’s permit has been issued to a retailer under Section 6067 of the Revenue and Taxation Code, an additional transactor’s permit shall not be required by this Chapter.

Section 11. 2.38.110 EXEMPTIONS AND EXCLUSIONS.

A. There shall be excluded from the measure of the transactions tax and the use tax the amount of any sales tax or use tax imposed by the State of California or by any city, city and Item 14
Attachment A - Ordinance
Calling an Election for
November 3, 2026 for
Submittal to the Qualified
Electors of the City a
Measure to Impose a
Transactions and Use Tax at
a Rate of 0.5%

Item 14: Staff Report
Pg.
12 Packet Pg. 238 of 320

8 county, or county pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law or the amount of any state-administered transactions or use tax.

B. There are exempted from the computation of the amount of transactions tax the gross receipts from:

1. Sales of tangible personal property, other than fuel or petroleum products, to operators of aircraft to be used or consumed principally outside the county in which the sale is made and directly and exclusively in the use of such aircraft as common carriers of persons or property under the authority of the laws of this State, the United States, or any foreign government.

2. Sales of property to be used outside the City which is shipped to a point outside the City, pursuant to the contract of sale, by delivery to such point by the retailer or his agent, or by delivery by the retailer to a carrier for shipment to a consignee at such point. For the purposes of this paragraph, delivery to a point outside the City shall be satisfied:

a. With respect to vehicles (other than commercial vehicles) subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, and undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code by registration to an out-of-City address and by a declaration under penalty of perjury, signed by the buyer, stating that such address is, in fact, his or her principal place of residence; and

b. With respect to commercial vehicles, by registration to a place of business out-of-City and declaration under penalty of perjury, signed by the buyer, that the vehicle will be operated from that address.

3. The sale of tangible personal property if the seller is obligated to furnish the property for a fixed price pursuant to a contract entered into prior to the operative date of this Chapter.

4. A lease of tangible personal property which is a continuing sale of such property, for any period of time for which the lessor is obligated to lease the property for an amount fixed by the lease prior to the operative date of this Chapter.

5. For the purposes of subparagraphs (3) and (4) of this section, the sale or lease of tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised.

C. There are exempted from the use tax imposed by this Chapter, the storage, use or other consumption in this City of tangible personal property:

1. The gross receipts from the sale of which have been subject to a transactions tax under any state-administered transactions and use tax ordinance.

2. Other than fuel or petroleum products purchased by operators of aircraft and Item 14
Attachment A - Ordinance
Calling an Election for
November 3, 2026 for
Submittal to the Qualified
Electors of the City a
Measure to Impose a
Transactions and Use Tax at
a Rate of 0.5%

Item 14: Staff Report
Pg.
13 Packet Pg. 239 of 320

9 used or consumed by such operators directly and exclusively in the use of such aircraft as common carriers of persons or property for hire or compensation under a certificate of public convenience and necessity issued pursuant to the laws of this State, the United States, or any foreign government. This exemption is in addition to the exemptions provided in Sections 6366 and 6366.1 of the Revenue and Taxation Code of the State of California.

3. If the purchaser is obligated to purchase the property for a fixed price pursuant to a contract entered into prior to the operative date of this Chapter.

4. If the possession of, or the exercise of any right or power over, the tangible personal property arises under a lease which is a continuing purchase of such property for any period of time for which the lessee is obligated to lease the property for an amount fixed by a lease prior to the operative date of this Chapter.

5. For the purposes of subparagraphs (3) and (4) of this section, storage, use, or other consumption, or possession of, or exercise of any right or power over, tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised.

6. Except as provided in subparagraph (7), a retailer engaged in business in the City shall not be required to collect use tax from the purchaser of tangible personal property, unless the retailer ships or delivers the property into the City or participates within the City in making the sale of the property, including, but not limited to, soliciting or receiving the order, either directly or indirectly, at a place of business of the retailer in the City or through any representative, agent, canvasser, solicitor, subsidiary, or person in the City under the authority of the retailer.

7. “A retailer engaged in business in the City” shall also include any retailer of any of the following: vehicles subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, or undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code. That retailer shall be required to collect use tax from any purchaser who registers or licenses the vehicle, vessel, or aircraft at an address in the City.

D. Any person subject to use tax under this Chapter may credit against that tax any transactions tax or reimbursement for transactions tax paid to a district imposing, or retailer liable for a transactions tax pursuant to Part 1.6 of Division 2 of the Revenue and Taxation Code with respect to the sale to the person of the property the storage, use or other consumption of which is subject to the use tax.

Section 12. 2.38.120 AMENDMENTS. All amendments subsequent to the effective date of this Chapter to Part 1 of Division 2 of the Revenue and Taxation Code relating to sales and use taxes and which are not inconsistent with Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, and all amendments to Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, shall automatically become a part of this Chapter, provided however, that no such amendment shall operate so as to affect the rate of tax imposed by this Chapter.

Item 14
Attachment A - Ordinance
Calling an Election for
November 3, 2026 for
Submittal to the Qualified
Electors of the City a
Measure to Impose a
Transactions and Use Tax at
a Rate of 0.5%

Item 14: Staff Report
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14 Packet Pg. 240 of 320

10 Section 13. 2.38.130 ENJOINING COLLECTION FORBIDDEN. No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action or proceeding in any court against the State or the City, or against any officer of the State or the City, to prevent or enjoin the collection under this Chapter, or Part 1.6 of Division 2 of the Revenue and Taxation Code, of any tax or any amount of tax required to be collected.

Section 14. 2.38.140 SEVERABILITY. If any provision of this Chapter or the application thereof to any person or circumstance is held invalid, the remainder of the Chapter and the application of such provision to other persons or circumstances shall not be affected thereby.

Section 15. 2.38.150 EFFECTIVE DATE. This Chapter relates to the levying and collecting of the City transactions and use taxes and shall take effect immediately.

Section 16. 2.38.160 TERMINATION DATE. The authority to levy the tax imposed by this Chapter shall expire when repealed by the voters of the City of Palo Alto.

Section 17 (to be uncodified). EXECUTION. The City Clerk and the Mayor are hereby authorized to attest to the adoption of this Ordinance by the voters of the City by signing where indicated below.

I hereby certify that the foregoing Ordinance was APPROVED by the People of the City of Palo Alto voting in the election on November 3, 2026.

ATTEST:

__________________________ ___________________________ City Clerk Mayor

APPROVED AS TO FORM:

___________________________ ___________________________ City Attorney or designee City Manager
** END HERE **
Item 14
Attachment A - Ordinance
Calling an Election for
November 3, 2026 for
Submittal to the Qualified
Electors of the City a
Measure to Impose a
Transactions and Use Tax at
a Rate of 0.5%

Item 14: Staff Report
Pg.
15 Packet Pg. 241 of 320

NOT YET APPROVED
159_20250527_ts24 1
Resolution No. _____
Resolution of the Council of the City of Palo Alto
Requesting Election Consolidation and Election Services for a Ballot Measure to Impose a Local Transactions and Use Tax at a Rate of 0.5%
R E

C I T A L S
A. T
he City Council, by Ordinance No. ______ , adopted at the same time as this companion resolution, formally called an election for the submission of a ballot measure to the voters of Palo Alto to impose a transactions and use tax at a rate of 0.5% for the November 3, 2026 election.

B. To
the extent a resolution is required by Elections Code sections 10002 and 10403, the City Council hereby requests consolidation of the ballot measure described above with the statewide election on November 3, 2026 and related elections services from the County of Santa Clara.

The City Council of the City of Palo Alto resolves as follows:

SECTION 1. Findings. The City Council adopts each of the findings set forth above.

S
ECTION 2. Measure. The exact form of the question shall be as follows:

City of Palo Alto Community Safety/Services Measure. To provide general city services including repairing Cubberley Community Center for current safety, earthquake,
accessibility standards; upgrading deteriorating electrical systems, wiring, plumbing; acquiring outdoor space/sites; maintaining streets, safe, clean downtown/commercial
cores; preparing for natural disasters; repairing
deteriorating community spaces, libraries, shall City of Palo Alto’s measure enacting a 0.5% (1/2¢) sales tax,
providing approximately $15,600,000 annually until ended by voters, with published financial audits, all funds used locally, be adopted?
YES
NO
T
his question requires the approval of a majority of those casting votes.

S
ECTION 3. Consolidation Request (Elections Code § 10403). The Council of the City of Palo Alto requests that the Board of Supervisors of the County of Santa Clara permit the Registrar of Voters to completely consolidate the City’s Municipal Elections for November 3, 2026 and the City Council consents to such consolidation. The Council requests the Board of Supervisors of Santa Clara County to include on the ballots and sample ballots, all qualified measures submitted by the City Council to be considered by the qualified electors of the City of Palo Alto. The Council acknowledges that the E lection will be held and conducted according to Item 14
Attachment B - Companion
Resolution Requesting
Election Consolidation and
Related Election Services

Item 14: Staff Report
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2 procedures in the Elections Code, including Section 10418.

SECTION 4. Request for County Services (Elections Code § 10002 and 10400 et seq.).

Pursuant to Section 10002 of the Elections Code, the Council of the City of Palo Alto hereby requests the Board of Supervisors of Santa Clara County to permit the Registrar of Voters to render services to the City of Palo Alto relating to the conduct of P alo Alto’s Municipal Elections which are called to be held on November 3 , 2026, and shall reimburse the county for the costs incurred by the County of Santa Clara Registrar of Voters in conducting the election for the City of Palo Alto. The services shall be of the type normally performed by the Registrar of Voters in assisting the clerks of municipalities in the conduct of elections including, but not limited to, checking registrations, mailing ballots, hiring election officers and arranging for polling places, receiving absentee voter ballot applications, mailing and receiving absent voter ballots and opening and counting same, providing and distributing election supplies, and furnishing voting machines, the canvassing of the returns of the election, the furnishing of the results of such canvassing to the City Clerk, and, the performance of other election services as may be requested by the City Clerk. The City requests the County of Santa Clara Board of Supervisors permit the County of Santa Clara Registrar of Voters to prepare the City’s election materials.

SECTION 5. Environmental Review. This ballot measure is not a project under CEQA regulation 15378(b)(4) because it creates a government funding mechanism which does not involve a commitment to any specific project which may result in a potentially significant physical impact on the environment.

SECTION 6. No Conflicting Interpretations . This Resolution is intended to be a companion to Ordinance No. _______ to fulfill any legal requirement that the requests for consolidation, for election services, and the ballot question be contained in a resolution. This Resolution shall not be interpreted to conflict with Ordinance No. ______.

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//

Item 14
Attachment B - Companion
Resolution Requesting
Election Consolidation and
Related Election Services

Item 14: Staff Report
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3 SECTION 7. Effective Date. This resolution shall take effect upon adoption.

INTRODUCED AND PASSED:

AYES:

NOES:

ABSENT:

ABSENTIONS:

ATTEST:

__________________________ _____________________________ City Clerk Mayor

APPROVED AS TO FORM: APPROVED:

__________________________ _____________________________ Assistant City Attorney City Manager

Item 14
Attachment B - Companion
Resolution Requesting
Election Consolidation and
Related Election Services

Item 14: Staff Report
Pg.
18 Packet Pg. 244 of 320

Attachment D
The Cubberley Site
The 35-acre Cubberley site, located at 4000 Middlefield Road in Palo Alto, operated as Cubberley High School from 1956 to 1979. Beginning in the late 1980’s, the City began leasing portions of the facilities from the Palo Alto Unified School District (PAUSD) at the site. Today, the City operates the areas of Cubberley it controls as a community center, using some of the space for classes and activities in arts, culture, athletics, and sub-leasing additional space at City-subsidized rates to various non-profit and community serving groups. The current lease agreement expires December 31, 2029.1 Today, the City owns eight acres of the 35-acre site. PAUSD owns the remaining 27 acres, most of which are leased to the City. There are currently 23 tenants and 24 artists leasing space at Cubberley from the City and dozens of groups renting the theater, pavilion, classrooms, and athletic fields from the City. Combined, these groups provide the community with programs that support health and wellness, childcare, education, and visual and performing arts. PAUSD uses its retained space for educational purposes and staff offices and has leases with some third-party tenants.

The parking lot in the southeast corner of the property houses portable trailers as a temporary site for Hoover Elementary School during construction at the school’s site. A current site map can be found on the City’s website.2
Several master planning efforts have been completed over the years to reimagine and improve the Cubberley site, with the most recent being completed in 2019.3 Memorandum of Understanding with PAUSD
In October 2024,4 both the City Council and Palo Alto Unified School District (PAUSD or District) Board of Education approved a Memorandum of Understanding (MOU) related to the future of the Cubberley site. The MOU outlines key terms and conditions for the purchase and future planning of Cubberley. The land purchase, which would transfer ownership of seven acres from PAUSD to the City, is contingent on voter approval of a bond measure in November 2026. This condensed timeframe requires development of a master plan for the site by March 2026, conduct stakeholder and community engagement and outreach, polling, financial analysis, CEQA analysis, and other critical tasks. The addition of the seven acres, plus the eight acres already owned by the City of 1 City Council, December 2, 2024: https://portal.laserfiche.com/Portal/DocView.aspx?id=112707&repo=r- 704298fc&searchid=c3e3ed6f-6cda-4dd3-ba35-5d8d4be5579e
2 https://www.cityofpaloalto.org/files/assets/public/v/1/city-manager/communications-office/cubberley- community-center_mappdf.pdf
3 Cubberley Concept Plan 2019: https://www.pausd.org/about-us/committees-task-forces/archived- committees/cubberley-master-plan
4 City Council, October 7, 2024; Agenda Item AA1; SR #2409-3500, https://portal.laserfiche.com/Portal/DocView.aspx?id=98415&repo=r-704298fc&searchid=e199f724-22ab- 472b8ad8-ca162c4dcf8a
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Palo Alto provides an opportunity to develop a new community center and other improvements on a combined 15 acres at the Cubberley site to provide a range of City programs, including health, wellness, and recreational opportunities for residents.

Master Plan Update and Pursuit of a Local Ballot Measure To advance the master planning effort the City Council took several actions on December 2, 20249 related to the future of the Cubberley site. These actions included approval of a contract with Concordia, LLC, and associated budget actions for development of a revised Master Plan for the Cubberley Community Center site, building on the previous master plan completed in 2019 by Concordia and guided by significant community input. Additionally, the Council approved a Letter of Intent with the Friends of the Palo Alto Recreation Wellness Center for the purpose of fundraising for a recreation wellness center (gymnasium) at the Cubberley site, and a workplan for pursuit of a November 2026 local ballot measure to fund the purchase of land and development of a new community center at the Cubberley site.

Subsequent Council actions included approving a five-year lease with PAUSD10 to continue the current use of the property, including playing fields, approval of a professional services agreement with Rincon for CEQA analysis,11 and approval of professional service agreements with Lew Edwards Group and Fairbank, Maslin, Metz & Associates12 for ballot measure strategy advisement and community polling.

Cubberley Ad Hoc Committee
The Council established the Cubberley Ad Hoc Committee (as a non-Brown Act body) to review and advise staff on efforts related to polling and development of a ballot measure that will successfully receive voter support in 2026. Efforts include polling, financial and revenue modeling for the community center, master planning, and community outreach to complete the Master Plan and place a measure on the November 2026 ballot.

The City Council will serve as the governing body for policy direction at key decision points. This includes direction to conduct polling, review of concept designs, direction on 9 City Council, December 2, 2024; Agenda Item 18, SR #2410-3634, https://portal.laserfiche.com/Portal/DocView.aspx?id=112713&repo=r-704298fc 10 City Council, December 2, 2024; Agenda Item 12; SR #2410-3651, https://portal.laserfiche.com/Portal/DocView.aspx?id=112707&repo=r-704298fc 11 City Council, December 16, 2024; Agenda Item 12; SR #2411-3813, https://portal.laserfiche.com/Portal/DocView.aspx?id=117742&repo=r-704298fc&searchid=96e9506b- f1bd-485e-a4cb-fc804b5893d1
12 City Council, February 24, 2025; Agenda Item 4; SR #2501-4039, https://portal.laserfiche.com/Portal/DocView.aspx?id=143364&repo=r-704298fc&searchid=fef509a6- 4d34-4060-bc7a-6ab87db7a0ae
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operating and financial models, and decisions on what should be placed on the November 2026 ballot.

April 21, 2025 City Council Meeting
At the April 21, 202517 City Council meeting, staff presented outcomes from the first community meeting held on March 19, an update on the Cubberley Master Plan Project workplan and sought Council authorization to initiate the first community poll.

First Cubberley Master Plan Community Meeting
The first community meeting for the Cubberley Master Plan Project was held on March 19, 2025, and was attended by over 120 community members and stakeholders.

Participants completed two activities in table groups of up to eight people with guided facilitation, focusing on the vision for the community center, programming, and place making. The first meeting goals included a review of the Vision from the City Council session and then using a list from the previous community engagement process, participants were asked to review and confirm desired programming and adjacencies for the future Community Center. The outcomes of the March 19 meeting were presented to the City Council on April 21, 202518 .

The first activity focused on a review of the Council Vision statement and participants were asked to expand the Vision statement with additional values and ideas.

Community members valued: Multipurpose, adaptable spaces to accommodate diverse uses over time; Gathering hubs for interconnectivity and communication between diverse social, cultural and generational groups; Accessibility for all ages, cultures and abilities to access holistic wellness resources; Integration of green space and sustainability features in experiential and infrastructural planning; and Affordability for local Palo Altans and for tenants who have a community focus. Overall, participants focused on flexibility, inclusivity, sustainability, and long-term community engagement as high-level themes.

The second activity focused on programming and adjacencies of indoor and outdoor spaces. The most selected indoor programs were Theater/Performance Space, Dance Classes, Art Studio, Art Classes, followed by Gym Facility, Flexible Rental Space, and a Café. For outdoor programs, Open Greenspace was the most selected program followed by Playground, Amphitheater, and Pool/Water Area. Compared to 2019, the most mentioned programs then (indoor and outdoor) were Adult Education, 17 City Council, April 21, 2025; Agenda Item 11; SR #2503-4310, https://portal.laserfiche.com/Portal/DocView.aspx?id=166428&repo=r-704298fc 18 Staff Presentation, April 21, 2025;
https://cityofpaloalto.primegov.com/Portal/viewer?id=0&type=7&uid=71ade3d7-a57a-4195-a59b- c410d90832ea
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Theater/Performance Space, Greenspace, Makerspace, and Senior/Multigenerational Programs.

Feedback on First Community Poll
Polling experts, FM3 presented themes for the first community poll designed to test voter opinions on the community center’s goals, preferred uses, and willingness to support funding through a tax or bond21. The poll themes and questions were developed with input from the Cubberley Ad Hoc Committee and will inform critical upcoming milestones in the project. The Council did not take an action but supported proceeding with the poll.

April 22,2025 Parks & Recreation Commission Meeting
On April 22, 2025,22 staff presented an informational update to the Parks and Recreation Commission, offering a comprehensive overview of the project's overall workplan and timeline. The presentation included a detailed summary of Community Meeting #1, highlighting key themes and priorities that emerged from the community’s feedback. Staff also introduced Poll #1, which was launched at the end of April, and encouraged Commissioners to help promote the survey to ensure broad community participation. In addition, the presentation outlined several ways the Commission can remain engaged and support the project, including serving as ambassadors within the community, helping to share information, and providing feedback. The creation of a PRC Cubberley ad-hoc committee was discussed and it was decided that this topic will be further considered during the upcoming workplan revisions scheduled for the coming months.

June 9, 2025 City Council Meeting
On June 9, 2025,23 staff presented to City Council the results of the first community poll, community engagement milestones coming up and updates to the workplan. The focus of the first poll was to survey voter input on the goals and future of the community center and possible support for a tax or bond measure. Staff also shared community engagement. Overall, the poll found broad majority support for improvement at the Cubberley site. Surveyed voters place highest priority on bringing the facility up to modern standards for electrical, plumbing, safety, and accessibility early childhood 21 FM3 Presentation, April 21, 2025;
https://cityofpaloalto.primegov.com/Portal/viewer?id=0&type=7&uid=83ec6422-b6e4-4e83-9ca3- ca746a5971a0
22 Staff Presentation, April 22, 2025;
https://cityofpaloalto.primegov.com/Portal/viewer?id=0&type=7&uid=dae0543c-e007-4fc1-9a69- fd08b156ee94
23 City Council, June 9, 2025, Agenda Item 2; SR#2503-4313, https://portal.laserfiche.com/Portal/DocView.aspx?id=182790&repo=r-704298fc&searchid=57dac2b5- 5c42-4ef0-978a-be940766f395
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education; affordability and efficient use of taxpayer dollars; and overall repairs for the facility. Lastly, staff shared with the City Council the community revised Vision Statement for the future of the Community Center.

June 12, 2025 Second Cubberley Master Plan Community Meeting On June 12, 2025, the City held the second community meeting for the Cubberley Community Center Master Plan, facilitated by Concordia. At the outset of the meeting, Concordia shared a revised Vision Statement based on community input gathered at the March 19 community meeting. The revised Vision Statement is, A vibrant, beloved, and adaptable destination that promotes learning, connections, joy, and wellbeing where all cultures and generations belong. Following this, staff provided an overview presentation to orient attendees to the three 3-D concept plans being presented. Each conceptual design includes an A, B, and C variations exploring different configurations of building placement, new construction vs renovation, green space, bike and pedestrian circulation, and parking—both above and below ground.

In the first activity community members were invited as a group to share their feedback on what aspects from all nine designs they liked and wanted “keep” and did not like and wanted to “leave behind”. They indicated aspects they liked with green dot stickers and aspects they did not like with red dot stickers. They were then asked to expand on their choices by writing explanations on the activity sheet provided for the table.

In the second activity, following the group discussion of the three concept designs—The Promenade, The Grid, and The Plaza—participants individually reviewed key design elements using a provided handout. They were asked to evaluate each concept’s primary layout across six categories: arrival & parking, pedestrian circulation, building scale & physical space organization, landscape & greenspace organization, balance of building & greenspace, and being a good neighbor. Each category was rated on a scale from 1 (not successful at all) to 5 (very successful).

Approximately 130 community members attended the second Cubberley Community Meeting and were highly engaged in providing feedback on the three presented concept designs. Attendees shared a wide range of reactions to various aspects of the designs, particularly discussing building layouts, the placement and amount of green space, parking structures, and preferences between above- and below-ground concepts. While perspectives varied, there was clear consensus around the excitement for the project’s progress and enthusiasm to see the plans taking shape. Community members expressed eagerness to continue the conversation, particularly around program placement, at the next meeting. A Meeting Summary can be found on the project website27.
27 Community Meeting #2 Summary, www.paloalto.gov/files/4280f185-ca1d-4965-940f-1e4fcaf6cb11/M2- Summary-Report-Final.pdf
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June 19, 2025 Public Art Commission Meeting
On June 19, 2025,29 City staff presented to the Public Art Commission and discussed potential opportunities to support the City’s Strategic Activation Plan for the Cubberley site, which was developed by staff in coordination with the City Council’s Cubberley Ad Hoc Committee. The plan outlined phased enhancements and activations aligned with the broader master planning process, community engagement efforts, and the anticipated November 2026 ballot initiative. As part of the discussion, Commissioners explored how the ArtLift grant program—previously identified at their January retreat as a potential tool—could be leveraged to support temporary public art installations at Cubberley and other key locations. Ideas included murals, ground art, freestanding sculptures, and performance-based activations to help generate community excitement and reinforce the role of the arts in creating vibrant, inclusive public spaces.

June 24, 2025 Parks & Recreation Commission Meeting
On June 24, 2025,30 City staff provided the Parks and Recreation Commission with an informational update on the Cubberley Community Center Master Plan. The presentation included a recap of the second community meeting held on June 12, where Concordia unveiled three concept designs for the site and invited community feedback. Staff also presented the results of the first community poll, released in late April, and shared a list of proposed near-term activation ideas for the Cubberley site, inviting the Commission’s input. In addition, staff sought feedback from the Commission on the three concept designs. The newly formed PRC Cubberley Ad Hoc Committee will continue to refine the activation plans in July.

July 9, 2025 Planning and Transportation Commission Meeting On July 9, 2025,31 the Planning and Transportation Commission (PTC) received an update on the Cubberley Master Plan and was asked to provide input to help inform the next phase of the planning process. Staff requested feedback on several key aspects recently reviewed by the community, including arrival and parking, pedestrian circulation, building scale and space organization, greenspace layout, the balance of 29 Staff Presentation, June 19, 2025;
https://cityofpaloalto.primegov.com/Portal/viewer?id=0&type=7&uid=a036e199-31cd-4d94-8214- 7fb0170e39ac
30 Staff Presentation, June 24, 2025;
https://cityofpaloalto.primegov.com/Portal/viewer?id=0&type=7&uid=ac29aa36-1b3a-4403-b8b2- cc403685865d
31 Staff Presentation, June 9, 2025;
https://cityofpaloalto.primegov.com/Portal/viewer?id=0&type=7&uid=49fc32cf-caa1-4dd9-97f9- 5d5d02150256
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built and open space, and how the site can be a good neighbor. Additional PTC feedback emphasized the importance of clear cost comparisons between renovation and new construction, interest in public-private funding models, and support for a future bond measure and donor engagement. Commissioners favored partial underground parking and better integration with transit and surrounding neighborhoods. There was broad interest in maintaining flexible green space for events, ensuring safe and separate bike/pedestrian circulation, and preserving multigenerational, inclusive programming. Suggestions also included clearer diagrams, more tangible use examples, and consideration of impacts from surrounding development.

July 17, 2025 Architectural Review Board Meeting
On July 17, 202535, the Architectural Review Board (ARB) received a presentation on the Cubberley Master Plan and provided early feedback to help shape the next phase of planning. The Board expressed strong support for phased development and emphasized minimizing disruption to existing tenants and programs. Members praised pedestrian and bike circulation, supported the proposed balance of buildings and green space, and encouraged improvements to vehicle access and mobility hubs. There was general support for new construction over renovation and interest in enhancing the site's identity through public art and flexible community spaces. The ARB also encouraged a welcoming design that reflects Cubberley’s civic and cultural significance while being a good neighbor to the surrounding community.

September 17, 2025 Third Cubberley Master Plan Community Meeting On September 17, 2025, the City held the third and final community meeting for the Cubberley Master Plan, facilitated by Concordia. Approximately 150 community members attended and were highly engaged in reviewing the refined concept design. At the outset, City staff and Concordia recapped the first two community meetings, provided a project overview, and highlighted updates to the concept plan, including phasing strategies. Following this presentation, participants engaged in two interactive activities to provide focused feedback.

A draft concept design was presented in phases to demonstrate that the project will need to be constructed over time based on available funding, and to ensure that programs and services are not disrupted during construction. Phase 1 includes a mix of constructing new buildings and renovation of existing buildings to reflect likely timing needed between phases while additional funding is secured.

Activity 1- Phase 1 Concept Design: Recreation Wellness and Performing Arts 35 Staff Presentation, July 17, 2025;
https://cityofpaloalto.primegov.com/Portal/viewer?id=0&type=7&uid=2a9a7988-768f-465b-bcf9- 68166ff9af6f
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Phase 1 consists of two parts: a Recreation Wellness Center and a Performing Arts Center. Phase 1 also includes renovation of remaining buildings so the full site continues to be operational until phases 2 and 3 can be completed. Community members were invited to assess the Phase 1 concept designs for the recreation wellness and performing arts area and were asked to reflect on three key questions:

1. What is working well and excites you?

2. What is not working well or could be improved?

3. What creative ideas do you have to make the space exciting? Activity 2- Phase 2 and 3 Concept Design: Visual Arts & Technology and Community Services
In the second activity, community members were asked to provide feedback on Phase 2 and Phase 3, which includes the Visual Arts & Technology (Phase 2) and Community Services spaces (Phase 3). Participants responded to the same guiding questions as in the first activity: what is working well and is exciting about the proposed designs, what aspects are not working or could be improved, and what creative ideas, such as new events, programs, or installations—could make these areas more vibrant and impactful.

This exercise allowed the community to reflect on future phases of development and share ideas that will help shape a cohesive, dynamic, and inclusive vision for the campus.

Overall, the meeting reflected strong community engagement and generated valuable input on both programming and site circulation. Community members expressed enthusiasm about seeing program placement within the proposed buildings and noted their appreciation for the phased approach, which allows for continuity of programs during construction. The discussion was lively and engaging, with particular interest around the café, the outdoor amphitheater, parking access, and pedestrian and bicycle circulation pathways. The feedback gathered informed refinement of the preferred concept plan. The full meeting summary is included on the project website37.

September 23, 2025 Parks and Recreation Commission Meeting On September 23, 202538, the Parks and Recreation Commission (PRC) received a presentation on the refined Cubberley Community Center Master Plan concept following the third and final community meeting held on September 17, 2025. Commissioners reviewed updates on program placement, phasing, and site circulation, and were asked 37 Community Meeting #3 Summary; www.paloalto.gov/files/assets/public/v/1/community- services/cubberley-project/2025.11.11_m3-summary.pdf
38 Staff Presentation, September 23, 2025;
https://cityofpaloalto.primegov.com/viewer/preview?id=0&type=8&uid=efbb1418-4bbe-49b2-b786- 165e29017ca3
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to provide input on the same questions posed to the community: what is working well, what could be improved, and what creative ideas could enhance the campus experience.

Commissioners engaged in a thoughtful discussion that highlighted both enthusiasm for the project and areas for refinement. They praised Phase I improvements—especially the café, amphitheater, and integration with existing buildings—and noted strong community excitement about program continuity during construction. Key suggestions included lighting for the tennis courts, enhancing pedestrian and bicycle circulation, and incorporating creative placemaking features such as gardens and artistic infrastructure.

Concerns focused on the cost and feasibility of large-scale facilities (e.g., the partial underground parking), potential displacement impacts in Phase I, and how to communicate a phased plan if bond funding only covers the first phase. Commissioners also stressed sustainable design choices and raised questions about circulation, office space, gym design, and pool impacts.

Overall, the PRC expressed appreciation for the progress made and reinforced the importance of balancing community goals, funding realities, and long-term sustainability.

October 20, 2025 City Council Meeting
Staff presented an updated concept plan41 with an emphasis on the first phase of site development showing a combination of renovated and new building construction. The focus on the first phase recognizes that funding will likely be a limiting factor in full site redevelopment. At this meeting, staff shared objectives and themes for the second community poll to determine voter support for a bond or tax measure to finance the land purchase, and the extent of how much voters are willing to pay annually. Following the October 20 meeting the second poll was conducted.

December 15, 2025 City Council Meeting
City Council received an update on the Cubberley Community Center Project42, including results from the second community poll and discussed next steps. Council discussed key findings from Poll #2, which indicate broad voter support for the City acquiring the Cubberley property and willingness to invest in limited funding focused on basic repairs, safety upgrades, and accessibility improvements. Results showed relatively higher support for parcel tax and sales tax funding mechanisms, with a $250 average annual parcel tax testing above 50% support and a 0.5% sales tax increase capable of supporting significantly greater capital financing, pending state authorization. 41 City Council, October 20,2025; Agenda Item #1; SR #2503-4353, https://portal.laserfiche.com/Portal/DocView.aspx?id=231071&repo=r-704298fc 42 City Council, December 15, 2025; Agenda Item #3; SR #2503-4355, https://portal.laserfiche.com/Portal/DocView.aspx?id=246305&repo=r-704298fc Item 14
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Council expressed alignment with staff and the Ad Hoc Committee’s recommendation to continue refining ballot measure options and to launch a third poll in January 2026 to further test potential parcel tax and sales tax scenarios.

Overall, Council affirmed the importance of a phased, long-term approach to redevelopment that balances community priorities, funding realities, and opportunities for partner contributions, while continuing to advance the master plan toward presentation in March 2026. Following the December 15 meeting, the third poll was finalized and released in early January 2026.

February 9, 2026 City Council Meeting
City Council received an update on the Cubberley Community Center Project45, including results from the third community poll and progress on public-private partnerships to advance key components of the project. Staff shared that, in anticipation of possible Council consideration of a November 2026 ballot measure to fund the purchase of seven acres from PAUSD and advance all or portions of the project, three of four planned community polls have been completed. Results show both parcel tax and sales tax funding options testing at approximately 48% support—an improvement from the prior poll, though still below the thresholds required for approval (two-thirds for a parcel tax and a simple majority for a general-purpose sales tax). Despite these challenges, Councilmembers remained optimistic, noting that support levels are approaching viability, particularly for a sales tax option, and that emerging public-private partnerships could strengthen the overall funding strategy.

Council also discussed partnership efforts being coordinated by staff and the Cubberley Ad Hoc Committee. A partnership with TheatreWorks was presented and would create a two-theater complex through renovation of the existing Community Theatre and Pavilion, with new construction to support TheatreWorks, and upgrades to the Cubberley Theatre for continued community use, including new restrooms, an expanded lobby, and improved accessibility. Staff recommended approval of a Letter of Intent with TheatreWorks to formalize this joint commitment, which Council approved. In addition, staff shared that the Friends of the Recreation and Wellness Center and the City are continuing to develop terms for an agreement to advance a future recreation and wellness center with new multi-court gymnasium space on the Cubberley campus.

Avenidas Executive Director, Kristina Lugo, was also in attendance and publicly 45 City Council, February 9, 2026; Agenda Item #11; SR#2512-5774, https://cityofpaloalto.primegov.com/viewer/preview?id=0&type=8&uid=fd6f9939-83a3-4ea7-817a- e7719c9194a4
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expressed interest in exploring partnership opportunities with the City at the Cubberley site.

Council directed staff to develop Poll #4 to include information about the two major anchor tenants, explore community sentiment around expanding City programs at Cubberley, and provide clearer messaging about community benefits and funding strategies. Council also directed the City Manager to discuss contingency plans and alternative acquisition terms with the School District, and asked staff to return with options for acquiring the seven acres through mechanisms other than a ballot measure.

March 11, 2026 Planning and Transportation Commission and Architectural Review Board Special Joint Meeting
The Planning and Transportation Commission (PTC) and Architectural Review Board (ARB) held a special joint meeting to receive a presentation from staff47 on the proposed Cubberley Conceptual Master Plan and the Draft Initial Study/Mitigated Negative Declaration (IS/MND) prepared under the California Environmental Quality Act (CEQA).

Staff presented the City’s long-term vision to redevelop approximately 15 acres of the Cubberley campus, including the potential purchase of seven acres from the Palo Alto Unified School District (PAUSD) for $65.5 million. Staff noted that the purchase and implementation of the plan will depend on identifying funding sources, which may include a potential sales tax ballot measure in November 2026, development impact fees, grants, philanthropic contributions, and public-private partnerships.

Staff requested that the commissions review the Draft IS/MND and provide a recommendation to the City Council regarding adoption of the Conceptual Master Plan.

City Council is tentatively scheduled to consider adoption of the plan in April 2026, while staff continue advancing environmental review, partnership discussions, and funding and financing strategies.

Commissioners and Board members discussed topics including project phasing and funding, the status of the PAUSD lease and land acquisition, parking and circulation, recreation facilities such as the proposed pool, sustainability goals, long-term campus connectivity, elements of the site layout, the potential renovation versus replacement of existing buildings, and opportunities for philanthropic funding. Following discussion and public comment, both the Planning & Transportation Commission and Architectural Review Board voted separately, and unanimously (5–0) to recommend that City Council adopt the Cubberley Conceptual Master Plan, with a list of considerations for Council 47 Staff Presentation, March 11, 2026;
https://cityofpaloalto.primegov.com/viewer/preview?id=0&type=8&uid=c9289f37-122b-455b-959c- febb294cc3c1
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and staff to evaluate as the project moves forward into future phases of planning and design. Below are the approved motions:

Architectural Review Board:

Moved by Board member Rosenberg, seconded by Board member Jojarth to move the staff recommendation and to recommend that City Council consider the following:
- Consider competition friendly pool size of 50 meters by 25 yards - Consider the phasing within Phase 1
- Revisit the cost effectiveness of buildings S, T, V, E, F, C, D - Consider the value of saving Building I, versus reutilizing that space as part of another program
- To review bike and pedestrian routes including the intent and use of the diagonal promenade as well as defining the existing safe routes to school on the property - To clarify that the City lease agreements with PAUSD provide flexibility to the City to make parking improvements including landscaping and paving and have a sufficient duration to adequately provide access to the improvements contemplated in the Master Plan
- Modify the preface and executive summary to include language from page 52 about flexibility and to add the words modern, safe, and sustainable to the project goals
- To encourage a formal process to raise funding from private sources - Review adequacy of parking
Planning and Transportation Commission:

Moved by Commissioner Templeton, seconded by Commissioner Chang to move the staff recommendation and to recommend that City Council consider the following:
- Consider competition friendly pool size of 50 meters by 25 yards - Revisit the cost effectiveness of buildings S, T, V, E, F, C, D - To review bike and pedestrian routes including the diagonal promenade and the existing safe routes to school on the property
- To clarify that the City lease agreements with PAUSD provide flexibility to the City to make parking improvements including landscaping and paving and have a sufficient duration to adequately provide access to the improvements contemplated in the Master Plan
- Modify the preface and executive summary to include language from page 52 about flexibility and to add the words modern, safe, and sustainable to the project goals
- To encourage a formal process to raise funding from private sources Item 14
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March 24, 2026 Parks and Recreation Commission Meeting
The Parks and Recreation Commission received a presentation from staff49 on the proposed Cubberley Conceptual Master Plan and the Draft Initial Study/Mitigated Negative Declaration (IS/MND) prepared under the California Environmental Quality Act (CEQA), and results of the second and third community polls. Staff presented the City’s long-term vision to redevelop approximately 15 acres of the Cubberley campus, including the potential purchase of seven acres from the Palo Alto Unified School District (PAUSD) for $65.5 million. Staff noted that the purchase and implementation of the plan will depend on identifying funding sources, which may include a potential parcel or sales tax ballot measure in November 2026, development impact fees, grants, philanthropic contributions, and public-private partnerships.

Staff requested that the commission review and consider the Draft IS/MND and provide a recommendation to the City Council regarding adoption of the Conceptual Master Plan. City Council is scheduled to consider adoption of the plan in April 2026, while staff continue advancing environmental review, partnership discussions, and funding and financing strategies.

Commissioners expressed strong appreciation for the work completed to date and shared overall excitement about the vision and direction of the project. Discussion included the use of a Mitigated Negative Declaration under CEQA and the level of detail at the conceptual stage, particularly related to architectural and landscape design, including tree preservation and future planting strategies. The Commission also considered key program elements such as recreation amenities and amphitheater capacity, as well as project phasing, funding flexibility, and timelines tied to land acquisition and partnership opportunities. Commissioners also discussed construction impacts on existing operations and opportunities to support the project through grants, partnerships, and continued community engagement and activation efforts. Following discussion and public comment, Commissioner Smith made a motion to recommend the City Council adopt the Cubberley Conceptual Master Plan, it was seconded by Vice Chair Wei, and the vote passed (5–0) with 1 commissioner choosing to abstain.

May 18, 2026 City Council Meeting
Staff presented the Draft Conceptual Master Plan, Mitigated Negative Declaration, and results of the fourth community poll to the City Council. Staff’s recommendation to 49 Staff Presentation, March 24, 2026;
https://cityofpaloalto.primegov.com/viewer/preview?id=0&type=8&uid=247caade-d1e4-47ca-b8e1- bc3f8694739e
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adopt a Resolution adopting the Mitigated Negative Declaration and the Cubberley Conceptual Master Plan was approved by Council unanimously. Staff also recommended the Council provide direction on next steps to advance the project.

Following a presentation on the fourth-round polling results, the Council directed staff to pursue a ½ cent sales tax measure on the November 2026 ballot.

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Attachment D - Summary of
Actions to Date and the
History of the Cubberley
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CITY COUNCIL
Staff Report
From: City Manager
Report Type: ACTION ITEMS
Lead Department: Planning and Development Services
Meeting Date: June 8, 2026
Report #: 2603-6116
TITLE
San Antonio Road Area Plan Core Scenario and Transportation Analysis Work Plan. CEQA Status:

Exempt under CEQA Guidelines Section 15262.

RECOMMENDATION
Staff recommends that the City Council:

1. Endorse the core scenario for the San Antonio Road Area Plan as the basis for Phase 3 analysis, modified as needed to reflect Council priorities; and

2. Authorize the transportation analysis described in Attachment A, to be completed and presented to Council in Q4 2026 alongside a recommended land use and transportation plan.

EXECUTIVE SUMMARY
The San Antonio Road Area Plan is a City-led initiative to develop an integrated land use and transportation vision for the 275.3-acre corridor along San Antonio Road, with goals of increasing housing production, improving multimodal mobility, creating new outdoor spaces, and supporting commercial vitality. Based on feedback received at the April 6, 2026 study session, staff has developed a core scenario -- a defined set of land use and mobility assumptions -- to serve as the foundation for Phase 3 analysis. Council is asked to endorse the core scenario and authorize the transportation analysis that will evaluate its implications.

Endorsing the core scenario today is not a final land use decision. It is the step that allows staff to focus analytical resources on a well-grounded set of assumptions so that a rigorous transportation analysis can be conducted. That analysis will validate, refine, or adjust the core scenario as needed, and will be presented to Council in Q4 2026 alongside a recommended plan for a decision on the preferred alternative to carry into environmental review. If, after reviewing the Q4 analysis, Council wishes to pursue a different direction, the project team will adjust accordingly.

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The core scenario and the transportation analysis work plan are described in Attachment A. A summary is provided in the Analysis section of this report.

BACKGROUND
The City of Palo Alto's adopted policies for the Plan Area promote greater housing diversity, stronger pedestrian and bicycle connectivity, street and building designs that support safety and active transportation, and strategies to address the City's jobs-housing imbalance. The San Antonio Road Area Plan is a direct result of the Housing Element's direction for the San Antonio Road corridor, which calls on the City to facilitate neighborhood planning that integrates housing with safe multimodal transportation and provides access to amenities, outdoor space (including parks, plazas, playgrounds, etc.), placemaking improvements, and mitigations for environmental impacts. Recent zoning changes and programs such as the Housing Incentive Program have substantially increased development capacity along San Antonio Road, anticipating the transformation of this corridor into mixed-use neighborhoods with safe access to transportation, employment, community services, and recreation.

The Area Plan's vision statement reflects these goals:

The vision for San Antonio Road is of a vibrant mixed-use corridor connecting pedestrian-oriented neighborhoods where people of all incomes can live, work, and thrive; where safe streets, transit, and green infrastructure can support shorter commutes, reliable transit, and climate resilience; and where a dynamic economy attracts new businesses while sustaining local shops and services that define the community.

Citywide Housing Context
The San Antonio Road corridor is one of several locations across the City where the City is actively planning for additional housing growth. Other initiatives underway include the Downtown Housing Plan centered on University Avenue, Senate Bill 79 implementation within a half-mile of the City's three Caltrain stations, expansion of the El Camino Real Focus Area, GM and ROLM zone focus areas, and the Housing Incentive Program and Affordable Housing Incentive Program, which apply to strategic locations citywide. Together, these efforts reflect a deliberate citywide strategy to meet the City's current and future housing needs by directing growth to transit-accessible locations throughout Palo Alto.

April 6, 2026 Study Session
At its April 6, 2026 Regular Meeting, the City Council held a study session on the San Antonio Road Area Plan, receiving an update on the corridor and reviewing a set of draft land use and mobility alternatives.1 The session marked a pivotal milestone in Phase 2 of the planning 1 April 6, 2026, City Council Meeting:
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process, with staff presenting alternatives that explored meaningful tradeoffs across building heights and residential densities, the role of office development in the CTI (Commercial Street, Transport Street, and Industrial Avenue) sub-area, bicycle and pedestrian facility design, and the distribution of parks and ground-floor retail across four primary sub-areas: Central San Antonio, South Fabian, North Fabian, and CTI. Financial analysis presented at the session identified the 90-foot mid-rise building type as the most financially feasible near-term option for apartment housing production with townhome development being the most feasible overall. Office development in the CTI sub-area was identified as a potential mechanism to improve project feasibility and fund public benefits such as parks and infrastructure.

Council's discussion surfaced several areas of general alignment alongside topics where perspectives varied. On building heights, 90 feet was noted by several members as a reasonable point of reference with heights transitioning down near existing single-family neighborhoods.

Some members also indicated interest in setting minimum densities high enough to discourage an overabundance of townhomes. On office, the predominant direction was skepticism toward net new office growth beyond replacement or conversion of existing lower-density space, though some noted that limited office in the CTI sub-area could help fund parks and infrastructure. Retail drew mixed reaction, with general interest in requirements for primary sub-areas and more flexibility elsewhere. Parks were widely identified as a priority, with a preference for fewer, larger consolidated spaces. Mobility and traffic generated the most consistent concern -- members pointed to the need for a traffic study before finalizing land use decisions and expressed interest in prioritizing bike and pedestrian improvements alongside new development.

In response to Council's direction, staff and the consultant team have developed a core scenario that reflects the areas of alignment that emerged from the April 6 session. The core scenario establishes a coherent set of land use and mobility assumptions -- including building heights, residential and commercial floor area, outdoor space, ground-floor retail, and near- term mobility improvements -- described in detail in Attachment A. Attachment A also identifies a defined set of concepts and alternatives that will be studied alongside the core scenario, providing a structured framework for the analysis ahead. Endorsing the core scenario at this meeting does not constitute a land use decision -- rather, it focuses the City's analytical resources on a well-grounded set of assumptions so that a targeted transportation analysis can be conducted. That analysis will in turn validate, refine, or adjust the core scenario's land use assumptions, and will be presented to Council alongside a recommended plan framework later this year. Council is asked to endorse the core scenario as the basis for this work -- modified as needed to reflect Council priorities -- and to authorize the transportation analysis that will follow.

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ANALYSIS
Core Scenario Overview
The core scenario covers land use, outdoor space, and mobility. Its purpose is not to finalize a plan but to establish a defined starting point that focuses the transportation analysis and subsequent policy development. Attachment A provides full detail, including the alternative concepts that will be examined alongside the core scenario. Attachment B provides background on how land use and transportation planning are integrated in the Area Plan framework, including the tradeoffs between office, residential, and mixed-use development types. The following summarizes the key elements for Council's consideration.

Building Heights and Density
The core scenario establishes 90 feet (8 stories) as the height standard across all primary sub- areas – CTI, North Fabian, South Fabian, and Central San Antonio – reflecting the most financially feasible building type under current market conditions for near-term apartment housing production, which is consistent with development applications already in the pipeline.

Where primary sub-areas abut lower-density residential neighborhoods, a 60-foot maximum applies as a transition, with setbacks and step-downs as additional tools. Secondary sub-areas and areas of stability maintain existing height limits.

To provide a meaningful basis for comparison, the transportation analysis will evaluate the core scenario against a current-zoning baseline – not simply existing conditions, but the development that could reasonably be expected to occur under current zoning. This comparison isolates the transportation effects attributable to the higher household densities the core scenario enables, which is the primary driver of changes in travel demand. Under current zoning, the plan area could yield up to approximately 5,700 residential units. The core scenario – by increasing allowed heights and densities in key areas – could yield up to approximately 6,700 units, roughly 1,000 more.

Office and Retail
New office and R&D is limited to the CTI sub-area, focused on conversion of existing older commercial and industrial space to Class A office at a scale intended to maintain employment levels while reducing the City's jobs-housing imbalance. Retaining a meaningful commercial component in the plan area also supports the City's long-term fiscal health. Higher-density residential development advances important housing and State policy goals but tends to generate a more modest return to the City's General Fund relative to commercial uses; without some equivalent growth in commercial activity, per-capita General Fund revenue can decline over time, placing pressure on the City's ability to maintain service levels. Preserving office development in the plan area helps balance this fiscal equation as the corridor grows. The core scenario includes 750,000 square feet of office and R&D space in the CTI sub-area (gross, not net new), with an overall net reduction in commercial square footage across the plan area.

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the San Antonio Road/Middlefield Road intersection -- and is designed to be co-located with outdoor space to support walkable, community-oriented neighborhoods. Where retail is not required, expanded ground-floor use allowances encourage active frontages without mandating retail.

Outdoor Space and Parks
The core scenario targets a 3 to 3.5-acre park in the North Fabian/Maxar area and a minimum of 1.5 acres of consolidated outdoor space in the CTI sub-area, complemented by paseos and pedestrian connections throughout. The goal is that all plan area residents are within a 10- minute walk of a park or publicly accessible outdoor space. The City currently owns no parcels within these areas and will need to work with property owners and developers to achieve new outdoor spaces as the area redevelops.

Mobility
The mobility framework addresses both near-term and longer-horizon improvements. In the near term, the core scenario prioritizes lower-cost, faster-to-implement measures -- such as removal of on-street parking to create street-level separated bike lanes and targeted restriping -- that can be delivered efficiently while preserving the ability to build out more comprehensive solutions over time. More advanced future options, including sidewalk-level separated bikeways and multi-use paths that would require acquisition of easements or right-of-way or reconstruction of the existing curbs, are treated as longer-horizon improvements within the framework. Across the corridor, the strategy prioritizes a connected low-stress bike network, improved pedestrian access, enhanced connections to the San Antonio Caltrain station, a microtransit strategy, and one or more multimodal mobility hubs at key intersections. Vehicle circulation and parking management strategies focus on maintaining local access, reducing cut- through traffic, and reallocating curb space more efficiently as development occurs.

Transportation Analysis
A central concern raised at the April 6 session was the need to understand traffic implications before committing to a land use direction. This report directly responds to that concern. Rather than asking Council to decide on a land use plan today, staff is asking Council to endorse a defined core scenario so that a focused transportation analysis can proceed. That analysis will evaluate the core scenario against the current-zoning baseline using transportation-related metrics -- including vehicle trip generation, mode share, vehicle miles traveled, and transit viability -- to quantify the relative benefits and tradeoffs of each approach. The evaluation will also assess multimodal access for residents to key destinations and the anticipated effects of proposed mobility improvements. Critically, the results of this analysis will directly inform whether the core scenario's land use assumptions should be confirmed, refined, or adjusted in scale before a final recommendation is made. Staff will return to Council in Q4 2026 with a recommended land use and transportation plan framework, supported by this analysis, for a Item 15
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decision on the preferred alternative to carry into the administrative draft of the Area Plan and environmental review.

NEXT STEPS
Should Council endorse the core scenario and authorize the work plan described above, staff will return in Q4 2026 with the results of the Phase 3 analysis. At that time, staff will seek direction on completing the administrative draft of the Area Plan and initiating environmental review under CEQA. Council's action today is not binding -- if, after reviewing the Q4 analysis, Council wishes to pursue a different direction, the project team will adjust accordingly. A confirmed plan framework is necessary to begin the administrative draft and environmental review on schedule and within budget.

The Q4 presentation will include:
• Refinements to the core scenario with specific design and policy direction for each sub- area, including draft standards for height, density, and built form • Recommendations on the amount and location of office development permitted in the plan area, and an assessment of associated public benefits • Recommendations on retail locations and types best suited to serve existing and future residents
• Methods for achieving meaningful outdoor space in the plan area, including funding and delivery mechanisms
• Transportation analysis findings, including a qualitative and quantitative assessment of the core scenario against the current-zoning baseline using metrics such as vehicle trip generation, mode share, vehicle miles traveled, and transit viability, as well as an assessment of multimodal access for residents and the effects of proposed mobility improvements
• Resilience and climate adaptation policies
• Affordable housing and equity strategy
• Preliminary recommendations for utility infrastructure improvements based on anticipated land use
• High-level cost estimates and funding mechanisms for key capital improvements, including street improvements, parks, utility infrastructure, and transit enhancements • Development standards addressing air quality for projects in proximity to the freeway

POLICY IMPLICATIONS
Several of the City's 2030 Comprehensive Plan policies relate directly to the Area Plan. Policies L-1.10, L-2.2, L-2.3, L-2.4, L-2.6, L-2.11, L-2.12, and L-3.4 relate to growth management, sustainable communities, and neighborhood character. Policies L-4.5, L-4.16, and L-5.4 relate to commercial centers and employment districts. Policies L-6.6 and L-6.7 relate to the design of buildings and public space. Policies L-8.6, L-9.3, L-9.6, and L-9.7 relate to parks, streets, and Item 15
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public spaces. Program L2.4.1 required the City to amend the Housing Element to increase housing sites along San Antonio Road between Middlefield Road and East Charleston Road.

The 2023-2031 Housing Element includes Program 6.6(C) calling for the City to prepare an area plan for the San Antonio Road Corridor and increase housing opportunities. The Housing Element identifies 53 Housing Opportunity Sites within the plan area and emphasizes increasing housing in close proximity to the San Antonio Caltrain station. The Housing Incentive Program, adopted in 2019 and updated in 2025, currently covers significant parts of the plan area. The Area Plan is aligned with the Bicycle and Pedestrian Transportation Plan as currently drafted, including creating a pedestrian zone along San Antonio Road and incorporating Class IV separated bikeways along the corridor. The City's Sustainability and Climate Action Plan goals -- including reducing total VMT by 12%, increasing the active transportation and transit mode share for local work trips from 19% to 40%, increasing tree canopy to 40% citywide coverage, and expanding green stormwater infrastructure -- are all advanced by the Area Plan's approach.

FISCAL/RESOURCE IMPACT
The contract with Raimi + Associates, now part of Alta Planning + Design, to develop the Area Plan was approved by the Council on March 10, 2025, with an amount not to exceed $1,979,902. As of May 1, 2026, $787,298 of this budget has been spent. The project is approximately one-third of the way through the schedule and currently on budget for the tasks completed to date. Funding for the FY 2027 portion of the contract is included in the FY 2027 Proposed Operating Budget, anticipated to be adopted by the City Council on June 15, 2026.

There are no additional budget line items associated with this action item; however, the management of the project and extensive community engagement require a significant amount of staff time.

The long-term land use decisions will have a marked impact on the financials of the City and it’s tax revenues and population service needs. Balancing revenue generating land uses with critical housing development is important to consider.

STAKEHOLDER ENGAGEMENT
Community engagement is central to the success of this planning effort. The engagement strategy includes a dedicated webpage, social media and email announcements, a Community Advisory Group (CAG) and Technical Advisory Group (TAG), stakeholder interviews, community workshops, surveys, and pop-up events at City gatherings and Farmers Markets. CAG meetings were held in August 2025, January 2026, and February 2026, with additional meetings planned through 2028. Community workshops were held in October 2025 and March 2026, with one additional workshop planned in the next phase. Online surveys ran in October 2025 and February/March 2026.

During Phase 2, the project team presented to the following advisory bodies:

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• Pedestrian and Bicycle Advisory Committee -- March 3, 2026 • Human Relations Commission -- March 17, 2026
• Architectural Review Board -- March 19, 2026
• Parks and Recreation Commission -- March 24, 2026
• Planning and Transportation Commission -- March 25, 2026 • City/School Transportation Safety Committee -- March 26, 2026 • Youth Council -- March 31, 2026

ENVIRONMENTAL REVIEW
The actions recommended in this report are exempt from review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15262: a project involving only feasibility or planning studies for possible future actions that has not been approved, adopted, or funded would not have significant impact on the environment. The City will prepare an environmental analysis for the San Antonio Road Area Plan when more project specifics have been identified.

ATTACHMENTS
Attachment A: San Antonio Road Area Plan Core Scenario
Attachment B: San Antonio Road Area Plan Integrated Land Use and Mobility Approach APPROVED BY:

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1 San Antonio Road Area Plan Core Scenario
The following topics are addressed in this attachment:

Overview ....................................................................................................................................... 1 Land Use ....................................................................................................................................... 2 Growth Projections ....................................................................................................................... 5 Outdoor Space ............................................................................................................................ 11 Mobility ....................................................................................................................................... 14 Core Scenario and Work Plan Summary ...................................................................................... 21 Overview
The proposed work plan for phase three of the project, described in this attachment, focuses on a single core scenario (a high-level set of standards and development concepts) based on feedback received from the City Council, advisory bodies, and the public. For portions of the Area Plan for which there was no consensus, or for which Council members requested additional information, staff will also analyze additional concepts that the project team will explore.

The Area Plan will create a 20-year vision for the San Antonio Road corridor, with a focus on four main goals:
• Create a more livable community: Encourage residential and mixed-use development, with housing at all income levels, and access to well-designed public spaces and neighborhood services and retail.
• Improve mobility and safety: Enhance streets, sidewalks, bike lanes, and transit connections for easier and safer travel for all users.
• Support sustainability: Promote development with fewer, shorter commutes, integrate green infrastructure, increase tree canopy, and build resilience to climate change. • Enhance economic vitality: Attract new businesses, strengthen Palo Alto’s economy, and preserve valued local businesses.

To achieve these goals, staff recommends an approach which divides the plan area into sub areas and then separates these into areas of change and areas of stability. Land use priorities are proposed for the areas of change, while mobility priorities apply to the entire plan area.

Combined, staff refers to the policy recommendations for land use and mobility provided in this report as the core scenario. The core scenario includes how to develop new neighborhoods in the Commercial Street, Transport Street, and Industrial Avenue (CTI) area and along Fabian Way, as well as new development along San Antonio Road itself. There will be a focus on how Item 15
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2 to create new outdoor and community spaces, integrate local-serving retail and employment, create connections to existing and new transit, and improve bike and pedestrian safety and connectivity.

Land Use
The core scenario divides the plan area into
Primary Sub-Areas, Secondary Sub-Areas, and
Areas of Stability (refer to Figure A).

The Primary Sub Areas include the CTI (Commercial
Street, Transport Street, Industrial Avenue) area,
North Fabian, South Fabian, and Central San
Antonio. These areas have the greatest potential
for redevelopment and can contribute to creating
new neighborhood-serving amenities like outdoor
space and retail.

The Secondary Sub-Areas include East and West
Bayshore, and Alma Street. These areas have
limited redevelopment potential in the near term.

Areas of Stability include Greenhouse, Green
Meadow, and South San Antonio; areas that are
100% built-out with low redevelopment potential.

While Green Meadow is not part of the plan area, parts of Green Meadow and South San Antonio are within the impact area of Senate Bill 79 (2025, SB 79), which allows higher density for projects meeting specific criteria. Utilization of SB 79 in these neighborhoods, however, is likely very low due to existing conditions in these areas.

The land use direction for the Plan Area is summarized below, addressing identified issues and opportunities in the Plan Area:
• Create new neighborhoods in the CTI and North Fabian sub-areas, focusing on appropriate land use mixes to encourage housing diversity, while encouraging infill residential development in the Central San Antonio and South Fabian sub-areas. • Focus outdoor space, neighborhood-serving retail, services, and amenities in new neighborhoods, to create spaces for community interaction and to promote walkability. • Create smaller, walkable blocks where possible.
• Infill San Antonio Road with residential uses, supported by pedestrian-focused public realm improvements such as separated bike lanes (also known as cycle tracks), shade trees and vegetation, etc.

Figure A. Sub-Areas for Alternatives
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3 Housing
Reflecting feedback received from the Council study session and given high housing demand and developer interest in the plan area, the core scenario will examine increasing allowed maximum building heights to 90 feet in a way that allows for a height transition to low-density residential neighborhoods. Under the core scenario, new development south of San Antonio Road (including the CTI neighborhood) as well as areas between Fabian Way and San Antonio Road would allow buildings up to 90 feet in height, with remaining areas remaining at a maximum of 60 feet in height (refer to Figure B).

Increasing allowed heights to 90 feet allows maximizing midrise buildings, the most typical feasible building type under current market conditions, and consistent with development applications received for the south side of San Antonio Road. This will encourage redevelopment and could deliver new housing and amenities sooner. However, the Area Plan will also include policies or regulations to minimize abrupt height transitions to adjacent, lower- density residential neighborhoods through a 60-foot maximum height in some areas, and possible setbacks and step-downs as additional tools. Based on comments heard at the April 6, 2026, study session with Council, the project team will evaluate this core scenario against an alternative where the zoning does not change and the entire area remains at a maximum of 60 feet in height in order to understand the transportation-related effects between the two scenarios (refer to the Mobility section for more information).

The work plan will also include an exploration of potential effects if limited commercial development is allowed to exceed 90 feet in the CTI neighborhood, which could increase project profitability and could provide for additional community benefits (such as public outdoor space and affordable housing), as well as the potential increasing minimum densities in North Fabian sub area (Maxar site) to incentivize greater housing variety and affordability.

Commercial Development – Office and Research & Development (R&D) The core scenario will include development of parameters for office/R&D space in the CTI neighborhood. The City has long been an employment center, which has benefited the City financially but has also resulted in a jobs/housing imbalance. In order to maintain the economic health of the plan area, the core scenario will support the conversion of existing commercial (office, R&D, light industrial, and manufacturing space) to class A office/R&D space. This will provide the benefit of refreshing the City’s commercial building stock, allowing it to remain competitive when attracting employers, while also leveraging developer benefits for the City.

The level of office space proposed in the core scenario, when combined with the housing units allowed, will reduce the City’s jobs/housing imbalance.

The project team will develop a methodology to calculate the amount of new office/R&D space that will maintain employment levels, explore mechanisms for regulating office/R&D space, develop a methodology to assess community benefits from commercial development, and determine if office/R&D space should be restricted to specific parcels of the CTI sub-area.

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5 Commercial Development – Retail
The core scenario will include requirements related to local-serving retail within the plan area.

The City has, and is adjacent to, several regional retail draws such as the Stanford Shopping Center, El Camino Real corridor, and shopping centers in Mountain View and East Palo Alto. The Area Plan will therefore not propose another regional drawing retail center, but instead encourage local-serving retail to support the existing and future neighborhoods within and nearby the plan area. The core scenario will explore the creation of retail nodes that concentrate these uses where they are most needed, the CTI and North Fabian sub-areas and the intersection of San Antonio Road and Middlefield Road, while allowing (but not requiring) retail in other locations in the Area Plan. Neighborhood-serving retail will be needed to aid in reducing reliance on personal vehicles by providing daily necessities close to new housing. This retail design will work in conjunction with the outdoor space design to create walkable, mixed- use, community-oriented neighborhoods by encouraging “third places” for community gathering by clustering outdoor spaces, retail, and other amenities. Size standards will ensure that new outdoor spaces are well-designed, usable, and accessible for all (refer to the section on outdoor space).

The project team will also explore allowing expanded commercial uses for the ground floor in buildings where neighborhood-serving retail is not required. Retail is most successful in locations with specific characteristics, and requiring retail as ground floor use in all new projects could be a barrier for redevelopment or result in a retail vacancy problem. To promote active ground floors in areas where retail is not critically needed, the range of allowed uses can be expanded to provide developers with more flexibility.

Overall, the project team will analyze and confirm key locations for required retail, including the minimum amount of retail needed to support existing and future residents, and assess the location and amount of (new and existing) retail recommended for the Area Plan to support more ped/bike trips and reduce vehicle travel.

Growth Projections
Feedback provided in the Council study session on April 6, 2026, included concern from both residents and Councilmembers about the projected growth represented in the materials presented. This has led the project team to conduct additional analysis related to both current zoning and the proposed core scenario. This analysis included some additional assumptions, described below:
• To simplify the comparison of the no plan/current zoning and core scenarios, the analysis looks at a 100% build-out of the sites identified for potential redevelopment Item 15
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6 in all the sub-areas except for CTI, which has smaller parcel sizes. The build-out for CTI is assumed to be 50% of the sub-area for residential uses.1

1 Note on Buildout Assumptions: Tables A and B reflect 100% buildout of all sub-areas. In practice, buildout rates vary by scenario and sub-area. Under current zoning (Table A), an estimated 60% buildout across much of the plan area can be expected, due to existing parcel configurations, market conditions and various redevelopment incentives. North Fabian is an exception – the planned loss of Maxar's office and R&D operations make full – or nearly full – conversion to housing likely under either scenario. CTI is expected to reach approximately 50% of capacity under current zoning, meaning fewer residential units and more retained commercial space than Table A reflects. Under the core scenario (Table B), overall buildout is expected to increase to approximately 75% across much of the plan area, with North Fabian performing similarly to Table A and CTI seeing meaningfully greater redevelopment activity due to anticipated lot consolidation and development incentive structures. This higher level of redevelopment is also expected to generate increased access to open space and community gathering places, additional affordable housing, greater capacity to help fund corridor mobility improvements, and increased likelihood of successful neighborhood-serving retail and amenities that will support creating a walkable district and reduce vehicle trips. Staff will be prepared to discuss these assumptions in greater detail at the June 8 hearing.

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7 Figure C. Potential "change parcels" in Plan Area
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8 • The analysis assumes maximum allowed densities for calculating potential yield. For the Maxar site, the minimum gross density is analyzed based on the existing market demand for lower-density for-sale residential development.
• The analysis assumes that some existing commercial/industrial uses may be lost as part of the redevelopment. While not shown in the build-out calculations, the plan will require a certain amount of neighborhood-serving retail and services (the amount is to be determined after further analysis).
• The analysis has refined the list of potential redevelopment sites and updated the yield of pipeline projects as per new application submittals received by May 1, 2026.

Combining both residential and commercial development in the core scenario, and other factors such as current use and ownership, the project team has created a map of which parcels are most likely to redevelop over the next 25 years (Figure C). This analysis, combined with proposed standards under the core scenario and existing pipeline development applications, results in some assumptions about the maximum potential build out under both current zoning (60 feet/five stories) and the core scenario (increase to 90 feet/eight stories in some areas). For purposes of this analysis, the current baseline reflects the development that could reasonably be anticipated under existing conditions, not simply existing conditions, but the redevelopment likely to occur given current zoning, market demand and demonstrated developer interest. As these parcels are under private ownership, there is no guarantee that these parcels will be fully built out during the Area Plan time frame.

Contributing factors to potential development include:
• Palo Alto’s Housing Element (2023-2031) has identified 53 opportunity sites and allocates 1,559 new housing units to the Plan Area, representing 26% of the citywide housing allocation.
• The GM and ROLM zoned parcels within the Area Plan are designated as Focus Area, allowing for more housing production within the Area Plan. Currently, GM and ROLM allow commercial development but very limited office development. • The City’s HIP also applies to a portion of the Area Plan, substantially increasing the development capacity along the San Antonio Road.

Maximum development under current zoning (60-foot building height, 90 dwelling units per acre (du/ac) density) yields a total of 5,700 residential units, and a loss of up to 1,484,000 sq ft of existing commercial and industrial uses. Table A below shows the development capacity possible under current zoning for each sub-area. For simplicity, the table does not include potential ground floor uses and potential minimum retail requirements in the CTI and Maxar redevelopment areas.

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9 Table A. Current Zoning Potential Development

Sub-Areas
Existing
Commercial
Area
Existing
Residential
Units
Existing Zoning*
Commercial Net
Change
Residential Net
Change (units)
CTI Neighborhood 528,800 sf 0 -499,000 sf 1,200
North Fabian 683,000 sf 0 -599,000 sf 1,500
South Fabian 177,000 sf 384 -177,000 sf 800
Central San Antonio 449,000 sf 0 -209,000 sf 1,900
East Bayshore 414,000 sf 0 No change No change
West Bayshore 35,000 sf 0 No change 200
Greenhouse 0 sf 228 No change No change
South San Antonio 99,000 sf 125 No change No change
Alma Street 13,600 sf 65 No change 100
Total 2,399,400 sf 802 units -1,370,000 sf 5,700 units

The core scenario includes similar heights and residential densities as the current zoning in some areas, while increasing building heights to 90 feet and 135 du/ac in some areas, while also including 750,000 square feet of new office/R&D space in the CTI neighborhood (gross, not net new). This scenario could yield up to a maximum of 6,700 residential units, an increase of 1,000 units over what current zoning allows, and 750,000 square feet of new office/R&D space with a net loss of 734,000 square feet of existing commercial uses. Table B below shows the development capacity for this alternative for each sub-area. For simplicity, the table does not include potential ground floor uses and potential minimum retail requirements in the CTI and Maxar redevelopment areas.

Table B. Core Scenario Potential Development

Sub-Areas
Existing
Commercial
Area
Existing
Residential
Units
Core Scenario*
Commercial Net
Change
Residential Net
Change (units)
CTI Neighborhood 528,800 sf 0 251,000 sf 1,800
North Fabian 683,000 sf 0 -599,000 sf 1,500
South Fabian 177,000 sf 384 -177,000 sf 800
Central San Antonio 449,000 sf 0 -209,000 sf 2,300
East Bayshore 414,000 sf 0 No change No change
West Bayshore 35,000 sf 0 No change 200
Greenhouse 0 sf 228 No change No change
South San Antonio 99,000 sf 125 No change No change
Alma Street 13,600 sf 65 No change 100
Total 2,399,400 sf 802 units -734,000 sf 6,700 units
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11 Outdoor Space
The core scenario seeks to ensure that all residents within the plan area are no more than a 10- minute walk from a City park, nature reserve, or privately owned/publicly accessible outdoor space. As the Area Plan sub-areas become more residential and their populations grow, the need for outdoor space (parks, plazas, playgrounds, parklets, etc.) becomes a critical design consideration.

Phase One analysis identified gaps in access to outdoor space (refer to Figure D), where much of the Plan Area lacks a park or public outdoor space within a ten-minute walk. These gaps overlap with the CTI and North Fabian sub-areas, where most future development is expected.

This will be achieved through improving bike and pedestrian connections to existing outdoor spaces, as well as creating policies that will lead to the creation of new outdoor spaces in the portions of the plan between E. Charleston Road and U.S. 101 (the CTI area and along Fabian Way). In addition, the core scenario will seek to collocate retail and services alongside outdoor space to increase their activation.

Based on the feedback received so far, the core scenario (refer to Figure E) will seek to create the largest parks possible supplemented by smaller outdoor spaces. This could include a 3- to

3.5-acre park in the Fabian Way area should the Maxar site redevelop, while an outdoor space larger than 1.5 acre is less likely in the CTI area, due to the small lots found there. These parks would be complemented by paseos and other bike/ped connection improvements (see Mobility section below), including increasing the tree canopy along areas people walk and bike. It is important to note that the City currently owns no parcels within these areas and will need to work with property owners and developers to create new outdoor spaces.

The core scenario will set minimum size and location criteria for new outdoor spaces and set minimum requirements for providing these on-site (compared to in-lieu fee). The standards created may differ from those currently applied to low- to mid-density residential developments. Additionally, the project team will coordinate with connectivity and mobility improvements to ensure low-stress and direct pedestrian and bike access to existing and new outdoor spaces. Key street improvements related to outdoor space include:
• San Antonio Road is envisioned as a key east-west ped/bike connection with continuous tree canopy to create a pleasant experience connecting new residential areas to amenities and transit.
• E. Charleston Road is envisioned as a key north-south ped/bike connection, linking schools and other destinations across San Antonio Road and to Mountain View. • Fabian Way becomes a key bike connection to the Baylands, utilizing the ped/bike bridge over U.S. 101.

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12 Table C. Summary of Core Scenario by Sub-Area
Primary Sub-Areas
CTI Neighborhood Land use: Residential mixed-use, with neighborhood retail required in key location(s). Study the effects of office/research & development space which keep employment in the plan area stable.

Height: 90 feet maximum (8 stories).

Concepts to explore: Evaluate the comparative effects of 60-foot maximum and 90-foot maximum. Evaluate the effects of allowing Provide new outdoor space
in North Fabian sub-area,
co-located with
neighborhood-serving
retail, amenities
Provide new outdoor
space in interior of CTI
sub-area, co-located
with neighborhood-
serving retail, amenities
Proposed new
outdoor space
in Mountain
View project
Coordinate with
planned US-101
interchange ped-
bike improvements
Coordinate outdoor spaces
with bike-ped improvements
on major streets and
intersections for enhanced
connectivity
Figure E. Outdoor space and connectivity strategies for the CTI and North Fabian sub-areas Item 15
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13 buildings to exceed 90 feet. Evaluate the effects of a reduced office/research & development allowance.

North Fabian Land use: Residential mixed-use, with neighborhood retail required in key location(s).

Height: 90 feet maximum (8 stories), height transitions required when adjacent to existing low-density residential neighborhoods (60 feet maximum).

Concepts to explore: Explore setting minimum density to encourage midrise residential and minimize townhomes. Evaluate the comparative effects of 60 feet maximum and 90 feet maximum.

South Fabian Land use: Residential mixed-use, neighborhood retail allowed but not required. Study expanded list of allowed uses for active ground floors.

Height: 90 feet maximum (8 stories), height transitions required when adjacent to existing low-density residential neighborhoods (60 feet maximum).

Concepts to explore: Evaluate the comparative effects of 60 feet maximum and 90 feet maximum.

Central San Antonio Land use: Residential mixed-use, with neighborhood retail required in key location(s).

Height: 90 feet maximum (8 stories), height transitions required when adjacent to existing low-density residential neighborhoods (60 feet maximum).

Concepts to explore: Evaluate the comparative effects of 60 feet maximum and 90 feet maximum.

Other Sub-Areas (Maintain Existing Zoning and Development Standards) East Bayshore Land use: Low-density commercial (maintain existing development standards including heights).

West Bayshore Land use: Low-density commercial with residential uses allowed (maintain existing development standards including heights).

Greenhouse Land use: Low-density residential (maintain existing development standards including heights).

South San Antonio Land use: Low to medium-density residential (maintain existing development standards including heights).

Alma Street Land use: Low to medium-density residential with institutional/civic uses (maintain existing development standards). Note that SB 79 will allow higher-density residential for qualifying projects, and two sites are both Housing Opportunity Sites and subject to Senate Bill 4 (2023), the Affordable Housing on Faith Lands Act, which allow for greater development if certain conditions are met. This will be studied by the City as part of separate initiatives.

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14 Mobility
The Area Plan will reimagine the San Antonio Road corridor as a multimodal spine that balances mobility with placemaking. Any approach needs to incorporate existing users, including those who live in or adjacent to the plan area, those who travel to jobs, retail, and services in and around the plan area and in neighboring communities, and trucks which rely on this route to connect from U.S. 101 to Alma Street and beyond into Mountain View, Los Altos, and Los Altos Hills.

The project team’s approach to mobility recognizes that land use and transportation are interdependent and must be planned as a single, integrated system. Travel demand and mode choice are shaped by where homes, jobs, services, and public spaces are located; and mobility strategies are most effective when they reinforce compact, mixed-use, and pedestrian-oriented land use patterns. By aligning transportation investments with planned growth areas and community-serving destinations, the approach focuses on reducing the need for vehicle- dependent trips while expanding the ability of current and future residents, workers and visitors to walk, bike, and take transit to their destinations.

To that end, the project team will perform analysis to understand the transportation benefits and considerations of the proposed land use in the core scenario within and through the Area Plan. When staff returns to Council in Q4 2026, it will provide a qualitative and quantitative assessment for the core scenario and defined alternatives under consideration. This will include an understanding of how the proposed land use is expected to affect single-occupancy driving and vehicle miles traveled (VMT), and whether the core scenario gets the City closer to achieving its greenhouse gas (GHG)/air quality, congestion, mode shift, public health, and safety goals. VMT is a useful proxy for evaluating land use options because it shows how location and urban form affect how much people need to drive. VMT can be used as an indicator of land use efficiency, transportation emissions, and system performance and is also correlated with accessibility, safety, and traffic congestion. In practice, lower per-capita VMT generally points to less auto dependence, more efficient land use, and stronger support for walking, biking, and transit.

The project team will:
• Use transportation-related metrics (such as proximity to similar land use types and effects on VMT) for all of the land use-related options to help inform the decision- making process;
• Develop a methodology to evaluate the number and/or proportion of residents within a 10-minute walk or 10-minute low-stress bike ride of key destinations, such as retail, employment, transit stops, schools/child care, grocery stores, and medical/dental facilities, as well as the effects of the proposed mobility interventions (new/enhanced bike facilities, improved transit, etc.); and
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15 • Develop a methodology that highlights the different transportation-related benefits and considerations of the current zoning compared to the Core Scenario using proximity to similar land use types and effects on VMT, for Council’s consideration in Q4 of 2026.

Mobility strategies emphasize place-based solutions that respond to existing and planned land uses. Street design, transit service, curb and parking policies, and other strategies are used proactively to support desired land use outcomes, such as vibrant commercial corridors, equitable access to jobs and services, and sustainable growth, rather than reacting to congestion after it occurs. By reinforcing the land use-mobility nexus, this approach advances multiple goals simultaneously: improving accessibility, reducing greenhouse gas emissions, enhancing safety, and supporting livable, economically resilient neighborhoods.

Key strategies include:
• Pedestrian-first design which prioritizes comfortable, accessible, and inviting streets that encourages walking and biking (while recognizing San Antonio as a regional corridor and truck route).
• Low-stress bike routes which provide high quality bikeways that meet the needs of people of all ages and abilities.
• First/last mile connections which integrate walking, biking, shuttles, and shared mobility to create a seamless journey from doorstep to destination, as well as creating one or more mobility hubs.
• Parking and demand management which apply strategies to reduce travel demand and organize allocation of curb space to improve access and efficiency. • Smart corridor technology which uses real-time data, adaptive signals, and digital tools to optimize traffic flow and enhance multimodal safety.

The Area Plan will:
• Build on and coordinate with prior and current planning and design efforts, including the 2026 Bicycle and Pedestrian Transportation Plan (currently scheduled for final adoption in June 2026), South Palo Alto Bike/Ped Connectivity Project, US-101 Interchange Project, and Fabian Way South Palo Alto Bikeways Demonstration Project. • Prioritize safer connections to schools, parks, retail, and transit, and improved crossings of San Antonio Road at Nita Avenue, Middlefield Road, and Charleston Road. • Enhance connections to San Antonio Caltrain Station and create additional transit options for the area.
• Create a comfortable walking and biking experience along and across San Antonio Road, providing separated bikeways or multi-use paths.
• Consider an increase in vehicle and truck traffic related to new development in Mountain View and Palo Alto.

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16 Figure F. Overall Mobility Direction
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17 In the core scenario, primary interventions will focus on the major street corridors: San Antonio Road, East Charleston Road, Middlefield Road, and Alma Street. Where possible, new connections will be made to increase walkability, bikability, and transit accessibility.

Connections to Caltrain will be improved, and policies to provide additional transit and create pedestrian-friendly neighborhoods in the CTI area and the Fabian neighborhoods will be included. Bike/ped routes through residential neighborhoods and anti-traffic intrusion measures into residential neighborhoods will also be examined (refer to Figure F).

Bike/Ped Infrastructure
The Area Plan aims to create a fully connected, accessible, and prioritized network of sidewalks and low-stress bikeways which promote walkability, bicycling, safety, and connection to destinations. Establishing publicly accessible private paths and paseos to bridge existing gaps and shorten walking/biking distances will further ensure a comfortable and convenient pedestrian and bicycle network within the Area Plan, and connect seamlessly into the City’s existing network. The proposed bike network incorporates separated bikeways for busier streets, well-designed intersections connecting to traffic-calmed bike boulevards, wayfinding signage, and ample bike parking to encourage travel by bike throughout the Area Plan. The Area Plan also seeks to improve connections into Mountain View.

Because San Antonio Road is the only east-west truck route in the City and services the cities of Mountain View and Los Altos and the Town of Los Altos Hills, extra care needs to be taken to ensure cyclist and pedestrian comfort and safety. The project team will incorporate standards from the City’s complete streets policy as well as the 2024 American Association of State Highway and Transportation Officials (AASHTO) guidance on complete streets for truck routes and other design standards.

The core scenario will examine improvements that can be implemented with relatively low cost and high speed in the short term while leaving options open for more advanced improvements to follow. These short-term improvements would include projects such as removing parking on San Antonio Road to create street-level separated bike-lanes and other restriping projects.

More advanced options could include sidewalk-level separated bike lanes or multi-use paths (which would require the City to acquire land or easements to expand the existing right-of- way), or moving curbs inward to create room for side-walk level facilities (which would require reconstruction of parking lanes and potentially replanting of street trees and movement of utilities and stormwater infrastructure).

Transit
The mobility framework focuses on designing intuitive, accessible, and safe routes to local and regional transit through priority pedestrian and bike streets, wayfinding signage to navigate to Caltrain, enhanced bus stop amenities for passengers, and mobility hubs within the plan area.

This plan sets the stage for expanded transit services, coordinating with Valley Transportation Item 15
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18 Authority (VTA) or other partners, to strengthen San Antonio Road as a multimodal corridor, supporting planned land uses and providing access to Caltrain and other destinations.

Transportation Demand Management (TDM)
TDM strategies will be applied to make sure that new development is designed to make it easier for tenants, residents, and employees to get around using sustainable modes. A focus will be put on managing demand through programs, incentives, and policies that make walking, biking, transit, and shared travel more convenient and cost-effective. Key TDM strategies include creating a supportive mix of land use; streetscape improvements that make it easy and comfortable to walk and bike; providing designated secure areas for bike parking and bike maintenance and repair; providing car-share parking and bike fleets on-site and offering subsidized memberships; and integrating real-time transit information and wayfinding.

Early implementation with new development will ensure programs are in place at occupancy and adjusted over time as travel patterns evolve. The standards, guidelines, programs, and policies in this Area Plan will be informed and in conformance with foundational City plans and policies including the 2030 Comprehensive Plan, 2026 Bicycle and Pedestrian Transportation Plan (scheduled to be finalized in June 2026), Parks, Trails, Natural Open Space, and Recreational Master Plan, Green Stormwater Infrastructure Plan, and Public Art Master Plan.

This plan would implement design guidance and projects identified by the City and implement policies, programs, and practices to support and achieve these mobility goals.

Mobility hubs are a key component to developing TDM. They are places where multiple transportation modes are cohesively and conveniently located to provide an integrated suite of mobility services and amenities. They may feature a transit stop, enhanced crossings, bike racks and secure bike parking, shared micromobility services, real-time transit information, car share parking, passenger loading zones, electric vehicle parking, and vehicle parking. Potential locations within the plan area include at San Antonio Road/Charleston Road, San Antonio Road/Middlefield Road, and near the San Antonio Caltrain Station.

Vehicle Circulation
Vehicle circulation strategies are aimed to prioritize local circulation and access, prevent auto intrusion into neighborhoods, encourage low speeds, and reduce potential for conflicts with other modes. This is especially critical as San Antonio Road, E. Charleston Road, Middlefield Road, and Alma Street all play critical roles in connecting Palo Alto to neighboring communities, and San Antonio Road is the City’s only east-west truck route. These strategies are not focused solely on maximizing vehicle throughput and reducing vehicle delay. The strategies prioritize the following:
• Maintaining reliable access to residences and businesses; • Reducing cut-through traffic and managing traffic through operations and designs:
o Intersection reconfigurations
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19 o Signal timing modifications, and
o Modal filters to restrict or discourage through movements; and • Maintaining local vehicle access for residents, deliveries, and emergency services.

Parking and Curb Management
The parking and curb management strategy establishes a coordinated approach to using limited street- and curb-space more efficiently. Rather than prioritizing long-term vehicle storage, the strategy treats parking and curb areas as flexible assets that must balance loading and deliveries, short-term parking, transit operations, active transportation, and public realm needs.

This approach aligns curb and parking policies with surrounding land uses, travel demand, and peak activity periods to reduce conflicts, improve turnover, and support local businesses and residents. Overall, the strategy emphasizes managing demand over increasing supply by right- sizing parking, improving pricing and time limits where appropriate, and reallocating curb space to higher-value uses as needs evolve.

Street, Sidewalk, and Bikeway Improvements
The core scenario will provide a framework for the creation of a safe and low-stress bike facility on San Antonio Road connecting from the proposed US-101 interchange to Caltrain, as well as improving facilities on San Antonio Avenue, Fabian Way, E. Charleston Road, Middlefield Road, and Alma Street (including intersection improvement options described below). An alternative will also seek to acquire access across private property through acquisition of easements or purchasing land to connect Sutherland Drive and Wyandotte Street to San Antonio Road.

San Antonio Road and San Antonio Avenue are divided into three sections: (1) east of E.

Charleston Road, (2) west of E. Charleston Road and east of Middlefield Road, and (3) west of Middlefield Road. The core scenario will create the framework for the creation of:
• A two-way, separated bikeway on the north side of San Antonio Road connecting E.

Charleston Road to the planned U.S.-101/San Antonio Road interchange improvements; • A near-term, street-level separated bikeway on both sides of San Antonio Road which leaves open the possibility of future development; and
• A two-way, separated bikeway on the north side of San Antonio Road to San Antonio Avenue and across Alma Street to the Caltrain station.

As part of this workplan, the project team will examine the comparative costs associated with two potential future facilities along the central portion of San Antiono Road. One is a sidewalk- level, two-way either cycle track or mixed used path only on the north side of San Antonio Road, which would require the acquisition of land or easements to build. The second is a sidewalk-level facility on one or both sides of San Antonio Road which would require the existing curbs to be moved, as well as street trees and utilities. The project team will explore the feasibility and potential costs of these options. Key improvements are detailed in Figure G.

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20 Figure G. Key San Antonio Road Improvements
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21 Additional improvements to bike/ped facilities on E. Charleston Road, Fabian Way, and Alma Street, including new separated bikeways, will be explored in this work plan. The focus will be on improving connections, safety, and comfort into adjacent neighborhoods in Palo Alto and the City of Mountain View. The project team will explore improving a bike route parallel to Alma Street instead of, or in addition to, creating a new bikeway along it.

Intersection Improvements
The core scenario will seek to create a grade-separated connection between the CTI and North Fabian sub areas, as well as improve existing intersections. Improvements could include creating protected intersections,2 creating pedestrian zones, providing median refuges at longer crossings, consolidating existing driveway access, extending existing bike lanes through the intersections, and enhancing connections to bike boulevards.

Core Scenario and Work Plan Summary
The below table provides a summary of the work described above, broken down by topic area, for ease of understanding what Staff is proposing as part of the core scenario and the limited alternatives. More detailed description of this can be found in Attachment A.

Table D. Summary of Work Plan
Topic Area Core Scenario Concepts to Explore
Building
Heights
Increase to 90 feet in CTI, between
Fabian Way and San Antonio Road,
and south of San Antonio Road;
remain at 60 feet elsewhere
Limited development taller than 90
feet in CTI sub-area
Minimum
Residential
Density
Determine the appropriate
minimum density

Office and
R&D Space
Allow sufficient office/R&D space
within the CTI sub-area to keep
employment steady, and reduce
jobs/housing imbalance through
the creation of new residential
units

2 A protected intersection (or “Dutch-style intersection”) is an at-grade road design that uses physical separation, such as raised curbs, bollards, or corner islands, to separate cyclists and pedestrians from motor vehicles.

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22 Topic Area Core Scenario Concepts to Explore
Retail Require neighborhood-serving
retail at specific nodes (within CTI
and North Fabian, at intersection
of San Antonio Road and
Middlefield Road); Expand allowed
uses for ground floor commercial
spaces where neighborhood-
serving retail is not required

Outdoor Space Require new outdoor spaces as
part of future development in the
CTI and North Fabian sub-areas
Require outdoor spaces to be co-
located/clustered with neighborhood-
serving retail and amenities
Transportation
Network
Priorities
Prioritize improving the pedestrian
realm, bike network, transit,
vehicle circulation, freight
circulation, and parking and curb
management

Transit Develop a microtransit strategy to
enhance existing and future
resident and employee access to
the Caltrain station and other key
destinations, while continuing to
work with VTA to expand bus
service on San Antonio Road in
Palo Alto

San Antonio
Road
Create framework for a Class IV
separated bikeway along San
Antonio Road and Avenue, from
the Baylands to the Caltrain
station, with a near-term, cost-
efficient design that leaves open
the ability to improve to a side-
walk-level bike facility in the future
Explore sidewalk-level bike facility on
both sides of San Antonio Road from
Nita Avenue to E. Charleston Street
Explore sidewalk level two-way multi-
use path or separated bikeway (cycle
track) on north side of San Antonio
Road
Cross Streets Create framework for improved
ped/bike facilities on roads
running perpendicular to San
Antonio Road
Explore acquisition of easements or
purchasing land to connect Sutherland
Drive and Wyandotte Street to San
Antonio Road for bike/pedestrian use
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23 Topic Area Core Scenario Concepts to Explore
Improve
Intersections
Identify best-practice design
strategies for key intersections
along San Antonio Road (E.

Charleston Road, Middlefield
Road, Nita Avenue/McKay Drive,
Alma Street), San Antonio Avenue
and Briarwood Way, and at Fabian
Way and E. Charleston Road to
enhance safety, reduce cut-
through traffic, and manage
vehicle flow

Enhance
Access to
Caltrain
Create framework for improving
ped/bike access to the San
Antonio Caltrain Station in
Mountain View via enhanced
crossing of Alma Street at San
Antonio Avenue
Explore possibility of acquiring legal
access through Google X campus from
San Antonio Avenue and Nita Avenue
parallel to San Antonio Road on-ramp
to existing signalized crossing at
Mayfield Avenue and Central
Expressway in coordination with
Mountain View
Alma Street Create framework for improved
ped/bike facilities on the east side
of Alma Street from San Antonio
Avenue to E. Meadow Drive and
create high visibility ped/bike
crossing markings at intersections
Improve interior neighborhood routes
including better wayfinding on
ped/bike routes parallel to Alma Street

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1 San Antonio Road Area Plan Integrated
Land Use and Mobility Approach
The following topics are addressed in this attachment:

Overview ......................................................................................................................................... 1 Integrating Land Use and Mobility ................................................................................................. 1 Diversity of Land Uses ..................................................................................................................... 3 Overview
The San Antonio Road Area Plan (Area Plan) seeks to create the capacity to meet not only the requirements assigned to the City through the Regional Housing Needs Allocation (RHNA) tied to the sixth cycle of the Housing Element, but also additional housing needs beyond 2031 (the end of the sixth cycle). It also seeks improvements in transportation conditions for all roadway users and encourages more neighborhood amenities, such as parks and local-serving retail.

Integrating Land Use and Mobility
In Palo Alto, a lower-traffic land use mix is not simply “commercial plus residential.” It is a pattern that allows people to live near work, meet daily needs locally, access schools, parks, and civic uses, and reach local and regional transit by a comfortable walk or bike trip. In land use and transportation planning, the “6 Ds” framework (density, diversity, design, destination accessibility, distance, and demand management) describes how the built environment influences travel behavior and urban form. Each of the 6 Ds is described below:

1. Density refers to the intensity of development, including housing and employment concentration. Higher density can support transit, place more destinations within walking distance, and reduce per-capita vehicle travel when paired with supportive land use and design. On its own, however, density does not guarantee reduced driving.

Key Takeaway: More housing/jobs in accessible infill areas can support lower vehicle trips.

2. Diversity refers to the mix of housing, jobs, services, schools, parks, civic uses, and neighborhood-serving commercial uses. Mixed-use environments can shorten trips and increase the share of trips made by walking, bicycling, or transit. The key issue is not simply allowing multiple uses, but whether they are close enough to function together in daily life.

Key Takeaway: Mixed-use environments can shorten trips and increase internal trip capture.

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2 3. Design refers to the layout and quality of the transportation network and public realm, including street connectivity, sidewalks, bike facilities, crossings, frontage design, and parking placement. Good design makes non-auto travel safer, more comfortable, and more direct.

Key Takeaway: Connected, pedestrian-, and bicycle-friendly design can shift short trips away from driving.

4. Destination accessibility refers to how easily people can reach important local and regional destinations such as jobs, schools, retail, civic uses, parks, and transit hubs. A place may be walkable locally but still generate high vehicle travel if major destinations are far away or poorly connected.

Key Takeaway: Sites with better access to jobs, services, and transit tend to generate lower trips than peripheral locations.

5. Distance refers to the need to keep trips short if people are to realistically be expected to mode shift away from automobiles. This includes collocating housing with jobs, neighborhood serving retail, and other services and amenities.

Key Takeaway: Keep as many trips as short as possible to encourage people to walk, bike, or use transit.

6. Demand management, or transportation demand management (TDM) refers to strategies, programs, services, and physical improvements intended to reduce single- occupancy vehicle travel and peak-period vehicle trips and to encourage travel by transit, walking, bicycling, carpooling, vanpooling, telecommuting, and other alternatives.

Key Takeaway: Create policies/programs that encourage walking, biking, transit use, vanpooling, telecommuting, etc., such as transit pass subsidies, bike parking and showers, and unbundled parking.

The 6 D’s work best in combination. Higher density with poor design may still produce auto dependence, while good design in a low-density area may improve walkability but not support frequent transit. Together, all six create the strongest conditions for reducing vehicle dependence.

For the Area Plan, the goal is to support enough people and jobs to sustain activity (density), enough land use mix to enable short local trips (diversity), enough connectivity and safety to make those trips practical without driving (design), and enough regional access to connect local places to the broader area (destination accessibility) while creating destinations that residents need to travel to in close proximity to housing (distance) and implementing strong policies to encourage mode shift for some trips (demand management).

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3 Diversity of Land Uses
At a high level, office development tends to generate the strongest near-term municipal revenue per square foot; higher-density housing tends to produce broader community and State-policy benefits but can create nearer-term service and infrastructure costs; and mixed- use development often offers the best balanced outcome by diversifying the tax base, supporting walkability, and reducing some transportation externalities (although it is usually more complex to deliver). Table A below summarizes the costs and benefits of these development types specific to the Area Plan.

Table A: Development Type Analysis
Development
Type
Office Buildings Higher-Density
Residential
Mixed-Use
Neighborhoods
Main Benefits High assessed value,
jobs, daytime spending,
supports economic
base
Adds housing supply,
supports RHNA and
fair housing, can
reduce regional
commuting
Diversified tax base,
walkability, better jobs-
housing balance, corridor
activation
Main
Costs/Risks
Traffic, jobs-housing
imbalance, housing
pressure, infrastructure
demand
Service costs,
infrastructure needs,
possible weaker fiscal
yield
More complex and costly
to deliver, retail risk
High-Level
Fiscal Effect
to City
Often strongest
positive near-term
fiscal return
Often mixed or weaker
fiscally on a
standalone basis
Often moderate-to-strong,
depending on program mix
High-Level
Policy Effect
Can undermine
housing/climate goals
if not paired with
housing
Strong alignment with
State housing and
sustainability goals
Strong overall alignment if
well located and designed

If Palo Alto allows more office, the City may see strong municipal fiscal upside, but potentially significant indirect social and transportation costs unless office growth is paired with housing production, TDM requirements, and infrastructure investment. Higher-density residential may produce the strongest policy and community-wide benefit, especially on housing affordability VMT reduction, and sustainability, but may present a more challenging municipal fiscal equation unless supported by impact fees, infrastructure financing, and careful unit mix/location strategy. Mixed-use development is often the best compromise strategy for Palo Alto since it can capture part of the fiscal upside of commercial uses while also advancing housing, walkability, and climate goals. The main challenge is ensuring the form, location, and economics are realistic.

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Attachment B - San Antonio
Road Area Plan Integrated
Land Use and Mobility
Approach

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CITY COUNCIL
Staff Report
From: City Manager
Report Type: INFORMATION REPORTS
Lead Department: Planning and Development Services
Meeting Date: June 8, 2026
Report #: 2604-6308
TITLE
439 Lincoln Avenue [26BLD-00812]: Notice of Demolition Application for a Significant Building within the Professorville Historic District

RECOMMENDATION
This report is provided for informational purposes only and does not require Council action.

BACKGROUND
The property located at 439 Lincoln Avenue is situated within the Professorville Historic District, one of the City’s oldest historic districts and one of its earliest residential neighborhoods. The residence at 439 Lincoln Avenue, along with its detached garage, was constructed in 1923, during the district’s period of significance. The design and architecture of the property reflect this early development period, and the property remains largely intact, retaining its early 1920s construction and character.

The City-retained historic consultant, Page & Turnbull, concluded that while the property at 439 Lincoln Avenue does not appear to be individually eligible for listing in the California Register under any criterion, it is considered a historic resource as a contributing property within the locally designated Professorville Historic District (Attachment B).

The owners of 439 Lincoln Avenue submitted a demolition permit application for the detached garage on March 27, 2026. The main residence is not proposed to be demolished. However, there is an associated development application for a new JADU, detached ADU, and attached garage.

ANALYSIS
The City’s Historic Preservation Ordinance, Palo Alto Municipal Code (PAMC) Section 16.49.070 states that any person wishing to demolish a significant building,1 other than in the downtown area, shall file an application for a demolition permit in accordance with the procedures 1 "Significant building" means any building, group of buildings, or site categorized on the historic inventory as number one or number two and all structures within historic districts.

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established by PAMC Chapter 16.04 and said application and documentation of the structure shall be forwarded to the City Council as an information item.

The Chief Building Official may not take action on the application for sixty days following receipt of a completed application. During the sixty-day moratorium, the Chief Building Official shall refer the application to the Historic Resources Board (HRB) for recommendation on the historical and/or architectural significance of the building and the whether the moratorium should be extended. Tentatively this is scheduled for the June 11, 2026, HRB meeting.

The HRB, or any interested person may recommend that the Council extend the moratorium.

The Council shall agendize such a request and may extend the sixty-day period to a period up to one year. In the case of an extended moratorium, the Council, upon the recommendation of the HRB, may require that appropriate and reasonable public notice of the availability of the structure be provided by the applicant.

FISCAL/RESOURCE IMPACT
All associated staff costs associated with processing this application are recovered through applicant-paid fees established in the Fiscal Year 2026 Adopted Municipal Fee Schedule.

STAKEHOLDER ENGAGEMENT
The Palo Alto Municipal Code requires notice of demolition applications involving significant buildings located outside of the Downtown area. In accordance with this requirement, a copy of the application and supporting documentation for the structure has been forwarded to the City Council as an informational item.

ENVIRONMENTAL REVIEW
This informational report is not a project under the California Environmental Quality Act (CEQA) and does not require environmental review. The proposed demolition application of the one- story detached garage involves the issuance of a building permit, which is exempt from CEQA pursuant to CEQA Guidelines Section 15268 (Ministerial Projects). Section 15268 provides that the determination of whether a project is “ministerial” is made by the public agency based on its analysis of its own laws and regulations. In the absence of discretionary provisions governing the application, the issuance of building permits is presumed to be ministerial. Because the proposed project involves only a building permit, a ministerial approval, no environmental review under CEQA is required.

ATTACHMENTS
Attachment A: Demolition Application [26BLD-00812]
Attachment B: Documentation of Structure Proposed for Demolition APPROVED BY:

Jonathan Lait, Planning and Development Services Director Item A
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Item A
Attachment A - Demolition
Application [26BLD-00812]

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Item A
Attachment A - Demolition
Application [26BLD-00812]

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Item A
Attachment B - Documentation of Structure Proposed for Demolition

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DPR 523A (9/2013) *Required information
State of California ⎯ The Resources Agency Primary #______________________________________________ DEPARTMENT OF PARKS AND RECREATION HRI #__________________________________________________ PRIMARY RECORD Trinomial______________________________________________ NRHP Status Code
Other Listings_____________________________________________________________________ Review Code________ Reviewer________________________ Date_______________