City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Transportation
Meeting Date: June 15, 2026
Report #:2605-6346
TITLE
FIRST READ: Adopt an Ordinance to Amend College Terrace Residential Preferential Parking Program Fixed Permit Terms, Sale and Grace Periods in PAMC 10.46.060; CEQA status:
categorically exempt.
RECOMMENDATION
Staff recommends that the City Council adopt an ordinance to amend the College Terrace Residential Preferential Parking Program (RPPP) at PAMC section 10.44.060 by removing fixed permit terms, sales cycles, and grace periods.
BACKGROUND
The College Terrace neighborhood, located between Stanford University and the Stanford Research Park, faces a chronic shortage of street parking driven by its proximity to major institutions. This congestion represents spillover parking from Stanford University including university students and employees who park on residential streets to avoid campus permit fees that were intended to reduce motor vehicle trips and fund travel demand management (TDM) strategies. Furthermore, the development of high-density graduate housing along Stanford Avenue has intensified the demand for street space, as residents and visitors often choose free city parking over paid campus facilities.
The physical layout of College Terrace complicates the situation because the neighborhood consists of small lots and dense housing with limited off-street parking options. In response to this scarcity, some commuters choose to engage in hazardous parking behaviors, such as blocking fire hydrants and obstructing visibility at intersections. These behaviors are particularly concerning along Stanford Avenue, which serves as a school route for children traveling to and from Escondido and Nixon Elementary, Greene Middle and Palo Alto High schools.
To address these long-standing issues, the College Terrace Residents’ Association undertook research on permit programs, finding strong support among neighbors. In 2000, Stanford University was required to provide a $100,000 deposit to the City of Palo Alto as a condition of
its General Use Permit. These funds were earmarked for the evaluation and initiation of a Residential Parking Permit Program.
In 2007, City Council directed staff to utilize these funds to hire external experts for a formal program assessment. The directive mandated a strategy that focused on the most impacted portions of the neighborhood rather than blanket implementation. The assessment process included a resident survey and community outreach meetings to design a conceptual program.
A critical requirement for the resulting permit system is that it must be revenue-neutral, ensuring that the fee structure covers all administrative and staffing costs without impacting on the City’s General Fund. The program is not currently revenue neutral. In FY 2025, permit revenues totaled $53,036, while the cost to administer the program was $83,454. In FY 2026, permit revenues are estimated to increase slightly to $59,277, with program administration costs projected to decrease slightly to $82,977. Staff is addressing this gap through incremental increases in permit fees over the coming years.
ANALYSIS
In late 2025, the City began onboarding a new permit vendor, a transition requiring significant administrative updates and public onboarding. To ensure a seamless migration and optimize City resources, permit sales for all parking programs are being aligned with a calendar year cycle.
The proposed resolution modifies the College Terrace Residential Preferential Parking Program (RPPP) by eliminating the legacy "fixed-term" structure for sales and enforcement and aligns with the remaining parking programs. This update removes the following requirements:
Fixed September Cycle: Rescinds the rigid September 1 to August 31 permit term. Restricted Purchase Windows: Removes the 30-day pre-purchase limitation. Legacy Grace Periods: Eliminates the formal September grace period for expired permits.
Updating these regulations is essential for the successful transition to the new parking management vendor and the shift to a January–December calendar year cycle.
By removing outdated language from the municipal code, the City gains the administrative flexibility needed to streamline the renewal process and reduce resident confusion. These adjustments ensure that permit terms are intuitive, easier for the community to manage, and aligned with the City's modernized parking infrastructure.
FISCAL/RESOURCE IMPACT
This action will not result in a significant fiscal impact. The transition from a fiscal year-based permit cycle to a calendar year permit cycle, along with updated sales parameters, will modernize program administration without affecting overall budget assumptions. The transition year may temporarily affect the timing of permit sales and revenue collection; however, no material long-term fiscal impacts are anticipated.
The modification of permit terms and removal of legacy grace periods are administrative in nature and do not change the current enforcement area or underlying fee structure. These updates are not anticipated to materially affect permit fee collection or overall revenue recognition over time, as associated sales will continue to be collected within the same fiscal year.
The Office of Transportation will continue to monitor permit sales and revenue collections throughout FY 2027 during the transition to the calendar year structure. Any necessary budget adjustment recommendations related to revenue updates will be brought forward as part of the FY 2028 budget development process.
STAKEHOLDER ENGAGEMENT
City Staff continue to actively monitor and collect community feedback regarding the parking program to guide ongoing operational improvements. In direct response to frequent public requests for a more streamlined permit purchasing process, the City has procured a new permit management vendor. This transition is aimed at modernizing the system and delivering an enhanced, user-friendly customer experience for residents and visitors.
ENVIRONMENTAL REVIEW
The attached resolution is exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to regulation 15301 (existing facilities.)
ATTACHMENTS
Attachment A: Ordinance Amending PAMC 10.46.060 to Remove Fixed Permit Terms, Sales Cycles, and Grace Periods.
APPROVED BY:
Ria Hutabarat Lo, Chief Transportation Official