9 1
8 6
City Council
Staff Report
From: City Manager
Report Type: INFORMATION REPORTS
Lead Department: Public Works
Meeting Date: June 15, 2026
Report #:2601-5837
TITLE
Semiannual Update on the Status of Capital Improvement Program Projects; CEQA Status – Not a Project
RECOMMENDATION
This report is provided for information only and requires no Council action.
EXECUTIVE SUMMARY
The City Council and Palo Alto community can be proud of the City’s capital improvement program (CIP). The CIP represents major investments in infrastructure functionality and sustainability, funded largely through the transfer of funding from the General Fund, including dedicated Transient Occupancy Tax (TOT) funding, as well as utility rates and various other sources. The 2026-2030 five-year CIP totaled $1.1 billion for 200 projects as reviewed by the Council in its adoption of the FY 2026 Capital Budget. Since July 2016, the City of Palo Alto has completed 117 individual community-serving projects totaling $591,454,847 in improvements.
Given the volume of CIP projects included and to provide accurate financial accounting, this report presents information current as of December 2025, representing updates in the first half of FY 2026.
A summary of all completed CIP projects is provided at the end of Attachment A. The CIP represents a major effort for much of the City workforce.
The following table summarizes the status of all projects for the six-month period of July to December 2025.
9 1
8 6
Recurring
Projects
One Time Projects
CIP Workgroup
Pre-Design Design Construction Completed
Airport 0 0 5 1 0
Buildings and Facilities 14 5 13 8 2
Electric 9 2 3 6 0
Fiber Optic 2 0 2 0 0
Gas 4 0 2 1 0
Parks and Open Space 9 4 6 7 2
Stormwater Management 2 1 0 4 0
Streets and Sidewalks 9 0 3 0 0
Traffic and Transportation 5 1 7 3 1
Wastewater Collection 4 0 1 1 0
Wastewater Treatment 2 1 2 4 0
Water 7 0 2 1 0
Subtotals 67 14 44 37 5
Totals 169
The following table summarizes the workload by CIP group on General fund CIP projects for the six-month period of July to December 2025.
Work Group Managing CIP
General Fund CIP Projects Public Works
Engineering
Transportation Community
Services
Other
Buildings and Facilities 31 0 7 4
Parks and Open Space 8 0 20 0
Streets and Sidewalks 12 0 0 0
Traffic and Transportation 5 12 0 1
Subtotals 56 12 27 5
% of General Fund CIP Projects 56% 12% 27% 5%
9 1
8 6
9 1
8 6
BACKGROUND
This report provides Council with an update on the status of CIP projects, with detailed and useful information for the Council and public regarding general fund and enterprise fund projects that appear on Council agendas and will be visible throughout the community. The report does not include Internal Service Funds projects (Information Technology and Vehicle).
ANALYSIS
Project Update Organization
The City of Palo Alto has a robust capital improvement program, and many individual projects are in progress at any given time. The 2026-2030 five-year CIP totaled $1.1 billion for 200 projects as reviewed by the Council in the adoption of the FY 2026 Capital Budget. The attached CIP project tables are intended to provide a quick overview of each project, including budgetary information, the anticipated completion date, a brief description of the project scope, the status of the project, and upcoming activities including Council actions. Also included in the report is a list of all completed one-time CIP projects since the introduction of the Infrastructure Management System (Attachment B).
Major/Significant Projects Summary
The 2014 Council Infrastructure Plan is a major focus of staff’s capital improvement program efforts and ties to several 2024 City Council Priorities and related objectives. The following table details the Total Project Budget and Total Actual Expenses through February 20, 2026, for the Infrastructure Plan projects.
Council
Infrastructure
Plan Projects
CIP
Number
Project Update Total Project
Budget
Total Actual
Expenses Completion
Date
Fire Station 3
Replacement
PE-
15003
Completed $10,600,734 $10,600,734 Spring
2020
New California
Avenue Area
Parking Garage
PE-
18000
Completed (Day 2 items are in
progress)
$50,207,727 $ 49,501,096 Winter
2020
Highway 101
Pedestrian/Bicycle
Overpass Project
PE-
11011
Completed $23,734,218 $23,734,218 Fall 2021
9 1
8 6
Charleston
Arastradero
Corridor Project
PE-
13011
Completed $21,600,000 $ 21,143,529 Summer20
24 Downtown
Automated Parking
Guidance Systems
PL-15002 Council approved a design-build
contract in May 2023.
Construction is underway and
expected to be completed in
spring 2026.
$5,197,827 $4, 843,070 Spring 2026
New Public Safety
Building
PE-
15001
First phase of staff moved in
September 2025. Work
continues to allow the phased
move in in Spring/Summer 2026.
$126,700,000 $125,158,581 Fall 2025
Fire Station 4
Replacement
PE-
18004
A construction contract was
awarded in October and
construction began in December
2025.
$ $19,972,811 $4,114,515 Summer 2026
Byxbee Park
Completion
PE-
18006
On hold pending completion of
the Baylands Comprehensive
Conservation Plan.
$3,199,189 $368,192 Summer 2028
Bicycle and
Pedestrian
Transportation
Implementation
Plan
PL-04010 This project funds the Bicycle and
Pedestrian Transportation Plan
Update, which has kicked off
recently and is slated to take
approximately 18 months to
complete. This project also funds
the implementation of various
bicycle and pedestrian projects.
$14,400,000 $10,352,154 On-Going
Downtown Parking
Structure
PE-15007 A new 274-space parking garage,
featuring six levels of above-ground
parking with a reserved area to allow
for future construction of affordable
housing on the site. Staff is
scheduled to go to ARB in June 2026.
$17,286,151 $2,191,646 Fall 2027
Current Infrastructure Plan project schedules can be found at https://www.infrastructure.cityofpaloalto.org
Key considerations for the information presented in the project update tables include:
Project status information is current as of December 31, 2025. 9 1
8 6
The individual project tables align with the Capital Improvement Fund categories in the Fiscal Year 2026-2030 capital budget: Buildings and Facilities, Parks and Open Space, Streets and Sidewalks, and Traffic and Transportation.
Enterprise Fund projects follow the order of their respective Fund in the capital budget. Department Technology Upgrades and Improvements projects and Cubberley Property Infrastructure Fund projects are included in the Buildings and Facilities table. Additional project information is available in the Fiscal Year 2026-2030 capital budget. Each project table is divided into a section for one-time projects and a section for recurring projects that have ongoing annual funding.
Budgetary figures include staff oversight costs for projects to which staff costs have been allocated.
The table of completed projects (Attachment B) provides a summary of all CIP projects completed since the Biannual CIP updates to council began in 2016. The data is sorted from most recent to oldest.
Completed Projects
There were five completed one-time projects in the first half of Fiscal Year 2026 (July through December 2025).
Boulware Park Improvements (PE-17005)
Churchill Avenue Alma Street Railroad Crossing Safety Improvements (PL-20000) Lucie Stern Community Theatre Stage Rigging System Refurbishment (AC-24000) New Public Safety Building (PE-15001)
Stanford Palo Alto Community Playing Fields Turf Replacement (PG-26000) One-time projects do not include the significant amount of annual work completed under ongoing recurring projects, such as streets and sidewalks repairs, parking lot maintenance, roofing replacements, and regular maintenance of Utilities assets.
Below are some photos of completed projects:
9 1
8 6
Boulware Park Improvements (PE-17005)
Churchill Avenue Alma Street Railroad Crossing Safety Improvements (PL-20000)
9 1
8 6
Lucie Stern Community Theatre Stage Rigging System Refurbishment (AC-24000) New Public Safety Building (PE-15001)
9 1
8 6
Stanford Palo Alto Community Playing Fields Turf Replacement (PG-26000) One-Time Projects Under Construction
The 36 projects underway as of December 31, 2025 include the following:
Capital Improvement Fund (general fund):
9 1
8 6
Baylands Golf Links Sand Topdressing (PG-26001)
Baylands Interpretive Signage Program (OS-24001)
Churchill Avenue Enhanced Bikeway (PL-14000)
Civic Center Fire Life Safety Upgrades (PE-18016)
Downtown Automated Parking Guidance Systems, Access Controls & Revenue Collection Equipment (PL-15002)
Eucalyptus Tree Removal (PG-25002)
Fire Station 4 Replacement (PE-18004)
Foothills Nature Preserve Dam Seepage Investigation and Repairs (PE-20000) Heritage Park Site Amenities Replacement (PG-21000)
Homekey Facilities (PE-24005)
JMZ Renovation (AC-18001)
Library Automated Material Handling (LB-21000)
Palo Alto Art Center Ceramics Equipment (AC-28003)
Parking Management and System Implementation (PL-16002) Ramos Park Improvements (PG-14000)
Rinconada Park Improvements (PE-08001)
Performing Arts Venues Seat Replacement (AC-18000)
Roth Building Rehabilitation Phase 1 (PF-23001)
Airport Fund:
Airport Layout Plan (AP-21000)
Electric Fund:
Colorado Distribution Feeder Outlet Replacement (EL-22002) Grid Modernization for Electrification (EL-24000)
Inter Substation Line Protection Relay (EL-17005)
Foothills Rebuild Fire Mitigation (EL-21001)
Smart Grid Technology Installation (EL-11014)
Substation Physical Security (EL-16003)
Gas Fund
Gas Main Replacement Project 25 (GS-15000)
Stormwater Management Fund:
Corporation Way System Upgrades and Pump Station (SD-21000) Hamilton Avenue System Upgrades (SD-25000)
West Bayshore Road Trunk Line Improvements (SD-23000)
9 1
8 6
West Bayshore Road Pump Station (SD-20000)
Wastewater Collection Fund:
Wastewater Collection System Rehabilitation Augmentation Project 32 (WC-20000) Wastewater Treatment Fund:
Local Advanced Water Purification System (WQ-19003)
Joint Intercepting Sewer Rehabilitation (Phase 1) (WQ-24000) Secondary Treatment Upgrades (WQ-19001)
Horizontal Levee Pilot (WQ-22001)
Water Fund:
Water Tank Seismic Upgrade and Rehabilitation (WS-09000) Projects Implemented by Other Agencies:
Palo Alto Flood Basin Tide Gate Project
Valley Water will design and construct a seismic retrofit and rehabilitation of the existing Palo Alto Flood Basin (PAFB) Tide Gate structure to extend its service life. Phase 2 of this project includes working with the United States Army Corps of Engineers to establish a long-term replacement tide gate structure, under the South San Francisco Bay Shoreline Phase II Project.
That structure will be located where the PAFB connects to the San Francisco Bay, half a mile northeast of the Byxbee Park parking lot on the Adobe Creek Loop Trail. Season 1 of the onsite construction work for the seismic retrofit and rehabilitation of the existing tide gate structure started in September 2025. This scope under season 1 was completed on January 31, 2026.
Valley Water’s contractor could not replace the existing tide gates during first season. They will return in September 2026 to replace the tide gates. Season 2 is expected to be completed in October 2026. This portion of the Adobe Creek Loop Trail will be temporarily closed during construction.
Caltrain San Francisquito Creek Bridge Project
The Peninsula Corridor Joint Powers Board (Caltrain), City of Palo Alto and Menlo Park are working under a joint agreement to stabilize the San Francisquito Creek bank at Caltrain’s railroad bridge and City of Palo Alto’s El Palo Alto Bike/Ped bridge due to the significant damage caused by the storms in December 2022. A construction contract was awarded by Caltrain in March 2026. Construction is anticipated between June 15 through October 15, 2026, during the dry season. The City’s funding commitment is approximately $1.06 million per the contributions established in the Memorandum of Understanding (MOU) and Funding Agreement dated August 15, 2023. Funding was added to CIP PE-20001 City Bridge Improvements in FY 2025 to cover the City’s share per the MOU agreement.
9 1
8 6
FISCAL/RESOURCE IMPACT
Funding for the projects discussed in this report was appropriated in the Fiscal Year 2026 Adopted Capital Budget and reviewed for the 2026-2030 Five-Year CIP. Funding for projects in future years of the CIP is subject to Council approval as part of the annual budget process.
STAKEHOLDER ENGAGEMENT
This report was coordinated with staff in the Administrative Services, Community Services, Office of Transportation, Public Works, and Utilities Departments. Stakeholder engagement is conducted separately for each project.
ENVIRONMENTAL REVIEW
This report is exempt from the California Environmental Quality Act (CEQA) as it is an informational report to Council. CEQA compliance is reviewed separately for each capital project.
ATTACHMENTS
Attachment A: Semiannual Update on the Status of Capital Improvement Program Projects Attachment B: Completed One-Time CIP Projects since FY 2016 APPROVED BY:
Brad Eggleston, Director Public Works/City Engineer