Agenda packet — Palo Alto City Council, August 10, 2026 (part 3 of 3)

AMENDMENT NO. 1 TO CONTRACT NO. C25191297

BETWEEN THE CITY OF PALO ALTO AND

KITTELSON & ASSOCIATES
This Amendment No. 1 (this “Amendment”) to Contract No. C25191297 (th e “Contract” as defined below) is entered into as of August 10, 2026, by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and KITTELSON & ASSOCIATES, a California corporation, located at 155 Grand Ave, Suite 505, Oakland, CA 94612 (“CONSULTANT”).

CITY and CONSULTANT are referred to collectively as the “Parties” in this Amendment.

R E C I T A L S
A. The Contract (as defined below) was entered into by and between the Parties hereto for the provision of transportation planning and engineering services in support of the Southern Palo Alto Bicycle and Pedestrian Railroad Crossing Study, as detailed therein.

B. The Parties now wish to amend the Contract in order to extend the contract term through September 9, 2028, update the Scope of Services, update Schedule of Rates and update compensation schedule with no increase to the Not To Exceed compensation.

NOW, THEREFORE, in consideration of t he covenants, terms, conditions, and p rovisions of this Amendment, the Parties agree:

SECTION 1. Definitions. The following definitions shall apply to this Amendment:
a. Co
ntract. The term “Contract” shall mean C ontract No. C25191297 between CONSULTANT and CITY, dated September 9, 2024.

Ot
her Terms. Capitalized terms used and not defined in this Amendment shall have the meanings assigned to such terms in the Contract.

SE
CTION 2. Section 2. TERM of the Contract is hereby amended to read as follows:

The t
erm of this Agreement shall be from the date of its full execution through September 9, 2028, unless terminated earlier pursuant to Section 19 (Termination) of this Agreement.

SE
CTION 3. Section 4. NOT TO EXCEED COMPENSATION. COMPENSATION of the Contract is hereby amended to read as follows:
“The compensation to be paid to CONSULTANT for performance of the Services shall be based Item 14
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on the compensation structure detailed in Exhibit C, entitled “COMPENSATION,” including any reimbursable expenses specified therein, and the maximum total compensation shall not exceed Four Hundred Eighty-Seven Thousand, Ninety-Four Dollars ($487,094.00). 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 Twelve Thousand Three Hundred Ninety-SixDollars and Twenty cents($12,396.20) 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 Four Hundred Ninety-Nine Thousand, Four Hundred Ninety Dollars, and Twenty Cents($499,490.20), as detailed in Exhibit C. “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 Services 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 executed 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 Item 14
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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 3. The following exhibit(s) to the Contract is/are hereby amended or added, as indicated below, to read as set forth in the attachment(s) to this Amendment, which is/are hereby incorporated in full into this Amendment and into the Contract by this reference:a. Exhibit “A” entitled “SCOPE OF SERVICES, AMENDMENT NO. 1”, AMENDED, REPLACES PREVIOUS. b. Exhibit “A-1” entitled “PROFESSIONAL SERVICES TASK ORDER, AMENDMENT NO. 1”, ADDED. c. Exhibit “B” entitled “SCHEDULE OF PERFORMANCE, AMENDMENT NO. 1”, AMENDED, REPLACES PREVIOUS. d. Exhibit “C” entitled “NOT TO EXCEED COMPENSATON, AMENDMENT NO. 1, AMENDED, REPLACES PREVIOUS. e. Exhibit “C-1” entitled “SCHEDULE OF RATES, AMENDMENT NO. 1”, AMENDED, REPLACES PREVIOUS. SECTION 4. Legal Effect. Except as modified by this Amendment, all other provisions of the Contract, including any exhibits thereto, shall remain in full force and effect.SECTION 5. Incorporation of Recitals. The recitals set forth above are terms of this Amendment and are fully incorporated herein by this reference. (SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.) Item 14
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SIGNATURES OF THE PARTIES IN WITNESS WHEREOF, the Parties have by their duly authorized representatives executed this Amendment effective as of the date first above written.CITY OF PALO ALTOCity Manager APPROVED AS TO FORM:City Attorney or designeeKITTELSON & ASSOCIATES Officer 1By: Name:Title:Officer 2 By: Name: Title:Attachments: Exhibit A “SCOPE OF SERVICES, AMENDMENT NO. 1”, AMENDED, REPLACES PREVIOUS.Exhibit B “SCHEDULE OF PERFORMANCE, AMENDMENT NO. 1”, AMENDED, REPLACES PREVIOUS.Exhibit A-1 “PROFESSIONAL SERVICES TASK ORDER, AMENDMENT NO. 1”, ADDED. Exhibit C “NOT TO EXCEED COMPENSATON, AMENDMENT NO. 1”, AMENDED, REPLACES PREVIOUS.Exhibit C -1“SCHEDULE OF RATES, AMENDMENT NO. 1”, AMENDED, REPLACES PREVIOUS.

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EXHIBIT A SCOPE OF SERVICES, AMENDMENT NO. 1 (AMENDED, REPLACES PREVIOUS) CONSULTANT shall provide the Services detailed in this Exhibit 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 qualifications, 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. Task 1. Project Management and Coordination Throughout the study duration, Kittelson’s project manager and members of the consultant team will be available for conference calls and in-person meetings with the City. Based on the proposed scope of work, we anticipate the schedule would be about 32 months. We assume one 1.5-hour in-person kick-off meeting plus a total of 75 30-minute check-in calls and 10 additional 1-hour work sessions to prepare for engagement activities or to review analysis findings at key project milestones. Kittelson’s project manager will prepare a detailed project schedule in coordination with City staff showing key milestones by subtask. This schedule is included as Appendix A. Kittelson’s project manager will prepare meeting materials for distribution prior to the meeting and provide a list of action items and status after each meeting. Meeting materials before each meeting and action items/status after each meeting will be distributed via email. Notes will be recorded and shared through OneNote or a similar collaborative method. Task 1 Deliverables: - Kick off meeting - Project schedule (included as Appendix A) - Coordination meetings/calls and materials - Monthly invoices, progress, reports Task 2. Community Outreach and Engagement Task 2.1. Community Outreach and Engagement Plan The Kittelson team will develop a Community Outreach and Engagement Plan that identifies target audiences, includes messaging that are designed to explain the project purpose and need in layperson-friendly language, as well as tailored messaging that is customized to resonate with specific target audiences. This includes the identification of disadvantaged groups and organizations that serve them as Item 14
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well as communications methods and forums for reaching them, such as pop-up events, outreach at local schools, community and senior centers, food pantries, health-care centers, job and unemployment centers, and other venues. The Kittelson team will also prepare a detailed implementation plan, which aligns with key project milestones and serves as an actional distillation of the Community Outreach and Engagement Plan. This will include target audiences, messages & communications mechanisms for engaging and informing them, timelines, roles & responsibilities and desired outcomes for each phase and touchpoint of engagement, as well as a process for recording who we reached out to. The Community Outreach and Engagement Plan will also further define the City’s Goals & Objectives for Community Outreach and Engagement, including desired outcomes. The Goals & Objectives will help to inform qualitative and quantitative metrics that will be used at key intervals of the Study to determine the effectiveness of Outreach and Engagement activities. The Community Outreach and Engagement Plan will undergo a max of two consolidated rounds of revisions. Task 2.2. Implementation of Community Outreach and Engagement Plan Community outreach and engagement will be conducted in four phases: Phase 1. Establish design priorities Phase 2. Feedback on Alternatives Phase 3. Review public draft report Phase 4. Council adopt final report Engagement will be conductedusing the methods and mechanisms described in detail in the Community Outreach and Engagement Plan. Specific details on implementation will be determined as part of Task 2.1 and are expected to include the following subtasks. 2.2.1 Project webpage. We will support the City-hosted project website, which will serve as a public-friendly repository for the Study, including a Project Timeline and Opportunities for Public Engagement, Public Notification and Informational Materials, and Project Documents. We will work closely with the City to develop content based on the City’s web and design templates and ensure that all materials are ADA-compliant and accessible. - Our support may include the development of a webpage mockup, if needed, and simple graphic designs to illustrate project information, including a timeline graphic, and funding graphic and one or two other simple graphics. - The webpage will also feature up to two online public surveys, which will be linked to the City’s OpenGov platform, which provides automated methods for tallying and graphically displaying survey results.

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2.2.2 Social media content.We will work with the City’s Communications Team to develop social media content for the City’s social media platforms. We will provide web content in plain text (non-html) for posting by the City’s web manager and up to three updates at key intervals of the Study: Project Initiation; Draft Alternatives; Draft Study. To facilitate coordination with the communications team, we will prepare an editorial calendar with content for up to three rounds of social media via Facebook, Twitter, Instagram and Medium/Next Door. Concept renderings and technical analysis from subsequent tasks will be incorporated and up to three additional jpeg graphics will be prepared for social media. 2.2.3Community Workshops. The Kittelson team will plan, coordinate and implement up to three community workshops at key intervals of the study. Our services will include detailed annotated meeting agendas that further define desired meeting outcomes and formats; logistical coordination with vendors, including translation, interpretation and meeting materials; and consensus-focused meeting facilitation, as needed. We will also provide written summaries (up to five pages each) of each community meeting highlighting key topics and questions. Language interpretation will be provided in Mandarin and Spanish as needed. Public notification materials will include verbiage requiring 72-hour notice to accommodate language interpretation needs. These workshops are anticipated to occur during Phase 1, Phase 2, and Phase 3. 2.2.4 Community Surveys. We will host up to two online public surveys. The online surveys will be hosted on OpenGov, or a similar tool, which provides automated methods for tallying and graphically displaying survey results and will be mobile-friendly. Each online survey will include between 5-7 questions, or less, not including demographic questions and will be promoted via emails created by the Kittelson team and distributed by the City in Task 2.2. We assume one round of consolidated revisions per survey. These surveys are anticipated to be conducted during Phase 1 and Phase 2. 2.2.5 Advisory Committee Meetings. Kittelson’s project manager will work with the City’s PM to co-create materials for each of the four phases of engagement, including draft presentation and staff report content.. Meeting materials will be developed once for each phase and reused, with minor updates to tailor content to the specific audiences based oninformation that is most relevant and requests for feedback that are concrete and actionable. Kittelson’s project manager and BKF’s engineering lead will provide virtual support for up to 15 advisory committee meetings over the course of the project. These meetings supported by consultant staff are expected to include: Phase 1. Planning and Transportation Commission, Rail Committee Phase 2. Pedestrian and Bicycle Advisory Committee, Planning and Transportation Commission, Rail Committee, City Council Phase 3. Planning and Transportation Commission, Rail Committee (two meetings), City Council (two meetings) Phase 4. Rail Committee, City Council Item 14
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The cost for Kittelson team virtual support at two additional meetings is included in Task 2.2.5 as an optional task. 2.2.6 Reaching Disadvantaged Groups. We will work closely with the City to identify disadvantaged organizations and groups in the community and to identify the most effective communications methods and forums to reach them “where they are.” These groups may include youth, senior citizens, the unhoused or recently unhoused, non-English speaking communities, transit-dependent and paratransit riders, as well as households with limited mobility, and essential workers and day laborers. This task will be executed in sync with Task 2.1 Community Outreach and Engagement Plan. 2.2.7 Local Business Engagement. We will coordinate with the City to conduct one-on-one and small group outreach to business owners to further define their specific interests and needs related to grade separation. We assume up to three meetings with key business owners via Palo Alto’s Chamber of Commerce and the local business district. We assume that the City will distribute all flyers and doorhangers to local businesses, and implement the tracking process outlined in the Community Outreach and Engagement Plan to record who has received outreach materials. 2.2.8 Informational Materials & Pop-up Events. Specific informational materials and pop-up events will be further defined in the Community Outreach and Engagement Plan. Materials include a Study Fact sheet for each phase of engagement and Flyer which may be updated for the second and third phases of outreach. The Kittelson team will also prepare informational boards and handouts to support public workshops and tabling at events during each phase of outreach. Pop-up events would be staffed by the City. 2.2.1 Documentation. Kittelson team will develop a summary of community engagement activities completed for each phase and prepare a summary report for the first two phases of engagement. The Kittelson team will update the draft summaries with one round of consolidated comments and prepare final summary reports for Phase 1 and Phase 2. The Kittelson team will then prepare a draft report section outline compiling findings from Phase 1 and Phase 2 with Phases 3 and 4. The Kittelson team will update the draft section of the report with one round of consolidated comments, and finalize the draft report section after a second set of consolidated comments. Task 2 Deliverables - Draft and final community outreach and engagement plan - Webpage mockup and draft/final content for three updates - Up to three social media or website graphics - Social media content Item 14
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-Community workshops (2), including meeting annotated meeting agendas, meeting logistical plans, dry runs of 60 minutes, vendor coordination, including room and equipment, meeting facilitation, meeting summaries - Online surveys (2), draft and final survey tool and survey findings memo - Advisory Committee Meetings (15), including draft and final presentation and meeting materials/staff reports, virtual participation at meeting, meeting notes, and follow-ups - Draft and final target audience engagement plan, including coordination with community based organizations and school groups - Local business engagement, including development of a contact list and support with targeted outreach through specific to business owners and supporting informational materials, such as doorhangers or flyers for reaching local businesses - Draft and final Phase 1 engagement summary report - Draft and final Phase 2 engagement summary report -Draft and final engagement summary section for inclusion in study report (Task 6)Task 3. Data Collection and Analysis of Existing Conditions Task 3.1. Review of Existing Plans, Policies, and Projects Kittelson will review the documents identified to develop an understanding of the planning context and prior efforts completed within the study area. We will supplement this review with the review conducted for the BPTP Update, which included a review of 53 documents, including those identified by the Rail Corridor Study Task Force and most of those identified in the RFP . In addition to gathering relevant information from these documents, we will conduct up to eight one-on-one or small group interviews with select staff, committee members, and community members to learn their perspectives firsthand and get input in real time at the onset of the project. We will work with the City to identify appropriate interview participants. These interviews will support a holistic quantitative and qualitative analysis that reflects viewpoints and needs of those most knowledgeable about and most affected by the project. Task 3.2. Technical Data Collection and AnalysisKittelson will compile and review qualitative and quantitative data inputs from prior tasks and combine these with data Kittelson has gathered for BPTP Update, including multimodal intersection turning movement and ADT speed and volume counts collected in June 2024 and existing and proposed bicycle and pedestrian infrastructure. Kittelson will conduct a large-scale desktop review of existing conditions within the study area, considering things like bicycle facility width, pavement condition, sidewalk presence, ADA treatments, driveway presence, curb radii, and other elements which may affect the experience of people walking and biking throughout the area. As we collect and review satellite imagery data, we will identify items to field verify on a site visit. As part of this task, we will conduct a field visit with up to three staff from the consultant team. Kittelson will coordinate with City staff to select a day and time period that would be most informative for the analysis and understanding of existing conditions (e.g., morning school commute period). According to the initial project schedule, the field visit would be conducted in October Item 14
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when school is in session and the weather and daylight conditions continue to be conducive to walking and biking. Kittelson will use these inputs to complete the analysis of baseline conditions, which may include information related to demographics of residents within the study area, commuting and travel to school characteristics, vehicle, bicycle, and pedestrian counts, access to transit stations, walk and roll routes to school, comfort, safety, and network connectivity, characteristics of existing railroad crossings and future potential alignments. Considering the analysis approach and methodology for the evaluation criteria identified in Task 4 to analyze and compare alternatives, the Kittelson team will identify gaps in current data that may hinder comprehensive understanding of the study area or prevent the ability to design or analyze the alternatives using the proposed evaluation criteria. After identifying data gaps and needs, Kittelson will work with the city to formulate a plan to overcome these challenges, e.g., collect additional counts, conduct field observations, purchase data, hold additional interviews, select an alternative performance measure. Task 3.3. Existing Conditions Report Kittelson will prepare a draft, revised draft, and final technical report summarizing input from the community needs assessment (Task 2), findings from the literature review (Task 3.1), and the technical data and analysis (Task 3.2). In an effort to keep the document succinct and to the point, the topics covered in the memorandum will be chosen for their relevance and usefulness in supporting selection of preferred alternatives. Kittelson will prepare a report outline and collaborate with the City on the topics and level of detail to be conducted for the analyses. The memorandum will be visual, relying on maps and graphics more than narrative to convey concepts and information. Supporting materials (e.g., historic traffic volumes, collision records) will be provided in a technical appendix. We will respond to one consolidated set of comments on the draft technical report and prepare a revised draft technical report for City review. We will respond to one consolidated set of comments on the revised draft technical report and prepare a final report for publication. This document will serve as the baseline against which the alternatives are evaluated and compared in Task 5, using the evaluation framework and criteria developed in Task 4. Task 3 Deliverables: - Draft Existing Conditions Report Outline - Final Existing Conditions Report and Appendix - Interview Guide and Notes from up to eight interviews with staff, committee members, and community members Item 14
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Task 4. Goals and Evaluation Criteria Task 4.1. Goals and Priorities Using inputs from prior tasks (e.g., literature review, interviews) and information shared by City staff and heard from community members, Kittelson will draft goals and identify an initial list of project priorities to inform the development of the alignment and subsequent concept design options, which may include: Sustainability: Expand transportation options and access to critical destinations and limit impacts on the environment Connectivity: Strengthen active transportation linkages in Southern Palo Alto Safety and Health: Enhance safety and comfort of people walking and biking to school Constructability: Minimize potential for disruption during construction Funding and Implementation: Leverage partnerships between the City, Caltrain, and other project partners to position the project for implementation These goals and priorities will be co-created with community members in the first round of outreach. The resulting goals and objectives will directly inform the criteria against which the alternatives will be evaluated. Task 4.2. Evaluation Framework and Criteria Kittelson proposes a two-stage evaluation to streamline the evaluation process and first filter concepts (preliminary evaluation criteria) that don’t meet established criteria and then evaluate and compare concepts (secondary evaluation criteria) that show more promise. As part of this task, Kittelson will work with the City and relevant stakeholders to determine the appropriate evaluation criteria to include at each stage of the analysis based on available data, keeping in mind the level of information needed to support decision making. The evaluation criteria would be determined based on the goals established in Task 4.1 and would include quantitative and qualitative metrics that could be scored individually and compared in a scoring matrix. Potential criteria will consider challenges and opportunities, which may include those listed in the RFP: Walking and biking connectivity to destinations Safety for people walking, biking, driving, and taking transit Distance to key destinations and existing/planned bicycle and pedestrian facilities Travel patterns and potential for traffic diversion Right-of-way acquisitions and easements Environmental impacts, including aesthetic and visual impacts Community benefits and opportunity sites Construction phasing and impacts during construction Construction and maintenance costs Task 4.3. Goals and Evaluation Criteria Memorandum Kittelson will prepare a draft and final technical memorandum presenting the project goals and priorities (Task 4.1), and the evaluation framework and criteria (Task 4.2). The document will provide clear and transparent description of the performance measures and documentation and use plain language and Item 14
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graphics as well as straightforward narrative illustrating how the evaluation criteria will be analyzed and scored. We will respond to one consolidated set of comments from the City on the draft technical memorandum and prepare a final memorandum. We will respond to one additional consolidated set of comments from advisory committee members and prepare an Updated Design Priorities and Evaluation Criteria Memorandum that will be the basis for the alternatives analysis conducted in Task 5. Task 4 Deliverables: - Project goals and priorities - Evaluation Framework and Criteria - Draft Design Priorities and Evaluation Criteria Memorandum - Final Design Priorities and Evaluation Criteria Memorandum - Updated Design Priorities and Evaluation Criteria Memorandum Task 5. Alternatives Development and Selection of Preferred Alternatives Task 5.1. Identify Crossing Locations and Develop Design Concepts Working with City staff and community members, the Kittelson team will develop alignment alternatives with the primary aim of improving pedestrian/bicycle connectivity over the railroad in Palo Alto south of Oregon Expressway. Guided by the project’s goals and priorities, the team will apply a two-stage evaluation process to determine up to two preferred alignments and their concept design features. The process consists of: - Identify the full range of alignments and potential design options o The team will consider alignments considered as part of prior plans and supplement this list with additional alignments based on baseline conditions analysis, public input, and feedback from City staff - Evaluate the alignment alternatives with a set of preliminary evaluation criteria o This qualitative “scorecard” exercise will narrow the initial universe of options to a handful of promising alternatives. This initial step enables subsequent concept design work to focus on the most viable alignments. - Develop concept design options for a subset of up to eight promising alignment alternatives o Concepts will be developed at a sketch level with sufficient detail to establish preliminary cross-sections, landing/touchdown points, on-street treatments and intersection modifications, and key design elements of the alignment (e.g., underpass, overcrossing, structural elements) o Up to eight graphics (e.g., cross sections, plan views, renderings) will be prepared to illustrate the alignment options The selected alignment alternatives will be evaluated with a set of secondary evaluation criteria as part of Task 5.2. Kittelson will prepare a Draft Initial Screening Memorandum documenting the work completed in this task. We will respond to one consolidated set of comments on the draft technical memorandum and prepare a revised draft memorandum. We will respond to one consolidated set of comments on the Item 14
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revised draft memorandum and prepare a final memorandum.Task 5.2. Alternatives AnalysisThe Kittelson team will analyze up to eight alignment alternatives against the set of secondary evaluation criteria established in Task 4, which are based on the project goals and priorities developed under Task 3. The criteria will be a mix of quantitative and qualitative measurements or assessments depending on the criterion under focus and availability of information to support the evaluation. Evaluation of each alternative will be in relation to other alternatives, rather than against an absolute scale. All criteria will be weighted equally for the purposes of the evaluation. Kittelson will prepare a draft, revised draft, and final analysis summary matrix for use in public engagement and the Alternatives Analysis Report. Information will be presented in a summary matrix with supporting narrative. Materials prepared for this task will be public-facing for use in community engagement. Kittelson will prepare a draft, revised draft, and final analysis summary matrix for use in public engagement and the Alternatives Analysis Report. The Kittelson team will prepare graphics to visualize the alternatives in plan view with annotated call outs to describe key features. Illustrative sections and example renderings may also be provided to illustrate specific features. We will prepare graphics for eight alternatives. We will respond to one consolidated set of comments on the draft and prepare a revised draft. We will respond to one consolidated set of comments on the revised draft and prepare a final set of graphics for public engagement and use in the Alternatives Analysis Report. Kittelson will prepare a Draft Alternatives Analysis Outline for City review. Kittelson will respond to one consolidated set of comments on the draft outline and prepare a Draft Alternatives Analysis Report documenting the work completed in this task. We will respond to one consolidated set of comments on the draft report and prepare a revised draft report. We will respond to one consolidated set of comments on the revised draft report and prepare a final report. Up to two alternatives will be carried forward from this task for refinement as part of Task 5.3. Task 5.3. Preferred Alternatives This task includes: Refinement of one alternative (Alternative A1) based on feedback from community engagement efforts conducted in Phase 1 and Phase 2 Development of a new alternative (Alternative A2) at a conceptual level, similar to that prepared for the eight alternatives analyzed in Task 5.2 Preparation of a traffic study to evaluate neighborhood circulation impacts and support development of accompanying transportation network enhancements Preparation of concept level exhibits (plan view and cross-section) to illustrate accompanying bicycle and pedestrian network enhancements Revisions to the two concept alternatives 15 percent design plan and profile drawings to Item 14
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incorporate Phase 3 feedback Revisions to the recommended network enhancements conceptual plan view graphics to incorporate Phase 3 feedback The Kittelson team will prepare draft and final graphics illustrating the refinements to Alternative A1 and new Alternative A2 and recommended network enhancements. These four graphics will be prepared at a conceptual level, similar to that prepared for the eight alternatives analyzed in Task 5.2 and will be used during engagement activities during Phase 3. The Kittelson team will use feedback gathered during Phase 3 to inform refinements to Alternatives A1 and A2 and network enhancements. Incorporating this feedback, the team will prepare a draft, revised draft, and final plan view and profile at the 15 percent concept design level. The team will also prepare a final concept-level exhibit (plan view and cross-section) illustrating the recommended network enhancements accompanying the crossing for each alternative. Improvements along side streets and parallel routes will be considered to account for potential traffic diversion. The Kittelson team will evaluate the two preferred concept alternatives against a subset of the evaluation criteria established in Task 4: cost, personal security, property impacts, and neighborhood traffic impacts. The Kittelson team will prepare rough order of magnitude cost estimates and an accompanying traffic study to evaluate the alternatives. The results will be presented alongside a narrative documenting the inputs and assumptions and methodology used in the analyses and an assessment of the potential benefits, challenges, and recommendations to minimize traffic impacts, minimize property impacts, maximize safety and personal security, and improve conditions for all users. The analysis and findings will be documented in the report prepared as part of Task 6. Kittelson will coordinate with the City to define the traffic study area and count locations, focusing on streets, intersections, and parallel routes near the crossing with potential circulation impacts. The Kittelson team will develop a simplified, off-model analysis methodology appropriate for a planning-level assessment of vehicular, bicyclist, and pedestrian diversion under future year conditions. The Kittelson team will use the off-model tool to calculate and summarize redistribution of trips and assess neighborhood and circulation impacts to support identification of accompanying transportation network enhancements. Work completed in this task will be completed keeping in mind the project implementation process and requirements outlined in the Caltrain Corridor Crossings Delivery Guide, as well as future funding sources, such as competitiveness for grant applications. The narrative and exhibits prepared will speak to evaluation criteria from relevant grant programs and be readily transferrable to grant applications, including ATP, ATIIP, RCN, and HSIP. The preferred alternative and selection process will be documented in the report prepared as part of Task 6. Task 5.4. Implementation Plan The Kittelson team will prepare an implementation plan consistent with the project implementation process and requirements outlined in the Caltrain Corridor Crossings Delivery Guide, including the next steps needed to complete the Preliminary (15%) Design Submittal Checklist. The document will provide clear and transparent description of the project timeline, including estimated costs and funding opportunities for each phase of project delivery. The plan will also identify key considerations for implementation, along with recommendations for environmental documentation and preparation of the Item 14
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required analyses to support CEQA/NEPA clearance. The implementation plan will be documented in the report prepared as part of Task 6. Task 5 Deliverables: - Draft, Revised Draft, and Final Initial Screening Memorandum - Eight concept alternatives (description and graphics - plan view, section, and/or renderings) - Draft, Revised Draft, and Final Alternatives Analysis Methodology Memo - Draft, Revised Draft, Final Alternatives Analysis Matrix - Draft Alternatives Analysis Report Outline - Draft, Revised Draft, and Final Alternatives Analysis Report - Draft, Revised Draft, and Final 5% and 15% Design Exhibits (Plan View, Profile) for two Alternatives - Draft, Revised Draft, and Final Concept Exhibits (Plan View, Cross Section) for Accompanying Network Enhancements Task 6. Southern Palo Alto Bicycle and Pedestrian Railroad Crossing Study Report Task 6.1. Administrative Draft Study Report Kittelson will prepare an outline of the draft study report for City and Caltrain review. The report will document selection of the preferred alternative and next steps toward implementation based on work completed in Task 5.3 and Task 5.4. Kittelson will incorporate one set of consolidated comments on the outline and prepare an administrative draft study report. The document will be formatted as an ADA accessible and interactive pdf for posting on the project website. Task 6.2. Public Draft Study Report Kittelson will address one set of consolidated comments from the City on the administrative draft study report and prepare a public draft study report for posting on the project website. Task 6.3. Final Study Report Kittelson will compile and summarize public comments received on the public draft study report. Kittelson will address and incorporate comments received into the final study report and prepare a comment response matrix to share back with the public indicating how the comments were incorporated and addressed. Task 6 Deliverables: - Draft Report Outline - Administrative Draft Study Report - Public Draft Study Report - Response to public comments - Final Study Report Item 14
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Task 7. Grant Application Support Kittelson will work with the city to advance implementation of the preferred alternative(s) by identifying relevant grants and funding opportunities and supporting the development of grant applications and other requests for funding. Kittelson will leverage extensive experience preparing successful grant applications to set the city up for success with implementation. As part of this task, Kittelson will prepare and maintain a grant tracker that identifies relevant grant and funding opportunities, and highlights key elements of the application process, including, for example: schedule, project eligibility requirements, application criteria, and funding amounts. Kittelson will also support the City preparing materials for grant applications, including maps, graphics, and narrative. Task 7 Deliverables: - Preparing and maintaining grant tracker - Support preparing grant applications Item 14
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EXHIBIT A-1 PROFESSIONAL SERVICES TASK ORDER, AMENDMENT NO. 1 (ADDED) 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 ___________________________________ Item 14
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EXHIBIT B SCHEDULE OF PERFORMANCE. AMENDMENT NO. 1 (AMENDED, REPLACES PREVIOUS) CONSULTANT shall perform the Services so as to complete each milestone within the number of days/weeks specified below. The time to complete each milestone may be increased or decreased by mutual written agreement of the Project Managers for CONSULTANT and CITY so long as all work is completed within the term of the Agreement. CONSULTANT shall provide a detailed schedule of work consistent with the schedule below within 2 weeks of receipt of the notice to proceed (“NTP”) from the CITY.MilestonesCompletion Number of Days/Weeks (as specified below) from NTP 1. Task 1. Project Management and Coordination Projected 775 working days, or to be determined by CONSULTANT and CITY’SProject Manager within terms of Agreement.2. Task 2. Community Outreach and Engagement Projected 775 working days, or to be determined by CONSULTANT and CITY’SProject Manager within terms of Agreement.3. Task 3. Data Collection and Analysis of Existing Conditions Projected 140 working days or to be determined by CONSULTANT and CITY’S Project Manager within terms of Agreement.4. Task 4. Goals and Evaluation CriteriaProjected 85 working days or to be determinedby CONSULTANT and CITY’S Project Manager within terms of Agreement. 5. Task 5. Alternatives Development and Selection of Preferred AlternativesProjected 390 working days or to be determined by CONSULTANT and CITY’SProject Manager within terms of Agreement.6. Task 6. Southern Palo Alto Bicycle and Pedestrian Railroad Crossing Study ReportProjected 330 working days or to be determined by CONSULTANT and CITY’S Project Manager within terms of Agreement.7. Task 7. Grant Application SupportProjected 400 working days or to be determined by CONSULTANT and CITY’S Project Manager within terms of Agreement. Optional Schedule of Performance Provision for On-Call or Additional Services Agreements. (This provision only applies if checked and only applies to on-call agreements per Section 1 or agreements with Additional Services per Section 4.) The schedule of performance shall be as provided in the approved Task Order, as detailed in Item 14
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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, AMENDMENT NO. 1 (AMENDED, REPLACES PREVIOUS) 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 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 AMOUNTTask 1 (Project Management & Coordination) $37,950.88 Task 2 (Community Outreach) $130,172.99 Task 3 (Existing Conditions)$69,782.50 Task 4 (Goals and Priorities) $37,072.00 Task 5 (Alternatives Development and Analysis )$163,860.75 Task 6 (Study Report) $22,000 Task 7 (Grant Application Support) $11,600 Item 14
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Sub-total for Services$472,439.12Reimbursable Expenses (if any)$14,654.88 Total for Services and Reimbursable Expenses $487,094.00 Additional Services (if any, per Section 4) $12,396.20 Maximum Total Compensation$499,490.20 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. 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: up to the not-to-exceed amount of:$14,654.88. A. Travel outside the San Francisco Bay Area, 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, AMENDMENT NO. 1 (AMENDED, REPLACES PREVIOUS) CONSULTANT’s schedule of rates is as follows, subject to the terms and conditions of Exhibit C regarding Reimbursable Expenses:

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KITTELSON & ASSOCIATES, INC. BILLING RATE SCHEDULEEffective July 1, 2026The current billing rates for Kittelson & Associates, Inc., staff are as follows and are subject to change:StaffBillingRateSenior Principal Engineer/Planner $348Principal Engineer/Planner $313Associate Engineer/Planner $265Senior Engineer/Planner $238Engineer/Planner $203Transportation Analyst $183Principal Data Scientist/Developer $283Senior Data Scientist/Developer $263Data Scientist/Developer $243Data Analyst/Software Developer $188Software Technician $133Associate Technician $213Senior Technician $193Technician II $168Technician I $143Office Support $123Service & Other Direct Costs BillingRateMileageCurrent IRS mileagerateTravel & Other Direct Costs ActualCostsSubconsultants ActualCosts Item 14
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Item 14
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City Council
Staff Report
Report Type: CONSENT CALENDAR
Lead Department: City Clerk
Meeting Date: August 10, 2026
Report #:2606-6507
TITLE
SECOND READING: Ordinance of the Council of the City of Palo Alto Amending Section 18.18.120 of Title 18 (Zoning) of the Palo Alto Municipal Code to Allow Greater Flexibility for Noncomplying Facilities in the Commercial Downtown District (FIRST READING: June 15, 2026; PASSED: 7-0)

BACKGROUND
The City Council heard this item on June 15, 2026 for a first reading and approved it on a 7-0 vote.

No changes were made to the ordinance, and it is now before the City Council for a second reading.

ATTACHMENTS
Attachment A: Ordinance of the Council of the City of Palo Alto Amending Section 18.18.120 of Title 18 (Zoning) of the Palo Alto Municipal Code to Allow Greater Flexibility for Noncomplying Facilities in the Commercial Downtown District
APPROVED BY:

Mahealani Ah Yun, City Clerk
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Ordinance No. _____

Ordinance of the Council of the City of Palo Alto Amending Section 18.18.120 of Title 18 (Zoning) of the Palo Alto Municipal Code to Allow Greater Flexibility for Noncomplying Facilities in the Commercial Downtown District

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

SECTION 1. Section 18.18.120 (Noncomplying (Grandfathered) Uses and Facilities) of Chapter 18.18 (Downtown Commercial (CD) District) of Title 18 (Zoning) of the Palo Alto Municipal Code is amended as follows (additions underlined; deletions struck-through):

18.18.120 Noncomplying (Grandfathered) Uses and Facilities (a) Noncomplying (Grandfathered) Uses
(1) The following uses and facilities may remain as legal noncomplying (grandfathered) uses, and shall not require a conditional use permit or be subject to the provisions of Chapter 18.70:
(A) Any use which was being conducted on August 28, 1986; or (B) A use not being conducted on August 28, 1986, if the use was temporarily discontinued due to a vacancy of 6 months or less before August 28, 1986; or (C) Any office use existing on April 16, 1990 on a property zoned CD and GF combining, which also existed as a lawful conforming use prior to August 28, 1986, notwithstanding any intervening conforming use.
(2) The legal noncomplying uses in subsection (1) shall be permitted to remodel, improve, or replace site improvements on the same site, for continual use and occupancy by the same use, provided such remodeling, improvement, or replacement complies with all of the following:
(A) shall not result in increased floor area;
(B) shall not relocate below grade floor area to above grade portions of the building; (C) shall not result in an increase of the height, length, building envelope, building footprint or any other increase in the size of the improvement. For purposes of this section, “building envelope” shall mean the three dimensional shape and size occupied by an existing building. It is not the maximum, buildable potential of the site; (D)(C) shall not increase the degree of noncompliance, except pursuant to the exceptions to floor area ratio regulations set forth in Section 18.18.070; or Item 15
Attachment A - Ordinance
of the Council of the City of
Palo Alto Amending Section

18.18.120 of Title 18
(Zoning) of the Palo Alto
Municipal Code to Allow
Greater Flexibility for
Noncomplying Facilities in
the Commercial Downtown
District

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(E)(D) in the case of medical, professional, general business or administrative office uses of a size exceeding 5,000 square feet in the CD-S or CD-N district that are deemed legal noncomplying pursuant to subsection (1), such remodeling, improvement, or replacement shall not result in increased floor area devoted to such office uses. (F)(E) The Director may approve minor changes to the building’s footprint, height, length, and the building envelope through Architectural Review of minor aesthetic architectural improvements and to improve pedestrian orientation provided there is no increase to the degree of any non- complying feature.
(3) If a legal noncomplying use deemed existing pursuant to subsection (1) ceases and thereafter remains discontinued for 12 consecutive months, it shall be considered abandoned and may be replaced only by a conforming use.
(4) A use deemed legal noncomplying pursuant to subsection (1) which is changed to or replaced by a conforming use shall not be reestablished, and any portion of a site or any portion of a building, the use of which changes from a legal noncomplying use to a conforming use, shall not thereafter be used except to accommodate a conforming use. (b) Noncomplying (Grandfathered) Facilities
(1) Any noncomplying (grandfathered) facility existing on August 28, 1986 and which, when built, was a complying facility, may remain as a legal noncomplying facility and shall not be subject to the provisions of Chapter 18.70.
(2) The legal noncomplying facilities in subsection (1) shall be permitted to remodel, improve, or replace site improvements on the same site, provided such remodeling, improvement, or replacement complies with all of the following:
(A) shall not result in increased floor area;
(B) shall not relocate below grade floor area to above grade portions of the building; (C) shall not result in an increase of the height, length, building envelope, building footprint, or any other increase in the size of the improvement; (D)(C) shall not increase the degree of noncompliance, except pursuant to the exceptions to floor area ratio regulations set forth in Section 18.18.070; (E)(D) The Director may approve minor changes to the building’s footprint, height, length, and the building envelope through Architectural Review of minor aesthetic architectural improvements and to improve pedestrian-orientation provided there is no increase to the degree of any non- complying feature, except as provided for rooftop access and amenities in Section 18.18.060(e).
(F)(E) The residential portion of any legal noncomplying facility shall not be converted to a non- residential land use or reduced in gross floor area or number of units. An applicant asserting that the operation of this subsection (F) is preempted by state or federal law Item 15
Attachment A - Ordinance
of the Council of the City of
Palo Alto Amending Section

18.18.120 of Title 18
(Zoning) of the Palo Alto
Municipal Code to Allow
Greater Flexibility for
Noncomplying Facilities in
the Commercial Downtown
District

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shall submit a statement of its position with all claims and all supporting documentary evidence at the time it applies for a change of use. The City Council shall hold at least one noticed public hearing in accordance with the procedures set forth in PAMC 18.77.080 to consider whether to waive or adjust the requirements of one or more provisions of Titles 18 or 21. The City Council may seek additional information including, without limitation, third party peer review paid for at the applicant’s expense.

SECTION 2. The Council finds that this Ordinance is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3) because it can be seen with certainty that there is no possibility that it will have a significant effect on the environment.

SECTION 3. This Ordinance shall be effective on the thirty-first date after the date of its adoption.

INTRODUCED:

PASSED:

AYES:

NOES:

ABSENT:

ABSTENTIONS:

ATTEST:

____________________________ ____________________________ City Clerk Mayor

APPROVED AS TO FORM: APPROVED:

____________________________ ____________________________ Assistant City Attorney City Manager

____________________________
Director of Planning and
Development Services
Item 15
Attachment A - Ordinance
of the Council of the City of
Palo Alto Amending Section

18.18.120 of Title 18
(Zoning) of the Palo Alto
Municipal Code to Allow
Greater Flexibility for
Noncomplying Facilities in
the Commercial Downtown
District

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City Council
Staff Report
Report Type: CONSENT CALENDAR
Lead Department: City Clerk
Meeting Date: August 10, 2026
Report #:2606-6508
TITLE
SECOND READING: Ordinance of the Council of the City of Palo Alto Amending Various Chapters of Title 18 (Zoning) and Chapter 16.59 (Citywide Transportation Impact Fee of the Palo Alto Municipal Code, and the Zoning Map, to Implement Retail Vitality Measures (FIRST READING:

June 15, 2026; PASSED: 7-0)

BACKGROUND
The City Council heard this item on June 15, 2026 for a first reading and approved it on a 7-0 vote.

No changes were made to the ordinance, and it is now before the City Council for a second reading.

ATTACHMENTS
Attachment A: Ordinance of the Council of the City of Palo Alto Amending Various Chapters of Title 18 (Zoning) and Chapter 16.59 (Citywide Transportation Impact Fee of the Palo Alto Municipal Code, and the Zoning Map, to Implement Retail Vitality Measures APPROVED BY:

Mahealani Ah Yun, City Clerk
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Ordinance No. _____

Ordinance of the Council of the City of Palo Alto Amending Various Chapters of Title 18 (Zoning) and Chapter 16.59 (Citywide Transportation Impact Fee of the Palo Alto Municipal Code, and the Zoning Map, to Implement Retail Vitality Measures

SECTION 1. Findings and Declarations. The City Council finds and declares as follows:

A. Like many communities, the City of Palo Alto has experienced high vacancy rates in retail districts, which have been compounded by challenges associated with the COVID-19 pandemic as well as ongoing retail trends. Accordingly, the City Council has included retail vitality as a Council priority for the past several years.

B. Throughout 2023 and 2024, City staff, the Planning and Transportation Commission (PTC), and the City’s consultant Michael Baker International (MBI) worked together to develop a Retail Study Report intended to inform a citywide retail zoning strategy.

C. On September 18, 2024, the City Council Retail Committee reviewed the Final Draft Retail Study Report and provided direction to staff on several zoning amendments should be implemented immediately to support retail and retail-like uses in the City.

D. The PTC held six hearings on the Retail Study (in addition to four meetings of the PTC retail ad hoc committee).

E. In December 16, 2024, the City Council adopted interim ordinance no. 5642, temporarily implementing some of the recommendations of the Retail Study, while directing further work by staff and the PTC on a permanent ordinance.

F. On October 29, 2025, the PTC reviewed additional analysis and recommendations prepared by staff and the City’s consultant Lexington Planning.

G. On March 25, 2026, the PTC reviewed issues and options to encourage ground-floor retail, provided comments, and recommended that the City Council adopt an ordinance.

H. On June 3, 2026, the City Council Economic Development Committee provided comments and recommended unanimously that the City Council adopt a retail vitality ordinance.

I. The City Council now desires to adopt a retail vitality ordinance to replace interim ordinance no. 5642.

SECTION 2. All references in the Palo Alto Municipal Code to “Conditional Use Permit” shall be amended to read “Administrative Use Permit.” All references in the Palo Alto Municipal Code to “CUP” shall be amended to read “AUP.” All references in the Palo Alto Municipal Code to “conditionally permitted” shall be amended to read “administratively Item 16
Attachment A - Ordinance
of the Council of the City of
Palo Alto Amending Various
Chapters of Title 18 (Zoning)
and Chapter 16.59
(Citywide Transportation
Impact Fee of the Palo Alto
Municipal Code, and the
Zoning Map, to Implement
Retail Vitality Measures

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permitted.”

SECTION 3. Section 18.04.030 (Definitions) of Chapter 18.04 (Definitions) of Title 18 (Zoning) of the Palo Alto Municipal Code is hereby amended as follows (additions underlined; deletions struck-through; text omitted but unchanged noted by bracketed ellipses; unannotated text indicates prior, temporary amendments that would expire if not restated herein):

18.04.030 Definitions

(a) Throughout this title the following words and phrases shall have the meanings ascribed in this section.
(12) “Animal care” means a use providing grooming, housing, medical care, or other services to animals, including veterinary services, animal hospitals, overnight or short-term boarding ancillary to veterinary care, indoor or outdoor kennels, and similar services. (12) “Animal care, daytime” means a use providing care and services during the daytime only, including grooming, socializing, housing, veterinary services, and animal hospitals that do not provide overnight care.
(12.1) “Animal care, overnight” means a use providing care and services that includes overnight or short-term boarding, such as kennels and animal hospitals with overnight care.

[. . .]

(12.6) “Automobile showroom” means a use primarily engaged in the sale of new and used automobiles and trucks, or the display and demonstration of automobiles and trucks for the purpose of facilitating sales, but which does not involve on-site storage of inventory, except as incidental to the showroom use. Automobile showroom serves primarily pedestrian clientele and is distinct from automobile dealership.

[. . .]

(47) “Eating and drinking service” means uses primarily engaged in serving prepared food and/or beverages for consumption on or off the premises. Related definitions are provided in subsections (45) (Drive-in/drive- through service).
(47) (A) “Eating and drinking service, full service” means a use providing preparation and retail sale of food and beverages with a full menu and providing indoor seating area.

Eating and drinking service This use typically includes presence of a full commercial kitchen, and commercial dishwasher, and table service. For establishments with incidental sale alcoholic beverages, a minimum of 50% of revenues from an “eating and drinking service” must be derived from the sale of food. Related definitions are provided in subsections (45) (Drive-in/drive- through service, and (125)(B) (Intensive retail service) and (136) (Take-out service).
(B) “Eating and drinking, limited service” means a use where food and beverages are ready to consume within approximately 15 minutes of the time of sale whether on the premises, taken out, or delivered. Typically, limited seating area and no commercial Item 16
Attachment A - Ordinance
of the Council of the City of
Palo Alto Amending Various
Chapters of Title 18 (Zoning)
and Chapter 16.59
(Citywide Transportation
Impact Fee of the Palo Alto
Municipal Code, and the
Zoning Map, to Implement
Retail Vitality Measures

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kitchen are provided. Examples may include delis, bakeries, frozen dessert shops, pizza shops, counter service restaurants, and coffee shops. For establishments with incidental sale alcoholic beverages, a minimum of 50% of revenues must be derived from the sale of food.
(C) “Bars” mean establishments devoted to serving alcoholic beverages and for which the serving of food is incidental to the consumption of such beverages, with less than 50% of revenues derived from the sale of food.

[. . .]

(56) “Financial service” means a use providing financial services to individuals, firms, or other entities. The term “financial service” includes banks, savings and loan institutions, loan and lending institutions, credit unions and similar services. (A) “Retail finance service” means a financial service use operating in a retail-oriented manner, offering face-to-face interactions, and convenient in-person transactions in locations designed for public access. These services includes retail banks, savings and loan institutions, loan and lending offices, credit unions, and similar services that prioritize walk-in customers with access to immediate financial solutions or combined with a publicly accessible retail component.
[. . .]

(57.6) “Formula retail business” means a retail, personal, or eating and drinking service that is one of fifty (50) or more business locations in the State of California required by contractual or other arrangement to maintain any of the following standardized characteristics:
merchandise, menu, services, decor, uniforms, architecture, facade, color scheme, signs, trademark, or servicemark. For purposes of this definition:
(A) “Standardized merchandise, menu and/or services” means 50% or more of in- stock merchandise from a single distributor bearing the same or similar markings; 50% or more of menu items identical in name and presentation with other locations; or 50% or more of services offered identical in name or presentation with other locations. (B) “Decor” means the style of interior furnishings, which may include but is not limited to, style of furniture, wall coverings or permanent fixtures. (C) “Color Scheme” means the selection of colors used throughout, such as on the furnishings, permanent fixtures, and wall coverings, or as used on the facade. (D) “Uniforms” means standardized items of clothing including but not limited to standardized aprons, pants, shirts, smocks or dresses, hats, and pins (other than name tags) as well as standardized colors of clothing.
(E) “Facade” means the face or front of a building, including awnings, looking onto a street or an open space.
(F) “Trademark” means a word, phrase, symbol or design, or a combination of words, phrases, symbols or designs that identifies and distinguishes the source of the goods from one party from those of others.

Item 16
Attachment A - Ordinance
of the Council of the City of
Palo Alto Amending Various
Chapters of Title 18 (Zoning)
and Chapter 16.59
(Citywide Transportation
Impact Fee of the Palo Alto
Municipal Code, and the
Zoning Map, to Implement
Retail Vitality Measures

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(G) “Servicemark” means a word, phrase, symbol or design, or a combination of words, phrases, symbols or designs that identifies and distinguishes the source of a service from one party from those of others.

[. . .]

(102.6) "Neighborhood-serving offices" are medical offices, professional offices, travel agencies, and insurance agencies that fit the definition of a neighborhood-serving use.

(102.7) A "Neighborhood Serving Use" is not a separate use classification, but describes the class of uses that primarily serve individual consumers and households, not businesses, are generally pedestrian oriented in design, and do not generate noise, fumes or truck traffic greater than that typically expected for uses with a local customer base. A neighborhood- serving use is also one to which a significant number of customers and clients travel, rather than the provider of the goods or services traveling off-site.

[. . .]

(114) “Personal service” means a use providing services of a personal convenience nature, and cleaning, repair or sales incidental thereto, including:
(A) Beauty shops, nail salons, day spas, and barbershops; (B) Self-service laundry and cleaning services; laundry and cleaning pick-up stations where all cleaning or servicing for the particular station is done elsewhere; and laundry and cleaning stations where the cleaning or servicing for the particular station is done on site, utilizing equipment meeting any applicable Bay Area Air Quality Management District requirements, so long as no cleaning for any other station is done on the same site, provided that the amount of hazardous materials stored does not at any time exceed the threshold which would require a permit under Title 17 (Hazardous Materials Storage) of this code;
(C) Repair and fitting of clothes, shoes, and personal accessories; (D) Quick printing and copying services where printing or copying for the particular service is done on site, so long as no quick printing or copying for any off-site printing or copying service is done on the same site;
(E) Internet and other consumer electronics services;
(F) Film, data and video processing shops, including shops where processing for the particular shop is done on site, so long as no processing for any other shop is done on the same site;
(G) Art, dance or music studios intended for an individual or small group of persons in a class (see “commercial recreation” for other activities); and (H) Fitness and exercise studios, or similar uses, in a space having 5,000 square feet or fewer of gross floor area (see “commercial recreation” for uses exceeding 5,000 square feet).

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(I) Learning centers intended for individual or small group settings, including tutoring, standardized test preparation, language classes, after-school programs, cooking classes, and similar uses.
(J) Health screening, including biometric body scanning, imaging, or other health testing services directly serving the public, so long as no medical treatment is provided and the service is not intended to fulfill outside medical orders.

[. . .]

(125) “Retail service” means a use open to the public during typical business hours and predominantly engaged in providing retail sale, rental, service, processing, or repair of items primarily intended for consumer or household use.
(A) “Extensive retail service,” as used with respect to parking requirements, means a retail sales use having more than seventy-five percent of the gross floor area used for display, sales, and related storage of bulky commodities, including household furniture and appliances, lumber and building materials, carpeting and floor covering, air conditioning and heating equipment, and similar goods, which uses have demonstrably low parking demand generation per square foot of gross floor area. (B) “Intensive retail service” as used with respect to parking requirements, means any retail service use not defined as extensive retail service, such as boutiques, bookstores, and small goods retail shops. and including limited food service (i.e. ‘ready-to-eat’ food and/or beverage shops without a full commercial kitchen, where food and/or beverages are ready to consume at the time of sale and any seating area is limited; examples include sandwiches, frozen desserts, non-alcoholic beverages, and baked items).

(125.1) “Retail-like use” means a use generally open to the public during typical business hours and predominantly engaged in providing services closely related to, but distinct from, retail services, including but not limited to:
(A) Eating and drinking services, as defined in subsection (47); (B) Hotels, as defined in subsection (73);
(C) Personal services, as defined in subsection (114);
(D) Theaters;
(E) Travel agencies;
(F) Commercial recreation, as defined in subsection (33); (G) Commercial nurseries;
(H) Automobile showrooms, as defined in subsection (12.6); (I) Day care centers, as defined in subsection (42);
(J) Retail financial services, as defined in subsection (56)(A); and (K) Other commercial uses, services, or activities determined by the Director of Planning and Development Services to be accessible to the general public, generate walk-in pedestrian clientele, and contribute substantially to a high level of pedestrian activity, and meet the intent of the 18.30(B).040 (Pedestrian Shopping) design standards.

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Not all retail-like uses are permitted in zoning districts that allow retail-like uses. Refer to use tables within each zoning district for specific permitted retail-like uses.

[. . .]

(136) “Take-out service” means a characteristic of an eating or drinking service which encourages, on a regular basis, consumption of food or beverages, such as prepared or prepackaged items, outside of a building, in outdoor seating areas where regular table service is not provided, in vehicles parked on the premises, or off-site. Take-out service does not include intensive retail service uses, as defined in subsection (125)(B).

[. . .]

SECTION 4. Section 18.08.040 of the Palo Alto Municipal Code, the “Zoning Map,” is hereby amended by changing the zoning of the properties identified in Exhibit A by removing the Ground Floor (GF) combining district.

SECTION 5. Sections 18.16.030 (Definitions), 18.16.040 (Land Uses), 18.16.050 (Office Use Restrictions), and 18.16.060 (Development Standards) of Chapter 18.16 (Neighborhood, Community, and Service Commercial (CN, CC and CS) Districts) of Title 18 (Zoning) of the Palo Alto Municipal Code are hereby amended as follows (additions underlined; deletions struck- through; text omitted but unchanged noted by bracketed ellipses):

18.16.030 Definitions

[. . .]

(e) "Neighborhood-serving offices" are medical offices, professional offices, travel agencies, and insurance agencies that fit the definition of a neighborhood-serving use. (f) A "Neighborhood Serving Use" is a use that primarily serves individual consumers and households, not businesses, is generally pedestrian oriented in design, and does not generate noise, fumes or truck traffic greater than that typically expected for uses with a local customer base. A neighborhood-serving use is also one to which a significant number of customers and clients travel, rather than the provider of the goods or services traveling off-site.
[. . .]

18.16.040 Land Uses
The uses of land allowed by this chapter in each commercial zoning district are identified in the following tables. Land uses that are not listed on the tables are not allowed, except where otherwise noted. Where the last column on the following tables (“Subject to Regulations in”) includes a section number, specific regulations in the referenced section also apply to the use; Item 16
Attachment A - Ordinance
of the Council of the City of
Palo Alto Amending Various
Chapters of Title 18 (Zoning)
and Chapter 16.59
(Citywide Transportation
Impact Fee of the Palo Alto
Municipal Code, and the
Zoning Map, to Implement
Retail Vitality Measures

Item 16: Staff Report
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7 Packet Pg. 293 of 412

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however, provisions in other sections may apply as well. For properties with combining district zoning designations, refer to combining district use regulations for additional or superseding requirements.
(a) Commercial Zones and Land Uses
Permitted and conditionally permitted land uses for each commercial zone are shown in Table 1:

TABLE 1

PERMITTED AND CONDITIONALLY PERMITTED USES
P = Permitted Use CUP = Conditional Use Permit Required

LAND USE

CN (4)

CC, CC(2)

CS (4)
Subject to Regulations In:

ACCESSORY AND SUPPORT USES
Accessory facilities and activities customarily associated with or essential to permitted uses, and operated incidental to the principal use.

18.42 Drive-in services or take-out services associated with permitted uses(3) CUP CUP CUP 18.42 Tire, battery, and automotive service facilities, when operated incidental to a permitted retail service or shopping center having a gross floor area of more than 30,000 square feet.

CUP

18.42,

18.40.160
Safe Parking 18.42.160

EDUCATIONAL, RELIGIOUS, AND ASSEMBLY USES
Business and Trade Schools CUP P P
Churches and Religious Institutions P P P
Private Educational Facilities CUP P P
Private Clubs, Lodges, or Fraternal Organizations CUP P P

MANUFACTURING AND PROCESSING USES
Recycling Centers CUP CUP CUP
Warehousing and Distribution CUP

OFFICE USES
Administrative Office Services P 18.16.050
Medical Offices PCUP(5)(7) PCUP(5) PCUP(5) 18.16.050
Professional and General Business Offices P(7) P P 18.16.050

PUBLIC/QUASI-PUBLIC USES
Utility Facilities essential to provision of utility services but excluding construction or storage yards, maintenance facilities, or corporation yards.

CUP

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LAND USE

CN (4)

CC, CC(2)

CS (4)
Subject to Regulations In:

RECREATION USES
Commercial Recreation CUPP(5) CUPP(5) CUPP(5) 18.40.160 Outdoor Recreation Services CUP CUP CUP

RESIDENTIAL USES
Multiple-Family P(1) P(1) P(1) 18.16.060(b)
and (c)
Home Occupations P P P
Residential Care Homes P P P

RETAIL USES
Automobile Showroom P P P
Bars CUP CUP 18.42.090
Eating and Drinking Services, excluding drive-through drive-in and take-out services
P(8) P P 18.40.160

18.42.090
Retail Services, excluding liquor stores P(8) P P 18.40.160 Liquor stores CUP P P 18.40.160
Shopping Centers P 18.16.060(c),

18.40.160

SERVICE USES
Ambulance Services CUP CUP CUP
Animal Care, daytime excluding boarding and kennels P P P 18.42.130 Animal Care, overnight CUP CUP CUP 18.42.130
Automobile Service Stations CUP CUP CUP 18.30(G)
Automotive Services CUP
Convalescent Facilities CUP P P
Day Care Centers P P P 18.40.160
Small Family Day Care Homes P P P
Large Family Day Care Homes P P P
Small Adult Day Care Homes P P P
Large Adult Day Care Homes CUP P P
Banks and Financial Services V CUP P(2) P(2) P(2)
General Business Services CUP CUP P
Hotels P P 18.16.060(d),

18.40.160
Item 16
Attachment A - Ordinance
of the Council of the City of
Palo Alto Amending Various
Chapters of Title 18 (Zoning)
and Chapter 16.59
(Citywide Transportation
Impact Fee of the Palo Alto
Municipal Code, and the
Zoning Map, to Implement
Retail Vitality Measures

Item 16: Staff Report
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9 Packet Pg. 295 of 412

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LAND USE

CN (4)

CC, CC(2)

CS (4)
Subject to Regulations In:

Mortuaries CUP P P
Neighborhood Business Services P 18.16.060(f)
Personal Services P P(6) P 18.16.060(f),

18.40.160
Reverse Vending Machines P P P

TEMPORARY USES
Farmer’s Markets CUP CUP CUP
Temporary Parking Facilities, provided that such facilities shall remain no more than five years.

CUP CUP CUP

TRANSPORTATION USES
Parking as a principal use CUP CUP
Transportation Terminals CUP CUP
P = Permitted Use CUP = Conditional Use Permit Required (1) Residential is only permitted in the following instances and pursuant to 18.16.060(b) and (c):
(i) Aas part of a mixed use development, except on CN sites in the Midtown Shopping District and Charleston Shopping Center; or pursuant to the provisions of Section 18.16.060(b), or (ii) Oon sites designated as housing inventory sites in the Housing Element of the Comprehensive Plan; or
(iii) Oon CN or CS sites on El Camino Real; or
(iv) Oon CC(2) sites.
(2) Except drive-through drive-in services.
(3) So long as drive up facilities, excluding car washes, provide full access to pedestrians and bicyclists. A maximum of two such services shall be permitted within 1,000 feet, and each use shall not be less than 150 feet from one another.
(4) For properties in the CN and CS zone districts, businesses that operate or have associated activities at any time between the hours of 10:00 p.m. and 6:00 a.m. require a conditional use permit. (5) Except, a A conditional use permit is not required for medical office or commercial recreation uses up to 5,000 square feet of gross floor area, with the following exceptions, for which a conditional use permit is always required for:
(A) ground-floor medical office fronting on California Avenue and, in the Charleston Shopping Center, in the Midtown Shopping District, and Town and Country Shopping Center;
(B) commercial recreation uses fronting on California Avenue and in the Town and Country Village Shopping Center.
(6) A conditional use permit is required for the following uses when fronting on California Avenue:
(A) Fitness or exercise studios, and similar uses exceeding 1,800 square feet in gross floor area; and (B) Learning centers intended for individual or small group settings. A conditional use permit is required for fitness or exercise studios, and similar uses exceeding 1,800 square feet in gross floor Item 16
Attachment A - Ordinance
of the Council of the City of
Palo Alto Amending Various
Chapters of Title 18 (Zoning)
and Chapter 16.59
(Citywide Transportation
Impact Fee of the Palo Alto
Municipal Code, and the
Zoning Map, to Implement
Retail Vitality Measures

Item 16: Staff Report
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area in Town and Country Village Shopping Center.
(7) In the Midtown Shopping District and Charleston Shopping Center, only “neighborhood serving office” uses are permitted, and a CUP is required for office uses exceeding 2,500 sq. ft. (8) In the Midtown Shopping District and Charleston Shopping Center, a conditional use permit is required for eating and drinking services above 5,000 sq. ft and for other retail uses above 20,000 sq. ft.

[. . .]

(c) CN District: Special Use Requirements in the Charleston and Midtown Shopping Centers The following regulations shall apply to areas of Charleston Center and the Midtown Shopping Center as defined in Section 18.16.030.

Table 2 shows the uses permitted and conditionally permitted on the ground floor of the applicable areas of the Charleston Center and Midtown Shopping Center. Permitted and conditional uses specified in subsection (a) of this section shall only apply to the ground floor of the areas of the Charleston and Midtown Shopping Centers as listed in Table 2. Uses lawfully existing on January 16, 2001 may be continued as non-conforming uses but may only be replaced with uses permitted or conditionally permitted under this subsection.

TABLE 2

CHARLESTON AND MIDTOWN SHOPPING CENTERS GROUND FLOOR USES P = Permitted Use CUP = Conditional Use Permit Required X = Prohibited Use

LAND USES
Charleston Shopping Center
Midtown
Shopping Center
Subject to Regulations in:

ACCESSORY AND SUPPORT USES
Accessory facilities and uses customarily incidental to permitted uses. P P

EDUCATIONAL, RELIGIOUS, AND ASSEMBLY USES
Churches and Religious Institutions CUP CUP
Private Educational Facilities CUP CUP

MANUFACTURING AND PROCESSING USES
Recycling Centers CUP CUP

OFFICE USES
Neighborhood-serving offices that do not exceed 2,500 square feet in floor area. P 18.16.050 Neighborhood-serving offices exceeding 2,500 square feet in floor area. CUP 18.16.050 Administrative office uses and general business office uses (other than neighborhood-serving travel agencies and insurance agencies) other than those legally in existence on January 16,2001

18.16.050
Item 16
Attachment A - Ordinance
of the Council of the City of
Palo Alto Amending Various
Chapters of Title 18 (Zoning)
and Chapter 16.59
(Citywide Transportation
Impact Fee of the Palo Alto
Municipal Code, and the
Zoning Map, to Implement
Retail Vitality Measures

Item 16: Staff Report
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LAND USES
Charleston Shopping Center
Midtown
Shopping Center
Subject to Regulations in:

Medical offices not exceeding 2,500 square feet in area, professional offices, travel agencies, and insurance agencies CUP 18.16.050 PUBLIC/QUASI-PUBLIC USES Utility Facilities essential to provision of utility services but excluding construction or storage yards, maintenance facilities, or corporation yards. CUP CUP RECREATION USES Commercial Recreation CUP CUP 18.40.160 Outdoor Recreation Services CUP CUP Private Clubs, Lodges, or Fraternal Organizations CUP CUP RESIDENTIAL USES Residential uses of any nature X X RETAIL USES Eating and Drinking Services, excluding drive-in and take-out services P P 18.40.160 Retail Services, excluding liquor stores P P 18.40.160 Liquor stores CUP CUP 18.40.160 SERVICE USES Ambulance Services CUP CUP Animal Care, excluding boarding and kennels P P Automobile Service Stations CUP CUP 18.30(G) Convalescent Facilities CUP CUP Day Care Centers P P 18.40.160 Financial Services CUP CUP Mortuaries CUP CUP Neighborhood Business Services P P Personal Services P P 18.40.160 Reverse Vending Machines P P TEMPORARY USES Farmers’ Markets CUP CUP Temporary Parking Facilities, provided that such facilities shall remain no more than five years. CUP CUP P = Permitted Use CUP = Conditional Use Permit Required X = Prohibited Use (d) Charleston Shopping Center Additional Use Restrictions (1) Any office use first occupying space at the Center on or after January 16, 2001, shall obtain a written determination from the director of planning and development services that it qualifies as a neighborhood serving use, as defined in this chapter, before occupying its Item 16
Attachment A - Ordinance
of the Council of the City of
Palo Alto Amending Various
Chapters of Title 18 (Zoning)
and Chapter 16.59
(Citywide Transportation
Impact Fee of the Palo Alto
Municipal Code, and the
Zoning Map, to Implement
Retail Vitality Measures

Item 16: Staff Report
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12 Packet Pg. 298 of 412

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premises. The applicant shall submit such information as the director shall reasonably require in order to make the determination, and the director shall issue the determination within 30 days of receiving a complete application. Failure to submit the required information shall be grounds for determining that a business is not neighborhood-serving. (2) No more than 7,850 square feet of total floor area at the Center shall be occupied by office uses at any time.
(3) Prior to approving a conditional use permit for neighborhood-serving offices larger than 2,500 square feet in total floor area, the city shall find that the proposed use will be neighborhood-serving, that it will be conducted in a manner that will enhance and strengthen the Center as a neighborhood resource, and that it will not diminish the retail strength of the center.
(e) Midtown Shopping Center: Additional Use Restrictions (1) An existing ground floor office may be replaced with another office if (a) the new tenant or owner will continue the existing business or practice; or (b) a conditional use permit is issued for the new office use. (2) No conditional use permit shall be issued for any new office use on the ground floor unless, in addition to the findings required for a conditional use permit as specified in Section

18.76.010, the city finds that the proposed use will be neighborhood serving, that it will be conducted in a manner that will enhance and strengthen the Midtown Shopping District as a neighborhood resource, and that it will not diminish the retail strength of the District. (3) For properties at 711, 719, and 721 Colorado Avenue, and 689 Bryson Avenue , buildings not fronting on Middlefield Avenue, designed and used for office purposes, and not well suited to other uses are exempt from the provisions of this subsection (b).

18.16.050 Office Use Restrictions
The following restrictions shall apply to office uses:
(a) Conversion of Ground Floor Housing and Non-Office Commercial to Office Medical, Professional, and Business offices shall not be located on the ground floor, unless any of the following apply to such offices:
(1) Have been continuously in existence in that space since March 19, 2001, and as of such date, were neither non-conforming nor in the process of being amortized pursuant to Chapter

18.30(I);
(2) Occupy a space that was not occupied by housing, neighborhood business service, retail services, personal services, eating and drinking services, or automotive service on March 19, 2001 or thereafter;
(3) Occupy a space that was vacant on March 19, 2001; (4) Are located in new or remodeled ground floor area built on or after March 19, 2001 if the ground floor area devoted to housing, retail services, eating and drinking services, personal services, and automobile services does not decrease; (5) Are on a site located in an area subject to a specific plan or coordinated area plan, which specifically allows for such ground floor medical, professional, and general business offices; or
(6) Are located anywhere in Building E or in the rear 50% of Building C or D of the property Item 16
Attachment A - Ordinance
of the Council of the City of
Palo Alto Amending Various
Chapters of Title 18 (Zoning)
and Chapter 16.59
(Citywide Transportation
Impact Fee of the Palo Alto
Municipal Code, and the
Zoning Map, to Implement
Retail Vitality Measures

Item 16: Staff Report
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at the southeast corner of the intersection of Park Boulevard and California Avenue, as shown on sheet A2 of the plans titled “101 California Avenue Townhouse/Commercial/Office, Palo Alto, CA” by Crosby, Thornton, Marshall Associates, Architects, dated June 14, 1982, revised November 23, 1982, and on file with the Department of Planning and Development Services. (a) The following office use restrictions shall apply in the Midtown Shopping District and Charleston Shopping Center:
(1) The only office uses permitted are “neighborhood serving office” uses. (2) Prior to approving a conditional use permit for neighborhood-serving offices larger than 2,500 square feet in total floor area, the city shall find that the proposed use will be neighborhood-serving and consistent with the purposes of the zoning district (3) In the Midtown Shopping District, buildings at 711, 719, and 721 Colorado Avenue, and 689 Bryson Avenue, which do not front on Middlefield Avenue and are designed and used for office purposes, are exempt from the provisions of this subsection.

(b) Size Restrictions on Office Uses in the CN and CS Districts (other than Midtown Shopping District and Charleston Shopping Center):
(1) In the CN district, office uses shall be governed by the following regulations:
(A) Total floor area of permitted office uses on a lot shall not exceed 25% of the lot area, provided:
(i) A lot shall be permitted to have at least a total floor area of 2,500 square feet of office uses, provided the uses meet all other zoning regulations. (ii) No lot shall be permitted to have more than a total floor area of 5,000 square feet of office uses.
(B) Such uses may be allowed to exceed the maximum size, subject to issuance of a conditional use permit in accord with the provisions of Chapter 18.76. The maximum size for any conditional use shall be established by the director and specified in the conditional use permit for such use.
(2) In the CS district, office uses shall be governed by the following regulations:
(A) No lot shall be permitted to have more than a total floor area of 5,000 square feet of office uses.
(B) Such uses may be allowed to exceed the maximum size, subject to issuance of a conditional use permit in accord with the provisions of Chapter 18.76. The maximum size for any conditional use shall be established by the director and specified in the conditional use permit for such use.

18.16.060 Development Standards
[. . .]
(f) Size of Establishments in the CN District
In the CN district, permitted commercial uses shall not exceed the floor area per individual use or business establishment shown in Table 5. Such uses may be allowed to exceed the maximum establishment size, subject to issuance of a conditional use permit in accord with Section 18.76.010. The maximum establishment size for any conditional use shall be established by the director and specified in the conditional use permit for such use.

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TABLE 5

MAXIMUM SIZE OF ESTABLISHMENT
Type of Establishment Maximum Size (ft 2 )
Personal Services 3,000
Retail services, except grocery stores 15,000
Grocery stores 20,000
Eating and drinking services 5,000
Neighborhood business services 3,000
[. . .]

SECTION 6. Sections 18.18.050 (Land Uses) and 18.18.060 (Development Standards) of Chapter 18.18 (Downtown Commercial (CD) District) of Title 18 (Zoning) of the Palo Alto Municipal Code are hereby amended as follows (additions underlined; deletions struck-through; text omitted but unchanged noted by bracketed ellipses):

18.18.050 Land Uses
The uses of land allowed by this chapter in each commercial zoning district are identified in the following table. Land uses that are not listed on the tables are not allowed, except where otherwise noted. Where the last column on the following tables (“Subject to Regulations in”) includes a section number, specific regulations in the referenced section also apply to the use; however, provisions in other sections may apply as well. For parcels designed with the -GF combining district, refer to 18.30(C) for ground-floor use regulations.

Permitted and conditionally permitted land uses for the CD district are shown in Table 1:

Table 1
CD Permitted and Conditionally Permitted Uses
P Permitted Use • CUP Conditional Use Permit Required
CD-C CD-S CD-N Subject to regulations in:

ACCESSORY USES
Accessory facilities and activities associated with or essential to permitted uses, and operated incidental to the principal use

Drive-in or Take-out Services associated with permitted uses (2) CUP CUP CUP Tire, battery, and automotive service facilities, when operated incidental to a permitted retail service or shopping center having a gross floor area of more than 30,000 square feet

CUP

18.40.160
Safe Parking 18.42.160

EDUCATIONAL, RELIGIOUS, AND ASSEMBLY USES
Business and Trade Schools P P
Churches and Religious Institutions P P P
Private Educational Facilities P P CUP
Item 16
Attachment A - Ordinance
of the Council of the City of
Palo Alto Amending Various
Chapters of Title 18 (Zoning)
and Chapter 16.59
(Citywide Transportation
Impact Fee of the Palo Alto
Municipal Code, and the
Zoning Map, to Implement
Retail Vitality Measures

Item 16: Staff Report
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Table 1
CD Permitted and Conditionally Permitted Uses
P Permitted Use • CUP Conditional Use Permit Required
CD-C CD-S CD-N Subject to regulations in:

Private Clubs, Lodges, or Fraternal Organizations P P CUP

MANUFACTURING AND PROCESSING USES
Recycling Centers CUP CUP CUP
Warehousing and Distribution CUP

OFFICE USES
Administrative Office Services P 18.18.060(f)
Medical, Professional, and General Business Offices P P P 18.18.060(f)

PUBLIC/QUASI-PUBLIC FACILITY USES
Utility Facilities essential to provision of utility services but excluding construction or storage yards, maintenance facilities, or corporation yards

CUP

RECREATION USES
Commercial Recreation CUP(3) CUP(3) CUP(3)
Outdoor Recreation Services CUP CUP CUP

RESIDENTIAL USES
Multiple-Family P (1) P (1) P (1) 18.18.060(b)
Home Occupations P P P
Residential Care Homes P P P

RETAIL USES
Automobile Showrooms P P P
Bars CUP 18.42.090
Eating and Drinking Services, except drive-through drive-in or take-out services P P P 18.18.060(g) ,

18.40.160

18.42.090
Retail Services, excluding liquor stores P P P 18.18.060(g) ,

18.40.160
Shopping Centers P 18.18.060(g) ,

18.40.160
Liquor Stores P P CUP 18.40.160

SERVICE USES
Animal Care, excluding boarding and kennels daytime P P P 18.42.130 Ambulance Services CUP CUP CUP 18.30(G)
Automobile Service Stations CUP CUP CUP
Automobile Services CUP
Convalescent Facilities P P CUP
Item 16
Attachment A - Ordinance
of the Council of the City of
Palo Alto Amending Various
Chapters of Title 18 (Zoning)
and Chapter 16.59
(Citywide Transportation
Impact Fee of the Palo Alto
Municipal Code, and the
Zoning Map, to Implement
Retail Vitality Measures

Item 16: Staff Report
Pg.
16 Packet Pg. 302 of 412

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Table 1
CD Permitted and Conditionally Permitted Uses
P Permitted Use • CUP Conditional Use Permit Required
CD-C CD-S CD-N Subject to regulations in:

Day Care Centers P P P 18.40.160
Small Family Day Care Homes P P P
Large Family Day Care Homes P P P
Small Adult Day Care Homes P P P
Large Adult Day Care Homes
Financial Services, except drive-up services P P CUP
General Business Services CUP P P
Hotels P P P 18.18.060(d) ,

18.40.160
Mortuaries P P CUP
Personal Services P(4) P(4) P(3)(4) 18.18.060(g) ,

18.40.160
Reverse Vending Machines P P P

TRANSPORTATION USES
Parking as a principal use CUP CUP
Passenger Transportation Terminals CUP

TEMPORARY USES
Indoor Farmers’ Markets CUP CUP CUP
Temporary Parking Facilities, provided that such facilities shall remain no more than five years CUP CUP CUP P Permitted Use CUP Conditional Use Permit Required
(1) Residential is only permitted as part of a mixed use development, pursuant to the provisions of Section 18.18.060(b), or on sites designated as Housing Opportunity Sites in the Housing Element of the Comprehensive Plan, pursuant to the provisions of Section 18.18.060(c). (2) Drive-up facilities, excluding car washes, provide full access to pedestrians and bicyclists. A maximum of two such services shall be permitted within 1,000 feet and each use shall not be less than 150 ft from one another. (3) A conditional use permit is required for personal services over 5,000 sq. ft. (3) A conditional use permit is not required for commercial recreation uses up to 5,000 square feet of gross floor area, with the following exceptions, for which a conditional use permit is always required: (A) medical office fronting on University Avenue; (B) commercial recreation uses fronting on University Avenue. (4) A conditional use permit is required for the following uses when fronting on University Avenue: (A) Fitness or exercise studios, and similar uses; and (B) Learning centers intended for individual or small group settings.

18.18.060 Development Standards

[. . .]

Item 16: Staff Report
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(g) Restrictions on Size of Commercial Establishments in CD-N Subdistrict In the CD-N subdistrict, permitted commercial uses shall not exceed the floor area per individual use or business establishment shown in Table 4. Such uses may be allowed to exceed the maximum establishment size, subject to the issuance of a conditional use permit in accordance with Chapter 18.76. The maximum establishment size for any conditional use shall be established by the director and specified in the conditional use permit for such use.

TABLE 4

MAXIMUM SIZE OF ESTABLISHMENT
Type of Establishment Maximum Size (ft 2 )
Personal Services 3,000
Retail services, except grocery stores 15,000
Grocery stores 20,000
Eating and drinking services 5,000

[. . .]

SECTION 7. Section 18.29.050 (Permitted Uses) of Chapter 18.29 (North Ventura (NV) District Regulations) of Title 18 (Zoning) of the Palo Alto Municipal Code is hereby amended as follows (additions underlined; deletions struck-through; text omitted but unchanged noted by bracketed ellipses):

18.29.050 Permitted Uses
The uses of land allowed by this chapter in each zoning district are identified in the following tables. Land uses that are not listed in the tables are not allowed, except where otherwise noted.

Where the last column on the following tables ("Subject to Regulations in") includes a section number, specific regulations in the referenced section also apply to the use; however, provisions in other sections not specifically referenced may apply as well.

TABLE 1: PERMITTED AND CONDITIONALLY PERMITTED USES
P = Permitted Use
CUP = Conditional Use Permit Required TUP = Temporary Use Permit Required — = Not Permitted
LAND USE NV-R1 NV-R2 NV-R3 NV-R4 NV-MXL
(1)(5)
NV-MXM
(5)
NV-MXH NV-PF Subject to
Regulations In:

ACCESSORY AND SUPPORT USES

18.40 Accessory facilities and activities
customarily incidental to the

18.10.080
permitted use 18.12.080
Accessory Dwelling Unit & Junior
Accessory Dwelling Unit when
accessory to primary and permitted
residential use

18.09 Item 16
Attachment A - Ordinance
of the Council of the City of
Palo Alto Amending Various
Chapters of Title 18 (Zoning)
and Chapter 16.59
(Citywide Transportation
Impact Fee of the Palo Alto
Municipal Code, and the
Zoning Map, to Implement
Retail Vitality Measures

Item 16: Staff Report
Pg.
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TABLE 1: PERMITTED AND CONDITIONALLY PERMITTED USES
P = Permitted Use
CUP = Conditional Use Permit Required TUP = Temporary Use Permit Required — = Not Permitted
LAND USE NV-R1 NV-R2 NV-R3 NV-R4 NV-MXL
(1)(5)
NV-MXM
(5)
NV-MXH NV-PF Subject to
Regulations In:

Home Occupations, when accessory
to permitted residential use
P P P P P P P P 18.42
Horticulture, Gardening, and Growing
of food products for consumption by
occupants of a site

EDUCATIONAL, RELIGIOUS, AND ASSEMBLY USES
Private Clubs, Lodges, or Fraternal
Organizations, excluding any such
facility operated as a business for
profit

CUP

Private Educational Facilities CUP CUP CUP CUP CUP P P - Religious Institutions CUP CUP CUP CUP P P P -
OFFICE USES(2)
Administrative Office Services - - - - P P P - 18.29.050(a) Medical Offices - - - - P P P - 18.29.050(a)
Professional and General Business
Offices
- - - - P P P - 18.29.050(a)

PUBLIC/QUASI-PUBLIC USES
Community Centers CUP CUP CUP CUP - - - CUP (3)
Utility Facilities essential to provision
of utility services but excluding
construction or storage yards,
maintenance facilities, or corporation
yards.

CUP

RECREATION USES
Neighborhood Recreational Centers - - CUP CUP - - - CUP(3) Commercial Recreation - - - - CUP CUP CUP CUP(3)
Outdoor Recreation Services CUP CUP CUP CUP - CUP CUP CUP(3) Youth Clubs - - - - - - - CUP(3)

RESIDENTIAL USES
Single-Family P P - - - - - -
Two-Family P P - - - - - - 18.42.180
Multiple-Family - - P P P P P P (4)
Residential Care Homes P P P P P P P -
Item 16
Attachment A - Ordinance
of the Council of the City of
Palo Alto Amending Various
Chapters of Title 18 (Zoning)
and Chapter 16.59
(Citywide Transportation
Impact Fee of the Palo Alto
Municipal Code, and the
Zoning Map, to Implement
Retail Vitality Measures

Item 16: Staff Report
Pg.
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TABLE 1: PERMITTED AND CONDITIONALLY PERMITTED USES
P = Permitted Use
CUP = Conditional Use Permit Required TUP = Temporary Use Permit Required — = Not Permitted
LAND USE NV-R1 NV-R2 NV-R3 NV-R4 NV-MXL
(1)(5)
NV-MXM
(5)
NV-MXH NV-PF Subject to
Regulations In:

RETAIL USES
Automobile Showroom P
Bars CUP 18.42.090
Eating and Drinking Services, except
drive-through drive-in and takeout
services
- - P P P P P CUP (3) 18.40.160,

18.29.050(c)
Personal Services and Retail Services
of a neighborhood- serving nature

CUP (3)

18.40.160,

18.29.050(c)
Liquor stores - - - - - P P - 18.40.160,

18.29.050(c)

SERVICE USES
Animal Care, daytime excluding
boarding and kennels
- - - - P P P - 18.29.050(c)

18.42.130
Animal Care, overnight CUP CUP CUP 18.42.130
Convalescent Facilities - - - CUP P P P -
Day Care Centers CUP CUP CUP P P P P - 18.40.160
Large Family Day Care Homes P P P P P P P P(3)
Small Family Day Care Homes P P P P P P P P(3)
Large Adult Day Care Homes CUP CUP P P P P P P(3)
Small Adult Day Care Homes P P P P P P P P(3)
Financial Services - - - - P P P - 18.29.050(a),

18.29.060(b)
General Business Services - - - - P P P - 18.29.050(a),

18.29.060(b)
Hotels - - - - - P P - 18.40.160,

18.16.060(d)
Personal Services and Retail Services
defined as a neighborhood- serving
use

CUP (3)

18.40.160,

18.29.050(c)
Other Personal Services - - - - P P P - 18.40.160,

18.29.050(c),

18.29.060(b)

AGRICULTURAL AND OPEN SPACE USES
Park uses and uses incidental to park
operation
- - - - - - - P
Item 16
Attachment A - Ordinance
of the Council of the City of
Palo Alto Amending Various
Chapters of Title 18 (Zoning)
and Chapter 16.59
(Citywide Transportation
Impact Fee of the Palo Alto
Municipal Code, and the
Zoning Map, to Implement
Retail Vitality Measures

Item 16: Staff Report
Pg.
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TABLE 1: PERMITTED AND CONDITIONALLY PERMITTED USES
P = Permitted Use
CUP = Conditional Use Permit Required TUP = Temporary Use Permit Required — = Not Permitted
LAND USE NV-R1 NV-R2 NV-R3 NV-R4 NV-MXL
(1)(5)
NV-MXM
(5)
NV-MXH NV-PF Subject to
Regulations In:

All facilities owned or leased, and
operated or used, by the City of Palo
Alto, the County of Santa Clara, the
State of California, the government of
the United States, the Palo Alto
Unified School District, or any other
governmental agency, or leased by
any such agency to another party

Utility Facilities - - - - - - - CUP

TEMPORARY USES
Temporary Uses - - TUP TUP - - - - 18.42.050
Farmer’s Markets - - - - - CUP CUP -
Temporary Parking Facilities,
provided that such facilities shall
remain no more than five years

CUP

CUP (3)

Notes:

For NV-MXL zoning district, the total floor area of non-residential uses permitted and conditionally permitted on a lot shall not exceed 5,000 square feet.

For office uses, total floor area of permitted office uses on a lot shall not exceed 5,000 square feet.

Provided such use is conducted on property owned by the City of Palo Alto, the County of Santa Clara, the State of California, the government of the United States, the Palo Alto Unified School District, or any other governmental agency, and leased for said uses.

Only a 100% Affordable Housing Project is permitted. Development shall follow NV-R4 standards.

Ground floor uses shall comply with the ground floor edge framework set forth in NVCAP section 2.3. …

SECTION 8. Chapter 18.30(A) (Retail Shopping (R) Combining District Regulations) of Title 18 (Zoning) of the Palo Alto Municipal Code is hereby amended as follows (additions underlined; deletions struck-through; text omitted but unchanged noted by bracketed ellipses):

18.30(A).010 Specific Purposes
The retail shopping combining district is intended to modify the uses allowed in a commercial district, where applied in combination with such district, to allow only retail, eating, and service- oriented, and neighborhood-serving office commercial development on the ground floors

[. . .]

18.30(A).040 Permitted Uses Land Uses
Except to the extent a conditional use permit is required pursuant to Section 18.30(A).050, the Item 16
Attachment A - Ordinance
of the Council of the City of
Palo Alto Amending Various
Chapters of Title 18 (Zoning)
and Chapter 16.59
(Citywide Transportation
Impact Fee of the Palo Alto
Municipal Code, and the
Zoning Map, to Implement
Retail Vitality Measures

Item 16: Staff Report
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following uses shall be permitted in an R district:
(a) Eating and drinking services, except drive-in and take-out services. (b) Personal services, except the following on California Avenue: fitness or exercise studios exceeding 1,800 square feet in gross floor area
(c) Retail services.
(d) Financial services, except drive-in services.
(e) Pet grooming services.
(f) Automobile showroom.
(g) All other uses permitted in the underlying commercial district, provided they are not located on a ground floor.

Permitted and conditionally permitted land uses in the combining district are identified in Table 1. Where the last column on the following tables ("Subject to Regulations in") includes a section number, specific regulations in the referenced section also apply to the use.

Conditional use permits shall be issued in accordance with Chapter 18.76 (Permits and Approvals), subject to restrictions in Section 18.40.160.

Table 1
P Permitted Use • CUP Conditional Use Permit Required (R) Subject to regulations in:

OFFICE USES
Medical offices, that include retail services, fronting California Avenue CUP 18.30(A).050(b) Neighborhood-serving offices, except fronting California Avenue. P 18.30(A).050(c)

RECREATION USES
Commercial recreation, fronting California Avenue CUP
Commercial recreation, other locations P

RETAIL USES
Automobile showrooms P
Bars CUP 18.42.090
Eating and drinking services, except drive-through services P 18.42.090 Formula retail businesses on California Avenue CUP
Retail financial services, except drive-through services. P Retail services P

SERVICE USES
Animal care, daytime P 18.42.130
Personal services P
OTHER
All other uses permitted in the underlying commercial district, provided they are not located on a ground floor. CUP See underlying district regulations

18.30(A).050 Conditional Uses
Item 16
Attachment A - Ordinance
of the Council of the City of
Palo Alto Amending Various
Chapters of Title 18 (Zoning)
and Chapter 16.59
(Citywide Transportation
Impact Fee of the Palo Alto
Municipal Code, and the
Zoning Map, to Implement
Retail Vitality Measures

Item 16: Staff Report
Pg.
22 Packet Pg. 308 of 412

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The following uses may be conditionally permitted in an R district, subject to the issuance of a conditional use permit in accord with Chapter 18.76 (Permits and Approval):
(a) All other conditional uses allowed in the underlying commercial district provided they are not located on a ground floor.
(b) Formula retail businesses on California Avenue.
(c)Fitness or exercise studios exceeding 1,800 square feet in gross floor area on California Avenue.

18.30(A).055050 Design Standards
(a) The following design standards shall apply in the R combining district:
(a) (1) Window Transparency. Exterior windows on the ground floor shall use transparent glazing to the extent feasible. Low-e glass or minimal tinting to achieve sun control is permitted, so long as the glazing appears transparent when viewed from the ground level.
(b) (2) Visual Access. Window coverings are not permitted on the ground floor during typical business hours. Where operations preclude transparency (e.g., theaters) or where privacy requires window coverings, sidewalk-facing frontage shall include items of visual interest including displays of merchandise or artwork; visual access shall be provided to a minimum depth of 3 feet.
(b) Medical Office Uses. For ground-floor medical office uses located within 40 feet of the back of sidewalk on California Avenue, such uses shall include a retail services component that occupies a minimum 15-foot depth, as measured from the California Avenue ground floor building frontage.
(c) Neighborhood-Serving Office Uses. Ground-floor neighborhood-serving office uses may be located in the rear of lots with frontage on California Avenue or fronting on side streets, if retail or retail-like uses occupy a minimum 40-foot depth of the ground floor, as measured from the back of sidewalk on California Avenue, and occupy the full extent of the California Avenue building frontage, excluding required utilities, driveways, pedestrian access and residential lobby.

[. . .]

18.30(A).070 Waivers and adjustments.
(a) The following shall be grounds for a request for waiver or adjustment of this Chapter:
(1) Economic Hardship. An applicant may request that the requirements of this Chapter be adjusted or waived upon a showing that strict application would result in an unreasonable financial burden on the property.
(2) Alternative Viable Use. An applicant may request that the requirements of this Chapter

18.30(A) be adjusted or waived based on a showing that: the permitted retail or retail-like use is not viable; the proposed alternative use will support the purposes of the combining district and Comprehensive Plan land use designation; and the proposed use will encourage active pedestrian-oriented activity and connections.
(b) Documentation.

The applicant shall bear the burden of presenting substantial evidence to support a waiver Item 16
Attachment A - Ordinance
of the Council of the City of
Palo Alto Amending Various
Chapters of Title 18 (Zoning)
and Chapter 16.59
(Citywide Transportation
Impact Fee of the Palo Alto
Municipal Code, and the
Zoning Map, to Implement
Retail Vitality Measures

Item 16: Staff Report
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or modification request under this section and shall set forth in detail the factual and/or legal basis for the claim, including all supporting technical documentation. Any request under this section shall be submitted to the Planning and Development Services Director together with the fee specified in the municipal fee schedule and an economic analysis or other supporting documentation. A request under this section shall be acted upon by the City Council.

SECTION 9. Chapter 18.30(C) (Ground Floor (GF) Combining District Regulations) of Title 18 (Zoning) of the Palo Alto Municipal Code is hereby amended as follows (additions underlined; deletions struck-through; text omitted but unchanged noted by bracketed ellipses):

[. . .]

18.30(C).020 Permitted Uses Land Uses
(a) The following uses shall be permitted in the GF combining district, subject to restrictions in Section 18.40.180:
(1) Eating and drinking;
(2) Hotels;
(3) Personal services, except for the following on parcels with frontage on University Avenue: fitness and exercise studios exceeding 3,000 square feet in gross floor area; (4) Retail services;
(5) Theaters;
(6) Travel agencies;
(7) Commercial recreation up to 5,000 square feet in gross floor area, except for parcels with frontage on University Avenue;
(8) Financial services, except drive-in services.
(9) Pet grooming services.
(10) Automobile showroom;
(11) All other uses permitted in the underlying district, provided such uses are not on the ground floor.
(a) Permitted and conditionally permitted land uses in the combining district are identified in Table 1 and, subject to restrictions in Section 18.40.180. Where the last column on the following tables ("Subject to Regulations in") includes a section number, specific regulations in the referenced section also apply to the use. (b) Elimination or conversion of basement space currently in retail or retail-like use or related support purposes is prohibited.
(c) Entrance, lobby, or reception areas serving non-ground floor uses may be located on the ground floor to the extent reasonably necessary, provided they do not interfere with the ground floor use(s), and subject to the approval of the Director.

18.30(C).030 Conditional Uses
(a) The following uses may be conditionally allowed on the ground floor in the GF ground floor combining district, subject to issuance of a conditional use permit in accord with Chapter 18.76 (Permits and Approvals) and with the additional finding required by subsection (b), subject to restrictions in Section 18.40.160:

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(1) Business or trade school;
(2) Commercial recreation over 5,000 square feet in gross floor area or with frontage on University Avenue;
(3) Day care;
(4) General business service;
(5) All other uses conditionally permitted in the applicable underlying district, provided such uses are not on the ground floor.
(b a) The director may grant a conditional use permit under this section only if he or she makes the following findings in addition to the subject to the findings required by Chapter

18.76 (Permits and Approvals) and a finding that:
(1) The location, access or design of the ground floor space of the existing building housing the proposed use, creates exceptional or extraordinary circumstances or conditions applicable to the property involved that do not apply generally to property in the same district.
(2) Tthe proposed use will not be determined to the retail environment or the pedestrian-oriented design support the objectives of the GF combining district. (c b) Any use conditionally permitted pursuant to this section shall be effective only during the existence of the building that created the exceptional circumstance upon which present when the finding set forth in subsection (b) was made.

Table 1
P Permitted Use • CUP Conditional Use Permit Required (GF) Subject to regulations in:

EDUCATIONAL, RELIGIOUS, AND ASSEMBLY USES
Business or trade school CUP

OFFICE USES
Neighborhood-serving offices, except fronting University Avenue. P 18.30(C).030(b)

RECREATION USES
Commercial recreation, up to 5,000 sq. ft. P
Commercial recreation, more than 5,000 sq. ft. CUP
Commercial recreation, fronting University Avenue CUP

RETAIL USES
Automobile showrooms P
Bars CUP 18.42.090
Eating and drinking services, except drive-through services P 18.42.090 Retail financial services, except drive-through services. P Retail services P

SERVICE USES
Animal care, daytime P
Day care centers CUP
Item 16
Attachment A - Ordinance
of the Council of the City of
Palo Alto Amending Various
Chapters of Title 18 (Zoning)
and Chapter 16.59
(Citywide Transportation
Impact Fee of the Palo Alto
Municipal Code, and the
Zoning Map, to Implement
Retail Vitality Measures

Item 16: Staff Report
Pg.
25 Packet Pg. 311 of 412

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General business service CUP
Personal services P
Theaters P
Travel Agencies P
OTHER
All other uses permitted in the underlying commercial district, provided they are not located on a ground floor. CUP See underlying district regulations

18.30(C).035030 Design Standards
(a) Where the GF combining district is combined with the CD-C subdistrict, the following design standards shall apply:
(a) (1) Window Transparency. Exterior windows on the ground floor shall use transparent glazing to the extent feasible. Low-e glass or minimal tinting to achieve sun control is permitted, so long as the glazing appears transparent when viewed from the ground level.
(b) (2) Visual Access. Window coverings are not permitted on the ground floor during typical business hours. Where operations preclude transparency (e.g., theaters) or where privacy requires window coverings, sidewalk-facing frontage shall include items of visual interest including displays of merchandise or artwork; visual access shall be provided to a minimum depth of 3 feet.

(b) Neighborhood-Serving Office Uses on University Avenue. Ground-floor neighborhood- serving office uses may be located in the rear of lots with frontage on University Avenue or fronting on side streets, if one of the following conditions are met:
(1) Retail or retail-like uses occupy a minimum 50-foot depth of the ground floor, as measured from the back of sidewalk on University Avenue, and occupy the full extent of the University Avenue building frontage, excluding required utilities, driveways, pedestrian access and residential lobby; or

(2) For buildings that do not have tenant spaces within 50 feet of University Avenue (e.g., flag lots, deep setbacks), neighborhood-serving offices are located a minimum of 50 feet from University Avenue, as measured from the back of sidewalk.

[. . .]

18.30(C).050 Waivers and adjustments.
(a) The following shall be grounds for a request for waiver or adjustment of this Chapter:
(1) Economic Hardship. An applicant may request that the requirements of this Chapter be adjusted or waived upon a showing that strict application would result in an unreasonable financial impact on the property.
(2) Alternative Viable Use. An applicant may request that the requirements of this Chapter

18.30(A) be adjusted or waived based on a showing that: the permitted retail or retail-like use is not viable; the proposed alternative use will support the purposes of the combining Item 16
Attachment A - Ordinance
of the Council of the City of
Palo Alto Amending Various
Chapters of Title 18 (Zoning)
and Chapter 16.59
(Citywide Transportation
Impact Fee of the Palo Alto
Municipal Code, and the
Zoning Map, to Implement
Retail Vitality Measures

Item 16: Staff Report
Pg.
26 Packet Pg. 312 of 412

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26 0160198_20260604_ay16
district and Comprehensive Plan land use designation; and the proposed use will encourage active pedestrian-oriented activity and connections. (b) Documentation. The applicant shall bear the burden of presenting substantial evidence to support a waiver or modification request under this section and shall set forth in detail the factual and/or legal basis for the claim, including all supporting technical documentation. Any request under this section shall be submitted to the Planning and Development Services Director together with the fee specified in the municipal fee schedule and an economic analysis or other supporting documentation. A request under this section shall be acted upon by the City Council.

SECTION 10. Section 18.38.030 (Permitted Uses) of Chapter 18.38 (PC Planned Community District Regulations) of Title 18 (Zoning) of the Palo Alto Municipal Code is hereby amended as follows (additions underlined; deletions struck-through):

18.38.030 Permitted uses.

Any use may be permitted in any specific PC district; provided:
(a) Such such use is shall be specifically listed as a permitted use and shall be located and conducted in accord with the approved development plan and other applicable regulations adopted pursuant to this chapter to govern each specific PC district; or (b) Except for uses identified as being part of a PC community benefit, the Director may determine that an unlisted use is materially similar to a listed use in the specific PC district and may be allowed in the same extent and subject to the same standards as a listed permitted use, if it has:
(1) Similar impacts on the neighborhood such as traffic generation, deliveries, noise and lighting as listed uses; and
(2) Similar characteristics such as building type, site arrangement, floor area, number of employees, indoor and/or outdoor uses, customer traffic, equipment use, hours of operation, parking, vehicle trips and signage as listed uses.

SECTION 11. Section 18.40.180 (Retail Preservation) of Chapter 18.40 (General Standards and Exceptions) of Title 18 (Zoning) of the Palo Alto Municipal Code is hereby amended as follows (additions underlined; text omitted but unchanged noted by bracketed ellipses):

18.40.180 Retail Preservation
(a) Conversion of Retail and Retail-Like Uses Prohibited. (1) Any ground floor Retail or Retail-Like use permitted or operating as of March 2, 2015 may be replaced only by another Retail or Retail-Like use, as permitted in the applicable district.
(A) A ground floor Retail or Retail-Like use in the RT-35 district on properties with frontage on Alma Street between Channing Avenue and Lincoln Avenue may additionally be replaced by a Private Educational Facility use, provided that such use shall not be thereafter replaced by an Office use.

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(B) This subsection shall not apply to the following zoning districts:
(I) Residential zones: RM-30, RM-40, NV-R3, NV-R4
(II) Office/manufacturing zones, except within the San Antonio Road Area Plan area: ROLM, ROLM(E), RP, RP(5), GM
[. . .]

SECTION 12. Section 18.42.090 (Alcoholic Beverages) of Chapter 18.42 (Standards for Special Uses) of Title 18 (Zoning) of the Palo Alto Municipal Code are hereby amended and Section 18.42.130 (Animal Care) is hereby added as follows (additions underlined; deletions struck-through; text omitted but unchanged noted by bracketed ellipses):

18.42.090 Alcoholic Beverages
(a) Purpose
This subsection establishes permit requirements and standards for establishments with alcoholic beverage sales or service.
(b) Licensing
Establishments with alcoholic beverage sales or service shall comply with all applicable regulations of the California Department of Alcoholic Beverage Control. (c) Permits Required
Table 1 shows permits required for alcoholic beverage service depending on the use classification and type of alcohol service.

Table 1 Permits Required for Alcoholic Beverage Services Use Classification Beer and Wine Distilled Spirits
Eating and Drinking Service P P
Bar CUP CUP

(a) Conditional Use Permit Required in Tandem with On-Sale License In any district where otherwise permitted by this title, any eating and drinking establishment or other use having any part of its operation subject to an on-sale license required by the State of California shall be subject to securing a conditional use permit. (b) Conditional Use Permit Required with New On-Sale License A conditional use permit shall be obtained in the case of premises for which no conditional use permit is in force, whenever a new on-sale license is required by the State of California. (c)(d) Amendment to Conditional Use Permit Required with Expansion In the case of premises for which a conditional use permit is in force, which permits the sale of alcohol, but Table 1 permits less restrictive requirements, an administrative amendment to such permit shall be required whenever such use is intensified or is expanded in square footage.
(d)(e) Amendment to Conditional Use Permit Required with New On-Sale License In the case of premises for which a conditional use permit is in force, but such use permit does not permit sales of alcohol, compliance with the permit level identified in Table 1 an amendment to such permit shall be required whenever a new on-sale license is required by the State of California.

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(e)(f) Alcohol Service in Parklets on Rights-of-Way
Establishments that are allowed by the city to serve alcohol for onsite consumption by issuance of a conditional use permit (“CUP”) as required in pursuant to this section or as a legal nonconforming use, and that have both an on-sale license from the California Department of Alcoholic Beverage Control (“ABC”) and are duly authorized by ABC to serve alcohol in outdoor areas, shall be allowed to serve alcohol for onsite consumption without an amendment of the CUP in parklets on public property approved via permit per PAMC Chapter 12.11 or other outdoor uses approved via permit per any other relevant section of the PAMC. Outdoor alcohol service shall be in full compliance with all applicable regulations, including ABC regulations, as may be amended. (g) Findings. To approve a CUP for alcoholic beverage sales or service, the decision-making body must make the following findings:
(1) The applicant has not operated a licensed establishment that has been the subject of violations regarding alcohol, or violations of public safety or nuisance statutes or regulations in Palo Alto. In making this finding, the decision-making body may consider the number, frequency, and severity of prior violations, the time elapsed since the last violation, and other relevant factors; and (2) At least one of the following:
(A) The proposed establishment will promote the City’s economic health, contribute to Comprehensive Plan or area plan policies, or further the zoning district purpose; or
(B) The economic benefits associated with the establishment could not reasonably be achieved without the proposed alcohol sales or service. (h) Operational Conditions. Owners and operators of Bars or Eating and Drinking Services with alcohol beverage service must meet the following performance standards:
(1) Hours. Hours of operation are subject to review and amendment by the review authority as necessary to avoid detriment to the neighborhood or to achieve conformance with revised City of Palo Alto standards or policies. (2) Preventing Disturbances. The owner or operator of the establishment shall take reasonable measures to prevent disturbances by patrons in the immediate vicinity.

Such measures shall include:
(A) Signs reminding patrons of nearby sensitive receptors, such as residences, and requests not to congregate or loiter near such residences nor operate vehicles in a noisy manner on public streets; and
(B) Sightlines to public areas near the establishment, keeping public areas free of trash and litter, providing lighting, and otherwise preventing conduct that might disturb the peace and quiet of residences in the vicinity. (C) The operator shall assume reasonable responsibility for ensuring that patrons do not block the entrance or interfere with pedestrian activity on the adjacent public sidewalk.

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(3) Training. All employees selling and/or serving alcoholic beverages, or directly supervising such sales and/or service, shall finish the Licensee Education on Alcohol and Drugs program, or another equivalent program offered or certified by the California Department of Alcoholic Beverage Control within 90 days of employment at the establishment. Employees who have finished the course within the last 12 months are exempt from this requirement.
[. . .]

18.42.130 Animal Care
(a) Purpose
Conform with State licensing requirements and City regulations, regulate operations, and ensure compatibility with other allowed uses in the applicable zoning district. (b) Performance Standards
Animal Care uses shall be subject to the following standards. Animal care uses subject to a conditional use permit may be required to meet additional standards such as hours of operation, drop-off and pick-up regulations, fencing and privacy standards, in particular for businesses with outdoor uses when adjacent to residential or other sensitive uses. (1) Animal Control Permit. The facility shall maintain a valid permit with Animal Control at all times, if required, and follow the guidelines of said permit all times. (2) Nuisances and noise. The business shall be operated in a manner to protect any nearby properties from excessive noise, odors, lighting or other nuisances from any sources during the business hours. Noise levels emanating from the use shall not exceed the maximum level established in Chapter 9.10.
(3) Interior materials. The interior building surfaces of indoor housing facilities shall be constructed and maintained so that they are substantially impervious to moisture and may be readily sanitized.
(4) Drainage. Adequate drainage facilities shall be installed and maintained to facilitate proper sanitation and disposal of natural precipitation and water used to clean the facility.
(5) Ventilation. Indoor housing facilities shall be adequately ventilated to provide for the health and comfort of the animals at all times. Such facilities shall be provided with fresh air either by means of windows, doors, vents, or air conditioning and shall be ventilated so as to minimize drafts, odors, and moisture condensation. (6) Waste. Provision shall be made for the removal and disposal of animal and food wastes, bedding, dead animals, and debris, in accordance with applicable laws.

Disposal facilities shall be covered and operated as to minimize odors and disease hazards.

SECTION 13. Sections 18.52.030 (Basic Parking Requirements), 18.52.040 (Off-Street Item 16
Attachment A - Ordinance
of the Council of the City of
Palo Alto Amending Various
Chapters of Title 18 (Zoning)
and Chapter 16.59
(Citywide Transportation
Impact Fee of the Palo Alto
Municipal Code, and the
Zoning Map, to Implement
Retail Vitality Measures

Item 16: Staff Report
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Parking, Loading and Bicycle Facility Requirements), and 18.52.050 (Adjustments by the Director) of Chapter 18.52 (Parking and Loading Requirements) of Title 18 (Zoning) of the Palo Alto Municipal Code are hereby amended as follows (additions underlined; deletions struck-through; text omitted but unchanged noted by bracketed ellipses):

18.52.030 Basic Parking Regulations

[. . .]

(i) Transportation Demand Management Plan
(1) Requirement for TDM Plan: A Transportation Demand Management (TDM) Plan to reduce and manage the number of single-occupant motor vehicle trips generated by the project shall be prepared and submitted by the applicant in the following circumstances:

A. For all projects that generate 50 or more net new weekday (AM or PM peak hour) or weekend peak hour trips; or
B. For all projects claiming a reduction in net new trips due to proximity to public transit, exclusive of subsection (D); or the implementation of a TDM plan; and C. For all projects requesting a parking reduction, except a retail or retail-like use proposing an addition of less than 1,500 sq. ft. or change of use to other retail or retail-like; or
D. For all projects with reduced parking pursuant to California Government Code Section 65863.2 (AB 2097, 2022), except a retail or retail-like use proposing an addition of less than 1,500 sq. ft. or change of use to other retail or retail-like. (2) The Director shall have the authority to adopt guidelines for preparing TDM plans and when applicable shall coordinate such guidelines with the Transportation Management Association.

[. . .]

18.52.040 Off-Street Parking, Loading and Bicycle Facility Requirements

[. . .]

(c) Tables 1, 2, 3 and 34: Parking, Bicycle, and Loading Requirements Tables 1, 2 and 23 below outline vehicle and bicycle parking requirements in general and for Parking Assessment Districts, respectively. Where bicycle parking standards differ from California Green Building Standards for bicycle parking, the more stringent standards shall apply. Table 34 outlines loading requirements for each land use.

For mixed-use projects, the requirements for each land use shall be applied and required for the overall project.

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Table 1
Minimum Off-Street Parking Requirements

Use
Vehicle Parking Requirement (# of spaces)
Bicycle Parking Requirement

Spaces
Class 1 Long Term (LT) and Short Term (ST)
…
Eating and Drinking Services:
(a) With drive-through drive-in or take-out facilities
1 per 200 sq. ft. of gross floor area, plus minimum queue line for 10 cars, subject to further evaluation for higher demand drive-through uses. 3 per 100 sq. ft. of gross floor area 3 per 400 sf 40% - LT 60% - ST
(b) All othersFull Service 1 space for each 15060 sq. ft. gross floor area sq. ft. of public service area, plus 1 space for each 200 gross sq. ft. for all other areas. 1 per 600 sf of public service area, plus 1 per 2,000 sf for other areas 40% - LT 60% - ST (c) Limited Service 1 space for each 250 sq. ft. gross floor area 1 per 2,000 sf 40% - LT 60% - ST (d) Bars 1 space for each 150 sq. ft. gross floor area 1 per 1,000 sf 40% - LT 60% - ST [. . .]

4. For residential mixed-use developments in the CD-C zone, CC(2) zone, on CN and CS zoned sites abutting El Camino Real, and on CS zoned sites abutting San Antonio Antonia Road between Middlefield Road and East Charleston Road, the first 1,500 square feet of ground-floor retail uses shall not be counted toward the vehicle parking requirement.
[. . .]

Table 2
Minimum Off-Street Parking Requirements for Parking Assessment Districts Use Vehicle Parking Requirement (# of spaces) 1

For Downtown University Avenue Parking Assessment District:

Residential Uses See Table 1 All Other Uses 1 per 250 square feet For California Avenue Parking Assessment District:

Residential Uses See Table 1 Hotel/Motel/Inn See Table 1 All Other Uses 1 per 250 square feet

1. For residential mixed-use developments in the CD-C zone, CC(2) zone, and on CN and CS zoned sites abutting El Camino Real, the first 1,500 square feet of ground-floor retail uses shall not be counted toward the vehicle parking requirement.

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[. . .]

Table 23
Minimum Off-Street Bicycle Parking Requirements for Parking Assessment Districts (IF USE IS NOT LISTED, REFER TO TABLE 1 FOR REQUIREMENTS)

Use Vehicle Parking Requirement
(# of spaces)
Bicycle Parking Requirement
Class1 Spaces
For Downtown University Avenue Parking Assessment District:

All uses (except residential) 2 1 per 250 square feet 1 per 2,500 square feet
40% - LT 60% -
ST
Residential Uses See Table 1
For California Avenue Parking Assessment District:

Automobile Service Stations
1 per 310 square feet of gross
enclosed floor area, plus queue
capacity equivalent to the service
capacity of gasoline pumps
1 per 10
employees

100%-ST

Automotive Services
1 per 150 square feet of gross floor
area, display, or storage on site 1 per 10
employees

100%-ST
Eating and Drinking Services:
(a) With drive-through drive-in
or take-out facilities
3 per 100 sf of gross floor area 3 per 400 sf 40% - LT 60%-ST (b) All others 1 per 155 sf of gross floor area 1 per 1,550 sf Financial services:
(a) Bank, savings and loan
offices with 7,500 square
feet of floor area or less:
1 per 180 sf of gross floor area 1 per 1,800 sf 40%-LT 60% - ST (b) Banks, savings and loan
offices with more than
7,500 square feet of floor
area:
1 per 310 sf of gross floor area
(c) Others 1 per 180 sf of gross floor area 1 per 1,800 sf General Business Services:
(a) Enclosed 1 per 360 sf of gross floor area 1 per 3,600 sf 80%- LT 20%- ST (b) Open lot 1 per 500 sf of sales, display or storage
site area
1 per 5,000 sf 100%- ST
Medical, professional, and
general business offices
1 per 310 sf of gross floor area 1 per 3,100 sf 60%-LT 40% - ST Personal Services 1 per 450 sf of gross floor area 1 per 4,500 sf 20% - LT 80% - ST
Retail:

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(a) Intensive 1 per 240 sf of gross floor area 1 per 2,400 sf 20%-LT 80% -ST (b) Extensive 1 per 350 sf of gross floor area 1 per 3,500 sf (c) Open lot 1 for each 500 square feet of sales,
display, or storage site area. 1 per 5,000 sf 100%-ST

OTHER USES
Any use not specified See Table 1

1. Long Term (LT) and Short Term (ST) bicycle spaces as described in Section 18.54.060.

2. For residential mixed-use developments in the CD-C zone, CC(2) zone, and on CN and CS zoned sites abutting El Camino Real, the first 1,500 square feet of ground-floor retail uses shall not be counted toward the vehicle parking requirement.

Table 34
Minimum Off-Street Loading Requirements

[. . .]

18.52.050 Adjustments by the Director
Automobile parking and off-street loading requirements prescribed by this chapter may be adjusted by the director in the following instances and in accord with the prescribed limitations in Table 4, when in his/her opinion such adjustment will be consistent with the purposes of this chapter, will not create undue impact on existing or potential uses adjoining the site or in the general vicinity, and will be commensurate with the reduced parking demand created by the development, including for visitors and accessory facilities where appropriate. No reductions may be granted that would result in provision of less than ten (10) spaces on a site. The following are adjustments that apply to developments not located within a parking assessment district. Adjustments within the parking assessment districts are contained in Section

18.52.080. The decision of the regarding parking adjustments may be appealed as set forth in Chapter 18.78 (Appeals).

Table 4 Allowable Parking Adjustments
Purpose of
Adjustment
Amount of Adjustment Maximum Reduction 2
[. . .] [. . .] [. . .]

Combined Parking
Adjustments

Parking reductions may be granted for any
combination of the above circumstances as
prescribed by this chapter, subject to limitations on
the combined total reduction allowed.
3060% reduction of the total
parking demand otherwise
required
40% reduction for affordable
housing projects
[. . .] [. . .] [. . .]

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1. See Section 18.52.050(d) below regarding requirements for TDM programs.

2. No parking reductions may be granted that would result in provision of less than ten (10) parking spaces on site.

2. 3. No parking reductions may be granted for projects that are entitled to the reduced parking standards in Table 1 of Section 18.52.040 for senior housing.

3. 4. Applies to 100% affordable housing projects and the residential component of 100% affordable housing mixed-use projects. "100% affordable housing" as used herein means a multiple-family housing project consisting entirely of affordable units, as defined in Section 16.65.020 of this code, available only to households with income levels at or below 120% of the area median income, as defined in Chapter 16.65, except for a building manager's unit.
(a) Combining Parking Adjustments
Parking reducƟons may be granted for any combinaƟon of circumstances, prescribed by this chapter, so long as in total no more than a 3060% reducƟon of the total parking demand otherwise required occurs, or no less than a 40% reducƟon for aﬀordable housing projects (including Single Room Occupancy (SRO) units).

[. . .]

SECTION 14. Section 18.76.015 (Additional Findings for Specified Retail Uses) of Chapter 18.76 (Permits and Approvals) of Title 18 (Zoning) of the Palo Alto Municipal Code is hereby deleted in its entirety.

SECTION 15. Section 16.59.040 (Exemptions) of Chapter 16.59 (Citywide Transportation Impact Fee) of Title 16 (Building Regulations) of the Palo Alto Municipal Code are hereby amended as follows (additions underlined; deletions struck-through; text omitted but unchanged noted by bracketed ellipses):

16.59.040 Exemptions.

The provisions of this chapter shall not apply to:
(a) City buildings or structures.
(b) Public school buildings or structures.
(c) Affordable units, either for sale or rental, that exceed the minimum number required for projects under the city's below market rate (BMR) housing program or other provisions of this code, which units are, by recordable means, obligated to be and remain affordable units for a period consistent with the requirements of Section 16.65.075(c) of this code. (d) Day care centers used for childcare, nursery school or preschool education. (e) Accessory dwelling units (ADU).
(f) Junior accessory dwelling units (JADU).
(g) Retail service, eating and drinking service, personal service, or automotive service when the total additional square footage is 1,500 square feet or less. This exemption shall apply only when the additional square footage of new development does not exceed 1,500 Item 16
Attachment A - Ordinance
of the Council of the City of
Palo Alto Amending Various
Chapters of Title 18 (Zoning)
and Chapter 16.59
(Citywide Transportation
Impact Fee of the Palo Alto
Municipal Code, and the
Zoning Map, to Implement
Retail Vitality Measures

Item 16: Staff Report
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square feet. New development that is larger than 1,500 square feet shall pay a fee for all square footage, including the first 1,500 square feet.
(h) (g) New development which is exempt from the fee by virtue of the Constitution of the United States or California or by virtue of other applicable state or federal law.

SECTION 16. If any section, subsection, clause or phrase of this Ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portion or sections of the Ordinance. The Council hereby declares that it should have adopted the Ordinance and each section, subsection, sentence, clause or phrase thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid.

SECTION 17. The Council finds that the Ordinance is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3) because it can be seen with certainty that there is no possibility that the foregoing amendments to reduce retail vacancies will have a significant effect on the environment.

//
Item 16
Attachment A - Ordinance
of the Council of the City of
Palo Alto Amending Various
Chapters of Title 18 (Zoning)
and Chapter 16.59
(Citywide Transportation
Impact Fee of the Palo Alto
Municipal Code, and the
Zoning Map, to Implement
Retail Vitality Measures

Item 16: Staff Report
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SECTION 18. This Ordinance shall be effective from the thirty-first day after the date of its adoption. Once effective, this Ordinance shall repeal Ordinance no. 5642.

INTRODUCED:

PASSED:

AYES:

NOES:

ABSTENTIONS:

ABSENT:

ATTEST: APPROVED:

__________________________
City Clerk

APPROVED AS TO FORM:

__________________________
Assistant City Attorney

_________________________
Mayor

_________________________
City Manager

__________________________
Director of Planning and
Development Services

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Exhibit A (Remove Ground Floor (GF) Combining District)

Charleston Shopping Center

Midtown Shopping District

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City Council
Staff Report
Report Type: CONSENT CALENDAR
Lead Department: City Clerk
Meeting Date: August 10, 2026
Report #:2606-6503
TITLE
SECOND READING: Ordinance of the Council of the City of Palo Alto Amending Chapter 12.32 (Water Use Regulations) of the Palo Alto Municipal Code to Incorporate Additional Water Use Regulations (FIRST READING: June 8, 2026; PASSED: 7-0)

BACKGROUND
The City Council heard this item on June 8, 2026 for a first reading and approved it on a 7-0 vote. No changes were made to the ordinance, and it is now before the City Council for a second reading.

ATTACHMENTS
Attachment A: Ordinance of the Council of the City of Palo Alto Amending Chapter 12.32 (Water Use Regulations) of the Palo Alto Municipal Code to Incorporate Additional Water Use Regulations
APPROVED BY:

Mahealani Ah Yun, City Clerk
Item 17
Item 17 Staff Report

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Ordinance No.

Ordinance of the Council of the City of Palo Alto Amending Chapter 12.32 (Water Use Regulations) of the Palo Alto Municipal Code to Incorporate Additional Water Use Regulations

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

SECTION 1. Findings and Declarations. The City Council finds and declares as follows:

A. Article 10, Section 2 of the California Constitution declares that waters of the State are to be put to beneficial use, that waste, unreasonable use, or unreasonable method of use of water be prevented, and that water be conserved for the public welfare.

B. The State of California is prone to drought conditions, which result in water supply shortages.

C. The City of Palo Alto recognizes the continuing need to manage water resources under its jurisdiction and control in a constitutionally compliant manner.

D. Section 12.32.010 of the Palo Alto Municipal Code sets forth permanent water use restrictions applicable to all City water customers in order to responsibly manage the City’s water resources.

E. City regulation of the time and manner of water use, rate design, the method of application of water for certain uses, and establishment of enforcement procedures in support of water use management is an effective and immediately available means of conserving water and is authorized by Palo Alto Municipal Code Section 12.20.010.

F. California Assembly Bill (AB) 1572 (2023) prohibits the use of potable water to irrigate nonfunctional turf at most commercial, industrial, and institutional properties, including common areas managed by homeowner associations, and requires the City of Palo Alto to update its regulations to enforce the State-mandated prohibitions.

G. In 2024, the State Water Resources Control Board adopted the “Making Conservation as a Way of Life” regulation (23 CCR § 965 et seq.), which establishes urban water use objectives and performance measures for retail water suppliers like the City.

H. The Council wishes to make minor changes to existing water use restrictions and adopt additional permanent water use restrictions in order to responsibly manage the City’s water resources, meet its urban water use objectives, and comply with AB 1572.

SECTION 2. Section 12.32.010 (Water Use Regulations) of Chapter 12.32 (Water Use Item 17
Attachment A - Ordinance
of the Council of the City of
Palo Alto Amending Chapter

12.32 (Water Use
Regulations) of the Palo
Alto Municipal Code to
Incorporate Additional
Water Use Regulations

Item 17: Staff Report
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Regulations) of the Palo Alto Municipal Code is hereby amended as follows (additions underlined, deletions struck through):

12.32.010 Water use regulations.

No purchaser of water from the city of Palo Alto, nor any customers of the water utility of the city of Palo Alto, shall use water or allow any other person to use water under the control of such customer or purchaser in the following ways:
(a) Potable water shall not be allowed to flood or run off into gutters: driveways, sidewalks, streets or other unlandscaped areas.
(b) By means of a hose to wash cars, boats, trailers, buses or other vehicles or to wash sidewalks, building structures, other hard-surfaced areas or parts thereof without an operating automatic shut-off valve. Use of a hose for such purposes should be avoided whenever possible.
(c) Potable water for consolidation of backfill and other nondomestic uses in construction shall not be used if other water sources such as reclaimed water are available, as determined by the director of utilities or his or her designee. Applicants for hydrant permits from the city of Palo Alto shall be deemed to have consented to restrictions on water use which may be imposed by the director of utilities or his or her designee. (d) Any broken or defective plumbing, sprinklers, watering or irrigation systems which permit the escape or leakage of water shall be repaired or replaced as soon as possible, but no later than the date established by the director of utilities, or his or her designee, as reasonable after observation of the broken or defective system. (e) The irrigation of turf or ornamental landscapes, which serve purely decorative purposes, and are distinguished from trees, edible gardens or landscapes that provide more than a purely aesthetic function, with potable water shall not be allowed between 910:00 a.m. and 6:00 p.m., except via hand watering with a bucket or a hose with an operating shut- off valve.
(f) The use of potable water in a fountain or other decorative water feature is prohibited, except where the water is part of a recirculating system. (g) The use of potable water for street sweepers and washers is prohibited if non-potable water is available, as determined by the Director of Utilities, or his or her designee. (h) Commercial car washes must use recycled water systems, if recycled water is available, as determined by the Director of Utilities, or his or her designee, and economically feasible.
(i) The use of potable water for the irrigation of nonfunctional turf located on commercial, industrial, and institutional properties, other than a cemetery, and on properties of homeowners’ associations, common interest developments, and community service Item 17
Attachment A - Ordinance
of the Council of the City of
Palo Alto Amending Chapter

12.32 (Water Use
Regulations) of the Palo
Alto Municipal Code to
Incorporate Additional
Water Use Regulations

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organizations or similar entities is prohibited as of the following dates:
(i) All properties owned by local governments, local or regional public agencies, and public water systems, beginning January 1, 2027.
(ii) All other institutional properties and all commercial and industrial properties, beginning January 1, 2028.
(iii) All common areas of properties of homeowners’ associations, common interest developments, and community service organizations or similar entities, beginning January 1, 2029.

Notwithstanding the provisions of this subdivision (i), the use of potable water is not prohibited to the extent necessary to ensure the health of trees and other perennial nonturf plantings, or to the extent necessary to address an immediate health and safety need. For the purposes of this subdivision (i), relevant terms have the same meaning as in Section 10608.12 of the Water Code.

SECTION 3. If any section, subsection, clause or phrase of this Ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portion or sections of the Ordinance. The Council hereby declares that it would have adopted the Ordinance and each section, subsection, sentence, clause or phrase thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid.

SECTION 4. The Council finds that this ordinance is categorically exempt from review under the California Environmental Quality Act (CEQA) pursuant to Section 15307 and 15308 of the CEQA Guidelines (actions taken by regulatory agencies for the protection of natural resources and the environment).

//
Item 17
Attachment A - Ordinance
of the Council of the City of
Palo Alto Amending Chapter

12.32 (Water Use
Regulations) of the Palo
Alto Municipal Code to
Incorporate Additional
Water Use Regulations

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SECTION 5. This ordinance shall be effective on the thirty-first day after the date of its adoption.

INTRODUCED:

PASSED:

AYES:

NOES:

ABSENT:

ABSTENTIONS:

ATTEST:

City Clerk Mayor

APPROVED AS TO FORM: APPROVED AS TO CONTENT:

City Attorney or Designee City Manager

Director of Utilities
Item 17
Attachment A - Ordinance
of the Council of the City of
Palo Alto Amending Chapter

12.32 (Water Use
Regulations) of the Palo
Alto Municipal Code to
Incorporate Additional
Water Use Regulations

Item 17: Staff Report
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City Council
Staff Report
Report Type: CONSENT CALENDAR
Lead Department: City Clerk
Meeting Date: August 10, 2026
Report #:2606-6504
TITLE
SECOND READING: Ordinance of the Council of the City of Palo Alto Amending the College Terrace Residential Parking Program (RPP) at PAMC Section 10.46.060 to Remove Fixed Permit Terms, Sale and Grace Periods (FIRST READING: June 15, 2026; PASSED: 7-0)

BACKGROUND
The City Council heard this item on June 15, 2026 for a first reading and approved it on a 7-0 vote.

No changes were made to the ordinance, and it is now before the City Council for a second reading.

ATTACHMENTS
Attachment A: Ordinance of the Council of the City of Palo Alto Amending the College Terrace Residential Parking Program (RPP) at PAMC Section 10.46.060 to Remove Fixed Permit Terms, Sale and Grace Periods
APPROVED BY:

Mahealani Ah Yun, City Clerk
Item 18
Item 18 Staff Report

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Ordinance No. ____

Ordinance of the Council of the City of Palo Alto Amending the College Terrace Residential Parking Program (RPP) at PAMC Section 10.46.060 to Remove Fixed Permit Terms, Sale and Grace Periods

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

SECTION 1. Findings and Declarations. The City Council of the City of Palo Alto finds and declares as follows:

A. The City has a residential parking permit program in the College Terrace neighborhood (College Terrace RPP) as codified in PAMC Chapter 10.46.

B. The City Council now desires to increase flexibility for the City to issue parking permits in the College Terrace RPP program by removing provisions that fix the term and duration of permits, as well as provisions that fix the sale period and grace period for enforcement.

Staff will continue to implement the RPP program under its authority in PAMC section

10.46.120.

SECTION 2. Subsection (b) is hereby deleted from section 10.46.060 (Issuance of residential parking permits) of Chapter 10.46 (College Terrace Residential Parking Permit Program) of Title 10 (Vehicles and Traffic) of the Palo Alto Municipal Code to read as follows (deleted text in strikethrough, new text underlined):

10.46.060 Issuance of residential parking permits.
(a) Residential parking permits shall be issued by the city in accordance with requirements set forth in this chapter. Each such permit shall be designed to state or reflect thereon the identification of the particular residential permit parking area (i.e., College Terrace) as well as the license number of the motor vehicle for which it is issued. The city may also issue virtual permits in combination with or instead of physical permits. No more than one residential parking permit shall be issued to each motor vehicle owned or leased for which application is made.
(b) Reserved. The city shall issue residential parking permits with a term of one year from September 1 to August 31 regardless of when during the year a resident purchases the parking permit, to motor vehicles which comply with the requirements setforth in this chapter.

Purchase of permits will be available starting thirty days prior to the beginning of thenext RPPP year. A grace period will be recognized from September 1 to September 30 for residents with a permit from the previous year. Vehicles displaying a permit from the previous year will not be cited during the grace period.
(c) Residents applying for a permit will be required to provide proof of vehicle ownership and residency. A vehicle registration form as well as one of the following shall be required at the time of registration showing College Terrace residency:
• Driver’s license – indicating College Terrace Address Item 18
Attachment A - Ordinance
of the Council of the City of
Palo Alto Amending the
College Terrace Residential
Parking Program (RPP) at
PAMC Section 10.46.060 to
Remove Fixed Permit Terms,
Sale and Grace Periods

Item 18: Staff Report
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• Rental agreement – with name of resident
• Current (i.e., not more than sixty days old) utility bill with street address noted (d) One residential parking permit may be issued for each vehicle owned, leased or any person who can demonstrate that they are currently a resident of the area for which the permit is to be issued.
(e) A residential parking permit may be issued for any vehicle owned, leased or any person who is employed by or a representative of a neighborhood-serving establishment located within the particular residential permit parking area. Each employee or representative of a neighborhood-serving establishment will be allowed to obtain one permit for each vehicle they own or lease subject to the following criteria which shall be used to establish the eligibility of a neighborhood-serving establishment and the maximum number of permits to be issued:
(1) An establishment for which there is no off-street parking and no financially feasible way of creating adequate off-street parking on the site of the establishment; (2) In areas where it appears that the number of permits sold per block would exceed the number of legal on-street parking spaces per block the initial sale would be limited to two or possibly one permit per neighborhood-serving establishment; (3) Distribution of permits shall be through a designated representative of the establishment who will be responsible for allocation of the permits to employees. (f) Renewal of residential parking permits shall be subject to the same conditions imposed on new permits.
(g) The residential parking permit shall be displayed as directed by the city. The city may issue a residential parking permit in any form, including as a virtual permit. (h) The Director of the Office of Transportation is authorized to issue such rules and regulations, not inconsistent with this chapter, governing the issuance and display of residential parking permits.
(i) Any person to whom a residential parking permit has been issued pursuant to this section shall be deemed a parking permit holder.

SECTION 3. Severability. If any provision, clause, sentence or paragraph of this ordinance, or the application to any person or circumstances, shall be held invalid, such invalidity shall not affect the other provisions of this Ordinance which can be given effect without the invalid provision or application and, to this end, the provisions of this Ordinance are hereby declared to be severable.

SECTION 4. Effective Date. This ordinance shall be effective on the 31st day after adoption.

//
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//
//
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Item 18
Attachment A - Ordinance
of the Council of the City of
Palo Alto Amending the
College Terrace Residential
Parking Program (RPP) at
PAMC Section 10.46.060 to
Remove Fixed Permit Terms,
Sale and Grace Periods

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3 157_20260519_ts24

SECTION 5. CEQA. The City Council finds and determines that this categorically exempt under CEQA regulation 15301 (existing facilities).

INTRODUCED:

PASSED:

AYES:

NOES:

ABSTENTIONS:

ABSENT:

ATTEST:

____________________________ ____________________________ City Clerk Mayor

APPROVED AS TO FORM: APPROVED:

____________________________ ____________________________ Assistant City Attorney City Manager

____________________________
Chief Transportation Official

Item 18
Attachment A - Ordinance
of the Council of the City of
Palo Alto Amending the
College Terrace Residential
Parking Program (RPP) at
PAMC Section 10.46.060 to
Remove Fixed Permit Terms,
Sale and Grace Periods

Item 18: Staff Report
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City Council
Staff Report
From: City Manager
Report Type: ACTION ITEMS
Lead Department: Fire
Meeting Date: August 10, 2026
Report #:2605-6402
TITLE
PUBLIC HEARING: Consideration of Objections for Weed Abatement Assessments; and Adoption of Resolution Confirming the Weed Abatement Report and Ordering Abatement Costs to be a Special Assessment on the Properties Specified in the Report; CEQA status – categorically exempt.

RECOMMENDATION
Staff recommends City Council:
1) Hold a public hearing to hear and consider objections from affected property owners of proposed assessments related to completed weed abatement work, and 2) Adopt a resolution confirming the report and ordering abatement costs to be a special assessment on the properties specified in the report (Attachment A)

EXECUTIVE SUMMARY
The Santa Clara County Department of Agriculture and Environmental Management and the City of Palo Alto work together to protect our community from fire. One of the purposes of the Weed Abatement Program is to prevent fire hazards posed by vegetative overgrowth and the accumulation of combustible materials. Adoption of the resolution will result in the total of $30,333.20 imposed as liens on the properties listed in the attachment for the cost of weed abatement work performed.

BACKGROUND
The Weed Abatement Division of Santa Clara County Agriculture and Environmental Management administers the contract for weed abatement within the City of Palo Alto, in accordance with an agreement first established on April 18, 1977, as most recently amended in December 2016, between the City and County. On December 8, 2025, in accordance with Palo Alto Municipal Code Chapter 8.08, the City Council declared weeds to be a nuisance and Item 19
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ordered that the nuisance be abated. A public hearing was held on February 9, 2026, to consider objections to the proposed destruction or removal of the weeds.

Property owners were notified in January 2026 that weeds were to be abated by April 30, 2026, either by the owners or by the County. If the property owners chose to have the County abate the weeds, the abatement charges would be levied against the respective properties as an assessment by the County Assessor. Once the above steps had been taken, the County Weed Abatement Division instructed its contractor to abate weeds on private properties within Palo Alto. The County then informs the property owners of the costs for destroying and removing the weeds. The City Clerk has published the required notice of this hearing in the Palo Alto Daily Post. The cost report by the County Weed Abatement Division has been posted on the City Hall Plaza bulletin board for at least ten (10) days prior to this hearing.

ANALYSIS
Property owners may object to the charges for weed abatement being levied against their properties. The charge consists of the contractor’s cost, plus 150 percent administrative charges, in accordance with Palo Alto’s contract with Santa Clara County (CMR #7527, December 12, 2016). A representative from the County Weed Abatement Division will be present at the public hearing with the records of weed abatement that have taken place.

Should there be any modifications in the proposed assessments as a result of the hearing, changes in the assessment spreadsheet will be made as necessary. After any recalculations are completed, and Council adopts the attached resolution confirming the abatements and ordering those costs to be imposed as liens on the abated properties, the assessments will be submitted to the County Assessor for entry on the October tax roll upon which general City taxes are to be collected.

FISCAL/RESOURCE IMPACT
There is no direct fiscal impact of this action to the City. The assessments identified on Attachment A of the resolution, totaling $30,333.20, will be imposed as liens on the properties listed and will be borne by the property owners, not the City.

STAKEHOLDER ENGAGEMENT
The entire weed abatement program is coordinated by the Santa Clara County Department of Agriculture and Environmental Management. Coordination includes contracts, inspections, nuisance reports/lists and fees

ENVIRONMENTAL REVIEW
The Weed Abatement Program is Categorically Exempt from CEQA pursuant to CEQA Guidelines Section 15308.

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ATTACHMENTS
Attachment A: Resolution Confirming 2026 Weed Abatement Program Assessment Report Attachment B: 2026 Weed Abatement Assessment Report
Attachment C: Weed Abatement Summary and Timeline
APPROVED BY:

Stephen Lindsey, Fire Chief
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NOT YET APPROVED Attachment A
Resolution No.

Resolution Confirming Weed Abatement Report and Ordering Abatement Costs to be a Special Assessment on the Properties Described in the Report

R E C I T A L
S
A. The Council of the City of Palo Alto declared weeds growing on certain properties within the City to be a public nuisance by Resolution No. 10268, dated December 8, 2025, and B. The Council on February 9th, 2026, held a public hearing for objections to the proposed destruction and removal of weeds at the properties indicated in the County’s list for weed abatement.

C. The Fire Chief, through his Administrator, the Weed Abatement Division of Santa Clara County Department of Agriculture and Environmental Management, has caused the weeds to be abated on the properties described in the County’s list for weed abatement; and
D. The Fire Chief, through his Administrator, the Weed Abatement Division of Santa Clara County Department of Agriculture and Environmental Management, has filed the 2026 report and assessment list for weed abatement as provided by law and a hearing has been duly set and noticed, for objections to that report and assessment list and for confirmation; and
E. The Council has duly considered the 2026 weed abatement report and assessment list and any objections from affected property owners.

N
OW, THEREFORE, the Council of the City of Palo Alto does RESOLVE as follows:

S
ECTION 1. The report and assessment list is in all respects complete and correct and is hereby confirmed. The amounts of the cost for abating the nuisance are confirmed and those remaining unpaid, as shown on Exhibit “A” attached and incorporated to this Resolution, shall constitute special assessments against the respective parcels of land and are a lien on the property for the amount of the assessment.

S
ECTION 2. All further written or oral protests or objections to the 2026 report and assessment list are overruled or denied.
0 27072226 1
Item 19
Attachment A - Resolution
Confirming 2026 Weed
Abatement Program
Assessment Report

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NOT YET APPROVED Attachment A

SECTION 3. The unpaid assessments shown on Exhibit “A” shall be entered upon the 2026- 2027 tax roll against the parcels of land and shall be collected at the same time and in the same manner as general City taxes, subject to the same interest and penalties, and subject to the same procedure and sale in case of delinquency. All laws and ordinances applicable to the levy, collection, and enforcement of City taxes are hereby made applicable to this special assessment.

SECTION 4. Santa Clara County has determined the weed abatement program to be categorically exempt from CEQA pursuant to CEQA Guidelines Section 15308.

INTRODUCED AND PASSED:

AYES:

NOES:

ABSENT:

ABSTENTIONS:

ATTEST:

City Clerk Mayor
APPROVED AS TO FORM: APPROVED:

Assistant City Attorney City Manager
Fire Chief
Director of Administrative Services

2 Item 19
Attachment A - Resolution
Confirming 2026 Weed
Abatement Program
Assessment Report

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Situs APN Owner Name Tax Roll Amount
1 1605 EDGEWOOD DR, PALO ALTO, CA 94303-2821 003-12-002 MIAO NINA YANTI 931 CLARA DR PALO ALTO CA 94303-4002 6,453.94 2 782 GREER RD, PALO ALTO, CA 94303-3022 003-41-065 DENG JINGJING AND JIANG LIJUN TRUSTEE 20653 CHERYL DR CUPERTINO CA 95014 506.00 3 1071 EMBARCADERO RD, PALO ALTO, CA 94303-3149 003-42-055 KOTHARY NISHITA N AND SHAH NIRAJ A 1071 EMBARCADERO RD PALO ALTO CA 94303 -3149 296.00 4 2385 ST FRANCIS DR, PALO ALTO, CA 94303-3136 003-48-021 ZADIK YAIR AND LINDA 2385 ST FRANCIS DR PALO ALTO CA 94303-3136 401.00 5 2075 LOUIS RD, PALO ALTO, CA 94303-3452 003-50-021 KELLER JEFFREY R 2075 LOUIS RD PALO ALTO CA 94303-3452 401.00 6 742 SOUTHAMPTON DR, PALO ALTO, CA 94303-3437 003-59-041 AGRAWAL PARAG AND AGARWALA VINEETA 1725 NEWELL RD PALO ALTO CA 94303-2951 2 ,539.26 7 260 BYRON ST, PALO ALTO, CA 94301-1307 120-02-030 LIVERIGHT MICHAEL 260 BYRON ST PALO ALTO CA 94301-1307 401.00 8 655 EMBARCADERO RD, PALO ALTO, CA 94301-3628 120-08-023 L S & CO PARTNERSHIP 555 BYRON ST UNIT 105 PALO ALTO CA 94301-1303 296.00 9 2220 BRYANT ST, PALO ALTO, CA 94301-3908 124-14-024 L S & CO. 555 BYRON ST UNIT #105 PALO ALTO CA 94301 296.00 10 1001 COLORADO AV, PALO ALTO, CA 94303-3806 127-04-091 TSUNODA ROLAND T 1001 COLORADO AVE PALO ALTO CA 94303-3806 401.00 11 1020 COLORADO AV, PALO ALTO, CA 94303-3805 127-07-040 1020-MODERNVILLA LLC 908 INDUSTRIAL AVE PALO ALTO CA 94303-4911 296.00 12 4102 SUTHERLAND DR, PALO ALTO, CA 94303-4730 127-16-005 YURCHENCO JAMES R 4102 SUTHERLAND DR PALO ALTO CA 94303-4730 296.00 13 3189 LOUIS RD, PALO ALTO, CA 94303-3955 127-24-031 KATO TAKASHI AND AYANO 3189 LOUIS RD PALO ALTO CA 94303-3955 296.00 14 0 MIDDLEFIELD RD, PALO ALTO, CA 94306 127-33-064 E & R INV PROPERTIES LLC ET AL PO BOX 500 BURLINGAME CA 94011 401.00 15 924 COLORADO AV, PALO ALTO, CA 94303-3801 127-40-006 LIN STANLEY B AND JEAN LAI TRUSTEE 1037 HIGH ST PALO ALTO CA 94301-2425 296.0 0 16 2629 COWPER ST, PALO ALTO, CA 94306-2446 132-02-078 CHRISTENSON KAREN I ET AL 2629 COWPER ST PALO ALTO CA 94306-2446 296.00 17 454 COLORADO AV, PALO ALTO, CA 94306-2414 132-08-118 RAMCHANDRAN ASISH AND KAVITHA TRUSTEE & ET 2657 KIPLING ST PALO ALTO CA 9430 6 296.00 18 2689 BRYANT ST, PALO ALTO, CA 94306-2307 132-13-055 CHOU LYNN H L PO BOX 60416 PALO ALTO CA 94306 296.00 19 2858 WAVERLEY ST, PALO ALTO, CA 94306-2442 132-14-005 CHUNG TIEN-WEN 2858 WAVERLEY ST PALO ALTO CA 94306-2442 296.00 20 3166 KIPLING ST, PALO ALTO, CA 94306-3008 132-15-002 PAO JOY J AND KE SHIAN-REN 67 ORCHARD HILLS ST ATHERTON CA 94027 506.00 21 354 EL VERANO AV, PALO ALTO, CA 94306-2952 132-16-088 ZHOU ZHENG TRUSTEE 354 EL VERANO AVE PALO ALTO CA 94306-2952 296.00 22 3120 COWPER ST, PALO ALTO, CA 94306-3001 132-20-155 VALENTINE MARY E 3120 COWPER ST PALO ALTO CA 94306-3001 296.00 23 339 EL VERANO AV, PALO ALTO, CA 94306-2940 132-21-022 MIZOTE HARUMI TRUSTEE 907 MUSCOVY CT SUISUN CITY CA 94585 506.00 24 309 EL VERANO AV, PALO ALTO, CA 94306-2940 132-21-023 ZHANG QIANLI AND QIU YUNFENG 309 EL VERANO AVE PALO ALTO CA 94306-2940 296.0 0 25 3271 BRYANT ST, PALO ALTO, CA 94306-2928 132-21-027 CONLIN CHARLENE M TRUSTEE 25210 JAKE ST VENETA OR 97487 296.00 26 3535 BRYANT ST, PALO ALTO, CA 94306-4263 132-22-034 DARDEN RUTHIE L TRUSTEE 3535 BRYANT ST PALO ALTO CA 94306-4263 401.00 27 3358 BRYANT ST, PALO ALTO, CA 94306-3524 132-22-070 BEESON DONALD H TRUSTEE PO BOX 60458 PALO ALTO CA 94306 296.00 28 3541 BRYANT ST, PALO ALTO, CA 94306-4207 132-23-033 KAPOSHILIN NICHOLAS TRUSTEE 936 N CALIFORNIA AVE PALO ALTO CA 94303-3405 296.0 0 29 84 ROOSEVELT CL, PALO ALTO, CA 94306-4218 132-23-055 LEUNG JOHN KA YU AND JOANNA KONG TRUSTEE PO BOX 5358 SAN MATEO CA 94402-0358 296.00 30 34 ROOSEVELT CL, PALO ALTO, CA 94306-4216 132-29-061 LYONS CHARLES P TRUSTEE & ET AL 34 ROOSEVELT CIR PALO ALTO CA 94306-4216 296. 00 31 18 ROOSEVELT CL, PALO ALTO, CA 94306-4216 132-29-069 BERNSTEIN AMIR D TRUSTEE 18 ROOSEVELT CIR PALO ALTO CA 94306 401.00 32 3830 CARLSON CL, PALO ALTO, CA 94306-4224 132-30-058 CHENG JING 4521 CAMPUS DR UNIT 363 IRVINE CA 92612 296.00 33 BIRCH ST, PALO ALTO, CA 94306 132-33-060 PACIFIC BELL TELEPHONE COMPANY 600 E GREEN ST RM 300 PASADENA CA 91101 296.00 34 451 WILTON AV, PALO ALTO, CA 94306-2859 132-35-025 SONG ZHIQIANG AND CHEN WEIWEI 451 WILTON AVE PALO ALTO CA 94306-2859 401.00 35 365 WILTON AV, PALO ALTO, CA 94306-2857 132-35-033 TONG PETER AND PAO CHUNG CHIAN 18444 FOREST CROSSING CT OLNEY MD 20832 506.00 36 421 FERNANDO AV, PALO ALTO, CA 94306-2820 132-39-037 WILLIGER EDWARD M P O BOX 20089 STANFORD CA 94309-0089 296.00 37 474 MATADERO AV, PALO ALTO, CA 94306-2837 132-40-011 XIE RONG TRUSTEE 20 BLACK FOX WAY REDWOOD CITY CA 94062 296.00 38 3585 EL CAMINO REAL, PALO ALTO, CA 94306-2806 132-40-058 2060 BIRCH LLC 42840 CHRISTY ST UNIT 209 FREMONT CA 94538 401.00 39 3545 EL CAMINO REAL, PALO ALTO, CA 94306-2806 132-40-063 SOUTH EAST TRAVEL SERVICE (USA) CO 3545 EL CAMINO REAL PALO ALTO CA 9430 6 401.00 40 2740 BYRON ST, PALO ALTO, CA 94306-2505 132-55-020 RV CONSTRUCTIONS.COM LLC 2791 COWPER ST PALO ALTO CA 94306-2448 296.00 41 613 STANFORD AV, PALO ALTO, CA 94306-1412 137-01-059 BAUMANN JOHN R TRUSTEE 613 STANFORD AVE PALO ALTO CA 94306-1412 296.00 42 2150 YALE ST, PALO ALTO, CA 94306-1424 137-01-134 LIANG KE 33206 FALCON DR FREMONT CA 94555 296.00 43 2175 OBERLIN ST, PALO ALTO, CA 94306-1340 137-03-036 YU SHUPING AND DAI XIAOJIE 2175 OBERLIN ST PALO ALTO CA 94306-1340 296.00 44 2153 OBERLIN ST, PALO ALTO, CA 94306-1318 137-03-037 MENDELOWITZ LOUIS I 2153 OBERLIN ST PALO ALTO CA 94306-1318 296.00 45 2120 COLUMBIA ST, PALO ALTO, CA 94306-1232 137-06-088 MARSHALL RUSSELL TRUSTEE PO BOX 1942 CAMPBELL CA 95008 296.00 46 788 LOS ROBLES AV, PALO ALTO, CA 94306-3159 137-13-112 BLOOMQUIST LYNDA L TRUSTEE 788 LOS ROBLES AVE PALO ALTO CA 94306-3159 401.0 0 47 883 ILIMA CT, PALO ALTO, CA 94306-2616 137-14-054 XIE XINMIN AND LI XIAOSU TRUSTEE 2633 MARTINEZ DR BURLINGAME CA 94010 296.00 48 4023 ORME ST, PALO ALTO, CA 94306 137-20-063 ZHU JAY JIABI TRUSTEE & ET AL 827 RICHARDSON CT PALO ALTO CA 94303-4152 296.00 49 4027 ORME ST, PALO ALTO, CA 94306-3137 137-20-064 ZHANG HANG AND YANG XIAOQIAN 4025 ORME ST PALO ALTO CA 94306-3137 296.00 50 4146 EL CAMINO REAL, PALO ALTO, CA 94306-4003 137-24-034 JUAN CHUNG-CHIUNG AND SU CHEN TRUSTEE 6 ATHERTON OAKS LN ATHERTON CA 940 27 296.00 51 3500 DEER CREEK RD, PALO ALTO, CA 94304-1317 142-16-066 LELAND STANFORD JR UNIVERSITY BOARD OF TR 12832 S FRONTRUNNER BLVD STE 1 00 DRAPER UT 84020 296.00 Owner Address
2026 WEED ABATEMENT PROGRAM

JURISDICTION NAME

ASSESSMENT REPORT
Item 19
Attachment B - 2026 Weed
Abatement Assessment
Report

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52 4208 RUTHELMA AV, PALO ALTO, CA 94306-4109 148-02-002 SHIU BOON W AND CHOI KEEHYUN 4208 RUTHELMA AVE PALO ALTO CA 94306-4109 401.0 0 53 4236 DARLINGTON CT, PALO ALTO, CA 94306-4129 148-03-044 WANG YOUXIANG AND LI ZHENGQI TRUSTEE 4236 DARLINGTON CT PALO ALTO CA 9430 6-4129 296.00 54 4346 SILVA AV, PALO ALTO, CA 94306-4421 148-12-014 JIANG WEI AND HAN QIUXIA TRUSTEE 4346 SILVA AVE PALO ALTO CA 94306-4421 296.00 55 4350 SILVA CT, PALO ALTO, CA 94306-4422 148-12-016 HU ZHE AND MA YINGLAN 591 SIERRA AVE MOUNTAIN VIEW CA 94041-2144 296.00 56 4179 OAK HILL AV, PALO ALTO, CA 94306-3721 175-01-025 BACHRACH SYLVIA RASHMI TRUSTEE & ET AL 12 STAR WAY MOUNTAIN VIEW CA 94040 29 6.00 57 4243 MANUELA CT, PALO ALTO, CA 94306-3731 175-02-053 WEAKLAND ALAN TRUSTEE & ET AL 515 S FLOWER ST FLOOR 25 LOS ANGELES CA 90071 2 96.00 58 4100 OLD ADOBE RD, PALO ALTO, CA 94306-3723 175-20-074 ASWATHANARAYANA TEJASVI AND SESHANNA PRATHI 4100 OLD ADOBE RD PALO ALTO C A 94306-3723 296.00 59 4103 OLD TRACE RD, PALO ALTO, CA 94306-3728 175-20-078 STEEL BRIDGE HOMES PALO ALTO LP 205 GARDEN HILL DR LOS GATOS CA 95032 296.0 0 60 4186 OLD ADOBE RD, PALO ALTO, CA 94306 175-20-092 WATERS CHRISTOPHER J TRUSTEE & ET AL 609 ARBOLEDA DR LOS ALTOS CA 94024 296.00 61 3000 ALEXIS DR, PALO ALTO, CA 94304-1303 182-35-035 PALO ALTO HILLS GOLF AND COUNTRY CLUB INC 3000 ALEXIS DR PALO ALTO CA 94304-1 303 296.00 62 3130 ALEXIS DR, PALO ALTO, CA 94304-1305 182-43-024 VON CLEMM PETER F AND JENNIFER J 3130 ALEXIS DR PALO ALTO CA 94304-1305 296.00 63 966 LAUREL GLEN DR, PALO ALTO, CA 94304-1322 182-43-038 JACOBSEN RUTH E TRUSTEE 966 LAUREL GLEN DR PALO ALTO CA 94304-1322 296.00 64 951 LAUREL GLEN DR, PALO ALTO, CA 94304-1323 182-49-004 KHALIL KARIM AND MAWLA PAULINE 951 LAUREL GLEN DR PALO ALTO CA 94304-1323 296.00 65 930 LAUREL GLEN DR, PALO ALTO, CA 94304-1322 182-54-006 LIN YISHU AND WANG YANG 930 LAUREL GLEN DR PALO ALTO CA 94304-1322 296.00 66 931 LAUREL GLEN DR, PALO ALTO, CA 94304-1323 182-54-012 SHETH BEERUD TRUSTEE & ET AL 931 LAUREL GLEN DR PALO ALTO CA 94304-1323 29 6.00 67 929 LAUREL GLEN DR, PALO ALTO, CA 94304 182-54-013 NGAI KENNETH S TRUSTEE & ET AL 3121 BANDERA DR PALO ALTO CA 94304-1341 296.00 TOTAL 30,333.20
Item 19
Attachment B - 2026 Weed
Abatement Assessment
Report

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1 2
0 7
1 Attachment C
City of Palo Alto Weed Abatement
The City of Palo Alto contracts with the Santa Clara County Department of Agriculture and Environmental Management (SCCDAEM) to remove and destroy weeds (as defined in Palo Alto Municipal Code Chapter 8.08) in its efforts to mitigate potential fire hazards. The entire weed abatement program is coordinated by the SCCDAEM. Abatement proceedings must follow a legally established course. This is an annual process with weed abatement occurring in late Spring. City of Palo Alto involvement is limited to the following three steps for City Council:
1) (Nov-Dec) City of Palo Alto declares weeds a nuisance to allow for County abatement and sets a later date (Jan-Feb) for a public hearing to review the Annual Commencement Report (list of “nuisance” parcels).
2) (Jan-Feb) Public Hearing to review the Annual Commencement Report and approve the County abatement proceedings. At this public hearing, property owners may appear and object to the proposed weed destruction or removal. After the hearing and consideration of any objections, the Council may sustain or overrule any or all objections. Upon adoption of the resolution confirming the weed abatement commencement report and ordering weed nuisances abated, the County will be asked to perform the abatement work to destroy and remove any weeds. 3) (July/August) Public Hearing to approve the invoices for the abatement work performed by the SCCDAEM.

The Santa Clara County Weed Abatement Program
The Santa Clara County Department of Agriculture and Environmental Management and the City of Palo Alto work together to protect our community from fire. The purpose of the Weed Abatement Program is to prevent fire hazards posed by vegetative overgrowth and the accumulation of combustible materials.

Typically, a property is placed on the program list by a County Weed Abatement Inspector who identifies a potential fire hazard on the property. The Palo Alto Fire Department (PAFD) and Code Enforcement also report addresses of concern and forward verified complaints from residents to the SCCDAEM.

Residents can report addresses of concern to POAFD, code enforcement, or directly to the County Weed Abatement Program.

Santa Clara County program staff annually inspect listed nuisance parcels at the beginning of the fire season, which is typically on or after April 30th for Palo Alto parcels.

The Weed Abatement program is entirely funded from fees charged to affected residents. All parcels on the abatement program list will be charged a basic inspection fee. If the parcel is not in compliance at the time of inspection, the property owner will be charged an additional failed inspection fee, and they will receive a final courtesy notice as a reminder to abate their weeds within two weeks.

If the weeds are not abated by the property owner, the work will be completed by the County contractor. The property owner will pay the contractor’s fees plus a County administrative fee. All fees will be included in their property tax bill.

Properties that meet and maintain the minimum fire safety standards will only be charged for the annual fee. These properties will be removed from the list after three years of compliance.

Item 19
Attachment C - Weed
Abatement Summary and
Timeline

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City Council
Staff Report
From: City Manager
Report Type: ACTION ITEMS
Lead Department: Transportation
Meeting Date: August 10, 2026
Report #:2511-5563
TITLE
Approval to Proceed with Final Design for the Permanent Installation of the Crescent Park Traffic Calming Project including a Bulb-out on Southwood Drive and East Crescent Drive; CEQA status – categorically exempt.

RECOMMENDATION
Staff evaluated three options in response to recent discussions with the Planning and Transportation Commission in order to address concerns raised by adjacent property owners:

Option 1: Permanent Traffic Calming. Proceed with the proposed modified bulb-out including further reduction in size where feasible, drought tolerant landscaping, new ADA-compliant curb ramps, and stop signs (Attachment A) in alignment with the November 2023 Council direction.

Option 2: Stop Signs. Remove the interim bulb-out and retain and relocate the existing (pilot) stop signs along the pre-pilot curb location, including upgrading the existing curb ramp to meet ADA requirements (Attachment B).

Option 3: No Traffic Calming. Remove traffic calming features including both the pilot bulb-out and stop signs. Upgrade the existing non-standard curb ramp to meet ADA requirements.

Based on the effectiveness of each of the options in addressing access and safety concerns and the level of neighborhood support indicated in the project survey, staff recommends that the City Council approve the final concept design and proceed with Option 1: Permanent Traffic Calming, which includes the permanent installation of the bulb-out at Southwood Drive and East Crescent Drive as part of the Crescent Park Traffic Calming Project.

EXECUTIVE SUMMARY
Staff is returning to Council to confirm direction in relation to traffic calming design concepts at the intersection of Southwood Drive and E. Crescent Drive in response to a request from Planning Item 20
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and Transportation Commission (PTC) members who expressed concerns about a mismatch between their prior communications and the PTC motion communicated to Council on November 6, 2023 (Attachment A).

Based on PTC and community input, staff has incorporated a number of modifications into the recommended bulbout design (Option 1) including reducing the size of the bulbout, straightening the curb for parking near the approach to the bulbout, incorporating drought-tolerant landscaping into the bulbout design and providing a concrete pad adjacent to the on-street parking location (Attachment B).

Additionally, the project team has developed two other options including: Option 2: removal of the bulbout, adding delineators along Southwood Drive, upgrading of the pre-pilot curb ramp and retaining three stop signs (Attachment C); and Option 3: removal of the bulbout and stop signs and upgrading the pre-pilot curb ramp to current ADA standards. Although Options 2 and 3, do not fully align with the original intent and objectives of the traffic calming project, staff has included and analyzed them for Council consideration.

BACKGROUND
The Crescent Park Traffic Calming Project originated in 2018, in response to local resident concerns about cut through traffic, congestion during peak periods, and vehicle speeds during off peak hours. Based on this input, City staff followed the City’s traffic calming process to undertake data collection, evaluate neighborhood conditions, conduct community engagement and work with City’s on-call consultant, Fehr & Peers, to develop draft traffic calming concepts for pilot installation located entirely within the public right-of-way.

On September 9, 2020, PTC reviewed the pilot or interim concepts, 1 and, on November 9, 2020, City Council approved the concepts for pilot installation.2 Treatments included: a three-way stop with a curb extension (also known as a bulbout) at the intersection of Southwood Drive and E.

Crescent Drive, and an oval-shaped traffic circle and channelizers at the five-legged intersection of Southwood Drive, Center Drive and Hamilton Avenue. Features such as roundabouts, bulbouts and channelizers are horizontal deflections that reduce the number and area of conflict points within an intersection, reduce turning speeds, and reduce the collision angle (which reduces the potential for head on collisions). The bulbout concept also squares up the Southwood/E Crescent intersection, which in turn reduces vehicle turning speeds, pedestrian crossing distances and pedestrian exposure to traffic. These features have been identified by the Federal Highway Administration as safety countermeasures, and were implemented in the summer of 2021.

In 2022, staff collected post-installation data including a neighborhood survey to evaluate the performance of the pilot measures. The results showed reductions in traffic volumes, cut through 1 Planning & Transportation Commission, September 9, 2020; Item 2, Action Item, SR# 11517 https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=7132&dbid=0&repo=PaloAlto 2 City Council, November 9, 2020; Item 5, Action Item, SR# 11603 https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=2132&dbid=0&repo=PaloAlto Item 20
Item 20 Staff Report

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traffic, and vehicle speeds, which suggested that the pilot was likely effective (with the caveat that ambient travel patterns had also changed due to the pandemic). Additionally, 74% of Crescent Park residents who responded to the neighborhood survey supported making the traffic calming improvements permanent, voting “YES” to permanently installing the traffic calming measures. For residents along Southwood Drive and E. Crescent Drive in the immediate vicinity of the bulbout, 75% of respondents supported proceeding with the permanent improvements at this location.

Based on this feedback, the project team developed conceptual designs for permanent installation, which were presented to the PTC on June 14, 2023. 5 At this meeting, PTC approved a motion which was reflected in the following way in the meeting minutes:
“to make permanent [traffic calming improvements at location] number one [University Avenue/W Crescent Drive] and number three
[Southwood/Center/Hamilton], but number three [Southwood/E Crescent] only with a condition that it be landscaped. Also, PTC recommended that number two needed more work and that the bulbout be made more suitable with direct input from adjacent property owners.”
On November 6, 2023, City Council approved proceeding with engineering design of improvements for permanent installation of the Traffic Calming pilot project in the Crescent Park neighborhood.6 As part of this consent item, staff indicated that they would engage the community to seek feedback while ensuring that the permanent improvements align with planning and engineering standards.

In February 2024, staff held a field meeting with resident and/or owners of the property adjacent to traffic calming treatments at the corner of Southwood/E. Crescent. The resident and/or owners at that property provided feedback on the aesthetics, parking impacts and landscaping preferences as well as their general dislike of the bulbout. Staff also hosted a neighborhood wide meeting in October 2024 to review the concept designs and gather broader feedback. Based on input from these two meetings, the following adjustments were made to the design:

1. The bulbout/curb extension design was reduced by five feet relative to the pilot to address aesthetic and maneuverability concerns without compromising safety.

2. The existing non-standard curb ramp in front of the property was converted to a concrete pad to enhance curb access and passenger loading.

3. The draft bulbout shape was revised to allow for convenient on-street parking within the public right of way in a manner compliant with AB 413 (aka California’s 2024 5 Planning & Transportation Commission, June 14, 2023; Item 3, Action, SR# 2304-1381 https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=7357&dbid=0&repo=PaloAlto 6 City Council, November 6, 2023; Item 4, Consent, SR# 2307-1777 https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=3855&dbid=0&repo=PaloAlto Item 20
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Corner Daylighting Law). Under AB 413, parking would be prohibited at this location in the pre-pilot condition.

4. The bulbout surface was changed from undefined or concrete, to drought tolerant, low height landscaping to improve aesthetics and alignment with neighborhood character.

On April 9, 2025, PTC reviewed the refined conceptual design. 9 The resident and/or owners at 590 E. Crescent Drive provided public comment regarding the aesthetics and size of the bulbout, and its effect on their ability to park adjacent to the existing non-standard curb ramp. Following committee discussion, PTC voted to unanimously support the Council’s direction from November 6, 2023 to move forward with final design of the traffic circle at Southwood/Center/Hamilton/Center intersection. PTC members also suggested that staff meet again with the resident and/or owners at 590 E Crescent Drive to hear their remaining concerns regarding the access ramp and on street parking, and to return to PTC with an update.

On April 16, 2025, staff conducted another follow-up field meeting with resident and/or owners at 590 E. Crescent Drive. During the meeting, the resident and/or owners reiterated their dislike of the traffic calming treatments, and requested removal of the bulbout and retention of the existing non-standard curb ramp. As suggested by PTC, staff requested that the resident demonstrate their preferred method for accessing their property, however, the resident declined.

On September 24, 2025, staff returned to PTC10 and recommended proceeding to final design for the bulbout and stop signs at Southwood/E. Crescent intersection. At this meeting, PTC members expressed dismay that the resident at 590 E Crescent Drive remained unsatisfied with the design, and recommended full redesign of traffic calming treatments at Southwood/Crescent including consideration of channelizers, a new slip lane (not a traffic calming device), bulbout removal, and relocation of the curb ramp to the west. PTC did not support the staff recommendation to proceed with engineering design of the refined bulbout concept. PTC members also expressed concern that their recommendations from July 14, 2023 had not been accurately communicated to Council on November 6, 2023 (Attachment A)

ANALYSIS
Given concerns expressed by PTC, staff is returning to Council to confirm direction before moving forward with the final design of traffic calming treatments at Southwood/E. Crescent. Key concerns expressed by PTC include:
Questions about community engagement;
9 Planning & Transportation Commission, April 9, 2025; Item 2, Action, SR# 2503-5344 https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=7636&dbid=0&repo=PaloAlto 10 Planning & Transportation Commission, September 24, 2025; Item 2, Action, SR# 2508-5607 https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=7677&dbid=0&repo=PaloAlto Item 20
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Aesthetic concerns regarding the bulbout size and landscaping; Accessibility concerns related to curb ramps and property access; Concerns about dissatisfaction of the abutting resident; and Accuracy of feedback from PTC conveyed to Council.

Questions about Community Engagement
For this project, a range of traffic calming measures, such as speed humps, were evaluated in the pilot planning process and determined to be not appropriate for addressing intersection related safety issues. Pilot improvements were selected after consideration of various traffic calming measures and the improvements that were installed as the pilot project received support from a supermajority of neighborhood residents. In total, the design process for this project has incorporated multiple opportunities for community input including two community meetings, multiple PTC presentations and individual meetings with the resident and/or owners of 590 E Crescent Drive. This engagement has helped staff to incrementally refine draft concepts for potential permanent installation (see Attachment A).

Aesthetic Concerns Related to Bulbout Size and Landscaping In response to PTC feedback, the project team modified the concept design to add drought tolerant landscaping and reduce the bulbout size. During engineering design, staff will assess whether the bulbout footprint can be further reduced by another two feet, beyond the current reduction of five feet, without compromising its effectiveness. In addition, the proposed platform could be widened to provided additional landing space for the resident’s access.

While traffic calming treatments may change the appearance of an intersection, many people consider this change to be positive, particularly where landscaping is added. In addition to potential aesthetic benefits, landscaped bulbouts slow traffic, increase permeable surface area, provide a buffer between motor vehicles and pedestrians and reduce the potential for vehicle incursion into pedestrian space or even private property.

Figure 1: Before (left) and After (right) Bulbout Installation at Kellog and Middlefield

Accessibility Concerns Related to Curb Ramps and Property Access Following PTC feedback, staff reassessed accessibility conditions and consulted with the City’s Item 20
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Chief Building Official / ADA Coordinator regarding concept plan design for the bulbout at Southwood/E. Crescent. Under the proposed concept design, there are at least two accessible means of accessing the property at 590 E. Crescent Drive from the public right-of-way. These include an ADA-compliant pedestrian ramp that would lead to the crosswalk, and a standard concrete platform (creating a break in the landscaped parkway) for stepping into a motor vehicle.

In additional, the property has a residential driveway.

If Council approves advancing the bulbout option (Option 1) to engineering design, staff will further enhance pedestrian access from the vehicle drop off area during engineering design to ensure that vehicles can pull up to the curb as close as possible to the concrete path.

The concept design would remove the legacy non-standard ramp because it does not comply with current ADA standards. During PTC meetings, the abutting resident and/or owners indicated that they would prefer to access their property via a ramp in the location of the prior unmarked crosswalk; however, a ramp in this location would lead straight onto the street in a location other than a marked or unmarked crosswalk, which is not acceptable to the City due to the potential hazard it would create for pedestrians.

Concerns about Satisfaction of the Abutting Resident
Traffic calming treatments, and City roadways more generally, are designed to serve the entire community including pedestrians, bicyclists, motorists, students traveling to school and neighbors in the immediate vicinity. All design treatments within the draft concept are located within City-owned right-of-way, with no elements encroach into private property.

For traffic calming programs, majority support for treatments is typically considered to be a satisfactory outcome, and unanimous support is unlikely, potentially unattainable or is achievable only in a manner that does not model government efficiency. For this project, approximately three quarters of residents who responded to the community surveys supported the design concepts, which staff considers to be a very high level of support relative to typical transportation projects and traffic calming program outcomes in other cities. Staff understands that all aspects of the design may not appeal to all community members, and staff has made multiple good faith efforts to incorporate community input, particularly from the resident closest to the traffic calming treatments, into the design concept displayed in Attachment A.

Accuracy of Feedback from PTC
Following the PTC meeting on September 24, 2025, staff reviewed the full video from June 14, 2023. Based on this review, staff concur with PTC members’ perception that there was a mismatch between the Commission’s general conversation and the final motion that was conveyed by staff to Council.

The PTC motion recommended that Council approve advancing the project to engineering design, with modifications such as landscaping at the Southwood/E. Crescent location and additional engagement of the resident.

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Prior to the motion, one commissioner supported the bulbout design due to safety benefits, another expressed hesitation about second guessing engineering analysis, and other commissioners expressed strong dissatisfaction with the design of the bulbout. Some critiques identified actionable concerns regarding the size of the bulbout, accessibility of pedestrian ramps and a preference for landscaping instead of concrete. Other critiques were more general, describing the current temporary pilot or the design as ugly, awful, bizarre and not acceptable.

After listening to the full video, staff believes that some commissioners wished for a full redesign of traffic calming treatments, and not the type of minor modifications that could be achieved in the context of engineering design for the original design concept. Staff does not recommend returning the project to the community-based design stage due to concerns regarding efficient use of staff time and opportunity costs for other traffic calming project requests throughout the City.

If Council wishes to pursue removal of the pilot, the project team has identified two new options for Council consideration at the Southwood/E. Crescent location:
Option 2: Remove the bulbout and keep existing stop signs; and Option 3: Remove the bulbout and stop signs.

Comparison of Options
The following table provides a comparison of the three options for Southwood/E. Crescent intersection:

Table 1: Comparison of Options
Option 1.Modified bulbout 2.Bulbout removal
with stop signs

3.Bulbout and stop sign
removal
Description Landscaped bulbout
design with further
size reduction
(Attachment A)
Remove the bulbout,
keep existing stop signs
and add delineators
along Southwood Drive
centerline to reduce
conflict zone in
intersection
(Attachment B)
Remove the bulbout and
stop signs
Accessibility
considerations
New ramps within
bulbout (approx. 25‘
from pre-pilot
location) and
conversion of pre-
pilot curb ramp to
concrete pad for
vehicle access
Curb ramp in pre-pilot
location to be
upgraded to current
ADA standards
Curb ramp in pre-pilot
location to be upgraded
to current ADA
standards
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Table 1: Comparison of Options
Option 1.Modified bulbout 2.Bulbout removal
with stop signs

3.Bulbout and stop sign
removal
Effect on traffic
calming goals
Lower speed and less
cut through traffic
than pre-pilot, highly
visible stop sign
Likely lower speed and
cut through traffic than
pre-pilot but non-self-
enforcing i.e. drivers
may roll through or not
notice the stop sign
Similar to pre-pilot i.e.
concerns about
speeding and cut
through traffic
Aesthetic
considerations
Landscaping with
permanent
installation
Large, concrete
intersection
Large, concrete
intersection
On-street
parking
adjacent to 590
E Crescent
Permitted
(>15’ from crosswalk
with curb extension)
Prohibited under AB
413 (<20’ of crosswalk)
Prohibited under AB
413 (<20’ of crosswalk)
California’s Daylighting law (AB 413) prohibits parking within 20 feet of a crosswalk approach or 15 feet of a crosswalk approach where there is a curb extension or bulbout. Under the revised concept design, the approach alignment has been modified to increase the available curb distance. This adjustment allows for parking or short-term stopping behind the concrete path, which may accommodate the resident’s request to park near the former curb ramp.

Staff Recommendation
Staff recommends that Council approve the concept bulbout design (Option 1), with the design modifications indicated above. This option reconfigures E. Crescent Drive to intersect Southwood Drive at a right angle, converting the existing three-legged intersection into a T- intersection and adding a three-way stop control. This realignment has been shown to reduce cut-through traffic and lower unsafe vehicle speeds for right and left turn movements to and from E. Crescent Drive.

This option aligns with similar installations throughout Palo Alto and reflects a good faith effort to balance resident input with access, engineering best practices and neighborhood concerns regarding speed, cut through traffic and safety.

NEXT STEPS
Pending Council approval of the conceptual designs, staff will prepare final construction drawings for both the traffic circle at Hamilton and Center and the approved design features, which might include the landscaped bulbout, ADA-compliant curb ramps, concrete pad and stop signs, at Southwood/E. Crescent (or changes indicated under Options 2 or 3 if one of those is selected by Council) and initiate the construction phase for permanent installation. Staff will return to Council for review and approval of the construction contract.

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FISCAL/RESOURCE IMPACT
The project is funded through the existing Transportation and Parking Improvement Capital Improvement Project (PL-12000), which supports neighborhood traffic calming projects. Staff will be requesting dedicated funding in the next fiscal year budget process for the construction of the permanent improvements

STAKEHOLDER ENGAGEMENT
Staff has held three neighborhood-level community meetings, two meetings with residents at 590 East Crescent Drive and four PTC meetings, to provide residents an opportunity to share their comments on this project Residents have also provided feedback through a survey card that was sent to every household in the Crescent Park neighborhood. Additionally, a dedicated website has been established for the project, aiming to provide information and seek feedback from residents. Furthermore, all households were notified by mail of previous PTC and City Council meetings informing them that this item is being discussed and the availability of the staff report.

ENVIRONMENTAL REVIEW
The modifications involve minor upgrades to an existing residential street right-of-way and will not introduce any new environmental impacts. This project qualifies as a minor alteration to the existing street system and is therefore categorically exempt under Class 1 Exemption, Section 15301 of the California Environmental Quality Act (CEQA).

ATTACHMENTS
Attachment A: Letter to Council from PTC Chair
Attachment B: Option 1- Modified Bulbout Design
Attachment C: Option 2 – Remove Bulbout and Retain Stop Signs APPROVED BY:

Ria Hutabarat Lo, Chief Transportation Official
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Mayor Lauing, Vice Mayor Veenker, Honorable Council Members:

At the Planning and Transportation Commission’s request, we write to make you aware that the Crescent Park Traffic Calming Project suffered from miscommunications that affected City Council, PTC, City Staff, and residents (especially Mr. Girand, the resident nearest the East Crescent bulb-out).

As we see it:

1. PTC intent was miscommunicated to Council, which then approved the item prematurely as part of the consent calendar.

In June 2023, PTC reviewed the results of pilot installations for the Project. As stated in the PTC Summary Minutes for June 14, 2023, PTC made the following recommendation to Council regarding the three components of the project, and notably did not recommend the East Cres- cent bulb-out for permanent installation without change:
“To make permanent number one [bollards for University Ave bike lane] and number three [traffic circle at Center]... Also, PTC recommended that number two [bulb-out at East Crescent] needed more work and that the bulb out be made more suitable with di- rect input from adjacent property owners.

“Commissioner Lu understood that location two would remain in place during the re- design and that Council would evaluate the proposal”
…
“Vice-Chair Chang noted part of the motion was that location two would return to PTC for review if approved by Council to pursue permanent installation. “[Office of Transportation Senior Engineer] Mr. Bhatia announced all three locations would come back to PTC for review.”
In November 2023 when the item was brought to Council, it was placed on the consent calendar as “Approval to Proceed with Design of Improvements for Permanent Installation of the Traffic Calming Pilot Project in the Crescent Park Neighborhood” and Council approved the item.

The Staff Report on the consent calendar item did not accurately represent PTC’s motion, and instead stated:
“The PTC members unanimously endorsed the project and recommended to the City Council that the staff be authorized to proceed with the design of permanent improve- ments. However, in response to concerns raised by the fronting property owners, the PTC further recommended that the staff work with the adjacent property owners to gather their input for the concerns of those directly affected in designing the permanent improvements.”

2. There was not a shared understanding of the project review and approval process.

After the pilot installations were analyzed to create final designs, a review was placed on the PTC agenda as an Action Item. PTC recommended approval of the traffic circle at Hamilton and Center, but did not recommend approval of the bulb-out at East Crescent. PTC requested that Transportation Staff interview Mr. Girand and refine or redesign the treatment on East Item 20
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Crescent before PTC could recommend approval, then continued the item.

When the item returned to PTC on September 24th it had been reclassified as a Study Session, implying PTC approval was no longer needed. From Transportation Staff’s point of view, the design had been approved by Council on the consent calendar and no additional PTC recommendation was expected or required. Therefore from Planning Staff’s point of view, the original classification as an Action Item had been in error.

As a consequence, though, both PTC and Mr. Girand felt that a design known to be unacceptable had been forced through.

3. There was not a shared understanding of the implications of a pilot project.

The informal concept of a pilot project is that it can be undone if determined to be unacceptable. PTC suggested on September 24th that a straightforward resolution for Mr.

Girand’s concerns would be to undo the pilot bulb-out at East Crescent.

However, simply implementing the pilot project triggered a permanent consequence: All modified intersections must be brought into compliance with the ADA, and the pilot itself is considered a modification.

As a result, the non-ADA-compliant access ramp that Mr. Girand has depended upon must be removed and replaced with a curb-height concrete pad, even if the piloted modifications were not approved and the temporary bulb-out and stop signs were uninstalled.

4. Two separate pieces of the traffic calming project, the traffic circle at Hamilton and Center and the bulb-out at East Crescent, were linked in a way they should not have been.

The traffic circle has enthusiastic community support and the PTC also gave its endorsement of the circle in June 2023. However, installation of the traffic circle cannot proceed until the controversy over the bulb-out is resolved because both parts of the project were quoted in a single engineering consultant contract. According to Transportation Staff, obtaining new, separate contracts for each piece of the project would result in substantial cost increases because so much time has elapsed and construction has become more expensive.

We are considering process improvements to prevent similar situations in the future:

1. PTC believes that projects of this type are in its purview, and final designs should be subject to review and recommendation.

2. Council Staff Reports should be reviewed early by the PTC liaison so that miscommunications can be resolved, ideally before the Reports are distributed to Council.

3. During hearings PTC should produce more formal summaries of conclusions that Staff can convey to Council.

4. PTC Liaisons should speak to Council more frequently.

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We hope this summary has clarified matters. As always, we are available to answer your questions and we are grateful for your advice.

Allen Akin
Chair
Bryna Chang
Vice-Chair
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E C R ESC EN T D R

S O U T H W O O D D R I V E
Install 10'
Crosswalk
Add detectable
warning surface to
existing curb ramp
Existing Stop
Sign to Remain
Red Curb 20'
from proposed
crosswalk
Stop Sign
Reconstruct
Existing Curb
Ramp for ADA
Existing Driveway
to Remain
Existing Driveway
to Remain
Install
delineators 10'
apart along
Southwood
Existing stop
sign to remain
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City Council
Staff Report
From: City Manager
Report Type: ACTION ITEMS
Lead Department: Administrative Services
Meeting Date: August 10, 2026
Report #:2605-6413
TITLE
Adoption of a Resolution Authorizing the Borrowing of Funds on an Interim Basis for Improvements to the City's Regional Water Quality Control Plant and Authorizing the Execution and Delivery of a Revolving Credit Agreement, Fee Letter and Related Note; CEQA Status - Not a Project

RECOMMENDATION
Staff recommend that the City Council adopt the attached resolution (Attachment A) authorizing the borrowing of funds on an interim basis for improvements to the City's Regional Water Quality Control Plant and authorize the execution and delivery of a Revolving Credit Agreement and related Note for a total not to exceed $31 million for five years and a Fee Letter.

EXECUTIVE SUMMARY
The City of Palo Alto and its partner agencies are advancing more than $460 million in essential capital improvements at the Regional Water Quality Control Plant, and staff recommend approval of a $31 million Line of Credit (LOC) agreement with US Bank National Association (US Bank) to ensure efficient project delivery and maintain flexible cash flow. Debt service obligations have been incorporated into the City’s financial forecast and upcoming utility rate planning, with all partner agencies—except the City of Mountain View, which will cash-fund its portion—participating in the LOC. The LOC is secured by net revenues of the City’s Wastewater Treatment Fund and the Wastewater Collection Fund.

BACKGROUND
The Regional Water Quality Control Plant (RWQCP), originally constructed in 1934 and substantially expanded in 1972 with funding from the Federal Clean Water Act, is an advanced tertiary treatment facility that provides wastewater treatment for Palo Alto, Mountain View, Los Altos, Los Altos Hills, East Palo Alto Sanitary District, and Stanford University. Palo Alto owns the RWQCP infrastructure and administers the Wastewater Treatment Fund on behalf of all the Item 21
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partner agencies under the Basic Agreement between the Cities of Palo Alto, Mountain View, and Los Altos executed in 1968 and subsequent agreements with the minor partner agencies (hereby collectively referred to as the “partner agreements”). Payments received from all partner agencies are deposited in the Wastewater Treatment Fund, including payments received from the City of Palo Alto.

The Wastewater Collection Fund is Palo Alto’s partner to the RWQCP. The Wastewater Collection Fund develops the wastewater rate proposals based on Palo Alto’s share of the treatment plus the expenses that include operating and maintenance (O&M) and capital costs for the collection system.

The RWQCP is currently implementing over $460 million in capital improvements identified in the 2012 Long Range Facilities Plan (LRFP), including major projects such as the Secondary Treasury Upgrades (WQ-190001), Advanced Water Purification System (WQ-19003), and Headworks Facility Replacement (WQ-16002). These projects are in various stages of design and construction and are funded through a combination of State Revolving Fund (SRF) loans, grants, and debt financing.

Staff initiated a comprehensive update to the LRFP in 20241. The LRFP Update, currently underway, will reassess and reprioritize capital improvement needs over the next 50 years, incorporating consideration of updated regulatory requirements, emerging contaminants, and the current condition and performance of existing RWQCP infrastructure. The update will refine project scopes and cost estimates for remaining projects from the 2012 LRFP and identify additional capital improvements necessary to maintain reliable and compliant plant operations.

The LRFP Update is expected to significantly increase RWQCP’s overall capital needs, highlighting the importance of flexible financing tools such as the proposed LOC.

On November 4, 2025, the Finance Committee received an update of the capital improvement program, LRFP Update, capital and O&M cost allocations, program funding strategies and reserve policy2. Staff’s funding strategies include the following sources:
State Revolving Fund (SRF) loans administered by the State Water Resources Control Board
U.S. Environmental Protection Agency Water Infrastructure Finance and Innovation Act (WIFIA) loans
Utility revenue bonds issued through capital markets
Line of Credit (LOC)
Capital budget for smaller or shorter-term projects.
1 City Council, June 10, 2024; Agenda Item #6; SR# 2405-2993, https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=82887&dbid=0&repo=PaloAlto 2 Finance Committee, November 4, 2025:
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The selection of the funding source for each project depends on program eligibility (for SRF and WIFIA), prevailing interest rates at the time of the loan or bond issuance, repayment terms, and cash flow needs. Annual debt service payments are shared among all RWQCP partner agencies, with the exception of the City of Mountain View, through amendments to their partner agreements. Partner amendments are scheduled to be presented to the City Council in the fall.

Palo Alto is responsible for 38.16% share of debt-financed costs. These obligations directly affect the City’s Wastewater Collection Fund and are the primary driver for projected rate adjustments.

The LOC provides flexibility that is critical for project delivery by smoothing cash flow requirements and accommodating uncertainty in the timing and scale of capital expenditures.

The November 2025 Finance Committee report2 includes an LOC cost analysis. In June 2024, Council authorized staff to obtain a $31 million Line of Credit for the Wastewater Treatment Fund5; this authority allows the City Manager to negotiate and execute the LOC however per Palo Alto Municipal Code (PAMC) section 12.28, the LOCs must be approved by Council via resolution (Attachment A).

ANALYSIS
In late February 2026, the City’s municipal advisor, Public Financial Management (PFM) released a request for proposal (RFP) for an LOC. To provide the City with flexibility and distinct rates, the RFP requested proposals for both taxable and tax-exempt draws. The RFP was distributed to 19 banks and the City received two proposals, BMO and US Bank. Staff evaluated and discussed both proposals with the City’s financial advisor, PFM. Pricing for both proposals is comparable to other proposals received for other agencies of similar facility size and projects (i.e. water or water treatment). Staff recommend and has negotiated a five-year LOC with US Bank. Table 1 summarizes the pricing and fees received from BMO and US Bank. As of July 23, 2026, the one-month SOFR rate is 3.62%.

Table 1: Pricing and Fee Comparison
BMO
US Bank
(Recommended)
Pricing Tax-Exempt Rate: 82% 1M SOFR + 1.45%
Taxable Rate: 1M SOFR + 1.20%
Undrawn Fee: 0.30% of unutilized amount
5 Year
Tax-Exempt Rate: 80% 1M SOFR + 1.19%
Taxable Rate: 1M SOFR + 1.19%
Undrawn Fee: 0.25% of unutilized amount
Terms & Conditions Rate Covenant - 125% of Debt Service Additional Bonds Test - 125% of Debt Service
Rate Covenant - 125% of Maximum Annual Debt
Service*
Additional Bonds Test - 125% of Debt Service
Minimum Ratings of A3/A- for City's GO Debt
5 City Council, June 17, 2024:
https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=82897&dbid=0&repo=PaloAlto&searchid=a71833e6 -80d5-4688-8ab4-cd9a7edc4503 and Supplemental Memo:
https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=82929&dbid=0&repo=PaloAlto&searchid=a71833e6 -80d5-4688-8ab4-cd9a7edc4503
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Table 1: Pricing and Fee Comparison
BMO
US Bank
(Recommended)
Bank Ratings Long-Term (S/M/F): A+/A1/AA-
Short-Term (S/M/F): A-1/P-1/F1+
Outlook (S/M/F): Stable/Stable/Stable
Long-Term (S/M/F): A+/A2/A+
Short-Term (S/M/F): A-1/P-1/F1
Term Out Provisions Base Rate + 2.00% fixed for 3 years Base Rate + 3.00% fixed for 3 years Relevant Experience Los Angeles County Metropolitan Transportation Authority, City of Pasadena, City of Modesto,
Chicago Housing Authority, and Citizens Energy
Group
Santa Clara Valley Water District, SFPUC - Water
Enterprise, SFPUC Wastewater Enterprise,
Gainesville Regional Utilities, CO, Lower
Colorado River Authority
Fees
Legal Expenses Capped at $35,000 Estimated at $45,000; Capped at $50,000 Upfront Fee $0 $0
Termination Fee $0 One-year make whole termination provision *The Wastewater Treatment Fund compiles with the 125% of Maximum Annual Debt Service.

Under both proposals, security for the LOC is net revenues of the Wastewater Collection Fund and Wastewater Treatment Fund, on parity with the existing State Revolving Fund (SRF) installment sale agreements.

Regarding the City’s Debt Policy7, the Enterprise Funds have a debt service limit of 15% of operating expense. The estimated debt service limit for FY 2026 is 7.6%. Conservatively assuming a fixed $21 million drawn amount, with $10 million unutilized, issuance of a $31 million LOC would increase the fund’s debt service limit by approximately 2.2 to 2.6 percentage points between FY 2027 and FY 2028. The City Council approved an exception to the debt limit on December 5, 2022 upon approving the budget amendment to fund the Secondary Treatment Upgrade (STU) project using the 2022 SRF loan. Based on the estimated interest and cost forecast budget, the WWT Fund is estimated to exceed the 15% debt limit due in FY 2028 due to repayment of the 2022 SRF loan.

FISCAL/RESOURCE IMPACT
Amendments to the agreements with partner agencies to incorporate fiscal impacts of this LOC are scheduled for Palo Alto City Council consideration in fall 2026. The annual partner cost is approximately $0.8 to $1.0 million, which is lower than the $1.3 to $1.5 million range previously communicated to the City Council and partners in fall 2025. 7 City Debt Policy, Adopted by City Council on April 11, 2017:
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The City of Palo Alto, as a partner to the RWQCP, has assumed the impact of the LOC in its Financial Forecast and utility rates for FY 2027, as presented to the Finance Committee on March 17, 20269.

STAKEHOLDER ENGAGEMENT
The Administrative Services Department (ASD) and Public Works Department (PWD) work in close collaboration on the RWQCP capital improvement plan and its financing strategy. Staff in the ASD and PWD have also been meeting regularly with partner agencies to review financing needs, explain the structure of the LOC, and discuss repayment obligations.

ENVIRONMENTAL REVIEW
The proposed LOC is not a project as defined by the California Environmental Quality Act (CEQA) because approval of a LOC is a government funding mechanisms or fiscal activity which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. CEQA Guidelines section 15378(b)(4). The Individual capital improvement projects described in this report are exempt from CEQA review under section 15301 of the CEQA Guidelines because they involve the operation, repair, maintenance, permitting, or minor alteration to an existing facility with negligible or no expansion in use.

ATTACHMENTS
Attachment A: Resolution Authorizing the Borrowing of Funds on an Interim Basis for the RWQCP
APPROVED BY:

Lauren Lai, Administrative Services Director
9 Finance Committee, March 17, 2026:
https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=86854&dbid=0&repo=PaloAlto&searchid=da736b0 9-2d2f-4bc1-ac2c-38a18f34577e
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Resolution No. __

Resolution of the Council of the City of Palo Alto Authorizing the Borrowing of Funds Pursuant to Chapter 12.28 of the Palo Alto Municipal Code to Finance on an Interim Basis Improvements that Benefit the City’s Wastewater Treatment Enterprise and Wastewater Collection Enterprise, Authorizing the Execution and Delivery of a Revolving Credit Agreement, a Fee Letter and Related Notes, Authorizing and Ratifying Execution and Delivery of Related Documents, and Authorizing Related Actions

RECITALS

A. The City of Palo Alto (the "City"), acting under and pursuant to the powers reserved to the City under Sections 3, 5 and 7 of Article XI of the Constitution of the State of California and Article II of the Charter of the City, operates and maintains facilities for the collection, pumping, transport, treatment, storage and disposal of wastewater (the "Wastewater System")

B. The City is empowered pursuant to Chapter 12.28 of the Palo Alto Municipal Code to issue bonds, notes and other obligations, to provide funds for the acquisition, construction, improvement or financing of the Wastewater System.

C. Chapter 12.28 authorizes the City Council to exercise all of the powers set forth in the Revenue Bond Law of 1941, being Chapter 6, commencing with Section 54300, of Part 1 of Division 2 of Title 5 of the California Government Code, subject to the restrictions set forth therein, except as provided in Chapter 12.28.

D. The City previously issued or incurred the following outstanding obligations for the purpose of financing and refinancing, as applicable, certain improvements to the Wastewater System (the “Outstanding Obligations”):

(i) a Project Finance Agreement No. 07-814-550-0 between the City and the California State Water Resources Control Board (“State Water Board”), as amended,
(ii) a Project Finance Agreement No. 09-814-550 between the City and the State Water Board, as amended,
(iii) an Installment Sale Agreement No. D16-01034, dated as of March 20, 2017 by and between the City and the State Water Board, as amended, (iv) an Installment Sale Agreement No. SWRCB0000000000D2001009, executed as of July 12, 2021 by and between the City and the State Water Board, as amended,
(v) an Installment Sale Agreement No. D2101050, executed as of May 9, 2022 by and between the City and the State Water Board, as amended, and (vi) an Installment Sale Agreement No. D2401001, executed as of March 27, 2025 by and between the City and the State Water Board.

E. The Outstanding Obligations are secured by a first priority pledge of and payable from net revenues of the City’s Wastewater Treatment enterprise and its Wastewater Collection enterprise.

F. The City has determined that it is a necessary and proper municipal affair to finance on an interim basis certain additions, betterments, extensions and improvements to the City’s Item 21
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Authorizing the Borrowing
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Regional Water Quality Control Plant and other improvements that benefit the City’s Wastewater Treatment enterprise and its Wastewater Collection enterprise (the “Project”).

G. The City wishes to secure such financing by a first priority pledge of net revenues of the City’s Wastewater Treatment enterprise and its Wastewater Collection enterprise.

H. Pursuant to Government Code Section 5852.1, certain information relating to the revenue bonds is set forth in Appendix A attached to this Resolution, and such information is hereby disclosed and made public.

I. United States Income Tax Regulations section 1.150-2 provides generally that proceeds of tax-exempt debt are not deemed to be expended when such proceeds are used for reimbursement of expenditures made prior to the date of issuance of such debt unless certain procedures are followed, one of which is a requirement that (with certain exceptions), prior to the payment of any such expenditure, the issuer declares an intention to reimburse such expenditure.

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

SECTION 1. Findings and Determinations. The City Council hereby finds, determines and declares that the Recitals are true and correct.

SECTION 2. Approval of Credit Agreement, Fee Letter and Notes; Terms of the Credit Agreement, Fee Letter and Notes; Security. The Council is adopting this resolution under the powers reserved to the City under Sections 3, 5 and 7 of Article XI of the Constitution and Article II of the Charter. Pursuant to Chapter 12.28, and for the purpose of financing the Projecton an interim basis, the City Council hereby approves the borrowing of funds by the City in the form of a revolving credit agreement (the “Credit Agreement”), a letter confirming certain terms related to the calculation of the interest rate payable by the City under the Credit Agreement and related fees (the “Fee Letter”) and one or more notes to evidence the City’s obligations under the Credit Agreement (the “Notes”).

The maximum principal amount outstanding under each of the Credit Agreement and the Notes at any time shall not exceed $31,000,000.

The interest rate under the Credit Agreement, the Fee Letter and the Notes shall not exceed the maximum rate of interest authorized by law. The interest rate under the Credit Agreement, the Fee Letter and the Notes may be fixed, variable, exempt from federal income taxation or subject to federal income taxation, in each case, as determined by the City Manager, Administrative Services Director or a designee appointed in writing by any such officer (each, an “Authorized Officer”) in consultation with Jones Hall LLP, the City’s bond counsel, and PFM Financial Advisors LLC, the City’s municipal advisor.

The initial term of the Credit Agreement and the Notes shall not exceed five years, but the Credit Agreement and the Notes may have a succeeding term that shall not exceed three years.

The City’s payment obligation under the Credit Agreement, the Fee Letter and the Notes shall be secured by a first priority pledge of and payable solely from the net revenues of the City’s Wastewater Treatment enterprise and its Wastewater Collection enterprise. The pledge shall be on a parity basis with the pledge securing the Outstanding Obligations, as determined Item 21
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by an Authorized Officer. To the extent the Credit Agreement is used to finance improvements that only partially benefit the City’s Wastewater Treatment enterprise and Wastewater Collection enterprise, the City will ensure that the financing costs are paid or reimbursed in a manner that complies with applicable law, including Articles XIII C and D of the California Constitution. The general fund of the City is not liable for the payment of the City’s obligations under the Credit Agreement, the Fee Letter or the Notes. The credit or taxing power of the City is not pledged for the payment of the City’s obligations under the Credit Agreement, the Fee Letter or the Notes.

The Lenders (as defined in the Credit Agreement) may not compel the exercise of the taxing power of the City or the forfeiture of its property.

The City Council hereby determines that the Credit Agreement, the Fee Letter and the Notes are conclusively deemed valid and execut ed, delivered and issued, as applicable, in conformity with Chapter 12.28.

SECTION 3. Selection of U.S. Bank. The City Council hereby approves U.S. Bank National Association as Agent (as defined in the Credit Agreement) and the initial sole Lender, which staff has recommended following a competitive selection process.

SECTION 4. Approval of Credit Agreement, Fee Letter and Notes. The City Council hereby approves the Credit Agreement, the Fee Letter and the Notes in substantially the forms on file with the City Clerk, with such changes approved by an Authorized Officer, acting alone, after consultation with City staff, bond counsel and the municipal advisor.

The Mayor or the City Manager, acting alone, is authorized and directed for and in the name and on behalf of the City to execute and the City Clerk is hereby authorized and directed to attest the final form of the Credit Agreement, the Fee Letter and the Notes, and the execution of the Credit Agreement, the Fee Letter and the Notes by the Mayor or the City Manager shall be conclusive evidence of their approval by this City Council.

SECTION 5. Authorization and Ratification of Amendments to the Outstanding Obligations. The City Council hereby authorizes and ratifies the execution and delivery of amendments to the Outstanding Obligations as may be required to facilitate the proposed interim financing. The execution of such amendments by an Mayor or the City Manager shall be conclusive evidence of such approval and ratification.

SECTION 6. Official Actions. Each Authorized Officer, the Mayor, the City Attorney, the City Clerk and all other officers of the City are each authorized and directed in the name and on behalf of the City to make any and all assignments, certificates, requisitions, agreements, notices, consents, instruments of conveyance, warrants, promissory notes and other documents, which they or any of them might deem necessary or appropriate in order to consummate any of the transactions contemplated by the agreements and documents approved under this Resolution. Whenever in this Resolution any officer of the City is authorized to execute or countersign any document or take any action, such execution, countersigning or action may be taken on behalf of such officer by any person designated by such officer to act on his or her behalf in the case such officer is absent or unavailable.

Any and all acts of each Authorized Officer, the City Attorney, the Mayor, the City Clerk and all other officers of the City in furtherance of the transactions contemplated by the foregoing resolutions that were taken prior to the adoption of these resolutions, are hereby ratified, confirmed, approved, and adopted.

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Attachment A - Resolution
Authorizing the Borrowing
of Funds on an Interim Basis
for the RWQCP

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SECTION 7. Reimbursement Intent. The City hereby declares that it reasonably expects (i) to pay certain costs of the Project prior to the execution and delivery of the Credit Agreement and (ii) to use a portion of the proceeds of the Credit Agreement for reimbursement of expenditures for the Project that are paid before the execution and delivery of the Credit Agreement.

SECTION 8. California Environmental Quality Act. The foregoing resolutions and the execution and delivery of the Credit Agreement, the Fee Letter and the Notes are not a project for purposes of the California Environmental Quality Act because the additions, betterments, extensions and improvements to the City’s Regional Water Quality Control Plant to be financed as described herein are categorically exempt under CEQA Guidelines Section 15301.

SECTION 9. Effective Date. This Resolution shall take effect immediately upon its adoption.

* * * * * *
INTRODUCED AND PASSED:

AYES:

NOES:

ABSENT:

ABSTENTIONS:

ATTEST: APPROVED:

City Clerk Mayor

APPROVED AS TO FORM: APPROVED
Jones Hall LLP

B y :

Christopher K. Lynch, City Manager
Jones Hall LLP
Bond Counsel

Director of Administrative Services

City Attorney
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APPENDIX A

Government Code Section 5852.1 Disclosure

The following information consists of estimates that have been provided by the City’s municipal advisor which has been represented by such party to have been provided in good faith. The information assumes that the City will borrow funds in the form of a revolving line of credit in the principal amount not to exceed $31,000,000 at any time with a five-year maturity date.

(A) True Interest Cost of the Financing: 3.416%

(B) Finance Charge of the Financing (Sum of all fees/charges paid to third parties):
$127,000

(D) Total Payment Amount Through Maturity: $33,943,027

The foregoing estimates constitute good faith estimates only. The principal amount, the true interest cost, the finance charges thereof, the amount of proceeds received therefrom and total payment amount with respect thereto may differ from such good faith estimates due to (a) the actual date of the financing being different than the date assumed for purposes of such estimates, (b) the actual principal amount being different from the estimated amount used for purposes of such estimates, (c) the actual amortization of the principal being different than the amortization assumed for purposes of such estimates, (d) the actual interest rate being different than those estimated for purposes of such estimates, (e) other market conditions, or (f) alterations in the City’s financing plan (including the mix of tax-exempt and taxable obligations), or a combination of such factors. The actual timing of the financing and the actual principal amount of the financing will be determined by the City based on the timing of the need for proceeds and other factors. The actual interest rates paid by the City will depend on market interest rates and the terms of the financing. The actual amortization of the principal will also depend, in part, on market interest rates. Market interest rates are affected by economic and other factors beyond the control of the City.

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Attachment A - Resolution
Authorizing the Borrowing
of Funds on an Interim Basis
for the RWQCP

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City Council
Staff Report
From: City Clerk & City Manager
Report Type: ACTION ITEMS
Lead Department: City Clerk
Meeting Date: August 10, 2026
Report #:2607-6526
TITLE
Adoption of a Resolution to Reduce the Membership of the Stormwater Management Oversight Committee and Direction Related to an Amendment to the Palo Alto Municipal Code to Streamline the Functions of the Historic Resources Board; CEQA Status - Not a Project

RECOMMENDATION
Staff recommends that the City Council:

1. Adopt a Resolution to reduce the membership of the Stormwater Management Oversight Committee from seven (7) members to five (5) members.

2. Discuss and provide staff direction regarding adoption of an Ordinance amending the Palo Alto Municipal Code to authorize the Planning and Development Services Director to designate a Historic Preservation Officer to perform certain Historic Resources Board functions.

EXECUTIVE SUMMARY
Despite extensive recruiting efforts, the City’s Historic Resources Board and Stormwater Management Oversight Committee have experienced difficulties in attracting a sufficient number of qualified community volunteers to meet each body’s established responsibilities.

Staff recommends adoption of a resolution and targeted amendments to the Palo Alto Municipal Code intended to improve administrative efficiency and ensure continuity of City operations.

The resolution would reduce the membership of the Stormwater Management Oversight Committee (SMOC) from seven members to five members. Staff has experienced ongoing challenges recruiting and maintaining seven active members and continuing to satisfy quorum requirements. Reducing committee membership will improve the Committee's ability to conduct regular business while maintaining diverse community representation.

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An ordinance amendment would authorize the Planning and Development Services Director to designate a Historic Preservation Officer to carry out specific administrative responsibilities currently assigned to the Historic Resources Board (HRB) to reduce delays in the event of a lack of quorum due to vacancies, recusals, or other circumstances that prevent the Board from taking action under the Ralph M. Brown Act.

Neither proposal changes the policy responsibilities or advisory role of either body.

BACKGROUND
The City periodically reviews the Palo Alto Municipal Code to ensure governance structures remain effective and reflect current operational needs.

During recent appointments and committee administration, staff identified two provisions that warrant amendment.

Stormwater Management Oversight Committee: The Stormwater Management Oversight Committee currently consists of seven members. Over several recruitment cycles, staff has experienced difficulty recruiting and retaining sufficient qualified applicants to consistently fill all seven seats. Vacancies increase the likelihood that meetings cannot achieve quorum, limiting the Committee's ability to conduct business.

Historic Resources Board: The Historic Resources Board is responsible for performing various duties established within the Municipal Code, including certain administrative actions delegated by ordinance. In limited circumstances, the Board has been unable to establish a quorum because of vacancies, recusals due to conflicts of interest, or other attendance limitations. When this occurs, required project reviews may be delayed, even when minor in nature.

ANALYSIS
In order to address the challenge of attracting a sufficient number of qualified community volunteers for these advisory bodies, staff discussed a variety of approaches. This included modifying the required qualifications for service, adjusting or consolidating responsibilities with other bodies, and modifying the size of the advisory bodies.

Stormwater Management Oversight Committee
Reducing committee membership to five members would better align with current recruitment realities while maintaining effective community oversight and participation. Staff believes reducing committee membership from seven to five members provides several benefits. These include:
Improved ability to establish quorum
Reduced recruitment challenges
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Increased operational efficiency
Continued effective public representation
Five-member advisory bodies are common throughout the City's board and commission structure and continue to provide robust community participation while improving meeting reliability.

No changes are proposed to the Committee's responsibilities, authority, or reporting relationship.

Historic Resources Board
The proposed amendment would authorize the Planning and Development Services Director to designate a Historic Preservation Officer to perform administrative functions similar to the staff level minor architectural review process to reduce the frequency of project review delays due to lack of quorum. Staff recommends that some projects that would currently go to the Historic Resources Board for review to be processed at the staff level including but not limited to: (1) signs, (2) minor changes to previously approved projects, and (3) landscape plans, fences, exterior remodeling, parking design, and removal of inappropriate additions or alterations to historic structures. The Historic Resources Board would still be charged with recommendations on designating historic buildings and applications that would affect the historic integrity of listed resources.

The draft amendment would be developed to align the City's Historic Preservation Program with the streamlined administrative processes recently adopted by a number of Certified Local Governments (CLGs). These efforts of communities across the state have delegated routine administrative tasks and reviews previously assigned to historic preservation commissions to staff through Director designation or delegation. The proposed amendment reduces process delays caused by limited situations where the Historic Resources Board is unable to legally act.

Examples include:
Multiple vacancies
Required recusals resulting from conflicts of interest Extended absences
Without this amendment, routine administrative matters may remain pending until sufficient Board members are available.

The California Office of Historic Preservation (OHP) must review and comment on ordinance changes before adoption, and staff will update the City Council on any OHP feedback when returning with the draft ordinance.

FISCAL/RESOURCE IMPACT
The proposed Municipal Code amendments have no direct fiscal impact.

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The Historic Resources Board amendment is expected to improve administrative efficiency by reducing delays associated with quorum limitations.

The Stormwater Management Oversight Committee amendment may modestly reduce future recruitment and onboarding efforts associated with maintaining committee membership.

STAKEHOLDER ENGAGEMENT
The proposed resolution and code amendments have been developed collaboratively between the City Clerk's Office, the Planning and Development Services Department, and the Public Works Department.

The Historic Resources Board and Stormwater Management Oversight Committee will be informed of the proposed amendments that are recommended for Council consideration.

ENVIRONMENTAL REVIEW
This action is not a project under section 15378(b)(5) of the California Environmental Quality Act Guidelines (administrative activities that will not result in direct or indirect physical change in the environment).

ATTACHMENTS
Attachment A: Resolution Amending and Restating Stormwater Management Committee to Reduce Membership from Seven Members to Five Members
APPROVED BY:

Mahealani Ah Yun, City Clerk
Item 22
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*NOT YET APPROVED*
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Resolution No. ____
Resolution of the Council of the City of Palo Alto Amending and Restating Resolution 10246 for the Storm Water Management Oversight Committee to Reduce Membership from Seven Members to Five Members

R E C I T A L S

A. On November 14, 2005, the City Council adopted Resolution No. 8573, establishing the Storm Drain Oversight Committee to review the proposed operating and capital budget of the Storm Drainage Fund and the year -end financial report documenting the expenditures of the Storm Drainage Fund in the previous fiscal year.

B. On August 29, 2016, the City Council adopted Resolution No. 9624, calling a Mail Ballot Election in connection with the City’s proposed Storm Water Management Fee.

C. On October 24, 2016, the City Council adopted Resolution No. 9635, proposing a Storm Water Management Fee to replace the Storm Drainage Fee, calling a Public Hearing for October 24, 2016 with respect to such Fee and adopting Procedures relating to the conduct of a Protest Hearing and Mail Ballot Election.

D. On May 1, 2017, the City Council adopted Resolution 9677, which replaced the Storm Drain Oversight Committee with the Storm Water Management Oversight Committee.

E. On June 21, 2021, the City Council adopted Resolution 9969, which imposed term limits on members of the Storm Water Management Oversight Committee by amending and restating Resolution 9677. The City Council also moved the recruitment period to March from the past practice of May appointments.

F. On December 2, 2024, the City Council adopted Resolution 10200 to move the recruitment period to November to coincide with other boards and commissions with the same recruitment period. Existing terms will be extended to October 31. Going forward, terms begin on November 1.

G. On August 11, 2025, the City Council adopted Resolution 10246 to require the election of a chairperson and vice chairperson by adding Section 2.5 to the existing provisions , consistent with existing practice and other boards and commissions of the City.

H. The City Council now intends to reduce the membership of the Storm Water Management Oversight Committee from seven members to five members.

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

Item 22
Attachment A - Resolution
Amending and Restating
Stormwater Management
Committee to Reduce
Membership from Seven
Members to Five Members

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*NOT YET APPROVED*
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SECTION 1. The Storm Drain Oversight Committee is decommissioned effective May 31, 2017.

SECTION 2. Committee Established. The City of Palo Alto Storm Water Management Oversight Committee is hereby created to review proposed storm water management capital improvements and operating programs to be funded from the Storm Water Management Fees and to monitor expenditures of the fund.

SECTION 2.5. Chairperson and Vice Chairperson. The Committee shall elect a chairperson and a vice chairperson from its membership who shall serve in such capacity for one year each, or until a successor is elected, unless his or her term as a member of the Committee sooner expires.

SECTION 3. Committee Membership and Appointment. The Committee shall consist of five members who are selected and appointed by the City Council for a term of four years.

Committee members shall serve without compensation. Each Committee member shall be a resident of Palo Alto, an employee of a business located in Palo Alto or an owner of real property within the City. No member shall be a council member, officer or employee of the City. Effective January 1, 2022, terms of office due to expire on May 31 of each year shall be extended to expire on March 14 of the following year, and thereafter terms of office shall commence on March 15.

Effective January 1, 2025, terms of office due to expire on March 1 4 of each year shall be extended to expire on October 31 of the same year, and thereafter terms of office shall commence on November 1.

SECTION 4. Term limits. Effective January 1, 2022, no person may serve more than two consecutive terms of office as a member of the Committee. (a) For the purposes of this section, a member will be considered to have served a term of office if he or she serves more than two years within one term. (b) A member’s service that began on or before January 1, 2022 shall count under the provisions of this section only for those members who served for at least one day o n the Committee between January 1, 2021 and January 1, 2022. Notwithstanding the previous sentence, members on Committee as of January 1, 2022 shall be permitted to complete their term.
(c) A member who has served two consecutive terms of office may remain as a member of the Committee for up to six months past the end of the term if no replacement is appointed or until a replacement is appointed, whichever comes first. (d) A member who has served two consecutive terms of office shall not be appointed to the Committee within one year of the last date of service.

SECTION 5. Committee Duties. The Committee shall discharge its oversight duties by:

(a) Meeting at least once a year to review the proposed operating and capital budgets of the Storm Water Management Fund for the next fiscal year . The Committee shall prepare a report documenting its findings with respect to the proposed Item 22
Attachment A - Resolution
Amending and Restating
Stormwater Management
Committee to Reduce
Membership from Seven
Members to Five Members

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budget and submit the report to the Finance Committee of the City Council prior to June 30th each year.
(b) Meeting at least once a year to review the year -end financial report documenting the expenditures of the Storm Water Management Fund in the previous fiscal year.

The Committee shall prepare a report documenting its findings with respect to the expenditures and submit the report to the City Council prior to May 31st each year.

SECTION 6. Meeting Procedures. The Committee shall conduct open public meetings, duly noticed in accordance with the Ralph M. Brown Act. The Committee may establish rules and procedures governing the conduct of its meetings.

SECTION 7. The City Clerk is directed to place advertisements announcing Committee vacancies in a newspaper of general circulation in the City, two times within a two week period.

SECTION 8. This resolution supersedes Resolution 10246.

SECTION 9. This resolution shall be effective upon adoption.

SECTION 10. This amendment to Resolution 10246 is categorically exempt under CEQA regulation 15320 because it is a change in the organization of a local government agency that does not affect the geographical area in which previously existing powers are exercised.

INTRODUCED AND PASSED:

AYES:

NOES:

ABSENT:

ABSTENTIONS:

ATTEST:

___________________________________ ____________________________________ City Clerk Mayor

APPROVED AS TO FORM: APPROVED:

___________________________________ ____________________________________ Deputy City Attorney City Manager

____________________________________
Director of Public Works
Item 22
Attachment A - Resolution
Amending and Restating
Stormwater Management
Committee to Reduce
Membership from Seven
Members to Five Members

Item 22: Staff Report
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City Council
Staff Report
Report Type: INFORMATION REPORTS
Lead Department: Administrative Services
Meeting Date: August 10, 2026
Report #:2606-6458
TITLE
Monthly Investment Report - May 2026 (Unaudited)

RECOMMENDATION
This is an Information Report. No Council action is required.

ANALYSIS
The City’s Investment Policy (Policy)1 and California Government Code Section 53607 requires that a report of transactions (investments, reinvestment, sold, and exchanged securities) be made available to the Council on a monthly basis. This reporting requirement is separate and distinct from the quarterly investment report submitted under California Government Code Section 53646 that includes portfolio composition, a detailed list of all securities, performance compared to the Policy, overall compliance with the Policy, and the City’s ability to meet expenditure requirements over the next six months.

ATTACHMENTS
Attachment A: Investment Portfolio Transaction Ledger – May 2026 APPROVED BY:

Lauren Lai, Administrative Services Director
1 Investment Policy Fiscal Year 2025-2026 (Adopted February 9, 2026); https://www.paloalto.gov/files/assets/public/v/1/administrative-services/investment-policies/1-39-asd- investment-policy.pdf
Item A
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Buy
Maturity
Summary
CUSIP Security Description Security Type Transaction
Type
Settlement Date Quantity Price Acq/Disp Yield Amount Purchased/Sold Interest Total Amount 89236TQB4 TOYOTA MOTOR CREDIT
CORP 4.55 05/14/2031
CORP Buy 05/14/2026 3,910,000.00 99.797 4.596 -3,902,062.70 0.00 -3,902,062.70 58769MAD2 MBART 261 A3 4.36
10/15/2030
ABS Buy 05/20/2026 3,775,000.00 99.978 4.603 -3,774,177.81 0.00 -3,774,177.81 532457DL9 ELI LILLY AND CO 4.375
05/20/2031
CORP Buy 05/20/2026 1,795,000.00 99.893 4.399 -1,793,079.35 0.00 -1,793,079.35 532457DL9 ELI LILLY AND CO 4.375
05/20/2031
CORP Buy 05/20/2026 705,000.00 99.751 4.431 -703,244.55 0.00 -703,244.55 43814YAD3 HAROT 2026-2 A3 4.3
11/15/2030
ABS Buy 05/13/2026 3,900,000.00 99.997 3.020 -3,899,887.29 0.00 -3,899,887.29 36275AAD1 GMALT 2026-2 A3 4.3
03/20/2029
ABS Buy 05/14/2026 1,715,000.00 99.989 4.396 -1,714,814.44 0.00 -1,714,814.44 --- --- --- Buy 05/16/2026 15,800,000.00 --- 4.157 -15,787,266.14 0.00 -15,787,266.14 CUSIP Security Description Security Type Transaction
Type
Settlement Date Quantity Price Acq/Disp Yield Amount Purchased/Sold Interest Total Amount 977100AC0 WISCONSIN ST GEN FD

ANNUAL APPROPRIATION
REV 5.7 05/01/2026
MUNI Maturity 05/01/2026 -305,000.00 100.000 5.108 305,000.00 0.00 305,000.00 97705MNP6 WISCONSIN ST 2.089
05/01/2026
MUNI Maturity 05/01/2026 -2,500,000.00 100.000 0.761 2,500,000.00 0.00 2,500,000.00 912797QN0 UNITED STATES
TREASURY 05/14/2026
T-BILL Maturity 05/14/2026 -5,000,000.00 100.000 3.693 5,000,000.00 0.00 5,000,000.00 797412DN0 SAN DIEGO CNTY CALIF

WTR AUTH WTR REV

0.971 05/01/2026
MUNI Maturity 05/01/2026 -2,320,000.00 100.000 1.777 2,320,000.00 0.00 2,320,000.00 70227RBM1 PASADENA CALIF
PENSION OBLIG 1.984
05/01/2026
MUNI Maturity 05/01/2026 -120,000.00 100.000 0.915 120,000.00 0.00 120,000.00 59013KPS9 Merrick Bank 1.1 05/19/2026 CD Maturity 05/19/2026 -249,000.00 100.000 1.169 249,000.00 0.00 249,000.00 45950VPY6 INTERNATIONAL FINANCE
CORP 3.5 05/15/2026
SUPRANATIONAL Maturity 05/15/2026 -1,500,000.00 100.000 1.500 1,500,000.00 0.00 1,500,000.00 4581X0EK0 INTER-AMERICAN
DEVELOPMENT BANK 4.5
05/15/2026
SUPRANATIONAL Maturity 05/15/2026 -1,000,000.00 100.000 4.273 1,000,000.00 0.00 1,000,000.00 --- --- --- Maturity 05/09/2026 -12,994,000.00 100.000 2.538 12,994,000.00 0.00 12,994,000.00 CUSIP Security Description Security Type Transaction
Type
Settlement Date Quantity Price Acq/Disp Yield Amount Purchased/Sold Interest Total Amount --- --- --- --- 05/13/2026 2,806,000.00 --- 3.426 -2,793,266.14 0.00 -2,793,266.14 Palo Alto Monthly Transactions
05/01/2026 - 05/31/2026
1 ATTACHMENT A
Item A
Attachment A - Investment
Portfolio Transaction
Ledger - May 2026

Item A: Staff Report
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City Council
Staff Report
Report Type: INFORMATION REPORTS
Lead Department: Administrative Services
Meeting Date: August 10, 2026
Report #:2602-6001
TITLE
Monthly Investment Report - June 2026 (Unaudited)

RECOMMENDATION
This is an Information Report. No Council action is required.

ATTACHMENTS
Attachment A: Investment Portfolio Transaction Ledger – June 2026 APPROVED BY:

Item B: Staff Report
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Buy
Call Redemption
Maturity
CUSIP Security Description Security Type Transaction
Type
Settlement Date Quantity Price Acq/Disp Yield Amount Purchased/Sold Interest Total Amount 912797UF2 UNITED STATES
TREASURY 09/10/2026
T-BILL Buy 06/30/2026 7,500,000.00 99.268 3.739 -7,445,085.00 0.00 -7,445,085.00 912797TN7 UNITED STATES
TREASURY 07/16/2026
T-BILL Buy 06/30/2026 5,000,000.00 99.840 3.654 -4,992,003.56 0.00 -4,992,003.56 44935KAD5 HART 26B A3 4.81
02/18/2031
ABS Buy 06/17/2026 2,955,000.00 99.988 4.863 -2,954,643.33 0.00 -2,954,643.33 06051GJB6 BANK OF AMERICA CORP

2.592 04/29/2031
CORP Buy 06/05/2026 2,500,000.00 92.390 4.953 -2,309,750.00 6,480.00 -2,316,230.00 05594YAD8 BMWLT 2026-1 A3 4.15
05/25/2029
ABS Buy 06/26/2026 1,000,000.00 99.609 4.444 -996,093.75 115.28 -996,209.03 --- --- --- Buy 06/25/2026 18,955,000.00 --- 4.082 -18,697,575.64 6,595.28 -18,704,170.92 CUSIP Security Description Security Type Transaction
Type
Settlement Date Quantity Price Acq/Disp Yield Amount Purchased/Sold Interest Total Amount 45906M4E8 INTERNATIONAL BANK

FOR RECONSTRUCTION
AND DEVELOPM 4.5
06/26/2028
SUPRANATIONAL Call
Redemption
06/26/2026 -3,463,000.00 100.000 4.073 3,463,000.00 0.00 3,463,000.00 45906M4E8 INTERNATIONAL BANK

FOR RECONSTRUCTION
AND DEVELOPM 4.5
06/26/2028
SUPRANATIONAL Call
Redemption
06/26/2026 -3,463,000.00 100.000 4.073 3,463,000.00 0.00 3,463,000.00 CUSIP Security Description Security Type Transaction
Type
Settlement Date Quantity Price Acq/Disp Yield Amount Purchased/Sold Interest Total Amount 80181PCV7 SANTA CRUZ CNTY CALIF

CAP FING AUTH LEASE
REV 3.0 06/01/2026
MUNI Maturity 06/01/2026 -465,000.00 100.000 3.150 465,000.00 0.00 465,000.00 798153NF5 SAN JOSE CALIF FING
AUTH LEASE REV 1.311
06/01/2026
MUNI Maturity 06/01/2026 -345,000.00 100.000 1.480 345,000.00 0.00 345,000.00 797646T55 SAN FRANCISCO CALIF
CITY & CNTY 2.39
06/15/2026
MUNI Maturity 06/15/2026 -245,000.00 100.000 2.410 245,000.00 0.00 245,000.00 797646ND4 SAN FRANCISCO CALIF
CITY & CNTY 5.6
06/15/2026
MUNI Maturity 06/15/2026 -1,420,000.00 100.000 3.349 1,420,000.00 0.00 1,420,000.00 69511AAT1 PACIFICA CALIF PENSION
OBLIG 2.663 06/01/2026
MUNI Maturity 06/01/2026 -580,000.00 100.000 2.648 580,000.00 0.00 580,000.00 45818WDH6 INTER-AMERICAN
DEVELOPMENT BANK 0.8
06/17/2026
SOVEREIGN GOV Maturity 06/17/2026 -2,000,000.00 100.000 0.927 2,000,000.00 0.00 2,000,000.00 446201AE5 HUNTINGTON BEACH

CALIF PENSION OBLIG

1.344 06/15/2026
MUNI Maturity 06/15/2026 -2,175,000.00 100.000 1.292 2,175,000.00 0.00 2,175,000.00 378612AJ4 GLENDORA CALIF
PENSION OBLIG 2.108
06/01/2026
MUNI Maturity 06/01/2026 -1,365,000.00 100.000 1.089 1,365,000.00 0.00 1,365,000.00 3130AWGR5 FEDERAL HOME LOAN
BANKS 4.375 06/12/2026
AGCY BOND Maturity 06/12/2026 -1,000,000.00 100.000 3.629 1,000,000.00 0.00 1,000,000.00 17131RAU0 CHULA VISTA CALIF
PENSION OBLIG 0.84
06/01/2026
MUNI Maturity 06/01/2026 -1,000,000.00 100.000 1.701 1,000,000.00 0.00 1,000,000.00 Palo Alto Monthly Transactions
06/01/2026 - 06/30/2026
1 ATTACHMENT A
Item B
Attachment A - Investment
Portfolio Transaction
Ledger - June 2026

Item B: Staff Report
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Principal Paydown
Summary
CUSIP Security Description Security Type Transaction
Type
Settlement Date Quantity Price Acq/Disp Yield Amount Purchased/Sold Interest Total Amount 088006KA8 BEVERLY HILLS CALIF

PUB FING AUTH LEASE
REV 1.147 06/01/2026
MUNI Maturity 06/01/2026 -350,000.00 100.000 1.200 350,000.00 0.00 350,000.00 010831DT9 ALAMEDA CNTY CALIF JT

PWRS AUTH LEASE REV

3.395 06/01/2026
MUNI Maturity 06/01/2026 -110,000.00 100.000 0.932 110,000.00 0.00 110,000.00 --- --- --- Maturity 06/10/2026 -11,055,000.00 100.000 1.887 11,055,000.00 0.00 11,055,000.00 CUSIP Security Description Security Type Transaction
Type
Settlement Date Quantity Price Acq/Disp Yield Amount Purchased/Sold Interest Total Amount 68607LXQ5 OREGON ST 5.892
06/01/2027
MUNI Principal
Paydown
06/02/2026 0.00 --- 3.115 1,163,162.12 0.00 1,163,162.12 68607LXQ5 OREGON ST 5.892
06/01/2027
MUNI Principal
Paydown
06/02/2026 0.00 --- 3.115 1,163,162.12 0.00 1,163,162.12 CUSIP Security Description Security Type Transaction
Type
Settlement Date Quantity Price Acq/Disp Yield Amount Purchased/Sold Interest Total Amount --- --- --- --- 06/19/2026 4,437,000.00 --- 3.342 -3,016,413.52 6,595.28 -3,023,008.80 Palo Alto Monthly Transactions )
06/01/2026 - 06/30/2026
2 ATTACHMENT A
Item B
Attachment A - Investment
Portfolio Transaction
Ledger - June 2026

Item B: Staff Report
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City Council
Staff Report
From: City Manager
Report Type: INFORMATION REPORTS
Lead Department: Administrative Services
Meeting Date: August 10, 2026
Report #:2512-5701
TITLE
Sales Tax Digest Summary for Q1 2026 (January - March). CEQA Status - Not a project.

ANALYSIS
This report transmits information regarding the City of Palo Alto’s sales tax receipts for the first quarter (January - March) of 2026. Highlights from the report are included below. Detailed discussion and data can be found in the Sales Tax Digest (Attachment A).

Regional and statewide sales tax - Benchmark Year (Attachment A, pg. 2):
Palo Alto: increased by 0.2%
San Francisco Bay Area: increased by 0.5%
California statewide: decreased by 2.7%
City’s most significant activity – Benchmark Year (Attachment A, pg. 1):
Business Services: increased by $1.8 million, or 422.0%; represents 8.0% of sales tax revenue (excluding county pool).
Miscellaneous Retail: increased by $0.8 million, or 29.7%; represents 11.7% of sales tax revenue (excluding county pool).

Overall, the benchmark year results reflect mixed performance across industry segments rather than broad-based growth. Strong performance in the Business Services and General Retail segments helped offset declines in the Leasing and New Auto Sales segments, resulting in relatively flat overall local sales tax performance. The Business Services segment includes a diverse range of industries, and year-over-year results may fluctuate as the mix of taxable business activity changes.

County Pool – 2026Q1 compared to 2025Q1 (Attachment A, pg. 4) Total County Pool: Increased by 8.8% or $2.4 million, from $27.3 million to $29.7 million Total Jurisdiction Share:
oPercent of County Pool increased by 60 basis points, from 6.1% to 6.7% Item C
Item C Staff Report

Item C: Staff Report
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oTotal share increased $0.3 million, from $1.7 million to $2.0 million Over the most recent four quarters, the City received approximately $8.1 million from the County Pool, representing about 22% of the City’s total sales tax revenue of $36.6 million during that period. Preliminary review indicates that recent growth may be attributable, in part, to the reallocation of certain large online retailer transactions into the county pool and other allocation adjustments. County Pool details are limited, making it difficult to determine the extent to which these factors contributed to the increase or whether the higher allocation levels represent a one-time occurrence or an ongoing trend. Staff will continue to monitor future allocations and trends.

ENVIRONMENTAL REVIEW
This item is not a project as defined by the California Environmental Quality Act (CEQA) because the sales tax digest summary report is for informational purposes only with no action required by the Council.

ATTACHMENTS
Attachment A: 2026 Q1 Sales Tax Digest Summary
APPROVED BY:

Lauren Lai, Administrative Services Director
Item C
Item C Staff Report

Item C: Staff Report
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City of Palo Alto
Sales Tax Digest Summary
Collections through May 2026
Sales January through March 2026 (2026Q1)

neumo.com (800) 800-8181 Page 1 California Overview

For the year ending in the first quarter of 2026, cash receipts increased 2.7% statewide and S.F. Bay Area increased 5.0% in the same period. However, when adjusted for non-period-related payments, the overall economic sales tax activity for the year ending in the first quarter of 2026 decreased by 2.7% statewide and increased by 0.5% in S.F. Bay Area.

City of Palo Alto
For the year ending in the first quarter of 2026, sales tax cash receipts for the city increased by 7.1% from the prior year. However, when adjusted for non-period related payments, the overall economic sales tax activity in Palo Alto for the year ending in the first quarter of 2026 increased by 0.2%. The primary drivers of Palo Alto's sales tax increase were Business Services and Miscellaneous Retail. On an economic basis, Business Services sales tax revenue increased by 422.0%, representing 8.0% of the city's total sales tax for the year ending in the first quarter of 2026. Miscellaneous Retail increased by 29.7% over the same period, contributing 11.7% to the total sales tax revenue.

Same quarter sales tax cash receipts increased by 1.9% in California from Q1 2025 to Q1 2026. Palo Alto citywide sales tax cash receipts increased by 11.0% over the Q1 2025 to Q1 2026 period. The key contributor to the Palo Alto increase on a cash basis during this period was the Business Services segment.

According to the California New Car Dealers Association, registrations are projected to decline to around

1.74 million units in 2026, with first quarter registrations decreasing by 8.9% compared to Q1 2025.

Item C
Attachment A - 2026 Q1
Sales Tax Digest Summary

Item C: Staff Report
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Regional Overview
The chart on page two shows adjusted economic benchmark year amounts, which shows the year ended first quarter of 2026 compared to the year ended first quarter of 2025 (benchmark years are rolling annual comparisons through the current quarter). The divergence in growth rates between California and Palo Alto is attributed to the stronger overall performance of sales tax generating businesses statewide compared to those operating in Palo Alto.

Regional Overview Chart (Economic)
BENCHMARK YEAR 2026Q1 COMPARED TO BENCHMARK YEAR 2025Q1

% of Total / % Change Palo Alto California
Statewide S.F. Bay Area Sacramento
Valley Central Valley South Coast Inland Empire North Coast Central Coast General Retail 35.2 / 12.8 30.1 / -0.2 27.0 / 2.7 31.9 / 1.7 38.4 / -19.2 28.4 / 3.9 36.9 / 1.8 28.0 / 1.4 25.8 / -61.7 Food Products 21.3 / 6.8 22.4 / -0.5 24.2 / 3.5 15.0 / -18.9 15.1 / -13.4 24.2 / 0.9 18.8 / 1.1 19.9 / 2.0 30.1 / -51.6 Transportation 14.8 / -7.6 21.2 / -7.4 21.6 / -6.2 24.4 / -12.6 20.6 / -21.9 15.7 / -0.2 21.8 / -3.8 27.1 / -5.1 24.1 / -62.1 Business to Business 23.2 / -17.0 15.8 / -2.2 17.6 / -4.7 13.7 / -9.8 16.1 / -10.0 21.8 / -5.0 10.5 / 0.3 10.5 / 3.6 8.1 / -54.0 Misc/Other 4.7 / 16.6 10.5 / -4.5 11.3 / 1.7 12.2 / 0.0 9.9 / -21.1 9.9 / -1.2 12.0 / -6.6 15.0 / -2.9 11.8 / -37.2 Total 100.0 / 0.2 100.0 / -2.7 100.0 / 0.5 100.0 / -6.6 100.0 / -18.6 100.0/ 0.0 100.0 / -0.8 100.0/ -1.0 100.0 / -56.5 Palo Alto California
Statewide S.F. Bay Area Sacramento
Valley Central Valley South Coast Inland Empire North Coast Central Coast Largest Segment Leasing Restaurants Restaurants Miscellaneous Retail
Miscellaneous
Retail Restaurants Miscellaneous
Retail Restaurants Restaurants
% of Total / % Change 19.3 / -10.6 16.5 / 0.3 18.4 / 5.0 14.5 / 10.8 18.7 / -14.5 18.2 / 1.6 19.5 / 2.1 12.9 / 2.3 17.9 / -37.9 2nd Largest Segment Restaurants Miscellaneous
Retail
Miscellaneous
Retail Restaurants Department
Stores
Auto Sales -
New Restaurants Department
Stores
Auto Sales -
New
% of Total / % Change 17.4 / 6.7 12.8 / 5.9 11.5 / 11.1 12.2 / -2.5 11.3 / -14.6 11.4 / -2.6 12.5 / 2.2 11.3 / -0.4 14.7 / -47.6 3rd Largest Segment Auto Sales -
New
Auto Sales -
New
Miscellaneous
Retail
Auto Sales -
New Restaurants Miscellaneous
Retail
Auto Sales -
New
Auto Sales -
New Food Markets
% of Total / % Change 11.9 / -28.1 10.5 / -4.2 8.5 / -3.0 11.6 / -1.0 9.9 / -21.6 10.9 / 12.9 10.9 / 1.2 10.7 / -2.8 8.8 / -26.8 ECONOMIC CATEGORY ANALYSIS FOR YEAR ENDED 1st Quarter 2026 ECONOMIC SEGMENT ANALYSIS FOR YEAR ENDED 1st Quarter 2026 Item C
Attachment A - 2026 Q1
Sales Tax Digest Summary

Item C: Staff Report
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Leasing

3.5%
Restaurants

19.4%
Auto Sales - New

11.4%
Office Equipment

8.0%
Apparel Stores

8.7%
All Other

49.0%
Net Pools & Adjustments

28.3%
Gross Historical Sales Tax Cash Receipts by Benchmark Year and Quarter (Before Adjustments)

Net Cash Receipts for Benchmark Year First Quarter 2026: $36,577,575 *Benchmark year (BMY) is the sum of the current and 3 previous quarters (2026Q1 BMY is sum of 2026 Q1, 2025 Q4, 2025 Q3, 2025 Q2)

$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
Quarterly Benchmark Year
Item C
Attachment A - 2026 Q1
Sales Tax Digest Summary

Item C: Staff Report
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County Pool Results
The California sales tax system is known as a "sales and use tax" system. County Pool revenues primarily reflect the use tax generated from transactions that do not involve a physical point of sale within California. Businesses report their use tax quarterly, based on activity conducted throughout the county.

The County Pool is distributed each quarter based on a proportional formula. A jurisdiction's quarterly percentage is determined by dividing its total gross sales tax receipts for the quarter by the total gross sales tax receipts of all jurisdictions within the county. Consequently, if Palo Alto's gross sales tax receipts increase relative to the rest of the county during a quarter, the city's share of the total County Pool will also increase. This quarterly percentage is multiplied by the total countywide pool to determine the jurisdiction's quarterly County pool revenue.

In the first quarter of 2026, cash receipts for the overall County Pool increased by 8.8% from the same quarter in the prior year. The City’s share of the Countywide Pool increased to 6.7%. The City’s revenues from the County Pool increased from $1,673,551 in 2025Q1 to $1,995,583 in 2026Q1.

TOP 25 SALES/USE TAX CONTRIBUTORS

The following list identifies Palo Alto’s Top 25 Sales/Use Tax contributors. The list is in alphabetical order and represents the year ended in the first quarter of 2026. The Top 25 Sales/Use Tax contributors generate

51.4% of Palo Alto’s total sales and use tax revenue.

Anderson Honda Lucile Packard Children's Hospital Shreve & Co.

Apple Stores M acy's Department Store Stanford Health Care Audi Palo Alto Magnussen Toyota Tesla
Cartier Mercedes Benz of Palo Alto Tesla Lease Trust
Govberg Neiman Marcus Tiffany & Company
Hermes Nordstrom Department Store Varian Medical Systems HP Enterprise Services Restoration Hardware Volvo Cars Palo Alto JP Morgan Chase Bank Shell Service Stations Wilkes Bashford Louis Vuitton
2023Q2 2023Q3 2023Q4 2024Q1 2024Q2 2024Q3 2024Q4 2025Q1 2025Q2 2025Q3 2025Q4 2026Q1 Quarter
Over
Quarter
Total County Pool 27,690,772 22,345,960 24,427,230 25,411,165 25,387,888 23,265,567 31,312,972 27,268,380 27,503,817 28,287,141 38,540,707 29,657,590 8.8% Jurisdiction Share 1,755,562 1,489,193 1,638,965 1,523,986 1,611,681 1,377,891 1,834,044 1,673,551 1,685,234 1,595,260 2,571,498 1,995,583 19.2% Jurisdiction % of Total 6.3% 6.7% 6.7% 6.0% 6.3% 5.9% 5.9% 6.1% 6.1% 5.6% 6.7% 6.7% Item C
Attachment A - 2026 Q1
Sales Tax Digest Summary

Item C: Staff Report
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City of Palo Alto

neumo.com (800) 800-8181 Page 5 Sales Tax from Largest Non-Confidential Sales Tax Segments (Economic)

$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
Benchmark Year 2026Q1 Benchmark Year 2025Q1
Item C
Attachment A - 2026 Q1
Sales Tax Digest Summary

Item C: Staff Report
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Historical Analysis by Calendar Quarter

The chart above shows the categories and segments in quarterly economic -based amounts. The total amount is the net cash receipts, and it was obtained by adding up the categories/segments with the “Net Pools & Adjustments” amount.

Economic Category % 2026Q1 2025Q4 2025Q3 2025Q2 2025Q1 2024Q4 2024Q3 2024Q2 2024Q1 2023Q4 2023Q3 Business To Business 18.7% 1,657,595 1,887,386 1,446,306 1,829,261 2,584,832 2,352,638 2,228,773 2,366,493 2,149,237 2,343,293 2,943,907 M isc ellaneous/Other 14.7% 1,301,134 1,559,981 1,731,803 1,504,679 1,542,138 1,284,493 1,682,849 1,595,196 1,951,428 1,870,170 1,546,096 Gener al Retail 26.1% 2,312,415 2,867,257 2,128,953 2,096,092 1,813,504 2,466,315 1,828,014 2,044,006 1,739,261 2,315,882 1,834,297 Food Products 17.1% 1,513,060 1,553,055 1,458,554 1,514,585 1,396,065 1,448,644 1,349,524 1,394,270 1,288,207 1,348,051 1,277,173 Subtotal Ec onomic (Loc al Business) 76.7% 6,784,203 7,867,679 6,765,615 6,944,617 7,336,539 7,552,090 7,089,160 7,399,964 7,128,134 7,877,395 7,601,473 Net Pools & Adjus tments 23.3% 2,063,978 2,992,086 1,302,731 1,856,667 633,409 1,737,280 1,033,269 1,359,165 1,143,798 1,867,172 1,986,175 Total C ash Rec eipts 100.0% 8,848,181 10,859,764 8,068,346 8,801,284 7,969,948 9,289,370 8,122,429 8,759,129 8,271,932 9,744,567 9,587,647 Economi c Segment % 2026Q1 2025Q4 2025Q3 2025Q2 2025Q1 2024Q4 2024Q3 2024Q2 2024Q1 2023Q4 2023Q3 M isc ellaneous/Other 20.4% 1,808,989 3,256,544 3,034,581 3,294,198 4,175,255 3,939,826 4,070,462 4,102,841 4,114,784 4,409,850 4,635,983 Res taurants 16.0% 1,414,531 1,412,846 1,328,254 1,376,526 1,268,403 1,307,103 1,222,917 1,259,885 1,162,863 1,214,598 1,154,189 M isc ellaneous Retail 12.3% 1,086,027 958,245 652,655 602,137 529,255 717,726 512,154 582,600 489,040 689,939 480,649 Appa rel Stores 9.1% 807,094 725,551 517,728 534,216 455,466 633,554 480,138 531,926 440,402 586,863 478,973 Department Stores 6.6% 581,270 581,270 472,934 503,087 406,470 570,391 432,925 501,499 411,345 549,893 435,388 Ser v ic e Stations 2.0% 172,958 156,885 183,776 183,941 187,356 187,487 201,591 226,411 198,584 214,900 229,911 Food Markets 1.4% 122,754 118,688 109,640 118,511 107,424 117,774 111,242 114,071 107,031 112,372 103,251 Business Serv ices 8.9% 790,580 657,651 466,047 332,000 206,909 78,229 57,730 80,732 204,085 98,980 83,130 Subtotal Ec onomic (Loc al Business) 76.7% 6,784,203 7,867,679 6,765,615 6,944,617 7,336,539 7,552,090 7,089,160 7,399,964 7,128,134 7,877,395 7,601,473 Net Pools & Adjus tments 23.3% 2,063,978 2,992,086 1,302,731 1,856,667 633,409 1,737,280 1,033,269 1,359,165 1,143,798 1,867,172 1,986,175 Total C ash Rec eipts 100.0% 8,848,181 10,859,764 8,068,346 8,801,284 7,969,948 9,289,370 8,122,429 8,759,129 8,271,932 9,744,567 9,587,647 Item C
Attachment A - 2026 Q1 Sales Tax
Digest Summary

Item C: Staff Report
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Historical Analysis by Calendar BMY from 2017Q1 to 2026Q1

The chart above shows the categories and segments in benchmark year economic basis amounts. The total amount is the net cash receipts, and it was obtained by adding up the categories/segments with the “Net Pools & Adjustments” amount. Benchmark year (BMY) is the sum of the current and 3 previous quarters (2026Q1 BMY is sum of 2026 Q1, 2025 Q4, 2025 Q3, 2025 Q2).

Economic Category % 2026Q1 2025Q1 2024Q1 2023Q1 2022Q 1 2021Q1 2020Q1 2019Q1 2018Q1 2017Q1 Business To Business 18.1% 6,620,097 7,974,492 10,028,952 9,522,565 7,585,836 7,569,553 8,136,987 6,870,341 5,718,987 4,986,753 M isc ellaneous/Other 15.8% 5,765,393 5,868,298 7,241,369 6,021,645 6,585,297 5,930,718 6,873,241 8,280,213 6,550,120 6,321,980 Gener al Retail 27.5% 10,041,136 8,899,929 7,960,731 7,780,875 7,457,250 4,379,589 7,424,879 8,201,828 8,138,165 8,656,005 Food Products 16.6% 6,072,518 5,687,346 5,312,541 4,971,875 4,076,087 2,409,718 4,778,562 4,869,761 4,709,078 4,644,442 Subtotal Ec onomic (Loc al Business) 77.9% 28,499,144 28,430,065 30,543,592 28,296,960 25,704,470 20,289,578 27,213,669 28,222,144 25,116,350 24,609,180 Net Pools & Adjus tments 22.1% 8,078,431 5,710,811 6,498,742 5,710,235 5,648,197 6,191,100 5,598,849 6,935,015 3,727,133 4,721,113 Total 100.0% 36,577,575 34,140,876 37,042,335 34,007,195 31,352,667 26,480,678 32,812,518 35,157,159 28,843,483 29,330,293

Economi c Segment % 2026Q1 2025Q1 2024Q1 2023Q1 2022Q1 2021Q1 2020Q1 2019Q1 2018Q1 2017Q1 M isc ellaneous/Other 32.2% 11,782,259 14,932,885 18,016,302 16,570,065 14,919,631 14,209,804 16,004,647 16,156,028 13,941,770 12,614,827 Res taurants 15.1% 5,531,314 5,149,954 4,794,131 4,440,964 3,590,971 1,995,268 4,219,380 4,285,736 4,146,912 4,105,029 M isc ellaneous Retail 9.1% 3,326,353 2,564,827 2,192,695 1,989,096 2,325,798 1,451,949 1,748,872 1,847,130 1,849,861 2,697,559 Appa rel Stores 6.7% 2,467,174 2,150,907 2,012,709 1,830,782 1,511,507 807,464 1,700,695 1,910,114 1,822,843 1,752,315 Department Stores 5.3% 1,941,045 1,931,216 1,889,166 1,771,222 1,667,397 769,134 1,684,162 1,932,093 2,054,945 2,099,831 Ser v ic e Stations 2.0% 721,565 806,702 863,509 899,601 724,684 412,493 691,181 693,763 136,028 132,110 Business Serv ices 6.2% 2,270,903 435,044 332,072 370,375 581,689 319,054 717,710 940,162 682,192 738,701 Food Markets 1.3% 458,531 458,531 443,008 424,856 382,793 324,413 447,022 457,119 481,799 468,808 Subtotal Ec onomic (Loc al Business) 77.9% 28,499,144 28,430,065 30,543,592 28,296,960 25,704,470 20,289,578 27,213,669 28,222,144 25,116,350 24,609,180 Net Pools & Adjus tments 22.1% 8,078,431 5,710,811 6,498,742 5,710,235 5,648,197 6,191,100 5,598,849 6,935,015 3,727,133 4,721,113 Total 100.0% 36,577,575 34,140,876 37,042,335 34,007,195 31,352,667 26,480,678 32,812,518 35,157,159 28,843,483 29,330,293 Item C
Attachment A - 2026 Q1 Sales Tax
Digest Summary

Item C: Staff Report
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neumo.com (800) 800-8181 Page 8 Quarterly Analysis by Sales Tax Category: Change from 2025Q1 to 2026Q1 (Economic)

Unlike the chart on page one which showed a ‘benchmark year’ through the first quarter of 2026, the chart above shows a comparison of one quarter only – first quarter of 2025 to first quarter of 2026. This chart is for local ‘brick and mortar’ businesses, and it excludes county pools and adjustments.

General Retail
Food Products
Transportation
Business to Business
Misc/Other
2026/1 Total
2025/1 Total
% Chg
Largest Gain
Second Largest
Gain
Largest Decline
Second Largest
Decline
Campbell 6.3% 3. 7% 2.5% 0.2% -4.7% 2,380,777 2,340,349 1.7% Restaurants Florist/Nursery Health & Government Electronic Equipment Cupertino 5.2% 2.3% -11.5% -7.6% 4.0% 5,340,474 (5,290,228) -200.9% Office Equipment Electronic Equipment Department Stores Food Markets Gilroy -1.1% 4.6% -8.0% 0.3% 0.9% 3,857,666 3,693,647 4.4% Auto Sales - New Department Stores Heavy Industry Auto Sales - Used Los Altos 32.4% 3.8% -3.2% -35.5% 16.5% 565,604 547,040 3.4% Recreation Products Miscellaneous Retail Electronic Equipment Drug Stores Los Gatos 4.1% -5.0% -7.5% -29.3% 40.3% 1,287,080 1,395,748 -7.8% Miscellaneous Retail Service Stations Furniture/Appliance Auto Sales - New Milpitas 27.1% 8.1% -6.8% 22.3% 32.6% 6,330,197 5,874,739 7.8% Auto Sales - New Bldg.Matls-Whsle Electronic Equipment Leasing Morgan Hill -1.0% 3.9% -6.2% 3.4% 13.9% 2,353,877 2,268,025 3.8% Bldg.Matls-Whsle Restaurants Light Industry Business Services Mountain View 2.1% 4.2% 13.6% -4.2% 16.0% 4,167,277 4,054,455 2.8% Auto Sales - New Auto Parts/Repair Restaurants Auto Sales - Used Palo Alto 8.8% 4.8% 19.3% 11.2% -6.1% 6,784,665 6,179,799 9.8% Business Services Miscellaneous Retail Furniture/Appliance Auto Sales - New San Jose 7.3% 4.7% -3.9% -1.4% 5.6% 52,928,245 50,825,140 4.1% Office Equipment Light Industry Business Services Auto Sales - New Santa Clara 6.6% -3.4% 2.9% 42.0% 22.8% 16,229,019 15,824,474 2.6% I.T. Infrastructure Restaurants Light Industry Office Equipment County of Santa Clara 38.9% 0.9% -28.3% 6.4% 7.9% 1,026,795 966,601 6.2% Bldg.Matls-Whsle Light Industry Heavy Industry Health & Government Saratoga 18.9% 2.8% -3.7% -17.9% 4.9% 246,014 233,923 5.2% Restaurants Miscellaneous Retail Food Markets Food Processing Eqp Sunnyvale -11.0% 0.9% -25.0% 28.4% -5.8% 8,219,412 8,490,483 -3.2% Restaurants Heavy Industry Auto Sales - New Business Services Item C
Attachment A - 2026 Q1 Sales Tax
Digest Summary

Item C: Staff Report
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neumo.com (800) 800-8181 Page 9 City of Palo Alto Geo Areas & Citywide Chart Data: Change from 2025Q1 to 2026Q1 (Economic)

California Avenue % CHANGE QoQ 2026Q1 QE 2025Q1 QE 26Q1 % OF TOTAL 25Q1 % OF TOTAL FOOD PRODUCTS 9.0% 115,339 105,795 68.6% 67.3% GENERAL RETAIL 13.5% 19,157 16,875 11.4% 10.7% ALL OTHER -3.0% 33,598 34,637 20.0% 22.0%
TOTAL 6.9% 168,094 157,307 100.0% 100.0%
El Camino Real and Midtown % CHANGE QoQ 2026Q1 QE 2025Q1 QE 26Q1 % OF TOTAL 25Q1 % OF TOTAL ALL OTHER 1.2% 177,440 175,330 47.7% 47.9%
FOOD PRODUCTS 2.9% 160,466 155,970 43.1% 42.6%
GENERAL RETAIL -2.0% 34,166 34,869 9.2% 9.5%
TOTAL 1.6% 372,072 366,168 100.0% 100.0%
Greater Downtown % CHANGE QoQ 2026Q1 QE 2025Q1 QE 26Q1 % OF TOTAL 25Q1 % OF TOTAL FOOD PRODUCTS 9.0% 574,826 527,387 66.4% 56.7%
GENERAL RETAIL -33.6% 228,940 344,639 26.4% 37.0%
BUSINESS TO BUSINESS -14.0% 32,583 37,883 3.8% 4.1%
TRANSPORTATION 55.1% 13,079 8,432 1.5% 0.9%
CONSTRUCTION 63.9% 9,743 5,943 1.1% 0.6%
MISCELLANEOUS 7.6% 7,027 6,529 0.8% 0.7%
TOTAL -6.9% 866,199 930,813 100.0% 100.0%
Stanford Shopping Center % CHANGE QoQ 2026Q1 QE 2025Q1 QE 26Q1 % OF TOTAL 25Q1 % OF TOTAL GENERAL RETAIL -1.9% 1,425,538 1,453,095 87.9% 88.5%
FOOD PRODUCTS 3.6% 195,734 188,894 12.1% 11.5%
ALL OTHER -1.6% 421 428 0.0% 0.0%
TOTAL -1.3% 1,621,693 1,642,416 100.0% 100.0%
Item C
Attachment A - 2026 Q1 Sales Tax
Digest Summary

Item C: Staff Report
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neumo.com (800) 800-8181 Page 10 City of Palo Alto Geo Areas & Citywide Chart Data: Change from 2025Q1 to 2026Q1 (Economic) Cont.

Town And Country Shopping Center % CHANGE QoQ 2026Q1 QE 2025Q1 QE 26Q1 % OF TOTAL 25Q1 % OF TOTAL FOOD PRODUCTS 16.2% 123,600 106,406 60.6% 61.5%
GENERAL RETAIL 10.4% 73,507 66,609 36.0% 38.5%
ALL OTHER 28749.4% 6,863 24 3.4% 0.0%
TOTAL 17.9% 203,970 173,039 100.0% 100.0%
All Other Geos Combined % CHANGE QoQ 2026Q1 QE 2025Q1 QE 26Q1 % OF TOTAL 25Q1 % OF TOTAL GENERAL RETAIL -6.9% 1,841,072 1,977,756 37.1% 30.0%
FOOD PRODUCTS 4.9% 1,268,421 1,208,930 25.5% 18.3%
TRANSPORTATION -14.8% 928,829 1,090,059 18.7% 16.5%
BUSINESS TO BUSINESS -64.4% 793,111 859,690 16.0% 33.7% MISCELLANEOUS 1.4% 73,333 72,356 1.5% 1.1%
CONSTRUCTION 142.2% 61,466 25,383 1.2% 0.4%
TOTAL -24.8% 4,966,233 5,234,173 100.0% 100.0%
All Other Geo Area Totals with Balance of Jurisdiction
Comparison 26Q1 & 25Q1 % CHANGE QoQ 2026Q1 QE 2025Q1 QE 26Q1 % OF TOTAL 25Q1 % OF TOTAL Balance of Jurisdiction -11.7% 1,734,206 1,964,429 34.9% 37.5% Stanford Shopping Center -1.3% 1,621,693 1,642,416 32.7% 31.4% Greater Downtown -6.9% 866,199 930,813 17.4% 17.8%
El Camino Real and Midtown 1.6% 372,072 366,168 7.5% 7.0% Town And Country Shopping Center 17.9% 203,970 173,039 4.1% 3.3% California Avenue 6.9% 168,094 157,307 3.4% 3.0%
TOTAL -5.1% 4,966,233 5,234,173 100.0% 100.0%
Palo Alto citywide QE 26Q1 & 25Q1 % CHANGE QoQ 2026Q1 QE 2025Q1 QE 26Q1 % OF TOTAL 25Q1 % OF TOTAL GENERAL RETAIL 7.8% 2,312,415 2,145,621 34.1% 34.7%
BUSINESS TO BUSINESS 45.3% 1,657,595 1,140,997 24.4% 18.5% FOOD PRODUCTS 7.2% 1,513,060 1,410,933 22.3% 22.8%
TRANSPORTATION -14.4% 936,669 1,093,645 13.8% 17.7%
MISCELLANEOUS -16.8% 295,492 355,330 4.4% 5.7%
CONSTRUCTION 108.7% 69,435 33,274 1.0% 0.5%
TOTAL 9.8% 6,784,665 6,179,799 100.0% 100.0%
Item C
Attachment A - 2026 Q1 Sales Tax
Digest Summary

Item C: Staff Report
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City of Palo Alto

neumo.com (800) 800-8181 Page 11 City of Palo Alto Geo Area Pie Charts

FOOD PRODUCTS,

9.0% CHANGE, $ 115,339 ,

68.6% TOTAL

GENERAL RETAIL,

13.5% CHANGE,
$ 19,157 ,

11.4% TOTAL

ALL OTHER,
-3.0% CHANGE, $33,598 ,

20.0% TOTAL
California Avenue 2026Q1 SALES TAX AMOUNTS
FOOD PRODUCTS, $ 105,795 ,

67.3% TOTAL

GENERAL RETAIL,
$ 16,875 ,

10.7% TOTAL
ALL OTHER, $34,637 ,

22.0% TOTAL
California Avenue 2025Q1 SALES TAX AMOUNTS

FOOD PRODUCTS,

2.9% CHANGE, $160,466 ,

43.1% TOTAL

GENERAL RETAIL,
-2.0% CHANGE, $34,166 ,

9.2% TOTAL

ALL OTHER,

1.2% CHANGE,
$177,440 , 47.7% TOTAL
El Camino Real and Midtown 2026Q1 SALES TAX AMOUNTS
FOOD PRODUCTS, $155,970 ,

42.6% TOTAL

GENERAL RETAIL,
$34,869 , 9.5% TOTAL
ALL OTHER, $175,330 ,

47.9% TOTAL
El Camino Real and Midtown 2025Q1 SALES TAX AMOUNTS
Item C
Attachment A - 2026 Q1 Sales Tax
Digest Summary

Item C: Staff Report
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FOOD PRODUCTS,

9.0% CHANGE, $574,826

66.4% TOTAL

GENERAL RETAIL,
-33.6% CHANGE,
$228,940 ,

26.4% TOTAL

BUSINESS TO BUSINESS,
-14.0% CHANGE, $32,583 ,

3.8% TOTAL

TRANSPORTATION

55.1% CHANGE, $13,079 ,

1.5% TOTAL

CONSTRUCTION,

63.9% CHANGE, $9,743 ,

1.1% TOTAL

MISCELLANEOUS,

7.6% CHANGE, $7,027 ,

0.8% TOTAL
Greater Downtown 2026Q1 SALES TAX AMOUNTS

FOOD PRODUCTS,
$527,387 , 56.7% TOTAL

GENERAL RETAIL,
$344,639 , 37.0% TOTAL

BUSINESS TO BUSINESS,
$37,883 , 4.1% TOTAL

TRANSPORTATION
$8,432 , 0.9% TOTAL
CONSTRUCTION, $5,943 ,

0.6% TOTAL MISCELLANEOUS, $6,529 ,

0.7% TOTAL
Greater Downtown 2025Q1 SALES TAX AMOUNTS

GENERAL RETAIL
$1,453,095 ,

88.5% TOTAL
FOOD PRODUCTS, $188,894 ,

11.5% TOTAL
ALL OTHER, $428 ,

0.0% TOTAL
Stanford Shopping Center 2025Q1 SALES TAX AMOUNTS

GENERAL RETAIL,
-1.9% CHANGE, $1,425,538 ,

87.9% TOTALFOOD PRODUCTS,

3.6% CHANGE
$195,734 ,

12.1% TOTAL

ALL OTHER,
-1.6% CHANGE, $421 ,

0.0% TOTAL
Stanford Shopping Center 2026Q1 SALES TAX AMOUNTS
City of Palo Alto Geo Area Pie Charts

Item C
Attachment A - 2026 Q1 Sales Tax
Digest Summary

Item C: Staff Report
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neumo.com (800) 800-8181 Page 13

FOOD PRODUCTS,

16.2% CHANGE, $123,600 ,

60.6% TOTAL

GENERAL RETAIL,

10.4% CHANGE, $73,507 ,

36.0% TOTAL

ALL OTHER,

28.7% CHANGE, $6,863 , 3.4% TOTAL
T own And Country Shopping Center 2026Q1 SALES TAX AMOUNTS

FOOD PRODUCTS,
$106,406 ,

61.5% TOTAL

GENERAL RETAIL,
$66,609 ,

38.5% TOTAL
ALL OTHER, $24 ,

0.0% TOTAL
T own And Country Shopping Center2025Q1 SALES TAX AMOUNTS

GENERAL RETAIL,
-6.9% CHANGE
$1,841,072 ,

37.1% TOTAL

FOOD PRODUCTS,

4.1% CHANGE, $1,268,421

25.5% TOTAL

TRANSPORTATION,
-14.8% CHANGE,
$928,829 18.7%TOTAL

BUSINESS TO BUSINESS,
-64.4% CHANGE, $793,111 ,

16.0% TOTAL

MISCELLANEOUS,

1.4% CHANGE, $73,333 ,

1.5% TOTAL

CONSTRUCTION,
142.2% CHANGE, $61,466 ,

1.2% TOTAL
All Other Geos Combined 2026Q1 SALES TAX AMOUNTS

GENERAL RETAIL,
$1,977,756 ,

30.0% TOTAL
FOOD PRODUCTS, $1,208,930 ,

18.3% TOTALTRANSPORTATION,
$1,090,059 ,

16.5% TOTAL

BUSINESS TO BUSINESS,
$2,225,704, 33.7% TOTAL

MISCELLANEOUS,
$72,356 , 1.1% TOTAL

CONSTRUCTION,
$25,383 , 0.4% TOTAL
All Other Geos Combined 2025Q1 SALES TAX AMOUNTS
City of Palo Alto Geo Area Pie Charts

Item C
Attachment A - 2026 Q1 Sales Tax
Digest Summary

Item C: Staff Report
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neumo.com (800) 800-8181 Page 14 Balance of Jurisdiction,
-11.7% CHANGE,
$1,734,206 ,

34.9% TOTAL
Stanford Shopping Center,
-1.3% CHANGE, $1,621,693 ,

32.7% TOTAL
Greater Downtown,
-6.9% CHANGE,
$866,199 ,

17.4% TOTAL
El Camino Real and Midtown,

1.6% CHANGE,
$372,072 , 7.5% TOTAL
Town And Country Shopping Center,

18.0% CHANGE, $203,970 ,

4.1% TOTAL
California Avenue,

6.9% CHANGE, $168,094 ,

3.4% TOTAL
All Other Geo Area Totals with Balance of Jurisdiction
Comparison 2026Q1 SALES T AX AMOUNTS
Balance of Jurisdiction,
$1,964,429 ,

37.5% TOTAL
Stanford Shopping Center,
$1,642,416 , 31.4% TOTAL
Greater Downtown,
$930,813 , 17.8% TOTAL
El Camino Real and Midtown,
$366,168 , 7.0% TOTAL
Town And Country Shopping Center,
$173,039 , 3.3% TOTAL
California Avenue,
$157,307 , 3.0% TOTAL
All Other Geo Area Totals with Balance of Jurisdiction
Comparison 2025Q1 SALES TAX AMOUNTS

GENERAL RETAIL,

7.8% CHANGE, $2,312,415 ,

34.1% TOTAL

BUSINESS TO BUSINESS,

45.3% CHANGE, $1,657,595 ,

24.4% TOTAL

FOOD PRODUCTS,

7.2% CHANGE,
$1,513,060 ,

22.3% TOTAL

TRANSPORTATION,
-14.4% CHANGE,
$936,669 ,

13.8% TOTAL

MISCELLANEOUS,
-16.8% CHANGE, $295,492 ,

4.4% TOTAL

CONSTRUCTION,
108.7% CHANGE, $69,435 ,

1.0% TOTAL
Palo Alto citywide 2026Q1 SALES TAX AMOUNTS

GENERAL RETAIL,
$2,145,621 ,

34.7% TOTAL

BUSINESS TO BUSINESS,
$1,140,997 ,

18.5% TOTAL

FOOD PRODUCTS,
$1,410,933 ,

22.8% TOTAL

TRANSPORTATION,
$1,093,645 ,

17.7% TOTAL

MISCELLANEOUS,
$355,330 , 5.7% TOTAL

CONSTRUCTION,
$33,274 , 0.5% TOTAL
Palo Alto citywide 2025Q1 SALES TAX AMOUNTS
City of Palo Alto Geo Area & Citywide Pie Charts

Item C
Attachment A - 2026 Q1 Sales Tax
Digest Summary

Item C: Staff Report
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City Council
Staff Report
From: City Manager
Report Type: INFORMATION REPORTS
Lead Department: City Manager
Meeting Date: August 10, 2026
Report #:2607-6586
TITLE
City Council Summer Recess Report

RECOMMENDATION
Informational Report Only.

EXECUTIVE SUMMARY
This informational report provides a brief update on notable activities and work throughout the City Council’s July 2026 recess.

BACKGROUND
The annual Summer Recess Report share updates, organized by department, on activities accomplished during the City Council recess. This report is not an exhaustive list of staff work.

The updates are to inform the City Council and public about items completed since the last City Council meeting of the fiscal year and other efforts underway.

ANALYSIS
Administrative Service Department
End of Fiscal Year and New Fiscal Year Activities
Staff focused on transitioning into the next fiscal year. Closing FY 2026 is underway. The annual inventory of both warehouses, the Municipal Services Center and Regional Water Quality Control Plant, are complete.

Revenue Collection
Staff assisted permit customers with the transition to the new residential Parking Permit Program that launched in mid-June.

Office of Management and Budget
Staff kicked off the budget system upgrade project and worked towards publications in August of the FY 2027 Municipal Fee Schedule and both the FY 2027 Adopted Operating and Capital Budget books.

Item D
Item D Staff Report

Item D: Staff Report
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Procurement
Staff closed year-end purchase orders and began encumbrances for FY27. Staff continued efforts to update the Palo Alto Municipal Code, as recommended by the Policy and Services Committee, to increase the thresholds for solicitation of goods and services, increase contract approval and settlement authority and to make other technical changes. This will be considered by Council in August.

Real Estate
Staff continued the inter-departmental partnership to advance the Cubberley Community Campus Project.

In accordance with Council direction on November 17, 2025, Staff completed the acquisition of a 3.25-acre parcel from the Sobrato Organization by grant deed recorded on June 17. The site is adjacent to Matadero Creek, near the former Fry's building.

Treasury
Staff worked towards finalizing the Regional Water Quality Control Plant line of credit and refunding of the 2009 Water revenue bonds. Staff advocated to the State on behalf of the City for SB 762 to increase the sales tax cap by 0.5% or half-cent. Staff advocated to the State on behalf of the City to protect the parcel transfer tax revenues.

Roth Building
Staff met with the Palo Alto Museum ("Museum") in June to continue addressing the water intrusion in the Roth Building. In addition, City staff collaborated with the Museum staff to review parameters that guide the planned basement repair work and address water flow from Heritage Park. Plans are being developed by the Museum for this work and the City will review plans once received.

CalPERS Update
Staff made the $20 million disbursement from the Section 115 Trust to CalPERS for the pension ADP (additional discretionary payment), per Council FY 2027 Adopted Budget, which will reduce the City’s unfunded pension liability.

Staff anticipate transmitting the June 30, 2025, CalPERS valuations of the City's pension plans to the Finance Committee this fall, along with a review of the Retiree Benefit Funding Policy.

CalPERS completes valuations using member data two years in arrears and issues annual reporting each August. As of July 2026, CalPERS provided the following preliminary investment returns as compared to a 6.8% target:
14.8% for the period ending June 30, 2026 (impact in FY 2029) 11.6% for the period ending June 30, 2025 (impact in FY 2028) Item D
Item D Staff Report

Item D: Staff Report
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9.3% for the period ending June 30, 2024 (impact in FY 2027) Consistent with past practice, staff will incorporate these results in financial planning, including the Long-Range Financial Forecast (LRFF) and annual budget development. Additionally, staff continue to use a lower discount rate than the 6.8% used by CalPERS to calculate the employer's normal cost and transmit the difference as an additional contribution to the City's Pension Trust. As part of the FY 2027 Adopted Budget, the City Council approved continuing to use a discount rate of 5.3% in FY 2027.

City Manager’s Office
Palo Alto Homekey Progress
Palo Alto Homekey reached an important operational milestone with staff and clients completing the move from the Sunnyvale hotel bridge program to the Palo Alto site over a four- day period in late June/early July. Families are settling into the new location, and children are participating in summer camp activities, helping provide structure, stability and a positive transition during the summer months.

LifeMoves shared that the move was meaningful for many families, and described the site as offering a renewed sense of peace and safety. Additionally, Homekey clients shared with LifeMoves that the setting provides peace of mind as they continue to seek permanent housing, with nearby nature and open space contributing to a therapeutic environment. LifeMoves staff observed a growing sense of community and rapport unfolding with shared meals and 4th of July celebrations together.

Oversized Vehicles Discussion Planned for Council in August Staff continue regular street sweeping, enforcement and responding to constituent concerns regarding oversized vehicles. A City Council discussion is anticipated on August 24, presenting two pilot programs intended to address ongoing neighborhood, business, public health and safety impacts associated with OSVs used for habitation while balancing and providing a more structured and humane response for individuals living in those vehicles.

Human Services
Human Services staff continued supporting community needs this summer through the FY 2026 Emerging Needs Fund and direct service coordination. The City received 11 Emerging Needs Fund applications and made 8 awards totaling $50,000, fully allocating the available funding.

Awards supported vision and health services, food assistance, senior nutrition, equipment needs, youth mental health programming, outreach and referral coordination, community event support, seasonal operating costs and early intervention services for students. Staff also supported a resource fair for unhoused residents, attended by approximately 32 unhoused neighbors and 16 service providers and community partners, creating opportunities for direct Item D
Item D Staff Report

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service connections, meals, resource sharing and continued coordination among local organizations.

Nobu License Agreement
On July 14, the City and Nobu executed a License Agreement to provide Nobu 20 dedicated parking stalls in Lot Q for their valet service. The pilot program was developed to attract more parking users to downtown garages where demand and occupancy is low and to generate revenue. The Nobu License Agreement will result in at least $268K in revenues in the next few years (not including CPI increases).

Thursday Live/Entertainment Zone
Over the summer recess, there were two Thursday Live on Cal Ave events that activated the Entertainment Zone following its implementation in early June 2026. The first event in June featured a Taste of California Avenue theme, while the second in July was a Wine Walk. Each event offered a vibrant mix of live music and local artists, giveaways, a photo booth experience and a family activity zone. With the Entertainment Zone activation, visitors had the opportunity to enjoy alcoholic beverages purchased from local businesses, creating a lively and welcoming atmosphere that supported local merchants and encouraged visitors to experience Cal Ave.

FIFA World Cup
Staff developed promotional materials to help drive patrons to University Avenue/Downtown and California Avenue restaurants and bars to watch World Cup games locally. Restaurants and bars showing World Cup matches included Cafe Pro Bono, iTalico, La Bodeguita, Terun, Ramen Kowa, Curry Pizza House, La Corneta Taqueria, Local Union 271, Nola Palo Alto, The Patio, The Pro, and The Rose & Crown.

Destination Marketing
Through a partnership between the City and the Chamber of Commerce, and feedback from local hotel representatives, a Destination Marketing website is under development to promote the City of Palo Alto as a visitor destination. The website will showcase a variety of businesses and experiences, providing visitors with resources to explore and discover what the city has to offer.

Annual Community Survey
Staff finalized the annual Community Survey to be conducted by Polco/National Research Center starting August 14. Survey goals include gaining insight into resident perspectives about community services and existing programs and unmet service needs. Consistent with previous years, the survey will initially be mailed to a statistically significant population and offered in English, Spanish and Chinese. The survey will open to all residents on September 15 with results anticipated to be presented to the Council this winter.

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Community Services Department
Summer Camps
This summer, Community Services offered 320 camps with $1,846,301 in total revenue generated as of July 21, 2026. A total of 3,747 campers enrolled with 2,108 on waitlists.

Summer Camp 2026 season ends August 8. The highest demand camps this year include Zoo Camp, Woodworking Camp, Two-Week Theatre Academy, Jurassic Camp, Camp Kinetic and Camp Palo Alto.

Recreation Special Events
This year’s Family Movie Night series has been a great success, with each movie night welcoming 300–400 attendees. The summer series ends on August 14 with “The Super Mario Galaxy Movie.” The continued success and strong attendance highlight the community’s support of family-oriented events throughout the summer.

Eleven teams competed in this year’s 4th of July Chili Cook Off & Summer Festival, including four returning and seven new teams. Chili teams vied for several prizes including People’s Choice, Best Vegetarian Chili, Best Decorations and Most Spirit. First place went to Veterinary Emergency Group (VEG) E.R. for Pets and the Klemens Family won the People’s Choice award.

Attendance was estimated at around 3,000.

Aquatics
Rinconada Aquatics continues to provide opportunities for residents of all ages to learn how to swim, stay active, enjoy recreational swimming and pursue employment through lifeguard certification. Throughout the summer, the facility welcomed numerous families and offered day camps. From June through mid-July, aquatic camps hosted 502 campers, a 25% increase over the same period last year. Staff have certified 109 lifeguards year-to-date, helping support both facility operations and the broader aquatics community. Summer certification activity has been particularly strong, with 57 certifications completed June through mid-July, a 63% increase compared to the same period in 2025.

Public Art Program
The Public Art Program hosted nine ArtLift events activating Downtown, California Avenue and Cubberley, engaging over 200 residents and visitors. The Public Art Commission approved the final design for a temporary artwork at the Sherman Avenue Garage, which is planned for installation in August.

Cubberley Artist Studio Program
Four of the artists from the Cubberley Artist Studio Program (CASP) held free workshops and events at the Cubberley campus engaging dozens of residents of all ages in art making.

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Palo Alto Art Center
The Art Center sold 772 summer camp sessions, generating $262,732 in revenue with 95 teens participating in as either our Counselor in Training or Ceramics Apprentice teen leadership programs, with a revenue increase of 21% over last year. There were 89 teens who supported summer camps as Counselors in Training (CIT) and Lead CITs, serving almost 1,600 hours.

Members of the Art Center Teen Leadership group are planning the Open Call Teen Art Exhibition, which will take place in September, showcasing local teen artwork.

A new glaze washing station was installed in the adult ceramics studio to reduce the volume of Rinsate produced by keeping clay waste and glaze waste separate. Using funds from the Ceramics Program CIP, a down payment was made on a custom kiln, which is currently being fabricated with installation scheduled for summer 2027. Summer quarter is usually the quietest season for Adult Studios, but there are currently 339 people enrolled in classes and workshops, generating $79,294 in revenue, an 11% increase over last year.

The year-long series “Centering: Clay and Community” celebrating the Art Center’s role as a resource for ceramic art and education, concluded.

The Art Center hosted over 7,500 people at the annual Clay and Glass festival on July 11 and 12.

Children’s Theatre
This summer the Children’s Theatre welcomed 246 campers, generating $151,000 in revenue.

Assisted by 14 interns, the camps were at capacity with 344 waitlisted.

The Children Theatre produced the annual Summer Hot Dog Season, featuring “Tales of the Arabian Nights” and “Wheels on the Bus.” Performed before sold out audiences, the productions were seen by more than 6,000 community members and included Magical Series Spectrum Friendly and ASL-Interpreted performances.

This summer, the theatre launched a new audio play series, featuring a June 2026 summer intensive class that recorded The Wizard of Oz (an original Children’s Theatre adaptation for young actors), and in July, the theatre took up residence at Cubberley Theatre for two weeks to record an audio book of their upcoming publication of Monologues for Young Actors.

The Teen Arts Council closed out the school year with WaveFest, an outdoor music and art festival for teens. This year’s festival included teen bands, dance companies, student vendors and clubs, local community groups, plus Palo Alto’s Teen Library Advisory Board (TLAB) and Art Center Teen Leadership.

The Twilight Concert Series kicked off in June, with the first three concerts attracting more than 3,000 community members. The lineup included “Heartless,” “Summer Night City” and “Fleetwood Mask.” The concert series concluded on August 8 with blues band “Legally Blue.” Item D
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Palo Alto Junior Museum & Zoo (JMZ)
The Palo Alto Junior Museum & Zoo hosted 937 campers in nine science camps. Thanks to donations from the Friends of the Palo Alto Junior Museum & Zoo, 43 campers received a full scholarship to cover the cost of participation. Forty-two (42) middle and high school interns supported JMZ summer camps through the JMZ Science Camp Assistant Program. The search for the next Executive Director began in June, attracting a highly competitive pool of candidates. The City is in the final stages of the recruitment process.

A new flamingo chick was born on June 22 to parents Ruby and Sal. Remarkably, the chick hatched on the same date as Rio, the Zoo's flamingo chick born in 2025. The new arrival brings the flamingo flock to 8 birds. Producing chicks in consecutive years is a significant achievement for a flock of this size and reflects the exceptional care provided by the animal care team, as well as the health and well-being of the colony. The JMZ also introduced two new public programs this summer: a Teen Night and a World Snake Day celebration.

Therapeutic Recreation & Accessibility
Staff established a new partnership with the Stanford Autism Center to support future inclusive community events, including a "Meet the First Responder" event for individuals with disabilities and their families planned for late August. In preparation for summer camp season, camp staff across CSD received specialized training on supporting campers with disabilities. Staff provided accommodations for 13 summer camp/class participants, helping ensure inclusive access across CSD programs.

In June, we hosted a Downtown Hangout for young adults with disabilities. Additional fall offerings are planned for all ages including cooking classes, gym time and family socials.

Accessibility continued expanding with the addition of a sensory tent at the Fourth of July Chili Cook-Off.

Open Space, Parks and Golf
Rangers have increased their frequency of patrols in the Baylands Nature Preserve following the attack and robbery in the Baylands on July 23. Midpeninsula Regional Open Space District has also increased patrols of the section of the Bay Trail in Ravenswood Preserve.

The Pearson-Arastradero Preserve Gateway exhibits were refreshed for the first time in nearly 20 years, including interpretive panels, updated exhibit elements, new display models, and enhancements to the visitor center experience.

The Rangers have been performing annual fire fuel mitigation work totaling over 400 acres of fuel breaks and ignition prevention mowing and maintaining clearance on 25 miles of fire roads and trails.

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Staff presented the financial feasibility study to the Parks and Recreation Commission and are evaluating their input and determining appropriate next steps.

Greer Park Skate Bowl Maintenance
Maintenance improvements began at the Greer Park Skate Bowl, including removal of unauthorized paint and crack repairs. The project is expected to be complete with the skate bowl reopening by late August.

Park Sign Replacement
Staff replaced park signs at Greer and Heritage Parks, installed two memorial plaques at Bol Park, upgraded Bowden, Peers, Eleanor Pardee and Johnson Park pedestrian/playground gate hardware to improve accessibility and safety, and repaired the backstop at Baylands Athletic Center baseball field. Additionally, staff partnered with Kiwanis to repair wooden playground fencing at Mitchell Park and repaint benches at Bowden Park. Kiwanis also started repainting playground structure posts at Briones Park and will continue through August/September.

Mitchell Park and Bowden Park playground fencing were also repainted.

Parks Asset Management
With funding support from Friends of Palo Alto Parks, a Parks Asset Management Intern is developing a digital inventory of Open Space, Parks, and Golf assets within the City's Maintenance Connection system, creating the foundation for future condition assessments and more strategic asset management.

Community Gardens Workdays
A total of 5 community workdays with over 100 participants took place throughout June and July to remove weeds, maintain pathways and perform other work including creating a new pollinator garden. Staff coordinated with gardeners and partnered with Hands on Bay Area to conduct the work.

Cubberley Community Center Project
Staff continued to explore public-private partnership opportunities with community organizations to support advancement of the Cubberley project. As mentioned previously, free workshops and events at the Cubberley campus engaged dozens of residents of all ages in a variety of artmaking experiences, including community mural workshops, sculptural fortune cookie making workshops using reclaimed canvas, stop-motion animation with a Cubberley Artist Studio Program (CASP) artist, portrait drawing, cyanotype printing, a gathering for artists and makers working with thread and yarn and a quilting basics workshop.

Fire Department
Vegetation Fire Response
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Palo Alto experienced three significant vegetation fires this summer at Pearson-Arastradero Preserve (~3.5 acres) on June 22, Coyote Hill/Page Mill (~6.7 acres) on July 1, and Byxbee Park (~ 3 acres) on July 11. All are suspected to have been caused by illegal fireworks.

Fleet Update
The Department purchased two used reserve Type 1 fire engines from the City of Mountain View, restoring critical backup capacity for routine maintenance and unexpected repairs.

Fire Station 8 Activation & Wildfire Prevention and Wildland-Urban Interface (WUI) Inspections Fire Station 8 has remained fully staffed through the shared staffing model with Santa Clara County Fire, supported by Los Altos Hills County Fire Protection District. Palo Alto Fire will continue to provide staffing during August; Santa Clara County Fire will provide staffing in September and Palo Alto Fire again in October. By November, staff monitor the weather and fuel moisture to determine staffing levels.

The Fire Department hosted a Wildfire Prevention Workshop at the end of June to provide residents with information on wildfire risk reduction, defensible space and preparedness measures. The workshop was recorded and is available on the City’s YouTube channel for residents who missed the workshop.

All initial Wildland-Urban Interface (WUI) inspections conducted by Engine companies for homes in the Foothills have been completed. Staff are now working to complete the required re-inspections to confirm progress on identified wildfire mitigation measures and support continued community preparedness.

Human Resources Department
54 summer seasonal hires were onboarded in June to lead or assist in this year’s Community Services camps and recreational programs.
231 interest cards were received for the new Fire Department “Single-Role” classification with over 6,000 job posting views. Interviews are anticipated to start in late August.

Preparations for this year’s benefits open enrollment period are underway to ensure employees stay informed and educated about employee benefits. 22 Summer Interns were hired from various universities including Cal Berkeley, San Jose State University, UC Davis, Oregon State, Ohio State University, and several others. The interns are fully engaged in work assignments throughout City departments as well as learning opportunities to expand their interest in future public service careers. The summer intern program continues through mid-August, with a Commencement & Reception to recognize their accomplishments.

Library Department
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Summer Reading Program
The Library hosted its annual Summer Reading Program June 1 – August 1. The theme, Oceans of Possibilities, invited participants to dive into new adventures and explore the depths of their imagination by reading and/or listening daily, whether it’s books, articles, audiobooks or storytimes. All-ages events took place all summer long, and participants tracked their reading online or on a paper log. Prize pickups will be at Children’s, Mitchell Park, and Rinconada Libraries through August 31, while supplies last. The Library thanks the Friends of the Palo Alto Library and all other donors.

Pride & Other Events
The Library hosted a series of Pride events in June and July, including an exciting performance by the SF Pride Band and a karaoke night; a new Tech Class series for basic computing needs and interests; and a Juneteenth storytime and craft. Staff tabled at the unhoused resource fair at the Opportunity Center and issued library cards and promoted library services.

Vintage Media Lab
During summer recess, the Vintage Media Lab (VML) – which provides community access to tools that help residents preserve, digitize and share personal and family history – booked a total of 194 hours at Mitchell Park and Rinconada Libraries in 97 appointments.

Mitchell Park Library Wall Repair
The Mitchell Park Library wall repair project began in July and is scheduled for completion by fall 2026. The Library and Public Works Department are working closely together to oversee the repairs. During this time, the Teen Space will remain closed for safety. Library staff are coordinating limited access to Teen Collection materials upon request when it is safe to access the area.

Children’s Library Closure on Mondays Began
Starting July 20, the Library closed the Children’s Library on Mondays as part of the impacts of the FY27 reductions to Library’s budget and the loss of 4.0 FTE positions.

Office of Emergency Services
Staff conducted numerous trainings for City staff, community members and Emergency Services Volunteer (ESV) program participants.

OES continued participating in regional emergency planning, particularly around the FIFA soccer matches in our area.
4th of July Safety Watch
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The City lead a multi-agency coordination and deployment for the 4th of July to facilitate rapid response in the event of a wildfire, terrorist event or other threat to safety. Some partners included the Midpeninsula Regional Open Space District, CAL FIRE, CHP, San Mateo County, Santa Clara County, Valley Water and other allied agencies. OES also deployed Emergency Services Volunteers at various locations to spot fires and other potentially unsafe conditions.

Office of Transportation
East Bayshore Repaving, Bike Facilities & Transportation Funds for Clean Air Transportation and Public Works staff have been collaborating to ensure that scheduled repaving efforts on East Bayshore Road incorporate required upgrades or planned safety improvements wherever feasible. Given the requirements of SB 1216, shared lane markings (sharrows) are prohibited on roads with a posted speed limit of over 30 miles per hour, except as specified. To reflect this change and ensure safe access for students traveling from East Palo Alto and new housing north of US-101, staff plan to upgrade bike facilities along East Bayshore from sharrows to dedicated bicycle lanes when the roadway is repaved in fall 2026. In July, staff worked with Valley Transportation Authority (VTA) staff to secure a $83,000 Transportation Funds for Clean Air (TFCA) grant to cover the additional expense associated with design and construction of new bike lanes on East Bayshore Road north of Embarcadero Road. This request was successful and will be recommended to the Air District. By aligning this work on bike facility upgrades with scheduled repaving, the community will benefit from reduced costs and construction impacts and higher quality improvements.

TFCA Grant for Citywide Bike Parking
Transportation staff also secured a $49,932 grant for 140 new bicycle parking spaces including racks and corrals. This application was submitted in June, and staff were informed that the application was successful and will be recommended to the Air District for funding.

One Bay Area Grant Cycle 4 (OBAG 4) Application
In July, Transportation staff submitted a grant application requesting $1,817,000 in OBAG 4 funding to support the Design phase of the South Palo Alto Bike/Pedestrian Caltrain Crossing (aka Connectivity) Project. This request will be reviewed initially for potential recommendation at the County-level by VTA before consideration at the regional level by Metropolitan Transportation Commission (MTC).

Railroad Safety and Quiet Zones
In June, the City completed work outlined by the Federal Railroad Administration (FRA) for implementation of a quiet zone at the Palo Alto Avenue (Alma Street) crossing of the Caltrain tracks. Caltrain also implemented safety enhancements that include a RailSentry system using LiDAR and cameras to observe and alert railroad operators about safety concerns. Based on observations from the RailSentry system, Caltrain requested that the City implement additional Item D
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enforcement and evaluate additional design options to encourage drivers to refrain from illegally stopping on the tracks in advance of FRA issuing the Notice of Establishment. The City has implemented additional Police enforcement, and continues to work closely with Caltrain, the CPUC, and the FRA to address these requests and advance implementation of the Quiet Zone at this crossing. These additional reviews and evaluations have extended the implementation timeline for the Quiet Zone while the City works collaboratively with the regulatory agencies to address the requested safety enhancements.

Automated Parking Guidance System (APGS) Installation and Testing The City completed installation of new Automated Parking Guidance Systems (APGS) in Downtown garages. Over the summer, staff worked to test the systems and ensure that all display units are working as intended in advance of full activation, anticipated this fall.

Embarcadero Road Improvements
The City has been advancing construction on the north side of Embarcadero Road between Emerson and High streets. Improvements along this school access route include squaring up side street approaches, installing a raised crosswalk at Emerson Street, eliminating the slip lane at Kingsley Avenue and widening the sidewalk to include a separated bike lane on Embarcadero Road from Emerson to High Street. This work will reduce the speed of turning vehicles and increase pedestrian and bicycle visibility, including many school students who use this as a route to school. Saturday work in early August will help expedite work before school begins on August 13.

Churchill Avenue Enhanced Bikeways
The City is also advancing construction of pedestrian and bicycle improvements along Churchill Avenue between Mariposa Street and El Camino Real. Improvements along this school access route include extending the bike path from Castilleja to El Camino Real, high visibility crosswalks at Castilleja/Churchill, restriping and repaving Churchill and slip lane removal at El Camino Real. Improvements at Castilleja/Churchill intersection are being accelerated during the summer to enhance the safety of student access in fall 2026.

Planning & Development Services Department
Accessory Dwelling Unit (ADU) Plans Gallery
The City’s ADU Plans Gallery has its first two pre-approved ADU plan sets available online. With the use of these plans, homeowners can expect a 24- to 48-hour turnaround for review, in comparison to the 14-day review of standard ADU/JADU permits. Staff are working on two more pre-approved designs in the Gallery by the end of the calendar year.

Automated Permitting System Federal Grant
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In July, Planning and Development Services applied for a U.S. Department of Housing and Urban Development (HUD) funding opportunity supporting jurisdictions to evaluate and deploy automated permitting technology. If awarded, the $620,000 grant would fund a 12- to 18- month subscription to AI plan review software to assess its effectiveness. The 36-month project would proceed in stages: software proposal solicitation, selection, prototyping and implementation. The evaluation would measure the technology's impact on consistency in applying codes and standards, plan review timelines and reliance on outside contractors and consultants. HUD will notify applicants of awards by August 31, 2026.

Senate Bill (SB) 79 Applications Received
Between July 1 and July 15, the City received nine SB 79 pre-applications proposing a total of 341 housing units and approximately 395,310 square feet of development. Application addresses and initial project information are provided below.

SB 330 Pre-Applications Received July 1-15, 2026
PLN Address Units Floor Area
(Sq Ft)
Zoning
District
Ground Floor
Commercial
Proposed
26PLN-00160 2455 EL Camino
Real
76 90,000 CC(2) 0
26PLN-00162 525 Hamilton Ave. 21 27,430 CD-C(P) 5,775
26PLN-00163 414 California Ave. 39 66,080 CC(2)(R)(P) 10,724 26PLN-00164 555 College Ave. 70 70,475 CN 8,291
26PLN-00166 127 Lytton Ave. 24 20,925 CD-C(P) 4,650
26PLN-00173 135 University Ave. 17 14,491 CD-C(GF)(P) 3,000 26PLN-00179 340 Palo Alto Ave. 6 17,545 R-1 0
26PLN-00180 2497 High St. 19 19,250 RM-30 0
26PLN-00181 332 Forest Ave. 69 69,114 RM-40 SOFA 1 0
A new zoning map is now available online showing the areas covered by the new local zoning ordinances adopted by Council on June 15.

Community Development Block Grant (CDBG) Annual Action Plan The FY 2026-2027 Annual Action Plan was submitted to the Department of Housing and Urban Development on June 24– and is currently under review. Once approved, about $613,000 in CDBG funds will be allocated to eligible grantees to support low-income households and vulnerable populations.

Local Housing Trust Fund (LHTF) Report
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and 3001 El Camino Real projects to support the development of affordable multi-family housing.

Recent Housing Development Application Resubmittals
In July, the City received resubmittals for two housing projects and one new formal application.

The revised application for 3400 El Camino Real (Creekside Inn) includes demolition of existing hotels and development of a mixed-use project with approximately 3,000 square feet of retail, 42 townhomes and 249 rental units. The applicant for 4103 Old Trace Road withdrew their previous development application and submitted new applications for a Tentative Map and Streamlined Housing Development Review for a 13-lot development with 16 total units (including ADUs). The revised application submittal for 531 Stanford Avenue includes 20-unit housing with substantive modifications to reconfigure the site access in response to staff comments. Staff is evaluating all revised plans.

Transit Oriented Communities (TOC) Policy Compliance
City staff have been working to finalize documentation for compliance with Metropolitan Transportation Commission (MTC)'s Transit Oriented Communities (TOC) policy, submitted by July 30. While One Bay Area Grant (OBAG) funds will not be tied to TOC compliance in 2026, extra funds are set aside for jurisdictions that achieve an 85% compliance rate. The documentation process will confirm which areas the City is currently compliant, and what steps are needed should the City seek the 85% compliance level in the future.

Certified Local Government (CLG) Grant
On July 22, the California Office of Historic Preservation announced a $10,500 grant to the City to support our historic preservation program, specifically the Historic Inventory and Public Outreach/Education.

Police Department
Recruitment
Two new police officer trainees graduated the basic police academy and began the Field Training Program. One new officer joined our ranks from another police agency as well.

National Night Out
The Police Department is hosting National Night Out at Bol Park on Tuesday, August 4. This annual event is a great way for first responders (including the Police Department, Fire Department and Office of Emergency Services) to get to know the community in a fun environment featuring games, emergency vehicles on display and more. Police and Fire staff also visiting resident-hosted block parties.

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Another Rivian Patrol Vehicle
The Police Department added a second all-electric Rivian patrol vehicle, which will be driven by field supervisors, to its fleet.

Public Works Services Department
Newell Road Bridge
Even though the Newell Road Bridge work started three weeks late due to nesting birds, the contractor made great progress on the bridge work including demolition of the old bridge and installation of the new bridge piles and abutments. The project remains on target to complete the work in the creek by October 15.

Fire Station #4
Fire Station #4 construction continues with the completion of structural steel, relocated temporary power and ongoing installation of the exterior metal studs. This project remains on schedule with completion anticipated in June 2027.

Embarcadero Road Improvements – Phase 1 Project Updates Work started on Embarcadero Road Improvement Project – Phase 1 on June 8. Grading and storm drain work was completed, widened sidewalk work is underway. Work is anticipated to be completed prior to school starting on August 13.

Regional Water Quality Control Plant (RWQCP) Update
The staff team welcomed a record seven interns, and is excited to provide them with meaningful, hands-on experiences. Staff hopes they will carry their positive experiences into their careers and help strengthen the wastewater industry.

Staff completed several major plant shutdowns to accommodate the two largest construction projects currently underway at the plant, the Secondary Treatment Upgrades and Local Advanced Water Purification System projects, both of which are on track for 2028 completion.

The work completed without any major compliance issues.

The plant continued providing public and private tours, and received positive feedback from attendees.

Staff safely managed an unusual sea foam event during King Tides in early July, which did not result in any major compliance concerns. Sea foam began billowing out of the final effluent box—the structure where treated water leaves the plant and flows to the Bay. Staff believes seawater carried organic material into the effluent box during a period of low plant flow in the middle of the night. A subsequent high tide from the Bay, combined with increased flow from the plant mixing within the relatively small area of the effluent box, appears to have created the sea foam.

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A new project to build a local workforce pipeline by creating awareness and generating enthusiasm for career pathways in the wastewater industry began this summer. Work completed by this year’s summer intern includes a new careers webpage with employee interviews, development of a Wastewater Treatment Plant Careers Tour for teens and research on existing programs to inform a 3-year workplan.

Zero Waste City Facility Audit
A second annual comprehensive review of City facilities continued this summer through a friendly competition between City workgroups to highlight the City’s Zero Waste requirements and enhance staff awareness of responsible waste practices. Audits were conducted by the Zero Waste summer intern who reviewed all common areas. All facilities and work areas received educational materials, fliers, stickers, posters, and information including photos, missing requirements, and what needed to be updated. A trophy to be presented to the winning workgroup in August.

Household Hazardous Waste Station Outreach and Video
This summer, the City developed new outreach materials on how to safely dispose of household hazardous waste (HHW) items. The social media messages, Zero Waste Minute eNews and advertisement will include specific images of HHW examples to be taken to the City’s HHW Station for safe disposal. In addition, a new promotional video of the HHW Station was filmed by the Zero Waste summer intern about how the HHW program works and what type of materials are accepted. The promotional video will support Zero Waste’s new HHW outreach efforts and incorporate the new campaign slogan: “We Make It Easy to Do the Right Thing” with the goal of increasing resident participation at HHW events.

Youth Climate Advisory Board (YCAB) and E-Bike Training The Office of Sustainability concluded recruitment for the 2026-2027 YCAB term during the Summer Recess. A total of 31 students applied, four of whom were previous YCAB members who were selected to serve on the Board again. The summer intern is helping prepare the next Youth Climate Advisory Board (YCAB) term and began outreach to former YCAB members to gain insights from their experiences to inform future programming.

Staff also organized an in-person e-bike training for staff to gain safety information and experience on the pilot program fleet of e-bikes. 33 staff participated in the training.

Utilities Department
Fiber-to-the-Premises (FTTP) and Palo Alto Fiber
Following completion of the fiber hut and FTTP Phase 1 pilot infrastructure earlier this year, Palo Alto Fiber internet service is rolling out to residents in the pilot area. Staff completed the first early adopter installation at the end of April and are planning to start broader marketing efforts to all homes in the pilot area in August. Early adopters will help staff validate contractor Item D
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installation processes, service activation, customer service workflows and network support.

Staff will return to the Utilities Advisory Commission and Council with pilot data, financials and customer metrics by the end of 2026.

Gas Main Replacement Project Summer Progress
Crews working on the Gas Main Replacement Project 25 completed installation of 5,800 linear feet of gas main and 111 services. Crews and the contractor continued work through the end of July, subsequently moving into Matadero Creek and Barron Creek.

Foothills Wildfire Mitigation Project
The City’s contractor for the installation of underground conduit and utility boxes completed the last 10,000 feet of underground substructure installations in late June. Quickly following that work, City electric line workers began installing and splicing underground cable. This will allow all City-owned overhead high-voltage conductors within the CPUC’s designated High Fire Risk Districts to be de-energized ahead of 2026 peak wildfire season.

Annual Water Quality Report
Every year, per state regulations, Utilities produces a consumer confidence report on water quality conditions for the previous calendar year. The 2025 water quality report is now available online in English, Spanish and Traditional Chinese at paloalto.gov/waterresources and in print upon request. Postcards were mailed citywide to inform all water customers that this information is available.

California Renewables Portfolio Standard Program
On July 13, Governor Newsom signed Assembly Bill (AB) 34 into law, the California Renewables Portfolio Standard (RPS) Program for public utilities. AB 34 affirms that hydroelectric power generated for use by public utilities qualifies as renewable energy through the year 2045. AB 34 ensures municipal utilities continue to receive hydropower from projects which customers have already funded, protecting ratepayers, improving affordability and supporting California’s ambitious carbon emission reduction goals. For Palo Alto, this legislation protects public investments in carbon-free infrastructure and supports the City’s 100% carbon-neutral electric portfolio and goal to reduce greenhouse gas emissions 80%.

FISCAL/RESOURCE IMPACT
This report is informational only and items will be brought to the City Council independently, should they need additional fiscal or policy considerations.

STAKEHOLDER ENGAGEMENT
Community engagement continues. Work is underway planning for two Neighborhood Town Hall meetings over the next two quarters and the annual community survey begins on August 14 for a statistically significant population, opening for general participation on September 15.

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Foundation: Community Postvention Conversation (August 11) and It’s OK to Say Suicide (August 12). The annual State of the City address is scheduled for Wednesday, August 19 at the Palo Alto High School Performing Arts Theater. Later in August, there are two community meetings on the grade separation project (August 24 and 25) and one on the South Palo Alto Bike / Ped Connectivity project (August 26).

Website Statistics for January – July 27, 2026
- 3,488,130 total pageviews and 583,354 users
- Top 10 Webpages Visited
oHome page
oCareers
oContent search landing page
oMyCPAU Account Login
oUtilities Department
oMeeting Agendas and Minutes
oRegister for Activities & Classes
oPalo Alto Children’s Theatre
oCreek Monitor & Camera
oPalo Alto Art Center
Other communications shared during the Council recess include:
- City Budget – New Fiscal Year: Service Enhancements & Changes Ahead - Quick Tips: Stay Safe and Keep Cool During Extreme Heat - Every Drop Counts: Simple Ways to Save Water this Summer - The Clerk Chronicles – 2026 Palo Alto Municipal Election - Limited Time: Save $500 When You Switch to a Heat Pump Water Heater - Keep Your Home Safe During Summer Vacation
- Summer Awaits in Palo Alto
- Stay Safe Online: Internet Safety Tips for the Whole Family - Police Invite the Community to National Night Out Events on August 4 - Celebrate the Fourth Safely: Leave Fireworks to the Professionals

ENVIRONMENTAL REVIEW
This report is for informational purposes only with no action required by the Council and is therefore not a project subject to CEQA review.

ATTACHMENTS
No attachments.

APPROVED BY:

Ed Shikada, City Manager
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CITY COUNCIL
Special Report
Sponsor(s): Ed Lauing, Greer Stone, Vicki Veenker
Meeting Date: August 10, 2026
TITLE
Removal of Planning and Transportation Commissioner Forest Olaf Peterson

BACKGROUND
At the request of Councilmember Lauing, Vice Mayor Stone, and Mayor Veenker this item has been agendized for City Council discussion.

ATTACHMENTS
None.

Report #: 2608-6613
Item AA1
Item AA1 Special Report

Item AA1: Staff Report
Pg.
1 Packet Pg. 412 of 412

Palo Alto City CouncilAugust 10, 2026

Palo Alto City Council
August 10, 2026