CITY OF
PALO ALTO
2026 Council Priorities & Objectives
Q2 Update (April-June)
5 15 43
Priority Focus Area Objective
Overall Summary
%
• On Track 65
Behind 14
• Completed 21 57%
Progress
100
Executive Summary
To date, of the 43 Council objectives supporting Council priorities, in the second quarter, a total of 9 (21%) have been completed, 28 (65%) are on track with new Council direction, 6 objectives are behind schedule (14%), and none are on hold.
The four Council Priorities are:
• Achieve Near-Term Housing Milestones
• Cubberley Acquisition and Renovation Funding
• Enhance Business Vibrancy
• Government Efficiency
Of the 43 objectives, 12 are supported and organized under the City Council's values, listed here as a fifth priority.
Plan Summary
Priority 5 Priority 3
Progress 59% Progress 73%
%
• On Track • On Track 60 3
Behind Behind 20
• Completed • Completed 20 1
Council Values Supported Objectives Enhance Business Vibrancy Priority 2 Priority 4
Progress 53% Progress 53%
% %
• On Track 100 • On Track 78
• Completed 22 2
Cubberley Acquisition and Renovation Funding Government Efficiency Priority 1
Progress 52%
• On Track 10
Behind 3
• Completed
Achieve Near-Term Priority Housing Milestones
Priority 1 Progress 52%
Achieve Near-Term Priority Housing Milestones #
• On Track 67 10
Behind 20 3
Owner: Lupita Alamos
• Completed 13
Focus Area: 6 Objective: 15
Focus Area 1.1 Progress 46%
Housing Code and Zoning Updates %
• On Track 60
Behind 20 1
Owner: Lupita Alamos
• Completed 20 1
Objective: 5
Objective 1.1.1
Achievements:
Jan 01, 2026 - Jun 30, 2026 Behind Progress 80%
Planning and Transportation Commission recommendation supporting a draft ordinance was received on May 6, 2026.
Adopt an updated Accessory Dwelling Unit (ADU) ordinance to comply with State law and implement additional policy
Roadblocks:
alternatives, including increased allowable square footage and condominium conversions, consistent with City Council Balancing competing priorities. direction (05.15.23).
Next Steps:
Owner: Garrett Sauls
City Council review in September or October.
Objective Milestone
Planning and Transportation Commission recommendation
and City Council consideration of draft ordinance by Q3.
Objective 1.1.2
Achievements:
Jan 01, 2026 - Dec 31, 2026 On Track Progress 10%
Project achievements in Q2 include selecting a consultant for technical support, Develop and adopt Objective Development Standards for the initiating the project, and receiving a draft memorandum outlining pathways to South of Forest Area Coordinated Area Plan (SOFA), and present implement the program objectives. plan amendment options to replace subjective standards with Roadblocks:
objective standards for Planning and Transportation
Commission and City Council consideration, consistent with None.
Housing Element Program 3.7. Explore alignment opportunities with SB 79 work and Downtown Housing Plan. Next Steps:
Finalize memorandum for PTC consideration, determining a recommended Owner: Leslie Velasquez
implementation approach, holding a study session with PTC, and beginning to draft SOFA objective design standards.
Objective Milestone
Planning and Transportation Commission (PTC)
recommendation and City Council consideration of amended SOFA CAP and/or municipal code amendments by Q4 of 2026.
Objective 1.1.3
Achievements: Initial staff coordination in preparation for outreach to Jan 01, 2026 - Dec 31, 2026 On Track Progress 10% interested parties and drafting of ordinance.
Codity the R1/SB 9 interim ordinance by establishing objective development standards and increasing the maximum floor area Roadblocks: None.
for SB 9 units from 800 to 1,200 square feet, consistent with Housing Element Program 6.3A, and evaluate implications for R1 and SB 9 projects within the City's Individual Review Program. Next Steps: Outreach to interested parties to solicit input on current regulations and processes, development of draft ordinance, PTC hearing on ordinance Owner: Jennifer Armer tentatively scheduled for August or September.
Objective Milestone
Planning and Transportation Commission (PTC) consideration of draft ordinance in Q3; Council consideration in Q4.
Objective 1.1.4
Achievements:
Jan 01, 2026 - Dec 31, 2026 Completed Progress 100%
Staff completed a study of short-term rental regulations in Palo Alto, Conduct and complete a study of short-term rentals and adopt determining that current restrictions are adequate. The analysis, combined with housing and neighborhood preservation regulations that complaint-driven code enforcement, led to the conclusion that no municipal prioritize long-term occupancy, consistent with Housing code amendments are necessary to implement Housing Element Program 4.2 D- Element Programs 4.2D-E (anticipates ordinance adoption by E. The City's housing dashboard has been updated to reflect the current project status. (
July, 2027)
Roadblocks:
Owner: Robert Cain
None.
Objective Milestone
Next Steps:
Present policy options to Policy and Service Committee in Q3.
As applicable present possible ordinance or findings to the An update will be provided to the state Department of Housing and Community Planning and Transportation Commission and City Council in Development in the agency's annual report early next year.
Q4.
Objective 1.1.5
Achievements:
Jan 01, 2026 - Dec 31, 2026 On Track Progress 30%
Analysis was presented to the Planning and Transportation Commission on April Adopt zoning incentives and development standards that 8, 2026. Feedback was collected regarding preferred alternative housing support innovative housing typologies, including micro-units, typologies and suitable geographic locations during the Study Session. intergenerational housing, housing for aging adults, students, Roadblocks:
and lower-income households, consistent with Housing
Element Program 6.5B. None.
Owner: Vishnu Krishnan Next Steps:
A meeting with the Policy and Services Committee is scheduled for August 11, Objective Milestone 2026, to provide an update and refine recommendations based on feedback.
Study session with Planning and Transportation Commission in The Architectural Review Board will review draft policies in Q3. Consideration by Q1 and Policy & Services Committee in Q3; recommendations the Planning and Transportation Commission and City Council is anticipated in for Architectural Review Board consideration in Q2; Planning and Transportation Commission recommendation and City
Council consideration of draft ordinance in Q4.
Focus Area 1.2 Progress 55%
Area Plans and Long-Range Housing Strategy %
• On Track 100
Owner: Lupita Alamos
Obiective: 2
Objective 1.2.1
Achievements:
Jan 01, 2026 - Dec 31, 2026 On Track Progress 60%
Staff presented land use and transportation alternatives to City Council as part Select a preferred alternative for the San Antonio Road Area of a Study Session on April 6, 2026. Based on feedback received, Staff presented Plan land use and transportation alternatives based on a preferred scenario and short-term work plan for City Council approval on June community input and City Council direction. 8, 2026, which was adopted with minor revisions.
Roadblocks:
Owner: Robert Cain
The Council has requested additional information concerning impacts to the Objective Milestone City's jobs/housing balance and impacts to vehicle traffic that the plan may Stakeholder input for alternatives (PTC, community, and create. advisory bodies') in Q1, Council selection of preferred Next Steps:
alternative(s) in Q2, and Council review of policy
recommendations in Q4. Staff will return to Council with the requested information for adoption of a preferred land use and transportation alternative.
Objective 1.2.2
Accomplishments:
Jan 01, 2026 - Dec 31, 2026 On Track Progress 50%
City Council direction resulted in the adoption of two temporary ordinances:
Receive Council direction on optional SB 79 implementation one excluding historic resources within state law SB 79 boundaries, and another strategies and, as appropriate, Downtown Housing Plan increasing development potential to at least fifty percent of the capacity scenarios to Council and initiate environmental review. allowed by SB 79.
Council directed staff to resume work on the Downtown Housing Plan.
Owner: Vishnu Krishnan
Roadblocks:
Objective Milestone
The City Council has directed staff to explore opportunities to accelerate Work with SB 79 and Downtown Housing Plan City Council Ad- housing production on California Avenue and adjacent areas of El Camino Real, Hoc Committee on next steps in 01 and 02; advance SB 79 with a proposal for zoning revisions expected within 6 to 12 months. This implementation in 2026 and Downtown Housing Plan based on additional work is currently un-resourced.
direction received from City Council for adoption in 2027.
Staff is assessing available on-call consultant resources to analyze development options and infrastructure limitations, which may need to be addressed as part of objective standards and in consideration of recent discussions regarding California Avenue streetscape improvements.
While this effort continues, other priority objectives may be impacted by the Council-directed schedule.
Next Steps:
The temporary ordinances will proceed through the formal adoption process via the Planning and Transportation Commission.
For California Avenue, staff will prepare an analysis and present findings to the Planning and Transportation Commission in Q4, with a presentation to City Council scheduled by Q2 2027.
Staff is re-engaging the Downtown Housing Plan consultant to incorporate SB 79 into the plan and will reconsider project schedule and funding changes as necessary.
Focus Area 1.3 Progress 50%
Affordable, Supportive, and Publicly Enabled Housing Delivery % # • On Track 50 1
• Completed 50 1
Owner: Lupita Alamos
Obiective: 2
Objective 1.3.1
Achievements:
Jan 01, 2026 - Jun 30, 2026 Completed Progress 100%
Homekey's temporary certificate of occupancy was issued in June, enabling the installation of furniture and final preparations for opening. Residents began Partner with Santa Clara County Housing Authority to achieve construction timeline milestones for the Palo Alto Homekey moving in at the end of June. project (which will provide transitional housing and services for Roadblocks:
unhoused residents).
No current roadblocks identified.
Owner: Melissa McDonough
Next Steps:
Objective Milestone No immediate next steps required at this time.
Formal opening of the Palo Alto Homekey facility at 1237 San Antonio Rd in Q2.
Objective 1.3.2
Achievements:
Jan 01, 2026 - Dec 31, 2026 On Track Progress 0%
Initial discussions regarding project approach and timing have taken place.
Issue Requests for Information or Requests for Proposals Roadblocks:
(RFI/P) to develop approximately 218 affordable or workforce housing units on City-owned surface parking lots. (Housing The RFP timeline remains uncertain. Ongoing litigation (Downtown Vibrancy v.
Element Program 1.4A). City of Palo Alto) concerning the redevelopment of downtown Lot T is expected to limit developer interest in submitting proposals in the near term and may Owner: Coleman Frick render further parking lot redevelopment infeasible.
Next Steps:
Objective Milestone
Review draft RFI/P with Policy & Services Committee by Q3 2026 Prepare an RFP for the redevelopment of downtown parking lots, or to issue the solicitation process by year end. alternatively, identify other low-income housing opportunity sites to fulfill Housing Element requirements.
Focus Area 1.4 Progress 55%
State Compliance, Housing Capacity, and Grant Competitiveness % # • On Track 50
Behind 50 1
Owner: Lupita Alamos
Objective: 2
Objective 1.4.1
Achievements:
Jan 01, 2026 - Jun 30, 2026 Behind Progress 80%
City staff from multiple departments collaborated with Housing and Community Receive a Prohousing Designation from the California Development Department staff to develop a comprehensive Prohousing Department of Housing and Community Development in order Designation Application for public review during Winter/Spring. Application to enhance the City's competitive advantage for qualifying materials were available for public review from May 18, 2026, to June 24, 2026. A community meeting was held on May 20, 2026, to present the materials and grants.
address public questions. The Planning and Transportation Commission Owner: Julia Knight provided feedback during a May 27, 2026, study session. On June 15, 2026, City Council authorized the City Manager to finalize and submit the draft materials.
Objective Milestone Roadblocks:
Submit an application to the state department of Housing and Community Development in Q2; receive HCD approval in Q3. None.
Next Steps:
The application will be submitted to state department of Housing and Community Development in July. The state is expected to review the materials during Summer/Fall, with a designation decision anticipated by Fall.
Objective 1.4.2
Achievements:
Jan 01, 2026 - Sep 30, 2026 On Track Progress 30%
The City Council adopted a resolution on April 20, 2026, as recommended by staff, authorizing the Director of Planning and Development Services to make Identity and designate additional Housing Element site
capacity to maintain RHNA compliance and buffer by evaluating minor modifications to the Housing Element site inventory and to provide new opportunity sites to address anticipated capacity shortfalls updates to the City Council when sites are added. This action establishes a in 2026, including impacts from development on faith-based streamlined process for maintaining compliance with state law, fulfilling sites and downtown parking lots. Regional Housing Need Assessment (RHNA) requirements, and implementing the Housing Element's Adequate Sites Program.
Owner: Coleman Frick
Roadblocks:
Objective Milestone None.
Select technical analysis consultant, Q1; City Council resolution Next Steps:
allowing site inventory changes, Q2; identify replacement sites for to meet RHNA requirements, Q3/4; evaluate downtown The Director will submit a report to the City Council in Q3 2026 detailing parking lot and faith-based replacement sites, if necessary, Q4. changes made to the Housing Element site inventory to ensure continued compliance with RHNA requirements. These updates will also be included in the annual report submitted to the state department of Housing and Community Development as part of state-mandated reporting.
Focus Area 1.5 Progress 50%
Housing Incentives, Fees, and Market-Activation Tools % # • On Track 50
Behind 50
Owner: Lupita Alamos
Objective: 2
Objective 1.5.1
Accomplishments:
Jan 01, 2026 - Dec 31, 2026 On Track Progress 30%
A project update and preliminary growth projections were presented to the Update and adopt development impact fees for public safety, Policy and Services Committee in April. The consultant team, in collaboration government facilities, housing, transportation, parks, and with representatives from various city departments, is actively documenting the community services, including completion of nexus and infrastructure and capital investments required to support anticipated future feasibility studies and establishment of fee waivers for low- growth resulting from development. income inclusionary units. (Housing Element Programs 2.1B; Roadblocks:
3.1B & C).
Updating the transportation impact fees necessitates a specialized consultant to Owner: Julia Knight conduct and analyze multi-modal transportation models. This component cannot be completed within the current project timeline and has been Objective Milestone separated from the broader citywide impact fee update. It will be addressed as a Present development scenarios and growth assumptions to separate priority objective in the future and is not included in the current effort.
Policy and Services for feedback by Q2. Adopt Parks, Library & Next Steps:
Community Facility Fee Updates by Q3. Adopt additional fee updates by Q1 2027. Consultants are scheduled to deliver draft nexus and feasibility studies based on identified needs during Summer/Fall. These materials will be reviewed with the Policy and Services Committee, with discussions regarding potential fee adjustments planned for Fall.
Objective 1.5.2
Accomplishments:
Jan 01, 2026 - Jun 30, 2026 Behind Progress 70%
On March 10, 2026, an initial analysis and report were presented to the Policy and Services Committee, resulting in feedback to guide ongoing staff efforts.
Evaluate opportunities that make multi-tamily housing an attractive alternative to commercial office development, Roadblocks:
consistent with Housing Element Program 3.9A.
Additional analysis requirements and competing priority objectives have Owner: Robert Cain introduced minor delays to the project schedule.
Next Steps:
Objective Milestone
Feedback from Policy & Services Committee in Q1 and Q3. Finalize the recommended approach based on further analysis in Q3. Present Recommend ordinance amendments to City Council in Q4. findings to the Policy and Services Committee for recommendation, followed by submission to the City Council for consideration.
Focus Area 1.6 Progress 65%
Unhoused Resident and Oversized Vehicle Housing Response % • On Track 100 2
Owner: Lupita Alamos
Objective: 2
Objective 1.6.1
Achievements:
Jan 01, 2026 - Sep 30, 2026 On Track Progress 70%
Implement Oversized Vehicles (OSV) Phase 1 work, including Roadblocks:
options for RV buyback and storage, new recruiting safe parking and enforcement/signage relating to detached/inoperable vehicles prohibition.
Next Steps:
Owner: Melissa McDonough
Objective Milestone
In coordination with the OSV Ad hoc, seek Council direction on preferred option(s) on RV buyback and storage in Q2.
Implement signage and enforce detached/inoperable vehicles prohibition in Q2. Work with OSV Ad Hoc on recruiting new safe parking and bring
Objective 1.6.2
Achievements:
Jan 01, 2026 - Dec 31, 2026 On Track Progress 60%
Initiate and advance Oversized Vehicles Phase 2 work, including Roadblocks:
oversized vehicle permit pilot (e.g., collecting count data, designing permit process & terms, conducting informal RFI/Q to operate pilot).
Next Steps:
Owner: Melissa McDonough
Objective Milestone
Develop OSV permit pilot, including enhanced services and bring to Council for consideration by Q3. (related to 2025 Objective 3.3.4).
Priority 2 Progress 53%
Cubberley Acquisition and Renovation Funding % ~ #
• On Track 100
Owner: Lupita Alamos
Focus Area: 1 Objective: 2
Focus Area 2.1 Progress 53%
Strategies to Support Cubberley Acquisition and Renovation % • On Track 100
Owner: Lupita Alamos
Objective: 2
Objective 2.1.1
Achievements: Significant milestones were reached during the reporting Jan 01, 2026 - Dec 31, 2026 On Track Progress 75% period. The Council adopted the Initial Study/Mitigated Negative Declaration, Mitigation Monitoring and Reporting Program, and the Cubberley Conceptual Continue to advance the Cubberley Project focusing on Master Plan on May 18th. The Council also directed staff to pursue a ballot anticipated purchase of 7 acres from PAUSD and community measure for a one-half-cent sales tax in the November 2026 election, and polling for potential placement of a measure on the November Council adopted an Ordinance and Resolution on June 8th to place the measure 2026 ballot and other funding source(s). on the ballot. Advisory Spending Guidelines for the use of the proceeds to support improving Cubberley were also adopted by Resolution.
Owner: Kristen O'Kane
Objective Milestone Roadblocks: Funding uncertainty as it relates to ballot measure success, Finalize a plan to purchase 7 acres from PAUSD by end of Q2. revenues from impact fees, and partners ability to raise funds.
Next Steps: Other funding sources continue to be explored, including from partner organizations, impact fees, grants, and philanthropy. Letters of Intent with partner organizations will be brought to Council for approval in later summer/early fall.
Objective 2.1.2
Achievements: Partnerships with the Friends of the Recreation Wellness Center, Jan 01, 2026 - Dec 31, 2026 On Track Progress 30% TheatreWorks, Avenidas, Maker Nexus, and Palo Alto Community Child Care have been announced. Staff and the Cubberley Ad Hoc continue to explore and Continue to explore and develop partnership opportunities develop these and potential other partnerships as the project advances. with community nonprofit organizations to advance certain elements of the master concept plan through a combination of Roadblocks: There is a need for a standard framework for advancing city and private investments. partnerships beyond a Letter of Intent, while understanding that partner agreements may be structured differently.
Owner: Kristen O'Kane
Next Steps: Letters of Intent with partner organizations will be brought to Council for approval in later summer/early fall. Staff are developing a standard Objective Milestone framework by which partner agreements will be structured.
Continue to explore partnerships and funding opportunities.
Priority 3 Progress 73%
Enhance Business Vibrancy
• On Track 60 3
Behind 20 1
Owner: Lupita Alamos
• Completed 20 1
Focus Area: 2 Objective: 5
Focus Area 3.1 Progress 90%
Business Development and Business Vitality %
• On Track 50
Behind 50 1
Owner: Lupita Alamos
Objective: 2
Objective 3.1.1
Achievements: The Business Retention, Expansion, and Attraction (BRE/A) Jan 01, 2026 - Jun 30, 2026 Behind Progress 90% Strategy consists of ten implementation actions. Under the 2026 Activities and Events implementation action the Thursday Live music series kicked off on May Develop a formal business retention/expansion/attraction 28 and the Entertainment Zone was activated on June 4. In addition, leveraging program focused on supporting existing Palo Alto businesses the City's real estate assets for revenue generation has also been completed seeking to diversify the local economy, increase the tax base through a Nobu License Agreement. Several other implementation actions have that pays for essential public services, job creation, support commenced and are in various phases. placemaking and special events, and enhance the Palo Alto brand in innovation and entrepreneurship globally. Roadblocks: The BRE/A Strategy has been on the Economic Development Committee meeting agenda twice, but the item has not been formally Owner: Alex Andrade considered.
Next Steps: The BRE/A Strategy will be considered by the Economic Objective Milestone Development Committee at the August 26 meeting.
With the Economic Development Ad Hoc Committee, review
and solidify for Council approval a Business Retention, Expansion, and Attraction (BRE/A) Strategy with various implementation actions; an initial draft is attached to this staff report in Q2.
Objective 3.1.2
Achievements:
Jan 01, 2026 - Jun 30, 2026 On Track Progress 90%
The Economic Development Committee considered and unanimously Adopt an ordinance expanding retail opportunities and recommended the draft ordinance on June 3, 2026. The Council approved the strengthening retail resiliency, including refining retail and ordinance first reading on June 15, 2026. retail-like definitions and updating the retail preservation Roadblocks:
ordinance.
None.
Owner: Jennifer Armer
Next Steps:
Objective Milestone Ordinance second reading by the Council on August 10, 2026. Outreach and PTC review and recommendation in Q1; City Council review and education materials will be prepared in July and shared with staff and the public action in Q2. Continued engagement with stakeholders prior to in August. implementation.
Focus Area 3.2 Progress 62%
District Activation and Access Improvements %
• On Track 67 N#
• Completed 33 1
Owner: Lupita Alamos
Obiective: 3
Objective 3.2.1
Achievements:
Jan 01, 2026 - Dec 31, 2026 On Track Progress 50%
Contract execution with the contractor has been completed, along with the Implement the California Avenue near-term signage plan completion of shop drawings and the sign prototype. Staff has approved the replacing the El Camino Real (October 2026) and Oregon submitted logistics plan and traffic control for the installation of both signs.
Expressway (August 2026) signs-by completing their Roadblocks:
procurement and installation.
No current roadblocks have been identified.
Owner: Holly Boyd
Next Steps:
Objective Milestone Both signs are in fabrication and structural calculations are being prepared. The By Q3 Oregon Expressway sign will be installed. By Q4 the El contractor is expected to mobilize in October to begin preparations for Camino Real sign will be installed. installation, including demolition of the old signs, foundation work, and electrical work. Installation of the signs is scheduled for December, with landscaping around the El Camino Real sign to be completed in January 2027.
Objective 3.2.2
Achievements:
Jan 01, 2026 - Dec 31, 2026 On Track Progress 35%
The project received ARB approval on June 4, and coordination with the Utilities Continue design work on new parking structure in Downtown Department has been ongoing regarding a joint trench agreement and the core (Lot D). design for relocation of on-site utilities.
Roadblocks:
Owner: Holly Boyd
No significant roadblocks have been identified at this stage.
Objective Milestone
Next Steps:
Complete entitlement process and design development phase by the end of 2026. Staff will present planning entitlements, an EIR addendum, and a proposed budget amendment to secure funding for joint trench design work related to on- site utilities to the Council for approval on September 14.
Objective 3.2.3
Achievements:
Jan 01, 2026 - Jun 30, 2026 Completed Progress 100%
June 1, 2026, City Council approval of the Outdoor Activation Standards, pre- Secure City Council approval for the California Avenue Outdoor approved parklet plans, minor amendment to the city sign code to permit Activation Guidelines. These guidelines will be finalized through parklet signage. continued stakeholder engagement that includes a Roadblocks:
representative mix of business owners and residents and a formal Architectural Review Board (ARB) review. NA
Owner: Bruce Fukuji Next Steps:
Public Works to: 1) repave the car-free portion of California Avenue by mid- Objective Milestone October 2026 to prepare street for outdoor dining improvements, 2) manage Q1 Stakeholder engagement, Q2 ARB and Council review and permit process for outdoor activation. consideration.
Priority 4 Progress 53%
Government Efficiency #
• On Track 78
• Completed 22 2
Owner: Lupita Alamos
Focus Area: 3 Obiective: 9
Focus Area 4.1 Progress 89%
Fiscal Stewardship and Operational Efficiency #
On Track 50 2
• Completed 50 2
Owner: Lupita Alamos
Objective: 4
Objective 4.1.1
Achievements:
Jan 01, 2026 - Jun 30, 2026 Completed Progress 100%
On June 15, 2026, the City Council approved the FY 2027 Budget that included the base budget guidelines to address a projected FY27 deficit, staff Develop and balance FY 2027 budget by June 30 prioritizing government efficiency, ongoing solutions and balancing fiscal recommended a multi-year comprehensive budget balancing strategies and impacts of policies and practices including consultant made permanent the FY26 budget reductions. The strategies included revenue contracts, downtown parking and general fund subsidies, enhancement, expenditure reduction, CIP reduction, one-time funding, and nonprofit partnerships and revenue enhancements. Section 115 trust (for pension cost and liability). With greater effort on government efficiencies, these strategies yield better outcomes, minimizing Owner: Lauren Lai community impacts.
Roadblocks:
Objective Milestone
Q1- Council approval of Long-Range Financial Forecast and FY Continued economic and Federal government uncertainty could impact the 2026 Mid-Year. Q2- Develop fee updates for Finance Committee City's financial position. review and Council recommendation. Year-end review of open Next Steps:
purchase order balances and associated contracts. Present Nonprofit Partnership Workplan FY 27 Phase I Continue to broadly monitor fiscal drivers in the development of revenue recommendations to Finance Committee and Council. Present enhancements and a balanced budget. Continue to work with departments and FY2027 Budget for Council adoption. key stakeholders to implement the FY 2027 balanced budget.
Objective 4.1.2
Achievements:
Jan 01, 2026 - Sep 30, 2026 On Track Progress 75%
Staff finalized a draft consultant management resource guide and framework for Implement a standardized Citywide Consultant Stewardship citywide training and support tools.
Framework-covering the lifecycle from the decision to Roadblocks:
outsource and scope drafting to contract close-out-to develop and manage scope of services and enhanced reporting on use None of professional services.
Next Steps:
Owner: Meghan Horrigan-Taylor
City Council Study Session anticipated in October. Staff is developing citywide training and supporting tools for implementation.
Objective Milestone
By Q3, implement a standardized and citywide Consultant Management resource and framework to advance efficiencies and best practices from lifecycle of City/consultant interactions such as decision to outsource, scope of services, community engagement, performance tracking and contract closeout.
Resources will enhance training, reporting and overall use of professional services citywide.
Objective 4.1.3
Achievements:
Jan 01, 2026 - Sep 30, 2026 On Track Progress 80%
The Administrative Services Department held focus group meetings with City Improve City processes by streamlining approval of revised departments and the executive team to review purchasing thresholds, which procurement thresholds and contract authority. includes P-cards (City issued credit cards) and advise on improvements to the process. The department also analyzed the Baker Tilly City's Auditor's advisory Owner: Lauren Lai report on contract
solicitation and authority levels assessment report best practices and peer agencies. Staff drafted Municipal Code amendments for Council consideration.
Objective Milestone
Q1- Analyze improvements to the Municipal Code on policy and Roadblocks:
procedures based upon the Baker Tilly report. Hold focus group discussions on proposed revisions. Q2- Develop revisions to the None.
Muni Code policy and procedures for Council approval. Q3.
Next Steps:
Develop new processes and systems to implement and manage the new purchasing thresholds and contract authority. Staff is on track to present Municipal Code updates to Council in August, and continue working on processes and system changes to implement efficiencies.
Objective 4.1.4
Achievements:
Jan 01, 2026 - Jun 30, 2026 Completed Progress 100%
In June 2026, a part-time limited term was hired to assist the Council on Hire a Council half-time limited term support position constituent communication, scheduling and calendar management among allocation as a short-term pilot (6 to 12 months) funded from other focus areas. the Council Contingency fund. Roadblocks:
Owner: Mahea Ah Yun N/A
Next Steps:
Objective Milestone
By Q2, hire a part-time limited term position, non-benefited, to A summary of the new employee's progress will be presented to Council no later assist the Council such as constituent communication, than December 2026 for feedback on next steps. scheduling and calendar management and other efficiencies.
Focus Area 4.2 Progress 26%
Process Modernization and Service Delivery %
• On Track 100
Owner: Lupita Alamos
Objective: 4
Objective 4.2.1
Achievements:
Jan 01, 2026 - Sep 30, 2026 On Track Progress 45%
Improve and streamline staff work on homelessness, housing Roadblocks:
and services for vulnerable residents.
Owner: Melissa McDonough
Next Steps:
Objective Milestone
Centralize in City Manager's Office by Q1, Identify and implement ways to improve processes and reporting (e.g., consolidating contracts, standardizing reporting, HSRAP) by Q3 Objective 4.2.2
Achievements:
Jan 01, 2026 - Dec 31, 2026 On Track Progress 50%
New citywide standards increasing constituent follow-up established. Reduced Leverage the Palo Alto 311 staff working group workplan, categories to support increased community reporting, and streamlined report vendor support and City Auditor benchmarking advice to types to align community expectations of service requests available. Review of improve clarity and timing of constituent response and constituent response monthly continues at a leadership level, with cross- satisfaction, and enhance staff efficiencies by aligning report department collaboration occurring with complex reports. Monthly staff user categories with constituent expectations, and implementing trainings helps to flag gaps in response or possible changes in report types. vendor-proposed 2026 system upgrades-including integrating Roadblocks:
Al tools.
Existing platform is old, and staff are exploring options balancing staffing and Owner: Meghan Horrigan-Taylor budget limitations.
Next Steps:
Objective Milestone
By Q4 Implement public facing changes to PaloAlto311 to Continue cross-department collaboration, monthly tracking and reporting to enhance constituent response and establish citywide response review and elevate complex issues. Initiate City Auditor benchmarking. Facilitate standards. existing platform upgrades planned for later this calendar year including Al features.
Objective 4.2.3
Achievements:
Jan 01, 2026 - Dec 31, 2026 On Track Progress 0%
None.
Modify the municipal code to remove the requirement for Roadblocks:
planning entitlement approval (such as architectural review) or compliance with zoning regulations and procedures for capital None. improvement or other city-initiated projects on publicly owned right of way and land. Next Steps:
Project initiation anticipated in Q3 with Planning and Transportation Owner: Jonathan Lait
Commission review and City Council action in Q4.
Objective Milestone
Present an ordinance to the Planning and Transportation Commission in Q3; City Council review in Q4.
Objective 4.2.4
Achievements:
Jan 01, 2026 - Dec 31, 2026 On Track Progress 10%
Advancing 15% concept designs for traffic calming interventions on the Bryant Streamline delivery of low-cost, high-value (aka quick build) Street Bike Boulevard, covering the segment from Embarcadero Road to Homer traffic safety improvements including updating the City's Traffic Avenue. This work will inform the update to the City's Traffic Calming Policy project, which staff commenced analysis on the issue.
Calming Policy in alignment with the City's Safety Action Plan, Bicycle/Pedestrian Transportation Plan (BPTP), Safe Routes to Roadblocks:
School and California's Daylighting Law (AB413).
None as of Q1.
Owner: Sylvia Star-Lack
Next Steps:
Objective Milestone Present 15% concept designs to internal City stakeholders for feedback in Council review of Draft Update to Traffic Calming Policy, and summer 2026. Conduct public engagement activities, including street-level curb painting for corner daylighting at 25 intersections along tabling, door-knocking, a community meeting, and a presentation to PABAC, in school routes in Q4. fall 2026.
Focus Area 4.3 Progress 20%
Organizational Alignment and Facilities Optimization % # • On Track 100 1
Owner: Lupita Alamos
Objective: 1
Objective 4.3.1
Achievements:
Jan 01, 2026 - Dec 31, 2026 On Track Progress 20%
The project was identified as a priority in early 2026. Initial steps included Relocate City operations in Utilities and the Development determining staff from the Elwell Court and Development Center spaces that Center back to City Hall in order to reduce rent expense to third will move to the Civic Center building. Existing office spaces in the Police party landlords, maximizing revenue to the General Fund, and Building were also inventoried. Public Works and Planning and Development consolidating property and facility management within City Services staff began discussions about the project scope. Staff began work on a test fit to evaluate the initial feasibility of accommodating the involved staff owned land.
groups.
Owner: Brad Eggleston
Roadblocks:
Objective Milestone No roadblocks have been identified at this time.
Please add milestones
Next Steps:
Staff and the architectural consultant will continue to work to allocate workgroups to available spaces and plan for completing incremental improvements to prepare spaces for the staff moves.
Priority 5 Progress 59%
Council Values Supported Objectives %
• On Track 50 6
Behind 17 2
Owner: Lupita Alamos
• Completed 33 4
Focus Area: 3 Objective: 12
Focus Area 5.1 Progress 60%
Vibrant Community % #
• On Track 1
• Completed 50 1
Owner: Lupita Alamos
Objective: 2
Objective 5.1.1
Achievements:
Jan 01, 2026 - Jun 30, 2026 Completed Progress 100%
On March 25, 2026, the Bryant Street Community Center received final Open 429 Bryant Street Community Center. Complete inspection approval for its construction work. The downstairs Sycamore Room construction and any necessary partnership agreements to will be occupied by La Comida to host a daily senior lunch program from 10AM- 2PM starting May 1. The Teen Space has been cleared for full occupancy, is now begin La Comida Senior Lunch Program at the facility by end of June, 2026; plan further work for general community center fully furnished, and has expanded programming underway. The Bryant Street Community Center will also be available for community classes and rental operations concurrently.
space.
Owner: Kristen O'Kane
Roadblocks:
Objective Milestone No roadblocks have been identified.
By Q2 finalize construction and permitting needed to operate Next Steps:
the Bryant Street Community Center at full occupancy. Evaluate options for future improvements. A grand opening is tentatively scheduled for June 3, 2026.
Objective 5.1.2
Achievements:
Jan 01, 2026 - Dec 31, 2026 On Track Progress 20%
• Updated Council on the Natural Grass Pilot workplan during the Pursue a natural grass athletic field pilot project to determine presentation of the FY27 PRC Workplan the best management practices to enhance playability and • Subsequently, incorporated an additional task in the PRC's Workplan to durability. develop a policy on use of synthetic turf in playgrounds, in response to Council's request for additional policy development
Owner: Ben Heistein • Secured funding for the pilot through the FY27 City CIP budget process • Secured Agronomist services for the Enhanced Maintenance & Operations portion of the Pilot
Objective Milestone
• Performed a Agronomist-facilitated Assessment of City of Palo Alto turf Q1 work with the Parks and Recreation Commission (PRC) to maintenance practices and Greer Park athletic fields, including a draft develop a workplan for the Turf Pilot. Q2 seek Council approval assessment report and initial recommendations for an enhanced of work plan and funding. Q3 Conduct enhanced maintenance maintenance pilot study
pilot and feasibility study at two locations. Q4 Conduct • Collect stakeholder feedback on Conceptual Design portion of pilot to stakeholder engage
inform task scoping
Roadblocks:
• Assessment revealed that Greer Park fields are all sand-amended, therefore performed additional assessments on Cubberly Athletic Fields to capture data for native-soil fields and to incorporate a second site into pilot recommendations which took additional time and a revised assessment report.
• Prior reported roadblocks remain due to limited funding available for the pilot in context of City Budget deficit limits the overall scope of the project, so the Pilot workplan is phased, limited to minor renovations, and does not include funding for major renovations such as drainage related sub-grade work, field re-crowning, or high-cost materials and equipment to enhance field maintenance and carrying capacity. Future year phases are contingent on securing external funding • Condensed Timeline to complete Pilot to inform upcoming FY28 Cubberly Synthetic Turf Replacement Capital decisions is a very high level effort and may be challenging.
Next Steps:
• Receive Agronomist Final Recommendations for Enhanced Maintenance Pilot for selected Greer and Cubberly synthetic fields and begin enhanced maintenance program.
• Obtain PRC Ad-hoc input on playground synthetic turf use policy and Conceptual Design portion of Pilot
• Publish a project website and meet with user groups to communicate project status to the public and obtain stakeholder feedback on Conceptual Design Portion of Pilot
• Obtain professional design services for Conceptual Design and technical feasibility portion of pilot
Focus Area 5.2 Progress 62%
Climate Leadership and Environmental Stewardship %
• On Track 20 1
Behind 40 2
Owner: Lupita Alamos
• Completed 40 2
Objective: 5
Objective 5.2.1
Achievements:
Jan 01, 2026 - Jun 30, 2026 Behind Progress 20%
Staff continues to monitor the policy landscape to understand strategic opportunities to adopt new Green Building Standards.
Adopt ordinance updates establishing additional Green
Building Standards and Energy Reach Codes.
Roadblocks:
Owner: Julia Knight The statewide working group has not yet finalized the materials necessary to implement this priority objective, continuing to delay project advancement.
Objective Milestone
Next Steps:
City Council consideration of ordinance for adoption by June 2026. Continue to monitor and initiate local amendments once the statewide working group has finalized their reports.
Objective 5.2.2
Achievements:
Jan 01, 2026 - Jun 30, 2026| Completed Progress 100%
Council adopted the Final Plan via Resolution on June 15, 2026.
Complete 2026 Bicycle and Pedestrian Transportation Plan Roadblocks:
(BPTP) with City Council adoption of the plan.
None at this time.
Owner: Ozzy Arce
Next Steps:
Objective Milestone Staff is preparing the Adopted Final Plan document and anticipates publishing it Council review of 2026 Bicycle and Pedestrian Transportation in fall 2026.
Plan (BPTP) Final Report
Objective 5.2.3
Achievements:
Jan 01, 2026 - Dec 31, 2026 On Track Progress 50%
Staff advanced the Biosolids Facility Plan Update and completed the Measure E Advance recommendations for the Regional Water Quality wetland/wildlife corridor feasibility assessment. On June 23, 2026, staff Control Plant Biosolids Facility Plan. presented to the Parks and Recreation Committee, recommending City Council adoption of a Park Dedication Ordinance to dedicate approximately 7.7 acres of Owner: Karin North the Measure E site at Bybee Park as parkland, while reserving approximately
2.4 acres for potential future biosolids processing. This recommendation aligns with evaluations conducted under the Biosolids Facility Plan Update.
Objective Milestone
Conduct community engagement, refine and review
recommendations with Council Committee in 2026, and further develop implementation strategies in preparation for Council Roadblocks:
acceptance of the Biosolids Facility Plan in 2027.
No roadblocks identified as of Q2.
Next Steps:
Staff will continue finalizing the Biosolids Facility Plan Update and supporting technical documentation. The recommended biosolids management strategy is scheduled for presentation to the Climate Action & Sustainability Ad Hoc Committee in August 2026. Following committee review, materials will be prepared for City Council consideration, including recommendations regarding the Park Dedication Ordinance and long-term biosolids facilities planning, with Council review anticipated in Fall 2026.
Objective 5.2.4
Achievements: The City Council adopted the 2026-2027 S/CAP Work Plan on Jan 01, 2026 - Dec 31, 2026 Behind Progress 40% March 2, 2026.
Building and Vehicle Electrification: Staff is already working on design and Implement the strategies contained in the 2026-2027
Sustainability and Climate Action Plan Work Plan. launch of various climate programs and pilots. The "full service" component of the Advanced Home Electrification Pilot Program continues to provide fixed Owner: Jonathan Abendschein price, direct installation services for homeowners for space and water heating (Work Item CA1). The Advanced Commercial Packaged HVAC Program launched at the end of Q2 with revised incentives, and additional features, including Objective Milestone
courtesy contractor lists and contractor permitting training and written Complete progress on strategies implementation in substantial guidance are in progress, as well as an exploration of financing. Other alignment with the Target Completion Dates contained in the commercial pilots (boiler electrification, major facility partnerships) are behind Work Plan.
schedule, but making progress. The Affordable Housing Multi-Family Grant Program is still in development for final launch due to the staffing roadblocks listed below, but staff has coordinated with interested providers to get projects ready for submittal upon launch, and the program is likely to be fully subscribed. and pilots are being designed, with goals to launch in Q2 and Q3 2027 (CA4, CA6, CA8, CA11, CA12) . Staff continues to develop financing programs for launch, with the timeline still under development (CA2, CA5, CA9).
The first discussions about strategies and funding for community-wide electrification, including potential regulatory measures, took place at the April 17 City Council Climate Action and Sustainability Committee (CASC) meeting, followed by a joint UAC and CASC meeting on June 12, 2026 to provide guidance on policy alternatives to analyze (CA13, CA14). Carbon Neutrality discussions are planned for Q3 2027 (CA15). The City released an RFP for City facility electrification in March 2026 and plans to bring a contract to Council in Q3 2026 (CA26) and City fleet electrification is ongoing (CA27).
Mobility: Four bicycle and pedestrian infrastructure projects are in progress (CA21). Staff plans to seek CASC feedback on the Micromobility Feasibility Study by year-end 2026 (CA22), and continues to implement the housing element (CA24) and coordinate traffic signal improvements with various transit providers Sustainability: Water efficiency and conservation measures are being implemented and adjusted as needed (S1), with water distribution system adaption measures on track to be completed this year (S3). Sea level rise planning is proceeding (S4-S5), with construction of the horizontal levee underway and on schedule to be completed this year (S6). Implementation of the Foothills Fire Management Plan (S8), tree canopy coverage (S9), and reduction of pesticide use is on-going (S10). The City is developing an EPA-funded green stormwater infrastructure project for Juana Briones Park (S11). Zero waste efforts are continuing, with ongoing public education and outreach initiatives (S14-S16).
Communications: The City's overarching sustainability and climate action communications strategies seek to build community awareness around Citv goals and progress. Staff presented a status update on Work Plan items C1, C2, and C3 at the April 17, 2026 Climate Action and Sustainability Committee meeting and intends to provide quarterly updates.
Roadblocks: Promotions in 2025 related to retirements among Utilities management led to vacancies among Climate program staff, particularly in the multifamily and single-family space, which is slowing program launches while these vacancies are filled.
Next Steps: Staff will continue to implement the 2026-2027 S/CAP Work Plan.
Objective 5.2.5
Achievements: With the adoption of the FY2027 and FY2027-31 CIP, the Council Jan 01, 2026 - Jun 30, 2026 Completed Progress 100% approved an updated capital improvement plan for the Grid Modernization effort. The approved CIP includes 12 distinct projects focused on improving Develop and recommend for Council approval a multi-year grid system reliability and building capacity to prepare for building and modernization capital improvement plan focused on improving transportation electrification. reliability and facilitating city-wide customer electrification by upgrading sub-transmission, substation, and distribution Roadblocks: None. infrastructure. Next Steps: With the adoption of the CIP, this priority is complete.
Owner: Terry Crowley
Objective Milestone
Issue the first tranche of debt financing by end of calendar year 2026
Focus Area 5.3 Progress 56%
Community Well-Being & Belonging % #
• On Track 80 4
• Completed
Owner: Lupita Alamos
Objective: 5
Objective 5.3.1
Achievements:
Jan 01, 2026 - Mar 31, 2026 Completed Progress 100%
MOU approved by City Council and Santa Clara County; clinician has been on- Execute MOU with Santa Clara County for assignment of boarded. clinician to PD Psychiatric Emergency Response Team (PERT) in Roadblocks:
Jan 2026.
Securing a clinician from the county was time-consuming but, once assigned, Owner: James Reifschneider on-boarding was seamless.
Next Steps:
Objective Milestone
MOU drafted and circulated for signatures by Q1. Objective has been completed.
Objective 5.3.2
Achievements:
Jan 01, 2026 - Dec 31, 2026 On Track Progress 60%
The Rail Committee reviewed the structural and design considerations for both Advance design of Grade Separation projects at Charleston the earthen berm (retaining wall) and long-bridge (podium) options associated Road, Meadow Drive and Churchill Avenue. with the Meadow Drive hybrid alternative in early march. In addition, in May 2026, staff presented for the technical studies that inform the 15% design Owner: Ripon Bhatia development for the grade separations at Churchill Avenue, Meadow Drive, and Charleston Road. Staff plans to conduct outreach in August and will bring 15% designs of Rail Committee and City Council Review.
Objective Milestone
Complete 15% design and select Locally Preferred Alternative Roadblocks:
for 35% design at each crossing.
N/A
Next Steps:
Staff is advancing the 15% design plans and plans to conduct outreach in August before bringing to the Rail Committee and City Council in Fall 2026 Objective 5.3.3
Jan 01, 2026 - Dec 31, 2026 On Track Progress 12%
Achievements:
Update the Safety Element and develop an Evacuation Plan The Office of Emergency Services has initiated a task order with Tetra Tech to pursuant to SB 99, AB 747, and AB 1409. complete the Evacuation Plan. An internal staff planning team has been established to assist with the development of the Evacuation Plan. A kick-off Owner: Nathaniel Rainey
meeting was held on March 23, 2026, and the team has accomplished Task 1 of the 7 tasks outlined in the scope of work. Staff is working with Cal Fire to Objective Milestone complete the assessment of the Safety Element for Board of Forestry's review.
Initiate evacuation plan, Q1; present draft Safety Element amendments to PTC and City Council consideration with final Roadblocks:
submittal to state for review in Q3; Anticipated evacuation plan None.
completion, Q4.
Next Steps:
Proceed in accordance with our planning roadmap for the evacuation plan; anticipated completion Q4. Upon receiving a conditional approval from the Board of Forestry, staff will present the Safety Element update to the Planning and Transportation Commission for recommendation in Q3. The Safety Element is expected to be reviewed and adopted by the City Council in Q4.
Objective 5.3.4
Achievements: Work with the Jed Foundation continues along with Project Jan 01, 2026 - Dec 31, 2026 On Track Progress 30% Safety Net and community partners, including holding a series of teen focus groups, community workshops, a community healing session, and trainings.
Support Community Mental Health through provision of
Roadblocks: None identified.
support for all ages through community partnerships,
programs, and initiatives. Next Steps: The first report from JED's work will be released next quarter, and development of the postvention guide will begin.
Owner: Kristen O'Kane
Objective Milestone
Continue work with the Jed Foundation engagement to
support youth mental health and suicide prevention efforts.
Objective 5.3.5
Achievements: Construction of the approved improvements required to Jan 01, 2026 - Sep 30, 2026 On Track Progress 80% implement a Quiet Zone at the Palo Alto Avenue crossing has been completed.
Post-construction reviews have been conducted with the Federal Railroad Advance Quiet Zones at Palo Alto Avenue, Churchill Avenue, Administration (FRA), California Public Utilities Commission (CPUC), Caltrain, Meadow Drive, and Charleston Road Rail Crossings. and City staff. Staff is currently addressing punch list items and completing the required documentation and submittals. Additionally, a Capital Improvement Owner: Shahla Yazdy Project was established as part of the FY 2027 Budget to fund the design and construction of Quiet Zone improvements at the Churchill Avenue, Meadow Objective Milestone Drive, and Charleston Road crossings.
Council approval of Notice of Establishment and Quiet Zone Roadblocks: Recently installed cameras near the Palo Alto Avenue crossing implementation at Palo Alto Avenue; and identification of identified vehicle queuing associated with traffic signal operations at the Sand funding and procurement of professional services for design of Hill Road and El Camino Real intersection. As a result, Caltrain has requested required improvements to establish Quiet Zones at Churchill, additional review by the CPUC and FRA before the City can issue the Notice of Meadow and Charleston.
Establishment for the Quiet Zone.
Next Steps: Staff plans to present an item to the Rail Committee and City Council in Fall 2026 seeking approval to issue the Notice of Establishment for the Palo Alto Avenue Quiet Zone. For the Churchill Avenue, Meadow Drive, and Charleston Road crossings, staff has issued a Request for Proposals (RFP) to procure consultant services for the design of the improvements needed to implement Quiet Zones.