CITY COUNCIL
Regular Meeting
Monday, October 05, 2026
Council Chambers & Hybrid
5:30 PM
City
Council
meetings
will
be
held
as
“hybrid”
meetings
with
the
option
to
attend
virtually
or
in
person.
Information
on
how
the
public
may
observe
and
participate
in
the
meeting
is
located
at
the
end
of
the
agenda.
Translation
services
are
available
upon
request
at
least
24 hours
before
the
meeting.
The
meeting
will
be
broadcast
on
Cable
TV
Channel
76,
live
on
YouTube
https://www.youtube.com/c/cityofpaloalto
,
and
streamed
to
Midpen
Media
Center
https://midpenmedia.org
.
VIRTUAL PARTICIPATION
CLICK HERE TO JOIN
(
https://cityofpaloalto.zoom.us/j/362027238
)
Meeting ID: 362 027 238 Phone:1(669)900-6833
PUBLIC COMMENTS
Public
Comment
for
items
not
on
the
agenda
will
be
accepted
for
up
to
1-3
minutes
or
an
amount
of
time
determined
by
the
Chair.
In-person
comments
will
be
heard
at
the
beginning
of
the
agenda
and
remote
comments
will
be
heard
at
the
end
of
the
agenda.
In-person
general
public
comment
will
be
heard
for
30 minutes.
Additional
in-person
public
comments,
if
any,
will
be
heard
at
the
end
of
the
agenda.
Public
comments
for
agendized
items
will
be
accepted
both
in
person
and
via
Zoom
for
up
to
1-3
minutes
or
an
amount
of
time
determined
by
the
Chair.
Requests
to
speak
will
be
taken
until
5 minutes
after
the
staff’s
presentation
or
as
determined
by
the
Chair.
Written
public
comments
can
be
submitted
in
advance
and
will
be
provided
to
the
Council
and
available
for
inspection
on
the
City’s
website.
Multiple
individuals
wishing
to
speak
on
the
same
item
may
designate
a
spokesperson.
Spokespeople
must
be
representing
5 or
more
verified
individuals
who
are
present
in
person
or
via
Zoom.
Spokespeople
are
allowed
up
to
10 minutes,
at
the
discretion
of
the
Chair.
Speaking
time
may
be
reduced
if
the
Chair
reduces
the
speaking
time
for
individual
speakers.
PowerPoints,
videos,
or
other
media
to
be
presented
during
public
comment
are
accepted
only
by
to
at
least
24 hours
before
the
meeting.
Once
received,
the
Clerk
will
share
them
at
public
comment
for
the
specified
item.
To
uphold
strong
cybersecurity
management
practices,
USB’s
or
other
physical
electronic
storage
devices
are
not
accepted.
Signs
and
symbolic
materials
less
than
2 feet
by
3 feet
are
permitted
provided
that:
sticks,
posts,
poles
or
similar/other
type
of
handle
objects
are
strictly
prohibited;
the
items
do
not
create
a
facility,
fire,
or
safety
hazard;
and
persons
with
such
items
remain
seated
when
displaying
them
and
must
not
raise
the
items
above
shoulder
level,
obstruct
the
view
or
passage
of other attendees, or otherwise disturb the business of the meeting.
TIME ESTIMATES
Listed
times
are
estimates
only
and
are
subject
to
change
at
any
time,
including
while
the
meeting
is
in
progress.
The
Council
reserves
the
right
to
use
more
or
less
time
on
any
item,
change
the
order
of
items
and/or
continue
items
to
another
meeting.
Items
may
be
heard
before
or
after
the
time
estimated
on
the
agenda.
This
may
occur
in
order
to
best
manage
the
time at a meeting or to adapt to the participation of the public.
1 October 05, 2026
Materials submitted after distribution of the agenda packet are available for public inspection at www.paloalto.gov/agendas
.
CALL TO ORDER
BOARDS, COMMISSIONS, AND COMMITTEES APPOINTMENTS (5:30 - 5:40 PM)
1. Appointment of Candidates to the Human Relations Commission (HRC), Parks and Recreation (PRC), and Planning and Transportation Commission (PTC), CEQA Status - Not a Project
SPECIAL ORDERS OF THE DAY (5:40 - 5:45 PM)
2. Proclamation Recognizing Fire Prevention Week- October 4-10
AGENDA CHANGES, ADDITIONS AND DELETIONS
IN-PERSON PUBLIC COMMENT (5:45 - 6:15 PM)
Members of the public may speak to any item NOT on the agenda. 1-3 minutes depending on number of speakers. In-person comments will be heard at the beginning of the agenda and remote comments will be heard at the end of the agenda. In-person Public Comment is limited to 30 minutes. Additional in-person public comments, if any, will be heard at the end of the agenda.
COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS (6:15 - 6:25 PM) Members of the public may not speak to the item(s).
STUDY SESSION (6:25 - 7:25 PM)
3. Best Practices in Managing Consultant Services
CONSENT CALENDAR (7:25 - 7:30 PM)
Items will be voted in one motion unless removed from the calendar by three Council Members.
4. Approval of Business Retention, Expansion, and Attraction (BRE/A) Strategy as Recommended by the Economic Development Committee: CEQA – Not a Project
5. Approval of Letters of Intent with Avenidas and HeartFit for Life for collaboration on a long-term public-private partnership for expanded services for aging adults at the Cubberley site; CEQA status – Mitigated Negative Declaration Approved on May 19, 2026.
2 October 05, 2026
Materials submitted after distribution of the agenda packet are available for public inspection at www.paloalto.gov/agendas
.
6. Approval of Surveillance Use Policy for Security Cameras at the Palo Alto Animal Shelter; CEQA Status - Not a Project.
7. Approval of Surveillance Use Policy for Security Cameras at the Palo Alto Junior Museum & Zoo; CEQA Status - Not a Project.
8. Approval of FY 2026 Reappropriation Requests to FY 2027 Operating and Capital Improvement Budgets and Additional Technical Clean-Up Actions and Corresponding Amendments to the FY 2027 Budget Appropriation for Various Funds. CEQA Status: Not a Project
9. Approval of Professional Services Contract Number C27196802 with BKF Engineers for the Design of Four Quadrant Gate Systems Improvements required for Quiet Zone Railroad Crossings at Churchill Avenue, Meadow Drive, and Charleston Road in an Amount Not to Exceed $1,294,522 for a term ending December 31, 2029; CEQA status:
Categorically Exempt, CEQA Guidelines Section 15301.
CITY MANAGER COMMENTS (7:30 - 7:40 PM)
BREAK (15 MINUTES)
Listed times are estimates only and are subject to change at any time, including while the meeting is in progress.
ACTION ITEMS (Item 10: 7:55 - 9:15 PM; Item 11: 9:15 - 10:15 PM) Include: Report of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Report of Officials, Unfinished Business and Council Matters.
10. Approval of FY 2027 Architectural Review Board, Historic Resources Board, Planning and Transportation Commission, and Utilities Advisory Commission Work Plans; CEQA Status – Not a Project
11. Consideration of City Council Positions on State and Local Measures Presented to Palo Alto Voters on the November 3, 2026 Ballot; CEQA status – not a project
VIRTUAL PUBLIC COMMENT
Members of the public may speak to any item NOT on the agenda. 1-3 minutes depending on number of speakers. In-person comments will be heard at the beginning of the agenda and remote comments will be heard at the end of the agenda. In-person Public Comment is limited to 30 minutes. Additional in-person public comments, if any, will be heard at the end of the agenda.
ADJOURNMENT
3 October 05, 2026
Materials submitted after distribution of the agenda packet are available for public inspection at www.paloalto.gov/agendas
.
INFORMATION REPORTS
Information reports are provided for informational purposes only to the Council and the public but are not listed for action or discussion during this meeting’s agenda.
A.
Informational Report: Utilities Quarterly Report for FY2026-Q3 (January 2026 – March 2026)
OTHER INFORMATION
Standing Committee Meetings this week
Finance Committee October 6, 2026
Public Comment Letters
Schedule of Meetings
4 October 05, 2026
Materials submitted after distribution of the agenda packet are available for public inspection at www.paloalto.gov/agendas
.
PUBLIC COMMENT INSTRUCTIONS
Members
of
the
Public
may
provide
public
comments
to
teleconference
meetings
via
email,
teleconference, or by phone.
1. Written public comments
may be submitted by email to
[email protected]
.
2. For in person public comments
please complete a speaker request card located on the
table at the entrance to the Council Chambers and deliver it to the Clerk prior to discussion of the item.
3. Spoken
public
comments
using
a
computer
or
smart
phone
will
be
accepted
through
the
teleconference
meeting.
To
address
the
Council,
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on
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When
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CLICK HERE TO JOIN
Meeting ID: 362-027-238 Phone: 1-669-900-6833
Americans
with
Disability
Act
(ADA)
It
is
the
policy
of
the
City
of
Palo
Alto
to
offer
its
public
programs,
services
and
meetings
in
a
manner
that
is
readily
accessible
to
all.
Persons
with
disabilities
who
require
materials
in
an
appropriate
alternative
format
or
who
require
auxiliary
aids
to
access
City
meetings,
programs,
or
services
may
contact
the
City’s
ADA
Coordinator
at
(650)
329-2550
(voice)
or
by
emailing
Requests
for
assistance
or
accommodations
must
be
submitted
at
least
24 hours
in
advance
of
the
meeting,
program,
or
service.
5 October 05, 2026
Materials submitted after distribution of the agenda packet are available for public inspection at www.paloalto.gov/agendas
.
California
Government
Code
§84308
,
commonly
referred
to
as
the
"Levine
Act,"
prohibits
an
elected
official
of
a
local
government
agency
from
participating
in
a
proceeding
involving
a
license,
permit,
or
other
entitlement
for
use
if
the
official
received
a
campaign
contribution
exceeding
$500
from
a
party
or
participant,
including
their
agents,
to
the
proceeding
within
the
last
12 months.
A
“license,
permit,
or
other
entitlement
for
use”
includes
most
land
use
and
planning
approvals
and
the
approval
of
contracts
that
are
not
subject
to
lowest
responsible
bid
procedures
and
have
a
value
over
$50,000.
A
“party”
is
a
person
who
files
an
application
for,
or
is
the
subject
of,
a
proceeding
involving
a
license,
permit,
or
other
entitlement
for
use.
A
“participant”
is
a
person
who
actively
supports
or
opposes
a
particular
decision
in
a
proceeding
involving
a
license,
permit,
or
other
entitlement
for
use,
and
has
a
financial
interest
in
the
decision.
The
Levine
Act
incorporates
the
definition
of
“financial
interest”
in
the
Political
Reform
Act,
which
encompasses
interests
in
business
entities,
real
property,
sources
of
income,
sources
of
gifts,
and
personal
finances
that
may
be
affected
by
the
Council’s
actions.
If
you
qualify
as
a
“party”
or
“participant”
to
a
proceeding,
and
you
have
made
a
campaign
contribution
to
a
Council
Member
exceeding
$500
made
within
the
last
12 months,
you
must
disclose
the
campaign contribution before making your comments.
6 October 05, 2026
Materials submitted after distribution of the agenda packet are available for public inspection at www.paloalto.gov/agendas
.
City Council
Staff Report
Report Type: BOARDS, COMMISSIONS, AND COMMITTEES
APPOINTMENTS
Lead Department: City Clerk
Meeting Date: October 5, 2026
Report #:2609-6816
TITLE
Appointment of Candidates to the Human Relations Commission (HRC), Parks and Recreation (PRC), and Planning and Transportation Commission (PTC), CEQA Status - Not a Project
RECOMMENDATION
Staff recommends the City Council appoint up to three candidates to the HRC, up to four candidates to the PRC, up to one candidate to the PTC, and authorize staff to continue recruitment if any positions are not filled through this action.
BACKGROUND
Recruitment for Boards, Commissions, and Committees (BCCs) is split into fall and spring cycles.
The fall recruitment opened on July 28, 2026 and closed on September 2, 2026. This recruitment includes 12 vacancies across 5 meeting bodies. The fall cycle includes HRC, PRC, PAC, and SWMOC. Unscheduled vacancies on the HRC and PTC arose during the recruitment, and staff incorporated this position into the fall recruitment for efficiency and cost savings. More details on vacancies, eligibility requirements, and terms are included in the analysis section below.
The City Council interviewed candidates for PRC on September 22 and is scheduled to interview candidates for HRC and PTC on September 30. Interviews for PAC and SWMOC are tentatively scheduled for October 19, and appointments are tentatively scheduled for October 26.
ANALYSIS
A summary of the openings, eligibility requirements, and term lengths for each vacancy are included below. In addition to the eligibility requirements below, no commissioners may be Councilmembers, officers, or employees of the City.
Item 1
Item 1 Staff Report
Item 1: Staff Report
Pg.
1 Packet Pg. 7 of 241
Human Relations Commission (HRC)
Number of Vacancies and Term Dates 2 Full Term Vacancies (11/1/2026 – 10/31/2029) 1 Partial Term Vacancy (11/1/25 – 10/31/28)
Seat Numbers 1, 4, 7
Number of Applicants 13 Total (9 in regular recruitment, 4 additional in extended)
Number of Votes per Councilmember 3 (2 votes for full term vacancies and 1 vote for partial term vacancy)
Eligibility Requirements1 Palo Alto residency
Parks and Recreation Commission (PRC)
Number of Vacancies and Term Dates 4 Full Term Vacancies (11/1/2026 – 10/31/2029) Seat Numbers 1, 5, 6, 7
Number of Applicants 13
Number of Votes per Councilmember 4
Eligibility Requirements2 Each member of the commission shall have a demonstrated interest in parks, open space and
recreation matters.
Palo Alto residency
Planning and Transportation Commission (PTC)
Number of Vacancies and Term Dates 1 Partial Term Vacancy (4/1/2026 – 3/31/2030) Seat Number 4
Number of Applicants 9
Number of Votes per Councilmember 1
Eligibility Requirements3 Palo Alto residency
FISCAL/RESOURCE IMPACT
None.
STAKEHOLDER ENGAGEMENT
City staff publicized the recruitment through the following methods:
Electronic distribution via the City’s Uplift Local community newsletter, City Clerk’s Office newsletter, City’s website, and City’s social media channels; 1 Palo Alto Municipal Code Section 2.22.010 https://codelibrary.amlegal.com/codes/paloalto/latest/paloalto_ca/0- 0-0-61320
2 Palo Alto Municipal Code Section 2.25.010 https://codelibrary.amlegal.com/codes/paloalto/latest/paloalto_ca/0- 0-0-61402
3 Palo Alto Municipal Code Section 2.20.010 https://codelibrary.amlegal.com/codes/paloalto/latest/paloalto_ca/0- 0-0-61282
Item 1
Item 1 Staff Report
Item 1: Staff Report
Pg.
2 Packet Pg. 8 of 241
Physical posting and flyer distribution at City facilities, including libraries, community centers, and City Hall;
Print and online ads in the Palo Alto Daily Post and Palo Alto Weekly; and Outreach to previous applicants, community-based organizations and groups related to the commissions’ subject matter jurisdiction.
ENVIRONMENTAL REVIEW
Council action on this item is not a project as defined by CEQA because it is an organizational or administrative activity that will not result in direct or indirect physical changes in the environment. CEQA Guidelines section 15378(b)(5).
ATTACHMENTS
Attachment A: BCC Applications
APPROVED BY:
Mahealani Ah Yun, City Clerk
Item 1
Item 1 Staff Report
Item 1: Staff Report
Pg.
3 Packet Pg. 9 of 241
Meeting Date: October 5, 2026
Staff Report # 2609-6816
Boards, Commissions, and Committees Applications
Applications were published in full as part of the September 14, 2026 and September 28, 2026 City Council agenda packets. In order to reduce paper consumption, staff is providing links to the applications in lieu of re-printing them.
Human Relations Commission Applications
Regular recruitment:
https://cityofpaloalto.primegov.com/viewer/preview?id=0&type=8&uid=9763a189- 8f8f-4c64-8164-3cd4b5b7ccb5
Extended recruitment:
https://cityofpaloalto.primegov.com/viewer/preview?id=0&type=8&uid=ed8c3aaf- d48b-40ef-a79f-187df51246f0
Parks and Recreation Commission Applications
https://cityofpaloalto.primegov.com/viewer/preview?id=0&type=8&uid=b19da62e- 368b-47b7-a40a-d246222e7271
Planning and Transportation Commission Applications
https://cityofpaloalto.primegov.com/viewer/preview?id=0&type=8&uid=d3dd947c- 7222-4c92-a689-5faf4e90f4d0
Item 1
Attachment A - BCC
Applications
Item 1: Staff Report
Pg.
4 Packet Pg. 10 of 241
City Council
Staff Report
Report Type: SPECIAL ORDERS OF THE DAY
Lead Department: Fire
Meeting Date: October 5, 2026
Report #:2609-6751
TITLE
Proclamation Recognizing Fire Prevention Week- October 4-10
ATTACHMENTS
Attachment A: Proclamation Recognizing Fire Prevention Week- October 4-10 APPROVED BY:
Stephen Lindsey, Fire Chief
Item 2
Item 2 Staff Report
Item 2: Staff Report
Pg.
1 Packet Pg. 11 of 241
FIRE PREVENTION WEEK
October 4–10, 2026
WHEREAS, the City of Palo Alto is committed to ensuring the safety and security of all those living in, working in, and visiting the community; and
WHEREAS, lithium-ion battery fires remain a serious and growing hazard, primarily caused by thermal runaway, a chain reaction triggered by damage, overcharging, or manufacturing defects, with micromobility devices such as e - bikes, scooters, laptops, and cellphones frequently involved; and WHEREAS, all household members should develop and practice a home fire safety and escape plan that includes:
buying, charging, and recycling lithium-ion batteries safely; having two exits from every room in the home with a path to the outside from exits; installing smoke alarms in all required locations; and designating a meeting place outside where everyone in the home will meet upon exiting; and
WHEREAS, the City of Palo Alto Fire Department first responders are dedicated to reducing the occurrence of home fires and home fire injuries through prevention and education; and WHEREAS, the City of Palo Alto residents are encouraged to participate in public education measures, so that they can take personal steps to increase their safety from fire; and WHEREAS, the City of Palo Alto's 2026 Fire Prevention Week theme, “Charged Up, Safely,” effectively serves to educate the public, including the many residents who rely on e -bikes, scooters, and other micromobility devices, about simple but important charging habits that can help reduce the risk of lithium-ion battery fires, keeping themselves and those around them safe.
NOW, THEREFORE I, Vicki Veenker, Mayor of the City of Palo Alto, on behalf of the entire City Council, do hereby proclaim October 4 –10, 2026 as Fire Prevention Week in the City of Palo Alto, and urge all community members to participate in the public safety activities and efforts of the City of Palo Alto Fire and Emergency Services Departments during Fire Prevention Week.
Presented: October 5, 2026
______________________________
Vicki Veenker
Mayor
Proclamation
Item 2
Attachment A -
Proclamation Recognizing
Fire Prevention Week-
October 4-10
Item 2: Staff Report
Pg.
2 Packet Pg. 12 of 241
City Council
Staff Report
From: City Manager
Report Type: STUDY SESSION
Lead Department: City Manager
Meeting Date: October 5, 2026
Report #:2606-6480
TITLE
Best Practices in Managing Consultant Services
RECOMMENDATION
City Council discussion of ongoing work to ensure high quality and valuable services developed through the engagement of professional consultants.
EXECUTIVE SUMMARY
The City of Palo Alto relies on professional consultants to supplement staff capacity, provide specialized expertise, and advance priority projects and services. Consultants support important City work, including capital improvement planning and delivery, specialized planning and permitting services, recreation and arts programming, and community studies and plans.
The City’s goal is to ensure that each engagement is properly scoped, efficiently managed, aligned with City initiatives, and thoroughly evaluated on its outcomes. Strong consultant management practices help the City efficiently use public resources while preserving staff capacity to provide local knowledge, policy direction, community engagement, and accountability.
Since early 2025, staff has reviewed and developed best practices in this field as part of the 2026 Council Priorities workplan. An interdepartmental working group has prepared an internal Best Practices in Managing Consultant Services guide, included as Attachment A. The guide is intended to support staff from the initial decision to use a consultant through project closeout and performance evaluation.
This work has already generated benefits as its principles are being incorporated into recent and ongoing consultant projects. The next phase of work will focus on broader implementation, including staff training, pilot tools, and feedback to refine the guide.
Item 3
Item 3 Staff Report
Item 3: Staff Report
Pg.
1 Packet Pg. 13 of 241
BACKGROUND
The City of Palo Alto regularly engages professional consultants for a wide variety of functions.
These include, for example:
Planning, architectural, engineering, and construction management for capital improvement projects;
Specialized and supplemental staffing for land use planning, processing entitlement applications, building permitting and inspection, as well as other operations; Specialized recreation, arts, and enrichment programming for community classes, summer camps, and other public services;
Development of studies and plans on a broad range of topics in areas such as economic development, transportation, and facilities planning.
The use of consultants is critical to the City’s ability to produce the volume, pace, and range of services expected and required by the community. Consultants often provide unique skills and experience on topics of importance, such as the City’s Auditor Baker-Tilly, Independent Police Auditor OIR Group, and youth suicide prevention specialist the JED Foundation. At the same time, in order to ensure that consultant engagements produce work products that provide the value expected it is critical that expectations are set appropriately and that services provided meet these expectations.
The City has focused attention on this effort since early 2025. At its May 28, 2025 meeting, the Policy and Services Committee was presented with a workplan and expressed support for improving transparency, staff capacity, and consistency in consultant use, while noting concerns about overreliance and safeguarding community trust. The Committee discussed the interplay of cost and expertise in long-term staff development, having clearer expectations for consultants, and maintaining ongoing public engagement. At the October 22, 2025 City Council meeting, City Council raised areas of interest such as when work should be performed by consultants versus City staff, how to account for long-term staffing obligations when comparing alternatives, opportunities to use local and community expertise where appropriate, consultant responsiveness to Council and community input, the availability of future-year consultant data, and the need for a more consistent approach to evaluating consultant performance.
The ongoing work has continued forward as one of the 2026 Council Priorities workplan. At its May 5, 2026 meeting, the Finance Committee discussed consultant services in the context of government efficiency, productivity, staffing impacts, transparency, and the importance of being able to measure impacts going forward.
ANALYSIS
As previously reported to the City Council, much of this work is a leading practice. While within the local government management profession there is a wealth of established practices on Item 3
Item 3 Staff Report
Item 3: Staff Report
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topics such as procurement and contract management, topics such as ensuring value in products and building organizational capacity are seldomly addressed in the comprehensive manner described here.
Purpose of the Consultant Management Review
The overarching goal is to clarify expectations around consultant management and reinforce practices that ensure effective products, meet organizational needs, and support professional growth among the City’s professional staff while also maintaining flexibility for the range of consultant engagements. This effort establishes clear, practical expectations for the City staff that engage and manage consultant services. The work helps the City:
Make thoughtful decisions about whether consultant services are needed; Develop clear scopes, schedules, and expected deliverables; Maintain appropriate City oversight while respecting consultants’ professional expertise and independence;
Ensure consultants understand Palo Alto’s local context, policy direction, and community expectations;
Identify and address risks or performance concerns early; Evaluate completed work and apply lessons learned to future engagements; and Consider whether recurring consultant work may be more effectively performed by City staff over time.
The focus is primarily on professional-service engagements for studies, plans, analyses, and similar work products. These engagements require active project management because the quality and usefulness of the final product depend on both consultant expertise and effective management of the engagement by the City.
The staff work completed in keeping with these goals has involved an inter-departmental team that has examined the lifecycle of consultant engagements from initial concept and budgeting to project management, issues resolution, and closeout and evaluation. Attachment A, the Best Practices in Managing Consultant Services Guide, reflects the primary work product of this effort.
City Auditor Baker-Tilly also contributed to this work, and provided the interdepartmental team with an advisory report on best practices related to sourcing and contract administration. Their report is provided as Attachment B.
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The Guide is organized along the typical steps involved in consultant engagement, including:
Assessing the need for consultant services;
Developing a clear scope of work and community engagement approach; Selecting the appropriate service provider;
Establishing project roles, communication practices, and performance expectations; Managing scope, schedule, budget, risks, and deliverables; Addressing performance concerns or changes in project direction; and Closing out projects and evaluating consultant performance.
The Guide is intended to be practical and scalable. Not every engagement requires the same level of process, documentation, or oversight. Smaller or routine assignments may require a more routine approach, while major planning efforts and complex professional-service contracts require a more structured project management.
While specifically written for use by City department staff managing projects, the Guide spans topics that involve a variety of stakeholders involved in determining the success of a consultant project. The following table outlines some of the key touchpoints for various stakeholders:
TABLE 1
Key Stakeholders at Various Points in Project Lifecycle Phase Key Stakeholders
Annual Budget, Council Priority-
Setting
City Council, City Manager’s Office, Lead Department
management
Financial Tracking Lead Departments, Administrative Services Outsourcing Process Lead Departments, Administrative Services, Human Resources, City Council (if applicable)
Performance Management, Quality
Control, and Timeliness
Lead Department management, City Manager’s Office
Managing High-Visibility and
Controversial Projects
Lead Department management, City Manager’s Office
Stakeholder Engagement Community members, Lead Department management, City Manager’s Office, City Boards and
Commissions, City Council
Closeout and Evaluation Lead Department management, City Attorney’s Office, Administrative Services
The following points highlight some of the key tactical steps provided in the Guide:
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Precursors to Outsourcing
As part of the annual budget development process, staff assesses whether funds might be more effectively allocated to consultant services or hiring in-house staff. Through the City Council’s annual priority setting, projects (“objectives”) requiring consultant assistance will be identified to enable the City Council to select its priorities with this awareness.
Additional internal approvals are required for large task orders issued under master agreements.
The City’s financial tracking system has now been coded to enable ongoing tracking of consultant services expenditures citywide. Additional system enhancements may be implemented in the future for reporting needs.
The Outsourcing Process - Determining a Scope of Services Guidance is provided for staff to develop scopes of service that reinforce clarity and performance measurement.
The role of City staff relative to the consultant is to be clear. In particular, the scope should reflect how staff will bring local knowledge (possessed by staff or other stakeholders) to inform the work.
Scopes of services and roles should align with the City long-term goals for building internal expertise.
The potential effect of Artificial Intelligence (AI) will be considered when defining the scope of services.
Major projects may involve City Council review of scopes of services.
Scoping Community Engagement
Community engagement is a central element of virtually all studies and planning efforts in Palo Alto. It is therefore important to ensure the consultant is aware of the nature and extent of community engagement expected.
Department staff consult with the City Manager’s Office communications staff to develop community engagement plans, updated as projects proceed. Staff take primary responsibility for identifying key stakeholders and arranging for meeting venues and logistics. Online engagement tools are also coordinated with the City Manager’s Office.
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resident involvement might apply, staff will consult with the City Manager’s Office to structure involvement, with the goal of leveraging resident expertise while ensuring objective analysis.
Selecting the Service Provider
In selecting consultants, departments consider not only cost but also expertise, alignment with project needs, and prior performance.
The process emphasizes open and fair opportunities to submit proposals that are objectively evaluated and a selection based on the best interests of the City. For efficiency, the City may procure services by utilizing the competitive bidding process undertaken by another government entity or a joint purchase agreement. Circumstances can arise that cause consideration of a change in direction, such as cost proposals that exceed budget, and a lack of strong proposals. Department management and the City Manager’s Office evaluate options and determine appropriate steps forward.
Contract terms specify processes such as overall schedules, progress payments, and penalties for non-performance. Project managers and departments ensure that consultant payments align with project milestones, to ensure accountability and timely progress.
Performance Management and Quality Control
At project kick-off, an important first step in the successful completion of a consultant engagement is establishing primary points of contact on both the City’s and consultant’s teams, and reviewing the scope and key understandings needed for the project. Regular coordination meetings are set.
Project managers establish the City’s expectation for originality in work products and ensure against the appearance of repackaged materials from prior engagements. In the case that deliverables appear insufficiently customized, staff will request revision before accepting the product.
While projects are intended to proceed smoothly, it is common for issues to arise.
Escalation paths provide important secondary points of contact if needed due to disagreements or performance concerns from either the City or consultant.
Managing High-Visibility and Controversial Projects
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sometimes deeply emotionally expressed. Consultants often absorb a portion of that pressure, allowing staff to continue to maintain productive relationships with stakeholders they must work with on other issues.
A two-step process for City Council, Boards and Commissions review may use study sessions or committee hearings prior to action, in order to • Provide structured opportunities for technical clarifications and response from the consultant and staff, and
• allow the body to deliberate on policy direction after establishing a shared baseline of understanding
A structured approach to capturing comments and documenting responses to comments may be incorporated into the consultant scope of services. In most circumstances staff must remain the primary interface with the community. Adequate time for stakeholder feedback, responses to this feedback, and adjustments to next steps should be anticipated and built into schedules.
Closeout and Evaluation
Project closeout includes confirmation of objectives met, review of team performance, and feedback to consultants. A standardized evaluation form ensures consistent reflection and improvement.
When appropriate, a lessons-learned note should identify process improvements for internal teams and should be indexed so that future scopes and evaluations can reference it.
Next Steps
This work has already generated benefits as its principles are being incorporated into recent and ongoing consultant projects. Examples include the synthetic turf study, the South Palo Alto pedestrian/cycling connectivity, and railroad quiet zone project development. In addition, as part of the current budget, staffing in the Office of Transportation was augmented in order to reduce reliance on consultant services.
Staff will continue implementation of the best practices through the following actions:
Distribute the Best Practices guide;
Develop and pilot practical templates and checklists for project managers; Provide training in coordination with the Administrative Services Department, City Attorney’s Office, Human Resources, and relevant departments; Item 3
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Seek feedback from consultants on practices that support successful engagements; Incorporate lessons learned from pilot projects and staff feedback; and Continue to integrate review of consultant services into the annual budget development process.
Training on these best practices must build on current project management training, including any existing certifications, modules, or external programs used to develop project managers. An assessment of current training practices across departments is currently under way. Based on this assessment, Human Resources staff are leading the development of a modular, audience- appropriate training program that incorporates applicable best practices and may include certification. Initial modules are expected to address foundational project planning and pre- engagement activities, with separate modules for financial and relationship management elements. Staff aim to implement citywide training by the end of FY2027.
FISCAL/RESOURCE IMPACT
The activities described in this report are being conducted within existing City resources. No consultants were hired for the completion of this project.
STAKEHOLDER ENGAGEMENT
Teams that work closely with consultant management were asked to give feedback on the consultant review work. As reflected in the workplan, engagement of City staff and the consultant community is an integral part of ensuring this work is grounded in current practice and results in advancement of City practices.
ENVIRONMENTAL REVIEW
The work is not a project as defined in the California Environmental Quality Act (CEQA).
ATTACHMENTS
Attachment A: Best Practices in Managing Consultant Services Attachment B: Best Practices in Consultant Management, Baker Tilly Report APPROVED BY:
Ed Shikada, City Manager
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3 Table of Contents
1. Introduction ................................................................................................................... 4
2. Purpose and Overall Approach ........................................................................................ 4
3. Precursors to Outsourcing ............................................................................................... 5
3.A Annual Budget Cycle Review .............................................................................................. 5
3.B Initiating New and Unbudgeted Projects ........................................................................... 6
3.C Financial Tracking of Contracts ........................................................................................... 7
4. The Outsourcing Process ................................................................................................. 7
4.A Developing the RFP Scope of Services ................................................................................ 7
4.B Selection of Contract Terms and Conditions ...................................................................... 9
4.C Scoping Community Engagement ..................................................................................... 10
4.D Finalizing the Scope of Services ........................................................................................ 11
4.E Service Provider Selection and Potential Efficiencies ....................................................... 11
4.F Handling Inadequate Proposals ........................................................................................ 12
4.G Finalizing the Scope of Services and Contract .................................................................. 12
5. Contract Management .................................................................................................. 13
5.A Budget Adherence and Invoicing ...................................................................................... 13
5.B Performance Management, Quality Control, and Timeliness .......................................... 13
5.C Managing High-Visibility and Controversial Projects........................................................ 14
5.D Stakeholder Engagement .................................................................................................. 16
5.E Closeout and Evaluation ................................................................................................... 16
6. Appendices *Finalization of appendices is currently in progress and therefore not included* ............................................................................................................................ 16
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4 1. Introduction
This document provides a guide for City of Palo Alto staff on methods to ensure effective and valuable engagement with professional consultants. It is intended to provide a comprehensive guide and continuous improvement approach to decision-making and staff responsibilities for budgeting, contracting, relationship and project management, and interface with community members. This guide focuses specifically on consultants engaged in the preparation of studies, plans, and similar types of services.
This resource provides citywide guidance on best practices, and the interdepartmental team that contributed to its development can be appropriately proud of setting a new standard in municipal management. It should be recognized, however, that even a well-executed project can sometimes experience a negative outcome. Misaligned stakeholder expectations, shifting goals, and community division are some of the factors that could lead to poorly received work products. In addition, not every project requires extensive management. City staff are responsible for balancing competing needs, so the tools and practices reflected in this guide should be considered resources where needed rather than a performance standard. Individual departments may also provide more specific direction reflecting specialized work that supplement the guidance provided here.
2. Purpose and Overall Approach
The purpose of this guide is to set clear guidance and expectations in consultant engagement while maintaining flexibility for specific situations and promoting professional growth. The effective use of consultant services requires the involvement of organizational practices, expectations, and responsibilities of City project managers, management, and others involved.
Overall, the practices and tools provided through this guide reflect the following key principles:
● Contracting is a partnership, requiring engagement and diligence from both the City and consultants (service providers).
● Service providers bring subject matter experience, technical expertise, frequently professional licenses, and proprietary tools.
● Staff bring local knowledge, including, an understanding of community expectations, sources of available information, City resources, Council priorities, and established practices. While consultants may perform specific tasks, the City retains ownership, accountability, and informed oversight of the work and its outcomes. ● Balancing these perspectives requires engagement, skill, regular training, and teamwork.
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5 Reflecting the common steps through which consultant projects are planned and implemented, this guide focuses on enhancing organizational effectiveness and practices across the typical life cycle of consultant engagements.
3. Precursors to Outsourcing
3.A Annual Budget Cycle Review
On an annual basis, the City Council has two primary touchpoints on overall consultant usage.
These are the annual budget adoption that occurs before the beginning of each fiscal year, and the other is the annual priority setting that occurs at the beginning of each calendar year.
Budgeting for consultant services is typically handled through the annual budget process at an aggregated level, with funding needs appropriated through each department’s Contractual Services line item. Contractual Services currently includes all contract services, so professional services are likely a subset of department line-item budgets and require specific review.
Alternatively, a special funding allocation may be made as a result of a grant or special City Council action.
Each fiscal year, the Office of Management and Budget will issue guidance to departments on budget development. Through each annual budget development process, Departments review Contractual Services line items with the Budget Office and City Manager’s Office to (a) discuss anticipated consultant projects and funding required, and (b) to determine whether fundings would be better allocated toward hiring in-house staff to complete the required work on an ongoing basis. The following considerations can guide this review:
a. Distinguishing Staffing/Augmentation and/both Technical/Subject Matter Experts:
Staffing augmentation contracts temporarily increase workforce capacity without permanent hires. Technical services contracts allow the City to gain technical expertise from firms or subject matter experts who have special skillsets, capabilities, or deep knowledge in specific areas not available in-house. Both types of contracts allow the City to respond efficiently to varying workload demands and specialized project requirements. Lead departments should consult with the City Attorney’s Office and Human Resources Department to ensure the terms of the staffing augmentation align with the City's legal, labor, and operational requirements. b. Ensuring Comprehensive Budget Estimates: Staff time required for project management, oversight, and coordination must also be accounted for in workplans through FTE (full- time equivalent) staff allocation and should reflect realistic estimates that incorporate contingencies and additional services as needed. Absent specific estimates, staff time Item 3
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6 equal to 10-20% of anticipated consultant costs should be allocated for staff project management. If not included in consultant costs, budgets must account for all applicable resources required for anticipated projects such as technology licenses, office space, and vehicles. Including administrative costs and timelines associated with outsourcing is necessary for a comprehensive evaluation of trade-offs. c. Balancing Consultant Services and In-House Staffing: Staff should evaluate where on-call services might be more effective if converted to additional in-house staffing. This may depend on skills required as well as the frequency of services required. Adding staff may be justifiable when the resources involved are expected to be required for 3-5 years or more. Where specialties may be needed, overall consultant costs may be reduced by City staff handling administrative and other elements including community engagement.
The results of this evaluation will be integrated into the existing budget planning workflow and discussed among departments, the Budget Office, and City Manager’s Office in preparation of the annual proposed budget. Appendix A – Professional Services Cost Evaluation provides the overview of the expected additions to the budget review.
The current approach to large contract budget appropriation is an overall review and justification for the entire project. Future budget development will include evaluation of the contract by each line-item.
d. Developing an Initial Scope: Large, complex, or high-risk projects can benefit from development of an initial scope of work for department management and City Manager’s Office (CMO) review. Similar to a budget justification, this would be a short internal summary of the business need, desired outcomes, why consultant support is needed, anticipated deliverables, and the expected roles of city staff versus the consultant. Incorporating this step will help align expectations early, support budgeting and staffing estimates, as well as result in a clearer, more focused final scope of work.
As referenced above, at the beginning of each calendar year the City Council annually sets priorities for the upcoming year. As a part of this process, specific projects (or objectives) may be identified that staff anticipates will require consultant assistance. In order to enable the City Council to select priorities with awareness of consultant needs, staff will include this information as part of the priority-setting process.
3.B Initiating New and Unbudgeted Projects
Consultant engagements may also be initiated outside the annual budget process, typically as a result of City Council direction, involving budget amendments where needed. Where such project assignments arise, departments should use the evaluation method described in Section
4.A to estimate staff allocation required for project management.
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7 At the start of each calendar year, the City Council sets priorities for the year. Given recent increased interest in monitoring the use of consultants, staff will identify priority projects that will likely involve consultants. This enables the City Council to consider this when determining how many and which initiatives should be prioritized for the year.
3.C Financial Tracking of Contracts
Effective in 2026, all professional service engagements are assigned internal order number “90240 - Professional Services” to individual contract requests. This practice will remain in effect while SAP is the current system and will be updated as systems evolve. Staff will provide the City Council a consolidated summary report semiannually to promote ongoing awareness and decision-making.
Private development professional agreements will be excluded from reporting as this activity is exempt from competitive solicitation requirements (Municipal Code Section 2.30.360(h). These agreements are funded wholly by private developers for private development related studies and services. Community Services Department service contracts for specific individual’s unique skills or creative output such as recreation instructors, art instructors and performers will also be excluded from the reporting and Legal Services contracts that are exempt per PAMC
2.30.360(g).
Master agreements are consultant contracts established for “as needed” or “on-call” services, where a contract is established without a specific scope of services. The City has used master agreements as an efficient means of completing the procurement process in order to have one or several consultants ready to start when specific projects are initiated. Task orders are then issued to the consultant with a specific scope of services and budget. In order to ensure consistent practices, all task orders valued at $100,000 or higher require City Manager approval. This threshold will be periodically reviewed and subject to change (Appendix B – Task Order Template).
4. The Outsourcing Process
4.A Developing the RFP Scope of Services
Once the decision to engage consultant services has been made, a scope of services must be developed in order to conduct a Request for Proposals (RFP) or other solicitation. In the infrequent case of a consultant being pre-selected, this section nonetheless provides guidance for negotiating a scope of services that supports an effective outcome and staff meeting project management responsibilities.
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8 The scope of services is a critical element of successful consultant engagement, as it provides the “roadmap” of tasks and deliverables to be provided. It also represents a critical step at which expectations of the products and services can be confirmed. Failure to adequately anticipate these expectations can lead not only to unsuccessful outcomes, but also the need to repeat steps and incur unnecessary costs.
Project managers should develop scopes that are outcomes-driven and reviewable, with particular attention to the following:
a. Describe deliverables with measurable indicators of sufficiency. b. Identify key milestones and timelines, including any critical deadlines. c. Structure compensation to the completion of defined tasks. d. Specify internal (“administrative”) reviews of draft deliverables where applicable, including sufficient lead time.
e. Specifically address stakeholder engagement including public meetings (see Section
4.B4.B below).
f. Where workable, structure scopes to facilitate knowledge transfer through tactics such as staff shadowing, co-facilitation, and training deliverables, especially for recurring work.
g. Consider the role of intellectual property and Artificial Intelligence in the project with clarity regarding ownership and access to work products following project completion.
It is common that scopes from prior contracts are used as a starting point. However, it is critical that such drafts be updated for current circumstances and to address the issues above.
Staff may wish to consult peer agencies for examples and lessons learned. Staff may also leverage the Scope Template Library (Appendix C), which includes examples demonstrating effective project structure and risk allocation, and productive peer reviews received prior to RFP issuance. If staff have examples of excellent work to contribute to the library, they may contact the CMO coordinator to add them to the appendix SharePoint folder.
A key consideration in developing a scope of work is defining the role of City staff relative to the consultant. In particular, the scope should reflect how staff will bring local knowledge (possessed by staff or other stakeholders) to inform the work. Here are elements to consider in defining the scope:
a. Identify prior work such as studies or plans that should be shared and reviewed with the Item 3
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9 consultant.
b. In addition to direct references, are there indirect but relevant recent events or circumstances that the consultant should be aware of? Consider “onboarding” meeting(s) between the consultant and key stakeholders early in the work to provide the consultant with any needed context.
c. The scope of services should provide an initial outline of stakeholder engagement, to be refined collaboratively with the consultant, as the City will typically have a better sense than the consultant of community expectations and more effective communication methods. This is described further in the next section. d. Clearly identify expected products/deliverables, such as memos, reports, and plans, including progress drafts. Also set expectations for City review of draft products and the consultant’s responsibility to respond to comments, both in terms of timeframes as well as the expected handling of feedback to the consultant. Scopes should articulate any essential stakeholder touchpoints, and where applicable, how this feedback may affect subsequent steps. The level of detail to be provided in deliverables (such as format and analysis detail) should be specified at the outset to the extent applicable to the project. e. The requested deliverables should be structured in a way that is easily translated to contract sections. Task 1 should correspond to a similar label in the contract, and have its pricing clearly marked, and so on. This is meant to minimize back and forth with Purchasing and the consultant later in the process.
Artificial Intelligence (“AI”) is playing an evolving and increasing role in the workplace, and the potential effect on the scope of service should be considered: Might some of the required work be generated by AI and how will this be quality-checked? How would this affect the cost of the required services? Questions such as these should be considered when developing the scope of work. The City Attorney’s Office and Procurement staff have developed general disclosure requirements to be incorporated into RFPs.
4.B Selection of Contract Terms and Conditions
Once a consultant is selected, the City and consultant must enter into a contract with the consultant before work can begin and payment for services can be made. Project managers should familiarize themselves with the contract terms and conditions that their consultants will be required to meet. Pre-approved contract templates are available from Purchasing and can be found in Appendix D. The template selected will depend on the type of engagement with the consultant (e.g., professional services, IT services). The scope of services, timeline of completion, and payment terms will be included as contract exhibits.
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10 The overall value of the contract will determine who has authority to approve the contract. In addition, all contracts over $25,000 will need to be approved as to form by the City Attorney.
Consult with the City Attorney’s Office if any changes to the template are requested by the consultant.
The determined scope of the project requires approval of the relevant department director or their designee before proceeding.
4.C Scoping Community Engagement
Community engagement is a central element of virtually all studies and planning efforts in Palo Alto. It is therefore important to ensure the consultant is aware of the nature and extent of community engagement expected. Department staff should consult with the City Manager’s Office communications staff to review the community engagement plan for a project. Project managers should use the Project Coordination Plan Worksheet (Appendix E) to outline anticipated community engagement efforts. Additional resources and training on community engagement are under development.
Roles of the consultant and staff in community engagement should be carefully considered. In general, staff should take the primary responsibility for identifying key stakeholders and arranging for meeting venues and logistics. Any online engagement tools should be coordinated with the City Manager’s Office communications staff.
Palo Alto is uniquely fortunate to have residents and other community stakeholders with specific expertise and interest in volunteering to assist the City on related initiatives. Should project managers encounter a situation in which unique resident involvement might apply, they should consult with the City Manager’s Office to structure such involvement. The City’s goal would be to leverage resident expertise to support engagement and project success while ensuring objectivity and appropriate access to products in progress.
To ensure comprehensive notification of community stakeholders, project managers should reference the developed Community Engagement Guide (Appendix F). It outlines standards for what level of community engagement is required for different project types. Staff should reference the training in community engagement strategies to develop a clear scope of work that outlines project goals and anticipated levels of effort.
Engagement should be calibrated to decision points and led by City staff. Project managers should define who needs to be informed, consulted, or asked to decide, and they should schedule outreach at milestones where input will shape outcomes. Materials should be Item 3
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11 accurate, accessible, and consistent with Council-adopted policies; consultants should support creation and logistics while the City sets the message and remains the primary voice of the project. The handling of stakeholder feedback should also be intentional, with responsibilities assigned as appropriate to the consultant for documenting comments and responses to comments.
4.D Finalizing the Scope of Services
Once drafted, project managers should consider the level of stakeholder engagement that should be undertaken on the RFP itself prior to issuance. In some cases, a formal review up to City Council approval of the scope of services may be warranted to ensure that the scope aligns with expectations of the work product. If required approvals are uncertain, departments should consult the City Manager’s Office.
4.E Service Provider Selection and Potential Efficiencies Consultant selection should prioritize expertise, cost, and alignment with project objectives.
The selection process is managed by the Administrative Services Department Purchasing Division, and references and training for staff to navigate this process are provided in the Purchasing Manual (Appendix G). In particular, Chapter 8 – Professional Services provides comprehensive guidance and procedures for the procurement of consultant services.
For efficiency, the City may also procure services by utilizing the competitive bidding process undertaken by another government entity (known as Piggybacking) or through a joint purchase agreement with one or more public agencies (Cooperative Purchasing).
Piggybacking: The City's utilization of the competitive solicitation process undertaken by another public entity to award a contract for goods or services.
Cooperative (Joint) Purchasing (Co-op): Procuring goods or services through a regional or national purchasing cooperative or by directly joining with one or more public agencies.
These alternative procurement methods are permissible, subject to the Municipal Code and requirements including that the other government entity or Cooperative conducted a competitive solicitation that are substantially the same as those required by the City, and that process must have been substantially similar to the competitive bidding requirements; the City will realize overall value; and that the awarding agency is preferably governed by California law.
Before moving forward with a Piggybacking process or Cooperative agreement, the Procurement Officer and/or the City Attorney’s Office must evaluate the timeliness and the ability to negotiate additional pricing reductions or more favorable contract terms (e.g., liability, indemnification, performance guarantees) beyond those in the original award.
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12 to secure services. Master Agreements are consultant contracts established for “as-needed” or “on-call” services, where a contract is established without a specific scope of services. This can be an efficient means of completing the procurement process in order to have one or several consultants ready to start when specific projects are initiated. Task orders are then issued to the consultant with a specific scope of services and budget.
Project managers should consult with the Procurement team on the applicability of these procurement options.
4.F Handling Inadequate Proposals
At various points in the consultant selection process, circumstances can arise that warrant a change in direction. Project Managers should evaluate these circumstances and take appropriate action to balance tensions between completing tasks and reconsidering the path forward. During the outsourcing process, some of the issues that can arise include:
• Whether budget allocations are sufficient to achieve project objectives; • Whether consultant interest in a project is sufficient to generate competitive and worthwhile proposals;
• Whether the project scope is sufficiently defined to allow consultants to prepare responsive proposals;
• Whether significant changes in project priorities, funding, schedule, or other requirements have occurred since the solicitation was developed; • Whether the proposals received demonstrate the qualifications, experience, or technical approach necessary for successful project completion.
4.G Finalizing the Scope of Services and Contract
Following selection, the selected proposal is translated into the final scope of services attached to the consultant’s contract. For simple projects this could be the consultant’s proposal as submitted. For more complex projects, however, staff will discuss and finalize the scope of services with the consultant. This provides and opportunity to confirm that the final scope of services addresses:
a. Key elements described in Section 4.D, such as deliverables and progress payments; b. Project staffing and key personnel;
c. Confirm the expected value of deliverables relative to cost, with an understanding of the consultant’s cost to produce the needed work versus work produced previously for other clients as well as AI-generated products;
d. Confirm community meetings and other engagement, boards and commission reviews, council meetings;
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13 e. Comparison of costs relative to other similar work, using both internal and external references.
5. Contract Management
Effective contract management requires clear and mutually reinforced alignment between milestones, deliverables, payments, and other contract terms.
5.A Budget Adherence and Invoicing
The handling of invoices is an integral part of the client-consultant relationship. Progress payments demonstrate the City’s satisfaction with consultant work, consistent with the scope of services and compliance with agreed-upon terms. Project managers should verify invoice consistency with the following:
a. Payments for the invoiced period (e.g. monthly) should be consistent with progress toward deliverables. This should be confirmed quantitatively if provided for in contract terms, or qualitatively if not.
b. Project managers should reconcile invoices with contract milestones, verify hourly rates, and maintain a concise change log that explains scope and budget adjustments.
c. Expiration checks should be calendared, and amendments initiated early to prevent service gaps.
d. Project managers should also track payments to ensure timely payment of invoices. e. Ensure any new tasks are properly approved before authorizing work to proceed. f. At the department level, shared dashboards should show contract value, burn rates, pending invoices, and critical dates.
One of the leading causes of increased consultant costs occurs through the inconsistent handling of change orders, amendments, and additional work. The City’s Purchasing Manual (Appendix G) defines how to properly organize and execute these auxiliary steps that can become necessary for project success. The Public Works Consultant Management Guide (Appendix H) outlines things to look out for and contingencies to manage.
Contract Management Training Resources and Templates are provided in Appendix I. Invoice and Payment Tracking Tools are provided in Appendix J.
5.B Performance Management, Quality Control, and Timeliness Performance management refers to the activities involved in ensuring quality deliverables and Item 3
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14 timeliness. Expectations should be measurable and reinforced in both the scope and working cadence.
The project kick-off meeting is an important first step in the successful completion of a consultant engagement. This meeting should include the primary points of contact on both the City’s and consultants’ teams and review the scope and key understandings needed for the project. See Kick-off Meeting Agenda Template (Appendix K). Among the topics to be covered are:
a. Review scope of services, schedule, and deliverables as well as roles, responsibilities, and expectations. The RACI (Responsible, Accountable, Consulted, Informed) matrix is one such method for clarifying task ownership by mapping each project task to a team role to reduce redundancies and unclaimed responsibilities. b. Discussion of escalation paths - who to contact for inadequate responsiveness, delays in projects and performance concerns. Establish standing meetings or other means of progress coordination.
c. Documentation responsibilities, including agendas and meeting notes. d. Lead time and turnaround expectations for scheduling meetings, review of deliverables. e. Discussion of any key contract terms, if needed.
Project managers should ensure that consultant work products are tailored to the City’s specific project, policy context, and stakeholder conditions. Project managers should establish the City’s expectation for originality in work products and ensure against the appearance of repackaged materials from prior engagements. In the case that deliverables appear insufficiently customized, the project manager should request revision before accepting the product.
While projects are intended to proceed smoothly, it is common for issues to arise. It is, therefore, important for protocols to be in place and proactive management to address issues before they threaten successful and timely project completion. Escalation paths provide important secondary points of contact if needed due to disagreements or performance concerns from either the City or consultant. Escalation paths may also be reinforced contractually, including implications for delays in the case of time-sensitive projects. While strict enforcement can be challenging in a collaborative environment, contract terms can reinforce expectations when needed. See example letters and guides for escalating inadequate consultant performance in Appendix L.
5.C Managing High-Visibility and Controversial Projects A key challenge that can arise in consultant engagements is how the work can proceed through Item 3
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15 projects that involve a high level of community scrutiny or controversy. This can range from consultant-staff disagreements involving professional differences to public criticism of the work that can become personal in nature.
The City hires consultants to take on complex and contentious projects, to leverage their expertise that staff do not have, to provide objective and expert advice. The projects provide an outlet for residents and other stakeholders to express their advocacy, sometimes deeply emotionally expressed. Consultants often absorb a portion of that pressure, allowing staff to continue to maintain productive relationships with stakeholders they must work with on other issues.
To help navigate these dynamics, the following practices are particularly important:
a. Set expectations early in the engagement for quality of deliverables and responsiveness to issues as they arise.
b. Maintain regular progress meetings involving management from both the consultant and City, with meeting summaries and action items distributed for broader awareness and aligned goals.
c. Progress payments are linked to acceptance of deliverables, as well as payment turnaround times monitored.
d. Interdepartmental review, including CMO as well as any departments with relevant expertise are scheduled in advance to avoid delays. Project managers should consult with CMO staff to review applicability.
e. Consider a two-step process for City Council, Boards and Commissions using study sessions or committee hearings prior to action, in order to • Provide structured opportunities for technical clarifications and response from the consultant and staff, and
• allow the body to deliberate on policy direction after establishing a shared baseline of understanding
f. Structure the handling of public feedback Consider public comment period on draft products to ensure transparent community review. Particular attention should be paid to handling of comments received and other stakeholder feedback, including City Council feedback received through study sessions as well as commissions and community members. As applicable, a structured approach to capturing comments and documenting responses to comments should be incorporated into the consultant scope of services.
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16 5.D Stakeholder Engagement
When consultant projects involve stakeholder engagement, in most circumstances staff must remain the primary interface with the community. Adequate time for stakeholder feedback, responses to this feedback, and adjustments to next steps should be anticipated and built into schedules.
Stakeholder engagement should proceed as described in the Project Coordination Plan Worksheet (Appendix E) referenced in Section 4.B. Should issues arise that require variance from this plan, project managers and department management should determine whether revising the worksheet would be prudent to support project completion. Approaches and methods that the City uses for community engagement are broad and tailored to the audience, type of input sought, and timing available to gain the feedback to help inform decision-making.
5.E Closeout and Evaluation
Project closeout should include confirmation of objectives met, review of team performance, and feedback to consultants. A standardized evaluation form ensures consistent reflection and improvement. This could additionally include a periodic meeting with key city staff project participants to develop lessons learned for continual training for subsequent projects.
Closeout should confirm delivery, capture learning, and inform future selections. Staff should verify that all deliverables are accepted, files are archived to the designated repository, and intellectual property and data handoffs are completed. A short performance evaluation should record quality, timeliness, collaboration, and budget stewardship and should be shared with the consultant along with any constructive feedback (Appendix M – Consultant Completion/Evaluation Template). When appropriate, a lessons-learned note should identify process improvements for internal teams and should be indexed so that future scopes and evaluations can reference it.
6. Appendices *Finalization of appendices is currently in progress and therefore not included* A. Professional Services Cost Evaluation
B. Task Order Template
C. Scope Template Library
D. Purchasing Contract Templates
E. Project Coordination Plan Worksheet
F. Community Engagement Guide
G. Purchasing Manual
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17 H. Public Works Consultant Management Guide
I. Contract Management Training Resources
J. Invoice and Payment Tracking Tools
K. Kickoff Meeting Agenda Template
L. Sample Consultant Performance Escalation Letter
M. Consultant Completion/Evaluation Template
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18 Item 3
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City of Palo Alto
Best Practices in
Consultant Management
December 8, 2025
ATTACHMENT B: BEST PRACTICES IN CONSULTANT MANAGEMENT
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2 Best Practices in Consultant Management
• Comprehensive City study currently underway to ensure high quality services are delivered through the engagement of professional consultants
• City study extends beyond procurement and contract management processes for a more wholistic approach
o Strategically and flexibly leverage contracted consultants to perform studies to address priorities while building organizational capacity • Given a dearth of available best practice information in this area, Palo Alto’s work is leading edge
• Baker Tilly analysis meant to augment City study by recommending enhancements to certain aspects of the consultant management life cycle
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3 Palo Alto Major Area of Consultant Focus
• Professional services related to studies, plans, and similar scopes of work
oMajority of Council priority objectives rely on consulting services to produce these studies
oMost work produced in this area requires specialized local knowledge and robust community engagement
oMany of the studies require expertise beyond that of in-house staff oStaff’s local knowledge and skill in managing contracts are essential components to ensure success in effective consultant management Item 3
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4 Palo Alto Consultant Engagement Process and Areas for Reinforcement (October 22, 2025, Report 2507-4924)
Outsourcing
Precursors
Decision to
Outsource
Determine
Scope of
Services
Community
Engagement
Approach
Service Provider
Selection
Managing
Contingencies
Communication
and
Collaboration
Contract
Management
Performance
Management
Risk
Management
Closeout and
Evaluation
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Baker Tilly Areas of Focus, Reframed (Life Cycle Phases) • Planning and Solicitation
o Determination of solicitation method (request for proposals or qualifications)
o Scope of service development, including approach to community engagement
o Strategic, targeted service provider selection
o Effective scope and fee discussions and negotiation of mutually agreeable terms and conditions
• Contract Administration and Management
o Facilitated communication and collaboration
o Contract closeout and evaluation
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Professional services related to studies, plans, and similar scopes of work: Planning and solicitation phases
Recommendation 1: Leverage the use of
prequalification programs to create a stable of
consultants and subconsultants.
• Can include requirements for local
knowledge
• Can be based on professional service
specialty such as strategic planning or
economic/fiscal analysis
• Can include consultant, sub-consultant
pairings as a submittal option
• Can focus on area/degree of specialization
such as community engagement
• Selection should be based on demonstrated
competence, work history, etc.
• Can include negotiated hourly rates
Local
Knowledge
Professional
Service
Specialty
Professional
Service Sub-
specialty
Area of
Specialization
(Community
Engagement)
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Professional services related to studies, plans, and similar scopes of work: Planning and solicitation phases
Recommendation 2: Use best practice procurement tools to develop strategic relationships with consultants.
• Can incorporate aspects of strategic plan goals and objectives (Strategic Procurement Planning)
• Can include formal processes to identify and contract with consultants based on strategic, longer-term relationships (Supplier Relationship Management)
• Can include supplier diversity and sustainability goals • Can incorporate elements of scope/opportunities for staff to participate in community engagement facilitation or other tasks to help build inhouse capacity, knowledge and knowhow
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Professional services related to studies, plans, and similar scopes of work: Planning and solicitation phases
Recommendation 3: Use a
consistent task / milestone /
deliverable-based template
approach that clearly ties City’s
acceptance of task completion
to progress payments.
Recommendation 4: Ensure that
city-generated scopes of work
are consistently used in
consulting contracts.
Scope Item(s) Cost Proposal Alignment
Task 2: Community Engagement Cost of Task 2:
$25,000
Subtask 2a:
Conduct one community workshop
Cost of subtask 2a:
$7,500
Deliverable(s):
1. Workshop agenda materials
2. Memorandum of workshop
results
Review and Accept Deliverables:
A. Review draft memo of workshop
results and finalize
B. Accept final memo and
authorize payment
Subtask 2b:
Conduct one community survey
Cost of subtask 2b:
$17,500
Deliverable(s):
1. Survey
2. Analysis of survey results and
associated takeaways
Review and Accept Deliverables:
A. Review draft survey and survey
results and finalize
B. Accept final analysis of survey
results and authorize payment
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Professional services related to studies, plans, and similar scopes of work: Planning and solicitation phases
Recommendation 5: Incorporate mutually
agreeable terms and conditions for resolving
professional disagreements or mediating disputes
in consultant contracts.
• Should discuss expectations during contract
negotiations
• Can include techniques such as Alternative
Dispute Resolution (ADR)
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Professional services related to studies, plans, and similar scopes of work: Contract administration and management
Recommendation 6: Establish a regular meeting cadence with the consulting team’s project manager to facilitate efficient project completion and enhance collaboration and clarity in communication. • Should include short prescheduled check-in meetings every other week to discuss project/deliverable status, budget, challenges, and consultant performance
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Professional services related to studies, plans, and similar scopes of work: Contract administration and management
Recommendation 7: Implement processes and
procedures to evaluate consultant performance.
• Should include performance-based discussions
during engagements
• Can include a structured framework, i.e., a
balanced scorecard approach
• Can incorporate community feedback
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: City Manager
Meeting Date: October 5, 2026
Report #:2609-6716
TITLE
Approval of Business Retention, Expansion, and Attraction (BRE/A) Strategy as Recommended by the Economic Development Committee: CEQA – Not a Project
RECOMMENDATION
The Economic Development Committee and staff recommend approval of the 2026 Business Retention, Expansion, and Attraction (BRE/A) Strategy.
EXECUTIVE SUMMARY
The Economic Development team has developed a 2026 Business Retention, Expansion, and Attraction (BRE/A) Strategy to create a sustainable, resilient, and thriving local economy characterized by a strong sense of identity in Silicon Valley. On January 24, 2026, the City Council reached consensus on adopting a 2026 economic development priority titled, “Enhance Business Vibrancy” at the Council Retreat on values, priorities, and objectives. This reflects the importance of economic development and the intersection between a healthy local economy and the City’s long-term fiscal sustainability. The City continues to build from the current Economic Development Strategy to achieve the City Council’s goals and priorities.
BACKGROUND
Economic development is taking a proactive approach to advocating for Palo Alto’s business and entrepreneurial ecosystem that is reflective of the population it serves. Economic development is a concerted effort by the Palo Alto City Council to ensure that the business climate is healthy. Originally scheduled in March (deferred to accommodate time critical items), on August 26, 2026, the Economic Development Committee voted unanimously to recommend BRE/A Strategy approval by the City Council. Implementation actions are already well underway.
ANALYSIS
A Business Retention, Expansion, and Attraction (BRE/A) Strategy has formalized Economic Development’s Work Plan for calendar year 2026. The BRE/A Strategy consists of identifying key industries for retention, expansion, and attraction, proactive business engagement to build Item 4
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strategic partnerships, determining areas where the City of Palo Alto can gain a competitive advantage, and providing support for a favorable business environment that can lead to increased employment opportunities and overall economic prosperity. The BRE/A Strategy will result in preserving and enhancing the local business climate to ensure the City is fiscally stable to provide essential services that the Palo Alto community deserves.
The BRE/A Strategy includes two tactical categories: Enhance Business Vibrancy and Engagement and Promotions. While the BRE/A Strategy is meant to develop a formal business retention, expansion, and attraction program, other key components include strengthening the tax base, developing a competitive advantage, real estate assets, business and community engagement, and promotions and marketing through activation activities and events as well as enhancing the Palo Alto brand in innovation and entrepreneurship globally. The BRE/A Strategy’s implementation actions are outlined below and more in depth via Attachment A:
BRE/A Strategy.
Enhance Business Vibrancy:
Strengthening the Tax Base
• Sales Tax, Property Tax, and Transient Occupancy Tax Revenue Bases - Corporate Visitation Program
• New Investment Opportunities - Financial and Non-Financial Incentives Competitive Advantage
• Venture Capital, Incubators, and Accelerators - VCs, Incubators/Accelerators and Foreign Direct Investment
• Business Technical Assistance - Guide Businesses to Build Capacity and Reach Business Goals
Real Estate Assets
• Real Estate Network - Property Owners/Managers and the Real Estate Brokerage and Development Communities
• City Real Estate Assets - Leverage the City’s Real Estate Assets for Revenue Generation Engagement and Promotions:
Business and Community Engagement
• Public-Private Partnerships (P3s) - Build Trust/Collaboration for Effective Partnerships • Entertainment Zone Ordinance - Approved by the City Council in late spring 2026 Promotions and Marketing
• 2026 Activities and Events - Cultivate Vibrant Public Spaces that Attract Investment • Enhance the Palo Alto Brand Through Innovation and Entrepreneurship Branding Item 4
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FISCAL/RESOURCE IMPACT
The ten BRE/A Strategy implementation actions described above and specifically in Attachment A will be completed with staff time as part of the 2026 Economic Development work program will not require any additional funds and currently scoped.
STAKEHOLDER ENGAGEMENT
Staff has received support for the proposed BRE/A Strategy from the Chamber of Commerce, especially as it relates to business retention, branding, and reestablishing the Downtown Business Improvement District (BID) for cleanliness and public safety.
On August 26th, representatives from the business and real estate communities expressed support for the BRE/A Strategy at the Economic Development Committee meeting. Public comments shared at the meeting included, but is not limited to: support for the Retail Vitality Ordinance and the BRE/A Strategy, interest in Ramona Street placemaking strategies, regional competitiveness, connecting land use and economic development, question the benefits of reactivating the BID, illustrating the return on investment on City Council and Planning and Transportation Commission policies, and seek to integrate economic development consideration into staff and the City’s decision-making bodies.
Economic Development Committee members also shared comments, which include but are not limited to the following: appreciation for the BRE/A Strategy moving forward and inquired about next steps, new investment opportunities for office, commercial, and hotel development, seasonal markets and pop-up retail/events to invigorate business districts, enhancing Palo Alto’s brand through swag, and to ensure that staff does not ignore the jobs and housing ratio.
ENVIRONMENTAL REVIEW
The receipt and acceptance of the BRE/A Strategy is not a project under the California Environmental Quality Act (CEQA) because the BRE/A Strategy has no potential to cause a significant effect on the environment. CEQA Guidelines section 15061(b)(3).
ATTACHMENTS
Attachment A: BRE/A Strategy
APPROVED BY:
Ed Shikada, City Manager
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City of Palo Alto - City Council
Business Retention, Expansion, and Attraction (BRE/A) Strategy Attachment A
The B usiness Retention, Expansion, and A ttraction (BRE/A ) Strategy is bounded by two strategic categories: Enhance Business Vibrancy and Engagement and Promotions. The two categories are supported by ten Economic Development focused implementation actions for calendar year 2026, which are summarized below.
Enhance Business Vibrancy
• Business Retention, Expansion and Attraction (BRE/A) Strategy – Enhancing Business Vibrancy is a 2026 City Council priority.
• Strengthening the Tax Base
o Sales tax, property tax, and transient occupancy tax revenue bases - Establish a formal Corporate Visitation Program. Review quarterly data for sales and transient occupancy tax revenues and bi-annually for property tax revenues to identify and respond to changing trends. Performance Metric: Convene up to three of the top twenty -five sales tax generators by the end of 2026 with the goal of retaining businesses that enhance the City’s long -term fiscal sustainability on a quarterly basis.
o New Investment Opportunities - Encourage new investments that create economic impact, multiplier effects and sales tax revenue. Performance Metric: Staff will explore financial and non-financial incentives and develop a list to support , retain , and grow business opportunities to drive economic vitality by Quarter 3 2026, and present to the Economic Development Ad Hoc Committee for review and feedback.
• Competitive Advantage
o Venture Capital, Incubators, and Accelerators - IDA Ireland, Japan Innovation Campus (JIC), Consulate General and Innovation Centre Denmark, Nordic Innovation House, Flanders Investment and Trade (FIT), The Hive, Archimedes Labs, StartX, Venture Dock, etc. Performance Metric: Meet with at least four Venture Capital investment firms, incubators, and accelerators to develop foreign direct investment (FDI) opportunities and continue to cultivate the innovation and entrepreneurial ecosystem by the end of calendar year 2026.
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o Business Technical Assistance - Performance Metric: Partner with the Silicon Valley Small Business Development C enter (SV SBDC), Small Business Administration (SBA), SCORE, Chamber of Commerce, etc. to host two small business (live and virtual) training workshops in 2026.
• Real Estate Assets
o Real Estate Network - Property Owners, Real Estate Brokerage , Property Managers, and Development Community Network to foment relationships to fill vacant spaces and attract a mix of retail, office, and industrial businesses to enhance diversity of businesses for a broader customer base. Performance Metric: Economic Development will host a Real Estate Broker roundtable by Quarter 4 2026 to learn about new opportunities, market trends, new uses, permit processes, and align development efforts with market needs. o City Real Estate Assets – Leverage City’s real estate assets for revenue generation. Performance Metric: Economic Development will execute a lease with Nobu for the use of 20 valet services parking spaces in Parking Lot Q by Quarter 3 2026 to generate new revenues for the City.
Engagement and Promotions
• Business and Community Engagement
o Public-Private Partnerships - Engagement fosters trust and collaboration, allowing for effective partnerships that leverage resources for community projects - Performance Metric: Economic Development will promote the Retail Vibrancy Ordinance reflecting flexibility in land use /zoning to the r eal estate network starting in Quarter 3 , establish two office hour events on California Avenue and Downtown for additional business and community engagement opportunities, and reengage with business and property owners via Downtown/University Avenue Stakeholders meetings to address public safety and cleanliness through a Business Improvement District (BID), and University Avenue infrastructure improvements by the end of 2026. o Open Container Resolution and Entertainment Zone - Performance Metric:
Economic Development presented to the Economic Development Ad Hoc Committee to obtain a recommendation for the City Council’s consideration of a California Avenue Entertainment Zone Ordinance in Quarter 2 2026.
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• Promotions and Marketing
o 2026 Activities and Events - Performance Metric: Economic Development will partner with businesses, Palo Alto Recreation Foundation, and Chamber on at least 3 California Avenue activities (Thursday Live/FIFA World Cup) and promote the hospitality sector (digital/print) during the 2026 sporting and concert events timeframe.
o Innovation and Entrepreneurship Branding - Enhance the Palo Alto brand in innovation and entrepreneurship globally. The Palo Alto brand i s intrinsically tied to its proximity to technology businesses, world-class institutions, and its creative workforce. Performance Metric: Economic Development will partner with foreign investment offices to strengthen global partnerships through foreign direct investment (FDI) and destination marketing. A destination marketing website will be developed and launched in early Q uarter 4 2026 in collaboration with the Chamber of Commerce.
The BRE/A Strategy lays a foundation for creating a vibrant, resilient, inclusive, and diversified economic future. Notwithstanding, the BRE/A Strategy highlights the need for a future Economic Development Strategy that serves as a policy document that will guide the City of Palo Alto’s economic development activities for a designated period. Should the City Council consider a new Economic Development Strategy , it would align with the City’s Comprehensive Plan and the Economic Development Element, Sustainability and Climate Action Plan ( S/CAP), and other City policy documents . A new Economic Development Strategy will serve as Palo Alto’s road map to grow and diversify the local economy, support businesses and workers, and improve the quality of life for Palo Altans.
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Community Services
Meeting Date: October 5, 2026
Report #:2608-6603
TITLE
Approval of Letters of Intent with Avenidas and HeartFit for Life for collaboration on a long- term public-private partnership for expanded services for aging adults at the Cubberley site; CEQA status – Mitigated Negative Declaration Approved on May 19, 2026.
RECOMMENDATION
Staff recommend the City Council approve and authorize the City Manager to execute Letters of Intent (LOIs) with Avenidas (Attachment A) and Cardiac Therapy Foundation / HeartFit for Life (Attachment B) for collaboration on long-term public-private partnerships for expanded services for aging adults at the Cubberley site.
EXECUTIVE SUMMARY
City staff and the Cubberley Ad Hoc committee are coordinating with community partners to advance elements of the Cubberley project using a public private partnership model. A proposed partnership with Avenidas would expand programming and services for aging adults, including the Avenidas Chinese Community Center currently located at Cubberley. A partnership with Cardiac Therapy Foundation, known as HeartFit for Life or HeartFit in the community, would continue cardiac therapy and rehabilitation programs for adults. Staff recommend Council approve Letters of Intent with Avenidas (Attachment A) and HeartFit for Life (Attachment B) to formalize a joint commitment to advance these project components.
BACKGROUND
The City is advancing a plan to redevelop a 15-acre portion of Cubberley, guided by the Cubberley Conceptual Master Plan and associated CEQA environmental document adopted by the City Council on May 18, 20261. The City and the Palo Alto Unified School District (PAUSD) 1 City Council, May 18, 2026; Agenda Item #13; SR #2512-5750, https://cityofpaloalto.primegov.com/viewer/preview?id=0&type=8&uid=2a17e949-762d-4b3e-8ba5- f92086da72b0
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have a memorandum of understanding that would enable the City to purchase seven acres to support a reimagined community center and fund school improvements. The City currently owns eight acres at Cubberley; acquiring an additional seven acres would create an opportunity to update the aging facility for the benefit of the community. Funding the land purchase and site improvements could be possible through a combination of funding sources including a ballot measure, nonprofit partnerships, philanthropy, grants, and fees from new development.
On June 8, 20263, the City Council voted to place a ½ cent (0.50%) Sales Tax (Transactions and Use Tax) measure on the November 3, 2026 ballot. A simple majority (50% plus 1) vote is required to pass. The Council also adopted advisory spending guidelines for proceeds of the Transactions and Use Tax. Resolution No. 102964 states the Council plans to allocate the proceeds to purchase the seven acres and implement part of the first phase of the Cubberley Conceptual Master Plan to modernize aging buildings, expand the amount of green space, and invest in spaces that provide recreation and culture. The City plans to leverage other funding sources, including investments from community partnerships and fees from new development along with this new revenue to advance the project. It is likely that the City will issue certificates of participation (COPs) or similar financing mechanisms to advance funds for land acquisition and to enable construction to proceed within the first few years after passage of the measure.
More information on Measure J is available at https://www.paloalto.gov/Departments/City- Clerk/Municipal-Elections/November-3-2026-Ballot-Measure-J.
City staff and the Cubberley Ad Hoc committee are coordinating with community partners to advance elements of the Cubberley project using a public private partnership model. Letters of Intent (LOI) have been approved by the City Council with the Friends of the Recreation Wellness Center, December 2, 20245 and with TheatreWorks Silicon Valley for a performing arts complex, February 9, 20266. Staff has recommended that the City Council approve a Letter of Intent with Maker Nexus on September 28, 20267 for development of a community focused maker space for all ages at the Cubberley site, and a further defined term sheet with the Friends of the Recreation Wellness Center. A Letter of Intent with Palo Alto Community Child 3 City Council, June 8, 2026; Agenda Item #14; SR #2603-6081, https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=887096&dbid=0&repo=PaloAlto&cr=1 4 City Council Resolution No. 10296,
https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=887259&dbid=0&repo=PaloAlto 5 City Council, December 2, 2024; Agenda Item #18; SR #2410-3634, https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=83117&dbid=0&repo=PaloAlto 6 City Council, February 9, 2026; Agenda item #11; SR #2512-5774, https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=85859&dbid=0&repo=PaloAlto 7 City Council, September 28, 2026; Agenda Item #5; SR#2607-6546, https://cityofpaloalto.primegov.com/viewer/preview?id=0&type=8&uid=f6d6e0aa-ee64-46d5-bd50- 0c01c18d2011
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Care is also being discussed and anticipated to be presented for City Council approval in late October. These LOIs are intended to demonstrate the City’s intent to advance certain elements of the Cubberley project through partnering with organizations that provide a community benefit and share in project costs. Additional agreements will be necessary to establish the City’s and partners’ commitments as plans develop.
There has been extensive foundational work completed to support the advancement of the Cubberley Project, including several actions by the City Council. Attachment C shares a summary of actions to date and the history of the Cubberley site.
ANALYSIS
Public Private Partnerships provide an opportunity to advance elements of the Cubberley project through a combination of City and private investment while offering valuable programs and services to the community. Several community nonprofit organizations have expressed interest and both staff and members of the Ad Hoc are engaging in conversations with potential partners. A Letter of Intent establishes a framework for future actions and outlines mutually cooperative strategies to guide ongoing discussions on key terms and conditions of future agreements.
Both Avenidas and HeartFit for Life (HeartFit) are current tenants at Cubberley and lease space from the City, while HeartFit also leases space at Cubberley from PAUSD. Both organizations are interested in continuing their tenancy through a long-term partnership with the City. While each organization operates its own programs, their shared mission to improve the lives of adults, particularly older adults, provides opportunities to share spaces and coordinate programing. In consideration of their shared values of supporting healthy lives of aging adults, Avenidas and HeartFit are exploring ways in which the two organizations could collaborate on future shared space and other resources.
Avenidas
Avenidas provides essential programs and services that support the well-being of older adults through a longstanding agreement with the City of Palo Alto. Its offerings include social services, health and wellness programs, caregiver support, enrichment activities, volunteer opportunities, and community engagement. Avenidas has long operated from its location at 450 Bryant Street in Palo Alto and, since 2018, has operated the Avenidas Chinese Community Center at Cubberley. Expanding Avenidas’ presence at Cubberley would support not only the Chinese Community Center but also increase access to programs and services currently available only at the Bryant Street location. As Palo Alto’s older adult population continues to grow, there is an increasing need for accessible, appropriately designed, and geographically distributed space that supports healthy aging.
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HeartFit For Life
HeartFit for Life has operated cardiac therapy and rehabilitation programs at Cubberley since 2003, helping adults live longer, healthier lives. The organization serves more than 300 participants annually, with an average participant age of 76. Most participants are age 60 or older, and more than half are Palo Alto residents. A partnership with HeartFit would provide dedicated space for HeartFit’s programs while allowing shared spaces to support additional City and community-based programs and services that promote health and well-being.
Following approval of the LOIs, the City will establish terms for a future agreement with each organization to include cost sharing, fundraising goals, timelines, management structures, and other terms.
FISCAL/RESOURCE IMPACT
There is no fiscal impact associated with approval of this LOI, as it is not a legally binding agreement. Future agreements to further refine commitments could include fundraising goals, cost sharing, and operating agreements and would be brought forward to Council for review and consideration.
STAKEHOLDER ENGAGEMENT
Community outreach and stakeholder engagement efforts for the project have been extensive and remain a central component of the overall process. Engagement with community partners has been ongoing and is intended to understand which community organizations may have an interest in contributing financially to development of the site while bringing exciting community programs and events to Cubberley. Providing space for people of all ages and abilities where everyone belongs and feels welcome is part of the vision for a new community center at the Cubberley site.
ENVIRONMENTAL REVIEW
The Council adopted an Initial Study/Mitigated Negative Declaration for the Cubberley Conceptual Master Plan on May 19, 2026 (SCH Number 2026030129).
ATTACHMENTS
Attachment A: Letter of Intent between the City of Palo Alto and Avenidas Attachment B: Letter of Intent between the City of Palo Alto and HeartFit for Life Attachment C: Background on Cubberley Project
APPROVED BY:
Kristen O'Kane, Community Services Director
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Letter of Intent for the Mutual Cooperation between the City of Palo Alto (hereinafter “ the City” or “CPA” ) and Avenidas, a nonprofit 501(c)(3) charitable organization incorporated in the State of California.
This Letter of Intent establishes the mutual interest of the City of Palo Alto and Avenidas in advancing a long-term public-private partnership to establish dedicated space for older adult services at the Cubberley Community Center site.
Advancing a Memorandum of Understanding with the Palo Alto Unified School District (PAUSD), the City is master planning a 15-acre portion of the Cubberley site, dependent on City acquisition of land from PAUSD. The redevelopment of Cubberley presents a significant opportunity to strengthen Palo Alto’s community infrastructure and ensure access to essential services for residents across all life stages, including the City’s growing population of older adults.
Since its founding in 1969 as the Senior Coordinating Council, Avenidas has partnered with the City of Palo Alto to deliver essential programs and services that support the health, independence, and well-being of older adults. Through its longstanding agreement with the City at 450 Bryant Street, Avenidas provides social services, health and wellness programs, caregiver support, enrichment activities, volunteer opportunities, and community engagement that serve thousands of Palo Alto residents annually. This partnership exemplifies how municipal collaboration with a nonprofit service provider can leverage public investment with philanthropic support, volunteer engagement, and external funding to maximize community benefit.
As Palo Alto’s older adult population continues to grow, there is increasing need for accessible, appropriately designed, and geographically distributed space to support aging well. While Avenidas has operated the Avenidas Chinese Community Center at Cubberley since 2018, current facilities do not fully meet the needs of older adults in Palo Alto due to distance, accessibility, and space limitations. Establishing dedicated space at Cubberley would significantly improve equitable access to services, enhance safety and accessibility, and allow expansion of programs that reduce isolation, improve health outcomes, and support residents in remaining active members of the community.
The City and Avenidas now wish to collaborate and negotiate a long-term partnership to establish a dedicated older adult services hub at the Cubberley site by achieving the following strategic objectives:
1. Establish Dedicated Senior Services Space
Develop and construct or renovate facilities at Cubberley to create dedicated space for Avenidas programs and services, including social services offices, program rooms, gathering spaces, and administrative functions designed to meet the needs of older adults.
2. Explore a Long-Term Use and Management Model
Explore a management and occupancy model in which Avenidas would have primary and Item 5
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dedicated use of designated space to operate senior services, while collaborating with the City and other partners to utilize shared community amenities such as wellness facilities, fitness spaces, and multi-purpose rooms.
3. Develop Project Plans and Program Specifications
Collaborate in developing architectural plans, program specifications, and operational requirements necessary to support expanded senior services, including opportunities for integration with complementary community uses.
4. Explore Capital Funding and Fundraising Partnership
Explore a funding model in which the City and Avenidas jointly support the capital development of the facility. Avenidas may initiate and lead fundraising efforts to raise a substantial portion of capital costs through philanthropy, grants, and other external funding sources to supplement City investment.
5. Define Operational and Program Coordination
Coordinate with other City departments and community partners to ensure effective utilization of the facility.
6. Advance Equitable Access and Community Impact
Expand access to services for older adults throughout Palo Alto, and strengthen the City’s capacity to support healthy aging, social connection, and community engagement.
The City and Avenidas are interested in undertaking and completing this project at Cubberley in accordance with one or more future agreements subject to mutually acceptable terms and conditions. The City and Avenidas will endeavor to negotiate potential agreement(s) over the next six (6) to twelve (12) months, as practicable.
Elements to be included in future agreement(s) may include:
1. Terms and conditions of the agreement
2. Capital funding commitments, timelines, and fundraising goals
3. Roles and responsibilities related to planning, construction, and occupancy
4. Community engagement and outreach planning
5. Project schedule and planning milestones
6. Coordination with City departments and regulatory processes
7. Options for modification or termination of the joint planning process This Letter of Intent is not a binding contract between the City and Avenidas and does not establish a legal partnership or obligation. It is intended to facilitate discussion and planning toward future Item 5
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agreements that advance the shared goal of supporting Palo Alto’s older adults through expanded, accessible, and dedicated community space.
Signed by Kristina Lugo, President and CEO, Avenidas
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Date:
________________________________________________
Signed by Ed Shikada, City Manager, City of Palo Alto
________________________________________________
Date:
________________________________________________
September 21, 2026
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8 The Cubberley Site
The 35-acre Cubberley site, located at 4000 Middlefield Road in Palo Alto, operated as Cubberley High School from 1956 to 1979. Beginning in the late 1980’s, the City began leasing portions of the facilities from the Palo Alto Unified School District (PAUSD) at the site. Today, the City operates the areas of Cubberley it controls as a community center, using some of the space for classes and activities in arts, culture, athletics, and sub-leasing additional space at City-subsidized rates to various non-profit and community serving groups. The current lease agreement expires December 31, 2029.1 Today, the City owns eight acres of the 35-acre site. PAUSD owns the remaining 27 acres, most of which are leased to the City. There are currently 23 tenants and 24 artists leasing space at Cubberley from the City and dozens of groups renting the theater, pavilion, classrooms, and athletic fields from the City. Combined, these groups provide the community with programs that support health and wellness, childcare, education, and visual and performing arts. PAUSD uses its retained space for educational purposes and staff offices and has leases with some third-party tenants.
The parking lot in the southeast corner of the property houses portable trailers as a temporary site for Hoover Elementary School during construction at the school’s site. A current site map can be found on the City’s website.2
Several master planning efforts have been completed over the years to reimagine and improve the Cubberley site, with the most recent being completed in 2019.3 Memorandum of Understanding with PAUSD
In October 2024,4 both the City Council and Palo Alto Unified School District (PAUSD or District) Board of Education approved a Memorandum of Understanding (MOU) related to the future of the Cubberley site. The MOU outlines key terms and conditions for the purchase and future planning of Cubberley. The land purchase, which would transfer ownership of seven acres from PAUSD to the City, is contingent on voter approval of a bond measure in November 2026. This condensed timeframe requires development of a master plan for the site by March 2026, conduct stakeholder and community engagement and outreach, polling, financial analysis, CEQA analysis, and other critical tasks. The addition of the seven acres, plus the eight acres already owned by the City of 1 City Council, December 2, 2024: https://portal.laserfiche.com/Portal/DocView.aspx?id=112707&repo=r- 704298fc&searchid=c3e3ed6f-6cda-4dd3-ba35-5d8d4be5579e
2 https://www.cityofpaloalto.org/files/assets/public/v/1/city-manager/communications-office/cubberley- community-center_mappdf.pdf
3 Cubberley Concept Plan 2019: https://www.pausd.org/about-us/committees-task-forces/archived- committees/cubberley-master-plan
4 City Council, October 7, 2024; Agenda Item AA1; SR #2409-3500, https://portal.laserfiche.com/Portal/DocView.aspx?id=98415&repo=r-704298fc&searchid=e199f724-22ab- 472b8ad8-ca162c4dcf8a
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8 Palo Alto provides an opportunity to develop a new community center and other improvements on a combined 15 acres at the Cubberley site to provide a range of City programs, including health, wellness, and recreational opportunities for residents.
Master Plan Update and Pursuit of a Local Ballot Measure To advance the master planning effort the City Council took several actions on December 2, 20249 related to the future of the Cubberley site. These actions included approval of a contract with Concordia, LLC, and associated budget actions for development of a revised Master Plan for the Cubberley Community Center site, building on the previous master plan completed in 2019 by Concordia and guided by significant community input. Additionally, the Council approved a Letter of Intent with the Friends of the Palo Alto Recreation Wellness Center for the purpose of fundraising for a recreation wellness center (gymnasium) at the Cubberley site, and a workplan for pursuit of a November 2026 local ballot measure to fund the purchase of land and development of a new community center at the Cubberley site.
Subsequent Council actions included approving a five-year lease with PAUSD10 to continue the current use of the property, including playing fields, approval of a professional services agreement with Rincon for CEQA analysis,11 and approval of professional service agreements with Lew Edwards Group and Fairbank, Maslin, Metz & Associates12 for ballot measure strategy advisement and community polling.
Cubberley Ad Hoc Committee
The Council established the Cubberley Ad Hoc Committee (as a non-Brown Act body) to review and advise staff on efforts related to polling and development of a ballot measure that will successfully receive voter support in 2026. Efforts include polling, financial and revenue modeling for the community center, master planning, and community outreach to complete the Master Plan and place a measure on the November 2026 ballot.
The City Council will serve as the governing body for policy direction at key decision points. This includes direction to conduct polling, review of concept designs, direction on 9 City Council, December 2, 2024; Agenda Item 18, SR #2410-3634, https://portal.laserfiche.com/Portal/DocView.aspx?id=112713&repo=r-704298fc 10 City Council, December 2, 2024; Agenda Item 12; SR #2410-3651, https://portal.laserfiche.com/Portal/DocView.aspx?id=112707&repo=r-704298fc 11 City Council, December 16, 2024; Agenda Item 12; SR #2411-3813, https://portal.laserfiche.com/Portal/DocView.aspx?id=117742&repo=r-704298fc&searchid=96e9506b- f1bd-485e-a4cb-fc804b5893d1
12 City Council, February 24, 2025; Agenda Item 4; SR #2501-4039, https://portal.laserfiche.com/Portal/DocView.aspx?id=143364&repo=r-704298fc&searchid=fef509a6- 4d34-4060-bc7a-6ab87db7a0ae
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8 operating and financial models, and decisions on what should be placed on the November 2026 ballot.
April 21, 2025 City Council Meeting
At the April 21, 202517 City Council meeting, staff presented outcomes from the first community meeting held on March 19, an update on the Cubberley Master Plan Project workplan and sought Council authorization to initiate the first community poll.
First Cubberley Master Plan Community Meeting
The first community meeting for the Cubberley Master Plan Project was held on March 19, 2025, and was attended by over 120 community members and stakeholders.
Participants completed two activities in table groups of up to eight people with guided facilitation, focusing on the vision for the community center, programming, and place making. The first meeting goals included a review of the Vision from the City Council session and then using a list from the previous community engagement process, participants were asked to review and confirm desired programming and adjacencies for the future Community Center. The outcomes of the March 19 meeting were presented to the City Council on April 21, 202518 .
The first activity focused on a review of the Council Vision statement and participants were asked to expand the Vision statement with additional values and ideas.
Community members valued: Multipurpose, adaptable spaces to accommodate diverse uses over time; Gathering hubs for interconnectivity and communication between diverse social, cultural and generational groups; Accessibility for all ages, cultures and abilities to access holistic wellness resources; Integration of green space and sustainability features in experiential and infrastructural planning; and Affordability for local Palo Altans and for tenants who have a community focus. Overall, participants focused on flexibility, inclusivity, sustainability, and long-term community engagement as high-level themes.
The second activity focused on programming and adjacencies of indoor and outdoor spaces. The most selected indoor programs were Theater/Performance Space, Dance Classes, Art Studio, Art Classes, followed by Gym Facility, Flexible Rental Space, and a Café. For outdoor programs, Open Greenspace was the most selected program followed by Playground, Amphitheater, and Pool/Water Area. Compared to 2019, the most mentioned programs then (indoor and outdoor) were Adult Education, 17 City Council, April 21, 2025; Agenda Item 11; SR #2503-4310, https://portal.laserfiche.com/Portal/DocView.aspx?id=166428&repo=r-704298fc 18 Staff Presentation, April 21, 2025;
https://cityofpaloalto.primegov.com/Portal/viewer?id=0&type=7&uid=71ade3d7-a57a-4195-a59b- c410d90832ea
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8 Theater/Performance Space, Greenspace, Makerspace, and Senior/Multigenerational Programs.
Feedback on First Community Poll
Polling experts, FM3 presented themes for the first community poll designed to test voter opinions on the community center’s goals, preferred uses, and willingness to support funding through a tax or bond21. The poll themes and questions were developed with input from the Cubberley Ad Hoc Committee and will inform critical upcoming milestones in the project. The Council did not take an action but supported proceeding with the poll.
April 22,2025 Parks & Recreation Commission Meeting
On April 22, 2025,22 staff presented an informational update to the Parks and Recreation Commission, offering a comprehensive overview of the project's overall workplan and timeline. The presentation included a detailed summary of Community Meeting #1, highlighting key themes and priorities that emerged from the community’s feedback. Staff also introduced Poll #1, which was launched at the end of April, and encouraged Commissioners to help promote the survey to ensure broad community participation. In addition, the presentation outlined several ways the Commission can remain engaged and support the project, including serving as ambassadors within the community, helping to share information, and providing feedback. The creation of a PRC Cubberley ad-hoc committee was discussed and it was decided that this topic will be further considered during the upcoming workplan revisions scheduled for the coming months.
June 9, 2025 City Council Meeting
On June 9, 2025,23 staff presented to City Council the results of the first community poll, community engagement milestones coming up and updates to the workplan. The focus of the first poll was to survey voter input on the goals and future of the community center and possible support for a tax or bond measure. Staff also shared community engagement. Overall, the poll found broad majority support for improvement at the Cubberley site. Surveyed voters place highest priority on bringing the facility up to modern standards for electrical, plumbing, safety, and accessibility early childhood 21 FM3 Presentation, April 21, 2025;
https://cityofpaloalto.primegov.com/Portal/viewer?id=0&type=7&uid=83ec6422-b6e4-4e83-9ca3- ca746a5971a0
22 Staff Presentation, April 22, 2025;
https://cityofpaloalto.primegov.com/Portal/viewer?id=0&type=7&uid=dae0543c-e007-4fc1-9a69- fd08b156ee94
23 City Council, June 9, 2025, Agenda Item 2; SR#2503-4313, https://portal.laserfiche.com/Portal/DocView.aspx?id=182790&repo=r-704298fc&searchid=57dac2b5- 5c42-4ef0-978a-be940766f395
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8 education; affordability and efficient use of taxpayer dollars; and overall repairs for the facility. Lastly, staff shared with the City Council the community revised Vision Statement for the future of the Community Center.
June 12, 2025 Second Cubberley Master Plan Community Meeting On June 12, 2025, the City held the second community meeting for the Cubberley Community Center Master Plan, facilitated by Concordia. At the outset of the meeting, Concordia shared a revised Vision Statement based on community input gathered at the March 19 community meeting. The revised Vision Statement is, A vibrant, beloved, and adaptable destination that promotes learning, connections, joy, and wellbeing where all cultures and generations belong. Following this, staff provided an overview presentation to orient attendees to the three 3-D concept plans being presented. Each conceptual design includes an A, B, and C variations exploring different configurations of building placement, new construction vs renovation, green space, bike and pedestrian circulation, and parking—both above and below ground.
In the first activity community members were invited as a group to share their feedback on what aspects from all nine designs they liked and wanted “keep” and did not like and wanted to “leave behind”. They indicated aspects they liked with green dot stickers and aspects they did not like with red dot stickers. They were then asked to expand on their choices by writing explanations on the activity sheet provided for the table.
In the second activity, following the group discussion of the three concept designs—The Promenade, The Grid, and The Plaza—participants individually reviewed key design elements using a provided handout. They were asked to evaluate each concept’s primary layout across six categories: arrival & parking, pedestrian circulation, building scale & physical space organization, landscape & greenspace organization, balance of building & greenspace, and being a good neighbor. Each category was rated on a scale from 1 (not successful at all) to 5 (very successful).
Approximately 130 community members attended the second Cubberley Community Meeting and were highly engaged in providing feedback on the three presented concept designs. Attendees shared a wide range of reactions to various aspects of the designs, particularly discussing building layouts, the placement and amount of green space, parking structures, and preferences between above- and below-ground concepts. While perspectives varied, there was clear consensus around the excitement for the project’s progress and enthusiasm to see the plans taking shape. Community members expressed eagerness to continue the conversation, particularly around program placement, at the next meeting. A Meeting Summary can be found on the project website27.
27 Community Meeting #2 Summary, www.paloalto.gov/files/4280f185-ca1d-4965-940f-1e4fcaf6cb11/M2- Summary-Report-Final.pdf
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8 June 19, 2025 Public Art Commission Meeting
On June 19, 2025,29 City staff presented to the Public Art Commission and discussed potential opportunities to support the City’s Strategic Activation Plan for the Cubberley site, which was developed by staff in coordination with the City Council’s Cubberley Ad Hoc Committee. The plan outlined phased enhancements and activations aligned with the broader master planning process, community engagement efforts, and the anticipated November 2026 ballot initiative. As part of the discussion, Commissioners explored how the ArtLift grant program—previously identified at their January retreat as a potential tool—could be leveraged to support temporary public art installations at Cubberley and other key locations. Ideas included murals, ground art, freestanding sculptures, and performance-based activations to help generate community excitement and reinforce the role of the arts in creating vibrant, inclusive public spaces.
June 24, 2025 Parks & Recreation Commission Meeting
On June 24, 2025,30 City staff provided the Parks and Recreation Commission with an informational update on the Cubberley Community Center Master Plan. The presentation included a recap of the second community meeting held on June 12, where Concordia unveiled three concept designs for the site and invited community feedback. Staff also presented the results of the first community poll, released in late April, and shared a list of proposed near-term activation ideas for the Cubberley site, inviting the Commission’s input. In addition, staff sought feedback from the Commission on the three concept designs. The newly formed PRC Cubberley Ad Hoc Committee will continue to refine the activation plans in July.
July 9, 2025 Planning and Transportation Commission Meeting On July 9, 2025,31 the Planning and Transportation Commission (PTC) received an update on the Cubberley Master Plan and was asked to provide input to help inform the next phase of the planning process. Staff requested feedback on several key aspects recently reviewed by the community, including arrival and parking, pedestrian circulation, building scale and space organization, greenspace layout, the balance of 29 Staff Presentation, June 19, 2025;
https://cityofpaloalto.primegov.com/Portal/viewer?id=0&type=7&uid=a036e199-31cd-4d94-8214- 7fb0170e39ac
30 Staff Presentation, June 24, 2025;
https://cityofpaloalto.primegov.com/Portal/viewer?id=0&type=7&uid=ac29aa36-1b3a-4403-b8b2- cc403685865d
31 Staff Presentation, June 9, 2025;
https://cityofpaloalto.primegov.com/Portal/viewer?id=0&type=7&uid=49fc32cf-caa1-4dd9-97f9- 5d5d02150256
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8 built and open space, and how the site can be a good neighbor. Additional PTC feedback emphasized the importance of clear cost comparisons between renovation and new construction, interest in public-private funding models, and support for a future bond measure and donor engagement. Commissioners favored partial underground parking and better integration with transit and surrounding neighborhoods. There was broad interest in maintaining flexible green space for events, ensuring safe and separate bike/pedestrian circulation, and preserving multigenerational, inclusive programming. Suggestions also included clearer diagrams, more tangible use examples, and consideration of impacts from surrounding development.
July 17, 2025 Architectural Review Board Meeting
On July 17, 202535, the Architectural Review Board (ARB) received a presentation on the Cubberley Master Plan and provided early feedback to help shape the next phase of planning. The Board expressed strong support for phased development and emphasized minimizing disruption to existing tenants and programs. Members praised pedestrian and bike circulation, supported the proposed balance of buildings and green space, and encouraged improvements to vehicle access and mobility hubs. There was general support for new construction over renovation and interest in enhancing the site's identity through public art and flexible community spaces. The ARB also encouraged a welcoming design that reflects Cubberley’s civic and cultural significance while being a good neighbor to the surrounding community.
September 17, 2025 Third Cubberley Master Plan Community Meeting On September 17, 2025, the City held the third and final community meeting for the Cubberley Master Plan, facilitated by Concordia. Approximately 150 community members attended and were highly engaged in reviewing the refined concept design. At the outset, City staff and Concordia recapped the first two community meetings, provided a project overview, and highlighted updates to the concept plan, including phasing strategies. Following this presentation, participants engaged in two interactive activities to provide focused feedback.
A draft concept design was presented in phases to demonstrate that the project will need to be constructed over time based on available funding, and to ensure that programs and services are not disrupted during construction. Phase 1 includes a mix of constructing new buildings and renovation of existing buildings to reflect likely timing needed between phases while additional funding is secured.
Activity 1- Phase 1 Concept Design: Recreation Wellness and Performing Arts 35 Staff Presentation, July 17, 2025;
https://cityofpaloalto.primegov.com/Portal/viewer?id=0&type=7&uid=2a9a7988-768f-465b-bcf9- 68166ff9af6f
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8 Phase 1 consists of two parts: a Recreation Wellness Center and a Performing Arts Center. Phase 1 also includes renovation of remaining buildings so the full site continues to be operational until phases 2 and 3 can be completed. Community members were invited to assess the Phase 1 concept designs for the recreation wellness and performing arts area and were asked to reflect on three key questions:
1. What is working well and excites you?
2. What is not working well or could be improved?
3. What creative ideas do you have to make the space exciting? Activity 2- Phase 2 and 3 Concept Design: Visual Arts & Technology and Community Services
In the second activity, community members were asked to provide feedback on Phase 2 and Phase 3, which includes the Visual Arts & Technology (Phase 2) and Community Services spaces (Phase 3). Participants responded to the same guiding questions as in the first activity: what is working well and is exciting about the proposed designs, what aspects are not working or could be improved, and what creative ideas, such as new events, programs, or installations—could make these areas more vibrant and impactful.
This exercise allowed the community to reflect on future phases of development and share ideas that will help shape a cohesive, dynamic, and inclusive vision for the campus.
Overall, the meeting reflected strong community engagement and generated valuable input on both programming and site circulation. Community members expressed enthusiasm about seeing program placement within the proposed buildings and noted their appreciation for the phased approach, which allows for continuity of programs during construction. The discussion was lively and engaging, with particular interest around the café, the outdoor amphitheater, parking access, and pedestrian and bicycle circulation pathways. The feedback gathered informed refinement of the preferred concept plan. The full meeting summary is included on the project website37.
September 23, 2025 Parks and Recreation Commission Meeting On September 23, 202538, the Parks and Recreation Commission (PRC) received a presentation on the refined Cubberley Community Center Master Plan concept following the third and final community meeting held on September 17, 2025. Commissioners reviewed updates on program placement, phasing, and site circulation, and were asked 37 Community Meeting #3 Summary; www.paloalto.gov/files/assets/public/v/1/community- services/cubberley-project/2025.11.11_m3-summary.pdf
38 Staff Presentation, September 23, 2025;
https://cityofpaloalto.primegov.com/viewer/preview?id=0&type=8&uid=efbb1418-4bbe-49b2-b786- 165e29017ca3
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8 to provide input on the same questions posed to the community: what is working well, what could be improved, and what creative ideas could enhance the campus experience.
Commissioners engaged in a thoughtful discussion that highlighted both enthusiasm for the project and areas for refinement. They praised Phase I improvements—especially the café, amphitheater, and integration with existing buildings—and noted strong community excitement about program continuity during construction. Key suggestions included lighting for the tennis courts, enhancing pedestrian and bicycle circulation, and incorporating creative placemaking features such as gardens and artistic infrastructure.
Concerns focused on the cost and feasibility of large-scale facilities (e.g., the partial underground parking), potential displacement impacts in Phase I, and how to communicate a phased plan if bond funding only covers the first phase. Commissioners also stressed sustainable design choices and raised questions about circulation, office space, gym design, and pool impacts.
Overall, the PRC expressed appreciation for the progress made and reinforced the importance of balancing community goals, funding realities, and long-term sustainability.
October 20, 2025 City Council Meeting
Staff presented an updated concept plan41 with an emphasis on the first phase of site development showing a combination of renovated and new building construction. The focus on the first phase recognizes that funding will likely be a limiting factor in full site redevelopment. At this meeting, staff shared objectives and themes for the second community poll to determine voter support for a bond or tax measure to finance the land purchase, and the extent of how much voters are willing to pay annually. Following the October 20 meeting the second poll was conducted.
December 15, 2025 City Council Meeting
City Council received an update on the Cubberley Community Center Project42, including results from the second community poll and discussed next steps. Council discussed key findings from Poll #2, which indicate broad voter support for the City acquiring the Cubberley property and willingness to invest in limited funding focused on basic repairs, safety upgrades, and accessibility improvements. Results showed relatively higher support for parcel tax and sales tax funding mechanisms, with a $250 average annual parcel tax testing above 50% support and a 0.5% sales tax increase capable of supporting significantly greater capital financing, pending state authorization. 41 City Council, October 20,2025; Agenda Item #1; SR #2503-4353, https://portal.laserfiche.com/Portal/DocView.aspx?id=231071&repo=r-704298fc 42 City Council, December 15, 2025; Agenda Item #3; SR #2503-4355, https://portal.laserfiche.com/Portal/DocView.aspx?id=246305&repo=r-704298fc Item 5
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8 Council expressed alignment with staff and the Ad Hoc Committee’s recommendation to continue refining ballot measure options and to launch a third poll in January 2026 to further test potential parcel tax and sales tax scenarios.
Overall, Council affirmed the importance of a phased, long-term approach to redevelopment that balances community priorities, funding realities, and opportunities for partner contributions, while continuing to advance the master plan toward presentation in March 2026. Following the December 15 meeting, the third poll was finalized and released in early January 2026.
February 9, 2026 City Council Meeting
City Council received an update on the Cubberley Community Center Project45, including results from the third community poll and progress on public-private partnerships to advance key components of the project. Staff shared that, in anticipation of possible Council consideration of a November 2026 ballot measure to fund the purchase of seven acres from PAUSD and advance all or portions of the project, three of four planned community polls have been completed. Results show both parcel tax and sales tax funding options testing at approximately 48% support—an improvement from the prior poll, though still below the thresholds required for approval (two-thirds for a parcel tax and a simple majority for a general-purpose sales tax). Despite these challenges, Councilmembers remained optimistic, noting that support levels are approaching viability, particularly for a sales tax option, and that emerging public-private partnerships could strengthen the overall funding strategy.
Council also discussed partnership efforts being coordinated by staff and the Cubberley Ad Hoc Committee. A partnership with TheatreWorks was presented and would create a two-theater complex through renovation of the existing Community Theatre and Pavilion, with new construction to support TheatreWorks, and upgrades to the Cubberley Theatre for continued community use, including new restrooms, an expanded lobby, and improved accessibility. Staff recommended approval of a Letter of Intent with TheatreWorks to formalize this joint commitment, which Council approved. In addition, staff shared that the Friends of the Recreation and Wellness Center and the City are continuing to develop terms for an agreement to advance a future recreation and wellness center with new multi-court gymnasium space on the Cubberley campus.
Avenidas Executive Director, Kristina Lugo, was also in attendance and publicly 45 City Council, February 9, 2026; Agenda Item #11; SR#2512-5774, https://cityofpaloalto.primegov.com/viewer/preview?id=0&type=8&uid=fd6f9939-83a3-4ea7-817a- e7719c9194a4
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8 expressed interest in exploring partnership opportunities with the City at the Cubberley site.
Council directed staff to develop Poll #4 to include information about the two major anchor tenants, explore community sentiment around expanding City programs at Cubberley, and provide clearer messaging about community benefits and funding strategies. Council also directed the City Manager to discuss contingency plans and alternative acquisition terms with the School District, and asked staff to return with options for acquiring the seven acres through mechanisms other than a ballot measure.
March 11, 2026 Planning and Transportation Commission and Architectural Review Board Special Joint Meeting
The Planning and Transportation Commission (PTC) and Architectural Review Board (ARB) held a special joint meeting to receive a presentation from staff47 on the proposed Cubberley Conceptual Master Plan and the Draft Initial Study/Mitigated Negative Declaration (IS/MND) prepared under the California Environmental Quality Act (CEQA).
Staff presented the City’s long-term vision to redevelop approximately 15 acres of the Cubberley campus, including the potential purchase of seven acres from the Palo Alto Unified School District (PAUSD) for $65.5 million. Staff noted that the purchase and implementation of the plan will depend on identifying funding sources, which may include a potential sales tax ballot measure in November 2026, development impact fees, grants, philanthropic contributions, and public-private partnerships.
Staff requested that the commissions review the Draft IS/MND and provide a recommendation to the City Council regarding adoption of the Conceptual Master Plan.
City Council is tentatively scheduled to consider adoption of the plan in April 2026, while staff continue advancing environmental review, partnership discussions, and funding and financing strategies.
Commissioners and Board members discussed topics including project phasing and funding, the status of the PAUSD lease and land acquisition, parking and circulation, recreation facilities such as the proposed pool, sustainability goals, long-term campus connectivity, elements of the site layout, the potential renovation versus replacement of existing buildings, and opportunities for philanthropic funding. Following discussion and public comment, both the Planning & Transportation Commission and Architectural Review Board voted separately, and unanimously (5–0) to recommend that City Council adopt the Cubberley Conceptual Master Plan, with a list of considerations for Council 47 Staff Presentation, March 11, 2026;
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8 and staff to evaluate as the project moves forward into future phases of planning and design. Below are the approved motions:
Architectural Review Board:
Moved by Board member Rosenberg, seconded by Board member Jojarth to move the staff recommendation and to recommend that City Council consider the following:
- Consider competition friendly pool size of 50 meters by 25 yards - Consider the phasing within Phase 1
- Revisit the cost effectiveness of buildings S, T, V, E, F, C, D - Consider the value of saving Building I, versus reutilizing that space as part of another program
- To review bike and pedestrian routes including the intent and use of the diagonal promenade as well as defining the existing safe routes to school on the property - To clarify that the City lease agreements with PAUSD provide flexibility to the City to make parking improvements including landscaping and paving and have a sufficient duration to adequately provide access to the improvements contemplated in the Master Plan
- Modify the preface and executive summary to include language from page 52 about flexibility and to add the words modern, safe, and sustainable to the project goals
- To encourage a formal process to raise funding from private sources - Review adequacy of parking
Planning and Transportation Commission:
Moved by Commissioner Templeton, seconded by Commissioner Chang to move the staff recommendation and to recommend that City Council consider the following:
- Consider competition friendly pool size of 50 meters by 25 yards - Revisit the cost effectiveness of buildings S, T, V, E, F, C, D - To review bike and pedestrian routes including the diagonal promenade and the existing safe routes to school on the property
- To clarify that the City lease agreements with PAUSD provide flexibility to the City to make parking improvements including landscaping and paving and have a sufficient duration to adequately provide access to the improvements contemplated in the Master Plan
- Modify the preface and executive summary to include language from page 52 about flexibility and to add the words modern, safe, and sustainable to the project goals
- To encourage a formal process to raise funding from private sources Item 5
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8 March 24, 2026 Parks and Recreation Commission Meeting The Parks and Recreation Commission received a presentation from staff49 on the proposed Cubberley Conceptual Master Plan and the Draft Initial Study/Mitigated Negative Declaration (IS/MND) prepared under the California Environmental Quality Act (CEQA), and results of the second and third community polls. Staff presented the City’s long-term vision to redevelop approximately 15 acres of the Cubberley campus, including the potential purchase of seven acres from the Palo Alto Unified School District (PAUSD) for $65.5 million. Staff noted that the purchase and implementation of the plan will depend on identifying funding sources, which may include a potential parcel or sales tax ballot measure in November 2026, development impact fees, grants, philanthropic contributions, and public-private partnerships.
Staff requested that the commission review and consider the Draft IS/MND and provide a recommendation to the City Council regarding adoption of the Conceptual Master Plan. City Council is scheduled to consider adoption of the plan in April 2026, while staff continue advancing environmental review, partnership discussions, and funding and financing strategies.
Commissioners expressed strong appreciation for the work completed to date and shared overall excitement about the vision and direction of the project. Discussion included the use of a Mitigated Negative Declaration under CEQA and the level of detail at the conceptual stage, particularly related to architectural and landscape design, including tree preservation and future planting strategies. The Commission also considered key program elements such as recreation amenities and amphitheater capacity, as well as project phasing, funding flexibility, and timelines tied to land acquisition and partnership opportunities. Commissioners also discussed construction impacts on existing operations and opportunities to support the project through grants, partnerships, and continued community engagement and activation efforts. Following discussion and public comment, Commissioner Smith made a motion to recommend the City Council adopt the Cubberley Conceptual Master Plan, it was seconded by Vice Chair Wei, and the vote passed (5–0) with 1 commissioner choosing to abstain.
May 18, 2026 City Council Meeting
Staff presented the Draft Conceptual Master Plan, Mitigated Negative Declaration, and results of the fourth community poll to the City Council. Staff’s recommendation to 49 Staff Presentation, March 24, 2026;
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8 adopt a Resolution adopting the Mitigated Negative Declaration and the Cubberley Conceptual Master Plan was approved by Council unanimously. Staff also recommended the Council provide direction on next steps to advance the project.
Following a presentation on the fourth-round polling results, the Council directed staff to pursue a ½ cent sales tax measure on the November 2026 ballot.
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Community Services
Meeting Date: October 5, 2026
Report #:2602-5958
TITLE
Approval of Surveillance Use Policy for Security Cameras at the Palo Alto Animal Shelter; CEQA Status - Not a Project.
RECOMMENDATION
Staff recommend that the City Council approve the attached surveillance use policy for the use of security cameras to enhance security and safety and deter unauthorized or criminal activity at the Palo Alto Animal Shelter (Attachment A).
EXECUTIVE SUMMARY
The Palo Alto Animal Shelter (operated by Pets in Need) has a need to acquire and use surveillance technology to ensure the safety of animals, visitors, and staff. A Surveillance Use Policy has been developed to comply with the City’s Surveillance Technology Ordinance and include mitigations to ensure appropriate use of the information captured. Key elements are summarized in Table 1 in the Analysis section of this report.
BACKGROUND
Palo Alto’s Surveillance Technology Ordinance, codified PAMC § 2.30.6201, et seq., sets criteria and procedures to protect personal privacy in the acquisition and use of surveillance technology and provide for ongoing oversight. Security camera technology is “surveillance technology” as defined by the ordinance. The ordinance requires City Council approval of the acquisition of new surveillance technology and of a Surveillance Use Policy specific to each new approved technology. In approving new surveillance technology, the Council must determine that its benefits outweigh the associated costs and concerns.
The ordinance sets forth specific elements that must be present in a Surveillance Use 1 Palo Alto Municipal Code Section 2.30.620, et seq.;
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Policy, including limitations on use, access, and retention, as well as a description of compliance procedures.
ANALYSIS
Prior to approval of a new surveillance activity by the Council, the ordinance requires the completion of a Surveillance Evaluation, consisting of five specific elements below. Table 1 evaluates the use for the Palo Alto Animal Shelter.
Table 1: Surveillance Evaluation for Palo Alto Animal Shelter
1. A description of the surveillance technology, including how it works and what information is captured
The surveillance technology will include security cameras and monitoring systems designed to capture real-time video footage of entry points, the front parking lot, and animal housing areas. Video and audio will be captured only when the front doorbell is pressed and is solely for staff to communicate with the individual at the front doorbell. Audio is not captured on any video recordings. The technology may also include motion detectors and alarm systems that notify designated personnel of suspicious activities.
2. Information on the proposed purpose, use and benefits of the surveillance technology The primary purpose of implementing surveillance technology is to enhance the safety and security of Pets In Need, which has been subject to overnight loitering, mail tampering, animal abandonment, and occasional animal related incidents. The technology also allows shelter management to view the facility when staff are not on site to ensure the safety of animals. It will also provide evidence to the Palo Alto Police Department (PAPD) if an incident should occur inside or outside the facility.
PIN will provide an annual surveillance report to the City to comply with Section 2.30.680(a)3 of the Palo Alto Municipal Code.
3) The location or locations where surveillance technology may be used Surveillance technology will be located inside and outside of the animal shelter - in strategic high-risk areas prone to vandalism, theft or other criminal activity. This includes entry points, the front parking lot, and animal housing areas.
4) Existing federal, state and local laws and regulations application to the surveillance technology and the information it captures; the potential impacts on civil liberties and privacy; and proposals to mitigate and manage any impacts 3 Palo Alto Municipal Code Section 2.30.680(a);
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Surveillance technology will comply with applicable laws related to video and audio recording. This includes Labor Code section 435, which forbids employers from recording in a restroom, locker room, or changing room; and Penal Code section 632, which prohibits recording audio of “confidential communication,” subject to exceptions such as for public meetings under Penal Code section 632(c).
Mitigation Actions for Pets In Need:
Access to surveillance footage is limited to designated positions in Pets in Need and is permitted only when there is a legitimate operational, safety, or investigative need.
The Chief Executive Officer is authorized to access surveillance footage and can authorize access to other PIN management if relevant to the type of investigation. The Director of Shelter Operations and Facilities & IT Manager are authorized to access and review surveillance footage when requested by the CEO for a specific, authorized purpose but are not authorized to independently access or review footage.
When footage is relevant to an investigation, only the applicable portion of the footage may be clipped and shared with the following positions on a need-to-know basis:
Animal-related investigations: Director of Behavior & Medical Services and Behavior, Training & Rescue Manager.
Employee-related investigations: Director of Human Resources and CEO.
City police personnel will be granted access for law enforcement purposes. 5) The costs of the surveillance technology, including acquisition, maintenance, personnel and other costs, and current or potential sources of funding All costs to purchase, install, and maintain the cameras will be the responsibility of Pets in Need.
FISCAL/RESOURCE IMPACT
There is no cost to the City for the surveillance cameras at the Palo Alto Animal Shelter. Pets In Need will purchase, install and maintain security cameras.
STAKEHOLDER ENGAGEMENT
The Community Services Department and Police Department coordinated with Pets in Need to develop this policy.
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ENVIRONMENTAL REVIEW
Council action on this item is not a project as defined by CEQA because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. CEQA Guidelines section 15061(b)(3).
ATTACHMENTS
Attachment A: Palo Alto Animal Shelter Surveillance Policy APPROVED BY:
Kristen O'Kane, Community Services Director
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3 Pets In Need - Palo Alto Animal Shelter
Surveillance Use Policy
Purpose of surveillance technology:
The primary purpose of implementing surveillance technology at the Palo Alto Animal Shelter is to enhance the safety and security of Pets In Need – it’s staff, volunteers, visitors, animals, and facilities – which has been subject to overnight loitering, tampering with mail, abandonment of animals on premises, and occasional animal-related incidents (i.e. bites, escapes from kennel, medical and behavior observations). It will also provide evidence to the Palo Alto Police Department (PAPD) and Animal Control Officers (ACOs) if an incident occurs inside or outside the animal shelter.
Type of surveillance technology:
Surveillance technology includes a Nest Doorbell camera, Nest surveillance cameras, and monitoring systems designed to capture real-time video. These devices will record activities in and outside of the animal shelter. Surveillance cameras around the animal shelter will focus on entry points, the front parking lot, and animal housing areas. The doorbell camera is designed to capture real-time video and audio when pressed and communicates with Google display hubs set up throughout the animal shelter that notify designated personnel when someone is at the front door. The audio feature on the doorbell is solely for communicating with the individual at the doorbell via the Google display hubs. Audio is not captured on any recorded video history. Pets in Need has a Nest Aware Plus subscription that stores 60 days of event video history + 10 days of 24/7 video history.
Locations:
Front Door Doorbell: The doorbell has a camera and voice component to it. During non-open hours when staff are onsite, visitors can ring the doorbell which will be sent to Google Home Hubs on staff desks who can communicate with the visitor or come to answer the door depending on the situation.
Lobby: Allows management to view the facility when staff are not on site to ensure all animals and property are safe in case of alarm activation as well as potential tracking in case an animal goes missing or is abandoned. Also, enhances the security and safety of Pets In Need and its staff.
Play Yard: Allows management to view the facility when staff are not on site to ensure all animals and property are safe. Also, it allows management to pull footage of any animal-related incidents that may occur while animals are out in the play yard.
Interior Isolation Building: Allows management to view the facility when staff are not on site and ensure the safety of animals kept in this housing area due to the need for medical observation.
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3 Parking Lot: Allows management to view the facility when staff are not on site in case of alarm activation and ensures safety of staff during early morning and evening hours. Camera will capture all vehicles entering and exiting the property.
Medical Clinic: Allows management to view the medical clinic when staff are not on site to ensure all animals and property are safe. Also enhances security of a controlled substance safe in the clinic.
The following areas will allow management to view the facility when staff are not on site to ensure all animals and property are safe in case of alarm activation as well as potential tracking in case an animal goes missing.
Cat hallway
Cat room 1
Cat room 2
Exterior breezeway
Exterior adoption dog kennels
Interior adoption dog kennels
Exterior stray dog kennels
Front of building (facing modular building)
Rear of building
Compliance with laws:
Surveillance technology will comply with applicable laws related to video and audio recording.
This includes Labor Code section 435, which forbids employers from recording in a restroom, locker room, or changing room; and Penal Code section 632, which prohibits recording audio of “confidential communication,” subject to exceptions such as for public meetings under Penal Code section 632(c).
Mitigation actions:
Access to surveillance footage is limited to designated positions in Pets in Need and is permitted only when there is a legitimate operational, safety, or investigative need.
The Director of Shelter Operations and Facilities & IT Manager are authorized to access and review surveillance footage when requested by the CEO or another Director for a specific, authorized purpose.
When footage is relevant to an investigation, only the applicable portion of the footage may be clipped and shared with the following positions on a need-to-know basis:
Animal-related investigations: Director of Behavior & Medical Services and Behavior, Training & Rescue Manager.
Employee-related investigations: Director of Human Resources and CEO.
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3 These positions may receive relevant clipped footage for purposes of the investigation but are not otherwise authorized to independently access or review the surveillance system.
City police personnel will be granted access for law enforcement purposes.
Annual reporting:
PIN will provide annual surveillance report information (as defined in PAMC section
2.30.680(a)1) to the City by August 1 of each year to include:
PAMC 2.30.680(a)
(a) "Annual surveillance report" means a written report, submitted after the close of the fiscal year and that includes the following information with respect to the prior fiscal year:
(1) A description of how each Council-approved surveillance technology was used, including whether it captured images, sound, or information regarding members of the public who are not suspected of engaging in unlawful conduct;
(2) Whether and how often data acquired through the use of the surveillance technology was shared with outside entities, the name of any recipient entity, the types of data disclosed, and the reason for the disclosure;
(3) A summary of any community complaints or concerns about the surveillance technology; (4) Non-privileged and non-confidential information regarding the results of any internal audits, information about violations of the surveillance use policy, and any actions taken in response;
(5) Whether the surveillance technology has been effective at achieving its identified purpose;
(6) The number and nature of Public Records Act requests relating to the surveillance technology;
(7) Annual costs for the surveillance technology and for compliance with this surveillance and privacy protection ordinance, including personnel and other ongoing costs, and sources of funding; and
(8) Other relevant information as determined by the City Manager.
1 Palo Alto Municipal Code Section 2.30.680(a);
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Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Community Services
Meeting Date: October 5, 2026
Report #:2608-6630
TITLE
Approval of Surveillance Use Policy for Security Cameras at the Palo Alto Junior Museum & Zoo; CEQA Status - Not a Project.
RECOMMENDATION
Staff recommend that the City Council approve the attached surveillance use policy for the use of security cameras to enhance security and safety and deter unauthorized or criminal activity at the Palo Alto Junior Museum & Zoo (Attachment A).
EXECUTIVE SUMMARY
The Palo Alto Junior Museum & Zoo have a need to acquire and use surveillance technology to ensure the safety of animals, city assets, as well as safety of visitors, and staff, and the protection of city assets. Surveillance Use Policies have been developed for the facility to comply with the City’s Surveillance Technology Ordinance and include mitigations to ensure appropriate use of the information captured. Key elements are summarized in the Analysis section of this report.
BACKGROUND
Palo Alto’s Surveillance Technology Ordinance, codified PAMC § 2.30.6201, et seq., sets criteria and procedures to protect personal privacy in the acquisition and use of surveillance technology and provide for ongoing oversight. Security camera technology is “surveillance technology” as defined by the ordinance. The ordinance requires City Council approval of the acquisition of new surveillance technology and of a Surveillance Use Policy specific to each new approved technology. In approving new surveillance technology, the Council must determine that its benefits outweigh the associated costs and concerns. The ordinance sets forth specific 1 Palo Alto Municipal Code Section 2.30.620, et seq.;
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elements that must be present in a Surveillance Use Policy, including limitations on use, access, and retention, as well as a description of compliance procedures.
ANALYSIS
Prior to approval of a new surveillance activity by the Council, the ordinance requires the completion of a Surveillance Evaluation, consisting of five specific elements below. Table 1 evaluates the use for the Palo Alto Junior Museum & Zoo.
Table 1: Surveillance Evaluation for Palo Alto Junior Museum & Zoo
1. A description of the surveillance technology, including how it works and what information is captured
The surveillance technology will include security cameras and monitoring systems designed to capture real-time video. These devices will record activities around the Palo Alto Junior Museum & Zoo. The four strategically placed security cameras focus on entry and exit points and animal management spaces. The technology also includes motion detectors and alarm systems that notify designated personnel of suspicious activities.
2. Information on the proposed purpose, use and benefits of the surveillance technology
The primary purpose of implementing surveillance technology is to enhance the safety and security of the Palo Alto Junior Museum & Zoo, a high-traffic public facility that serves hundreds of guests daily, including children and families. The site houses live animals, specialized habitats, and valuable equipment, making it a significant City asset that requires appropriate protection. The proposed system will be used to monitor key entry and exit points and critical areas to deter unauthorized access, support real-time awareness of onsite activity, and provide reliable footage for incident response and investigation.
This need is reinforced by past attempted break-ins, highlighting existing vulnerabilities. The benefits of this technology include improved protection of animals, visitors, and staff; reduced risk of theft, vandalism, or unauthorized access; enhanced ability to coordinate with law enforcement when needed; and strengthened operational oversight, all of which support the City’s responsibility to maintain a safe, secure, and well-managed public facility.
3) The location or locations where the surveillance technology may be used
Surveillance technology will be deployed through the installation of four cameras. No cameras will be installed inside buildings, as the primary objective is to monitor entry and exit points. The cameras will be strategically positioned around the premises to capture key ingress and egress locations and areas vulnerable to unauthorized access, vandalism, or attempted break-ins, particularly during after-hours periods. Surveillance use is strictly limited to these areas.
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4) Existing federal, state and local laws and regulations application to the surveillance technology and the information it captures; the potential impacts on civil liberties and privacy; and proposals to mitigate and manage any impacts
Surveillance technology will comply with applicable laws related to video recording. This includes Labor Code section 435, which forbids employers from recording in a restroom, locker room, or changing room. Lastly, the City is required to retain certain building security recordings under Govt. Code section 34090.6(a), currently one year.
Mitigation Actions: Access to surveillance footage will be limited to authorized City personnel for law enforcement purposes. Encryption and access control mechanisms will safeguard the footage.
5) The costs of the surveillance technology, including acquisition, maintenance, personnel and other costs, and current or potential sources of funding Costs will include the acquisition of the four surveillance cameras, associated hardware, alarm system, licensing, shipping, and professional services for the field technical installation time, monitoring systems, and storage. The budget will also cover encryption and secure storage solutions. The project costs would be paid for out of the Palo Alto Junior Museum & Zoo Capital Improvement Program (CIP) Fund, AC-18001 JMZ Renovation. To streamline the procurement process and reduce administrative costs, we utilized the City’s California Multiple Award Schedule (CMAS) contract, which is a procure program which allows us to purchase goods and services from pre-approved vendors at negotiated prices.
The project has a one-time cost of $63,705 and annual licensing fees of $2,561 are anticipated and will be absorbed into the operating budget.
FISCAL/RESOURCE IMPACT
Surveillance technology costs for the Palo Alto Junior Museum & Zoo will be funded through the JMZ Renovation Project, AC-18001, in the Capital Improvement Program. To streamline procurement and reduce administrative costs, the equipment and related services were purchased through the City’s California Multiple Award Schedule (CMAS) contract. The project includes a one-time cost of $63,705. Ongoing annual licensing costs of $2,561 will be absorbed within the Junior Museum & Zoo operating budget.
STAKEHOLDER ENGAGEMENT
The Community Services Department coordinated with Palo Alto Police Department, Information Technology Department, Public Works and the City Attorney’s Office in developing this policy. Labor relations staff shared details of the proposed installation with the labor partner (SEIU) representing JMZ staff who could be impacted. SEIU confirmed they have no Item 7
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concern regarding the camera installation; the City has satisfied any meet and confer obligations with its labor partners.
ENVIRONMENTAL REVIEW
Council action on this item is not a project as defined by CEQA because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. CEQA Guidelines section 15061(b)(3).
ATTACHMENTS
Attachment A: Palo Alto Junior Museum & Zoo Surveillance Policy APPROVED BY:
Kristen O'Kane, Community Services Director
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9 Surveillance Use Policy for Security Cameras for Palo Alto Junior Museum and Zoo
In accordance with Palo Alto Municipal Code Section PAMC § 2.30.680(d), the Surveillance Use Policy for the City’s use of security cameras at the Palo Alto Junior Museum and Zoo (JMZ) is as follows:
1. Intended Purpose. The intent of security cameras is to increase the safety and security of City assets in and immediately around the Palo Alto Junior Museum and Zoo, a place with staff, animals, and public coexist in a single space with multiple access points.
2. Authorized Uses. City personnel may only access surveillance video (“footage”) for official and legitimate security, safety, and law enforcement purposes consistent with this Policy. The following uses of security cameras are specifically prohibited:
a. Harassment or Intimidation: It is a violation of this Policy to use the system to harass and/or intimidate any individual or group.
b. Personal Use: It is a violation of this Policy to use the system or data for any personal purpose.
c. First Amendment Rights. It is a violation of this policy to use the system or data for the purpose or known effect of infringing upon First Amendment rights of any person.
d. Invasion of Privacy: It is a violation of this Policy to use the system or data in any manner contrary to local, state, and federal privacy laws.
3. Information Collected. Security cameras will record video 24/7. Depending on the specific technology used, metadata such as time, date, and location of the camera may be documented with the video.
4. Safeguards. All footage will be closely safeguarded and protected by both procedural and technological means. The City will observe the following safeguards regarding access to and use of stored data:
a. All footage shall be accessible only through two factor authentication and/or Single Sign-on, to access sensitive systems and applications. b. Only select and necessary leadership staff members of the Palo Alto Junior Museum & Zoo shall have access to the footage and may delegate access to specific City staff members as long as such delegation is in writing and compliant with this Policy. Permissible personnel: the JMZ Senior Program Manager (Executive Director), Zoo Director (Specialist), and Exhibits Director (Specialist).
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NOT YET APPROVED
1 2
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9 c. Staff may provide footage to law enforcement, including Palo Alto Police Department (PAPD), for investigation. Once received, PAPD shall control footage under their own Department policies.
d. Persons approved to access footage under this policy are permitted to access the data for legitimate safety, security, and law enforcement purposes only, such as when the footage relates to a specific incident or criminal investigation. e. Encryption
oVerkada ensures that all connections to its web application from its users are encrypted using certificated TLS configurations. Both website and application are reachable exclusively over HTTPS.
oVerkada stores customer data in databases that are encrypted at rest. f. Network security
oProduction environments run in an isolated Virtual Private Cloud network with only necessary services enabled.
oVerkada uses configurations that ensure only approved networking ports and protocols are implemented.
g. Monitoring and Alerting
oVerkada tools monitor server CPU use, free storage space, message age and read I/O in Verkada’s databases, servers and messaging queues and notify appropriate personnel of any events or incidents based on predetermined criteria. Incidents are escalated per policy.
5. Retention. The City shall comply with Govt. Code section 34090.6 et seq. to retain footage pursuant to state law (currently one year). Additionally, the City will retain relevant footage longer than the retention period if it is reasonable to believe it will become evidence in a specific criminal investigation or is subject to a discovery request or other lawful action to produce records.
6. Access by non-City Entities. The footage may be shared outside of the City with law enforcement or prosecutorial agencies for official law enforcement purposes or as required by law or court order.
7. Compliance Procedures. The Assistant Director for Community Services (Arts & Sciences Division) and the JMZ Senior Program Manager (Executive Director) of the Junior Museum & Zoo shall be responsible for ensuring compliance with procedures, including, but not limited to:
a. Ensuring only designated staff are allowed access to footage when authorized by this policy.
b. Ensuring the security and retention of the footage collected and compliance with applicable laws.
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Surveillance Policy
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Administrative Services
Meeting Date: October 5, 2026
Report #:2607-6552
TITLE
Approval of FY 2026 Reappropriation Requests to FY 2027 Operating and Capital Improvement Budgets and Additional Technical Clean-Up Actions and Corresponding Amendments to the FY 2027 Budget Appropriation for Various Funds. CEQA Status: Not a Project
RECOMMENDATION
Staff recommends that the City Council amend the Fiscal Year 2027 Budget Appropriation for various funds as identified in Attachment A, and various capital projects as identified in Attachment B and Attachment C (requires 2/3 approval).
EXECUTIVE SUMMARY
As a part of the fiscal year-end process, staff reviews the City’s unencumbered and unspent appropriations of the fiscal year just ended (FY 2026), along with the City’s spending plans.
Encumbered amounts are contractual obligations (for example, commitments made through purchase orders), which are carried forward from one fiscal year to the next without the need for Council approval. Each year there are important projects that were unable to encumber funds in the year that just ended. The reappropriation process allows staff to bring forward funding recommendations to City Council to continue these projects into the next fiscal year (FY 2027) without impacting funding programmed for services in FY 2027.
In limited instances, staff also recommends appropriation actions unrelated to the reappropriation process. This fiscal year these are technical clean-up actions for capital projects.
BACKGROUND
Chapter 2.28, Section 2.28.090 of the Municipal Code allows for reappropriation of funding from the previous fiscal year to the current fiscal year if the Administrative Services Department (ASD) Director/Chief Financial Officer (CFO) certifies that sufficient unencumbered and Item 8
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unexpended funds are available in the Fiscal Year that just ended (FY 2026) to be carried forward to the subsequent Fiscal Year (FY 2027).
Additionally, since capital projects may be delayed or deferred for various reasons, there remains a need to reappropriate funds for capital projects in some instances. This reappropriation is completed through a review of the status of projects as part of the annual budget process and is built into the annual adopted budget. As FY 2026 has closed and staff has processed necessary accounting transactions, unexpended and unencumbered funds for each capital project have been reviewed for a final time. Based on this review, staff recommends capital dollars remaining for some projects in FY 2026 be reappropriated to FY 2027.
ANALYSIS
Attachment A identifies those operating budget requests that staff recommends for approval, while Attachment B lists recommended capital project requests. With the submission of this report for City Council consideration, the ASD Director/CFO certifies sufficient unencumbered and unexpended funds are available from FY 2026 to be reappropriated to FY 2027. To support the continuity of business for these ongoing projects and initiatives, this report is being brought forward prior to the FY 2026 Annual Comprehensive Financial Report (ACFR), scheduled to be considered by the Finance Committee in December. Attachment C includes technical clean-up actions to align project budgets with intended funding levels for the Palo Alto Art Center Ceramics Equipment project (AC-28003) and the Animal Shelter Renovation project (PE-19002).
Operating Budget Reappropriations
The projects recommended for budget reappropriations are outlined in more detail in Attachment A and can generally be grouped into the following categories:
Funding for Citywide Council Priorities: Items in this category are related to citywide priority needs previously identified by the Council, as part of the FY 2027 priority setting in January 2026, that could not be completed in FY 2026 and funding is recommended to be reappropriated to FY 2027 to complete the work. Examples of projects in this category include: Gas Cap and Trade Support for Electrification Programs ($9.1 million), Advancing Racial Equity ($0.2 million), and Child Care Services ($55,000). Timing and Workload Delays: Projects in this category were delayed due to competing workload demands, appropriation of funds late in the fiscal year, or other unanticipated delays. Examples of projects in this category include: Multi-Family EV Projects ($2.9 million), Customer Relationship Management (CRM) Platfrom ($0.5 million), Green Stormwater Infrastructure (GSI) Parks Maintenance ($0.1 million), Roth Building Maintenance ($30,000) and Airplane Noise Reduction Study ($75,000). Multi-year Funding Agreements: Projects in this category include approved donations, grants, loans, and other funding agreements that are anticipated to continue in the coming year. Examples in this category include: Organized Retail Theft Grant ($2.3 Item 8
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million), General Fund Training Programs ($50,000), Library Automated Materials Handling (AMH) System ($80,000), and Citizens Option for Public Safety (COPS) Program ($72,558).
Management Training Program: The Management Training Program provides $1,000 per eligible employee under the terms outlined in the MGMT and PAPMA labor agreements. The purpose of this program is to provide employees with resources to improve and supplement their job and professional skills. In total, $150,000 in unused funding is requested to be reappropriated for various training programs, including:
ethics, civics and citizen engagement, leadership and management, budget, finance, procurement, interpersonal communication, presentation skills, business writing, time management, project management, change management, online-based education, and safety and security.
Operating Reappropriations Previously Approved in the FY 2027 Adopted Operating Budget As part of the FY 2027 Budget review process, early reappropriation of anticipated savings in the General Fund in FY 2026 was recommended and approved by the Council to fund actions in FY 2027. The total approved amount of $180,000 already reappropriated to FY 2027 consisted of $30,000 for the City Council Administrative Assistant pilot program and $150,000 to support oversized vehicle compliance and enforcement work performed by the Office of Transportation.
Capital Budget Reappropriations
The FY 2027 Adopted Budget included $142.1 million in reappropriated expenditure funds, partially offset by $111.8 million in reappropriated revenue, across all City funds based on estimates of anticipated spending and revenue collections in FY 2026. Since the adoption of the capital budget, some adjustments and refinements to project reappropriations are required since FY 2026 year-end actuals and projects costs have been updated to reflect actual experience. These primarily reflect either increases or decreases to assumed reappropriations in the FY 2027 Adopted Budget:
Additional reappropriations are recommended when project expenditures originally anticipated to occur before the end of FY 2026 will now instead occur in FY 2027.
Similarly, revenue previously anticipated to be collected in FY 2026 will be reappropriated to FY 2027 to align with actual collections. Downward adjustments to reappropriations are recommended when expenses are no longer anticipated to occur in FY 2027 and funding was previously reappropriated in the budget document to FY 2027. If expenses were realized in FY 2026, an adjustment to reduce the budgeted reappropriation is needed as the activity no longer needs funding in FY 2027. The downward reappropriation of revenue is treated similarly; an adjustment to reduce the reappropriated revenue is needed to align collections in the appropriate fiscal year.
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Table 1 summarizes the recommended capital project adjustments by fund as detailed in Attachment B. These Fiscal Year 2027 adjustment amounts represent the final step in the City Council-approved change to the reappropriation process. There are sufficient expenditure savings in Fiscal Year 2026 to support all recommended adjustments.
Table 1: Year-End Capital Project Reappropriation Summary – By Fund Fund Number of
Projects
Recommended Expense
Reappropriation
Adjustment
Recommended Revenue
Reappropriation
Adjustment
Capital Improvement Fund (471) 68 $17,569,946 $9,008,780 Cubberley Infrastructure Fund (472) 2 $459,033 -
Airport Fund (530) 2 $85,000 $2,532,103
Electric Fund (523) 11 ($82,328) -
Fiber Optics Fund (533) 1 $45,457 -
Gas Fund (524) 1 $437,750 ($220,550)
Stormwater Management Fund (528) 6 ($137,394) ($82,982) Wastewater Collection Fund (527) 1 $117,450 -
Wastewater Treatment Fund (526) 7 $6,080,473 $82,062,817 Water Fund (522) 1 $72,080 -
Technology Fund (682) 4 ($121,596) -
Vehicle Replacement and Maintenance Fund
(681)
6 $3,960,298 -
Total All Funds 110 $28,486,170 $93,300,168
The active review of all project reappropriations results in a reduced level of reappropriated funding from one year to the next, compared to the process of automatically reappropriating unspent capital funding, and better reflects the needs of the various capital projects and of the overall program. In total, $170.6 million will be reappropriated for capital projects, offset by $205.1 million in revenue for the projects. It should be noted 88.0% of the total recommended revenue reappropriation adjustment amount of $93.3 million comes from the Wastewater Treatment Fund because there is substantial lag time in reimbursement of funds from the State Revolving Fund (SRF) loans that support Wastewater Treatment projects, primarily for the Secondary Treatment Upgrades ($40.9 million) and Local Advanced Water Purification System ($36.9 million) projects.
Recommended expenditure adjustments detailed in Attachment B include $17.6 million across 68 projects in the Capital Improvement Fund, primarily driven by Homekey Facilities ($2.3 million; PE-24005), Street Maintenance ($1.8 million; PE-86070), Bicycle and Pedestrian Plan Implementation ($1.6 million; PL-04010), City Bridge Improvements ($1.6 million; PE-20001), Traffic Signals ($1.4 million; PL-05030), and Rail Grade Separation ($2.4 million across Item 8
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Meadow/Charleston and Churchill). In the Vehicle Replacement and Maintenance Fund, adjustments of $4.0 million reflect multi-year delivery lead times for fleet equipment ordered in prior years. Net downward adjustments in the Electric Fund (-$82,328) and Stormwater Management Fund (-$137,394) reflect projects where construction was completed ahead of schedule in FY 2026.
Technical Clean-up Actions
As detailed in Attachment C, in FY 2027, staff recommends reducing the expenditure budget for the Palo Alto Art Center Ceramics Equipment project (AC-28003) by $14,988 to adjust for FY 2026 year-end over-expenditures and maintain the total project budget of $188,000 over the life of the project.
Staff also recommends revising the Animal Shelter Renovation project (PE-19002) expenditure and revenue budgets to reflect a transfer of $297,534 from the Public Services Donation Fund consisting of prior years' donations, to increase project scope and install sprinklers throughout the facility per the City Fire Marshal's recommendation.
FISCAL/RESOURCE IMPACT
Most projects, programs, and corresponding funding contained within this report were previously approved by the City Council for FY 2026. This report primarily realigns funding between fiscal years to align with the status of projects and programs. The ASD Director/CFO certified that sufficient funds exist in FY 2026 for the recommended Fiscal Year 2027 Operating Budget adjustments (Attachment A), and Capital Budget adjustments (Attachments B and C).
For Operating reappropriations, staff recommends expense reappropriations of $0.6 million in the General Fund, $12.5 million in Enterprise Funds, and $2.4 million in Special Revenue Funds.
Staff also recommends revenue reappropriations of $0.2 million in the General Fund and $2.6 million in Special Revenue Funds.
For Capital reappropriations (Attachment B), staff recommends net expenditure adjustments of $18.0 million in Capital Project Funds, $6.6 million in Enterprise Funds, and $3.8 million in Internal Service Funds, and revenue adjustments of $9.0 million in Capital Project Funds and $84.3 million in Enterprise Funds. Technical clean-up actions in Attachment C are fully supported by project balances and private donations with no General Fund reserve impact.
STAKEHOLDER ENGAGEMENT
Review and reconciliation of the funding available for both the Operating reappropriations and the reappropriations for individual Capital projects were coordinated between ASD divisions of the Office of Management and Budget and Accounting, as well as with the departments requesting the reappropriated funds.
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ENVIRONMENTAL REVIEW
Council action on this item is not a project under the California Environmental Quality Act (CEQA) as defined in CEQA Guidelines, section 15378, because budget reappropriations are a government funding mechanism 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).
ATTACHMENTS
Attachment A: FY 2026 to FY 2027 Operating Reappropriation Requests Attachment B: FY 2026 to FY 2027 Capital Reappropriation Requests Attachment C: Capital Improvement Plan FY 2027 Technical Clean-up Actions APPROVED BY:
Lauren Lai, Administrative Services Director
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FY 2024 TO FY 2025 OPERATING BUDGET REAPPROPRIATIONS ATTACHMENT A Fund
Number Fund Name Department Title Description
Recommended
Revenue
Appropriation
Recommended
Expense
Appropriation
102 General Fund City Manager's Office/Non-
Departmental
Race and Equity Fund This action reappropriates the remaining funds of the original $500k appropriated for the advancement of racial equity and the associated workplan. The City is continuing efforts to educate and train staff, Council, and Boards and Commission members on Diversity, Equity, Inclusion, and Belonging (DEIB) topics.
$ - $ 194,285 102 General Fund Human Resources Training Programs This request seeks to reappropriate $50,000 in remaining Contract Services funding from HR’s General Fund Training Programs cost center (13040002/31070).
$ - $ 50,000 102 General Fund Human Resources/Non-
Departmental
Childcare Assistance Program HR plans to reallocate remaining unused funds in FY26 to FY27 ($55k) and together with the FY27 request of 245K, this will bring total up to 300K in FY27. Extending pilot program into year 4 then will coordinate with CMO to gauge ongoing feasibility and interest for FY28 and beyond. $ - $ 55,000 102 General Fund Human Resources/Non-
Departmental
Management Development Funds This request seeks to reappropriate a portion of remaining FY26 Management Development funds to support organizational development and training contracts. After accounting for existing encumbrances, HR anticipates that $150,000 will be sufficient to cover ongoing and anticipated coaching, leadership development, and training needs. A similar reappropriation request was approved and processed in the prior fiscal year (2026-000300).
$ - $ 150,000 102 General Fund Public Works SFO GBAS & Airplane Noise Reappropriating the funds from FY26 to FY27. Continue engagement with San Francisco Airport on SFO's Ground Based Augmentation System (GBAS) project and other potential opportunities to decrease noise impacts (formerly CHS11). This action reappropriates $75,000 that had been allocated in the FY 2026 Adopted Budget for an on-call professional services contract that will support work tasks resulting from engagement initiated but not completed in FY 2026 with San Francisco International Airport (SFO) on the Ground Based Augmentation System (GBAS) project and other potential actions to decrease airplane noise. $ - $ 75,000 102 General Fund Community Services Roth Building Maintenance This action reappropriates $30,000 for FY26 and FY27 Roth Building Maintenance.
$ - $ 30,000 102 General Fund Library AMH maintenance service contract This action reappropriates $80k for Automated Materials Handling System (AMHS) maintenance service contract with Lyngsoe for the Library's AMH machines located at Mitchell Park, Rinconada, and Children's library branches.
$ - $ 80,000 102 General Fund Police Track Watch This action reappropriates $213,539 in expected revenue to align budget with actual billing per cost sharing agreement with PAUSD. $ 213,539
213,539$ 634,285$ Total General Fund Reappropriation
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FY 2024 TO FY 2025 OPERATING BUDGET REAPPROPRIATIONS ATTACHMENT A Fund
Number Fund Name Department Title Description
Recommended
Revenue
Appropriation
Recommended
Expense
Appropriation
523 Electric Fund Utilities CRM Platform This action reappropriates $467,646 from FY26 budget to the FY27 budget for a customer relationship management (CRM) platform to succeed EECP.
The previous contract expired on 4/30/2025.
$ 387,646
524 Gas Fund Utilities CRM Platform This action reappropriates $467,646 from FY26 budget to the FY27 budget for a customer relationship management (CRM) platform to succeed EECP.
The previous contract expired on 4/30/2025.
$ 80,000
523 Electric Fund Utilities Multi-family EV 1.0 and 2.0 (LCFS) This action reappropriates $2,889,889 from the FY26 budget to the FY27 budget for EV programs to reserve funding for the multi-family EV 1.0 and
2.0 programs.
$ 2,889,889
524 Gas Fund Utilities Affordable Housing Grant and
Advanced HVAC
This action reappropriates $7,911,000 from the FY26 budget to the FY27 budget for Electrification and HVAC programs to reserve funding for the Cap and Trade programs.
$ 7,911,000
524 Gas Fund Utilities Commercial HVAC Pilot and Block
Electrification
This action reappropriates $551,050 from the FY26 budget to the FY27 budget for Electrification and HVAC programs to support the S/CAP initiatives.
$ 551,050
524 Gas Fund Utilities PAUSD electrification projects This action reappropriates $610,000 to cover performance payments and customer rebates for the PAUSD electrification projects, funded by Gas Cap & Trade. Anticipated project completion by 12/31/2026.
$ 610,000
528 Stormwater
Management Fund
Public Works ESD - for GSI Parks Maintenance This action reappropriates $118,000.00 from the operating budget, from CC 50070311 and GL 31990, from FY26 to FY27 for Green Stormwater Infrastructure maintenance in the right-of-way as required by the Municipal Regional Stormwater Permit, NPDES Permit #CAS612008. $ 118,000
- 12,547,585.00
248 SLES Fund Police BSCC-ORT Organized Retail Theft grant provided by State of California Board of State and Community Corrections awarded in FY24 and expires in FY28. This is ongoing work patrolling retail districts, investigating related crimes, conducting directed enforcement operations, along with any related court time.
$ 2,603,390 $ 2,329,082 248 SLES Fund Police COPS Grant This action reappropriates $72,558 from FY26 to FY27 in the Supplemental Law Enforcement Services Fund (Fund 248) to support the commissioning of and moving into the new Public Safety Building, funded by the Citizens Option for Public Safety (COPS) state allocation. Work includes contract services ($53,458), non-capital tools and equipment ($7,100), and office machinery and furniture ($12,000).
$ 72,558
2,603,390 2,401,640
Total Enterprise Fund Reappropriation
Total Special Revenue Fund Reappropriation
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FY 2026 TO FY 2027 CAPITAL BUDGET REAPPROPRIATIONS ATTACHMENT B Fund Number and Name Project Title Proj. No. Adopted Exp Reapp Final Exp Reapp Total Exp Reapp Adopted Rev Reapp Final Rev Reapp Total Rev Reapp 471-Capital Improvement Fund Americans With Disabilities Act Compliance PF-93009 450,000 450,000 - - - Animal Shelter Renovation PE-19002 2,145,239 353,350 2,498,589 - - - Art In Public Spaces AC-86017 1,745,398 (39,340) 1,706,058 - - - Athletic Courts Resurfacing PG-06001 - 118,191 118,191 - - - Baylands Boardwalk Piling Repair PE-24000 - 43,938 43,938 - - - Baylands Comprehensive Conservation Plan PG-17000 43,000 25,100 68,100 - - - Baylands Interpretive Signage Program OS-24001 34,163 13,179 47,342 34,163 7,982 42,145 Baylands Levee Repair for Public Safety Access OS-09002 29,210 1,477 30,687 - - - Benches, Signage, Walkways, Perimeter Landscaping, and Site PG-06003 - 183,455 183,455 - - - Bicycle and Pedestrian Transportation Plan Implementation PL-04010 435,000 1,623,811 2,058,811 86,300 - 86,300 Boulware Park Improvements PE-17005 - 155,977 155,977 - 13,796 13,796 Building Systems Improvements PF-01003 246,030 327,627 573,657 - - - California Avenue District Gateway Signs PE-17004 - 28,647 28,647 - - - California Avenue Parking District Parking Improvements PF-25000 50,000 (4,000) 46,000 50,000 - 50,000 California Avenue Streetscape Update PL-23000 241,000 46,167 287,167 - - - Charging Stations Repair and Maintenance PF-26001 92,349 (15,040) 77,309 - - - Charleston Road/Alma Street Railroad Crossing Safety Improve PL-25002 682,400 29,253 711,653 713,248 289,363 1,002,611 Children's Theatre Facility Upgrade/Repair AC-28002 125,000 125,000 - - - Churchill Avenue Enhanced Bikeway PL-14000 256,000 138,358 394,358 1,878,328 621,672 2,500,000 Churchill Avenue Rail Grade Separation and Safety Improvemen PL-24001 658,835 1,180,851 1,839,686 2,000,000 71,936 2,071,936 City Bridge Improvements PE-20001 - 1,570,094 1,570,094 - - - City Hall Space Planning PE-19000 - 16,400 16,400 - - - Civic Center Electrical Upgrade & EV Charger Installation PE-17010 1,351,085 1,351,085 174,000 - 174,000 Civic Center Fire Life Safety Upgrades PE-18016 324,997 (6) 324,991 - - - Civic Center Waterproofing Study and Repairs PE-15020 941,037 941,037 - - - Congestion Relief Projects PL-25001 400,000 68,436 468,436 400,000 100,000 500,000 Curb and Gutter Repairs PO-12001 - 17,901 17,901 - - - Downtown Automated Parking Guidance Systems, Access Controls PL-15002 32,898 - 32,898 - - - El Camino Park Turf Replacement PG-24000 - 1,748 1,748 - - - Electric Charger Infrastructure Installation PF-23000 436,857 2,400 439,257 - - - Electrification of City Facilities PE-24001 626,179 262,522 888,701 - - - Embarcadero Road Improvements (Alma Street to Emerson Avenue TR-26000 - 1,164,408 1,164,408 - 2,886,000 2,886,000 Emergency Gate at Foothill and Miranda PE-26003 50,000 50,000 - - - Fire Equipment Replacement FD-25000 279,908 (118,117) 161,791 262,557 (262,557) - Fire Station 4 Replacement PE-18004 2,349,248 157,062 2,506,310 - - - Fire Training Facility Replacement FD-24000 49,988 49,988 - - - Foothills Nature Preserve Boronda Lake Dock Replacement OS-18000 - 18,794 18,794 - - - Foothills Nature Preserve Dam Seepage Investigation and Repa PE-20000 100,144 18,005 118,149 - - - Foothills Nature Preserve Improvements PE-21000 494,646 494,646 - - - Golf Course Net and Turf Replacement PG-18000 - (14,970) (14,970) - - - Heritage Park Site Amenities Replacement PG-21000 77,586 (7,070) 70,516 - - - Homekey Facilities PE-24005 - 2,327,776 2,327,776 - - - JMZ Renovation AC-18001 185,000 80,130 265,130 - - - Johnson Park Renovation PE-21002 25,000 25,000 50,000 - - - Library Automated Material Handling LB-21000 329,248 329,248 - - - Library Furniture Replacements LB-26001 - 792 792 - - - Lucie Stern Community Theater Mechanical Equipment Replaceme PE-24002 1,949,713 250,000 2,199,713 - - - Lucie Stern Community Theatre Fire Curtain AC-24001 200,000 200,000 - - - Lucie Stern Community Theatre Theatrical and House Lighting PE-24003 - 276,347 276,347 - - - Meadow Drive and Charleston Road Rail Grade Separation and S PL-24000 1,593,463 1,216,146 2,809,609 1,197,619 2,497,287 3,694,906 Mitchell Park Community Center Audio Visual Equipment AC-26000 340,000 340,000 - - - Mitchell Park Library Repair PE-24006 50,000 (15,550) 34,450 - - - Municipal Service Center Lighting, Mechanical, and Electrica PF-16006 6,165,504 200,000 6,365,504 - - - New California Avenue Area Parking Garage PE-18000 997,012 997,012 - - - Expenses Revenues
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FY 2026 TO FY 2027 CAPITAL BUDGET REAPPROPRIATIONS ATTACHMENT B Fund Number and Name Project Title Proj. No. Adopted Exp Reapp Final Exp Reapp Total Exp Reapp Adopted Rev Reapp Final Rev Reapp Total Rev Reapp Expenses Revenues
471-Capital Improvement Fund New Downtown Parking Garage PE-15007 12,896,981 159,110 13,056,091 12,896,981 - 12,896,981 New Public Safety Building PE-15001 978,087 88,451 1,066,538 - - - Newell Road/San Francisquito Creek Bridge Replacement PE-12011 976,810 46,989 1,023,799 10,268,732 261,799 10,530,531 Off-Road Pathway Resurfacing And Repair OS-09001 38,000 41,361 79,361 - - - Open Space Lakes And Pond Maintenance OS-00002 - 24,248 24,248 - - - Open Space Trails and Amenities OS-00001 - 113,252 113,252 - - - PAAC Auditorium Audio Visual Equipment and Facility Public A AC-26001 165,506 (445) 165,061 - - - Palo Alto Art Center Ceramics Equipment AC-28003 68,527 (68,527) - - - - Park and Open Space Emergency Repairs PG-09002 43,779 (43,779) - - - - Park Restroom Installation PG-19000 319,704 105,102 424,806 319,704 - 319,704 Parking District Implementation PL-15003 193,900 193,900 - - - Parking Infrastructure Improvements PL-12000 200,000 352,203 552,203 - 415,035 415,035 Performing Arts Venues Seat Replacement AC-18000 108,023 11,152 119,175 - - - Railroad Grade Separation and Safety Improvements PL-17001 1,999,819 93,844 2,093,663 2,093,843 - 2,093,843 Ramona Street Streetscape Update PE-26002 139,328 30,000 169,328 - - - Ramos Park Improvements PG-14000 - 60,000 60,000 - - - Rinconada Park Improvements PE-08001 101,150 6,426 107,576 - - - Rinconada Pool Family Changing Room PE-24004 1,158,326 3,168 1,161,494 - - - Robles Park Improvements PE-18015 891,958 891,958 - - - Roofing Replacement PF-00006 300,000 300,000 - - - Roth Building Rehabilitation Phase 1 PF-23001 - 9,808 9,808 - 239,810 239,810 Safe Routes To School PL-00026 - 426,839 426,839 - - - San Francisquito Creek Joint Powers Authority Ongoing Creek PE-22000 54,521 54,521 - - - Sidewalk Repairs PO-89003 - 141,379 141,379 - - - Stanford Palo Alto Community Playing Fields Turf Replacement PG-26000 - 153,630 153,630 - - - Street Maintenance PE-86070 - 1,804,764 1,804,764 - 17,936 17,936 Traffic Signal and Intelligent Transportation Systems PL-05030 1,350,000 1,367,760 2,717,760 800,000 1,848,721 2,648,721 Tree Grate Alternatives PF-26000 - 100,000 100,000 - - - University Avenue Parking Improvements PF-14003 103,527 (1,038) 102,489 - - - University Avenue Streetscape Update PE-21004 1,946,000 814,999 2,760,999 - - - 471-Capital Improvement Fund Total 50,617,083 17,569,946 68,187,029 33,175,475 9,008,780 42,184,255 472-Cubberley Fund Cubberley Community Center Redevelopment CB-26000 305,061 253,470 558,531 - - - Cubberley Repairs CB-17001 100,000 205,563 305,563 - - - 472-Cubberley Fund Total 405,061 459,033 864,094 - - - 530-Airport Fund Airport Layout Plan AP-21000 - - - - 30,075 30,075 Automated Weather Observation System (AWOS) AP-19000 - 85,000 85,000 - 2,502,028 2,502,028 530-Airport Fund Total - 85,000 85,000 - 2,532,103 2,532,103 523-Electric Fund Colorado 60kV Bus Rebuild EL-17002 3,498,849 (513,249) 2,985,600 - - - Colorado Transformer #3 Replacement EL-19001 3,780,000 28,541 3,808,541 - - - East Meadow Substation 4 to 12kV Conversion EL-27004 - 9,892 9,892 - - - Electric Customer Connections EL-89028 - 372,365 372,365 - - - Electric Utility Geographic Information System EL-02011 - 170,390 170,390 - - - Foothills Rebuild (Fire Mitigation) EL-21001 - 80,653 80,653 - - - Grid Modernization 12kV Distribution Residential Rebuild EL-24000 12,762,653 - 12,762,653 39,240,000 - 39,240,000 Hanover Substation Upgrade Project EL-24001 2,957,140 - 2,957,140 - - - Inter-substation Line Protection Relay EL-17005 645,333 (63,592) 581,741 - - - Smart Grid Technology Installation EL-11014 268,098 (194,972) 73,126 - - - Substation Facility Improvements EL-89044 974,866 (24,151) 950,715 - - - Substation Protection Improvements EL-89038 - 246,984 246,984 - - - Underground System Rebuild EL-16001 612,910 (195,189) 417,721 - - - 523-Electric Fund Total 25,499,849 (82,328) 25,417,521 39,240,000 - 39,240,000 533-Fiber Optics Fund Fiber Optics Customer Connections FO-10000 - 45,457 45,457 - - - Fiber Optics Network - System Improvements FO-10001 43,310 - 43,310 - - - Item 8
Attachment B - FY 2026 to FY 2027 Capital Reappropriation Requests
Item 8: Staff Report
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FY 2026 TO FY 2027 CAPITAL BUDGET REAPPROPRIATIONS ATTACHMENT B Fund Number and Name Project Title Proj. No. Adopted Exp Reapp Final Exp Reapp Total Exp Reapp Adopted Rev Reapp Final Rev Reapp Total Rev Reapp Expenses Revenues
533-Fiber Optics Fund Fiber Optics Network - System Rebuild FO-16000 2,948,211 - 2,948,211 - - - Fiber-to-the-Premises (FTTP) FO-24000 7,501,748 - 7,501,748 - - - 533-Fiber Optics Fund Total 10,493,269 45,457 10,538,726 - - - 524-Gas Fund Gas Distribution System Improvements GS-11002 758,910 - 758,910 - - - Gas Line Repair at Arastradero Creek GS-25001 143,916 - 143,916 - - - Gas Main Replacement - Project 25 GS-15000 5,138,088 437,750 5,575,838 7,500,000 (220,550) 7,279,450 Gas Main Replacement - Project 26 GS-16000 2,002,190 - 2,002,190 - - - Gas Meters and Regulators GS-80019 198,910 - 198,910 - - - 524-Gas Fund Total 8,242,014 437,750 8,679,764 7,500,000 (220,550) 7,279,450 528-Stormwater Fund Center Drive Capacity Upgrades SD-26001 65,200 3,087 68,287 - - - Corporation Way System Upgrades and Pump Station SD-21000 201,333 (1,110) 200,223 - - - Green Stormwater Infrastructure SD-22001 1,030,250 (410,579) 619,671 1,030,250 (82,982) 947,268 Hamilton Avenue System Upgrades SD-25000 98,292 (41,195) 57,097 - - - Storm Drainage System Replacement And Rehabilitation SD-06101 882,265 308,594 1,190,859 - - - West Bayshore Road Pump Station SD-20000 - 3,809 3,809 - - - West Bayshore Road Trunk Line Improvements SD-23000 19,236 - 19,236 - - - 528-Stormwater Fund Total 2,296,576 (137,394) 2,159,182 1,030,250 (82,982) 947,268 527-Wastewater Collection Fund Sewer Lateral/Manhole Rehabilitation and Replacement WC-99013 927,852 - 927,852 - - - Wastewater System Improvements WC-15002 - 117,450 117,450 - - - Wastewater Collection System Rehabilitation Proj 32 WC-20000 334,530 - 334,530 - - - 527-Wastewater Collection Fund Total 1,262,382 117,450 1,379,832 - - - 526-Wastewater Treatment Fund Headworks Facility Replacement WQ-16002 2,988,974 150,000 3,138,974 2,988,974 1,768,026 4,757,000 Horizontal Levee Pilot WQ-22001 - 93,657 93,657 - - - Joint Intercepting Sewer Rehabilitation (Phase 1) WQ-24000 - - - - 1,164,062 1,164,062 Local Advanced Water Purification System WQ-19003 1,000,000 (90,523) 909,477 1,000,000 36,940,914 37,940,914 New Laboratory And Environmental Services Building WQ-14002 15,166,602 817,460 15,984,062 15,166,602 1,243,398 16,410,000 Outfall Line Construction WQ-19000 10,593,300 - 10,593,300 10,582,800 - 10,582,800 Plant Repair, Retrofit, and Equipment Replacement WQ-19002 - 5,109,879 5,109,879 - - - Secondary Treatment Upgrades WQ-19001 1,112,320 - 1,112,320 1,112,320 40,946,417 42,058,737 526-Wastewater Treatment Fund Total 30,861,196 6,080,473 36,941,669 30,850,696 82,062,817 112,913,513 522-Water Fund Water Distribution System Improvements WS-11003 96,300 - 96,300 - - - Water Main Replacement - Project 30 WS-16001 4,366,839 - 4,366,839 - - - Water Meters WS-80015 154,630 - 154,630 - - - Water Service and Hydrant Replacement WS-80014 50,000 - 50,000 - - - Water System Supply Improvements WS-11004 1,061,540 - 1,061,540 - - - Water Tank Seismic Upgrade and Rehabilitation WS-09000 100,000 - 100,000 - - - Water, Gas, Wastewater Utility GIS Data WS-02014 - 72,080 72,080 - - - 522-Water Fund Total 5,829,309 72,080 5,901,389 - - - 682-Technology Fund City Council Chambers Upgrade TE-19001 1,641,440 (10,192) 1,631,248 - - - Computer Aided Dispatch (CAD) Upgrade TE-23000 126,841 (41,153) 85,688 - - - Enterprise Resource Planning Upgrade TE-19000 894,907 (33,470) 861,437 - - - Infrastructure Management System TE-13004 365,281 (36,780) 328,501 - - - IT Data Center Upgrade TE-25000 980,000 - 980,000 - - - 682-Technology Fund Total 4,008,469 (121,596) 3,886,873 - - - 681-Vehicle Fund Emergency Repair and Replacement VR-15001 - 51,929 51,929 - - - FY 2020 Scheduled Vehicle and Equipment Replacement VR-20000 - 94,994 94,994 - - - FY 2023 Scheduled Vehicle and Equipment Replacement VR-23000 - 168,696 168,696 - - - FY 2024 Scheduled Vehicle and Equipment Replacement VR-24000 1,987,783 202,650 2,190,433 - - - FY 2025 Scheduled Vehicle and Equipment Replacement VR-25000 625,812 2,180,679 2,806,491 - - - FY 2026 Scheduled Vehicle and Equipment Replacement VR-26000 - 1,261,350 1,261,350 - - - 681-Vehicle Fund Total 2,613,595 3,960,298 6,573,893 - - - Grand Total 142,128,803 28,486,170 170,614,973 111,796,421 93,300,168 205,096,589 Item 8
Attachment B - FY 2026 to FY 2027 Capital Reappropriation Requests
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CAPITAL IMPROVEMENT PROGRAM FY 2027 TECHNICAL CLEAN-UP ACTIONS ATTACHMENT C Fund Name Department Project No. Project Title Description Revenue Expense Capital Improvement Fund Community Services AC-28003 Palo Alto Art Center Ceramics Equipment This project was over-expended in FY 2026 and the budget increased by $14,988 as part of the FY 2026
Year-End process. A corresponding decrease is
recommended in FY 2027 in order to maintain the
total project budget of $188,000 over the life of the
project.
$ (14,988)
Capital Improvement Fund Public Works PE-19002 Animal Shelter Renovation Staff recommends revising the project's FY 2027
revenue and expenditure budgets to reflect a
transfer of $297,534 from the Public Services
Donation Fund consisting of prior years' donations
from the George F. Goerl 2018 Revocable Trust
intended to benefit the Palo Alto Animal Shelter.
The transfer is recommended to enable compliance
with the City Fire Marshall's recommendation to
increase the scope of the project by installing
sprinklers throughout the facility for the safety of
employees and animals.
$ 297,534 $ 297,534
Public Services Donation Fund Non-Departmental N/A N/A
Staff recommends revising the Animal Shelter
Renovation project's FY 2027 revenue and
expenditure budgets to reflect a transfer of
$297,534 from the Public Services Donation Fund
consisting of prior years' donations from the George
F. Goerl 2018 Revocable Trust intended to benefit
the Palo Alto Animal Shelter. The transfer is
recommended to enable compliance with the City
Fire Marshall's recommendation to increase the
scope of the project by installing sprinklers
throughout the facility for the safety of employees
and animals.
$ 297,534
Item 8
Attachment C - Capital Improvement Plan FY 2027
Technical Clean-up Actions
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Transportation
Meeting Date: October 5, 2026
Report #:2608-6615
TITLE
Approval of Professional Services Contract Number C27196802 with BKF Engineers for the Design of Four Quadrant Gate Systems Improvements required for Quiet Zone Railroad Crossings at Churchill Avenue, Meadow Drive, and Charleston Road in an Amount Not to Exceed $1,294,522 for a term ending December 31, 2029; CEQA status: Categorically Exempt, CEQA Guidelines Section 15301.
RECOMMENDATION
Staff recommends the Council approve and authorize the City Manager or their designee to execute Contract No. C27196802 (Attachment A), with BKF Engineers, to prepare the final design documents including Plans, Specifications and Cost Estimates for the design of Quiet Zone Improvements, which primarily includes four quadrant gate systems, at Churchill Avenue, Meadow Drive, and Charleston Road for the total amount not-to-exceed $1,294,522 and a term ending December 31, 2029.
EXECUTIVE SUMMARY
Authorization to execute a professional services agreement with BKF Engineers will enable preparation of the final design and supporting documentation for construction of the quiet zone improvements along the Caltrain corridor at three of the four train crossings.
Implementation of Quiet Zones along the train corridor is a City Council priority to address longstanding community concerns regarding train horn noise. In 2025, the Quiet Zone Study recommended installation of four-quadrant gate systems at Churchill Avenue, Meadow Drive, and Charleston Road crossings. The City Council approved the conceptual plan for these improvements on November 10, 20251, and further prioritized implementation of Quiet Zones during its May 11, 20262, discussion of the Churchill Avenue crossing. 1 City Council, November 10, 2025; Item 7, Action Item, SR# 2509-5227 https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=83860&dbid=0&repo=PaloAlto https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=88038&dbid=0&repo=PaloAlto 2 City Council, May 11, 2026; Item 8, Action Item, SR# 2604-6320 https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=88038&dbid=0&repo=PaloAlto Item 9
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The Quiet Zones improvements will also serve as interim safety improvements until the planned grade separation projects are constructed. Implementation will require close coordination with Caltrain, the Federal Railroad Administration (FRA), and the California Public Utilities Commission (CPUC) to obtain the necessary approvals and permits.
BACKGROUND
Train horns create noise impacts in Palo Alto. Palo Alto has four at-grade crossing locations with 104 daily Caltrain services in addition to unscheduled Union Pacific freight services. At each of these locations, Federal regulations require that locomotive horns produce sounds from 96 to 110 decibels for at-grade crossings and that trains begin sounding these horns 15–20 seconds before entering public rail grade crossings, and no more than one-quarter mile in advance. The extent and severity of noise impacts is affected by factors including horn noise level and character, ambient noise levels, and prevailing winds.
In September 2024, the Peninsula Joint Powers Board (JPB) completed a multi-decade project to electrify Caltrain operations. Following electrification, Caltrain and Cities along the Peninsula noted an increase in noise complaints related to Caltrain horns, which had initially been set toward the high end of the legal limit. In November 2024, Caltrain adjusted horn noise levels to the low end of the legal range.
Quiet Zones are segments of a rail line where trains do not routinely sound horns at grade crossings. The locomotive engineer may still sound the horn at any time to provide a warning in response to an emergency or any perceived safety consideration. Establishment of Quiet Zones is regulated by FRA and requires installation of Supplemental Safety Measures (SSMs) to bring the Quiet Zone Risk Index below the Risk Index with Horns. The process for establishing Quiet Zones is illustrated in Figure 1 below.
Figure 1: Quiet Zone Implementation Process
1. Diagnostic
Review with
FRA & CPUC
2. Design of
Supplemental
Safety
Measures
(SSMs)
3.Request to
Alter Rail
Crossing to
CPUC (GO-88B)
4. Notice of
Intent (NOI) to
FRA & CPUC
5. Review &
Comment on
SSMs by FRA
6. Installation
of SSMs
7. Field Review
of SSMs &
Update of
FRA/CPUC
Inventory
8. Notice of
Establishment
(NOE) to FRA,
CPUC, JPB &
UP
9. Operators
Silence Routine
Horns
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The Palo Alto Council Priority affirmed implementation of quiet zones as a Council Priority under Public Safety, Wellness and Belonging. On March 4, 2024, City Council approved an agreement with Kimley Horn and Associates for performing a Quiet Zone Study (Staff Report 2311-2269)5.
The City of Palo Alto in collaboration with the City of Menlo Park conducted a QZ study to establish a quiet zone at the Palo Alto Avenue/Alma Street crossing in the initial project phase. The design of the improvements required for implementation of a QZ at Palo Alto Avenue was completed in early 2025 and associated improvements are under construction, and expected to be completed by March 2027. Once constructed, the City will be eligible to apply to the FRA for establishment of a quiet zone, train horns will not need to be sounded under normal circumstances. Gate bells will still sound and the train engineer will still have discretion to sound train horns in case of emergency or perceived danger.
The second phase of the quiet zone project for remaining three at-grade crossings of Churchill Avenue, E. Meadow Drive, and Charleston Road is underway. Quiet zone improvements at these locations will serve as interim measures to mitigate noise impacts before planned grade separations are constructed at these crossings.
The Federal Railroad Administration (FRA) Title 49 regulations establish safety requirements for local agencies that wish to mitigate train horn noise impacts by establishing Quiet Zones. The regulations require agencies to complete a quiet zone study to evaluate the Quiet Zone Risk Index (QZRI) and assess Supplemental Safety Measures (SSM) needed to make a crossing eligible for a quiet zone. In total, FRA lists fourteen recognized SSMs. Based on street geometry and nearby signal operations, the only feasible SSM identified for the three crossing locations under consideration in Palo Alto was a four-quadrant gate system.
The City prepared conceptual plans for the required improvements to implement quadrant gate systems at Churchill Avenue, Meadow Drive and Charleston Road to meet regulatory standards for quiet zones plus appropriate signage and striping. Staff also held a community outreach meeting on April 16, 2025, where community members expressed support for the designs and a desire to expedite implementation of quiet zones in Palo Alto.
Conceptual plans and alternatives were also reviewed by Planning and Rail Committee on August 20, 20246 and September 16, 20257 The project received positive feedback from these committees and Rail Committee unanimously recommended that City Council direct staff to proceed with design of improvements.
5 City Council meeting, March 4, 2024, Consent Item SR# 2311-2269 https://portal.laserfiche.com/Portal/DocView.aspx?id=70841&repo=r-704298fc 6 Rail Committee, August 20, 2024; Item 1, Action Item, SR# 2405-3085 https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=9263&dbid=0&repo=PaloAlto 7 Rail Committee, September 16, 2025; Item 2, Action Item, SR# 2507-4951 https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=83877&dbid=0&repo=PaloAlto Item 9
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On November 10, 2025, City Council approved the conceptual plans and directed Staff to initiate the design and review process for establishing Quiet Zone at the three crossings of Churchill Avenue Meadow Drive, and Charleston Road crossing.11 The Office of Transportation staff is now progressing with design of improvements required to implement quiet zone at these crossings. These efforts relate to Step 2: Design of Supplementary Safety Measures (SSM’s) of the flowchart presented above.
This staff report provides the findings of the City’s procurement efforts to secure the services of a consultant and seek approval for the award of the Consultant Contract to perform a Study.
ANALYSIS
The City requested proposals from qualified engineering consultants to prepare plans, specifications, and cost estimates for the improvements needed to implement Quiet Zones at the Churchill Avenue, Meadow Drive, and Charleston Road crossings, including four- quadrant gate systems. The scope includes advancing the existing conceptual plans into design, providing permitting support and obtaining the required GO88-B permit, coordinating with CPUC, FRA, and Caltrain and incorporating their review comments, conducting community outreach, and providing design support during construction.
Solicitation Process
A request for proposals (RFP) for the project was posted on April 28, 2026, on OpenGov, the City’s eProcurement platform. The solicitation period was open for 42 days and only two (2) proposals were received, both responsive to the RFP criteria. The solicitation closed on June 10, 2026.
Summary of Request for Proposal
Proposal Description Quiet Zone Study RFP No. 189371
Proposed Length of Project 36 months
Number of Proposal Packages Downloaded 44
Total Days to Respond to Proposal 42
Pre-Proposal Meeting No
Pre-Proposal Meeting Date NA
Number of Proposals Received 2
Proposal Price Range $1.06M - $1.21M
Public Link to Solicitation https://procurement.opengov.com/portal/palo- alto-ca/projects/260942
11 City Council, November 10, 2025; Item 7, Action Item, SR# 2509-5227 https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=83860&dbid=0&repo=PaloAlto Item 9
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Staff believes that the City only received two proposals for a number of reasons. First, the highly competitive environment and the specialized nature of the study requires experience with operating railroads, and working with Federal and State agencies - means that there are limited subject matter experts available to perform such studies. Staff reached out to other potential proposers for feedback, and some indicated that they did not submit a proposal due to existing workload commitments and scheduling constraints. Potential proposers also indicated that they only propose if they know that their service can deliver the high standards of quality expected by the City of Palo Alto.
BKF Engineers was selected because of the quality and effectiveness of their services, the experience of their field staff, prior record of strong performance with the city, and their ability to provide future services. BKF Engineers is also working on the design of safety improvements at Alma Street and Charleston Road crossing and recently completed the design and construction of safety improvements at Alma Street and Churchill Road crossing.
Therefore, BKF Engineers may also provide continuity to the design of required improvements for the Quiet Zones project. This contract is on the City’s professional services template, which permits the City to terminate without cause/for convenience by providing written notice to the consultant.
FISCAL/RESOURCE IMPACT
Funding of $1,400,000 is available in the FY 2027 Adopted Capital Budget for Capital Improvement Project #TR-27000, Quiet Zone Improvements, to fund design and related project development activities for quadrant gates at Churchill Avenue, Meadow Drive, and Charleston Road for FRA and CPUC permits, and staff and Caltrain project management.
Approval of this contract for an amount not to exceed $1,294,522 will leave approximately $105,478 in available project funding for the remaining project activities outside of this contract.
Construction costs are not included in this contract and will be evaluated as part of the final design and cost estimating process. The current five year capital improvement plan estimates $4.3 million in construction costs however, the amount will be determined following completion of final design and selection of a construction firm. This project is anticipated to impact operating expenses in the future. Once the project is in final design, estimates of the committed additional costs will be included in future CIP budget project descriptions and incorporated into future operating and maintenance budgets.
STAKEHOLDER ENGAGEMENT
Community and stakeholder outreach was conducted throughout the project. A community meeting was held on April 16, 2024, followed by presentations to the Rail Committee on August 20, 2024, and September 16, 2025. A diagnostic meeting with CPUC, FRA, Caltrain, and City staff was held in October 2024. The project was also Item 9
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presented to Transportation Connect. These meetings provided opportunities for stakeholders and public review and comment. Additionally, the project scope includes outreach to the community and various committees involved with rail and transportation related issues during the next steps of design and construction.
ENVIRONMENTAL REVIEW
The Project will qualify as Categorically Exempt under the California Environmental Quality Act (CEQA) as defined in CEQA Guidelines, section 15301 -Class 1, Minor Alteration to existing facilities. The project scope includes completion of the environmental documentation and required filing in accordance with CEQA guidelines.
ATTACHMENTS
Attachment A: BKF Transportation Engineers Contract No. C27196802 APPROVED BY:
Ria Hutabarat Lo, Chief Transportation Official
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CITY OF PALO ALTO CONTRACT NO. C27196802
AGREEMENT FOR PROFESSIONAL SERVICES
BETWEEN THE CITY OF PALO ALTO AND BKF ENGINEERS
This Agreement for Professional Services (this “Agreement”) is entered into as of the 28th day of September, 2026 (the “Effective Date”), by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and BKF ENGINEERS , a California corporation, located at 2100 Franklin Street, Suite 4C, Oakland CA 94612 (“CONSULTANT”).
The following recitals are a substantive portion of this Agreement and are fully incorporated herein by this reference:
RECITALS
A. CITY intends to design the improvements at Churchill Avenue, Meadow Drive, and Charleston Road crossings (the “Project”) and desires to engage a consultant to prepare plans, specifications, cost estimates and support city in establishing quiet zone along Caltrain corridor in in Palo Alto in connection with the Project (the “Services”, as detailed more fully in Exhibit A).
B. CONSULTANT represents that it, its employees and subconsultants, if any, possess the necessary professional expertise, qualifications, and capability, and all required licenses and/or certifications to provide the Services.
C. CITY, in reliance on these representations , desires to engage CONSULTANT to provide the Services as more fully described in Exhibit A, entitled “SCOPE OF SERVICES”.
NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions, in this Agreement, the parties agree as follows:
SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perform the Services described in Exhibit A in accordance with the terms and conditions contained in this Agreement. The performance of all Services shall be to the reasonable satisfaction of CITY.
Optional On-Call Provision (This provision only applies if checked and only applies to on-call agreements.)
CITY may elect to, but is not required to, authorize on- call Services up to the maximum compensation amount set forth in Section 4 (Not to Exceed Compensation).
CONSULTANT shall provide on- call Services only by advanced, written authorization from CITY as detailed in this Section. On -call Services, if any, s hall be authorized by CITY, as needed, with a Task Order assigned and approved by CITY’s Project Manager, as identified in Section 13 (Project Management). Each Task Order shall be in substantially the same form as Exhibit A -1 entitled “PROFESSIONAL SERVICES TASK ORDER”.
Each Task Order shall contain a specific scope of s ervices, schedule of performance and maximum compensation amount, in accordance with the provisions of this Agreement.
Compensation for on-call Services shall be specified by CITY in the Task Order, based on whichever is lowest: the compensation structure set forth in Exhibit C, the hourly rates set 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 Item 9
Attachment A - BKF
Transportation Engineers
Contract No. C27196802
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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 compensati on due to CONSULTANT for all Task Orders issued under this Agreement shall not exceed the amount of compensation set forth in Section 4. CONSULTANT shall only be compensated for on -call Services performed under an authorized Task Order and only up to the maximum compensation amount set forth in Section 4. Performance of and payment for any on-call Services are subject to all requirements and restrictions in this Agreement.
SECTION 2. TERM.
The term of this Agreement shall be for four year(s) be from the effective date of this agreement unless terminated earlier pursuant to Section 19 (Termination) of this Agreement.
SECTION 3. SCHEDULE OF PERFORMANCE. Time is of the essence in the performance of Services under this Agreement. CONSULTANT shall complete the Services within the term of this Agreement and in accordance with the schedule set forth in Exhibit B, entitled “SCHEDULE OF PERFORMANCE”. Any Services for which times for performance are not specified in this Agreement shall be commenced and completed by CONSULTANT in a reasonably prompt and timely manner based upon the circumstances and direction communicated to the CONSULTANT.
CITY’s agreement to extend the term or the schedule for performance shall not preclude recovery of damages for delay if the extension is required due to the fault of CONSULTANT.
SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to CONSULTANT for performance of the Services shall be based on the compensation structure detailed in Exhibit C, entitled “COMPENSATION,” including any reimbursable expenses specified therein, and the maximum total compensation shall not exceed One Million One Hundred Seventy -Six Thousand, Eight Hundred and Thirty -Eight, Dollars Dollars ($1,176,838). T he 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 One Hundred Seventeen Thousand, Six Hundred Eighty-Four Dollars ($117,684.00) for the performance of Additional Services ( as defined below). The total compensation for performance of the Services, Additional Services and any reimbursable expenses specified in Exhibit C, shall not exceed One Million, Two Hundred Ninety -Four Thousand, Five Hundred Twenty -Two Dollars ($1,294,522.00), 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 S ervices in this Section 4. CONSULTANT shall provide Additional Services only by advanced, written authorization from CITY as detailed in this Section . Additional Services, if any, shall be authorized by CITY with a Task Order assigned and authorized by CITY’s Project Manager, as identified in Section 13 (Project Management). Each Task Order shall be in substantially the same form as Exhibit A-1, entitled “PROFESSIONAL SERVICES TASK Item 9
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ORDER”. Each Task Order shall contain a specific scope of services, schedule of performance and maximum compensation amount, in accordance with the provisions of this Agreement. Compensation for Additional Services shall be specified by CITY in the Task Order, based on whichever is lowest: the compensation structure set forth in Exhibit C, the hourly rates set forth in Exhibit C-1, or a negotiated lump sum.
To accept a Task Order, CONSULTANT shall sign the Task Order and return it to CITY’s Project Manager within the time specified by the Project Manager, and upon authorization by CITY (defined as counter-signature by the CITY Project Manager), the fully exec uted Task Order shall become part of this Agreement. The cumulative total compensation to CONSULTANT for all Task Orders authorized under this Agreement shall not exceed the amount of compensation set forth for Additional Services in this Section 4 .
CONSULTANT shall only be compensated for Additional Services performed under an authorized Task Order and only up to the maximum amount of compensation set forth for Additional Services in this Section 4. Performance of and payment for any Additional Services are subject to all requirements and restrictions in this Agreement.
SECTION 5. INVOICES. In order to request payment, CONSULTANT shall submit monthly invoices to the CITY describing the S ervices performed and the applicable charges (including, if applicable, an identification of personnel who performed the Services, hours worked, hourly rates, and reimbursable expenses), based upon Exhibit C or, as applicable, CONSULTANT’s schedule of rates set forth in Exhibit C-1. If applicable, the invoice shall also describe the percentage of completion of each task. The information in CONSULTANT’s invoices shall be subject to verification by CITY. CONSULTANT shall send all invoices to CITY’s Project Manager at the address specified in Section 13 (Project Management) below. CITY will generally process and pay invoices within thirty (30) days of receipt of an acceptable invoice.
SECTION 6. QUALIFICATIONS/STANDARD OF CARE. All Services shall be performed by CONSULTANT or under CONSULTANT’s supervision. CONSULTANT represents that it , its employees and subcontractors, if any, possess the professional and technical personnel necessary to perform the Services required by this Agreement and that the personnel have sufficient skill and experience to perform the Services assigned to them. CONSULTANT represents that it, its employees and subcontractors, if any, have and shall maintain during the term of this Agreement all licenses, permits, qualifications, insurance and approvals of whatever nature that are legally required to perform the Services. All Services to be furnished by CONSULTANT under this A greement shall meet the professional standard and quality that prevail among professionals in the same discipline and of similar knowledge and skill engaged in related work throughout California under the same or similar circumstances.
SECTION 7. COMPLIANCE WITH LAWS . CONSULTANT shall keep itself informed of and in compliance with all federal, state and local laws, ordinances, regulations, and orders that may affect in any manner the Project or the performance of the Services or those engaged to perform Services under this Agreement, as amended from time to time . CONSULTANT shall procure all permits and licenses, pay all charges and fees, and give all notices required by law in the performance of the Services.
SECTION 8. ERRORS/OMISSIONS. CONSULTANT is solely responsible for costs, including, but not limited to, increases in the cost of Services , arising from or caused by CONSULTANT’s errors and omissions, including, but not limited to, the costs of corrections such errors and omissions, any change order markup costs, or costs arising from delay caused by the errors and omissions or unreasonable delay in correcting the errors and omissions.
SECTION 9. COST ESTIMATES. If this Agreement pertains to the design of a public works project, CONSULTANT shall submit estimates of probable construction costs at each phase of Item 9
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design submittal. If the total estimated construction cost at any submittal exceeds the CITY’s stated construction budget by ten percent (10%) or more , CONSULTANT shall make recommendations to CITY for aligning the P roject design with the budget, incorporate CITY approved recommendations, and revise the design to meet the Project budget, at no additional cost to CITY.
SECTION 10. INDEPENDENT CONTRACTOR. CONSULTANT acknowledges and agrees that CONSULTANT and any agent or employee of CONSULTANT will act as and shall be deemed at all times to be an independent contractor and shall be wholly responsible for the manner in which CONSULTANT performs the S ervices requested by CITY under this Agreement.
CONSULTANT and any agent or employee of CONSULTANT will not have employee status with CITY, nor be entitled to participate in any plans, arrangements, or distributions by CITY pertaining to or in connection with any retirement, health or other benefits that CITY may offer its employees. CONSULTANT wi ll be responsible for all obligations and payments, whether imposed by federal, state or local law, including, but not limited to, FICA, income tax withholdings, workers’ compensation, unemployment compensation, insurance, and other similar responsibilities re lated to CONSULTANT’s performance of the S ervices, or any agent or employee of CONSULTANT providing same. Nothing in this Agreement shall be construed as creating an employment or agency relationship between CITY and CONSULTANT or any agent or employee of CONSULTANT. Any terms in this Agreement referring to direction from CITY shall be construed as providing for direction as to policy and the result of CONSULTANT ’s provision of the Services only, and not as to the means by which such a result is obtained.
SECTION 11. ASSIGNMENT . The parties agree that the expertise and experience of CONSULTANT are material considerations for this Agreement. CONSULTANT shall not assign or transfer any interest in this Agreement nor the performance of any of CONSULTANT’s obligations hereunder without the prior written approval of the C ity Manager. Any purported assignment made without the prior written approval of the City Manager will be void and without effect. Subject to the foregoing, the covenants, terms, conditions and provisions of this Agreement will apply to, and will bind, the heirs, successors, executors, administrators and assignees of the parties.
SECTION 12. SUBCONTRACTING.
Subcontracts Authorized: Notwithstanding Section 11 (Assignment ) above, CITY agrees that subcontractors may be used to complete the Services. The subcontractors authorized by CITY to perform work on this Project are:
RSE Corporation
1820 Gateway Dr.
Suite 200
San Mateo, CA 94404
Hexagon Transportation Consultants
4 North Second Street, Suite 400
San Jose, CA 95113
Callander Associates
2025 Gateway Place, Suite 285
San Jose, CA 95110
Bess Utility Solutions (Supplier)
2463 Tripaldi Way
Hayward, CA 94545
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CONSULTANT shall be responsible for directing the work of any subcontractors and for any compensation due to subcontractors . CITY assumes no responsibility whatsoever concerning compensation of subcontractors. CONSULTANT shall be fully responsible to CITY for all acts and omissions of subcontractors . CONSULTANT shall change or add subcontractors only with the prior written approval of the City Manager or designee.
SECTION 13. PROJECT MANAGEMENT. CONSULTANT will assign Jason Yee, email:
[email protected], telephone: (650) 482-6434 as the CONSULTANT’s Project Manager to have supervisory responsibility for the performance, progress, and execution of the Services and represent CONSULTANT during the day- to-day performance of the Services. If circumstances cause the substitution of the CONSULTANT’s Project Manager or any other of CONSULTANT’s key personnel for any reason, the appointment of a substitute Project Manager and the assignment of any key new or replacement personnel will be subject to the prior written approval of the CITY’s Project Manager. CONSULTANT, at CITY’s request, shall promptly remove CONSULTANT personnel who CITY finds do not perform the Services in an acceptable manner, are uncooperative, or present a threat to the adequate or timely completion of the Services or a threat to the safety of persons or property.
CITY’s Project Manager is Ripon Bhatia , Senior Engineer , Office of Transportation, 250 Hamilton Avenue, Palo Alto, CA , 94301, Telephone: (650) 329-2269.. CITY’s Project Manager will be CONSULTANT’s point of contact with respect to performance, progress and execution of the Services. CITY may designate an alternate Project Manager from time to time.
SECTION 1 4. OWNERSHIP OF MATERIALS . A ll work product, including without limitation, all writings, drawings, studies, sketches, photographs, plans, reports, specifications, computations, models, recordings, data, documents, and other materials and copyright interests developed under this Agreement, in any form or media, shall be and remain the exclusive property of CITY without restriction or limitation upon their use. CONSULTANT agrees that all copyrights which arise from creation of the work product pursuant to this Agreement are vested in CITY, and CONSULTANT hereby waives and relinquishes all claims to copyright or other intellectual property rights in favor of CITY. Neither CONSULTANT nor its subcontractors, if any, shall make any of such work product available to any individual or organization without the prior written approval of the C ity Manager or designee. CONSULTANT makes no representation of the suitability of the work product for use in or application to circumstances not contemplated by the Scope of Services.
SECTION 15. AUDITS . CONSULTANT agrees to permit CITY and its authorized representatives to audit, at any reasonable time during the term of this Agreement and for four (4) years from the date of final payment, CONSULTANT’s records pertaining to matters covered by this Agreement, including without limitation records demonstrating compliance with the requirements of Section 10 (Independent Contractor). CONSULTANT further agrees to maintain and retain accurate books and records in accordance with generally accepted accounting principles for at least four (4) years after the expiration or earlier termination of this Agreement or the completion of any audit hereunder, whichever is later.
SECTION 16. INDEMNITY.
16.1. To the fullest extent permitted by law, CONSULTANT shall indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents (each an “Indemnified Party”) from and against any and all third party demands, claims, or liability of any Item 9
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nature, including death or injury to any person, property damage or any other loss, including all costs and expenses of whatever nature including attorney’ s fees, experts fees, court costs and disbursements (“Claims”) to the extent that such Claims arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of CONSULTANT, its officers, employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an Indemnified Party. CITY will reimburse CONSULTANT for the proportionate percentage of defense costs exceeding CONSULTANT’s proportionate percentage of fault as determined by the final judgment of a court of competent jurisdiction.
SECTION 17. WAIVERS. No waiver of a condition or nonperformance of an obligation under this Agreement is effective unless it is in writing in accordance with Section 2 9.4 of this Agreement. No delay or failure to require performance of any provision of this Agreement shall constitute a waiver of that provision as to that or any other instance. Any waiver granted shall apply solely to the specific instance expressly stated. No single or partial exercise of any right or remedy will preclude any other or further exercise of any right or remedy.
SECTION 18. INSURANCE.
18.1. CONSULTANT, at its sole cost and expense, shall obtain and maintain, in full force and effect during the term of this Agreement, the insurance coverage described in Exhibit D, entitled “INSURANCE REQUIREMENTS”. CONSULTANT and its contractors, if any, shall obtain a policy endorsement naming CITY as an additional insured under any general liability or automobile policy or policies.
18.2. All insurance coverage required hereunder shall be provided through carriers with AM Best’s Key Rating Guide ratings of A -:VII or higher which are licensed or authorized to transact insurance business in the State of California. Any and all contractors of CONSULTANT retained to perform Services under this Agreement will obtain and maintain, in full force and effect during the term of this Agreement, identical insurance coverage, naming CITY as an additional insured under such policies as required above.
18.3. Certificates evidencing such insurance shall be filed with CITY concurrently with the execution of this Agreement. The certificates will be subject to the approval of CITY’s Risk Manager and will contain an endorsement stating that the insurance is primary coverage and will not be canceled, or materially reduced in coverage or limits, by the insurer except after filing with the Purchasing Manager thirty (30) days ’ prior written notice of the cancellation or modification. If the insurer cancels or modifies the insurance and provides less than thirty (30) days’ notice to CONSULTANT , CONSULTANT shall provide the Purchasing Manager written notice of the cancellation or modification within two (2) business days of the CONSULTANT’s receipt of such notice. CONSULTANT shall be responsible for ensuring that current certificates evidencing the insurance are provided to CITY’s Chief Procurement Officer during the entire term of this Agreement.
18.4. The procuring of such required policy or policies of insurance will not be construed to limit CONSULTANT ’s liability hereunder nor to fulfill the indemnification provisions of this Agreement. Notwithstanding the policy or policies of insurance, CONSULTANT will be obligated for the full and total amount of any damage, injury, or loss caused by or directly arising as a result of the Services performed under this Agreement, including such damage, injury, or loss arising after the Agreement is terminated or the term has expired.
SECTION 19. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES.
19.1. The City Manager may suspend the performance of the Services, in whole Item 9
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or in part, or terminate this Agreement, with or without cause, by giving ten (10) days prior written notice thereof to CONSULTANT. If CONSULTANT fails to perform any of its material obligations under this Agreement, in addition to all other remedies provided under this Agreement or at law, the City Manager may terminate this Agreement sooner upon written notice of termination. Upon receipt of any notice of suspension or termination , CONSULTANT will discontinue its performance of the Services on the effective date in the notice of suspension or termination.
19.2. In event of suspension or termination, CONSULTANT wi ll deliver to the City Manager on or before the effective date in the notice of suspension or termination, any and all work product, as detailed in Section 14 (Ownership of Materials), whether or not completed, prepared by CONSULTANT or its contractors, if any, in the performance of this Agreement. Such work product is the property of CITY, as detailed in Section 14 (Ownership of Materials).
19.3. In event of suspension or termination, CONSULTANT will be paid for the Services rendered and work products delivered to CITY in accordance with the Scope of Services up to the effective date in the notice of suspension or termination; provided, however, if this Agreement is suspended or terminated on account of a default by CONSULTANT, CITY will be obligated to compensate CONSULTANT only for that portion of CONSULTANT’s S ervices provided in material conformity with this Agreement as such determination is made by the City Manager acting in the reasonable exercise of his/her discretion . The following Sections will survive any expiration or termination of this Agreement: 14, 15, 16, 17, 19.2, 19.3, 19.4, 20, 25, 27, 28, 29 and 30.
19.4. No payment, partial payment, acceptance, or partial acceptance by CITY will operate as a waiver on the part of CITY of any of its rights under this Agreement, unless made in accordance with Section 17 (Waivers).
SECTION 20. NOTICES.
All notices hereunder will be given in writing and mailed, postage prepaid, by certified mail, addressed as follows:
To CITY: Office of the City Clerk
City of Palo Alto
Post Office Box 10250
Palo Alto, CA 94303
With a copy to the Purchasing Manager
To CONSULTANT: Attention of the P roject Manager at the address of CONSULTANT recited on the first page of this Agreement.
CONSULTANT shall provide written notice to CITY of any change of address.
SECTION 21. CONFLICT OF INTEREST.
21.1. In executing this Agreement, CONSULTANT covenants that it presently has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of the Services.
21.2. CONSULTANT further covenants that, in the performance of this Agreement, it will not employ subcontractors or other persons or parties having such an interest.
CONSULTANT certifies that no person who has or will have any financial interest under this Item 9
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Agreement is an officer or employee of CITY; this provision will be interpreted in accordance with the applicable provisions of the Palo Alto Municipal Code and the Government Code of the State of California, as amended from time to time . CONSULTANT agrees to notify CITY if any conflict arises.
21.3. If the CONSULTANT meets the definition of a “Consultant” as defined by the Regulations of the Fair Political Practices Commission, CONSULTANT will file the appropriate financial disclosure documents required by the Palo Alto Municipal Code and the Political Reform Act of 1974, as amended from time to time.
SECTION 22. NONDISCRIMINATION; COMPLIANCE WITH ADA.
22.1. As set forth in Palo Alto Municipal Code S ection 2.30.510, as amended from time to time, CONSULTANT certifies that in the performance of this Agreement, it shall not discriminate in the employment of any person due to that person’s race, skin color, gender, gender identity, age, religion, disability, national origin, ancestry, sexual orientation, pregnancy, genetic information or condition, housing status, marital status, familial status, weight or height of such person. CONSULTANT acknowledges that it has read and understands the provisions of Section
2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and agrees to meet all requirements of Section 2.30.510 pertaining to nondiscrimination in employment.
22.2. CONSULTANT understands and agrees that pursuant to the Americans Disabilities Act (“ADA”), programs, services and other activities provided by a public entity to the public, whether directly or through a contractor or subcontractor, are required to be accessible to the disabled public. CONSULTANT will provide the Services specified in this Agreement in a manner that complies with the ADA and any other applicable federal, state and local disability rights laws and regulations, as amended from time to time. CONSULTANT will not discriminate against persons with disabilities in the provision of services, benefits or activities provided under this Agreement.
SECTION 23. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE REQUIREMENTS. CONSULTANT shall comply with t he CITY’s Environmentally Preferred Purchasing policies which are available at CITY ’s Purchasing Department , hereby incorporated by reference and as amended from time to time. CONSULTANT shall comply with waste reduction, reuse, recycling and disposal requirements of CITY’s Zero Waste Program. Zero Waste best practices include, first, minimizing and reducing waste; second, reusing waste ; and, third, recycling or composting waste. In particular, C ONSULTANT shall comply with the following Zero Waste requirements:
(a) All printed materials provided by CONSULTANT to C ITY generated from a personal computer and printer including but not limited to, proposals, quotes, invoices, reports, and public education materials, shall be double-sided and printed on a minimum of 30% or greater post-consumer content paper, unless otherwise approved by CITY ’s Project Manager. Any submitted materials printed by a professional printing company shall be a minimum of 30% or greater post-consumer material and printed with vegetable-based inks. (b) Goods purchased by C ONSULTANT on behalf of CITY shall be purchased in accordance with CITY’s Environmental Purchasing Policy including but not limited to Extended Producer Responsibility requirements for products and packaging. A copy of this policy is on file at the Purchasing Department’s office.
(c) Reusable/returnable pallets shall be taken back by CONSULTANT , at no additional cost to CITY, for reuse or recycling. CONSULTANT shall provide documentation from the facility accepting the pallets to verify that pallets are not being disposed.
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SECTION 24. COMPLIANCE WITH PALO ALTO MINIMUM WAGE ORDINANCE .
CONSULTANT shall comply with all requirements of the Palo Alto Municipal Code Chapter 4.62 (Citywide Minimum Wage), as amended from time to time. In particular, for any employee otherwise entitled to the State minimum wage, who performs at least two (2) h ours of work in a calendar week within the geographic boundaries of the City, CONSULTANT shall pay such employees no less than the minimum wage set forth in Palo Alto Municipal Code Section 4.62.030 for each hour worked within the geographic boundaries of the City of Palo Alto. In addition, CONSULTANT shall post notices regarding the Palo Alto Minimum Wage Ordinance in accordance with Palo Alto Municipal Code Section 4.62.060.
SECTION 25. NON-APPROPRIATION. This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code, as amended from time to time. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that funds are not appropriated for the following fiscal year, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Agreement are no longer available. This S ection shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement.
SECTION 2 6. PREVAILING WAGES AND DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS.
26.1. This Project is subject to prevailing wages and related requirements as a “public works” under California Labor Code Sections 1720 et seq. and related regulations.
CONSULTANT is required to pay general prevailing wages as defined in California Labor Code Section 1773.1 and Subchapter 3, Title 8 of the California Code of Regulations Section 16000 et seq., as amended from time to time. Pursuant to Labor Code Section 1773, the CITY has obtained the general prevailing rate of per diem wages and the general rate for holiday and overtime work in this locality for each craft, classification, or type of worker needed to execute the contract for this Project from the State of California Department of Industrial Relations (“DIR”). Copies of these rates may be obtained at the CITY’s Purchasing Department office. The general prevailing wage rates are also available at the DIR, Division of Labor Statistics and Research, web site (see e.g. http://www.dir.ca.gov/DLSR/PWD/index.htm) as amended from time to time. CONSULTANT shall post a copy of the general prevailing wage rates at all Project job sites and shall pay the adopted prevailing wage rates as a minimum. CONSULTANT shall comply with all applicable provisions of Division 2, Part 7, Chapter 1 of the California Labor Code (Labor Code Section 1720 et seq. ), including but not limited to Sections 1725.5, 1771, 1771.1, 1771.4, 1773.2, 1774, 1775, 1776, 1777.5, 1782, 1810, 1813 and 1815, and all applicable implementing regulations, including but not limited to Subchapter 3, Title 8 of the California Code of Regulations Section 16000 et seq. (8 CCR Section 16000 et seq.) , as amended from time to time. CONSULTANT shall comply with the requirements of Exhibit E , entitled “ DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS”, for any contract for public works construction, alteration, demolition, repair or maintenance, including but not limited to the obligations to register with, and furnish certified payroll records directly to, DIR.
SECTION 27. CLAIMS PROCEDURE FOR “9204 PUBLIC WORKS PROJECTS” . For purposes of this Section 27, a “9204 Public Works Project” means the erection, construction, alteration, repair, or improvement of any public structure, building, road, or other public improvement of any kind. ( Cal. Pub. Cont. Code § 9204.) Per California Public Contract Code Section 9204, for Public Works Projects , certain claims procedures shall apply, as set forth in Exhibit F, entitled “Claims for Public Contract Code Section 9204 Public Works Projects”.
This Project is a 9204 Public Works Project and is required to comply with the claims procedures set forth in Exhibit F, entitled “ Claims for Public Contract Code Section 9204 Public Works Projects”.
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SECTION 28. CONFIDENTIAL INFORMATION.
28.1. In the performance of this Agreement, CONSULTANT may have access to CITY’s Confidential Information (defined below). CONSULTANT will hold Confidential Information in strict confidence, not disclose it to any third party, and will use it only for the performance of its obligations to CITY under this Agreement and for no other purpose.
CONSULTANT will maintain reasonable and appropriate administrative, technical and physical safeguards to ensure the security, confidentiality and integrity of the Confidential Information.
Notwithstanding the foregoing, CONSULTANT may disclose Confidential Information to its employees, agents and subcontractors, if any, to the extent they have a need to know in order to perform CONSULTANT’s obligations to CITY under this Agreement and for no other purpose, provided that the CONSULTANT informs them of, and requires them to follow, the confidentiality and security obligations of this Agreement.
28.2. “Confidential Information” means all data, information (including without limitation “Personal Information” about a California resident as defined in Civil Code S ection 1798 et seq., as amended from time to time) and materials, in any form or media, tangible or intangible, provided or otherwise made available to CONSULTANT by CITY, directly or indirectly, pursuant to this Agreement. Confidential Information excludes information that CONSULTANT can show by appropriate documentation: (i) was publicly known at the time it was provided or has subsequently become publicly known other than by a breach of this Agreement; (ii) was rightfully in CONSULTANT’s possession free of any obligation of confidence prior to receipt of Confidential Information; (iii) is rightfully obtained by CONSULTANT from a third party without breach of any confidentiality obligation; (iv) is independently developed by employees of CONSULTANT without any use of or access to the Confidential Information; or (v) CONSULTANT has written consent to disclose signed by an authorized representative of CITY.
28.3. Notwithstanding the foregoing, CONSULTANT may disclose Confidential Information to the extent required by order of a court of competent jurisdiction or governmental body, provided that CONSULTANT will notify CITY in writing of such order immediately upon receipt and prior to any such disclosure (unless CONSULTANT is prohibited by law from doing so), to give CITY an opportunity to oppose or otherwise respond to such order.
28.4. CONSULTANT will notify City promptly upon learning of any breach in the security of its systems or unauthorized disclosure of, or access to, Confidential Information in its possession or control, and if such Confidential Information consists of Personal Information, CONSULTANT will provide information to CITY sufficient to meet the notice requirements of Civil Code Section 1798 et seq., as applicable, as amended from time to time.
28.5. Prior to or upon termination or expiration of this Agreement, CONSULTANT will honor any request from the CITY to return or securely destroy all copies of Confidential Information. All Confidential Information is and will remain the property of the CITY and nothing contained in this Agreement grants or confers any rights to such Confidential Information on CONSULTANT.
28.6. If selected in Section 30 (Exhibits), this Agreement is also subject to the terms and conditions of the Information Privacy Policy and Cybersecurity Terms and Conditions.
SECTION 29. MISCELLANEOUS PROVISIONS.
29.1. This Agreement will be governed by California law, without regard to its conflict of law provisions.
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29.2. In the event that an action is brought, the parties agree that trial of such action will be vested exclusively in the state courts of California in the County of Santa Clara, State of California.
29.3. The prevailing party in any action brought to enforce the provisions of this Agreement may recover its reasonable costs and attorneys’ fees expended in connection with that action. The prevailing party shall be entitled to recover an amount equal to the fair market value of legal services provided by attorneys employed by it as well as any attorneys’ fees paid to third parties.
29.4. This Agreement, including all exhibits, constitutes the entire and integrated agreement between the parties with respect to the subject matter of this Agreement, and supersedes all prior agreements, negotiations, representations, statements and undertakings , either oral or written. This Agreement may be amended only by a written instrument, which is signed by the authorized representatives of the parties and approved as required under Palo Alto Municipal Code, as amended from time to time.
29.5. If a court of competent jurisdiction finds or rules that any provision of this Agreement is void or unenforceable, the unaffected provisions of this Agreement will remain in full force and effect.
29.6. In the event of a conflict between the terms of this Agreement and the exhibits hereto (per Section 30) or CONSULTANT’s proposal (if any), the Agreement shall control. In the event of a conflict between the exhibits hereto and CONSULTANT’s proposal (if any), the exhibits shall control.
29.7. The provisions of all checked boxes in this Agreement shall apply to this Agreement; the provisions of any unchecked boxes shall not apply to this Agreement.
29.8. All section headings contained in this Agreement are for convenience and reference only and are not intended to define or limit the scope of any provision of this Agreement.
29.9. This Agreement may be signed in multiple counterparts, which, when executed by the authorized representatives of the parties, shall together constitute a single binding agreement.
SECTION 30. EXHIBITS. Each of the following exhibits, if the check box for such exhibit is selected below, is hereby attached and incorporated into this Agreement by reference as though fully set forth herein:
EXHIBIT A: SCOPE OF SERVICES
EXHIBIT A-1 PROFESSIONAL SERVICES TASK ORDER
EXHIBIT B: SCHEDULE OF PERFORMANCE
EXHIBIT C: COMPENSATION
EXHIBIT C-1: SCHEDULE OF RATES
EXHIBIT D: INSURANCE REQUIREMENTS
EXHIBIT E: DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS
THIS AGREEMENT IS NOT COMPLETE UNLESS ALL SELECTED EXHIBITS ARE ATTACHED.
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CONTRACT No. C27196802
SIGNATURE PAGE
IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives executed this Agreement as of the date first above written.
CITY OF PALO ALTO
____________________________
City Manager
APPROVED AS TO FORM:
__________________________
City Attorney or designee
BKF ENGINEERS
Officer 1
By: ________________________________
Name: Tyler Sheldon
Title: Senior Vice President
Officer 2
By: ________________________________
Name: Ryan Esposito
Title: Chief Financial Officer
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EXHIBIT A
SCOPE OF SERVICES
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.
The project scope of work includes the following tasks. This represents a detailed and recommended scope of work that addresses the requirements below, with a focus on achieving the objective of implementing a Quiet Zone in Palo Alto.
Task 1: Kick-off meeting and Final Scope/Schedule
The Consultant shall meet with the City Project Manager and key City staff to confirm project goals, refine and finalize the scope of work, establish a detailed project schedule, and agree upon communication protocols and a recurring meeting schedule.
• A project coordination meeting will be conducted at least biweekly. • The Consultant shall submit a final scope and schedule for City approval prior to proceeding with Task 2.
• Monthly progress reports shall be prepared summarizing scope status, schedule, budget, and key issues.
Anticipated meetings for this task include:
• One (1) project kick-off meeting
• Monthly coordination meetings with City staff
Task 2: Development of Plans, Specifications, and Engineers Estimate Consultants shall prepare design plans, specifications, and engineer’s estimates for construction of the project, based on the approved conceptual design. Improvement plans shall include all necessary required details prepared by a Registered Professional Civil Engineer with good standing with the State of California. Proposed improvements may include, but not limited to, the following types of elements: railroad gate arms and associated equipment, electrical connections for railroad signals and power connections with railroad cabinets, cabinet communication interconnect and equipment, site surveying, sidewalk realignment and/or widening, utility relocations, signage and striping, other rail improvements. Improvement plans for Railroad signal preemption and electrical connections for railroad signals and power shall be prepared by a Registered Professional Electrical Engineer with good standing with the State of California.
Project Specifications shall be consistent with Caltrain and Railroad Standard Specifications.
During plan development, the Consultant shall provide 50%, 90%, and 100% plans and engineer’s estimates based on the improvement plans and comparable bids for similar projects to Item 9
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ensure the project remains within the project budget.
The Consultant Team will be responsible for preparing its own survey and potholing to properly analyze the project area in order to prepare accurate design plans for construction. The City will make available any survey and CAD files prepared as part of past projects (if available). This proposal includes topographic survey to as-built around the proposed gate located at Churchill and Charleston (if already constructed). A topographic survey of the larger project area at West Meadow would be similar to the surveys prepared for the Churchill and Charleston Section 130 projects.
Consultant shall include in their fee, time required for meetings with City, Caltrain (JPB), CPUC, FRA and for plan review at various levels of design submittals and final approval from Caltrain staff.
Deliverables for Task 2 should include the following items:
• 50% PS&E Design Packages (PDF & 24-inch x 36-inch size plans, up to 10 sets) • 90% PS&E Design Package (PDF only)
• 100% PS&E Bid Package (24”x36” size plans, 5 sets, soft copy in PDF format and CADD files)
• Technical Project Specifications (soft copy in PDF format and Microsoft Word documents)
• 50% and 100% Engineers Cost Estimate
• Procurement of all necessary permits to allow for the construction of the project
Meetings with City and JPB staff for the review of design plans, specifications and construction staging shall be held on a regular basis and should be included in the Consultant’s fee. The Consultant shall also serve as a scribe at all meetings and provide the City with meeting notes and action notes within five (5) business days of each meeting.
The Consultant should plan on the following anticipated meeting schedule to successfully develop the final project plans:
• Monthly coordination meetings with City, CPUC, FRA, and PCJPB/Caltrain staff • Diagnostic meeting with all stakeholders (as needed)
• Coordination meetings with City Staff (as needed)
Task 3: Permitting & Reviews
Consultant shall assist in the development and submittal of materials required by outside agencies necessary for the implementation of the Quiet Zone. Consultant shall prepare and submit the GO 88-B application to the California Public Utilities Commission (CPUC) on behalf of the City to seek approval for the alteration of the at-grade crossing.
Services shall include:
• Preparation and submittal of the CPUC General Order (GO) 88-B application • Coordination with PCJPB/Caltrain to obtain plan review approvals, Site Specific Work Plan (SSWP) review and approval, permits, and service agreements for work within the Caltrain right-of-way
• Coordination with the FRA and preparation of all documentation required to obtain final Quiet Zone authorization
• Preparation of environmental documentation pursuant to the California Environmental Quality Act (CEQA). The project is anticipated to be categorically exempt; therefore, preparation and filing of Notices of Exemption are expected. Required filing fees shall be paid by the Consultant.
Deliverables include:
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• Final signed and approved Construction plan set, technical specifications, and bid schedule for Caltrain procurement to construct improvements • Service Agreement with Caltrain to perform this work
• Notice of Intent (NOI) filing
• GO 88-B approval
• Notice of Establishment (NOE)
• Final field review meeting
• Notice of Exemption (CEQA)
Task 4: Community Outreach
The Consultant shall be responsible for the preparation of all outreach materials, including media ads to be coordinated for publication by the City, meeting notice flyers for mailing to residents by the City, and community meeting presentations as directed by City staff. The Consultant shall also serve as a scribe at all community meetings.
The Consultant should plan on the following anticipated meeting schedule to successfully develop the final project plans:
Attend up to:
• Two (2) community outreach meetings
• One (1) Palo Alto Bicycle Advisory Committee meeting, • One (1) City-School Traffic Safety Committee meeting
• One (1) PTC meeting
• Two (2) Rail Committee meetings
• One (1) City Council meeting.
The City will assist in securing community and project team meeting facilities. The Consultant shall be responsible for the preparation of all outreach materials, including media ads to be coordinated for publication by the City, meeting notice flyers for mailing to residents by the City, and community meeting presentations. Outreach materials may include existing conditions aerial/project limits diagram, existing conditions photo boards, rendered site plan, and improvements image boards to illustrate the potential improvements. The Consultant shall also serve as a scribe at all community meetings and provide the City with meeting notes and action notes within five (5) business days of each meeting.
As an optional service, an online survey can be prepared to supplement input gathered during Community Meetings #1 and #2 to solicit community feedback on the developing design and summarize results in input summary memo.
Task 5: Construction Support Services (Optional):
Construction of the Quiet Zone improvements is anticipated to be managed by the Peninsula Corridor Joint Powers Board (PCJPB/Caltrain). The Consultant shall provide design support services, as needed, during the bidding and construction phases to assist the City and PCJPB/Caltrain.
During the bidding period, services may include responding to bidder questions and supporting the preparation of addenda, as required.
During construction, services may include, but are not limited to:
• Review and response to contractor submittals
• Response to Requests for Information (RFIs)
• Preparation of change order documentation related to design modifications Item 9
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• Participation in field reviews and meetings to resolve design conflicts or required changes
• Review and inspection of railroad signal connections, interconnections, and equipment necessary for railroad preemption and implementation of advanced preemption systems
All design support services shall be provided in coordination with the City and PCJPB/Caltrain and shall comply with applicable railroad and Caltrain standards.
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EXHIBIT A-1
PROFESSIONAL SERVICES TASK ORDER
CONSULTANT shall perform the Services detailed below in accordance with all the terms and conditions of the Agreement referenced in Item 1A below. All exhibits referenced in Item 8 are incorporated into this Task Order by this reference. CONSULTANT shall furnish the necessary facilities, professional, technical and supporting personnel required by this Task Order as described below.
CONTRACT NO.
OR PURCHASE ORDER REQUISITION NO. (AS APPLICABLE)
1A. MASTER AGREEMENT NO. (MAY BE SAME AS CONTRACT / P.O. NO. ABOVE):
1B. TASK ORDER NO.:
2. CONSULTANT NAME:
3. PERIOD OF PERFORMANCE: START: COMPLETION:
4 TOTAL TASK ORDER PRICE: $__________________
BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT $_______________
5. BUDGET CODE_______________
COST CENTER________________
COST ELEMENT______________
WBS/CIP__________
PHASE__________
6. CITY PROJECT MANAGER’S NAME & DEPARTMENT:_____________________________________
7. DESCRIPTION OF SCOPE OF SERVICES (Attachment A)
MUST INCLUDE:
SERVICES AND DELIVERABLES TO BE PROVIDED
SCHEDULE OF PERFORMANCE
MAXIMUM COMPENSATION AMOUNT AND RATE SCHEDULE (as applicable) REIMBURSABLE EXPENSES, if any (with “not to exceed” amount)
8. ATTACHMENTS: A: Task Order Scope of Services B (if any): _____________________________
I hereby authorize the performance of the
work described in this Task Order.
APPROVED:
CITY OF PALO ALTO
BY:____________________________________
Name __________________________________
Title___________________________________
Date ___________________________________
I hereby acknowledge receipt and acceptance of
this Task Order and warrant that I have
authority to sign on behalf of Consultant.
APPROVED:
COMPANY NAME: ______________________
BY:____________________________________
Name __________________________________
Title___________________________________
Date ___________________________________
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EXHIBIT B
SCHEDULE OF PERFORMANCE
CONSULTANT shall perform the Services so as to complete each milestone within the number of days/weeks specified below. The time to complete each milestone may be increased or decreased by mutual written agreement of the Project Managers for CONSULTANT and CITY so long as all work is completed within the term of the Agreement. CONSULTANT shall provide a detailed schedule of work consistent with the schedule below within 2 weeks of receipt of the notice to proceed (“NTP”) from the CITY.
Milestones
Completion
Number of Days/Weeks (as specified below)
from NTP
1. Meetings and Final Scope/Schedule 3 Months
2. Plans Specifications and Estimate 12 Months
3. Final Permitting and GO88B Approval 15 Months
4. Public Outreach 15 Months
5. Design Support During Construction 36 Months
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 Section 1 (Scope of Services) in the case of on-call Services, or as detailed in Section 4 in the case of Additional Services, provided in all cases that the schedule of performance shall fall within the term as provided in Section 2 (Term) of this Agreement.
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EXHIBIT C
COMPENSATION
CITY agrees to compensate CONSULTANT for Services performed in accordance with the terms and conditions of this Agreement, and as set forth in the budget schedule below. Compensation shall be calculated based on the rate schedule attached as E xhibit C-1 up to the not to exceed budget amount for each task set forth below.
CITY’s Project Manager may approve in writing the transfer of budget amounts between any of the tasks or categories listed below , provided that the total compensation for the Services, including any specified reimbursable expenses, and the total compensation for Additional Services (if any, per Section 4 of the Agreement) do not exceed the amounts set forth in Section 4 of this Agreement.
CONSULTANT agrees to complete all Services , any specified reimbursable expenses, and Additional Services (if any, per Section 4), within this /these amount(s). Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth in this Agreement shall be at no cost to the CITY.
BUDGET SCHEDULE
TASK NOT TO EXCEED AMOUNT
Task 1
(Meetings and F)
$24,970.00
Task 2
(PSE (meetings, traffic study, surveying, potholing, civil & signal design )
$945720.00
Task 3
(Permitting & Reviews)
$64,860.00
Task 4
(Community Outreach)
$91,900.00
Task 5
(Construction Support during construction)
$40,480.00
Sub-total for Services $1,167,930
Reimbursable Expenses (if any) $8908
Total for Services and Reimbursable Expenses $1,176,838.00 Additional Services (if any, per Section 4) $117,684.00 Maximum Total Compensation $1,294,522.00
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: $8908.00 Item 9
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A. Travel outside the San Francisco Bay A rea, including transportation and meals, if specified as reimbursable, will be reimbursed at actual cost subject to the City of Palo Alto’s policy for reimbursement of travel and meal expenses.
B. Long distance telephone service charges, cellular phone service charges, facsimile transmission and postage charges, if specified as reimbursable, will be reimbursed at actual cost.
All requests for reimbursement of expenses, if any are specified as reimbursable under this section, shall be accompanied by appropriate backup documentation and information.
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EXHIBIT C-1
SCHEDULE OF RATES
CONSULTANT’s schedule of rates is as follows:
BKF ENGINEERS
PROJECT MANAGEMENT
Principal-in-Charge $395.00
Manager VI* $365.00
Manager V* $335.00
Manager IV* $315.00
Manager III* $300.00
Manager II* $285.00
Manager I* $265.00
Project Coordinator III $220.00
Project Coordinator II $190.00
Project Coordinator I $165.00
Project Assistant II $140.00
Project Assistant I $120.00
CONSTRUCTION MANAGEMENT
Principal Construction Manager $375.00
Construction Manager V $345.00
Construction Manager IV $305.00
Construction Manager III $285.00
Construction Manager II $250.00
Construction Manager I $225.00
Resident Engineer IV $315.00
Resident Engineer III $295.00
Resident Engineer II $265.00
Resident Engineer I $245.00
Assistant Resident Engineer $230.00
Office Engineer II $165.00
Office Engineer I $140.00
Structure Representative IV $310.00
Structure Representative III $295.00
Structure Representative II $265.00
Structure Representative I $240.00
Construction Inspector III $220.00
Construction Inspector II $210.00
Construction Inspector I $195.00
FIELD SURVEYING
Utility Locator IV $245.00
Utility Locator III $215.00
Utility Locator II $180.00
Utility Locator I $130.00
Survey Party Chief II $255.00
Survey Party Chief I $245.00
Survey Chainperson II $170.00
Survey Chainperson I $160.00
Survey Apprentice IV $155.00
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Survey Apprentice III $145.00
Survey Apprentice II $130.00
Survey Apprentice I $100.00
DESIGN & TECHNICAL SERVICES
Principal Engineer $310.00
Engineer V $290.00
Engineer IV $265.00
Engineer III $245.00
Engineer II $215.00
Engineer I $190.00
Designer V $245.00
Designer IV $215.00
Designer III $190.00
Designer II $175.00
Designer I $160.00
Design Assistant $115.00
Principal Surveyor $310.00
Surveyor V $290.00
Surveyor IV $265.00
Surveyor III $245.00
Surveyor II $215.00
Surveyor I $190.00
Survey Technician V $245.00
Survey Technician IV $215.00
Survey Technician III $190.00
Survey Technician II $175.00
Survey Technician I $160.00
Survey Assistant $115.00
BIM Specialist III $245.00
BIM Specialist II $215.00
BIM Specialist I $190.00
Technician Manager $245.00
Technician IV $215.00
Technician III $190.00
Technician II $175.00
Technician I $160.00
Technical Analyst $160.00
ADMINISTRATIVE SUPPORT
Graphics/Visualization Specialist $165.00
Office Administrator II $135.00
Office Administrator I $110.00
PLANNING
Lead Technical Specialist $310.00
Technical Specialist V $275.00
Technical Specialist IV $240.00
Technical Specialist III $205.00
Technical Specialist II $170.00
Technical Specialist I $135.00
Planner/Scientist V $215.00
Planner/Scientist IV $200.00
Planner/Scientist III $185.00
Planner/Scientist II $165.00
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Planner/Scientist I $140.00
Technician/Field Monitor V $175.00
Technician/Field Monitor IV $160.00
Technician/Field Monitor III $145.00
Technician/Field Monitor II $130.00
Technician/Field Monitor I $115.00
GOVERNMENT SERVICES
City Engineer $295.00
Deputy City Engineer $250.00
Plan Check Engineer $205.00
Permit Engineer $195.00
Senior City Inspector $215.00
City Inspector $200.00
Inspector $185.00
Stormwater Specialist V $250.00
Stormwater Specialist IV $220.00
Stormwater Specialist III $190.00
Stormwater Specialist II $160.00
Stormwater Specialist I $130.00
Building Official $285.00
Senior Building Inspector $220.00
Building Inspector $195.00
Grant Writer/Specialist IV $220.00
Grant Writer/Specialist III $190.00
Grant Writer/Specialist II $160.00
Grant Writer/Specialist I $130.00
DIRECT EXPENSES Use of outside consultants and vendors as well as copies, blueprints, survey stakes, monuments, computer plots, telephone, travel (out of area) and all similar charges directly connected with the work will be charged at cost plus fifteen percent (15%). Mileage will be charged at the prevailing IRS mileage
reimbursement rate.
PREVAILING WAGE RATES Several categories above are used for field work on projects and subject to federal or state prevailing wage law and are subject to increases per DIR.
OVERTIME for non-exempt employees will be charged at 1.5 times the hourly rate shown above; overtime for exempt employees and other classifications will be charged at 1.0 times the hourly rate shown above.
EXPERT WITNESS rates are available upon request.
*MANAGER CLASSIFICATIONS include Program Manager, Project Manager, and Technical Manager.
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CALLANDER ASSOCIATES
GENERAL
The following list of fees and reimbursable expense items shall be used in the provision of services described in the agreement. These amounts shall be adjusted in January, upon issuance of an updated Standard Schedule of Compensation:
Hourly Rates
Principal $265 /hour
Senior Associate $241 /hour
Associate $229 /hour
Arborist/Construction Manager $202 /hour
Senior Project Manager $208 /hour
Project Manager 1 $199 /hour
Project Manager 2 $189 /hour
Job Captain $174 /hour
Designer 1 $164 /hour
Designer 2 $149 /hour
Assistant Designer $133 /hour
Accounting $201 /hour
Senior Project Administrator $153 /hour
Project Administrator $136 /hour
Reimbursable Expenses Rates
Expenses cost + 15%
printing and reproductions,
postage and delivery, mileage,
travel expenses (hotel / food),
testing and outside services, and
other project related expenses
Communications and Insurance Surcharge 2.5% of total fees Subconsultant Administration 10% of Subconsultant Costs
PAYMENTS
Payments are due within ten days after monthly billing. Callander Associates reserves the right to suspend services for non-payment if payment is not received within a period of 60 days after invoice date. Additionally invoices 60 days past due are subject to a 1.5% per month interest charge. Retainer amounts, if indicated, are due upon signing the agreement and shall be applied to the final invoice for the project.
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Hexagon 2026 Billing Rates
Professional Classification Rate per Hour
President $365
Principal $320
Senior Associate II $290
Senior Associate I $265
Associate II $240
Associate I $215
Planner/Engineer II $185
Planner/Engineer I $160
Outreach Coordinator $135
Admin/Graphics $135
Assistant Planner/Engineer $135
Technician $95
Direct expenses are billed at actual costs, with the exception of mileage, which is reimbursed at the current rate per mile set by the IRS.
Billing rates shown are effective January 1, 2026 and subject to change January 1, 2027.
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2026 Hourly Billing Rates
Labor Classification Fully Loaded Hourly Rate
Management
Principal Manager $385
Senior Project Manager $350
Project Manager $300
Engineering
Engineer V $350
Engineer IV $300
Engineer III $250
Engineer II $200
Engineer I $150
Engineering / Field Support (Note 2)
Construction Manager $270
Senior Inspector $230
Engineer Technician III / Inspector $190
Engineer Technician II $150
Engineer Technician I $120
2-Man Survey Crew $350
3-Man Survey Crew $460
Administration
Project Controls Manager (Admin III) $235
Project Controls Specialist (Admin II) $175
Project Controls Admin (Admin II) $115
Other Direct Costs
Description of Items Unit Cost
Printing and Reproductions (Third-Party) Actual Cost
Computer No Charge
Data Hosting As Required
Vehicle Expenses
A. Company Vehicles No Charge
B. Personal Vehicles MILE IRS Rate
C. Rental Vehicle Actual Cost
Delivery Services Actual Cost
Communications (Phone/Cell/Fax) No Charge
Miscellaneous
A. Travel and Per diem EA Note 3
B. Special supplies/equipment Actual Cost
NOTES:
(1) Hourly rates are subject to an annual increase and promotion beginning July 1 of each year (2) Classification includes the following:
• Field Technicians
• Office Technicians / CAD
• Surveyors / Survey Technicians
• Inspectors
• IT / Database / Software support
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Professional Services
Rev. Oct 16,2024