1 City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Community Services
Meeting Date: October 19, 2026
Report #:2608-6604
TITLE
Approval of a Letter of Intent with Palo Alto Community Child Care for collaboration on a longterm public-private partnership for expanded child care 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 a Letter of Intent (LOI) with Palo Alto Community Child Care (Attachment A) for collaboration on a longterm public-private partnership for expanded early child care and education 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 Palo Alto Community Child Care (PACCC) would expand availability of early child care and education at Cubberley. Staff recommend Council approve a Letter of Intent with PACCC (Attachment A) to formalize a joint commitment to advance this element of the project.
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) 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 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
2 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/CityClerk/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 Center5, TheatreWorks Silicon Valley,6 Maker Nexus7, and Avenidas and HeartFit for Life8.
Additionally, a term sheet with the Friends of the Recreation Wellness Center was approved by the Council on September 289.
ANALYSIS
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&cr=1 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=0eccdd30-6277-4ca9-9e5ecd7dd02e350a 8 City Council, October 5, 2026; Agenda Item #5; SR #2608-6603, https://cityofpaloalto.primegov.com/viewer/preview?id=0&type=8&uid=3cf67d0e-4a67-410d-bd69-3f0ff5d3c72c 9 City Council, September 28, 2026; Agenda Item #7; SR #2609- 6757,https://cityofpaloalto.primegov.com/viewer/preview?id=0&type=8&uid=db63b392-a0f9-4a52-9e99- 2732358ac520
3 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.
PACCC has been operating in Palo Alto since the early 1970s and now operates 18 child care centers throughout Palo Alto, from infants to fifth graders, serving over 1,200 children annually.
Through a long-standing agreement, the City has supported PACCC’s financial aid program to reduce or eliminate barriers for Palo Alto families to access quality childcare. PACCC provides childcare and education regardless of a family’s financial circumstances through Local, County, State Contracts and Subsidy Funds, as well as PACCC’s Scholarship Endowment.
As housing opportunities and population increases in Palo Alto, including near the Cubberley campus, it is expected that the need for affordable early child care and education will also increase. PACCC would supplement existing child care at Cubberley, offering care for infants, toddlers, and preschool-age children. PACCC and the City will work collaboratively to establish funding and cost sharing goals for PACCC’s capital investment, which could be achieved through fundraising or grants such as the California State Childcare Expansion grants.
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). 4 ATTACHMENTS
Attachment A: Letter of Intent between the City of Palo Alto and Palo Alto Community Child Care
Attachment B: Background on the Cubberley Project
APPROVED BY:
Kristen O'Kane, Community Services Director