June 16th, 2025

 

Call to Order

Agenda Changes, Additions and Deletions

 

Public Comment

 

Council Member Questions, Comments, and Announcements

 

Consent Calendar

1. Approval of Minutes from June 2, 2025 Meeting

2. Adoption of a Resolution Revising the Citywide Records Retention Schedule and Repealing Resolution No. 9565.

Resolution Adopting a Citywide Records Retention Schedule and Repealing Resolution No. 9565

2025 Records Retention Schedule – Redline

2025 Records Retention Schedule – Clean

3. Approval of Office of the City Auditor Emergency Preparedness: Wildfire Audit Report as Recommended by the Policy & Services Committee.

Emergency Preparedness – Wildfire Audit Report

Policy and Services April 8, 2025 Staff Report

4. Recommendation that the City Council to Refer to the Policy and Services Committee an Update to the City of Palo Alto Advocacy Process Manual to Address Sponsorship of Legislation; CEQA – Not a Project.

5. Policy & Services Committee Recommends Approval to Amend the City Auditor Bakertilly FY2024 and FY2025 Budgets for Task Orders to Realign the Authorized Budgets with a Net Zero Impact; CEQA – Not a Project.

Task Orders 4.25, 4.28, and 4.32

6. Approval of the Council Appointed Officers (CAO) Committee‘s Recommendation to Approve the CAO Annual Evaluation Process, Timeline, and Questions; and Approval of Professional Services Contract Number C25193915 with the Municipal Resources Group, LLC (MRG) in an Amount Not to Exceed $208,500 for Council Appointed Officer Performance Evaluation Services for a Period of Three Years. CEQA Status – Not A Project.

CAO Evaluation Timeline and Interview Materials

Contract with Municipal Resources Group, LLC; Contract # C25193915

7. Recommend the City Council Adopt the Fiscal Year 2026 Investment Policy as Recommended by the Finance Committee: CEQA Status – Not a Project.

Proposed FY 2026 Investment Policy

8. Adoption of Memoranda of Agreement with International Association of Fire Fighters (IAFF) Local 1319, Fire Chiefs Association (FCA), and Utilities Managers and Professionals Association of Palo Alto (UMPAPA) for Terms Ending June 30, 2028, and Adoption of the Updated Management and Professional Compensation Plan and Corresponding Salary Schedules; CEQA Status – Not a Project.

MOA – IAFF Local 1319

MOA-FCA

MOA-UMPAPA

Management & Professional Compensation Plan

IAFF Local 1319 Salary Schedule

FCA Salary Schedule

UMPAPA Salary Schedule

Management & Professional Salary Schedule

Supplemental Report

Staff Report Attachment D Revised Management Compensation Plan 2025 (Clean)

Public Comment

9. Approval of a Surveillance Use Policy for Security Cameras at Ada’s Café at Mitchell Park Community Center and Library; CEQA Status – Not a Project.

Surveillance Use Policy for Adas Cafe

Consent Questions

10. City Council Appointment of the Castilleja Neighborhood Committee in Accordance with Condition Number 33 Contained in Record of Land Use Action 2022-22 Authorizing Redevelopment of Private School at 1310 Bryant Street (Castilleja School). Environmental Assessment: Exempt from CEQA Pursuant to CEQA Guidelines Section 15061(b)(3).

Properties within 500-foot Distance to Castilleja

11. Accept Electric System Reliability Key Performance Indices; CEQA – Not a Project.

12. Approval of a Director’s Interpretation Pursuant to PAMC Section 18.01.025 Concluding That Noncomplying Residential Gross Floor Area may not be Relocated Within a Structure; Denial of the Associated Appeal; Direction to Prepare a Future Code Amendment for Administrative De Minimis Exceptions to the Zoning Code; CEQA: Exempt Pursuant to CEQA Guidelines Section 15061(b)(3).

Director’s Interpretation of PAMC Chapter 19.70

Appeal Statement

Consent Questions

13. Approve and Authorize the City Manager or Designee to Execute Purchase Orders as Needed with the Okonite Company, Extending the Term for the Blanket Purchase Order for Purchase and Standardization of Underground Cable Through December 31, 2025, and to Increase the Not-to-Exceed Amount by $100,000, for the Extension Period. CEQA Status: Not a Project.

14. Approval of Construction Contract No. C25194279 with Estate Design and Construction, Inc. in the Amount Not-to-Exceed $283,770 and Authorization for the City Manager or Their Designee to Negotiate and Execute Change Orders up to a Not-to-Exceed Amount of $28,377 for the University Underpass Refurbishment Project; Capital Improvement Program University Avenue Parking Improvements (PF-14003) and Street Lights Improvements (PO-05054) projects; CEQA Status – Exempt under CEQA Guidelines Section 15301(c).

Bid Summary

15. Approval of Change Order No. 3 to Contract C22183580 with MP Nexlevel of California, Inc., to reallocate funding from Change Order No. 2 to the Fiber-to-the-Premises (FTTP) Project and to incorporate FTTP into the Scope of Work extending through August 31, 2025; CEQA Status – For FTTP, Council action on this item is within the scope of the Final Initial Study and Mitigated Negative Declaration (IS/MND) for the Fiber-to-the-Premises Project, adopted on June 17, 2024; otherwise exempt.

MP NexLevel, Contract C22183580 Change Order No. 3

Public Comment

16. Approval of Two Professional Services Contracts for a Term of Two Years: C25193536 with 4Leaf, Inc. in an Amount Not-to-Exceed $291,253 and C25194267 with Interface Engineering, Inc. in an Amount Not-to-Exceed $101,585 for Fire Station 4 Replacement Capital Improvement Program Project (PE-18004); CEQA Status – Exempt under CEQA Guidelines Sections 15302 and 15303.

4Leaf, Inc; Contract C25193536

Interface Engineering, Inc.; Contract C25194267

Public Comment

17. Approval of Contract Amendment No. 4 to Contract Number C19171363 with Professional Account Management LLC, dba Duncan Solutions, to Extend the Contract for one year to June 30, 2026, and to Adjust Billing Rates, Without an Increase to Compensation, for a Not -to-Exceed Amount of $767,000 for Parking Permitting and Citation Management Services; CEQA Status — Not a Project.

Duncan, Contract C19171363A Amendment No. 4

Consent Questions

18. Approval of Amendment No. 3 to Contract Number C23184827 with Nomad Transit, LLC (Via) in the Amount of $1,100,000 for a total not to exceed $4,901,550 over a Four-Year Term to Continue the City of Palo Alto On-Demand Transit Service through June 30, 2026; CEQA status – not a project. Item Deferred to June 17, 2025 City Council Meeting

19. QUASI-JUDICIAL. 1033 Amarillo Avenue [25PLN-00015]: Request for a Parcel Map with Conditional Exceptions to Subdivide a 20,774-Square-Foot R-1 Property into Two Lots (10,661 and 10,113 Square Feet). Exceptions include Minimum Lot Width, Maximum Lot Size, and Residential Density. Zoning District: R-1 Single Family Residential. CEQA: Exempt pursuant to CEQA Guidelines Section 15301 (Existing Facilities).

Link to Parcel Map and Approved Preliminary Parcel Map (August 1, 2022)

Record of Land Use Action for Approved Preliminary Parcel Map (August 1, 2022)

20. SECOND READING: Ordinance of the Council of the City of Palo Alto Amending: Chapter 18.14 (Housing Incentives) of the Palo Alto Municipal Code to Implement Program 3.4E of the 2023-2031 Housing Element to Expand and Revise Regulations for the El Camino Real Focus Area; Making Conforming Amendments to Chapter 16.58 (Development Impact Fees) (FIRST READING: May 27, 2025; PASSED: 5-0-2, Lu, Veenker recused).

Amending Chapter 18.14 (Housing Incentives) of the Palo Alto Municipal Code to Implement Program 3.4E of the 2023-2031 Housing Element to Expand and Revise Regulations for the El Camino Real Focus Area; Making Conforming Amendments to Chapter 16.58 (Development Impact Fees)

Public Comment

21. SECOND READING: Ordinance of the Council of the City of Palo Alto Amending Title 16 (Building Regulations) and Title 18 (Zoning) of the Palo Alto Municipal Code to Amend Requirements Relating to Accessory Dwelling Units and Junior Accessory Dwelling Units (FIRST READING: May 12, 2025; PASSED 7-0).

Amending Title 16 (Building Regulations) and Title 18 (Zoning) of the Palo Alto Municipal Code to Amend Requirements Relating to Accessory Dwelling Units and Junior Accessory Dwelling Units

 

City Manager Comments

Presentation

 

Action Items

22. PUBLIC HEARING & PROPOSITION 218 HEARING: Finance Committee Recommends Adoption of Six Resolutions: 1) Approving the Fiscal Year 2026 Wastewater Collection Utility Financial Forecast and Reserve Management Practices, Amending Wastewater Collection Rate Schedules S-1, S-2, S-6 and S-7, and Repealing Wastewater Collection Rate Schedules S-3 and S-4; 2) Approving the Fiscal Year 2026 Water Utility Financial Forecast, Reserve Management Practices and Reserve Transfers, and Amending Water Rate Schedules W-1, W-2, W-3, W-4, and W-7; 3) Approving the Fiscal Year 2026 Gas Utility Financial Forecast and Reserve Management Practices, Reserve Transfer, and General Fund Transfer, Approving the Distribution of a Climate Credit to Small and Medium Capacity G-2 Customers in December 2025, and Amending Gas Rate Schedules G-1, G-2, G-3 and G-10; 4) Approving the Fiscal Year 2026 Electric Utility Financial Forecast, Reserve Management Practices and Reserve Transfers, and Amending Electric Rate Schedules E-1, E-2, E-2-G, E-4, E-4-G, E-4 TOU, E-7, E-7-G, E-7 TOU, E-14, E-16, E-EEC-1, and E-NSE-1; 5) Amending Utility Rate Schedules EDF-1 and EDF-2, and Approving the Palo Alto Fiber Broadband Internet Services Rate Schedule F-1; and 6) Amending Storm Water Utility Rate Schedule D-1; CEQA Status: Not a project under CEQA Guidelines Sections 15378(b)(4) and (5) and Exempt Under Section 15273(a).

Resolution for the FY 2026 Wastewater Collection Utility

Resolution for the FY2026 Water Utility

Resolution for the FY2026 Gas Utility

Resolution for the FY2026 Electric Utility

Resolution for the FY2026 Fiber Optic Utility

Resolution for the FY2026 Storm Water Management Fee Rates

Table of URLs for Exhibits to Attachments A – F

Staff Presentation

Public Comment

 

23. PUBLIC HEARING: Presentation on Status of Vacancies and Recruitment and Retention Efforts and Adoption of Budget Ordinance for Fiscal Year 2026, Including the Operating and Capital Budgets and Municipal Fee Schedule; Adoption of a Resolution determining the Appropriations Limit for Fiscal Year 2026; Vacancies and Recruitment Update (AB2561 Compliance); and Approval of FY 2026 Non-Profit Workplan Phase I Awards as Recommended by the Policy & Services Committee; and Adoption of a Resolution to Extend and Amend the Development Services Reserve Fund Policy; CEQA Status – Not a Project.

FY2026 Budget Adoption Ordinance

City Manager’s Fiscal Year 2026 Proposed Operating & Capital Budgets & Municipal Fee

Amendments to the City Manager’s Fiscal Year 2026 Proposed Operating and Capital Budgets

Table of Organization

Fiscal Year 2026 Municipal Fee Charges

Attachment A, Exhibit 6 – Planning and Development Services Cost of Service Study and Municipal Fee Adjustments

Citywide Cost of Services Study and Municipal Fee Adjustments

FY 2026 City Appropriations Limit Resolution

Appropriations Limit Calculation

FY 2026 Summary of Stanford Investments

AB2561 Reporting – Vacancy Data by Bargaining Unit

Supplemental Report A

Resolution to Extend and Amend the Development Services Reserve Fund (DSRF) Policy Previously Adopted by Ordinance No 10142

Supplemental Report B

PS FY26 Nonprofit Partnership Workplan Phase I Recommendations

Supplemental Report B – Attachment B Palo Alto Museum Proposal

Staff Presentation

SEIU Presentation

Public Comment

 

24. Approval of Five Items to Support the Newell Road/San Francisquito Creek Bridge Replacement Project PE-12011: 1) Construction Contract No. C25194068 with Granite Construction Company in the Amount Not-to-Exceed $9,399,787 and Authorization for the City Manager or Their Designee to Negotiate and Execute Change Orders to the Contract up to a Not-to-Exceed Amount of $939,979; 2) Approval of Professional Services Contract No. C25190454 with Zoon Engineering, Inc, in the Amount of $2,559,915 for Construction Management Services through December 31, 2026; 3) Approval of Amendment No. 7 to Contract No. C12142825 with NV5, Inc. to extend the contract term through December 31, 2026 for Construction Support; 4) Approval of Amendment No. 3 to a Cost Share Agreement with Santa Clara Valley Water District Providing Local Matching Funds in the Amount $155,458 for Design, Right of Way Appraisal and Acquisition and Construction Support for the Newell Road/San Francisquito Creek Bridge Replacement Project; and 5) Adoption of a FY 2025 Budget Amendment in the Capital Improvement Fund; CEQA Status – Environmental Impact Report for Newell Road/San Francisquito Creek Bridge (Resolution No. 9889).

Contract No. C25194068 Bid Summary

Contract No. C25190454 with Zoon Engineering, Inc

Amendment No. 7 to Contract No. C12142825 with NV5, Inc.

Amendment No. 3 to Cost Share Agreement with Santa Clara Valley Water District

Staff Presentation

Public Comment

Adjournment