City Council - December 15, 2025

Three rail crossing concepts advance to design

The City Council voted 6-0-1 to advance a distinct grade-separation concept at each of three rail crossings to 15% design and related preliminary engineering and environmental work. The approved scope calls for a Churchill Avenue partial underpass without a landscaping strip, together with a bicycle and pedestrian crossing at Seal Avenue using an Alma Street ramp and attention to east-side bicycle safety; a Meadow Drive hybrid studied in both earth-and-berm and podium forms; and a Charleston Road underpass with a direct-access ramp.

The direction also includes an implementation analysis of constructing only the Charleston Road underpass. Vice Mayor Vicki Veenker moved the final direction after council members debated whether one underpass could deliver more corridor benefit than hybrid projects at both Meadow and Charleston.

A traffic model presented by staff estimated cumulative network delay during the morning peak at 115 hours under existing conditions, 75 hours with hybrid designs and 30 hours with underpasses. Staff cautioned that the forecasts have limitations and said advancing design would establish project footprints and support market-based cost estimates.

The federal agreement requires preliminary engineering and environmental analysis for all three crossings, with an October 2027 grant completion deadline. Staff warned that abandoning work at Churchill could jeopardize funding and future grant competitiveness. Keith Reckdahl recused because his residence was within 500 feet of the intersection involved in the item; the other six council members voted for the motion.

Council weighs a smaller Cubberley package without a vote

Council concluded a Cubberley Community Center study session without taking formal action after generally favoring a phased approach focused first on land acquisition, safety, accessibility and repairs. Members also emphasized potential funding from development impact fees, donors and partners rather than relying almost entirely on voters. Staff plans a third poll using specific ballot language, tax mechanisms, amounts and funded uses.

The estimated $392 million first phase includes a proposed $65.5 million land acquisition, repairs, a recreation and wellness center and a performing-arts complex. Future master-plan phases are estimated at another $220 million. Those estimates assume construction begins in April 2030.

Staff said a 0.5% sales tax could finance about $218 million, but the city would need state statutory authorization because its available capacity under the existing cap was described as 0.25%. A general sales tax would require a simple majority. A square-footage-based parcel tax averaging about $250 annually per household could finance an estimated $102 million but would require two-thirds voter approval.

The second poll found 66% initial support for the Cubberley concept and 64% support after respondents heard positive and negative messages. Fifty-three percent indicated willingness to pay $250 annually for land acquisition and minor renovations. Several council members questioned the affordability or regressive effects of a sales tax, while others supported testing both tax options. No ballot measure was selected.

Council approves map for 368 rentals and financing for 130 affordable units

Council unanimously approved a final map merging three contiguous parcels at 3150 El Camino Real into a 111,030-square-foot parcel for a previously approved 368-unit rental development. The 7-0 consent-calendar action facilitates construction of the approved 443,522-square-foot residential building rather than approving the housing project anew.

Through the same consent-calendar vote, Council gave legally required TEFRA approval for conduit financing of a 130-unit affordable multifamily rental project at 3001 El Camino Real. The action authorized California Municipal Finance Authority revenue bonds of up to $80 million for El Camino PA, L.P.

Carbon-neutral plan and credit exchange are reaffirmed

Council voted 7-0 on consent to reaffirm Palo Alto’s Carbon Neutral Plan and Renewable Energy Credit Exchange Program. The meeting record reports $27.3 million in net earnings from renewable energy credit transactions from 2020 through 2025, including $12.7 million in net revenue attributed to the exchange program. It also reports that $10.1 million has been set aside for local decarbonization and projects another $9.5 million in exchange-program net revenue from 2026 through 2030.

Council separately approved the city’s 2024 power-source disclosure and power-content reports. The record lists $10.86 million in net revenue from 2024 renewable energy credit transactions, with $2.83 million attributed to the exchange program. Staff is scheduled to return to the Utilities Advisory Commission and Council for another review in 2028.

Oversized-vehicle update counts 19 tows as safe-parking search continues

Mayor Ed Lauing reported that 19 vehicles had been towed since Council’s October 20 oversized-vehicle motion and that Council had authorized a little more than $700,000 for related actions to date. The informational update covered enforcement, street sweeping, towing and storage constraints, but Council gave no new direction.

Councilmember Julie Lythcott-Haims said outreach for leased safe-parking locations was continuing with faith and business communities. She emphasized the need for safe options for Palo Alto residents living in vehicles. The ad hoc effort is continuing, with phase-two items expected to begin review in January.

1680 Bryant is reclassified with fewer historic protections

Council voted 7-0 to reclassify the 1914 building at 1680 Bryant Street from a Category 2 to a Category 3 resource on Palo Alto’s historic inventory. Category 3 status removes historic-review requirements and could allow eventual demolition, although the property retains limited zoning incentives.

Staff said prior demolition and alterations had removed more than two-thirds of the original structure, leaving it without the integrity required for Category 2 status. The Historic Resources Board had voted 3-1-1 to retain the Category 2 designation because of its preservation protections, but council members who discussed the case concluded that the city’s technical criteria supported reclassification.

$6.2 million fleet-parts contract leads major consent spending

Council unanimously authorized a six-year contract with NAPA Auto Parts for an on-site fleet-parts and inventory program. The contract runs from January 2026 through December 2031 and has a maximum value of $6,238,832. Council also approved a $601,837 Vehicle Replacement and Maintenance Fund budget amendment.

The same 7-0 omnibus consent vote authorized up to $1,129,138 for 15 Zenix monitor-defibrillators and related equipment, a three-year Canopy urban forestry contract capped at $1,236,366, and a five-year Turbo Data contract capped at $989,138 for a parking permit and citation management system. The Canopy action included a $150,000 General Fund budget amendment.

Council also approved a three-year, $371,415 contract with Keyser Marston Associates for a development impact and in-lieu fee nexus and feasibility study. The contract and purchase amounts are authorization ceilings rather than findings that the full amounts have already been spent.

Caio Arellano is appointed interim city attorney

Council voted 7-0 on consent to appoint Caio Arellano as interim city attorney effective December 27, 2025. The appointment continues until a new city attorney begins work or Council takes further action. Arellano will receive working-out-of-classification pay equal to 10% above the chief assistant city attorney salary.

One public commenter asked Council to remove the appointment from the consent calendar, alleging problems with procedure, Brown Act noticing and compensation disclosure. Council did not discuss the objection before approving the appointment.

Council accepts FY 2025 audit and budget amendments

Council unanimously accepted the city’s fiscal 2025 audited financial statements and management letter, approved the annual comprehensive financial report and adopted the listed budget amendments. The accepted materials reported a total city net position of $1.6 billion and an Enterprise Fund net position of $987.1 million.

The adjusted Budget Stabilization Reserve was reported at $58.8 million, about $2 million above the city’s 18.5% reserve target. The item passed as part of the consent calendar without separate deliberation.

Nonprofit funding continues as food closet contract increases

Council voted 7-0 to continue the Phase I Nonprofit Partnership Workplan funding process for the fiscal 2027 budget cycle. The fiscal 2026 process allocated $506,646 among 17 nonprofit organizations. The Policy and Services Committee is expected to develop refinements in January 2026 for Council consideration in early 2026.

The same consent vote increased the city’s contract with Peninsula Healthcare Connection by $101,292, bringing the maximum to $268,521, to continue Downtown Food Closet operations. The record identifies a $42,930 fiscal 2026 allocation for the food closet.

Primary sources

Watch the meeting on YouTube · Read the official meeting packet