City Council - June 9, 2025

Palo Alto adopts temporary SB 1123 housing rules

The City Council unanimously adopted a temporary emergency ordinance implementing Senate Bill 1123 before the state law takes effect in July 2025. The law applies to vacant, single-family-zoned sites of up to 1.5 acres and allows subdivisions supporting as many as 10 primary homes through a ministerial approval process.

The ordinance amends Titles 18 and 21 and retains the option for one accessory dwelling unit or junior accessory dwelling unit on each resulting parcel. Staff said a project with 10 primary homes could reach 20 total units if each parcel also included one ADU or JADU. The emergency ordinance required at least six affirmative votes and passed 7-0.

Council directed staff to prepare a permanent ordinance for Planning and Transportation Commission and subsequent council review. Staff will also develop Land Use Element updates distinguishing residential density categories when resources permit, with no deadline imposed. Councilmember Pat Burt raised wildfire concerns near the Trace Road area, but the council adopted the staff proposal without changes.

A separate first-quarter report recorded 42 new ADU or JADU applications, 30 permits and 36 final inspections. Since 2015, the city has received 842 applications and issued 654 permits. Councilmember Julie Lythcott-Haims suggested exploring incentives for below-market ADU rentals to city employees and condominium ownership of ADUs, but the council gave no formal direction.

Council asks for a fundable Cubberley plan after early poll

Councilmembers called for Cubberley concepts to be tied more clearly to costs, phasing and realistic revenue after reviewing the first voter poll in the master-planning process. The council did not select a preferred concept or financing plan during the study session.

The survey of 437 Palo Alto voters found initial support for a conceptual bond measure at 62% to 24%. Support increased to 72% after positive messaging and returned to 62% after opposition messaging. The concept included spending $65 million to acquire seven additional acres. A potential bond would require two-thirds voter approval.

Seventy-three percent of respondents said they would pay an additional $250 annually, while 58% said they would pay $500. Staff estimated those amounts could support approximately $75 million to $150 million and $150 million to $300 million, respectively, depending on the financing structure. Councilmembers asked for future polling to pair amenities with costs and examine renovation versus new construction, geographic differences in support, adaptive reuse and public-private partnerships. Public commenters questioned the poll’s representativeness and wording.

A community meeting was scheduled for June 12 to review three concepts. Staff plans to refine one concept for a September meeting, conduct a second poll with a more specific package and cost in fall 2025, and conduct a third poll in spring 2026.

Council approves community grants and older-adult services contract

The council voted 7-0 to approve Palo Alto’s fiscal 2025-26 Community Development Block Grant action plan, its 2025-30 consolidated plan and $616,233 in associated funding. The plan identifies affordable housing, homelessness, supportive services, workforce development and child care as priorities.

The allocations include $162,474 for rehabilitation of 10 affordable homes at Alma Garden, $123,246.60 for planning and administration, and $90,000 for the Upwards/WeeCare program. A representative of Upwards said its Boost child-care support program is free and does not generate revenue, responding to concern about the organization’s for-profit status.

The approval came amid uncertainty over a potential elimination of federal CDBG funding in fiscal 2026. Staff also said federal wage requirements make it difficult to identify feasible rehabilitation and public-facility projects for funds not subject to administrative or public-service caps. Staff will submit the plans to the U.S. Department of Housing and Urban Development and return with a city budget amendment reflecting the federal revenue and program expenditures.

In a separate unanimous consent-calendar action, the council authorized a five-year contract with Avenidas for comprehensive older-adult services. The contract has a maximum value of $3,186,528, with $598,972 listed annually for basic services.

California Avenue outdoor rules move to June 17

The council took no action on proposed outdoor-activation rules for California Avenue, rescheduling the matter for a June 17 special meeting. Several public commenters opposed proposed changes that would replace tents and parklets with umbrellas and awnings, citing business costs, weather protection, accessibility and outdoor-dining capacity. Speakers also asked the city to continue supporting and funding Third Thursday events.

Materials for the deferred proposal listed an expected initial application fee of $5,004, a $604 annual renewal fee and a $2,750 refundable deposit. The existing public-right-of-way license fee is $10.71 per square foot annually. None of those proposed program changes was acted on June 9.

Final action on two utility contracts cannot be verified

Councilmember Pat Burt sought more justification for proposed utility contracting, citing approximately $200,000 remaining in a prior contract and comparing a previous $85,000 annual basic-services allocation with a requested level of about $400,000 per year. The meeting records conflict over whether his comments concerned a proposed five-year, $2.125 million traffic-control contract or three electric-engineering consulting contracts.

The engineering proposal carried an aggregate maximum of $15 million for an initial three-year term, with extensions that could raise the maximum to $25 million. The consent-calendar motion passed 7-0 after Item 7 was pulled, but the sequence does not establish whether either utility proposal was included or later approved separately. Final action on the two proposals therefore cannot be verified from the meeting record.

Council approves turf, street and sewer spending

The council unanimously approved a $3,064,185 FieldTurf USA contract, a $306,419 contingency and a $961,490 fiscal 2025 budget amendment for turf replacement at the Stanford Palo Alto Community Playing Fields. One commenter asked the council to postpone approval and obtain manufacturer chemical test results, raising concerns about waste, recyclability and environmental review.

The consent vote also authorized a $1,218,317 contract with O’Grady Paving for fiscal 2025 street preventive maintenance, along with as much as $121,832 in change-order authority.

For the Joint Intercepting Sewer Rehabilitation Phase 1 project, the council approved a combined $792,895 in additional authority across three engineering and construction-management contracts. The project’s estimated cost increased from $8.9 million to $9.7 million.

Council advances new fire-hazard map

The council voted 7-0 to approve the first reading of an ordinance incorporating the 2025 CAL FIRE Fire Hazard Severity Zone map into Palo Alto’s municipal code. The action was a first reading rather than final adoption of the ordinance.

A separate informational wildfire-protection update identified approximately 110 eucalyptus trees for future removal and listed about $100,000 in proposed fiscal 2025 removal funding. The record does not establish council discussion or action on that informational report.

Palo Alto sets 10-year electric-efficiency goals

The council unanimously approved electric energy-efficiency goals for 2026 through 2035. The plan sets a cumulative 10-year savings goal of 2.80%, or 23,230 megawatt-hours, with annual targets ranging from 0.24% in 2026 to 0.53% in 2035. The estimated annual program budget is between $1.5 million and $1.7 million.

Primary sources

Watch the meeting on YouTube · Read the official meeting packet