City Council - March 2, 2026

Council seeks alternatives before Palo Alto Link’s June 30 cutoff

Palo Alto Link could end June 30 unless the city identifies new funding. The City Council left a final decision for the budget process while asking staff to assess grant prospects and a targeted ride-hail voucher alternative. Staff described winding down the service as the default without further funding direction; the council did not vote on whether to continue, redesign or end it.

Staff estimated the on-demand transit service costs about $1.2 million annually. Its gross cost is about $26 per ride, or about $22 after the $4 fare, with fares covering roughly 5% of expenses. Ending the service June 30 would save an estimated $250,000 in fiscal 2026–27 and approximately $700,000 annually thereafter, but would also end between $400,000 and $600,000 in annual support from Stanford Research Park.

Discussion focused on preserving access for young people, seniors and riders with disabilities while finding a sustainable funding model. Some council members favored continuing the service while pursuing grants, while others supported replacing it with targeted vouchers. Staff cautioned that narrowing eligibility or raising fares would not materially reduce largely fixed operating costs, and that a lower service budget would push waits above 20 minutes and leave about 20% of ride requests unavailable.

Staff will return by the budget process with information about the timing and likelihood of additional grants and a preliminary assessment of a voucher program. The next referenced grant application is expected in May, but staff said any award would probably not be available by July 1.

Council approves 2026–27 climate work plan

The council approved the 2026–27 Sustainability and Climate Action Plan work plan and related staff recommendations on a 6-0-1 vote. Amendments broadened planned communications about health risks, called for messaging that encourages action toward the city’s climate goals and emphasized working with community partners.

Palo Alto’s greenhouse-gas inventory showed emissions were 50.2% below 1990 levels in 2024 despite a 22% population increase. The city remains short of its goal of reducing emissions 80% below 1990 levels by 2030, however, and staff clarified that a carbon-neutrality chart presented to the council did not provide a pathway for reaching that underlying target.

Council members called for stronger quantitative measures and greater attention to transportation emissions, renters, multifamily housing, electrification financing, tree planting and low-carbon concrete in city projects. Staff said it would develop technical assistance for landlords and condominium associations, explore incentives and loan programs for portable induction cooktops and window-mounted heat pumps, and begin discussing additional financing strategies with the Climate Action Committee.

Utility plan adds quantified reliability targets

The council adopted electric reliability and resiliency recommendations on a 6-0-1 vote, directing staff to develop quantified reductions in outage measures in addition to comparing Palo Alto with other utilities. The action also called for an interim annual update on electric supply costs and a future discussion of long-term resiliency.

Staff had proposed measuring performance against the top quarter of American Public Power Association utilities and PG&E’s De Anza division. Council members sought city-specific targets that would show whether grid modernization is reducing outages. Staff said equipment failures cause roughly 40% to 50% of outages and identified vegetation management, targeted equipment replacement and faster restoration as potential improvements.

Staff also reported that foothills-area undergrounding is expected to be completed by summer 2026. Updated forecasts indicate the Ames 115 transmission line may be needed by 2030 rather than its previously approved 2034 date, with review of the updated transmission plan anticipated in May.

The city’s analysis found no broad, currently cost-effective case for intensive incentive programs involving solar, batteries or vehicle-to-grid technology. Commercial solar and storage proposals may still be considered individually, and staff will monitor changing costs and return for a broader discussion of microgrids and long-term resiliency.

Public Safety Building move-in phase is targeted for June

Staff estimated that the Public Safety Building’s next move-in phase could begin in June after approximately 90 more days of work. Audiovisual and communications work was nearly complete, but smoke-control work in the detention area remained necessary before the building could be fully occupied.

A contractor declined to perform some required work, prompting the city to seek third-party contractors. Dispatch-area construction and testing will proceed at the same time, with dispatch expected to move into the building during the final phase.

Primary sources

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