City Council - May 11, 2026

Council rejects a temporary Churchill rail crossing closure

The City Council voted 7-0 not to pursue a temporary closure of the Churchill Avenue rail crossing. Instead, it directed staff to explore a long-term crossing-guard contract, seek a cost-sharing agreement with the Palo Alto Unified School District, expedite Quiet Zones at all four Palo Alto rail crossings and work with Caltrain on gates or other enhanced protections.

The closure had been considered as a potential suicide-prevention measure. The record cited an immediate diversion of approximately 8,000 vehicle trips per day and the need for at least 714 PAUSD student bicyclists to reroute, along with related traffic, bicycle, pedestrian and emergency-response concerns. Available records also cited no fatalities at the crossing while guards were present from 2009 through 2018.

Crossing guards are funded through the end of fiscal year 2027, although staff described continued funding as contingent on a 50% school district contribution. The motion also directed the Jed Foundation to provide the Rail Committee with targeted, evidence-based recommendations for all four crossings. Quiet Zone improvements at Churchill Avenue, Meadow Drive and Charleston Road initially were estimated at $5.7 million; the Council directed staff to prioritize all four crossings, particularly Churchill, without allowing the review of added security measures to delay that work.

Seven-story, 183-unit El Camino project wins approval

The Council voted 7-0 to approve a seven-story, 183-unit rental housing development at 3781 El Camino Real, including 23 below-market-rate units. The Council found the project exempt from review under the California Environmental Quality Act pursuant to Assembly Bill 130 and approved its Major Architectural Review application.

The Builder’s Remedy project will merge four parcels and replace 14 existing residential units and approximately 10,000 square feet of commercial space. Plans call for 215 parking spaces, including 183 EV-ready spaces and 36 tandem spaces, along with 144 long-term bicycle spaces.

Council members raised concerns about the building’s scale, replacement retail, bicycle storage, future e-bike charging and tenant relocation protections. Mayor Vicki Veenker noted that 23 below-market-rate units represent approximately 12.56% of the 183 units and encouraged maximizing the affordable total. The applicant said design, financing and contractor selection remain to be completed and that it intends to advance a separate project at 3606 El Camino Real first.

Council leaves major FY 2027 budget choices unresolved

The Council concluded its study session on the proposed fiscal year 2027 budget without a vote or final budget action. The proposal totals approximately $1 billion across all city funds, a 1.9% increase, including about $311 million in General Fund spending and a $314 million capital budget within a five-year, $1.2 billion capital plan. Staff said the proposal addresses a projected $17 million deficit and would leave the Budget Stabilization Reserve at 17% to 18%, within the city’s 15% to 20% guideline.

The Council reviewed but did not adopt Finance Committee recommendations on utility rates. The committee recommended a 4.5% electric-rate increase rather than the 6% included in the proposed budget. It recommended a 9% gas-rate increase on a 2-1 vote, with a 7% alternative also under consideration.

Approximately $803,000 in recommended additions would require the budget to be rebalanced. Those additions include a $51,000 city share for restoring school crossing guards and approximately $307,000 to extend the Track Watch monitor contract from March through June, both assuming PAUSD pays half. Another $384,000 is proposed for oversized-vehicle programs, including $200,000 for the Gang Road parking site and $184,000 for towing capacity. Potential additional oversized-vehicle programs estimated at roughly $1 million to $2 million are not included in the proposed budget.

The proposed Canopy contract drew much of the public response. Its fiscal year 2027 amount was listed at $368,000, a $43,000 reduction from the $412,000 discussed in April. Most commenters urged the city to restore the funding, citing tree planting, young-tree care, urban-forest health and canopy equity. The Finance Committee is scheduled to continue deliberations May 19, with final Council adoption scheduled for June 15.

City authorizes an $85,000 litigation settlement

The Council voted 7-0 to authorize the City Attorney to enter into a settlement agreement and pay $85,000 to resolve claims against the city in Santa Clara County Superior Court Case No. 25CV461517. The provided records do not describe the underlying claims.

Council approves cybersecurity order and utility portal extension

In a 7-0 consent-calendar vote, the Council approved a three-year Zscaler software maintenance and support purchase order with Solutions Simplified. The order runs from July 31, 2026, through July 30, 2029, at $109,962 annually and no more than $329,886 in total.

The same vote approved a $140,000 increase and three-year extension for the VertexOne WaterSmart Utilities Customer Portal contract. The amendment raises the contract’s total ceiling to $677,763 and extends it through Aug. 12, 2029.

Fiber report sets June target for early pilot users

An informational report said the city is targeting activation of at least 20 early-adopter customers for its Fiber-to-the-Premises pilot by the end of June 2026. Approximately $5.5 million of the pilot’s $20 million allocation has been spent, including $3 million identified as one-time investment costs.

The report also listed more than $30 million in dark-fiber reserves and a $33.6 million fiscal year 2025 Fiber Fund ending balance. The original estimate for expanding the city-owned dark-fiber backbone was $26 million. No Council action was requested on the report.

Transportation report presents funding options before agreement expires

An informational report on the Palo Alto Transportation Management Association presented a $400,000 baseline funding scenario for fiscal year 2027, along with alternatives of $375,000 and $350,000. The city provided $400,000 for fiscal year 2026, and the current three-year funding agreement expires June 30, 2026. The report recommended no Council action.

The report attributed 2025 transportation programs with avoiding the need for 482 parking spaces, reducing vehicle travel by 2,933,038 miles and preventing 1,152 tons of greenhouse-gas emissions.

No objections are raised to a $10,000 Pride event contribution

Mayor Vicki Veenker announced that the city’s first Palo Alto Pride celebration is scheduled for June 7 from 2 to 5 p.m. She said $10,000 from the Council Contingency Fund would complete the event budget. After she asked for concerns or objections, none were raised and the contribution could proceed, although no formal motion or vote was recorded in the provided segment.

Primary sources

Watch the meeting on YouTube · Read the official meeting packet