Storm Water Management Oversight Committee - October 22, 2026

Groundwater and construction deficiencies delay two stormwater projects

Unforeseen groundwater conditions have delayed a key pipe connection in the East Bayshore/Corporation Way Stormwater Project, leaving East Bayshore restricted to one-direction traffic and making a December reopening a best-case scenario, city staff told the committee. The difficult 55-foot connection runs through a groundwater-bearing sand layer amid major gas, electrical and fiber-optic utilities.

Crews completed injection grouting to stabilize the sand and began temporary dewatering before installing the connecting pipe. Once the connection is complete, the receiving pit must be converted into a manhole and the roadway restored and restriped. Staff said the West Bayshore wet well had been encased in concrete and electrical-control components installed. At the time of the update, staff did not expect the project to exceed its 10% construction contingency.

On Hamilton Avenue, staff deferred Phase 2 because contractor-related construction deficiencies could damage the drainage system. The project will not be finished before the rainy season, although staff said the completed Phase 1 work should improve drainage.

Phase 1 installed about 1,700 to 1,800 feet of 48-inch pipe while retaining the existing 18-inch line, more than tripling flow capacity in the area, according to staff. The unbuilt second phase would add roughly 2,000 feet. Staff is working with the contractor on how to proceed, seeking emergency-response support for the rainy season and may return with another update next year.

Staff begins planning for stormwater funding after 2032

City staff has begun early planning for a possible future fee or ballot measure before the project-and-infrastructure portion of Palo Alto's stormwater fee expires in 2032. The base program supporting regular operations and maintenance would continue, but capital and green-infrastructure funding tied to the expiring portion would cease.

An update of the 2015 Storm Drain Master Plan is expected to reassess needs and prioritize future capital projects. Staff said the work should account for changes in impervious surfaces and state green-stormwater-infrastructure mandates. It anticipated beginning to assemble a blue-ribbon committee in about a year.

The funding discussion followed a review of fiscal year 2026 actuals and the adopted fiscal year 2027 budget. Staff reported fiscal year 2026 revenue about $1 million below budget because EPA grant reimbursements were realized later and reappropriated to subsequent years, while fee revenue was close to budget. Capital project spending was $11.7 million, compared with a $7.7 million budget, reflecting reappropriated prior-year money for ongoing work at Corporation Way and West Bayshore. Adopted fiscal year 2027 expenses total $9,749,995.

Staff also said newer permit requirements have added unfunded obligations, including 100% trash reduction and maintenance of green stormwater infrastructure. The city is still determining which departments and funds should pay for that maintenance, depending on the location and responsibility for each facility.

Primary sources

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