Menlo Park orders state-mandated impact study of downtown parking-plazas initiative, approves $164,951 contract; mayor dissents

Menlo Park's City Council on Nov. 4 voted to order an Elections Code Section 9212 report examining the effects of a citizen initiative titled the Downtown Parking Plazas Ordinance and authorized a one-time appropriation of $164,951 to contract with consultants for that study. The motion, made by Councilmember Jeff Schmidt and seconded by Councilmember Jennifer Wise, passed with four votes in favor and Mayor Drew Combs dissenting.

The report will analyze fiscal impacts, consistency with city plans, effects on land use and infrastructure, traffic and emergency response access, business impacts, legal risk, and other topics enumerated in Elections Code §9212. City Attorney Neera Doherty told the Council that the statute requires the body to choose among three options after a petition is certified: adopt the ordinance as written, submit it to voters, or order this statutorily defined report.

Public comment was extensive and sharply divided. Supporters urged immediate adoption or quick study to accelerate creation of below-market housing downtown and to avoid the substantial cost of a special election. "By bringing housing into the downtown core, the city acknowledges that housing access and economic vitality go hand in hand," said Prudence Pingray, who identified herself as a user of below-market housing and urged adoption of the proposal.

Opponents and some housing advocates urged a thorough study. "We need an objective report on impacts to businesses, traffic, and fire access," said Laura Milan, a former member of the Finance and Audit Commission, who warned of state housing-element consequences if the city moves too quickly. Legal counsel for initiative proponents submitted a letter asking that any report fairly evaluate business viability, parking availability, fire safety, soil contamination risk, school capacity and potential lost tax revenue.

Councilmembers described a need for information for voters and for the Council to understand how the initiative could affect Menlo Park's obligation to produce thousands of housing units in this planning cycle. Councilmember Cecilia Taylor noted the city must enable 1,662 affordable units by 2031 and said the 345 units proposed downtown would represent one-fifth of that obligation.

On procedural questions, staff reported that the County of San Mateo had verified 2,200 of an originally submitted 3,928 unverified signatures, exceeding the threshold to qualify the initiative for the ballot; no Council action was required for that certification. Staff also provided an estimate that a special election would cost the city roughly $315,000 to $378,000, while placing the measure on the Nov. 2026 general municipal election would add negligible cost.

The Council directed staff to prepare the 9212 report and to attempt to cover topics suggested by both proponents and opponents that are feasible within the statutory timetable; items not feasible within the initial timeframe should be scoped and returned for Council direction. The contract amendment to the city's existing consultant framework (M Group) was authorized to the not-to-exceed amount of $164,951 to complete the work.

Next steps: staff will begin the report and return to the Council with the initial findings and with a list of any additional items needing follow-up. If the Council chooses later, it may adopt the initiative as an ordinance or place it on a ballot for voters to decide.