Planning Commission

City of Sunnyvale Meeting Minutes - Final Planning Commission Monday, June 9, 2014 7:00 PM Council Chambers and West Conference Room, City Hall, 456 W. Olive Ave., Sunnyvale, CA 94086 7:00 P.M. PLANNING COMMISSION - STUDY SESSION - WEST CONFERENCE ROOM 1 14-0606 FILE #: 2014-7424 Location: 300 W. Iowa Ave. (APN: 209-28-095) Proposed Project: SPECIAL DEVELOPMENT PERMIT to allow 13 residential townhouse units. TENTATIVE MAP to subdivide one lot into 13 lots. Applicant / Owner: Classic Communities / Classic 300 Iowa LP Environmental Review: Mitigated Negative Declaration Staff Contact: Shaunn Mendrin, (408) 730-7429, smendrin@sunnyvale.ca.gov 2 Public Comment on Study Session Agenda Items 3 Comments from the Chair 4 Adjourn Study Session 8:00 P.M. PLANNING COMMISSION - PUBLIC HEARING - COUNCIL CHAMBERS CALL TO ORDER Chair Melton called the meeting to order at 8:00 p.m. ROLL CALL Present: 6 - Chair Russell Melton Vice Chair Ken Olevson Commissioner Ralph Durham Commissioner Sue Harrison Commissioner Larry Klein Commissioner Ken Rheaume Absent: 1 - Commissioner David Simons City of Sunnyvale Page 1 Planning Commission Meeting Minutes - Final June 9, 2014 SALUTE TO THE FLAG Chair Melton led the salute to the flag. PUBLIC COMMENTS CONSENT CALENDAR 1.A 14-0570 Approval of the Draft Minutes of the Planning Commission Meeting of May 28, 2014 Comm. Klein moved to approve the draft minutes of May 28, 2014. Vice Chair Olevson seconded. The motion carried by the following vote: Yes: 6 - Chair Melton Vice Chair Olevson Commissioner Durham Commissioner Harrison Commissioner Klein Commissioner Rheaume No: 0 Absent: 1 - Commissioner Simons 1.B 14-0455 File #: 2012-7986 Location: 726 San Miguel Ave. (APN: 205-14-030) Zoning: R-0 (Low Density Residential) Zoning District Proposed Project: DESIGN REVIEW For first and second floor additions for a total of 2,824 square feet and Floor Area Ratio of 53.8% (item referred back to Planning Commission by City Council on August 27, 2013). Applicant/Owner: Jasbir Tatla / Jeannie Aiassa Project Planner: Shaunn Mendrin, (408) 730-7429, smendrin@sunnyvale.ca.gov Comm. Klein moved to approve this item on the Consent Calendar. Vice Chair Olevson seconded. Comm. Durham said he would be abstaining because he owns a home within the 500 foot radius of the subject property. The motion carried by the following vote: Yes: 5 - Chair Melton Vice Chair Olevson Commissioner Harrison Commissioner Klein Commissioner Rheaume City of Sunnyvale Page 2 Planning Commission Meeting Minutes - Final June 9, 2014 No: 0 Absent: 1 - Commissioner Simons Abstained: 1 - Commissioner Durham PUBLIC HEARINGS/GENERAL BUSINESS City of Sunnyvale Page 3 Planning Commission Meeting Minutes - Final June 9, 2014 2 14-0572 File #: 2013-8029 Location: 523 E. Homestead Road (APNs: 309-44-003, 309-44-049, 309-44-050) Proposed Project: Related applications on a 0.9-acre site: SPECIAL DEVELOPMENT PERMIT: to allow 7 single-family homes, and VESTING TENTATIVE MAP: to create 7 ownership lots. Applicant / Owner: S&S Construction, LLC/Louis Mariani Trustee Environmental Review: Mitigated Negative Declaration Project Planner: Noren Caliva-Lepe, (408) 730-7659, ncaliva-lepe@sunnyvale.ca.gov NOTE: This item was continued from the Planning Commission meeting of May 28, 2014. Noren Caliva-Lepe presented the staff report. Comm. Durham confirmed with Trudi Ryan, Planning Officer, the minimum number of units required for the Below Market Rate (BMR) program. Comm. Klein confirmed with Ms. Caliva-Lepe the number of parking spaces that will be removed to allow construction of the project's driveway. Chair Melton opened the public hearing. Stephen Stapley, CEO of S&S Construction, gave a presentation on, and addressed neighborhood concerns about, the proposed project. Tsing-Ping Chang, a Sunnyvale resident, asked the Commission to give more consideration to neighborhood concerns with safety, an increase in traffic and reduction in parking spaces. Holly Lofgren, a Sunnyvale resident, said she thinks the site should be considered an R-1 zoning area and that the developer should provide adequate on-street parking. Mary Depew, a Sunnyvale resident, said she thinks the zoning laws put in place 40 years ago need to be revisited and asked the Commission to consider the people who are living in the area now. Arthur Low, a Sunnyvale resident, said the applicant has addressed his initial concerns and recommended approval of the project. Larry Alba, a Sunnyvale resident, said the Commission should consider the City of Sunnyvale Page 4 Planning Commission Meeting Minutes - Final June 9, 2014 emergency drought and asked that the City halt approval of new projects. Lisa Bonneti, a Sunnyvale resident, said she is worried about traffic safety and adding a greater load to the existing infrastructure, especially connecting a new private sewer line to the aged main line on Canary. Lenora Heuchert, said she is speaking on behalf of the Ortega Park Neighborhood Association (OPNA), and that her main concern is the crowding of local schools. She said the developer should have gotten input from OPNA. Mr. Stapley, said he thinks parking has been addressed sufficiently, and that community input was solicited. Vice Chair Olevson confirmed with Mr. Stapley that out of the five additional parking spaces provided within the project, three are exclusive to the larger homes. Comm. Harrison confirmed with John Berry, the civil engineer for the project, that one private sewer connection would service all seven homes and that the developer would not be repairing or replacing the sewer line on Canary. Chair Melton closed the public hearing. Comm. Harrison confirmed with Ms. Caliva-Lepe that the Department of Public Works found that the public portion of the sewer line on Canary is fully functional that there is enough water to serve a build out of the General Plan Vice Chair Olevson confirmed with staff the number of parking spaces that will be removed from Canary Drive. Comm. Klein moved Alternative 2 to adopt the Mitigated Negative Declaration and approve the Special Development Permit and Vesting Tentative Map with modified findings and conditions: 1) To include an option for smooth textured stucco; 2) Add a Condition of Approval for a complaint coordinator for neighborhood issues during construction; 3) Add a Condition of Approval to require a designated parking area for construction vehicles and personnel for the duration of construction; 4) To require permeable pavers for the added parking spaces within the project; and 5) Suggest staff conduct an appropriate traffic analysis for the corner of Canary and Homestead to determine whether or not a traffic signal is required. City of Sunnyvale Page 5 Planning Commission Meeting Minutes - Final June 9, 2014 Comm. Rheaume seconded. Comm. Klein said he thinks the developer has tried to reduce the impacts on the community from the standpoint that a single parking space will be taken out for the exit driveway, and that from a project standpoint there are no deviations requested. He said the closest thing is the number of units, but he thinks that the reduced density fits better in this area. He said he understands the neighbors' traffic concerns and that seven homes exiting onto Canary will definitely add traffic, but that there are already traffic calming measures in place and that a traffic signal may ultimately be required when staff looks at the issue. He said the additional parking on the site rids the project of some of the major issues, and that reduction of one spot to provide the exit keeps a majority of the parking on site. He said each home has a two-car garage, can park two cars in the driveway and can now use the additional parking within the project so the parking issues are not as dramatic as before. He said staff has already looked at the water and sewer issues, which are not specific problems of this project, and said he does not think the project will be detrimental to the overall infrastructure as the City is required to maintain the public portion. He said it is not within the purview of the Planning Commission to determine appropriate zoning and that this site was zoned R-2 many years ago. He said more units could be built but the developer reduced the number of units to a manageable size, and that from a density standpoint this is a better use of the property. Comm. Rheaume said he will be supporting the motion and thinks the applicant has addressed the parking issues and he appreciates the additional on-site parking. He said a traffic analysis for the Canary and Homestead intersection will address neighbors' concerns regarding traffic, and that he agrees that it is the City's responsibility to replace the sewer line along the street and believes the public portion is fully functional as staff has noted. He said he believes the crowding of schools is an issue, but that this project is not going to resolve an issue that is already out of line and that it will be addressed separately. Comm. Harrison said the developer has tried to meet the needs of both the neighborhood and their client, and has reduced the number of units from eleven to nine to seven. She said she personally knows the danger of exiting from a small street or driveway onto a major street and agrees with the Traffic Engineer's assessment that exiting onto Canary is safer. She noted that trash collection is no longer a design issue and visited the neighborhood to see how trash is collected, noting that all of the trash cans were out along the street. She said she also drove along many streets in the neighborhood to evaluate the parking situation and saw City of Sunnyvale Page 6 Planning Commission Meeting Minutes - Final June 9, 2014 that on-street parking use is no different among the various streets. She said she cannot find that this meets policy HE-4.3 which requires a new development to build to 75% of the maximum density unless there is an exception granted by the City Council. She said the Commission often hears large office building projects while residents, businesses and the business community ask about housing. Comm. Harrison said housing is needed and that she cannot make the finding that this meets the intent or letter of the General Plan. She read from a section of the Housing Element update that says, "consider smaller minimum lot sizes to allow more compact development of older neighborhoods and making new housing developments more walkable and more accessible to shopping, amenities, jobs and schools." She said this is a very prime location, that the General Plan requires the site to have at least eight units and she cannot ignore the large public mission to provide adequate housing. She said the BMR program has to do with households buying homes for a price fixed by the City's housing office, and that many Sunnyvale residents may not be able to afford a home at the current market rate. She said without the BMR funding one family will miss out on owning a home and that these families are valuable people who should own a home in Sunnyvale. She mentioned that teachers are often candidates for BMRs and that this site could provide housing for a local teacher. She said violating the General Plan and going from eight to seven units means that we lose those resources, and she will therefore be voting against the motion despite the developer trying really hard and meeting all of the requirements except for the number of units. Vice Chair Olevson said he is very conflicted over the project. He said he thinks it makes a good transition in that it dramatically improves the existing lot use, which is not attractive and that this would be a much more attractive project. He said the additional parking spots help, although three are for personal rather than public use, and said he recognizes that the developer has met all requirements except for the density of homes, but that he is not sure eight homes on the small site would work. He said he looked at nearby homes and there are wider streets and much more space for traffic that are farther from the intersection of Homestead and Canary. He said he is inclined to thank the developer for making the effort, but does not see this as fitting the plan and is persuaded by Comm. Harrison's thought that we need to stick to the zoning. He said that the times the Commission has not stuck to the zoning there has been a much more compelling reason such as the availability of more parking and amenities, so he will reluctantly not be supporting the motion. Comm. Durham said he voted for this motion last week, and that during the interim he has done some more study on the General Plan and the BMR housing program and he has come to the conclusion that we need to work more and keep closer to City of Sunnyvale Page 7 Planning Commission Meeting Minutes - Final June 9, 2014 the General Plan and allow the BMR housing to go in there. He said he thinks this is an improvement to the area and has no trouble with the density, and that he does not see why the City is expected to bear the cost of providing more on-street parking when residents have anywhere from four to six spaces per unit including their garages. He said that having gotten more information on the BMR program and 75% rule, he will be voting against the motion. Chair Melton said he will not be supporting the motion, and that he cannot, in good conscience, get to the point where we leave 500,000 BMR dollars on the table. He said he knows there is something to be said about not designing projects on the dais, but he thinks we need to have eight townhomes, not seven single-family homes with five bedrooms each. He said with regard to making the findings he thinks we can do better than the proposal, and that he gets the zoning and the setbacks, but that the job of the Planning Commission is to make findings and he cannot make findings on this project, especially LT-4.4. The motion failed by the following vote: YES: 2 - Commissioner Klein Commissioner Rheaume NO: 4 - Chair Melton Vice Chair Olevson Commissioner Durham Commissioner Harrison ABSENT: 1 - Commissioner Simons Comm. Harrison moved Alternative 2 to adopt the Mitigated Negative Declaration and approve the Special Development Permit and Vesting Tentative Map with modified findings and conditions: 1) To include an option for smooth textured stucco; 2) Add a Condition of Approval for a complaint coordinator for neighborhood issues during construction; 3) Add a Condition of Approval to require a designated parking area for construction vehicles and personnel for the duration of construction; 4) To require permeable pavers for the added parking spaces within the project; and 5) Suggest staff conduct an appropriate traffic analysis for the corner of Canary and Homestead to determine whether or not a traffic signal is required; and 6) To ask the applicant to come back with a design for eight units. City of Sunnyvale Page 8 Planning Commission Meeting Minutes - Final June 9, 2014 Comm. Rheaume seconded. Comm. Harrison said many of the concerns have been discussed and there are many things the current project does to mitigate the concerns of the neighbors, to enhance the neighborhood and provide a viable project for the owner. She said if the applicant can do a project with eight units, it would be better. Comm. Rheaume said Comm. Harrison had a compelling speech about housing needs in Sunnyvale, and that he was ready to move forward with the proposal last time, so if an eighth home is added and the project can get four yeses he will be supporting the motion. Ms. Ryan interjected that an eight unit project is a different project and that the applicant should have a decision on the proposal. Chair Melton offered a friendly amendment to change the motion to Alternative 3 to adopt the Mitigated Negative Declaration and deny the Special Development Permit and Vesting Tentative Map and to implore the applicant to come back to staff with eight units. Comms. Harrison and Rheaume accepted. Vice Chair Olevson said he agrees with the friendly amendment and that the Commission should not be designing the project. He said Alternative 3 gives a clear thumbs down on the project but also gives an indication of what is being looked for to get approval. Comm. Klein said he will be supporting the motion and understands the issues with the BMR program and thinks it is very important from a City standpoint. He said the developer went from eleven to nine to seven units, and that whenever we can get BMR units into the City it is better for everyone. He said in the past Council has allowed the policy to be waived to have projects fit better into the community, and that ultimately this item will be decided by the City Council. He said he does not like designing from the dais, and that if the developer can come up with eight units with appropriate setbacks he would be for it, although it effects the community and neighborhood a little bit more. He said he thinks the original project was fine but that he will be supporting the motion in hopes that staff, the developer and Council can come up with the best decision. Comm. Durham said he will be supporting the motion but that he does not believe City of Sunnyvale Page 9 Planning Commission Meeting Minutes - Final June 9, 2014 going to eight units means the project will end up with single-family dwellings. He said he realizes there is a price drop between single-family dwellings and townhouse style homes which may or may not make the project less profitable. He said it may go above eight units or closer to the maximum allowed for the area. MOTION: Comm. Harrison moved Alternative 3 to adopt the Mitigated Negative Declaration and deny the Special Development Permit and Vesting Tentative Map. Comm. Rheaume seconded. The motion carried by the following vote: Yes: 6 - Chair Melton Vice Chair Olevson Commissioner Durham Commissioner Harrison Commissioner Klein Commissioner Rheaume No: 0 Absent: 1 - Commissioner Simons City of Sunnyvale Page 10 Planning Commission Meeting Minutes - Final June 9, 2014 3 14-0550 File #: 2014-7271 Location: 797 Mahogany Lane (APN: 213-20-011) Zoning: R0 - Low Density Residential Proposed Project: USE PERMIT: to allow a large family day care within 300 feet of another large family day care. Applicant / Owner: Anjali Pillai (applicant) / Ajit Pillai (owner) Environmental Review: A Class 1 Categorical Exemption relieves this project from California Environmental Quality Act provisions and City Guidelines. Class 1 Categorical Exemptions include projects involving existing facilities. Project Planner: Elise Lieberman, (408) 730-7443, elieberman@sunnyvale.ca.gov Elise Lieberman, Assistant Planner, presented the staff report. Comm. Harrison and Trudi Ryan, Planning Officer, discussed the history of and process by which three Large Family Child Care Homes (LFCCH) that are within 300 feet of one another near the subject site were approved by the City. Comm. Harrison and Ms. Ryan also discussed the requirements for approval of a new LFCCH and the demand for child care in the City. Comm. Durham confirmed with Ms. Ryan that child care homes are not limited to servicing people within a certain radius of the facility. Chair Melton and Ms. Ryan discussed the traffic patterns on Wolfe Road and Mahogany Drive when the first LFCCH was considered on Mahogany. Chair Melton opened the public hearing. Anjali Pillai and Ajit Pillai, the project applicants, gave a presentation on the proposed project, addressed the concerns cited in the staff report and said they were not aware of the 300 foot rule when they purchased their home. Tim Vogt, a neighbor living near the subject site, said he does not want to live in a commerical area and is not in support of approving the Use Permit. Bret Kleinmen, a neighbor living near the subject site, said his main concern is that people make U-turns on Iris and Mahogany to get to and from the Wolfe Road day cares and that an additional LFCCH would add too much traffic. Su Chen, a neighbor living near the subject site, discussed safety concerns and said there are too many LFCCHs in the area. City of Sunnyvale Page 11 Planning Commission Meeting Minutes - Final June 9, 2014 Rachel Chang, a child care home operator in the area, said the purpose of her attendance is to learn about neighborhood concerns and improve her facility. Larry Alba, a neighbor living near the subject site, said he circulated a petition that received over 40 signatures of neighbors who are not in support of the project. Teri Sheppard, indicated that the whole block was not in favor of a new LFCCH. Mr. Pillai addressed the neighbors' concerns regarding noise, parking, property values and traffic flow. Comm. Harrison confirmed with the applicants the number and ages of the children who would be in the home, and confirmed with Ms. Ryan that the use permit would apply to the land and not the care provider. Chair Melton closed the public hearing. Comm. Klein and Ms. Ryan discussed the process by which to raise issues about noise and the good neighbor policies. Chair Melton confirmed with Ms. Ryan that staff had not previously known of the issue of drivers making U-turns on Mahogany. Comm. Klein moved Alternative 3 to deny the Use Permit. Vice Chair Olevson seconded. Comm. Klein said he understands the need for day care within the City and commended the applicants for what has been done with their small day care. He said it has a cumulative effect on the neighborhood, and that while it is good that many of the neighbors did not know that a small day care was operating, the increasing effects of more parents dropping off and picking up their children outweigh what is needed to approve the Use Permit. He said he cannot in good faith approve the care of additional children, and that he understands that when the applicants purchased the home they were not aware of the rules, but that it is not reason enough to add a fourth day care to the area. He said he cannot make the findings to approve the Use Permit and will hence deny it. Vice Chair Olevson said he cannot find justification for going outside of the rules established for LFCCHs, specifically the 300 foot rule. He said it looks like there is City of Sunnyvale Page 12 Planning Commission Meeting Minutes - Final June 9, 2014 an overabundance already and to add another one goes directly against the 300 foot rule. He said we do not want excessive congestion or, as one speaker commented, turning this neighborhood into a commercial area. He said this neighborhood has too many businesses of the same type already and he cannot support adding to that. He said he appreciates that the applicant had insufficient knowledge when purchasing the home, but that it does not justify burdening the rest of the neighborhood. Comm. Harrison said that while it seems the applicants do a good job with their current day care facility, she is concerned with the Use Permit staying with the property. She said the applicant may do a great job but that in the future someone else may move in and do a poor job and the Use Permit would stay with the property. She said if it stayed with the applicant she might have a different opinion, and that she does not see it as a fair application of the rules that there are three LFCCH already within 300 feet of one another and that not granting a waiver is unfair to the applicant. She said that although she sees that a corner lot allows for more parking, there is also more traffic so she will be supporting the motion. Chair Melton said he will be supporting the motion, and that there are General Plan policies that speak loudly about supporting day care in Sunnyvale, which is a critical need. He said he wishes the applicants all the best as they continue to run their small day care facility, and that he sees many wonderful Sunnyvale residents getting along and doing their best to communicate and that he hopes it continues. He said many public comments were compelling, especially regarding drivers making left turns rather than turning directly into the driveway of the day care facilities on Wolfe Road, which pass right near the applicants' property. He said the cumulative impact of this behavior is why the 300 foot policy is in place and is why the Commission is hearing the application. MOTION: Comm. Klein moved Alternative 3 to deny the Use Permit. Vice Chair Olevson seconded. The motion carried by the following vote: Yes: 6 - Chair Melton Vice Chair Olevson Commissioner Durham Commissioner Harrison Commissioner Klein Commissioner Rheaume No: 0 Absent: 1 - Commissioner Simons City of Sunnyvale Page 13 Planning Commission Meeting Minutes - Final June 9, 2014 4 14-0562 Make Recommendation to Council on the Draft 2015-2023 Housing Element Environmental Review: Negative Declaration Suzanne Ise, Housing Officer, presented the draft Housing Element update. Vice Chair Olevson and Ms. Ise discussed the policies that have been added to the draft Housing Element, and discussed the proposal for a relocation assistance program. Comm. Klein confirmed with Ms. Ise that City Council decided not to increase the Below Market Rate (BMR) of 12.5% in 2012, and that lowering the threshold for the number of units triggering the BMR program could be an added recommendation to Council. Comm. Durham confirmed with Ms. Ise that requests by applicants to only pay the in-lieu fee rather than build the BMR units would need to be heard by Council, and discussed a future program to develop the BMR units that would otherwise have been built with the in-lieu fees collected from different projects. Comm. Harrison discussed with Ms. Ise current housing studies which include the adjustment of the linkage fee assessed on commercial properties and the rental housing impact fee. Chair Melton confirmed with Ms. Ise that several recessions slowed housing growth between the years of 2000 and 2010. Trudi Ryan, Planning Officer, noted that during the 2008 recession, Planning permits were extended in preparation for construction when the economy improved. Chair Melton commented on the gap between the needed number of very low income housing units determined by the Regional Housing Needs Assessment (RHNA) and those that City staff have determined will be built between 2015 and 2023, and discussed with Ms. Ise that money, land and a zoning code that allows density and height are needed to close this gap. Vice Chair Olevson discussed with Ms. Ise the source of funding to build 72 BMR units over the next 20 years, and confirmed which agencies determine regional housing needs. Vice Chair Olevson commented on the North Bay appearing exempt from these housing requirements. Comm. Harrison discussed with Ms. Ise the BMR ownership program and confirmed that there is no waiting list for these units. Comm. Harrison and Ms. Ise also discussed how a BMR property is subsidized. City of Sunnyvale Page 14 Planning Commission Meeting Minutes - Final June 9, 2014 Melissa Morris, with the Law Foundation of Silicon Valley, discussed her support of adopting the draft Housing Element and said that her organization believes it is important to have a rent stabilization program. Julie Quinn, with the Housing Trust Silicon Valley, discussed her support of adopting the draft Housing Element and said that her organization believes funding programs should be included in the Housing Element. Marie Bernard, Executive Director at Sunnyvale Community Services, discussed her support of adopting the Housing Element, the importance of having a rent stabilization program and of finding other sources of funding. Wendee Crofoot, with the Silicon Valley Leadership Group and Friends of Caltrain, discussed her support of adopting the draft Housing Element and the need for housing to be built near transit. Chair Melton closed the public hearing. Comm. Harrison confirmed with Ms. Ise that there is no division of the BMR in-lieu fund for ownership versus rental properties, and confirmed that the housing mitigation fund supported the armory. Vice Chair Olevson confirmed with Ms. Ise that staff is not recommending the adoption of the Association of Bay Area Governments (ABAG) job connection strategy, and that the ABAG recommendations were added to the draft Housing Element as a reference. Comm. Harrison moved Alternative 2 to recommend that Council authorize staff to submit the draft Housing Element with modifications to HCD for review: 1) That all housing built for ownership be subject to the BMR requirement, regardless of the number of units. Vice Chair Olevson seconded. Comm. Harrison said that while she understands that rental housing in California is exempt from BMR requirements, she is aware of a program in Montgomery County, Maryland in which all ownership housing is subject to BMR requirements on a sliding scale so that there are no games played with an artificial limit. She said she thinks it could provide more money and not unduly affect people building single units and would provide a continuous stream without politics. City of Sunnyvale Page 15 Planning Commission Meeting Minutes - Final June 9, 2014 Vice Chair Olevson said that there are so many requirements from Federal funding requirements to the State RHNA requirements, that the only means of survival seems to be spreading the pain around to everyone. He said he is generally not in favor of requiring a builder to support someone else, which looks to him like wealth transfer, but that at this point this is the only equitable way of doing this. Comm. Klein offered a friendly amendment to consider increasing the BMR requirement from 12.5% to 15% of all units in the project. Comm. Harrison and Vice Chair Olevson accepted. Comm. Klein said he will be supporting the motion and that decreasing the number of units required before allocating funds to the BMR program makes sense, and that while he has a question about single-family versus more than one, he thinks staff will look more closely to determine what is fair. He said 12.5% has been the status quo for a long time and that ten years ago the issue was brought up to raise that percentage, and seeing that it remains as 12.5%, he thinks now raising it to 15% seems a more fair and easy calculation. He said it makes sense within this state of the housing environment in Sunnyvale, and he applauds the upgrades staff has made to the Housing Element, and thinks taking it a few steps further will improve the plan overall. Comm. Durham said he will be supporting the motion, and in looking at the gap between those who can buy and those who cannot in the City and while trying to reduce travel and transit to work, he thinks we have to try to keep a balance for people working in the area and that this may be best way to do it. He said we cannot afford economically or environmentally to ship our housing out to the other side of the peninsula or to the Central Valley. Chair Melton said he will be supporting the motion and that he implores staff and everybody in the City to continue to explore creative solutions to the problem. He said this is a real issue of great impact to the wellbeing of the city, to all its citizens and to the future of the City to continue exploring what we can do in Sunnyvale and on a regional basis. He said he gives a tip of the cap to City staff for a job well done in the creation of the Housing Element as there are a lot of moving parts and State requirements, and that there is a lot of subject matter and expertise that we are fortunate to have in City staff. He said he is looking forward to seeing City Council and the Housing and Human Services Commission take a shot at this. MOTION: Comm. Harrison moved Alternative 2 to recommend that Council City of Sunnyvale Page 16 Planning Commission Meeting Minutes - Final June 9, 2014 authorize staff to submit the draft Housing Element to HCD for review with modifications: 1) To add a program to consider expanding the Below Market Rate Ownership Housing Requirement to all ownership housing projects (i.e. those of fewer than eight new units); and 2) To consider increasing the BMR requirement to 15% of all units in the project. Vice Chair Olevson seconded. The motion carried by the following vote: Yes: 6 - Chair Melton Vice Chair Olevson Commissioner Durham Commissioner Harrison Commissioner Klein Commissioner Rheaume No: 0 Absent: 1 - Commissioner Simons City of Sunnyvale Page 17 Planning Commission Meeting Minutes - Final June 9, 2014 5 14-0492 File #: 2014-7309 Location: 146 S. Murphy Ave. (APN: 209-06-034) Zoning: DSP/2 (Downtown Specific Plan/Block 2) Zoning District Proposed Project: SPECIAL DEVELOPMENT PERMIT to allow the modification of the hours of operation for Special Development Permit 2012-7811(Condition of Approval AT-1) allowing the business to remain open until 2:00 a.m. Applicant/Owner: Michael Hu / Christopher S Sun et al Project Planner: Shaunn Mendrin, (408) 730-7429, smendrin@sunnyvale.ca.gov Trudi Ryan, Planning Officer, presented the staff report. Comm. Durham discussed with Ms. Ryan whether there were concerns with people leaving Pure Lounge at 1:30 a.m. and going to another establishment and he confirmed that there is no longer a requirement for the night club to serve food. Chair Melton opened the public hearing. Michael Hu, the business owner, provided background information on the night club and requested approval of the permit. Chair Melton closed the public hearing. Vice Chair Olevson moved Alternative 1 to approve the Special Development Permit. Comm. Klein seconded. Vice Chair Olevson said he wanted to take public note that the business owners have tried hard to be good corporate citizens in Sunnyvale. He said they tried to make a go of the establishment as a restaurant and that in the previous meeting with the applicants they made a strong case that the facility they were trying to rehabilitate was not making it economically as a restaurant, hence their application to turn it into a lounge. He said they have met all conditions of the prior approval and according to the Department of Public Safety they have had none of the problems associated with other less capable owners of this type of establishment. He said because they have done such a diligent job of working with the City and keeping a high-quality establishment he recommends support of the motion. Comm. Klein said he will be supporting the motion and was able to make the findings. He said this is a business that has been following the rules, and to City of Sunnyvale Page 18 Planning Commission Meeting Minutes - Final June 9, 2014 equalize the situation with similar establishments on Murphy, extending the hours of operation to 2:00 a.m. is the only equitable thing to do. Chair Melton said he will be supporting the motion and was on the Planning Commission in 2012 when this application was considered, and that back then this site under previous ownership had a really checkered history. He said there was a lot apprehension floating around and some interesting conditions of approval put on, and all he can say is great job to the applicants. He said it makes a lot of sense to approve the permit, and that staff nailed it with the additional compliance reviews to ensure sufficient oversight. MOTION: Vice Chair Olevson moved Alternative 1 to approve the Special Development Permit. Comm. Klein seconded. The motion carried by the following vote: Yes: 6 - Chair Melton Vice Chair Olevson Commissioner Durham Commissioner Harrison Commissioner Klein Commissioner Rheaume No: 0 Absent: 1 - Commissioner Simons 6 14-0571 Standing Item: Potential Study Issues for 2015 No potential Study Issues for 2015 were discussed. NON-AGENDA ITEMS AND COMMENTS COMMISSIONER ORAL COMMENTS None. STAFF ORAL COMMENTS Trudi Ryan, Planning Officer, said Council would be hearing the proposed budget the following night, and said that due to internal shifting around of staff the Commission may see new faces. INFORMATION ONLY ITEMS None. City of Sunnyvale Page 19 Planning Commission Meeting Minutes - Final June 9, 2014 ADJOURNMENT With no further business, Chair Melton adjourned the meeting at 11:42 p.m. City of Sunnyvale Page 20