Planning Commission

City of Sunnyvale Meeting Minutes Planning Commission Monday, April 11, 2022 7:00 PM Telepresence Meeting: City Web Stream | Comcast Channel 15 | AT&T Channel 99 Special Meeting: Study Session - Canceled | Public Hearing - 7:00 PM STUDY SESSION CANCELED 7 P.M. PLANNING COMMISSION MEETING CALL TO ORDER Pursuant to Government Code Subdivision 54953(e), the meeting was conducted telephonically; pursuant to state law, the City Council made the necessary findings by adopting Resolution No. 1089-21, reaffirmed on April 5, 2022. Chair Howard called the meeting to order at 7:00 PM. ROLL CALL Present: 5 - Chair Daniel Howard Vice Chair Martin Pyne Commissioner John Howe Commissioner Nathan Iglesias Commissioner Carol Weiss Absent: 2 - Commissioner Sue Harrison Commissioner Ken Rheaume Commissioner Harrison’s absence is excused. Commissioner Rheaume’s absence is excused. ORAL COMMUNICATIONS None. CONSENT CALENDAR MOTION: Commissioner Howe moved and Vice Chair Pyne seconded the motion to approve the Consent Calendar. City of Sunnyvale Page 1 Planning Commission Meeting Minutes April 11, 2022 The motion carried by the following vote: Yes: 5 - Chair Howard Vice Chair Pyne Commissioner Howe Commissioner Iglesias Commissioner Weiss No: 0 Absent: 2 - Commissioner Harrison Commissioner Rheaume 1. 22-0464 Approve Planning Commission Meeting Minutes of February 28, 2022 PUBLIC HEARINGS/GENERAL BUSINESS 2. 22-0300 Forward a Recommendation to City Council to Introduce an Ordinance to Amend Sunnyvale Municipal Code Chapter 19.76 (Short-Term Rental of Residential Property), Adopt a Resolution to Amend the FY 2021/22 Citywide Fee Schedule Related to Fines for Violations of the Short-Term Rental Ordinance, and Find that these Actions are Exempt from the California Environmental Quality Act Deputy City Manager Jaqui Guzmán presented the staff report with a slide presentation. Commissioner Howe confirmed with Deputy City Manager Guzmán that the process by which applicants register for a short-term rental (STR) is a user-friendly one that involves an online application form and low fees. Commissioner Howe also confirmed with Deputy City Manager Guzmán that the City’s Neighborhood Preservation Specialist issues citations for an applicant’s failure to comply with regulations on a case-by-case basis. Commissioner Weiss inquired about Neighborhood Preservation’s current staffing numbers. Senior Neighborhood Preservation Specialist Jhoanne Navarro-Tran advised her that there are currently two Neighborhood Preservation Specialists and two vacant Neighborhood Preservation Specialist positions. Commissioner Weiss asked about whether the City notifies residents that they are in the vicinity of approved STRs. Deputy City Manager Guzmán responded that residents do not have the option of objecting to the approval of STRs in the same way that they do for other proposed projects reviewed by the Planning Commission. City of Sunnyvale Page 2 Planning Commission Meeting Minutes April 11, 2022 Deputy City Manager Guzmán added that verifying whether hosts of STRs are known sex offenders is not part of the STR application approval process, and she is uncertain about whether Airbnb performs this verification process as well. Vice Chair Pyne, regarding the increased penalties for violations of STRs, asked about whether City staff anticipate the elimination of or a decrease in the profit margin associated with illegal STRs. Deputy City Manager Guzmán clarified that the increased fines apply to public health and safety violations (i.e., building code violations that render a property unsafe). She added that the existing fines for administrative citations, which range from $100 to $500, apply to unregistered STRs or un-hosted stays and that state law limits the fines that the City may impose for administrative citations. Vice Chair Pyne questioned the ability of the City to enforce STR requirements on hosting platforms. Deputy City Manager Guzmán explained that, while these platforms do not currently require STR permit numbers in their advertisements, platforms such as Airbnb and Vrbo are willing to work with the City to comply with such requirements. Deputy City Manager Guzmán added that requirements may be enforced if the City chooses to sue these platforms, but this option is not being explored by the City. Commissioner Iglesias questioned Deputy City Manager Guzmán about whether other cities found that their STR practices and requirements achieved desired results. Deputy City Manager Guzmán answered that the requirement of STR permit numbers in platform advertisements coupled with ongoing collaboration between the City and these platforms have been the most effective way to manage STR programs. She added that platforms that offer portals for the submittal of complaints on STRs that are not compliant have been successful in managing STRs as well. Commissioner Iglesias noted that although the Transient Occupancy Tax (TOT) collected from STRs benefits the community, the risk of increased transiency and the risk of the community’s health and welfare remain. He also mentioned that STRs in South Lake Tahoe are required to post a notice that includes the STR permit number as well as a number to contact to report the rental’s failure to comply with regulations. When asked whether the City has considered imposing similar requirements, Deputy City Manager Guzmán responded that while this option was considered, alternative options for best practices were chosen. Commissioner Iglesias requested the statistics for complaints received by the City City of Sunnyvale Page 3 Planning Commission Meeting Minutes April 11, 2022 pertaining to Airbnb rentals and how those compare to the other complaints received by the City. Neighborhood Preservation Specialist Navarro-Tran informed him that 10 to 15 percent of the City’s complaints involve STRs. These complaints generally involve parking or the presence of many people at the rental property. Chair Howard and Deputy City Manager Guzmán discussed the impact that STRs have on long-term rental housing. Deputy City Manager Guzmán stated that requiring hosted stays for STRs assists with the prevention of long-term rental housing loss, out-of-control parties, and other such nuisance activities within the City. Commissioner Iglesias stated that, in his opinion, City regulations pertaining to STRs is limiting since they stipulate the prohibition of un-hosted stays and the use of only those accessory dwelling units (ADUs) approved prior to January 1, 2020 as STRs. He added that these requirements do not support the aging in place of Sunnyvale residents. In response to comments made by Commissioner Iglesias, Chair Howard advised that while there may be ways to creatively interpret the regulations concerning hosted stays, the requirement of hosted stays for STRs is a valuable consideration that will likely hinder the use of STRs for parties. Chair Howard opened the Public Hearing. There were no public speakers for this agenda item. Chair Howard closed the Public Hearing. When Commissioner Howe asked about terminology pertaining to service levels, Deputy City Manager Guzmán explained that recommendations regarding service levels are not within the Planning Commission’s purview and that they will be decided upon solely by the City Council. MOTION: Commissioner Howe moved and Vice Chair Pyne seconded the motion to approve Alternative 2- Forward a Recommendation to City Council to Introduce an Ordinance to Amend Sunnyvale Municipal Code Chapter 19.76 (Short-Term Rental of Residential Property) Adopt a Resolution to Amend the 2021/22 Citywide Fee Schedule Related to Fines for Violations of the Short Term Rental Ordinance, and Find that these Actions are Exempt from CEQA pursuant to CEQA Guidelines City of Sunnyvale Page 4 Planning Commission Meeting Minutes April 11, 2022 Section 15061(b)(3), with a modification. The modification is as follows: 1.) Note that a review of the enforcement service level determined by the City Council should be conducted within a timely manner (i.e., one year). Commissioner Howe commended City staff and the City Council for their efforts to permit STRs while simultaneously ensuring that hosts are compliant. He also noted the importance of the City Council to make corrective actions to the determined staffing levels withing a known timeframe (i.e., one year). Vice Chair Pyne agreed with comments made by Commissioner Howe and revealed that he feels assured by the fact that platforms such as Airbnb and Vrbo are voluntarily working with the City to maintain compliance. He also stated that the City’s ordinance pertaining to STRs has the capacity to allow the STRs while also addressing STR violations by means of citations. Chair Howard spoke in favor of the motion, echoed comments made by Commissioner Howe and Vice Chair Pyne, and added that some may argue about the flexibility surrounding hosting requirements for STRs. He also noted that Commissioner Howe’s amendment to the motion might already be addressed in the staff report, specified under the section Maximum Enforcement Pilot. The motion carried by the following vote: Yes: 5 - Chair Howard Vice Chair Pyne Commissioner Howe Commissioner Iglesias Commissioner Weiss No: 0 Absent: 2 - Commissioner Harrison Commissioner Rheaume This recommendation will be forwarded to the City Council for consideration at the April 26, 2022 meeting. City of Sunnyvale Page 5 Planning Commission Meeting Minutes April 11, 2022 3. 22-0450 Proposed Project: DESIGN REVIEW to allow a 1,124 square foot first and second floor addition to an existing one-story single-family home, resulting in 2,566 square feet (2,202 square feet living area and 364 square foot garage) and 51% floor area ratio (FAR). Location: 774 Santa Paula Ave (APN:205-05-053) File #: 2021-7524 Zoning: (R-0) Single Family Low Density Applicant / Owner: Juan Carlos Navarro (applicant)/ Bhim and Hari Rai (owner) Environmental Review: Class 3 Categorical Exemption relieves this project from the California Environmental Quality Act (CEQA) provisions. Project Planner: Cindy Hom, (408) 730-7411, chom@sunnyvale.ca.gov Associate Planner Cindy Hom presented the staff report with a slide presentation. Chair Howard opened the Public Hearing. Bhim Rail (homeowner) and Juan Carlos Navarro (architect/designer) presented information about the proposed project. Commissioner Weiss questioned the presence of one tankless water heater and one conventional water heater on the proposed project’s plans. Mr. Navarro explained that while the proposed project currently possesses one tankless water heater, Mr. Rail is interested in the possibility of installing a second tankless water heater on the second story of the proposed project. Commissioner Weiss commented that to do so at this time would yield conservation of both energy and savings. Commissioner Weiss inquired about whether any neighbors have weighed in on the proposed project or whether Mr. Rail has discussed the proposed project with them. Mr. Rail advised Commissioner Weiss that the neighbors he informed about the proposed project were supportive and considered adding a second story to their own homes as well. Mr. Rail then explained why he is in favor of adding a second tankless water heater to the proposed project. Associate Planner Hom explained that while there are no zoning codes that prohibit the inclusion of a second tankless water heater for the proposed project’s second floor, the approval of this inclusion would be subject to building code regulations. She also added the design review application is subject to a public hearing in which properties within 300 feet of the proposed project are notified of the proposed project. In so far, staff has not received any comments from the public. City of Sunnyvale Page 6 Planning Commission Meeting Minutes April 11, 2022 Commissioner Weiss confirmed with Mr. Navarro that the garage of the proposed project is slightly behind the front entry of the proposed project. There were no public speakers for this agenda item. Chair Howard closed the Public Hearing. MOTION: Commissioner Howe moved and Commissioner Weiss seconded the motion to approve Alternative 2- Approve the Design Review based on the Findings in Attachment 3 and subject to a modified Condition of Approval in Attachment 4. The modified Condition of Approval is as follows: 1.) Note that the Planning Commission approves the inclusion of a second tankless water heater in the proposed project’s plans subject to the City’s Building Code. Commissioner Howe commented that the proposed project fits in well within the existing community and that the proposed project’s plans have been carefully considered. He also noted that no objection from the public was received for the proposed project and that the proposed project should include a second tankless water heater if permitted by the building code. Commissioner Weiss made known her appreciation that no deviation was requested and that the proposed project meets the standards outlined by the Single-Family Design Techniques. She also praised the proposed project for its welcoming front entry and its ability to positively add to the appearance of the existing neighborhood. The motion carried by the following vote: Yes: 5 - Chair Howard Vice Chair Pyne Commissioner Howe Commissioner Iglesias Commissioner Weiss No: 0 Absent: 2 - Commissioner Harrison Commissioner Rheaume City of Sunnyvale Page 7 Planning Commission Meeting Minutes April 11, 2022 This decision is final unless appealed or called up for review by the City Council by 5:00 PM on Tuesday, April 26, 2022. STANDING ITEM: CONSIDERATION OF POTENTIAL STUDY ISSUES None. NON-AGENDA ITEMS AND COMMENTS -Commissioner Comments Vice Chair Pyne acknowledged that that the language for the Public Hearings/General Business section of the Planning Commission meeting agenda reads as follows: “If you wish to speak to a public hearing/general business item, please refer to notice at the beginning of this agenda. Each speaker is limited to a maximum of three minutes. For land-use items, applicants are limited to a maximum of 10 minutes for opening comments and 5 minutes for closing comments.” He noted that applicants have been allotted 10 minutes for opening comments and 10 minutes for closing comments, and he questioned whether the agenda language should be updated to reflect this change. Planning Officer Shaunn Mendrin advised that staff will verify whether any changes should be made to this language. Chair Howard wished everyone well and disclosed his hope that no further wars will be in our future. -Staff Comments Planning Officer Mendrin announced that on April 5, 2022, the City Council reconsidered and affirmed the resolution to continue virtual public meetings for the City Council and Boards, Commissions and Council subcommittees during the COVID-19 state of emergency. When asked by Chair Howard whether there is an opening date for City Hall, Planning Officer Mendrin stated that the City Hall currently under construction may open at the end of 2022 and that he is unaware of a specific date for the opening. He added that he would try to provide one at the next Planning Commission meeting. ADJOURNMENT Chair Howard adjourned the meeting at 8:21 PM. City of Sunnyvale Page 8