Planning Commission

City of Sunnyvale Meeting Minutes Planning Commission Monday, May 23, 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 May 3, 2022. Vice Chair Pyne called the meeting to order at 7:00 PM. ROLL CALL Present: 5 - Vice Chair Martin Pyne Commissioner Sue Harrison Commissioner Nathan Iglesias Commissioner Ken Rheaume Commissioner Carol Weiss Absent: 2 - Chair Daniel Howard Commissioner John Howe Chair Howard’s absence is excused. Commissioner Howe’s absence is excused. ORAL COMMUNICATIONS None. CONSENT CALENDAR Administrative Aide Guia Sharma advised Vice Chair Pyne that one virtual hand was raised by a member of the public. City of Sunnyvale Page 1 Planning Commission Meeting Minutes May 23, 2022 Vice Chair Pyne opened the public hearing. There were no public speakers for this agenda item. Vice Chair Pyne closed the public hearing. MOTION: Commissioner Weiss moved and Commissioner Rheaume seconded the motion to approve the Consent Calendar. The motion carried by the following vote: Yes: 5 - Vice Chair Pyne Commissioner Harrison Commissioner Iglesias Commissioner Rheaume Commissioner Weiss No: 0 Absent: 2 - Chair Howard Commissioner Howe 1.A 22-0591 Approve Planning Commission Meeting Minutes of April 25, 2022 1.B 22-0592 Approve Planning Commission Meeting Minutes of May 9, 2022 PUBLIC HEARINGS/GENERAL BUSINESS 2. 22-0619 CHANGE OF HEARING DATE TO JUNE 27, 2022 Proposed Project: Related applications on a 1.81-acre site: Special Development Permit to redevelop a portion (westerly portion) of an existing shopping center (Fremont Corners) into a mixed-use Village Center with 3,384 square feet of commercial space and 35, four-story townhome-style condominiums with associated parking and site improvements including common public open space. TENTATIVE MAP to subdivide the lot into five lots and 35 condominiums. Location: 102 E. Fremont Ave. and 1310 S. Sunnyvale-Saratoga Rd. (APN: 309-01-002) File #: 2021-7161 Zoning: C-1/PD (Neighborhood Business / Planned Development) Applicant / Owner: TTLC Sunnyvale FC, LLC / Fremont Corners, Inc Et Al City of Sunnyvale Page 2 Planning Commission Meeting Minutes May 23, 2022 Environmental Review: Consistent with CEQA Section 15183 and 15183.3 (Projects Consistent with a Community Plan, General Plan, or Zoning and Streamlining for In-fill Projects). Project Planner: Shétal Divatia, (408) 730-7637, sdivatia@sunnyvale.ca.gov Principal Planner Noren Caliva-Lepe stated that staff requests the continuation of this agenda item to the June 27, 2022 Planning Commission meeting. She confirmed that a new legal ad and mailed notices will be completed prior to the meeting. Vice Chair Pyne opened the public hearing. There were no public speakers for this agenda item. Vice Chair Pyne closed the public hearing. MOTION: Vice Chair Pyne moved and Commissioner Weiss seconded the motion to continue the discussion on Public Hearing Agenda Item 2 to Monday, June 27, 2022. The motion carried by the following vote: Yes: 5 - Vice Chair Pyne Commissioner Harrison Commissioner Iglesias Commissioner Rheaume Commissioner Weiss No: 0 Absent: 2 - Chair Howard Commissioner Howe 3. 22-0559 Forward Recommendation to City Council Related to Approval of the Draft 2023-2031 Housing Element and Submittal of the Draft to California Department of Housing and Community Development for Review Chelsey Payne, Director of Urban Design and Planning at Ascent Environmental, presented the staff report with a slide presentation. Commissioner Rheaume clarified with Housing Officer Jenny Carloni that the City’s Sites Inventory accommodates the Regional Housing Needs Allocation (RHNA) and City of Sunnyvale Page 3 Planning Commission Meeting Minutes May 23, 2022 has an additional buffer to ensure that there is no net loss and all goals are met through all income categories. Commissioner Rheaume confirmed with Ms. Payne that according to AB 725, 25% of Moderate Income RHNA and 25% of Above Moderate Income RHNA must be met on high-density sites. Commissioner Rheaume inquired about the City’s projected growth and the data behind it. Ms. Payne explained that data was provided by the Association of Bay Area Governments (ABAG) which stemmed from market-based projections as well as ABAG policies for directing growth to jobs and infrastructure. Commissioner Rheaume commented that he would rather build upward than sacrifice open space. Commissioner Weiss questioned what is being done to address the issue of overcrowding in the City. Housing Officer Carloni responded that more affordable housing and diverse housing types ranging from studios to units with four or more bedrooms are being developed to support larger capacities. Commissioner Weiss noted that a lot of large families are intentionally multigenerational because of their culture. She stressed the importance of developing flats or apartments to accommodate their large size and suggested the inclusion of specific language within the Housing Element to target this issue. Commissioner Weiss proposed the use of data collected more recently than 2019 for values of owner-occupied units. She added that the 2019 data is out of date and will yield skewed results. Commissioner Weiss recalled a time when increased housing in Peery Park was discussed. Housing Officer Carloni and Planning Officer Shaunn Mendrin advised that currently, strict regulations prevent residential development in that area since it lies beneath air space. Commissioner Weiss highlighted the absence of high schools in the northern portion of the City and recognized this as an inequity due to missed opportunities for building community by means of after-school activities and programs for parents. She questioned what can be done to ensure that the Housing Element includes language for educational opportunity to addresses this concern. Housing Officer Carloni responded that the Housing Element aims to provide resources to future City of Sunnyvale Page 4 Planning Commission Meeting Minutes May 23, 2022 residents. In particular, she mentioned that the Moffett Park Specific Plan (MPSP) includes new residential development, resources for residents, and potentially a new school site. Commissioner Weiss acknowledged the use of 2016 data for the Location Affordability Index. She recommended the use of more recent data to account for changes that have taken place within the City over the last six years. Housing Officer Carloni and Ms. Payne answered that more recent data is not readily available for use and that they rely upon data provided by ABAG due to time and cost constraints. Ms. Payne added that they may include statements where applicable to touch on recent sale prices using data from Zillow or similar real estate companies. Commissioner Harrison expressed her happiness at the possibility of adding schools in the northern portion of the City. However, she voiced her concern that the MPSP may not move forward in a timely manner due to the amount of work that has yet to be completed. Housing Officer Carloni spoke in confidence that the MPSP would be adopted at approximately the same time as the Housing Element, if not sooner. Ms. Payne added that, in the event the MPSP is not adopted in time, the City may likely be obligated to rezone existing land to accommodate the RHNA. Commissioner Harrison confirmed with Principal Planner Mendrin that an amendment to the Peery Park Specific Plan (PPSP) would need to be implemented for residential development on the southern edge of the Peery Park plan area to be considered. This would involve a new Environmental Impact Report (EIR) and an evaluation of the need for flight paths as well. Commissioner Harrison questioned the small number of Accessory Dwelling Units (ADU) considering the recent passing of SB 9 which allows for up to four dwelling units on a single-family lot. Housing Officer Carloni explained that this data is supported by historical trends since legislation surrounding ADUs is relatively new, and few recent data sets exist. She assured Commissioner Harrison that the parcels listed in the Sites Inventory were examined closely and included only if there was enough interest in those parcels to indicate growth and development in the coming years. Commissioner Iglesias commented that, in his opinion, expecting a growth trajectory of 48% within the next twenty years seems aggressive in light of the City being landlocked. He also voiced his support of aging in place, increasing the City’s City of Sunnyvale Page 5 Planning Commission Meeting Minutes May 23, 2022 housing supply, and becoming less reliant on developers to increase the City’s housing supply. Commissioner Iglesias questioned whether the City’s water supply would be sufficient to support the upcoming residential developments especially since the City is currently imposing water usage restrictions. Ms. Payne advised that a determination was made that there is adequate projected water supply to meet the RHNA based on the City’s 2020 Urban Water Management Plan. Commissioner Iglesias proposed creating a clear distinction between constraints versus restraints in the Housing Element to assist policy setters in determining items they have the capacity to impact. Housing Officer Carloni confirmed that this distinction is already present in the draft Housing Element. Commissioner Iglesias asked whether, in the past, the City has ever accomplished the large growth that is being targeted by the Housing Element. Housing Officer Carloni informed him that our RHNA has slowly increased with time and that it is the City’s responsibility to meet the state’s mandates pertaining to RHNA. In short, the City has not accommodated this kind of growth before. Vice Chair Pyne and Housing Officer Carloni discussed how the timelines for various projects were decided upon. She explained that the timelines were based upon staffing, cost, and capacity. Vice Chair Pyne asked whether 60% of the capacity on higher density sites will truly meet the Lower Income need and what consequences there will be if it does not. Housing Officer Carloni answered that sites such as Moffett Park and Lawrence Station area were identified as high-density parcels that have the potential to accommodate the Low Income RHNA. She assured him that as sites like those develop, analysis will be completed to determine that the capacity is sufficient to support the Low Income RHNA. Ms. Payne added that this requirement for Low Income RHNA is conservative when compared to what is mandated by state law. She explained that a large majority of the sites in the Sites Inventory are high-density to ensure that the Low Income RHNA and all other income RHNAs will be accommodated across these sites. Vice Chair Pyne expressed his concern that placing lower-income housing in Moffett Park and other northern portions of the City will exacerbate existing equity issues such as lack of access to transit and education. He revealed his hope that these City of Sunnyvale Page 6 Planning Commission Meeting Minutes May 23, 2022 issues and others may be remedied with the opening of the Lakewood Branch Library and the implementation of educational and transit services in that area. Vice Chair Pyne raised concern about the affordability of rent for Moderate Income households. Housing Officer Carloni provided a brief overview behind the calculation of rent for each of the income categories. She stated that although we abide by the state’s code for rent calculation, the City has the ability to lower rent if circumstances call for doing so. Ms. Payne affirmed Housing Officer Carloni’s response. Commissioner Harrison questioned how the City’s upcoming Safe Parking program would impact the City’s RHNA. Housing Officer Carloni answered that this would not be considered as part of our RHNA, however work is being done to identify new programs for those at risk of homelessness or those who are currently homeless. When asked why this program will not be in effect until 2026, Housing Officer Carloni explained that while funding exists for this program, staffing resources are currently focused on the Housing Element. She assured Commissioner Harrison that a full study will be completed with the aid of a consultant team by the end of this year or early next year, and that the goal is to have operating Safe parking programs by 2026. Vice Chair Pyne suggested that the references of Census tracts in the Housing Element should be referred to as plurality tracts instead given the City’s diverse population. Vice Chair Pyne opened the Public Hearing. Zoe Siegel, Director of Climate Resilience at Greenbelt Alliance, proposed the elimination of parking minimums, use of stacked parking spaces, and preservation of open space requirements. Chuck Fraleigh, member of Livable Sunnyvale, cautioned against designating 60% of high-density sites such as Moffett Park and Lawrence Station area to accommodate the Low Income RHNA. He explained that when this was done in the past, only 15% to 20% of such high-density sites were allocated as lower-income units, and the Low Income RHNA runs the risk of not being met. Instead, he proposed setting a realistic target of allocating only 15% to 20% of those sites to accommodate the Low Income RHNA – a goal that still meets state standards. Mr. Fraleigh also highlighted the income segregation that exists within the City and City of Sunnyvale Page 7 Planning Commission Meeting Minutes May 23, 2022 noted placement of low-income housing in Census tracts that already possess an average income lower than Santa Clara’s Area Median Income (AMI). As a result, he suggested distributing lower-income units to higher-income areas in the southern portion of the City. Julia Liu spoke in agreement with Mr. Fraleigh’s comment regarding the unrealistic target of designating 60% of high-income areas for low-income housing. She proposed increasing the density of the Village Centers instead. Gail Rubino, member of Livable Sunnyvale, advocated for the inclusion of more than 18 units per acre of affordable housing units within the Village Centers and echoed comments made by Ms. Liu and Mr. Fraleigh regarding the allocation of 60% of high-density sites to accommodate the Low Income RHNA. Vice Chair Pyne closed the Public Hearing. MOTION: Commissioner Rheaume moved and Commissioner Harrison seconded the motion to approve Alternative 1 – Recommend that the City Council Approve the Draft Housing Element as shown in Attachment 2, Authorize staff to make final modifications based on Commissioner feedback and current and future public comment, and Authorize staff to submit the Draft Housing Element to HCD for review. Vice Chair Pyne spoke in overall favor of the motion and noted he is glad that staff is authorized to make final modifications to the Housing Element based on feedback and public comment received. Commissioner Weiss echoed Vice Chair Pyne’s comments and expressed her support of the motion. The motion carried by the following vote: Yes: 5 - Vice Chair Pyne Commissioner Harrison Commissioner Iglesias Commissioner Rheaume Commissioner Weiss No: 0 City of Sunnyvale Page 8 Planning Commission Meeting Minutes May 23, 2022 Absent: 2 - Chair Howard Commissioner Howe 4. 22-0541 Review Planning Program Budget and Fees for FY 2022-2023 Planning Officer Shaunn Mendrin presented the staff report. Commissioner Weiss asked whether the twenty-two positions that were previously frozen are in the City’s Planning Division. Principal Planner Caliva-Lepe answered that while only one of those positions is in the Planning Division, a Senior Planner position will become available in the summer. She also added that staffing resources will be evaluated once more specific plans are adopted. Commissioner Weiss and Principal Planner Caliva-Lepe agreed that they hoped to see more funding for Planning Division staffing. Principal Planner Mendrin informed the Planning Commissioners that the Planning Division recently hired two new Associate Planners: Robby Miller and Drew Taplin. He stated that their addition has helped with counter coverage and review of smaller permits. Vice Chair Pyne opened the Public Hearing. There were no public speakers for this agenda item. Vice Chair Pyne closed the Public Hearing. Vice Chair Pyne asked staff what action is required to be taken by the Planning Commission on this agenda item. Principal Planner Caliva-Lepe advised that, in the past, the Planning Commission has either chosen not to take action or provided comments for the City Council to consider. She also mentioned that the Planning Commission may recommend the budget as it is written to the City Council with or without further comments. Vice Chair Pyne recognized that while it would be great to have the budget to hire more Planning staff to relieve workload and make progress more quickly, he understands City budgetary constraints. STANDING ITEM: CONSIDERATION OF POTENTIAL STUDY ISSUES None. City of Sunnyvale Page 9 Planning Commission Meeting Minutes May 23, 2022 NON-AGENDA ITEMS AND COMMENTS -Commissioner Comments Commissioner Rheaume asked staff about the outcome of the survey that Planning Commissioners took regarding return to in-person meetings. Planning Officer Mendrin answered that while he does not have access to those results, he will request to receive them and provide them to the Planning Commissioners. Vice Chair Pyne recognized that some of his fellow Commissioners’ terms will be ending soon and voiced his desire to bid them farewell in person soon. -Staff Comments Planning Officer Mendrin announced that on May 10, 2022, the City Council held a study session on the Draft El Camino Real Specific Plan. Planning Officer Mendrin informed the Planning Commissioners that on May 24, 2022, the City Council will reconsider and affirm Resolution No. 1089-21 and make findings pursuant to Government Code Section 54953(e) (AB 361) to continue virtual public meetings for the City Council and Boards, Commissions, and Council Subcommittees during the Covid-19 state of emergency. During the same meeting, he stated that the City Council will appoint applicants to the various Boards and Commissions, including the Planning Commission. Planning Officer Mendrin stated that the Village Center Master Plan process has begun and provided an overview of what the process entails. He also directed the Planning Commissioners to the City’s webpage on the project. ADJOURNMENT Vice Chair Pyne adjourned the meeting at 9:06 PM. City of Sunnyvale Page 10