This report is a follow-up to RTC 98-400 (Siting of Child Care) which addressed issues related to locating child care centers in Sunnyvale. That report recommended that staff prepare zoning ordinance changes and conduct an appropriate level of environmental review regarding the siting of child care. Council approved this work plan on October 1998.

This follow-up report achieves the following:

• Outlines the specific zoning code changes needed to fulfill the Council’s work plan;
• Includes new definitions for business-sponsored child care centers, and;
• Includes the initial study evaluating the environmental impacts of these changes.

Primarily, the zoning ordinance changes limit child care in industrial areas to those that are business-sponsored, but increases opportunities for child care in residential, office, Industrial to Residential (ITR) and Downtown Specific Plan (DSP) zoning districts. Other child care facilities proposed in industrial zones would be subject to in depth analysis and further environmental review.

The Council also directed staff to define business sponsored on-site child care. Staff has developed the following definitions for small and large business- sponsored child care centers. The definitions refer to the California Accidental Release Prevention (CalARP) program.

As proposed, business-sponsored on-site small child care centers would be allowed in industrial zoning districts with staff level review with a Miscellaneous Plan Application (MPA). Business-sponsored on-site large child care centers would be allowed in industrial zoning districts subject to approval of a Use Permit by the Director of Community Development.

Attachment C summarizes the specific zoning ordinance changes.

A special project was approved for $100,000 for the preparation of an Environmental Impact Report (EIR) related to siting of child care in industrial zones. Staff indicated that the conceptual approaches approved in October 1998 may require only $20,000. However, staff now believes that the necessary environmental analysis can be completed in-house to incorporate the recommended changes to the zoning ordinance and, therefore, a consultant is not needed.

As determined by Council in October 1998 (RTC 98-400), when required, the applicant will cover the cost of preparing EIRs for child care centers. The estimated cost would be approximately $50,000 to the applicant.

The Silicon Valley Manufacturing Group, the Chamber of Commerce and child care providers discussed the actions covered by this report when the work plan was adopted in October 1998. Copies of this Report To Council were sent the Manufacturing Group and the Chamber of Commerce in advance of the City Council meeting.

This item was considered by the Planning Commission at a study session on February 8, 1998 and at a regularly scheduled public hearing on February 22, 1999. A summary of that discussion is provided in this report and minutes from the meeting are attached (Attachment D). The Planning Commission recommended that Council approve the Zoning Code changes as recommended by staff by a 7-0 vote.

This item was considered by the Child Care Advisory Board on March 16, 1999. A summary of that discussion is provided in this report and minutes from the meeting are attached (Attachment E). The CCAB recommended that Council approve the staff recommended changes to the Zoning Code with modifications to the definition for business-sponsored on-site child care by a 7-1 vote.

1. Approve the Negative Declaration (based on the expanded initial study).
2. Approve recommended zoning code modifications to incorporate the following changes:

1. Initial Study
2. Negative Declaration
3. Table of Proposed Zoning Code Regulations for Child care
4. Planning Commission Minutes of February 22, 1999
5. Child Care Advisory Board Minutes of March 16, 1999

There are essentially two kinds of child care in Sunnyvale: 1) family day care (large and small family child care homes) and 2) child care centers. Although large and small family child care homes are included when counting available child care "slots" within the city, these facilities are not a subject of this study. Section 19.04.040 of the Zoning Code provides the following definition of child care centers.

For nearly ten years the City has been concerned that an adequate number of quality child care facilities be provided to meet community needs. This concern is balanced with neighborhood concerns about how a child care facility may affect adjacent properties. When a child care center is proposed for a residential neighborhood, the primary issues raised have been noise and traffic. More recently, the industrial community has expressed concern with the pressures to provide child care centers in their neighborhoods. Although child care facilities are a recognized community need, the problems inherent in finding suitable locations for these facilities continue. For a complete 10-year history on actions and studies related to child care in Sunnyvale refer to the Background section of RTC 98-400.

In response to a work plan adopted by Council in December 1997 (RTC 1997-525 – Siting of Child Care Centers in the City of Sunnyvale) staff prepared an analysis of zoning code requirements related to child care and evaluated the need for an Environmental Impact Report (EIR) for making changes to the zoning code related to child care. At a public hearing in October 1998 the City Council directed staff to implement the concepts listed in the Executive Summary. In addition, Council also took the following actions:

• Determined, that in any situation where an EIR is needed, to have the project sponsor pay for the preparation of the EIR.
• Adopted updated Guidelines for Child Care Centers in Industrial zones.

This report outlines the specific zoning code changes needed to fulfill the Council’s work plan from October 1998, including new definitions for business- sponsored child care centers, and including the initial study evaluating the environmental impacts of these zoning ordinance changes.

Policy N1.14 Support the provision of a full spectrum of public and quasi-public services (e.g. parks, day care, group living, recreation centers, religious institutions) that are appropriately located in residential, commercial and industrial neighborhoods and ensure that they have beneficial effects on the surrounding area.

Action Statement N1.14.4 Encourage employers to provide on-site facilities such as usable open space, health club facilities, and child care where appropriate.

Policy 5.1H.1 Support efforts to increase the availability, quality and affordability of child care in north Santa Clara County.

1. Reviewing Child care proposals:

1. Consider non-business-sponsored child care centers in industrial areas as a potential "use compatible with the district" requiring approval of a use permit. Evaluate the risks of hazardous materials as a part of the use permit.
2. Consider on-site business-sponsored child care centers in accordance with the zoning code.

2. Expand the noticing procedure for child care centers in industrial zones such that all property owners and tenants within 1,000 feet are informed of the proposed development. In addition, inform regulatory agencies of the proposed development in an effort to assure that all regulatory requirements are clarified in the planning process.
3. Include conditions in a use permit for child care centers in industrial areas to provide additional safety measures such as evacuation/"Shelter in Place".
4. Establish a notification system for immediate notification of child care centers in the event of an airborne release of hazardous materials.
5. Provide informational materials and periodic workshops to child care providers and other interested parties in regard to commonly used hazardous materials as well as precautionary and/or emergency measures which can be taken in the event of a release.

This section focuses on the proposed changes to the zoning code and the Initial Study that was prepared to support these changes. For a detailed discussion on social, economic factors and land use patterns affecting child care, refer to the Discussion section of RTC 98-400(Siting of Child Care).

In considering the question of which zoning districts are appropriate for child care, staff looked at the practices of adjacent cities. Staff found that San Jose requires a use permit for a child care facility in every zone, as does Cupertino. Mountain View has excluded child care facilities from industrial zones, with one very narrow "window of opportunity" for an industry that may wish to sponsor a child care facility on site.

Sunnyvale’s current zoning code allows child care centers as a permitted use in some districts, requires a use permit in some districts, and does not mention child care centers in some districts.

Staff recommends that the code be amended so that the permissibility of child care centers is more clear in every zoning district. Generally, the regulatory status of a use indicates its level of appropriateness for a district. Uses that are permitted "by right" are clearly considered appropriate for a district. Uses that are specifically listed as those that may be considered through a use permit, design permit or special development permit, are considered as potentially appropriate, based on site, design and other circumstances. Uses not listed are those generally considered inappropriate for a district. The current zoning code has the following provisions related to child care:

Child Care as a Permitted Use:

• P-F Public Facility District (with an occupant load of up to 30 -children and staff with a Miscellaneous Plan Application)
• C-1 Neighborhood Commercial District (with an occupant load of up to 30 - children and staff with a Miscellaneous Plan Application)
• R-MH Residential Mobile Home District (when used only by residents of the mobile home park)

Child Care with Use Permit or Special Development Permit:

• R-1, R-0, R-1.5 and R-1.7/PD
• CD Civic Center
• Low-Medium and Medium Density Residential sub-districts in the Downtown Specific Plan
• M-S and M-3 industrial districts

Child Care not specifically mentioned:

• R-2, R-3, R-4 and R-5 residential districts
• O Office
• DSP Downtown Specific Plan, office, retail, mixed use and low density residential sub-districts
• C-4 Commercial Service

In October 1998, Council approved the staff recommendation that further clarification of where child care centers can be considered could assist in establishing day care. It is important to note that, while child care facilities are certainly affected by zoning regulations and standards, there are many other factors that impact the development of child care centers as well, including state regulations.

The table located in Attachment C provides an overview of the proposed zoning code regulations for child care in Sunnyvale. The specific changes are discussed in detail below.

The proposed zoning code changes eliminate child care centers on the "use permit list" in the M-S and M-3 districts, except for business-sponsored facilities (see discussion below). The 1998 Guidelines will continue to function to guide any applications for child care facilities in these districts. In October 1998, Council decided it was not necessary to codify the guidelines.

The Council directed staff to define business-sponsored on-site child care in industrial, commercial and office zoning districts. Staff has developed the following definitions for business-sponsored small and large child care facilities.

These zoning code changes reflect Council’s decision to review business- sponsored small child care as a Miscellaneous Plan Application (MPA). Smaller centers are acceptable because it is much easier to evacuate and manage a fewer number of children in case of a hazardous materials accident. It was determined that a business-sponsored small child care could be defined as 14 or fewer children, because this parallels the size of a residential large family day care facility.

Business sponsored large child care centers would be reviewed as a use permit. It was determined that a business-sponsored large child care center could be defined as having an occupant load of 24 children and 6 care providers. This occupant load is consistent with Article 19, Section 15303(c) of the CEQA Guidelines for categorical exemptions. Unless other environmental issues are identified, most business-sponsored large child care centers could be reviewed as a Minor Use Permit by the Director of Community Development at an Administrative Hearing. Business-sponsored child care centers proposed to be larger than 24 children would be reviewed using the 1998 Guidelines to determine if they are a "use compatible with the district".

For both small and large business-sponsored child care centers, the purpose of the 1,000-foot safety buffer is to maintain a distance between sensitive uses and acutely hazardous materials. Maintaining this buffer will benefit both sensitive uses and companies that currently use or may plan to use acutely hazardous materials. The safety buffer provides extra protection in the event of a hazardous materials accident, by creating more time for evacuation and greater dispersal of any toxic gases. It also helps to protect the acutely hazardous materials user from liabilities, uncertainties, and restrictions that could happen if sensitive users move nearby.

A 1,000-foot buffer is a distance consistent with State legislation dealing with distances between acutely hazardous materials and sensitive uses. State legislation refers to either a 1,000-foot radius or a quarter mile (1,320 feet) radius.

State legislation requires a Risk Management Plan (RMP) from companies that locate within 1,000 feet of a school and other high-risk facilities like child care centers. The State laws offer a reasonable standard, but are not intended to establish absolute safety thresholds.

There may be areas where business-sponsored on-site child care is desired, and the required 1,000 foot distance can not be established. In these cases the child care applicant may instead seek agreements with owners of industrial properties within 1,000 feet of the proposed child care center stating that they will not allow the use of acutely hazardous materials on their properties. The term acutely hazardous materials refers to those materials listed in the California Accidental Release Prevention (CalARP) program which does include materials commonly used in the semi-conductor industry.

It should be noted that adding these definitions creates only limited opportunities for child care in industrial zoning districts. There are currently approximately four large industrial "campuses" where a business-sponsored child care could meet the 1,000 foot distance. It is also unlikely that owners of industrial properties would readily agree to limit the manufacturing processes of tenants by eliminating the use of commonly used hazardous materials.

The Downtown Specific Plan area has been designated for redevelopment for residential, commercial and office uses. On October 27, 1998, Council determined that Downtown is an area that would be suitable for locating child care as it redevelops.

The proposed zoning code changes amend the Downtown Specific Plan zoning regulations to more specifically encourage the development of child care as redevelopment occurs. In addition, the zoning code changes include provisions to make child care centers a permitted use in more of the residential sub-districts in the Downtown area.

Residential zoning districts have traditionally been appropriate locations for child care. A center would typically be considered with a use permit to assure compatibility with the neighborhood. In October 1998, Council determined that, pending an initial study, child care centers should be listed as a use permitted in all residential zoning districts with approval of a use permit.

In 1993, several industrial areas were studied to consider whether they should be rezoned to encourage more effective use of the land. Many of these sites were older industrial locations that were unused, underused or in disrepair. The study, known as the Futures Study, resulted in the designation of several of the sites for redevelopment to residential uses. These sites were rezoned to include the ITR (Industrial to Residential) zoning district, allowing residential development to occur without any rezoning.

Futures Sites are not surrounded by industrial districts, but have residential and Public Facility districts at their borders, with only one border (or a portion of a border) located adjacent to industrial zones. As these districts transition to residential uses, child care centers would be appropriate support facilities for the residential neighborhoods, and are close to the industrial area of the community.

The Futures sites also have a residential zoning associated with them (R-1.7 or R-3). The proposed zoning code changes to the R-3 and R-1.7 districts will allow child care with a use permit.

The City has very few areas zoned for office districts. Most are centrally located (near Downtown and the Civic Center) or near residential areas in the southern section of the City. Office zoning districts are places of employment and are typically located along major transportation routes, both considered positive reasons for locating child care.

Any change to the zoning code requires environmental review. Staff has completed an initial study and has determined that the proposed zoning code changes, including new definitions would not constitute a significant adverse effect to the environment. The initial study does not indicate that additional environmental review is required. A Negative Declaration has been prepared (Attachment A). Staff has determined that small child care facilities sponsored by the business on the same site would not pose significant environmental impacts or unnecessarily restrict the ability of it or other businesses to operate. Larger on-site child care facilities, that are also business sponsored, may require additional environmental review, additional public notice and the need for use permit conditions.

A special project was approved for $100,000 for the preparation of an Environmental Impact Report (EIR) related to siting of child care in industrial zones. Staff indicated that the conceptual approaches approved in October 1998 may require only $20,000. However, staff now believes that the necessary environmental analysis can be completed in-house to incorporate the recommended changes to the zoning ordinance and, therefore, a consultant is not needed.

As determined by Council in October 1998 (RTC 98-400), when required, the applicant will cover the cost of preparing EIRs for child care centers in industrial areas. The estimated cost would be approximately $50,000 to the applicant.

The Silicon Valley Manufacturing Group, the Chamber of Commerce and child care providers discussed the actions covered by this report when the work plan was adopted in October 1998. Copies of this report were sent to the Manufacturing Group and the Chamber of Commerce.

This item was considered by the Planning Commission at a study session on February 8, 1998 and at a regularly scheduled public hearing on February 22, 1999. The minutes from the meeting are attached (Attachment D). The Planning Commission discussed the issue and recommended that the Council affirm the Negative Declaration and approve the staff proposed zoning code changes by a 7-0 vote.

This item was considered by the Child Care Advisory Board at a meeting on March 16, 1999. The minutes from the meeting are attached (Attachment E). The CCAB had considerable discussion about the proposed definitions for business-sponsored on-site child care centers. The CCAB discussed the appropriateness of child care centers in industrial areas in general and the proposed provision to allow these types of child care centers with agreements from adjacent property owners regarding their use of hazardous materials. The CCAB discussed the City’s ability to monitor such agreements in the long run. The CCAB also discussed the affects the proposed zoning code changes would have on businesses in the industrial areas by limiting the ability to use commonly used hazardous materials. The CCAB recommended that the Council affirm the Negative Declaration and approve modified zoning code changes with a 7-1 vote. The CCAB approved the actions listed under Recommendations 2a-e with modifications to the definitions for business-sponsored on-site child care centers in 2c and 2d. The CCAB recommended that the definitions not include the provision to allow business-sponsored on-site child care centers if owners of industrial properties within 1,000 feet of the child care center record an agreement not to use acutely hazardous materials.

Staff recommends that the Council uphold the decision of the Planning Commission including the definitions of business-sponsored on-site child care center as proposed by staff. Staff still believes that the proposed definitions create a slightly greater opportunity for child care in industrial zones under strict conditions which protect both child care and businesses.

1. Approve the Negative Declaration

3. Adopt Zoning Code changes as recommended by the Child Care Advisory Board with modified definitions of business-sponsored on-site child care to exclude the provision to allow child care with agreements from businesses within 1,000 feet.

4. Adopt modified Zoning Code changes.

5. Do not approve the Negative Declaration and instruct staff where additional environmental analysis is required.

6.     Do not adopt recommended zoning code changes.

Alternatives 1 and 2.

Prepared by:

Gerri Caruso
Associate Planner

Reviewed by:

Gail Price
Principal Planner

Reviewed by:

Trudi Ryan
Planning Officer

Reviewed by:

David S. Boesch
Director of Community Development

Approved by:

Robert S. LaSala
City Manager