The City Council of the City of Sunnyvale adjourned from a 5:00 p.m. Closed Session with Real Property Negotiator regarding the Sunnyvale Town Center Mall, and met in regular session in the City Council Chambers, 456 West Olive Avenue, Sunnyvale, California at 7:30 p.m., with Mayor Miller presiding.

Fred Bell, Principal Planner, led the salute to the flag.

Ingrid Dick and Karen Smyth, of the American Cancer Society, announced the first Annual Sunnyvale Relay on August 23 and 24 at Sunnyvale Middle School commencing at 10:00 a.m.

Mayor Miller announced that on August 13 the City of Sunnyvale, the Sunnyvale Chamber of Commerce and the Downtown Association is cosponsoring Music and Market commencing at 5:30 p.m.

Mayor Miller announced that, per Councilmember Howe’s request, staff has researched the Linnett Lane neighborhood issues and identified that the issues are with the City of Cupertino. She has sent a letter to the City of Cupertino requesting resolution of the issues.

Mayor Miller announced she has received a nomination to the U.S. Conference of Mayors Homeland Security Task Force.

Mayor Miller announced that due to the success of the first Coffee & Conversation with the Mayor event last June, a second opportunity for residents to meet and chat with her in person has been arranged for Saturday, August 16, between 9:30 a.m. and 11:00 a.m. at the Coffee & More restaurant at 100 South Murphy Street. For more information, contact the City Communications Department at (408) 730-7535.

Vice Mayor Risch moved, and Councilmember Howe seconded, to approve the Consent Calendar. The motion carried unanimously.

Vice Mayor Risch announced that the City Council met in closed session with Real property Negotiator regarding the Sunnyvale Town Mall. Direction was given but no action was taken.

Erin Walters, Associate Planner, assisted by Trudi Ryan, Planning Officer, presented the staff report. She reported the City has received a letter from Yvonne E. Jacobson requesting consideration of a General Plan Amendment Study to allow a Land Use designation change from Commercial General Business to Medium Density Residential. This request would also require an amendment to the Precise Plan for El Camino Real. Although the property owner has specifically requested consideration of medium density residential, staff finds that a broader study is appropriate as the development is not consistent with the Precise Plan for El Camino Real.

Councilmember Fowler inquired if the Cherry Orchard Comprehensive Study is still available. Ms. Walters responded the information is still available but it is specific to that property and the opportunities for development are different.

Councilmember Fowler inquired if staff believed they would find something different on this property other than a combination of residential and retail. Ms. Ryan responded that the opportunities for retail are different in scale and type due to the site only being three acres.

In response to Councilmember Vorreiter, Ms. Ryan stated the study could take up to three months to complete.

In response to Mayor Miller, Ms. Ryan stated the cost is $4,000 for a General Plan Amendment Study to the applicant which usually covers staff time.

Mayor Miller opened the Public Hearing at 7:45 p.m.

William Jacobson, applicant, reviewed the proposed project and distributed a letter to the Council. He clarified their request is for mixed use and the plan they submitted fulfills all requirements. He stated the site would be better utilized for residential use than office use and would like the study to include their proposal.

Councilmember Walker inquired if the study would take more than three months and confirmed with the applicant that this was an acceptable timeframe. Scott Ward, of Classic Communities, Inc., responded they would like to find a way to reduce the timeframe of the study to two months. Councilmember Walker further confirmed with staff that the study would include the applicant’s proposed plan.

Councilmember Howe asked for clarification on the residential product that is planned. Mr. Ward responded the density is 18 units per acre with a town home product and would be for-sale units. Councilmember Howe requested staff to look at the density of the project of 15 units versus 18 units per acre.

Mayor Miller inquired if a portion of this property was county property and would it need to be annexed. Ms. Ryan responded that it is not necessary for a General Plan Study for the property to be annexed, but the property would need to be annexed when a development application is processed. She further stated the fees of annexation would be modest and it would take LAFCO approximately four months to complete the process.

Mr. Ward stated they would like to maintain the momentum for the project. He stated the environmental study regarding traffic issues and noise impacts could be addressed relatively quickly.

Thom Mayer, a member of the public, expressed concern of the number of driveways to Mathilda Avenue and suggested allowing the driveway to the tennis courts to become a public street.

Arthur Schwartz, a member of the public, expressed concern over the number of additional driveways to Mathilda Avenue, safety issues and the density of the project. He further stated he supported Mr. Mayer’s suggestion of allowing the driveway to the tennis courts to become a public street.

Mr. Jacobson, applicant, expressed concerns about the schedule and focus of the project. Ms. Ryan stated they would look at the General Plan designation and residential densities.

Mayor Miller closed the Public Hearing at 8:17 p.m.

Councilmember Walker moved, and Councilmember Howe seconded, to authorize the initiation of the General Plan Amendment Study and Precise Plan for El Camino Real Amendment Study for a comprehensive review of a range of land uses. The motion carried unanimously.

Kelly Diekmann, Associate Planner, assisted by Trudi Ryan, Planning Officer, presented the staff report. He reported the City has received a letter from Ronald B. Pfohl, Managing Member of Forum Development Group LLC, requesting consideration of initiating a General Plan Amendment (GPA) study to the recently revised Downtown Specific Plan. The applicant is not asking to change the types of permitted uses within Block 18, but is requesting a GPA study to increase the development intensities of the existing permitted uses for the block. Staff does not recommend an expanded scope of review for the GPA study request beyond the current request. A GPA study would examine raising the allowable square footage within the context of a design that is restricted to 75 feet in height.

Councilmember Vorreiter inquired what kind of consideration will be given by staff when Block 18 is put into the larger perimeters of the downtown area. Mr. Diekmann responded staff will be looking at the interaction with the abutting properties and the Murphy Avenue historic uses and historic neighborhoods.

Councilmember Walker clarified that this study was to deal with the increased intensity the applicant is proposing and inquired what the timeframe is. Mr. Diekmann responded this should be complete by the middle of October.

Mayor Miller noted that Council had already voted down the proposed increase in units for this property and inquired why this is coming back to the Council. Mr. Diekmann responded the vote was for a much larger scope of review for a 150 acre site. Director Paternoster clarified that the action by Council requested this evening is for a General Plan Amendment Study only.

Vice Mayor Risch inquired if the applicant had utilized the full allocation of retail space. Mr. Diekmann responded the last preliminary plan showed they had not utilized the full allocation of space.

In response to Vice Mayor Risch, Mr. Diekmann stated the study would take into consideration utilizing some of the retail space not utilized for office and residential use.

In response to Councilmember Howe, Mr. Diekmann stated that in the previous downtown plan, there were no residential units planned.

Mayor Miller opened the Public Hearing at 8:28 p.m.

Ronald Pfohl, Managing Member of the Forum Development Group, stated they have put forth a plan that they feel is the best plan for this property and are asking for the opportunity to proceed with what they believe is the best development. He noted the demand for office space is at an all time low and they are looking at a long-term plan. He further stated they plan an outreach to citizens to give them the opportunity to present their view.

Councilmember Vorreiter inquired what the response would be to a potential study to allow an increase of housing and office space, conditioned upon a shrinkage of retail units. Mr. Pfohl responded they have gone through a myriad of scenarios and feel they have reached an appropriate balance, but would support a study.

Vice Mayor Risch clarified that the applicant would be ready to accept the results of the study if it concludes that their planned development is not the most desirable for the City.

Mayor Miller requested that staff also include underground parking as part of this study.

Councilmember Fowler stated retail space is an important source of revenue for the City and inquired why the project will not work with the ratios identified on June 17. Mr. Pfohl responded it is a balance of the financial feasibility with the right mix to make a project work, and they are still at 900,000 square feet of retail space.

In response to Councilmember Fowler, Mr. Pfohl stated they are not offering any of the office space for sale, but are considering live/work units.

Councilmember Howe inquired if they would consider reducing the retail space to where the net increase is zero. Mr. Pfohl responded they would not consider such a reduction.

Mayor Miller inquired about the cost of the study. Ms. Ryan responded the staff time would come out of the Development Services budget, but the staff time is paid for by developer fees.

Andy Maloney, a member of the public, expressed concern over the density of the downtown. He reviewed the list of the Friends of Sunnyvale suggestions for the downtown area and urged the Council not to approve the study. He advocated for a large underground parking lot and central plaza.

Arthur Schwartz, a member of the public, expressed concern over the intensity of the development’s effect on traffic and did not feel increased office space would be beneficial due to the high vacancy rate.

Cynthia Johnson, a member of the public, expressed concern over the high density in the downtown area and the impact on the quality of life. She urged Council not to approve the study.

Ray Johnson, a member of the public, expressed concern on the impact of a high density development on the quality of life and advocated for a traditional downtown and underground parking.

Paul Jay Reed, President of the Friends of Sunnyvale, advocated for giving the citizens of Sunnyvale the downtown they want. He expressed concern over the additional parking and driveways the proposed development would create.

Olaf Hirsh, a member of the Friends of Sunnyvale, stated he did not see the value of an additional study and urged the Council to deny the request for the proposed study.

Melinda Hamilton, of the Friends of Sunnyvale, advocated for keeping the density at the current level and not undertake an additional study. She further expressed concerns regarding traffic, parking and General Amendment Plan fees. She stated she did not see the value of trading retail space for office space.

Mr. Pfohl, applicant, stated they plan to have focus groups and will be submitting a parking analysis.

In response to Vice Mayor Risch, Mr. Pfohl stated they believe they have enough information to justify a new study.

Mayor Miller closed the Public Hearing at 9:30 p.m.

Councilmember Walker moved, and Vice Mayor Risch seconded, to authorize the initiation of the General Plan Amendment Study for the distribution and increased maximum development intensity permitted within Block 18 of the Downtown Specific Plan from 200 housing units to 300 housing units and general office square footage from 202,000 square feet to a total of 300,00 square feet.

Vice Mayor Risch offered a friendly amendment to direct staff to look at excess retail space being traded for office space. The amendment was accepted by Councilmember Walker.

Councilmember Howe offered a friendly amendment for staff to come back to Council with revenue projections for all scenarios. The amendment was accepted by Councilmember Walker.  Councilmember Howe asserted that he would not be supporting the motion.

The motion carried with Mayor Miller and Councilmembers Fowler and Howe dissenting.

Trudi Ryan, Planning Officer, presented the staff report. She stated the purpose for the study is to identify whether or not a modest increase in lot coverage would reduce the number of second-story developments by encouraging single-story developments. The study is not intended to suggest modifications to any other portion of the residential zoning regulations or to the Single-Family Home Design Techniques. She reviewed lot coverage and floor area ratio (FAR) policies of surrounding cities, the number and type of applicants submitted for Design Review in Sunnyvale over the last two years, possible alternatives to the City’s existing lot coverage and FAR policies, and an analysis of the various alternatives to the City’s current policies. Staff has concluded that a modest increase in lot coverage would be beneficial for the City.

Mayor Miller inquired if this intensity applied to new development and redevelopment. Ms. Ryan responded new developments could come in at 45 percent lot coverage as a single story home.

Councilmember Vorreiter expressed concern over having to remove five percent of their first story and was any consideration given to adding a smaller second story that would maintain the FAR. Ms. Ryan responded the staff recommendation came out of a Planning Commission meeting and if Council chose, they could vote to allow up to 45 percent for the first story versus the existing 40 percent.

Councilmember Valerio expressed concern over the five percent first story removal, and inquired about considering variances. Ms. Ryan responded variances can always be considered, but there must be an associated hardship. She further stated the only homes that exceed the 40 percent lot coverage are those that have been granted a variance.

Mayor Miller opened the Public Hearing at 9:55 p.m.

Marie Chole, a member of the public, spoke in support of the proposed Ordinance.

Mayor Miller closed the Public Hearing at 9:58 p.m.

Councilmember Howe moved, and Councilmember Walker seconded, to introduce an ordinance to amend the Municipal Code increasing lot coverage for first story only. Second story additions to residences with existing 45 percent lot coverage would require removal of 5 percent of the first story.

Councilmember Howe amended the motion to direct staff to report back to Council in two years with the number of plans this Ordinance has generated. The amendment was accepted by Councilmember Walker.

The motion carried unanimously.

Lorrie Gervin, Environmental Division Manager, presented the staff report. She stated the addition of this chapter to the Municipal Code will provide regulations and the necessary authority to implement certain requirements of the National Pollutant Discharge Elimination Systems (NPDES) permit issued to the City of Sunnyvale by Region 2 of the California Regional Water Quality Control Board regarding storm water discharge and urban runoff pollution prevention requirements.

Vice Mayor Risch inquired if the application is not complete by October 15, would the deregulation apply. Ms. Gervin responded it would apply with certain exceptions relative to projects to transit malls. She clarified that if an application is received after October 15, the new regulations would apply. Marvin Rose, Director of Public Works, added this is a uniform requirement for all 15 agencies in the county and staff is working to make certain that Sunnyvale does not have more stringent requirements than other areas.

Mayor Miller opened the Public Hearing at 10:11 p.m. and, there being no public comments, closed the Public Hearing.

Councilmember Vorreiter moved, and Vice Mayor Risch seconded, to introduce an Ordinance adding Chapter 12.60 to the Sunnyvale Municipal Code to provide regulations and the necessary authority to implement certain requirements of the National Pollutant Discharge Elimination Systems (NPDES) permit issued to the City of Sunnyvale by Region 2 of the California Regional Water Quality Control Board regarding storm water discharge and urban runoff pollution prevention requirements. The motion carried unanimously.

ORDINANCE NO. 2732-03 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SUNNYVALE ADDING A NEW CHAPTER TO THE SUNNYVALE MUNICIPAL CODE, CHAPTER 12.60, ENTITLED "STORM WATER MANAGEMENT"

Mayor opened the Public Hearing at 10:13 p.m. and, there being no public comments, closed the Public Hearing.

No action was taken.

No action was taken.

Paul Reed, a member of the public, asked that the Council put "Citizens to be Heard" at the beginning of the meeting.

Mayor Miller directed staff to agendize a discussion to place "Citizens to be Heard" at the beginning of the Council meeting.

Connie Cook Turner, spoke in support of putting "Citizens to be Heard" at the beginning of the meeting.

There were no comments.

There were no comments.

Mayor Miller declared the regular meeting adjourned to the Redevelopment Agency Meeting at 10:25 p.m.

After adjourning the meeting of the Redevelopment Agency, Mayor Miller declared the regular meeting of the City Council adjourned at 10:40 p.m.

Respectfully submitted,
Cathleen McKay, Interim City Clerk