December 20, 2005

SUBJECT:	2005-0383 – Grace ADHC [Applicant] Dollinger-Arques Assoc. [Owner]: Appeal of an application located at 1197 East Arques Avenue (near Lawrence Expressway) in an M-S (Industrial & Service) Zoning District.
Motion	Use Permit on a 1.4-acre site to allow an increase in capacity of an existing adult day health care facility from 90 to 200 people at one time.

REPORT IN BRIEF

Existing Site Conditions	Medical Office Building/ Adult Day Health Care facility
Surrounding Land Uses
North	Commercial Building (retail sales)
South	Research and Development, Office/ Gas Station
East	Health club (24-Hour Fitness)
West	New self-storage facility
Issues	Parking and appropriateness of expanded use
Environmental Status	Negative Declaration has been prepared in compliance with California Environmental Quality Act provisions and City Guidelines.
Planning Commission Action	Approval with conditions including a 3-year limit for Use Permit approval
Staff Recommendation	Deny the appeal and uphold the Planning Commission’s decision to approve the Use Permit with a 3-year limit.

 Click here for map. (.pdf)

Revised 04-12-2004

 PROJECT DATA TABLE

 

 

Description of Proposed Project

 

Grace Adult Day Health Care is an existing adult day health care (ADHC) center in the M-S Industrial Zone. The proposed use is located in an existing building of 21,276 square feet, and is comprised of three separate tenant spaces. The ADHC uses the 13,323 square foot tenant space to the rear of the building along Lawrence Expressway.

 

Grace ADHC was approved by the Planning Commission in July 2003 and was approved for a maximum of 90 participants at any one time. This number was based on the applicant’s projected maximum operational needs in 2003. Since that time, the business’s demand has exceeded the maximum of 90 people at one time. The applicant is now requesting a maximum of up to 200 participants at one time.

 

Adult day health care centers are California State regulated businesses that provide a full range of health care, rehabilitative, social, psychological, and related support services for the elderly population. Participants spend time with people of similar age and background and participate in therapeutic recreational and social activities that encourage healthy lifestyles.

 

All ADHC businesses are required to receive a license from the State that is reviewed on a yearly basis. As part of Grace’s state license, they are required to provide door-to-door transportation for participants who cannot walk to the site or cannot be driven by a relative. A detailed description of this transportation and the required parking is provided in Parking and Circulation section.

 

The applicant states that ADHC businesses are in demand due primarily to the general trend of an aging population and due secondarily to the rise in popularity of these types of programs for seniors. In Santa Clara County, the applicant states there currently are over 35,000 qualified people age 65+ residing in the County with only four other existing ADHC centers to serve them. These four centers can hold a collective maximum of approximately 400 adults.

 

Background

 

Previous Actions on the Site: The following table summarizes previous planning applications related to the subject site.

 

File Number	Brief Description	Hearing/Decision	Date
2003-0402	Original approval of Grace ADHC allowing up to 90 participants at any one time.	Planning Commission - Approval	July 14, 2003

 

Planning Commission Hearing: On September 12, 2005, the application was considered by the Planning Commission. The Commission discussed the parking requirements for this type of business and its location in the Industrial Zone. After presentations by staff and the applicant, the Planning Commission approved the Use Permit with two added conditions of approval. The first condition requires at least 95% of the participants must use the transportation services provided by the ADHC provider. The second states the use is specifically approved for adult day health care only, not a similar or related recreational/medical use. These conditions of approval have been incorporated into the Recommended Conditions of Approval in Attachment B. The minutes of this meeting can be reviewed in Attachment F. On September 23, 2005 the applicant filed an appeal of the Planning Commission’s decision. Specifically, the applicant is appealing the condition of approval that states the Use Permit for the additional participants is valid for only three years.

 

Environmental Review

 

A Negative Declaration has been prepared in compliance with the California Environmental Quality Act provisions and City Guidelines. An initial study has determined that the proposed project would not create any significant environmental impacts (see Attachment C, Negative Declaration).

 

Use Permit

 

The center currently has a maximum of 90 participants at one time, and is open from 9:00am to 3:00pm, Monday through Friday. The average participant stay is about four hours, so initially there were two shifts of 45 participants which will overlapped during the day. The enrollment has now reached its maximum number of participants and the applicant is proposing up to 200 participants at any one time. The applicant states that there would not be more than 90 participants per shift, but the two shifts would overlap during the noon time. The first shift takes place from 9:00am to 1:00pm and the second shift occurs from 12:00pm to 4:00pm. This one hour overlap is due to drop-off and pick-up operations which take approximately one hour to complete. The maximum number of employees was 15 and it is proposed to be increased to 30.

 

Grace Adult Day Health Care serves primarily adults 65+ in age and who receive Medi-Cal benefits. This center is intended for functioning adults to prevent the risk of deterioration of their physical or mental health. Individuals attending the center are eligible:

 

1. If they have a medical condition that requires treatment or rehabilitative services prescribed by a physician, and
2. A physical and/or mental impairment that handicap activities of daily living, but not so serious as to require 24-hour institutional care, and
3. A reasonable expectation that preventive services will maintain or improve the present level of functioning, and
4. A high chance of further deterioration and probable institutionalization if ADHC services were not available.

 

Site Layout: Grace ADHC currently occupies a 13,323 square foot tenant space in the rear area of the existing building. The interior of the space is comprised mainly of offices and open floor area. The offices are used for the physical therapy areas and general office activities. The open floor areas are used for dining and general activity areas. There is an existing kitchen area used during lunch time. All food service is provided by an outside catering service and the kitchen area is used as a service and cleaning area. 

 

The applicant is not proposing any major physical improvements to the interior of the space. The restrooms have already been upgraded to meet current accessibility standards and the tenant space has been upgraded to meet current fire safety standards. The existing floor area is large enough to accommodate the additional numbers of people since the area is currently not at maximum occupancy.

 

Landscaping: Current landscaping on site consists of multiple lawn areas throughout the site and several substantial trees. The 12,000 square feet of landscaping equals 20% of the total site, where 20% is required by City code. No trees are proposed for removal.

 

Parking/Circulation: There are currently 79 parking spaces on site, of which four are accessible spaces and 15 are compact. As part of the ADHC State license requirements, door-to-door transportation must be provided for all participants on a daily basis. The vans vary in size from 10 to 28 passengers, and the number of vans increases as the number of the participants grows. The vans are not parked at the Grace center during the day and are not stored at the center overnight. There are approximately four vans needed to serve 90 participants.

 

The Planning Commission approved the 2003 Use Permit based on the belief that the actual number of participants who drive themselves to the site will be very low. This belief was based on information provided by the applicant and through a survey by City staff of several other ADHC centers in the area. Most of the participants at Grace ADHC have some type of physical ailment that precludes them from driving themselves to the site. The survey found that those participants capable of driving still choose to use the free door-to-door transportation for the sake of ease and accessibility. Participants also have the option of using the VTA’s Outreach Transit services.

 

During numerous site visits by staff, it was found that almost all Grace ADHC participants were using the free shuttle service. Staff noted no traffic or circulation problems at this site and also noted a number of vacant parking spaces in the parking lot. Staff believes the Planning Commission’s findings regarding the number of parking spaces required for this use was correct.

 

At the time the applicant submitted the proposal to increase the number of participants in 2005 staff determined that a Traffic and Parking Study should be prepared by a licensed traffic engineer to ensure an accurate assessment of Grace ADHC’s parking needs. The applicant completed this study, which surveyed the parking and traffic generated at the site and contacted four other ADHC businesses in the area concerning the number of participants who drive on a daily basis. The study found that the hours of operation (9:00am to 4:00pm) were outside of the peak traffic hours, so the increase in participants would not affect traffic volume of flow in the area. The study noted that no participants drove themselves to the ADHC and that all participants utilized the free transportation. The study also noted that only ADHC employees drive themselves to the site and therefore, only employee parking is required for this use. Finally, the study found there was an average of one to two visitors to the center daily, who stayed for an average of 15 minutes. It concludes by stating there is sufficient parking available to accommodate the proposed expanded use of 200 participants.

 

Staff believes that the City’s current parking standards do not directly address the proposed use’s projected parking requirements and concurs with the findings of the Traffic Study. The following parking ratios were used to approve the previous Use Permit and staff concludes should be used again in the review of this Use Permit application:

 

Site Parking Analysis
Type of Use	Square Footage	Parking Ratio	Number of Projected Spaces
Grace ADHC	13,323 s.f.	1 space/employee – 30 employees	30 spaces
US Health/Dr. King	7,953 s.f.	1 space/ 200 s.f.  minimum	40 spaces
Total	21,267 s.f.		70 max.

 

Staff has included several conditions of approval to address the unusual parking requirements for an ADHC. Among them, 40 of the 74 parking spaces available on site are to be made available for the existing medical office uses. Grace ADHC will require 30 spaces for employees. 30 employees is the maximum number of employees who will be on-site at any one time. The remaining four spaces would be available as Grace ADHC’s visitor parking spaces. If Grace ADHC requires more than these four spaces, then a modification to the Use Permit would be required.

 

Compliance with Development Standards/Guidelines: The proposed project complies with current development standards with the exception of required parking, as previously discussed. No further improvements are required at this time.

 

Expected Impact on the Surroundings: As conditioned, there are no expected impacts to the adjoining tenants in the existing building or to the surrounding area. The existing 21,276 square foot building is comprised of three separate tenant spaces and three separate businesses. The first space fronts along East Arques Avenue. This space is occupied by US Health Work Medical Group, which is a physical therapy rehabilitation center. US Heath sublets a portion of its space to Dr. King, a sports medicine specialist. No hazardous materials are used at the site.

 

The use of industrial land for non-industrial uses has become a significant issue. This site would not be converted from industrial to a non-industrial use since the ADHC and medical uses already exist on the site, but it would be intensified if the increase in participants is allowed. This type of intensification typically equates to the use being a longer term business.

 

In general, staff does not support the conversion of industrial areas, but may support a land use change in cases where the project has been determined to be a benefit to the City and has been found to be compatible with the surrounding area. The surrounding uses on adjacent parcels are retail, restaurant, or other commercial type uses, but not typical Industrial uses. Although the subject parcel and surrounding areas are zoned M-S (Industrial and Service), non-Industrial uses have been allowed on a majority of Lawrence Expressway in the past. There is also a church and a childcare facility on nearby parcels which are in the M-S Zone.

 

Based on the above discussions of the advantages and disadvantages of the project, staff believes the proposed Use Permit is acceptable. Staff is recommending that the expansion in use be valid for a period of three years. This will allow staff the opportunity to reevaluate the appropriateness of the use after related studies on non-industrial uses in industrial areas are completed.

 

Appeal: The applicant is appealing only the condition of approval that states the Use Permit is valid for only three years. The applicant’s justification is detailed in the letter in Attachment D. The following information is a summary of the letter of appeal:

 

1. Grace ADHC is located in a 21,276 square feet building on Lawrence Express Way. It shares this building with two other medical health care providers, so all three businesses are similar medical uses.

 

2. Grace is the only ADHC in Sunnyvale and is growing rapidly. It would be extremely difficult to plan for expansion of the business for only the next three years. 

 

3. Grace ADHC is a licensed health program that provides a combination of medical, social and therapy services to adults who have difficulty functioning in their own homes. Potentially losing approval of the Use Permit in three years could result in closure of the center and a serious loss to Sunnyvale.

 

Staff Comments on Appeal: The decision whether or not to recommend approval of the proposed expanded use relates to the compatibility of the ADHC in the Industrial Zone, as discussed previously. Although various non-industrial uses exist within the M-S Zoning District, and specifically along East Arques Avenue, a non-industrial use could impact future surrounding uses or operations, due to sensitive receptors associated with ADHC uses. Sensitive receptors include young children, the infirmed, and the elderly.

 

Recently, many non-industrial uses, including religious assembly uses, have been proposed within the industrially zoned areas of the City. A current Council study issue by staff will evaluate appropriate locations and policies toward similar uses. The result of the study may enable further clarification of City policy or amendments to City ordinances and Zoning Districts related to places of assembly. This application was submitted and heard by the Planning Commission prior to the places of assembly moratorium.

 

Staff is recommending the Use Permit be restricted for three years, similar to conditions of approval places on three other recent permit approvals. This will allow staff the opportunity to reevaluate any possible negative impact to the industrial area after the related study on places of assembly has been completed. This restriction only applies to the approval of the expanded use. The previously approved Use Permit would not expire. The applicant may reapply for a new Use Permit six months prior to the expiration of the three year period.

 

Although the three year time limit could have financial implications to the applicant’s business in the future, there would be no change to the investment in the building. The tenant space has already been improved to accommodate the additional participants.

 

 

No fiscal impacts other than normal fees and taxes are expected.

 

 

Staff has not received any comments from the public regarding this project.

 

Notice of Negative Declaration and Public Hearing	Staff Report	Agenda
·         Published in the Sun newspaper ·         Posted on the site ·         18 notices mailed to the property owners and tenants within 300 ft. of the project site	·         Posted on the City of Sunnyvale's Website ·         Provided at the Reference Section of the City of Sunnyvale's Public Library	·         Posted on the City's official notice bulletin board ·         City of Sunnyvale's Website ·         Recorded for SunDial

 

Conclusion

 

Findings and General Plan Goals: Staff was able to make the required Findings based on the justifications for the Use Permit. Findings and General Plan Goals are located in Attachment A.

 

Conditions of Approval: Recommended Conditions of Approval are located in Attachment B.

 

 

1. Deny the appeal, which would approve the Use Permit with the condition of approval for the three year limitation on the expanded use, as recommended by the Planning Commission.
2.  Grant the appeal, which would approve the Use Permit and eliminate the three year limitation condition of approval.

 Recommendation

 

Alternative 1, deny the appeal and uphold the decision of the Planning Commission to approve the Use Permit with the attached conditions.

 

Reviewed by:
Trudi Ryan, Planning Officer

Prepared by: Steve Lynch, Project Planner

 

Reviewed by:

Robert Paternoster, Director, Community Development

 

Approved by:

Amy Chan, City Manager

 

Attachments:

A.     Recommended Findings (see below)

B.      Recommended Conditions of Approval (see below)

C.     Negative Declaration/Initial Study (.pdf)

D.     Letter of Appeal from the Applicant (.pdf)

E.      Site and Architectural Plans (.pdf)

F.      Planning Commission Minutes from September 12, 2005 meeting (.pdf)

 

ATTACHMENT A 

 

Goals and Policies that relate to this project are:

Land Use and Transportation Element

 

Policy C4.3  Consider the need of business as well as residents when making land use and transportation decisions.

Grace ADHC is not a commercial use that attracts a high volume of traffic and, therefore, the parking impact will be minimal. In addition, the business will operate during peak and off peak hours.

 

Policy N1.14 Support the provision of a full spectrum of public and quasi-public services that are appropriately located in residential, commercial, and industrial neighborhoods and ensure that they have a beneficial effects on the surrounding area.

Grace ADHC is a unique and desirable use for the City that provides a service to the elderly population that cannot be provided by any other similar business. In addition, the project is appropriately located in a zone where the business will be compatible with the surrounding uses. There is only a limited number of parcels/building where Grace ADHC could be appropriately located in Sunnyvale and the subject site is one such parcel.

Socio-Economic Element

 

Goal 5.1G/Policy 5.1G1  Enhance the provision of health care and social services to Sunnyvale residents by providing opportunities for the private marketplace to meet the health and social service needs of the City residents.

Grace ADHC provides health care need for the senior population in Sunnyvale, which is currently an under met need for the residents. In addition, Grace ADHC is a private business health provider that meets the needs not provided for by public services.

 

Policy 5.1H.10  Encourage the provision of residential health care services for seniors by the private sector.

The existing ADHC provides private sector health care services to the senior population of Sunnyvale.

  

1. The proposed use attains the objectives and purposes of the General Plan of the City of Sunnyvale as the project as outlined in the above statements.

 

2. The proposed use is desirable, and will not be materially detrimental to the public welfare or injurious to the property, improvements or uses within the immediate vicinity and within the Zoning District, in that the project is compatible with the existing uses in the same building. The two other uses are medical office uses, similar to the existing and proposed use. The project is also compatible with the existing uses in the surrounding area, which contains uses that are not traditionally found in the M-S Zone. The project will not nega