REPORT TO PLANNING COMMISSION
SUBJECT
Title
Review Planning Program Budget and Fees for FY 2024-2025
Report
REPORT IN BRIEF
Boards and Commissions are asked to provide comments to the City Council on the recommended City budget where it could affect the Commission’s work. Staff recommends that the Commission review the following sections of the FY 2024-2025 Recommended Budget (see link in Attachment 1):
• City Manager’s Memorandum, pages 9-17
• Budget Summary Highlights, pages 21-33
• Community Development Department (CDD) Budget Summary, pages 301-319
ENVIRONMENTAL REVIEW
The recommendation of the Planning Commission on the budget is not subject to environmental review because it is a fiscal or administrative activity that will not result in direct or indirect changes to the physical environment (CEQA Guidelines Section 15378(b)(4), (5)).
DISCUSSION
Sunnyvale’s budget process alternates each year between the operating budget and the capital budget. This year is focused on the operating budget. While the previous operating budget in FY 2022-2023 was reflective of uncertainty around the Covid 19 pandemic and shelter in place order, the current operating budget reflects a current and long-term stable outlook. The General Fund is projected to be balanced at both ten and twenty years.
Budget Summary Highlights
The recommended budget includes the restoration of services that were impacted in the last two years. For example, an additional 25.5 full-time equivalent (FTE) employees have been funded in the budget in various departments to bring increase service levels Community Development added a new Housing Specialist to the Housing Division and the Planning Division has been able to fill three FTEs. The recommended budget for all funds totals $731 million, up $122.7 million from FY 2023-2024. With a $26.8 million increase in the operating budget from $335.2 million to $362 million.
CDD Budget Summary
CDD is organized into four programs: Building/Safety; Planning; Housing/Community Development Block Grant (CDBG); and Department Management. The Planning Program mostly affects the Planning Commission’s work.
The Planning Program oversees policy planning and current planning, with the aim of improving the quality of life in the City through comprehensive and effective policy planning. Program activities include preparing and administering the City’s General Plan, specific plans and other land use policy documents, reviewing and processing development applications for planning permits, conducting research on Council-adopted study issues, reviewing proposed legislation affecting the City’s zoning authority, monitoring community conditions and conducting community outreach. In addition to the Planning Commission, staff provides support to the Heritage Preservation Commission.
The last fiscal year has been a very busy and productive time, with many large and complex projects moving forward, with more underway. The proposed budget includes a list of accomplishments and upcoming projects for the Department. The following are highlights:
• Updated two of Sunnyvale’s area plans:
- Moffett Park Specific Plan (MPSP): Implementation work is underway, and two applications (one office and one residential) have been submitted to date.
- Central Arques Specific Plan: The Central Arques Specific Plan would replace the 1999 Arques Specific Plan and accommodate Applied Materials’ master plan for their future campus expansion to nearby industrial parcels. Initial work is underway.
• Issues and other Long Range/Policy Items:
- Village Center Master Plan: Administrative draft of the plan is under review with outreach and public hearings to begin in late Summer 2024.
- Low Density Objective Design Standards: Draft document near completion with outreach and public hearings to start Summer 2024.
- Technological Innovation Heritage Resources: A consultant has been selected and work is anticipated to start in Summer 2024 with completion in Winter 2025 (Study Issue CDD 19-05 / Project 836530).
• General Plan (Housing Element HE, and Land Use and Transportation Element LUTE) and Zoning Code Updates:
- Accessory Dwelling Unit (ADU) Ordinance: Work on updating the Ordinance has begun, which also includes additional measures to promote ADUs and develop a “Toolkit” (HE 4).
- Plan Review Permit: Initial work on this new permit type began in 2023 with outreach and public hearings to start in late Fall 2024 (HE 20).
- Rezoning of Industrial to Residential (ITR) Sites: This would include Rezoning of our ITR parcels that have a General Plan Land Use Designation of Residential but are still Zoned Industrial (HE 45 / LUTE LT-14.5).
- Increase the Inclusionary Housing Requirement to 20%: Santa Clara County Planning Collaborative is leading this effort. The Collaborative plans to award a contract in March 2024 and begin work immediately.
- General Plan and Rezoning for 26 Legal Non-Conforming Single-and Two-Family Dwellings: Work to begin late 2025 (Study Issue CDD 23-02).
- Retooling of the Zoning Code.
• Other General Plan and Housing Element Programs to be Completed:
- Review the Open Space Requirements: Revaluate the land dedication and land valuation requirements for the Park Impact Fee (HE 18).
- Review Development Fees (HE 44).
- Evaluate the Commercial Square Footage Requirement in the ECRSP: Study possible reduction in the commercial square footage requirement to help facilitate affordable housing (HE 17).
- Zoning Code Amendments for Supportive and Transitional Housing: Revise the Zoning code to include additional provisions for supportive, transitional and emergency shelters (HE 23).
- Zoning Incentives for Project Elements: Develop zoning incentives for projects that incorporate special architectural and pedestrian design features, such as landscaped courtyards or plazas (LUTE LT-4.3b).
- Underground Parking Garage Depths: Develop Zoning Code Standards for minimum depths to avoid at grade parking (LUTE LT-CC-3.1d).
- Community Garden Provisions: Develop Zoning Code Standards for community gardens and urban farms as permitted uses (LUTE LT-8.1a).
- Missing Middle Product Types: Establish regulatory modifications as indicated in the HE to encourage missing middle product types in Zoning Districts like R-1.5 and R-1.7; consider incentives for missing middle housing types (HE 21).
- Residential Parking Standards: Study options for revised residential parking standards were brought for initial consideration in early 2024. The Study is anticipated to begin Summer 2024 with completion early 2025.
• Significant Approved Planning Entitlements:
- 225 units at 1150-1170 Kifer Road (LSAP), approved by Planning Commission on October 9, 2023; the item was appealed; City Council upheld the Planning Commission decision on December 5, 2023.
- 29 units at 1202 Kifer Road (LSAP), approved by the Planning Commission on October 23, 2023.
- 114 units and approximately 35,400 square feet of medical office at 877 W Fremont Ave (Village Center 1), approved by Planning Commission on August 14, 2023.
- 172 units and 142,270 square feet of office space at 1154 Sonora Court and 105 units with 77,249 square feet of office space at 1170 Sonora Court (LSAP) and a Development Agreement were approved by the City Council on November 28, 2023.
- 18 condo units at 148 and 156 Crescent Avenue approved by City Council (on appeal) on August 29, 2023.
- 8 townhomes at 444 Old San Francisco Road approved by the Planning Commission on August 28, 2023.
• A dozen Significant Planning Entitlements are underway.
Permit activity continues to increase steadily in areas with adopted Specific Plans. Infill projects within the El Camino Real Specific Plan area are currently under review including the former Orchard Supply Hardware site, former used Toyota site at Grape Avenue and El Camino Real, a Sutter Health project with convalescent care and senior housing, Hacienda Shopping Center addition of residential, Bell Shopping Center conversion to residential and the Cala Center with a new commercial pad. In addition, industrial development continues to request entitlements with the development of the Central Arques Specific Plan and other development within our industrial zones. Redevelopment interest, that implements the new plan, is continuing in Moffett Park. Mixed-Use and residential projects continue to become more complex with changing State laws.
PUBLIC HEARING
The Planning Commission has the option to make comments on the budget or to make a motion on the budget. The Planning Commission discussion (and motion, if there is one) will be provided to the City Council for the public hearing on the recommended budget on June 4, 2024, with adoption scheduled for June 18, 2024.
PUBLIC CONTACT
Public contact was made through posting of the Planning Commission agenda on the City’s official notice bulletin board and the agenda and staff report on the City’s website.
RECOMMENDATION
Recommendation
Provide comments to the City Council or make a formal recommendation to the City Council on the Recommended FY 2024-2025 budget for the Planning Program.
Staff
Prepared by: Shaunn Mendrin, Planning Officer
ATTACHMENTS
1. Link to FY 2024-2025 Recommended Budget Volume 1 - Summary and Operating Budget
2. Link to FY 2024-2025 Recommended Budget Volume 2 - Projects Budget