REPORT TO PLANNING COMMISSION
SUBJECT
Title
Proposed Project: Forward Recommendations to the City Council related to applications on a 0.77-acre site at Carlisle Way:
USE PERMIT: To allow construction of a replacement groundwater extraction well, a 17-foot-tall water storage tank, chemical storage cabinets, and associated utility and right-of-way improvements; and
EIR: Adopt a Resolution to certify the Environmental Impact Report, make required findings under CEQA, and adopt a Statement of Overriding Considerations and Mitigation Monitoring and Reporting Program.
Location: 800 Carlisle Way (APN: 309-12-013)
File: 2022-7041
Zoning: R-0/S (Low Density Residential/Single-Story combining district)
Applicant and Owner: California Water Service (Cal Water)
Environmental Review: Environmental Impact Report
Project Planner: Mary Jeyaprakash, (408) 730-7449, mjeyaprakash@sunnyvale.ca.gov
Report
REPORT IN BRIEF
General Plan: Low Density Residential (RLO)
Existing Site Conditions: Former Cal Water groundwater extraction site containing two chemical storage cabinets, a pump station and an abandoned groundwater well.
Surrounding Land Uses
North: Single-family residential across Carlisle Way
South: Single-family residential
East: Single-family residential
West: Panama Park
Issues: Significant and unavoidable environmental impact (construction noise), neighborhood compatibility, construction impacts, and safety management.
Staff Recommendation: Forward recommendations to the City Council to Adopt a Resolution to Certify the Environmental Impact Report, Make the Findings required by the California Environmental Quality Act, and Adopt the Statement of Overriding Consideration and Mitigation Monitoring Report Program in Attachment 6; and Make the Recommended Findings in Attachment 4 and Approve the Use Permit subject to Recommended Conditions of Approval in Attachment 5.
The City Council is scheduled to consider this item on April 7, 2026.
BACKGROUND
Description of Proposed Project
The project site is 0.77 acres in size and was formerly used for groundwater extraction by the applicant, California Water Service (Cal Water). The proposed project consists of demolishing the existing chemical storage cabinets and associated amenities and constructing the following:
• 1,000-foot deep groundwater well;
• 56,000-gallon storage tank at 17 feet in height;
• three chemical storage cabinets;
• removal and replacement of private trees; and
• utility and right-of-way improvements.
A Use Permit (UP) is required for projects involving public utility buildings and service facilities in R-0 residential zoning district per SMC Section 19.18.030. An Environmental Impact Report (EIR) has been prepared due to the project’s potentially significant effects on the environment.
A Variance was initially requested to exceed the maximum height of 17 feet per SMC Section 19.26.200(f)(1). However, following circulation of the Draft EIR, the height was reduced to meet the height limit, and a Variance is no longer required.
See Attachment 2 for a Noticing and Vicinity map and Attachment 3 for the Data Table of the project.
Previous Actions on the Site
The land use designation and zoning of the project site is Low Density Residential with Single-Story combining district (R-0/S). Since 1955, the site was used for groundwater extraction by Cal Water to provide potable water to their Los Altos Suburban service district, serving the City of Los Altos and portions of Cupertino, Los Altos Hills, Mountain View, and Sunnyvale. In 2016, the use was discontinued when the water well was decommissioned, and the water tank was removed. The site also included wireless communication towers with multiple carriers through separate Planning applications. These towers were removed by the carriers in 2025. There are no active code enforcement complaints for the project site.
See below for a list of related development Planning Applications:
• 1955 - To install, operate, and maintain water service system;
• 1999-0685 and 0687 - To install chemical cabinets;
• 2001-0319 and 0320 - To install additional mechanical equipment;
• 2011-3098 - To install replacement chain-link fence along north and west and new wooden fence along east and south;
• 2016-7467 - To rezone 54 contiguous single-family lots, including the subject site, from Low Density Residential (R-0) to Low Density Residential with a Single-Story combining district (R-0/S) for the purposes of limiting height to 17 feet.
EXISTING POLICY
General Plan Goals and Policies: Key goals and policies of the General Plan that pertain to the proposed project are listed below. See Recommended Findings in Attachment 4 for a complete list of goals and policies that relate to the project.
• Community Vision: Goal XII. Supportive Utilities: To provide and maintain water, sewer, solid waste disposal, and drainage facilities that are safe, efficient, and reliable, and which can develop sufficient capacity to meet the expected growth of the city.
• Environmental Management: Goal EM-1 - Adequate Water Supplies
Acquire and manage water supplies so that existing and future reasonable demands for water, as projected in the 20-year forecast, are reliably met.
o Action Statement EM-1.1a - Investigate possibilities to increase well water sources within the City.
Applicable Design Guidelines: The City has a collection of Design Guidelines that provide recommendations for site design, landscaping, and accessory structures. Key guidelines that pertain to the proposed project are listed below. A complete list of applicable guidelines that pertain to the proposed project are also in Attachment 4.
• Site Design: SD-1.1. Design projects to be compatible with their surrounding development in intensity, setbacks, building forms, material, color, and landscaping unless there are specific planning goals to change the character of an area.
• Site Design: SD-2.3. Locate noise and odor generating functions so that they do not create a nuisance for the adjacent properties.
ENVIRONMENTAL REVIEW
Purpose
The California Environmental Quality Act (CEQA) requires that all state and local government agencies consider the environmental consequences of projects for which they have discretionary authority. An Initial Study determined that a Noise-Focused Environmental Impact Report (EIR) is required to identify measures to minimize, reduce, or avoid construction noise impacts. The EIR was prepared by David J. Powers, an environmental consultant managed by the City, in compliance with CEQA. The EIR is an informational document that describes the significant environmental impacts of the project, analyses reasonable alternatives, and identifies possible ways to mitigate the impacts. The purpose of this review is to determine if the analysis in the EIR is adequate. It is not the purpose of the EIR to recommend either approval or denial of the project.
The EIR analysis is comprised of the Draft EIR (DEIR) document with technical appendices (Attachment 10) and the Final EIR (FEIR) document with public comments and responses (Attachment 11). A copy of these documents can be found on the project webpage at <https://www.sunnyvale.ca.gov/business-and-development/projects-in-sunnyvale/development-projects/carlisle-well-and-water-tank>.
Milestones
The EIR process began in late 2022 with the release of the Notice of Preparation (NOP) on February 3, 2023. A public scoping meeting was held on February 16, 2023, to gather input from public and other agencies on issues to be addressed in the EIR. Following the release of NOP and scoping meeting, the project was modified to increase the height of the proposed water tank from 12 feet to 24 feet, seeking a Variance permit. The NOP was recirculated to disclose this modification and see Attachment 10 for Public Comments Received Before Preparation of DEIR).
Subsequently, the DEIR was released for public review for 45 days from May 15 to June 30, 2025, and a Planning Commission public hearing was held on June 23, 2025, to receive comments on the EIR adequacy. In addition to the oral comments received at the public hearing, staff also received letters from members of the public, Santa Clara Valley Water District, and state agencies. Based on input from the Planning Commission and the public, Cal Water made modifications to the project to address community concerns. These modifications include relocating the emergency diesel generator further away from residential property lines and reducing the height of the water tank to 17 feet, which addressed concerns from the public. The EIR analysis was updated to reflect the modified project.
Construction Noise (Nighttime Drilling)
A significant and unavoidable impact is one that cannot be reduced to a less-than-significant level if the project is implemented as proposed. The EIR identified construction noise impact during nighttime drilling activities as significant and unavoidable.
As proposed, the project would involve construction of a groundwater well extending approximately 1,000 feet below ground surface. Well construction would include up to 27 total days of 24-hour drilling, including drilling outside permitted construction hours. Drilling will occur in two phases. The first phase would last up to 12 days to create the initial hole in the ground, known as a pilot hole. A two-week pause would then occur. The second phase would involve an additional 15 days of completing the well and installing the casing. According to Cal Water, continuous drilling is needed to prevent borehole collapse and equipment damage.
A noise study was conducted, which found that two adjacent residential properties will experience nighttime noise levels that exceed the 50 dB noise limit during drilling activities (see Attachment 9 for Noise Assessment and Peer Review):
Drilling Noise
Key mitigation measures to address construction noise impacts include but are not limited to continuous noise monitoring and installation of 8 to 32 feet tall acoustic barriers during drilling activities. Per the conditions of approval Hotel vouchers will also be offered to the two households that will experience drilling noise beyond noise limits. Cal Water is responsible for carrying out the mitigation measures, while the City is responsible for oversight and ensuring compliance.
These mitigation measures are incorporated into the Mitigation Monitoring and Reporting Program (MMRP), which identifies responsibilities, monitoring schedules, and oversight, to ensure compliance. They are also included in the Recommended Conditions of Approval, which specify the applicability and timing of required compliance (see Attachment 5 for Recommended Conditions of Approval).
Significant and Mitigable Impacts
The EIR identified that the following impacts can be reduced to a less-than-significant level, with implementation of the mitigation measures:
• Air Quality, Energy, Greenhouse Gas Emissions: The construction will incorporate measures to control dust and exhaust emissions, including regular watering of exposed surfaces, proper covering of materials, and timely maintenance of machinery. In addition, construction equipment with low exhaust emissions and high energy-efficiency ratings will be used.
• Biological Resources: Construction will occur outside the nesting season, and qualified ornithologists will conduct pre-construction surveys, establish buffer zones, and submit required reports, to avoid interfering with or modifying the habitat of special-status species.
• Cultural Resources: Qualified archaeologists will protect archaeological resources by training construction personnel and monitoring subsurface work. If archaeological features or human remains are discovered, ground-disturbing activities will cease immediately and required preservation, data recovery, and notification protocols will be implemented.
• Geology and Soils: If paleontological or geological features are discovered, construction will stop and a qualified paleontologist will be consulted to ensure their protection.
Other Key Issues
The following issues were raised by members of the public and Planning Commission during the EIR process and are addressed in detail in the FEIR. While some are outside the scope of CEQA and others require clarification or additional technical analysis, none were determined to result in additional significant impacts. The City retains discretion to consider these issues when evaluating the merits of the project.
• Water tank height, privacy, and visibility: Cal Water reduced the height to 17 feet, matching the former redwood tank removed in 2016 and conforming to the maximum height limit of the zoning district with a single-story overlay. The proposed tank would be screened by existing mature trees, with additional trees proposed along property boundaries to enhance privacy of adjacent homes and reduce visibility of the proposed tank. In addition, the final tank design will be reviewed by the City to ensure its design minimizes visual impacts and remains compatible with the character of the surrounding neighborhood (see Attachment 5 for Recommended Conditions of Approval - GC-9).
• Quality of life impacts: Several residents expressed concerns that continuous 24-hour drilling could affect the quality of life of nearby residents, such as potential physical and mental health effects due to sleep disruption, particularly for sensitive populations. According to Cal Water, continuous drilling is necessary to prevent borehole collapse and equipment damage. The City requires specific control measures through the Recommended Conditions of Approval to address impacts beyond those covered by the CEQA MMRP and standard construction-related Conditions of Approval. These measures include requiring notification of drilling schedule, provision of relocation vouchers to impacted households, and approval of site photometric plans to verify that construction and operational lighting will be shielded to prevent glare or illumination onto public streets and adjacent properties (see Attachment 5 for Recommended Conditions of Approval - GC-7; BP-9; and BP-10).
• Hazardous chemicals and safety management: Cal Water has indicated that the chemical storage cabinets would be individually locked, and public access to the site would be restricted by a locked gate. Chemicals used to disinfect water before distribution would be stored within double containment systems to minimize the risk of leaks, and Cal Water staff would conduct daily site inspections to ensure proper operation. In addition, the project will obtain a Hazardous Materials Storage Permit, which will ensure that first responders are aware of on-site chemicals in the event of an emergency. While water tank failure is highly unlikely to occur, any such event would trigger automatic notification to activate Cal Water’s emergency response team. In the event of a tank failure, any released water would be conveyed to on-site storm drains or to the storm drain system along Carlisle Way.
• Soil and groundwater stability due to drilling and extraction: A Geotechnical Feasibility Study (DEIR - Initial Study Appendix C) and Sustainable Groundwater Management Technical Memorandum (DEIR - Initial Study Appendix D) evaluated these impacts. These studies concluded that the project construction and operation will not result in land movement, liquefaction, or other ground instability issues (see Attachment 12 for FEIR).
Staff Comments on EIR:
Staff determined that the EIR (comprised of the circulated Draft EIR and the Final EIR including public comments, responses to comments, the list of commenting individuals and agencies, and text changes), meets CEQA requirements for both content and format. Although the project would result in a significant and unavoidable impact, the City may approve the project if, after balancing the project’s benefits against the unavoidable environmental risks, the City determines the benefits outweigh the unavoidable adverse effects and identifies the reasons for its determination, supported by substantial evidence in the record. (CEQA Guidelines Section 15093.) Staff recommends that the Planning Commission and City Council find that the project is necessary to protect public health and safety by ensuring a reliable potable water supply, and that its benefits outweigh the unavoidable construction noise impacts. With additional the Recommended Conditions of Approval, such as hotel vouchers, and staff review of the final water tank design and a photometric study, neighborhood impacts are further reduced. Accordingly, a proposed Statement of Overriding Considerations is included in the Resolution in Attachment 6. Certification of the EIR confirms that the decision-making body has determined it is an adequate environmental document that meets the requirements of CEQA; however, a separate action is required to approve or deny the Use Permit application.
DISCUSSION
Present Site Conditions
The project site is located on the southeast corner of Lillian Avenue and Carlisle Way.
The site is surrounded by Panama Park to the west, Carlisle Way to the north, and single-family homes to the south and east. Access to the site is through a paved driveway on Carlisle Way, leading to a locked gate. The property is secured with an approximately 6-foot-tall chain link fence along the north and west sides and 8-foot-tall wooden fence along the south and east boundaries. The site includes 38 mature trees, 15 of which are protected under the City’s tree protection ordinance.
In addition to landscaping and paved areas, the existing site includes two 8-foot-tall chemical storage cabinets, a 6 -foot-tall pump station, the abandoned groundwater well, and associated piping. Previously, the site also had a 17-foot-tall, 50,000-gallon water storage tank at the center of the site. In 2016, the groundwater well was decommissioned, and the storage tank was removed.
Proposed Site Layout
The project would remove the existing chemical storage cabinets and electrical control panel and construct a new groundwater well, water storage tank, chemical storage cabinets, an emergency generator, and related utility and right-of-way improvements. Existing perimeter fencing will be maintained (see Attachment 8 for Site and Architectural Plans):
Proposed Site Layout:
• Groundwater Well: The well is proposed in the southwest portion of the site and will extend approximately 800 to 1,000 feet below ground surface. The proposed well location was chosen to comply with regulatory and industry setback requirements from the existing well, nearby sewer lines, and property lines, while minimizing impacts to surrounding properties. The well will be set back approximately 51 feet from the south (residential) and west (Panama Park) property lines.
• Water Storage Tank: A new steel water storage tank will be constructed at the center of the site, on the former well’s footprint, screened by existing surrounding trees. The tank would be approximately 28 feet in diameter, 17 feet tall, with a capacity of about 56,000 gallons. The tank will be set back approximately 106 feet from the east and 59 feet from the south residential property lines.
• Chemical Storage Cabinets: The project would install three 11-foot-tall chemical storage cabinets on concrete pads in the northwest area of the site. These cabinets will store chemicals for disinfecting untreated water before distribution. All chemicals will be contained in double containment systems to minimize the risk of leaks. The cabinets will be set back approximately 28 feet from the front property line and 107 feet to 144 feet from the nearest adjoining residential property lines to the east and south.
• Emergency Generator: The project includes an approximately 9-foot-tall diesel-powered emergency generator in the northwest area of the site. The generator would operate only during power outages and for bi-weekly testing that occurs during daytime hours to ensure proper function in an emergency. The generator will be set back approximately 88 feet to 161 feet from the nearest adjoining residential property lines to the east and south.
• Pump Station: An approximately 11-foot-tall pump station will be installed in the northwest area of the site adjacent to the groundwater well. The pump station will pump groundwater from the well to the potable water distribution lines. It would include mechanical equipment such as stationary and portable booster pumps, pump motor, and electrical control panel. The pump station will be located approximately 114 feet to 178 feet from the nearest adjoining residential property lines to the east and south.
Development Standards
The project complies with applicable development standards in the Sunnyvale Municipal Code, such as, height, setback and tree preservation requirements. The Project Data Table in Attachment 3 summarizes the project’s compliance with the development standards.
Height
The Single-Story combining district allows a maximum building height of 17 feet. The proposed water storage tank meets this limit at 17 feet, and all other project components are well below the allowable height. The project is comparable in height to surrounding single-family residences.
Tree Preservation
An arborist report evaluated a total of 38 trees on the project site, including Eucalyptus, Cedar, Oak, Olive, Chinese Pistache, and Pepper species, of which 15 are protected pursuant to SMC Chapter 19.94. The project proposes removal of seven protected trees. Two of the protected trees for removal are diseased or dying, and the remaining five will be removed to accommodate construction of the new well and water storage tank. Six street trees along the project frontage will remain. The project would plant 14 replacement trees, consisting of Camphor, Toyon, and Pepper species, in accordance with the City’s Tree Replacement Standards (see Attachment 5 for Condition of Approval - BP-19).
Right-of-Way Improvements
The existing sidewalk and driveway access along Carlisle Way will be removed and replaced to comply with existing City standards. The project also includes a new water distribution line connecting to the existing on-site main and a storm drain lateral pipe connecting to the existing main on Carlisle Way within the public right-of-way. The project would install a new private manhole at the property line and a new manhole on Carlisle Way to provide maintenance access to the stormwater pipes.
Neighborhood Compatibility
The site has been historically used as a well site since the original Use Permit was granted in 1955. The proposed use of the site as a groundwater extraction facility is consistent with the City of Sunnyvale’s General Plan Land Use designation of the site as a “Water, Electric, Phone, Water Facility.” Adjacent uses consist of one-story single-family homes to the east and south, as well as to the north across Carlisle Way. The proposed water storage tank would be 17 feet tall, the same height as the previous redwood tank demolished in 2016. Also, the proposed height is consistent with the maximum height allowed for the zoning district, making it compatible in scale with surrounding single-family residences. Maintenance of existing trees and planting of additional trees helps to create a visual buffer for residents and further reduces visual impacts. Staff finds the project to be compatible with the scale and character of the surrounding neighborhood.
The site layout is designed following the Citywide Design Guidelines and to minimize impacts on adjacent residences. The well is sited to meet regulatory and industry standards while distancing it from neighboring homes to reduce construction noise. Similarly, the emergency generator and pump station are located in the northwest portion of the site to minimize operational noise exposure to nearby residences. Staff finds the project to be well-designed and respectful of adjacent homes and neighbors.
FISCAL IMPACT
The project would be subject to the standard demolition and construction related permit fees, the same as for any other development project. The project is not expected to have any negative fiscal impact to the City.
PUBLIC CONTACT
Neighborhood Outreach Meeting
Cal Water held a neighborhood outreach meeting on April 10, 2025. Property owners and residents within 1,000 feet of the site were notified. The meeting was held virtually and attended by eight neighbors and one City Councilmember. The questions focused on construction and operational noise, tank height and screening, diesel fueled generator, tree preservation, and well depth and drilling. During the meeting, residents requested a tour of a similar groundwater site in operation. On May 29, 2025, Cal Water held a facility tour of an active site at 1322 Warner Avenue. The tour was attended by 13 neighbors and one City Councilmember.
Planning Commission Study Session
A study session with the Planning Commission was held on May 27, 2025. As previously discussed in the EIR section of this report, comments were received regarding the tank’s visual impacts, safety, lighting and noise. In response to the comments, Cal Water lowered the tank to meet the zoning height limit of 17 feet and moved the generator away from nearby residences.
Notice of Public Hearing
Public contact was made by posting the Planning Commission meeting agenda on the City's official notice bulletin board at City Hall. In addition, the agenda and this report are available at the NOVA Workforce Services reception desk located on the first floor of City Hall at 456 W. Olive Avenue (during normal business hours), and on the City's website.
1,283 notices were sent to surrounding property owners and residents within 1,000 feet of the project site in addition to standard noticing practices, including advertisements in the Sunnyvale Sun Newspaper and on-site posting. Notices were also sent to the Raynor Park and Panama Park Neighborhood Associations and interested parties. Besides comments received as part of the EIR outreach, staff received no further correspondence from the neighbors.
ALTERNATIVES
Forward Recommendations to the City Council to take the following actions:
ENVIRONMENTAL IMPACT REPORT
1. Adopt a Resolution to Certify the EIR, Make the Findings required by CEQA, and Adopt the Statement of Overriding Considerations and Mitigation Monitoring and Reporting Program in Attachment 6.
2. Do not certify the EIR and direct staff as to where additional environmental analysis is required.
USE PERMIT
3. Make the Recommended Findings for the Use Permit in Attachment 4 and Approve the Use Permit subject to the Recommended Conditions of Approval in Attachment 5.
4. Make the Recommended Findings for the Use Permit; and Approve the Use Permit subject to Recommended Conditions of Approval in Attachment 5 with modifications.
5. Do not make the required Findings and direct staff where changes should be made.
STAFF RECOMMENDATION
Recommendation
Alternatives 1 and 3: Forward Recommendations to the City Council to take the following actions: 1. Adopt a Resolution to Certify the EIR, Make the Findings required by CEQA, and Adopt the Statement of Overriding Consideration and Mitigation Monitoring and Reporting Program; and 3. Make the Recommended Findings in Attachment 4 and Approve the Use Permit subject to the Recommended Conditions of Approval in Attachment 5.
JUSTIFICATION FOR RECOMMENDATION
The proposed project supports City of Sunnyvale’s General Plan water supply goals by reactivating the site for groundwater extraction to provide potable water to Sunnyvale and nearby communities. The project complies with all applicable development standards, including maximum allowed height and setbacks for the zoning district. Staff have worked closely with Cal Water to address community concerns and to make it a reasonably better project that is compatible with the neighborhood.
Staff finds the EIR to be adequate, complete, and in compliance with CEQA. The benefits of the project include improving water supply reliability at times of peak demands, potential disruptions, unexpected outages, drought, and other emergency conditions. Although continuous drilling outside permitted construction hours would result in a significant and unavoidable noise impact despite all feasible mitigation measures, the impact is justified by the project’s substantial public benefit of safeguarding public health and safety by providing reliable water supply.
Levine Act
LEVINE ACT
The Levine Act (Gov. Code Section 84308) prohibits city officials from participating in certain decisions regarding licenses, permits, and other entitlements for use if the official has received a campaign contribution of more than $500 from a party, participant, or agent of a party or participant in the previous 12 months. The Levine Act is intended to prevent financial influence on decisions that affect specific, identifiable persons or participants. For more information see the Fair Political Practices Commission website: www.fppc.ca.gov/learn/pay-to-play-limits-and-prohibitions.html
An “X” in the checklist below indicates that the action being considered falls under a Levine Act category or exemption:
SUBJECT TO THE LEVINE ACT
_X_ Land development entitlements
___ Other permit, license, or entitlement for use
___ Contract or franchise
EXEMPT FROM THE LEVINE ACT
___ Competitively bid contract*
___ Labor or personal employment contract
___ Contract under $50,000 or non-fiscal
___ Contract between public agencies
___ General policy and legislative actions
* "Competitively bid" means a contract that must be awarded to the lowest responsive and responsible bidder.
Staff
Prepared by: Mary Jeyaprakash, Senior Planner
Reviewed by: Noren Caliva-Lepe, Principal Planner
Reviewed by: Shaunn Mendrin, Planning Officer
Reviewed by: Connie Verceles, Deputy City Manager
Approved by: Tim Kirby, City Manager
ATTACHMENTS
1. Reserved for Report to Council
2. Noticing and Vicinity Map
3. Project Data Table
4. Recommended Findings
5. Recommended Conditions of Approval
6. Draft Resolution: Actions related to Certifying EIR, Statement of Overriding Considerations
7. Letter from Applicant
8. Site and Architectural Plans
9. Noise Assessment and Peer Review
10. Links to Draft Environmental Impact Report and Technical Studies
11. Link to Final Environmental Impact Report and Responses to Public Comments