SUBJECT: Applied Materials – Applications for related proposals for the 35.46 acre Arques campus for demolition and building additions for office, research and development facilities and support facilities and amenities such as parking garage, cafeteria, recreation center, conference center, and training rooms. The proposal is for an increase of 593,600 gross square feet for a total of 1,114,600 gross square feet. The property is located at 974 E. Arques Avenue in an M-S (Industrial and Service) Zoning District. (APN’s: 205-36-006, 007, 008) (Environmental Impact Report)

Resolution 1998-1196 – Adoption of the Arques Campus Specific Plan.

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

The Planning Commission considered the Final EIR and Specific Plan at a Special Meeting on June 7, 1999. The Planning Commission voted 5-1 to recommend approval.

In addition to the Arques Campus Specific Plan, there are two related proposals for this application:

1998-1197 – Certification of Final Environmental Impact Report for the Arques Campus Specific Plan.

1999-0667 – Approval of the Development Agreement between Applied Materials and the City of Sunnyvale (City Council Action).

Prior to consideration of the Arques Campus Specific Plan, the Planning Commission is required to take action on the certification of the Final Environmental Impact Report which includes responses to comments received during the public review period for the DEIR and the mitigation monitoring program. An accompanying report addresses the Final Environmental Impact Report.

The applicant has also proposed a development agreement between Applied Materials and the City of Sunnyvale. An accompanying report has also been prepared for the proposed 15-year development agreement between Applied Materials and the City of Sunnyvale regarding the "rights and obligations" of both parties regarding the implementation of the proposed Arques Campus Specific Plan. No action is required of the Planning Commission on the Development Agreement.

The City Council will consider the Development Agreement after taking action on the Final EIR and Arques Campus Specific Plan. Any action on the Development Agreement is separate and not required to implement the Arques Campus Specific Plan.

The staff recommended that the applicant submit a Specific Plan rather than a Use Permit application. A Specific Plan is appropriate on a larger site with staging of development over a more extended period than is typical. A Use Permit approval is for 2-years (with an option for extension). A Specific Plan guides comprehensive and unified site development.

Critical issues associated with this proposal are the proposed development intensity and the traffic and air quality impacts associated with the full build-out of the campus. These issues are discussed later in the report.

The question of the intensification in the industrial areas has been a priority Council Study Issue. In 1997, the adopted Land Use and Transportation Element identified consideration of higher FARs as an action item for further study. The two-phase study, concluded in May 1999, resulted in the adoption of specific project review criteria for analysis of projects greater than 35% FAR. The adopted criteria were used in the analysis of this project (Attachment 4).

A specific plan, as defined in the California Government Code, is a planning document that contains specific regulations, programs, and legislation to implement a jurisdiction’s adopted General Plan. The authority for cities to adopt Specific Plans is found in Section 95454 et. seq. of the California Government Code. The purpose of the Specific Plan is to enable cities or counties to plan portions of their jurisdictions as a means of implementing the General Plan. California law (Government Code Section 65455 and Section 66473.5) requires that public works projects, tentative maps, and zoning ordinances be consistent with adopted specific plans.

A specific plan is prepared, adopted and amended in the same manner as a general plan, except that a specific plan may be adopted by resolution or by ordinance and may be amended as often as deemed necessary by the legislative body. Specific plans are required to be consistent with the adopted general plan. This Specific Plan follows the guidelines for specific plans contained in State law. In accordance with Government Code 65450, a specific plan must include text and diagram(s) of at least the following information in detail:

• The distribution, location, extent and intensity of land use; including open space, within the area covered by the plan.
• The proposed distribution, location, extent and intensity of public and private transportation, sewage, water, drainage, solid waste disposal, energy and other essential facilities proposed to be located with the area covered by the plan and needed to support the land uses described in the plan.
• Standards and criteria by which development will proceed, and standards for the conservation, development and utilization of natural resources, where applicable.
• A program of implementation measures including regulations, programs, public works projects, and financing measures necessary to carry out the plan.

The Arques Campus Specific Plan contains the vision and program goals, site plan concepts, development standards, architectural and design guidelines, conceptual landscaping plan and additional infrastructure improvements that will be required during the implementation of the project. The proposed staging of the project is designed to maintain flexibility to respond to rapidly changing high technology market place and changing market conditions.

An Initial Study was prepared for the project, which determined that significant environmental impacts might result from the project development and required that an Environmental Impact Report be prepared. An Environmental Impact Report (EIR), prepared by EIP Associates (the City's consultant paid for by fees from the project proponent), has been prepared and was available for public review and comments. The EIR notes the type and degree of impacts anticipated. A review of the identified impacts and recommended mitigation measures is confined within the discussion of each issue in the next section of the report.

An accompanying report addresses the Certification of the Final EIR.

The project site, a 35.46 acre campus, is located at 974 E. Arques Avenue, one-quarter mile west of Lawrence Expressway and immediately north of Central Expressway. Regional access to the campus is from US 101, Highway 237, Highway 85, Central Expressway, I-280, and Lawrence Expressway. The campus is bounded by Arques Avenue to the north and Central Expressway to the south. The project site was originally developed for industrial use in 1967.

The campus is within an industrial neighborhood. It is surrounded by office, research and development, manufacturing, storage, and some retail uses. The parcel to the east of the site is occupied by Mitsubishi Corporate, and a large campus to the south across the Central Expressway is occupied by National Semiconductor (in the City of Santa Clara). To the north, across Arques Avenue, is Fry's Electronics retail store and a block further north is Advanced Micro Devises (AMD). Parcels to the west of the campus include a mixture of office, research and development buildings and warehouses.

The Specific Plan is intended to guide the development at the Applied Materials Arques Campus Plan. The Specific Plan includes retention and reuse of approximately 345,000 gross square feet of existing office/lab space together with the existing central utility facilities, service yard and electrical substation. The Specific Plan for the Arques Campus would accommodate an expansion of Applied Materials’ existing research and development operations by increasing the building floor area on site from about 521,000 gross square feet (gsf) to about 1,114,600 gsf.

The proposed development would include new space for offices, research, prototype labs, tool testing and demonstrations, a larger cafeteria, a larger recreation center, a conference center, and training rooms. It would involve demolishing all or part of at least two of the six existing buildings on site and constructing buildings three new office/prototype lab buildings, amenity spaces, and a parking garage. Landscaping and utility improvements are also proposed.

The existing garage and surface parking support a total of 2,025 parking spaces; the proposed expansion will include a second parking garage and surface parking to accommodate a total of 2,975 parking spaces. This campus expansion would increase the number of employees and visitors from over 1,500 employees and 150 visitors to approximately 2,800 employees and 280 visitors. A summary chart noting the existing and proposed development square footage is Attachment 5.

The permitted floor area ratio (FAR-the ratio of built, developed space to the total site area), would increase to 72% from the 35% FAR that zoning presently allows by right. Discussion of the FAR is within the Development Standards section of the Specific Plan (Chapter 4.0).

Some activities associated with the use of the site are accommodated by the recent construction of the Technology Center and parking structure. The transformation of the campus into a state-of-the-art facility is anticipated through campus and building improvements contained within the Specific Plan consists of two stages. Details regarding Stage 1 and Stage 2 are in the Implementation Chapter of the Specific Plan (Chapter 9.0) and Attachment 7.

The timing of the project implementation is flexible in order to accommodate the market uncertainties of the high technology industry. The proposed staging is an estimated development sequence, based on anticipated business needs; the actual development needs may vary.

The EIR notes that the completion of Stage I would increase the existing square footage by about 249,000 square feet. The phasing of development would be linked to specific mitigation measures, if necessary and appropriate. The list of required mitigations measures (identified in the Environmental Impact Report) for the full build-out is Attachment 2. During the EIR analysis, various other development alternatives were also examined. A discussion of the alternatives is located in the accompanying report on the Certification of the Final Environmental Impact Report.

The Arques Campus Specific Plan includes the following chapters: Introduction, Existing Conditions, Site Design Concept, Land Use and Development Standards, Architectural Design guidelines, Landscape Design Guidelines, Access, Circulation, and Parking, Infrastructure and Public Utilities, and Implementation.

The primary goal of the Arques Campus Specific Plan is to transform the project site into a state-of-the-art research and development campus, nurturing the innovation that is the key to success in the semi-conductor industry. The Arques Campus sets a standard for future high technology development in Sunnyvale and the region. The vision and goal of the Plan implement several goals and policies of the Sunnyvale General Plan while supporting specific business needs to more efficiently use and expand research and development activities on campus.

The current use of the site is research and development for high-technology industry. The site incorporates office, research and development, utility support, and process equipment and tool demonstration uses on the site. The site also includes an employee cafeteria and recreation center to support the primary uses on the site. Table 2.1 of the Plan summarizes existing site conditions. The remainder of the chapter discussion zoning and surrounding land uses, utilities, public services, and environmental features.

In accordance with the vision and program goals of the Specific Plan, the site design concept will incorporate several design principles and outcomes, including:

The following Industrial Design Guidelines were considered in analysis of the project site design.

The overall design principles and site planning elements are consistent with the Industrial Development Guidelines and the goals and policies of the Sunnyvale General Plan.

The Specific Plan provides policy guidance and regulatory definition for development of the 35.46 acres Arques Campus site. The permitted uses include:

• Equipment testing and demonstration
• Administrative, professional, and corporate offices
• Research and development laboratories
• Conference and training facilities
• Recreation, good service facilities and other accessory uses
• Limited assembly and manufacturing
• Sales and services
• Parking
• Storage
• Infrastructure and utility facilities.

The development standards are proposed to achieve the following planning objectives:

• Implement the intent and purpose of the Sunnyvale General Plan
• Promote the health, safety, and general welfare of the Sunnyvale community
• Provide maximum opportunities to enhance and maintain the quality of the site and architectural design.
• Create a unique work environment, provide a sense of place, and set the standard for collaborative invention.

The general development standards of the proposed Arques Campus Specific Plan are similar to the M-S (Industrial and Service) zoning with the exception of the proposed floor-area ratio. The Plan proposes an actual FAR of 72.1% FAR and an effective FAR of 64%.

Allowable FAR has a relationship to community character. The built environment is one of many components of community character and helps define the evolution of industrial neighborhoods. The policy parameters regarding the level and location of industrial development has short and long-term impacts on land use patterns.

The Arques Campus Specific Plan proposes a FAR of 72.1% FAR. The floor area ratio (FAR) of a parcel is defined as the gross building area divided by the net lot area. The FAR controls the total amount of building area that may be built on a specific parcel; it defines the intensity of use on a specific site The floor area ratio incorporates employee-generating spaces within the buildings and does not include building space devoted to parking structures.

Within the industrial zoning districts, applications for greater than 35% FAR require a Use Permit. The applicant, therefore, has submitted a Specific Plan, that proposes a FAR higher than 35% FAR. A Use Permit is a discretionary permit for two-years and an applicant may request an extension; an adopted Specific Plan typically provides a longer approval period and a greater protection of development options to the property.

The gross building area is referred to as the "actual" FAR. The calculation which discounts for "non-employee generating spaces" (e.g. mezzanines, cafeterias, exercise facilities, and child care centers) is referred to as the "effective" FAR. Through the reduction of square footage associated with "non-employee generating space" the "effective" FAR for this project is 64% FAR. The "effective" FAR discounts the approximately 132,000 gross square feet for tool testing/demonstration, cafeteria, recreation center, conference center, and training rooms. The effective FAR may better reflect traffic and air quality impacts on both local roads and sub-regional transportation corridors. Even with these reductions, however, the project will have transportation and air quality impacts as noted in the Environmental Impact Report.

The intensification of development, however, also achieves other goals. The Arques Campus Specific Plan seeks a higher development intensity in order to achieve program goals of revitalizing and transforming the existing site into an integrated state-of-the-art research and development campus. The phasing of the project provides some flexibility to address the pace of technological change and economic cycles.

The Specific Plan provides the parameters for a comprehensive and unified campus development. The campus expansion supports several objectives of the Economic Prosperity Program of the City of Sunnyvale, by providing an opportunity to retain and support a significant Sunnyvale business. The proposed campus expansion will:

• Directly and indirectly provide additional jobs to the City
• Contribute significant funding for affordable housing since the project is subject to the Housing Mitigation Fee
• Add to the tax base of the City (while also requiring additional City services)
• Contribute to economic vitality of the City and the region
• Assist in the retention and expansion of an important industry sector
• Improve the status of the surrounding industrial area

The proposed Specific Plan raises the issues of balancing growth and economic development outcomes with environmental impacts. The effects of cumulative growth due to projected job and population growth remains a regional issue with both local and regional consequences. The intensification of land uses in various parts of the community also raises concerns about both community character and the built environment. More comprehensive analysis of the higher intensity, using the Council adopted review criteria, is located in Attachment 4.

The Arques Campus Specific Plan establishes architectural design guidelines for a high technology research and development campus. The guidelines use two themes:

1. Establishing and reinforcing the scale of the exiting streetscape and adjacent buildings
2. Developing a design that expresses the programmatic functions and building space types.

The types of building spaces on the site will be: office/prototype lab spaces, amenity features, support facilities, and parking structures. Building orientation and setbacks, building step-backs, building entrances, elevations, and building floor plates, daylight planes, rooftop equipment, and service areas are in Chapter 5. The amenity buildings and spaces will include: a cafeteria, a conference center, training rooms, recreation center and support facilities (e.g. vending, staff services, etc.).

The following Industrial Design Guidelines were considered in the analysis of the project architecture.

The environmental assessment of the impacts concluded that the proposed project is consistent with the Sunnyvale General Plan. No visual impacts were identified with the proposed project and no mitigation measures were required. There will be further review of the refined architectural plans by the Planning Commission to assure consistency and compatibility.

The landscape concept incorporates both formal and informal planting areas throughout the campus. The site currently has 446 trees of various species and sizes located on the campus. A tree protection plan, incorporating a significant number of existing trees, will be required of the applicant prior to issuance of demolition or building permits. The landscaping concept incorporates the general elements of:

The Plan addresses issues of landscape maintenance, irrigation and tree protection on the site. The landscape concept accommodates Best Management Practices (BMPs) to promote post-construction stormwater quality standards.

The following Industrial Design Guidelines were considered in analysis of the project landscaping:

On-site parking (surface and structured parking) for employees and visitors will have a combined total of 2,975 parking spaces. The parking structures will be located on the southeast and northwest corners of the campus. Vehicular circulation and parking is organized to facilitate access and to help define the campus setting. A private loop road, Campus Drive, provides access to all parking areas, with drop-off points near main building entrances. Visitor, employee and service access is through three entrances off Arques Avenue. An employee/service entrance is located off California Avenue.

There will be several landscaped pedestrian pathways throughout the campus to connect open space and other campus destinations. There will be a continuous pedestrian sidewalk (5 ft. minimum) provided on the campus side of the Campus Road to provide safe pedestrian movement and recreational opportunities. There are public sidewalks on both sides of Arques Avenue, and signalized pedestrian crosswalks at Arques Avenue and Commercial Street and at Santa Trinita Avenue. As a part of the overall circulation concept, the project proposes to have bicycle racks and secure bicycle storage. Campus employees will have access to on-site showers and other facilities to support and encourage bicycle use.

The campus is served by four Valley Transportation Authority (VTA) bus routes (Routes 41,56,140, and 304) within one-quarter mile radius of the site. The site is located about one mile from the Lawrence Caltrain station and approximately two and one-half miles from the Sunnyvale Caltrain station. Connections to LRT stations are via VTA Route 56 and a shuttle from the Bowers campus of Applied Materials and the Orchard Light Rail station at 1^st Street and Montague Expressway.

The applicant currently operates a commute alternative program for their employees. The current program includes: shuttle service between Applied Materials and nearby Caltrain and LRT station, incentives to employees for use of public transportation, including transit pass subsidies, a guaranteed ride-home program and other incentives and a Commuter Information Line staffed to answer questions regarding schedule and availability of public transit services. A detailed Transportation Demand Management Plan is proposed (Attachment 8). The requirement for the TDM Plan will be a requirement of the site - not merely the current applicant.

The following Industrial Design Guidelines were considered in analysis of the project parking and circulation.

Barton-Aschman Associates prepared a Transportation Impact Analysis (TIA) in accordance with the Santa Clara Valley Transportation Authority (SCVTA) Congestion Management Program (CMP) requirements. City staff reviewed and approved the TIA.

The scope of the TIA was comprehensive. Intersection, freeway, and alternative transportation impacts were assessed per the CMP. The TIA also looked at a number of non-CMP, City-controlled intersections. Additionally, the study scope included near and far term project buildout scenarios. Twenty-seven intersections were studied for level of service impacts, including five CMP intersections. The study found that the proposed project will not cause any violation of the City’s or the VTA’s baseline LOS policies in the project condition.

The Draft Environmental Impact Report assessed the findings of the Transportation Impact Analysis (TIA) for traffic-related environmental impacts. Significant impacts were identified to three freeway segments along route 101, and to the intersections of Lawrence Expressway/Arques Avenue and Lawrence Expressway/Duane Avenue. As identified in the TIA, proposed mitigation by the project sponsor to fund improvements at these locations and to conduct traffic demand management (TDM) were determined to be feasible in the DEIR. Detailed discussions of these mitigations are in the Environmental Impact Report and the accompanying report. These mitigation measures have been noted in the Implementation Conditions (Attachment 2).

The project EIR analyzed potential project related air quality impacts with respect to carbon monoxide, ozone precursors, and particulates. Project generated traffic would not result in local carbon monoxide concentrations that would exceed state or federal standards. The project, in combination with other development and growth in the region, however, would have air quality impacts resulting from the release (principally from vehicular emissions) of precursor compounds (hydrocarbons and nitrogen oxides) to the production of ozone and smog.

While the project TDM program would reduce this air quality impact, it would not diminish the effect to a less than significant level. The project EIR concluded that use of best management practice during construction would mitigate air quality impacts that would otherwise result from dust raised by construction activity. A statement of overriding considerations on the air quality impact is proposed for adoption with the Certification of the Environmental Impact Report. A finding of overriding considerations is included in the accompanying report on the Final EIR.

Public facilities, including water, sewer, storm drainage, and utilities will be provided to support site development, and to integrate with the roadway system serving the site. All infrastructure and public utilities will be appropriately phased to support the expansion of the campus. The City will supply domestic and industrial water to the Arques campus. There is adequate water currently available to serve the type and amount of development proposed for the site. Wastewater will be treated at the City of Sunnyvale's Water Pollution Control Plan.

The capacity of the City of Sunnyvale's solid waste disposal system is adequate to accommodate the development of the Arques Campus. A project-specific recycling program, subject to City approval prior to the issuance of the first building permit for new construction, will minimize the generation of solid waste. Storm water drainage will be managed through the drainage plan to safely and efficiently collect and transport storm water from the site.

A proposed electrical and natural gas service diagram is in the Plan but detailed utility plans will be required during the plan check prior to the issuance of building permits. Telephone service will be provided by Pacific Bell and the City will provide both police and fire protection services to the site. The property owner will maintain all on-site infrastructure improvements on campus except the maintenance of natural gas and electrical and telephone facilities.

The City’s Initial Study identified capacity constraints in the wastewater collection system. The City of Sunnyvale is responsible for the collection, treatment, and disposal of wastewater for local residents and businesses. Wastewater from the project is collected in a sewer main in Arques Avenue, which then flows to the Lawrence Trunk Sewer to be conveyed to the Sunnyvale Water Pollution Control Plant. The Lawrence Trunk Sewer is already near capacity during the peak periods (6am to 10am weekdays). In general, the City seeks to operate the sewer system so that flow depth is no more than 80% of the pipe diameter at peak flows. Without mitigation, this project would result in pipe loadings of 93% of maximum capacity.

The EIR notes that the wastewater generation at build-out of the campus and flow rate would exceed the remaining capacity in the Arques line and result in a significant impact on the local collection system unless the discharge were restricted during the morning peak flow period. Applied Materials has the flexibility to schedule its processes and thus generate industrial wastewater to avoid peak periods; combined with the capacity from other sources, the Arques line will have baseline wastewater flows and available capacity for the Specific Plan development and other developments on Arques Avenue.

The planned diversion of wastewater from the Lawrence Trunk Sewer to Borregas Sewer would provide sufficient capacity `in the Lawrence Trunk Sewer to accommodate the project growth at the Arques Campus provided that the proposed Fair Oaks Sewer Extension is constructed, but it would not increase the capacity of the Arques collector sewer.

Stormwater runoff is collected in the City’s master storm drainage system that drains into the conduits of Sunnyvale East Channel, Sunnyvale West Channel, and Calabazas Creek. Urban runoff from the project site and immediate vicinity collects in the storm drainage lines along Arques Avenue. The quality of the surface water leaving the site is affected primarily by non-point source pollutants such as industrial and commercial zones, freeways, streets, residential neighborhoods, construction sites and parking lots. Drainage plans are required and there are a variety of water quality and stormwater discharge permitting regulations.

Some past activities on the site have resulted in releases of hazardous materials to the soil and groundwater at the project site. There are a variety of regulatory agencies and controls that address projected risks associated with development of specific sites, hazardous waste management, air quality controls, hazardous materials transportation, worker safety, structural building components, and environmental safety and health plan.

Staff is recommending a series of additional conditions or implementation measures for the Specific Plan. Final publication of the Plan would incorporate these measures (Attachment 2). The Implementation Chapter will clarify the subsequent review processes, phasing of development, the building program, on-site and off-site improvements, and the funding and implementation of required capital projects and code requirements.

The Arques Campus Specific Plan has conceptual discussions of the site plan, architecture, parking and circulation, and the landscaping and other utility issues. Staff recommends that specific, detailed project plans shall be subject to design review approval at public hearings of the Planning Commission. The applicant will pay Major Permit Plan Review fees for the design review process. Further, if the applicants are aggrieved by the decision of the Planning Commission they may appeal such action to the City Council. Minor modifications to the approved plans and review of landscape and lighting plans may be reviewed and approved by the Director of Community Development.

Housing Mitigation Fee: The project will be subject to the Housing Mitigation Policy. Staff recommends the Housing Mitigation Fee of $7.19 per square foot for employee-generating spaces above 35% FAR. These fees support affordable housing programs in Sunnyvale (Implementation Condition #12).

Art in Private Development: Non-residential sites over two acres are required to provide art in private development in accordance with the Art in Private Development Requirements of the Zoning Code. The review of the artist, the scale of the artwork and the appropriateness of the artwork to the site is subject to Arts Commission Approval (Implementation Condition #14). Due to the size of the campus, staff recommends at least 3 pieces of artwork for the site. Identification of types of art and potential locations have not been addressed at this time. At a minimum, one art element will be located along the Arques Avenue frontage and staff encourages project sponsor to explore the feasibility of incorporating an art feature that can been seen from Central Expressway.

Staff assessed the conformance of the Arques Campus Specific Plan with the Sunnyvale General Plan. The proposed project meets the goals and policies of the Sunnyvale General Plan. An expanded summary table of the analysis is located in Attachment 3.

On May 4, 1999, the Sunnyvale City Council adopted review criteria for projects greater than 35% FAR. The intent of the project review categories is:

1. to supplement the Sunnyvale General Plan goals and policies and the Industrial Design Guidelines
2. to provide specific guidance for consideration of more intense development projects

Staff has utilized the project review as part of the analysis of the proposed Arques Campus Specific Plan. The analysis of the project review criteria for this project is Attachment 4. Based on the analysis, staff concludes that the proposed Arques Campus Specific Plan addresses the project review criteria for projects greater than 35% FAR and staff recommends adoption of the Arques Campus Specific Plan.

The Environmental Impact Report for the Arques Campus Specific Plan identified various mitigation measures to mitigate the environmental impacts associated with development of the site. These mitigation measures are included as Implementation Conditions for the Arques Campus Specific Plan. The Implementation Conditions related to Mitigation Measures are located in Attachment 2.

Staff believes that the Arques Campus Specific Plan is in conformance with the goals and policies of the Sunnyvale General Plan and addresses the project review criteria for projects greater than 35% FAR.

The environmental impacts associated with the increased density on the site have been addressed in detail in the Environmental Impact Report and several mitigation measures are incorporated as part of the project Implementation Conditions.

Staff has prepared Implementation Conditions for the Arques Campus Specific Plan. These conditions clarify or modify the applicant's proposal in order to meet requirements imposed by the Municipal Code and policies and standards set forth by the General Plan and the City Council. Staff proposes that these Implementation Conditions be incorporated into the Final Arques Campus Specific Plan. The resolution for adoption of the Arques Campus Specific Plan is Attachment 1. The recommended Implementation Conditions are located in Attachment 2.

• Staff is recommending Implementation Conditions for the Arques Campus Specific Plan (Attachment 2).

Fiscal impacts include normal fees and taxes, which should offset the provision of services to the site. Long term financial benefits may be derived indirectly through the retention of a strong industrial base. There is an analysis of the compounded fiscal impacts in the project review criteria in Attachment 4. (The project sponsor has also proposed a Development Agreement that incorporates both undesignated "community benefit" funds for required mitigation measures and a contribution for community-wide benefit.)

Notice of the Environmental Impact Report (EIR) and the public hearings for the Arques Campus Specific Plan were published in the Sun newspaper, posted on the site and mailed to the property owners within 300 feet of the project site. In addition, notices were sent to individuals who have expressed an interest in this project

The staff report for this project was posted on the City of Sunnyvale's Website and a copy of the report was provided at the Reference Section of the City of Sunnyvale's Public Library. The Planning Commission Agenda was posted on the City of Sunnyvale's Website and recorded for SunDial.

There was a Study Session with the Planning Commission on the Draft Environmental Impact Report (DEIR) on April 12, 1999 and the Arques Specific Plan on May 10, 1999. There was a Study Session with the City Council on the DEIR on April 27, 1999 and the Arques Specific Plan on May 4, 1999. To provide information about the project to the community, the applicant conducted several community meetings with neighborhood groups.

Planning Commission reviewed this item on June 7, 1999. The Planning Commission voted 5-1 to recommend adoption of the specific plan. The dissenting vote believed a higher FAR was appropriate for this location and use, but the request for 72% FAR used up too much of the available pool. Minutes of the Planning Commission meeting are found in Attachment 9.

1. Adopt the Arques Campus Specific Plan and Implementation Conditions.
2. Adopt the Arques Campus Specific Plan and Implementation Conditions with modifications.
3. Not adopt the Arques Campus Specific Plan and direct staff as to where additional project and environmental analysis is required.

Alternative #1.

Prepared By:

Gail A. Price
Principal Planner

Reviewed By:

Trudi Ryan
Planning Officer

Reviewed By:

David S. Boesch, Jr., Director
Community Development

Approved by:

Robert S. LaSala
City Manager

Attachments:

1. Draft Resolution to Adopt the Specific Plan
2. Implementation Conditions
3. Comparison to General Plan Goals and Policies
4. Project Review Criteria for Projects Greater than 35% FAR
5. Existing and Proposed Site Square Footage
6. Development Standards of the Arques Campus Specific Plan
7. Table: Summary of Project Staging
8. Transportation Demand Management Plan
9. June 7, 1999 Planning Commission Minutes

The Draft Arques Campus Specific Plan (April, 1999) will be modified and finalized to reflect the Implementation Conditions, including those related to Mitigation Measures identified in the Environmental Impact Report. In addition to complying with applicable City, County, State and Federal Statues, Codes, Ordinances, Resolutions and Regulations, Permittee expressly accepts and agrees to comply with the Implementation Conditions:

1. All development shall implement the Arques Campus Specific Plan Program goals and objectives.
2. The Implementation Conditions shall be reproduced on one page of the plans submitted for a Building Permit for this project. The Conditions of Approval of Design Permit 9415 for the subject site remain in effect in addition to the Implementation Conditions of the Arques Campus Specific Plan.
3. Permitted uses include: research and development laboratories, equipment testing and demonstration, administrative, professional and corporate offices and related support and amenity facilities.
4. Any expansion or modification of the approved use shall be approved by a separate application at a public hearing by the Planning Commission. Minor modifications may be approved by the Director of Community Development.
5. Permanent out-of-door loud speakers are prohibited. Temporary use of loudspeakers may be considered subject to review and approval by the Department of Community Development through the Miscellaneous Plan Application process at least one-month prior to the event.
6. Comply with all requirements of the SMC Noise Regulations.
7. Obtain a Development Permit from the Department of Public Works for all proposed off-site improvements.
8. Post labor/material bond and faithful performance bond for the full cost of all off-site public improvements (MCS 12.08.020) prior to issuance of building permits for improvements necessary for completion of Stage 1 and Stage 2.
9. Incidental and accessory storage, mechanical equipment or appurtenances shall be permitted if it does not exceed five percent of the net site and it is fully screened by building or sight-proof screening from public streets and adjacent properties.
10. Consult with the Crime Prevention Division of the Public Safety Department for crime prevention measures appropriate to new structures and the upgrade and additions to the existing buildings on the site prior to the issuance of a Building Permit. Incorporate features recommended by crime prevention or explain why the features cannot be incorporated, subject to review and approval of the Director of Community Development.
11. Obtain appropriate permit from the Bay Area Air Quality Management District prior to the demolition of any existing buildings on the site.
12. Comply with Housing Mitigation Policy, which includes an estimated Housing Mitigation Fee ($7.19/s.f. above 35% FAR) of $3,177,815 prior to issuance of a Building Permits or at a time mutually agreed upon by the applicant and the City of Sunnyvale.
13. Any proposal for telecommunication antennas shall conform to the Sunnyvale Municipal Code. At no time shall telecommunication antennas including dish antennas be visible above the roof parapet. All antennas shall be stealth and incorporated in the design of the buildings except for those exempt by the Sunnyvale Municipal Code.
14. Comply with Art in Private Development requirements by the provision of artwork at least 3 locations with at least one located along the Arques Avenue frontage Artist and artwork are subject to review and approval of the Arts Commission in accordance with the Sunnyvale Municipal Code. Artwork locations shall be approved by the Director of Community Development. Artist and artwork are subject to review and approval of Arts Commission in accordance with Sunnyvale Municipal Code. If an artwork application has not been submitted prior to issuance of a building permits for Stage 1, applicant shall provide a bond equal to 1% of the construction or the estimated cost of the artwork, whichever, is greater, to ensure satisfaction of this requirement. This artwork requirement for the Arques Campus Specific Plan supercedes the art requirement in conjunction with Design Permit 9415.
15. Obtain approval of a trash collection and recycling plan (including the design and location) from the Department of Community Development and the Department of Public Works. All trash enclosures will be a minimum of 6 feet high and enclosed on all four sides, approved by the Director of Community Development and the location approved by the Director of Public Works prior to issuance of a Building Permits.

16. The site design will be in conformance with the Site Design Concepts (Chapter 3) of the Arques Campus Specific Plan. The Site Design Concepts include: community compatibility, central commons, interactive campus environment, campus circulation, unified architectural design, and integrated landscape design.

17. The development standards for the Arques Campus Specific Plan will be in accordance with the development standards noted in Table 4.1 of the Plan or as may be modified or approved by the Director of Community Development.
18. The phasing of project development will be in accordance with the Implementation Chapter (Chapter 9), Section 9.7 and the Staging Summary (Table 9.1), or as may be modified and approved by the Director of Community Development.

19. All architecture and design for the campus will be in conformance with the Architectural Design Guidelines (Chapter 5) of the Arques Campus Specific Plan and the City of Sunnyvale Industrial Design Guidelines.
20. Provide detailed plans and elevations with adequate architectural design, including articulation and details for each building for review and approval by the Planning Commission prior to applying for building permits. The applicant may appeal the decision of the Planning Commission to the City Council within 15 days of the Planning Commission action. The following information shall be submitted to the Director of Community Development in conjunction with each design review:

1. Architectural elevations of all sides of all buildings
2. Floor plans of all buildings
3. Exterior wall sections
4. Exterior details of windows, doors, eaves balconies, etc.
5. Mass building model or perspective drawings if required by the Director of Community Development.
6. Complete color and material board.
7. Photographs showing streetscape of adjacent properties.

22. Provide refined site plans, for review and approval by the Director of Community Development, that demonstrate use of curvilinear features, including but not limited to architectural elements, pedestrian pathways and decorative pavement to soften the angularity in the conceptual site plan.

23. Any major site and architectural plan modifications shall be treated as an amendment of the original approval and shall be subject to approval at a public hearing before the Planning Commission, except that minor changes of the approved plans may be approved administratively by the Director of Community Development.
24. Design the parking garage façade with features compatible with the buildings along Arques Avenue.
25. All signage, "street furniture" (benches, planters, bicycle racks, garbage cans, etc.) shall be designed and constructed in accordance with the approved Industrial Design Guidelines. A comprehensive plan for these elements is subject to review and approval by the Director of Community Development.

    Landscape Design Guidelines

26. All landscaping for the site will be done in accordance with the Landscape Design Guidelines (Chapter 6) of the Arques Campus Specific Plan.
27. The landscaping and irrigation plans shall be submitted to the Director of Community Development for approval prior to issuance of a building permit. The landscaping plan shall include the following elements:

1. The site landscaping and open space on campus shall be at least 28% of the net site area and may include areas of decorative paving as part of the landscaping requirement.
2. The minimum landscape area data noted in the Development Standards (Table 4.1 of the Arques Campus Specific Plan) needs to be revised to accurately reflect the square footage of landscaping for the site.
3. All areas not required for parking, driveways or structures shall be landscaped.
4. All landscape areas shall have an appropriate irrigation system.
5. Consult with the Trees and Landscaping Division of the Pubic Works Department regarding the provision of street trees along the Arques Avenue frontage of the subject property
6. Every effort shall be made to save all existing healthy mature trees.
7. Provide trees at minimum 30 feet intervals along side and rear property lines, except where mature trees are located on the subject site or immediately adjoining on neighboring property.
8. Any modifications to landscaping along street frontages shall include undulating mounds up to 3 feet in height.
9. Ground cover shall be planted so as to ensure full coverage eighteen months after installation.
10. All areas not required for parking, driveways or structures shall be landscaped.
11. The landscape plan will accommodate Best Management Practices (BMPs) to promote post-construction stormwater quality standards.
12. Prior to issuance of a Demolition Permit, a grading Permit, or building Permit which ever occurs first, obtain approval of a Tree Protection Plan from the Director of Community Development. Utility Plan and Site plans shall be adjusted to ensure that healthy mature trees are preserved.

29. The lighting plan will be in conformance with the lighting standards of the Landscape Design Guidelines. Submit exterior lighting plan, including photometrics, fixture and pole designs, for approval by the Director of Community Development prior to issuance of a Building Permit. Driveway and parking area lighting shall include the following:

1. Sodium vapor (or illumination with an equivalent energy savings).
2. Pole heights (including the base and fixture) shall not exceed 16 feet.
3. Provide photo cells for on/off control of all security and area lights.
4. All exterior security lights shall be equipped with vandal-resistant covers.
5. Wall packs shall not extend above the roof or parapet of the building.

30. Submit a revised parking and circulation plan to the Director of Community Development for review and approval prior to the issuance of a Building Permit. The plan shall include:

1. A total of 2,975 parking spaces.
2. Designate on-site parking, including designated areas for employees, visitors, emergency response team members, handicapped parking, vanpool, and carpool spaces. All such areas shall be clearly marked on Building Permit plans prior to the issuance of Building Permits
3. A total of 10 percent preferential parking spaces shall be reserved and so marked in the closest possible rows adjoining the building or near parking structure elevators for exclusive use by carpool vehicles carrying at least two employees per vehicle. In addition, provide parking for visitors, disabled, and pool vans in similar areas.
4. Specify compact parking spaces on Building Permit plans. All such areas shall be clearly marked prior to occupancy, as approved by the Director of Community Development.
5. Provide a continuous pedestrian sidewalk (5 ft. minimum width) on the campus side of the Campus Road.
6. Provide bicycle storage and sufficient bicycle support facilities (e.g. showers and lockers) for a minimum of 150 bicycles (secured and temporary) in accordance with plans approved by the Director of Community Development and the Director of Public Works. Plan may include phasing proportional to development. At least 100 spaces shall be secured parking and at least 15 of the secured bicycle parking spaces shall be provided outside the building for visitors.

31. Submit a Transportation Demand Management Plan prior to occupying project facilities, and provide progress reports annually (January 1^st) to the City of Sunnyvale. In addition to other requirements, the project sponsor will determine if the number of bicycle support facilities are sufficient to serve the demand and increase the number of facilities, as necessary or appropriate.
32. Design landscaping and parking surfaces to contribute to effective storm water management.
33. Include storm water management in the design of the new parking garage.
34. Provide continuous walkways along the project frontage with wheelchair curb ramps at all street driveway intersections per Americans with Disabilities Act pedestrian access standards.
35. All traffic mitigation measures will be funded and implemented as noted in the Arques Campus Specific Plan EIR Mitigation Monitoring Plan and the Development Agreement between Applied Materials and the City of Sunnyvale.

36. All public facilities, such as water, sewer, storm drainage, and utilities must be provided to support full site development through each stage of project phasing. A Utility Plan will be prepared for the site in accordance with City standards and requirements prior to issuance of Building Permits for Stage 1 and Stage 2.
37. All existing on-site, overhead utilities shall be undergrounded in accordance with the Sunnyvale Municipal Code (19.46.060). A copy of an agreement with PG&E for undergrounding of existing overhead utilities which are on-site or within adjoining rights-of-way shall be provided to the Director of Community Development prior to issuance of a Building Permit or a deposit in an amount sufficient to cover the cost of undergrounding shall be made with the City.
38. Obtain Public Works approval of plans for utility line extensions, utility connections, meter locations, driveways, sidewalks, etc.
39. The applicant shall comply with all provisions of National Pollutant Discharge Elimination System (NPDES) permit, including preparation and implementation of a Storm Water Pollution Prevention Plan for construction of this project.
40. Water pollution control measures (related to sanitary and storm sewer discharges) to be incorporated into the project construction, design and operation.
41. Comply with City of Sunnyvale Industrial Pre-treatment Program Standard Conditions for Plan Checks.
42. All waste water mitigation measures will be funded and implemented as noted in the Arques Campus Specific Plan EIR Mitigation Monitoring Program and the Development Agreement between Applied Materials and the City of Sunnyvale.
43. Contact the City's Environmental Division prior to the issuance of a Building Permit regarding water pollution control measures (related to sanitary sewer and storm discharge) to be incorporated into the project construction, design and operation. Incorporate features recommended by the environmental division or explain why the features cannot be incorporated, subject to review and approval by the Director of Community Development.
44. Provide separate irrigation systems to accommodate future recycled water connections for the site
45. Provide separate meters for irrigation.
46. Construct all public improvements prior to occupancy in accordance with approved staging plan.
47. Consult with Public Works staff for use of recycled water in buildings (excluding domestic use). Prior to issuance of Building Permits, incorporate features recommended by Public Works staff or explain why features cannot be implemented.
48. All waste water services mitigation measures will be funded and implemented as noted in the Arques Campus Specific Plan EIR Mitigation Monitoring Plan.

In conformance with the certified Final Environmental Impact Report, the following actions shall be taken to mitigate the environmental impacts that could be caused by development of the site as proposed in the Arques Campus Specific Plan. These mitigation measures are included as Implementation Conditions for the Arques Campus Specific Plan. A mitigation monitoring program is an attachment to the accompanying report on the Certification of the Environmental Impact Report.

M1. Contributions to Northbound U.S. 101 Traffic Improvements. Make a fair share monetary contribution to the City of Sunnyvale (for the VTA Congestion Management Program) of 1.9% of the unfunded portion of the SR 85/U.S. 101 improvement project as mitigation of impacts on northbound U.S. 101 traffic. Payment to the City of Sunnyvale (the fair share contribution is $253,000).

M2. Contribution to Southbound U.S. 101 Traffic Improvements. Make a fair share monetary contribution of 3% to the VTA Congestion Management Program for the I-880 widening project (which affects the performance of U.S. 101). Payment to the City of Sunnyvale (the fair share contribution is $90,000).

M3. Transportation Demand Management. Project sponsor currently implements transportation demand management programs. Continue to implement TDM measures to achieve a minimum 15% reduction of automobile trips. Techniques that can be continued, enhanced, or initiated include informing employees of transit options; eliminating free parking or implementing parking cash-out at the Arques Campus; subsidizing transit passes; participating in VTA’s Eco Pass program, commuter checks, or other alternative mode subsidies; providing shuttle services to bus and rail stops and transit centers; promoting vanpooling and ridesharing; and promoting bicycle use. Submit Transportation Demand Management Plan and progress report to City Community Development Department on an annual basis.

M4. Lawrence Expressway and Arques Avenue Intersection Improvements. Contribute total project funds to the City to lengthen the northbound dual left-turn lanes from approximately 320 feet to approximately 560 feet. Project sponsor and City or County using funds from project sponsor. Payment of funds to the City for construction of intersection improvements (the fair share contribution is $213,000).

M5. Fair Share Contribution for Lawrence Expressway and Duane Avenue Improvements. Make a fair share monetary contribution to the City to finance a traffic interchange at the intersection of Lawrence Expressway and Duane Avenue. Payment of funds to the City of Sunnyvale for future construction of interchange. (The fair share contribution is $812,000).

M6. Vehicular Trip Reduction Measures. Same as M3.

M7. Construction Best Management Practices. Implement on-site measures for dust control during construction:

2. schedule timely plantings to permanently abate wind erosion,
3. wash or sweep access roadways and prevent mud from accumulating on area streets during construction,
4. when there is a substantial amount of exposed earth, have a water truck on site or other means of readily watering exposed surfaces.

The following other measures or conditions would have a favorable effect on dust and could be performed instead of watering some portions of the site during some phases of construction:

M7. Regulation of Industrial Processes. Conduct industrial processes such that release of industrial wastewater does not coincide with weekday peak flows in the Lawrence trunk sewer, from 6 AM to 10 AM.

M8. Collection System Upgrade. Contribute funds to the City to make available capacity improvements to the 10-inch sewer line in Arques Avenue, the sewer force main diversion facilities, the proposed Fair Oaks Avenue sanitary sewer extension, or other facilities, as determined appropriate by the City Public Works Department, to mitigate the peak flow impacts from buildout of the Arques Campus. The payment shall be determined on the basis of the equivalent cost for on-site storage of a volume equal to four hours of the differential between the peak flow at buildout and the peak flow from the existing facility, including the Technology Center. (The fair share contribution is $197,600).

M9. Preparation of SWPPP. Have a construction Storm Water Pollution Prevention Plan (SWPPP) prepared by, or under the direction of, an individual who is qualified as a Certified Professional in Erosion and Sediment Control or a Registered Civil Engineer. Project sponsor.

M10. Review and Approval of SWPPP. Consult with the City of Sunnyvale in identifying exact locations, extent, nature and details of erosion controls and in developing Best Management Practices (BMP). The SWPPP shall conform to City requirements for pollution prevention in construction contracts. The SWPPP shall be submitted to the City of Sunnyvale for review and approval prior to issuance of grading or construction permits.

M11. Minimize Use of Pesticides and Fertilizers. Use the minimum amount of pesticides and fertilizers necessary to properly maintain landscaping at the Arques Campus. Do not apply pesticides and fertilizers to grounds if rain is imminent. Project Sponsor. Report pesticide use to City Community Development Department annually.

M11. Environmental Safety and Health Plan. Revise, update or amend Environmental Safety and Health Plan prepared for the construction of the new Technology Center, parking garage, and recreation center to address the worker, public and environmental health and safety issues related to the potential for project-related construction to disturb existing contamination or interfere with ongoing remediation activities. Submit revision, update, or amendment to City Community Development Department and the San Francisco Bay Regional Water Quality Control Board and implement the plan.

M12. Hazardous Materials Survey. Have existing buildings inspected by a qualified environmental specialist for the presence of as yet unidentified asbestos, PCBs, mercury, lead, or other hazardous materials. If found, these materials shall be managed as required by law and according to federal and state guidelines. Health and safety measure to address possible building contaminants discovered through this process shall be incorporated into the revised, update, or amended Environmental Safety and Health Plan described in M11, or into a new plan implemented to address these issues.

The following goals and policies were considered to determine conformance with the General Plan.