MILPITAS PLANNING COMMISSION STAFF REPORT · Building materials consist of fiber cement panels, metal canopies, curtain walls, and glass railings, as seen in Figure 2. The materials

AGENDA ITEM: VIII-1

MILPITAS PLANNING COMMISSION

STAFF REPORT

March 27, 2019

APPLICATION: KLA New Amenity Building – P-SD18-0011, E-LC19-0001. A

request for a Site Development Permit and Lot Combination to

allow development of a new two-story 25,300-square foot amenity

building, including employee cafeteria, meeting rooms, and outdoor

patio within an existing courtyard on the KLA campus and to merge

two lots, totaling 20.1 acres.

RECOMMENDATION: Staff recommends that the Planning Commission adopt

Resolution No. 19-009 approving the above application, subject

to the Conditions of Approval.

LOCATION: Address/APN: 1 Technology Drive (APN: 086-43-031) and 3 Technology Drive

(APN: 086-43-039)

Area of City: Technology Drive, south of Highway 237, west of McCarthy

Boulevard, and north of Tasman Drive

PEOPLE:

Project Applicant: Nicole Krais, KLA

Consultant(s): Phil Choi, Gould Evans, Architect

Property Owner: KLA Tencor Corp

Project Planner: Lillian Hua, Associate Planner

LAND USE: General Plan Designation: Highway Services (HWS)

Zoning District: Light Industrial (M1)

Overlay District: Recreation and Entertainment

ENVIRONMENTAL: The project is consistent with the Initial Study/Mitigated Negative

Declaration prepared for the KLA Tencor Floor Area Ratio Increase

project (P-EA13-0005), and no conditions have occurred or will

occur on the site to require the preparation of a subsequent EIR or

negative declaration pursuant to CEQA Guidelines Section 15162

(Subsequent EIRs and Negative Declarations). An Addendum to the

Mitigated Negative Declaration has been prepared pursuant to

CEQA Guidelines Section 15164. As a separate and independent

basis, CEQA Guidelines Section 15183 (Projects Consistent with a

Community Plan, General Plan or Zoning).

Agenda Item VIII-1: KLA New Amenity Building 3/27/2019 Page 2 of 13

EXECUTIVE SUMMARY

The applicant requests a Site Development Permit and Lot Combination to construct one two-story

amenity building, totaling 25,300 square feet, for the KLA campus and to merge two lots, totaling

20.1 acres.

Staff determined the applicant’s request for a Site Development Permit and Lot Combination

complies with the policies and processes outlined in the City of Milpitas General Plan, Zoning

Ordinance, and Municipal Code.

Staff recommends that the Planning Commission open and close the public hearing and adopt

Resolution No. 19-009, approving the subject applications, subject to the conditions of approval

included in as Exhibit 1.

Map 1

Project Location

Project Site

N

Not to scale


Map 2

Project Site Zoning

PROJECT DESCRIPTION

Background

In 1981, the City Council approved annexation of the Milpitas Business Park and assigned the

Highway Services General Plan Designation and Light Industrial Zoning District to the subject

property. The Council also certified the Milpitas Business Park Environmental Impact Report

(EIR #237) for the project. On October 30, 1995, the Planning Commission approved a Site

Development Permit and Environmental Assessment (EIA 657) for the construction of an office,

manufacturing and industrial campus for the KLA Corporation. The facility consists of six

buildings, totaling approximately 730,000 square feet of floor area on four separate lots, totaling

approximately forty acres. Subsequent approvals include installation of signage, construction of

equipment and their enclosures in 1996, and parking lot restriping and landscaping modifications

in 2009.

In 2014, the Planning Commission approved a Conditional Use Permit to increase the maximum

permitted Floor Area Ratio (FAR) from 0.40 to 0.50 to accommodate future expansion of the 40-

acre KLA campus.

Project Site


On June 28, 2017, the Planning Commission approved an additional Conditional Use Permit to

exceed the thirty-five feet height limit in the M1 Industrial zoning district with the installation of

three new structures on the KLA site.

On October 15, 2018, the applicant submitted a Site Development Permit and Lot Combination

application to construct a two-story amenity building, totaling 25,300 square feet. The application

is submitted pursuant to Milpitas Municipal Code (MMC) XI-10-57.03(C), which requires

Planning Commission approval for new primary buildings.

The following is a summary of the applicant’s requests:

Site Development Permit: To allow for the construction of one two-story building, totaling

25,300 square feet.

Lot Combination: To permit the merging of 1 Technology Drive (APN 086-43-031) and 3

Technology Drive (APN 086-43-039) to create a 20.1 acre parcel.

Overview

The project site is located between buildings 1 and 3 on the KLA campus. The two-story amenity

building consists of dining space, service counter area, kitchen and a small café on the ground

floor, and multiple meeting rooms, an open lounge and outdoor deck on the second floor. The

building is accessible from all directions, including the breezeway, which connects all the

buildings in the campus. The scope of work also includes reconfiguring the landscaping

surrounding Buildings 1 and 3, the existing basketball court and breezeway. Figure 1 displays a

rendering of the new amenity building.

Figure 1: New KLA Amenity Building

Location and Context

The project site is located on two separate parcels, which will be merged through the proposed lot

combination to create a twenty-acre parcel, if approved. The site is located at the northeast corner

of the South McCarthy Boulevard and Technology Drive intersection. It is bordered by


Technology Drive to the south, the Coyote Creek and levee to the west and northwest, State Route

237 to the north, and McCarthy Boulevard to the east.

The project site is the KLA corporate campus, comprised of six buildings, surface parking, and

mature landscaping on four parcels. The site is zoned as Light Industrial (M1), and has a General

Plan designation of Highway Services (HWS). Surrounding land uses include State Route 237 to

the north; Coyote Creek and creek trail to the west; Multi-Family Residential uses to the southwest;

industrial/office buildings and uses to the south; and retail and commercial services uses are

located to the east. Vicinity and location maps of the subject site location are included on the

previous pages. For zoning and land use summary, see Table 1:

Table 1: Zoning and Land Use Summary

General Plan Zone Uses

Subject Site Highway

Services (HWS)

Light Industrial

(M1)

Office and

R&D Buildings

North -- -- SR 273 Highway

South Industrial Park

(INP)

Industrial Park

(MP)

Industrial/Office

Building

East Highway

Services (HWS)

Highway

Services (HS)

Staybridge Suites

and Chevron

West -- -- Coyote Creek and

public trail

PROJECT ANALYSIS

General Plan and Zoning Conformance

General Plan

The General Plan designation for the project site is Highway Services. This classification provides

for motels, mobile home parks, and non-retail services such as car-rental offices. As proposed, the

project is in conformance with the policies and standards in the City’s General Plan policies, as

outlined in Table 2:

Table 2: General Plan Consistency

Policy Consistency Finding

2.a-I-2 Promote development within the

incorporated limits which acts to fill-in

the urban fabric rather than providing

costly expansion of urban services into

outlying areas.

Consistent: The project is a two-story amenity

building within an existing industrial office

campus, which is considered in-fill development.

The development will not increase the expansion of

any urban services into outlying areas.

2.a-I-3 Encourage economic pursuits

which will strengthen and promote

Consistent: The project will allow KLA to provide

new amenities to current employees and to attract

new talent. KLA’s continued success encourages

economic development, expands employment


Policy Consistency Finding

development through stability and

balance.

opportunities, and helps maintain the jobs/housing

balance within the City of Milpitas.

2.a-I-7 Provide opportunities to expand

employment, participate in partnerships

with local business to facilitate

communication, and promote business

retention.

Consistent: The project consists of the

construction of a new employee amenity building,

which allows KLA to attract new talent and expand

employment, as well as promote business retention.

Zoning Conformance

The Zoning designation for the project site is Light Industrial, and the existing industrial office

campus is a permitted use in this zoning district. The project is consistent with the City of Milpitas

zoning ordinance, as demonstrated in Table 3:

Table 3:

Summary of Development Standards

Standards Proposed Complies

Lot Area, minimum None 855,175 SF Yes

Lot Width, minimum None 1090 feet Yes

Front Setback,

minimum

Along major street: 35 feet from

face of curb; Along non-major

street: 25 feet from face of curb.

172’10” Yes

Street Side Setback,

minimum

Along major street: 35 feet from

face of curb; Along non-major

street: 25 feet from face of curb.

220’ Yes

Interior Side Setback,

minimum

None 61’2” Yes

Rear Setback,

minimum

None 116’8” Yes

Floor Area Ratio 0.4 0.38 Yes

Building Height,

Maximum

None. The proposed building

height will not exceeds three (3)

stories or thirty-five (35) feet.

33’4” Yes

Parking R&D: 1/300 GFA

Office within R&D: 1/350 GFA

730,000 SF / 200 SF = 2,434

spaces

2,452 across the

entire campus

Yes

Landscaping Required front yard area and

required street side and yard

area.

Landscaping

proposed within

Yes


amenity courtyard

area

Proposed Project Details

Specific information regarding project details is provided below to aid the Planning Commission

in making their recommendation:

Site & Architectural Design

The project is designed in a modern and contemporary style. The building consists of dining,

service counter area, a kitchen and a small café on the ground level, and multiple meeting rooms,

open lounge/ outdoor deck on the second level. The building can be accessed in all directions from

the campus, including the open breezeway, which connects all the buildings in the campus. The

massing design maximizes the daylight and views from the building through the large glazed

façade. Shading devices will be installed throughout the building in order to reduce energy cost,

meet the required thermal performance, and provide a comfortable indoor environment. Design

elements from the existing buildings have been incorporated into the new building, like the mullion

modules and concrete panels. Materials from outdoor patio areas into the building have been

carefully selected in order to maintain a seamless design language between inside and outside. On

the roof, mechanical equipment is enclosed by a profiled metal fence with a sound panel inside.

Building materials consist of fiber cement panels, metal canopies, curtain walls, and glass railings,

as seen in Figure 2. The materials and changes to the color treatment are similar to other industrial

buildings surrounding the project site and create a consistent design between the industrial

properties.

Figure 2: East Elevation

Landscape & Open Space Design

The Zoning Code requires landscaping along the front and street side yard areas of industrial

projects. No landscaping will be removed from the front or street side yard areas. The scope of

work removes the existing landscaping within the courtyard to accommodate the new structure.

The revitalized landscape plan focuses on water conservation, adaptive reuse of water and human

health and wellness components. Landscape programming includes a promenade, outdoor dining

spaces, outdoor work spaces, casual meeting areas, recreational lounging, sand volleyball, a

hammock zone, and a small flower garden that features KLA’s existing roses. The project will use

reclaimed water and tie into the existing irrigation equipment. Ornamental pots on the roof deck

will be irrigated with domestic water. Twenty five trees will be removed, two of which are

classified as protected trees, while twenty six trees will be planted in the courtyard. The new


plantings are drought tolerant and appropriate to the ecological setting. The existing light bollards

will be reused as pedestrian lighting.

Access and Circulation

Access to the project site is provided by a driveway located along Technology Drive that

provides four entries and exits. These driveways are shared amongst all the office buildings on

the project site.

Parking

This site is comprised of a total area of 730,000 square feet of office space and R&D, including

the proposed amenity building. The City’s Zoning Ordinance requires the following parking

calculations:

One parking space for every 350 square feet of office space

One parking space for every 300 square feet for R&D.

This requirement generates a demand of 2,434 parking spaces. The site currently satisfies this

requirement by providing 2,452 parking spaces on the project site.

Lot Combination

Pursuant to MMC Section XI-1-16.08, when a property owner of two or more contiguous lots

desires to combine the lots, the property owner shall file a lot combination application with the

City. If the City finds that the proposed lot combination is in conformance with the General Plan,

the Zoning Ordinance and the City’s development policies, the Department may approve the lot

combination. The lot combination (also known as a lot merger) is in compliance with the General

Plan and Zoning Ordinance, in regards to required lot size and lot width, as demonstrated in Table

3. Therefore, the City recommends approval of the lot combination.

Public Art

Per MMC Section XI-10-14.03 (A)(1), the applicant is required to provide public art. At the

discretion of the applicant, they may provide a financial contribution to be deposited into the Public

Art Fund for acquisition and placement of Public Art throughout the City. This requirement is

incorporated into the Conditions of Approval.

FINDINGS FOR APPROVAL (OR DENIAL)

A finding is a statement of fact relating to the information that the Planning Commission has

considered in making a decision. Findings shall identify the rationale behind the decision to take

a certain action.

Site Development Permit

To approve the Site Development Permit, the following findings must be made pursuant to

Milpitas Municipal Code Section XI-10-57.03(F)(1):


1. The layout of the site and design of the proposed buildings, structures and landscaping are

compatible and aesthetically harmonious with adjacent and surrounding development.

The project matches the architectural style of the existing industrial buildings onsite and the

building materials and colors are aesthetically compatible with the neighboring buildings

within the KLA campus. The building is composed of fiber cement panels that will be painted

in earthtone colors. The massing design maximizes the daylight and views from the building

through the large glazed façade. Shading devices will be installed throughout the building in

order to reduce energy costs, meet the required thermal performance, and provide a

comfortable indoor environment. Design elements from the existing buildings have been

incorporated into the new building, like the mullion modules and concrete panels. Materials

from outdoor patio areas into the building have been carefully selected in order to maintain a

seamless design language between inside and outside. The proposed landscaping plan focuses

on water conservation, adaptive reuse of water and human health and wellness components,

which creates a compatible and aesthetically harmonious site with adjacent and surrounding

development.

2. The proposed use is consistent with the Milpitas Zoning Ordinance.

The project site is zoned M1 (Light Industrial), and the proposed amenity building is ancillary

to the primary use (Research and Development) of KLA. As demonstrated in Table 3, the

project complies with the development standards as set forth in the Zoning Ordinance.

3. The proposed use is consistent with the Milpitas General Plan.

The General Plan designation for the project site is Highway Services. This classification

provides for motels, mobile home parks, and non-retail services such as car-rental offices.

Highway services are typically located at the intersection of major streets and/or freeways.

The project is consistent with the General Plan in that the project fosters beautification, new

economic, business and employment opportunities. As proposed, the project is in conformance

with the policies and standards in the City’s General Plan policies, as outlined in Table 2.

ENVIRONMENTAL REVIEW

The Planning Department conducted an environmental assessment of the project in accordance

with the California Environmental Quality Act (CEQA). By adoption of Resolution No. 14-022,

on January 8, 2014, the Planning Commission previously approved an Initial Study and Mitigated

Negative Declaration prepared for the development of this site. The original Initial

Study/Mitigated Negative Declaration was circulated for public review between December 18,

2013 and January 8, 2014. Staff has prepared an Addendum to the Initial Study and Mitigated

Negative Declaration Environmental Impact Assessment No. EA13-0005 pursuant to Section

15164 of the CEQA Guidelines. Pursuant to Section 15162, no substantial changes are proposed

in the project scope that would increase any significant environmental impacts that would

necessitate preparation of a supplemental or subsequent initial study, as there are no new

significant environmental effects or a substantial increase in the severity of previously identified

significant effects.. A copy of the Addendum (Exhibit 2 of Attachment A) as well as the original

Initial Study/Mitigated Negative Declaration (Attachment C) and mitigations are attached for the


Planning Commission’s review and consideration. The previously approved mitigation measures

are identified below and will be incorporated into the project as conditions of approval:

1. AES-1: Detailed architectural plans shall be submitted to the Planning Department for early

review and consultation.

2. AES-2: Design of buildings and structures shall be consistent with the scale and form of

existing development and design on site.

3. AES-3: No blank, or windowless walls or sides of buildings shall be allowed to face the

exterior of the site or be visible from State Route 237, Technology Drive, or South

McCarthy Boulevard.

4. AIR-1: The following measures shall be implemented during all construction activities:

a. Water all active construction areas and exposed surfaces (e.g., parking areas,

staging areas, soil piles, graded areas, and unpaved access roads) at least two times

per day.

a. Cover all trucks hauling soil, sand, and other loose materials or require all trucks to

maintain at least 2 feet of freeboard.

b. Pave, apply water three times daily, or apply (non-toxic) soil stabilizers on all

unpaved access roads, parking areas and staging areas at construction sites.

c. Sweep daily (with water sweepers) all paved access roads, parking areas, and

staging areas at construction sites.

d. Sweep streets daily (with water sweepers) if visible soil material is carried onto

adjacent public streets.

e. All vehicle speeds on unpaved roads shall be limited to 15 miles per hour.

f. All roadways, driveways, and sidewalks to be paved shall be completed as soon as

possible. Building pads shall be laid as soon as possible after grading unless seeding

or soil binders are used.

g. Idling times shall be minimized either by shutting equipment off when not in use

or reducing the maximum idling time to 5 minutes (as required by the California

airborne toxics control measure Title 13, Section 2485 of California Code of

Regulations).

5. AIR-2: Clear signage shall be provided for construction workers at all access points.

6. AIR-3: All construction equipment shall be maintained and properly tuned in accordance

with manufacturer’s specifications. All equipment shall be checked by a certified mechanic

and determined to be running in proper condition prior to operation.

7. AIR-4: Post a publicly visible sign with the telephone number and person to contact at the

City of Milpitas regarding dust complaints. This person shall respond and take corrective

action within 48 hours. The phone number of the Bay Area Air Quality Management

District shall also be visible to ensure compliance with applicable regulations.


8. AIR-5: To reduce construction related greenhouse gas impacts, the following measures are

required:

a. At least 15 percent of the construction vehicles/equipment shall be fueled by an

alternative source such as biodiesel and/or electric.

b. At least 10 percent of all building materials shall be local (within 100 miles); and

c. At least 50 percent of construction and demolition materials shall be recycled.

9. GHG-1: Reduce construction related greenhouse gas impacts by incorporating the

following measures are required:

a. At least 15 percent of the construction vehicles/equipment shall be fueled by an

alternative source such as biodiesel and/or electric.

b. At least 10 percent of all building materials shall be local (within 100 miles); and

c. At least 50 percent of construction and demolition materials shall be recycled.

10. GHG-2: Require bicycle parking for 10% of total required parking spots and bicycle

support facilities.

11. GHG-3: Provide public transit information in the employee break room and post

information such as Santa Clara Valley Transportation Authority bus and light rail

schedules, maps, and fares.

12. GHG-4: Facilitate ride sharing by providing sign-up sheets or other measures to allow

interested employees to identify carpooling opportunities.

13. GHG-5: Provide bicycling information and post information such as bicycle route maps

and information.

14. GHG-6: Pre-wire stalls for electric vehicle charging stations for 2% of new parking

capacity.

15. GHG-7: Expand existing rideshare programs to require mandatory inclusion of ridesharing

in employer TDM programs and preferential parking for rideshare vehicles.

16. TRANS-1: Provide public transit information in the employee break room and post

information such as Santa Clara Valley Transportation Authority bus and light rail

schedules, maps, and fares.

17. TRANS-2: Facilitate ride sharing by providing sign-up sheets or other measures to allow

interested employees to identify carpooling opportunities.

18. TRANS-3: Provide bicycling information and post information such as bicycle route maps

and information

19. TRANS-4: Pre-wire stalls for electric vehicle charging stations for 2% of new parking

capacity.


20. TRANS-5: Expand existing rideshare programs to require mandatory inclusion of

ridesharing in employer TDM programs and preferential parking for rideshare vehicles.

In order to mitigate any potential hazardous material impacts the following mitigation measure has

been added to the conditions of approval:

1. HAZ-1: Prior to the issuance of grading permits, shallow soil samples shall be taken to

determine if contaminants from previous agricultural operations occur at concentrations

above established construction worker and residential environmental screening levels for

pesticides. Any soil with pesticide concentration levels that exceed California State Title

26 threshold limits would be classified as a hazardous material. Once the soil sampling

analysis is complete, a report of the findings shall be provided to the Planning Manager of

the City of Milpitas Planning Department for review prior to issuance of grading permits.

If contaminated soils are found in concentrations above established thresholds for worker

safety, a Site Management Plan (SMP) shall be prepared by a qualified hazardous materials

consultant to establish management practices for handling contaminated soil or other

materials encountered during construction activities.

As a separate and independent basis, the project is exempt from further CEQA review pursuant to

Section 15183 of the California Environmental Quality Act, which applies to projects which are

consistent with the development density established by existing zoning, community plan, or

general plan policies for which an EIR was certified shall not require additional environmental

review, except as might be necessary to examine whether there are project-specific significant

effects which are peculiar to the project or its site. The project consists of a new amenity building

that complies with the City’s existing zoning, specific plan, community plan, and general plan.

Therefore, no further environmental review is required.

PUBLIC COMMENT/OUTREACH

Staff provided public notice of the application in accordance with city and state public noticing

requirements. At the time of publishing this report, there have been no public comments received.

A notice was published in the Milpitas Post on March 15, 2019. In addition, 14 notices were sent

to owners and residents within 300 feet of the project site. A public notice was also provided on

the project site, on the City’s Website, www.ci.milpitas.ca.gov, and posted at City Hall.

RECOMMENDATION

STAFF RECOMMENDS THAT the Planning Commission:

1. Open the Public Hearing to receive comments;

2. Close the Public Hearing;

3. Consider the Addendum in accordance with CEQA; and

4. Adopt Resolution 19-009, approving Site Development Permit P-SD18-0011 and Lot

Combination E-LC19-0001, subject to the findings and Conditions of Approval

ATTACHMENTS

A: Resolution No. 19-009

B: Project Plans


C: P-EA13-0005 Initial Study/Mitigated Negative Declaration

D: Mitigation Monitoring and Reporting Program

Documents

MILPITAS PLANNING COMMISSION STAFF REPORT · Building materials consist of fiber cement panels, metal canopies, curtain walls, and glass railings, as seen in Figure 2. The materials