REPORT TO COUNCIL
SUBJECT
Title
Public Hearing: Action to Approve Amendments to the proposed 22 Unit Single Family Residence Project at 1957 Pruneridge Avenue to Allow for the Installation of Natural Gas Stovetop Appliances.
Report
BACKGROUND
On February 19, 2025, SCS Development Company (“the applicant”) filed an application (File No. PLN25-00073) to amend Condition of Approval P23 of the approved Planned Development (PD) (File No. PLN22-00505) to construct 22 single-family detached two-story residences with a private street and associated on- and-offsite improvements on the 2.47-acre site.
The subject property is located on north side of Pruneridge Avenue, approximately 250 feet west of Winchester Boulevard (see Attachment 1 for a vicinity map). The project site was previously developed with a church and an associated office/school building. On March 19, 2024, the City Council approved a rezone of the subject property from Public, Quasi-Public, and Public Park or Recreation (B) to Planned Development (PD) to allow the construction of the residential development with 22 single-family detached two-story all-electric residences, private street and associated on- and-off-site improvements, and a Vesting Tentative Subdivision Map to subdivide the property into individual for-sale lots and four common lots for use as a utility corridor, vehicle access, landscape open space and bioretention areas. Fifteen percent of the total number of units (or three units) are required to be affordable housing units.
As approved, the units would have been considered “all electric”, as all appliances would have only been supplied by electric power, thus meeting the City’s previous Reach Code energy requirements. As proposed, the modified project would retain all the project design features of the approved project, except that the project would no longer be supplied by 100-percent electric power and would allow for natural gas connections to operate stovetop appliances. The ovens in each unit would remain electrically powered.
Since the approval of the initial project, the developer obtained demolition and building permits. The site has been cleared, and some ongoing construction activities include the construction of the units, and installation of infrastructure and utilities.
Condition of approval P23 of the PD provides that the installation of natural gas infrastructure requires an amendment to the PD zoning, review by the Planning Commission and approval by the City Council.
On October 8, 2025, the Planning Commission conducted a public hearing and unanimously recommended approval of the request.
DISCUSSION
The developer proposes to amend the approved PD to replace the electric stovetop appliances in each of the approved units with natural gas stovetop appliances. The oven appliances in each unit would remain electric, consistent with prior approval. The developer states that the modification is necessary to meet market demands and provide flexibility during power outages. In accordance with the Condition of Approval P23 of the approved PD, installation of natural gas infrastructure requires an amendment to PD zoning and review by the Planning Commission and approval by Council.
Considerations
The following summarizes the requests and the key considerations for the project. The Planning Commission staff report includes a detailed analysis of the project and is included as Attachment 2. Project development plans are also included within Attachment 2.
General Plan Conformance
The existing General Plan designation for the project site is Very Low Density Residential. The approved project provides 8.9 du/ac, consistent with the General Plan designation for the project site, Very Low Density Residential. As proposed, the modified project would retain all the project design features of the approved project, except that the project would no longer be 100 percent electric.
Although the proposal is not fully consistent with the 2022 Climate Action Plan (CAP) goal of achieving net-zero emissions, or the General Plan policy to reduce greenhouse gas (GHG) emissions and air pollutants, the cumulative GHG impact from the inclusion of natural gas stovetop appliances is expected to be minimal. To mitigate this impact, the modified project will include a Transportation Demand Management (TDM) plan, pursuant to an adopted Mitigation Measure, which will offset the increase in GHG emissions by reducing the number of project-generated vehicle trips. Additionally, the City is currently updating its Reach Code to transition from the previously adopted “all-electric” requirement-suspended by the City Council in January 2025-to a new “energy performance” framework, allowing for greater flexibility in meeting energy efficiency targets. All residential units will be constructed as “electric-ready,” ensuring that future homeowners have the option to convert to electric stovetops if desired.
Zoning Conformance
The proposal to replace the approved electric stovetop appliances in each of the units with natural gas stovetop appliances does not alter the site plan, access or parking of the approved project. Project construction would only be slightly adjusted to connect the gas utilities to the site. However, the 2024 PD approval also expressly cited the all-electric nature of the project as a justification for granting the rezoning.
Planning Commission Meeting
At the October 8, 2025, Planning Commission meeting, staff presented an analysis of the project’s conformance with the General Plan and Zoning Code. During the meeting, the Commission had questions regarding the topics below; the topics are listed first and the summary follows:
Reach Code Update
In response to the Commission’s question regarding the status of the City’s Reach Code update, staff explained that the City is currently in the process of revising the Reach Code to replace the previously suspended “all-electric” requirement (suspended by Council in January 2025) with an “energy performance” approach. This new approach would provide greater flexibility in meeting overall energy efficiency goals, potentially through measures such as a Transportation Demand Management (TDM) plan or the incorporation of solar energy.
Staff further clarified that, since this project is a Planned Development and is subject to a specific condition (Condition P23) prohibiting the use of natural gas, the proposed modification would still require Council approval, even if the Reach Code does not currently mandate all-electric construction.
Reason for the Request to use Natural gas stovetops
Responding to Commission’s question regarding the request to use natural gas stovetops instead of electric stovetops, the Applicant explained that market research indicates gas stovetops are currently more popular among homebuyers, primarily due to their superior cooking performance.
The Applicant also noted that all units will be electric-ready, allowing future homeowners the option to switch to electric stovetops if desired.
Project Construction update
In response to the question regarding the project’s construction timeline, the Applicant stated that the tentative completion date is anticipated sometime in 2026.
Reason for not including Natural Gas in the initial project proposal
In response to the Commission’s question regarding why natural gas was not included in the initial proposal, the Applicant explained that the Reach Codes in effect at the time of submittal did not permit the use of natural gas.
Natural Gas Infrastructure and Cost Implications
The Applicant shared that they have coordinated with PG&E to extend natural gas service to each unit and have incorporated this change into the construction plans submitted to the Building Division. They also clarified that the associated costs will not be passed on to future homeowners and are not intended to increase the price of the new units.
There were no public comments at the Public Hearing. At the end of the discussion, the Planning Commission unanimously voted to recommend approval of the project to the City Council.
Action Proposed
The Project is now presented for City Council consideration and action. The following specific actions are required.
1. Approve a Mitigated Negative Declaration
An Initial Study and Mitigated Negative Declaration (MND) was prepared for the proposed amendments to the project. To approve the MND, the Council must find the project will not have a significant effect on the environment after mitigation, based on the Council’s independent judgment. As detailed in the Environmental Review section below, the MND concludes that all potential impacts will be reduced to less than significant after mitigation.
2. Amend the Approved Plan Development
Amend the approved Planned Development (PD) Zoning General Plan Amendment for the 22 single-family detached two-story all-electric residences to allow for the installation of natural gas stovetop appliances. Here, the proposal to replace the electric stovetop appliances in each of the approved units with natural gas stovetop appliances, on balance, will still be consistent with the General Plan goals of increasing the housing supply and overall energy efficiency in a development.
The proposed modification to the rezoning is a legislative act, and the Council has a significant degree of discretion in making these decisions. As a result of a Federal Appeals Court ruling involving the City of Berkeley, on January 14, 2025, the City Council indefinitely suspended the all-electric provisions of the Reach Code. For this project, however, the developer committed to all-electric construction as a condition of the Council’s approval of the rezone from Public, Quasi-Public, and Public Park or Recreation (B) to Planned Development (PD), and the commitment to all-electric construction was cited by the Council in its findings approving the PD zoning. Changing course now would require a legislative action to amend the PD zoning, and as a result, the Berkeley case does not affect the Council’s discretion to approve or disapprove the requested modification.
Staff Recommendation
Staff recommends that the City Council approve the request by approving the modification to the approved 2024 PD to replace the approved electric stovetop appliances in the project with natural gas stovetop appliances since doing so does not alter the site plan, access or parking of the approved project. Project construction would only be slightly adjusted to connect the gas utilities to the site.
Further, the addition of natural gas stovetops will respond to market demand and add value to the residences. In addition, the inclusion of natural gas stovetop appliances does not represent a significant policy shift, especially given the City’s current effort to draft a revision to its Reach Code to include an “energy performance” approach that may expressly allow for natural gas stovetop appliances soon. In addition, the project will be electric-ready, allowing future homeowners the option to switch to electric stovetops if desired.
As an alternative, the Council has the option to deny the request. Because the developer committed to not use methane to obtain the PD zoning in 2024, and the all-electric construction is one of the stated reasons for granting the PD zoning, there is no obligation to reverse course and allow methane just one year later.
ENVIRONMENTAL REVIEW
On March 19, 2024, the City Council certified the Environmental Impact Report (EIR) that was prepared for the approved project by the environmental consultant firm David J. Powers & Associates, in accordance with the California Environmental Quality Act (CEQA). The DEIR examined potential environmental impacts associated with project development and identified significant impacts on biological resources, cultural resources, and geology and soils. Mitigation measures were identified for implementation that would reduce most of the significant project development impacts to less than significant levels. However, significant unavoidable project level and cumulative cultural resources impacts were identified to remain with demolition of the church, which was identified as being eligible for listing as an architecturally significant local structure, to redevelop the site.
To analyze the proposal to allow for the use of natural gas by replacing the approved electric stovetop appliances in each of the 22 units with natural gas stovetop appliances, an Initial Study/Mitigated Negative Declaration (IS/MND) was prepared for the project by the environmental consultant firm David J. Powers & Associates, in accordance with the California Environmental Quality Act (CEQA). The (IS/MND) and Notice of Availability were posted on the City’s website and available for public review for 20-days between July 18, 2025, and August 7, 2025, in accordance with CEQA requirements.
The IS/MND analyzed potential impacts on Air Quality, Energy, Greenhouse Gas Emissions, Land Use and Planning and found the impacts to be the same as the approved project except for the Greenhouse Gas emissions, due to inclusion of natural gas stovetop appliances. An additional Mitigation measure was added that would reduce the new Greenhouse Gas Emissions impact to a less than significant level. Staff received one comment on the IS/MND during the 20-day review period by the Amah Mutsun Tribal Band of San Juan Bautista & AMTB. A response to their comment letter was prepared and posted on the City’s website, for which a weblink can be found in Attachment 2.
FISCAL IMPACT
There is no fiscal impact to the City for processing the requested application other than administrative time and expense typically covered by processing fees paid by the applicant.
COORDINATION
This report has been coordinated with the City Attorney’s Office.
PUBLIC CONTACT
On September 15, 2025, the notice of public hearing for this item was mailed to property owners within 1,000 feet of the project side boundaries and interested parties. Newspaper notice of this item was also published in The Weekly, a newspaper of general circulation. At the time of this staff report, no comments have been received by the Planning Division in support or opposition to the project.
Community Meetings
Virtual public outreach meetings were conducted by the Property Owner/Applicant for the original project on November 16, 2022, and August 30, 2023, to engage the neighborhood community in the planning process. Notices of the meetings were mailed by the Property Owner/Applicant to 938 properties within 1,000 feet of the project site boundaries and posted on the City’s website. Concerns / issues raised by residents at the meeting included property maintenance, construction activities, site circulation and parking, shade and shadow, and privacy. These meetings provided the community opportunities to review and comment on the proposal and revised changes made to the dwellings, site circulation and landscaping resulting from community input.
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
1. Adopt a resolution to adopt the Mitigated Negative Declaration (MND) and the Mitigation Monitoring and Reporting Program (MMRP) for the 1957 Pruneridge Avenue Residential Project Amendment.
2. Adopt a resolution to amend the approved Planned Development (PD) Zoning (PLN22-00505) for the 22 single-family detached two-story all-electric residences at 1957 Pruneridge Avenue to allow for the installation of natural gas stovetop appliances fated, subject to conditions of approval.
Staff
Reviewed by: Afshan Hamid, Director, Community Development Department
Approved by: Jovan Grogan, City Manager
ATTACHMENTS
1. Vicinity Map
2. Planning Commission Staff Report of October 8, 2025
3. Web Links to the Project Page and CEQA documents
4. Resolution Adopting the MND and MMRP
5. Resolution Approving the Amendment to approved Planned Development (PD)
6. Conditions of Approval
7. Development Plans