Summary

Council approves housing, utility, and business actions

SunnyvaleMay 6, 20264 min read

At a glance

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Sunnyvale City Council approved a large budget increase for the Cleanwater Program project, adopted the 2026/27 HUD Action Plan, confirmed a Downtown Business Improvement District assessment, and directed staff to study additional tenant protections instead of immediately changing the tenant ordinance.

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Budget & TaxCommerceHousingUtilities

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What this means

Council approved a $34.5 million increase to the construction contingency for the Sunnyvale Cleanwater Program project and a $38,258,785 budget modification tied to that work. It also adopted the draft 2026/27 Housing and Urban Development Action Plan and confirmed the Downtown Sunnyvale Business Improvement District assessment for fiscal year 2026/27, with no protests reported. On tenant protections, the Council did not introduce a new ordinance; instead, it told staff to study more protections for certain evictions, vulnerable residents, and ways to enforce existing rules. Council also continued a proposal to temporarily restrict smoke shops and regulate nitrous oxide sales until May 19, 2026, and approved an ordinance excluding the Murphy Station Heritage Landmark District from SB 79 provisions.

Key decisions

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Approved a $34.5 million increase to the Cleanwater Program construction contingency and a $38,258,785 budget modification, along with related contract changes for Psomas.
Adopted the draft 2026/27 Housing and Urban Development Action Plan.
Confirmed the Downtown Sunnyvale Business Improvement District annual report and levy for fiscal year 2026/27; no protests were received.
Did not introduce an ordinance to change the Residential Tenant Protections Program; instead directed staff to study additional tenant protections and possible enforcement measures.
Continued the urgency interim ordinance and related nitrous oxide regulation proposal to May 19, 2026.
Introduced an ordinance excluding the Murphy Station Heritage Landmark District from SB 79 provisions and updating the zoning map accordingly.

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Meeting information

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City Council

May 6, 2026, 12:00 AMOnline and Council Chambers, City Hall, 456 W. Olive Ave., Sunnyvale, CA 94086completed

Special Meeting: Closed Session - 5 PM | Regular Meeting - 7 PM

Agenda

Public Participation and Access
5 P.M. SPECIAL COUNCIL MEETING (Closed Session)
Call to Order
Roll Call
Public Comment
Convene to Closed Session
Closed Session Held Pursuant to California Government Code Section 54957.6: CONFERENCE WITH LABOR NEGOTIATORS Agency Designated Representatives: Heather Ruiz, Director of Human Resources Employee Organization: Sunnyvale Employees’ Association (SEA)/IFPTE Local 21 and Service Employees International Union (SEIU)
Closed Session Held Pursuant to Paragraph (1) of Subdivision (d) of California Government Code Section 54956.9: CONFERENCE WITH LEGAL COUNSEL-EXISTING LITIGATION Name of Case: C. Overaa & Co. v. City of Sunnyvale, Santa Clara County Superior Court Case No. 25CV462318; Initiation of Cross-Complaint
Adjourn Special Meeting
7 P.M. COUNCIL MEETING
CALL TO ORDER
SALUTE TO THE FLAG
ROLL CALL
CLOSED SESSION REPORT
SPECIAL ORDER OF THE DAY
Small Business Week
City Staff Recognition (Public Service Recognition Week, Public Works Week, and Municipal Clerks Week)
ORAL COMMUNICATIONS
CONSENT CALENDAR
Approve the List(s) of Claims and Bills Approved for Payment by the City Manager
Amend an Existing Contract with MRF Designs LLC for Consultant Services, Increase the Not-to-Exceed Amount to $372,850, and Extend the Term Through December 31, 2027 (F26-389)
Approve the Second Amendment to the Agreement with Bastion Security Services for Unarmed Security Patrol Services, Increasing the Not-to-Exceed Amount to $270,000 and Extending the Term Through May 14, 2027
Approve a $34,500,000 Increase to the Construction Contingency in the Construction Contract with Walsh Construction Company II, LLC for the Sunnyvale Cleanwater Program Secondary Treatment and Thickening/Dewatering Project (PW22-17); Authorize Amending an Existing Contract with Psomas for Construction Management Services (F15-40); and Approve Budget Modification No. 19 in the Amount of $38,258,785
Approve the Fiscal Year 2026/27 and Fiscal Year 2027/28 Sustainability Speakers Series Topics
PUBLIC HEARINGS/GENERAL BUSINESS
Public Hearing to Adopt a Resolution Confirming the Annual Report to Levy and Collect an Annual Assessment for the Downtown Sunnyvale Business Improvement District (BID) for Fiscal Year 2026/27
Introduce an Ordinance Amending Chapter 19.71 of the Sunnyvale Municipal Code (SMC) Relating to the Residential Tenant Protections Program
Consider Approval of Draft 2026/27 Housing and Urban Development (HUD) Action Plan
Introduce an Ordinance of the City of Sunnyvale Amending Chapter 19.96 (Heritage Preservation) of Title 19 (Zoning) of the Sunnyvale Municipal Code Temporarily Excluding the Murphy Station Heritage Landmark District Located at the 100 Block of South Murphy Avenue and Surrounding Parcels that Make up the Heritage Landmark District, a Historic Resource on the Local Historic Register, from Applicability of SB 79 Provisions, and Amending the Zoning Map to add a Note Indicating this Exclusion (File No. PLNG-2026-0118)
Proposed Project: Adopt an Urgency Interim Ordinance Pursuant to Government Code Section 65858 Adopting a Temporary Moratorium on the Establishment and Operation of “Smoke Shops,” as Defined, and Introduce an Ordinance to Regulate the Sale and Distribution of Nitrous Oxide within the City of Sunnyvale. Location: Citywide File #: PLNG-2026-0232 Environmental Review: Exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3)), would not result in a significant impact. Staff: Rebecca Moon, (408) 730-2700, rmoon@sunnyvale.ca.gov
COUNCILMEMBERS REPORTS ON ACTIVITIES FROM INTERGOVERNMENTAL COMMITTEE ASSIGNMENTS
NON-AGENDA ITEMS AND COMMENTS
-Council
-City Manager
INFORMATION ONLY REPORTS/ITEMS
Tentative Council Meeting Agenda Calendar
Board/Commission Meeting Minutes
Mayoral Announcement of Mayor-Appointed Ad Hoc Advisory Committee on Boards and Commissions (Information Only)
ADJOURNMENT
Public Participation Options
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Written public comment:
Public review of items:
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Language Access and Translation
Translation Link: https://bit.ly/TDDB-6886
Accessibility/Americans with Disabilities Act (ADA) Notice
LEGAL NOTICES
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Council approves housing, utility, and business actions

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