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14. Public Hearing: Adopted and waived full reading of Resolution 21-1221 approving the City of Pleasanton 2020 Draft Urban Water Management Plan, Draft Water Shortage Contingency Plan, and Addendum to the 2015 Urban Water Management Plan Update MOTION: lt was m/s by Arkin/Testa to approve the Consent Calendar as submitted. Motion passed by the following vote: Ayes: Councilmembers Arkin, Balch, Narum, Testa, Mayor Brown Noes: None Absent: None MEETING OPEN TO THE PUBLIC 15. Public Comment - None PUBLIC HEARINGS AND OTHER MATTERS 17. Public Hearing: Review background and provide policy direction on the Active Ground Floor Use Overlay in the Downtown Specific Plan Senior Planner Shweta Bonn reported the 2019 DSP contains several policies regarding active ground floor uses and defined the Active Ground Floor Use Overlay (AGFUO) as promoting an active pedestrian environment including uses such as retail and restaurants. Senior Planner Bonn explained that for multi{enant buildings the AGFUO applies to tenant spaces with frontage on Main Street and/or areas like the Pleasanton Civic Center site. She advised that for multi- use spaces a minimum of the first 25% of the depth of the space must be occupied by active use. She noted this provision was the subject of a recent appeal to the Planning Commission and is the focus for this item from prior City Council discussions. She noted there are exceptions to the AGFUO for a vacancy of at least six months, the tenant space having less than 10 feet of storefront Main Street frontage, or if the tenant in an existing purpose-built building with a bank or financial institution is its primary tenant. Senior Planner Bonn advised the February 2021 appealto the Planning Commission stemmed from the applicant modifying their business plan to incorporate more retail, reaching the 25% threshold, with the rest of the area being office space. She reported the Planning Commission upheld the applicant's appeal but discussed the AGFUO policies and noted they did not think the policy's language was well- articulated which makes it unclear and created this loophole. She noted the Commission questioned whether a store-front display should be counted in the 25% and whether the threshold is adequate. Senior Planner Bonn advised staff recommends making the active component occupy at least 60% of the tenant's space to make it a majority of the usage and to ensure the non-acttve component be located in the rear of the space so that it is not prominent or visible from the street. She advised comments received for this meeting's discussion focused on the operation of an active- use business, the protection of historic buildings, concerns about a downtown retail quota, and concerns about overregulating downtown businesses. Direction from the City Council on this issue would be taken back to the Planning Commission, Pleasanton Downtown Association, and Chamber of Commerce for feedback. Staff would return to City Council with draft modifications to the DSP and Pleasanton Municipal Code (PMC) for review and adoption. ln response to Councilmember Arkin's inquiries, Director of Community Development Clark confirmed they would like direction on whether display areas should count towards the active use space City Council Minutes Page 3 of 10 June 1,2021