Sunnyvale proposes $222,300 for Sunnyvale Saratoga Road median work

Sunnyvale proposed appropriating up to $222,300 for median improvements on Sunnyvale Saratoga Road between El Camino Real and Mathilda Avenue, in a project tied to development at 777 Sunnyvale Saratoga Road.

The proposal appeared as Item 1.D on the Sunnyvale City Council’s July 28, 2026, consent calendar. The agenda recommended approving a cost-reimbursement agreement with The New Home Company Northern California LLC and authorizing the city manager to execute it, along with approving Budget Modification No. 2 for $222,300. The city’s available meeting record lists the minutes as draft and does not establish that the agreement was finally approved, executed or placed into construction.

Roadway work tied to 777 Sunnyvale Saratoga Road

The city report describes the related project as a 242-unit multifamily development consisting of 80 townhomes and 162 apartment units. The draft reimbursement agreement separately refers to an 80-townhome development at the same address.

Condition of Approval EP-25 requires the developer to design and construct a public median on Sunnyvale Saratoga Road between El Camino Real and Mathilda Avenue. City staff said the median was recommended through Sunnyvale’s Roadway Safety Plan and that the city sought to accelerate the improvement.

The city documents describe a roadway-safety rationale, but they do not promise that the median would eliminate crashes or produce a specific traffic result.

Estimated cost and proposed funding split

The draft reimbursement agreement estimates the median’s total design and construction cost at $285,000. The city report breaks that estimate into $265,000 for construction, including a 15% contingency, and $20,000 for design.

The developer’s fair-share contribution would be 22% of the project cost, estimated at $62,700. Under the proposed agreement, Sunnyvale would reimburse eligible costs beyond that contribution up to a maximum of $222,300.

The proposed $222,300 budget modification would move Capital Improvement Projects Reserve funding from the General Fund into a new Sunnyvale Saratoga Road median project. The draft agreement states that costs exceeding the estimated project cost would remain the developer’s responsibility.

Planned median and streetscape elements

The planned work includes removal of existing street pavement, new curb and gutter, landscaping, irrigation, street trees, pavement, striping and traffic control. The project exhibit shows the proposed raised median along the specified Sunnyvale Saratoga Road corridor.

Under the draft agreement, the developer would handle design, permitting, construction and completion of the improvements. The agreement would take effect only after it was fully executed by the city and developer.

What residents should watch for

For drivers, pedestrians, nearby residents and businesses, the practical next steps are a final council action, execution of the reimbursement agreement and later construction or traffic-control notices.

Until those records are available, the median should be described as proposed or planned. The reviewed city materials do not establish that construction is underway or that the improvements have been completed.

Sources

• City of Sunnyvale File 26-0014 report to council