Previous Council Item

 Next Council Item Corresponding Agenda
List of Council Meetings List of Reports to Council Sunnyvale Home Page

 

RTC#03-208

June 10, 2003

SUBJECT:

POSTPONEMENT OR CANCELLATION OF SELECTED STUDY ISSUES DUE TO IMPACTS OF THE CITY’S FISCAL CRISIS.

REPORT IN BRIEF

Due to the fiscal crisis in Sunnyvale, and subsequent recommendations to Council for budget reductions in 10 of 11 departments, City staff will not be able to complete all of the study issues currently on the 2003 Study Issue calendar.

BACKGROUND

Staff requests reconsideration of 11 study issues currently on the 2003 Study Issue calendar. Of those 11 study issues, staff requests postponing 6, canceling 3, and is giving advance notification to Council of a delay on 2 of them.

Requests for reconsideration come from impacts of the budget reduction recommendations. Completion of the 11 study issues is threatened due to:

  1. Production capacity of staff: Elimination of personnel, position vacancies due to a selective hiring freeze, or restructuring of personnel assignments in departments limit the production capacity of existing staff to complete work.
  2. Financial limitations: Recommended budget reductions do not provide funds for completion of necessary components of study issues. Also, pursuing some study issues requiring additional expenditures may be inappropriate at this juncture.

EXISTING POLICY

There are five policies that support the study issue process and real-time amendment of the study issue calendar. They are:

Action statement 7.2C.2a: Notify appropriate citizens and community groups about opportunities for involvement in policy making and program planning.

Action statement 7.2C.2d: Ensure that public notification measures are proportionate to the magnitude and public sensitivity of issues, in addition to the minimum legal and policy requirements for notification and access.

Goal 7.3B: Assure that City policy is established, documented and enacted according to established procedures and legal principles.

Policy 7.3B.3: Prepare and update ordinances to reflect current community issues and concerns in compliance with State and Federal laws.

Action statement 7.3B.3b: Consider changes to ordinances to reflect changes in community standards and State and Federal laws.

DISCUSSION

The City of Sunnyvale's budget crisis created an estimated $11-$17 million gap between expenses and revenues in the General Fund. The General Fund gap is now projected to be $14-$15 million annually for the next 20 years.

If the City Council adopts the City Manager’s recommended reductions, services will be reduced to our residents, businesses, and visitors. A total of 64.9 full time and 14.9 part time positions (144,446 work hours) will be eliminated from the workforce.

With reductions in program budgets and workforce, City staff will not be able to complete all of the study issues assigned by Council in December. Staff requests that Council postpones or cancels 11 current study issues.

The study issues recommended for cancellation are:

  • Temporary Employment Policies (scheduled June 17 and July 15, 2003)

A conclusion of the study to provide additional benefits would create an additional expense during a time when the City does not have the ability to meet the expense.
  • Presentation of Current Practices Relative to ADA and Accessibility (scheduled for July 15, 2003)

Not technically a study issue but requested by Council, staff requests this issue be cancelled due to production capacity issues created by additional budget preparation and the mall parking deck.
  • Feasibility of Establishing a Telecommunication Commission (scheduled November 11, 2003)

The reduction of a Technical Support Manager position and a vacancy in the Administrative Analyst position creates a production capacity limitation, and the potential creation of a commission would place an additional time and workload burden on the department.

The study issues recommended for postponement are:

  • Webcast City Council Meetings (scheduled May 6, 2003)

The IT department has insufficient staffing resources to complete this study issue due to a vacancy for an Administrative Analyst and the reduction of a Technical Support Manager.
  • Concept of Digital Marquee at Corner or Wolfe and El Camino (scheduled August 12, 2003)

In addition to concerns about staff workload, a digital marquee would likely cost tens of thousands of dollars which staff believes would be an imprudent expense during this budget crisis.
  • Revision of Open Space and Recreation Sub-Elements – workplan only (scheduled September 16, 2003)

Staff recommends reducing appropriations for this project from $50,000 to $40,000 which may eliminate some flexibility in the process, and moving the projected start date to 2004 for staff to adjust to service level and staff reductions.
  • Pedestrian Safety Opportunities Study (scheduled March, 2004)

Staff recommends deferring this item as funding was not provided due to the budget situation.
  • Update Fiscal Sub-Element (scheduled October 2004)

Staff recommends postponement of this ongoing/unscheduled project due to proposed elimination of Management Analyst position and subsequent production capacity limitations that this vacancy will create for remaining staff
  • Assess Future Library Needs – Workplan Implementation (scheduled tbd)

Funding ($287,180 over two years) would have been used to hire a casual manager to oversee the project and engage consultants to conduct a formal needs assessment, as the Library does not have in-house expertise for these activities or the staff to oversee special projects.

Two study issues are listed as advance notice of delay (deadline may slip due to staff workload):

  • Mathilda Avenue Bridge Improvements (scheduled August 19, 2003) - contingent on Council approving funds in budget

This project is on hold until final budget adoption by the City Council, and a new schedule will be developed once the State budget issues are resolved.
  • Revisions to the Council Co-Sponsorship Policy (scheduled October 21, 2003)

May need to be postponed due to workload.

The attachment "Study Issues Impacted by Budget Reductions" provides detailed rationale for postponement or cancellation of each study issue.

FISCAL IMPACT

Retention of these study issues will require budget modifications, adjustment of staffing reductions, and allocation of necessary funds in the 2003-2004 budget. In some cases, the cost of doing the study is precluded by the potential cost of implementation.

  • Temporary Employment Policies: Cost of study $12,000-15,000; 180 estimated total work hours. Implementation expected to be cost prohibitive.
  • Presentation of Current Practices Relative to ADA and Accessibility: Cost of study unknown - not originally a formal study issue
  • Feasibility of Establishing a Telecommunication Commission: Cost of study $8,000; 90 estimated total work hour
  • Webcast City Council Meetings: Cost of study $10,000; 105 total estimated work hours
  • Concept of Digital Marquee at Corner or Wolfe and El Camino: Cost of study unknown; 80 total estimated work hours. Implementation expected to be cost prohibitive.
  • Mathilda Avenue Bridge Improvements: Cost of study n/a; 3925 estimated total work hours
  • Revision of Open Space and Recreation Sub-Elements – workplan only: Cost of study $55,000; 1210+ estimated total work hours
  • Pedestrian Safety Opportunities Study: Cost of study $40,000; 510 estimated total work hours
  • Update Fiscal Sub-Element: Cost of study $50,000; 460 total estimated work hours
  • Assess Future Library Needs – Workplan Implementation: Cost of study n/a; 1175 estimated total work hours
  • Revisions to the Council Co-Sponsorship Policy: Cost of study unknown; 280 estimated total work hours

Please see the attachment "Study Issues Impacted by Budget Reductions" for further information regarding the fiscal impact of each.

PUBLIC CONTACT

Public Contact was through posting of the Council Agenda on the City’s official notice bulletin board, posting of the agenda report on the City’s webpage, publication of the Council Agenda in the San Jose Mercury News, and the availability of the report in the City Clerk’s office and in the Library.

ALTERNATIVES
  1. Accept all recommendations.
  2. Accept selected recommendations. Make budget modifications as necessary to retain study issues selected by Council.
  3. Retain all study issues. Make necessary budget modifications to complete work.

RECOMMENDATION

Staff recommends Council approve Alternative #1: accept all recommendations.

Prepared by:
Robert S. LaSala
City Manager

Attachments

  1. Study Issues Impacted by Budget Reductions

Previous Council Item

 Next Council Item Corresponding Agenda
List of Council Meetings List of Reports to Council Sunnyvale Home Page