October 21, 2003
SUBJECT: Position on Local Ballot Measure for November 4th Election
REPORT IN BRIEF
The November 4th 2003 ballot will present many Sunnyvale voters with Measure D, a bond measure for the reconstruction of El Camino Hospital. This report summarizes Measure D, provides available City policies on the issue, and a staff recommendation. Generally, staff only recommends a position if there is an existing City policy on the issue or significant impact on the City.
BACKGROUND
Staff is providing this report to afford the City Council an opportunity to take a public stand on the November 4th local ballot measure. Currently, there is only one measure that will impact Sunnyvale residents (Measure D). Staff’s recommendations are generally based on existing City policies from documents such as the General Plan and the Legislative Action Policies. Past positions of the Council also guide staff recommendations. New positions taken by the Council will become official policies of the City and will be added to the Legislative Action Policies.
EXISTING POLICY
General Plan Socio-Economic Sub-Element, Policy 5.1H.10: Encourage adequate provision of health care services to Sunnyvale residents.
General Plan Socio-Economic Sub-Element, Action Statement 5.1H.10b: Assure that adequate medical care facilities are available to Sunnyvale residents.
General Plan Socio-Economic Sub-Element, Action Statement 5.1H.10e: Support an active role in the El Camino Hospital District and assure that its services address community needs.
DISCUSSION OF MEASURE D
Summary: The passage of Measure D would allow the El Camino Hospital District to issue bonds in the amount of $148,000,000 to make seismic upgrades to meet recently adopted strict California earthquake standards, and to expand and enhance emergency and other hospital facilities. To fund the bonds, property owners within the El Camino Hospital District would be assessed $12.90 per $100,000 of their property’s assessed value (not market value) each year up to forty years. The El Camino Hospital District encompasses 65 of the 116 precincts in Sunnyvale (56% of the City’s precincts). Two-thirds voter approval is required to pass this measure.
Fiscal Impact: If Measure D passes, principal and interest on the bonds will be payable from the proceeds of a tax levied on taxable property within the El Camino Hospital District. City of Sunnyvale property owners living within the Hospital District will be assessed $12.90 per $100,000 of their property’s assessed value (not market value) each year up to forty years.
Proponents: Proponents argue that the hospital needs to meet strict seismic safety standards under a recently enacted state law. Measure D ensures that El Camino’s emergency services will be available to the community in the aftermath of a major quake. Measure D will also enlarge emergency room facilities, implement a new communications system, and provide the latest medical technology for the diagnosis and treatment of cardiac and cancer patients.
Opponents: Opponents argue that only a small portion of the main hospital building needs to be seismically retrofitted to meet new state law. The hospital could finance this project independently, without depleting its reserves, and without adding to the taxpayers’ burdens in a depressed economy. Opponents argue that Measure D is unfair because not all District taxpayers access their healthcare at El Camino Hospital. Also, those who live outside of the taxed district would still be able to access the hospital at the same rate as district residents.
City Policy
General Plan Socio-Economic Sub-Element, Policy 5.1H.10: Encourage adequate provision of health care services to Sunnyvale residents.
General Plan Socio-Economic Sub-Element, Action Statement 5.1H.10b: Assure that adequate medical care facilities are available to Sunnyvale residents.
General Plan Socio-Economic Sub-Element, Action Statement 5.1H.10e: Support an active role in the El Camino Hospital District and assure that its services address community needs.
Staff Recommendation: There is no specific City policy on the issuance of bonds to finance the renovation of El Camino Hospital. Staff recommends that Council take no position on Measure D.
FISCAL IMPACT
There is no fiscal impact to this report. Fiscal impact of the ballot measure has been included in the discussion.
PUBLIC CONTACT
Public contact was made through posting of the Council agenda on the City's official notice bulletin board, posting of the agenda and report on the City's web page, publication of the Council agenda in the San Jose Mercury News, and the availability of the report in the Library and the City Clerk's Office.
ALTERNATIVES
1. Council takes no position on Measure D.
2. Council takes a position for or against Measure D.
3. Council takes no action at this time.
RECOMMENDATION
Staff recommends Alternative 1.
Prepared by:
Peter Bassett
Community Outreach Coordinator
Reviewed by:
Coryn Campbell
Neighborhood and Community Services Manager
Reviewed by:
Amy Chan
Assistant City Manager
Approved by:
Robert S. LaSala
City Manager