August 10, 2004

SUBJECT: Agreement between City of Sunnyvale and Sunnyvale Community Services for Support in the Delivery of Recreational Services (04-275)

In accordance with City Council's policy governing "Relationships with Outside Groups," this report reviews a proposed agreement between the City and , an independent, non-profit group providing support to the City for the continued administration of the City's Recreation Fee Waiver Program and for the administration of a portion of interest from the Swirsky Youth Opportunity Trust Fund.

Staff recommends that Council approve the new Agreement dated June 1, 2004, and authorize the City Manager to enter into said Agreement on behalf of the City.

Since 1981 when the City's Recreation Fee Waiver Program was started, has consistently provided support to the City by administering this program for disadvantaged families to have access to City recreation programs and services. However, there was never a formal, written agreement. On November 11, 2003, City Council approved the use of proceeds from the sale of the Dorolou Swirsky house to supplement the City's Recreation Fee Waiver Program using one-third of the interest generated by the Fund to be "used to provide Summer recreational equipment and supplies to disadvantaged youth through an agreement with Sunnyvale Community Services." This is an opportunity to develop an agreement that covers not only the administration of the Swirsky Youth Opportunity program, but also to capture the relationship between the two agencies and our roles in the administration of the City's Recreation Fee Waiver Program. Staff presents this proposed agreement in accordance with City Council’s Relationships with Outside Groups Policy.

EXISTING POLICY

Partnering with members of the community to provide to the Sunnyvale community is supported by the following City policies:

Sunnyvale General Plan, Recreation Sub-Element:
Policy 6.1B.2:	Develop effective partnerships to address the complex needs of youth.
Policy 6.1B.3:	Foster and encourage partnerships with co-sponsored groups and outside funded groups in order to address the community's diverse recreational needs
Policy 6.1C.2.a:	Leverage available resources by pursuing co-funded and/or cooperative agreements for both expansion and maintenance of programs, facilities and services, in order to maximize benefits to the community.
Policy 6.1C.4:	Provide a system to allow persons who are economically disadvantaged to participate and use programs, facilities, and services.
Policy 6.1C.4a:	Evaluate the effectiveness of the Fee Waiver Program and the criteria to determine eligibility, and make appropriate adjustments.
Sunnyvale Legislative Policy:
Policy 7.2.6	Relationships with Outside Groups Policy
Council Action 11/11/03	RTC # 03-392 Sale of Dorolou Swirsky House - 1133 Hollenbeck Road

Sunnyvale Community Services has, in effect, been partnering with the City for over 20 years and has administered the City's Recreation Fee Waiver Program without a formal written agreement with the City. The City's new "Relationships with Outside Groups" policy suggests it would be appropriate to memorialize the City's relationship with Sunnyvale Community Services in writing. In accordance with previous Council action "to provide summer recreation equipment and supplies to disadvantaged youth through an agreement with Sunnyvale Community Services" (See RTC # 03-392), the proposed agreement includes the administration of one-third of the revenues from the Swirsky Youth Opportunity Trust, along with the services Sunnyvale Community Services has been providing all along – the administration of the City's Recreation Fee Waiver Program.

Over the next year, the City's Parks and Recreation Department hopes to take a much broader look at how recreation services are delivered to the community. As a part of that review, staff would evaluate its program priorities and among those, it's future relationship with Sunnyvale Community Services. Coincidentally, Sunnyvale Community Services finds itself facing difficult financial times due to an increasing demand for its staff resources and services. Therefore, Community Services is requesting a one-time payment of $10,000 for Fiscal Year 2004/2005 to cover its cost to administer the City's Fee Waiver Program. This is the portion that requires staff to explain the program to qualified applicants, and monitor and track the applicants' use of the fee waivers for various recreational programs in which they choose to participate. During Fiscal Year 2004/2005, City staff will be evaluating a number of options to continue the provision of that portion of the program which may range from absorbing it with or without additional resources and/or re-evaluating the agreement with Sunnyvale Community Services for future years. Because the proposed new agreement has a 90-day cancellation clause, staff finds the $10,000 reasonable and the "right thing to do," to implement Council policy and tie the City over until all options are more fully examined over the next year. Without Sunnyvale Community Services providing these services to the City, additional City staff time would be needed to qualify individuals and families to participate in the City's Recreation Fee Waiver Program and to provide the services proposed in the Swirsky Youth Opportunity Trust. Community Services estimates that up to 1000 families may apply for fee waivers each year, and the administration of this program can require two individuals at different times to meet with the applicants and explain the programs using multiple languages. These programs provide recreational opportunities to disadvantaged youth and families residing in Sunnyvale and are in keeping with City policies to maximize benefits to residents of Sunnyvale.

Staff proposes the City enter into an agreement with whereby the organization provides support to the City by:

• Administering the City's Recreation Fee Waiver Program through June 30, 2005 for a charge of $10,000 to the City.

• Administering a portion of the City's Dorolou P. Swirsky Trust Fund per Council's direction on November 11, 2003 (RTC # 03-392), starting in FY 2005/2006.

In exchange, the City will provide:

• A one-time payment of $10,000 to cover Sunnyvale Community Services' costs to provide fee waiver services through June 30, 2005.

• Referrals of potential applicants for the City's Recreation Fee Waiver Program to Sunnyvale Community Services.

• One-third (1/3) of the interest generated annually by the Dorolou P. Swirsky Trust Fund.

Staff provides the new Agreement dated June 1, 2004, for Council consideration. (Attachment A)

A one-time payment of $10,000 for Sunnyvale Community Services to administer the Recreation Fee Waiver Program will be paid from the Community Recreation Fund in FY04/05. Based on previous year's actual use, this can be absorbed within the existing fee waiver budget without negatively impacting the number of individuals served by that program. During FY 04/05, staff will analyze various options to provide this service, including the possibility of the City assuming a portion of the administration of the fee waiver program to avoid future payments to Sunnyvale Community Services.

Current year interest from the Dorolou P. Swirsky Trust Fund will be returned to the endowment base and Sunnyvale Community Services will begin the administration of a portion of that program beginning in FY 2005/2006.

Public contact was made through posting of the and Council agenda on the City’s official notice bulletin board, posting of the agenda and report on the City’s web page, and the availability of the report in the City Clerk’s office, Library, Parks and Recreation Administration office, Corporation Yard, Community Center and Senior Center.

On July 14, 2004, the provided a public hearing of this report during its regularly scheduled meeting. On July 21, 2004, the Arts Commission provided a public hearing of this report during its regularly scheduled meeting.

Copies of this report have been provided to Ms. Nancy Tivol, Executive Director of .

1. Approve the five year Agreement, depicted by Attachment A, for the administration of a portion of interest from the Swirsky Youth Opportunity Trust Fund and the administration of the City's Recreation Fee Waiver Program dated June 1, 2004, and authorize the City Manager to enter into said Agreement.

2. Other action as determined by Council.

Staff recommends Alternative No. 1.

The Parks and Recreation Commission reviewed this report on July 14, 2004, and recommended Alternative No. 1. (5-0 carried unanimously).

The Arts Commission reviewed this report on July 21, 2004, and recommended Alternative No. 1. (5-0 carried unanimously).

Prepared by:

Cathy E. Merrill
Assistant to the Director, Parks and Recreation

Reviewed by:

Robert A. Walker
Director, Parks and Recreation

Reviewed by:

Mary J. Bradley
Director, Finance

Approved by:

Amy Chan
City Manager