*AMENDED BY COUNCIL
ON 4/26/05 (see shaded text)
MINUTES
SPECIAL MEETING (WORKSHOP)
SUNNYVALE CITY COUNCIL
Saturday, April 2, 2005
8:00 a.m., Council Chambers, City Hall
456 West Olive Avenue, Sunnyvale, CA
The special meeting was called to order at 8:00 a.m. in the Council Chambers, at 456 W. Olive Avenue, Sunnyvale, California with Mayor Chu presiding.
Mayor Chu led the salute to the flag.
The City Clerk called the roll. Councilmembers Lee, Hamilton, Howe, Miller, Fowler, Vice Mayor Swegles and Mayor Chu were present.
Staff present: Amy Chan, City Manager, Robert Walker, Assistant City Manager, Rebecca Moon and Joan Borger, Office of the City Attorney, Mary Bradley, Director of Finance, Tim Kirby, Revenue Systems Supervisor, Marvin Rose, Director of Public Works, Mark Bowers, Solid Waste Program Manager, Susan Ramos, City Clerk
I. Overview of Service and Program Budget Review
Amy Chan, City Manager, presented background and overview of the process. She noted the attachments outline the programs, service delivery plans (SDPs), activities of the referenced programs in the report and also described the Management by Objective (MBO) reports. Staff responded to questions regarding various budget funds and their percentages to the entire budget.
II. RTC #05-089, Service and Program Budget Review
Discussion and preliminary policy direction for the following programs:
Marvin Rose, Director of Public Works, presented an overview of programs 312, 322 and 342 highlighting outcome measures, SDPs, activities. He provided visual aids.
a. Program 312: Water Supply and Distribution
Staff responded to questions regarding water rates and source, system infrastructure, outcome measures and training.
Mayor Chu opened the public hearing at 9:41 a.m.
At this time, Vice Mayor Swegles removed himself from the dais and left the meeting.
Arly Marley, member of the public asked clarification regarding the water reserve during emergencies, water feeds and flows.
Tim Risch, member of the public, advised he is the Sunnyvale representative for BAWSCA and reported on the earthquake recovery plan. Councilmember Miller requested he provide Council with a written report.
The public hearing closed at 9:53 a.m.
Mayor Chu declared a recess at 9:55 a.m. and reconvened the meeting at 10:15 a.m. Mayor Chu announced Vice Mayor Swegles left the meeting for another engagement.
b. Program 322: Solid Waste Management
Staff responded to questions about outcome measures, disposal targets and tonnage, household hazardous wastes, contract provisions and recycling.
Mayor Chu opened the public hearing at 10:58. There being no public testimonies, closed the public hearing.
Mayor Chu declared a recess at 10:59 a.m. and reconvened the meeting at 11:13 a.m.
c. Program 342: Wastewater Management
Vice Mayor Swegles returned to the dais and reported on the fundraiser event that he attended for the Heritage Museum.
Staff responded to questions regarding lateral repairs, training and certification, fees imposed, plant infrastructure and maintenance, rental rates, encumbrances, chemical processes and in-house testing, feed polymer, botulism, and gas production.
Councilmember Fowler requested staff provide information quantifying the city’s gas and electric production versus purchases the city would have to make if it weren’t producing gas and electricity to run the plant.
Mayor Chu opened the public hearing at 12:45 and there being no public testimonies, closed the public hearing. Mayor Chu declared a lunch break at 12:45 p.m. and reconvened the meeting at 1:40 p.m.
d. Program 720: Utility Billing, Collection and Revenue Management
Mary Bradley, Director of Finance, presented an overview of program 720 highlighting outcome measures, SDPs, activities.
Staff responded to questions regarding meter reading, outreach efforts for direct pays, processing payments, fees imposed for credit card payments, and online billing.
Councilmember Miller and Councilmember Lee suggested staff look into outreach efforts for direct pays and online billing.
Mayor Chu opened the public hearing at 2:25 p.m. and there being no public testimonies, closed the public hearing.
Councilmember Fowler suggested and Councilmember Howe urged establishing an overall efficiency measure as compared to our surrounding cities, as a goal for this program.
Amy Chan, City Manager, provided closing remarks including comments about the city’s efforts to redesign the city’s performance budgeting to make it easier for the public to understand and provided a schedule to review all of the other city’s programs and services for the next seven years. She noted that materials are being provided to Council with the attached report entitled “Performance Budget Structure and Budget Comparison Listing” reflecting historical trend data for programs 312, 322, 342 and 720 for Council to look at and provide feedback to staff.
*Mayor Chu declared a recess at 2:40 p.m. and reconvened the meeting at 3:00 p.m.
Study Session
III. Review of Preliminary Utility Rates for FY 2005/2006 and 20
Year Resource Allocation Plan Study Session
Amy Chan, City Manager, provided an overview and announced that the public hearing for the utility rates is scheduled on April 19, 2005. She commented about the city’s outreach to notify the residents. She noted that the report to Council would be made available to the public in advance of the hearing.
Vice Mayor Swegles suggested also targeting the mobile home communities in the outreach.
a. Introduction to Utility Rate Setting Process
Mary Bradley, Director of Finance, passed out handouts and a set of preliminary long term financial plans (fund balance sheets) and described the process for staff’s presentation.
Tim Kirby, Revenue Systems Supervisor, assisted by Mary Bradley, Finance Director and Marvin Rose, Director of Public Works, presented a report with PowerPoint visual aids.
Water Supply and Distribution Fund:
Staff responded to questions regarding pumping system, storage, replacement of lines, rate stabilization reserves fund, infrastructure fund, water wells and water consumption.
Mayor Chu opened the public hearing at 3:52 p.m. and there being no public testimonies, closed the public hearing at 3:53 p.m.
Solid Waste Fund, Smart Station Fund and Smart Station Replacement Fund:
Staff responded to questions regarding contract provisions, water fund contingency reserves policy, capital projects schedule, tipping fee, and AB 939.
Mayor Chu opened the public hearing at 4:42 p.m. and there being no public testimonies, closed the public hearing at 4:43 p.m.
Wastewater Management Fund:
Staff responded to questions regarding capital projects, the pump station, and the water pollution control plant and water sources.
Mayor Chu opened the public hearing at 5:08 p.m. and there being no public testimonies, closed the public hearing at 5:09 p.m.
Mary Bradley, Director of Finance, concluded the presentation with the following proposed utility rates as follows:
- Water Fund: 4.5% proposed increase
- Solid Waste Fund::5.5% proposed increase
- Wastewater Fund: 5.5% proposed increase
Ms. Bradley noted that Sunnyvale’s proposed total monthly bill would be $72.42 per month up by $3.60 a month which is 5.2 percent.
Adjournment – Mayor Chu adjourned the meeting at 5:30 p.m. in memory of Pope John Paul II.
Susan A. Ramos
City Clerk