August 16, 2005

SUBJECT:      Feasibility of a Neighborhood Grant Program in Sunnyvale (Study Issue)

REPORT IN BRIEF

The purpose of this report is to provide Council with findings from the 2005 Study Issue, “Neighborhood Grants for Community Enhancement” (see Attachment A.)  This Study Issue explores the feasibility of a City-sponsored neighborhood grant program which would provide City grants directly to groups of residents or neighborhood associations for neighborhood improvement. 

This report:

1. Discusses the importance of  the City’s neighborhood groups;
2. Reviews the City’s current level of support for neighborhood groups;
3. Discusses current funding sources for the City’s neighborhood associations;
4. Summarizes input gathered from neighborhood groups in Sunnyvale on a City-sponsored neighborhood grant program;
5. Summarizes best practices research on neighborhood grant programs; and
6. Provides options for a neighborhood grant program in Sunnyvale.

BACKGROUND

In FY01/02, as part of the Integrated Neighborhood Services Initiative, staff conducted best practices research on how other cities connect with and engage their neighborhoods.  As a result of this research, staff identified “grants for neighborhoods programs” as warranting further study and proposed it for a 2005 Study Issue (Council ranked it two out of nine for the Office of the City Manager). 

EXISTING POLICY

Goal 7.2B: Achieve a community in which citizens and businesses are actively involved in shaping the quality of life and participate in local community and government activities.

Action Statement 7.2B.3a: Identify and strengthen contacts between the City and community organizations.

Action Statement 7.2B.4: Community Self-Reliance: Encourage and support the development of greater community self-reliance for problem solving through effective community and neighborhood organizations.

Action Statement 7.2B.4a: Identify and support mechanisms to strengthen the capability of community organizations to achieve community-wide goals.

Action Statement 7.2B.6a: Seek opportunities for the City to be a catalyst to increase the frequency, amount and impact of contributions from citizens, community organizations and businesses.

DISCUSSION

Importance of the City’s Neighborhood Groups

Neighborhood associations play an important role in building community in Sunnyvale.  Sunnyvale’s neighborhood associations serve as the “eyes” and “ears” of the community, connecting community members to government, encouraging community engagement, and increasing informed civic participation.  They are a cost-effective means of linking City Hall to its neighborhoods and community members.  Neighborhood associations also foster community pride and neighborhood attractiveness, build bridges between different cultural groups, and enhance the quality of local decision making.

There are currently 16 active neighborhood associations to which the City provides support (see Attachment B, City of Sunnyvale Neighborhood Associations).  The City’s neighborhood associations represent approximately 7,000 households (out of a total of 52,500 households in the City).  (See Attachment C, City of Sunnyvale Neighborhood Association Map).  Four new neighborhood associations have formed since January 2005. 

Each association is structured and operates differently.  Some associations are very active with well-attended monthly meetings and regular social gatherings, and some are simply groups of neighbors who meet on an infrequent basis when the need arises.  Many neighborhood associations are using email as a cost-effective communication tool.  These associations have developed email listserves to communicate with their members, to discuss neighborhood issues, and to plan neighborhood activities. 

City’s Current Level of Support to Neighborhood Groups

The Neighborhood and Community Services office (NCS), within the Office of the City Manager, provides primary support to the City’s neighborhood groups.  NCS is the central link between neighborhood associations and the City.  As part of its mission to strengthen community engagement, NCS staff (primarily the Community Outreach Coordinator) work to build strong relationships with Sunnyvale’s neighborhood associations and help them to address their neighborhood concerns, improve their neighborhoods, and work collaboratively with City Hall. 

Neighborhood Association Registry

The City of Sunnyvale’s Neighborhood Association Registry (Registry), approved by Council in December 2003, represents those neighborhood associations that have signed a Special Agreement with the City of Sunnyvale, thereby “registering” with the City (See RTC 03-411, “Proposed Special Agreement with Sunnyvale Neighborhood Associations; Neighborhood Association Registry”). The purpose of the Registry is to facilitate support, foster more effective communication, and formalize the partnership between Sunnyvale’s neighborhood associations and City Hall.  The Registry enables the City to maintain a database of neighborhood leaders, and establishes an efficient means of sharing information with neighborhood groups.  There is no obligation for neighborhood associations to participate in the Registry. 

All neighborhood associations (whether they are registered or not) receive the following City services:

·         Assistance in coordinating meetings with elected officials or City staff on issues of interest;

·         Bi-monthly email updates to neighborhood association officers about upcoming City meetings and events;

·         Neighborhood Association Quarterly Meetings which provide an opportunity for neighborhood association officers (and residents interested in starting neighborhood associations) to share ideas and information.

However, only registered neighborhood associations receive the following benefits:

·         One-time startup funding of $100;

·         Free use of City park buildings for association meetings and activities.

Funding for the City’s Neighborhood Associations

City-Sponsored One-Time Startup Funding

The City currently provides limited funding to neighborhood associations who join the Registry.  Neighborhood associations that newly register with the City are eligible to be reimbursed by the  City up to $100 for any startup costs, including mandatory registration fees ($20) for attending the United Neighborhoods of Santa Clara County’s Annual Conference. 

Community Foundation of Silicon Valley (CFSV)

Funding for Sunnyvale’s neighborhood associations is also available through the Community Foundation Silicon Valley (CFSV).  CFSV is an independent, nonprofit philanthropic organization which provides grants to neighborhood groups for neighborhood enhancement projects.  Grants of $500 to $5,000 are available for neighborhood efforts that strengthen or build community.  This may include support for neighborhood improvement projects, community projects involving youth, public safety activities, street fairs, block parties, multi-cultural arts events, and economic development or youth efforts.  CFSV grant support is also given to events and activities that bring people together to learn about and share in the multi-cultural diversity of the County. 

Neighborhood associations are eligible to receive CFSV grants every other year. In other words, if an association receives a grant from CFSV in 2004, the association is not eligible for another grant until 2006 (in order to allow other neighborhood groups the opportunity to receive CFSV grant funding).  CFSV also offers grant writing workshops for neighborhood groups and guides them through the application process.

Each year, the City’s Neighborhood and Community Services office informs Sunnyvale neighborhood associations about the CFSV grant opportunity.  (Note:  there is no additional staff support provided to neighborhood associations during the CFSV grant application process).  Earlier this year, the Charles Street 100 neighborhood association received a $1,000 grant from CFSV to plant cherry trees in the neighborhood.  Lakewood Village Neighborhood Association, Heritage District Neighborhood Association, and Sunnyvale Neighbors of Arbor including La Linda (S.N.A.I.L.) have also been past recipients of the CFSV grant. 

Community Event Grant Program

In June, 2001, City Council approved a budget of $25,000 for a community event grant program to help build a spirit of community and celebrate the City’s diversity, heritage and uniqueness.  Community groups, including neighborhood associations, were eligible to apply for this funding so long as the applicants demonstrated an ability to draw a minimum of 500 participants to their event.  Many applications were denied because of the inability to meet this requirement.  The Community Event Grant Program is no longer a source of funding for the City’s neighborhood associations as the Program was eliminated during the 2003 budget reductions. 

See Attachment D, “Recent Grant Funding Awarded to Sunnyvale Neighborhood Associations,” for a list of associations who have recently received grant funding from either CFSV or the City’s Community Event Grant Program.  

Input from Sunnyvale Neighborhood Associations on a City-Sponsored Neighborhood Grant Program

Neighborhood association representatives provided feedback to City staff about a City-sponsored neighborhood grant program at the April 25, 2005 Neighborhood Association Quarterly Meeting and via an email survey.  Neighborhood representatives were surveyed on:   

• Their interest in a City-sponsored neighborhood grant program; and  
• What types of neighborhood projects they would like to see funded. 

Ten out of eleven neighborhood association representatives who responded to the survey expressed support for a Sunnyvale neighborhood grant program (one neighborhood association representative indicated that they “may” be interested in such a program).   Neighborhood association representatives listed a number of projects that could be funded through such a program including:  an association newsletter, neighborhood social events such as an ice cream social or block party, and neighborhood improvement projects. 

Best Practices:  Neighborhood Grant Programs

Very few cities in Santa Clara County offer a neighborhood grant program (see chart below): 

        City                                           Neighborhood Grants Program?

During staff’s best practices research on successful neighborhood programs in FY01/02, staff visited eight cities which are well-known for their high level of community involvement and engagement.  Of these eight cities, five of them have neighborhood grant programs (see chart below).

             Best Practices Site Visit                         Neighborhood Grant Program?

Neighborhood grant programs vary widely in terms of overall budget, criteria, eligibility, and administration.  For example, Scottsdale, Arizona’s neighborhood grant program, the “Neighborhood Enhancement Partnership Program,” has a total budget of $75,000 and provides grants averaging $5,000 to $7,000 to both homeowners and neighborhood associations.  Henderson, Nevada, provides grants to registered neighborhood associations through its “Neighborhood Enhancement Grant Program.”  Its budget is $20,000 and the maximum grant awarded is $2,000. 

The City of Mountain View also has a Neighborhood Grant Program which has funded neighborhood association activities since 1999.  This Program is budgeted at $10,000, and the City provides grants up to $1,500 to neighborhood associations as well as informal neighborhood groups.  Mountain View’s Neighborhood Grant Program funds a variety of neighborhood activities including advertising neighborhood meetings, coordinating neighborhood events, or implementing neighborhood beatification projects.

For more information about staff’s best practices research on neighborhood grant programs, see Attachment E, “Best practices: Neighborhood Grant Programs.”  It is important to note that costs incurred by these cities is greater than just the grant money awarded to associations due to staff time required to implement the program.  The staff time for development and coordination of a Sunnyvale neighborhood grant program is included in the options provided to Council below.

Options for a Neighborhood Grant Program in Sunnyvale

Sunnyvale could implement a wide variety of neighborhood grant programs.  The ultimate goal of such a program would be: 1) to build community engagement in Sunnyvale, 2) to help residents develop a sense of pride and ownership in their neighborhoods, and 3) to develop collaborative partnerships between Sunnyvale’s neighborhoods and City Hall.  The program’s focus would be on strengthening Sunnyvale’s neighborhood associations – not on increasing their dependence on the City.  A neighborhood grant program would be an initial investment in helping neighborhood groups form and becoming more self-reliant. 

1.         Provide Expanded Assistance to Neighborhoods Applying for CFSV Grants

Under this option, the City would not directly coordinate a neighborhood association grant program.  Instead, the City would provide expanded assistance to neighborhoods interested in applying for grants through the CFSV Neighborhood Grants Program.  Such assistance would include:  marketing the CFSV grant program to the City’s neighborhood associations, coordinating a workshop on how to apply for the CFSV grant, and assisting with editing or proofreading grant applications from the City’s neighborhood associations as needed.

Staff Analysis:  Staff’s current role with regard to the CFSV Neighborhood Grant Program is limited to simply informing neighborhoods about the CFSV grant opportunity.  This option, however, would expand the City’s role by coordinating a workshop in Sunnyvale on how to apply for the CFSV grant, and by offering assistance to neighborhoods interested in completing the CFSV grant application.  Staff estimates that this option would require 15 hours of staff time at an approximate cost of $840 annually.  See Fiscal Impact section for details. 

The major advantage of this option is that it is very low cost to the City.  The major disadvantage is that, unlike a neighborhood grant program which provides opportunities for community members and the City to collaborate on special projects or events, this option does not provide for such collaboration.

2.         City-Sponsored Neighborhood Association Grant Program with a     Budget of $10,000

Under this option, the Neighborhood and Community Services Office would develop a Neighborhood Association Grant Program with a budget of $10,000, similar to Mountain View’s Neighborhood Grant Program.  The City would provide grants up to $1,500 to registered neighborhood associations or resident groups interested in starting a neighborhood association.  The funding could be used for neighborhood-based projects, activities or events which improve communication and participation within a neighborhood, build bridges between different cultural groups, improve the physical condition of the neighborhood, or enhance neighborhood pride and identity.  See chart below for more information on this option.

City-Sponsored Neighborhood Association Grant Program

Staff Analysis:  Staff estimates that this option would require approximately 40 staff hours to develop the neighborhood grant program (i.e. grant application and procedures, grant criteria, disbursement procedures, marketing plan, etc.) at a cost of $2,245.  Ongoing costs would include approximately 37 staff hours per year totaling $2,061.  If Council were to approve this option, staff would develop the program during FY05/06 and implement it in FY06/07.  Staff time for the start-up of the program ($2,245) would be absorbed in the Neighborhood and Community Services FY05/06 operating budget.  Out of pocket expenses ($10,000) would be included in the proposed FY06/07 operating budget.  See Fiscal Impact section for details. 

Examples of neighborhood activities that could be funded (or partially funded) with grants of up to $1,500 include (but are not limited to):

• Consulting services to develop an association web site;
• Park bench, park improvements;
• Welcoming signage at entrance to neighborhood denoting neighborhood’s name;
• Neighborhood beautification project (i.e. landscaping, planting of trees, etc.);
• Large-scale neighborhood event or fundraising activity.

The major disadvantage of this option is that it would be expensive for the City during a time of fiscal constraint and uncertainty.   Advantages of this option include: 

• Increased neighborhood associations’ civic engagement and collaborations with City Hall;
• The opportunity for neighborhood associations to work on substantial neighborhood projects.

3.         Limited City-Sponsored Neighborhood Association Grant Program with a Budget of $2,500

Under this option, the Neighborhood and Community Services Office would develop a limited Neighborhood Association Grant Program with a budget of $2,500.  Neighborhood grants would be much smaller (ranging from $100 to $500), while the scope of grants, criteria, administration etc. would be the same as in Option #2 (see chart below):  

Limited City-Sponsored Neighborhood Association Grant Program

Staff Analysis:  Staff estimates that this option would require approximately 40 staff hours to develop the neighborhood grant program (i.e. grant application and procedures, grant criteria, disbursement procedures, marketing plan etc.) at a cost of $2,245.  Ongoing costs would be approximately 25 staff hours per year totaling $1,396.  If Council were to approve this option, staff would develop the program during FY05/06 and implement it in FY06/07.  Staff time for the start-up of the program ($2,245) would be absorbed in the Neighborhood and Community Services FY05/06 operating budget.  Out of pocket expenses ($2,500) would be included in the proposed FY06/07 operating budget.  See Fiscal Impact section for details. 

Examples of neighborhood activities that could be funded (or partially funded) with grants of up to $500 include (but are not limited to):

• Neighborhood newsletter;
• Flyers to advertise a meeting or event;
• Business cards with association’s contact information;
• Refreshments for a block party, barbecue, potluck, activity celebrating the diversity of the neighborhood, National Night Out event etc.;
• Neighborhood cleanup projects (pay for extra dumpsters, trash bags, etc.);
• Facility costs for neighborhood meeting or event not held at a City facility;
• Neighborhood Watch materials (extra signs, decals, publications, etc.);
• Prizes for neighborhood event/contest;
• Emergency preparedness materials for the neighborhood;
• Development of a discount card program with local businesses;
• Registration fees for annual UNSCC conference or other neighborhood leadership conferences,
• Start-up costs for neighborhood association fundraising event/activities.

Advantages of this option include:

• Low cost to the City
• Small grants ($500 or less) can have a substantial impact on community life because they inspire neighborhood collaboration:  people get to know their neighbors, become involved in neighborhood associations, and come to City meetings. 

A disadvantage of this option is that only smaller events/activities could be funded. 

FISCAL IMPACT

The fiscal impact of each option is outlined below:

Option #             Option Description                 Cost to the City                           Impact on Budget

Conclusion

This Study Issue explores the feasibility of a City-sponsored neighborhood grant program which would provide City grants directly to groups of residents or neighborhood associations for neighborhood improvement.  Neighborhood associations play a critical role in building community in Sunnyvale.  Based upon staff’s best practices research, neighborhood grant programs vary widely in terms of overall budget, criteria, eligibility, and administration.  This report outlines three options for a neighborhood grant program in Sunnyvale.   

PUBLIC CONTACT

Neighborhood association representatives provided feedback to City staff about a City-sponsored neighborhood grant program at the April 25, 2005, Neighborhood Association Quarterly Meeting and via email survey.  Public contact was also made through posting of the Council agenda on the City's official bulletin board, posting of the agenda and report on the City's web page, and the availability of the report in the Library and the City Clerk's Office.  A copy of this report was provided to all neighborhood associations.

ALTERNATIVES

1.     Council directs development of the framework for a limited City-sponsored neighborhood association grant program during FY05/06 (costs absorbed within existing budget) with the option for implementation (estimated annual cost of $3,896) brought forward for Council’s consideration in the context of the City Manager’s recommended budget for FY06/07.

2.     Council directs expanded assistance to neighborhoods applying for CFSV grants.

3.     Council directs implementation of a City-Sponsored neighborhood association grant program with a budget of $10,000.

4.     Other alternatives as directed by Council.

RECOMMENDATION

Staff recommends Alternatives #1 and #2:

• Development of the framework for a limited City-sponsored neighborhood association grant program during FY05/06 (costs absorbed within existing budget) with the option for implementation (estimated annual cost of $3,896) brought forward for Council’s consideration in the context of the City Manager’s recommended budget for FY06/07; and
• Expanded assistance to neighborhoods applying for CFSV grants.

Given the City’s challenging economic situation, staff believes that a limited City-sponsored neighborhood grant program and expanded assistance to neighborhoods applying for CFSV grants would be a highly cost effective means of enhancing the City’s community building efforts, empowering residents to build a stronger sense of community within their neighborhoods.  A limited neighborhood grant program would greatly assist members of neighborhood associations to connect with each other through social events, neighborhood meetings, or neighborhood enhancement projects.  These connections will lead to increased levels of civic engagement and a greater sense of belonging for residents. 

Small grants ($500 or less) can have a substantial impact on community life.  The real benefit is not just in the projects themselves, but in the collaboration inspired by the projects:  people get to know their neighbors, become involved in neighborhood associations, and come to City meetings.  For example, through its “Grants-For-Blocks Program,” the city of Savannah, Georgia gives grants of up to $500 to residents and community groups with ideas for neighborhood improvement projects.  This program has had considerable success in strengthening neighborhood associations and revitalizing the City’s poorer neighborhoods.    

A neighborhood grant program would differ substantially from Community Development Department’s Neighborhood Enhancement Program.  The Neighborhood Enhancement Program involves concentrated code enforcement in targeted areas of the City – currently in the Lakewood Village area.  Under this program, some landscaping grants are provided to homeowners with Community Development Block Grant (CDBG) funding.  However, unlike a neighborhood grant program which would focus on neighborhood collaboration, the purpose of the grants under the Neighborhood Enhancement Program is to improve the landscaping of individual homes in a targeted area.  Through specific grant criteria, staff would ensure that a neighborhood grant program authorized by Council would benefit the neighborhoods and not primarily individual homeowners. 

Although the CFSV grant is a current funding source for the City’s neighborhood associations, staff believes that it should not be the only source.  First, the City exerts no control over CFSV grants.  If a neighborhood group is interes