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Robert Paternoster, Director of Community Development presented the staff report
Councilmember Moylan asked how the Housing and Human Services Commission’s (HHSC) role would change. Director Paternoster stated that their role would differ only in that the three groups they currently review and for funding (Leadership Sunnyvale, Junior Achievement and Euphrat), would no longer go before them for assessment. He stated that the Commission would; however; have one additional function which would entail working with Council to identify priorities for funding for Human Services, before the Request for Proposal is issued.
Councilmember Moylan asked why these outside agencies could not continue to submit their funding applications through the HHSC. Director Paternoster stated that the definition of Human Services are those services provided to groups, at least 51% of who are moderate to low income, which was the original intent of the Human Services Policy. He stated that these three groups do not match the definition and staff suggests they should return to the original policy, which will allow Council to consider services of outside groups together with all other public services supported by the General Fund.
Amy Chan, City Manager, stated she wished to add to Director Paternoster’s comments. She stated that for many years the HHSC operated in the manner proposed, but that the policy was changed in 2000 to have all outside group funding applications reviewed by the HHSC. She stated operationally this policy change did not really work well because some agencies are under special relationship agreements, and some are under a different process. In order to clean up this procedure, staff is recommending that the process reflect the original policy so that outside agencies are reviewed by the appropriate department at the same time the department is reviewing other necessary services.
Councilmember Hamilton asked if the past process was to pre-commit General Fund monies in May for the following year. Director Paternoster stated the process has changed many times. He stated that last year (2005), Council in advance (prior to May) stated they would put a cap on the funds, but did not allocate any funds. Then in May, 2005, Council acted on the Block Grant, and at end of June acted on the General Fund Budget. Director Paternoster stated in previous years (prior to 2005), Council adopted the Block Grant funding without setting any advance limit on the amount of funding from the General Fund.
City Manager Chan noted that before the year 2000, Council would act on the funding for CDBG in May and the funding for would be considered as part of the General Fund project along with all other projects presented for Council consideration.
City Manager Chan stated the budget Council approved last year is most similar to the practice used before the year 2000, which is a simplified process that can better serve both the applicants and Council.
Mayor Swegles stated the Director of Leadership Sunnyvale could not attend the Council meeting this evening, but wished to express that he is in favor of the staff recommendation to amend the Human Services Policy.
Mayor Swegles opened the Public Hearing at 8:05 p.m.
Elaine Curran, President of Junior Achievement, stated she was one of the organizations that is currently funded by the City’s Outside Group Funding Process and is not in favor of the staff recommendation.
Councilmember Hamilton asked staff which department would Leadership Sunnyvale and Junior Achievement fall under if the policy change is approved. City Manager Chan stated Leadership Sunnyvale would be reviewed by the Office of the City Manager and Junior Achievement would most likely be reviewed by Economic Development.
Councilmember Chu verified with Ms. Curran that approximately 3,000 students are involved with Junior Achievement per year.
Mayor Swegles offered Ms. Curran an opportunity to speak about her program. Ms. Curran stated Junior Achievement is a kindergarten through 12th grade volunteer- based (made up of mostly businesses and local organizations) program, in which companies such as Lockheed, Yahoo, and Leadership Sunnyvale go into the schools and introduce students to the available careers.
Chad Steward, Chair of the Housing and Human Services Commission, indicated that a majority of the Commission members thought that the policy change would limit the Commission’s ability to make recommendations to Council on General Fund allocations, and suggested that staff continue to work on the proposed policy change for greater clarity. He stated that two of the commissioners did not support this recommendation.
Councilmember Chu asked Mr. Steward about how the Commission views the relationship of the three organizations being recommended for outside funding.
Mr. Steward stated that Euphrat and Junior Achievement serve the community within a human services capacity and are appropriate programs for the Commission to review, but Leadership Sunnyvale is somewhat different and appears to be a program that would do well contracting with the City for outside funding.
Councilmember Chu asked Mr. Steward if the Commission considered offering a recommendation for approval and Mr. Steward stated they were not able to come to a consensus. He noted his personal position was that a formal request for funding process be continued, and for the Commission to receive direction from Council regarding an approximate funding from the budget. The Commission could then offer more guidance to Council on how to best to distribute those funds.
City Manager Chan stated the role of the HHSC is really under the CDBG guidelines, which identify the role and responsibilities of the Commission.
Harriet Rowe spoke in favor of Leadership Sunnyvale and stated she encourages Council to protect the program.
Tim Persyn, member of the Housing and Human Services Commission, stated he disagreed with the policy change and believes funding from the General Fund should be increased for Human Services.
Councilmember Chu explained to Mr. Persyn that the City is doing everything possible to keep the CDBG funds from being further cut by the current federal administration.
Councilmember Hamilton clarified with Director Paternoster that the HHSC would know the amount of CDBG funds it had available. If there were additional needs for funding, the Commission would recommend to the City Manager and Council any additional agencies they thought should be supplemented by certain amounts and that recommendation would then be considered by Council in June.
No one else wished to speak and Mayor Swegles closed the Public Hearing at
8:35 p.m.
Councilmember Moylan asked for clarification on how an agency (that does not apply nor qualify for CDBG funds, but is serving a low income population) would apply with the HHSC. Director Paternoster stated under the proposal they would go to the appropriate City department that would negotiate a special agreement with them, and then the department would bring the request before City Council. He also stated City departments would identify service needs they are not able to meet and seek out appropriate agencies to perform those public services. These special agreements would then come to Council for approval.
Councilmember Moylan asked if CDBG funding were to completely cease, would that eliminate the HHSC. Director Paternoster stated the Commission has a major role in housing that is not related to CDBG and would still be needed.
City Manager Chan stated that if CDBG funding were to cease, the funding decisions for HHSC recommendations would be weighed and decided upon by Council against any other General Fund programs.
Councilmember Howe moved and Councilmember Chu seconded Alternative No. 1: Amend the Human Services Policy, 5.1.3, as proposed in Attachment D, and clarify the policy on Relationships with Outside Groups, 7.2.4, as proposed in Attachment E.
Councilmember Moylan offered a friendly amendment to add language to the motion that states: all applications by groups for General Funds be prioritized at the same time and if they meet the requirements of a Human Services Agency (as defined in Attachment D, page 1), they would all go through the HHSC for a recommendation on their application for General Funds.
Councilmember Howe stated that the motion does not specifically diminish the HHSC scope with the exception of removing the three groups therefore, he did not accept the friendly amendment
Motion carried 5-1 by roll call with (Councilmember Moylan dissented, Vice Mayor Lee teleconferencing and Councilmember Spitaleri absent).
Councilmember Howe left the dais. Mayor Swegles stated Councilmember Howe will return and that he will continue the meeting.
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