The buildings that house the City’s Senior Center are leased from the Sunnyvale Elementary School District. During negotiations in 1997, the School District raised the lease amount to market rates, causing the City to re-examine the long-term implications of continuing to lease this site.

On May 27, 1997, Council approved a new four year lease (plus 5^th year option) with the Sunnyvale Elementary School District for the Sunnyvale Multi-Purpose Senior Center site, located at 820 West McKinley Ave. Council also authorized staff to implement a public input process to explore alternatives to the current Senior Center location. This report provides the results of that public input process as well as recommendations from both staff and the Parks and Recreation Commission.

The City began providing services for older adults with the formation of the Sunnyvale Senior Citizens Club in 1958. Since that time, the City has expanded older adult services to include numerous programs and the lease of a school site for the Sunnyvale Multi-Purpose Senior Center. Last year, at the end of a 15 year lease, a significant increase in rent, along with the need for extensive structural and cosmetic improvements, caused the City to explore other options. Included in the current lease is space for several community agencies that Council may also want to consider relocating. Of significant importance are long-term budget implications and the dramatic change in demand for older adult services expected from the "Baby Boomer" generation.

Long-term, the most fiscally prudent option is to build a facility on existing City land, preferably, a location with existing street access and adequate parking. The size of the facility, and therefore cost (both immediate and long-term), is also an issue for Council to consider. Multi-year planning will be essential due to the long-range fiscal implications of any options selected, and the limited resources available for increased service levels.

The Senior Center Advisory Committee served as the primary contact point for obtaining public input. This committee routinely acts as the information conduit for interaction with Sunnyvale’s older adult community. Committee members and staff toured several area senior centers for suggestions and comparisons. Staff also met with a number of older adult groups to review the purpose of the study and explain the procedures for obtaining input. Handouts soliciting written responses were also distributed to Senior Center members, service providers, older adult groups and individuals. To further solicit public opinion, staff held two public input meetings (November 13 and 17, 1997) and conducted a focus group comprised of on-site service providers and older adult advocates (November 12, 1997). Lastly, a separate public meeting was conducted July 1, 1998, to solicit input from Washington Park neighbors regarding the potential impact of moving Sunnyvale Community Services to Washington Park.

Throughout numerous contacts with older adults, their advocates and the general public, several issues surfaced as common concerns over possible re-location of the Senior Center. These issues include:

A few older adults expressed preference for the current Senior Center location but most were more concerned about what services would be provided than they were the location at which they would be delivered.

The need for a facility that services older adults is very apparent, as is the desire to look at future expansion to meet the geometric growth of the older adult population. The range of options is more limited than first appears, due to the lack of suitable locations available in Sunnyvale and the extremely high cost for such a large piece of property. If constructing a new center is desirable, then locating the facility on existing City property is the most financially feasible option.

With regard to the Senior Center, from a programmatic and professional perspective, staff would like to recommend Alternative No. 8 (20,000 square foot addition to the Community Center). This recommendation would take into account staff’s desire to continue the provision of all existing services at both the Community Center and Senior Center, as well as provide a minimal amount of additional space to meet the future needs associated with a projected growth in older adult populations.

However, given the issues discussed in the Fiscal Impact section of this report, staff feels a fiduciary obligation to recommend Alternative No. 4 (14,000 square foot addition to Community Center). While this option does not fully satisfy either staff or the public from a programmatic perspective, all things considered it appears to be the most prudent course of action.

Further, staff opposes those options which would relocate Sunnyvale Community Services to either Washington Park or the Community Center. However, staff does recommend further exploration of other options that would meet the needs of Sunnyvale Community Services. The Executive Director of Sunnyvale Community Services supports staff’s recommendations.

The Parks and Recreation Commission, at its July 8, 1998, meeting, recommended that Council approve Alternative No. 8, which would pursue the development of preliminary plans and cost estimates for a 20,000 square foot addition to the Community Center for older adult programs and activities and approve an associated Budget Modification of $50,000 for developing preliminary plans. Direct staff also to develop a Capital Project for construction of a new facility as an addition to the Community Center complex, at an estimated total 26 year cost of $23,049,692. Staff will return to Council upon completion of the preliminary plans and make further recommendation as to whether or not to proceed with construction based on a cost/benefit analysis. Public input would include focussed attention on the Community Center neighborhood. The Commission amended this Alternative to specify a building physically separate from the existing Community Center buildings and named "Senior Center". Commission further recommended that a facility for Sunnyvale Community Services not be provided at Washington Park, the Community Center or any open space parkland and that other alternatives be explored that would meet the needs of Sunnyvale Community Services.

Since 1982, the City of Sunnyvale has leased property from the Sunnyvale School District to house the Sunnyvale Multi-Purpose Senior Center at 820 West McKinley Avenue. This property represents a portion of the former Adair public school site and consists of approximately 3.75 acres of improved property, including 25,528 square feet of building space, two paved and striped parking areas and landscaping. The six buildings include four former classroom wings, one multipurpose building with full kitchen/cafeteria and one administrative office building. The Adair School was built in 1952. At the time of the first lease agreement, in 1982, the City paid $984,000 to renovate the school buildings for use as a Senior Center. In 1989, new restrooms were added inside two buildings, the roofs were replaced on all six buildings, and considerable site work was done to improve safety and functional use of the facility. The Senior Center buildings are again in need of significant structural and aesthetic improvements.

The City of Sunnyvale currently leases the Senior Center site for $0.75 per square foot per month ($229,752 per year), which was considered to be market rate for this type of property when the existing lease was negotiated. If the City were negotiating now, the current rate is estimated to be $1.00 per square foot, per month. Included in this rental cost is space that the City provides rent free, for the following agencies:

1. Sunnyvale Community Services - 3,780 square feet to provide a variety of social services to families and individuals, including many older adults.
2. De Anza College Senior Workshop - 3,072 square feet to provide on-site employment training and jobs for older adults.
3. Proven People - 214 square feet, a NOVA program, providing a non-fee employment and job referral service for seniors.
4. Project Match/Santa Clara Valley Transportation Authority - 79 square feet. Project Match helps older adults locate affordable housing and the Transportation Authority provides transportation information.

The remaining space, approximately 18,383 square feet is used for City programs, co-sponsored use, offices, reception, restrooms, kitchen and storage. Program space is used exclusively for older adult services during the day with the majority of evening and weekend use made available for rentals and therapeutic or adult programs. For more details see Attachment A - Breakdown of Senior Center Space Usage.

• The original lease with the Sunnyvale Elementary School District for the Senior Center site expired July 31, 1997. In the process of re-negotiating the lease, the School District increased the rental amount to market rate ($.75 per square foot per month). This caused the City to examine the long-term implications of continuing to rent this facility. At their May 27, 1997, meeting, Council was presented with a report recommending extension of the lease by four years (with a 5th year option) and solicitation of public input regarding a future center. This report also included seven possible options and a landscape architect’s feasibility analysis on expanding facility space at the Community Center. Council directed staff to do the following:
• Extend the existing lease four years (with a 5^th year option).
• Continue providing space at no cost for DeAnza College Workshop for the duration of the new (now existing) lease.
• At the conclusion of the new (existing) lease, terminate City funding for DeAnza College Workshop. DeAnza to then seek funding from the business community or other sources.
• Review alternative Senior Center options with the public.

The following seven options were listed in the May 27, 1997, Report to Council and were used for the basis of soliciting public input for this report. The seven options are:

1. Continuing the existing lease beyond July 1, 2002, at market rate, with on-going renovations assumed.
2. Purchase of the existing Senior Center property with infrastructure repairs.
3. Construction of a new 25,000 square foot site on approximately 3 acres of land purchased to house the Senior Center and Community Services (location not determined).
4. Construction of a new 14,000 square foot addition to the existing Community Center at 550 East Remington Drive, Sunnyvale (no accommodation for Sunnyvale Community Services).
5. Same as Option No. 4, plus move an existing 5,000 square foot portable annex to a site at Washington Park to house Sunnyvale Community Services.
6. Same as No.4 plus negotiate a lease of 3,780 square feet of facility space at 820 West McKinley, Sunnyvale, to house Sunnyvale Community Services or pay the equivalent amount of money to Sunnyvale Community Services to allow them to provide housing for themselves.
7. Construction of a new 17,000 square foot addition to the existing Community Center at 550 East Remington Drive, Sunnyvale, to house the Senior Center operations and Sunnyvale Community Service.

Consideration of this Study Issue is called for in the Recreation Sub-Element of the City’s General Plan, specifically in:

1. Goal E: Provide and maintain recreation facilities based on community need as well as on the ability of the City to finance, construct, maintain and operate these facilities now and in the future.
2. Policy E.2: Provide recreation facilities that will accommodate and meet the needs of special populations groups.
3. Action Statement 2c: Continue operation of a Senior Multi-Purpose Center, and explore options in 1997, when the current agreement for use of the facility will expire.

This issue has significant long-term importance due to five factors:

1. The rapid increases in the number and percent of older adults living in Sunnyvale.

As the "Baby Boomer" generation reaches retirement age, national and local populations are rapidly shifting toward much larger numbers of older adults. Older adults are also becoming a significantly higher percentage of the overall population. This trend, commonly referred to as "the graying of America," has seen the population of those aged 65 and over in California grow from 2.4 million in 1980 to an estimated 4 million in the year 2000 (with another 1.2 million aged 60-65) and to 5 million by the year 2010. In another 10 years there will be 7.3 million adults age 65 and over. Santa Clara County has the largest number of older adults in the Bay Area and is projected to increase 93% from 241,955 in 1990 to 467,131 in 2010. Although there are no specific projections as to the number of older adults in Sunnyvale, it can be anticipated that Sunnyvale will follow the trends for the state and county. The number of older adults living in Sunnyvale may also be increased through projects such as the proposed development, by Lytton Gardens, of a 170-unit senior citizen housing facility, located on Fair Oaks just north of the Sunnyvale Community Center.

2. Older adults are living longer and enjoying more active life styles.

Studies indicate disability rates for older adults have been falling since 1982, due to improved lifestyles and advances in medical technology. This translates into more seniors aging at home and striving for "healthy aging" instead of institutional care. The rise in popularity of groups, organizations, publications, and activities catering to older adults is testimony to the increasing involvement by older adults in all aspects of community life.

3. The need for "Elder Care" is increasing within the community.

This dramatic increase in the life expectancy and level of activity for older Americans places a tremendous burden on the "Sandwich Generation", those middle class families who care for aging relatives, with little or no support, while raising and educating their own children. This is a particularly important consideration since those over the age of 75 have the highest rate of health care utilization of all age groups. Providing programs that assist families in keeping their older members active and healthy helps to avoid the far more expensive alternatives.

4. The demand for older adult services is growing rapidly.

Although older adults are experiencing fewer disabilities, the sheer numbers of those approaching and reaching old age will create the need for a wide spectrum of programs that promote "healthy aging". Despite the significant level of increase in the senior population, there has not been a corresponding increase in government funding for older adult programs. New programs must promote the factors that aid in "healthy aging", including opportunities for physical and social activity as well as maintaining positive attitude and self-esteem. It can be assumed that government will be expected to shoulder the burden of providing facilities and continuing services for our rapidly expanding older adult population.

5. Needs and trends in facilities development for older adults are changing.

• The importance of planning for the current as well as future needs. Several relatively new senior centers in the bay area have recently added additional space because of underestimated demand. This is reflective of the pent-up demand and emerging demographic predictions showing drastic increase in the older adult population.
• The term "senior" has developed a negative stigma among those more active adults who are entering their 50’s and 60’s. Avoiding the term "senior" by using "Adult Center", "Older Adult Center" or "Community Center" may be appropriate. A more generic name may also help reduce any negative perceptions surrounding future facility changes.
• In addition to more traditional programs, newer facilities are designed to promote healthy lifestyles and emphasize physical activity. Popular elements include well-equipped fitness rooms, outdoor exercise areas, dance floors and active game spaces.
• There is some movement away from stand-alone senior centers and toward inclusion with multi use community centers. This concept is similar to Sunnyvale’s original community center design and is currently practiced in Sunnyvale by the two large senior clubs who use the Community Center for their weekly meetings.
• Design in architectural features that are more appealing to and considerate of older adults. These features include special lighting, accessibility issues, acoustical needs, interior traffic patterns, inviting reception and lounges, easy to use door handles, etc.
• Hours of service provision need to expand as more older adults are maintaining employment and active lifestyles during their later years. Demand is steadily increasing for evening and weekend programs.

The May 27, 1997, Report to Council listed seven options with various sizes of facilities, ranging from an addition to the Community Center of 14,000 square feet to constructing a new facility, similar in size to the existing 25,528 square foot Senior Center. Council directed staff to further review those options, and to seek the public’s input.

As a part of its demographic study, Staff reviewed the geographical location of Sunnyvale’s older adults and current Senior Center members. Locations were identified by zip codes. There are three basic zip codes in Sunnyvale: 94087- South of El Camino; 94086 - North of El Camino; and 94089 - North of 101.

Zip code locations show the distribution of older adults and Senior Center members in the following chart:

Translation of Census Tract information into Zip Code locations is not exact.
*The number of Sunnyvale residents in other Zip Codes is considered insignificant.

The analysis of this data indicates that locating an older adult center in the 94087 sector would provide a slightly better opportunity for delivery of services, due to the proximity of more older Sunnyvale residents and current Senior Center members. Whatever location is selected, it will be convenient to some older adults and inconvenient for others. The concept of using the Community Center as a potential site has been well received by the older adult community.

Following is an updated review of the advantages and disadvantages for each of the seven options listed in the May 27, 1997, Report to Council. In addition, staff has listed general comments received during the input process:

Option 1. Continue the existing lease beyond July 1, 2002 at market rate.

Staff Analysis

Option 2. Purchase of the existing Senior Center property with infrastructure repairs.

Staff Analysis

Option 3. Construction of a new 25,000 square foot site on approximately 3 acres of land purchased to house the Senior Center and Community Services.

Staff Analysis

Option 4. Construction of a new 14,000 square foot addition to the existing Community Center at 550 East Remington Drive, Sunnyvale (no accommodations for Sunnyvale Community Services).

Staff Analysis

Option 5. Construction of a new 14,000 square foot addition to the existing Community Center and add for Sunnyvale Community Services the equivalent of 3,780 square feet at Washington Park. (The previous report specified movement of an existing 5,000 square foot portable facility, but staff’s intent has always been to provide an amount of space equivalent to that which Sunnyvale Community Services currently utilizes at the Senior Center.)

Staff Analysis

Option 6. Construction of a new 14,000 square foot addition to the existing Community Center with an additional 3,780 square feet of facility space leased at 820 West McKinley, Sunnyvale, to house Sunnyvale Community Services or to pay the equivalent amount of money to Sunnyvale Community Services to allow them to provide housing for themselves.

Staff Analysis

Option 7. Construction of a new 17,000 square foot addition to the existing Community Center to house the Senior Center operations and Sunnyvale Community Services.

Staff Analysis

Additional Options:

The strongest messages received from the older adult community during this public input phase were:

• A desire to be separate from the regular operations of Community Center, with a specific desire to have a separate reception/registration area, and
• The need for a facility that would allow the continuation of existing programs as well as future program expansion.

In response, staff has identified two additional options:

Option 8. Construction of a new 20,000 square foot addition to the existing Community Center with additional parking. (No accommodations for Sunnyvale Community Services.)

Option 9. Construction of a new 25,000 square foot addition to the existing Community Center. (No accommodation for Sunnyvale Community Services.)

Supplemental Options A and B (please see chart page 18) represent two options for dealing with Sunnyvale Community Services should Council choose not to accommodate these services at the Community Center:

• Open space is too precious a commodity to give up for this purpose;
• It would set a dangerous precedent to allow an on-going, dedicated non-recreational use of a park facility;
• The open space in question is a vital part of the park, both in appearance and function; a building in this location would seriously detract from park vistas and further reduce already limited open space for non-specific uses (e.g., Frisbee, volleyball and walking);
• Density of housing in this neighborhood is already high, leading to an increased need for open space;
• Problems related to inadequate parking and congested traffic would be exacerbated for this neighborhood;
• Concerns regarding future growth in the neighborhood and/or growth in Sunnyvale Community Services requiring even more space; and
• While the value of Sunnyvale Community Services was strongly supported, there was a sense that there are other more viable and desirable options to be considered.

On June 30, 1998, staff was informed by DeAnza College that it would be closing its Senior Workshop Program effective August 7, 1998, due to budgetary constraints (please see Attachment E - Letter from DeAnza College, Dated June 25, 1998, Regarding Closure of Senior Workshop Program).

Input from the Senior Center Advisory Committee mirrored the comments from the general public. There was concern over re-location of Community Services and DeAnza Senior Workshop and sensitivity to the cost involved with various options. The consensus of the committee was that the City should construct a new facility at the Community Center site and increase the size to meet current and future demands. The Committee is also interested and willing to provide input during the design phase.

Older adults have indicated they are sensitive to change, but have shown a willingness to consider options as well as the financial impact. There is strong support among Sunnyvale’s older adults for the construction of a new facility that will be large enough for future growth, designated for priority use by older adults, a stand alone single story structure (to better provide internal mobility for older people), easily accessible through vehicle drop off and parking, and constructed at the Community Center site. Those providing input expressed concern over the future location of Community Services and DeAnza Senior Workshop.

The City Manager’s Message to the FY 1998/99 Recommended Budget and Resource Allocation Plan underscores the importance of this project’s fiscal impact to the City. This message outlined several key points that must be considered as Council makes its decision. These include:

• The cost of providing a Senior Center beyond FY 2001/02 is not included in the FY 1998/99 Recommended Budget and Resource Allocation Plan. Staff preferred to represent the costs associated with the Senior Center lease until the lease terms were contractually completed. At the time of budget preparation, Council and staff had not thoroughly explored and qualified the fiscal impact of each Senior Center option, and it was felt premature to include the costs of any one option in the plan. This report provides this analysis, and Council’s decision will be incorporated into the FY 1999/00 Budget and Resource Allocation Plan.
• The Fiscal Uncertainties line item of the General Fund’s Fund Balance Sheet exists as a budgeted expenditure. This number is derived from the last year of the twenty-year financial plan. It is determined by setting the RAP reserve line item at zero for the twentieth year, but maintaining the required contingency reserve. A positive Fiscal Uncertainties number means that the City has latitude to deal with budget modifications, additional service requests, unexpected economic changes, and the effects of Federal and State legislation. On the other hand, a negative Fiscal Uncertainties number would reflect the amount of budget reduction and/or revenue increase that is needed in the first budget year in order to avoid the long-term financial plan going into a true deficit.
• The Senior Center represents only one of several potential City services that could impact the limited resources available in the Fiscal Uncertainties line item. Other potential projects from Parks and Recreation are expanded Teen Services and expanded Adult Swim opportunities.

The following updated chart titled Long Term Fiscal Impact represents the fiscal analysis of each potential option for the Senior Center. There are several key assumptions underlying this fiscal analysis. These include:

• Construction or purchase of a building to house the Senior Center would be funded by the issuance of certificates of participation (bonded debt), rather than utilizing cash reserves. The repayment period would span 25 years.
• Senior Center related costs presently budgeted in the FY 1998/99 Recommended Budget and 20 Year Resource Allocation Plan would be available for funding in each option. This results in a net cost to the General Fund for each option, reflecting the new funds needed.
• The net cost of each option would be funded by reducing the amount of money available in the General Fund’s Fund Balance Sheet.

The Long Term Fiscal Impact chart shows several columns for each option to aid Council in its decision making process. The first column, Total Costs, is associated with a particular option. While the nature of these costs vary by option, they include items like lease costs, debt service for construction and/or purchase costs of a building, routine building and grounds maintenance, and infrastructure replacement renovation. This column represents all costs associated with a particular option. The second column Costs, Budgeted in FY 1998/99 RAP, represents costs included in the FY 1998/99 Recommended Budget and Resource Allocation Plan. These are the present Senior Center lease through FY 2001/02, infrastructure replacement and renovation, and grounds maintenance. The third column, Net Addition To Next RAP, is simply the difference between the first two columns. In essence, this is the net cost of each option. This amount includes the new costs that the General Fund would have to bear over a 26-year period given Council’s decision on this project. The fourth and last column, Annualized Reduction to Fiscal Uncertainties, arrives at an annual average that a particular option would demand from the General Fund’s Fiscal Uncertainties line item. In the FY 1998/99 Recommended Budget and Resource Allocation Plan, the Fiscal Uncertainties line item was $1,397,953. This line item has already been reduced by $39,000 starting in FY 1998/99 in order to fund operating costs associated with night lights at Fair Oaks Park. Hence, the starting point for the FY 1998/99 Fiscal Uncertainties is now $1,358,953. As an example, assume that Council chose Option No.1 for the Senior Center. According to the fourth column of the Long Term Fiscal Impact chart, the reduction to the Fiscal Uncertainties line item would be $477,331 each year for 26 years. This adjustment would bring Fiscal Uncertainties down to $881,622 in FY 1998/99. Note that actual reductions to Fiscal Uncertainties would have to consider cash flow and financial planning issues; however, this annualized amount is provided as a decision making tool.

The public expressed a number of common concerns and suggestions regarding a future older adult facility. Accessibility and other design features are key elements for successful service delivery. Providing maximum facility space and providing for anticipated growth is especially important to the older adult community. Most older adults feel that moving the Senior Center to the Community Center site seems to make good sense, both financially and for coordination of Leisure Services.

• Sunnyvale Senior Citizens Club.
• Bayview Senior Citizens Club.
• Sunnyvale Multi-Purpose Senior Center Service Team.
• American Association of Retired People.
• Sunnyvale Senior Coordinating Council.
• Grandmothers Club.

It is important to note that no public contacts have been made to date which focus on the potential impact of this Study Issue to the Community Center neighborhood. Staff believes it wise to narrow the wide array of Community Center options presented for Council’s consideration prior to soliciting the Community Center neighborhood’s input on this issue. The alternatives presented for Council’s consideration acknowledge the need for further public input in this regard.

With regard to the Senior Center, from a programmatic and professional perspective, staff would like to recommend Alternative No. 8 (20,000 square feet addition to the Community Center). This recommendation would take into account staff’s desire to continue the provision of all existing services at both the Community Center and Senior Center, as well as provide a minimal amount of additional space to meet the future needs associated with a projected growth in older adult populations.

However, given the issues discussed in the Fiscal Impact section of this report, staff feels a fiduciary obligation to recommend Alternative No. 4 (14,000 square feet addition to Community Center). While this option does not fully satisfy either staff or the public from a programmatic perspective, all things considered it appears to be the most prudent course of action.

With regard to Sunnyvale Community Services, staff recommends against the relocation of that facility to either Washington Park or the Community Center. However, staff does recommend further exploration of other options that would meet the needs of Sunnyvale Community Services. The Executive Director of Sunnyvale Community Services supports staff’s recommendations.

The Parks and Recreation Commission, at its July 8, 1998, meeting, recommended Council approve Alternative 8, which would construct a 20,000 square foot building at the Community Center physically separate from existing Community Center buildings and named "Senior Center". Commission further recommended that a facility for Sunnyvale Community Services not be provided at Washington Park, the Community Center or any open space parkland and that other alternatives be explored that would meet the needs of Sunnyvale Community Services (please see Attachment H - Excerpt of Minutes from July 8, 1998, Parks and Recreation Commission Meeting).

Reviewed by:

Mary Bradley, Director
Finance Department

Approved by: