REPORT TO HERITAGE PRESERVATION COMMISSION
SUBJECT
Title
Review Planning Program Budget and Fees for FY 2024/25
Report
REPORT IN BRIEF
Boards and Commissions are asked to provide comments to the City Council on the recommended City budget where it could affect the Commission’s work. Staff recommends that the Commission review the following sections of the FY 2024/25 Recommended Budget (see Attachments 1 and 2):
At a minimum, staff recommends the Heritage Preservation Commission (HPC) review the following sections:
• City Manager’s Letter of Transmittal: Volume I, pp. 9-17
• Community Development Department Overview: Volume I, pp. 301-319
• Project 834790 - Addition to the Heritage Resource Inventory of Sites Associated with Tech Innovation: Volume II, p. 556
• Project 836530 - Update Historical Context for Contributions by Asian Americans & other Minority Groups: Volume II, p. 576
(Refer to Attachment 1 for Volume I and Attachment 2 for Volume II)
Comments will be forwarded to the City Council for their consideration of the recommended budget adoption scheduled for June 18, 2024. The HPC's recommendation will take place after the annual Council public hearing on the budget on June 4, 2024, due to the timing of the budget release and regular HPC meeting schedule on the first Wednesday of the month.
ENVIRONMENTAL REVIEW
The HPC’s recommendation on the budget is not subject to environmental review under the California Environmental Quality Act (CEQA) because it is a fiscal or administrative activity that will not result in direct or indirect changes to the physical environment [CEQA Guidelines Section 15378(b)(4), (5)].
DISCUSSION
Sunnyvale’s budget process alternates each year between the operating budget and the capital budget. This year is focused on the operating budget. While the previous operating budget in FY 2022/23 was reflective of uncertainty around the COVID-19 pandemic and shelter in place order, the current operating budget reflects a current and long-term stable outlook. The General Fund is projected to be balanced at both ten and twenty years.
Budget Summary Highlights
The recommended budget includes the restoration of services that were impacted in the last two years. For example, the budget funds an additional 25.5 full-time equivalent (FTE) employees in various departments to increase service levels. Community Development added a new Housing Specialist to the Housing Division and the Planning Division has been able to fill three FTEs. The recommended budget for all funds totals $731 million, up $122.7 million from FY 2023/24. The operating budget increased by $26.8 million from $335.2 million to $362 million.
Community Development Department (CDD) Overview
CDD is responsible for land use policy planning and development review to ensure compliance with the Sunnyvale Municipal Code and other government regulations related to the physical development of the City and welfare of community members. CDD is organized into four programs: Building Safety; Planning; Housing/Community Development Block Grant (CDBG); and Department Management. A list of CDD accomplishments for the previous FY 2023/24 are included on pages 302 to 304.
Work related to the HPC comes from the Planning Program. The Planning Program oversees policy planning and land use/development review, with the aim of improving the quality of life in the City through comprehensive and effective policy planning.
Below is the budget summary for the Planning Program. Staff recommends an increase of 4.5% from the current fiscal year (FY 2023/24) to the next fiscal year (FY 2024/25). The Land Use/Development Review budget is based on fees collected with applications. Permit activity has steadily increased since the last fiscal year. While the permit count may not reach the levels prior to the pandemic, the types and complexity of permits has increased significantly due to recent state laws. The summary is as follows:
CDD Budget Summary
Public Hearing Applications
The Planning Division processes a variety of applications, including staff-level and public hearing applications. Public hearing applications are either referred to the Zoning Administrator for minor permits, Planning Commission on major permits, or the HPC for decisions on heritage resources. The public hearing applications for FY 2024/25 are expected to increase for Planning Commission and City Council and a minor increase for HPC for Study Issue projects and other minor follow-up items.
Operating Budget
The recommended budget includes the restoration of services that were impacted in the last two years. For example, four positions that were previously frozen in CDD have now been funded. In addition, funding in the amount of $3,500 has been added for the heritage resources plaque program. The recommended operating budget for CDD includes 55 staff positions and funds totaling $13,252,789, up $922,327, or 7.5% from FY 2023/24.
Study Issue Funding
The recommended budget includes $75,000 in previous project funding for an HPC-related study issue (Project 834790) to update the Heritage Resource Inventory to include potential resources associated with technological innovation. The funds are used to contract with an historical consultant to assist staff in completing the study issue. Planning staff hours are covered within the normal operating budget. Kick-off of this study issue commenced in April 2024 and will take approximately one to two years to complete.
The recommended budget also includes $50,000 in project funding for an HPC-related study issue (Project 836530) to update the City’s Historical Context Statement for contributions by Asian Americans and other minority groups. The funds are being applied to contract with an historical consultant to assist staff in completing the study issue.
At the February 15, 2024 Study Issues and Budget Proposals Workshop, the City Council deferred CDD 18-02 (Update and Review of the Heritage Resource Inventory), which will return for consideration at the workshop in 2025. The Council also dropped Study Issue CDD 19-06 (Programs to Encourage Visitation to Heritage and Landmark Resources).
Public Hearing
The HPC has the option to make comments on the budget or to make a motion on the budget, which will be provided to the City Council for the public hearing on the recommended budget adoption scheduled for June 18, 2024.
PUBLIC CONTACT
Public contact was made by posting the Council meeting agenda on the City's official-notice bulletin board at City Hall, at the Sunnyvale Public Library and in the Department of Public Safety Lobby. In addition, the agenda and this report are available at the NOVA Workforce Services reception desk located on the first floor of City Hall at 456 W. Olive Avenue (during normal business hours), and on the City's website.
RECOMMENDATION
Recommendation
Provide comments to the City Council or make a formal recommendation to the City Council on the FY 2024/25 Recommended Budget.
Prepared by: Momo Ishijima, Senior Planner
Reviewed by: George Schroeder, Principal Planner
Approved by: Shaunn Mendrin, Planning Officer
ATTACHMENTS
1. Link to FY 2024-2025 Recommended Budget Volume 1 - Summary and Operating Budget
2. Link to FY 2024-2025 Recommended Budget Volume 2 - Projects Budget