REPORT TO COUNCIL
SUBJECT
Title
Approve the Fourth Amendment to an Agreement between City of Sunnyvale and Sunnyvale Historical Society and Museum Association Pertaining to the Costs for Water, Wastewater, and Garbage Utilities
Report
BACKGROUND
On June 15, 2004, the City Council approved an agreement (RTC No. 04-227) between the City and the Sunnyvale Historical Society and Museum Association (SHSMA) for the Design, Development, Operation and Maintenance of a Heritage Museum at Sunnyvale Heritage Center at the Sunnyvale Community Center. A First Amendment to the Agreement was entered on October 22, 2007, which modified the Agreement regarding landscaping obligations. A Second Amendment was entered into on February 15, 2012 regarding the use of the City’s multi-purpose building at the Sunnyvale Heritage Center. A Third Amendment was entered into on January 5, 2016 that would allow the Society to make improvements, modifications, and additions to the Museum and multipurpose building by installing solar panels (see Attachments 1 and 2). This Fourth Amendment would establish a methodology for billing the SHSMA for City-provided water, wastewater, and solid waste utilities.
The City Council is scheduled to consider this item on March 27, 2018.
EXISTING POLICY
Orchard Heritage Park Master Plan
Action Statements:
• Assist the Sunnyvale Historical Society per written agreements, and to the greatest extent practical, in developing a Heritage Museum facility at Orchard Heritage Park consistent with City Council direction.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(a) as it has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.
DISCUSSION
SHSMA is separately metered for water use, is charged for wastewater (sewer) use based on water use, and pays for solid waste and recycling service. In July of 2015, it was brought to staff’s attention by the SHSMA that water billing at the museum has been very volatile and not related to activity at the museum. Staff has been unable, even after conducting an investigation and making a fairly significant investment in the way the museum is plumbed, to identify the source of the variability. Bi-monthly bills can run from the equivalent of indoor use at a single-family home, to almost four times the average single family usage.
In order to resolve this issue, City staff and Historical Society staff worked collaboratively to come to an equitable solution. This agreement memorializes that the Historical Society shall pay the City for its water and sewer usage on an average water use basis, which is equal to the average winter water use for single family homes in Sunnyvale (seven hundred cubic feet per month), except billed at the commercial water and wastewater rates to be consistent with how the City treats similar customers. The Parks Division will be charged for the actual water used as described below in the Fiscal Impact Section. Solid waste and recycling billing would remain as is.
FISCAL IMPACT
The regular billing off the actual meter reads would be charged to the Parks Division in the Department of Public Works, which resides in the General Fund. This can be absorbed in the current year and adjusted for with the FY 2018/19 Recommended Budget. The SHSMA would be separately invoiced per the terms of the Fourth Amendment and revenue from the payments would go to the General Fund to offset the costs incurred by the Parks Division. This change is made retroactive to July 1, 2015 by the terms of the Fourth Amendment. The one-time impact of this adjustment is approximately $2,400 and would also be absorbed in the Parks Division budget.
PUBLIC CONTACT
Public contact was made through posting of the City Council agenda on the City’s official-notice bulletin board, on the City’s website, and the availability of the agenda and report in the Office of the City Clerk.
ALTERNATIVES
1. Approve the Fourth Amendment to Agreement between City of Sunnyvale and Sunnyvale Historical Society and Museum Association Pertaining to the costs for Water, Wastewater, and Garbage Utilities.
2. Do not approve the Fourth Amendment to Agreement between City of Sunnyvale and Sunnyvale Historical Society and Museum Association Pertaining to costs for Water, Wastewater, and Garbage Utilities.
RECOMMENDATION
Recommendation
Alternative 1: Approve the Fourth Amendment to Agreement between City of Sunnyvale and Sunnyvale Historical Society and Museum Association Pertaining to the costs for Water, Wastewater, and Garbage Utilities.
Staff
Prepared by: Timothy J. Kirby, Director of Finance
Reviewed by: Cynthia Bojorquez, Director of Library and Community Services
Reviewed by: Wayne Tanda, Interim Director of Public Works
Reviewed by: Teri Silva, Assistant City Manager
Approved by: Kent Steffens, City Manager
ATTACHMENTS
1. Fourth Amendment to an Agreement between City of Sunnyvale and Sunnyvale Historical Society and Museum Association