REPORT TO COUNCIL
SUBJECT
Title
Evaluate the City of Sunnyvale Study Issues Process (Study Issue OCM 24-02)
Report
BACKGROUND
The Study Issues process was created in the 1970s as part of the City’s Planning and Management System to provide a structured method for developing and prioritizing new policy initiatives. Over time, the process has become resource-intensive and complex.
In 2024, the City Council approved Study Issue OCM 24-02 (Attachment 2) to evaluate the effectiveness of the Study Issues process. The City engaged Raftelis, a respected local government consultant, to conduct the assessment. Work included interviews with all seven Councilmembers and 16 management staff, surveys of staff involved and all board and commission members (responses received from 39 staff and 21 board/commission members), a workshop with key staff, case studies of eight peer cities, and data analysis of costs, timelines, and outcomes.
At the August 26, 2025, Council study session, Raftelis presented their preliminary observations and suggested strategies for improvement. Council provided feedback on various topics such as desired level of board and commission input, use of consultants vs. in-house staff, maintaining a list of past study issues and the ability to add capital projects. The Raftelis final report (Attachment 1) reflects Council’s input and contributed to the final recommendations.
EXISTING POLICY
Council Policy 7.3.26 Study Issues Process
Council Policy 7.3.19 Council Meetings
Council Policy 7.2.19 Boards and Commissions
Council Policy 7.1.7 Budget Proposal Process
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(b)(5) in that it is a governmental, organizational or administrative activity that will not result in direct or indirect changes in the environment.
DISCUSSION
The consultant evaluation report presents the findings of an evaluation of the City’s long-standing Study Issues process. The assessment identified opportunities to streamline the process, reduce costs, and improve alignment with Council priorities and available staff resources. Recommendations include consolidating forms, simplifying Council and board/commission roles, eliminating the deferral process, and creating a more transparent and efficient system integrated with the budget cycle.
Consultant Key Findings
• High Costs: Over 2,500 staff hours ($347,000 annually) are spent preparing, reviewing, and ranking study issues before implementation.
• Low Approval Rate: Only about 27% of proposed study issues over the last decade were ultimately approved for implementation.
• Deferrals Inflate Timelines: Issues carried forward year-to-year create false expectations and increase staff workload.
• Board/Commission Role: Sunnyvale is atypical in asking advisory bodies to generate study issues, requiring significant staff resources.
• Terminology Confusion: The term “study issue” obscures that most are projects.
Raftelis provided recommendations across three categories:
1. Study Issue Proposal Process
o Eliminate most study issue papers (only prepare for Council-prioritized items).
o Modify board/commission input to optional idea discussions.
o Eliminate the January public hearing; expand February Workshop to include fiscal outlook, existing project review, and Council Priority Projects.
o Eliminate deferrals.
o Consolidate forms into one Council Priority Project form.
o Update terminology (“Council Priority Projects”, “Strategic Goals”).
2. Implementation Process
o Establish and maintain a public-facing dashboard.
o Provide targeted project updates to Council as needed.
o Track key project phases and staff time.
3. Prioritization and Resourcing Processes
o Conduct biennial review of Strategic Goals.
o Develop a comprehensive Strategic Plan.
o Apply criteria for adding mid-year projects (emergency, new funding, new mandates).
o Review budget and priorities process every five years.
Transition Planning
Successful implementation of the revised Study Issues process requires clear communication, sequencing, and alignment with existing Council workshops and the annual budget cycle. The following transition plan outlines activities beginning in Fall 2025 and continuing into Spring 2026.
Fall 2025 (October - December 2025)
• Council Direction: Present revised process to the City Council for adoption.
• Boards and Commissions Outreach: Notify commissions of their streamlined role. Staff liaisons will explain that each body may submit one idea annually to be displayed on the website that Council will reference when selecting their priority project ideas. Board and Commission ideas will be developed through a simple discussion and majority vote, with no staff report preparation.
• Guidelines and Documentation: Draft and distribute updated written guidelines describing the new process, roles, and terminology.
• Forms Consolidation: By November, staff will merge study issue and budget proposal forms into one “Council Priority Project” form; publish and circulate to Council.
• Deferral List Elimination: Remove all existing deferred items. During the transition, staff will maintain a list of prior deferrals for Council reference if requested. Councilmembers may reintroduce any ideas (including prior year ideas not advanced and/or current year Board or Commission ideas) within their annual allocation of three proposals each year.
• Terminology Updates: Update official documents and templates to reflect “Council Priority Projects” and “Strategic Goals.”
Winter 2026 (January 2026)
• Reference List Creation: Post list of brainstorm ideas online, including:
o Items not advanced from one prior year (during the transition year this list will include all deferred items as well as ideas introduced year to date this year).
o Up to one idea from each board/commission (if submitted).
This list will serve as a transparent reference point of ideas (as phrases, not papers) but will not include staff analysis.
Spring 2026 (February - March 2026)
• February Council Workshop (Revised Format):
o Begin with a fiscal update and City Manager’s assessment of staff capacity.
o Review ongoing Council Priority Projects and departmental projects; confirm, adjust, or retire Council Priority Projects.
o Consider new proposals (up to three per Councilmember). Council determines which projects advance for staff analysis, within the confines of the City Manager’s assessment of staff capacity and funding to take on new projects.
• Staff Analysis (March - April 2026): Staff prepares concise (3-5 page) reports only for the Council-supported projects and develops recommendations on which items can be incorporated into the recommended budget.
• Budget Workshop (May 2026): Council reviews the City Manager’s recommendations and adopts the final list of funded Council Priority Projects through the budget process.
Ongoing Activities
• Dashboard Development: Complete and launch a public-facing dashboard tracking Council Priority Projects and other major departmental initiatives.
• Training: Conduct onboarding sessions for Council, staff, and commission liaisons to ensure consistent understanding of the new process.
• Evaluation: Staff will assess the effectiveness of the new process, gather feedback from Council and boards/commissions, and recommend refinements every five years.
Future (2027)
• Strategic Plan: Develop a timeline for creating a comprehensive Strategic Plan to guide long-term Council goals.
Council Policy Updates
To align with the consultants’ recommended changes, staff proposed the following policy revisions:
• Policy 7.1.7 Budget Proposal Process - Redline Version (Attachment 3)
o Proposed Revision: Delete and incorporate into revised Study Issues Process policy.
• Policy 7.2.19 Boards and Commissions - Clean Version (Attachment 4) and Redline Version (Attachment 5)
o Proposed Revision: Update 1.A. Policy Statement and 2. Board and Commission Bylaws H. Duties sections of the policy to reflect board and commission members input in the Council Priority Projects Process.
• Policy 7.3.19 Council Meetings - Clean Version (Attachment 6) and Redline Version (Attachment 7)
o Proposed Revision: Add new language under the Colleagues Memorandum section to include criteria for mid-year project consideration.
• Policy 7.3.26 Study Issues Process - Clean Version (Attachment 8) and Redline Version (Attachment 9)
o Proposed Revision: Update policy title, purpose and statement to reflect process changes.
FISCAL IMPACT
There is no fiscal impact associated with this report. Council approval of the recommended revisions to the Study Issues Process does not have an immediate fiscal impact; however, implementing recommendations is expected to free up staff hours that can be reallocated to implementation of Council priorities and core services.
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 City Hall 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.
ALTERNATIVES
1. Receive and file the Raftelis Evaluation Report (Attachment 1)
2. Approve the Proposed Policy 7.1.7 Budget Proposal Process - Redline Version (Attachment 3 to the report)
3. Approve the Proposed Policy 7.2.19 Boards and Commissions - Clean Version (Attachment 4 to the report)
4. Approve the Proposed Policy 7.3.19 Council Meetings - Clean Version (Attachment 6 to the report)
5. Approve the Proposed Policy 7.3.26 Study Issues Process - Clean Version (Attachment 8 to the report)
6. Other direction as provided by Council.
STAFF RECOMMENDATION
Recommendation
Alternatives 1, 2, 3, 4 and 5:
1. Receive and file the Raftelis Evaluation Report (Attachment 1);
2. Approve the Proposed Policy 7.1.7 Budget Proposal Process - Redline Version (Attachment 3 to the report);
3. Approve the Proposed Policy 7.2.19 Boards and Commissions - Clean Version (Attachment 4 to the report);
4. Approve the Proposed Policy 7.3.19 Council Meetings - Clean Version (Attachment 6 to the report); and
5. Approve the Proposed Policy 7.3.26 Study Issues Process - Clean Version (Attachment 8 to the report).
Levine Act
LEVINE ACT
The Levine Act (Gov. Code Section 84308) prohibits city officials from participating in certain decisions regarding licenses, permits, and other entitlements for use if the official has received a campaign contribution of more than $500 from a party, participant, or agent of a party or participant in the previous 12 months. The Levine Act is intended to prevent financial influence on decisions that affect specific, identifiable persons or participants. For more information see the Fair Political Practices Commission website: www.fppc.ca.gov/learn/pay-to-play-limits-and-prohibitions.html
An “X” in the checklist below indicates that the action being considered falls under a Levine Act category or exemption:
SUBJECT TO THE LEVINE ACT
___ Land development entitlements
___ Other permit, license, or entitlement for use
___ Contract or franchise
EXEMPT FROM THE LEVINE ACT
___ Competitively bid contract*
___ Labor or personal employment contract
___ Contract under $50,000 or non-fiscal
___ Contract between public agencies
_X_ General policy and legislative actions
* "Competitively bid" means a contract that must be awarded to the lowest responsive and responsible bidder.
Staff
Prepared by: Michelle Zahraie, Senior Management Analyst
Reviewed by: Sarah Johnson-Rios, Assistant City Manager
Approved by: Tim Kirby, City Manager
ATTACHMENTS
1. Evaluation Report on Study Issues Process (Raftelis, October 2025)
2. Study Issue Paper OCM 24-02
3. Policy 7.1.7 Budget Proposal Process - Redline Version
4. Policy 7.2.19 Boards and Commissions - Clean Version
5. Policy 7.2.19 Boards and Commissions - Redline Version
6. Policy 7.3.19 Council Meetings - Clean Version
7. Policy 7.3.19 Council Meetings - Redline Version
8. Policy 7.3.26 Study Issues Process - Clean Version
9. Policy 7.3.26 Study Issues Process - Redline Version