REPORT TO COUNCIL
SUBJECT
Title
Annual Public Hearing-Discussion of Potential Council Study Issues and Budget Issues for Calendar Year 2018
Report
BACKGROUND
Council typically reviews all study and budget issues once a year at the Annual Public Hearing which provides the opportunity for members of the public to comment on proposed issues for study or budget consideration, and/or to suggest potential new issues. The public may provide further testimony regarding study and budget issues during the February 16, 2018 annual workshop on study and budget issues.
On February 16, 2018, Council will conduct a workshop devoted to a review of all proposed study and budget issues. At the workshop, Council will rank study issues for completion during 2018 and will identify budget issues to be forwarded to the City Manager for consideration in the FY 2018/19 budget. A study issue is a topic of concern that can result in a new City policy or a revision to an existing policy. A budget issue represents a new City service or a change in the level of an existing City service (including possible service reduction or elimination).
City Council will review operational priorities and adopted policy priorities during their Strategic Workshop on January 19, 2018. To help guide decision making, staff recommends that Council continue to focus on prioritizing study and budget issues that align with existing policy priorities. The following is the list of policy priorities established by Council during the 2017 Strategic Workshop:
1. Civic Center Campus and Main Library
2. Ability of Infrastructure to Support Development and Traffic
3. Open Space Acquisition Planning: Future of Golf Courses
4. Downtown Sunnyvale
5. Improved Processes and Services through the use of Technology
6. Accelerating Climate Action
If Council changes any of the priorities listed above at its January 19 meeting, the Council will be provided an updated list of policy priorities on January 23.
Staff appreciates that Council has limited and aligned issues to existing policy priority areas and considered limited staff resources to complete study issues. A Strategic Planning Workshop is scheduled for January 19, providing an opportunity for staff to share with Council the progress made since their action to focus City efforts on specific policy goals. The workshop will also provide the context for the review of newly proposed study/budget issues for 2018. Formal review and ranking of those proposed study/budget issues is scheduled for February 16, 2018.
Study and Budget Issues Process
The study issues process provides a method for identifying, prioritizing and analyzing policy issues important to the community. It provides a structured approach for addressing the large number of issues that are raised each year, allowing Council to rank the issues and set priorities within the limits of time and resources.
The budget issues process provides a method for identifying and addressing proposals to add a new service, eliminate a service, or change the level of an existing service. Please note, that no budget issue papers are submitted for the public hearing.
Major Steps in the Process Leading to the Public Hearing
• Study and budget issues are proposed year-round by Council, boards and commissions, the public, or the City Manager.
• Staff prepares study issue papers or budget issue papers for all qualifying issues. These issue papers describe the topic of concern and provide information Council will use to determine whether or not to further explore each issue. The study issue paper is also designed to capture the intent and interests that originated the issue. The purpose of the budget issue summary form is to briefly summarize the issue and provide an initial estimate of the fiscal impact.
• During October-December boards/commissions review and rank proposed budget and study issues under their purview; these rankings are forwarded to Council for consideration.
EXISTING POLICY
Council Policy 7.3.26 Study Issues Process
Council Policy 7.1.7 Budget Issues Process
Council Fiscal Policy 7.1.1 A.1.2 which states, “A Fiscal Issues Workshop will be held each year prior to preparation of the City Manager’s Recommended Budget to consider budget issues for the upcoming Resource Allocation Plan.”
ENVIRONMENTAL REVIEW
The action being considered does not constitute a "project" with 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
Staff has prepared write-ups of the study issues proposed to date. As noted above, no budget issues have been proposed to date. These study issue papers and other materials can be viewed on the City’s Study Issues Website at <https://sunnyvale.ca.gov/government/governance/study/default.htm>, the Sunnyvale Public Library, or at the City Clerk’s office. Copies will also be available to the public at the Study Issues/Budget Issues Public Hearing.
From the time since the last Study Issues/Budget Issues Workshop in 2017, staff returned to Council two completed studies. Additionally, staff has 10 Study Issues still underway and three identified as Priority C. Per the March 28, 2017 Report to Council (RTC 17-0165), Priority C Study Issues were not likely to be absorbed in 2017, and would only be absorbed if the capacity presents itself. These Study Issues will carry forward for City Council consideration in the 2018 Study Issue Workshop. Staff has recommended supporting 13 studies on their merit from the proposed 2018 issues; however, staff is concerned about capacity to complete even some of them due to current policy priority related efforts underway.
The table below summarizes study issues proposed by Boards and Commissions (B/Cs). Based on B/Cs requests, staff prepared 19 study issues. After review, B/Cs dropped three study issues and deferred three study issues advancing 13 of the B/C sponsored study issues.
Study Issues/Budget Issues Public Hearing
This Public Hearing is a critical step in the City’s policy-setting process. Several policy issues are submitted annually for possible study by City Council in the upcoming calendar year. The purpose of the hearing is to invite public comment on the relative importance of proposed issues, and for the public to suggest new issues for Council’s consideration. Issues proposed by the public must be sponsored by at least two Councilmembers to be considered at the Study/Budget Issues Workshop. Staff has advised the board and commission chairs that this is also the appropriate time for them to testify on issues recommended by their board or commission.
Should new issues be added during the January Public Hearing, those issue papers will be developed and distributed to Council as soon as possible prior to the February 16 Workshop. The deadline for Council-initiated study or budget issue papers is January 26 (3 weeks prior to the Workshop per Council policy). However, to increase transparency, staff requests that new study/budget issues are proposed and co-sponsored at a public Council meeting, making January 23 the last date.
Study Issues/Budget Issues Workshop
On February 16, Council will conduct a workshop devoted to a review of all proposed study and budget issues. Council will prioritize or rank study issues that are not dropped or deferred. Budget issues receiving majority support from Council will be forwarded to the City Manager for consideration in the upcoming fiscal year’s recommended budget.
Following the Council Workshop, and based on Council’s priority rankings, the City Manager identifies the number of Council-ranked study issues that can be completed during the calendar year without disrupting service delivery or modifying service levels set by Council. Staff updates the Tentative Council Meeting Agenda Calendar for the coming year, identifying when the results of staff’s study of specific policy issues will be brought back to Council for action. Lower-priority issues ranked by Council, but not placed on the Council calendar, are automatically reconsidered during the next year’s study issue process.
All budget issues referred to the City Manager are returned for Council’s consideration as a part of the City Manager’s Recommended Budget for the next fiscal year in the form of budget supplements. These supplements are considered by the City Manager in the context of all the other City projects and services, but are not automatically recommended by the City Manager for funding.
For many years this approach has provided both City Council and City staff with a valuable planning and management tool. It allows Council to set priorities for examining policy issues, provides preliminary review of budget issues, and allows staff to balance policy study with the delivery of day-to-day City services.
FISCAL IMPACT
There is no fiscal impact associated with this report. Each issue paper provides information regarding fiscal impact where warranted, including an estimated cost of studying the issue and estimated implementation costs. Staff recommends any Council-prioritized study issues that require funding be resubmitted as a budget supplement to be considered within the context of all new requests for funding in the FY 2018/19 Recommended Budget. This is consistent with past practice.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City's official-notice bulletin board outside City Hall, at the Sunnyvale Senior Center, Community Center and Department of Public Safety; and by making the agenda and report available at the Sunnyvale Public Library, the Office of the City Clerk and on the City's website.
The public hearing is open to the public and public testimony regarding study issues and budget issues will be heard by Council. Copies of study and budget issue papers may be viewed by accessing the City’s Study Issues Website at <https://sunnyvale.ca.gov/government/governance/study/default.htm>.
The February 16 workshop is open to the public and will be televised live and rebroadcast on KSUN, Channel 15. Consistent with past Council practice, public testimony will be provided at the beginning of the workshop.
STAFF RECOMMENDATION
Recommendation
No action is needed at this time. Councilmembers may request new study issues and/or budget issues be developed for review at the Annual Study Issues/Budget Issues Workshop; a minimum of two Councilmembers is required to sponsor either.
Staff
Prepared by: Lupita Alamos, Senior Management Analyst
Reviewed by: Teri Silva, Assistant City Manager
Approved by: Kent Steffens, City Manager
ATTACHMENTS
1. Proposed 2018 Study Issue Papers (Hyperlink)