REPORT TO COUNCIL
SUBJECT
Title
Approval of Budget Modification No. 17 to Provide Funding for Temporary Planning Staff and Authority to Modify Contracts (F15-17)
Report
REPORT IN BRIEF
Council approval is requested for Budget Modification No. 17 to provide $300,000 over the next two years for temporary planning staff due to increased workloads and vacancies. Approval is also requested to delegate authority to the City Manager to modify contracts awarded in conjunction with this request, as more fully explained below.
ENVIRONMENTAL REVIEW
N/A.
BACKGROUND AND DISCUSSION
Development activity in Sunnyvale has been trending up for the past four years and is expected to continue at a high level for the next several years. This reflects the strength of the Silicon Valley economy and Sunnyvale's desirability as a place for business and residential growth. This growth is represented by both new development as well as investments to modernize existing older buildings. Additional resources are needed in the Planning Division in order to keep pace with the increased number, scope and complexity of permit applications. The current situation has been complicated by key staffing vacancies that staff is actively trying to recruit for in an already competitive market.
Staff has identified a number of firms who can provide on-call temporary planning service over the next two years. In order to ensure the best level of availability to meet workload demands, four on-call contracts would likely be issued under the City Manager's award authority, each one estimated at $70,000. If viable temporary staff could not be selected through the consulting firms for whatever reason, the contracts would be adjusted downward in order to hire qualified temporary employees directly through the City's Department of Human Resources. Additional administrative support would be required as well, estimated at $20,000, which could be separately procured through a temporary staffing firm or though Human Resources.
Based on resource availability and fit, once awarded, the staffing contracts may need to be amended. In the event a particular contract amendment exceeds the Council approval threshold of $100,000, staff is requesting pre-approval for the City Manager to execute the amendment(s), so long as there is corresponding decrease to one or more of the other contracts such that the total appropriation of $300,000 is not exceeded.
FISCAL IMPACT
Staff is requesting approval of Budget Modification No. 17 to appropriate $300,000 to flexibly respond to the demand for increased services which cannot be accommodated at the existing staffing level.
Because the request for additional resources is related to development activity, staff recommends providing funding from the Development Enterprise Fund Reserve. The Fund was established with the FY 2014/15 Adopted Budget to separately track development related revenues and expenses. Therefore, these costs will be absorbed by fees paid by users of these services.
Additionally, while the Finance Department is still in the process of closing FY 2013/14, it is clear that Development Enterprise Fund revenues ended higher than anticipated, so this appropriation can be made without a significant impact to the fund's fiscal health. Currently, revenues are expected to end FY 2013/14 approximately $1.1 million higher than planned.
Budget Modification No. 17 has been prepared to effectuate the changes discussed above.
Budget Modification No. 17
FY 2014/15
|
Current |
Increase/ (Decrease) |
Revised |
Development Enterprise Fund |
|
|
|
Expenditures |
|
|
|
New Project - Community Development Department Temporary Planning Services |
$0 |
$300,000 |
$300,000 |
|
|
|
|
Reserves |
|
|
|
Development Enterprise Reserve |
$6,613,397 |
($300,000) |
$6,313,397 |
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.
RECOMMENDATION
Recommendation
1) Approve Budget Modification No. 17 to appropriate $300,000 to a special project for temporary planning services; and 2); Delegate authority to the City Manager to amend resultant contract(s) to a level greater than $100,000 so long as there is a corresponding decrease to the other contracts and the total appropriation of $300,000 is not exceeded.
Staff
Prepared by: Pete Gonda, Purchasing Officer
Reviewed by: Grace K. Leung, Director of Finance
Reviewed by: Teri Silva, Director of Human Resources
Reviewed by: Hanson Hom, Director of Community Development
Reviewed by: Robert A. Walker, Assistant City Manager
Approved by: Deanna J. Santana, City Manager