REPORT TO COUNCIL
SUBJECT
Title
Approve the Downtown Sunnyvale Business Improvement District (BID) Annual Report for Fiscal Year 2017/18; and Adopt Resolution of Intention to Levy and Collect an Annual Assessment and Reauthorize the BID for Fiscal Year 2018/19
Report
BACKGROUND
A Business Improvement District is a funding tool that provides funding for specific activities that must be reauthorized yearly by the City Council at the request of the BID Board (Board). Businesses pay into the BID based on the benefit they receive as members of the district.
Pursuant to Sunnyvale Municipal Code Section 3.60.050, Establishment of benefit assessments, the formula for calculating the BID assessment amount is determined by the Board and enacted by the City. Business assessments are levied based on relative benefit from the activities to be funded. The City collects the assessment fee and forwards the collected funds to the BID, minus an administrative fee.
Downtown Sunnyvale BID
There are approximately 215 businesses located in the existing BID area, which is divided into three zones: Zone A, Zone B, and Zone C. The current BID boundaries are Sunnyvale, Iowa, Mathilda and Evelyn Avenues (Attachment 1, Page 15). The Board volunteers their time to lead and manage the BID.
The current Board members are:
Joe Antuzzi, Il Postale, Board Chair
Dr. Gary Gold, Dr. Gary Gold & Associates & Style Eyes Optique, Board Vice-Chair
Leigh Odum, Leigh’s Favorite Books and Bookasaurus
Irene Murphy, Fibbar MaGee’s
Amit Rajgarhia, Dish Dash
Victor Reynoso, Aloft Hotel
The Board communicates with BID businesses to keep them informed about current projects affecting downtown as well as other issues and programs. The BID offers businesses the means to pool their resources by assessing themselves to collectively pay for programs, marketing, and special events which would not be possible on an individual basis. Also, the Board continues to work to promote the downtown area by maintaining an active website, social media tools, and other promotions through their downtown events.
EXISTING POLICY
Municipal Code Sections - Downtown Sunnyvale Business Improvement District:
3.60.050. Establishment of benefit assessments.
3.60.060. Purpose and use of benefit assessments.
3.60.110. Annual Budget Process.
3.60.120. Decisions regarding expenditure of funds.
ENVIRONMENTAL REVIEW
This action is not a project within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(4) in that it involves the creation of government funding mechanisms or other government fiscal activities that do not involve any commitment to any specific project which may result in a potentially significant impact on the environment.
DISCUSSION
The Board is requesting reauthorization for Fiscal Year 2018/19. As part of the annual reauthorization, the Board is presenting the BID Fiscal Year 2017/2018 report based on current estimates and budget for Fiscal Year 2018/19. Council is also asked to adopt the Resolution of Intention (ROI) (Attachment 2) to begin the BID renewal process for Fiscal Year 2018/19.
As of December 2017, the BID collected a total of $32,447 of the $39,000 due from assessments for Fiscal Year 2017/2018. Expenditures are approximately $173,525 of the $184,206 budget with a projected balance of $10,681 to be used for the remainder of this fiscal year for additional marketing. The proposed budget for Fiscal Year 2018/2019 (Attachment 1, Page 8), as approved by the Board, is $191,356. This proposed budget includes $32,000 from BID assessments; $116,956 from special events, such as the Summer Music Series and possible sponsorships; and, $42,400 from corporate grants, matching funds from the City of Sunnyvale and other miscellaneous revenues.
In Fiscal Year 2017/2018, the BID produced events that drew visitors to Downtown Sunnyvale. Events held include the Summer Music Series, Jazz & Beyond Series, Magic of Sunnyvale Wine Stroll and the Holiday Tree Lighting. These events attracted visitors and provided about 60% of the BID’s annual revenue. The BID also promotes BID businesses on their website (SunnyvaleDowntown.com), business directory, and Facebook (<https://www.facebook.com/sunnyvaledowntownassociation>) posts highlighting different downtown businesses and events.
In order for the BID to be reauthorized for fiscal year 2018/19, Council must approve the BID’s Annual Report (Attachment 1) and adopt the Resolution of Intention (Attachment 2). Notice of the public hearing on the BID will be published in a local newspaper and mailed to all BID members. Pursuant to Sunnyvale Municipal Code Section 3.60.110, the Resolution of Intention sets a public hearing for April 24, 2018 for the Council to consider all oral and written protests received on or before that date regarding the levy and collection of the assessment and reauthorization of the BID for Fiscal Year 2018/19.
FISCAL IMPACT
Staff time from the Department of Finance is provided at an estimated cost of $3,500 annually for the administration of the assessment. Because these costs are reimbursed by the BID, there is no fiscal impact to the City for providing this service.
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 BID Board also emailed all BID members the meeting announcement.
ALTERNATIVES
1. Approve Fiscal Year 2017/18 BID Annual Report, adopt the Resolution of Intention to Levy and Collect an Annual Assessment and Reauthorize the BID for Fiscal Year 2018/19, and schedule the public hearing for April 24, 2018.
2. Do not approve the BID Annual Report for Fiscal Year 2017/18 or adopt the Resolution of Intention for BID reauthorization.
STAFF RECOMMENDATION
Recommendation
Alternative 1: Approve the Fiscal Year 2017/2018 BID Annual Report, adopt the Resolution of Intention to Levy and Collect an Assessment and Reauthorize the Business Improvement District for Fiscal Year 2018/2019, and schedule the public hearing for April 24, 2018.
The BID produces events in Downtown Sunnyvale that continue to attract visitors to businesses during and after the events. Over the past several years, the BID has continued to utilize tools that expand outreach. Some of those tools include social media, business directory, and ad placement in the local newspapers and hotel brochures. BID members appreciate the expanded marketing that highlights different businesses on the website and Facebook that helps attract new customers. Through shared resources paid by the BID assessments, the BID can provide additional marketing tools that would otherwise not be available to individual businesses.
Prepared by: Maria Rodriguez, Administrative Analyst
Reviewed by: Connie Verceles, Economic Development Manager
Reviewed by: Teri Silva, Assistant City Manager
Approved by: Kent Steffens, City Manager
ATTACHMENTS
1. BID Annual Report and Budget
2. Resolution of Intention to Levy and Collect an Assessment and Reauthorize the Downtown Sunnyvale Business Improvement District for Fiscal Year 2018/19