REPORT TO COUNCIL
SUBJECT
Title
Approve the Downtown Sunnyvale Business Improvement District (BID) Annual Report for Fiscal Year 2025/26 and Adopt Resolution of Intention to Levy and Collect an Annual Assessment to Reauthorize the BID for Fiscal Year 2026/27
Report
BACKGROUND
A Business Improvement District (BID) is a funding tool that allows participating businesses to pool their resources to fund specific activities supporting their business district. It must be authorized yearly by the City Council at the request of the BID Board of Directors (Board). Pursuant to Sunnyvale Municipal Code Section 3.60.050 (Establishment of benefit assessments), the formula for calculating the BID assessments amount is determined by the Board and enacted by the City. Each business pays an assessment based on the benefit it receives from the funded activities. The City collects the assessments and sends the collected funds to the BID, minus an administrative fee.
The BID funds are used for marketing and special events that promote the downtown area. These activities help all businesses and would be difficult for individual businesses to do on their own.
Approximately 260 businesses are located within the BID area, which is divided into three zones: Zone A, Zone B and Zone C. The boundaries are Sunnyvale, Iowa, Mathilda and Evelyn Avenues (Attachment 1, Page 10).
The current Board members are:
Amit Rajgarhia, Chair, Dishdash
Justin Breining, Vice Chair, Whole Foods Market
Leigh Odum, Secretary, Leigh’s Favorite Books and Bookasaurus
Molly McClendon, Treasurer, Sares Regis Group
Dr. Gary Gold, Dr. Gary Gold & Associates
EXISTING POLICY
Sunnyvale Municipal Code Sections - Downtown Sunnyvale Business Improvement District
3.60.050. Establishment of benefit assessments.
3.60.060. Purpose of use of benefit assessments.
3.60.110. Annual budget process.
3.60.120. Decisions regarding expenditure of funds.
ENVIRONMENTAL REVIEW
The action being considered is not a “project” within the meaning of the California Environmental Quality Act because it is a government funding mechanism that will not result in a potentially significant physical impact on the environment. (CEQA Guidelines, Section 15378(b)(4).)
DISCUSSION
The BID renewal process requires the Board to submit the BID’s annual report (Attachment 1) for Fiscal Year 2025/26 and the proposed budget for Fiscal Year 2026/27 to the City Council for approval. The Board is also requesting that Council adopt a Resolution of Intention (ROI) (Attachment 2) to begin the BID renewal process for Fiscal Year 2026/27.
As of February 2026, the BID collected about $37,000 in assessments for Fiscal Year 2025/26. Including revenue from special events, total revenue for the current year is estimated to be about $325,000 and expenditures are approximately $355,000. The annual report does not include pending sponsorships expected in May, which could add about $30,000 in revenue. These funds were not included because the sponsorship was secured after the report was approved.
The proposed budget for fiscal year 2026/27 (Attachment 1, Pages 6 and 7), as approved by the Board, is $227,000. This includes $35,000 from BID assessments; $96,000 revenue from special events, such as the Summer Music Series and Taste of the World Wine Stroll; and $96,000 from corporate grants and sponsorships, City funding and other revenue.
The proposed budget is lower next year because the BID does not have an executive director or other administrative staff. Instead, the Board will be hiring an event coordinator and event staff to manage all planned events. The Board will provide regular status updates to Economic Development staff. The City’s Vice Mayor traditionally serves as an ex officio member of the Board. The Board will handle administrative duties, including web management, marketing, outreach to BID members, and general operations.
During fiscal year 2025/26, the BID produced events that included the Summer Music Series, Jazz & Beyond Series and the Taste of the World Wine Stroll. Events attract visitors to the downtown area and provide about 45% of the BID’s annual revenue. The BID will produce the Summer Music Series, Taste of the World Wine Stroll, Pet Parade and Annual Holiday Tree Lighting in Fiscal Year 2026/27. The Jazz and Beyond Series will not be produced due to the budget reduction. The BID promotes BID businesses to help them promote special activities and promotions and provides a downtown business map and directory on their website. These tools make it easier for visitors to find what they are looking for in downtown Sunnyvale.
To renew the BID for Fiscal Year 2026/27, Council must approve the BID’s Annual Report and adopt the Resolution of Intention. Pursuant to Sunnyvale Municipal Code Section 3.60.110, the Resolution of Intention sets a public hearing for May 5, 2026, for the Council to consider oral and written protest received on or before that date regarding the levy and collection or the assessment and reauthorization of the BID for fiscal year 2026/27. Notice of the BID’s public hearing will be published in a local newspaper and mailed to all BID businesses.
FISCAL IMPACT
An estimated administration cost of $4,500 will be charged to the BID to administer and collect the BID assessment. Since the BID pays the administrative cost, there is no fiscal impact to the City for providing administrative 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.
RECOMMENDATION
Recommendation
Approve the Fiscal Year 2025/26 BID Annual Report, adopt a Resolution of Intention to Levy and Collect an Assessment and Reauthorize the Business Improvement District for Fiscal Year 2026/27, and schedule the public hearing for May 5, 2026.
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: Maria Rodriguez, Economic Development Specialist
Reviewed by: Christine Velasquez, Economic Development Manager, OCM
Reviewed by: Connie Verceles Deputy City Manager
Reviewed by: Sarah Johnson-Rios, Assistant City Manager
Approved by: Tim Kirby, City Manager
ATTACHMENTS
1. BID Annual Report
2. Resolution