REPORT TO COUNCIL
SUBJECT
Title
Approval of the Payment of City Traffic Control Costs Associated with the Special Event Permit for the Sunnyvale Chamber of Commerce 2026 Art and Wine Festival with City Funds in an Amount Not to Exceed $6,000 from the Council Set Aside
Report
BACKGROUND
The Sunnyvale Art & Wine Festival, organized by the Sunnyvale Chamber of Commerce, has been a longstanding community tradition, marking its 50th year in 2026. The event had been recognized as the largest and longest-running festival held within the City, drawing residents, families, and visitors to downtown Sunnyvale for a celebration of art, culture, and local business. The festival is free and open to the public, with a focus on accessibility and inclusion, and is planned in close coordination with City departments to ensure public safety and effective event management. The festival reflects the diversity and vibrancy of Sunnyvale, providing significant economic and cultural benefits to the community and supporting the Chamber’s year-round programs for local businesses and nonprofits.
City policy requires that large-scale public events, such as the Art & Wine Festival, obtain a Special Event Permit, which includes compliance with regulations related to public safety, traffic control, and use of public spaces. The permit process mandates submission of a detailed application at least eight weeks prior to the event and requires review by multiple City departments. Events that necessitate street closures or traffic control must submit a traffic control plan and are responsible for associated City costs, including personnel and equipment. These requirements are established to ensure the safe and orderly conduct of events that impact public rights-of-way and City operations.
In recent years, the Chamber has experienced increased costs related to event implementation expenditures. To address these rising expenses and maintain the festival’s fundraising capacity, the Chamber has sought City support through the Community Events Grant Program. The City’s approach to funding such requests is guided by Council Policy 7.2.18, which outlines criteria for grant eligibility, use of City funds, and the public benefit requirement for expenditures. These requests go through the Community Events and Neighborhood Grants Program Council Subcommittee (the Subcommittee).
The Subcommittee reviewed the Chamber’s application for funding related to the 2026 Art & Wine Festival during its December 1, 2025 meeting (RTC 25-0593). The Subcommittee discussed the Chamber’s request in the context of program guidelines, which prohibit grant funding for fundraising events and ultimately did not recommend funding. As a result, the Chamber requested that the City consider City funding for specific City-incurred costs, such as traffic control, justified by the overall community benefit of the event.
EXISTING POLICY
Council Policy 7.2.4, Relationships with Outside Groups
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)(4) in that is a fiscal activity that does not involve any commitment to any specific project which may result in a potential significant impact on the environment. In addition, temporary uses such as festivals are categorically exempt from review under CEQA pursuant to CEQA Guidelines Section 15304(e).
DISCUSSION
The proposed action authorizes the use of City funds to pay for traffic control services required under the Special Event Permit for the 2026 Sunnyvale Chamber of Commerce Art and Wine Festival. This payment will cover City-incurred costs for personnel and equipment necessary to implement the approved traffic control plan, as mandated by the City’s special event permitting process. The scope of services includes, but is not limited to, the deployment of barricades, cones, signage, and City staff to manage street closures which encompasses multiple downtown streets over the two-day festival period.
Implementation will proceed upon Council approval, with coordination between the Chamber of Commerce and relevant City departments to finalize operational details and confirm the traffic control plan. The timeline for execution aligns with the event dates of June 6-7, 2026, and requires advance scheduling of City resources to ensure adequate staffing and equipment availability. The City will track all direct costs and funds will be applied to offset these expenses as permitted by policy.
This action is fully compliant with City policy, which prohibits the waiver of City fees but allows for the use of grant funds to pay for City-incurred costs when a public benefit is demonstrated and all application requirements are met. The proposed approach ensures transparency, fiscal accountability, and adherence to established regulations governing the use of public funds for community events. No exceptions to standard procedures or special considerations outside of policy are anticipated for this event.
FISCAL IMPACT
Funding is available in Project 829630 - Council Set Aside. This project sets aside $100,000 annually throughout the General Fund twenty-year planning period for unplanned projects, services, or other initiatives that come up over the course of the fiscal year. No Set Aside funds have been used for the current fiscal year and the full balance remains available.
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 payment of City Traffic Control Costs Associated with the Special Event Permit for the Sunnyvale Chamber of Commerce 2026 Art and Wine Festival with City funds in an amount not to exceed $6,000 from the Council Service Level Set-Aside
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
_X_ Contract under $50,000 or non-fiscal
___ Contract between public agencies
___ General policy and legislative actions
* "Competitively bid" means a contract that must be awarded to the lowest responsive and responsible bidder.
Staff
Reviewed by: Michelle Perera, Library and Recreation Services Director
Reviewed by: Ramana Chinnakotla, Interim Public Works Director
Reviewed by: Connie Verceles, Assistant City Manager
Approved by: Tim Kirby, City Manager