REPORT TO COUNCIL
SUBJECT
Title
Public Hearing to Adopt a Resolution Confirming the Annual Report to Levy and Collect an Annual Assessment for the Downtown Sunnyvale Business Improvement District (BID) for Fiscal Year 2026/27
Report
BACKGROUND
On March 10, 2026, the City Council approved the Fiscal Year 2025/26 Annual Report and adopted the Resolution of Intention (ROI) to renew the Downtown Sunnyvale Business Improvement District (BID). Council set May 5, 2026, as the public hearing date to allow BID businesses an opportunity to support or oppose the BID renewal. The public hearing will allow Council to hear and consider protests against the BID renewal and/or protests regarding proposed BID activities.
If businesses paying 50% or more of the total BID assessments file protests before the end of the public hearing, no further proceedings to renew the BID can occur. If protests do not exceed 50%, Council can adopt the Resolution to Confirm the Annual Report and Levy and Collect an Annual Assessment for Fiscal Year 2026/27.
Approximately 260 businesses are located within the BID area, which is divided into three zones: Zone A, Zone B, and Zone C. The current boundaries are Sunnyvale, Iowa, Mathilda, and Evelyn Avenues.
The current BID 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, Sares Regis - The Martin
Dr. Gary Gold, Dr. Gary Gold and 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
Pursuant to Sunnyvale Municipal Code section 3.60.050, entitled “Establishment of benefit assessment,” the formula for calculating the BID assessment amount is determined by the BID Board and enacted by the City Council. The BID Board included the budget in the FY 2025/26 Annual Report approved by Council on March 10, 2026. The assessment amounts will remain unchanged for FY 2026/27.
Public Hearing and Protest Process
Council must conduct a public hearing, which shall be conducted as provided in the Streets and Highway Code sections 36524 and 36525, regarding protests against specific types of activities and improvements. A protest may be made in writing or orally and shall clearly state the objection to specific activities. If written protests from BID business owners paying 50% or more of the proposed assessments are received, then a majority protest exists, and no further proceedings to levy the proposed assessments shall be taken for one year from May 5, 2026.
The process for the public hearing is as follows:
• The Mayor calls the BID’s Board member to provide an overview of BID activities.
• The Mayor opens the public hearing.
• City staff will review any written protests that were filed with the City Clerk at or before the time fixed for the public hearing. If a person submitting a protest is not shown on the official records of the City of Sunnyvale as the business owner, then the protest shall contain or be accompanied by written evidence that the person protesting is the business owner. A written protest that does not include this information or comply with the requirements shall not be counted in determining a majority protest.
• Staff begins logging confirmed protests at the beginning of the public hearing. If protests are tabulated before the end of the public hearing, staff will convey the outcome, and Council will be able to act.
• If protests are not tabulated before the end of the public hearing, Council may take a short break or continue the item and move on to the next agenda item. At the conclusion of the agenda item after tabulation is complete, the Mayor will reopen the public hearing item, and staff will report the results.
• If total protests do not exceed 50% or more of the BID’s total proposed assessments, Council may act to adopt the Resolution Confirming the Annual Report and to Levy and Collect an Annual Assessment for the BID for FY 2026/27.
If protests do not exceed 50%, staff recommends that Council adopt the Resolution of the City of Sunnyvale Confirming the Annual Report and to Levy and Collect an Annual Assessment for the BID for FY 2026/27.
FISCAL IMPACT
An estimated annual 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 on the City in providing the administrative service.
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.
A copy of the Resolution of Intention adopted on March 10, 2026, was mailed to all BID members and published in the legal ads section of the Sunnyvale Sun on April 17, 2026.
ALTERNATIVES
1. Adopt a Resolution to confirm the Annual Report and Levy and Collect an Annual Assessment for the Downtown Sunnyvale Business Improvement District for Fiscal Year 2026/27.
2. Do not adopt a Resolution to confirm the Annual Report and Levy and Collect an Annual Assessment for the Downtown Sunnyvale Business Improvement District for Fiscal Year 2026/27.
STAFF RECOMMENDATION
Recommendation
Alternative 1: Adopt a Resolution to confirm the Annual Report and Levy and Collect and Annual Assessment for the Downtown Sunnyvale Business Improvement District for Fiscal Year 2026/27.
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
Reviewed by: Connie Verceles, Assistant City Manager
Approved by: Tim Kirby, City Manager
ATTACHMENTS
1. Resolution to Confirm the Annual Report and Levy and Collect and Annual Assessment for Fiscal Year 2026/27