REPORT TO COUNCIL
SUBJECT
Title
Approve the Downtown Sunnyvale Business Improvement District Annual Report for Fiscal Year 2018/19; and Adopt Resolution of Intention to Levy and Collect an Annual Assessment and Reauthorize the BID for Fiscal Year 2019/20
Report
BACKGROUND
A Business Improvement District (BID) 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
Approximately 215 businesses are 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 8). Board members volunteer 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 Sunnyvale
• Crystal Zemlin, RiverRock Real Estate Group
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 promotes the downtown area by maintaining an active website, social media, and 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
As part of the annual reauthorization, the Board is presenting the BID Fiscal Year 2018/19 report and budget for Fiscal Year 2019/20. The Board is requesting that Council adopt the Resolution of Intention (ROI) (Attachment 2) to begin the BID renewal process for Fiscal Year 2019/20.
As of January 2019, the BID collected a total of $35,740 of the $39,300 due from assessments for Fiscal Year 2018/19. Expenditures are approximately $225,707 and revenues are approximately $225,178. The proposed budget for Fiscal Year 2019/20 (Attachment 1, Pages 6 and 7), as approved by the Board, is $234,800. This proposed budget includes $36,000 from BID assessments; $160,000 from special events, such as the Summer Music Series and possible sponsorships; and, $38,800 from corporate grants, matching funds from the City and other miscellaneous revenues. The Board has requested an increase of the City’s matching funds from $30,000 to $40,000 increasing the BID’s budget by $10,000. The increase request will be considered at the budget study workshop on March 7, 2019.
In Fiscal Year 2018/19, the BID produced events that drew visitors to Downtown Sunnyvale. Events included the Summer Music Series, Jazz & Beyond Series, Magic of Sunnyvale Wine Stroll and the Holiday Tree Lighting. The events attracted visitors and provided about 65% of the BID’s annual revenue. The BID promotes BID businesses on their website (SunnyvaleDowntown.com), business directory, Twitter, and Facebook (<https://www.facebook.com/sunnyvaledowntownassociation>) posting highlights of different downtown businesses and events.
For the BID to be reauthorized for Fiscal Year 2019/20, 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 May 7, 2019 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 2019/20.
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.
STAFF RECOMMENDATION
Recommendation
Approve the Fiscal Year 2018/19 BID Annual Report, adopt the Resolution of Intention to Levy and Collect an Assessment and Reauthorize the Business Improvement District for Fiscal Year 2019/20, and schedule the public hearing for May 7, 2019.
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 the 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 assessment, 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 2019/20