The purpose of this chapter is to implement the Downtown Sunnyvale Business Improvement District ("District").
(Ord. 2830-07 § 1)
In order to distinguish between District businesses and for the purpose of calculating and applying the amount of assessments owed, the following definitions shall apply:
Retail businesses.
"Retail businesses" include all businesses not covered by other definitions set out in this section, at least fifty percent of whose gross income is derived from "retail sales" as that term is defined under the California Sales and Use Tax Law. The fact that a substantial part of its business consists of sales other than retail sales does not exclude said business from this classification so long as such other business component does not account for more than fifty percent of said business gross income.
Restaurants.
"Restaurant" businesses include cafés, eating establishments, sandwich shops, dinner houses, restaurants, stand-alone bars, fast food services and other similar businesses.
Sales and service.
"Sales and service" businesses include businesses that combine retail and product services. Examples are appliance stores, most automotive-oriented businesses, repair shops, repairing and servicing businesses and service stations. Other businesses of a general service-type nature such as personal care salons, general office, news and advertising media, printers, renting and leasing businesses, utilities, vending machine businesses, household finance companies, entertainment businesses and other similar businesses not otherwise included in subsections a, b, d, e, or f are included in this section.
Professional.
"Professional" includes attorneys, architects, accountants, engineers, surveyors, physicians, dentists, optometrists, chiropractors, acupuncturists and others in a medical/health service field, consultants, real estate brokers, financial advisors, laboratories (including dental and optical), hearing aid services, artists, photographers and designers.
Lodging.
"Lodging" includes renting rooms by the day or week to community visitors.
Financial.
"Financial" includes banks, savings and loans, credit unions, etc.
Calendar year.
"Calendar year" means January 1 to and including December 31 of the same year.
Billing period.
"Billing period" shall refer to the fiscal year period of July 1st to June 30th.
(Ord. 2830-07 § 1)
A Business Improvement District is hereby established pursuant to the Parking and Business Improvement Area Law of 1989, Streets and Highway Code Section 36500 et seq. The boundaries of the District and the benefit zones within the District shall be as set forth on the Boundary Map, including any modifications, of the Downtown Sunnyvale Business Improvement District on file in the office of the city clerk.
(Ord. 2830-07 § 1; Ord. 2999-13 § 2)
There shall be a board of directors ("Board") of the District to administer the affairs of the District. Said board shall be constituted of businesses within the District. Within the board there shall be a president, vice-president, secretary and treasurer elected by the membership, and such other officers as deemed necessary by the board. Such other officers shall be appointed by the board of directors at their discretion. All voting within the District regarding election of board members and any actions regarding the normal and routine conducting of District business shall be based on the one vote per assessed dollar, and said business must be current in payment of their District assessment(s) to participate in such votes.
(Ord. 2830-07 § 1)
All businesses, trades and professionals located within the District shall, commencing July 1, 2007, pay an annual benefit assessment to the District in the following amounts:
Zones of Benefit
Zone A
Zone B
Zone C
Retailers, Restaurants, Stand-Alone Bars
$ 500
$ 300
$ 150
Service Businesses
$ 300
$ 200
$ 100
Professional Services Businesses
$ 100
$ 100
$ 100
Lodging
$10/room
$10/room
$10/room
Financial Institutions
$ 500
$ 500
$ 500
(a) 
The average benefit assessment is two hundred five dollars per year or approximately four dollars per week.
(b) 
Zones of benefit are determined as follows: "Zone A" will be all businesses within the Historic Area with a front or rear entrance on S. Murphy Street. "Zone B" will be businesses in the Historic Area without direct access to the S. Murphy Avenue including all breezeway businesses, businesses located on Washington Ave. (from Frances to Sunnyvale), businesses on the west side of Frances and adjacent to Plaza del Sol on Taaffe Street and businesses in the Town Center Murphy Avenue extension including future businesses within Redwood Square. "Zone C" will be all other businesses located in downtown area, as described above, which are not included in either "Zone A" or "Zone B."
(c) 
Business type definitions are as follows:
(i) 
Retail and Restaurant. Businesses that buy and resell goods. Examples are clothing stores, shoe stores, office supplies, stand-alone bars as well as businesses that sell prepared foods;
(ii) 
Service Businesses. Businesses that sell services. Examples are beauty and barber shops, repair shops, most automotive-oriented businesses, entertainment businesses such as theaters, etc.;
(iii) 
Professional Businesses. Includes architects, engineers, attorneys, dentists, doctors, accountants, optometrists, chiropractors, acupuncturists, realtors, insurance officers, mortgage brokers and most other businesses that require advanced and/or specialized licenses and/or advanced academic degrees;
(iv) 
Lodging. Includes renting rooms by the day or week to community visitors; and
(v) 
Financial Institutions. Includes banking and savings and loan institutions, as well as credit unions, etc.
(Ord. 2830-07 § 1; Ord. 3118-17 § 2)
The types of improvements and activities proposed to be funded by the levy of assessments on businesses in the District are as follows:
(a) 
The acquisition, construction, installation, or maintenance of any tangible property with an estimated useful life of five years or more including, but not limited to, the following improvements: benches, trash receptacles, decorations, façade improvements, and permanent landscaping.
(b) 
Activities including, but not limited to, the following:
(i) 
Promotion of public events which benefit businesses in the area and which take place on or in public places within the area;
(ii) 
Furnishing of music in any public place in the area; and
(iii) 
Any other activities which benefit businesses located and operating in the area, including, but not limited to, commercial marketing, advertising and promotional programs.
(Ord. 2830-07 § 1)
No person or business within the District shall be required to pay an assessment based on: (a) a residential or governmental use of the property within the District; or (b) a non-profit organization as defined by Section 501(c)(3) or 501(c)(6) of the Internal Revenue Code.
(Ord. 2830-07 § 1)
Any new business established within the District shall not be required to pay an assessment for the billing period during which said business is initiated. The business will have been considered initiated on the date of issuance of the business license. This waiver shall not apply to an existing business that has changed ownership or location within the District. The city agrees to supply the District with timely information regarding new businesses initiated within the District.
(Ord. 2830-07 § 1)
The benefit assessment established by this chapter for Sunnyvale businesses shall be billed and collected each fiscal year on July 1st. The city will bill and collect the assessments and forward all funds collected to the District within thirty days of said collections. Late payment penalties shall be applied to businesses that do not provide their respective assessment payments on the dates provided for herein at a rate of ten percent per month. At such time as late payment penalties equate to fifty percent of the total annual assessment, action shall be taken based on established city policies to recover said delinquent assessments. Costs of this recovery shall be borne by the business owing the assessment and late penalties.
(Ord. 2830-07 § 1)
Contributions to the District shall be permitted on a voluntary basis. The boundary of the District shall not be modified as a result of the contribution, nor shall said contributing business be considered a member of the District for voting or other purposes. However, said business making a voluntary contribution may be entitled to participate in the programs of the District upon a finding by the board of directors that the District derives a benefit from said business participation in the program.
(Ord. 2830-07 § 1)
Pursuant to the Act, it shall be necessary for the District board of directors to present an annual budget for city council review and approval prior to the beginning of each fiscal year. The purpose of this process is to comply with the Act provisions regarding public notice and hearing prior to establishing the benefit assessments for the following fiscal year. The city shall not adopt, modify or otherwise amend any fiscal year budget of the District that is inconsistent in any way with said fiscal year's budget as agreed to and presented by the District board of directors, except in the case of a written majority protest (regarding elimination or modification of any specific budget item) from business owners which will pay fifty percent or more of the assessments proposed to be levied as to any specific budget item pursuant to Streets and Highways Code Section 36525(b). In such case the written protest regarding any specific budget item shall be grounds to eliminate or modify said expenditure from the District's proposed budget pursuant to the written protest.
(Ord. 2830-07 § 1)
The city specifically finds and declares that the funds derived from the District shall not be used to offset or diminish current maintenance, capital improvement programs, including but not limited to, public property and sidewalk cleaning, street cleaning and maintenance, tree maintenance, restroom cleaning and maintenance. The city declares its intent to provide at least the same level and standard of maintenance and repair of public property within the District providing city funds are available from year to year.
(Ord. 2830-07 § 1)
Proceeding to disestablish the District shall be initiated by the city council following the presentation of a petition to the city council signed by business owners paying fifty percent or more of the assessments levied in the District. Proceedings to disestablish the District shall follow the procedures set forth in Streets and Highways Code Section 36550. The city council shall disestablish the District if, following the public hearing prescribed in Streets and Highways Code Section 36550(b), written protests are not withdrawn as to reduce the protests below the fifty percent level. In the event of disestablishment of the District, remaining revenues of the District shall be refunded to paying business owners in a pro-rata manner calculated in the same manner as was used to establish the most recent assessments applied in the District.
(Ord. 2830-07 § 1)