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Staff Report PREPARED BY: ROBERT SCHULTZ Town Attorney Reviewed by: Town Manager, Assistant Town Manager, and Finance Director 110 E. Main Street Los Gatos, CA 95030 ● 408-354-6832 www.losgatosca.gov TOWN OF LOS GATOS TOWN COUNCIL REPORT MEETING DATE: 03/05/2019 ITEM NO: 3 DATE: FEBRUARY 28, 2019 TO: TOWN COUNCIL FROM: LAUREL PREVETTI, TOWN MANAGER SUBJECT: AUTHORIZE THE TOWN MANAGER TO EXECUTE A GRANT AGREEMENT WITH THE LOS GATOS CHAMBER OF COMMERCE FOR PARTIAL FUNDING IN THE AMOUNT OF $22,000 FOR A CONSULTANT TO ASSIST WITH THE FORMATION OF A LOS GATOS PROPERTY BUSINESS IMPROVEMENT DISTRICT RECOMMENDATION: Authorize the Town Manager to execute a grant agreement with the Los Gatos Chamber of Commerce for partial funding in the amount of $22,000 for a consultant to assist with the formation of a Los Gatos Property Business Improvement District (PBID). BACKGROUND: The Chamber of Commerce has created a PBID Steering Committee that has been exploring the possibility of forming a downtown Los Gatos Property Business Improvement District (LGPBID) and recently solicited a proposal for consultant services from Civitas, a firm specializing in the formation of PBIDs (Exhibit A to Attachment 1). At the Town Council meeting on January 22, 2019 and again on February 19, 2019 the Chamber of Commerce Executive Director requested the Town to prioritize and help subsidize the formation of a LGPBID. At the Town Council meeting other members of the public also spoke in support of the formation of a PBID. DISCUSSION: Property Business Improvement Districts are a type of assessment district in which business and/or property owners choose to be assessed a fee, which is collected on their behalf by the Town, for use in promoting and improving the business area. Downtown Los Gatos is an area PAGE 2 OF 3 SUBJECT: AUTHORIZE THE TOWN MANAGER TO EXECUTE A GRANT AGREEMENT WITH THE LOS GATOS CHAMBER OF COMMERCE FOR PARTIAL FUNDING IN THE AMOUNT OF $22,000 FOR A CONSULTANT TO ASSIST WITH THE FORMATION OF A LOS GATOS PROPERTY BUSINESS IMPROVEMENT DISTRICT DATE: FEBRUARY 28, 2019 S:\COUNCIL REPORTS\2019\03-05-19\Chamber Agreement\Staff Report.docx DISCUSSION (continued): that has a large concentration of independent stores that are not part of a shopping center and must promote themselves as individuals instead of as part of a shopping center. PBIDs have been established in over 200 business areas in California including Mountain View, Palo Alto, Santa Clara, and San Jose. Activities that can be supported with PBID funds include, but are not limited to: • Enhanced maintenance and beautification • Promotional events to draw customers to the downtown • Banners • Promotion and marketing of downtown businesses A PBID can only be developed by the businesses and/or property owners and must have their majority support for implementation. The Town's primary role is to support the businesses leading the PBID formation effort. The Town cannot impose formation of a PBID on businesses and/or property owners. Many cities have provided seed funding for a PBID formation process with the goal of decreasing the respective jurisdictions’ costs for a particular geographic area. For example, the City of Palo Alto provided $35,000 and many hours of staff time to assist the businesses in forming a BID. The City of Santa Clara contributed about $27,000 towards the hotel BID formation process and allocated about $10,000 to assist with implementing the hotel BID. The City of San Mateo granted $40,000 to begin the process of forming a PBID. Attachment 1 is an agreement between the Town and the Chamber to fund an agreement between the Chamber and Civitas for Phase One formation of the proposed LGPBID in the amount of $22,000 that would include guiding an owner outreach program, preparing and manipulating customized maps and databases, and determining a district service plan and budget. FISCAL IMPACT: Funding for this agreement comes from the use of the Council Contingency line item in the Fiscal Year 2018/19 Operating Budget ($20,000) and the remainder will be absorbed in the Town’s FY 2018/19 Operating Budget. PAGE 3 OF 3 SUBJECT: AUTHORIZE THE TOWN MANAGER TO EXECUTE A GRANT AGREEMENT WITH THE LOS GATOS CHAMBER OF COMMERCE FOR PARTIAL FUNDING IN THE AMOUNT OF $22,000 FOR A CONSULTANT TO ASSIST WITH THE FORMATION OF A LOS GATOS PROPERTY BUSINESS IMPROVEMENT DISTRICT DATE: FEBRUARY 28, 2019 S:\COUNCIL REPORTS\2019\03-05-19\Chamber Agreement\Staff Report.docx CONCLUSION: Authorize the Town Manager to execute an agreement for services with the Los Gatos Chamber of Commerce in an amount of $22,000. Attachment: 1. Los Gatos Chamber of Commerce Agreement, with Exhibit A This Page Intentionally Left Blank