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
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