Contract Renewal

All BIDs have a contract with the City of New York’s Department of Small Business Services. Contract terms range from one to five years. SBS has established a contract review process that places emphasis on accountability, transparency and communication. The guidelines outlined below help determine the contract renewal term for each of the BIDs:

1. Board Participation

Key to a successful BID is an active and engaged Board that is kept abreast of policy and programmatic decisions, as well as budget issues facing the organization. While the frequency of BID Board meetings is left to the discretion of individual District Management Associations (DMAs), most BID Boards meet on a quarterly or bi-monthly basis. In order to assess a BID’s Board participation, SBS evaluates the percentage of Board meetings within the last calendar year at which a quorum was present (defined as majority of bona fide Board members).

2. Board Composition

To ensure that all stakeholders have adequate representation within the BID, SBS looks at each BID’s current Board composition. The composition of a BID’s Board is outlined in that BID’s district plan and the by-laws, specifying the mix of property owners, commercial tenants, City and elected officials, and, in some cases, residential tenantthat must be represented on the Board. BIDs with Boards that comply with the composition as outlined in their respective district plans will have fulfilled this requirement.

3. Fiscal Administration

Responsible fiscal management is at the foundation of any successful organization. All BIDs are required to submit CPA-audited financial statements to SBS on an annual basis. Those BIDs that have submitted their latest audited financial statements on time and whose audited financial statements have no material weaknesses will have fulfilled this requirement.

4. VENDEX and Division of Labor Services (DLS) Requirements

VENDEX is the City’s means for ensuring that it engages with contractors who exhibit responsibility and integrity in their business activities. All BIDs are required to submit VENDEX and Division of Labor Services (DLS) forms. Those BIDs that submit their VENDEX and DLS forms and receive VENDEX clearance will have fulfilled this requirement.