16 - Laserfiche WebLink

Renewal of the TVTBID requires submission of petitions by businesses who will pay more than 50% of the proposed assessment; further, if a majority written protest is filed the district cannot be formed. A majority written protest is defined as written protests from businesses which will pay 50% or more of the proposed assessment. After individual and group outreach by the CVB, 26 (of 37) lodging businesses, representing 78.5% percent of the total voting strength, are in favor of renewing the TVTBID as recommended and have signed a petition agreeing to such renewal of the assessment district; this meets the minimum required for approval. Specific to Pleasanton, there are 12 TVTBID lodging businesses located in the city, 8 of which have signed the petition. For comparison, when the TVTBID was established 21 of the 36 lodging businesses (representing 64% voting strength) had signed petitions in support of the district, 6 of which were in Pleasanton. Based on $1.00 per paid occupied room night, the TVTBID had been raising approximately $1,000,000 annually from the lodging businesses in the Tri- Valley cities, although over the past two years the decrease in tourism travel brought about by the difficult economic climate has decreased this to about $840,000. The CVB estimates that with the increase to $2.00 per paid occupied room night, the annual TVTBID budget will be $1,520,000. Of this anticipated $1,520,000 in total district assessments approximately 38 or $577,600, will come from lodging businesses in Pleasanton; approximately 27 or $410,400, will come from lodging businesses in Livermore; approximately 22 or $334,400, will come from lodging businesses in San Ramon; approximately 12 or $182,400, will come from lodging businesses in Dublin; and approximately 1 or $15,200, will come from lodging businesses in Danville. This augmented budget is anticipated to realize a 17% increase in generated leads and a 22% increase in trackable potential room nights as a result of added marketing and promotional activities. In reference to the possible increase of up to $0.10 in years four and five potentially raising the assessment to $2.10 in year four and $2.20 in year five the CVB board will consider and vote on these increases on an annual basis. No additional voting of the lodging businesses would be required as their approval of the renewal includes the base of $2.00 per occupied room night plus the additional increases of up to $0.10. Any proposed changes would be reported directly to the lodging businesses as well as in the TVTBID annual report. Pleasanton will continue to serve as the lead agency in renewing the district and administering assessments, while each city will remain responsible for collecting the assessments from the lodging businesses in that city. As is done currently, the cities will transmit the funds to Pleasanton which, in turn, forwards the funds to the CVB. For administering the district on behalf of the CVB, the City of Pleasanton will receive an administrative fee of up to 1% of the TVTBID's estimated $1,520,000 budget, or $15,200 each year. As well, consistent with the existing district budget, annually each city collects a BID collection fee to collect assessments from lodging businesses located within each of their cities prior to forwarding funds to the City of Pleasanton. The combined total for this collection fee is 1% of the TVTBID's estimated $1,520,000 Page 3 of 5