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Councilmember Narum asked if there is any indication of improvement in weekend occupancy rates. Ms. Steinman stated that weekend occupancy rates grew at a much higher rate than weekday rates last year, although there was significantly more room for growth in that area. She explained that occupancy rates overall have and may continue to be relatively flat as the ADR increases, as accomplishing a simultaneous increase both occupancy and ADR is extremely difficult. Councilmember Pentin asked and Ms. Steinman confirmed that only the hoteliers seated on the Visit Tri-Valley Board of Directors may vote to increase the assessment. Councilmember Narum asked and Ms. Steinman confirmed that participating hoteliers do have a method to override or reverse an approved increase in the assessment. Ms. Steinman explained that it would require a majority vote of participating hoteliers on the yearly anniversary of the TMD. She noted that there is another option to revise the assessment which would require reengaging with the consultants and essentially repeating this same process. Mayor Thorne asked if individual hotels, particularly smaller lodging business, may elect to opt out. Ms. Ott said "no," all lodging businesses within the map area must collect the assessment. Ms. Steinman explained that approval of the TMD requires and affirmative vote on behalf of 50% plus 1 of the overall number of hotel rooms represented. The TMD was passed with 85% in support. Ms. Ott continued the presentation, stating that the Tri-Valley has a collective total of 3,783 lodging rooms. Hoteliers with an aggregate total of 3,223 rooms have signed petitions in support of the TMD. 9 of Pleasanton's 13 lodging businesses totaling 1,552 rooms, Danville's sole hotel, 3 of the 4 lodging businesses in Dublin and 14 of Livermore's 19 hotels have signed the petition. While 4 of Pleasanton's lodging businesses did not sign the petition, overall support for the TMD has increased. Only the Rose Hotel, who fell below the TBID threshold of 35 rooms, has indicated a direct preference not to be included in the TMD. She advised that tonight's requested action is simply to pass a resolution indicating an intent to renew the district which will be followed by a request for TMD participants to authorize Pleasanton to take specific action to renew as the administrator. The item will return to the Council on April 21, 2015 following consideration by each member agency. All impacted lodging businesses will have an opportunity to make testimony before the Council takes final action on May 5, 2015. Concurrent to that process, the Council will be asked to codify the TMD in the Municipal Code, with the second reading expected to come before the Council on May 21, 2015. Vice-Mayor Brown noted that Tom Walker of the Rose Hotel contacted the Council more than once to share his concerns. She acknowledged the hotel's desire to opt of the district due to its smaller size and asked whether any of the other hotels within that ownership family shared the same concerns. Ms. Ott stated that the other hotels under the same ownership have indicated their support of the TMD. She explained that the Rose Hotel is a rather unique property among all of the lodging businesses within the Tri-Valley and generally see themselves as operating in a different space than the others. MOTION: It was m/s by Pentin/Narum to waive full reading and adopt Resolution No. 15-732 declaring the intention to renew the Tri-Valley Tourism Marketing District and fixing the time and place for public hearing, and Resolution No. 15-733 requesting consent from the Cities of Livermore and Dublin, the Town of Danville and the Counties of Alameda and Contra Costa to renew the Tri-Valley Tourism Marketing District and Administer Assessments. Motion passed by the following vote: City Council Minutes Page 5 of 12 February 17, 2015