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BACKGROUND The decision to renew the regional tourism assessment district as the Tri-Valley Tourism Marketing District (TVTMD) rests with the lodging businesses within the city limits of Pleasanton, Livermore, Dublin, and Danville and within the designated areas of unincorporated Alameda and Contra Costa Counties. While the original and renewed assessment district only included those lodging properties with 35 or more rooms, this renewal includes all 37 lodging businesses within the identified geographic areas, regardless of number of rooms. The voting strength for each lodging business is determined by the property's number of rooms factored by occupancy rate. Approval of the renewal of the tourism assessment district requires a simple majority of 50% + one of total district's lodging properties rooms. At the time the Pleasanton City Council initially considered the renewal at its February 17, 2015, meeting, 27 (of 36) lodging businesses representing 85% of the room nights, and therefore 85% of the estimated total voting strength, had voted in favor of renewing the Tri-Valley Tourism Marketing District and had signed a petition agreeing to such renewal of the assessment district. This exceeds the minimum required for approval. Structure/Budget As proposed, the Tri-Valley Tourism Marketing District will maintain its existing governance structure with the Visit Tri-Valley Board of Directors acting as the board of directors for the tourism district; as such, more than half of the voting Board members must represent TVTMD lodging businesses. The draft Management District Plan (MDP) presented at the February 17 City Council meeting details the operational specifications and $1,822,000 annual budget of the proposed district. The MDP further outlines the assessment structure, which is set at the current $2.00 per room night assessment with an option to increase the assessment starting in the third year (2018) but not to exceed $3.00 per room night. This is comparable with progressive tourism business improvement districts throughout the region and state. In reference to the possible increases in the assessment — potentially raising the assessment to $3.00 per occupied room night— the lodging businesses represented on the VTV Board will consider and vote on these increases on an annual basis. Any such proposed changes would be reported directly to the lodging businesses as well as in the TVTMD annual report. The renewal is proposed to begin on July 1, 2015 and last for seven years through June 30, 2022. Administration Pleasanton has served as the lead agency in forming the assessment district and administering assessments, and will continue to do so to renew the district and administer assessments. Each city and county is responsible for collecting the assessments from the lodging businesses in that jurisdiction. The cities/counties then transmit the funds on a quarterly basis to Pleasanton which, in turn, forwards the funds to Visit Tri-Valley. The cities of Danville, Dublin and Livermore, and the counties of Alameda and Contra Costa, will each be paid a fee equal to 1% of the amount of the assessments collected within their jurisdiction to cover their costs of collection and administration. The City of Pleasanton will be paid a fee equal to 1% of the amount of the assessment collected in the city, plus 1% of the total assessment collected from all jurisdictions to cover the costs of collection and administration. Page 2 of 4