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BACKGROUND The Parking and Business Improvement Area Law of 1989 (Streets & Highways Code 36500, et seq.) requires the City Council to use a three-step process to levy the annual assessment for the PDA Business Improvement District. The three steps are as follows: e Ratify an advisory board to prepare the PDA annual report and budget (completed on October 6, 2015). e Accept the report and budget and set a public hearing to levy the assessments (completed on November 3, 2015). e Open and close a public hearing and adopt by resolution the assessments (to be completed on December 1, 2015). Over the past 25 years, these steps have been conducted annually to formally levy the BID assessment. DISCUSSION Proposed Changes For 2016, the Pleasanton Downtown Association Advisory Board recommended the BID boundaries map shown in Chapter 5.28.040 of the Pleasanton Municipal Code be updated to 1) remove numerous residentially zoned parcels along Ray Street and Walnut Drive which are not assessed the BID assessment and 2) include nine commercially zoned parcels along Old Bernal Avenue on which businesses do pay the BID assessment. The Advisory Board also recommended no change in the formula used to levy the assessment for 2016 but that the new business exemption be eliminated. The City Council introduced an ordinance to implement these changes at its November 3, 2015 meeting, and at its November 17, 2015 meeting adopted the ordinance with the changes effective January 1, 2016. There was no public comment on these changes at either meeting. Business Improvement District Assessment The PDA annual assessment revenue in 2016 is budgeted at $66,000, which remains the same as in 2015. Currently, assessments are based on proximity to Main Street, with a minimum assessment of $50 and a maximum assessment of $350. The assessment formula — which has been used since 1996 — is based on the annual business license payment and is calculated as follows: e businesses located curbside and downstairs on Main Street are assessed at two times (2X) their business license; e businesses with a Main Street address located upstairs, or not curbside, are assessed at a rate of one and a half times (11/2X) their business license; e all other businesses (those located off Main Street) pay an amount equal to one times (1X) their business license. Non-profit businesses within the District are not assessed. Included in the current agreement between the City and the PDA, the City contributes funds to match the annual assessment revenue. This $132,000, consisting of the Page 2 of 3