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3 THE CITY OF CITY COUNCIL AGENDA REPORT PLEASANTON. April 15, 2020 Economic Development TITLE: APPROVE A BUSINESS ASSISTANCE PROGRAM TO SUPPORT THE RETENTION OF LOCAL BUSINESSES INCLUDING THE DEVELOPMENT AND ALLOCATION OF A BUSINESS SUPPORT FUND, AND ADOPT A RESOLUTION WAIVING FINES, PENALTIES AND INTEREST PAYMENTS FOR FAILURE TO PAY TRANSIENT OCCUPANCY TAX, WATER SERVICE FEES, AND SEWER USER CHARGES AND SUSPENDING REQUIRED SECURITY DEPOSITS FOR WATER AND SEWER SERVICE BECAUSE OF THE COVID-19 NATIONAL, STATE, AND LOCAL EMERGENCY SUMMARY Businesses are an integral part of the Pleasanton community, from the jobs they provide for residents to the essential services and amenities supported by the revenues they generate. To assist in retaining businesses that are experiencing financial loss of income due to the COVID-19 pandemic, the City has developed a framework for a Business Assistance Program designed to share information and resources, and provide relief to local businesses so they can bridge the gap until allowed to re-open and fully operate. This program is aligned with the goals and objectives of the City's Economic Development Strategic Plan which specifically identifies economic health and long-term resilience as a priority area so the City can continue to provide high-quality public services and amenities for the benefit of the community. STAFF RECOMMENDATION Staff recommends the City Council approve a Business Assistance Program framework including the development and allocation of a business support fund, and adopt a resolution waiving the imposition of Transient Occupancy Tax and City utility fines, penalties and interest, and suspending required City utility deposits. FINANCIAL STATEMENT The proposed Business Assistance Program includes the following three programs that will have a financial impact on the City: (1) up to four month deferral of an estimated $1.2 million Transient Occupancy Tax (TOT) payments without incurring penalties; (2) creation of a $3 million Business Support Fund 24-month loan program; and (3) City Utility Waiver and Deferrals, which waives late fees and initial deposits for water and sewer accounts. The primary impact of these three programs are the forgone interest earnings on the City's funds currently averaging two percent annually. Assuming all hotels take advantage of the TOT deferral and the City loans a total of$3 million to business, staff estimates total forgone interest earnings of $128,000. It is unclear how many utility customers will pay their bills late and/or request a deferral of their deposit. There is also an undetermined amount of waived late fees associated with the TOT payment deferrals and water and sewer bills that the City will forgo.