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Transient Occupancy Tax Penalties Waiver Transient Occupancy Tax (TOT) quarterly payments are due March 31, 2020 for the January-February-March quarter, and June 30, 2020 for the April-May-June quarter respectively. To allow the hotels to utilize the collected funds for near-term operating costs and employee retention due to loss of revenues, this program element will suspend fines, penalties and interest for TOT payments as imposed by the Pleasanton Municipal Code. Both quarterly payments will be due in full to the City on July 31, 2020. Currently, the City's hotel operators have indicated to staff they are averaging a 10 percent to 15 percent occupancy rate due to severely reduced activity, cancellations and postponements. Subsequently, a few Pleasanton hotels have temporarily closed and furloughed employees; other local hotels remain open but are actively soliciting city, state and federal business to be able to cover operating costs. As Pleasanton is a city partner along with Danville, Dublin and Livermore in administering the Tri-Valley Tourism Business Improvement District assessment that funds Visit Tri-Valley, to be similarly in alignment regarding TOT payment collection, each of the four jurisdictions is waiving associated penalties and allowing the deferral of TOT payments as noted. Each hotel would need to request this waiver and receive approval in writing from the Director of Finance. The City of Pleasanton would carry these deferred TOT payments as an account receivable until the required payment amount is received in full. This deferral was directed by Order of the City Manager acting as the Director of Emergency Service for the City of Pleasanton on April 10, 2020. The Order is included as Attachment 2, and a resolution for the City Council's consideration in confirming this order is included as Attachment 1. Estimated Deferred Amount: $1.2 million Implementation: Underway City Utilities Penalties Waiver and Deposit Deferral To provide relief of certain payments to help residents and businesses remain in place during this local emergency, the City will allow the deferral of City utility new account deposits and will waive fines and penalties on existing accounts based on loss of income due to COVID-19 for residential and commercial customers during this emergency period. The new account deposit would be suspended and then applied to the utility bill and due to the City at the time the local emergency declaration is lifted; for reference, the required deposit amounts are: • Residential - $200 deposit • Commercial and Irrigation - $300 deposit • Multifamily Residential - $700 deposit Late charges on existing City utility accounts will be waived throughout the local emergency declaration period (and will not be recovered by the City) and service will not be shut-off. This waiver does not apply to fines and penalties accrued prior to Pleasanton's March 17, 2020, local emergency declaration. Page 4 of 6