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3. Approve a Business Assistance Program to support the retention of local businesses related to the COVID-19 emergency, including the development and allocation of a small business support fund, and adopt a resolution waiving the imposition of Transient Occupancy Tax and City utility fines, penalties and interest, and suspending required utility deposits due to the COVID-19 national, state and local emergency Deputy City Manager Pamela Ott provided an overview of the proposed Business Assistance Program. The objective of the program is to share information and resources with the business community and provide relief to bridge the gap until they are reopened and fully operational again. Many initiatives in this program are closely aligned with the work outlined in the City's Economic Development Strategic Plan. Deputy City Manager Ott noted there are four elements in the Business Assistance Program. The first is Communication and Promotion, including several business support webpages, newsletters providing resources to businesses and the community, social media promoting local support and communicating resources and updates through that channel, and providing information to businesses on Federal, State, and County resources. There is no cost associated with this element. The second element is the Transient Occupancy Tax penalty waiver, which would suspend penalties and interest for late TOT payments as imposed by Pleasanton Municipal Code. Quarterly payments for January, February, and March, and April, May, and June would be due July 31, 2020. The hotel is to request the waiver and receive approval in writing from the Director of Finance. The City will carry deferred TOT payments as an account receivable until payment amount is received in full. Deputy City Manager Ott added Danville, Dublin, and Livermore join the City of Pleasanton in supporting Visit Tri-Valley. This program was adopted by each of those cities, so by adopting we would be in alignment with all other city partners that support Visit Tri- Valley. The estimated deferred amount is $1.2M, which would be recouped when payments are received later this year. The third element is the City Utilities Penalties Waiver and Deposit Deferral. New account deposits for residential, commercial, irrigation, and multifamily residential would be deferred until the emergency declaration is lifted. It also includes a waiver of fines and penalties on existing accounts applied based on loss of income due to COVID-19 during this emergency period. Service will not be shut off. The cost is undetermined. The fourth element is the Business Support Fund. This would be a $3M special fund to provide 0% interest, unsecured, short-term (24 months) loans in the amount of $2,500 to independently or locally owned micro-enterprises with 2-10 employees, and retail and restaurant businesses with 20 or fewer employees. Businesses must have a physical, commercial location in Pleasanton, have an active Business License as of 3/1/20, and be in good standing with the City. There are approximately 1,100 businesses in Pleasanton that meet these criteria. They must demonstrate at least a 25% loss of revenue due to COVID-19 and show action has been taken to secure Federal and State resources and financial assistance. City money is to be used in conjunction with other funding that will allow them to stay solvent throughout the COVID-19 emergency. Funds can be used for operating and capital expenses, including lease/mortgage payments and payroll to retain employees. Businesses not eligible for this loan are lending/investment, hotels, non-profit entities, professional services, and home-based businesses. It has been determined non-profits should have their own resources outside of this program. Funding allocated is from city reserves and will be reimbursed over time as the City receives payments. The funds would be dispersed to eligible recipients until the $3M is exhausted. Implementation would be within 30 days. City Council Minutes Page 5 of 11 April 15, 2020