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BACKGROUND The City and Pleasanton Downtown Association have worked closely to promote, enhance, and support downtown Pleasanton and its members since the inception of the association in 1984. A formal agreement outlining this City -PDA partnership has been in place, most recently renewed in 2019. This City -PDA agreement obligates the City to match the annual assessments paid by businesses in the Downtown Pleasanton Business Improvement District, this fiscal year projected to be approximately $73,000 in assessment revenues and approximately $73,000 for the City's match. In addition to the direct City contribution, the City provides a significant amount in indirect funding which includes staff time to administer the PDA assessments and contract, assistance and support for events, as well as the cost to maintain downtown planters, clean sidewalks, and contract for garbage pickup. The City -PDA agreement also formalizes the PDA's lead role in marketing and promoting the downtown to enhance the vitality of the district for the benefit of the businesses located within the district and for the community; notably, events have traditionally been a primary method to accomplish this objective. In November 2018, the PDA entered into a use agreement (Attachment 1) with the City to occupy the City -owned building located at 333 Division Street. Per this use agreement, the PDA began making rent payments on March 1, 2019, in the amount of $974 based on $1.00 per square foot for 974 square feet of rentable building area through December 31, 2019. This totaled $9,740 for calendar year 2019. Beginning in early 2020, the PDA's annual use agreement automatically renewed, and in March 2020, the monthly rent was adjusted by the Consumer Price Index to $996. Throughout PDA's tenure, it has been solely responsible for management of its expenses, including a market -rate lease for office space. Since PDA has occupied the building at 333 Division Street, it has been responsible for utilities, interior maintenance based on daily use, and maintaining insurance while the use agreement is in effect. The City continues to be responsible for upkeep of the grounds and landscaping, the building roof and exterior walls, and the building security system as well as major maintenance such as exterior painting and weatherproofing, HVAC, windows, etc. The City or PDA may terminate the lease for any reason with 90 -day written notice. DISCUSSION When the PDA's 2021 provisional budget was presented to the City in late 2020, the combined assessment revenues and City match amount was projected to be approximately $130,000; this represented approximately 41 percent of the PDA's total 2021 funding sources, increased from a previous average of 33 percent. Due to the Alameda County Public Health Officer's Order, which was in place until California reopened on June 15, 2021, PDA canceled the following events: Antique Faire, St. Patrick's Day Brew Crawl, Bubbles and Bacon, Forkful, and Wine Strolls. October Brew Crawl and Spirit and Sweater holiday events are not planned as well. These canceled events represent approximately $135,000 that will not be generated and missed opportunities to draw the community to visit the downtown. As well, this has exacerbated the financial hardship for PDA such that it has severely limited revenues by 2