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BACKGROUND The Tri-Valley Tourism Marketing District is a benefit assessment district designed to generate funding that is used to support VTV's tourism promotion and marketing activities, and destination development programs based on paid hotel (hereafter called lodging business) room occupancies. VTV engaged a consultant, Civitas, to guide the organization through the development of the district, subsequent renewals in 2010 and 2015, and the current request for renewal. The renewed TVTMD shall include all lodging businesses with five rooms or more located within the boundaries of the Town of Danville, the cities of Dublin, Livermore, and Pleasanton and those portions of the unincorporated areas of Contra Costa and Alameda Counties, which include the communities of Alamo, Blackhawk, and Sunol, the portion of the counties that lies between the cities of Pleasanton and Livermore, and that portion of Alameda County which lies southeast of Interstate 580, as shown in the map in the Management District Plan. Lodging business owners decided to pursue renewal of the TVTMD to continue a revenue source devoted to marketing the Tri-Valley area as a tourist, meeting, and event destination. If renewed, the TVTMD would generate approximately $2,166,000 on an annual basis for promotion of travel and tourism specific to the Tri-Valley area. DISCUSSON In a similar renewal process as in 2015, the VTV board began discussing renewal of the existing TVTMD which will end on June 30, 2022. The Management District Plan (Attachment 1) includes the proposed boundary of the renewed MMD, a service plan and budget, and a proposed means of governance. It was determined by the VTV board to bring forward a recommendation to renew the TVTMD for 10 years with an annual assessment rate of$3.25 per occupied room night in years one and two with a possible increase in years three through ten but not to exceed $4.00 per occupied room night. The TVTMD includes the unincorporated areas of Alameda and Contra Costa Counties, which includes the communities of Alamo, Blackhawk and Sunol, to allow VTV to promote lodging and tourism amenities. The decision to renew the district rests with the lodging businesses within the Management District Plan. The renewal includes 40 lodging businesses within the identified geographic areas with five rooms or more. The voting strength for each lodging business is determined by the property's number of rooms factored by occupancy rate. Renewal of the tourism assessment district requires a simple majority of 50% + $1 of total district voting strength/annual assessments to be approved. To date, 22 (of 40) lodging businesses representing 68.43% of the room nights, and therefore 68.43% of the estimated total voting strength, are in favor of renewing the Tri-Valley Tourism Marketing District as recommended and have signed a petition agreeing to such renewal of the assessment district; this exceeds the minimum required for approval. Specific to Pleasanton, there are 13 TVTMD lodging businesses located in the city that provide 1,812 of the total 4,184 rooms within the proposed district; 8 of these lodging Page 2 of 5