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BACKGROUND The decision to renew the district rests with the lodging businesses within the Management District Plan (MDP). The renewal includes 40 lodging businesses with five rooms or more within the identified geographic areas. 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. At the time the Pleasanton City Council initially considered the renewal at its January 18, 2022, meeting, 22 (of 40) lodging businesses representing 68.43% of the room nights — and therefore 68.43% of the estimated total voting strength — had voted in favor of renewing the TVTMD and had signed a petition agreeing to such renewal of the assessment district. Since then, 25 (of 40) lodging businesses representing 75.1% of the room nights — and therefore 75.1% of the estimated total voting strength - have voted in favor of renewing the TVTMD and signed petitions. This exceeds the minimum required for approval. Structure/Budget As proposed, the TVTMD will maintain its existing governance structure with the Visit Tri-Valley Board of Directors acting as the board of directors for the tourism district; as such, more than half of the voting board members must represent TVTMD lodging businesses. The Management District Plan details the operational specifications and $2,166,000 annual budget of the proposed district. The MDP further outlines the assessment structure, which is set at the current$3.25 per room night assessment with an option to increase the assessment starting in the third year (2025) but not to exceed $4.00 per room night. This is comparable with progressive tourism business improvement districts throughout the region and state. In reference to the possible increases in the assessment— potentially raising the assessment to $4.00 per occupied room night—the lodging businesses represented on the VTV board will consider and vote on these increases on an annual basis. Any such proposed changes would be reported directly to the lodging businesses as well as in the TVTMD annual report. This renewal is proposed to begin on July 1, 2022, and last for ten years through June 30, 2032. The VTV board and lodging businesses have increased from a seven-year term to an industry standard 10-year term that will allow for recovery from the pandemic and longer-term strategic planning. Administration Pleasanton has served as the lead agency in forming the assessment district and administering assessments, and will continue to do so to renew the district and administer assessments. Each city and county is responsible for collecting the assessments from the lodging businesses in that jurisdiction. The cities/counties then transmit the funds on a quarterly basis to Pleasanton which, in turn, forwards the funds to Visit Tri-Valley. Page 2 of 4