CITY COUNCIL REGULAR MEETING AGENDA PACKET

Page 3 of 4 existing downtown businesses and attracting new businesses to create a balance of commercial offerings for the community. The PDA has historically included in its annual Goals and Objectives to work with the City to complete a review of the existing BID assessment structure as it has become apparent that the funding generated through the current annual BID assessment does not provide sufficient revenue to support the Association to meet the PDA’s and City’s shared expectations to sustain and increase the vitality and economic health of the downtown district. The City initiated this process in 2024 with a Downtown Pleasanton Property and Business Improvement District (PBID) feasibility study which was completed in December. The City Council will receive the feasibility study results as a separate City Council agenda item (also on January 21) to evaluate and consider proceeding with a proposed PBID formation to further the fiscal sustainability of the PDA and support enhancement of the downtown. The agreement also states that the PDA shall work to further the goals and initiatives of the City's Downtown Specific Plan as well as participate in the development of amended or new objectives and elements of the plan. The level of funding to the PDA had been based on a City match of 100% of the annual assessment revenue generated by the businesses within the downtown, approximately $80,000 per calendar year. Given the City's current financial position, this one-year agreement proposes a City match of 50% of the collected BID assessments, which would be approximately $40,000. The City’s contribution would provide additional funding for the services of the PDA as a strong downtown association results in a more economically vibrant downtown. The proposed Agreement would commence on January 22, 2025, and continue until December 31, 2025, whereby the City Manager may extend an additional year, expiring on December 31, 2026, on his/her determination that the Agreement should remain in effect to allow review of the BID assessment structure to be completed. The City may terminate the Agreement at any time only for the Association's non-compliance with the terms of the Agreement. EQUITY AND SUSTAINABILITY Not applicable, as this item is a routine matter of City business. OUTREACH The proposed agreement was shared with the Pleasanton Downtown Association Board of Directors and staff. STRATEGIC PLAN ALIGNMENT Approval of this action advances the ONE Pleasanton strategic plan goal of Building a Community Where Everyone Belongs by ensuring the vibrancy of Pleasanton’s downtown as prioritized in the City's Economic Development Strategic Plan. FISCAL IMPACT The recent five-year agreement between the Pleasanton Downtown Association, as manager of the Downtown Pleasanton Business Improvement District, and the City required the City to Page 13 of 399