SR 05:270 - Laserfiche WebLink

Based on $1.00 per paid occupied room, conservatively estimated at a 60% occupancy rate, the TVTBID will raise from the lodging businesses in the four cities approximately $1,000,000 annually for the CVB. Of the anticipated $1 million in total district assessments approximately 35 %, or $350,000 would come from lodging businesses in Pleasanton; approximately 27%, or $270,000 would come from lodging businesses in Livermore; approximately 12%, or $120,000 would come from lodging businesses in Dublin; and approximately 26%, or $260,000 would come from lodging businesses in San Ramon. Each city will be responsible to collect the assessments from the lodging businesses in that city. The cities will then transmit the funds to Pleasanton. Pleasanton, in turn, will forward the funds to the CVB, who will manage the Tourism BID programs pursuant to a contract with Pleasanton. For administering the district on behalf of the CVB, the City of Pleasanton will receive an administrative fee not to exceed 1% of the TVTBID's estimated $1 million budget, or $10,000, in the first year; the City will receive a fee not to exceed V,%, or $5,000, in subsequent years. In addition, annually, each city will receive a BID collection fee to collect assessments from lodging businesses located within each of their cities. The combined total for this collection fee is 1 % of the TVTBID's estimated $1 million budget, or $10,000, to be prorated based on the percentage of hotel rooms in each city. The resolution assumes that the life of the district will be five years after which the four Councils will need to determine whether to extend the term of the district or to dissolve it. If, however, because the district is not issuing bonds or has other fmancial obligations, the four City Councils could agree to terminate the district before the end of the five years. As the BID would bring significant revenue to the CVB, this would be an appropriate time for the cities to reduce their current levels of funding to the organization. Each of the four Tri- Valley cities will continue to be members of the CVB at a designated city membership rate of $2,500. The Tri-Valley Convention & Visitors Bureau will begin using assessment funds for operational costs on July 1,2006. FISCAL IMPACT The fiscal impact to the City could be significant in that the $180,000 currently budgeted for the CVB would no longer be requested by the organization. The City's annual CVB membership dues would be $2,500. Any staff costs generated by the administration of the assessment district and/or the collection of funds will be offset by the administrative fees received as described in the Management District Plan. ATTACHMENTS 1. Management District Plan 2. Proposed Resolution ofIntention to Establish the Tri-Valley Tourism Business Improvement District SR:05:270 Page 3