CITY COUNCIL REGULAR MEETING AGENDA PACKET

Page 3 of 4 City staff, with input from the PDA, is working with Civitas Advisors to evaluate the feasibility of a Property-based Business Improvement District (PBID) as Phase I of the project. It is anticipated that creating a PBID would generate significantly more revenue than the approximately $80,000 provided through the current assessment. The process consists of several steps including the establishment of a steering committee to determine district parameters and build consensus among property owners, database and boundary map development, property owner outreach, district service plan and assessment scenario development, and financial analysis and recommendation. A property owner open house is planned on November 18, 2024, and feedback from a survey is currently being collected for consideration of the draft district service plan. Staff will present the feasibility study results to the Economic Vitality Committee, followed by a recommendation to be considered by the City Council in early 2025. If directed by the City Council to proceed with a Property-based Business Improvement District, Phase II of the project will begin with formation, which could take approximately 9 months. If it is not approved to proceed with a Property-based Business Improvement District, staff will begin to transition the current business improvement district from the Parking and Business Improvement Area Law of 1989 to the 1994 law, as the 1994 law allows the district term to be formed for up to five years, which is intended to align with the five-year term of the City-PDA agreement. The 1994 law initiation process would be based on the submission of petitions signed by businesses that will pay at least 50% + 1 of the proposed assessment rather than by resolution adopted by the City Council. Calendar year 2026 would be the target for implementing a new or updated structure. EQUITY AND SUSTAINABILITY Not applicable, as this item is a routine matter of City business. OUTREACH No outreach was conducted, as this item is a routine matter of City business. 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 current agreement between the Downtown Pleasanton Business Improvement District and the City requires the City to match the annual assessments paid by businesses in the BID. In 2024, the City match from the General Fund is estimated to be approximately $80,000. While staff anticipates the 2025 annual assessments will similarly be around $80,000, the full amount of the City's matching funds will be considered based on future financial constraints. The current agreement expires on December 31, 2024; an updated agreement will be presented for the City Council's consideration in early 2025 in alignment with the property and business improvement district (PBID) feasibility study results. Page 21 of 658