CITY COUNCIL REGULAR MEETING AGENDA PACKET

Page 9 of 10 The scheduled events and special promotions include the Concerts in the Park series, St. Patrick’s Day and Halloween Brew Crawls, Summer Wine Stroll, Forkful, Totally Mimosa, and Holiday Spirit Stroll. Additional family-focused events include the Bunny Hop, Pirate Scavenger Hunt, Pumpkins on Main, Magical Holiday Evening, and the new Movies in the Park series. Programming for Weekends on Main will be dependent on the City’s ability to fund the street closures, but the PDA recommends three weekend closure events in June, August, and December. The increased BID assessments and anticipated City contribution represent 48 percent of the total 2026 revenue for the PDA. The remaining revenue from the Farmer’s Market, corporate sponsors, new Pleasanton Foundation, and Associate Memberships will generate the remaining 15 percent of the total 2026 revenue. The PDA expects to spend 88 percent of the budget, leaving about $55,450 as net income and reserves. City staff will meet with the PDA Executive Director and Executive Committee at the beginning and end of the fiscal year, with additional meetings as necessary, to ensure funding is spent as authorized by the terms of the agreement. On October 20, 2020, the City Council approved a temporary deferral of rent payments for one year for the PDA’s use of the City-owned building at 333 Division Street in downtown Pleasanton. The temporary deferral was due to the reduced revenue from temporary restrictions due to the COVID-19 pandemic. On October 19, 2021, the City Council approved an extension of the temporary deferral of rent payments for an additional 14 months through December 2022, after which PDA was to begin paying the deferred amount of $27,580.34, which includes a CPI adjustment, over 26 months. The 2026 budget reflects an annual total rent expense of $19,000. The monthly rent payment includes the deferred monthly payment of $383.06 in addition to the regular monthly rent payment of approximately $1,200. Future City and PDA Agreement and Future City Funding Committments As noted, it is assumed the City will enter into a new agreement with PDA upon the expiration of the current one-year agreement. In addition to other terms, the agreement will identify any City funding commitments. The current agreement provides for a match of the amount generated by the BID assessment with City funds. Although the BID restructure will deliver additional funding to PDA, there is likely to still be a need for and value to providing an increment of City funding to the organization to fully support its programs. However, given the City's budget constraints, matching the new increased BID assessment is unlikely to be feasible. Therefore, as part of the new agreement, the City Council will need to determine the amount of City funds that can be allocated to PDA, including potential in-kind support. With respect to the term of the agreement, while a 5-Year Agreement will likely be recommended, it may be appropriate to consider commitments around allocation of City General Funds for a shorter period (e.g. every two years, aligned with the City's 2-Year Budget Cycle), to ensure that proposed expenditures do not exceed available financial resources. Intent to Levy BID assessment for 2026 Adoption of the resolution included as Attachment 2 will accept the Downtown Pleasanton BID 2025 Annual Report and 2026 Budget and set the public hearing date for November 4, 2025, to levy the annual assessment in 2026. An accompanying ordinance will be introduced in October to amend the Pleasanton Municipal Code Section 5.28.080 System of Assessments to permit changes to the manner in which the annual assessment is levied. Page 150 of 264