CITY COUNCIL REGULAR MEETING AGENDA PACKET

501c6 non-profit status. The foundation aims to enhance the downtown area, fostering a vibrant community that supports local business and offers a welcoming environment for residents and visitors alike. The Pleasanton Downtown Foundation is dedicated to preserving the charm, enhancing the vitality, and fostering the community spirit of Downtown Pleasanton. Through collaboration, creativity, and investment, we support local culture, commerce, and connection - right in the heart of downtown. Some examples of the foundation priorities are Economic Vitality, Historic Preservation, Community Engagement, Downtown Revitalization and Beautification, as well as Marketing & Promotion. Business Improvement District (BID) Update A key component of the PDA’s economic stability is the assessment collected through the BID. The current assessment formula is based on the annual business license payment. The formula has not changed since 1996. The current formula is as follows: •Businesses located curbside, downstairs on Main Street, are assessed at a rate of two times their business license; •Businesses with a Main Street address located upstairs, or not curbside, are assessed at a rate of one and a half times their business license; •All other businesses (those located off Main Street) pay an amount equal to their business license; •The minimum assessment is $50, and the maximum is $350. Any business exempt from the City’s business license tax pays an annual charge of $200, unless the business is exempt, such as non- profit businesses which do not pay an assessment. The owner of a business with independent contractors at one business address and conducting a similar business service also pays an annual fee of $200. BID Assessment Restructure Recommendation The PDA’s objective in updating the BID is to modernize its structure to reflect the changing business landscape and growing needs of the Downtown. Restructuring the rate formula and adjusting the minimum and maximum amounts ensures more equitable contributions while increasing total funding capacity for the organization’s operations, events, and services, while keeping aligned with rising costs and inflation. The Advisory Board consulted with City staff to evaluate the BID amounts currently collected and based on actual and projected annual CPI increases at an average of 2.5%, the Advisory Board is recommending the following changes in the assessment formulas for 2026: •Businesses located curbside, downstairs on Main Street, are assessed at a rate of three times their business license; •Businesses with a Main Street address located upstairs, or not curbside, are assessed at a rate of two times their business license; •All other businesses (those located off Main Street) are assessed at a rate of one and a half times their business license; •The minimum assessment increased from $50 to $125, and the maximum increased from $350 to $750. Page 154 of 264