CITY COUNCIL REGULAR AGENDA PACKET

Page 3 of 5 provisionally projected by City staff to be approximately $80,000. BID Assessment Renewal for 2026 Per Chapter 3, Section 36530 of the Parking and Business Improvement Area Law of 1989, the City Council completed the first two steps to levy the annual assessment for the Downtown Pleasanton BID, by appointing an advisory board to prepare the annual budget with a report describing the programs and activities of the BID and the related funding sources, and outline any recommended changes to the boundaries of the district and/or the methodology of assessing each business. The annual report and budget were accepted by the City Council at its meeting on September 16, 2025. Since modifications are being proposed, an additional public meeting is required to introduce an Ordinance codifying these changes. It is required that public notices be mailed to all of the businesses affected by the BID, advising them of the proposed changes. The last step in the process, scheduled for November 4, is to hold a public hearing to hear any protest and formally adopt the BID assessments to be levied in 2026. DISCUSSION On August 19, 2025, the City Council appointed the members of the Advisory Board, which prepared the 2025 Annual Report and 2026 budget for the Downtown Pleasanton Business Improvement District assessments and other revenues (the PDA budget). On September 16, 2025, the City Council accepted and approved the annual report and budget and considered proposed changes to the current BID structure. City staff developed and provided three options to the Advisory Board for a potential BID restructuring, based on an analysis via business license data and Consumer Price Index (CPI) adjustments. The Advisory Board recommended the following modifications: • Businesses located curbside, downstairs on Main Street, to be assessed at a rate of three times (3X) their business license • Businesses with a Main Street address located upstairs, or not curbside, to be assessed at a rate of two times (2X) their business license • All other businesses (those located off Main Street) to be assessed at a rate of one and a half times (1.5X) their business license • The minimum assessment to be increased from $50 to $125, and the maximum increased from $350 to $750. The PDA recommended that the annual charge paid by any business exempt from the City’s business license tax be $450, increased from $200, including the owner of a business with independent contractors at one business address and conducting a similar business service. It was also recommended that the assessment be subject to an annual escalator, tied to the CPI to ensure that the BID assessment remains on par with other increasing costs for PDA over time, including staff costs, and operating and administrative expenses. The annually adjusted assessment amounts will be established each year during the BID renewal process. With the proposed BID restructuring, the estimated BID assessment collected from businesses will be approximately $140,000 in the next assessment period, an increase of $60,000 from the anticipated $80,000 for 2025. Several downtown business and property owners voiced support for the BID restructure at the September 16, 2025, City Council meeting, recognizing the Page 104 of 376