TITLE
Recommendation to adopt resolution approving the Annual Report for October 1, 2018 to September 30, 2019, for the Long Beach Tourism Business Improvement Area, declaring its intention to levy the annual assessment and setting the date of hearing for Tuesday, October 2, 2018 at 5:00 p.m. (Districts 1,2,4,5)
DISCUSSION
The Long Beach Convention and Visitors Bureau (CVB), as the Advisory Board to the Long Beach Tourism Business Improvement Area (LBTBIA), promotes and markets the City of Long Beach (City) as a tourism destination using funds generated through the assessment of hotel properties located in the LBTBIA. State law governing parking and business improvement areas requires that an Annual Report be submitted to the City Council by the Advisory Board designated for the assessment district.
On August 16, 2018, the CVB Board voted to recommend to the City Council approval of the LBTBIA Annual Report (Exhibit A to Resolution). The Annual Report describes proposed activities and budgetary information, as well as the method and basis for continuation of the assessment. The Annual Report proposes no change in the method of levying the assessment, and no significant change to the proposed activities.
The Fiscal Year 2019 (FY 19) Annual Report, transmitting the recommendations of the LBTBIA Advisory Board, proposes the following assessment rates:
ASSESSMENT FORMULA
The assessment shall be levied on all hotel businesses in the LBTBIA, existing and future, with more than 30 rooms. The assessment will be collected monthly, based on 3 percent of the gross short-term room rental revenues for the previous month. New hotel businesses within the LBTBIA boundaries will not be exempt from the levy assessment pursuant to Section 36531 (of the California Streets and Highways Code).
The City enters into agreements with business and/or property owner associations (associations) which utilize assessment revenues to provide services and improvements in Business Improvement District (BID) areas. These agreements set forth the parameters and requirements of the relationship between the associations and the City, and include requirements such as annual reporting, deadlines, and payment schedules, and perpetuate annually based on City Council’s approvals of annual reports. Per the City Auditor’s recommendation in the BID Oversight Audit, the City will re-execute the agreement with the CVB to reflect current procedures and other changes deemed necessary. The agreement will be periodically revisited as processes and requirements change to ensure it stays current and relevant.
The recommended Resolution grants approval of the Annual Report, declares the intention of the City Council to levy the assessment for proposed activities, and sets the date of the public hearing for October 2, 2018.
This matter was reviewed by Deputy City Attorney Amy R. Webber on August 30, 2018 and by Budget Analysis Officer Julissa José-Murray on August 28, 2018.
TIMING CONSIDERATIONS
City Council action is requested on September 18, 2018, to set the date for the public hearing for October 2, 2018. The new contract year begins on October 1, 2018.
FISCAL IMPACT
It is estimated that the LBTBIA will generate $5,751,290 in FY 19 through the proposed continuation of the assessment. Short-term room rental assessment funds are collected from hotels and passed directly through to the CVB for implementation of tourism programs. There is no local job impact associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
BODY
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Respectfully Submitted,
JOHN KEISLER
DIRECTOR OF ECONOMIC DEVELOPMENT
APPROVED:
PATRICK H. WEST
CITY MANAGER