TITLE
Recommendation to receive supporting documentation into the record, conclude the hearing and adopt resolution continuing the Long Beach Tourism Business Improvement Area assessment for the period of October 1, 2016 through September 30, 2017; and authorize City Manager to extend the agreement with the Long Beach Area Convention and Visitors Bureau for a one-year term. (Districts 1,2,4,5)
DISCUSSION
The Long Beach Area Convention and Visitors Bureau (LBCVB) promotes and markets the City of Long Beach as a tourism destination, using funds generated through self-assessment of hotel properties located in the Long Beach Tourism Business Improvement Area (LBTBIA), in addition to funds provided by the City through the Special Advertising and Promotions Fund. The LBCVB governs the assessment to be collected. To continue the assessment levy, State law requires that a public hearing be held on the proposed program and assessment. A copy of the Annual Report describing proposed assessment, activities and allocations is attached to the Resolution as Exhibit A. These items were reviewed by the City Council at its meeting of September 20, 2016.
The Annual Report describes boundaries, proposed activities and budgetary information, as well as the method and basis for the continuation of the assessment. The Annual Report proposes no change in the basis and method of levying the assessment and no significant change in proposed activities.
At its September 20, 2016 meeting, the City Council approved Resolution No. RES-16-0087, granting approval of the Annual Report, declaring the intention of the City Council to levy the assessment, and set October 11, 2016 as the date of the public hearing. A hearing notice, including a copy of the Resolution, was published in local media.
State law provides that the City Council shall hear and consider all protests against the assessment, program, boundaries of the area, and/or any benefit zone as proposed in the Annual Report. State law further provides that protests may be made orally or in writing. Protests regarding the regularity or sufficiency of the proceedings shall be in writing. If written protests are received from area business owners representing greater than 50 percent of the proposed assessments, the City Council shall not levy the assessment. If protests in such quantity are directed against a specific portion of the program, the City Council shall eliminate that portion.
A Resolution is attached approving the Annual Report and budget for October 1, 2016 to September 30, 2017. Should the Annual Report be approved, the City Council is requested to authorize the execution of an agreement with the LBCVB for the use of assessment funds for marketing and promotional purposes. The annual Report, transmitting the recommendations of the LBTBIA Advisory Board, proposes the following assessment:
Method of Assessment
The LBTBIA assessment shall be levied on all hotel businesses, existing and future, with greater than 30 rooms. The assessment shall be based on 3 percent of the gross short-term room rental revenues for the previous month. This assessment is separate from all other LBCVB funding sources, such as transient occupancy tax revenue sharing. Assessment revenue is received by the City and transferred to the LBCVB monthly. New hotel businesses within the boundaries will not be exempt from the levy assessment pursuant to Section 36531 of the California Streets and Highways Code.
This matter was reviewed by Deputy City Attorney Amy R. Webber on September 27, 2016 and by Revenue Management Officer Julissa Josè-Murray on September 28, 2016.
TIMING CONSIDERATIONS
City Council action is requested on October 11, 2016, to allow purchase order and contract modifications to be completed so that FY 17 assessment transfers may be made as required by the Agreement of Funding with the LBCVB.
FISCAL IMPACT
It is estimated that the LBTBIA will generate $5,214,240 in FY 17 through the continuation of the existing assessment. Short-term room rental assessment funds are collected from hotels and passed directly through to the LBCVB for implementation of tourism programs. Sufficient funds are included in the FY 17 Budget in the Parking and Business Area Improvement Fund (SR 132) in the Economic and Property Development Department (EP) for City pass-through payment to LBCVB. Approval of this recommendation will provide continued support to the local economy.
SUGGESTED ACTION
Approve recommendation.
BODY
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Respectfully Submitted,
KATHRYN McDERMOTT
INTERIM DIRECTOR OF ECONOMIC &
PROPERTY DEVELOPMENT
APPROVED:
PATRICK H. WEST
CITY MANAGER