Long Beach, CA
File #: 13-0923    Version: 1 Name: CM - Convention and Visitors Bureau Agrmnt
Type: Contract Status: CCIS
File created: 10/3/2013 In control: City Council
On agenda: 10/22/2013 Final action: 10/22/2013
Title: Recommendation to authorize City Manager to execute the Eleventh Amendment to Agreement No. 28164 with the Long Beach Area Convention and Visitors Bureau, Inc., to provide funding in the amount of $3,728,676 for Fiscal Year 2014. (Citywide)
Sponsors: City Manager
Indexes: Agreements, Amendments
Attachments: 1. 102213-R-13sr.pdf
Related files: 28164_012, 28164_011
TITLE
Recommendation to authorize City Manager to execute the Eleventh Amendment to Agreement No. 28164 with the Long Beach Area Convention and Visitors Bureau, Inc., to provide funding in the amount of $3,728,676 for Fiscal Year 2014.  (Citywide)
 
DISCUSSION
On October 1, 2002, the City Council approved an agreement with the Long Beach Area Convention and Visitors Bureau, Inc. (CVB), to develop a program to promote the city as a convention and tourist destination.  Since that time, the CVB has been administering a marketing program to establish the city as a site for conventions and tourism by promoting its attractions, resources, climate, and facilities. On October 19, 2004, as part of the Second Amendment, the City Council extended the initial five-year term by an additional seven years, through September 30, 2014.  The agreement is amended annually to reflect the level of funding appropriated by the City Council.
 
On September 3, 2013, the City Council adopted the Fiscal Year 2014 (FY 14) Budget, which includes funding for the agreement with the CVB in the amount of $3,728,676.  Monies used for the contract are restricted funds from two sources; the Special Advertising and Promotion Fund and the Rainbow Harbor Area Fund.    As in prior years, the proposed amendment includes funding for various promotional activities that support the City's economic development objectives such as the Grand Prix.  
 
This year, both the hotel occupancy rate and the average room rate reflect an increase over the same period last year (74.85 percent vs. 71.78 percent and $138.03 vs. $133.50/room).  Long Beach and other areas continue to see improvement from being significantly impacted from the nationwide economic situation.  Therefore, the CVB's proposed amendment with the City for FY 14 will be key to ensuring a continuous promotion of the city as a convention and tourist destination.  As a result of the CVB's efforts, it has received for many years five of the most influential and recognized meeting industry awards.  The CVB has been honored by Successful Meetings Magazine, Meetings & Conventions Magazine, Corporate & Incentive Travel Magazine, Insurance & Financial Management Meetings Magazine, and Association Conventions & Facilities Magazine.  In 2007, the CVB was permanently inducted into Meetings & Conventions Magazine's  "Elite Hall of Fame," an honor reserved for visitor bureaus that have achieved 12 consecutive gold service awards.      
  
This matter was reviewed by Deputy City Attorney Linda Trang on October 3, 2013 and Budget Management Officer Victoria Bell on October 4, 2013.
 
 
TIMING CONSIDERATIONS
City Council action is requested on October 22, 2013, to proceed with the Eleventh   Amendment to Agreement No. 28164 with the CVB.   
 
FISCAL IMPACT
The total amount of the one-year agreement is $3,728,676 and is budgeted in the Special Advertising and Promotion Fund (SR 133) and the Rainbow Harbor Area Fund (TF 411) in the City Manager Department (CM).  The Special Advertising and Promotion Fund derives its revenue to support this contract from the Transient Occupancy Tax. Approval of this recommendation will provide continued support to the local economy.      
 
 
SUGGESTED ACTION
Approve recommendation.
 
Respectfully Submitted,
PATRICK H. WEST
CITY MANAGER