TITLE
Recommendation to receive supporting documentation into the record, conclude the public hearing, and adopt resolution continuing the Long Beach Tourism Business Improvement Area assessment for the period of October 1, 2017 through September 30, 2018; and, authorize City Manager, or designee, 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 Visitor Bureau (CVB) 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 Long Beach Tourism Business Improvement Area (LBTBIA). 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.
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 significant change in the method of levying the assessment, and no significant change to the proposed activities.
At its September 19, 2017 meeting, the City Council approved Resolution No. RES-17-0098, granting approval of the Annual Report, declaring the intention of the City Council to levy the assessment, and set October 24, 2017 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.
The Fiscal Year 2018 Annual Report, transmitting the recommendations of the LBTBIA Advisory Board, proposes the following assessment:
Formula of Assessment
The LBTBIA assessment shall be levied on all hotel businesses, existing and future, with greater than 30 rooms, within the area based upon 3 percent of the gross short term room rental revenue. 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 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 October 4, 2017 and by Budget Analysis Officer Julissa José-Murray on September 13, 2017.
TIMING CONSIDERATIONS
City Council action is requested on October 24, 2017, to allow purchase order and contract modifications to be completed so that FY 18 assessment transfers may be made as required by the Agreement of Funding with the CVB.
FISCAL IMPACT
It is estimated that the LBTBIA will generate $5,376,200 in FY 18 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.
BODY
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LONG BEACH CONFIR,MING, FOLLOWING HEARING, AN ANNUAL REPORT OF THE LONG BEACH TOURISM BUSINESS IMPROVEMENT AREA, CONTINUING THE LEVY OF ANNUAL ASSESSMENT AS SET FORTH IN SAID REPORT AND SETTING FORTH OTHER RELATED MATTERS
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
JOHN KEISLER
DIRECTOR OF ECONOMIC DEVELOPMENT
APPROVED:
PATRICK H. WEST
CITY MANAGER