HomeMy WebLinkAbout09 - Conference & Visitor's Bureau AgreementCITY OF NEWPORT BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No. 9
August 12, 2003
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Administrative Services Department
Glen Everroad, Revenue Manager, 644 -3144
eve rroad(a)city. newport- beach. ca. us
SUBJECT: Conference and Visitor's Bureau Agreement - Extension
ISSUE:
Should the current agreement with the Newport Beach Conference and Visitor's Bureau
( NBCVB) be amended to provide for a six month extension and a semiannual allocation
of the Uniform Transient Occupancy Tax (UTOT) portion of their funding?
RECOMMENDATION:
Staff recommends the City Council approve the attached proposed amendment to the
agreement with the NBCVB extending the expiration to February 29, 2004 and providing
for the UTOT portion of their funding be paid at the end of the six month extension.
DISCUSSION:
The City has contracted with the NBCVB to promote tourism for the City since 1987.
The current five -year agreement expires on August 31, 2003. The current agreement
provides that the NBCVB receives 99% of the Visitor Service Fees (VSF) and a small
percentage of the Uniform Transient Occupancy Tax (TOT). The VSF portion of the
NBCVB funding is remitted by the City monthly, while the TOT portion of their funding is
provided once a year. Staff has been working with the NBCVB on the terms of a new
agreement since February of this year. Proposals for the new agreement have been
presented to the City's Economic Development and Economic Advisory Committees.
Uncertainty regarding the impact of the State budget on the City has prevented
resolution of the funding related issues in the new agreement. The NBCVB has
requested a six month extension of the existing agreement in order to allow the
development of funding provisions in the new agreement that meet both City and
NBCVB needs. The NBCVB has also requested the allocation of the TOT portion of
their funding occur at the end of the extension period.
NBCVB Agreement - Extension
August 12, 2003
Page 2
Environmental Review:
Not applicable.
Public Notice:
Posted with agenda.
Funding Availability:
The 2003/04 City budget provides for the funding of the current agreement with the
NBCVB.
Alternatives:
(1) Allow the existing agreement to expire.
(2) Execute a new five -year agreement using the terms of the existing agreement.
Pre par y: Submitted by:
verroad, R venue Manager ennis Danner, Administrative ve S rvices
Director
Attachments: Proposed amendment to the NBCVB Agreement
FIRST AMENDMENT
THIS FIRST AMENDMENT TO THE 1988 AGREEMENT WITH THE
NEWPORT BEACH CONFERENCE AND VISITOR'S BUREAU ( "Amendment ") is
entered into on , 2003, by and between the CITY OF
NEWPORT BEACH, a charter city and municipal corporation ( "City "), and the Newport
Beach Conference and Visitor's Bureau, a non - profit organization ( "NBCVB "), and is
made with reference to the following facts:
RECITALS
WHEREAS, the City, pursuant to the provisions of its City Charter and Section 37110 of
the Government Code of the State of California, has the power to expend monies for the
purpose of promoting tourism and related activities;
WHEREAS, City and NBCVB entered into an agreement on or about June 22, 1998,
under which the NBCVB agreed to promote tourism to the City in exchange for a portion
of certain revenues the City receives from tourism (the "Agreement ");
WHEREAS, under the Agreement, the Bureau receives a percentage of the City's
Uniform Transient Occupancy Tax (TOT) collections, which is paid on an annual basis
within sixty (60) days following the expiration of the relevant 12 -month period;
WHEREAS, the current five -year Agreement between City and NBCVB expires on
August 31, 2003;
WHEREAS, the City and NBCVB are in the midst of negotiating a new Agreement and
have not yet agreed on the terms;
WHEREAS, City and NBCVB desire to enter into a six -month extension of the existing
Agreement to allow for further negotiations and the development of funding provisions in
the new agreement that meet both City and NBCVB needs; and
WHEREAS, City and NBCVB also desire that the allocation of the TOT portion of the
NBCVB's funding occur at the end of the six -month extension period.
NOW, THEREFORE, in consideration of the mutual covenants contained herein and
other good and valuable consideration, the receipt of which is hereby acknowledged,
the parties agree as follows:
1. The term of the Agreement shall be extended by six months, to February 29, 2004;
and
2. For the purposes of this extension only, the City shall pay to NBCVB its portion of
the TOT funding that has accrued during the six -month extension period within sixty
(60) days of the end of the extension period; and
3. Except as expressly amended by this Amendment, all other terms and conditions of
the Agreement shall remain in full force and effect, as if fully incorporated herein by
reference.
IN WITNESS WHEREOF, the parties have executed this Amendment as of the day and
year first above written.
CITY OF NEWPORT BEACH
Steven Bromberg, Mayor
ATTEST:
LaVonne Harkless, City Clerk
APPROVED AS TO FORM:
Robin L. Clauson, Assistant City Attorney
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