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Home My WebLink About08 - Creating the Destination Marketing Services Ad Hoc CommitteeQ SEW Pp�T CITY OF z NEWPORT BEACH c�<,FORN'P City Council Staff Report March 12, 2024 Agenda Item No. 8 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Tara Finnigan, Assistant City Manager - 949-644-3001, tinnigan@newportbeachca.gov PREPARED BY: Melanie Franceschini, Management Analyst — 949-644-3028, mfranceschini@newportbeachca.gov TITLE: Resolution No. 2024-17: Creating the Destination Marketing Services Ad Hoc Committee ABSTRACT: If adopted, Resolution No. 2024-17 would establish the Destination Marketing Services Ad Hoc Committee, comprised of three councilmembers, to review and negotiate the terms and conditions, including but not limited to, the details of the scope of work, for the City of Newport Beach's destination marketing services agreement. Upon the conclusion of the negotiations, the Destination Marketing Services Ad Hoc Committee would report its findings to the entire City Council and make recommendations regarding the City's destination marketing services. RECOMMENDATIONS: a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; b) Adopt Resolution No. 2024-17, A Resolution of the City Council of the City of Newport Beach, California, Creating the Destination Marketing Services Ad Hoc Committee; and c) Confirm the appointments of Mayor Will O'Neill, Councilmember Brad Avery, and Councilmember Erik Weigand to serve on the Destination Marketing Services Ad Hoc Committee. DISCUSSION: On February 27, 2024, at the request of Mayor Will O'Neill, the City Council considered forming an ad hoc committee to negotiate the terms of the Visit Newport Beach contract for destination marketing services, pursuant to City Council Policy A-1. The City Council voted unanimously 7-0, via a straw poll, in favor of staff returning with an item for its consideration. RX Resolution No. 2024-17: Creating the Destination Marketing Services Ad Hoc Committee March 12, 2024 Page 2 If adopted, Resolution No. 2024-17 would establish the Destination Marketing Services Ad Hoc Committee (Ad Hoc Committee). The Ad Hoc Committee would review the existing Agreement between the City of Newport Beach and Visit Newport Beach, Inc. (VNB) for Tourism Promotion, Branding, and Marketing Services (Agreement). The original agreement, entered into on May 12, 2004, had provisions in which VNB would receive a portion of the City's transient occupancy tax (TOT) to fund marketing efforts and the promotion of tourism within the city. Over the years, this original agreement was replaced, amended and expanded to include public benefit funding, revised reporting requirements, and an extended term. Under the current provisions of the agreement, VNB receives 18% of TOT and the term expires on December 31, 2024. Upon review of the agreement, the Ad Hoc committee will negotiate the terms and conditions, inclusive of the scope of work, of the City's destination marketing services moving forward. The Ad Hoc Committee shall report back to the City Council with its recommendations and expire upon making these recommendations, or December 31, 2024, whichever occurs earlier. Additionally, for the Council's consideration, are the appointments of Mayor Will O'Neill, Councilmember Brad Avery, and Councilmember Erik Weigand to the Destination Marketing Services Ad Hoc Committee. FISCAL IMPACT: There is no fiscal impact related to this item. ENVIRONMENTAL REVIEW: Staff recommends the City Council find this action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. NOTICING: The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). ATTACHMENT: Attachment A — Resolution No. 2024-17 FIN ATTACHMENT A RESOLUTION NO. 2024- 17 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, CREATING THE DESTINATION MARKETING SERVICES AD HOC COMMITTEE WHEREAS, Section 200 of the City Charter, of the City of Newport Beach ("City"), vests the City Council with the authority to make and enforce all laws, rules and regulations with respect to municipal affairs subject only to the restrictions and limitations contained in the City Charter and the State Constitution, and the power to exercise, or act pursuant to any and all rights, powers, and privileges or procedures granted or prescribed by any law of the State of California; WHEREAS, on May 12, 2004, the City entered into an agreement with Visit Newport Beach Inc., a California nonprofit corporation ("VNB"), for tourism promotion, branding, and marketing services ("Original Agreement"), pursuant to which, VNB would receive a portion of the City's transient occupancy tax ("TOT') to fund marking efforts for the promotion of tourism within the City; WHEREAS, on March 10, 2009, the parties amended the Original Agreement to extend the term and clarify the taxes that comprise TOT under the Original Agreement; WHEREAS, on September 27, 2011, the parties terminated the Original Agreement, as amended, and entered into a new agreement for tourism promotion, branding, and marketing services ("Agreement"), pursuant to which, VNB would receive eighteen percent (18%) of the annual total TOT collected by the City to fund marking efforts for the promotion of tourism within the City; WHEREAS, on January 28, 2014, the parties entered into Amendment No. One to the Agreement, which, in part, extended the term of the Agreement to December 31, 2024; WHEREAS, the Agreement, as amended, includes unique terms and conditions, including but not limited to, a City appointed board member to the VNB Executive Committee, designation of the City Manager as an ex-officio non -voting member of VNB's Board of Directors, a marketing plan and budget submitted for review to the City Council, annual reporting and audit obligations, compliance reviews, and the adoption of policies and procedures for transparency and contracting in line with public agency requirements; WHEREAS, the Agreement, as amended, will expire on December 31, 2024; M; Resolution No. 2024- Page 2 of 3 WHEREAS, at the February 27, 2024, City Council Meeting, the City Council approved placing an item on a future agenda regarding the formation of an ad hoc committee to review and negotiate the terms of the City's destination marketing services, including details of the scope of work related thereto, and WHEREAS, the City Council desires to create an Ad Hoc Committee to review and negotiate the City's destination marketing services, including details of the scope of work related thereto. NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: Section 1: The City Council hereby creates the Destination Marketing Services Ad Hoc Committee ("Committee") which shall be comprised of three (3) Council Members appointed by the Mayor and confirmed by the City Council. Section 2: The sole purpose and responsibility of the Committee shall be to review and negotiate the terms and conditions, including but not limited to, the details of the scope of work, of the City's destination marketing services and make recommendations to the entire City Council related thereto. Section 3: The Committee shall be advisory and shall expire upon the making of a recommendation to the City Council, or December 31, 2024, whichever occurs earlier, unless terminated sooner by action of the City Council. Section 4: The Committee shall not be subject to the Brown Act; however, the recommendation of the Committee to the City Council shall be considered at a meeting of the entire City Council noticed in accordance with California Government Code Section 54950 et seq. Section 5: The recitals provided in this resolution are true and correct and are incorporated into the operative part of this resolution. Resolution No. 2024- Page 3 of 3 Section 6: If any section, subsection, sentence, clause or phrase of this resolution is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this resolution. The City Council hereby declares that it would have passed this resolution, and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional. Section 7: The City Council finds the adoption of this resolution is not subject to the California Environmental Quality Act (°CEQA") pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. Section 8: This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting the resolution. ADOPTED this 12th day of March, 2024. Will O'Neill Mayor ATTEST: Leilani 1. Brown City Clerk APPROVED AS TO FORM: CITY ATTORNEY'S O ICE a.� ok- - Aaron C. Harp City Attorney EM