CITY COUNCIL AGENDA REPORT
City of Anaheim
CITY MANAGER’S OFFICE
DATE: JUNE 11, 2024
FROM: CITY MANAGER’S OFFICE
SUBJECT: RESOLUTION ESTABLISHING THE ANAHEIM TOURISM
IMPROVEMENT DISTRICT ADVISORY BOARD
ATTACHMENT (Y/N): YES ITEM # 15
GOVERNMENT CODE § 84308 APPLIES: YES
RECOMMENDATION:
That the City Council, by Resolution, establish the Anaheim Tourism Improvement District Advisory Board (“Advisory Board”); approve the Advisory Board Bylaws that set forth the purpose, composition, appointment, and meeting requirements for the Advisory Board; and direct staff to coordinate with the Anaheim/Orange County Hotel & Lodging Association to obtain recommendations for the hotel representative Advisory Board member positions for consideration by the City Council.
DISCUSSION:
In July 2010, the City Council adopted Ordinance No. 6174, amending Title 2 of the City Municipal Code to add Chapter 2.14 Sections 2.14.010 et seq., establishing the Anaheim Tourism Improvement District (ATID). Chapter 2.14 Section 150 of the Municipal Code allows the City Council to create an Advisory Board for making recommendations to the Council. However, the Council decided not to establish an Advisory Board at that time. Instead, they met the requirements of Chapter 2.14 Section 150 by contracting with an organization (“Contracting Entity”), Visit Anaheim, to manage daily operations, services, and promotional activities funded by the assessment.
Visit Anaheim is also responsible for preparing the ATID annual report, detailing the assessment's collection and related expenses for improvements and activities within the ATID.
In the State Auditor's report, four key recommendations were provided to the city. One of these recommendations, given that the City already possessed the authority to create an Advisory Board, was for the city to choose to establish an advisory board by July 2024 to aid in overseeing the expenditures and activities of the Anaheim Tourism Improvement District (ATID).
200 S. Anaheim Blvd.
Suite #733
Anaheim, CA 92805
Tel: (714) 765-5165
Fax: (714) 765-5164
www.anaheim.net
Resolution Establishing the Anaheim Tourism Improvement District Advisory Board June 11, 2024
In response to the recommendation from the State Auditor, our staff, with the support of legal advisors, conducted research on Tourism Improvement District (TID) advisory boards across the State. The boards highlighted in the State Audit report, Morro Bay, Palm Springs, Santa Rosa, and San Luis Obispo, were part of the research. Our findings revealed that TID advisory boards typically are comprised of representatives from hotels, restaurants, retail establishments, and other businesses within the district. They also include members of local government and experts in tourism.
The State Auditor's recommendation is that the board should consist of, at a minimum, representatives from businesses assessed within the tourism district, legal experts, and individuals knowledgeable in government finance. The proposed resolution and bylaws, as outlined in Attachment 1 (Resolution) and Attachment 2 (ATID Advisory Board Bylaws) to this report, include the following key elements:
Composition
A seven-member Advisory Board composed of two hotel representatives from assessed properties within the district, one representative from the Contracting Entity, the City Manager or their designee, the City Executive Director of Convention, Sports and Entertainment, the City Audit Manager, and the City Finance Director.
Appointment
The City's designated representatives will be filled by the current incumbents. The Contracting Entity representative will be filled by the President/CEO of that entity or their designee. The two representatives from the hotels located within the ATID boundary will be recommended by the Anaheim/Orange County Hotel & Lodging Association and approved by the City Council.
Term
The appointed hotel representatives will serve a four-year term. The initial appointments by the City Council may include one hotel representative serving an initial term of two years so that the terms are staggered.
Duties of the Advisory Board
The Advisory Board’s role is to make recommendations to the City Council, either directly or through recommendations to the Contracting Entity or the ATID Transportation Committee, regarding the expenditure of ATID revenues, the classification of businesses subject to the ATID assessment, and the method and basis for levying the assessment. These duties align with the State Auditor's recommendations.
The proposed resolution represents just one of the city's ongoing initiatives to implement the recommendations outlined in the State Audit report.
Resolution Establishing the Anaheim Tourism Improvement District Advisory Board June 11, 2024
This item is in line with City’s Strategic Plan Goal F Promote Economic Development and Tourism, Strategy 9 - Explore options to modify the Anaheim Tourism Improvement District.
IMPACT ON BUDGET:
There is no budgetary impact as members of the Advisory Board will not receive compensation or stipends for their service.
Respectfully submitted,
Greg Garcia
Assistant City Manager
Attachments:
1. Resolution
2. ATID Advisory Board Bylaws (Exhibit A to Resolution)