Anaheim City Council
May 13, 2025

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28 OFFICE OF THE CITY ATTORNEY

CITY OF ANAHEIM
200 S. ANAHEIM BOULEVARD, SUITE 356
ANAHEIM, CA 92805
(714) 765-5169
FAX (714) 765-5123

OFFICE OF THE CITY ATTORNEY

CITY OF ANAHEIM
200 S. ANAHEIM BOULEVARD, SUITE 356
ANAHEIM, CA 92805
(714) 765-5169
FAX (714) 765-5123

AMENDED AND RESTATED

AGREEMENT

THIS AMENDED AND RESTATED AG REEMENT (the “Agreement”), dated for purposes of identification only on this ___day of May ______ 2025, is made and entered into by and between the:

CITY OF ANAHEIM, a municipal corporation
hereinafter referred to as "CITY,"

A
N
D

ANAHEIM/ORANGE COUNTY VISITOR & CONVENTION BUREAU,
a nonprofit California corporation,
dba and hereinafter referr ed to as "VISIT ANAHEIM."

W I T N E S S E T H:

WHEREAS, the parties have previously entered into a written agreement, dated December 9, 1997, as amended by the First Amendment to Agreement, dated August 17, 1998; a Second Amendment to Agreement, dated June 20, 2000; a Third Amendm ent to Agreement, dated April 1, 2003; a Fourth Amendment to Agreement, dated July 13, 2004; a Fifth Amendment to Agreement, dated January 11, 2005; a Sixth Amendment to Agreement, dated March 31, 2009; and Seventh Amendment to Agreement dated, January 12, 2010; and WHEREAS, the parties entered into an Amended and Restated Agreement dated September 14, 2010, identified as Agreement No. 2990A (hereinaft er collectively with First through Seventh Amendment, the “Original Agreement”), and, WHEREAS, since the inception of the Or iginal Agreement, CITY has paid for services performed by VISIT ANAHEIM to promote the grow th and enhancement of the community, promote and encourage visitors and tourists to come to Anaheim, and to promote the holding of conventions, conferences and trade s hows in Anaheim, with general funds of the CITY; and

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28 OFFICE OF THE CITY ATTORNEY

CITY OF ANAHEIM
200 S. ANAHEIM BOULEVARD, SUITE 356
ANAHEIM, CA 92805
(714) 765-5169
FAX (714) 765-5123

OFFICE OF THE CITY ATTORNEY

CITY OF ANAHEIM
200 S. ANAHEIM BOULEVARD, SUITE 356
ANAHEIM, CA 92805
(714) 765-5169
FAX (714) 765-5123
WHEREAS, with the formation of the An aheim Tourism Improvement District of 2010 (“ATID”), CITY has and will continue to fund the marketing and promotion of tourism and conventions in the City of Anaheim from revenues collected by CITY from assessments imposed, pursuant to the ATID, rather than general funds of the CITY; and WHEREAS, CITY desires to enter into a contract with an organization to handle the day-to-day operations of the ATID and implement the management plan for the ATID; and WHEREAS, VISIT ANAHEIM possesses the skill, experience, ability, background, and knowledge to provide the services as described in this Agreement; and WHEREAS, the parties wish to amend a nd restate the Original Agreement to read as set forth herein.

NOW, THEREFORE, FOR AND IN CONSIDERATION OF THE MUTUAL

PROMISES, COVENANTS AND CONDITIONS HEREIN CONTAINED, THE PARTIES HERETO AGREE AS FOLLOWS:

1. TERM OF AGREEMENT
The term of this Agreement shall be for three years from the Effective Date, as defined in Section 27 of this Agreement. Th ereafter, upon each anniversary of the Effective Date, this Agreement shall be automatically extended for an additional year, unless the Agreement is terminated in accordance with Section 21 of this Agreement.

2. SCOPE OF SERVICES
VISIT ANAHEIM shall be responsible fo r: (1) the day to day operations of the ATID; (2) implementing the marketing and pr omotion component of the management plan adopted for the ATID (“Management Plan”), a copy of which is attached hereto as Attachment A and incorporated herein by this reference; and (3 ) performing all services and activities to be provided by the “Contracting Ent ity”, as set forth in Chapter 2.14 of the Anaheim Municipal Code, the Resolution of Intention to Establis h the Anaheim Tourism Improvement District adopted July 27, 2010, Resolution No. 2010-125 (“Reso lution of Intention”), and the Resolution of Formation for the Anaheim Tourism Impr ovement District adopt ed September 14, 2010, Resolution No. 2010-151 (“Resolution of Formati on”). In addition, VISIT ANAHEIM shall

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28 OFFICE OF THE CITY ATTORNEY

CITY OF ANAHEIM
200 S. ANAHEIM BOULEVARD, SUITE 356
ANAHEIM, CA 92805
(714) 765-5169
FAX (714) 765-5123

OFFICE OF THE CITY ATTORNEY

CITY OF ANAHEIM
200 S. ANAHEIM BOULEVARD, SUITE 356
ANAHEIM, CA 92805
(714) 765-5169
FAX (714) 765-5123
perform the following services to promote th e growth and enhancem ent of the community, promote and encourage visitors to come to the City of Anah eim and promote the holding of conventions, conferences and trade shows in Anaheim:

A. Records of Potential Users
VISIT ANAHEIM shall maintain accurate and up-to-date records and files on associations, convention groups, trade show sponsor s, and other such organizations which have met in Anaheim in the past and/or which represen t possibilities for scheduling future events in Anaheim. In order to be used as the base for the continuing promotion and sales efforts, such records and files should be maintained in a manner so as to facilitate the process of contacting these organizations and entities.

B. Sales Staff and Support
VISIT ANAHEIM shall maintain experienced and efficient sales staff and supporting staff for sales activity. Such staff shall:
(i) Contact convention and trade show executives, site committees, and other organization representa tives to obtain conferences, c onventions, and trade shows for CITY. This effort shall include, but not be limited t o, participation in in dustry events, personal meetings, telephone discussions , social media communications , correspondence, e-mail communications and all other means which demonstrate a good sales effort and providing annual documentation to the City of such participation and good sales efforts. (ii) Submit detailed propos als to convention and trade show executives, site committees, and other organi zation representatives on CITY’s convention, exhibition and hotel/lodging facilities and capabilities. (iii) Arrange and coordinate on-site inspection tr ips for convention executives, site committees or other organi zation representatives which will encompass all elements of the community and within the destination required by the specific group.

C. Solicitation/Advertisement
As part of its solicitation effort, VISIT ANAHEIM shall:

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28 OFFICE OF THE CITY ATTORNEY

CITY OF ANAHEIM
200 S. ANAHEIM BOULEVARD, SUITE 356
ANAHEIM, CA 92805
(714) 765-5169
FAX (714) 765-5123

OFFICE OF THE CITY ATTORNEY

CITY OF ANAHEIM
200 S. ANAHEIM BOULEVARD, SUITE 356
ANAHEIM, CA 92805
(714) 765-5169
FAX (714) 765-5123
(i) Prepare and disseminate pr omotional materials and brochures geared to convention or other organization executiv es and site decision ma kers which deal with CITY’s convention center, trade show and hotel/lodging facilities and/or destination services. (ii) Create and place advertisi ng and exhibition displays promoting CITY’s Convention Center, trade show and hotel/lodging facilities and/or destination services. (iii) Maintain current active membership in state, national and international convention associations, as appropriate.
(iv) Maintain an active website, as well as a web presence by utilizing social media, so that conve ntion and trade show executive s, site committees, and other organization representatives, as well as members of the public, can obtain information regarding the City of Anaheim, CITY’s convention center, trade show and hotel/l odging facilities and/or destination services.

D. Convention Services/Destination Services
VISIT ANAHEIM shall provide cust omary convention services for those associations, groups or trade shows which meet in Anaheim. These services shall include, but not be limited to the following:
(i) Upon request by a conven tion trade associa tion, group, or trade show executive, work with third party hotel and lodging companies for the assignment of hotel/lodging rooms when two or more hote l/lodging properties are required, `provided, however, that such convention executive shall have the responsibility of selecting the appropriate hotel/lodging properties.
(ii) Oversee the required hotel/lodging needs including its usage and compiling all the necessary information and reports on the hotel or lodging utilized. (iii) Contract with and mana ge the contract of an y third-party staffing agency to fulfill the staffing and labor needs for convention and/or trade show, if requested. (iv) Provide for a staf fed concierge and information desk(s) during Anaheim Convention Center city-wide events, as requested by and agreed to with the City and as approved by City Manager or designee. Provide the necessary resources to the convention or

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28 OFFICE OF THE CITY ATTORNEY

CITY OF ANAHEIM
200 S. ANAHEIM BOULEVARD, SUITE 356
ANAHEIM, CA 92805
(714) 765-5169
FAX (714) 765-5123

OFFICE OF THE CITY ATTORNEY

CITY OF ANAHEIM
200 S. ANAHEIM BOULEVARD, SUITE 356
ANAHEIM, CA 92805
(714) 765-5169
FAX (714) 765-5123
trade show executives to contract directly with necessary vendors, businesses and service providers.

E. Communication with CITY’s Convention Center Staff
VISIT ANAHEIM shall continually mainta in open lines of communications with CITY's Convention Center management and staff. In fulfilling this obligation, VISIT ANAHEIM shall perform the following:
(i) Maintain adequate commu nications with Convention Center management and staff to ensure that proper tent ative reservations can be made with the CITY approved space and budget tool for convention center for specific areas of the Convention Center facility so that duplicate bookings or unworkabl e overlaps will not occur when the tentative reservations become definite. This shall also apply for hotel and lodging facilities to be used. (ii) Bring together the conve ntion and/or trade show executives or site committees with Conventi on Center management and with de signated representatives of other meeting and hotel/lodging faciliti es in Anaheim at an appropri ate time during the ongoing sales effort, and exercise due diligence to ensure that no misunderstandings occur on such items as fees, services and charges.
(iii) Assist, as requested by Convention Center’s management, in the final negotiations of contracts for the Convention Center or other facilities in Anaheim.

F. Promotion of Tourism
(i) Conduct familiarization to urs for appropriate tourist industry representatives in order for them to make enlightened recommendations for selecting Anaheim as a tourist/vacationer destination for leisure domestic and international visitors. (ii) Provide information to tour operators, online-travel agencies (OTAs) and associated groups and individuals within the leisure ma rket in the fo rm of printed material, videos, e-mail comm unications, social media communi cations and other available media that will promote the advantages of Anahe im as a tourist/vacationer destination for leisure domestic and international visitors.

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28 OFFICE OF THE CITY ATTORNEY

CITY OF ANAHEIM
200 S. ANAHEIM BOULEVARD, SUITE 356
ANAHEIM, CA 92805
(714) 765-5169
FAX (714) 765-5123

OFFICE OF THE CITY ATTORNEY

CITY OF ANAHEIM
200 S. ANAHEIM BOULEVARD, SUITE 356
ANAHEIM, CA 92805
(714) 765-5169
FAX (714) 765-5123
(iii) Engage in appropriate, e ffective advertising efforts to promote the advantages of Anaheim as a tourist/vacation destination. (iv) Develop and execute direct -to-consumer and media efforts to promote Anaheim as a leading vacation destina tion for leisure domestic and international visitors.

G. Create and submit to the City Manager or designee no later than two months prior to the beginning of the VISIT ANAHEIM Fiscal Year a report detailing proposed activities and budget including reserve accounts for services pur suant to this Agreement for the following VISIT ANAHEIM Fiscal Year. The City Manager or designee may provide comments on the proposed activities, budget and reserve account for considera tion by VISIT ANAHEIM prior to adoption of the VISIT ANAHEIM budget.

H. Perform any additional services which will ensure the success of conventions, trade shows and tourism in Anaheim which are mutually agreeable and acceptable.

3. TIME OF PERFORMANCE
Time is of the essence in the performance of this Agreement and VISIT ANAHEIM shall perform all services to completion in a diligent and timely manner.

4. ANNUAL REPORT
In accordance with Section 2.14.150 of the Anaheim Municipal Code, VISIT ANAHEIM shall submit to the City Clerk an Annua l Report for the prior City fiscal year that complies with the Management Plan, Section 5 of this Agreement, and Chapter 2.14 of the Anaheim Municipal Code. The Annual Report shall include the amount of any unspent ATID funds and ATID fund reserve balances. The Annua l Report shall be prepar ed and submitted to the City Clerk no later than February 28th of each year this Agreement is in effect.

5. KEY PERFORMANCE INDICATORS
Key performance indicato rs shall be updated annually , submitted to the City Manager, or designee, and VI SIT ANAHEIM’s Board of Direct ors for approval, and shall correspond with VISIT ANAHEIM ’s approved goals, as set by VISIT ANAHEIM’s Board of Directors. These key performance indicators sha ll include (i), marketing impressions, (ii)

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28 OFFICE OF THE CITY ATTORNEY

CITY OF ANAHEIM
200 S. ANAHEIM BOULEVARD, SUITE 356
ANAHEIM, CA 92805
(714) 765-5169
FAX (714) 765-5123

OFFICE OF THE CITY ATTORNEY

CITY OF ANAHEIM
200 S. ANAHEIM BOULEVARD, SUITE 356
ANAHEIM, CA 92805
(714) 765-5169
FAX (714) 765-5123
partnership revenue, and (iii) number of booked c onventions, conferences and trade shows held in Anaheim. In addition, VISIT ANAHEIM sha ll monitor and report to the Board of Directors and City annually on the following additional performance indicators for the prior calendar year:
(i) Anaheim room nights booked, (ii) event attendan ce, (iii) hotel occupancy rates for hotels within the ATID boundaries, (iv) the number of pr esentations made to me eting planners/clients for the City fiscal and prior calendar year; (v) av ailable Anaheim tourist data; and (iv) such other matters as CITY and VISIT ANAHEIM deem appropriate. Th e Anaheim room nights and occupancy rates should be based on actual data and, if necessary, an extrapolation of the actual data only to the extent that actual data is not yet available.

6. COMPENSATION
A. CITY shall pay to VISIT ANAHEIM, as full and complete payment for all services performed, pursuant to this Agreement by VISIT ANAHEIM, all Marketing Component Funds, defined below, from funds assessed a nd collected by the ATID. The Marketing Component Funds provided for in this subsecti on shall be paid by CITY to VISIT ANAHEIM thirty (30) calendar days after the end of the month in wh ich said Marketing Component Funds are collected by CITY.

B. The term "Marketing Component Funds ," as used in this Agreement, shall be as set forth in Sections 15 and 16 of the Ma nagement Plan (currently equal to seventy-five percent (75%) of the net ATID assessments collected by CITY) as it currently exists and as it may be amended during the term of this Agreemen t. The term “net ATID assessments” shall mean the gross assessments collected by the CI TY less the CITY’s ongoing administrative costs associated with administering, collecting, send ing penalty notices and auditing the Assessed Facilities (“Administrative Costs”), which Ad ministrative Costs shall not exceed one percent (1%) of the gross amount co llected annually by the CITY for the ATID. The Parties acknowledge that the term “Mar keting Component Funds” as set fo rth herein may be modified during the term of this Agreement if: (1) the City proposes to, and assuming there is not a majority protest as set forth in Secti on 2.14.070 by the assessed businesses, adopts an amendment to Chapter 2.14 of the Anaheim Muni cipal Code, including but not limited to

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28 OFFICE OF THE CITY ATTORNEY

CITY OF ANAHEIM
200 S. ANAHEIM BOULEVARD, SUITE 356
ANAHEIM, CA 92805
(714) 765-5169
FAX (714) 765-5123

OFFICE OF THE CITY ATTORNEY

CITY OF ANAHEIM
200 S. ANAHEIM BOULEVARD, SUITE 356
ANAHEIM, CA 92805
(714) 765-5169
FAX (714) 765-5123
Sections 2.14.020.010, 2.14.020.080 and 2.14 .080 to modify or add a dditional Activities or Improvements and amends the Management Plan or (2) the City Council pr oposes to modify the Annual Report in relation to the Marketing Component Cost s in compliance with the modification procedures set forth in Section 2.14.150.040, and that such addition or modification may result in a reduction in the current allocation of seventy-five percent (75%) of the net ATID assessments payable to Visit An aheim under this Agreement. The term “Marketing Component Funds” shall include amounts collected by CITY as interest and penalties, but shall not include collection costs or amounts collected by CITY that CITY is obligated to return to any person or entity.

C. VISIT ANAHEIM shall be prohibi ted from using funds received pursuant to this Agreement including, but not limited to , Marketing Component Funds, for any use not authorized in the Resoluti on of Intention (Resolution No. 2010-125), the Resolution of Formation (Resolution No. 2010-151), the Mana gement Plan, Chapter 2.14 of the Anaheim Municipal Code and this Agreement. In addi tion, VISIT ANAHEIM shall be prohibited from using funds received pursuant to this Agreement for any of the following items:
(i) the purchase or the acquisition or receipt of any real property without the prior written approval of CITY;
(ii) any pledge of funds re ceived under this Agreement for the issuance or guarantee of any debt such as, but not limite d to the purchase, acquisition or construction of capital assets with an es timated useful life of five (5) year s or more, without the prior written approval of CITY;
(iii) payment of any taxes, including California Sales and Use taxes, resulting from VISIT ANAHEIM reve nue generating activities a nd Federal and State Income taxes levied as a result of VISIT ANAHEIM activities;
(iv) charitable contributions and contributions to professional groups, except to the extent any such contributions are made for marketing purposes; (v) VISIT ANAHEIM membership orientations, receptions and development;

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28 OFFICE OF THE CITY ATTORNEY

CITY OF ANAHEIM
200 S. ANAHEIM BOULEVARD, SUITE 356
ANAHEIM, CA 92805
(714) 765-5169
FAX (714) 765-5123

OFFICE OF THE CITY ATTORNEY

CITY OF ANAHEIM
200 S. ANAHEIM BOULEVARD, SUITE 356
ANAHEIM, CA 92805
(714) 765-5169
FAX (714) 765-5123
(vi) costs related to the generation of advertising revenue in VISIT ANAHEIM Travel Guide and relate d publications except to the extent such payments are made solely from funds not received pursuant to this Agreement; (vii) employee membership dues and subscriptions in organizations not associated with the convention and tourism industry;
(viii) employee membership dues in private clubs;
(ix) employee transporta tion and meals not involved with promotion and solicitation activities or st aff training and development (expr essly excluded are those travel and entertainment costs associated with promoting the image or reputation of VISIT ANAHEIM); and
(x) transfer of funds to anothe r entity without the City’s prior written approval; however, this restriction shall not apply to:
(a) payments to subcontractors made in full compliance with Section 10; and (b)  payments that are necessary and constitute customary and allowable expenses.

In addition, VISIT ANAHEIM shall be prohib ited from using funds fo r political donations, contributions or other activities in support of, or in opposition to, a ballot measure or candidate in any federal, state, or local government election.

D. Disestablishment
Upon disestablishment of the ATID, any remaining revenues and assets acquired with Marketing Component Funds, after all outst anding debts are paid, shall be refunded in accordance with this Agreement and Section 2.14.170 of the Anaheim Municipal Code.

7. RECORDS AND REPORTS MAIN TENANCE AND INSPECTION/AUDIT A. Records and Reports Maintenance
VISIT ANAHEIM shall establish and main tain financial and performance records with respect to all matters covered by this Ag reement in sufficient detail and in a manner sufficient to conform to generally accepted accounting principles (“GAAP”) so as to allow audit of the expenditure of CITY funds receiv ed by VISIT ANAHEIM. VISIT ANAHEIM shall separately track all expenditures funded by a ssessments collected by the ATID from all other

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28 OFFICE OF THE CITY ATTORNEY

CITY OF ANAHEIM
200 S. ANAHEIM BOULEVARD, SUITE 356
ANAHEIM, CA 92805
(714) 765-5169
FAX (714) 765-5123

OFFICE OF THE CITY ATTORNEY

CITY OF ANAHEIM
200 S. ANAHEIM BOULEVARD, SUITE 356
ANAHEIM, CA 92805
(714) 765-5169
FAX (714) 765-5123
expenditures and shall not comingle ATID funds with other VISIT ANAHEIM revenue sources.

While ATID funds may not be comingled with ot her revenue sources, th ey can be allocated jointly with other funds for shared expenditures, provided that ATID contributions are separately tracked and accounted for. VISIT ANAHEIM shall retain such financial and performance records for a period of three (3) years.

B. Documentation of Costs
All costs shall be supported by prope rly executed payrolls, time records for personnel, invoices, agreements or vouchers, or other official documentation evidencing in complete and proper detail the nature and propriety of the charges.

C. Certified Statement
By February 28th of each year during the Term hereof, VISIT ANAHEIM shall furnish to CITY a statement in writing, certified by VISIT ANA HEIM and a Certified Public Accountant to be correct, showi ng in detail how the funds recei ved pursuant to this Agreement for the prior VISIT ANAHEIM fisc al year including, but not li mited to, Marketing Component Funds were expended and whether the funds were expended for a purpos e authorized by this Agreement.

D. Inspection/Audit
CITY reserves the right to designate its own employee repres entative(s) or its contracted representatives with a Certified Public Accounting firm who shall have the right to audit VISIT ANAHEIM’s accounting procedures a nd internal controls of VISIT ANAHEIM's financial systems and to examine any cost, reve nue, payment, claim, other records or supporting documentation resulting from any items set forth in this Agreement. Any such audit(s) shall be undertaken by CITY or its repres entative(s) at mutually agreed upon reasonable times and in conformance with generally accepted auditing standards. VISIT ANAHE IM agrees to fully cooperate with any such audit(s).

This right to audit shall extend during the length of this Agreement and for a period of three (3) year s, or longer, if required or allowed by law, following the date of any

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28 OFFICE OF THE CITY ATTORNEY

CITY OF ANAHEIM
200 S. ANAHEIM BOULEVARD, SUITE 356
ANAHEIM, CA 92805
(714) 765-5169
FAX (714) 765-5123

OFFICE OF THE CITY ATTORNEY

CITY OF ANAHEIM
200 S. ANAHEIM BOULEVARD, SUITE 356
ANAHEIM, CA 92805
(714) 765-5169
FAX (714) 765-5123
payment tendered under this Ag reement. VISIT ANAHEIM agrees to retain all necessary records/documentation for the entire length of this audit period.

VISIT ANAHEIM will be notified in writing of any exception taken as a result of an audit. If VISIT ANAHEIM disagrees with any of such exceptions , VISIT ANAHEIM will notify CITY in writing within twenty (20) calenda r days after the notificat ion of exceptions to VISIT ANAHEIM. VISIT ANAHEIM and the City Manager will then meet and attempt to resolve any differences. Any expenditure of funds for a purpose not authorized by this Agreement shall be paid to CITY by VISIT A NAHEIM within thirty (30) calendar days from presentation of CITY’s findings to VISIT ANAHEIM. If VISI T ANAHEIM fails to make such payment, VISIT ANAHEIM agrees to pay intere st, accruing monthly, at a rate of 10% per annum unless another section of this Agreement specifies a higher rate of interest, then the higher rate will prevail. Interest will be computed from the date of written notification of exception(s) to the date VISIT ANAHEIM reimburses CITY for any exception(s).

8. COORDINATION AND LIAISON
VISIT ANAHEIM and CITY agree that during the term of this Agreement they shall coordinate, as appropriate, all services hereunder with the City Manager or his designee.

VISIT ANAHEIM shall appoint two CI TY management employees, designated by the City Manager, as voting members of VISIT ANAHEIM’s Board of Directors. Both CITY appointees shall also be appointed as voting members of the Executive Committee of the Board of Directors, or similar gove rning body. VISIT ANAHEIM shall notify the CITY appointees of any and all meetings of such Boards or Committees.

9. ASSIGNABILITY
VISIT ANAHEIM shall not assign or ot herwise transfer any of its rights or obligations whatsoever in this Agreement withou t the prior written consent of CITY acting by and through the City Manager. Any attempt by VISIT ANAHEIM to assign or transfer any of its rights or obligations hereunder without such prior written consent of CITY shall be void.

10. SUBCONTRACTORS

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28 OFFICE OF THE CITY ATTORNEY

CITY OF ANAHEIM
200 S. ANAHEIM BOULEVARD, SUITE 356
ANAHEIM, CA 92805
(714) 765-5169
FAX (714) 765-5123

OFFICE OF THE CITY ATTORNEY

CITY OF ANAHEIM
200 S. ANAHEIM BOULEVARD, SUITE 356
ANAHEIM, CA 92805
(714) 765-5169
FAX (714) 765-5123
VISIT ANAHEIM shall request and secu re, the City Manage r’s or designee’s written consent to enter into any contract with any subcontractor for services from any subcontractor retained to provide any of Visit An aheim’s obligations set forth in this Agreement if the subcontract amount exceeds $150,000 either in an individual contract amount or in an aggregate amount paid to a subcontractor as cal culated on annual calendar year basis. For the purpose of this agreement a s ubcontract is a contract betw een VISIT ANAHEIM and any other person, business or entity pursuant to which the person, business or entity performs an obligation of VISIT ANAHEIM as set forth in this Agreement.

Requests for subcontractors meeting the conditions shall be submitted in writing to the City Manager, or design ee, describing the services to be subcontracted, the return on investment, the key deliverables and/or key perf ormance indicators and the name and address of the proposed subcontractor.

All subcontractors shall be subject to a ll applicable terms and conditions of this Agreement. VISIT ANAHEIM shall monitor subc ontractors in accordance with the Contractor Policy pursuant to Attachment B and shall provide documentation of this monitoring to the CITY on an annual basis.

11. COPYRIGHTS
If this Agreement results in any publication, in any form, which may be copyrighted, the author is free to copyright the work, but CI TY reserves a royalty-free nonexclusive and irrevocable license to reprodu ce, publish or otherwise use and may authorize others, subject to the prior written approval of VISIT ANAHEIM, to use such materials for use in connection with official CITY programs or activities.

12. USE AND DISPOSITION OF PERSONAL PROPERTY
A. Ownership
All personal property purchased in whole or in part with transient occupancy tax funds shall be the sole and exclusive property of CITY. All personal property purchased in whole or in part with Marketing Component Funds sha ll be the sole and exclusive property of the ATID. VISIT ANAHEIM shall have the exclusive right to use all pers onal property prior to

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28 OFFICE OF THE CITY ATTORNEY

CITY OF ANAHEIM
200 S. ANAHEIM BOULEVARD, SUITE 356
ANAHEIM, CA 92805
(714) 765-5169
FAX (714) 765-5123

OFFICE OF THE CITY ATTORNEY

CITY OF ANAHEIM
200 S. ANAHEIM BOULEVARD, SUITE 356
ANAHEIM, CA 92805
(714) 765-5169
FAX (714) 765-5123
termination of this Agreement or disestablishm ent of the ATID. The te rm “personal property” shall include, but not be limite d to, office equipment, supplies, materials and other personal property.

B. Disposition of Personal Property
All personal property purchased with funds provided hereunder in the possession of VISIT ANAHEIM or VISIT ANAHE IM’s representative(s) shall be returned to CITY, and/or disposed of as set forth in the approved Resolution of Intention to Disestablish the ATID, immediately upon termination of this Agreemen t or disestablishment of the ATID. VISIT ANAHEIM retains the right to dispose of any fully depreciated personal property.

13. VISIT ANAHEIM STRUCTURE
VISIT ANAHEIM agrees that it will not ch ange its current corporate status as a California nonprofit corporation without prior approval of the CITY (which approval shall not be unreasonably withheld by CITY), which allows it to adequately represent the interests of businesses subject to ATID assessments. Pe rsons representing businesses subject to ATID assessments shall hold positions on VISIT ANAHEIM ’s Board of Directors. Directors of VISIT ANAHEIM’s Board of Directors who are subject to ATID assessments may serve as VISIT ANAHEIM’s Officers. If VISIT ANAHEIM fails to comply with this Section, the CITY shall be entitled to terminate this Agreement, for cause, in accordance with Section 21 of this Agreement.

14. OFFICE SPACE
As part of this Agreement, CITY sh all provide one (1) office space and (1) conference room to VISIT ANAHEIM in CITY’s Convention Center and Visit Anaheim shall pay rent to CITY for such space on a monthly basis in an amount set by CITY’s City Manager or designee. Such rental amount shall be comparable to rent charged for like office space in the same area. Such rental payment shall be due and payable to CITY on the first day of each month. Any tenant improvements to the space shall be constructed and paid by VISIT ANAHEIM.

15. INDEMNIFICATION

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CITY OF ANAHEIM
200 S. ANAHEIM BOULEVARD, SUITE 356
ANAHEIM, CA 92805
(714) 765-5169
FAX (714) 765-5123

OFFICE OF THE CITY ATTORNEY

CITY OF ANAHEIM
200 S. ANAHEIM BOULEVARD, SUITE 356
ANAHEIM, CA 92805
(714) 765-5169
FAX (714) 765-5123
As respects acts, errors or omissions in the performance of professional services, VISIT ANAHEIM agrees to indemnify and hold harmless CITY, its officers, agents, employees, representatives and volunteers fr om and against any and all clai ms, losses, damages, defense costs, liability or consequential damages of a ny kind or nature arising directly out of VISIT ANAHEIM’s negligent acts, errors or omissions in the performa nce of professional services under the terms of this Agreement, except those matters arising ou t of the sole negligence or willful misconduct of the City. VISIT ANAHEIM furt her agrees to require it subcontractors to indemnify and hold harmless CITY, its officer s, agents, employees, representatives and volunteers from and against any and all claims, losses, damages, defense costs, liability or consequential damages of any kind or nature arising directly out of VISIT ANAHEIM’s subcontractor’s negligent acts, errors or omissions in th e performance of services provided through a subcontractor under the terms of this Agreement.

As respects all acts or omissions wh ich do not arise directly out of the performance of professional services, including but not limited to th ose acts or omissions typically covered by ISO-based general and automobile liability insurance coverage, VISIT ANAHEIM agrees to indemnify, defend (at CITY ’s option), and hold harmless CITY, its officers, agents, employees, repres entatives, and volunteers from and against any and all claims, losses, damages, defense costs, or liability, of any kind or nature (collectively referred to hereunder as “Claims” arising out of or in connection wi th VISIT ANAHEIM’s (or VISIT ANAHEIM’s subcontractors, if any) acts, errors, omissions, or wor k, relative to this Agreement, except for those Claims which arise out of the sole negligence or willful misconduct of CITY.

The obligations set forth in this indemn ification provision (i) shall be in effect without regard to whether or not CITY, VISI T ANAHEIM, or any other person maintains, or fails to maintain, insurance coverage, or a self-i nsurance program, for an y such Claims; and (ii) shall survive the termination of this Agreement.

16. NO WAIVER OF RIGHTS
No waiver of any of th e provisions of this Agreemen t shall be deemed or shall constitute a waiver of any othe r provision, nor shall any waiver constitute a continuing waiver.

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CITY OF ANAHEIM
200 S. ANAHEIM BOULEVARD, SUITE 356
ANAHEIM, CA 92805
(714) 765-5169
FAX (714) 765-5123

OFFICE OF THE CITY ATTORNEY

CITY OF ANAHEIM
200 S. ANAHEIM BOULEVARD, SUITE 356
ANAHEIM, CA 92805
(714) 765-5169
FAX (714) 765-5123
No waiver shall be binding unless executed in writing by the party making the waiver.

17. INSURANCE
Without limiting CITY’s right to in demnification, VISIT ANAHEIM agrees to secure or in the instance of services provided by a subcontracto r have the subcontractor secure prior to commencing any activities under this Agr eement, and maintain dur ing the term of this Agreement, insurance coverage as follows:

Workers’ Compensation Insurance, as required by California law and Employers Liability Insurance in an amount not less than $1,000,000 and mu st include a Waiver of Subrogation

Commercial General Liability Insuran ce, including coverage for Premises and Operations, Contractual Liabil ity, Personal Injury Liability, Products/Completed Operations Liability, and Independent Contractors’ Liability (if applicable), in an amount not less than Two Million Dollars ($2,000,000.00) per occurrence, $4,000,000 annual aggregate. Any deductible or self-insured retention in ex cess of $10,000 must be disclosed to CITY, in writing, at the inception of this Agreement and is subject to the acceptance of the City’s Risk Manager.

Automobile Liability Coverage, as required by California law, including-as applicable-owned, non-owned, and hired autos, in an amount not less than $2,000,000, combined single limit.

Professional Liability, inclusive of C yber Liability, in an amount not less than $2,000,000, and VISIT ANAHEIM shall maintain such coverage for at leas t one (1) year from termination of this Ag reement. Any deductible or self-insured retent ion in excess of $10,000 must be disclosed to CITY, in writing, at the in ception of this Agreement and is subject to the acceptance of the City’s Risk Manager.

Visit Anaheim agrees that each insurance policy required by this Agreement shall not be voluntarily cancelled or otherwise limited in scope or coverage, until after thirty (30) days prior written notice has been given to the City Clerk, City of Anaheim, 200 S. Anaheim Blvd.,

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CITY OF ANAHEIM
200 S. ANAHEIM BOULEVARD, SUITE 356
ANAHEIM, CA 92805
(714) 765-5169
FAX (714) 765-5123

OFFICE OF THE CITY ATTORNEY

CITY OF ANAHEIM
200 S. ANAHEIM BOULEVARD, SUITE 356
ANAHEIM, CA 92805
(714) 765-5169
FAX (714) 765-5123
Anaheim, CA 92805, except in the event of ca ncellation for non-payment of premium which shall provide for not less than ten (10) days’ notice.

Visit Anaheim agrees that each insura nce policy required by this Agreement, excepting policies for Professional Liability a nd Workers’ Compensati on, shall contain the following clauses or shall otherwise provide for the following conditions:
.01 “It is agreed that any insu rance maintained by VISIT ANAHEIM or its Subcontractors, pursuant to this Agreemen t, shall be primary to, and not contribute with, any insurance or self-insurance maintained by the City of Anaheim.” .02 “The City of Anaheim, its officers, agents, employees, representatives and CITY-designated volunteers are added as additi onal insureds as respects the acts, omissions, operations and activities of, or on behalf of, the named insured, in regard to products supplied to, or work or services performed for, or related to, the City of Anaheim.” Prior to commencing any work un der this Agreement, VISIT ANAHEIM shall deliver to CITY insurance certificates confirmi ng the existence of th e insurance required under this Agreement, and including the applicable clause s referenced above. Also, within thirty (30) days of the execution date of this Agreem ent, VISIT ANAHEIM shall provide CITY: (i) endorsements to the insurance policies which a dd to these policies the applicable clauses referenced above; or (ii) in lieu of said endorsements, documentation acceptable to CITY evidencing that the coverage, terms, and condition s set forth in the above-referenced clauses are otherwise included in said insurance policies. Insurance required hereunder shall be placed with insurers: (i) admitted to write insurance in California; (ii) possessing an A. M. Best’s rating of A VII or higher; or (iii) otherwise acceptable to CITY, with prior written permission from CITY.

In the event that a claim or other legal action is filed against CITY, and if CITY, in its good faith opinion, believes it may have c overage under any of the insuran ce required herein, then CITY has the right to demand, and to receive within a reasonable time period, copies of the insurance policies related to such required insurance; provided, however, that this provision shall not apply if the Parties agree that VISIT ANAHEIM sh all fully defend, hold harmless, and indemnify CITY against any such claim or other legal action.

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CITY OF ANAHEIM
200 S. ANAHEIM BOULEVARD, SUITE 356
ANAHEIM, CA 92805
(714) 765-5169
FAX (714) 765-5123

OFFICE OF THE CITY ATTORNEY

CITY OF ANAHEIM
200 S. ANAHEIM BOULEVARD, SUITE 356
ANAHEIM, CA 92805
(714) 765-5169
FAX (714) 765-5123
In addition to other remedies CITY may have if VISIT ANAHEIM fails to provide or maintain any insuranc e policies or policy endorsements to the extent and within the time herein required, CITY may, at its sole option:
.01 Order VISIT ANAHEIM to stop work under this Agreement and/or withhold any payment(s) which become due to VISIT ANAHEIM hereunder until VISIT ANAHEIM demonstrates compliance with the requirements hereof; or .02 Terminate this Agreement.

Exercise of any of the above re medies, however, is an alternativ e to other remedies CITY may have and is not the exclusive remedy for VISIT ANAHEIM’s failure to maintain insurance or secure appropriate endorsements.

Nothing herein contained shall be constr ued as limiting in a ny way the extent to which VISIT ANAHEIM may be held responsible for pa yments of damage s to persons or property resulting from VISIT ANAHEIM’s (or VI SIT ANAHEIM’s contractors/subcontractor, if any) performance of the wo rk covered under this Agreement, provided, however, that in no event shall VISIT ANAHEIM liability to CITY under this provision exceed the greater of (i) the total amount of the fees paid to VISIT ANAHEIM for such work or services, or (ii) the amount of valid and collectible insura nce carried by, maintained by, or otherwise available to VISIT ANAHEIM (or VISIT ANAHEIM’s professional staff, contractors, or sub-contractors), which is applicable to any claim, loss, costs, defense, or liability arising out of this agreement.

In the event VISIT ANAHEIM hires other persons or firms to perform some of the work related to this Agreement, VISIT A NAHEIM shall ensure, and certify to CITY in writing that: (i) the acts or omissions of such persons or firms are covered under the above- referenced liability insurance; or (ii) such firms maintain insura nce equal to or better than, and subject to the same limits, te rms and conditions as, the insura nce required of VISIT ANAHEIM under this Agreement (except for firms which ar e not performing profe ssional services-such firms shall not be required to carry the above-refe renced professional liability insurance); and in either instance, VISIT ANAHEIM shall provide, or cause to be provided, evidence of such insurance coverage, reasonably acceptable to CITY.

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CITY OF ANAHEIM
200 S. ANAHEIM BOULEVARD, SUITE 356
ANAHEIM, CA 92805
(714) 765-5169
FAX (714) 765-5123

OFFICE OF THE CITY ATTORNEY

CITY OF ANAHEIM
200 S. ANAHEIM BOULEVARD, SUITE 356
ANAHEIM, CA 92805
(714) 765-5169
FAX (714) 765-5123
Insurance coverage specified herein constitutes the minimum requirements and those requirements do not le ssen or limit the liability of VISIT ANAHEIM under this Agreement. VISIT ANAHEIM sha ll obtain, at its own expens e, any additional kinds and amounts of insurance that it may deem necessary.

The CITY’s Risk Manager is hereby authorized to reduce the requirements set forth in this Section in the event the Risk Mana ger determines that such a reduction is in the CITY’s best interest.

Also, CITY has the right to demand, a nd receive within a re asonable time period, copies of any insurance policies required under this Agreement.

18. NOTICES
Any notice, demand, request, consent, approval, or communi cation that either party desires or is required to give to the other party or to any other person shall be in writing and either served personally or sent by pre-paid, first-class mail. Any notice, demand, request, consent, approval, or communication that either pa rty desires or is required to give to the other party shall be addressed as follows:

IF TO VISIT ANAHEIM: Anaheim Visitors & Conv. Bureau
2099 S State College Blvd. Suite 600
Anaheim, CA 92806
Attn: President of VISIT ANAHEIM

IF TO CITY: City Clerk
C i t y o f A n a h e i m
200 S. Anaheim Boulevard
Anaheim, CA 92805

WITH COPY TO: Executive Director
Convention, Sports and Entertainment
C i t y o f A n a h e i m
800 W. Katella Avenue
Anaheim, CA 92802
Either party may change its address by no tifying the other party of the change of address. Notice shall be deemed given within thr ee (3) calendar days after the date of mailing if mailed as provided in this Section.

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CITY OF ANAHEIM
200 S. ANAHEIM BOULEVARD, SUITE 356
ANAHEIM, CA 92805
(714) 765-5169
FAX (714) 765-5123

OFFICE OF THE CITY ATTORNEY

CITY OF ANAHEIM
200 S. ANAHEIM BOULEVARD, SUITE 356
ANAHEIM, CA 92805
(714) 765-5169
FAX (714) 765-5123

19. RESERVE ACCOUNT
Under the terminated and superseded prior Agreement dated June 28, 1983, as amended on March 20, 1984 and July 10, 1990, between VISIT ANAHEIM and CITY, VISIT ANAHEIM accumulated a sum of money for the stated purpose of providing a reserve to provide funding in the event CITY cannot or does not provide such fundi ng in a timely manner (the “Reserve Account”). The parties agree that th e Reserve Account shall be retained by VISIT ANAHEIM and used by VISIT ANA HEIM exclusively for the benefit of the Convention Center and tourism related activities and pursuant to the terms of this Agreement.

20. ANAHEIM CONVENTION CENTER DATE PRIORITIES
It is well known in the industry that conventions, conferen ces and trade shows make firm decisions on future meetings and show s ites from three (3) to five (5) years in advance, and, in some cases, six (6) to eight (8) years in advance. Smaller conference groups, generally self contained in hotel facilities, make their decisions two (2) to three (3) years in advance.

On the other hand, local events, consumer shows, socials, athletic events, concerts and similar events generally form their plans on a year-to-year basis. There are a few exceptions to this, and those are major public events which re peat each year and develop a cycle or pattern for their date preference and proven stability for an annual return with high public acceptance.

In recognition of the fore going, it is agreed that c onventions, conferences, and trade shows, solicited through VISIT ANAHEIM, will generally have first priority on date availabilities until twelve (12) months from the current date for all exhibit halls, lobby space, and meeting room space. Those events will have first priority on date availability of the Arena and Arena Lobby until eighteen (18) mont hs from the current date. This shall be referred to as the “12 Month/18 Month Lead Time.”
After the expiration of the “12 Month/18 Month Lead Time,” the management staff of the Anaheim Convention Center will have firs t priority on date availabilities so that local events, consumer show, socials, athletic ev ents, concerts and similar events can be accommodated in remaining available dates.

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CITY OF ANAHEIM
200 S. ANAHEIM BOULEVARD, SUITE 356
ANAHEIM, CA 92805
(714) 765-5169
FAX (714) 765-5123

OFFICE OF THE CITY ATTORNEY

CITY OF ANAHEIM
200 S. ANAHEIM BOULEVARD, SUITE 356
ANAHEIM, CA 92805
(714) 765-5169
FAX (714) 765-5123
Taking into consideration the need to make the Anaheim Convention Center available from time to time for local events, consum er shows, socials, athletic events, concerts and similar events, CITY and VISIT ANAHEIM agr ee to identify mutually agreeable dates at the Anaheim Convention Center for hosting annual ev ents in the Arena or Exhibits Halls. The number of events to receive preferential date accommodation shall not ex ceed five (5) and shall generally be accommodated during the less desi rable dates for conventions, conferences, and trade shows. These five (5) events shall receive “tentative” dates on a five-year cycle, with “firm” dates for these events to be arranged on a two-year cycle.

The management staffs of the Anah eim Convention center and VISIT ANAHEIM will continue to cooperate in a ny other cases involving date availa bilities and the “12 Month/18 Month Lead Time” so that the total best interests of Anaheim are served.

21. TERMINATION
A. In the event that either party fails or refuses to perform any of the provisions of this Agreement at the time and in the manner required, that party shall be deemed in default in the performance of this Agreement. If such default is not cured within a period of thirty (30) calendar days, or if more than thirty (30) calendar days are reasonably required to cure the default and the defaulting party fails to give adequate assurance of due performance within thirty (30) calendar days after receipt of written notice of default, specif ying the nature of such default and the steps necessary to cure such de fault, the non-defaulting party may terminate the Agreement forthwith by giving to the defaulting party written notice thereof.

B. Either party may terminate this Agreement without cause upon giving the other party at least one hundred and eighty (180) calendar days’ prior written notice.

C. If the ATID is disestablished, th e CITY may terminate this Agreement immediately by providing VISIT ANAHEIM notice that the ATID has been disestablished.

22. INDEPENDENT CONTRACTOR
The performance of VISIT ANAHEIM’s services hereunder shall be in the capacity of an independent contra ctor and not as an officer, agen t, or employee of CITY. In consideration for the compensation paid to VISIT ANAHEIM by CITY, VISIT ANAHEIM

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CITY OF ANAHEIM
200 S. ANAHEIM BOULEVARD, SUITE 356
ANAHEIM, CA 92805
(714) 765-5169
FAX (714) 765-5123

OFFICE OF THE CITY ATTORNEY

CITY OF ANAHEIM
200 S. ANAHEIM BOULEVARD, SUITE 356
ANAHEIM, CA 92805
(714) 765-5169
FAX (714) 765-5123
agrees that CITY shall not be liable or responsible for any bene fits, including, but not limited to, worker’s compensation, disability, retirement, li fe, unemployment, health or any other benefits and VISIT ANAHEIM agrees that he shall not su e or file a claim, petition or application therefore against CITY or any of its officers, employees, agents, representatives or sureties.

23. NO THIRD-PARTY RIGHTS
The parties intend not to create rights in, or to grant remedies to, any third party as a beneficiary of this Agreement or of any duty, covenant, oblig ation or undertaking established herein.

24. ENTIRE AGREEMENT
This writing constitutes the entire agr eement between the part ies with respect to the subject matter hereof and supersedes all oral or written representations or written agreements which may have been entered into between the part ies. No modification or revision shall be of any force or effect, unless the same is in writing and executed by the parties hereto.

If any provision of this Agreement shall be held invalid, such invalidity shall not affect the other provisions hereof, and to this extent, the provisions of this Agreement are intended to be and shall be deemed severable. The parties shall agree, if reasonably practicable, upon provisions which are equivalent from an econo mic point of view to replace any provision which is determined to be invalid.

25. LAWS GOVERNING C ONSTRUCTION OF TERMS
This agreement shall be governed by the laws of the State of California. If any portion of this Agreement is held invalid under any applicable statute or rule of law, then such portion only shall be deemed invalid.

26. FORCE MAJEURE
No party shall be considered to be in default in the performance of any of its obligations under this Agreement (other than obligations to ma ke payments for bills rendered pursuant to this Agreement) when a failure of pe rformance shall be due to uncontrollable force.

The term “uncontrollable force” shall mean any cau se beyond the control of the party unable to perform such obligations, including, but not limited to, a pandemic, failure of or threat of failure

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CITY OF ANAHEIM
200 S. ANAHEIM BOULEVARD, SUITE 356
ANAHEIM, CA 92805
(714) 765-5169
FAX (714) 765-5123

OFFICE OF THE CITY ATTORNEY

CITY OF ANAHEIM
200 S. ANAHEIM BOULEVARD, SUITE 356
ANAHEIM, CA 92805
(714) 765-5169
FAX (714) 765-5123
of facilities, flood, earthquake, storm, drought, fire, pestilence, lightning and other natural catastrophes, epidemic, war, riot, civil disturbance or disobedience, strike, labor dispute, labor or material shortage, sabotage, gove rnment priorities, restraint by court order or public authority and action or non-action by or inability to obtain the necessary authorization or approvals from any governmental agency or authority, which by th e exercise of due diligence such party could not reasonably have been expected to avoid and which by exercise of due diligence has been unable to overcome.

27. AUTHORITY AND EFFECTIVE DATE
VISIT ANAHEIM and VISIT ANAHEIM’s si gnators represent that the signators hold the positions set forth below their signatures and that the signators are authorized to execute this Agreement on behalf of VISIT ANAHEIM and to bind VISIT ANAHEIM hereto.

CITY and CITY’s signators represent that the signators hold the positions set forth below their signatures and th at the signators are authorized to execute this Agreement on behalf of CITY and to bind CITY hereto.

The effective date of this Agreement shall be upon attestation of this Agreement by the City Clerk (“Effec tive Date”). In the event VISIT ANAHE IM fails to set forth a date of execution opposite the name(s ) of VISIT ANAHEIM's signato r(s), VISIT ANAHEIM hereby authorizes CITY, by and through its representative, to insert the date of execution by VISIT ANAHEIM's signator(s) as the date this Ag reement, as executed by VISIT ANAHEIM, is received by CITY.

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CITY OF ANAHEIM
200 S. ANAHEIM BOULEVARD, SUITE 356
ANAHEIM, CA 92805
(714) 765-5169
FAX (714) 765-5123

OFFICE OF THE CITY ATTORNEY

CITY OF ANAHEIM
200 S. ANAHEIM BOULEVARD, SUITE 356
ANAHEIM, CA 92805
(714) 765-5169
FAX (714) 765-5123
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed on the dates hereinafter respectively set forth.

CITY OF ANAHEIM,
a municipal corporation

By______________________________
Mayor

DATE OF EXECUTION: ATTEST:
_________________________ ________________________________ City Clerk

" C I T Y "
APPROVED AS TO FORM:

Robert Fabella, CITY ATTORNEY

By__________________________
City Attorney

Date________________________

ANAHEIM/ORANGE COUNTY VISITOR &
C O N V E N T I O N B U R E A U ( d b a “ V I S I T
ANAHEIM”)

DATE OF EXECUTION: By______________________________

_________________________ Printed Name____________________

Title___________________________

" V I S I T A N A H E I M "

Attachment A

Anaheim Tourism Improvement District of 2010
Management Plan

Established Under Anaheim City Ordinance 6174
Section 2.14.050

Presented to:

The Anaheim/Orange County Visitor & Convention Bureau
Honorable Mayor Curt Pringle and City Council
City Manager Thomas J. Wood

September 2, 2010

Anaheim Tourism Improvement District of 2010 (ATID)
Management Plan
Table of Contents

Section 2.14.050,  Part .010

Sub‐Section:            Page

011  The Name of the Proposed District        Page  3

012  A Map of the District          Page  4

013  A Description of the Boundaries of the District,        Page  5

014  The Improvement and Activities Proposed for the First 5 Years Description of the Potential Transportation Items,       Page   7

015  The Total Annual Amount Proposed to be Expended for the First Five (5) Years of Operation of the District     Page   9

016  The Proposed Source or Sources of Financing Including the Proposed Method and Basis of Levying the Assessment     Page  11

017  The Time and Manner of Collecting Assessments     Page   13

018  The Specific Number of Years in Which the Assessment will be Levied  Page  14

019  The Proposed Time for Implementation and Completion of the Management Plan          Page  16

020  A List of the Businesses to be Assessed        Page  17

021  The Structure Governing Implementation of the Management Plan   Page  19

022  All Required Cost Recovery Information Specified in Section 2.14.130.020  Page  22

SECTION  011
THE NAME OF THE PROPOSED DISTRICT

The name of the proposed District will be the “Anaheim
Tourism Improvement District of 2010” ("ATID").
3 SECTION  012
A MAP OF THE DISTRICT

The map of the ATID and the following streets and address series are included in the following pages.

4 SECTION   013
A DESCRIPTION OF THE BOUNDARIES OF THE DISTRICT

The boundaries of the ATID are set forth in the maps in Section 012 and shall include all current and  future  visitor  accommodation  facilities,  hotels,  and  motels  (but  not  including  Vacation Ownership Resorts, as such term is defined in Anaheim Municipal Code Section 18.114.030.150, to  the  extent  they  are  being  used  as  Vacation  Ownership  Resorts)  located  within  the  ATID boundaries engaged in the renting of rooms for a period of less than thirty (30) days ("Assessed Facilities") which are, or will be, located within such boundaries.  In  general, a narrative of the Assessed Facilities to be included in the ATID is as follows:

Any and all current and future Assessed Facilities falling within the area designated on the map set forth in Section 012 hereof, including, without limitation, those Assessed Facilities on the following streets:

o On Harbor Drive from north Anaheim Resort boundaries near Vermont Avenue on the north, southward to the Garden Grove City border/and Chapman Avenue on the south; o On Disneyland Drive from north Anaheim Resort boundaries near Locust Avenue on the north, southward to West Street/Garden Grove City border on the south; o On the east side of Walnut Street from Ball Road on the north and Stella Street on the south;
o On Manchester and Clementine Street with the intersection of Harbor Boulevard and Manchester Avenue on the north to the intersection of Katella Avenue and Clementine Street on the south end;
o On Anaheim Boulevard with Interstate 5 on the north, southward to the Anaheim Resort boundaries along Anaheim Boulevard on the south;
o On Katella Avenue from Walnut Street on the west to the Santa Ana River on the east; o On Disney Way from Harbor Blvd on the west, to Interstate 5 on the east; o On Ball Road from West Place on the west to the eastern Anaheim Resort boundaries of Ball Road on the east;
o On Orangewood Avenue within the Anaheim Resort boundaries west of Interstate 5 continuing eastward and commencing again from Anaheim Way running eastward to the Santa Ana River on the east;
o On Chapman Avenue within the Anaheim Resort boundaries; o On Gene Autry Way from Interstate 5 on the west to State College Blvd on the east; o On Lewis Street within the Platinum Triangle boundaries; o On State College Blvd within the boundaries of the Platinum Triangle boundaries; o On Howell Avenue within the Platinum Triangle boundaries; o On Sunkist Street within the Platinum Triangle boundaries; o On Douglas Road within the Platinum Triangle boundaries; o On the east and west side of the Orange Freeway/State Route 57 within the boundaries of the Platinum Triangle;
o On Anaheim Way within the Platinum Triangle boundaries; 5 o Any existing and future private and public roads, streets, avenues or boulevards with the current and future boundaries of the Anaheim Resort Area and the Platinum Triangle as currently designated by the City Council of Anaheim; 6 SECTION  014
THE IMPROVEMENT AND ACTIVITIES PROPOSED FOR THE FIRST 5 YEARS DESCRIPTION OF THE POTENTIAL TRANSPORTATION ITEMS
The purpose of forming the ATID as a Tourism Improvement District is to provide revenues to cover  the  costs  of  activities,  improvements,  services  and  programs  that  will  benefit  the Assessed Facilities and the tourism and convention industry in the City of Anaheim ("City").  The activities, improvements, services and programs to be provided and paid for by the ATID shall confer a special benefit to all Assessed Facilities.  Those  activities, improvements, services and programs are listed below.

The owners of the Assessed Facilities anticipate that the City Council will approve a resolution authorizing bonds to be paid from the City General Funds or other special funds, other than ATID assessments, for improvements to or expansion of the Convention Center (including the Plaza).

Services and Programs, Improvements and Activities of the ATID:

The  ATID  will  serve  as  a  funding  mechanism  for  some  or  all  of  the  following  types  of  special improvements or activities to market, promote, and support the City's tourism and convention industry:

1. Marketing and Promotion Activities:
¾ Advertising and marketing programs;
¾ Special events produced by resort properties ‐ demand generators; ¾ Underwriting of related special events that benefit the Assessed Facilities; ¾ Public art related to the promotion of Anaheim Convention Center or Assessed Facilities; ¾ Private additional security within the Anaheim Resort Area for Assessed Facilities; and ¾ Funding  of  satellite  offices  and  facilities  for  the  promotion  of  the  City  as  a  desirable destination location.

2. Transportation Improvements and Activities:
¾ Planning,  design,  construction  and  operation  of  transit  improvements,  including  the "ARC," the inter‐city dedicated mass transit system linking the regional rail station to the various Assessed Facilities and collector points throughout the City, as further set forth in Section 016 hereof;
¾ Transportation  expenses  such  as  Anaheim  Transportation  Network  for  Assessed Facilities;
¾ Alternative transportation methods for Assessed Facilities; ¾ Pedestrian walkways and related improvements;
7 ¾ Other programs or activities which facilitate transportation to and within the Anaheim Resort Area and thus benefit the Assessed Facilities; and ¾ Debt service on and costs related to bonds, notes or certificates of participation issued by the City for any of the improvements set forth above.

3. Support Costs:
¾ Staff and organizational operating costs related to the administration of the ATID; ¾ Repayment  of  formation  costs  including  the  use  of  attorneys,  consultants  and  related professional services; and
¾ Any incidental collection fees levied by the City based upon agreement of the Assessed Facilities.

Funds remaining at the end of any ATID fiscal year shall be used in subsequent years in which the ATID assessments are levied so long as they are used consistent with the requirements of the adopted resolution of formation and this Management Plan. 8 SECTION  015
THE TOTAL ANNUAL AMOUNT PROPOSED TO BE EXPENDED FOR
THE FIRST FIVE (5) YEARS OF OPERATION OF THE ATID

In  an  effort  to  plan  conservatively,  the  following  table  assumes  that  there  will  not  be  any growth of new hotels or assessed facilities within the ATID boundaries of the Anaheim Resort Area or the Platinum Triangle within the next five (5) years.  It  also assumes that the room rates  and  occupancy  rates  will  grow  at  a  rate  of  only  three  percent  (3%)  per  year.  Any adjustments in revenue from the addition or subtraction of rooms and/or fluctuations in room and  occupancy  rates  will  be  reported  to  the  Contracting  Entity  (defined  below)  and  the Transportation  Committee  (defined  below),  which  in  turn  will  recommend  any  budgetary changes  to  the  City  Manager  and  City  Council  annually.   A  sample  annual  budget  for  the Marketing Component Funds (defined below) is attached hereto as Exhibit A.

The  following  figures  are  net  of  the  City's  administrative  costs  of  up  to  a  maximum  of  one percent (1%) of ATID revenues.  The  twenty‐five percent (25%) and seventy‐five percent (75%) allocation may be reallocated at a later date pursuant to the reallocation provisions in Section 016 hereof.

YEAR
(FY)  CATEGORY
PERCENTAGE OF THE
ATID BUDGET
TOTAL AMOUNT AVAILABLE
FOR ATID EXPENDITURE
2010‐11
(Partial
Year*)
Formation Costs of
the City  n/a  $350,000.00
Marketing Component
Funds
75% of remaining
amount  $4,360,811.00
Transportation Component
Funds
25% of remaining
amount  $1,453,604.00
Total  100%  $6,164,415.00
2011‐12  Marketing Component
Funds  75%  $7,140,024.00
Transportation Component
Funds  25%  $2,380,008.00
Total  100%  $9,520,032.00
2012‐13  Marketing Component
Funds  75%  $7,354,225.00
Transportation Component
Funds  25%  $2,451,408.00
Total  100%  $9,805,633.00
2013‐14  Marketing Component
Funds  75%  $7,574,851.00
Transportation Component
Funds  25%  $2,524,950.00
9 YEAR  PERCENTAGE OF THE  TOTAL AMOUNT AVAILABLE
(FY)  CATEGORY  ATID BUDGET  FOR ATID EXPENDITURE
Total  100%  $10,099,801.00
2014‐15  Marketing Component
Funds  75%  $7,802,097.00
Transportation Component
Funds  25%  $2,600,699.00
Total  100%  $10,402,796.00
Total for 1st
5 Years of
ATID
Marketing Component
Fund  75%  $34,232,008.00
Transportation Component
Funds  25%  $11,410,669.00
Total  100%  $45,642,677.001

*It is currently estimated that ATID Assessments will be collected for eight (8) months of the 2010‐11 fiscal year.  Therefore, the ATID expenditure for the 2010‐11 fiscal year is estimated based on eight (8) months of collections.

1 Total does not include 2010‐11 (Partial Year) City Formation Costs of $350,000. 10 SECTION 016
THE PROPOSED SOURCE OR SOURCES OF FINANCING INCLUDING THE PROPOSED METHOD AND BASIS OF LEVYING THE ASSESSMENT IN
SUFFICIENT DETAIL
Assessment Formula.

Each Assessed Facility shall pay an assessment in the amount equal to two percent (2%) of the hotel room "rent" (as defined in Anaheim Municipal Code Section 2.12.005.080) charged by the operator of such Assessed Facility (the "ATID Assessment").

Allocation.

The  City  shall  recover  its  actual  costs  of  administering  the  ATID,  from  the  ATID  Assessment revenues  collected  monthly  before  any  funds  are  distributed  for  other  purposes;  provided, however, the City's administrative costs on an annual basis shall not exceed one percent (1%) of the amount of the ATID Assessments collected in such fiscal year.  Of  the remaining net ATID Assessment revenues following the City's recovery of its costs, seventy‐five percent (75%) shall be  dedicated  to  marketing,  promotion  and  related  matters  as  outlined  in  Section  014  hereof (the  “Marketing  Component  Funds”)  and  twenty‐five  percent  (25%)  shall  be  dedicated  to transit and transportation improvements and related matters as outlined in Section 014 hereof ("Transportation Component Funds").  The  twenty‐five percent (25%) and seventy‐five percent (75%)  allocation  may  be  adjusted  to  thirty  percent  (30%)  and  seventy  percent  (70%), respectively, at a later date pursuant to the reallocation provision below.  The  specific uses of the  Transportation  Component  Funds  and  the  priority  of  such  uses  shall  be  governed  by  a Transportation Committee (defined in Section 021 below).

All  ATID  Assessment  Funds  collected,  and  any  earnings  thereon,  are  irrevocably  dedicated  to the  purposes  described  in  this  Management  Plan.  Any   amount  of  either  the  Marketing Component  Funds  or  the  Transportation  Component  Funds  that  is  not  spent  in  any  one  (1) fiscal year shall remain dedicated to such purposes.

The City shall enter into a contract with an entity ("Contracting Entity") that will be responsible for handling the day‐to‐day management of the Marketing Component Funds, under which the City's  sole  and  limited  financial  obligation  shall  be  to  distribute  funds  from  the  ATID Assessments  pursuant  to  the  terms  of  this  Management  Plan  and  its  contract  with  the Contracting  Entity.  Details   regarding  the  management  of  all  these  funds,  decision‐making regarding priorities and other related matters are provided in Section 021 of this Management Plan.

11 Reallocation  of  Percentages  between  the  Marketing  Component  and  the  Transportation Component:

The initial amount of the ATID Assessments dedicated annually to the Transportation Component Fund shall be twenty‐five percent (25%) of the collected ATID Assessments (net of the City's administration costs).  Notwithstanding anything herein to the contrary, if and when at least 800 new rooms within current or future Assessed Facilities are completed and occupied and further provided that the 800‐plus additional rooms are owned and/or managed by the largest single payer of ATID Assessments by brand at the time of the formation of the ATID, the allocation to the Transportation Component Funds shall, effective at the start of the next fiscal year of the City, be automatically increased from twenty‐five percent (25%) to thirty percent (30%) of the collected ATID Assessments and the allocation to the Marketing Component Funds shall automatically be decreased from seventy‐five percent (75%) to seventy percent (70%) (net of the City's administration costs).  If and when such reallocation occurs, all percentages and figures in this Management Agreement based on the twenty‐five percent (25%) and seventy‐ five percent (75%) allocation shall be automatically adjusted to reflect the thirty percent (30%) and seventy percent (70%) allocation.

Annual Report.

The Contracting Entity, which is responsible for managing the day‐to‐day affairs with respect to the Marketing Component Funds, and the Transportation Committee, which is responsible for overseeing the Transportation Component Funds, shall each file an annual report with the City in accordance with Section 2.14.150 of the TID Enabling Ordinance.  If,  and to the extent that the City elects to issue bonds pursuant  to Section 2.14.140 of the TID Enabling Ordinance for the purpose of financing authorized transit improvements, the sole source of payment of debt services and other costs of such bonds shall be from the Transportation Component Funds and no portion of the Marketing Component Funds shall be pledged to or otherwise be available to pay such costs for the term of the ATID.
12 SECTION   017
THE TIME AND MANNER OF COLLECTING ASSESSMENTS

The City Council found and determined that the public convenience and necessity required the establishment of the ATID and that all Assessed Facilities within the ATID shall be specifically benefitted from the expenditure of the funds raised by the ATID Assessments to be levied.  Any future Assessed Facilities opened within the boundaries of the ATID shall be automatically included in the ATID Assessment collection system as they will be specifically benefitted by the expenditure of funds raised by the ATID Assessments levied.

Assessment.

All Assessed Facilities shall pay an assessment in the amount equal to two percent (2%) of the hotel room "rent" (as defined in Anaheim Municipal Code Section 2.12.005.080) charged by the operator of such facility.  The Assessed Facility shall be solely responsible for payment of such assessment.

Collection by City.

Each Assessed Facility shall, on or before the close of City business on the last City business day of  each  month,  file  a  return  with  the  City‐designated  collector  on  forms  provided  by  such collector stating the total rents charged during the immediately preceding calendar month.  The full  amount  of  the  ATID  Assessments  shall  be  remitted  to  the  City  collector  along  with  the return.

Penalty for Non‐Payment.

Any Assessed Facility that fails to remit any ATID Assessments within the time required shall: (i) pay interest equal to one and one‐half percent (1.5%) per month on the outstanding amount due from the first (1st) day immediately following the due date until the date of payment; (ii) pay  a  penalty  of  ten  percent  (10%)  for  each  month,  or  portion  thereof,  said  payment  is overdue, from the first (1st) day immediately following the due date provided, that the amount of such penalty shall not exceed fifty percent (50%) of such delinquent ATID Assessment; and (iii) pay any collection costs incurred by the City.  Any  and all interest and penalties collected shall  be  deposited  into  the  same  accounts  that  hold  ATID  Assessment  revenues  and  shall  be used solely for the same authorized purposes of such revenues. 13 SECTION  018
THE SPECIFIC NUMBER OF YEARS IN WHICH THE ASSESSMENT WILL BE LEVIED

Concurrently with the establishment of the ATID, the City Council is being asked to approve a resolution authorizing bonds to be paid from the City General Funds for improvements to or expansion of the Convention Center (including the Plaza).  In light of this proposed commitment by the City, the assessment period for the ATID is for a minimum of thirty (30) years commencing October 31, 2010.

However, if within the first three (3) years of the ATID, no bonds have been issued pursuant to Section 2.14.140 of the Enabling Ordinance and no debt or other long‐term contract has been issued by or entered into by the City for improvements or expansion of the Convention Center (including the Plaza), then the disestablishment provisions set forth in Section 2.14.170 of the Enabling Ordinance shall become operative.  If, as a result, the ATID is disestablished,  the City shall work with the owners and operators of the Assessed Facilities to create an alternative plan and funding mechanism for convention and tourism promotion.

2.14.170 DISESTABLISHMENT.
.010  Any district established or extended pursuant to the provisions of this chapter, where there is no indebtedness, outstanding and unpaid or outstanding contract, incurred to accomplish any of the purposes of the district, may be disestablished by resolution by the City Council in either of the following circumstances:
.011  If the City Council finds there has been misappropriation of funds, malfeasance, or a violation of law in connection with the management of the district, it shall notice a hearing on disestablishment.
.012  During the operation of the district, there shall be a 30‐day period each year in which assessees may request disestablishment of the district.  The first such period shall begin five (5) years after the date of establishment of the district or such other time as set forth in the management plan and shall continue for thirty (30) days.  The next such 30‐day period shall begin six (6) years after the date of the establishment of the district or such other time as set forth in the management plan. Each successive year of operation of the district shall have such a 30‐day period.  Upon the written petition of the owners of businesses in the ATID who pay 50 percent (50%) or more of the assessments levied, the City Council shall pass a resolution of intention to disestablish the district.  The City Council shall notice a hearing on disestablishment. .020  The City Council shall adopt a resolution of intention to disestablish the district prior to the public hearing required by this section.  The resolution shall state the reason for the disestablishment, shall state the time and place of the public hearing, and shall contain a proposal to dispose of any assets acquired with the revenues of the assessments levied within the property and business improvement district.  The notice of the hearing on disestablishment 14 required by this section shall be given by mail to each affected ATID business subject to assessment in the district, as appropriate.  The City shall conduct the public hearing not less than thirty (30) days after mailing the notice to the property or business owners.  The public hearing shall be held not more than sixty (60) days after the adoption of the resolution of intention.
.030  Upon the disestablishment of a district, any remaining revenues, after all outstanding debts are paid, derived from the levy of assessments, or derived from the sale of assets acquired with the revenues, or from bond reserve or construction funds, shall be refunded pro rata to the owners of ATID businesses then located and operating within the district in which assessments were levied by applying the same method and basis that was used to calculate the assessments levied in the fiscal year in which the district is disestablished. .040  If the disestablishment occurs before an assessment is levied for the fiscal year, the method and basis that was used to calculate the assessments levied in the immediately prior fiscal year shall be used to calculate the amount of any refund. .050  Notwithstanding the above, if there is indebtedness or outstanding contracts, the assessment may not be terminated for such indebtedness or contract but may be permanently or temporarily terminated or otherwise reduced with respect to all other improvements and activities if the above steps are taken upon the written petition of the owners of businesses in the ATID who paid 50 percent (50%) or more of the assessments in the preceding fiscal year.

15 SECTION 019
THE PROPOSED TIME FOR IMPLEMENTATION AND COMPLETION OF THE ANAHEIM TOURISM IMPROVEMENT DISTRICT

ACTION TAKEN BY THE CITY

COUNCIL
EXPLANATION  DATE/STATUS
Adoption of TID Enabling
Ordinance by the City
Council
This is the local legislation that allows
for the creation of the new ATID
July 20, 2010, Adopted
unanimously by the City
Council
Resolution of Intent to
Establish the ATID
Signifies the City’s intention to hold a
public hearing to consider
establishment of the new ATID
July 27, 2010, Adopted
unanimously by the City
Council
Finalization of the ATID
Management Plan
Week of August 30, 2010  Pending
Circulation of petitions of
by ATID Members
informing the City Council
of their support of the
ATID
Though not required, the VCB will
circulate petitions among ATID hotel
owners and operators to demonstrate
support of the ATID at the September
14, 2010 public hearing
Pending, petitions should
begin circulation around
August 30, 2010
Public Meeting/City
Council Chambers
Input sought by City Council for the
proposed ATID
August 31, 2010
Public Hearing, Resolution
of Formation/City
Chambers
Public Hearing to hear all positions of
support and opposition to the
proposed levying of the assessment on
affected businesses to fund the special
benefits proposed in the ATID
September 14, 2010.

ATID is formed if the City
Council adopts the
Resolution of Formation
by majority vote
First bills sent out by the
City to inform ATID
assessed facilities of their
obligation to pay the 2%
ATID assessments for
each occupied room rent
Notices informing all Assessed
Facilities that ATID fees will be
required to be collected, or paid
commencing November 1, 2010
Notices sent out mid
October
First ATID payments made
to the City
Covering November ATID assessments  Early December
First transfer of ATID
funds from the City to the
Contracting Entity
Collections by the City, placed in a
segregated account.  75% of the
collections sent to the Contracting
Entity
Late December
ATID funds allocated on
behalf of all ATID
Assessed Facilities
Managed by the Contracting Entity and
Transportation Committee
January 2011
16 SECTION   020
A LIST OF THE KNOWN BUSINESSES TO BE ASSESSED (AS OF SEPTEMBER 2010)

17 18

SECTION  021
THE STRUCTURE GOVERNING IMPLEMENTATION OF THE MANAGEMENT PLAN AND THE ALLOCATION OF ATID REVENUES INCLUDING THE MARKETING COMPONENT FUNDS AND THE TRANSPORTATION COMPONENT FUNDS

The structure governing the implementation of the ATID and the use and management of the Marketing Component Funds and the Transportation Component Funds and related activities is set forth below.

1. MARKETING COMPONENT

Section  2.14.150  of  the  TID  Enabling  Ordinance  sets  forth  the  requirements  of  the  “Advisory Board” as well as the “Contracting Entity” as follows:

The  City  Council  “may  designate  an  Advisory  Board  that  shall  make  recommendations  to  the City  Council  regarding  the  expenditures  of  revenues  derived  from  the  levy  of  the  assessments pursuant  to  this  chapter,  the  classification  of  businesses,  as  applicable,  and  the  method  and basis  of  levying  the  assessments.”   “The  City  shall  enter  into  a  contract  with  an  organization ("Contracting  Entity")  to  provide  for  day‐to‐day  management  of  any  activities,  services  and advertising (not improvements) authorized to be funded with the assessments."

The City intends that the uses of the Marketing Component Funds shall reflect the needs of the Assessed Facilities.  Therefore, one of the criteria the City shall use in selecting the Contracting Entity is that it is, or will be, structured in a manner that provides adequate representation of the needs of the Assessed Facilities.  Alternatively,  while the City does not, at the time of the adoption  of  this  Management  Plan,  intend  to  appoint  an  Advisory  Board  with  respect  to  the Marketing  Component  Funds,  it  may  elect  to  do  so  in  the  future  in  order  to  provide  such representation  and  oversight  by  the  Assessed  Facilities.  Subject  to  execution  of  a  mutually agreeable  contract  with  the  City  and  continuing  for  the  term  of  the  contract,  the Anaheim/Orange County Visitor & Convention Bureau ("VCB") shall serve in the capacity of the Contracting Entity.  The  Contracting Entity will have the authority to administer the Marketing Component Funds on a day‐to‐day basis consistent with the Enabling Ordinance, the Resolution of Intention, the Management Plan, and its contract with the City.  The Contracting Entity shall have  full  authority  to  present,  review,  and  approve  an  annual  Marketing  Component  Funds budget.  The  Marketing Component Funds budget will be presented at least one (1) time per year, to all owners and operators of Assessed Facilities in an open public forum.  At such public forum,  the  Contracting  Entity  shall  solicit  feedback  on  existing  ATID  marketing  programs  and solicit new concepts to maximize the beneficial impact to Assessed Facilities.  The  Contracting Entity shall take all the information gathered from the forum and present their findings in the form  of  an  annual  report  each  City  fiscal  year  for  which  assessments  are  to  be  levied  and collected  to  pay  the  costs  of  the  improvements  and  activities  described  in  the  report.  The report may propose changes, including, but not limited to, the boundaries of the ATID, the basis 19 and method of levying the assessments, any changes in the classifications of property, changes in  the  Management  Plan,  and  the  activities  and  improvements  to  be  funded  by  Marketing Component  Funds.   The  annual  report  shall  follow  the  guidelines  and  requirements  for  the Annual  Report  as  articulated  in  Section  2.14.150.030  of  the  Enabling  Ordinance.   This  will  be implemented under the corporate authority of the Contracting Entity as articulated in Section 022 of this Management Plan.

The  City's  financial  obligations  under  the  contract  with  the  Contracting  Entity  shall  be  solely limited to distributing ATID Assessments, and other Funds as may be specified in the contract, per the terms of the contract and this Management Plan and under no circumstances shall the City have any financial liability to the Contracting Entity from its own funds, except such Funds specified in the contract.

2. TRANSPORTATION COMPONENT

The Transportation Committee shall oversee the use of the Transportation Component Funds and have full authority to present, review, and approve an annual Transportation Component Funds  budget.  The   Transportation  Committee  shall  advise  and  recommend  the  use  of  such funds  to  the  City  Manager  of  Anaheim  consistent  with  such  budget.   The  City  Manager  shall administer  the  Transportation  Component  Funds  on  a  day‐to‐day  basis  consistent  with  the Enabling  Ordinance,  the  Resolution  of  Intent  and  the  Management  Plan,  as  overseen  by  the Transportation Committee.  The three (3) member Transportation Committee shall be annually appointed as follows:

a. One (1) representative appointed by the Anaheim City Manager; b. One (1) representative appointed from the largest single contributor in the aggregate by brand to the ATID;
2 and
c. One (1) representative recommended by the VCB Board, who shall also be an owner or operator of an Assessed Facility and a member of the board of directors of the Anaheim Transportation  Network,  and  approved  by  the  other  two  representatives  on  the committee.

The Transportation Committee shall take all the information gathered from its regular meetings and present their findings in the form of a report each City fiscal year for which assessments are to be levied and collected to pay the costs of the improvements and activities described in the report.  The   report  may  propose  changes,  including,  but  not  limited  to,  the  allocation  of transportation‐related  projects,  capital  improvements  related  to  transportation‐related projects, activities and programs that promote transportation to the rail station to the Assessed Facilities, master plan related expenditures, and the activities and improvements to be funded by  the  Transportation  Component  Funds.  The   annual  report  shall  follow  the  guidelines  and

2  In the first (1st) year following the establishment of the ATID, the determination of the largest single contributor shall be based on projected ATID assessment payments.  In each subsequent year, the determination shall be based on actual ATID assessment payments in the preceding year. 20 requirements  for  the  Annual  Report  as  articulated  in  Section  2.14.150.030  of  the  Enabling Ordinance.
21 22

SECTION   022
ALL REQUIRED COST RECOVERY INFORMATION SPECIFIED IN SECTION

2.14.130.010

Funds allocated for the investigation, formation and implementation of the ATID from the City may be reimbursed from the first (1st) year proceeds of the assessments generated by the ATID above  and  beyond,  and  in  addition  to,  the  one  percent  (1%)  limitation  set  forth  above.  The Enabling Ordinance allows the following:

2.14.130 COST RECOVERY.
.010  The city council may authorize a district formed pursuant to this ordinance to recover though the assessments, the cost incurred in formation of the district, including:
.011  The cost of preparation of the management plan.
.012  The cost of printing, advertising and the giving of published, posted, or mailed notices.
.013  Compensation of any attorneys or other consultants employed to render services related to the formation of any district including proceedings under this ordinance. .014  Any other costs associated with the formation of the district.

The costs of the City for investigation, formation and implementation of the ATID in 2010 are estimated not to exceed:  three hundred and fifty thousand dollars ($350,000).

Ongoing Administrative Cost Recovery by the City of Anaheim:

The  annual reimbursed costs  of  the  City  for  administering,  collecting, sending  penalty  notices and  auditing  all  Assessed  Facilities  shall  not  exceed  one  percent  (1%)  of  the  gross  amount collected annually by the City for the ATID.  The  actual cost recovery costs, not to exceed the one  percent  (1%)  cap,  shall  be  deducted  from  the  total  amount  collected  prior  to  any distributions of the Marketing Component Funds or the Transportation Component Funds.

Exhibit A
EXHIBIT A
SAMPLE BUDGET FOR THE MARKETING COMPONENT FUNDS
Statement of Expense Summary - Marketing Statement of Expense Summary - Convention Sales Budget Highlights Marketing Budget Highlights- Convention Sales Brand Advertising 350,000 Solicitation, Travel, Promotions 900,000 Interactive Agency & Media Buys Travel & Entertainment Cooperative Promotions 175,000 Client Events 700,000
Industry Sponsorships, Attendee Marketing, Account
Campaigns Client events, site tours, sales blitzes, Meeting Industry Council Research 150,000 Salaries and Related Costs 2,200,000
Attendee Satisfaction Survey & Web site Conversion Study Collateral (Sales Tools) 125,000 Convention Sales Directors XX Videos, Virtual Tours, & Presentations Market responsibilities to include Exhibiting 65,000 In Market Sales Director-Northern California X Booth Rental, Graphics & Design Markets include corporate and association based in the western region Web Development - Technology 125,000 In Market Sales Director-Washington DC Interactive mapping, Social Media, Content Management
System, Mobile Applications, License Fees & Third Party Integrations
Market responsibilities to include corporate and association based in the mid-Atlantic region.

Promotion & Travel 75,000 Convention Sales Coordinators XX Year Out Travel, Staffing, Attendee Marketing Sales Calls Develop and prospect new business, ACC and self contained all markets

Salaries & Related Costs 317,000 Convention Services Manager X Web Content Specialist X
Marketing Research Analyst X
Marketing Coordinator
Revenue Management 250,000
Restricted Reserves to host Industry Conventions PCMA,
MPI, ASAE 100,000

Exhibit A

Statement of Expense Summary - Marketing Statement of Expense Summary - Convention Sales Budget Highlights Marketing Budget Highlights- Convention Sales Public Relations Campaign 250,000
Social Media Campaign 150,000 Subsidy to offset costs for groups 1,000,000 Total Marketing Expense $2,032,000 Total Convention Sales Expense $4,900,000

Sub-total Convention Sales & Marketing $6,932,000

Transportation Component - 25% Anaheim
only $2,310,000

Total Proposed Budget $9,242,000

Attachment B
Sub-Contractor Policy

This policy outlines the required procedures for VISIT ANAHEIM when entering into agreements with subcontractors. VISIT ANAHEIM shall:

1. Ensure all subcontractors are subject to al l applicable terms and conditions of this Agreement including, but not li mited to, the insurance and indemnification requirements of the Agreement.

2. Ensure that all subcontractor agreements have key performance indicators. Regularly review and update key performance indicators as necessary.

3. Develop and write a clear, concise detailed description of the work to be performed.

4. Review each draft subcontract or agreement for contract provisions, scope of work, technical requirements, completion dates, be nchmarks, timelines, estimated quantities, dollar amounts and final performance.

5. Monitor progress of work to ensure that services are performed according to the quality, quantity, objectives, timeframes, and manner specified in th e subcontractor agreement.

Upon request by City, but no more frequently than quart erly, VISIT ANAHEIM shall make available to the City for review repor ts submitted by applicab le Subcontractors on the target and actual services provided by the subcontractor for the reporting period to date (by type of activities, specific mark eting initiatives or actions undertaken, and detailing the way in which assessed busine sses are benefitted by the work) along with details of funds expended.

6. Ensure that all work is completed and accepte d by the subcontractor before the contract expires.

7. Review invoices to verify work performed and costs claimed in accordance with the subcontractor contract.

8. Verify that the subcontractor has fulfilled all requirements of the subcontractor contract before approving the final invoice.

9. Fully document in writing problems concer ning any subcontractor’s performance and provide written notice to the subcontractor of such unsatisfactory performance. Such notices should explain why the work is no t satisfactory, what corrective action is expected, and give a specified period of time in which to satisfactorily perform the work.

10. Maintain all invoices, records, and rele vant documentation consistent with VISIT ANAHEIM’s Record Retention Policy.