CITY COUNCIL STAFF REPORT
Meeting Date: May 01, 2023
TO: THE HONORABLE MAYOR AND CITY COUNCILMEMBERS
SUBJECT: ADOPT RESOLUTION NO. ___-23 AUTHORIZING THE CITY
MANAGER TO NOTIFY THE PLEASANT HILL CHAMBER OF
COMMERCE THAT THEY ARE RELEASED FROM THE
REQUIREMENT TO CONDUCT AND SUBMIT TO THE CITY A
FINANCIAL AUDIT OF THE PLEASANT HILL TOURISM
IMPROVEMENT DISTRICT FOR THE PERIOD JULY 1, 2021 TO
MARCH 30, 2022
SYNOPSIS
The City Council approved the formation of the Pleasant Hill Tourism Improvement District (PHTID) in 2017 and designated the Pleasant Hill Chamber of Commerce (Chamber) as the PHTID Owners’ Association for the first five years. Then, Stay Pleasant Hill was designated by the City Council as the Owners’ Association for the next five years, from 2022 to 2027. In October of this year, the Chamber requested to be released from the requirement in their Owners’ Association Agreement to complete their final annual financial audit, which was due on September 30, 2022.
The City Council is asked to consider the Chamber’s request to be released from the requirement to submit a final financial audit to the City.
DISCUSSION
On March 20 and June 5, 2017, respectively, the City Council adopted Resolution Nos. 29-17 and 44-17 creating the Pleasant Hill Tourism Improvement District and designating the Pleasant Hill Chamber of Commerce as the Owners’ Association of the PHTID, in accordance with Streets and Highways Code section 36614.5. The Owners’ Association manages the day-to-day operations of the PHTID, including the provision of annual reports with audited financial statements due to the City each year.
On April 6, 2020, the City Council adopted Resolution No. 27-20, a First Amendment to the Owners’ Association Agreement, which adjusted the PHTID audit schedule from April 1 – March 30 to July 1 – June 30. The due date was also adjusted from July 31 to September 30. On October 3, 2022, the Chamber submitted a request to the City to be released from the financial audit requirement for the final nine months of the Agreement. Normally, the annual audit would cover 12 months from July 1 to June 30. However, the final Chamber PHTID audit would have covered the period July 1, 2021 to March 30, 2022 because Stay Pleasant Hill became the new Owners’ Association on April 1, 2022.
The attached resolution would authorize the City Manager to notify the Chamber of the granting of their request to be released from conducting an audit of the PHTID for the July 1, 2021 to March 30, 2022 period.
FISCAL IMPACT
No direct fiscal impact to the City has been identified.
PUBLIC CONTACT
Public contact was made through posting of the City Council agenda on the City’s official notice bulletin board, at the Pleasant Hill Senior Center and at the Pleasant Hill Police Department. The agenda and staff report are posted on the City’s web page.
RECOMMENDED CITY COUNCIL ACTION
Consider the Chamber’s request to be released from submitting a fiscal audit for the final nine months of the Owners’ Association Agreement and, if granted, adopt the proposed Resolution authorizing the City Manager to notify the Chamber of the granting of their request to be released from conducting and submitting to the City a PHTID audit for the July 1, 2021 to March 30, 2022 period.
ALTERNATIVES TO RECOMMENDED ACTION
Do not consider the Chamber’s request to be released from the fiscal audit requirement for the July 1, 2021 to March 30, 2022 period.
ATTACHMENT(S):
Proposed Resolution
Exhibit 1 – Owners’ Association Agreement
Exhibit 2 – Resolution Approving First Amendment to Owners’ Association Agreement Prepared by: Zach Seal, Economic Development Manager
Approved by: June Catalano, City Manager