CITY COUNCIL STAFF REPORT
Meeting Date: May 15, 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
Section 14 of the Pleasant Hill Tourism Improvement District (PHTID) Owners’ Association Agreement with the City requires an annual fiscal audit. Adopting the attached resolution releases the Chamber from conducting a fiscal audit covering the final nine months of their term as the PHTID management term.
DISCUSSION
The City Council approved the formation of the PHTID in 2017 and designated the Pleasant Hill Chamber of Commerce (Chamber) as the PHTID Owners’ Association beginning on April 1, 2017 and ending on March 31, 2022. The 2020 First Amendment to the PHTID Owners’ Association Agreement changed the time frame of the required annual fiscal audit from April 1 – March 31 to July 1 – June 30. Because the term of the Agreement ended on March 31, 2022, the Chamber’s final audited financial statement would cover a nine-month period (July 1, 2021 – March 31, 2022) instead of a twelve-month period. Stay Pleasant Hill became the new PHTID Owners’ Association on April 1, 2022.
The Chamber notified City staff on October 3, 2022 that the Chamber is not planning to complete a fiscal audit covering the final nine months of the Agreement. On February 22, 2023, the Budget Committee noted that neither the PHTID Agreement nor the First Amendment to the PHTID Agreement includes language addressing an audit period that does not fall on a 12-month schedule, and recommended that the full Council release the Chamber from completing and submitting a fiscal audit covering the final nine months of their PHTID management term (July 1, 2021 – March 30, 2022).
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
Adopt the proposed Resolution authorizing the City Manager to notify the Chamber that they have been released from conducting and submitting to the City a PHTID fiscal audit covering the final nine months of their management term, July 1, 2021 – March 30, 2022.
ALTERNATIVES TO RECOMMENDED ACTION
Do not adopt the proposed Resolution releasing the Chamber from completing a nine-month fiscal audit covering the final nine months of their management term of July 1, 2021 – March 30, 2022.
ATTACHMENTS:
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