SR-11-10-1987-6LCM:LCB:dvm
City Council Meeting 11/10/87
TO: Mayor and City Council
FROM: City Staff
NOV 1 0 1987
Santa Monica, California
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SUBJECT: Recommendation to Authorize City Manager to Negotiate
and Execute an Amendment to the Agreement with Santa
Monica Convention and Visitors Bureau
INTRODUCTION
This report recommends that the City Manager be authorized to
negotiate and execute an amendment to the existing agreement with
the Santa Monica Convention and Visitors Bureau regarding the
level of City funding for Bureau activities.
Background
The City and the Bureau have an agreement which has been in
effect since October, 1985. City staff and Bureau
representatives have met and discussed potential amendments to
the previous agreement due to the recent increase in the City's
Transient Occupancy Tax rate.
These meetings have been successfully concluded and resulted in
the attached amendment regarding the City funding contribution to
the Bureau. All other terms and conditions of the 1985 agreement
will remain in full force and effect.
NE1V =1 0 1987
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The three principal modifications to the agreement are noted
below:
1) The City's contribution to the Bureau will increase from
an amount equal to 12.5 of forecast Transient Occupancy
Tax revenues to 15% of forecast revenues effective
October 1, 1987. The City's contribution to the Bureau
will increase to 17% effective July 1, 1989.
2) The amount paid to the Bureau will be adjusted upward or
downward based on a review of actual receipts after the
end of each fiscal year.
3) The amount paid to the Bureau in any one year will not
exceed $750,000 as adjusted by a CPI factor.
BUDGET/FISCAL IMPACT
The 1987-88 adopted budget includes funds according to the
formula proposed in the amendment.
RECOMMENDATION
It is recommended that the City Manager be authorized to
negotiate and execute an amendment to the agreement with the
Santa Monica Convention and Visitors Bureau as outlined in this
report.
Prepared by: Lynne C. Barrette
Assistant City Manager
Attachment
(SMCVB2)
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AMENDMENT TO AGREEMENT
This constitutes an Amendment ("Amendment") to that certain
Agreement dated October 14, .1985 ("Agreement") by and between the
City of Santa Monica., a California Charter City ("City") and the
Santa Monica Convention & Visitors Bureau, Inc., a California
nonprofit corporation ("Bureau"). This Amendment is dated for
reference purposes October 1, 19.87.
1. Paragraph 2 of the Agreement is hereby modified to
provide as follows:
(a) For fiscal year 1987/88, the City shall pay to
Bureau the annual sum of $476,9&7.
(b) For fiscal year 1988/89, the City shall pay to
Bureau a sum equal to 15% of the forecast transient occupancy tax
revenue pursuant to Santa NTonica Municipal Code .Section 6600 et
seq. for fiscal year 1988/89.
(c) For fiscal year 1989/90 and each year thereafter,
the City shall pay to Bureau a sum equal to 17.5% of the forecast
transient occupancy max revenue pursuant to Santa Monica
Municipal Code Section 6600 et se•c. for the applicable fiscal
year.
(d) ?riithin four months of the close of each fiscal year
(i.e, no later than Cctober 31), an adjustment of the total
annual sum paid by the City to Bureau shall be made to reconcile
the difference, if :any, between actual transient occupancy tax
revenues received by the City pursuant to Santa Monica Code
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Section 6600 et seq. for the previous fiscal year and forecast
transient occupancy tax revenues for the .previous fiscal year.
If the actual sum, as calculated according to the subparagraphs
below, exceeds the amount delivered to the Bureau based upon
forecast transient occupancy tax revenues, the City shall pay to
Bureau an amount equal to the difference within five months of
the end of the fiscal year in review (i.e. no later than November
30). If the actual sum, as calculated according to the
subparagraphs below., is less than the amount. delivered to the
Bureau based upon forecast transient occupancy tax revenues, the
City shall deduct the difference from the remaining quarterly
payments due the Bureau within twelve months of the end of the
fiscal year in review {i.e. no later than June 30).
i. For fiscal year 1987/88, the sum of 12.5% of
the actual transient occupancy tax revenues
from July 1 through September 30, 1987, plus
150 of the actual transient occupancy tax
revenues received from October 1; 1987
through June 30, 1988, shall be compared to
the total sum delivered to Bureau pursuant to
Paragraph 1a of this Amendment.
ii. For fiscal year 1988/89, 15°s of the actual
transient occupancy tax revenues from July 1,
1988 through June 30, 1989, shall be compared
to the total sum delivered to Bureau pursuant
to Paragraph ib of this Amendment.
iii. For fiscal year 1989/90 and each fiscal year
thereafter, 17.50 of the actual transient
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occupancy tax revenues from July 1, through
June 30 of the fiscal year being reviewed
shall be compared to the total sum paid by
City to Bureau pursuant to Paragraph lc of
this Amendment for the applicable fiscal
year.
(e) The term "forecast transient occupancy tax
revenue", as used herein, shall mean the amount of transient
occupancy tax revenue projected by the City in its annual budget
for the applicable fiscal year prepared in the ordinary course of
the City's operations.
(f) Ali funds paid by the City to the Bureau as
required by this. paragraph shall be paid from the City's general
fund and not from any specific tax or other financial source.
(g) All payments made by the City to the Bureau shall
be made in .equal quarterly payments not later than July 10,
October 10, January 10, and April 10 of each year, or on such
other basis as agreed to by the parties.
(h} All .such funds shall be expended by the Bureau for
Bureau activities only as enumerated herein.
(i) Notwithstanding the formula for annual revenue
contained. herein, when the annual sum determined in accordance
with Paragraph (a) through (c) of this Agreement equals or
exceeds $750,000, as adjusted in accordance with subparagraph (jj
below (the "adjusted sum"}, then the adjusted sum shall
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constitute the annual sum paid by City to Bureau and the formula
contained in Paragraph (a) through (c) herein shall be of no
further legal force or effect except as provided for in
subparagraph (k); provided, however, that the Bureau may receive
additional funds from the City in excess of the annual sum, for
specifically identified programs as requested by the Bureau in an
"Annual Request for Additional Funding" and approved by the City.
(j) The $750,000 sum referred to in subparagraph (i)
above shall be adjusted by a percentage equal to the percentage
increase in the Consumer Price Index (CPI), all urban consumers
{Los Angeles-Long Beach-Anaheim) from July 1, 1987 through July l
of the applicable fiscal year.
(k) In years in which the Bureau is receiving the
adjusted sum ($750,000 + CPI) factor, any downward adjustment in
the Bureau's funding described in paragraph 1(d) above shall be
calculated against the actual sum rather than the adjusted sum.
2. Except as specifically modified herein, the Agreement
shall remain in full force and effect.
IN WITNESS W-FiEREOF, this Amendment has been executed by the
parties as of the day and year indicated above.
CITY OF SANTA MONICA,
a Municipal Corporation
By:
JOHN JALiLi
City Manager
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Approved as to Form:
~~~ ,s
ROBERT M. MYERS
City Attorney
SANTA MONICA CONVENTION &
VISITORS BUREAU, INC.
a California Non-Profit Corp.
By
LINDA KOPPERUD
(amedagrt) President
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