HomeMy WebLinkAboutMinutes - April 29, 2014 SSLODI CITY COUNCIL
SHIRTSLEEVE SESSION
CARNEGIE FORUM, 305 WEST PINE STREET
TUESDAY, APRIL 29, 2014
A. Roll Call by City Clerk
An Informal Informational Meeting ("Shirtsleeve" Session) of the Lodi City Council was held
Tuesday, April 29, 2014, commencing at 7:00 a.m.
Present: Council Member Johnson, Council Member Mounce, Council Member Nakanishi, and
Mayor Katzakian
Absent: Mayor Pro Tempore Hansen
Also Present: Interim City Manager Schwabauer, Interim City Attorney Magdich, and City Clerk
Johl-Olson
B. Topic(s)
B-1 Discussion Regarding Visit Lodi! Memorandum of Understanding Renewal (CM)
Deputy City Manager Jordan Ayers provided a brief PowerPoint presentation regarding the Visit
Lodi! Memorandum of Understanding (MOU) renewal. Specific topics of discussion included the
history of the MOU and funding from previous years.
In response to Council Member Mounce, Mr. Ayers stated that, since the beginning of the
contract in 2009/10, the Transient Occupancy Tax (TOT) has increased by over $100,000 as
shown on the slide.
In response to Council Member Johnson, Interim City Manager Schwabauer stated the
assessments are paid by hotels within the City and hotels located in Flag City.
Discussion ensued among Council Member Mounce, Council Member Nakanishi, and
Mr. Schwabauer regarding increasing the TOT to make it more comparable to other communities,
options for replacing or offsetting City contribution to Visit Lodi!, the economic development
position, and retaining and increasing tourism interest in the area.
Discussion ensued regarding Council Member Johnson and Mr. Schwabauer regarding the
challenges associated with attracting industrial and commercial businesses to the community
without having access to readily available land and infrastructure.
Nancy Beckman, representing Visit Lodi!, spoke in regard to the history of the partnership
between the City and the visitor's bureau, the history of funding provided by the City, and
recommended renewing the contract for an additional five-year period.
In response to Council Member Nakanishi, Ms. Beckman stated the current contribution from the
City through TOT revenue is $105,963.
In response to Mayor Katzakian, Ms. Beckman confirmed that the annual operating budget for
Visit Lodi! is approximately $468,000.
In response to Council Member Nakanishi, Ms. Beckman stated other business improvement
districts in comparison have a variety of arrangements including some, partial, or no funding
through the City.
In response to Mayor Katzakian, Ms. Beckman stated the funding from the City helps with
increased room revenues, TOT revenues, visitor information inquiries, advertising and marketing,
group sales, and public relations.
In response to Council Member Mounce, Ms. Beckman confirmed that the Hampton Inn opened
in 2008 and the Holiday Inn Express opened in 2009.
Beth Kim, representing the Holiday Inn Express, spoke in regard to the challenges associated
with properly communicating the benefits of an increased TOT to the voters and citizens of the
community. Ms. Kim indicated her preference for extending the contract while exploring other
funding options including increasing the TOT or assessment amounts.
In response to Council Member Nakanishi, Mr. Schwabauer indicated the assessment is
approved by the City Council.
Council Member Nakanishi requested information regarding how the increase in sales tax
revenue since 2009 correlates with the TOT numbers since 2009.
In response to Council Member Johnson, Mr. Schwabauer indicated that next year's proposed
budget incorporates the terms of the existing agreement already and he is planning on bringing
the item back for final discussion and approval before budget adoption.
C. Comments by Public on Non-Aaenda Items
None.
D. Adjournment
No action was taken by the City Council. The meeting was adjourned at 7:50 a.m.
ATTEST:
Randi Johl-Olson
City Clerk
AGENDA ITEM 8--'
CITY OF LODI
,. COUNCIL COMMUNICATION
TM
AGENDA TITLE: Discussion Regarding Visit Lodi! Memorandum of Understanding Renewal
MEETING DATE: April 29, 2014
PREPARED BY: Deputy City Manager
RECOMMENDED ACTION: Discussion regarding Visit Lodi! Memorandum of Understanding
renewal.
BACKGROUND INFORMATION: In 2004, the City Council formed the Lodi Tourism Business
Improvement District (LTBID) pursuant to Streets and Highways
Code Section 36500 et seq. and has annually approved
assessments equal to three percent (3%) of hotel room short term rental revenue. Visit Lodi! administers
the funds raised under the LTBID assessments.
Additionally, the City and Visit Lodi! entered into a Memorandum of Understanding (MOU) in August 2009
that provided additional funding equal to 19 percent of the Transient Occupancy Tax (TOT) collections
to Visit Lodil. This MOU is set to expire on June 30, 2014.
Staff seeks direction from Council regarding provisions for renewal of the MOU with Visit Lodi!.
Nancy Beckman, President and CEO of Visit Lodi! will be available to answer questions.
FISCAL IMPACT: Funding provided to Visit Lodi! under the current MOU is shown below:
Fiscal Year
TOT Revenue
Assessment
Revenue
MOU Funding
2009/10
$382,365
$191,182
$72,649
2010/11
$425,899
$212,950
$80,921
2011/12
$486,185
$243,092
$92,375
2012/13
$545,443
$272,721
1 $103,634
2013/14 (Estimated)
1 $557,700
$278,850
1 $105,963
FUNDING AVAILABLE: Not applicable.
Jordan Ayers
Deputy City Manager
APPROVED:
Step en chwabauer, ' City Manager
Visit Lodi! Memorandum
of Understanding
Shirtsleeve Session
April 29, 2014
History
► Formed in 2004
o 3% Assessment
► General Fund Contribution
• Prior to FY 2009/10
• Annual budget allocation determined each year
• FY 2009/10 forward
• MOU designating 19% of Transient Occupancy Tax to
Visit Lodi!
• MOU expires 6/30/2014
Funding
2009/10
2010111
2011/12
2012/13
2013/14
(estimated)
$382,365 $191,182
$425,899
$486,185
$545,443
$557,700
$212,950
$243,092
$272,721
$278,850
$72,649
$80,921
$92,375
$103,634
$105,963
Questions?