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City Auditor Told City Mgr. Of $1.7 Million In CVB Losses Related to Aquatics Festival On October 4; Some Councilmembers Say They Haven't Received Auditor's Report
(October 19, 2004, updated text) -- A draft report by City Auditor Gary Burroughs on the operating results of a 2004 LB Aquatics Festival indicates City Manager Jerry Miller was told on The draft report also indicates city staff performed $150,000 in city services without charge.
The Auditor's office says it performed the financial review of the operating results of the Aquatics Festival at the City Manager's request. It says the event was organized, promoted and operated by the Long Beach Sports Council, a non-profit entity formed in April 2002.
"The Sports Council shares certain members of its Board of Directors and officers with that of the Long Beach Convention and Visitors Bureau (the CVB). The Sports Council and CVB have similar missions in attracting events and visitors to the City," the Auditor's report says.
The report, which is not a financial statement audit but is a financial review of the Aquatics Festival operating results, says the Festival's operating results were fairly represented.
The Auditor's report has been agendized for the October 19 City Council meeting -- the same meeting at which City Manager Jerry Miller has separately agendized a request that Councilmembers extend CVB's contract with City Hall to 2014 and increase City Hall's funding for CVB by roughly $200,000 in FY 05.
Some Council offices queried by LBReport.com at the start of business on The City Auditor's office provided a draft of its report to LBReport.com on Monday afternoon October 18, advising us via email, "We expect no material changes to this report prior to Mr. Burroughs presentation" at the October 19 Council meeting.
LBReport.com will provide further details on the Auditor's report when it is presented in final form by Auditor Burroughs at the October 19 Council meeting.
In September 2004, the City Manager budgeted, and the Council approved, giving CVB roughly $3.7 million from LB's hotel room tax. The City Manager has proposed raising City Hall's payment to CVB to roughly $3.9 million and extending CVB's current contract (which expires in 2007) to 2014.
The City Manager's October 19 agendizing memo states in pertinent part:
The proposed Second Amendment will include language requiring the LBACVB Board
members to file the California Fair Political Practices Commission’s Form 700
Statement of Economic Interest with the City. Additionally, LBACVB activities and
budget will be included in the City’s performance management efforts and in the
program-based budget development. Key outcome measures for contract performance
will be established as part of this process.
At the October 19, 2004 City Council meeting, the LBACVB will provide an in-depth
presentation outlining some highlights from FY 04, including the Long Beach Aquatic
Festival, which brought international attention to Long Beach, and what to look forward
to in FY 05. In FY 04, the LBACVB posted an estimated 5.5 percent increase in room
night bookings, adding to the over 24 percent increase achieved the previous fiscal
year. Building on this success, the City expects another strong year from the Long
Beach convention and tourism industry.
The proposed increase in funding is to capitalize on the incredible marketing and
promotional success resulting from the Long Beach Aquatic Festival and the other
investments in Long Beach, such as the Pike at Rainbow Harbor and Carnival Cruise
Lines, that help make this a desirable destination for conventions and tourists. The City,
through the agreement with the LBACVB, needs to continue to invest in this important
segment of our economy...
...A total of $3,729,000 is budgeted in the Special Advertising and Promotions Fund (SR
133) in the City Manager’s Office (CM). Although the proposed augmentation of
$201,366 is not budgeted, the City Manager’s Office will attempt to absorb this
additional expense within existing City appropriations... The City Manager is an ex officio (non-voting) member of CVB's governing board. LBReport.com has previously listed CVB's 2004-05 governing board members at: LB Convention & Visitors Bureau Boardmembers.
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