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UPDATE: Council Votes To Approve Joining L.A.'s Pitch For 2024 Olympics; No Disclosure Of Contract Terms, No Current Limit On Potential Costs And Council Asked To Set Aside Taxpayer Sums Annually For "Reserve" To Cover Potential Exposure


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UPDATE: As seen LIVE on Sept. 20, the City Council voted 8-0 (Mungo absent) to approve joining L.A>'s 2024 pitch for the Olympic Games. There were no disclosures by the Mayor or management of what Olympic events or what locations might be part of an LB role in 2024 Olympic games; Mayor Garcia said "LA2024" will decide that. No Councilmembers asked questions about potential costs, but several Councilmembers seek report on predicted "economic impact."
(Sept. 17, 2016, 8:05 a.m.) -- LB city management has added an item to the Sept. 20 Council agenda that asks the LB City Council to approve joining L.A.'s pitch for the 2024 Olympic Games.

The agendized item would authorize the City Manager, or designee, "to enter into an agreement with the LA 2024 Exploratory Committee to host a portion of the 2024 Olympic Games at the Long Beach Convention and Entertainment Center area, adjacent waterfront, and other possible areas throughout Long Beach."

[Scroll down for further.]


The agendized item doesn't disclose the proposed agreement's terms, doesn't propose a current limit on potential LB taxpayer costs but does include a management expectation that the Council will set aside LB taxpayer sums annually (that could otherwise provide city services) to create a "reserve" at some level not publicly indicated to cover potential exposures.

The city management agendizing memo says L.A.'s pitch includes the potential to bring some currently unspecified number and type of 2024 Olympic events to Long Beach. In terms of fiscal impact, management's memo states:

If Los Angeles is awarded the Olympic Games bid for 2024, the City of Long Beach may incur unknown staffing and venue costs associated with its participation. City staff will work with LA 2024 to pursue full cost recovery. If the City is expected to incur nonreimbursable costs, staff will return to the City Council at a later date for direction. It is envisioned that the City would establish a reserve fund, to which funds would be added over the next eight years to cover any costs not covered by LA 2024. If Los Angeles is selected to host the Olympic Games, it is anticipated that new jobs will be created, which are directly related to the venues chosen within the City of Long Beach.

The proposed action comes one week after LB Councilmembers voted to approve a FY17 budget that (despite a City Hall-sought, voter approved sales tax increase to 10%) didn't restore for taxpayers 95% of previously provided police officers and left three fire stations without fire engines. [LB's Mayor and Council have no announced plan to provide these restorations.] Council "closed session" agendas over the past few weeks indicate ongoing negotiations with city employee unions for new contracts, anticipated to include raises but with no public disclosure of the taxpayer costs in the Mayor/Council's publicly approved FY17 budget.

Long Beach served as a location for some Olympic events in the 1932 and 1984 Olympic Games.

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Below is city management's agendizing text on the Olympics item:

[City Manager agendizing memo text]

RECOMMENDATION:

Authorize the City Manager, or designee, to enter into an agreement with the LA 2024 Exploratory Committee to host a portion of the 2024 Olympic Games at the Long Beach Convention and Entertainment Center area, adjacent waterfront, and other possible areas throughout Long Beach. (Citywide)

DISCUSSION

The LA 2024 Exploratory Committee (LA 2024) is working on a bid to bring the 2024 Olympic Games to the Los Angeles area. The bid package will focus on several possible host cities throughout the Los Angeles region, highlighting each. Long Beach has been chosen as one of the locations to hold several sporting events. These events will potentially attract 500,000 or more visitors to the City, and will receive national and international media coverage. Long Beach has served as a location for the 1932 and 1984 Olympic Games, and has had significant success in hosting large scale events, and has the infrastructure, location and tourism industry in place to make the Olympic Games a success. In addition to the Olympic Games, LA 2024 would also use Long Beach to host Paralympic Games immediately following the Olympic Games.

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LA 2024 will create a transformative Olympic and Paralympic Games utilizing our City's ideal climate, its unparalleled culture of creativity and innovation, and its youthful energy to reimagine a New Games for a New Era. The bid will focus on existing venues, which allows for more focus on the athletes. The region's dependable year-round weather and clean air are ideal for Olympic and Paralympic sporting activities. LA 2024 requires that the City execute a venue use guarantee, which will guarantee the availability of certain City-owned venues for use in the Olympic Games. Major terms and conditions of the use of such venues shall be negotiated and evidenced by a future Venue Use Agreement, if Los Angeles is selected as host.

LA 2024 is required to submit their bid to the International Olympics Committee (I0C), in Doha, Qatar, by November 2016. It is expected that at that time LA 2024 will release the final list of proposed locations and specific events for each location, including the specific events for Long Beach. Final IOC host city selection will take place on September 13, 2017.

This matter was reviewed by Deputy City Attorney Richard Anthony on September 1, 2016 and by Assistant Finance Director Lea Eriksen on September 6,2016.

TIMING CONSIDERATIONS

City Council approval of the agreement is requested on September 20,2016, to be eligible for acceptance as part of the LA 2024 Olympic Games bid.

FISCAL IMPACT

If Los Angeles is awarded the Olympic Games bid for 2024, the City of Long Beach may incur unknown staffing and venue costs associated with its participation. City staff will work with LA 2024 to pursue full cost recovery. If the City is expected to incur nonreimbursable costs, staff will return to the City Council at a later date for direction. It is envisioned that the City would establish a reserve fund, to which funds would be added over the next eight years to cover any costs not covered by LA 2024. If Los Angeles is selected to host the Olympic Games, it is anticipated that new jobs will be created, which are directly related to the venues chosen within the City of Long Beach.

SUGGESTED ACTION:

Approve recommendation.

Patrick H. West, City Manager

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