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HomeMy WebLinkAboutApprove Modifications to the City's 2004-05 Budget, Adopt Re f Council/Agency Meeting Held: 01 Deferred/Continued to: A prov d Con 'ti nall A r ved Denied " leli Sig t e Council Meeting Date: 2/22/2005 Depart a ID Number: ED 05-03 CITY OF HUNTINGTON BEACH REQUEST FOR CITY COUNCIL/REDEVELOPMENT AGENCY ACTION © _ SUBMITTED TO: HONORABLE MAYOR/CHAIR AND CITY COUNCIL/REDEVELOPMENT MEMBERS co SUBMITTED BY: PENELOPE LBRETI{Y GRAFT, DPA, C TY A MINISTRATOR/, EXECUTIV DIRECTOR .c PREPARED BY: DAVID C. BIGGS, DIRECTOR OF ECONOMIC DEVELOPMENV DEPUTY EXECUTIVE DIRECTOR DAN VILLELLA, FINANCE OFFICER SUBJECT: RESOLUTION ELECTING TO REMIT HYATT REGENCY TRANSIENT OCCUPANCY TAXES TO CITY GENERAL FUND Statement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachments) Statement of Issue: Should the Redevelopment Agency's share of-transient occupancy taxes from the Hyatt Regency be remitted to the City's General Fund commencing as of the current fiscal year with the Redevelopment Agency's debt repayment to the General Fund reduced by the same amount? Funding Source: The recommended actions will not result in any reduction in Redevelopment Agency or City resources, but will reduce the amount of funds categorized as debt repayment which is part of the Agency's debt management strategy. Recommended Action: Motion To: City Council 1. Approve the following modifications to the City's 2004-05 Budget: ► Increase the amount of Transient Occupancy Tax revenue budgeted by $1,800,000; ► Decrease the Debt Payment Transfer In by $1,800,000. Redevelopment Agency 1. Adopt Resolution No.3s electing to remit to the City of Huntington Beach Transient Occupancy Tax Revenue for the Hyatt Regency Huntington Beach allocated to the Redevelopment Agency pursuant to Redevelopment Agency Ordinance No. 1 and 2; Res. No. 355 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss CITY OF,HUNTINGTON BEACH ) I, JOAN FLYNN, Clerk of the Redevelopment Agency of the City of Huntington Beach, California, DO HEREBY CERTIFY that the foregoing resolution was duly adopted by the Redevelopment Agency of the City of Huntington Beach at a regular meeting of said Redevelopment Agency held on the 22nd day of February 2005 and that it was so adopted by the following vote: AYES: Hansen, Coerper, Sullivan, Hardy, Green, Bohr, Cook NOES: None ABSENT: None ABSTAIN: None ClU of the Redevelo`P5'mEe61Agency of the City of Huntington Beach, CA Fiscal Impact Statement FF,AWTTACH" MENT 2 CITY OF HUNTINGTON BEACH 'L INTERDEPARTMENTAL COMMUNICA TION To: Penelope Culbreth-Graft, City Administrator From: Dan Villella, Finance Officer Subject: FIS 2005 — 6 Resolution Electing to Remit Hyatt TOT to City General Fund Date: January 25, 2005 As required by Resolution 4832, this Fiscal Impact Statement has been prepared for "Resolution Electing to Remit Hyatt TOT to City General Fund". The intent of this council action is financially neutral to both the Redevelopment Agency and the General Fund. If transient occupancy tax from the Hyatt Hotel exceeds $1 .8 million, the General Fund Balance will increase by the amount that the TOT exceeds $1 .8 million and the Redevelopment Agency Fund Balance will be reduced by a like amount. If the transient occupancy tax is less than $1 .8 million, the General Fund Balance will be reduced by the amount that the TOT is less than $1 .8 million and the Redevelopment Agency Fund Balance will be increased by a like amount. Dan Villella, Finance Officer R A ROUTING SH ET INITIATING DEPARTMENT: Economic Development SUBJECT: Resolution Electing to Remit Hyatt TOT to City General Fund COUNCIL MEETING DATE: February 22, 2005 RCA ATTACHMENTS STATUS Ordinance (w/exhibits & legislative draft if applicable) Attached ❑ Not Applicable Resolution (w/exhibits & legislative draft if applicable) Attached Not Applicable ❑ Tract Map, Location Map and/or other Exhibits Attached ❑ Not Applicable Attached ❑ Contract/Agreement (w/exhibits if applicable) Not Applicable (Signed in full by the City Attome Attached ❑ Subleases, Third Party Agreements, etc. Not Applicable (Approved as to form by City Attome Certificates of Insurance (Approved b the City Attorne Attached PP Y Y Y) Not Applicable Attached Fiscal Impact Statement (Unbudget, over $5,000) Not Applicable ❑ Attached ❑ Bonds (If applicable) Not Applicable Attached ❑ Staff Report (If applicable) Not Applicable Commission, Board or Committee Report If applicable) Attached ❑ P ( PP ) Not Ap licable Attached ❑ Findings/Conditions for Approval and/or Denial Not Applicable EXPLANATION FOR MISSING ATTACHMENTS REVIEWED RETURNED ..FORM., ED . Administrative Staff Assistant City Administrator Initial City Administrator Initial City Clerk ._ __.......... EXR ANATION FQR=RETURN; FIT M : Only)(Below Space For City Clerk's Use RCA Author: D. Biggs ext. 5900 REQUEST FOR ACTION MEETING DATE: 2/22/2005 DEPARTMENT ID NUMBER:ED 05-03 2. Approve the following modifications to the Redevelopment Agency 20 04-05 Budget: .11 ► Eliminate Transient Occupancy Tax revenue in the amount of$1,800,000; Decrease the debt repayment to the General Fund by $1,800,000 from $4,295,000 to $2,495,000. Alternative Action(s): Do not adopt the resolution remitting transient occupancy tax to the City and continue to the current level of debt repayment thereby accelerating debt repayment and reducing the ability of the Redevelopment Agency and City to maximize the benefit from the tax increment revenues permitted under the Redevelopment Plan. Analysis: On February 2, 2004, the City Council and Redevelopment Agency took a number of actions which made a series of recommended financial modifications. One of these items included the Redevelopment Agency adopting a resolution remitting the Agency's share of transient occupancy taxes from the Waterfront Hilton back to the City with a corresponding reduction in the annual debt repayment from the Redevelopment Agency to the City. These actions had arisen out of two study sessions conducted by the City Council and Redevelopment Agency on September 2, 2003, and December 15, 2003. The materials provided for the December 15, 2003, study session also identified that staff would be evaluating the option of returning the Redevelopment Agency's share of the Hyatt transient occupancy taxes back to the City as well. Since the Agency's share of the Hyatt's transient occupancy taxes are pledged to repayment of the Waterfront Developer Advance, it was also necessary for staff to consult with the developer of the Hyatt regarding the proposed TOT shift. The developer understands that the annual Developer Advance Payment will still be calculated using the amount of TOT generated, however, the Redevelopment Agency will make this payment in the future out of Agency tax increment and other general revenues. The developer is agreeable to the shift, and one additional provision has been added to the subject resolution to address any future concerns about the Agency's ability to make its payments to the developer being impaired by the shift. This provision is set forth in Section 3 and provides that the subject resolution can be rescinded at any time by the Agency, but such rescission shall not become effective until the first day of the fiscal year commencing after any such rescission. Environmental Status: N/A G:\David\RCAS\hyatttotshift.doc -2- 2/7/2005 2:54 PM REQUEST FOR ACTION MEETING DATE: 2/22/2005 DEPARTMENT ID NUMBER:ED 05-03 Attachmentils): City Clerk's . . - Number No. Description 1. Resolution No. 3 2. Fiscal Impact Statement. G:\David\RCAS\hyatttotshift.doc -3- 2/7/2005 10:54 AM (11) February 22, 2005 -Council/Agency Agenda - Page 11 E-7. (City Council) Approve Concept of Inflatable, Acoustic Shell for the Huntington Central Park Bandstand (160.40) —Approve the donation of a portable and inflatable acoustic shell at the Huntington Central Park Bandstand. Funds for said band shell are to be raised through a donation program spearheaded by the Rotary Club of Huntington Beach. Submitted by the Community Services Director. Funding Source: Not applicable. Mayor Pro Tem Sullivan asked for clarification on funding. Approved 7— 0 E-8. (City Council/Redevelopment Agency) Approve Modifications to the City's 2004- 05 Budget, Adopt Agency Resolution No. 355 Electing to Remit to the City Transient Occupancy Tax (TOT) Revenues for the Hyatt Regency Huntington Beach Allocated to the Redevelopment Agency and Approve Modifications to the Redevelopment Agency 2004-05 Budget (340.55) —City Council Action: 1. Approve the following modifications to the City's 2004-05 Budget: Increase the amount of Transient Occupancy Tax revenue budgeted by $1,800,000; and Decrease the Debt Payment Transfer In by $1,800,000. Redevelopment Agency Actions: 1. Adopt Agency Resolution No. 355- "A Resolution of the Redevelopment Agency of the City of Huntington Beach Electing to Remit to the City of Huntington Beach Transient Occupancy Tax Revenues for the Hyatt Regency Huntington Beach Allocated to the Redevelopment Agency Pursuant to Redevelopment Agency Ordinances Nos. 1 and 2,"and 2. Approve the following modifications to the Redevelopment Agency 2004-05 Budget: Eliminate Transient Occupancy Tax revenue in the amount of$4,808,0W 1,219,800; and Decrease the debt repayment to the General Fund by $1,800,000, from $4,295,000 to $2,495,000. Submitted by the Economic Development/Deputy Executive Director and the Finance Officer. Funding Source: The recommended actions will not result in any reduction in Redevelopment Agency or City resources, but will reduce the amount of funds categorized as debt repayment, which is . part of the Agency's debt management strategy. Mayor Pro Tem Sullivan clarified inclusion of Late Communication amendment with revised numbers. Adopted as amended 7— 0 E-9. (City Council) Approve Amendments to Agreements for Deferred Compensation Plans (ICMA Retirement Corporation and Nationwide Retirement Solutions) (600.10)— Approve the amendments to the Administrative Services Agreements with the ICMA Retirement Corporation for Plans numbered 107578 (401 a for City Administrator), 107694 (401 a for appointed Department Directors), 107695 (401 a for elected Department Directors) and 301516 (457 Deferred Compensation Plan). Submitted by Acting Assistant City Administrator. Funding Source: Not applicable. Approved 7— 0 E-10. (City Council) Adopt Resolution No. 2005-13 Requesting the Orange County Board of Supervisors to Designate All City of Huntington Beach Municipal Fire Stations as "Safe-Surrender". Sites for Newborns (510.10) —Adopt Resolution No. 2005-13— "A Resolution of the City Council of the City of Huntington Beach Requesting the Orange County Board of Supervisors to Designate All City of Huntington Beach Municipal Fire Stations as "Safe-Surrender Sites"for Newborns."Submitted by the Fire Chief. Funding Source:. None required. Mayor Pro Tem Sullivan highlighted concern for babies. Councilmember Green gave description of"Safe-Surrender Sites". Adopted 7— 0 CITY OF HUNTINGTON BEACH Interoffice Communication Economic Development Department ti c 0 0 TO: Honorable Mayor and Council Members - o co VIA: Penelope Culbreth-Graft, City Administrator/Executive Director N FROM: David C. Biggs, Director of Economic Development/Deputy ExecuUve Director DATE: February 18, 2005 SUBJECT: Agenda Item E-8: Hyatt Regency Transient Occupancy Taxes This request for City Council/Redevelopment Agency Action will result in the return of the Redevelopment Agency's share of the transient occupancy taxes from the Hyatt to the General Fund. One of the numbers used in the second recommended action for the Redevelopment Agency is incorrect. The amount of transient occupancy tax revenue included in the Redevelopment Agency's 2004/05 budget is $1,219,800 and not the $1,800,000 indicated. While the number in the budget is incorrect, it would be appropriate for the Redevelopment Agency to modify that figure when the motion is made for that portion to read: Eliminate Transient Occupancy Tax revenue in the amount of$1,219,800 There is no impact as a result of this change since the Agency's share of the transient occupancy taxes should have been budgeted at $1.8 Million and it is still anticipated that it will be that amount or greater. Please feel free to contact me if I can answer any questions. DCB 7-\Wm O aI a 0S _-��"'f�.-a..- r �� �� �� -� � , � ��r � %���(�� �� Resolution ATTACHMENT 1 RESOLUTION NO. 3 5 5 A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH ELECTING TO REMIT TO THE CITY OF HUNTINGTON BEACH TRANSIENT OCCUPANCY TAX REVENUES FOR THE HYATT REGENCY HUNTINGTON BEACH ALLOCATED TO THE REDEVELOPMENT AGENCY PURSUANT TO REDEVELOPMENT AGENCY ORDINANCE NOS. 1 AND 2 WHEREAS, California Revenue and Taxation Code Section 7280.5 permits the redevelopment agency of any city that has levied a transient occupancy tax pursuant to Section 7280 to adopt an ordinance levying a transient occupancy tax if the city's ordinance entitles any person subject to the tax under the city's ordinance to credit the amount of taxes due to the agency against the payment of taxes due under the city's ordinance; and The City Council of the City of Huntington Beach("City") has adopted a transient occupancy tax ordinance consistent with the provisions of Revenue and Taxation Code Sections 7280 and 2780.5; and The Redevelopment Agency of the City of Huntington Beach (the "Agency") adopted Ordinance Nos. 1 and 2 levying a transient occupancy tax pursuant to Revenue and Taxation Code Section 7280 applicable to the privilege of occupying a room or rooms in a hotel, inn, tourist home or house, motel, or other lodging located within the entire Main-Pier subarea of the Huntington Beach Redevelopment Project area; and The Agency has now determined that the transient occupancy taxes for the Hyatt Regency Huntington Beach, which is located within the Main-Pier Redevelopment subarea, are not required to enable the Agency to timely make payments to any developer pursuant to any outstanding Disposition and Development Agreements and/or Owner Participation Agreements by and between the Agency relating to redevelopment projects within the Main-Pier .Redevelopment subarea, as the same may be amended from time to time; Commencing fiscal year 2004/2005, the Agency desires to remit to the City the transient occupancy tax revenues collected on the occupancy of a room or rooms at the Hyatt Regency Huntington Beach allocated to the Agency pursuant to Agency Ordinance Nos. I and 2. NOW, THEREFORE, the Redevelopment Agency of the City of Huntington Beach does resolve as follows: SECTION 1. That the transient occupancy taxes applicable to the privilege of occupying a room or rooms at the Hyatt Regency Huntington Beach are not required to enable the Agency to timely make payments to any developer pursuant to any outstanding Disposition and Development Agreements and/or Owner Participation Agreements by and between the Agency relating to redevelopment projects within the Main-Pier Redevelopment subarea, as the same may be amended from time to time. g/05reso/rOT Agency-Hyatt 1 Resolution No. 355 SECTION 2. That the transient occupancy tax revenues collected on the occupancy of a room or rooms at the Hyatt Regency Huntington Beach and allocated to the Agency pursuant to Agency Ordinance.Nos. 1 and 2 shall be remitted to the City of Huntington Beach commencing in fiscal year 2004/2005 and shall continue to be remitted to the City of Huntington Beach until this Resolution is rescinded. SECTION 3. This Resolution may be rescinded at any time by the Agency but such rescission shall not become effective until the first day of the fiscal year commencing after any such rescission. PASSED AND ADOPTED by the Redevelopment Agency of the City of Huntington Beach at a regular meeting thereof held on the 22nd day of February 2005. e REVIEWED AND APPROVED: APPROVED AS TO FORM: E7 cutive Director Agency Attorney !(��fo5 INITIATED AND APPROVED: Director of Economic Development g/05resorrOT Agency-Hyatt 2