File #: 19-1071    Version: 1 Name:
Type: Informational Report Status: Passed
File created: 7/10/2019 In control: County Administrative Office
On agenda: 9/10/2019 Final action: 9/10/2019
Title: Transient Occupancy Tax Agreement with Redwood Region Entertainment and Education Liaisons, Inc.
Attachments: 1. Staff Report, 2. RREEL-Film Commission Professional Services Agreement - FINAL - je rev 7-31-19.pdf, 3. Executed RREEL-Film Commission Professional Services Agreement
Previous Action/Referral: 23-160

 

To:                                                               Board of Supervisors

 

From:                                          County Administrative Office                                          

 

Agenda Section:                     Consent                                                               

 

SUBJECT:

title

Transient Occupancy Tax Agreement with Redwood Region Entertainment and Education Liaisons, Inc.

end

 

RECOMMENDATION(S):

Recommendation

That the Board of Supervisors:

1.                     Approve the attached Agreement with the Redwood Region Entertainment and Education Liaisons, Inc. (RREEL) and authorize the Chair to sign two (2) copies; and

2.                     Direct the Clerk of the Board to return the two (2) signed agreements to the Economic Development Division.

 

Body

SOURCE OF FUNDING                     

General Fund - Transient Occupancy Tax

 

DISCUSSION:

The county receives transient occupancy tax (TOT) based on room night charges for stays in hotels in the unincorporated areas of the county.  Unlike other taxes which are paid primarily by local residents, TOT is generated mostly from visitors to the area.  For this reason, the county has historically devoted a portion of the TOT proceeds to support outside agencies that promote the county and increase TOT receipts.

 

From 2005 through 2009, the Humboldt County Convention and Visitor’s Bureau (HCCVB) was the exclusive entity which received county TOT funds for promotional purposes.  HCCVB then passed a portion of those funds on to other entities, including the chambers of commerce that support “gateway” information booths, as well as the Film Commission.

 

In 2009, your Board entered into two agreements, one with RREEL to provide TOT funding in exchange for promotion of the local film and digital media industry, and a separate one with HCCVB for general tourism promotion and passthrough to gateways.  Based on analysis of historical passthrough funds from HCCVB, it was determined HCCBV would receive sixteen percent (16%) of prior year TOT collections, and RREEL would receive 4 percent (4%).

 

In 2013, your Board approved a new agreement with RREEL and increased RREEL’s funding from the TOT to five percent (5%).   That agreement was extended in 2017 to expire on June 30, 2019.   Due to delays in obtaining necessary signatures, this agreement is late in coming before your Board.   Therefore, it is respectfully requested your Board approve the agreement to become effective retroactively to July 1, 2019.    The terms of this agreement remain consistent with the prior agreement.

 

As part of the fiscal year 2017-18 budget, your Board allocated an additional $20,000 in one-time funding to RREEL to promote the various resources and advantages of Humboldt County through programs of film and video production and promotion. As part of the fiscal year 2018-19 budget, your Board approved this allocation on an ongoing basis.

 

FINANCIAL IMPACT:

The cost to the General Fund for fiscal year 2019-2020 is $121,342.  This amount was included in the adopted budget for budget unit 1100-181 - Economic Development and Promotion.

 

STRATEGIC FRAMEWORK:

This action supports your Board’s Strategic Framework by managing our resources to ensure sustainability of services .

 

OTHER AGENCY INVOLVEMENT:                     

Redwood Region Entertainment and Education Liaisons, Inc.

 

ALTERNATIVES TO STAFF RECOMMENDATIONS:                     

Your Board could decide not to approve this agreement.   However, that option is not recommended as RREEL’s activities have positively impacted Humboldt County’s economy.

 

ATTACHMENTS:                     

Agreement with RREEL

 

PREVIOUS ACTION/REFERRAL:

Board Order No.: C-13                     

Meeting of: October 24, 2017

File No.: N/A