HomeMy WebLinkAbout23 - Visit Newport Beach, Inc. Fiscal Year 2023-24 Budget SupplementalQ �EwPpRT
CITY OF
s NEWPORT BEACH
`q44:09 City Council Staff Report
August 22, 2023
Agenda Item No. 23
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Tara Finnigan, Assistant City Manager - 949-644-3001,
tinnigan@newportbeachca.gov
PREPARED BY: Melanie Franceschini, Management Analyst
mfranceschini@newportbeachca.gov
PHONE: 949-644-3028
TITLE: Visit Newport Beach, Inc. Fiscal Year 2023-24 Budget
Supplemental
ABSTRACT:
At the July 25, 2023 City Council meeting, the City Council asked that Visit Newport
Beach, Inc., a business unit of Newport Beach & Company, provide additional information
related to the personnel costs referenced in its FY 2023-24 budget.
RECOMMENDATIONS:
a) Determine this action is exempt from the California Environmental Quality Act (CEQA)
pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because
this action will not result in a physical change to the environment, directly or indirectly;
and
b) Receive and file.
DISCUSSION:
At the July 25, 2023 City Council meeting, Visit Newport Beach, Inc., a business unit of
Newport Beach & Company, submitted its FY 2023-24 budget for the City Council's
review. Mayor Pro Tern Will O'Neill requested Newport Beach & Company provide
additional information regarding the annual budget. The request included a detailed
breakdown of its personnel costs, formatted to the likeness of the City's personnel cost
breakdown in its annual budget.
Staff contacted Newport Beach & Company to request the supplemental budget
information. In response, Newport Beach & Company provided the City of Newport Beach
with a letter (Attachment A) dated August 11, 2023, explaining that its Board of Directors
determined the organization could not fulfill the City's request due to employee privacy
concerns.
FISCAL IMPACT:
There is no fiscal impact related to this item.
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Visit Newport Beach, Inc. Fiscal Year 2023-24 Budget Supplemental
August 22, 2023
Page 2
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this action is not subject to the California
Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not
result in a direct or reasonably foreseeable indirect physical change in the environment)
and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA
Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no
potential for resulting in physical change to the environment, directly or indirectly.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of
the meeting at which the City Council considers the item).
ATTACHMENT:
Attachment A — Letter
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ATTACHMENT A
E
ILL' W PORT
BEACIA
& COMPANY
August 11, 2023
Tara Finnigan, Assistant City Manager
City of Newport Beach
100 Civic Center Drive
Newport Beach, CA 92660
tfinniganknewportbeachca. gov
RE: Newport Beach and Company's Response to City of Newport Beach's Inquiry
Dear Ms. Finnigan:
Newport Beach and Company values its long-standing contractual relationships with the City
of Newport Beach (City), and we pride ourselves on working collaboratively with the City
and our community partners to create and execute marketing plans that strengthen the
Newport Beach brand. Our Board of Directors (Board) recently discussed the City's request
for access to our organization's private employee files, and respectfully we are unable to
acquiesce to this request.
As you know, Newport Beach and Company is a private, non-profit organization that is
operated under the supervision, and at the direction, of our professional and dedicated Board.
We are not presently, nor have we ever been, an arm of City government. In fact, our
agreement(s) with the City clearly state the City retains Newport Beach and Company "on
an independent contractor basis and [Newport Beach and Company], its board members and
staff are not an agent or employee of the City." Our dedicated employees are in the private
sector and our employees are not enrolled in any government retirement programs like
Ca1PERS. Employee compensation is established by the Board to be competitive within the
private destination marketing and tourism industry. Furthermore, our finances are audited
annually, and a report is prepared and given to the City, which includes information on
overall compensation provided within our organization.
Our employees, like any private sector employees, value their privacy and we are sure that
you can appreciate the Board's reluctance to violate this trust by sharing confidential salary
information with the City or anyone else. We know that the City contracts with a number of
other private organizations, and we are not aware of a similar request for salary disclosure
with the other privately contracted organizations. Our Board only seeks to be treated fairly
and similarly to other private organizations that contract with the City. 23-3
Our Board remains committed to fulfilling our organization's role as a creative and focused
community -marketing agency that is singularly committed to telling the integrated Newport
Beach brand story.
Sincerely,
4� -
Gary Sherwin
President and CEO
cc: Debbie Snavely, Chairperson
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