HomeMy WebLinkAboutMINUTES - 01102006 - C.80 S
TO: BOARD OF SUPERVISORS -sE L ° Ontra
Costa
FROM: JOHN SWEETEN, a.
Count Administrator 4�
County o u n tV
srA,couN'i't
DATE: January 10, 2006
SUBJECT: Final Report on the Dissolution of the Contra Costa Convention and
Visitors Bureau
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
RECOMMENDATION:
RECEIVE report on the dissolution of the Contra Costa Convention and Visitors Bureau.
FISCAL IMPACT: The County received and deposited a check in the amount of$2,892 of the
balance of funds from the Contra Costa Convention and Visitors Bureau dissolution.
BACKGROUND:
The Contra Costa Convention and Visitors Bureau was a nonprofit mutual benefit corporation
organized January 1, 1984. The Bureau's main function was to promote the local area as a desirable
destination for tourists, conventions, conferences and seminars. For this purpose, it received funds
from the City of Concord and Contra Costa County, who derived transient occupancy tax and sales
revenue from the hotels represented by the Bureau, and whose combined contributions,represented
the Bureau's primary source of income.
On July 29, 2004, the Board of Directors of the Contra Costa Convention and Visitors Bureau was
informed that the City of Concord would no longer provide financial support to the Bureau. Prior to
this meeting, the County had informed the Bureau that it would reduce its financial support for FY
2004-05 by an additional $100,000. Under these financial conditions, the Bureau could not continue
to operate. The Board of Directors, therefore, took action to cease operations effective August 31,
2004.
CONTINUED ON ATTACHMENT: YES SIGNATURE:
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE-
APPROVE OTHER
SIGNATURE(S)'
ACTION OF BOARD ON t / I p APPROVED AS RECOMMENDED >e, _ OTHER
7
VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE AND CORRECT
COPY OF AN ACTION TAKEN AND ENTERED ON MINUTES OF
UNANIMOUS(ABSENT
THE BOARD OF SUPERVISORS ON THE DATE SHOWN.
� )
AYES: NOES:
ABSENT: ABSTAIN:
Contact:
L. DeLaney-5-1097
Cc: ATTESTED
County Counsel JOHN SWEE N1TE CLERK OF THE BOARD OFSUPERVISORS
BY: DEPUTY
CCCVB Dissolution Final Report—page 2
At the end of the 2003-2004 fiscal year, the total fund balance for the Bureau was $252,011. On
August 27, 2004, the cash remaining, after the payment of the severance package and final salary
expenses was $80,192.80. However, several outstanding expenses remained: the office lease,
various equipment leases (copy machine, phone system, postage meter), final auditing services,
additional legal services, and records storage. After the lease terminations were arranged, final audit
and legal service invoices paid, and a contract for records storage was obtained, $6,519 remained as
a balance in the Bureau's checking account.
In terms of distributing the final remaining funds, the Bylaws provided that the assets be disposed of
by a distribution to the governmental entities that contributed to the Bureau based on an average of
the last three years of contributions received immediately preceding the dissolution. The calculation of
contributions was based on an audited statement paid by the Bureau, as follows:
FY 03-04 FY 0243 FY 01-02 Total
County $228,219 $253,577 $198,390 $680,186 44.37%
City $282,949 $274,708 $295,1712 $852,829 55.63%
totall $511,168 1 $528,285 1 $493,562 1 $1,533,015
At this time, all assets have been disposed of and the final cash distributions have been made to the
County and the City of Concord. The disbursement of the funds zeroes out the balance in the
checking account. Records of the CCCVB will be retained by the Napa Valley Wine Train (a member
of the CCCVB) until December 2011 per a contractual agreement. Final dissolution papers have
been filed with the Secretary of State. State and Federal income tax forms have been filed and all
taxes ($10 to State and $0 to Federal government) have been paid. The final audit has been
prepared and is attached.
The Auditor-Controller received and reviewed the final audit, stating: "We have reviewed the audited
financial reports prior to the close-out of the Contra Costa Convention and Visitors Bureau and its
calculation for the distribution of residual funds. The auditors expressed "clean" opinions on the
Bureau's financial reports, and the calculation of the distribution of the residual funds appears to be
appropriate."
November 23,.2005
Mr. John Sweeten, County Administrator
Contra Costa County
651 Pine Street, 11'b Floor
Martinez,CA 94553
Reference: Final Audit Report
Contra Costa Convention&Visitors Bureau
Dear Mr. Sweeten:
The dissolution of the Contra Costa Convention&Visitors Bureau has been a long
arduous process. However,we have reached a point where all the outstanding bills have
been paid and the final income tax filings have been submitted.
The final Audit Report is enclosed for your review. In accordance with the Bylaws,the
remaining assets shall be disposed of by a distribution to the governmental entities that
contributed to the Bureau based on the last three years contributions. The contributions
for both entities are listed below:
2001-02 2002-03 2003-14 Total
Concord $295,172 $274,708 $282,949 $ 852,829 55.63%
Contra Costa $198,390 $253,577 $228,219 $ 680,186 44.37%
Total $4931562 $528,285 $511,168 $ 1,533,015
There is presently a balance in the checking account for$6,519. Based on the formula,
Contra Costa County gets 44.37%of the balance for$2,892. A check for that amount is
enclosed. The disbursement of these fiords zeroes the balance in the checking account.
There are no other assets in the organization.
Thank you for your past courtesies as well as your support of the Bureau.
Sincerely,
7
449
y.
Alex Ozuna
Chairman of the Board
Contra Costa Convention&Visitors Bureau
1845 Leo Lane
Concord,CA 94521