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26 (02) 100 S. Anaheim Blvd., Suite 345A, Anaheim, CA 92805 T (714) 758-0222 AnaheimChamber.org October 28, 2025 The Honorable Anaheim City Council 200 South Anaheim Boulevard, 7th Floor Anaheim, California 92805 RE: Agenda Item 26 – Public Meeting on Proposed Modifications to the Anaheim Tourism Improvement District (ATID) Pursuant to the Resolution of Intention Dear Mayor Aitken, Mayor Pro Tem Meeks, and Members of the City Council: On behalf of the Anaheim Chamber of Commerce, I write in regard to the proposed modifications to the Anaheim Tourism Improvement District (ATID) ordinance and management plan. Double-Billing for Transportation Services We urge that there be a prohibition against assessed facilities being required to make duplicate transportation payments/assessments for the same service or circulation system. Transportation Component Funds should not be used to offset or replace existing private or contractual mitigation requirements under any development agreement, conditional use permit, or traffic mitigation measure nor should they be used to impose or continue duplicative obligations on assessed payees. Hotels or developments that have previously satisfied circulation or parking mitigation requirements through private payment, in-lieu fees, or direct service provision should be deemed to have met their obligation for equivalent transportation benefit under the ATID and should not be charged twice through assessment participation. This ensures the ATID Transportation Fund remains a public benefit mechanism, not a revenue replacement vehicle for prior private agreements, and would fulfill the intent of AB 2097 (California Government Code §65863.2) regarding parking or mitigation mandates. These hotels and developments should not be penalized for having simply moved swiftly to reach agreements with the City prior to the January 1, 2023, effective date of AB 2097. Accordingly, we propose that the following be added to the Anaheim Municipal Code as §2.14.110.030: Transportation Component Funds shall not be used to subsidize or duplicate transportation services for which any Assessed Facility is already obligated to pay under a development agreement, mitigation measure, or private service contract, Anaheim City Council October 28, 2025 Page 2 of 4 including those entered into prior to the adoption of Section 65863.2 of the California Government Code. Such duplication constitutes an impermissible double assessment. We propose that the following be added to Management Plan Section 014 under the “Transportation Activities, Improvements Services and Programs” portion: Transportation Component Funds may not fund ongoing operational costs of any transit operator except for defined public circulation routes serving Assessed Facilities and visitor destinations. Assessed Facilities with pre-existing circulation or mitigation payment obligations shall not be charged duplicatively under this Plan. We propose that the following be added to Management Plan Section 016 under the “Allocation” portion: Transportation Component expenditures shall expressly exclude any project or service for which an Assessed Facility is obligated to pay under a development agreement or mitigation program established prior to the adoption of Section 65863.2 of the California Government Code. We further propose that our proposed Municipal Code §2.14.110.030 be incorporated into Management Plan Section 021 under the “Transportation Component” portion. Double-Billing for Marketing Services Visit Anaheim is engaging in a practice of double-billing the hotels in the ATID. Marketing and promotion services are required to be provided for the ATID. However, Visit Anaheim charges member dues to ATID assessment payers to provide similar services. Hotels that do not pay the member dues are not receiving those services despite paying the ATID assessment. The City should not permit Visit Anaheim to collect private funds to provide services that it already receives for public funding for. Of note, the modifications to the ATID management plan would have Visit Anaheim provide “Advertising and marketing programs supporting the Anaheim Convention Center and Assessed Facilities” and “International and national promotion of tourism, the Assessed Facilities, the Anaheim Convention Center…” The modifications to the ordinance adds to the list of ATID activities to include: “Other activities, services and programs provided for the purpose of conferring specific benefit upon Assessed Facilities located in the district.” These amendments to the ordinance and management plan need to require that these services must be provided to ATID payees fairly without regard to whether the payees are paying private member dues to the contracting entity, and/or require that if ATID payees pay private member dues to the contracting entity, then the contracting entity must provide those dues payers specific services that are not already paid for by ATID funds. We propose that the following be added to the Anaheim Municipal Code as §2.14.110.020: Anaheim City Council October 28, 2025 Page 3 of 4 If the Contracting Entity is organized as a nonprofit membership corporation under Section 501(c)(6) of the Internal Revenue Code, all Assessed Facilities paying the assessment shall be considered members in good standing for the term of the assessment. The Contracting Entity shall not charge additional dues, sponsorship fees, membership or participation fees, or access payments for activities, services, or programs funded by the assessment. We further propose that our proposed Municipal Code §2.14.110.020 be incorporated into Management Plan Section 021 under the “Marketing Component” portion. Brown Act and ATID Expenditures We applaud that the management plan modifications create the Housing Committee that will provide recommendations to the City Manager to develop the annual budget of the Housing Component ATID funds for approval by the City Council. We note that the management plan currently has the Transportation Committee approving the annual Transportation Component Funds budget. The management plan designates the City Manager to administer the Transportation Component Funds, and the proposed modifications would similarly designate the City Manager to administer the Housing Component Funds. However, uniquely among the three component funds, the City Manager does not administer the Marketing Component Funds, and no Brown Act body is required to approve the annual budget of the Marketing Component Funds. The ATID Advisory Board (on marketing component funds) has less responsibilities and oversight than either the Transportation Committee or Housing Committee despite the fact that the marketing component is the only one of the three component funds that are not administered by the City. We would urge the City Council to adopt a standard for oversight and approval of the expenditure of ATID Marketing Component Funds that is at least equal to that of the Transportation and Housing Components, rather than the lower standard currently proposed in the modifications to the management plan. The Transportation Committee approves the annual Transportation Component Funds budget in a noticed public meeting under the Brown Act. The City Council approves the annual Housing Component Funds budget in a noticed public meeting under the Brown Act. The management plan ought to require that the Marketing Component Funds be approved in a noticed public meeting under the Brown Act. We propose that the following be added to the Anaheim Municipal Code as §2.14.050.025: The management plan shall include provisions for open public oversight of expenditures and shall require that all component fund budgets be subject to City Council approval at a properly noticed public meeting in accordance with the requirements of Section 54954.6 of the Ralph M. Brown Act (California Government Code Sections 54950-54963). Anaheim City Council October 28, 2025 Page 4 of 4 Public Records Act In the past, many people operated under the theory that the ATID assessment were not public funds. As such, ATID-related records were not considered in the context of the California Public Records Act. It is important to remind Visit Anaheim that the ATID assessment funds are public funds and therefore ATID-related records are subject to the California Public Records Act, and as such, Visit Anaheim is responsible for both records retention and prompt disclosure of records to any person requesting such records related to ATID. Conclusion We urge the City Council to take these above matters into account when approving the modifications to the ATID ordinance and management plan. This is the opportunity to ensure proper responsibility, oversight, and transparency with these public funds. Sincerely, Dara Maleki President and Chief Executive Officer