OFFICE OF THE CITY AUDITOR
Roland E. Smith, CPA
City Auditor

October 21, 2003

TO: President De La Fuente and Members of the City Council

SUBJECT: REPORT ON FY2002-03 PERFORMANCE OF THE OAKLAND CONVENTION & VISITORS BUREAU (OCVB) AND RESOLUTION AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND EXECUTE A TWO-YEAR PROFESSIONAL SERVICES AGREEMENT WITH THE OAKLAND CONVENTION AND VISITORS BUREAU TO PROVIDE VISITOR MARKETING SERVICES IN AN AMOUNT NOT TO EXCEED $900,000 FOR FISCAL YEAR 2003-04 AND NOT TO EXCEED $650,000 FOR FISCAL TEAYAEAR 2004-05 AND TO PAY OCVB UP TO FIFTY PERCENT OF THE AMOUNT OF THE CITY'S TRANSIENT OCCUPANCY TAX THAT EXCEEDS $10,262,773 EACH FISCAL YEAR.

SUMMARY

The Measure H Charter Amendment, which was passed by the voters at the General election of November 5, 1996, requires the City Auditor to prepare impartial financial analyses of proposed major expenditures prior to their approval. The City of Oakland Administrative Instruction Number 137, which was effective May 21, 1997, instructs agencies to submit draft reports on proposed expenditures of $250,000 or more to the City Auditor at least one week before the final reports are due to the City Manager. Final reports are currently due to the City Manager 19 days before the City Council meeting date, and therefore we must receive draft reports at least 26 days before the City Council meeting date.

Although the draft report was due to us no later than September 25th, we did not receive it until September 29th. Since our Office lost one of its six positions through Council mandate, we are unable to accommodate last-minute submissions.

CONCLUSIONS AND RECOMMENDATIONS

Since we did not receive the draft report in time for us to make an impartial financial analysis, we have drawn no conclusions and make no recommendations regarding the Proposed Resolution.

Submitted by:

Jack McGinity, CPA

Issued by:

Roland E. Smith, CPA
City Auditor

Report completion date:
October 3, 2003