Report 2023-133 Recommendation 7 Responses

Report 2023-133: City of Anaheim: It Has Not Properly Managed Tourism-Related Contracts and Millions of Dollars in Related Funds (Release Date: January 2024)

Recommendation #7 To: Anaheim, City of

To improve Anaheim's oversight of the tourism district assessment contract with Visit Anaheim, the city should by January 2025 seek to renegotiate with Visit Anaheim to revise the contract to ensure that the contract does the following:

-Requires Visit Anaheim to develop a plan for oversight of any subcontractor and provide documentation of this oversight annually to the city.

Annual Follow-Up Agency Response From January 2026

An amended and restated agreement was approved by the City Council on May 13, 2025 and went into effect on June 13, 2025. This recommendation is addressed in Section 10 which requires that Visit Anaheim monitor subcontractors in accordance with the newly added "Contractor Policy" attached to the Agreement as Attachment B. Section 10 also requires Visit Anaheim to provide annual documentation showing that it is monitoring its subcontractors as suggested in the State Audit.

California State Auditor's Assessment of Annual Follow-Up Status: Fully Implemented

The City of Anaheim has fully implemented the recommendation by including in its revised contract with Visit Anaheim a provision that requires Visit Anaheim to monitor the progress of work of its subcontractors and to make documentation of its monitoring available to the city.

1-Year Agency Response

An amended and restated agreement is currently being negotiated between the City and Visit Anaheim to implement the State recommended contractual reporting requirements and metrics into the amended and restated agreement, including a Subcontractor Policy.

California State Auditor's Assessment of 1-Year Status: Pending

6-Month Agency Response

This will need to be an administrative regulation adopted by the Visit Anaheim Board. An amended and restated agreement is being discussed between the City and Visit Anaheim to require a plan for oversight of subcontractors and to provide documentation on this oversight annually to the City.

California State Auditor's Assessment of 6-Month Status: Pending

60-Day Agency Response

This will need to be an administrative regulation adopted by the Visit Anaheim Board. The City will further engage with Visit Anaheim to require a plan for oversight of subcontractors and to provide documentation on this oversight to the City into the operating agreement by January 2025.

California State Auditor's Assessment of 60-Day Status: Pending

All Recommendations in 2023-133

Agency responses received are posted verbatim.