City Council
MEETING DATE: 5/27/2015
TITLE:
Title
Greater Palm Springs Convention & Visitors Bureau Joint Powers Authority
End
FROM:
Charlie McClendon, City Manager
RECOMMENDATION:
Recommendation
Staff recommends that the City Council adopt a resolution approving the Greater Palm Springs Convention& Visitors Bureau Joint Powers Authority.
Body
BACKGROUND:
The Palm Springs Desert Resort Communities Convention and Visitors Authority, now known as the "Greater Palm Springs Convention & Visitors Bureau" or "CVB" is a joint powers authority operating under the Joint Exercise of Powers Act (California Government Code ยงยง6500 et seq.) The CVB was formed in 1989. The operative legal document governing the CVB as a joint powers authority is the Joint Powers Agreement, originally executed in 1989 and subsequently amended on multiple occasions, most recently on or about June 18, 2002 ("2002 Agreement"). In order to remain current with applicable law and to maximize the CVB's ability to encourage, promote, and enhance all aspects of the hospitality, convention and tourism industry throughout all parts of the Coachella Valley, to the benefit of the member organizations and their citizens, the CVB's Executive Committee has approved the attached Amended and Restated Joint Powers Agreement ("Amended Agreement").
The Amended Agreement reflects current law and makes changes to the 2002 Agreement as recommended by the Hospitality Industry and Business Council (now known as the Board of Directors), the CVB's CEO/President and the CVB's General Legal Counsel. The draft of the Amended Agreement was circulated for review and input to members of the Technical Advisory Committee ("TAC") which consists of all the CVB members' city managers and an executive officer of the County. Several meetings were also held with several CVB members' staff members for their respective input. After extensive review and input from all interested parties, the attached draft was presented to the CVB Executive Committee for its consideration and was adopted and approved by the CVB Executive Committee on March 20, 2015.
The amended agreement was presented at study session on May 13, 2015.
DISCUSSION:
The Amended Agreement contains the following key provisions and modifications from the previous version of its JPA Agreement:
The Amended Agreement contains a "Recitals" section, which was not included in the 2002 Agreement. Recitals are generally used for amended and restated agreements such as this in order to describe the background of the agreement and the intent of the parties in entering into the agreement. The recitals here state the members of the CVB and their intent that the Amended Agreement shall amend, restate, and supersede the prior agreement in its entirety. The Amended Agreement also contains a revised "Definitions" section in order to properly facilitate the operation of its substantive provisions.
The official name of the CVB is now the "Greater Palm Springs Convention & Visitor Bureau, rather than the "Palm Springs Desert Resort Communities Convention and Visitors Authority" as stated in the 2002 Agreement.
The stated purpose of the CVB is to form a joint powers authority to jointly encourage, promote, and to do such other things as might be necessary to enhance, to the greatest extent possible, all aspects of the hospitality, convention and tourism industry in the Coachella Valley, and to attract visitors from markets, all to the benefit of the member organizations and their citizens. This provision is unchanged from the 2002 Agreement.
The members of the CVB are Cathedral City, Desert Hot Springs, Indian Wells, Indio, La Quinta, Palm Desert, Palm Springs, Rancho Mirage and the County of Riverside. Additional members may be added by two-thirds vote of the Executive Committee which must be approved by a unanimous vote of the CVB members' legislative bodies. The members remain unchanged.
The governing body of the CVB is the Executive Committee, which is comprised of an elected official for each city member of the CVB and a County Senior Staff member appointed by the Riverside County Board of Supervisors to represent the County of Riverside. This provision remains unchanged, but the Amended Agreement expressly provides that only those members of the Executive Committee whose agencies pay the CVB its member contributions shall be entitled to vote.
The Amended Agreement sets forth a more detailed yet non-exhaustive list of the powers that the Executive Committee possesses pursuant to state law; the powers are similar to those stated in the 2002 Agreement, but also include the power to select staff members other than city managers to serve on the appointed technical advisory committee, and the power to retain legal counsel.
The Amended Agreement sets forth the territorial boundaries of the CVB, which remain unchanged from the 2002 Agreement. However, the Amended Agreement also includes a map of the boundaries attached as Exhibit A to the Amended Agreement. The boundaries may be changed by two-thirds vote of the Executive Committee which must be approved by a unanimous vote of the CVB members' legislative bodies.
The Amended Agreement sets forth the precise formula for calculating members' contributions, specifically 0.15% gross room rental revenue for "Non-Convention Hotels" and 0.35% of gross room rental revenue for "Convention Hotels." The formula may be changed by two-thirds vote of the Executive Committee which must be approved by a unanimous vote of the CVB members' legislative bodies. The 2002 Agreement addressed contributions in an exhibit rather than in the agreement itself.
The Amended Agreement maintains the conditions imposed upon members who wish to withdraw from the CVB largely intact, but does away with the requirement of thirteen months' notice of withdrawal as provided in the 2002 Agreement.
The Amended Agreement sets forth a detailed, non-exhaustive list of the powers that the CVB possesses as a joint powers authority pursuant to state law. The list includes all of the powers specified in the 2002 Agreement and also includes several others, such as the power to engage independent contractors and legal counsel; to acquire and dispose of real or personal property; to raise revenue for any public purpose that is consistent with the CVB's purpose; to form, renew and modify improvement districts such as the CVB's Tourism Marketing District; to form a non-profit corporation or other affiliated non-profit entities; to adopt and enforce rules, regulations, resolutions and ordinances to carry out the CVB's purposes; and to invest money from its treasury that is not required for immediate necessities.
The CVB's President/CEO, Finance Director and Treasurer are required by state law to file an official bond in an amount determined by the Executive Committee. The Amended Agreement sets forth this requirement expressly, whereas the 2002 Agreement did not.
Without change from the 2002 Agreement, the Amended Agreement provides that the Executive Committee shall designate a treasurer and auditor.
The Amended Agreement enumerates the Treasurer's duties, which are substantively similar to those duties enumerated in the 2002 Agreement. However, the Amended Agreement reflects the updated state law requirements.
The Amended Agreement, like the 2002 Agreement, requires the Treasurer to arrange for independent audits, but the Amended Agreement refers to current state law on this issue. There is no substantive change in the enumerated duties of the auditor between the Amended Agreement and the 2002 Agreement.
The Amended Agreement, like the 2002 Agreement, provides for California law as the law applicable to the agreement and for the County of Riverside to be the venue for any lawsuit arising out of the agreement.
FISCAL IMPACT:
There will be no fiscal impact in the City since the contributions formulas have not changed.
ATTACHMENTS:
Amended and Restated Joint Powers Agreement
Resolution