CC Staff Rpt 2015-09-15 - JPA Amendment 1CONSENT CALENDAR ITEM NO.
City of La Qu i nta
CITY COUNCIL MEETING: September 15, 2015
STAFF REPORT
AGENDA TITLE- ADOPT A RESOLUTION APPROVING AN AMENDED AND RESTATED
CONVENTION AND VISITORS BUREAU JOINT POWERS AGREEMENT
RECOMMENDATION
Adopt a resolution approving the Greater Palm Springs Convention & Visitors Bureau
amended and restated joint powers agreement.
EXECUTIVE SUMMARY
• The Greater Palm Springs Convention & Visitors Bureau (CVB) is a joint powers
authority operating under the Joint Exercise of Powers Act.
• The CVB promotes and enhances the hospitality, convention, and tourism industry
in the Coachella Valley to the benefit of the member organizations and their
residents.
• The amended agreement reflects current law and updates the 2002 agreement.
FISCAL IMPAC
There is no additional impact as the contribution formulas remain unchanged. The
current contribution formula is equal to .0015 x gross room rental revenue for non -
convention hotels, and .0035 x gross room rental revenue for convention hotels.
BACKGROUND/ANALYSIS
The CVB was formed in 1989 to promote and enhance the hospitality, convention, and
tourism industry in the Coachella Valley. The operative legal governing document is the
Joint Powers Agreement, originally executed in 1989 and subsequently amended on
multiple occasions, most recently on or about June 18, 2002. In order to incorporate
current law and maximize CVB's ability to service its member organizations, the CVB's
Executive Committee has approved the attached Amended and Restated Joint Powers
Agreement (Exhibit A to the Resolution).
The Amended Agreement reflects current law and is modified as follows:
1. Adds a "Recitals" section, which was not part of the 2002 Agreement. Recitals are
generally used for amended and restated agreements to describe the reason for the
agreement and the intent of the parties in entering into the agreement. These recitals
state that the Amended Agreement amends, restates, and supersedes the prior
agreement in its entirety. Revised "Definitions" are included to properly facilitate the
operation of its substantive provisions.
2. The Amended Agreement designates the official name of the CVB, "Greater Palm
Springs Convention & Visitor Bureau, rather than the "Palm Springs Desert Resort
Communities Convention and Visitors Authority".
3. The CVB's governing body is the Executive Committee, which is comprised of an
elected official from each city member and a Riverside County senior staff member.
These provisions remain unchanged, but the Amended Agreement expressly provides
that Executive Committee members whose agencies pay CVB dues shall be entitled to
vote.
4. 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 include the authority to select staff
members other than city managers to serve on the appointed technical advisory
committee, and the power to retain legal counsel.
5. The Amended Agreement sets forth the territorial boundaries of the CVB, which
remain unchanged from the 2002 Agreement, but a map of the boundaries is now
attached as Exhibit A. 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.
6. 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.
7. 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.
8. 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 ability 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.
9. 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.
10. 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 draft of the Amended Agreement was circulated for review and input to members of
the Technical Advisory Committee that consists of all the CVB members' city managers
and the County Executive Officer. Meetings were also held with CVB member staff. This
extensive review and input generated the Amended Agreement, which was adopted by
the CVB Executive Committee on March 20, 2015. The Amended agreement will take
effect once it is executed by all members.
ALTERNATIVES
As the fiscal impact remains the same and the amendments are largely due to legal
requirements, staff does not recommend an alternative.
Report prepared by: Tustin K. Larson, Marketing & Events Supervisor
Report approved by: Edie Hylton, Deputy City Manager