CC Staff Rpt 2024-04-16 - JPA Amendment 2 AMENDEDCONSENT CALENDAR ITEM NO. 8
City of La Quinta
CITY COUNCIL MEETING April 16, 2024
STAFF REPORT
AGENDA` TITLE: ADOPT RESOLUTION APPROVING AMENDMENT TO THE
SECOND AMENDED AND RESTATED JOINT POWERS AGREEMENT WITH VISIT
GREATER PALM SPRINGS
RECOMMENDATION
Adopt resolution approving an amendment to the Second Amended and Restated Joint
Powers Agreement with Visit Greater Palm Springs; and authorize the City Manager to
execute the agreement.
EXECUTIVE SUMMARY
• Visit Greater Palm Springs (VGPS), formerly the Greater Palm Springs Convention
and Visitors Bureau (CVB) is a joint powers authority operating under the Joint
Exercise of Powers Act.
• VGPS promotes and enhances the hospitality, convention, and tourism industry in
the Coachella Valley to the benefit of its member agencies and organizations, and
their residents.
• On March 5, 2024, Council adopted Resolution No. 2024-006, approving the Second
Amended and Restated Joint Powers Agreement (2nd Amendment), which was
approved by the VGPS Executive Committee on February 29, 2024.
• On March 29, 2024, the VGPS Executive Committee approved an amendment to
the Second Amended and Restated Joint Powers Agreement, which requires
Council approval.
FISCAL IMPACT
The proposed amendment includes the addition of a one-time Initial Membership Fee for
new VGPS members, consisting of an Entry Fee and Operation Fee, and a minimum
Annual Contribution from all members. The Annual Contribution would be the greater of
either 1) $35,000, or 2) the applicable contribution amounts based on the formula set forth
in the 2nd Amendment, calculating Gross Room Rental Revenue for Lodging
Establishments and Conventional Hotels, as shown in Exhibit A of the attached resolution.
115
As the City has been a member since 1989, the entry fee would not apply; and generally,
the City's annual contributions exceed the minimum threshold of $35,000, and there is no
proposed change to the percentage of Gross Room Rental Revenue, thus it is unlikely
that the City's annual contributions would be affected.
BACKGROUND/ANALYSIS
VGPS, formerly the CVB, was formed in 1989 to promote and enhance the hospitality,
convention, and tourism industry in the Coachella Valley. Its operative legal document is
the Joint Powers Agreement (JPA), executed in 1989 and subsequently amended on
multiple occasions, including on or about June 18, 2002, and most recently on or about
January 20, 2016.
On March 5, 2024, Council adopted Resolution No. 2024-006 approving the 2nd
Amendment which was approved by the VGPS Executive Committee on February 29,
2024, via Resolution No. JPA 2024-002, which amended and added various sections of
the JPA, briefly summarized below:
• Amend Section 3 (Purpose) — to revise the purpose set forth in the JPA to more
broadly serve and benefit the VGPS Members and their constituents by developing
strategies to diversify the regional economy.
• Amend Section 8 (Additional Member) — to include the City of Coachella as a
VGPS Member.
• Amend Section 10 (JPA Executive Committee — Powers and Duties) — to expand
the territorial boundaries of the JPA to include the City of Coachella.
• Amend Section 11 (Territorial Boundaries) — to create a 501(c)(6) entity, formerly
the Board of Directors, to manage the destination activities of the JPA.
• Add Section 24 Voting — to note that each JPA Member shall have an equal vote;
motions considered by the JPA Executive Committee shall require majority of
votes cast (more than half) to pass a motion; and in the event of a tie vote, the
motion before the JPA Executive Committee shall be deemed defeated.
• Amend language throughout for necessary updates and consistency.
Section 24 of the 2016 JPA provides that the JPA may be amended from time to time by
a two-thirds vote of the entire JPA Executive Committee and a unanimous vote of the
VGPS members' legislative bodies in compliance with all applicable provisions of the Joint
Exercise of Powers Act and all other applicable law. Section 24 has been renumbered to
Section 27 in the 2nd Amendment.
116
On March 29, 2024, the VGPS Executive Committee approved an amendment to the 2nd
Amendment, via Resolution No. JPA 2024-003, to amend Section 12 (Contributions) to
add:
• Subsection (a) — a one-time Initial Membership Fee consisting of an Entry Fee and
Operation Fee; and
• Subsection (b) — an annual contribution from each VGPS Member of either 1)
minimum $35,000 each year, or 2) the applicable contribution amounts set forth in
the JPA formula of Gross Rental Room Revenue for Lodging Establishments and
Convention Hotels, whichever is greater.
In accordance with the JPA, the proposed amendment to the 2nd Amendment requires
Council approval, as La Quinta is a member agency.
ALTERNATIVES
Council may elect not to adopt the proposed resolution approving the Amended 2nd
Amendment, or approve it with modifications.
Prepared by:
Approved by:
Attachment:
Oscar Mojica, Permit Technician
Monika Radeva, City Clerk
1. VGPS Resolution No. JPA 2024-003 and staff report
117
DocuSign Envelope ID: 1D900647-CD2B-49FF-AOAC-ED2FF9FAD161
Gary Gardner, Chair
City of Desert Hot Springs
Waymond Fermon, Vice Chair
City of Indio
Mark Carnevale
City of Cathedral City
Greg Sanders
City of Indian Wells
Linda Evans
City of La Quinta
Jan Harnik
City of Palm Desert
Jeffrey Bernstein
City of Palm Springs
Steve Downs
City of Rancho Mirage
V. Manuel Perez
County of Riverside
ATTACHMENT 1
JOINT POWERS AUTHORITY EXECUTIVE COMMITTEE
RESOLUTION NO. JPA 2024-003
A RESOLUTION OF THE JOINT POWERS AUTHORITY EXECUTIVE COMMITTEE
OF VISIT GREATER PALM SPRINGS APPROVING AN AMENDMENT TO
SECTION 12 OF THE AMENDED AND RESTATED JOINT POWERS AGREEMENT
REGARDING CONTRIBUTION SCHEDULE FOR JOINT POWERS AUTHORITY
MEMBERS
WHEREAS, Visit Greater Palm Springs (VGPS) is a Joint Powers Authority ("JPA")
operating under the Joint Exercise of Powers Act (California Government Code
§§6500 et seq.), located in the County of Riverside, State of California; and
WHEREAS, the JPA Executive Committee serves as the governing body of
VGPS; and
WHEREAS, the JPA Executive Committee adopted the Joint Powers Agreement
("Amended and Restated Agreement") on January 20, 2016 ("JPA Agreement");
and
WHEREAS, section 12 of the JPA Agreement sets forth the contribution amounts
for JPA Members' participation in the JPA. Pursuant to the JPA Agreement, the
contribution amounts may only be changed or amended with a unanimous vote of
the JPA Executive Committee and a unanimous vote of the JPA Members'
legislative bodies; and
WHEREAS, in accordance with the above referenced sections of the JPA
Agreement, the JPA Executive Committee now desires to revise the JPA Members'
contribution amounts as set forth below.
NOW, THEREFORE, BE IT RESOLVED by the JPA Executive Committee of Visit
Greater Palm Springs as follows:
Section 1. Recitals.
That the Recitals set forth above are true and correct.
Section 2. JPA Member Contributions.
That the JPA Executive Committee hereby approves and adopts the following
amendment to section 12 ("Contributions") of the JPA Agreement:
(a) Initial Membership Fee. Each new JPA Member shall pay to the JPA a
one -(1) time entry fee and operation fee calculated as follows:
(i)
Entry Fee: The "Entry Fee" shall be calculated by multiplying the
new JPA Member's current fiscal year's gross revenue estimate
by .55%.
(ii) Operation Fee: The "Operation Fee" shall be calculated by
multiplying the Entry Fee by 15.62%.
The sum of the Entry Fee and the Operation Fee is due within thirty (30) days of
a new JPA Member joining the JPA.
1
142
DocuSign Envelope ID: 1 D900B47-CD2B-49FF-AOAC-ED2FF9FAD161
(b) Annual Contribution. Each JPA Member shall pay to the JPA (i) the
greater of $35,000 each year, or (ii) the applicable contribution amounts as
set forth in the formula below, which may only be modified by a two-thirds
vote of the entire JPA Executive Committee and a unanimous vote of the JPA
Members' legislative bodies. JPA Members' legislative bodies shall, at a
minimum, make quarterly payments of the annual contribution to VGPS.
A contribution from each of the JPA Members is a funding mechanism equal
to:
.0015 x Gross Room Rental Revenue for Lodging Establishments
excluding Convention Hotels, and
.0035 x Gross Room Rental Revenue for Convention Hotels
(c) The Gross Room Rental Revenue described herein shall not include any
transient occupancy tax rebate incentives provided by the JPA Members.
Section 3. Initial Membership Fee for the City of Coachella.
That the Entry Fee and Operation Fee for the City of Coachella for Fiscal Year
2023/2024 is $35,327 which has been calculated as follows:
Entry Fee: $5,555,555 x . .55% = $30,555
Operation Fee 30,555 x 15.62% = 4,772
Initial Membership Fee $35,327
Section 4. That the President/Chief Executive Officer of VGPS and/or his
designee shall take all reasonable steps to) seek the approval of the amendment to
section 12 of the JPA Agreement by the legislative bodies of the JPA Members.
Section 5. Severability.
That the Executive Committee declares that, should any provision, section,
paragraph, sentence, or word of this Resolution be rendered or declared invalid by
any final court action in a court of competent jurisdiction or by reason of any
preemptive legislation, the remaining provisions, sections, paragraphs, sentences,
or words of this Resolution as hereby adopted shall remain in full force and effect.
Section 6. Repeal of Conflicting Provisions.
That all the provisions heretofore adopted by Visit Greater Palm Springs or the
Executive Committee that are in conflict with the provisions of this Resolution are
hereby repealed.
Section 7. Effective Date.
That this Resolution shall take effect immediately upon its adoption.
Section 8. Certification.
That the Clerk of the Executive Committee shall certify as to the adoption of
this Resolution and shall cause the same to be processed in the manner required by
law.
[Remainder of this page intentionally left blank.]
DocuSign Envelope ID: 1 D900B47-CD2B-49FF-AOAC-ED2FF9FAD161
PASSED, APPROVED AND ADOPTED at a special meeting of the Joint Powers Authority
(JPA) Executive Committee of Visit Greater Palm Springs, held on the 29 day of
March, 2024, by the following vote:
AYES: 8 - Gary Gardner, Waymond Fermon, Greg Sanders, Linda Evans, Jan Harnik, Jeffrey Bernstein, Steve Downs, Joaquin
Tijerina (Riverside County)
NAYES: O
ABSENT: 1 - Mark Carnevale (Cathedral City)
ABSTAIN: (il
ATTEST:
is
Sarah Gostin, erk for the Executive Committee
APPROVED AS TO FORM:
Gary Gar ner, Chair
Executive Committee
Visit Greater Palm Springs
�DocuSigned by:
� otsa[ i (ED91-uo4b0 ..
Lena D. Wade, General Counsel
1 /
rv(set' ,*�\ greater
palm springs
70100 /zighway 111 / rancho mirage, ca 92270
760.770.9000 / 800.967.3767
STAFF REPORT
TO: JPA Executive Committee
FROM: Scott White, President & CEO
DATE: March 26, 2024
SUBJECT: RECOMMEND APPROVAL AND ADOPTION OF RESOLUTION NO. JPA 2024-003; A RESOLUTION
OF THE JOINT POWERS AUTHORITY EXECUTIVE COMMITTEE OF VISIT GREATER PALM SPRINGS
APPROVING AN AMENDMENT TO SECTION 12 OF THE AMENDED AND RESTATED JOINT POWERS
AGREEMENT REGARDING CONTRIBUTION SCHEDULE FOR JOINT POWERS AUTHORITY MEMBERS
Staff Recommendation
Staff recommends that the JPA Executive Committee approve and adopt Resolution No. JPA 2024-003.
Background
VGPS staff recommended adding the City of Coachella to the JPA Executive Committee. This
recommendation was based on the new economic development diversity recruitment responsibilities and
the addition of short-term vacation rentals in the City of Coachella. During the JPA agreement amendment
process VGPS staff learned that when the JPA was first established, an entry and operation fee were
required of all JPA member agencies.
Upon executing the Joint Powers Agreement on February 1, 1989, the original JPA members (eight cities) paid
an upfront fee to help establish the organization. Commencing July 1, 1989, and quarterly thereafter, each
JPA member agency contributed an amount based on a funding formula.
The interim funding fee and interim operation fee were divided among the JPA member cities. The interim
fee was based on .55% x gross sales and the operation fee was based on the interim fee multiplied by
15.62%. Please see the original interim funding schedule below:
145
Fiscal Year 1988/1989
Interim Funding Formula
City
FY 1987-1988
Estimated Gross
FY 1987-1988
x .55%
Interim Operation x
Sales
15.62%
Desert Hot Springs
$ 3,338,000.00
$ 18,359.00
$ 2,868.00
Palm Springs
$ 63,333,000.00
$ 348,332.00
$ 54,409.00
Cathedral City
$ 10,744,000.00
$ 59,092.00
$ 9,230.00
Rancho Mirage
$ 23,750,000.00
$ 130,625.00
$ 20,404.00
Palm Desert
$ 47,083,000.00
$ 258,957.00
$ 40,449.00
Indian Wells
$ 9,857,000.00
$ 54,214.00
$ 8,468.00
La Quinta
$ 9,250,000.00
$ 50,875.00
$ 7,947.00
Indio
$ 5,375,000.00
$ 29,563.00
$ 4,618.00
Coachella
$ -
$ 10,000.00
$ 1,562.00
Total
$ 172,730,000.00
$ 960,017.00
$ 150,000.00
145
Riverside County joined the JPA Executive Committee in 1995. The amendment to the Joint Powers
Agreement approving and adopting the membership of Riverside County established a minimum
contribution of $30,000. The minimum annual contribution was subject to an annual increase at a rate of
5% per year. Outlined below are the historical payments made by Riverside County.
Riverside County Annual Contribution
1995
$ 31,500.00
1996
$ 31,500.00
1997
$ 33,000.00
1998
$ 34,729.00
1999
$ 36,465.00
2000
$ 38,288.00
2001
$ 40,202.00
2002
$ 42,216.00
2003
$ 44,323.00
2004
$ 46,540.00
2005
$ 48,865.00
2006
$ 57,172.00
2007
$ 57,172.00
2008
$ 48,824.00
2009
$ 36,618.00
New JPA formula began Jan 2010
2010 1st half
$ 18,309.00
FY 2010-2011
$
FY 2011-2012
$ 12,000.00
FY 2012 through
2023
$ 12,500.00
When the TBID was established in 2009, the JPA formula was reduced by 75%. Riverside County annual
contribution amount was reduced to align with the reduction of the JPA formula. Riverside County paid
$12,500 each year since FY 12/13.
We have no record why Riverside County has not used the established JPA formula that is currently .15% of
gross rental revenues for non -convention lodging and .35% for convention lodging.
For reference, the Riverside County estimated JPA formula contribution for FY 22/23 would have
been $25,093.
Based on the City of Coachella's historical transient occupancy tax (TOT) budget figures and using the JPA
formula, the following table outlines what Coachella's annual JPA contribution would have been for previous
years. These calculations are for reference:
21 Page
146
City of Coachella
FY
TOT
Gross
Revenues
JPA
Formula
2017/2018
$90,360.00
$1,004,000.00
$1,506.00
2018/2019
$133,385.00
$1,482,055.56
$2,223.08
2019/2020
$227,076.00
$2,523,066.67
$3,784.60
2020/2021
$533,044.00
$5,922,711.11
$8,884.07
2021/2022
$710,666.00
$7,896,288.89
$11,844.43
2022/2023
$380,060.00
$4,222,888.89
$6,334.33
2023/2024
$500,000.00
$5,555,555.56
$8,333.33
Based on the formula from FY 88/89 and the most recent estimated TOT collections, the initial fee charged
to Coachella to join the JPA Executive Committee would be as follows:
The city of Coachella entry fee calculation is based on their FY 23/24 gross revenues estimate.
$5,555,555.00 x .55% = $30,555 plus the operation fee ($30,555 x 15.62%) = $4,772. The total amount would
be $35,327.
Staff are recommending any new member agency should pay the entry fee and the fee should be paid within
30 days of joining the JPA Executive Committee.
Outlined below are the current JPA contribution estimates. These figures may fluctuate depending on the
final gross revenues and are provided for reference.
Visit Greater Palm Springs Funding Budgets - Desert
Cities 'Fiscal Year 2023-2024
JPA Member
23/24 Annual Contribution
Cathedral City
$
50,625.00
Desert Hot Springs
$
42,841.99
Indian Wells
$
285,714.29
Indio
$
77,550.00
La Quinta
$
389,393.18
Palm Desert
$
425,000.00
Palm Springs
$
874,599.17
Rancho Mirage
$
374,591.80
Riverside County
$
12,500.00
Staff is recommending due to the additional responsibilities of economic development recruitment and the
broader benefits recognized by the member agencies, a minimum annual JPA member contribution of
$35,000 or the current JPA formula, whichever is greater should be required by all member agencies,
including Riverside County. The minimum fee would increase annually based on the CPI for Southern
California. The JPA formula would not be subject to the CPI adjustment. The annual JPA member
contribution, whether the minimum fee or formula fee, would be paid quarterly to the organization and
adjusted at the end of the fiscal year based on actual gross room revenues.
31 Page
147