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Home My WebLink AboutC31480 - Requests for Proposals - Boutique Hotel Development - Larkspur Hotel SiteCITY OF PALM DESERT OFFICE OF THE CITY MANAGER STAFF REPORT REQUEST: Consideration of Waiver of Palm Desert Municipal Code 2.52.545 and Authorization for Staff to Release a Request for Proposals for a Boutique Hotel Development on the City's Larkspur Hotel Site SUBMITTED BY: John M. Wohlmuth, City Manager DATE: January 12, 2012 CONTENTS: None Recommendation By Minute Motion: (1) Waive the two year waiting requirement for releasing the public official from representing a third party and appearing before the City Council; and, (2) Direct staff to prepare and release a Request for Proposal (RFP) to develop the City -owned Larkspur property. (contract No. C31480) Background California law requires a local elected official, who held a position with local government, not act as an agent or attorney for a period of one year after leaving office. Mr. Ferguson left office on December 9, 2010. The relevant Government Code and F.P.P.C. regulations are: Cal Gov. Code Section 87406.3(a) states as follows: "A local elected official ... who held a position with a local government agency as defined in Section 82041 shall not for a period of one year after leaving that office or employment, act as an agent or attorney for, or otherwise represent, for compensation, any other person by making any formal or informal appearance before [government agency]." Staff Report Consideration of waiver of Palm Desert Municipal Code 2.52.545 and Authorization for staff to release a Request for Proposals for a Boutique Hotel development on the City's Larkspur Hotel Site January 12, 2012 Page 2 The F.P.P.C. Regulations state as follows: FPPC 18746.3 "The prohibitions of Section 87406.3 apply to a public official who, on or after Jul 1, 2006, holds any of the following positions: (1) Local elected official" (emphasis added) FPPC 18746.3(b) "A public official covered by subdivision (1) of this regulation is prohibited from any appearance if all of the following apply:... (2) The appearance or communication is made within 12 months after leaving that office or employment. (emphasis added) The Palm Desert Municipal Code requires former employees or officials to not appear or represent a third party for a period of two years. P.D.M.C. Section 2.52.545 Conflict of Interest reads: "An employee or former employee or former city official shall not engage in any other employment or activities which in any way create a conflict of interest or even the appearance of impropriety. Former Officials or Employees. It shall be improper for any former employee or former city official to appear as a compensated representative at any time before the city council, or any of its commissions, boards or agencies, by which he or she was formerly employed in connection with any case or other matter with which such person was duly connected in a policy -making capacity while with the city for two years following the termination of said employment with the city. Such official or former employee may be released from the obligation imposed by this section upon the submission of a written request to the city council in advance of his or her proposed appearance including a certification that, while an officer or employee of the city, he or she took no action or obtained no information which would prejudice their conduct or presentation, either while an officer or an employee, or at the time of the said presentation. Such a waiver request submitted to the city council will include a recommendation from the city manager. (Ord. 1072 (part), 2004)." This section of the P.D.M.C. does provide for a release or waiver of the two year requirement which shall be submitted in writing and considered by the City Council with a recommendation by the City Manager. Staff Report Consideration of waiver of Palm Desert Municipal Code 2.52.545 and Authorization for staff to release a Request for Proposals for a Boutique Hotel development on the City's Larkspur Hotel Site January 12, 2012 Page 3 Mr. Ferguson requested such a release from the two year obligation imposed by this section, as follows: "I represent an investment group interested in acquiring all right and title to the property and entitlements the City owns on Larkspur Lane across from the Gardens on El Paseo. Their interest is to acquire the land, existing hotel entitlements and add some minor modifications. They just learned of this property and certainly had nothing to do with it in 2004. My own involvement was to simply approve the project in 2004. Would you please consider this a written request to be relieved from the obligations of this section. This request is punctuated by the fact that I already met the "revolving door" obligations for a local official under State law. Thank you for your consideration. Jim" The basis for my recommendation is in conferring with the City Attorney Dave Erwin. Mr. Erwin indicated nothing in the Closed Session Minutes in 2004 indicates that a waiver or release would prejudice the City nor preclude Jim Ferguson from representing a party interested in acquiring the City's land and entitlements. In addition, the duration of time that has passed, in excess of seven years, has caused significant changes to the circumstances including modification of land value, the economy, ability for a developer to obtain financing, and limited flexibility with RDA funds and contracts. City staff has not met with the interested party that Mr. Ferguson wishes to represent; however, has heard from several other parties, of which some were more intent and organized than others. The Hotel Committee has met with Wyndham Hotels which brought forward a solid team including financing, an architect, and a contractor to potentially develop a Dream Hotel concept. Dream Hotels are boutique hotels under a partnership with Wyndham and Hampshire Hotels. This brings me to my next recommendation. Due to the interest, specifically the recent interest, by developers of the Larkspur Hotel parcel, staff recommends that the City Council direct staff to prepare an RFP to allow for a fair process to determine the best proposal for the City land. Staff Report Consideration of waiver of Palm Desert Municipal Code 2.52.545 and Authorization for staff to release a Request for Proposals for a Boutique Hotel development on the City's Larkspur Hotel Site January 12, 2012 Page 4 Fiscal Analysis There is no fiscal impact associated with this request. Submitted By: uty manager CITY COUNCIL A�ON APPROVED DENIi4'D RECEIVED OTHER MEETING DATE _U/ `"/ di - AYES. NOES: tl ABSENT.-,. A13STAIN: VERIFIED BY: /1 Original on File with City erk's Office