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HomeMy WebLinkAbout5/20/2015 - STAFF REPORTS - 00 Mayor Pougnet and Council members, my name is Robert Stone. On December 17, 2014, Mayor Pougnet recused himself from voting on an Agenda Item relating to the Dakota Project, a residential Planned Development District in which he plans to acquire a unit. The Dakota Project came before Council several times, beginning in early 2014 when it was revived from a prior plan for the site known as Crescendo. We now know that the Mayor was employed by Rich Meaney beginning in 2013 and ending on April 24, 2015. During these years the Mayor inconsistently recused himself on Meaney/Nexus Development projects, hence the recall of the Casa del Camino sale, item 4A on tonight's agenda, with the recommendation to rescind the sale of that property. But this is only the beginning of what promises to be a long series of rescinded sales and voided contracts. The reason this must inevitably take place is the existence of multiple violations of Section 1090 of the State's Government Code on the part of the Mayor and all City Council members present tonight. Section 1090 bans any public official from having either a direct or indirect interest in his agency's contracts. Willful violations of Section 1090 may be punished as a felony. If a Palm Springs Mayor or City Council member has a conflict as defined in Section 1090, any payments made to contracting parties must be returned to the City and no claim for future payments under such contract may be made. According to Grover Trask, special counsel and former Riverside County District Attorney for 24 years, section 1090 states, "the making of a governmental contract in which the official has a financial interest is illegal. When the public official with the proscribed financial interest is a member of a, public body or board, the prohibition of Section 1090 extends to the entire body or board. This means that even if the board member discloses his or her financial interest and disqualifies from participating or voting on the matter, the remaining board is still prohibited from entering into the contract in question. Contracts approved under such circumstances are void and unenforceable even if the financially interested member refrains from participation in the contract." 9-"ll2x-jG C-ar•�M e�J'�T Unfortunately for Palm Springs, many such contracts have been entered into since the mayor's employment with Richard Meaney began. What has not yet been discussed, and the subject I must present tonight, is the failure of Mayor Pougnet and Council to consider the Mayor's relationship to John Wessman. John Wessman and Richard Meaney are business partners in the Dakota project, doing business as "Dakota Partners." Their cooperative financial ventures have included the Hacienda Cantina Project and the proposed cafe at the Welwood Murray Library. To put it simply, Mayor Pougnet had for the duration of his employment with Rich Meaney an indirect financial relationship with Mr. Wessman. He continued to regularly vote in favor of projects before City Council sponsored by Mr. Wessman. In doing so, he voted to enhance the financial status of Mr. Wessman, his employer's business partner, and indirectly improve his own prospects for financial gain. In addition to voiding the sale of the Casa del Camino parcel, the sale of The Prairie Schooner parking lots to Mr. Meaney must also be dissolved. The City will be able to retain title to the parking and keep the monies paid to them by Meaney. All entitlements for the Dakota Project must be revoked. The facts also suggest that many of the agreements entered into for the Desert Fashion Plaza remodel must be voided. Certainly the $5.3 million paid last December for the Event Space should be returned to the City, and the City should be able to retain that land. Since the Mayor retains his employment with the Palm Springs International Film Festival and Ms. Foat retains her employment with the Mizell Center, the City must revisit any contracts or agreements made with these organizations, as well as refuse to enter into any future contracts with these entities as required by Section 1090 as long as their employment continues. As elected officials you are required to attend ethics training every two years, and you should have known the provisions of Section 1090 as they apply to you. Certainly the City Attorney should have known them as well and advised you appropriately. Because the oversights in these matters are so grave, and will affect all of Council; the Mayor; the City Manager; and the City Attorney, an independent third party investigation is essential. Thank you for your time.