Coachella City Council
December 13, 2023

Item 22.
3 3.2.5 City’s Representative. The City hereby designates Gabriel D. Martin, City Manager or his or her designee, to act as its representative for the performance of this Agreement (“City’s Representative”). The City’s Representative shall have the power to act on behalf of the City for all purposes under this Contract. Consultant shall not accept direction or orders from any person other than the City’s Representative or his or her designee.

3.2.6 Consultant’s Representative. Consultant hereby designates Tizoc Deaztlan, Owner, or his or her designee, to act as its representative for the performance of this Agreement (“Consultant’s Representative”). Consultant’s Representative shall have full authority to represent and act on behalf of the Consultant for all purposes under this Agreement. The Consultant’s Representative shall supervise and direct the Services, using his best skill and attention, and shall be responsible for all means, methods, techniques, sequences, and procedures and for the satisfactory coordination of all portions of the Services under this Agreement.

3.2.7 Coordination of Services. Consultant agrees to work closely with the City staff in the performance of Services and shall be available to the City’s staff, consultants and other staff at all reasonable times.

3.2.8 Standard of Care; Performance of Employees. Consultant shall perform all Services under this Agreement in a skillful and competent manner, consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California. Consultant represents and maintains that it is skilled in the professional calling necessary to perform the Services. Consultant warrants that all employees and sub-consultants shall have sufficient skill and experience to perform the Services assigned to them. Finally, Consultant represents that it, its employees and sub-consultants have all licenses, permits, qualifications and approvals of whatever nature that are legally required to perform the Services, including a City Business License, and that such licenses and approvals shall be maintained throughout the term of this Agreement. As provided for in the indemnification provisions of this Agreement, Consultant shall perform, at its own cost and expense and without reimbursement from the City, any services necessary to correct errors or omissions which are caused by the Consultant’s failure to comply with the standard of care provided for herein. Any employee of the Consultant or its sub-consultants who is determined by the City to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project, a threat to the safety of persons or property, or any employee who fails or refuses to perform the Services in a manner acceptable to the City, shall be promptly removed from the Project by the Consultant and shall not be re-employed to perform any of the Services or to work on the Project.

3.2.8.1 Period of Performance and Liquidated Damages. Consultant shall perform and complete all Services under this Agreement within the term set forth in Section 3.1.2 above (“Performance Time”). Consultant shall also perform the Services in strict accordance with any completion schedule or Project milestones described in Exhibits “A” or “B” attached hereto, or which may be separately agreed upon in writing by the City and Consultant (“Performance Milestones”). Consultant agrees that if the Services are not completed within the aforementioned Performance Time and/or pursuant to any such Project Milestones developed pursuant to provisions of this Agreement, it is understood, acknowledged and agreed that the City will suffer damage. Pursuant to Government Code Section 53069.85, Consultant shall pay to the City as fixed

Item 22.
4 and liquidated damages the sum of $100 per day for each and every calendar day of delay beyond the Performance Time or beyond any Project Milestones established pursuant to this Agreement.

3.2.9 Laws and Regulations. Consultant shall keep itself fully informed of and in compliance with all local, state and federal laws, rules and regulations in any manner affecting the performance of the Project or the Services, including all Cal/OSHA requirements, and shall give all notices required by law. Consultant shall be liable for all violations of such laws and regulations in connection with the Services. If the Consultant performs any work knowing it to be contrary to such laws, rules and regulations and without giving written notice to the City, Consultant shall be solely responsible for all costs arising therefrom. Consultant shall defend, indemnify and hold City, its officials, directors, officers, employees, and agents free and harmless, pursuant to the indemnification provisions of this Agreement, from any claim or liability arising out of any failure or alleged failure to comply with such laws, rules or regulations.

3.2.10 Insurance.

3.2.10.1 Time for Compliance. Consultant shall not commence Work under this Agreement until it has provided evidence satisfactory to the City that it has secured all insurance required under this section. In addition, Consultant shall not allow any sub-consultant to commence work on any subcontract until it has provided evidence satisfactory to the City that the sub-consultant has secured all insurance required under this section.

3.2.10.2 Minimum Requirements. Consultant shall, at its expense, procure and maintain for the duration of the Agreement insurance against claims for injuries to persons or damages to property, which may arise from or in connection with the performance of the Agreement by the Consultant, its agents, representatives, employees or sub-consultants.

Consultant shall also require all of its sub-consultants to procure and maintain the same insurance for the duration of the Agreement. Such insurance shall meet at least the following minimum levels of coverage:
(A) Minimum Scope of Insurance. Coverage shall be at least as broad as the latest version of the following: (1) General Liability: Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001); (2) Automobile Liability:

Insurance Services Office Business Auto Coverage form number CA 0001, code 1 (any auto); and (3) Workers’ Compensation and Employer’s Liability: Workers’ Compensation insurance as required by the State of California and Employer’s Liability Insurance. (B) Minimum Limits of Insurance. Consultant shall maintain limits no less than: (1) General Liability: Two Million Dollars ($2,000,000) per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability Insurance or other form with general aggregate limit is used including, but not limited to, form CG 2503, either the general aggregate limit shall apply separately to this Agreement/location or the general aggregate limit shall be twice the required occurrence limit; (2) Automobile Liability: One Million Dollars ($1,000,000) per accident for bodily injury and property damage; and (3) Workers’ Compensation and Employer’s Liability: Workers’ Compensation limits as required by the Labor Code of the State of California. Employer’s Liability limits of $1,000,000 per accident for bodily injury or disease.

Item 22.
5 3.2.10.3 Professional Liability. Consultant shall procure and maintain, and require its sub-consultants to procure and maintain, for a period of five (5) years following completion of the Project, errors and omissions liability insurance appropriate to their profession. Such insurance shall be in an amount not less than $2,000,000 per claim, and shall be endorsed to include contractual liability.

3.2.10.4 Insurance Endorsements. The insurance policies shall contain the following provisions, or Consultant shall provide endorsements on forms supplied or approved by the City to add the following provisions to the insurance policies:
(A) General Liability. The general liability policy shall be endorsed to state that: (1) the City, its directors, officials, officers, employees, agents, and volunteers shall be covered as additional insured with respect to the Work or operations performed by or on behalf of the Consultant, including materials, parts or equipment furnished in connection with such work; and (2) the insurance coverage shall be primary insurance as respects the City, its directors, officials, officers, employees, agents, and volunteers, or if excess, shall stand in an unbroken chain of coverage excess of the Consultant’s scheduled underlying coverage. Any insurance or self-insurance maintained by the City, its directors, officials, officers, employees, agents, and volunteers shall be excess of the Consultant’s insurance and shall not be called upon to contribute with it in any way.
(B) Automobile Liability. The automobile liability policy shall be endorsed to state that: (1) the City, its directors, officials, officers, employees, agents, and volunteers shall be covered as additional insureds with respect to the ownership, operation, maintenance, use, loading or unloading of any auto owned, leased, hired or borrowed by the Consultant or for which the Consultant is responsible; and (2) the insurance coverage shall be primary insurance as respects the City, its directors, officials, officers, employees, agents, and volunteers, or if excess, shall stand in an unbroken chain of coverage excess of the Consultant’s scheduled underlying coverage. Any insurance or self-insurance maintained by the City, its directors, officials, officers, employees, agents, and volunteers shall be excess of the Consultant’s insurance and shall not be called upon to contribute with it in any way. (C) Workers’ Compensation and Employer’s Liability
Coverage. The insurer shall agree to waive all rights of subrogation against the City, its directors, officials, officers, employees, agents, and volunteers for losses paid under the terms of the insurance policy, which arise from work performed by the Consultant. (D) All Coverages. Each insurance policy required by this Agreement shall be endorsed to state that: (A) coverage shall not be suspended, voided, reduced or canceled except after thirty (30) days prior written notice by certified mail, return receipt requested, has been given to the City; and (B) any failure to comply with reporting or other provisions of the policies, including breaches of warranties, shall not affect coverage provided to the City, its directors, officials, officers, employees, agents, and volunteers.

3.2.10.5 Separation of Insureds; No Special Limitations. All insurance required by this Section shall contain standard separation of insureds provisions. In

Item 22.
6 addition, such insurance shall not contain any special limitations on the scope of protection afforded to the City, its directors, officials, officers, employees, agents, and volunteers.

3.2.10.6 Deductibles and Self-Insurance Retentions. Any deductibles or self-insured retentions must be declared to and approved by the City. Consultant shall guarantee that, at the option of the City, either: (1) the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its directors, officials, officers, employees, agents, and volunteers; or (2) the Consultant shall procure a bond guaranteeing payment of losses and related investigation costs, claims, and administrative and defense expenses.

3.2.10.7 Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best’s rating no less than A:VIII, licensed to do business in California, and satisfactory to the City.

3.2.10.8 Verification of Coverage. Consultant shall furnish City with original certificates of insurance and endorsements effecting coverage required by this Agreement on forms satisfactory to the City. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf, and shall be on forms provided by the City if requested. All certificates and endorsements must be received and approved by the City before work commences. The City reserves the right to require complete, certified copies of all required insurance policies, at any time.

3.2.10.9 Reporting of Claims. Consultant shall report to the City, in addition to Consultant’s insurer, any and all insurance claims submitted by Consultant in connection with the Services under this Agreement.

3.2.11 Safety. Consultant shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out its Services, the Consultant shall at all times be in compliance with all applicable local, state and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the work and the conditions under which the work is to be performed. Safety precautions as applicable shall include, but shall not be limited to: (A) adequate life protection and lifesaving equipment and procedures; (B) instructions in accident prevention for all employees and sub-consultants, such as safe walkways, scaffolds, fall protection ladders, bridges, gang planks, confined space procedures, trenching and shoring, equipment and other safety devices, equipment and wearing apparel as are necessary or lawfully required to prevent accidents or injuries; and (C) adequate facilities for the proper inspection and maintenance of all safety measures.

3.3 Fees and Payments.

3.3.1 Compensation. Consultant shall receive compensation, including authorized reimbursements, for all Services rendered under this Agreement at the rates set forth in Exhibit ”A” attached hereto and incorporated herein by reference. The total compensation shall not exceed Twenty-Seven Thousand Five Hundred Dollars ($27,500). Extra Work may be authorized, as described below, and if authorized, will be compensated at the rates and manner set forth in this Agreement.

Item 22.
7 3.3.2 Payment of Compensation. Consultant shall submit to the City a monthlyitemized statement, which indicates work completed and hours of the Services rendered by Consultant. The statement shall describe the amount of the Services and supplies provided since the initial commencement date, or since the start of the subsequent billing periods, as appropriate, through the date of the statement. The City shall, within 45 days of receiving such statement, review the statement and pay all approved charges thereon.

3.3.3 Reimbursement for Expenses. Consultant shall not be reimbursed for any expenses unless authorized in writing by the City.

3.3.4 Extra Work. At any time during the term of this Agreement, the City may request that Consultant perform Extra Work. As used herein, “Extra Work” means any work, which is determined by the City to be necessary for the proper completion of the Project, but which the parties did not reasonably anticipate would be necessary at the execution of this Agreement.

Consultant shall not perform, nor be compensated for, Extra Work without written authorization from City’s Representative.

3.3.5 Labor Code Requirements.

3.3.5.1 Prevailing Wages. Consultant is aware of the requirements of California Labor Code Section 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Section 1600, et seq., (“Prevailing Wage Laws”), which require the payment of prevailing wage rates and the performance of other requirements on “public works” and “maintenance” projects. If the Services are being performed as part of an applicable “public works” or “maintenance” project, as defined by the Prevailing Wage Laws, and if the total compensation is $1,000 or more, Consultant agrees to fully comply with such Prevailing Wage Laws. The City shall provide Consultant with a copy of the prevailing rates of per diem wages in effect at the commencement of this Agreement. Consultant shall make copies of the prevailing rates of per diem wages for each craft, classification or type of worker needed to execute the Services available to interested parties upon request, and shall post copies at the Consultant’s principal place of business and at the project site. Consultant shall defend, indemnify and hold the City, its elected officials, officers, employees and agents free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws.

3.3.5.2 Registration and Labor Compliance. If the Services are being performed as part of an applicable “public works” or “maintenance” project, then, in addition to the foregoing, pursuant to Labor Code sections 1725.5 and 1771.1, Consultant and all subconsultants must be registered with the Department of Industrial Relations (“DIR”). Consultant shall maintain registration for the duration of the Project and require the same of any subconsultants. This Project may also be subject to compliance monitoring and enforcement by the Department of Industrial Relations. It shall be Consultant’s sole responsibility to comply with all applicable registration and labor compliance requirements, including the submission of payroll records directly to the DIR.

3.4 Accounting Records.

Item 22.
8 3.4.1 Maintenance and Inspection. Consultant shall maintain complete and accurate records with respect to all costs and expenses incurred under this Agreement. All such records shall be clearly identifiable. Consultant shall allow a representative of the City during normal business hours to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement. Consultant shall allow inspection of all work, data, documents, proceedings, and activities related to the Agreement for a period of three (3) years from the date of final payment under this Agreement.

3.5 General Provisions.

3.5.1 Termination of Agreement.

3.5.1.1 Grounds for Termination. The City may, by written notice to Consultant, terminate the whole or any part of this Agreement at any time and without cause by giving written notice to Consultant of such termination, and specifying the effective date thereof, at least seven (7) days before the effective date of such termination. Upon termination, Consultant shall be compensated only for those services, which have been adequately rendered to the City, and Consultant shall be entitled to no further compensation. Consultant may not terminate this Agreement except for cause.

3.5.1.2 Effect of Termination. If this Agreement is terminated as provided herein, the City may require Consultant to provide all finished or unfinished Documents and Data and other information of any kind prepared by Consultant in connection with the performance of the Services under this Agreement. Consultant shall be required to provide such document and other information within fifteen (15) days of the request.

3.5.1.3 Additional Services. In the event this Agreement is terminated in whole or in part as provided herein, the City may procure, upon such terms and in such manner as it may determine appropriate, services similar to those terminated.

3.5.2 Delivery of Notices. All notices permitted or required under this Agreement shall be given to the respective parties at the following address, or at such other address as the respective parties may provide in writing for this purpose:

Consultant:

Deaztlan Consulting
78115 Calle Estado, #206
La Quinta, CA 92253
Attn: Tizoc Deaztlan
City:

City of Coachella
53390 Enterprise Way
Coachella, CA 92236
Attn: Dr. Gabriel D. Martin, City Manager

Item 22.
9 Such notice shall be deemed made when personally delivered or when mailed, forty-eight (48) hours after deposit in the U.S. Mail, first class postage prepaid and addressed to the party at its applicable address. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service.

3.5.3 Ownership of Materials and Confidentiality.

3.5.3.1 Documents & Data; Licensing of Intellectual Property. This Agreement creates a non-exclusive and perpetual license for the City to copy, use, modify, reuse, or sublicense any and all copyrights, designs, and other intellectual property embodied in plans, specifications, studies, drawings, estimates, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings or data magnetically or otherwise recorded on computer diskettes, which are prepared or caused to be prepared by Consultant under this Agreement (“Documents & Data”). Consultant shall require all sub-consultants to agree in writing that City is granted a non-exclusive and perpetual license for any Documents & Data the sub-consultant prepares under this Agreement. Consultant represents and warrants that Consultant has the legal right to license any and all Documents & Data.

Consultant makes no such representation and warranty in regard to Documents & Data, which were prepared by design professionals other than Consultant or provided, to Consultant by the City. The City shall not be limited in any way in its use of the Documents and Data at any time, provided that any such use not within the purposes intended by this Agreement shall be at the City’s sole risk.

3.5.3.2 Confidentiality. All ideas, memoranda, specifications, plans, procedures, drawings, descriptions, computer program data, input record data, written information, and other Documents and Data either created by or provided to Consultant in connection with the performance of this Agreement shall be held confidential by Consultant. Such materials shall not, without the prior written consent of the City, be used by Consultant for any purposes other than the performance of the Services. Nor shall such materials be disclosed to any person or entity not connected with the performance of the Services or the Project. Nothing furnished to Consultant, which is otherwise known to Consultant or is generally known, or has become known, to the related industry shall be deemed confidential. Consultant shall not use the City’s name or insignia, photographs of the Project, or any publicity pertaining to the Services or the Project in any magazine, trade paper, newspaper, television or radio production or other similar medium without the prior written consent of the City.

3.5.4 Cooperation; Further Acts. The Parties shall fully cooperate with one another, and shall take any additional acts or sign any additional documents as may be necessary, appropriate or convenient to attain the purposes of this Agreement.

3.5.5 Attorneys’ Fees. If either party commences an action against the other party, either legal, administrative or otherwise, arising out of or in connection with this Agreement, the prevailing party in such litigation shall be entitled to have and recover from the losing party reasonable attorneys’ fees and all other costs of such action.

3.5.6 Indemnification. To the fullest extent permitted by law, Consultant shall defend, indemnify and hold the City, its officials, officers, employees, volunteers and agents free

Item 22.
10 and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury, in law or equity, to property or persons, including wrongful death, in any manner arising out of, pertaining to, or incident to any alleged acts, omissions or willful misconduct of Consultant, its officials, officers, employees, agents, consultants and contractors in connection with the performance of the Services, the Project or this Agreement, including without limitation the payment of all consequential damages, expert witness fees and attorneys’ fees and other related costs and expenses. Consultant shall defend, at Consultant’s own cost, expense and risk, any and all such aforesaid suits, actions or other legal proceedings of every kind that may be brought or instituted against the City, its directors, officials, officers, employees, agents or volunteers.

Consultant shall pay and satisfy any judgment, award or decree that may be rendered against the City or its directors, officials, officers, employees, agents or volunteers, in any such suit, action or other legal proceeding. Consultant shall reimburse the City and its directors, officials, officers, employees, agents and/or volunteers, for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided. Consultant’s obligation to indemnify shall survive expiration or termination of this Agreement and shall not be restricted to insurance proceeds, if any, received by the City, its official’s officers, employees, agents or volunteers. Notwithstanding the foregoing, to the extent Consultant’s Services are subject to Civil Code Section 2782.8, the above indemnity shall be limited, to the extent required by Civil Code Section 2782.8, to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of Consultant.

3.5.7 Entire Agreement. This Agreement contains the entire Agreement of the parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings or agreements. This Agreement may only be modified by a writing signed by both parties.

3.5.8 Governing Law. This Agreement shall be governed by the laws of the State of California. Venue shall be in Riverside County.

3.5.9 Time of Essence. Time is of the essence for each and every provision of this Agreement.

3.5.10 City’s Right to Employ Other Consultants. City reserves right to employ other consultants in connection with this Project.

3.5.11 Successors and Assigns. This Agreement shall be binding on the successors and assigns of the parties.

3.5.12 Assignment or Transfer. Consultant shall not assign, hypothecate or transfer, either directly or by operation of law, this Agreement or any interest herein without the prior written consent of the City. Any attempt to do so shall be null and void, and any assignees, hypothecates or transferees shall acquire no right or interest by reason of such attempted assignment, hypothecation or transfer.

3.5.13 Construction; References; Captions. Since the Parties or their agents have participated fully in the preparation of this Agreement, the language of this Agreement shall be construed simply, according to its fair meaning, and not strictly for or against any Party. Any term

Item 22.
11 referencing time, days or period for performance shall be deemed calendar days and not workdays.

All references to Consultant include all personnel, employees, agents, and sub-consultants of Consultant, except as otherwise specified in this Agreement. All references to City include its elected officials, officers, employees, agents, and volunteers except as otherwise specified in this Agreement. The captions of the various articles and paragraphs are for convenience and ease of reference only, and do not define, limit, augment, or describe the scope, content or intent of this Agreement.

3.5.14 Amendment; Modification. No supplement, modification or amendment of this Agreement shall be binding unless executed in writing and signed by both Parties.

3.5.15 Waiver. No waiver of any default shall constitute a waiver of any other default or breach, whether of the same or other covenant or condition. No waiver, benefit, privilege, or service voluntarily given or performed by a Party shall give the other Party any contractual rights by custom, estoppel or otherwise.

3.5.16 No Third Party Beneficiaries. There are no intended third party beneficiaries of any right or obligation assumed by the Parties.

3.5.17 Invalidity; Severability. If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.

3.5.18 Prohibited Interests. Consultant maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Consultant, to solicit or secure this Agreement. Further, Consultant warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Consultant, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. Consultant further agrees to file, or shall cause its employees or sub-consultants to file, a Statement of Economic Interest with the City’s Filing Officer as required under state law in the performance of the Services. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability. For the term of this Agreement, no member, officer or employee of City, during the term of his or her service with City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.

3.5.19 Equal Opportunity Employment. Consultant represents that it is an equal opportunity employer and it shall not discriminate against any sub-consultant, employee or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex or age. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination. Consultant shall also comply with all relevant provisions of City’s Minority Business Enterprise program, Affirmative Action Plan or other related programs or guidelines currently in effect or hereinafter enacted.

3.5.20 Labor Certification. By its signature hereunder, Consultant certifies that it is aware of the provisions of Section 3700 of the California Labor Code, which require every

Item 22.
12 employer to be insured against liability for Workers’ Compensation or to undertake self-insurance in accordance with the provisions of that Code, and agrees to comply with such provisions before commencing the performance of the Services.

3.5.21 Authority to Enter Agreement. Consultant has all requisite power and authority to conduct its business and to execute, deliver, and perform the Agreement. Each Party warrants that the individuals who have signed this Agreement have the legal power, right, and authority to make this Agreement and bind each respective Party.

3.5.22 Counterparts. This Agreement may be signed in counterparts, each of which shall constitute an original.

3.6 Subcontracting.

3.6.1 Prior Approval Required. Consultant shall not subcontract any portion of the work required by this Agreement, except as expressly stated herein, without prior written approval of City. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement.

CITY OF COACHELLA DEAZTLAN CONSULTING
By: By:

Dr. Gabriel D. Martin Tizoc Deaztlan
City Manager Owner

Item 22.

A-1
EXHIBIT “A”

SCOPE OF SERVICES

Item 22.

B-1
EXHIBIT “B”

SCHEDULE OF SERVICES
PROJECT START DATE: DECEMBER 14, 2023
PROJECT COMPLETION DATE: JANUARY 31, 2024

Item 22.

DEAZTLAN CONSULTING | COACHELLA PROSPERA PROJECT

LOGO DESIGN
Research
Development
Feedback and Revision Process
Final Logo Design
Formats
Color Variations
Suggested Guidelines
*Print cost not included
Cost: $ 2,500.00

WEBSITE & SOCIAL CHANNELS
Hosting
Development of Landing Page
Social Media Branding
Social Media Profile Creation (FB, Instagram, and LinkedIn) Cost: $ 4,500.00

DESIGN DELIVERABLES
Invitation
Program
2, Step and Repeat
2, Roll up Banners
Swag collateral
*Print cost not included
Cost: $ 2,500.00

DEVELOPMENT &

PRODUCTION

Item 22.

DEAZTLAN CONSULTING | COACHELLA PROSPERA PROJECT
VIDEOS
1, Launch
3, Partners
1, Digital Presentation
Cost: $ 15,000.00

EVENT PRODUCTION & MANAGEMENT
AV (70” screen with stand, 2 microphones, and a speaker system) AV Tech Support
Decor (Branded plants, branded balloons, and backdrop)
*Print cost not included
Cost: $ 3,000.00
*Print cost not included
(Deliverables will be produced in both English and Spanish) Total: $ 27,500.00

Item 22.

STAFF REPORT
12/13/2023
TO: Honorable Mayor and City Council Members
FROM: Andrew Simmons, P.E., City Engineer
SUBJECT: Reimbursement Agreement with Coachella Valley Association of Governments (CVAG) in an amount of $825,000, Service Agreement with the County of Riverside in an amount of $825,000, and authorize appropriation of $50,000 from Fund 127 (Street DIF) for the design and construction of the Airport Blvd Bridge Replacement Project, City Project ST-141.

STAFF RECOMMENDATION:
o Authorize the Mayor to execute a Reimbursement Agreement with Coachella Valley Association of Governments (CVAG) in an amount of $825,000; o Authorize the City Manager to execute a Service Agreement with County of Riverside in an amount of $825,000;
o Authorize appropriation of $50,000 from Fund 127 (Street DIF) for the design and construction of the Airport Blvd Bridge Replacement Project, City Project ST-141.

DISCUSSION/ANALYSIS:

The County of Riverside has secured Highway Bridge Program (HBP) federal funds to replace the existing functionally obsolete and seismically vulnerable bridge that currently extends over the Coachella Valley Stormwater Channel with a wider two-lane bridge to meet Caltrans highway standards and seismic design codes in the amount of $18,007,470, which is 88.53% of the HBP participating cots. The remaining 11.47% cost is $2.3 million. The total HBP non-participating cost is $4.3 million. The total remaining amount not covered by the federal funds is approximately $6.6 million.

The County of Riverside, as the lead agency, in collaboration with the City of Coachella, requested regional transportation funds from Coachella Valley Association of Governments (CVAG) to cover the design and construction of a bridge replacement along Airport Boulevard from Orange Street to Desert Cactus Drive.

On June 26, 2023 Coachella Valley Association of Governments’ Executive Committee moved to approve the reimbursement agreement with the County of Riverside as the lead agency for the Airport Blvd Bridge Replacement Project (Orange Street to Desert Cactus Drive), providing a notto-exceed amount of $4,950.000 in regional funding for eligible design and constructions costs.

The agreement also includes language to account for the future development of CV Link. The

Item 23.
agreement states that design and construction of the required CV Link undercrossing shall be included in the scope of work for the bridge, and that CVAG shall fund this added scope of work.

FISCAL IMPACT:

The total estimated cost of the project after accounting for federal highway bridge program funds will be approximately $6,600,000. In accordance with CVAG policy, CVAG agrees to pay 75% of the qualified costs, in this case the estimated as not-to-exceed $4,950.000, as well as 100% of the CV Link costs to be determined. The County of Riverside, as Lead Agency, agrees to invoice CVAG for eligible costs. The remaining 25% Local share shall be $1,650,000 split between the County of Riverside and the City of Coachella for a not-to-exceed amount of $825,000.

Regional Share 75% Local Share 25%
CVAG County of Riverside
(12.5%)
City of Coachella
(12.5%)
$4,950,000.00 $825,000.00 $825,000.00
The County of Riverside agrees to invoice the City as outlined in the projected schedule below:

Projected Disbursement Schedule Amount Funding Source
Upon execution of agreement (FY
23/24) $50,000 Street DIF
Upon completion of final PS&E
(projected FY 24/25) $155,000 Measure A/SB1
FY 25/26 $206,667 Measure A/SB1
FY 26/27 $206,667 Measure A/SB1
FY 27/28 $206,666 Measure A/SB1
Grand Total: $825,000
With this action, City Council authorizes the appropriation of $50,000 from Fund 127 (Street DIF) for the deposit, as stated in the Service Agreement with the County of Riverside. Remaining funds will be appropriated with future Measure A and SB1 funds to be brought back to council.

ATTACHMENTS:

1. Reimbursement Agreement – Coachella Valley Association of Governments

2. Service Agreement – County of Riverside

3. Project Vicinity Map

Item 23.

Contract No. CVAG-23-013
Project: Airport Boulevard Bridge Replacement Project (Orange Street to Desert Cactus Drive)

AGENCY REIMBURSEMENT AGREEMENT

BY AND BETWEEN CVAG AND THE COUNTY OF RIVERSIDE

DESIGN AND CONSTRUCTION COSTS FOR

AIRPORT BOULEVARD BRIDGE REPLACEMENT PROJECT (ORANGE STREET

TO DESERT CACTUS DRIVE)
THIS AGREEMENT is made and entered into this 26th day of June 2023, by and between the County of Riverside ("Agency"), and the Coachella Valley Association of Governments, a California joint powers agency, ("CVAG"), and is made with reference to the following background facts and circumstances:

RECITALS
The "Coachella Valley Area Transportation Study", a valley-wide study prepared under the auspices of CVAG, has identified various transportation and highway projects and corridors throughout the Coachella Valley to be of regional importance. This project is included in the 2016 Transportation Project Prioritization Study (TPPS) document; and, Approval of a highway financing measure by the voters of Riverside County in November of 1988, as well as the approval of an extension of Measure A by the voters in November of 2002, has created a source of funds with which to construct such projects; and,
CVAG by agreement with its member agencies and with the Riverside County Transportation Commission ("RCTC"), has been designated as the agency through which such funds are to be conveyed and disbursed for the purpose of completing said regional transportation projects; and,
CVAG Executive Committee, on July 31, 2006, approved the implementation of the amended Transportation Uniform Mitigation Fee “TUMF” Fee Ordinance to increase the collected TUMF Fee, effective January 1, 2007; and,
Under CVAG's policy of funding eligible projects with member jurisdictions, effective January 1, 2007, the responsible jurisdiction(s) will be responsible for paying Twenty-five Percent (25%) of the Project costs (the Local Share), as well as any ineligible project costs, and CVAG will be responsible for Seventy-five Percent (75%) of eligible Project costs (the Regional Share). Historically, the CVAG Regional Share has been paid as a reimbursement to the Jurisdiction, as invoices are submitted and approved.

Agency desires to proceed with the design and construction phases for the Airport Boulevard Bridge Replacement Project (Orange Street to Desert Cactus Drive), providing a not-to-exceed amount of $4,950,000 in regional funding for eligible design and construction costs.

Item 23.

Contract No. CVAG-23-013
Project: Airport Boulevard Bridge Replacement Project (Orange Street to Desert Cactus Drive)

CVAG’s share of the Project cost is not-to-exceed $4,950,000, being the maximum approved Regional Share of the Project costs.

NOW, THEREFORE, in consideration of the mutual covenants and subject to the conditions contained herein, the parties do agree as follows:

1. The program embodied in this agreement for the reimbursement of funds by CVAG shall apply only to those regional arterial projects that have heretofore been identified in CVAG’s Transportation Project Prioritization Study or specifically authorized by CVAG’s Executive Committee. The Project was specifically approved by CVAG’s Executive Committee as consistent with the TPPS on June 26, 2023, and is therefore eligible.

2. The Project is generally described as and consists of the following: design and construction costs for Airport Boulevard bridge replacement project (Orange Street to Desert Cactus Drive). These services will hereinafter be referred to as the "Project".

3. This project will intersect the Coachella Valley-wide project known as the CV Link.

As such, Agency shall obtain a cost-proposal for the design and construction of the required CV link under-crossing. If CVAG is agreeable to the cost proposal, a written amendment to the Agreement shall be executed by the parties to include the design and construction of the required CV Link under-crossing in the scope of work for this project. CVAG shall be responsible to contribute additional regional funding to cover one hundred percent (100%) of the cost for this added scope of work. For the avoidance of doubt, the parties agree no Local Share will be required for this added scope of work.

4. The scope of work of the Project is more particularly described in Exhibit "A", entitled "Scope of Services " attached hereto and made a part hereof. The cost estimate for the Project is more particularly described in Exhibit "B" - "Estimate of Cost", attached hereto and made a part hereof. The cost estimates include a calculation intended to allow Agency to recover an amount representing the time of its employed staff in working on the Project as well as amount Agency shall pay to outside contractors in connection with the Project. CVAG’s cost share for the project will be as shown on Exhibit "B" unless amended pursuant to the provisions of Paragraph 6.

This Agreement shall establish a Time Trigger, which will require that the start of the Construction Phase of the Project must begin by June 26, 2025.

5. It is the agreement between CVAG and Agency that of the total estimated cost of the project after accounting for federal highway bridge program funds will be

Item 23.

Contract No. CVAG-23-013
Project: Airport Boulevard Bridge Replacement Project (Orange Street to Desert Cactus Drive)

approximately $6,600,000, CVAG’ Regional Share will equal $4,950,000, and the Local share shall be $1,650,000, as well as equal one hundred percent (100%) of all costs not eligible for reimbursement by CVAG. This Agreement shall establish that CVAG may decline or delay regional funds should it be determined that such action is necessary to maintain a minimum balance of regional funds.

6. Agency agrees to seek reimbursement of only those costs which are eligible for reimbursement by CVAG, as outlined in the CVAG Policies and Procedures Manual for the Regional Arterial Program, as most recently amended.

7. Agency shall be responsible for initial payment of all covered costs as they are incurred. Following payment of such costs, Agency shall submit invoices to CVAG requesting reimbursement of seventy-five percent of those eligible costs associated with the Project. Each invoice shall be accompanied by detailed contractor invoices, or other demands for payment addressed to Agency, and documents evidencing Agency’s payment of the invoices or demands for payment.

Agency shall also submit a Project Completion Report, in a form acceptable to CVAG, with each statement. Agency shall submit invoices not more often than monthly and not less often than quarterly.

6.1 Upon receipt of an invoice from Agency, CVAG may request additional documentation or explanation of the Project costs. Undisputed reimbursement amounts shall be paid by CVAG to Agency within thirty (30) days.

6.2 If a post-payment audit or review indicates that CVAG has provided reimbursement to Agency in an amount in excess of One-Hundred Percent of eligible costs, or has provided reimbursement of ineligible Project costs, Agency shall reimburse CVAG for the excess or ineligible payments within thirty (30) days of notification by CVAG.

8. Prior to any final payment to Agency by CVAG, a final report shall be submitted to CVAG by Agency containing a record of all payments made for said Project and the source of funds of all such payments, together with a record of all change orders, cost over-runs, and other expenses incurred. Final payment will thereafter be paid by CVAG in accordance with its rules, regulations and policies concerning project cost determination and expense eligibility.

9. The format used for all bids solicited by Agency for the Project shall require itemization sufficient to allow quantities of each bid item to be easily discernible.

10.The parties agree that should unforeseen circumstances arise which result in new work not covered in Exhibit “A,” an increase of any costs over those shown in Exhibit “B,” or other changes in the Scope of Work are proposed, CVAG will in

Item 23.

Contract No. CVAG-23-013
Project: Airport Boulevard Bridge Replacement Project (Orange Street to Desert Cactus Drive)

good faith consider an amendment to this Agreement to provide for further appropriate reimbursement if the proposed amendment is in accordance with the policies, procedures, and cost determination/expense eligibility criteria adopted by CVAG. Non-substantive changes may be made to this agreement subject to CVAG’s General Counsel’s approval.

11.Agency shall maintain an accounting of all funds received from CVAG pursuant to this Agreement in accordance with generally accepted accounting principles.

Agency agrees to keep all Project contracts and records for a period of not less than three years from the date a notice of completion is filed by the Agency on such Project; or, if the Project is not one as to which a notice of completion would normally be recorded, for three years from the date of completion. Agency shall permit CVAG, at any reasonable time, upon reasonable notice, to inspect any records maintained in connection with the Project. CVAG shall have no duty to make any such inspection and shall not incur any liability or obligation by reason of making or not making any such inspection.

12.The occurrence of any one or more of the following events shall, at CVAG’s option, constitute an event of default and Agency shall provide CVAG with immediate notice thereof.

11.1 Any warranty, representation, statement, report or certificate made or delivered to CVAG by Agency or any of Agency’s officers, employees or agents now or hereafter which is incorrect, false, untrue or misleading in any material respect;

11.2 Agency shall fail to pay, perform or comply with, or otherwise shall breach, any obligation, warranty, term or condition in this Agreement or any amendment to this Agreement, or any agreement delivered in connection with the Project; or,

11.3 There shall occur any of the following: dissolution, termination of existence or insolvency of Agency; the commencement of any proceeding under any bankruptcy or insolvency law by or against Agency; entry of a court order which enjoins, restrains or in any way prevents Agency from paying sums owed to creditors.

13.No waiver of any Event of Default or breach by one party hereunder shall be implied from any omission by the other party to take action on account of such default, and no express waiver shall affect any default other than the default specified in the waiver and the waiver shall be operative only for the time and to the extent therein stated. Waivers of any covenant, term, or condition contained herein shall not be construed as a waiver of any subsequent breach of the same covenant, term or condition. The consent or approval by one party to or of any act

Item 23.

Contract No. CVAG-23-013
Project: Airport Boulevard Bridge Replacement Project (Orange Street to Desert Cactus Drive)

by the other party shall not be deemed to waive or render unnecessary the consent or approval to or of any subsequent or similar act.

14.This Agreement is made and entered into for the sole protection and benefit of CVAG and Agency and no third person shall have any right of action under this Agreement.

15.It is the intent of the Agency and CVAG that the Project be represented as being funded by Measure “A”/TUMF funds. All public notices, news releases, and documents shall indicate that the Project is being cooperatively developed by the Agency, RCTC, and CVAG using Measure “A”/TUMF funds. Prior to initiation of on-site construction, Agency agrees to provide at least one “Project Sign” to be placed in a safe and visible location near the site of construction so that all travelers passing the location have the opportunity to observe who the agencies are that are providing funds for the construction of the Project.

16.This Agreement is for funding purposes only and nothing herein shall be construed so as to constitute CVAG as a party to the construction or in ownership or a partner or joint venture with Agency as to the Project. The Agency shall assume the defense of, indemnify and hold harmless CVAG, its member agencies, and their respective officers, directors, agents, employees, servants, attorneys, and volunteers, and each and every one of them, from and against all actions, damages, claims, losses and expenses of every type and description to which they may be subjected or put by reason of or resulting from the actions or inactions of the Agency related to the Project or taken in the performance of this Agreement or any agreement entered into by Agency with reference to the Project. CVAG shall assume the defense of, indemnify and hold harmless the Agency, its officers, directors, agents, employees, servants, attorneys, and volunteers, and each of them, from and against all actions, damages, claims, losses, and expenses of every type and description to which they may be subjected or put by reason of or resulting from the actions of CVAG taken in the performance of this Agreement.

17.Agency agrees to include in its contract specifications and bid documents a requirement that all prime contractors shall name CVAG and its member agencies as “also insured” on all liability insurance coverage required by Agency on each contract. Agency will provide a copy of the Insurance Certificate to CVAG, depicting CVAG and its member agencies as “also insureds,” within 30 days of signing a contract with the prime contractor.

18.Any dispute concerning a question of fact arising under this Agreement that is not disposed of by voluntary negotiations between the parties shall first be decided by the CVAG Executive Director or designee, who may consider any written or verbal evidence submitted by Agency. This decision shall be issued in writing. However, no action in accordance with this Section shall in any way limit either party’s rights

Item 23.

Contract No. CVAG-23-013
Project: Airport Boulevard Bridge Replacement Project (Orange Street to Desert Cactus Drive)

and remedies through actions in a court of law with appropriate jurisdiction. Neither the pendency of dispute nor its consideration by CVAG will excuse Agency from full and timely performance in accordance with the terms of this Agreement.

19.Any agency receiving federal funds must have an approved Disadvantaged Business Enterprise program. All recipients of Federal Highway Administration (FHWA) funds must carry out the provisions of Part 26, Title 49 of the Code of Federal Regulations (CFR) which established the Federal Department of Transportation’s policy supporting the fullest possible participation of firms owned and controlled by minorities and women in the Department of Transportation programs. Except to the extent that such or other contrary federal regulations may apply, Agency covenants that, by and for itself and all persons claiming under or through it, there shall be no discrimination against or segregation of any person or group of persons on account of race, color, creed, religion, sex, marital status, national origin or ancestry in the performance of this Agreement.

20.Agency warrants that all aspects of the Project shall be undertaken in compliance with all applicable local, state and federal rules, regulations and laws. Agency will execute and deliver to CVAG such further documents and do other acts and things as CVAG may reasonably request in order to comply fully with all applicable requirements and to effect fully the purposes of this Agreement.

21.This Agreement may not be assigned without the express written consent of CVAG first being obtained.

22.Agency, its successors in interest and assigns shall be bound by all the provisions contained in this Agreement.

23.No officer or employee of CVAG shall be personally liable to Agency, or any successor in interest, in the event of any default or breach by CVAG or for any amount with may become due to Agency or to its successor, or for breach of any obligation of the terms of this Agreement.

24.Notwithstanding any other provision herein, CVAG shall not be liable for payment or reimbursement of any sums for which CVAG has not first obtained the necessary and appropriate funding from TUMF and/or Measure “A” monies.

25.No officer or employee of CVAG shall have any personal interest, direct or indirect, in this Agreement; nor shall any such officer or employee participate in any decision relating to this Agreement which effects his or her personal interest or the interest of any corporation, partnership or association in which she or he is, directly or indirectly, interested, in violation of any state, federal or local law.

26.Agency warrants that the funds received by CVAG pursuant to this Agreement

Item 23.

Contract No. CVAG-23-013
Project: Airport Boulevard Bridge Replacement Project (Orange Street to Desert Cactus Drive)

shall only be used in a manner consistent with CVAG’s reimbursement policy and all applicable regulations and laws. Any provision required to be included in this type of agreement by federal or state law shall be deemed to be incorporated into this Agreement.

27.All notices or other communications required or permitted hereunder shall be in writing and shall be either personally delivered (which shall include delivery by means of professional overnight courier service which confirms receipt in writing, such as Federal Express or UPS); sent by telecopier or facsimile machine capable of confirming transmission and receipt; or sent by certified or registered mail, return receipt requested, postage prepaid to the following parties at the following addresses or numbers:

If to County of Riverside: Mark Lancaster
Director of Transportation
County of Riverside
3525 14th Street
Riverside, CA 92501
Telephone: (951) 955-6800
If to CVAG: CVAG
74-199 El Paseo Suite 100,
Palm Desert, CA 92260
Telephone: (760) 346-1127
Notices sent in accordance with this paragraph shall be deemed delivered upon the next business day following the: (i) date of delivery as indicated on the written confirmation of delivery (if sent by overnight courier service); (ii) the date of actual receipt (if personally delivered by other means); (iii) date of transmission (if sent by telecopier or facsimile machine); or (iv) the date of delivery as indicated on the return receipt if sent by certified or registered mail, return receipt requested. Notice of change of address shall be given by written notice in the manner detailed in this paragraph.

28.This Agreement and the exhibits herein contain the entire agreement between the parties, and is intended by the parties to completely state the agreement in full.

Any agreement or representation respecting the matter dealt with herein or the duties of any party in relation thereto, not expressly set forth in this Agreement, is null and void.

29.If any term, provision, condition, or covenant of this Agreement, or the application thereof to any party or circumstance, shall to any extent be held invalid or unenforceable, the remainder of the instrument, or the application of such term, provision, condition or covenant to persons or circumstances other than those as

Item 23.

Contract No. CVAG-23-013
Project: Airport Boulevard Bridge Replacement Project (Orange Street to Desert Cactus Drive)

to whom or which it is held invalid or unenforceable, shall not be affected thereby and each term and provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law.

30.In the event either party hereto brings an action or proceeding for a declaration of the rights of the parties, for injunctive relief, for an alleged breach or default, or any other action arising out of this Agreement, or the transactions contemplated hereby, the prevailing party in any such action shall be entitled to an award of reasonable attorneys’ fees and costs incurred in such action or proceeding, in addition to any other damages or relief awarded, regardless of whether such action proceeds to final judgment.

31.Time is of the essence in this Agreement, and each and every provision hereof in which time is an element.

32.This Agreement and all documents provided for herein shall be governed by and construed in accordance with the laws of the State of California. Any litigation arising from this Agreement shall be adjudicated in the courts of Riverside County, Desert Judicial District, State of California.

33.Agency warrants that the execution, delivery and performance of this Agreement and any and all related documents are duly authorized and do not require the further consent or approval of any body, board or commission or other authority.

34.This Agreement may be executed in one or more counterparts and when a counterpart shall have been signed by each party hereto, each shall be deemed an original, but all of which constitute one and the same instrument.

IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed by their duly authorized representatives on this date:

ATTEST: COUNTY OF RIVERSIDE
By: ________________________________ By: ___________________________ Clerk of the Board of Supervisors Chair of the Board of Supervisors ATTEST: CVAG

Item 23.

Contract No. CVAG-23-013
Project: Airport Boulevard Bridge Replacement Project (Orange Street to Desert Cactus Drive)

By: _______________________________ By: ___________________________ Tom Kirk, Executive Director Scott Matas, Chair
ATTEST: City of Coachella
By: _______________________________ By: ___________________________ Delia Granados, City Clerk Steven Hernandez, Mayor

Item 23.

Contract No. CVAG-23-013
Project: Airport Boulevard Bridge Replacement Project (Orange Street to Desert Cactus Drive)

EXHIBIT "A"

SCOPE OF SERVICES

AGENCY REIMBURSEMENT AGREEMENT

BY AND BETWEEN CVAG AND THE COUNTY OF RIVERSIDE

DESIGN AND CONSTRUCTION COSTS FOR

AIRPORT BOULEVARD BRIDGE REPLACEMENT PROJECT (ORANGE STREET

TO DESERT CACTUS DRIVE)
The Scope of Services for this Project includes design and construction costs for Airport Boulevard bridge replacement project (Orange Street to Desert Cactus Drive).

The proposed scope of work for this Project includes the replacement of the existing functionally obsolete and seismically vulnerable Airport Boulevard bridge, over the Whitewater River, with a wider two-lane bridge. The project will reconstruct the connecting approach roadways to meet Caltrans highway standards and seismic design codes. The new bridge will be widened to 71 feet, that includes 6-foot-wide sidewalks on both sides, 8-foot-wide shoulders, 14-foot-wide eastbound and westbound lanes, and a 12-foot-wide striped median/turn lane. The project will also raise the bridge profile by approximately 2- 3 feet to maintain a minimum freeboard from the flood water in the river.

The project shall include additional design and construction for the required CV Link undercrossing, which will be accounted for separately from the primary bridge design and replacement project. The intersection traffic signals will be constructed to be consistent with the Regional Traffic Signal Synchronization Master Plan and incorporate best practices consistent with the Regional ATP Design Guidelines.

Item 23.

Contract No. CVAG-23-013
Project: Airport Boulevard Bridge Replacement Project (Orange Street to Desert Cactus Drive)

EXHIBIT "B"

AGENCY REIMBURSEMENT AGREEMENT

BY AND BETWEEN CVAG AND THE COUNTY OF RIVERSIDE

DESIGN AND CONSTRUCTION COSTS FOR

AIRPORT BOULEVARD BRIDGE REPLACEMENT PROJECT (ORANGE STREET

TO DESERT CACTUS DRIVE)
The total estimated cost of the project after accounting for federal highway bridge program funds will be approximately $6,600,000. CVAG will fully fund 100% of the design and construction improvements related to CV Link, which will be accounted for separately from the primary bridge design and replacement project.

In accordance with CVAG policy, CVAG agrees to pay 75% of the qualified costs, in this case the estimated as not-to-exceed $4,950,000, as well as 100% of the CV Link costs to be determined. The County of Riverside as Lead Agency agrees to invoice CVAG for 75% of the eligible bridge project cost and 100% of the design and construction costs associated with CV Link. The Local Share shall be $1,650,000 as 25% of the project cost, as well as equal one hundred percent (100%) of all costs not eligible for reimbursement by CVAG. The County of Riverside as the Lead Agency agrees to invoice the City of Coachella for any cost participation in the amount of 12.5% of the proportionate local share up to a maximum, not to exceed, amount of $825,000.

Regional Share 75% Local Share 25%
CVAG County of Riverside
(12.5%)
City of Coachella
(12.5%)
$4,950,000.00 $825,000.00 $825,000.00

Item 23.
4 Airport Blvd. Bridge Replacement at Whitewater River
Bridge Replacement Project (Bridge No. 56C-0020),
Federal Project Number: BRLS-5956(231)
City Project Number: ST-141
Vicinity Map

Item 23.

Airport Boulevard Bridge Replacement Project
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29 SERVICE AGREEMENT BY AND BETWEEN

COUNTY OF RIVERSIDE
AND

CITY OF COACHELLA
FOR

AIRPORT BOULEVARD BRIDGE REPLACEMENT PROJECT
(ORANGE STREET TO DESERT CACTUS DRIVE)
This Agreement is entered into this ______ day of ______________________, 20__, by and between the County of Riverside, a political subdivision of the State of California, acting through its Transportation Department, (hereinafter “COUNTY”) and the City of Coachella, a municipal corporation, (hereinafter “CITY”), to replace the Airport Boulevard Bridge (Br. No. 56C00xx) over Whitewater River and to construct approach roadways connecting the new bridge between Orange Street and Desert Cactus Drive (hereinafter “PROJECT”). COUNTY and CITY are sometimes hereinafter referred to individually as a “PARTY” and collectively as the “PARTIES.”

RECITALS
A. WHEREAS, the PARTIES have determined that there is significant need to replace the existing functionally obsolete and seismically vulnerable Airport Boulevard Bridge (Br. No. 56C0020), over the Whitewater River, with a wider two-lane bridge, as shown in attached Vicinity Map “Exhibit B-1”. The PROJECT will reconstruct the connecting approach roadways to meet Caltrans highway standards and seismic design codes. The new bridge will be widened to 71 feet, that includes 6-foot-wide sidewalks on both sides, 8-foot-wide shoulders, 14- foot-wide eastbound and westbound lanes, and a 12-foot-wide striped median/turn lane. The PROJECT will also raise the bridge profile by approximately 2-3 feet to maintain a minimum freeboard from the flood water in the river. The intersection traffic signals will be constructed to be consistent with the Regional Traffic Signal Synchronization Master Plan and incorporate best practices consistent with the Regional ATP Design Guidelines; and
B. WHEREAS, the PROJECT is within the jurisdictional boundaries of both CITY and COUNTY; and C. WHEREAS, California Government Code Section 6502 provides that "[if] authorized by their legislative or

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Airport Boulevard Bridge Replacement Project
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29 governing bodies, two or more public agencies by agreement may jointly exercise any power common to the contracting parties".

D. WHEREAS, CITY and COUNTY desire to work together to design and construct the PROJECT; and E. WHEREAS, COUNTY will provide the administrative, technical, managerial, and support services necessary for the implementation of the PROJECT; and
F. WHEREAS, COUNTY and CITY desire to define the terms and conditions under which said PROJECT is to be administered, engineered, coordinated, and constructed.

AGREEMENT
NOW THEREFORE, in consideration of the mutual promises contained herein, the PARTIES hereto agree as follows:

SECTION 1 • COUNTY AGREES to:

1. Act as the lead agency on behalf of the CITY for the overall development and implementation of the PROJECT.

2. Fund twelve and a half percent (12.5%) of the total cost of the PROJECT (“COUNTY’S LOCAL SHARE”) as detailed in “Exhibit B”. COUNTY agrees that should unforeseen circumstances arise which result in an increase of any costs over those shown in “Exhibit B", COUNTY will in good faith amend this Agreement to include any such costs under this Agreement. The COUNTY is providing services for the PROJECT on a reimbursable basis and has absolutely no obligation with regard to funding any portion of the CITY’S LOCAL SHARE, as defined in Section 2, Subsection 1, below.

3. Prepare, or cause to be prepared, detailed Plans, Specifications & Estimate (PS&E) documents for the PROJECT and submit to CITY for review and approval at appropriate stages of development. Final plans for improvements shall be prepared to COUNTY standards and signed by a Civil Engineer registered in the State of California. Deviations from standards shall be coordinated with and approved by CITY.

4. Identify and locate all utility facilities within the limits of the PROJECT as part of its design responsibility. If any existing public and/or private utility facilities conflict with PROJECT construction, COUNTY shall make all necessary arrangements with the owners of such facilities for their protection, relocation, or removal. All utility facilities shall be identified on the plans and specifications, and conflicting utilities shall be denoted.

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Airport Boulevard Bridge Replacement Project
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29 COUNTY shall require the utility owner and/or its contractors performing the relocation work within CITY's right of way to obtain a CITY encroachment permit prior to the performance of said relocation work. CITY and COUNTY shall coordinate and cooperate in the effort to establish prior rights related to utility encroachments into each jurisdiction’s right-of-way. In the case that any utility companies are determined to have prior rights, the cost of relocating utilities shall be borne by the CITY.

5. Make, or have its contractor make, written application to CITY for an encroachment permit authorizing entry into CITY's right of way for the purposes of constructing the PROJECT.

6. Act as the Lead Agency under the California Environmental Quality Act (CEQA) for the PROJECT.

7. Advertise, award and administer a public works contract for the construction of the PROJECT in accordance with all applicable federal, state or local statutes, ordinances, orders, governmental requirements, laws or regulations, including but not limited to the local agency public construction codes, California Labor Code, and California Public Contract Code.

8. Furnish a representative to perform the function of Resident Engineer during construction of the PROJECT.

9. Furnish qualified support staff to assist the Resident Engineer in, but not limited to, construction surveys, soils and compaction tests, measurement and computation of quantities, testing of construction materials, checking submittals, preparation of estimates and reports, preparation of as-built drawings, and other inspection and staff services necessary to assure that the construction is performed in accordance with the PS&E documents.

10. Construct the PROJECT in accordance with approved PS&E documents.

11. Furnish CITY one complete set of full-sized film positive reproducible as-built plans and all contract records, including survey documents, within six (6) months following the completion and acceptance of the PROJECT construction contract. Electronic copies of completed plans will be made available if CITY desires. If electronic copies are provided, they will be provided on CD-R media.

12. Furnish CITY a final reconciliation of PROJECT expenses within ninety (90) days following the completion and acceptance of the PROJECT construction contract. If final costs associated with the PROJECT are in excess of the CITY’S LOCAL SHARE provided in Section 2, COUNTY shall include a final bill with the financial reconciliation. If final costs associated with the PROJECT are less than the CITY’S LOCAL

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Airport Boulevard Bridge Replacement Project
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29 SHARE provided in Section 2, COUNTY shall include a reimbursement for the difference with the financial reconciliation.

SECTION 2 • CITY AGREES to:

1. Fund twelve and a half percent (12.5%) of the total cost of the PROJECT (“CITY’S LOCAL SHARE”) as detailed in “Exhibit B”. CITY agrees that should unforeseen circumstances arise which result in an increase of any costs over those shown in “Exhibit B", CITY will in good faith amend this Agreement to include any such costs under this Agreement. CITY has absolutely no obligation with regard to funding any portion of the COUNTY’S LOCAL SHARE, as defined in Section 1, Subsection 2, above.

2. Deposit with COUNTY, upon execution of this Agreement, Fifty Thousand Dollars ($50,000) (the “Deposit”) to be counted towards CITY’S LOCAL SHARE.

3. Pay COUNTY twenty percent (20%) of CITY’S LOCAL SHARE, one hundred fifty-five thousand dollars ($155,000), upon completion of the PS&E phase of the PROJECT

4. Pay remaining balance of CITY’S LOCAL SHARE, six hundred twenty thousand dollars ($620,000), upon the commencement of the construction of the PROJECT, divided over three fiscal years, with each fiscal year payment being ($206,667).

5. Issue, at no cost to COUNTY or its contractors, upon proper application by COUNTY or COUNTY‘s contractor, an encroachment permit authorizing entry onto CITY's right-of-way to perform all surveys and other field activities required for preparation of the PS&E, utility coordination, right of way acquisition, and construction of the PROJECT.

6. Provide at no cost to COUNTY, a representative to coordinate with the COUNTY's Project Manager during the development and the construction of PROJECT, and to verify facilities are constructed as required by this Agreement.

7. Pay COUNTY for any final costs associated with the PROJECT that are excess of the CITY’S LOCAL SHARE as determined pursuant to Section 1, Subsection 12, above.

SECTION 3 • IT IS MUTUALLY AGREED AS FOLLOWS:

1. If upon opening of bids for construction of the PROJECT the bids indicate a cost overrun of no more than ten percent (10%) of the construction cost estimate will occur, as described in Exhibit “B”, COUNTY may

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Airport Boulevard Bridge Replacement Project
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29 award the contract.

2. If upon opening of bids it is found that a cost overrun exceeding ten percent (10%) of the construction cost estimate will occur, COUNTY and CITY shall endeavor to agree upon an alternative course of action. If, after fourteen (14) calendar days from the date of bid opening, an alternative course of action is not agreed upon, this Agreement shall be deemed to be terminated by mutual consent. COUNTY shall reimburse CITY with any unspent portion of the Deposit within forty-five (45) days of termination.

3. The total cost to complete PA&ED, PS&E documents, construction, Utility Relocation, Right-of-way acquisition, construction management, construction survey, inspection, material testing and construction support for PROJECT, including mobilization and a ten percent (25%) contingency, is estimated to be, twenty-four million six hundred ten thousand six hundred sixty-five dollar as detailed in “Exhibit A-1”. This estimated cost of the PROJECT will be funded, using Highway Bridge Program (HBP) funds, CVAG funds (as detailed in CVAG Contract No. CVAG-23-013), CITY’s LOCAL SHARE and County’s LOCAL SHARE as detailed in “Exhibit A-1”.

4. COUNTY shall not be obligated to commence services under this Agreement until after receipt of CITY's Deposit as required in Section 2, Subsection 2, above.

5. Construction by COUNTY of improvements referred to herein which lie within CITY rights of way shall not be commenced until an Encroachment Permit to COUNTY, or COUNTY's contractor, authorizing such work has been issued by CITY.

6. COUNTY shall cause COUNTY's contractor to maintain in force, until completion and acceptance of the PROJECT construction contract, a policy of Commercial Liability Insurance, including coverage of Bodily Injury Liability and Property Damage Liability, in the amount of $2,000,000 minimum single limit coverage, and a policy of Automobile Liability Insurance in the amount of $1,000,000 minimum. Endorsements to each policy shall be required which name CITY, its officers, agents and employees, as additionally insured.

COUNTY shall also require COUNTY's contractor to maintain Worker's Compensation Insurance.

COUNTY shall cause COUNTY’s contractor to provide Certificates of Insurance and Additional Insured Endorsements which meet the requirements of this section to CITY prior to the start of construction.

7. Ownership and title to all materials, equipment, and appurtenances installed as part of this Agreement will

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29 be automatically vested with the jurisdiction in which the improvements reside and no further agreement will be necessary to transfer ownership.

8. Each PARTY shall be responsible for the maintenance of the improvements provided by PROJECT that are located within that PARTY’S jurisdiction except as specified in this Agreement or future agreements.

9. No alteration or variation of the terms of this Agreement shall be valid unless made in writing and signed by all PARTIES and no oral understanding or agreement not incorporated herein shall be binding on each PARTY hereto.

10. Neither COUNTY nor any officer or employee thereof shall be responsible for any damage or liability occurring by reason of any act or omission of CITY under or in connection with any work, authority or jurisdiction delegated to CITY under this Agreement. It is further agreed that pursuant to Government Code Section 895.4, CITY shall fully indemnify and hold COUNTY harmless from any liability imposed for injury (as defined by Government Code Section 810.8) occurring by reason of any act or omission of CITY under or in connection with any work, authority or jurisdiction delegated to CITY under this Agreement.

11. Neither CITY nor any officer or employee thereof shall be responsible for any damage or liability occurring by reason of any act or omission of COUNTY under or in connection with any work, authority or jurisdiction delegated to COUNTY under this Agreement. It is further agreed that pursuant to Government Code Section 895.4, COUNTY shall fully indemnify and hold CITY harmless from any liability imposed for injury (as defined by Government Code Section 810.8) occurring by reason of any act or omission of COUNTY under or in connection with any work, authority or jurisdiction delegated to COUNTY under this Agreement.

12. In the event CITY defaults in the performance of any of its obligations under this Agreement or materially breaches any of the provisions of this Agreement, the COUNTY shall have the option to terminate this Agreement upon ninety (90) days written notice to the CITY.

13. If any provision in this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the same shall be deemed severable from the remainder of this Agreement, and the remaining provisions shall nevertheless continue in full force without being impaired or invalidated in any way.

14. This Agreement is to be construed in accordance with the laws of the State of California.

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29 15. Neither the CITY nor COUNTY shall assign this Agreement without the written consent of the other PARTY.

16. Any action at law or in equity brought by any of the PARTIES hereto for the purpose of enforcing a right or rights provided by this Agreement shall be tried in a court of competent jurisdiction in the County of Riverside, State of California, and the PARTIES hereto waive all provisions of law providing for a change of venue in such proceedings to any other county.

17. This Agreement is the result of negotiations between the PARTIES hereto, with the advice and assistance of their respective counsel. The fact that this Agreement was prepared as a matter of convenience by CITY or COUNTY shall have no importance or significance. Any uncertainty or ambiguity in this Agreement shall not be construed against the PARTY that prepared it in its final form.

18. Any waiver by COUNTY or CITY of any breach by any other PARTY of any provision of this Agreement shall not be construed to be a waiver of any subsequent or other breach of the same or any other provision hereof. Failure on the part of COUNTY or CITY to require from any other PARTY exact, full and complete compliance with any of the provisions of this Agreement shall not be construed as in any manner changing the terms hereof, or stopping COUNTY or CITY from enforcing this Agreement.

19. This Agreement and Exhibits A and B herein contain the entire agreement between the PARTIES, and are intended by the PARTIES to completely state the agreement in full. Any agreement or representation respecting the matters dealt with herein or the duties of any PARTY in relation thereto, not expressly set forth in this Agreement, is null and void.

20. Nothing in the provisions of this Agreement is intended to create duties or obligations to or rights in third parties not a party to this Agreement or affect the legal liability of any PARTY to the Agreement by imposing any standard of care with respect to the maintenance of roads different from the standard of care imposed by law.

21. CITY and COUNTY shall retain or cause to be retained for audit, all records and accounts relating to PROJECT for a minimum period of three (3) years from the date of Notice of Completion of the PROJECT.

22. This Agreement may be executed in any number of counterparts, each of which will be an original, but all of which together will constitute one instrument. Each PARTY to this Agreement agrees to the use of electronic signatures, such as digital signatures that meet the requirements of the California Uniform

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29 Electronic Transactions Act ((“CUETA”) Cal. Civ. Code §§ 1633.1 to 1633.17), for executing this Agreement. The PARTIES further agree that the electronic signatures of the PARTIES included in this Agreement are intended to authenticate this writing and to have the same force and effect as manual signatures. Electronic signature means an electronic sound, symbol, or process attached to or logically associated with an electronic record and executed or adopted by a person with the intent to sign the electronic record pursuant to the CUETA as amended from time to time. The CUETA authorizes use of an electronic signature for transactions and contracts among parties in California, including a government agency. Digital signature means an electronic identifier, created by computer, intended by the PARTY using it to have the same force and effect as the use of a manual signature, and shall be reasonably relied upon by the PARTIES. For purposes of this section, a digital signature is a type of "electronic signature" as defined in subdivision (i) of Section 1633.2 of the Civil Code.

23. All notices, demands, invoices, and other communications required or permitted hereunder shall be in writing and delivered to the following addresses or such other address as the PARTIES may designate:

COUNTY: CITY:

Riverside County Transportation Department City of Coachella Attn: Mark Lancaster Attn: Andrew Simmons
Director of Transportation City Engineer
4080 Lemon Street, 8th Floor 53990 Enterprise Way
Riverside, CA 92501 Coachella, CA. 92236
Phone: (951) 955-6740 Phone: (760) 398 - 5744
[Signature Page Follows]

Item 23.

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29 APPROVALS
COUNTY Approvals
RECOMMENDED FOR APPROVAL:

By_____________________________________

MARK LANCASTER
Director of Transportation
APPROVED AS TO FORM:

COUNTY COUNSEL

By_____________________________________

DANIELLE MALAND
Deputy County Counsel

APPROVAL BY THE BOARD OF SUPERVISORS
By_____________________________________
Chair, Riverside County Board of Supervisors
ATTEST:

By_____________________________________
KIMBERLY A. RECTOR
Clerk of the Board (SEAL)
CITY Approvals
APPROVED BY:

By___________________________________
DR. GABRIEL MARTIN
City Manager
APPROVED AS TO FORM:

By___________________________________

CARLOS CAMPOS
City Attorney
ATTEST:

By___________________________________

DELIA GRANADOS
City Clerk

Item 23.

STAFF REPORT
12/13/2023
TO: Honorable Mayor and City Council Members
FROM: Maritza Martinez, Public Works Director
SUBJECT: Establishment of an Equity and Social Justice Ad Hoc Subcommittee.

STAFF RECOMMENDATION:

Establishment of an Equity and Social Justice Ad Hoc Subcommittee.

EXECUTIVE SUMMARY:

On July 22, 2020, the City Council adopted Resolution 2020-45. This resolution affirmed the City’s intention to the establishment of a Special Committee on Equity and Social Justice. On May 24, 2023, City Council directed staff to recruit for up to a twelve member Equity and Social Justice AdHoc Subcommittee (renamed Social Equity and Public Safety Adhoc Subcommittee).

Staff has actively recruited and received the following applications:
 Marnie Navarro; Raices Culturas
 Karina Rodriguez; Desert Recreation District
 Eduardo Diaz; Senior Center
 Gabriel Hernandez; Senior Center
 Alianza Coachella Valley
 Deputy Yadira Perez; Riverside County Sheriff
 Laura Aguilera
 Olivia Rodriguez Mendez
 Bernardo Lino
 Steven Garcia
The feedback compiled from the Equity and Social Justice Subcommittee will help guide the City Council in the development of a City of Coachella Racial Equity Framework and Action Plan, which will be a valuable tool as the City Council considers alternatives to public safety service structures.

Attachments: Applications on file.

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Item 24.

STAFF REPORT
12/13/2023
TO: Honorable Mayor and City Council Members
FROM: Gabriel Perez, Development Services Department
SUBJECT: Authorize the City Manager to execute a memorandum of understanding (MOU) with the American Planning Association California Executive Board for planning technical assistance from the Community Planning Assistance Team (CPAT).

STAFF RECOMMENDATION:

Staff recommend that the City Council authorize the City Manager to execute a memorandum of understanding (MOU) with the American Planning Association California Executive Board for planning technical assistance from the Community Planning Assistance Team (CPAT).

BACKGROUND:

The City Council has discussed the need to improve aesthetics and target investments along the Cesar Chavez Street Corridor segment between 6th Street and Avenue 54. The Cesar Chavez Street segment is on the city’s busiest corridor and was previously named Harrison Street. The street was previously known as the U.S. Highway 99 as part of a major Highway through the Coachella Valley where needs of moving people driving vehicles was given significant attention over the needs of people that may not be in vehicles. Figure 1 identifies the appearance of Highway 99 in the 1940’s as a two-lane Highway with business that served many of the passing vehicles such as the CV Trading Post that sold fuel and dates to passerbys and the Covalda Date Company which operated a health food and date gift shop.

Cesar Chavez Street no longer serves as a major highway as the California State Route 86 connects the Imperial and Coachella Valleys. The Cesar Chavez Street segment includes a mix of commercial in-fill lots, older commercial buildings, and newer strip mall commercial development. Cesar Chavez Street is a primary arterial road that has not been constructed to it full right-of-way. The City prepared a report in February 2011 with the support of a Cal Trans grant entitled “Improving Neighborhood Connections Along Coachella’s Harrison Street Corridor” that developed a vision for the corridor that prioritize land use, safety and health and non-automobile transportation. The report resulted in a vision for the corridor that recommended new street design with opportunities for on-street parking, wider sidewalks, and safer pedestrian crossings. The report also resulted in very ambitious proposals including roundabouts at the intersections of Avenue 50 and Avenue 52 and redevelopment of older car-centric shopping centers into more

Item 25.
pedestrian scale centers. Many of the proposed pedestrian crossings in the study have been implemented to connect pedestrians in neighborhoods on both sides of the street.

The Harrison Street report recommendations have not been implemented in a comprehensive manner and at times have been ignored in the approval of new development projects and development of capital projects. The General Plan identifies this as Subarea 4 (Harrison Street Corridor) with a vision as a pedestrian-oriented mixed-use corridor with a diverse mix of retail, commercial and residential uses. The subarea polices include pursuing revitalization of the Corridor with a series of road improvements and requiring new development to follow the vision of the 2011 Harrison Street Corridor report. Staff believes it is time to revisit this report and develop a cohesive strategy for Corridor revitalization.

Figure 1: 1940’s Photo of Cesar Chavez Street from the Frasher Foto Postcard Collection DISCUSSION/ANALYSIS:

The Community Planning Assistance Team (CPAT) is a joint venture by the California Chapter of the American Planning Association (APA) and Planner Emeritus Network (PEN). Using their vast networks, the organizations bring together experienced planners and allied professionals to work collaboratively with public agencies and community stakeholders to provide planning expertise and technical assistance. APA has offered to provide the City of Coachella planning technical assistance for a priority planning issue in the City. Staff communicated that the planning assistance would be best applied to reimagining/revitalization of the Cesar Chavez Street segment between 6th Street and Avenue 54. The CPAT would include two on-site meeting in 2024 to include three professional planners and a designer. Costs to the City for the CPAT effort would mainly cover lodging, meals, mileage and meeting supplies. The planning effort would result in a final report that would serve the City for additional planning or implementation efforts. Staff

Item 25.
believes there is tremendous value to this efforts as similar efforts have resulted in strategic efforts in the City of La Quinta Highway 111 Corridor Study for reimagining the Highway 111 Corridor through the ULI technical assistance panel. The CPAT would initiate in 2024 and will include City Council, Planning Commission and community engagement with anticipated completion by Summer 2024.

Figure 2: Land Use vision for Cesar Chavez Street from 2011 Harrison Street Corridor Report
FISCAL IMPACT:

The CPAT effort would require an appropriation in the amount of $10,000, which mainly covers lodging, meals, mileage and meeting supplies for the CPAT. Pursuing this planning effort would position the City to obtain infrastructure grants and ensure future infrastructure investments result in maximum benefits for the Corridor.

ALTERNATIVES:

1. Authorize the City Manager to execute a Memorandum of Understanding with American Planning Association California Executive Board for planning technical assistance from the Community Planning Assistance Team (CPAT)

2. Continue this item and provide staff direction.

3. Decide not to pursue the CPAT and suggest alternatives.

RECOMMENDED ALTERNATIVE(S):

Staff recommends that the City Council approve Alternative #1 ATTACHMENTS:

1. Community Planning Assistance Program (CPAT) description

Item 25.

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Community
Planning
Assistance Program
(CPAT)

Item 25.

The American Planning Association (APA) California Chapter and Planner Emeritus Network (PEN) are pleased to offer a program that provides volunteer urban planning assistance to financially constrained municipalities and community groups throughout California and Baja California. Through the formation of a Community Planning Assistance Team (CPAT) consisting of experienced planners, allied professionals, and community experts, a dedicated team will work collaboratively with residents and community stakeholders to provide planning expertise and technical assistance. The program represents a professional and ethical commitment of APA California and PEN to foster community education, engagement, and empowerment and promote equitable, inclusive, healthy and sustainable California communities.

To suggest or discuss a potential community project: contact Hanson Hom, AICP, CPAT Coordinator, at [email protected] or submit a Community Request for Assistance Form. We will connect with you as soon as possible.

Program FAQs
What is the Origin of the PPage 322 rogram?
Item 25.

APA California’s Community Assistance Program, launched in 2016, is patterned after a similar program created by the national American Planning Association in 1995. Watch this two-minute video below for a program overview.
https://www.youtube.com/embed/W2S7dGjyp3o
What Projects Are Suitable for Community Assistance
The goal of the program is to provide value-added planning expertise to challenged communities. Proposals are welcomed from any community or organization that do not have sufficient resources to hire a consultant firm to tackle a multi-faceted planning problem or issue. A CPAT can fill this gap by offering pro bono professional services tailored to the specific needs of the community. Assistance can take various forms, such as community education and facilitation, planning advice and insights, technical assistance, or planning analysis. Possible outcomes can be a vision plan, strategy for achieving community goals, action or implementation plan, concept vision for transforming a commercial district or neighborhood, economic development strategy, or collaborative planning framework to resolve local issues.

What is the Role of the CPAT?
A team leader with expertise that best meets the needs of the community project will be identified. A multidisciplinary team of volunteer professionals will be assembled to work closely with community leaders. The CPAT will develop a project schedule and define the deliverables and final product. The planning process typically includes significant involvement of local stakeholders and broad community outreach. In discussions with the community partner, the process can be structured as a charrette or a series of workshops or meetings. (For 2021, meetings are expected to be virtual.) The CPAT will provide the community with a final product (typically a report in electronic form) and it will be published on the APA California website.

How Can I Volunteer on a CPAT?
A CPAT provides a venue for creative community service for APA California members. While services are pro bono, participation may qualify for AICP credit. Each team is selected based on the expertise needed to address the local community’s planning issues. Team members engage with community representatives in a short but intensive planning process. If you are a member of the APA California and wish to volunteer your services, please complete the CPAT Volunteer Form.

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How Are Projects Selected and Initiated?
Every request for assistance is carefully reviewed by a committee of APA California and PEN.

The evaluation considers community need, potential positive impact, and community readiness in terms of local leadership and community support. Meritorious proposals are recommended to the APA California Board of Directors for approval.

An agreement is then executed that outlines the responsibilities and expectations of the community partner and APA California. Reimbursements and possible sponsors to cover expenses (e.g., transportation, food, accommodations, facilities, materials, and technology support) will be addressed if applicable.

CPAT Project Reports
City of Marina CPAT Report
Revitalization Strategy for Downtown Kingsberg
Downtown Oxnard Action Priorities
Hughson Downtown Revitalization Project
APA Affiliate Organizations
California Planning FoundationCalifornia Planning RoundtablePlanner Emeritus Network (PEN)
PEN Programs and Events
APA California Community Assistance Program (CPAT)
Downtown Oxnard Action Priorities
Revitalization Strategy for Downtown Kingsburg
Community Assistance Program (CPAT) Volunteer Form
Community Request for Assistance Form
PEN Honor Award Winners
PEN Membership, Board Meetings, and Agendas
PEN Board Members
PEN Board Meeting Packets
Planners4Health

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Upcoming Events
Free Webinar: Hidden Pathways in Planning
Oct 13, 2022
Planning With, Not For: Inclusive & Community-Driven Planning in the Region — CM |

2.0 West Sacramento Community Center, West Sacramento CA 2443 Fair Oaks Blvd. #1177
Sacramento, California 95825
916.634.7287

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Item 25.

STAFF REPORT
12/13/2023
TO: Honorable Mayor and City Council Members
FROM: Anahi Fernandez, Management Analyst
SUBJECT: Adopt Resolution No. 2023-77, a Resolution of the City Council of the City of Coachella, California Authorizing the Amendment of the Cannabis Social Equity Program to Align with the State of California Equity Act.

STAFF RECOMMENDATION:

Staff recommends the City Council adopt Resolution No. 2023-77 to amend the Cannabis Social Equity Program to align with the State of California Equity Act of 2018.

BACKGROUND:

On March 27, 2019, the City Council approved the development and implementation of a local Cannabis Social Equity Program (CSEP) that would reduce the barriers of entry and participation for cannabis applicants and businesses that have been negatively impacted by the disproportionate law enforcement of cannabis related criminalization by providing them access to cannabis business development resources and small business support services. Since the implementation of the local program, the City of Coachella has applied for State grant funding authorized by the California Cannabis Equity Act of 2018 and has provided direct assistance to eligible local Cannabis Social Equity Program participants.

DISCUSSION/ANALYSIS:

The City of Coachella has administered its CSEP since its adoption in 2019. There are a total of five (5) CSEP participants in the City who have received program benefits such as; access to capital, technical assistance, legal assistance, workforce training, and regulatory compliance assistance.

In May 2023, the City received a memo from the Governor’s Office of Business and Economic Development (GO-Biz) identifying the program eligibility criteria to be overly inclusive and inconsistent with the California Cannabis Equity Act as two (2) City-adopted eligibility classifications did not align with the State as they do not require assisting persons convicted of a cannabis related offense as follows:

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 Classification 2: A current or former resident of the City of Coachella who has lived in a low-income household for at least five (5) years, between the years of 1908 and 2018.

Annual family income must be at or below 80 percent of the Area Median Income (AMI) and net worth below $250,000.
 Classification 3: A cannabis business with not less than 51% ownership by individuals meeting Classification 1 or 2 criteria that their business resides within the City of Coachella. If no such individual exists, individuals meeting Classification 1 or 2 criteria from other applicable areas may be utilized.

The City proposes to modify its CSEP that limits assistance to those who have been harmed by cannabis criminalization from 1980-2016 AND have experienced or are experiencing poverty to comply with the California Cannabis Equity in order to continue its eligibility from the State’s Cannabis Equity Grant Program.

Due to the limited amount of people inquiring about the City’s CSEP and for consistency with Minority Cannabis Business Association model ordinances utilized throughout California, staff is proposing to expand the program to current Coachella Valley residents with a prior cannabis arrest or offense and are interested in starting a cannabis business in the City of Coachella. This will allow Coachella Valley individuals or businesses to expand the local industry and increase revenue to the City. Table 1 below displays the proposed amendments to the current Cannabis Social Equity Program eligibility criteria. Attachment 2 also highlights these amendments.

Table 1: Proposed City of Coachella Cannabis Social Equity Program Amendments CSEP Eligibility Criteria (Proposed modifications in Bold) Individual Program
Eligibility
Classification 1 A current or former resident of the City of Coachella who previously resided or currently resides in a low-income household and was either: a) arrested or convicted for a cannabis related crime in the State of California between the years of 1980 and 2016; or is b) an immediate family member of an individual in subsection a of Classification

1. Individual Program
Eligibility
Classification 2 A current resident of the Coachella Valley who previously resided or currently resides in a low-income household and was arrested or convicted for a cannabis
related crime in the State of California between the
years of 1980 and 2016. Annual family income must be
at or below 80 percent of the Area Median Income (AMI)
and net worth below $250,000.

Businesses Program
Eligibility
Tier 1 A cannabis business with not less than 51% ownership by individuals meeting Classification 1 criteria (Coachella) that their business resides within the City of Coachella Businesses Program
Eligibility
Tier 2 A cannabis business with not less than 51% ownership by individuals meeting Classification 2 (Coachella Valley)

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and that their business resides within the City of
Coachella.

Businesses Program
Eligibility
Tier 3 A Cannabis Incubator Business who commits to
incorporating the Cannabis Social Equity Program
Participant within its operations for receiving priority processing.

Under the amended CSEP, only two (2) current CSEP participants would fall under the new eligibility criteria, but if the amendments are approved, all five (5) participants will be grandfathered in as they were found eligible before program changes were made. The existing CSEP participants include Greenery, Coachella Releaf, and Pueblo Cannabis. GO-Biz would continue to allow current social equity program participants to be eligible for future Go-Biz funding. Staff will also work on conducting outreach through social media platforms and by establishing workshops.

FISCAL IMPACT:

The next application deadline for the GO-Biz Cannabis Equity Grants Program for local jurisdictions is December 14, 2023. The proposed CSEP amendments would position the City to continue to receive future grant funding of up to $500,000 to support the City’s Cannabis Social Equity Program.

ALTERNATIVES:

1. Adopt Resolution No. 2023-77 with amendments as proposed.

2. Adopt Resolution No. 2023-77 as proposed, but limit to only City of Coachella residents.

3. Adopt Resolution No. 2023-77 with additional City Council recommendations/modifications.

4. Deny Resolution No. 2023-77 and proposed amendments.

RECOMMENDED ALTERNATIVE(S):

Staff recommends that the City Council approve Alternative #1 ATTACHMENTS:

1. Resolution No. 2023-77

2. CSEP Proposed Amendments

3. GO-Biz Local Equity Program Review Memo

4. Minority Cannabis Business Association (MCBA) – Ten Model Municipal Social Equity Ordinances

Item 26.

RESOLUTION NO. 2023-77

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

COACHELLA, CALIFORNIA AUTHORIZING THE AMENDMENT OF

THE CANNABIS SOCIAL EQUITY PROGRAM TO ALIGN WITH THE

STATE OF CALIFORNIA EQUITY ACT
WHEREAS, on January 27, 2016, the City Council passed and adopted Ordinance No. 1083, which established a regulatory permit process for medical cannabis cultivation, manufacturing, distribution, testing and transportation facilities; and, WHEREAS, on November 8, 2016, the People of the City of Coachella passed, approved and adopted Ordinance No. 1101 "Measure II", which established a tax on cannabis business operations within the City of Coachella; and,
WHEREAS, on November 9, 2016, California voters approved Proposition 64, the Control, Regulate and Tax Adult Use of Marijuana Act ("AUMA"); and, WHEREAS, on April 26, 2017, the City Council passed and adopted Ordinance No. 1103, which established amendments to the City's municipal code and regulations for the industrial park overlay zone; and,
WHEREAS, on June 27, 2017, Senate Bill 94, signed by the Governor, reconciled the standards for medical marijuana with the standards for adult-use cannabis activity under a single law, entitled Medical and Adult-Use Cannabis Regulation and Safety Act ("MAUCRSA"); and, WHEREAS, on July 12, 2017, the City Council passed and adopted Ordinance No. 1108 and 1109, which established amendments to the City's municipal code and regulations to allow commercial cannabis activity zoning and regulatory permits; and WHEREAS, on February 14, 2018, the City Council passed and adopted Ordinance No. 1115, which established and regulated the retail cannabis overlay zone; and WHEREAS, on March 27, 2019, the City Council passed and adopted Resolution No. 2019-15, authorizing the implementation of the Cannabis Social Equity Program, which is designed to assist individuals who have been negatively impacted by the disproportionate enforcement of cannabis-related crimes by providing them assistance and opportunity to participate in the cannabis industry; and
WHEREAS, the Program has contributed to the City cannabis tax revenue and has supported the revitalization of neighborhoods and new businesses development through the reinvestment of funds and the establishment of business owned by Program participants.

WHEREAS, the Program has had access to various resources and support for the development of cannabis-related business plans, workforce development and business education, job training, mentoring, technical assistance, regulatory compliance, priority processing of Program applicants permit applications, and assistance with the expungement of criminal

Item 26.

Resolution No. 2023-77

records; and
WHEREAS, Program participants have benefitted from a zero-dollar fee for cannabis permit fees, The City may set fees at less than full recovery to ensure program access and viability;
WHEREAS, revisions to the City of Coachella Cannabis Social Equity Program are necessary to enable to the City of Coachella to remain eligible for grant funding authorized by the California Equity Act of 2018; and

NOW, THEREFORE, BE IT RESOLVED, DETERMINED, AND
ORDERED by the City Council of the City of Coachella, as follows:

Section 1. Incorporation of Recitals. The City Council hereby finds and determines that the foregoing Recitals of this Resolution are true and correct and hereby incorporated into this Resolution as though fully set forth herein.

Section 2. This resolution establishes a modification to the current Cannabis Social Equity Program eligibility criteria that aligns with the California Equity Act of 2018.

Section 3, City staff will continue to monitor and evaluate the Program to address any disparate, negative impacts of cannabis-related regulations and enforcement within the City of Coachella.

Section 4. The City Manager, or the City Manager's designee, is authorized to select a vendor to facilitate the Program on behalf of the City through the City's competitive selection process in accordance with the City Municipal Code.

Section 5. The City Manager, or the City Manager's designee, is authorized to make amendments that are not substantive to the Program. Substantive amendments must be approved by resolution of the City Council.

Section 6. Excess revenue from cannabis-related business operations tax shall be utilized to recover the associated cost of processing business permits for qualified Program participants by the City.

Section 8. The resolution shall be effective on December 13, 2023.

Item 26.

Resolution No. 2023-77

PASSED APPROVED and ADOPTED this 13th day of December 2023 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
______________________________
Steven A. Hernandez
Mayor
ATTEST:
______________________________
Angela M. Zepeda
City Clerk
APPROVED AS TO FORM:
_____________________________
Carlos Campos
City Attorney

Item 26.

Resolution No. 2023-77

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

CITY OF COACHELLA )
I HEREBY CERTIFY that the foregoing Resolution No. 2023-77 was duly adopted by the City Council of the City of Coachella at a regular meeting thereof, held on this 13th day of December 2023 by the following vote of the City Council:

AYES:

NOES:

ABSENT:

ABSTAIN:
___________________________________
Delia Granados
Deputy City Clerk

Item 26.

APPENDIX 1
(Adopted by City Council Resolution No. 2019-15)

CITY OF COACHELLA
Cannabis Social Equity Program
The City of Coachella will establish a pilot sSocial eEquity pProgram is dedicated to aiding individuals and businesses that were negatively or disproportionately impacted by cannabis criminalization within the City of Coachella. The goal of the program will be to allow participants to gain entry and successfully operate in the State of California's regulated cannabis marketplace and economy.

Attachment 2

Item 26.
3/20/2019

CITY OF COACHELLA
Cannabis Social Equity Program

1. PROGRAM PURPOSE:

The Cannabis Social Equity Program ("Program") will reduce the barriers of entry and participation for applicants and businesses that have been negatively impacted by the disproportionate law enforcement of cannabis related criminalization by providing them access to cannabis business development resources and small business support services.

This program will make a cognizant effort to provide technical assistance and services to those persons from economically disadvantaged communities that experienced high rates of poverty or communities most harmed by cannabis prohibition, regardless of economic status, gender, racial, cultural background and criminal history. Although City of Coachella funding for the Program shall expire in two years from the date of adoption, the Program's definition, eligibility, processing, benefits, features and functions shall remain intact as policy.

2. REVIEW PROCESS:

The City Manager or their designee shall review and approve all Program applications that meet the eligibility requirements described in Section 3 below. If an application is denied, that applicant may appeal to the City for further evaluation and a final determination.

3. PROGRAM ELIGIBILITY:

An applicant must provide documentation, as described in Section 4 below that sufficiently demonstrates that the applicant satisfies any one of the following Classifications to be verified as a Social Equity Individual:
a. Individuals: An individual that is eligible to participate in the Program must be lawfully able to work in the United States and be Twenty-One (21) years of age or older. They must satisfy a Classification below as well:
i. Classification 1. A current or former resident of the City of Coachella who previously resided or currently resides in a low-income household and was either: a) arrested or convicted for a cannabis related crime in the State of CaliforniaCity of Coachella between the years of 1980 and 20161; or is b) an immediate family member of an individual in subsection a of Classification 1 or Classification 2.
ii. Classification 2. A current or former resident of the Coachella Valley City of Coachella who previously resided or currently resides has lived in a low-income household and was arrested or convicted for a cannabis related crime in the State of California between the years of 1980 and 2016. for at least five (5) years, between the years of 1908 and 2018. Annual family income must be at or below 80 percent of the Area Median Income (AMI) and net worth below $250,000.

Attachment 2

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3/20/2019
2 b. Businesses: A cannabis business that is eligible to participate must provide a description of a statutory entity or business form that will serve as the legal structure for the applicant and a copy of its formation and organizing documents, including, but not limited to, articles of incorporation, certificate of amendment, statement of information, articles of association, bylaws, partnership agreement, operating agreement and fictitious business name statement. They must satisfy a Classification below as well:
i. Tier 1. A cannabis business with not less than 51% ownership by individuals meeting Classification 1 criteria (Coachella) that their business resides within the City of Coachella.
ii. Tier 2. A cannabis business with not less than 51% ownership by individuals meeting Classification 2 (Coachella Valley) and that their business resides within the City of Coachella.
iii. Tier 3. A Cannabis Incubator Business that meets the following commitments below:

1. Commits a minimum of 20% of its business to serve as an incubator to host verified participants of the Coachella Social Equity Program, giving the participants the ability to utilize the licensed business to engage in commercial cannabis activities:

2. Commits a minimum 20% of its workforce are City of Coachella residents, measured by hours worked; and reserves contracts of its cannabis products or services and ancillary business support with eligible participants.

For a business to be deemed Tier 1 or Tier 2, an owner must be verified as a Social Equity Participant and own a minimum of 51 % of the Cannabis Business. Cannabis Businesses may qualify for one of three tiers of the Cannabis Social Equity Program. Tier 1 and 2 participants must own 51 percent of a cannabis business and demonstrate continuous participation, control, and equity distribution. They may receive waived licensing fees, access to loans or grants, technical assistance, etc. Tier 3 participants must incubate or fund verified social equity individual. All participants receive priority review and processing of their local licensing applications.

Grant eligibility will be determined by program and limits will be established by tiers. Grant programs will be made each year the City of Coachella is awarded with Cannabis Equity Grant funding from the California Governor’s Office of Business and Economic Development. The programs will be established to provide grants for education, start-up, or ongoing costs depending Attachment 2

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3/20/2019
3 on the status of the participants’ project.
i. Classification 3. A cannabis business with not less than 51% ownership by individuals meeting Classification 1 or 2 criteria that their business resides within the City of Coachella. If no such individual exists, individuals meeting Classification 1 or 2 criteria from other applicable areas may be utilized. ii.
iii. Classification 4. A Cannabis Incubator Business or a Cannabis Social Enterprise with not less than 51% ownership by individuals meeting Classification 1 or 2 criteria.

4. DOCUMENTATION AND REVIEW:

An applicant shall provide the following with its application for the Program, in addition to any other documentation that the City of Coachella deems necessary to determine the applicant's eligibility:
a. Proof of Income. Proof of income shall be supported with federal and state tax returns and at least one of the following documents from the last five (5) years: two months of pay stubs; proof of current eligibility for General Assistance, food stamps, Medi-Cal/CalWORKs, supplemental security income, or social security disability, or similar documentation.
b. Proof of residency. Proof of residency shall be supported by a minimum of two of the following documents: California driver's or identification card records, property tax billings and payments, signed rental agreement, verified copies of state or federal tax returns with an address in the geographic area of the city of Coachella, school records, medical records, banking records, Coachella Housing Authority records, or utility, cable, or internet company billing and payment records. c. Proof of arrest or conviction of a cannabis related crime. Proof of an arrest or conviction of a cannabis related crime shall be demonstrated by federal or state court records indicating the disposition of the criminal matter, records expungement documentation, or any other applicable law enforcement record.

Attachment 2

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4 5. PARTICIPANT BENEFITS:

General program benefits may include but are not limited to: business plan development, business mentoring, assistance securing capital, business needs assessment, loan readiness assessment, market assessment, data and research strategies and support, assistance with establishing a legal entity, assistance with criminal records expungement, lease negotiation assistance, small business legal considerations, mentoring, fiscal management, marketing/social media, technical training, employee training, and regulatory compliance.

The City will also work with local partners and stakeholders to develop a workforce development educational program to assist with a creation of a well- trained, qualified and diverse workforce, including transitional workers. A program participant shall be entitled to receive the following benefits based on eligibility:
i. All business support services offered under the program; ii. The City will provide priority processing of the participant's cannabis related business and conditional use permit;
iii. The City will waive all fees associated with participants cannabis related business permit;
iv. The City shall provide assistance with State and City regulatory compliance;. iv.v. Tiered business grant or loan opportunities.

6. CONDITION ON CANNABIS BUSINESS OPERATION PERMIT:

Program participants are required to continue, maintain, and carry out their respective eligibility requirements through the term of their respective cannabis business operations permit. Compliance with this section 6 shall be a condition of participants respective cannabis business operations permit, such that failure to comply with this section 6 shall be grounds to deny, suspend, or revoke such cannabis business operations permit pursuant to City of Coachella Municipal Code.

7. PROGRAM MONITORING AND REPORTING:

The Office of the City Manager shall provide bi-annually updates to the City Council on the status of the Program, including number of participants, participant success measured by the number of participants either ready to obtain or that have obtained a cannabis business operating permit. The City will reevaluate and update the Program when data becomes available or known to it that may expand the eligibility and benefits of the program; including, but not limited to, an analysis of disproportionate impacts within census tracts. Additionally, the report should include an evaluation of any ongoing barriers to entry and participation, any reevaluations of the Program, and recommend solutions as needed to advance equity and accomplish the City of Coachella's goals, which, includes achieving 50 percent of all cannabis business permits awarded to Program participants.

Attachment 2

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5 8. DEFINITIONS:
a) "Eligible local jurisdiction" means a local jurisdiction that has adopted or operates a local equity program.
b) "Local equity applicant" means an applicant who has submitted, or will submit, an application to a local jurisdiction to engage in commercial cannabis activity within the jurisdictional boundaries of that jurisdiction and who meets the requirements of that jurisdiction's local equity program.
c) "Local equity licensee" means a person who has obtained a license from a local jurisdiction to engage in commercial cannabis activity within the jurisdictional boundaries of that jurisdiction and who meets the requirements of that jurisdiction's local equity program.
d) "Local equity program" means a program adopted or operated by a local jurisdiction that focuses on inclusion and support of individuals and communities in California's cannabis industry who are linked to populations or neighborhoods that were negatively or disproportionately impacted by cannabis criminalization. e) "Local jurisdiction" means a city, county, or city and county. f) "State commercial cannabis license" means a license issued pursuant to the Medicinal and Adult-Use Cannabis Regulation and Safety Act by the Bureau, the California Department of Public Health, or the California Department of Food and Agriculture.
g) "Transitional worker" means a person who, at the time of starting employment at the business premises, resides in a ZIP Code or census track area with higher than average unemployment, crime, or child death rates, and faces at least one of the following barriers to employment: (1) is homeless; (2) is a custodial single parent; (3) is receiving public assistance; (4) lacks a GED or high school diploma; (5) has a criminal record or other involvement with the criminal justice system; (6) suffers from chronic unemployment; (7) is emancipated from the foster care system; (8) is a veteran; or (9) is over 65 years of age and is financially compromised. h) “Cannabis Incubator Business” means a City of Coachella cannabis business which has committed to incorporating the Cannabis Social Equity Program Participant within its operations for receiving priority processing.

Attachment 2

Item 26.
1325 J Street, 18th FLOOR, SACRAMENTO, CALIFORNIA 95814 Date: May 12, 2023
From: William Koch
Deputy Director, Community and Local Equity Grants Unit California Governor's Office of Business and Economic Development 1325 J Street, 18th Floor
Sacramento, CA 95814
To: Celina Jimenez, Grants Manager
City of Coachella
59930 Enterprise Way
Coachella, CA 92235
RE: Cannabis Equity Grants Program for Local Jurisdictions – Local Jurisdiction Program Criteria Review Dear Celina Jimenez:

The Governor’s Office of Business and Economic Development (GO-Biz) administers the Cannabis Equity Grants Program for Local Jurisdictions(CEG Program), which was created by the California Cannabis Equity Act (Stats. 2018, Ch. 794; Bus. & Prof. Code § 26240 et seq.). As an increasing number of local jurisdictions have created cannabis equity programs each year and seek funding through the CEG Program, GO-Biz has identified an increasing need to ensure local equity program criteria are aligned with the California Cannabis Equity Act and not overly inclusive. Beginning with CEG Program applications submitted in the fall of this year, 2023, GO-Biz will place additional emphasis on the screening of local equity program criteria.

The California Cannabis Equity Act includes the following summarized declarations and findings:
• Cannabis prohibition had a devastating impact on communities across California and the United States. Persons convicted of a cannabis offense and their families suffer the long-term consequences of prohibition. These individuals have a more difficult time entering the newly created adult-use cannabis industry due, in part, to a lack of access to capital, business space, technical support, and regulatory compliance assistance. • The collateral consequences associated with cannabis law violations, coupled with generational poverty and a lack of access to resources, make it extraordinarily difficult for persons with convictions to enter the newly regulated industry.
• It is the intent of the Legislature in enacting this act to ensure persons most harmed by cannabis criminalization and poverty be offered assistance to enter the multibillion-dollar cannabis industry.

Attachment 3

Item 26.

GO-Biz has conducted a review of the City of Coachella’s cannabis equity program and has identified the following eligibility criteria that appear to be overly inclusive/inconsistent with the California Cannabis Equity Act:

Classification 2
• A current or former resident of the City of Coachella who has lived in a low-income household for at least five (5) years, between the years of 1908 and 2018. Annual family income must be at or below 80 percent of the Area Median Income (AMI) and net worth below $250,000.

Classification 3
• A cannabis business with not less than 51% ownership by individuals meeting Classification 1 or 2 criteria that their business resides within the City of Coachella. If no such individual exists, individuals meeting Classification 1 or 2 criteria from other applicable areas may be utilized.

As indicated previously in this memo, beginning with CEG Program applications submitted in the fall of this year, GO-Biz will be placing additional emphasis and screening of local equity program criteria.

Jurisdictions with cannabis equity program criteria deemed by GO-Biz as overly inclusive/inconsistent with the California Cannabis Equity Act may be ineligible for funding through the CEG Program or have contractual restrictions and limitations placed on how CEG Program funding provided by GO-Biz may be utilized.

If you would like technical assistance with respect to revising your jurisdiction’s cannabis equity program criteria, please do not hesitate to contact your CEG Program Grant Supervisor Katie Raley, at [email protected]
Respectfully,
William Koch
Deputy Director
Community and Local Equity Grants Unit
California Governor's Office of Business and Economic Development Attachment 3

Item 26.

Minority Cannabis Business Association
Ten Model Municipal Social Equity Ordinances
July 1, 2019

PREFACE
These Ten Model Municipal Social Equity Ordinances (“Model Ordinances”) may each be considered and adopted individually, or collectively as a whole. Note that each of the Model Ordinances may be considered and adopted as standalone-ordinances or in any combination as well. Model Ordinance Number 1 contains the core elements of a social equity licensing program; Model Ordinance Numbers 2-10 do not require a social equity licensing program to exist. Any local ordinance which licenses and regulates commercial cannabis activity is sufficient to adopt Model Ordinance Numbers 2, 3, 4, 6, 7, and 9, and Model Ordinance 5, 8, and 10 are adoptable with or without any local licensing ordinance at all.

Most of the Model Ordinances are intended to be used by municipalities that have adopted ordinances to regulate, zone and license local cannabis businesses, or are currently considering draft ordinances to do so. As such, these Model Ordinances do not include recommended provisions for general license types (other than to add license types that lower barriers to entry or mitigate on-going criminalization of cannabis consumption), nor do they include detailed zoning and land use provisions. The drafters of these Model Ordinances assume those provisions are already incorporated within the adopting municipality’s general licensing ordinance, and that the general licensing ordinance already reflects the particular circumstances of its local community.

We also assumed that the types of licenses which may be available, and the general regulatory framework surrounding cannabis businesses will be largely predetermined by the state in which the adopting local jurisdiction sits. As such, these Model Ordinances contain only those provisions necessary to create a baseline framework for adopting and advancing social equity in the cannabis industry as official public policy -- a “minimum viable product” designed to be broadly adopted, but tailored as necessary by each adopting jurisdiction according to its needs and prerogatives. Prevailing political realities in each jurisdiction will vary, and these Model Ordinances include [bolded and MCBA Model Municipal Social Equity Ordinance Drafting Committee: Khurshid Khoja, MCBA Policy Committee Co-chair, Principal, Greenbridge Corporate Counsel, NCIA Board Vice Chair; Chloe Grossman, MCBA Policy Committee, NCIA Policy Council, Alkhemist Holdings Inc.; Jesse Stout, Greenbridge Corporate Counsel; Rodney Holcombe, Drug Policy Alliance 1 Attachment 4

Item 26.

Minority Cannabis Business Association
Model Municipal Social Equity Ordinances
July 1, 2019
bracketed] terms that may be revised as necessary--either to achieve passage of a minimum framework and/or create a more robust framework than the baseline presented herein. (Note that certain placeholder terms have also been bracketed where input from the specific local jurisdiction adopting the model ordinance is required--e.g., “[CITY/COUNTY]”, “[INSERT DATE HERE]”, etc.)
It is important to note that the MCBA Model Municipal Social Equity Ordinance Drafting Committee (“Drafting Committee,” identified in the footer) started with the basic framework of the RESPECT Resolution, House Resolution 943 introduced by Congresswoman Barbara Lee in 2018, adopting its recitals and creating legislative language around the various best practices recommended by the RESPECT Resolution. We also borrowed liberally from social equity ordinances in development in Los Angeles, Oakland, San Francisco and Sacramento, attempting to improve upon these pioneering works with the benefit of hindsight.

The Drafting Committee finalized this version of the Model Ordinance after incorporating input received on two previous working drafts. The First Discussion Draft was previously circulated in October 2018 and presented to the attendees of the MCBA Policy Summit, as well as the members of the MCBA Policy Committee and the MCBA Board of Directors. Their input was incorporated by the Drafting Committee into the Second Discussion Draft. The Second Discussion Draft was circulated for input to the MCBA Board of Directors, the NCIA Policy Council staff, Drug Policy Alliance staff as well as other select stakeholders for additional input before being finalized into a single Model Ordinance in March 2019. After additional feedback from state and local policymakers, the Drafting Committee made further revisions to split the single Model Ordinance into several shorter ordinances in order to foster speedier adoption on a wider scale.

Finally, please note that these Model Ordinances are intended to be living documents that can be continually improved upon. The Drafting Committee invites any and all input on the Model Ordinances, and expects to publish updated versions of the Model Ordinances periodically.
805 SW Broadway Suite 2400 • Portland, OR 97205 • United States www.minoritycannabis.org • [email protected]
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Item 26.

Minority Cannabis Business Association
Model Municipal Social Equity Ordinances
July 1, 2019

EXECUTIVE SUMMARY
Model Ordinance No. 1: Cannabis Social Equity Licensing Program ● This ordinance defines Equity Program eligibility based on several demographic factors. “Low Income” means below 80% AMI. “Member of an Impacted Family” means arrested or convicted for a cannabis charge. “Resident of a Disproportionately Impacted Area” means someone who lived in an area with disproportionately high cannabis arrests.
● The diversely-representative Cannabis Social Equity Commission will provide ongoing advice to the local government about implementation of the Municipal Social Equity Ordinance and administration of the Cannabis Social Equity Fund. ● The Cannabis Social Equity Fund will financially support Social Equity Program participants through workforce development, start-up costs, consulting services and technical assistance.
● The Social Equity Study will identify “Disproportionately Impacted Areas”, areas with high cannabis arrest rates used for the ordinance’s equity eligibility criteria. ● Individuals may qualify for one of three tiers of the Social Equity Program. Tier 1 and 2 participants must own a percentage of a cannabis business and demonstrate financial need to participate. They receive waived licensing fees, access to loans/grants, technical assistance, etc. Tier 3 participants must incubate or fund Tier 1 or 2 participants. All participants receive priority review and processing of their local licensing applications.
● Tier 1 and 2 participants will also have access to low-interest (or no-interest) loans for operating capital, Social Equity Fund grants, incubation opportunities from Tier 3 participants, and fee waivers.
● Tier 1, Tier 2, and Tier 3 participants will have their applications reviewed in order of their tier, with General Applicants (non-Equity Program) last. The local government will review applicants’ business documents on an ongoing basis to confirm their continuing eligibility.

Model Ordinance No. 2: Equity in Cannabis Industry Employment Opportunities ● This ordinance requires licensees to use good-faith efforts in hiring employees who meet the equity eligibility criteria, and certify annually that 25% of their employees meet the criteria or that they have used good-faith efforts to achieve that 25% threshold.

Model Ordinance No. 3: Cannabis Industry Community Benefits Agreements ● The local government may add requirements that applicants enter Community Benefit Agreements, which may or may not apply to equity applicants a well. 805 SW Broadway Suite 2400 • Portland, OR 97205 • United States www.minoritycannabis.org • [email protected]
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Model Municipal Social Equity Ordinances
July 1, 2019
Neighborhood councils may request non-monetary contributions from applicants, and/or funds up to 3% of net profits.

Model Ordinance No. 4: Reinvestment of Local Cannabis Fees and Taxes into Communities
● This ordinance would dedicate a percentage of local cannabis tax and non-licensing fee revenue to support a Community Reinvestment Fund to, at a minimum, provide reentry services, job training, and criminal record-change assistance to residents of Disproportionately Impacted Areas.

Model Ordinance No. 5: Reducing Barriers to Entry into the Cannabis Industry ● This ordinance bars local governments from discriminate against licensing applicants on the basis of their substance use treatment history, or convictions unrelated to honesty (e.g., fraud, deceit, embezzlement), and background checks can only be used to check for these convictions.

Model Ordinance No. 6: Data Collection to Build an Equitable Cannabis Industry ● This ordinance would authorize data collection by the regulating agency to inform future equity plans. The regulating agency will be authorized to collect and publish demographic data on licensure applicants and licensees, persons cited, arrested, or convicted for marijuana law violations, and on the cannabis workforce.

Model Ordinance No. 7: Permitting Cannabis Consumption Lounges ● This ordinance creates a basic framework for permitting cannabis consumption lounges, while leaving specific zoning requirements to local governments. Local governments are authorized to regulate consumption lounges where cannabis may be used on-site, but no more restrictively than state law regulates them.

Model Ordinance No. 8: Resentencing and Record Expungement for Cannabis Offenses
● This ordinance authorizes local government to facilitate resentencing and expungement to restore the civil rights of prior cannabis arrestees, and to fund these efforts through cannabis business taxes. This can include automation, fee waivers, and funding legal fairs and lawyers to publicize and execute these changes.

Model Ordinance No. 9: Making Cannabis Offenses the Lowest Law Enforcement Priority
805 SW Broadway Suite 2400 • Portland, OR 97205 • United States www.minoritycannabis.org • [email protected]
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Minority Cannabis Business Association
Model Municipal Social Equity Ordinances
July 1, 2019
● This ordinance instructs and authorizes local law enforcement to de-prioritize cannabis investigations (except as conducted in conjunction with licensing authorities) and arrests. The possession or smell of cannabis will no longer constitute probable cause for investigation or arrest.

Model Ordinance No. 10: Eliminating Suspicionless Drug Testing ● This ordinance prohibits employers from drug-testing workers who are not in safety-sensitive jobs, without reasonable documented cause; random drug-testing is prohibited.

The text of the Ten Model Ordinances begin on the next page. 805 SW Broadway Suite 2400 • Portland, OR 97205 • United States www.minoritycannabis.org • [email protected]
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Item 26.

Minority Cannabis Business Association
Model Municipal Social Equity Ordinances
July 1, 2019
MODEL ORDINANCE NO. 1: CANNABIS SOCIAL EQUITY LICENSING

PROGRAM

ORDINANCE TEXT
Whereas the communities that have been most harmed by cannabis prohibition are benefiting the least from the legal marijuana marketplace; Whereas a legacy of racial and ethnic injustices, compounded by the disproportionate collateral consequences of 80 years of cannabis prohibition enforcement, now limits participation in the industry;
Whereas 33 States and the District of Columbia have adopted laws allowing legal access to medicinal cannabis, and 11 States and the District of Columbia have adopted laws legalizing cannabis for adult use;
Whereas legal cannabis sales totaled $12.2 billion in 2018 and are projected to surpass $50 billion by 2026;
Whereas it is estimated that less than 1 percent of the cannabis industry is owned or operated by people of color;
Whereas applicants for cannabis licenses are limited by numerous laws, regulations, and exorbitant permit applications and licensing fees in these States, which can total more than $700,000;
Whereas historically disproportionate arrest and conviction rates make it particularly difficult for people of color to enter the legal cannabis marketplace, as most States bar these individuals from participating;
Whereas Federal law severely limits access to loans and capital for cannabis businesses, disproportionately impacting minority small business owners; and Whereas some States and municipalities have taken proactive steps to mitigate inequalities in the legal cannabis marketplace and ensure equal participation in the industry.

NOW, THEREFORE, THE PEOPLE OF THE [CITY] [AND] [COUNTY] OF ___________, [STATE] DO ENACT AS FOLLOWS:

SECTION 1: SHORT TITLE
805 SW Broadway Suite 2400 • Portland, OR 97205 • United States www.minoritycannabis.org • [email protected]
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Item 26.

Minority Cannabis Business Association
Model Municipal Social Equity Ordinances
July 1, 2019
This ordinance shall be known and may be cited as the [ENTER MUNICIPALITY NAME] Cannabis Social Equity Act of 20[__] (hereinafter, this “Act”).

SECTION 2: CANNABIS SOCIAL EQUITY PROGRAM
A. In addition to the definitions in [INSERT CITATION TO GENERAL MUNICIPAL CANNABIS LICENSING ORDINANCE] (the “Local Licensing Ordinance”), the following definitions apply within this Act:

1. “Dependent” has the same meaning ascribed to it by the Internal Revenue Service for individual income tax purposes and is determined by satisfaction of either the qualifying child tests or qualifying relative tests described in the most current version of the annual IRS Tax Guide for Individuals.

2. “Low Income” means an individual who currently (at the time of licensing) lives in a household with household income that is less than eighty percent (80%) of the current fiscal year median family income for the county of residence, as determined by the United States Department of Housing and Urban Development or its successor agency.1 2

3. “Member of an Impacted Family” means an individual who, in the previous tax year, had a parent, legal guardian, child, spouse, or dependent, or was a dependent of an individual who, prior to [EFFECTIVE DATE OF LEGALIZATION MEASURE], was arrested for, convicted of, or adjudged to be a ward of the juvenile court for any non-violent crime under the laws of [STATE] or any other jurisdiction relating to the sale, possession, use, cultivation, manufacture, or transport of cannabis.3

4. “Prior Controlled Substance Record” means to have been arrested for, convicted of, or adjudged to be a ward of the juvenile court for any crime under the laws of [INSERT STATE] or any other jurisdiction relating to the sale, possession, use, cultivation, manufacture, or transport of a controlled substance prior to [EFFECTIVE DATE OF LEGALIZATION].
1 A locality should provide the link to HUD’s annual median family income figures as soon as reasonably practicable following annual publication. See here: https://www.huduser.gov/portal/datasets/il.html 2 Some states annually produce alternative low income figures that are adjusted based on factors deemed relevant by the state, such as cost of living, housing costs, and state income tax deductions. Where available, annually published state low income figures that are based on median family income but are further adjusted should be employed in the definition of low income instead of HUD’s median family income figures. 3 Localities may consider expanding to include family members with any arrest or conviction for any non-violent and/or controlled substance crime.
805 SW Broadway Suite 2400 • Portland, OR 97205 • United States www.minoritycannabis.org • [email protected]
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Minority Cannabis Business Association
Model Municipal Social Equity Ordinances
July 1, 2019

5. “Resident of a Disproportionately Impacted Area”4 means an individual who, prior to [EFFECTIVE DATE OF LEGALIZATION MEASURE], lived for a minimum of [2-10] consecutive or non-consecutive year(s) between 1970 to the effective date of legalization in a geographic area or areas that experienced a disproportionately high number of cannabis arrests relative to population, during the individual’s residency in such geographic area, as determined by the Social Equity Study.5 6

6. “Resident of an Impoverished Area” means an individual who maintained a primary residence in census tracts where at least [X]% of the households had incomes at or below the federal poverty level during the individual’s residency in such census tract, and who did so for a minimum of [Y] consecutive or [Z] non-consecutive years.

B. The [CITY/COUNTY] shall establish a Cannabis Social Equity Commission (“Commission”) to advise the [CITY/COUNTY] on the ongoing implementation of this Act and the administration of the Cannabis Social Equity Fund. The Commission shall include individuals with [Prior Cannabis Records, individuals from Disproportionately Impacted Areas, members of impacted communities, and social justice advocates].

C. The [CITY/COUNTY] shall establish a Cannabis Social Equity Fund (the “Fund”), which shall consist of monies appropriated or donated for the purpose of supporting the Cannabis Social Equity Program and eligible Program participants. The Fund monies may be used for any purpose directly related to 4 Localities should adjust this requirement and consider restricting it to a specific time period based on periods of highest arrests, housing displacement or gentrification, or any other factors deemed relevant. 5 We strongly recommend a data-driven approach to identifying disproportionately impacted areas, so this criterion was purposefully left vague. It should be further specified following the release of findings from a Social Equity Study commissioned by the adopting jurisdiction. The City of Boston, the City of Sacramento, the City of Los Angeles, the City and County of San Francisco, and other prominent social equity jurisdictions have commissioned similar reports that can be used as a guideline for determining scope. Please note that the common approach to defining disproportionately impacted areas is to look at standard deviations in cannabis arrest rates across different geographic units, however the geographic units for which police arrest data is available will vary across localities and will substantially impact how disproportionately impacted areas are defined. Each locality will need to consider different ways to conceptualize disproportionately impacted areas and figure out which is most effective in helping the locality achieve the stated goals of its Social Equity Program. 6 Other conditionally applicable criteria for localities to consider:

Experienced housing instability - Consider in jurisdictions with substantial housing shortage or other relevant housing market conditions. Sample Language: “Since 1995, experienced housing insecurity in San Francisco, as evidenced by eviction, foreclosure, or revocation of housing subsidy” (SF Police Code (“SFPC”) § 1604(b)(4)(C))
Attended public school for some minimum amount of time - Consider in jurisdictions where there is substantial income differentiation between public and private school attendees. Sample Language:
“Attended a school under the jurisdiction of the San Francisco Unified School District for five years, either consecutively or in total, during the period 1971-2016” (SFPC § 1604(b)(4)(E)) 805 SW Broadway Suite 2400 • Portland, OR 97205 • United States www.minoritycannabis.org • [email protected]
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Item 26.

Minority Cannabis Business Association
Model Municipal Social Equity Ordinances
July 1, 2019
the Program and approved by the Commission. Without limitation, Fund monies may be used to:

1. Provide financial support for Social Equity Program participants, including low- or no-interest loans or small grants for participants’ start-up costs;

2. Offset local cannabis tax and fee revenue losses associated with offering tax and fee relief for Social Equity Program participants; and

3. Support programs and services that benefit and contribute to the operational success of Social Equity Program participants, such as programs and services that offer:
i. Workforce development;
ii. Access to affordable commercial real estate;
iii. Access to investment and financing;
iv. Access to legal and consulting services;
v. Assistance with licensing and regulatory compliance; vi. Technical training related to cannabis operations; and vii. Pre-qualification and matching of Incubators and Incubatees.

D. The [CITY/COUNTY] shall commission a Social Equity Study to identify Disproportionately Impacted Areas7 and utilize the data collected pursuant to Section 8, “Data Collection”, of this Act to further the purposes of this act.

E. A Social Equity Program participant shall be eligible for one of three tiers.

1. To qualify for Social Equity Program Tier 1, [at least 51%] of the applicant’s business must be owned [and]8 [controlled/operated] by one or more individuals [who will hold such interest for at least X years after the applicant’s license is granted (the “Qualifying Period”)]9 and who meet one of the following criteria:
i. Have a Prior Controlled Substance Conviction and be at least one of the following:

1. Low Income.

2. Member of an Impacted Family.

3. Resident of an Impoverished Area.
7 We strongly advocate for a data-driven approach to determining which communities have been disproportionately impacted and therefore should be targeted for program eligibility and other benefits.

However, we recognize that commissioning a Social Equity Study is expensive and may not be feasible for all localities. A less expensive alternative may be to conduct internal analysis of cannabis arrest data to determine a simple standard (e.g., 1.5+ standard deviations above the mean cannabis arrest rate for the City) for identifying “disproportionately impacted” communities. 8 “And/Or” may be an appropriate language choice if the adopting jurisdiction will allow non-profit organizations to be eligible for Tier 1 or Tier 2 status, since non-profit corporations are non-stock entities that cannot legally have any owners. 9 In order to prevent applicants from gaming the program, we recommend adding a “Qualifying Period” during which the ownership interest of Qualifying Individuals may not be diluted or divested. 805 SW Broadway Suite 2400 • Portland, OR 97205 • United States www.minoritycannabis.org • [email protected]
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Item 26.

Minority Cannabis Business Association
Model Municipal Social Equity Ordinances
July 1, 2019

4. A Former Resident of a Disproportionately Impacted Area; or ii. A former Resident of a Disproportionately Impacted Area and currently at least two of the following:

1. Low Income.

2. Member of an Impacted Family.

3. Resident of an Impoverished Area.

Such individuals are hereinafter referred to as “Qualifying Individuals”.

2. To qualify for Social Equity Program Tier 2, [a minimum of 33.3%]10 of the applicant’s business must be owned [and]11 [controlled/operated]12 by one or more Qualifying Individuals [who will hold such interest for the Qualifying Period], and must meet the criteria listed above.

3. Applicants for Social Equity Program Tiers 1 and 2 may not submit licensing applications to operate more than one license per category of commercial cannabis activity (e.g., cultivation, manufacturing retail) in the [CITY/COUNTY].

4. A Tier 3 Social Equity Program licensee shall enter into an Incubation Agreement with a Tier 1 or Tier 2 Social Equity Program participant (an “Incubated Licensee”) to provide rent-free space owned or leased by the Tier 3 licensee, with prorated utilities, and compliant security equipment and services (“Incubation Space”) for the Incubated Licensee’s commercial cannabis business operations for a period of [X] years. i. The Tier 3 licensee shall provide Incubation Space that meets all of the following conditions:

1. The Incubated Licensee can conduct commercial
cannabis activities authorized by its license type in the Incubation Space without violating any land use or sensitive use requirements in [INSERT CITATION TO GENERAL
MUNICIPAL LICENSING ORDINANCE].

2. The Incubated Licensee will not incur costs for
bringing mechanical, electrical, plumbing, and fire and life safety systems into compliance with [CITY/COUNTY] and
State regulations;
10 It should be noted again that bracketed terms may be adjusted by the adopting jurisdiction. We recommend a floor of no less than 33%, but adopting jurisdictions may consider a higher floor of at least 51%.
11 “And/Or” may be an appropriate language choice if the adopting jurisdiction will allow non-profit organizations to be eligible for Tier 1 or Tier 2 status, since non-profit corporations are non-stock entities that cannot legally have any owners. 12 Where, as in Tier 2, the eligible individuals hold less than a majority of the applicant’s equity, voting “control” is not mathematically possible; in this instance, the term “operated” may be a better choice than controlled.
805 SW Broadway Suite 2400 • Portland, OR 97205 • United States www.minoritycannabis.org • [email protected]
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Item 26.

Minority Cannabis Business Association
Model Municipal Social Equity Ordinances
July 1, 2019

3. The Incubated Licensee has the legal right to occupy and use the Incubation Space for the commercial cannabis activities authorized by its license type.
ii. The [CITY/COUNTY] may, at its discretion, approve a fee to be paid by the Tier 3 licensee to one or more Tier 1 and Tier 2 licensees in lieu of Incubation Space. At minimum, the fee shall be equivalent to [two times]
13 the highest cost per square foot for a)
commercial, b) industrial, or c) manufacturing space within the City adjusted annually based on the US Commercial Real Estate Index ("CREI") multiplied by the required amount of space for incubation multiplied by the required incubation term.
iii. The Incubation Agreement shall include reasonable covenants obligating Tier 3 licensees to negotiate in good faith over preferred business relationships with its Incubated Licensee immediately upon the successful licensure of both businesses.14
iv. The Incubation Agreement shall include reasonable covenants negotiated in good faith obligating Tier 3 licensees not to compete directly with the Incubated Licensee for the term of the Incubation Agreement, to the extent permissible under applicable state and federal competition laws.

5. Additionally, a Tier 3 license shall prepare a staffing plan that demonstrates intent, and methods, to comply with Section 3 of this Act [GOOD-FAITH EFFORTS FOR EQUITY IN EMPLOYMENT], including:
i. organizational chart, demonstrating the roles and responsibilities of each employee and the reporting structure, and
ii. description of applicant’s employment outreach and recruitment strategies, including providing employment opportunities to persons who have been disproportionately impacted by the criminalization of Cannabis.

6. The [CITY/COUNTY] shall issue guidance on acceptable forms of evidence of Tier 1, Tier 2, and Tier 3 Social Equity Program eligibility. 13 The intent here is to make the in-lieu fee a more expensive option so that incubation remains an attractive option. The multiplier can be adjusted as appropriate based on real estate pricing in the city or county. For example, if real estate pricing varies greatly across different areas of a city or county, a cityor county-wide multiplier may need to be removed, adjusted down, or broken out by smaller geographic units.
14 For the sake of example, a Tier 3 licensee with a distribution facility which incubates a manufacturer may enter into a long term contract for the distribution of the incubated licensee’s products for the term of the Incubation Agreement.
805 SW Broadway Suite 2400 • Portland, OR 97205 • United States www.minoritycannabis.org • [email protected]
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Item 26.

Minority Cannabis Business Association
Model Municipal Social Equity Ordinances
July 1, 2019
F. Tier 1, Tier 2, [and Tier 3] participants in the Social Equity Program shall be eligible to receive the following benefits:

1. Priority processing of license applications.

2. Expedited annual license renewal processing.

3. [Waived application and initial licensing fees.]15

4. Tier 1 and Tier 2 Social Equity Program licensees shall also be eligible for [one or more of the following]:
i. Low-interest or no-interest business loans awarded by the [CITY/COUNTY] or the [CITY/COUNTY]’s designee.16 17
ii. Municipal grants for start-up costs, funded by the Cannabis Social Equity Fund.
iii. Opportunities for incubation by a Tier 3 Social Equity Program licensee.
iv. Access to [CITY/COUNTY] events and information intended to facilitate introductions between licensees and potential investors and/or incubators.
v. Business, licensing, inspection, and building and land use permitting requirements, and operational compliance assistance and training provided by the [CITY/COUNTY] or the
[CITY/COUNTY]’s designee.18
vi. Waived or reduced [CITY/COUNTY] fees related to securing cannabis-related local land use entitlements and permits, building permits and inspections.
15 If waiving application and first annual licensing fees for all Social Equity Program participants is not feasible for a given jurisdiction, the local cannabis regulatory authority may consider offering at least a 50% reduction in application and first annual licensing fees for Social Equity Program participants as an alternative. Additionally, a jurisdiction may consider requiring a Tier 3 licensee to cover the cost of application and first annual licensing fees for Tier 1 and Tier 2 licensees. 16 Potential funding sources for low-interest or no-interest loans to consider: cannabis tax revenue, although taxation is typically limited in medical cannabis markets; existing local funds used to support local government programs for economic development, diversity, or other related subjects; fees collected from a subset of cannabis licensees, such as cannabis licensees who do not participate in the Social Equity Program. 17 Eligibility standards must be established for the low-interest or no-interest loan program. Localities may wish to consider, but need not feel limited to, the following factors: “operations ready” status, demonstrated financial need, or other factors deemed relevant by an established local sub-unit with community-level decision-making authority and an in-depth understanding of the community’s needs (e.g., Neighborhood Council, Economic Development Council). 18 In this case, the Department’s designee may be another local government body that is better suited to perform this role or a third-party contractor with the necessary skills and expertise to provide excellent service to Social Equity Program participants.
805 SW Broadway Suite 2400 • Portland, OR 97205 • United States www.minoritycannabis.org • [email protected]
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Item 26.

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Model Municipal Social Equity Ordinances
July 1, 2019
vii. Subject to [neighborhood]19 approval, an exemption from “buffer zones” under [INSERT CITATION TO SPECIFIC ORDINANCE
PROVISION] of the Local Licensing Ordinance mandating distance between premises.
viii. [Waived or reduced annual license renewal fees, as follows:

1. 75% reduction in first annual license renewal fees;

2. 50% reduction in second annual license renewal fees;

3. 25% reduction in third annual license renewal fees;

4. Additional fee reduction at the Department’s discretion 20 on the basis of demonstrated financial need. ]
G. The [CITY/COUNTY] shall review and process applications for cannabis business licenses in the following order:

1. First priority: Tier 1 Program applicants.

2. Second priority: Tier 2 Program applicants.

3. Third priority: Tier 3 Program applicants that will provide Incubation Space to Tier 1 Program applicants.

4. Fourth priority: Tier 3 Program applicants that will provide Incubation Space to Tier 2 Incubatees.

5. Fifth priority: Tier 3 Program applicants that will provide a Department-approved fee in lieu of Incubation Space.

6. Sixth priority: General applicants who enter an agreement with the City to contribute funds to Social Equity Commission initiatives including, without limitation, community reinvestment and the Social Equity Program.

Prioritization within this category shall be based on annual contributions.

7. Seventh priority: All other general applicants.

H. The [CITY/COUNTY] shall verify the eligibility of all Tier 1 and Tier 2 applicants.

1. Applicants will be required to disclose all business formation documents for their businesses, as well as any resolutions or consents of the board of directors or managers, any shareholder or LLC member consents and agreements (including but not limited to voting agreements), and any material agreements (including, but not limited to, service, licensing and royalty agreements, and real estate leases and agreements) which distributes the business’ revenues and/or profits to any other party.

2. The disclosure requirement in subsection 1 above will be a continuing obligation for all Tier 1 and Tier 2 licensees, which shall make their 19 The reference to “neighborhood” could be revised to refer to a city ward, supervisorial district or other political subset of the adopting jurisdiction. 20 Alternatively, a locality may consider fee deferral until a Social Equity Program licensee is profitable and can afford assessed fees.
805 SW Broadway Suite 2400 • Portland, OR 97205 • United States www.minoritycannabis.org • [email protected]
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Item 26.

Minority Cannabis Business Association
Model Municipal Social Equity Ordinances
July 1, 2019
corporate records open to inspection by the [CITY/COUNTY] upon reasonable notice.

3. The ownership interests held by Qualifying Individuals in a Tier 1 or Tier 2 business may not be diluted through additional capital contributions into the business during the Qualifying Period.

4. The ownership interests of Qualifying Individuals may not be transferred or sold during the Qualifying Period; provided, however, the Qualifying Individuals in a single business may transfer their ownership interests among each other at any time with prior written notice to the [CITY/COUNTY].

5. Qualifying Individuals may only be divested of their ownership interest in a Tier 1 or Tier 2 business for acts or omissions which would otherwise result in the loss of a state or local cannabis business license if the Qualifying Individual is not divested.
805 SW Broadway Suite 2400 • Portland, OR 97205 • United States www.minoritycannabis.org • [email protected]
14

Item 26.

Minority Cannabis Business Association
Model Municipal Social Equity Ordinances
July 1, 2019
MODEL ORDINANCE NO. 2: GOOD-FAITH EFFORT FOR EQUITY IN
EMPLOYMENT21

ORDINANCE TEXT
Whereas the communities that have been most harmed by cannabis prohibition are benefiting the least from the legal marijuana marketplace; Whereas a legacy of racial and ethnic injustices, compounded by the disproportionate collateral consequences of 80 years of cannabis prohibition enforcement, now limits participation in the industry;
Whereas 33 States and the District of Columbia have adopted laws allowing legal access to medicinal cannabis, and 11 States and the District of Columbia have adopted laws legalizing cannabis for adult use;
Whereas legal cannabis sales totaled $12.2 billion in 2018 and are projected to surpass $50 billion by 2026;
Whereas it is estimated that less than 1 percent of the cannabis industry is owned or operated by people of color;
Whereas the continued enforcement of cannabis prohibition laws results in over 600,000 arrests annually, disproportionately impacting people of color who are almost 4 times more likely to be arrested for cannabis possession than their White counterparts, despite equal rates of use across populations;
Whereas applicants for cannabis licenses are limited by numerous laws, regulations, and exorbitant permit applications and licensing fees in these States, which can total more than $700,000;
Whereas historically disproportionate arrest and conviction rates make it particularly difficult for people of color to enter the legal cannabis marketplace, as most States bar these individuals from participating;
Whereas individuals with cannabis and other convictions types are burdened with collateral consequences that make seeking employment, receiving public benefits, obtaining occupational licenses, and pursuing higher education more difficult; 21 An equity program need not exist for adoption of this ordinance. 805 SW Broadway Suite 2400 • Portland, OR 97205 • United States www.minoritycannabis.org • [email protected]
15

Item 26.

Minority Cannabis Business Association
Model Municipal Social Equity Ordinances
July 1, 2019
Whereas some States and municipalities have taken proactive steps to mitigate inequalities in the legal cannabis marketplace and ensure equal participation in the industry.

NOW, THEREFORE, THE PEOPLE OF THE [CITY] [AND] [COUNTY] OF ___________, [STATE] DO ENACT AS FOLLOWS:

SECTION 1: SHORT TITLE
This ordinance shall be known and may be cited as the [ENTER MUNICIPALITY NAME] Social Equity in Cannabis Employment Act of 20[__] (hereinafter, this “Act”).

SECTION 2: GOOD-FAITH EFFORT FOR EQUITY IN EMPLOYMENT
A. In addition to the definitions in [INSERT CITATION TO GENERAL MUNICIPAL CANNABIS LICENSING ORDINANCE] (the “Local Licensing Ordinance”), the following definitions apply within this Act:

1. “Dependent” has the same meaning ascribed to it by the Internal Revenue Service for individual income tax purposes and is determined by satisfaction of either the qualifying child tests or qualifying relative tests described in the most current version of the annual IRS Tax Guide for Individuals.

2. “Low Income” means an individual who currently (at the time of licensing) lives in a household with household income that is less than eighty percent (80%) of the current fiscal year median family income for the county of residence, as determined by the United States Department of Housing and Urban Development or its successor agency.22 23

3. “Member of an Impacted Family” means an individual who, in the previous tax year, had a parent, legal guardian, child, spouse, or dependent, or was a dependent of an individual who, prior to [EFFECTIVE DATE OF LEGALIZATION MEASURE], was arrested for, convicted of, or adjudged to be a ward of the juvenile court for any non-violent crime under the laws 22 A locality should provide the link to HUD’s annual median family income figures as soon as reasonably practicable following annual publication. See here: https://www.huduser.gov/portal/datasets/il.html 23 Some states annually produce alternative low income figures that are adjusted based on factors deemed relevant by the state, such as cost of living, housing costs, and state income tax deductions.

Where available, annually published state low income figures that are based on median family income but are further adjusted should be employed in the definition of low income instead of HUD’s median family income figures.
805 SW Broadway Suite 2400 • Portland, OR 97205 • United States www.minoritycannabis.org • [email protected]
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Item 26.

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Model Municipal Social Equity Ordinances
July 1, 2019
of [STATE] or any other jurisdiction relating to the sale, possession, use, cultivation, manufacture, or transport of cannabis.24

4. “Prior Controlled Substance Record” means to have been arrested for, convicted of, or adjudged to be a ward of the juvenile court for any crime under the laws of [INSERT STATE] or any other jurisdiction relating to the sale, possession, use, cultivation, manufacture, or transport of a controlled substance prior to [EFFECTIVE DATE OF LEGALIZATION].

5. “Resident of a Disproportionately Impacted Area”25 means an individual who, prior to [EFFECTIVE DATE OF LEGALIZATION MEASURE], lived for a minimum of [2-10] consecutive or non-consecutive year(s) between 1970 to the effective date of legalization in a geographic area or areas that experienced a disproportionately high number of cannabis arrests relative to population, during the individual’s residency in such geographic area, as determined by the Social Equity Study.26 27

6. “Resident of an Impoverished Area” means an individual who maintained a primary residence in census tracts where at least [X]% of the households had incomes at or below the federal poverty level during the individual’s residency in such census tract, and who did so for a minimum of [Y] consecutive or [Z] non-consecutive years.
24 Localities may consider expanding to include family members with any arrest or conviction for any non-violent and/or controlled substance crime. 25 Localities should adjust this requirement and consider restricting it to a specific time period based on periods of highest arrests, housing displacement or gentrification, or any other factors deemed relevant. 26 We strongly recommend a data-driven approach to identifying disproportionately impacted areas, so this criterion was purposefully left vague. It should be further specified following the release of findings from a Social Equity Study commissioned by the adopting jurisdiction. The City of Boston, the City of Sacramento, the City of Los Angeles, the City and County of San Francisco, and other prominent social equity jurisdictions have commissioned similar reports that can be used as a guideline for determining scope. Please note that the common approach to defining disproportionately impacted areas is to look at standard deviations in cannabis arrest rates across different geographic units, however the geographic units for which police arrest data is available will vary across localities and will substantially impact how disproportionately impacted areas are defined. Each locality will need to consider different ways to conceptualize disproportionately impacted areas and figure out which is most effective in helping the locality achieve the stated goals of its Social Equity Program. 27 Other conditionally applicable criteria for localities to consider:

Experienced housing instability - Consider in jurisdictions with substantial housing shortage or other relevant housing market conditions. Sample Language: “Since 1995, experienced housing insecurity in San Francisco, as evidenced by eviction, foreclosure, or revocation of housing subsidy” (SF Police Code (“SFPC”) § 1604(b)(4)(C))
Attended public school for some minimum amount of time - Consider in jurisdictions where there is substantial income differentiation between public and private school attendees. Sample Language:
“Attended a school under the jurisdiction of the San Francisco Unified School District for five years, either consecutively or in total, during the period 1971-2016” (SFPC § 1604(b)(4)(E)) 805 SW Broadway Suite 2400 • Portland, OR 97205 • United States www.minoritycannabis.org • [email protected]
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Item 26.

Minority Cannabis Business Association
Model Municipal Social Equity Ordinances
July 1, 2019
B. [Each licensee, including Tier 1 and Tier 2 licensees][Each Tier 3 licensee]28 shall undertake good-faith efforts to ensure that at least 25% of the Licensee’s employees must be individuals who:

1. Has a Prior Controlled Substance Conviction;

2. Is Low Income;

3. Is a Member of an Impacted Family;

4. Is a Resident of an Impoverished Area; or

5. Is a former Resident of a Disproportionately Impacted Area.

C. Annually, [each licensee, including Tier 1 and Tier 2 licensees]/[each Tier 3 licensee] shall send to [CITY/COUNTY] a certification, stating either:

1. that at least 25% of the Licensee’s employees meet one of the five criteria above, or

2. (a) that the Licensee has hired such employees to the extent feasible, and describing the Licensee’s employment outreach and recruitment strategies, including providing employment opportunities to persons meet one of the five criteria above and (b) that the Licensee transmitted all job openings, to [CITY/COUNTY] agency responsible for workforce development, for public posting.
28 Some participants wanted to see Tier 3 businesses mandated to do business with their incubatees (such as a retail storefront incubator providing its delivery service incubatee the exclusive contract to deliver for the storefront for a period of years), or at least not to set-up a business that competes with the incubatee for a period of years.
805 SW Broadway Suite 2400 • Portland, OR 97205 • United States www.minoritycannabis.org • [email protected]
18

Item 26.

Minority Cannabis Business Association
Model Municipal Social Equity Ordinances
July 1, 2019
MODEL ORDINANCE NO. 3: COMMUNITY BENEFITS AGREEMENT29

ORDINANCE TEXT
Whereas the communities that have been most harmed by cannabis prohibition are benefiting the least from the legal marijuana marketplace; Whereas 33 States and the District of Columbia have adopted laws allowing legal access to medicinal cannabis, and 11 States and the District of Columbia have adopted laws legalizing cannabis for adult use;
Whereas legal cannabis sales totaled $12.2 billion in 2018 and are projected to surpass $50 billion by 2026;
NOW, THEREFORE, THE PEOPLE OF THE [CITY] [AND] [COUNTY] OF ___________, [STATE] DO ENACT AS FOLLOWS:

SECTION 1: SHORT TITLE
This ordinance shall be known and may be cited as the [ENTER MUNICIPALITY NAME] Cannabis Community Benefits Agreement Act of 20[__] (hereinafter, this “Act”).

SECTION 2: COMMUNITY BENEFITS AGREEMENT30
A. In addition to the definitions in [INSERT CITATION TO GENERAL MUNICIPAL CANNABIS LICENSING ORDINANCE] (the “Local Licensing Ordinance”), the following definitions apply within this Act

1. “Resident of a Disproportionately Impacted Area”31 means an individual who, prior to [EFFECTIVE DATE OF LEGALIZATION MEASURE], lived for a minimum of [2-10] consecutive or non-consecutive year(s) between 1970 to the effective date of legalization in a geographic area or areas that experienced a disproportionately high number of cannabis arrests relative to population, during the individual’s residency in such geographic area, as determined by the Social Equity Study.32 33
29 This ordinance may be adopted with or without a social equity program. 30 This provision may be removed if a social equity program is not adopted. 31 Localities should adjust this requirement and consider restricting it to a specific time period based on periods of highest arrests, housing displacement or gentrification, or any other factors deemed relevant. 32 We strongly recommend a data-driven approach to identifying disproportionately impacted areas, so this criterion was purposefully left vague. It should be further specified following the release of findings from a Social Equity Study commissioned by the adopting jurisdiction. The City of Boston, the City of Sacramento, the City of Los Angeles, the City and County of San Francisco, and other prominent social equity jurisdictions have commissioned similar reports that can be used as a guideline for determining scope. Please note that the common approach to defining disproportionately impacted areas is to look at 805 SW Broadway Suite 2400 • Portland, OR 97205 • United States www.minoritycannabis.org • [email protected]
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Item 26.

Minority Cannabis Business Association
Model Municipal Social Equity Ordinances
July 1, 2019
B. The [CITY/COUNTY] may, at its discretion, adopt an ordinance that requires applicants to enter into a community benefits agreement with the [CITY/COUNTY] as a condition of license issuance. The general scope of the community benefits agreement and the procedures for administration shall be established by ordinance.

C. Except as otherwise specified, contributions made pursuant to a community benefits agreement may be monetary, non-monetary, or both.

D. At least once annually, the [CITY/COUNTY] shall request that each disproportionately impacted area [INSERT EQUIVALENT OF COMMUNITY PLAN AREA/NEIGHBORHOOD COUNCIL] and residents adversely impacted by a prior arrest or other criminal justice system involvement prepare a list of community needs.

E. Non-monetary contributions shall be responsive to the needs of one or more disproportionately impacted areas.

F. Monetary contributions shall support programs, initiatives, and organizations that address the needs of one or more disproportionately impacted areas.

G. Procedures for collection and distribution of community benefits funds shall be established by ordinance.

H. The [CITY/COUNTY] may exempt Social Equity Program participants from any mandate to enter a community benefits agreement with the [CITY/COUNTY] or any mandatory monetary contribution related to a community benefits agreement for up to three years.

I. The [CITY/COUNTY] shall not enter a community benefits agreement that requires a General Applicant or General Licensee to contribute funds in excess of three percent (3%) of projected or actual annual net profits or the dollar equivalent thereof.

J. The [CITY/COUNTY] shall not enter a community benefits agreement that requires a Social Equity Program participant to contribute funds in excess of one standard deviations in cannabis arrest rates across different geographic units, however the geographic units for which police arrest data is available will vary across localities and will substantially impact how disproportionately impacted areas are defined. Each locality will need to consider different ways to conceptualize disproportionately impacted areas and figure out which is most effective in helping the locality achieve the stated goals of its Social Equity Program. 33 Other conditionally applicable criteria for localities to consider:

Experienced housing instability - Consider in jurisdictions with substantial housing shortage or other relevant housing market conditions. Sample Language: “Since 1995, experienced housing insecurity in San Francisco, as evidenced by eviction, foreclosure, or revocation of housing subsidy” (SF Police Code (“SFPC”) § 1604(b)(4)(C))
Attended public school for some minimum amount of time - Consider in jurisdictions where there is substantial income differentiation between public and private school attendees. Sample Language:
“Attended a school under the jurisdiction of the San Francisco Unified School District for five years, either consecutively or in total, during the period 1971-2016” (SFPC § 1604(b)(4)(E)) 805 SW Broadway Suite 2400 • Portland, OR 97205 • United States www.minoritycannabis.org • [email protected]
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Item 26.

Minority Cannabis Business Association
Model Municipal Social Equity Ordinances
July 1, 2019
percent (1%) of projected or actual annual net profits or the dollar equivalent thereof.
a. As used in this section, “net profits” means (i) the total amount actually received or receivable from all sales, and the total amount or compensation actually received or receivable for the performance of any act or service, of whatever nature it may be, for which a charge is made or credit allowed, whether or not such act or service is done as a part of or in connection with the sale of materials, goods, wares, or merchandise minus (ii) any deduction therefrom on account of the cost of the property sold, the cost of materials used, labor or service costs, interest paid or payable, or losses or other expenses whatsoever.34 K. A Social Equity Program participant may submit a request to the [CITY/COUNTY] for reduction or deferral of contributions required by community benefits agreement on the basis of financial hardship.35
L. Within fourteen (14) calendar days of the date the request is received by the [CITY/COUNTY], the [CITY/COUNTY] shall approve or deny the request in writing.

M. If the [CITY/COUNTY] fails to approve or deny the request within fourteen (14) days of receipt, the request is deemed approved.

N. The [CITY/COUNTY] shall not impose any requirements in a community benefits agreement or in relation to such agreement that would be unreasonable, impractical, or contrary to the public interest for the licensee to comply with.

O. The [CITY/COUNTY] shall prepare an annual report on community benefits agreements for the Cannabis Social Equity Commission. The report shall include, without limitation, a description of the conditions that trigger a community benefits agreement, the total number of active community benefits agreements, the number of new community benefits agreements, the number of retired community benefits agreements, a list of participating licensees and compliance status, funds owed and collected, and a summary of non-monetary contributions.

P. The [CITY/COUNTY] shall conduct a periodic review of community benefits agreements at least every 12 months, at which time the licensee subject to the agreement shall be required to demonstrate good faith compliance with the terms of the agreement. If, as a result of such periodic review, the [CITY/COUNTY] finds and determines, on the basis of substantial evidence, that the licensee has not complied in good faith with terms or conditions of the agreement, the [CITY/COUNTY] may terminate or modify the agreement. The [CITY/COUNTY] 34 This definition may be revised and tailored by the adopting jurisdiction to account for microbusinesses and other vertically-integrated businesses that have intra-company sales. 35 This provision may be removed if a social equity program is not adopted. 805 SW Broadway Suite 2400 • Portland, OR 97205 • United States www.minoritycannabis.org • [email protected]
21

Item 26.

Minority Cannabis Business Association
Model Municipal Social Equity Ordinances
July 1, 2019
shall not terminate a community benefits agreement entered into by the [CITY/COUNTY] and a Social Equity Program participant unless such action is considered and approved in writing by the Cannabis Social Equity Commission. 805 SW Broadway Suite 2400 • Portland, OR 97205 • United States www.minoritycannabis.org • [email protected]
22

Item 26.

Minority Cannabis Business Association
Model Municipal Social Equity Ordinances
July 1, 2019
MODEL ORDINANCE NO. 4: COMMUNITY REINVESTMENT FUND36

ORDINANCE TEXT
Whereas the communities that have been most harmed by cannabis prohibition are benefiting the least from the legal marijuana marketplace; Whereas a legacy of racial and ethnic injustices, compounded by the disproportionate collateral consequences of 80 years of cannabis prohibition enforcement, now limits participation in the industry;
Whereas 33 States and the District of Columbia have adopted laws allowing legal access to medicinal cannabis, and 11 States and the District of Columbia have adopted laws legalizing cannabis for adult use;
Whereas legal cannabis sales totaled $12.2 billion in 2018 and are projected to surpass $50 billion by 2026;
Whereas tax revenue generated from the adult-use sales of cannabis could be used to reinvest in communities most harmed by cannabis prohibition, including efforts to create access to capital, job training programs, and with seeking assistance to expunge criminal convictions.

NOW, THEREFORE, THE PEOPLE OF THE [CITY] [AND] [COUNTY] OF ___________, [STATE] DO ENACT AS FOLLOWS:

SECTION 1: SHORT TITLE
This ordinance shall be known and may be cited as the [ENTER MUNICIPALITY NAME] Cannabis Community Reinvestment Fund Act of 20[__] (hereinafter, this “Act”).

SECTION 2: COMMUNITY REINVESTMENT FUND
A. In addition to the definitions in [INSERT CITATION TO GENERAL MUNICIPAL CANNABIS LICENSING ORDINANCE] (the “Local Licensing Ordinance”), the following definitions apply within this Act:

1. “Resident of a Disproportionately Impacted Area”37 means an individual who, prior to [EFFECTIVE DATE OF LEGALIZATION MEASURE], lived for a minimum of [2-10] consecutive or non-consecutive year(s) between 1970 to the effective date of legalization in a geographic area or areas that 36 This ordinance may be adopted with or without a social equity program. 37 Localities should adjust this requirement and consider restricting it to a specific time period based on periods of highest arrests, housing displacement or gentrification, or any other factors deemed relevant. 805 SW Broadway Suite 2400 • Portland, OR 97205 • United States www.minoritycannabis.org • [email protected]
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Item 26.

Minority Cannabis Business Association
Model Municipal Social Equity Ordinances
July 1, 2019
experienced a disproportionately high number of cannabis arrests relative to population, during the individual’s residency in such geographic area, as determined by the Social Equity Study.38 39
B. The [CITY/COUNTY] shall establish a Community Reinvestment Fund for the purpose of revitalizing Disproportionately Impacted Areas and improving life outcomes for persons with a Prior Cannabis Record and residents of Disproportionately Impacted Areas.

1. Disproportionately Impacted Areas will be identified in a manner determined by the Social Equity Study.40

2. [CITY/COUNTY] shall consult with community members to determine where the funds should be allocated.

C. On at least an annual basis, a percentage of tax and non-licensing fee revenue from licensed cannabis businesses shall be transferred to the Community Reinvestment Fund.41
38 We strongly recommend a data-driven approach to identifying disproportionately impacted areas, so this criterion was purposefully left vague. It should be further specified following the release of findings from a Social Equity Study commissioned by the adopting jurisdiction. The City of Boston, the City of Sacramento, the City of Los Angeles, the City and County of San Francisco, and other prominent social equity jurisdictions have commissioned similar reports that can be used as a guideline for determining scope. Please note that the common approach to defining disproportionately impacted areas is to look at standard deviations in cannabis arrest rates across different geographic units, however the geographic units for which police arrest data is available will vary across localities and will substantially impact how disproportionately impacted areas are defined. Each locality will need to consider different ways to conceptualize disproportionately impacted areas and figure out which is most effective in helping the locality achieve the stated goals of its Social Equity Program. 39 Other conditionally applicable criteria for localities to consider:

Experienced housing instability - Consider in jurisdictions with substantial housing shortage or other relevant housing market conditions. Sample Language: “Since 1995, experienced housing insecurity in San Francisco, as evidenced by eviction, foreclosure, or revocation of housing subsidy” (SF Police Code (“SFPC”) § 1604(b)(4)(C))
Attended public school for some minimum amount of time - Consider in jurisdictions where there is substantial income differentiation between public and private school attendees. Sample Language:
“Attended a school under the jurisdiction of the San Francisco Unified School District for five years, either consecutively or in total, during the period 1971-2016” (SFPC § 1604(b)(4)(E)) 40 As previously stated, we strongly advocate for a data-driven approach to determining which communities have been disproportionately impacted and therefore should be targeted for community reinvestment initiatives and other benefits. However, we recognize that commissioning a Social Equity Study is expensive and may not be feasible for all localities. A less expensive alternative may be to conduct internal analysis of cannabis arrest data to determine a simple standard (e.g., 1.5+ standard deviations above the mean cannabis arrest rate for the City) for identifying “disproportionately impacted” communities. Localities may also consider adding eligibility criteria that are indirectly related to or are results of discriminatory cannabis enforcement on the basis of race and class in an effort to broaden the base of communities and persons that may benefit from the Community Reinvestment Fund. 41 This text will need to be adjusted depending on how cannabis funds will be collected and allocated. We intentionally left little detail regarding appropriations so that the text may be easily adjusted. Localities may consider including details regarding the person or agency that grants fund transfers, where transfers 805 SW Broadway Suite 2400 • Portland, OR 97205 • United States www.minoritycannabis.org • [email protected]
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Item 26.

Minority Cannabis Business Association
Model Municipal Social Equity Ordinances
July 1, 2019
D. Community Reinvestment Fund monies shall be used for purposes including, at minimum:

1. Assisting individuals with Prior Criminal Records and residents of Disproportionately Impacted Areas to obtain copies of their criminal record histories;

2. Record or sentence modification for persons with criminal convictions, including development and implementation of regular legal clinic models to access record change services through the public defender’s office, legal aid organizations, or local law schools and/or automated solutions;42

3. Reentry services (e.g., job placement voter registration, etc.), especially in Disproportionately Impacted Areas; and

4. Job training for residents of Disproportionately Impacted Areas, including training in management and other areas reasonably expected to help trainees secure higher-level jobs.

5. Community health and nutrition programs, including school based community gardens

6. Community driven asset mapping to determine future needs will be made from, who has decision-making authority regarding fund appropriations, and minimum annual transfer thresholds.

Localities should also consider including a directive for an initial appropriation from the General Fund or another appropriate local fund unrelated to cannabis to prevent delays in program roll out. The initial amount borrows could then be reimbursed in full once a sufficient amount of cannabis tax and fee revenue has been collected. 42 Automated solutions are optimal because they positively impact the greatest number of individuals and demand no further investment of time or money by impacted individuals who have been burdened by the stigma of a criminal record for cannabis. However, we recognize that automated solutions may not be feasible -- politically or otherwise -- in some localities and encourage those localities to pursue expungement and resentencing in an achievable manner (i.e. through the public defender’s office, local legal aid organizations, or area law schools with clean slate clinics). We support all expungement and resentencing efforts for prior cannabis offenders in states that have legalized and encourage localities to tailor their approaches as needed to make progress in this area. 805 SW Broadway Suite 2400 • Portland, OR 97205 • United States www.minoritycannabis.org • [email protected]
25

Item 26.

Minority Cannabis Business Association
Model Municipal Social Equity Ordinances
July 1, 2019
MODEL ORDINANCE NO. 5: NO ADDITIONAL RESTRICTIONS ON ENTRY INTO CANNABIS INDUSTRY43

ORDINANCE TEXT
Whereas the communities that have been most harmed by cannabis prohibition are benefiting the least from the legal marijuana marketplace; Whereas a legacy of racial and ethnic injustices, compounded by the disproportionate collateral consequences of 80 years of cannabis prohibition enforcement, now limits participation in the industry;
Whereas 33 States and the District of Columbia have adopted laws allowing legal access to medicinal cannabis, and 11 States and the District of Columbia have adopted laws legalizing cannabis for adult use;
Whereas legal cannabis sales totaled $12.2 billion in 2018 and are projected to surpass $50 billion by 2026;
Whereas it is estimated that less than 1 percent of the cannabis industry is owned or operated by people of color;
Whereas applicants for cannabis licenses are limited by numerous laws, regulations, and exorbitant permit applications and licensing fees in these States, which can total more than $700,000;
Whereas historically disproportionate arrest and conviction rates make it particularly difficult for people of color to enter the legal cannabis marketplace, as most States bar these individuals from participating.

NOW, THEREFORE, THE PEOPLE OF THE [CITY] [AND] [COUNTY] OF ___________, [STATE] DO ENACT AS FOLLOWS:

SECTION 1: SHORT TITLE
This ordinance shall be known and may be cited as the [ENTER MUNICIPALITY NAME] Reducing Barriers to Entry into Cannabis Industry Act of 20[__] (hereinafter, this “Act”).

SECTION 2: NO ADDITIONAL RESTRICTIONS ALLOWED ON ENTRY INTO

CANNABIS INDUSTRY
43 This ordinance may be adopted with or without a social equity program. 805 SW Broadway Suite 2400 • Portland, OR 97205 • United States www.minoritycannabis.org • [email protected]
26

Item 26.

Minority Cannabis Business Association
Model Municipal Social Equity Ordinances
July 1, 2019
A. [CITY/COUNTY] shall place no additional restrictions on who can obtain a license to operate or work in the cannabis industry than those already created by [CITATION TO STATE LICENSING STATUTE], including prior history of substance use disorder or treatment for a substance use disorder, etc.

B. Convictions for any crime not related to an applicant’s candor or character shall not disqualify them from obtaining a license to operate or seek employment in the cannabis industry. Evidence of rehabilitation may be used in determining whether a person should be licensed to operate or be employed in the industry if their conviction directly relates to the operation of a business.

C. Applicants who are denied licensure shall have an opportunity to appeal [CITY/COUNTY]’s decision, and shall be provided with an explanation of why their application was denied.

D. Background checks shall only be used to determine whether an applicant was convicted of a crime that excludes them from state licensing. 805 SW Broadway Suite 2400 • Portland, OR 97205 • United States www.minoritycannabis.org • [email protected]
27

Item 26.

Minority Cannabis Business Association
Model Municipal Social Equity Ordinances
July 1, 2019
MODEL ORDINANCE NO. 6: DATA COLLECTION44

ORDINANCE TEXT
Whereas the communities that have been most harmed by cannabis prohibition are benefiting the least from the legal marijuana marketplace; Whereas a legacy of racial and ethnic injustices, compounded by the disproportionate collateral consequences of 80 years of cannabis prohibition enforcement, now limits participation in the industry;
Whereas 33 States and the District of Columbia have adopted laws allowing legal access to medicinal cannabis, and 11 States and the District of Columbia have adopted laws legalizing cannabis for adult use;
Whereas it is estimated that less than 1 percent of the cannabis industry is owned or operated by people of color;
Whereas historically disproportionate arrest and conviction rates make it particularly difficult for people of color to enter the legal cannabis marketplace, as most States bar these individuals from participating;
Whereas some States and municipalities have taken proactive steps to mitigate inequalities in the legal cannabis marketplace and ensure equal participation in the industry.

NOW, THEREFORE, THE PEOPLE OF THE [CITY] [AND] [COUNTY] OF ___________, [STATE] DO ENACT AS FOLLOWS:

SECTION 1: SHORT TITLE
This ordinance shall be known and may be cited as the [ENTER MUNICIPALITY NAME] Social Equity Data Collection Act of 20[__] (hereinafter, this “Act”).

SECTION 2: DATA COLLECTION
A. The agency regulating the licensure of cannabis businesses in [CITY/COUNTY] shall collect demographic data on all applicants and for all application types in [CITY/COUNTY]. This shall include, but not be limited to, information on race, ethnicity, gender, income level, prior convictions, and veteran status. The data will be used to inform future efforts to create more equity in [CITY/COUNTY] cannabis industry.
44 This ordinance may be adopted with or without a social equity program. 805 SW Broadway Suite 2400 • Portland, OR 97205 • United States www.minoritycannabis.org • [email protected]
28

Item 26.

Minority Cannabis Business Association
Model Municipal Social Equity Ordinances
July 1, 2019
B. Cannabis businesses in [CITY/COUNTY] shall report to the extent allowed under state law the demographic information on their workforce, including information on race, ethnicity, gender, income level, prior convictions, and veteran status.

C. [CITY/COUNTY] will collect data on law enforcement involvement related to cannabis law violations, including the violation type, race, ethnicity, and gender.

D. This information will be consolidated and reported without individual identifying information, and posted to the agency’s website annually. 805 SW Broadway Suite 2400 • Portland, OR 97205 • United States www.minoritycannabis.org • [email protected]
29

Item 26.

Minority Cannabis Business Association
Model Municipal Social Equity Ordinances
July 1, 2019
MODEL ORDINANCE NO. 7: SOCIAL CONSUMPTION LOUNGES45

ORDINANCE TEXT
Whereas 33 States and the District of Columbia have adopted laws allowing legal access to medicinal cannabis, and 11 States and the District of Columbia have adopted laws legalizing cannabis for adult use;
Whereas legal cannabis sales totaled $12.2 billion in 2018 and are projected to surpass $50 billion by 2026;
Whereas the communities that have been most harmed by cannabis prohibition are benefiting the least from the legal marijuana marketplace; Whereas a legacy of racial and ethnic injustices, compounded by the disproportionate collateral consequences of 80 years of cannabis prohibition enforcement, now limits participation in the industry;
Whereas tax revenue generated from the adult-use sales of cannabis could be used to reinvest in communities most harmed by cannabis prohibition, including efforts to create access to capital, job training programs, and with seeking assistance to expunge criminal convictions;
Whereas Federal law severely limits access to loans and capital for cannabis businesses, disproportionately impacting minority small business owners; and Whereas some States and municipalities have taken proactive steps to mitigate inequalities in the legal cannabis marketplace and ensure equal participation in the industry.

NOW, THEREFORE, THE PEOPLE OF THE [CITY] [AND] [COUNTY] OF ___________, [STATE] DO ENACT AS FOLLOWS:

SECTION 1: SHORT TITLE
This ordinance shall be known and may be cited as the [ENTER MUNICIPALITY NAME] Cannabis Social Consumption Lounge Act of 20[__] (hereinafter, this “Act”).

SECTION 2: PERMITTING SOCIAL CONSUMPTION LOUNGES
45 This ordinance may be adopted with or without a social equity program. 805 SW Broadway Suite 2400 • Portland, OR 97205 • United States www.minoritycannabis.org • [email protected]
30

Item 26.

Minority Cannabis Business Association
Model Municipal Social Equity Ordinances
July 1, 2019
A. “Consumption Lounge” means a permitted premises where cannabis goods and products may be brought and/or purchased there for on-site consumption, and consumed by persons 21 years of age and over.

B. Consumption Lounges may sell cannabis-infused food items and non-cannabis-infused food items, and allow consumption of food and drink.

C. Consumption Lounges must notify patrons that entry by persons under age 21 is prohibited, including but not limited to posting a conspicuous sign at the entry that states: “Entry into this premises by persons under age 21 is prohibited.” D. Consumption Lounges must notify patrons that cannabis consumption can impair driving ability, including but not limited to providing information on local car services, public transportation, and ride-share programs.

E. Consumption Lounges must train their personnel about the various products provided, including their potency, absorption time, and effects. In an effort to ensure responsible consumption, Consumption Lounge personnel must educate all customers about products’ potency, absorption time, and effects.

F. Any ordinance or rule that establishes hours of operation or creates a distance restriction from other types of facilities or uses shall be no more restrictive than the most restrictive hours of operation or distance restriction in [STATE] law or any rule promulgated by the [AUTHORITY OF CITY/COUNTY] placed upon new applicants for a license permitting the sale of alcoholic beverages for on-site consumption.
805 SW Broadway Suite 2400 • Portland, OR 97205 • United States www.minoritycannabis.org • [email protected]
31

Item 26.

Minority Cannabis Business Association
Model Municipal Social Equity Ordinances
July 1, 2019
MODEL ORDINANCE NO. 8: RECORD CHANGE PROVISIONS46

ORDINANCE TEXT
Whereas a legacy of racial and ethnic injustices, compounded by the disproportionate collateral consequences of 80 years of cannabis prohibition enforcement, now limits participation in the industry;
Whereas 33 States and the District of Columbia have adopted laws allowing legal access to medicinal cannabis, and 11 States and the District of Columbia have adopted laws legalizing cannabis for adult use;
Whereas according to the American Civil Liberties Union (ACLU), enforcing cannabis prohibition laws costs taxpayers about $3.6 billion a year; Whereas the continued enforcement of cannabis prohibition laws results in over 600,000 arrests annually, disproportionately impacting people of color who are almost 4 times more likely to be arrested for cannabis possession than their White counterparts, despite equal rates of use across populations;
Whereas people of color have been historically targeted by discriminatory sentencing practices resulting in Black men receiving drug sentences that are 13.1 percent longer than sentences imposed for White men and Latinos being nearly 6.5 times more likely to receive a Federal sentence for cannabis possession than non-Hispanic Whites; Whereas, in 2013, simple cannabis possession was the fourth most common cause of deportation for any violation and the most common cause of deportation for drug law violations;
Whereas individuals with cannabis and other convictions types are burdened with collateral consequences that make seeking employment, receiving public benefits, obtaining occupational licenses, and pursuing higher education more difficult; Whereas individuals with prior convictions are often unaware that remedies exist under state law to expunge cannabis and non-cannabis convictions; Whereas expunging prior convictions for activity that is now legal or that has been reduced in severity is often too costly for individuals and communities most harmed by the drug war and cannabis prohibition;
Whereas tax revenue generated from the adult-use sales of cannabis could be used to reinvest in communities most harmed by cannabis prohibition, including efforts to 46 This ordinance may be adopted with or without a social equity program. 805 SW Broadway Suite 2400 • Portland, OR 97205 • United States www.minoritycannabis.org • [email protected]
32

Item 26.

Minority Cannabis Business Association
Model Municipal Social Equity Ordinances
July 1, 2019
create access to capital, job training programs, and with seeking assistance to expunge criminal convictions.

NOW, THEREFORE, THE PEOPLE OF THE [CITY] [AND] [COUNTY] OF ___________, [STATE] DO ENACT AS FOLLOWS:

SECTION 1: SHORT TITLE
This ordinance shall be known and may be cited as the [ENTER MUNICIPALITY NAME] Cannabis Record Modification Act of 20[__] (hereinafter, this “Act”).

SECTION 2: RECORD CHANGE PROVISIONS47
A. For purposes of this Section, “Record Change Process” includes all processes related to the change of one’s criminal record to lessen or eliminate the legal consequences associated with a criminal conviction or arrest. This may include, but is not limited to, expungement, vacating, purging, sealing, dismissing, resentencing, reclassification, any combination of the aforementioned, etc. This process may be applicable to all conviction types and criminal justice interactions, including felonies, misdemeanors, infractions, citations, arrests, juvenile adjudications, etc.

B. For purposes of this Section, “Automating” (re: Record Change Process) refers to a process wherein a person convicted and/or arrested for a crime is not required to initiate the record change process on their own. Instead, the city or county prosecutor’s office would assess all convictions in their jurisdiction to determine which are eligible to be changed.

C. [CITY/COUNTY] shall make opportunities available to individuals with criminal convictions and arrests to have their criminal record history, or sentence if they are currently under carceral control,48 modified in accordance with record change statutes in [State]. This shall apply to all conviction types and arrests for which a remedy exists for record modification. [CITY/COUNTY] will take [one or a combination] of the following approaches to achieve this goal:

1. Automating the record change process for cannabis and non-cannabis convictions;
47 Some states, like California, have passed legislation to automate the record change process for prior cannabis convictions. An adopting jurisdiction in such a state could omit this Section. See AB 1793, recently signed into CA law:
https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201720180AB1793 48 Carceral control includes, but is not limited to, prison, jail, probation, parole, and post-release community supervision.
805 SW Broadway Suite 2400 • Portland, OR 97205 • United States www.minoritycannabis.org • [email protected]
33

Item 26.

Minority Cannabis Business Association
Model Municipal Social Equity Ordinances
July 1, 2019

2. Automating the record change process for cannabis and cannabis-related (i.e., paraphernalia) convictions only and providing information on how to access other record change services in [CITY/COUNTY];

3. Allocating funds [made available through [CITY/COUNTY]’s general funds, an existing budget, or a local cannabis tax to [CITY/COUNTY]’s public defender’s office, legal aid organizations, and/or local law schools that engage in record change work;

4. Hosting legal fairs in partnership with the [CITY/COUNTY] public defender’s office, legal aid organizations, [CITY/COUNTY] agency offices that engage in employment or housing issues, and/or local law schools that engage in record change work to offer post-conviction relief to persons with all conviction types in [CITY/COUNTY]; and/or

5. Hosting legal fairs in partnership with the [CITY/COUNTY] public defender’s office and/or local legal aid organizations to offer post-conviction relief to persons with at least one marijuana conviction [CITY/COUNTY].

B. [CITY/COUNTY] shall create a directory of attorneys or offices (public defenders, legal aid organizations, etc.) that are willing to represent clients free of charge if their petition for record change is discretionary and they decide to attend a hearing, or if a hearing on their petition is required. [CITY/COUNTY] may consider making this available to persons falling below a designated income level.

C. [CITY/COUNTY] shall make available through general funds, an existing budget, or a local cannabis tax free access to a convicted person’s criminal record history, including, but not limited to, waiver of the following costs:

1. Live Scan or other fingerprinting or background-investigation services, if applicable;

2. Printing and mailing of criminal records by [CITY/COUNTY] courts or [STATE] agency; and

3. Administrative fees associated with obtaining a copy of one’s record. 805 SW Broadway Suite 2400 • Portland, OR 97205 • United States www.minoritycannabis.org • [email protected]
34

Item 26.

Minority Cannabis Business Association
Model Municipal Social Equity Ordinances
July 1, 2019
MODEL ORDINANCE NO. 9: LOWEST LAW ENFORCEMENT PRIORITY49

ORDINANCE TEXT
Whereas 33 States and the District of Columbia have adopted laws allowing legal access to medicinal cannabis, and 11 States and the District of Columbia have adopted laws legalizing cannabis for adult use;
Whereas according to the American Civil Liberties Union (ACLU), enforcing cannabis prohibition laws costs taxpayers about $3.6 billion a year; Whereas the continued enforcement of cannabis prohibition laws results in over 600,000 arrests annually, disproportionately impacting people of color who are almost 4 times more likely to be arrested for cannabis possession than their White counterparts, despite equal rates of use across populations;
Whereas people of color have been historically targeted by discriminatory sentencing practices resulting in Black men receiving drug sentences that are 13.1 percent longer than sentences imposed for White men and Latinos being nearly 6.5 times more likely to receive a Federal sentence for cannabis possession than non-Hispanic Whites; Whereas, in 2013, simple cannabis possession was the fourth most common cause of deportation for any violation and the most common cause of deportation for drug law violations;
Whereas individuals with cannabis and other convictions types are burdened with collateral consequences that make seeking employment, receiving public benefits, obtaining occupational licenses, and pursuing higher education more difficult.

NOW, THEREFORE, THE PEOPLE OF THE [CITY] [AND] [COUNTY] OF ___________, [STATE] DO ENACT AS FOLLOWS:

SECTION 1: SHORT TITLE
This ordinance shall be known and may be cited as the [ENTER MUNICIPALITY NAME] Cannabis Lowest Law Enforcement Priority Act of 20[__] (hereinafter, this “Act”).

SECTION 2: LOWEST LAW ENFORCEMENT PRIORITY
A. [CITY/COUNTY] shall make investigation, citation, and arrest for cannabis law violations the lowest law enforcement priority. This does not apply to distribution to minors.
49 This ordinance may be adopted with or without a social equity program. 805 SW Broadway Suite 2400 • Portland, OR 97205 • United States www.minoritycannabis.org • [email protected]
35

Item 26.

Minority Cannabis Business Association
Model Municipal Social Equity Ordinances
July 1, 2019
B. The following shall not constitute reasonable articulable suspicion of a crime in the absence of other factors:

1. The odor of burnt or unburnt marijuana;

2. The possession of or suspicion of possession of cannabis that does not exceed the legal limit in [STATE];

3. The possession of multiple containers of cannabis without evidence of excess of the legal limit in [STATE].

C. [CITY/COUNTY] shall make all reasonable efforts to create spaces for on-site consumption as allowed under state law.
805 SW Broadway Suite 2400 • Portland, OR 97205 • United States www.minoritycannabis.org • [email protected]
36

Item 26.

Minority Cannabis Business Association
Model Municipal Social Equity Ordinances
July 1, 2019
MODEL ORDINANCE NO. 10: ELIMINATION OF SUSPICIONLESS DRUG TESTING 50 ORDINANCE TEXT
Whereas 33 States and the District of Columbia have adopted laws allowing legal access to medicinal cannabis, and 11 States and the District of Columbia have adopted laws legalizing cannabis for adult use;
NOW, THEREFORE, THE PEOPLE OF THE [CITY] [AND] [COUNTY] OF ___________, [STATE] DO ENACT AS FOLLOWS:

SECTION 1: SHORT TITLE
This ordinance shall be known and may be cited as the [ENTER MUNICIPALITY NAME] Employee Drug-Testing Reform Act of 20[__] (hereinafter, this “Act”).

SECTION 2: ELIMINATING SUSPICIONLESS DRUG TESTING
A. No employer may demand, require, or request employees to submit to, to take or to undergo any blood, urine, or encephalographic test in the body as a condition of continued employment without reasonable documented cause; provided, however, that an employer may request such testing upon reasonable notice, but only for employees who work in sensitive job functions where the physical safety of such employee or others at the licensee’s facility may be jeopardized by the employee’s consumption of cannabis or other controlled substances.

B. Under no circumstances may employers request, require, or conduct random or company-wide blood, urine, or encephalographic testing.

C. In any action alleging that the employer violated this section, the employer shall have the burden of proof.
50 This ordinance may be adopted with or without a social equity program. 805 SW Broadway Suite 2400 • Portland, OR 97205 • United States www.minoritycannabis.org • [email protected]
37

Item 26.

STAFF REPORT
12/13/2023
TO: Honorable Mayor and City Council Members
FROM: Dr. Gabriel Martin, City Manager
SUBJECT: Ordinance No. 1207 Increasing City Council Compensation Pursuant to Senate Bill 329 (First Reading)
STAFF RECOMMENDATION:

It is recommended that the City Council conduct a first reading, by title only, of Ordinance No. 1207 increasing City Council compensation pursuant to Senate Bill 329.

BACKGROUND:

In June 2023, Governor Gavin Newsom signed Senate Bill 329 (“SB 329”) into law, which amends California Government Code Section 36516 regarding city council compensation.

SB 329 increases base compensation for city council members in general law cities. Existing law authorizes a city council to enact an ordinance to set city council salaries based on the population of the city. The former compensation schedule was set in 1984 and has not been adjusted in almost 40 years.

The purpose of SB 329 is to allow cities to adjust council member compensation to account for inflation and to support diversity in city councils because increased compensation can help individuals from across different income levels receive sufficient income for their service.

Under existing law, city councils can enact ordinances to provide salaries to council members based on the population of the city. SB 329 increases the maximum salaries that can be approved by city ordinance, based on the population of the city. The new salary limits are as follows:
 Up to $950 per month for cities up to and including 35,000 in population.  Up to $1,275 per month for cities over 35,000 up to and including 50,000 in population.  Up to $1,600 per month for cities over 50,000 up to and including 75,000 in population.  Up to $1,900 per month for cities over 75,000 up to and including 150,000 in population.  Up to $2,550 per month for cities over 150,000 up to and including 250,000 in population.
 Up to $3,200 per month for cities over 250,000 in population

Item 27.

In 2018, pursuant to Ordinance No. 1127, the City Council set the monthly salary for each Councilmember at $711.05.

DISCUSSION/ANALYSIS:

The City Council Salary Based on Government Code Section 36516 as Amended by SB 329 Coachella Municipal Code Section 2.04.010 (B) sets the Coachella City Council salary for each member at $711.05 per month. This salary was established by Ordinance No. 1127 in 2018 and there has not been an increase or adjustment in the last five years.

California Government Code Section 36516 provides a method by which salaries for members of a city council of a city are established and increased. Pursuant to Section 36516, city councilmember compensation is initially based on a city’s population, as determined by the census data or from estimates for the Department of Finance.

As noted above, SB 329 increases the city council compensation based on a city’s population. For example for cities with populations between 35,000 and 50,000—which would include Coachella—the previous salary was $400. As a result of SB 329, the updated city council salary for this population range is now $1,275.

According to data from the 2020 census and the California Department of Finance, Coachella has an approximate population of 42,462. Therefore, the City Council salary could be raised up to $1,275 under the new law.

The proposed Ordinance would amend two Coachella Municipal Code sections – Section 2.04.010 entitled “Compensation of city council members” and Section 2.04.020 entitled “Increase or decrease in council member’s salary.” Section 2.04.010 would be revised to include the most recent Coachella population from the 2020 census and California Department of Finance. In addition, it would state that following the November 2024 election, city council salary will be set at $1,275 per month. Section 2.04.020 would be amended to clean up language and reference Government Code 36516 for the process for making future increases based on cost-of-living adjustment and inflation.

An elected mayor may be provided with compensation in addition to that which he or she receives as a council member. That additional compensation may be provided by an ordinance adopted by the city council or by a majority vote of the electors voting on the proposition at a municipal election. (Gov. Code, § 36516.1.) The Coachella Municipal Code currently does not provide additional salary for the mayor.

Findings in Support of City Council Salary Increase under SB 329 There are several reasons that support higher salaries for city councilmembers in Coachella.

Higher pay can help remove financial barriers that may prevent individuals from running for office.

This can make council positions more accessible to a wider range of people, including those from lower-income backgrounds, promoting greater socioeconomic diversity among elected representatives.

Item 27.

Offering higher pay can also attract more qualified individuals to run for city council positions.

This can potentially increase the talent pool and diversity of candidates, leading to better decisionmaking governance.

A higher salary can incentivize councilmembers to dedicate more time and effort to their roles.

This can enable them to devote additional hours to understanding complex issues, researching policies, and engaging with constituents, thereby enhancing the quality of their work.

A higher salary can also help retain experienced councilmembers who might otherwise leave for higher-paying opportunities elsewhere. Continuity and intuitional knowledge can benefit the city by enabling councilmembers to build expertise, establish relationships, and effectively address long-term challenges.

Increasing compensation recognizes and compensates city councilmembers for their substantial workload. Serving on the city council requires significant time and effort. Councilmembers are responsible for attending meetings, conducting research, engaging with constituents, and making important decisions that directly impact the community.

In Coachella, the City Council’s last compensation increase went into effect at the end of 2018, so it would be appropriate to increase compensation due to inflation and cost of living increases that have occurred over the last five years.

Increasing the City Council salary would make salaries more commensurate with salaries in other Coachella Valley cities. Coachella and Indio are the only general law cities in the Coachella Valley. The other seven cities are charter cities, and therefore not bound by the city council salary caps in the Government Code. SB 329 allows Coachella to adopt city council compensation that is commensurate with what the other Coachella Valley cities pay—general law and charter, alike.

The following table compares city council salaries throughout the Coachella Valley.

City Council Salaries in the Coachella Valley
City City Council Salary per month
Palm Springs $3,467
Cathedral City $1,330
Desert Hot Springs $1,111.62 councilmembers; $1,559.18 mayor Rancho Mirage $2,917 councilmembers; $3,208 mayor
Palm Desert $1,875
Indian Wells $1039.45 councilmembers; $1,299.31 mayor
pro tem; $1,559.18 mayor
La Quinta $2,300; mayor additional $500/month
Indio* $1,339.47

Item 27.

Coachella* $711.05
* Indio and Coachella are the only general law cities in the Coachella Valley.

In addition, the increase would make the City Council salaries more commensurate with the average salaries of general law cities with similar populations.

For example, the following table shows other similar-sized California general law cities’ salary information:

City Council Salaries in General Law Cities with Approximately 45,000 Population City Population City Council Salary per month
Poway 48,483 $1,723 councilmembers; $2,417 mayor
La Mirada 47,899 $1,259
Lompoc 43,736 $1,200 councilmembers; $1,400 mayor
Danville 42,732 $1,261
Campbell 42,286 $877
The above cities could also adopt salary adjustments pursuant to SB 329.

Compensation Increase Would Occur After the 2024 Election The compensation increase would only take effect when at least one member of the City Council commences a new term of office. (Gov. Code, § 36516.5; see also 54 Cal. Ops. Atty. Gen. 112 (1971).)
Therefore, the new salary for each City Council member would go into effect beginning on the date on which a City Council member is sworn into office after the general municipal election held in November 2024.

Future Salary Increases
SB 329 also updated city council options for future salary increases. Future increases can rise to the greater of either:

1. five percent (5%) for each calendar year from the operative date of the last adjustment of the salary in effect when the ordinance or amendment is enacted; or

2. an amount equal to inflation since January 1, 2024, based upon the California Consumer Price Index, which shall not exceed 10 percent for each calendar year.

This second option, which is tied to inflation, was added by SB 329 to allow for greater increases when inflation is high.

Item 27.

ALTERNATIVES:

1. Set an alternative salary amount.

2. Decline to act on this item.

3. Continue this item and provide staff with direction.

FISCAL IMPACT:

City Councilmember compensation would be increased under this Ordinance from $711.05 to $1,275 per month. This increase represents an additional $563.95 per Councilmember per month, totaling an additional general fund expense of $33,837 per year for salary increases for all City Councilmembers.

RECOMMENDED ALTERNATIVE(S):

1. Ordinance No. 1207

2. Redline of Coachella Municipal Code Sections 2.04.010 and 2.04.020.

3. Redline of Government Code Section 36516 showing the amendments as per SB 329

Item 27.

ORDINANCE NO. 1207

AN ORDINANCE OF THE CITY COUNCIL OF THE

CITY OF COACHELLA, CALIFORNIA,

AMENDING COACHELLA MUNICIPAL CODE
SECTIONS 2.04.010 AND 2.04.020 REGARDING

CITY COUNCIL COMPENSATION
WHEREAS, in June 2023, Governor Gavin Newsom signed into law Senate Bill 329 (“SB 329”), which amends California Government Code Section 36516 to update city council compensation schedules to account for inflation. The previous compensation schedules, which are based on population, had not been adjusted since 1984; and WHEREAS, the legislative intent of SB 329 is to help city councils become more diverse because increased compensation can help individuals from across different income levels receive sufficient income from their service to help ensure that they can continue to serve the public and support their families; and
WHEREAS, California Government Code Section 36516 provides a method by which salaries for members of a city council are established based on city population; and WHEREAS, according to the last preceding federal census in 2020 and the California Department of Finance, the City of Coachella has an estimated population of 42,462; and
WHEREAS, under SB 329, city council salaries in cities with populations between 35,000 and 50,000 can be up to and including $1,275 per month; and WHEREAS, pursuant to Ordinance No. 1127 adopted in 2018, Coachella City Councilmembers currently receive $711.05 per month in salary; and WHEREAS, the City Council of the City of Coachella makes the following findings in support of raising City Council salaries to $1,275, as allowed by SB 329:
i. Higher pay can help remove financial barriers that may prevent individuals from running for office. This can make council positions more accessible to a wider range of people, including those from lower-income backgrounds, promoting greater socioeconomic diversity among elected representatives. ii. Offering higher pay can attract more qualified individuals to run for city council positions. This can potentially increase the talent pool and diversity of candidates, leading to better decision-making governance. iii. A higher salary can incentivize councilmembers to dedicate more time and effort to their roles. This can enable them to devote additional hours to

Item 27.
understanding complex issues, researching policies, and engaging with constituents, thereby enhancing the quality of their work. iv. A higher salary can help retain experienced councilmembers who might otherwise leave for higher-paying opportunities elsewhere. Continuity and intuitional knowledge can benefit the city by enabling councilmembers to build expertise, establish relationships, and effectively address long-term challenges.
v. Increasing compensation recognizes and compensates city councilmembers for their substantial workload. Serving on the city council requires significant time and effort. Councilmembers are responsible for attending meetings, conducting research, engaging with constituents, and making important decisions that directly impact the community. vi. The City Council’s last compensation increase went into effect at the end of 2018, so it would be appropriate to again increase compensation to account for cost-of-living increases and inflation over the last five years; and vii. Increasing the City Council salary would make salaries more commensurate with salaries in other Coachella Valley cities (general law and charter) and other general law cities with similar population sizes.

WHEREAS, California Government Code Section 36516.5 provides that a change in salary for each city council member does not take effect until one or more members of the city council begins a new term of office; and
WHEREAS, the new salary for each City Council member would go into effect beginning on the date on which a City Council member is sworn into office after the general municipal election held in November 2024.

THE CITY COUNCIL OF THE CITY OF COACHELLA, CALIFORNIA,
DOES ORDAIN AS FOLLOWS:

SECTION 1. Incorporation of Recitals. The Recitals set forth above are true and correct and are incorporated into this Ordinance.

SECTION 2. Amendment to Municipal Code. Section 2.04.010 Compensation of city council members of Chapter 2.04 City Council of the Coachella Municipal Code is amended to read as follows:
“2.04.010 - Compensation of city council members.

A. California Government Code Section 36516 provides for compensation for each member of the city council based upon the population of the city. The city has an

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estimated population of forty-two thousand four hundred sixty two (42,462) as of January 2023, according to the California Department of Finance.

B. Pursuant to California Government Code Section 36516, each member of the city council shall receive an increase in his or her monthly salary, beginning on the starting date of the term of office for which candidates or city council members are elected in the November 2024 election. Beginning on the date on which a council member is sworn into a new term of office, the new monthly salary of each council member shall be one thousand two hundred seventy five ($1,275).”
SECTION 3. Amendment to Municipal Code. Section 2.04.020 Increase or decrease in council member’s salary of Chapter 2.04 City Council of the Coachella Municipal Code is amended to read as follows:
“2.04.020 - Increase or decrease in council member’s salary.

Following any new and later estimates of population made by the California Department of Finance placing the city in a population group other than that set forth in Section 2.04.010, the salary is payable to each member of the council shall be increased or decreased accordingly to equal the sum prescribed for that population group in Section 36516 of the Government Code. The increase or decrease becomes payable only on and after the date when one or more council members become eligible beginning a new term of office following the next succeeding general municipal election held in the city. Council member salaries may also be increased beyond the amount provided in Section 2.04.010 pursuant to Government Code Section 36516, as amended, to account for cost-of-living adjustment and inflation.”
SECTION 4. Operative Date. Pursuant to California Government Code Section 36516.5, this Ordinance shall become operative only on and after the date upon which one or more members of the City Council of the City of Coachella become eligible for the salary prescribed herein by virtue of beginning a new term of office following the November 2024 general municipal election. Until said operative date, the City Council salary set forth in Ordinance No. 1127 of $711.05 per month shall be and remain in effect.

On the operative date, the salary set forth in Ordinance No. 1127, is hereby, replaced by the salary set forth in this Ordinance.

SECTION 5. Reimbursement. The salaries prescribed by this Ordinance are exclusive of any other amount payable to a city councilmember as reimbursement for actual and necessary expenses incurred by him or her in the performance of his or her official duties.

SECTION 6. Severability. If any section, subsection, subdivision, sentence, clause, phrase, or portion of this Ordinance for any reason is held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have adopted this Ordinance, and each section, subsection,

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subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases, or portions thereof be declared invalid or unconstitutional.

SECTION 7. Publication. The Mayor shall sign this Ordinance and the City Clerk shall cause the same to be published within fifteen (15) days after its passage at least once, in a newspaper of general circulation, published and circulated in the City of Coachella, California.

SECTION 8. Effective date. This Ordinance takes effect 30 days from and after the date of its passage.

PASSED, APPROVED, AND ADOPTED this ____ of ___________, 2023 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Steven Hernandez, Mayor
City of Coachella
ATTEST:
___________________________________
Angela M. Zepeda, City Clerk
City of Coachella
APPROVED AS TO FORM:
___________________________________
Carlos Campos, Best Best & Krieger LLP
City Attorney

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Attachment “2”

1. Section 2.04.010 Compensation of city council members of Chapter 2.04 City Council of the Coachella Municipal Code is amended as follows to show added text in underline and deleted text in strikethrough:
“2.04.010 - Compensation of city council members.

A. California Government Code Section 36516 provides for compensation for each member of the city council based upon the population of the city. The city has a population of thirty-eight thousand four hundred eighty-six (38,486) as of January 2007 forty-two thousand four hundred sixty two (42,462) as of January 2023, according to the California Department of Finance.

B. Pursuant to California Government Code Section 36516, each member of the city council shall receive an increase in his or her monthly salary, beginning on the starting date of the term of office for which candidates or city council members are elected in the November 2018 2024 election. Beginning on the date on which a council member is sworn into a new term of office the new monthly salary of each council member shall be seven hundred and eleven dollars and five cents ($711.05) one thousand two hundred seventy five ($1,275).”

2. Section 2.04.020 Increase or decrease in council member’s salary of Chapter 2.04 City Council of the Coachella Municipal Code is amended to show added text in underline and deleted text in strikethrough:
“2.04.020 - Increase or decrease in council member’s salary.

Following any new and later estimates of population made by the California Department of Finance placing the city in a population group other than that set forth in Section 2.04.010, the salary is payable to each member of the council shall be increased or decreased accordingly to equal the sum prescribed for that population group in Section 36516 of the Government Code.; provided, however, that the salary as so increased or decreased shall The increase or decrease becomes payable only on and after the date upon which when one or more council members of the council become eligible therefor by virtue of by beginning a new term of office following the next succeeding general municipal election held in the city. Council member salaries may also be increased beyond the amount provided in Section 2.04.010 pursuant to Government Code Section 36516, as amended, to account for cost-of-living adjustment and inflation.”

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Attachment “3”
Government Code § 36516
(a)(1) A city council may enact an ordinance providing that each member of the city coil shall receive a salary based on the population of the city as set forth in paragraph (2). (2) The salaries approved by ordinance under paragraph (1) shall be as follows:
(A) In cities up to and including 35,000 in population, up to and including threenine hundred fifty dollars ($300950) per month.
(B) In cities over 35,000 up to and including 50,000 in population, up to and including fourone thousand two hundred seventy-five dollars ($4001,275) per month. (C) In cities over 50,000 up to and including 75,000 in population, up to and including fiveone thousand six hundred dollars ($5001,600) per month. (D) In cities over 75,000 up to and including 150,000 in population, up to and including sixone thousand nine hundred dollars ($6001,900) per month. (E) In cities over 150,000 up to and including 250,000 in population, up to and including eighttwo thousand five hundred fifty dollars ($8002,550) per month. (F) In cities over 250,000 population, up to and including onethree thousand two hundred dollars ($1,0003,200) per month.
(3) For the purposes of this subdivision, the population of a city shall be determined by the last preceding federal census, or a subsequent census, or estimate validated by the Department of Finance.
(4) The salary of council members may be increased beyond the amount provided in this subdivision by an ordinance or by an amendment to an ordinance, but the amount of the increase shall not exceed an the greater of either of the following:
(A) An amount equal to 5 percent for each calendar year from the operative date of the last adjustment of the salary in effect when the ordinance or amendment is enacted. (B) An amount equal to inflation since January 1, 2024, based upon the California Consumer Price Index, which shall not exceed 10 percent for each calendar year. (5) No ordinance shall be enacted or amended to provide automatic future increases in salary.
(b) Notwithstanding subdivision (a), at any municipal election, the question of whether city council members shall receive a salary for services, and the amount of that salary, may be submitted to the electors. If a majority of the electors voting at the election favor it, all of the council members shall receive the salary specified in the election call. The salary of council members may be increased beyond the amount provided in this section or decreased below the amount in the same manner.

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Attachment “3”
(c) Unless specifically authorized by another statute, a city council may not enact an ordinance providing for compensation to city council members in excess of that authorized by the procedures described in subdivisions (a) and (b). For the purposes of this section, compensation includes payment for service by a city council member on a commission, committee, board, authority, or similar body on which the city council member serves. If the other statute that authorizes the compensation does not specify the amount of compensation, the maximum amount shall be one hundred fifty dollars ($150) per month for each commission, committee, board, authority, or similar body.
(d) Any amounts paid by a city for retirement, health and welfare, and federal social security benefits shall not be included for purposes of determining salary under this section, provided that the same benefits are available and paid by the city for its employees. (e) Any amounts paid by a city to reimburse a council member for actual and necessary expenses pursuant to Section 36514.5 shall not be included for purposes of determining salary pursuant to this section.
(f) A city council member may waive any or all of the compensation permitted by this section.
(g)(1) For the purposes of this section, a city council shall consider the adoption of an ordinance to increase compensation in open session during at least two regular meetings of the city council.
(2) At the first meeting, the city council shall present the proposed ordinance, which shall include findings demonstrating the need for the increased compensation. The ordinance shall not be adopted at the first meeting.
(3) At least seven days after the first meeting, the city council shall hold a second meeting to consider whether to adopt the ordinance.

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